ADMINISTRATIVE PROCEDURE

Making a Deposit or Withdrawal of Funds from an Investment Account

Overview

University departments may choose to make a deposit to, or withdraw funds from, an investment account in the Consolidated Endowment Fund (CEF), the Group Income Pool (GIP), and the Permanent University Fund (PUF).

Process

Deposit and withdrawal transactions are initiated in the financial system by the department preparer.  Accounting Services will review the deposit and withdrawal requests, and either approve the deposit, suspend the deposit or deny the deposit in the system.  All transactions require Accounting Services final approval in the financial system in order to become effective.

Each investment pool has specific requirements that must be met in order to receive approval for a requested transaction.

Consolidated Endowment Fund (CEF) requirements/restrictions:
  • To deposit funds to a current endowment account complete the UM Participant Transaction page in the financial system. Deposit and withdrawal requests must be entered into the financial system by the 27th of each month. For instructions on how to enter requests see Appendices.
  • Withdrawal requests are limited to quasi-restricted and quasi-unrestricted endowment accounts
  • To establish a new endowment account and deposit funds, complete UM 1831 -  Request to Establish a New Investment Account in the Consolidated Endowment Fund
Group Income Pool (GIP) requirements/restrictions:
  • Deposits require 30 day notice to the Office of Investments and Banking (OIB) prior to actual contribution
  • Withdrawal requests may be made at the end of a quarter with a 45-day advance notice to OIB
  • To deposit or withdraw funds from a GIP account, complete form UM1638, Contribution and Withdrawal of funds from the Group Income Pool. Next, complete the UM Participant Transaction page in the financial system. Deposits and withdrawal requests must be entered into the financial system by the 27th of the month, at quarter end. For instructions on how to enter requests see Appendices
  • Initial deposits are subject to a 12-month lockup
  • Deposits to GIP must be made in increments of $10,000, subsequent to an initial $25,000 deposit. Approvals may be denied if the volume or size of withdrawal requested creates an unfavorable market impact on the overall GIP portfolio
  • Requires approval from the Chancellor, Dean or equivalent administrative officer, the University CFO/Treasurer, and the CIO
Permanent University Fund (PUF) requirements/restrictions:

Private gifts and the corresponding PUF matches are true endowments, and as such the original principal may never be spent. PUF accounts are invested in CEF. Earnings invested in a quasi-restricted endowment are available for withdrawal.

To withdraw funds from a PUF account held at the University of Minnesota Foundation (UMF), follow the instructions below:

  • Department preparer signs into the Data Management System (DMS) located on the Foundations' website.
  • Enter amount desired to be withdrawn into the PUF Withdrawal Calculation on the PUF Status Report.
  • Enter an invoice in the PeopleSoft Billing System by navigating to the standard bill page :
    • Billing > Maintain Bills > Standard Billing > Add a New Value.
  • Enter the amount requested from the University of Minnesota Foundation (UMF). For additional information on entering an invoice, refer to Create Bills Reference Manual on Training Services website.
  • Enter a withdrawal transaction in the financial system for requests from the University of Minnesota. See UM Participant Transactions Appendix for instructions.

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