Where did the cash go?

Over at the Fundriver Help Desk, we see our fair share of support tickets.  (Spoiler alert: we love helping our clients so keep them coming.)  One of the more popular topics our clients reach out about is reconciliation.  We are here to help answer the million-dollar question; where did the cash go?

A contributing factor to most reconciliation issues is Due To/Due From (DTDF).  So let’s start at the beginning, what is “Due To/Due From”?  In basic terms it’s the cash that needs to be transferred between an organization’s operating account and its endowment investment pool.  Fundriver has “Due To/Due From Fund” or if you have the Investment Portfolio Module “Due To/Due From Manager.”

As as matter of fact, Due To/Due From is such a hot topic that Fundriver hosted two webinars last quarter!  No worries if you missed out, you can catch the reply here.  Check out some highlights from Michelle, one of our Endowment Accounting Specialists, presentations.  “I like to compare it to a bank reconciliation.  Your Endowment Pool is your “Book of Record” and the Operating Account is “The Bank”.  Each month as you reconcile you are looking for timing differences between the two records.  What are items in the Endowment Pool the Operating Account doesn’t know about and vice versa?”

Keep these tips handy:

  • Negative amounts are due from Operating; positive amounts are due to operating.
  • Gifts that have been received and deposited in an operating account, but are awaiting transfer to the investment pool are due from operations to the investment pool.
  • Endowment distributions that have been made using operating funds. A drawdown from the investment portfolio has not occurred. Amount is due to operations from the investment pool.
  • Important to know your due to/ due from balance and the composition of this balance.
  • Due to/ Due from balances are not a plug.
  • Due to/ Due from balances should cleared at least once per year.

Below is an example of the DTDF Reconciliation Spreadsheet that Fundriver provides.  Still thirsty for more DTDF knowledge?  We have got you covered!  Find everything you need to know in our knowledge base.

As always, if you have questions contact support at support@fundriver.com or 513-618-8718. We are here to help!

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