Quality and Productivity Database

Descriptive Title of Proposal: Endowment System
Year Submitted 2019
Person(s) Responsible for the Idea
Name / Nom Title / Titre
Andrew Coward Andrew Coward
Name of Institution University of Victoria
Office Address 3800 Finnerty Rd, Victoria, BC V8P 5C2
Victoria, British Columbia V8R 5H7
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Telephone: 2507217037
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Name (Senior Administrative Office of the Institution) Kristi Simpson
Title (Senior Administrative Office of the Institution) AVP Financial Planning and Operations
Office Address 3800 Finnerty Rd, Victoria, BC V8P 5C2
Victoria, British Columbia V8R 5H7
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Telephone: 2507216385
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Abstract

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Criteria Please submit one paragraph describing how the proposal fulfills each of the evaluation criteria.
Transferability

In the 2017 University Investment Survey there were 72 Universities with Endowment Funds that support institutional missions providing financial support for scholarships, bursaries, awards and research centres (etc.). In 2015, we asked other Canadian Universities what systems are used to administer and track endowments (i.e. tracking endowment spending and market value, determining budget amounts, etc.). While a minority purchased third party software that needed to be integrated with existing financial reporting systems, the majority were using spreadsheets. The customizations that we undertook are transferable to other universities that use FAST. FAST is used at ~40 universities in Canada.

Quality Impact

Quality

  1. Improved services
     
    1. Account holders/Endowment Administrators now have access to real time spending data and endowments terms which outline spending restrictions. Previously administrators couldn’t see this information which resulted in conservative budgeting spending and an underutilization of funds, often times due to a lack of understanding on what they had to spend. The improved system allows for better budget planning (i.e. additional scholarships, awards, bursaries) and ensures that funds are allocated effectively.
       
  2. Increasing job satisfaction
     
    1. By reducing the amount of manual work, staff now have time for analytical analysis.
Productivity Impact

Productivity

This table outlines productivity improvements as a result of implementing the Endowment System.

Function

Previous # transactions

Now # transactions

Previous # hours

Now # hours

Total Savings

Budget distribution

same

same

35 hours

21 hours

14 hours

Creating Donor Reports  -Endowment acct

Same

Same

50 hours

14 hours

36 hours

Creating Donor Reports  - Advancement

Same

Same

6 weeks

3 weeks

210 hours

Donations – endowment acct

~3000+

~3000+

5 hours X 12= 60 hours

1 hour X12 = 12 hours

48 hours

Awards – endowment acct

~ 5000+

~5000+

7 hours X 12 = 84 hours

3 hours X 12 = 36 hours

48 hours

Maintain endowment book value report

Same

Same

3 hours X 12 = 36 hours

zero

36 hours

Ensuring terms are up to date – endowment acct

Same

Same

 

2 hours X 12 = 24 hours

zero

24 hours

Maintain endowment sub ledger

Same

Same

21 hours X 12 = 252 hours

15 hours X 12 = 180 hours

72 hours

Fiscal year end entries

~200 +

~ 100

35 hours

14 hours

21 hours

Account history and status inquiry

NA

NA

10 hours X 12 = 120 hours

5 hours X 12 = 60 hours

60 hours

Total Savings across 7 areas

569 hours or ~16 weeks

Innovation

A feasibility assessment was completed to determine whether to buy a product, develop a solution using existing systems or maintain status quo (spreadsheets). Based on the endowment systems available, it was decided to custom-build a system to leverage existing financial (FAST) and donor reporting systems (Raiser’s Edge NXT). This solution would allow end users to use the same reporting system for endowment information and:

  1. Reduce operation risk by:

 

    1. Reducing the number of manual input transactions
    2. Reducing reliance on Excel and potential formula errors
    3. Creating a general ledger with an audit trail of all transactions

 

  1. Increase transparency and improve reporting by:

 

    1. Integrating endowment information with existing financial reporting tools to improve the timelines and accuracy of endowment information
    2. Providing the endowment terms that allow end users to view spending restrictions of each endowment

 

  1. Improve the efficiency and quality of donor reporting by:

 

    1. Integrating endowment and donor systems to automate annual donor reporting
Supporting Documents 20190128-Quality-and-Productivity-Application-Submitted.docx