In most Endowed Fund Letters of Agreement, donors have provided instructions on how to handle unused income payout. Please note that every effort should be made to find and award all income payout per donor intent in the agreement before considering returning funds to the endowment. Below are the three options of how unearned income is directed.
The donor directs that no award be made and the unused income remains in the income account in order to provide additional support in subsequent periods.
The donor directs that the unused income must be returned to the principal in order to increase the corpus.
The donor directs that the unused income may be returned to the principal in order to increase the corpus or may be held for use in subsequent periods.
Income is posted to the income funds by the 5th of the month in the endowment quarterly process. (Ex: by September 5, December 5, March 5 and June 5.) The Income to Principal form found on the VTF Website must be used to return income to the endowment fund. (Website link) The form must be submitted by the 15th of the month to the VTF Accounting Office. Journal entries are keyed daily and departments may verify entries have been processed by monitoring their Banner fund balances.