Regents' Policy
PART
V - Finance and Business Management
CHAPTER VII - Special Funds
| Land-Grant Endowment | P05.07.01 |
A. General
The Land-Grant Endowment consists of the Land-Grant Endowment Trust Fund, the Natural Resources Fund, and the land and other resources, which were acquired through the original land grants to the university and related legislation or settlements. In addition, an Inflation-Proofing Fund has been established to help provide for the preservation of purchasing power of the Land-Grant Endowment subject to such actions as may be taken by the board. The Land-Grant Endowment Trust Fund and the Inflation-Proofing Fund will be guided by total return principles and AS 14.25.180 and AS 37.10.071.
B. Purpose and Use of Funds
The Land-Grant Endowment Trust Fund is established in accordance with AS 14.40.400. The net income from the sale, lease, development or other disposition of trust lands or other related resources will be deposited to the Land-Grant Endowment Trust Fund as principal. Except as specifically approved by the Board of Regents, the net proceeds from the sale or development of non-trust lands or other related resources and the improvements thereon will be deposited as additions to the Inflation-Proofing Fund in a manner similar to principal. Annually, effective July 1, the spending allowance for the funds, as described later in this policy, will be transferred to the operating accounts for management and maintenance of university lands and to the Natural Resources Fund for program expenditures.
The Natural Resources Fund (NRF) represents the earnings of the Land-Grant Endowment that are either dedicated or available for dedication to programs and projects in accordance with this policy. The NRF is established to provide a margin of support over and above what otherwise would be possible through traditional state, federal, and private sources, and used to provide funding to projects and programs necessary to establish or enhance the quality of the university's academic programs, research, or public service. At least 40 percent of the undesignated funds available for NRF distributions will be used for purposes related to fisheries, agriculture, forestry, mineral development, and education in areas related to natural resources. As part of the annual setting of budget priorities, the Board of Regents may designate a percentage greater than 40 percent to be used for purposes related to natural resources. All expenditures will be made in accordance with regents' policy and university regulation.
C. Investment of Funds
All moneys, funds, and investable resources in excess of liquidity requirements for distributions and commitments will be invested through the consolidated funds agreement with the University of Alaska Foundation. All moneys or funds retained for liquidity or other purposes will be fully invested in accordance with regents' policy.
D. Spending Allowance
Withdrawal of earnings in any fiscal year will be limited to the unexpended accumulated earnings (both realized and unrealized) of the endowment as of the preceding December 31, up to a maximum amount equal to 5 percent of the average of the December 31 market values of the investable resources of the funds for the immediately preceding five years, as determined by the university's chief finance officer, or such other amount as determined by the Board of Regents to be prudent under the standards for management of endowment funds under total return principles.
E. Annual Budget Allocations From the Natural Resources Funds
The president will develop an annual budget governing the expenditure of the Natural Resources Funds. The budget will reflect the purpose of and the restrictions placed on the use of the NRF by this policy. By November of each year, the president will present a spending plan and budget to the Board of Regents for approval. No commitment against the NRF funds shall occur prior to the approval of the annual budget by the Board of Regents.
F. Financial Reporting
Annually, the chief finance officer will provide reports to the Board of Regents
that reflect the financial position and activities of the Land-Grant Endowment,
including a summary of all revenues and expenditures and investment performance.
(06-08-01)
| Planning and Energy Conservation Revolving Fund | P05.07.02 |
A planning and energy conservation revolving fund (Fund) shall be established and maintained to support long range facilities planning and energy conservation projects. To the extent permitted by law, all unrestricted interest earnings on plant funds other than bond monies shall be deposited in such fund. Such funds shall be expended and reimbursed to the Fund in accordance with university regulations and procedures established by the vice president for finance.
(12-03-94)
| Endowment and Quasi-Endowment Funds | P05.07.03 |
All endowment and quasi endowment assets shall be transferred to the University of Alaska Foundation (Foundation) for care, custody, investment and administration, to the extent feasible and not prohibited by donor agreement. Endowments shall be transferred to the Foundation as follows: (1) unrestricted endowment principal and income funds shall be transferred to the Foundation upon approval of the vice president for finance, (2) quasi-endowment (unrestricted funds designated as an endowment by the Board of Regents) and restricted endowments shall be transferred to the Foundation upon specific approval by the Board of Regents.
(12-03-94)
| University of Alaska Postsecondary Education Savings Program | P05.07.04 |
A. Introduction
The Education Trust of Alaska (the Trust), formerly the University of Alaska Savings Trust, was established by the Board of Regents to facilitate administration of the University of Alaska Postsecondary Education Savings Program ("College Savings Program"). The College Savings Program consists of the Advance College Tuition (ACT) Savings Fund and the Alaska Higher Education Savings Trust, both established in accordance with the Alaska College Savings Act, AS 14.40.802 - 14.40.817. The College Savings Program in turn provides the basis for related plans which may be authorized, from time to time, to further the purposes of the Trust and the College Savings Program. This policy provides for the administration, management, promotion, and marketing of the Trust and the College Savings Program.
B. Purposes of the Trust and College Savings Program
The Trust and the College Savings Program are intended to:
1. promote attendance at the University;C. Trust Responsibilities.2. reduce financial barriers to obtaining a postsecondary education;
3. provide affordable access to a postsecondary education;
4. encourage higher academic performance in grades 7 through 12, and enhance opportunities for students to complete their secondary and postsecondary education;
5. encourage and help participants provide for the increasing cost of higher education through tax-advantage savings and investments and a convenient method of saving; and
6. secure the payment of participant account balances and to secure the tuition value guarantee for ACT participants who attend the University.
By establishing the Trust and adopting this policy, the board acknowledges and accepts, on behalf of the University, the fiduciary duties and responsibilities associated with the University serving as trustee. These duties and responsibilities are more fully described in the Declaration of Trust and its exhibits and attachments ("Declaration") and include maintaining the Trust in compliance with Section 529 of the Internal Revenue Code of 1986, as amended. The Declaration is incorporated into this policy by this reference.
In accordance with the Declaration, the University President is appointed Trust Administrator and delegated all powers and authority necessary and convenient to administer, operate, and manage the Trust and College Savings Program, including, but not limited to:
1. modifying, suspending or terminating, all or a portion of, the Trust and the College Savings Program;D. Continuation of ACT Savings Fund2. making final interpretations regarding the terms of the Trust and the College Savings Program;
3. providing for the final administrative resolution of all disputes and claims by participants, contractors, and others arising out of the administration, operation, and management of the Trust and the College Savings Program;
4. entering into contracts for program management services; and
5. further delegating such powers and authority as the University President considers necessary or convenient to effectively administer, operate, and manage the Trust and the College Savings Program.
The Board of Regents authorizes the transfer of the ACT Savings Fund, including all participant accounts and administrative funds, to the Trust, to secure obligations to participants and to accomplish the purposes of the Trust and the College Savings Program.
To the extent allowed by law: a) all of the benefits, duties, and responsibilities under AS 14.40.802 shall apply to ACT participants and beneficiaries and b) the terms and conditions of the Trust and the College Savings Plan shall replace and supercede the terms and conditions of the former ACT Plan. The transfer shall be effective on such date and in such manner as may be determined by the University President.
(12-06-02)
