Policy 9 - Budgeting for Endowed Chairs
DATE ISSUED: February 1, 2000
DATE REVISED: September 1, 2001
When a Chairholder is appointed, his/her salary and related benefits will be moved from the department where they reside to the Chair's organization number. When the Chairholder leaves the position, his/her salary and related benefits will return to the department from which they were originally moved.
Increasing Chair Expenses
The estimated endowment income for an Endowed Chair may exceed the amount of expense rollons for a given year. The Budget Committee will decide if, and to what extent, the Chair's expenses will be increased over standard rollons.
New Chair Funding
When a new Endowed Chair is budgeted for the first time, the Budget Committee will make the determination on a "case-by-case" basis on whether the Chair income provides additional funding for the school or replaces funding for the existing position.
Any Budget Committee decisions relating to increasing chair expenses or to new chair funding must be in accordance with the official donor agreement.
(1) In those situations where a significant percentage of the Chairholder's time is spent on activities unrelated to Chair responsibilities, only the percentage of the Chairholder's total salary which relates to Chair activities, should be included in the Chair expense.
The financial activities of all endowed Chairs will be budgeted and reported separately in the financial system. Each Chair must have its own organization number within the college or department in which it resides. All endowment revenue, other revenue, and expenses related to an endowed Chair will be budgeted and accounted for under that Chair's separate organization number. Expenses include the Chairholder's entire salary(1), any other Chair-related salaries and benefits, and all non-salary expenses.