There are many unallocated costs associated with the receipt and administration of gift funds. The purpose of APC is to more appropriately allocate the costs associated with gift funds with their use.
The administration of APC varies based upon the type of gift. The following information relates to the administration of APC on restricted funds. For questions regarding APC on gifts to unrestricted funds, please contact the Office of Budget and Financial Planning.
The cost of using an endowment gift is booked in conjunction with spendable distribution. The actual charge varies based on gift date, distribution status, and donor restriction of the fund. Units owned as of June 30, 2012 are assumed to have purchased with gifts made on or before that date. Units purchased after that date are assumed to have been purchased July 1, 2012 or later.
|Gift received||Distribution status||Donor Restriction||Annual FY14 APC Charge|
|June 30, 2012 or prior||Reinvesting||Any||Not charged|
|June 30, 2012 or prior||Distributing||Any||$0.10 per unit|
|July 1, 2012 and later||Reinvesting||Any||Not charged|
|July 1, 2012 and later||Distributing||Financial Aid||10% of spending rate|
|July 1, 2012 and later||Distributing||Other than Financial Aid||20% of spending rate|
The APC charge is booked to account 42009 – Pool APC Charge and will appear on the ER fund as a debit.
In general, gifts received after March 1, 2012 are subject to a 12% charge when the gift is used. The charge is calculated based on expenses charged to the fund and is booked monthly to account 49056 – Allocation – Associated Program Costs.