Accounting, Auditing, and Fiduciary Responsibility for the SMIF Investment Management

1. Accounting, Auditing, and Fiduciary Responsibility for the SMIF Investment Management Asmita Niraula Anurup Upadhyay 4/21/14

2. Overview • A $25,000 gift from Suzanne '66 and John Hammond • Articles about the SMIF in Colby-Sawyer Alumni magazines, publications, student presentations • Two Sources: • Additional Donations • Endowment Contribution • Current value: $298,799.96 as of April 9, 2014

3. Accounting • Endowment Contribution • Out of the “unrestricted” college endowment funds • Information not relayed to the Development Office

4. Accounting • Additional Donations • Alumni Office

5. Accounting • Financial Services • Two journal entries to account for the “restriction” • Capital Appreciation • Accounting adjustments made quarterly

6. Auditing • G/L must match bank statement • Confirmations on every bank account – Charles Schwab included • Deeds of gifts scrutinized • Concept of materiality • Growth in size

7. Fiduciary Responsibility • A legal duty to act solely in another party's interests. • Parties owing this duty are fiduciaries and individuals/institutions to whom they owe a duty are called principals. • In SMIF’s case: • Principal: Colby-Sawyer College • Fiduciaries: Board of Trustees, Investment Committee, accounting personnel, professors, students - www.law.cornell.edu, 2014

8. Fiduciary Responsibility • Just reinvestment, no expenditure • To make any changes: • BoT have the rights to make duty changes

9. Questions? Thank you!