Associated Program Costs

What is APC and why is it necessary?

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.

How is APC administered?

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.

How is APC administered on ER funds?

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.

How is APC administered on RC funds?

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.