Operating accounts are current use accounts and all monies are available for spending at any time.
Quasi-endowments are current use accounts invested in the endowment pool and are given an annual spendable income amount but are not limited to spending that calculated amount unless specifically stated in the Memorandum of Understanding.
The available spendable income on endowment accounts is governed first by the Memorandum of Understanding (MOU). If the MOU outlines specific spending guidelines those spending guidelines must be followed to set the annual spendable income amount. If the MOU is silent as to the spending formula or defers to the USM Foundation policy then the spending policy governs the calculation of the annual spending amount.
Spendable income is calculated on a fiscal year basis and is available to use as of July 1. The spendable income rate for the upcoming fiscal year is set in February each year. That rate is applied to the prior Dec. 31 market values to determine the spendable income for those endowments covered by the spending policy. Those calculations are completed in early March and communicated to the individual campus administrators, budget officers, and deans at that time for planning purposes for the upcoming fiscal year. Carryover spendable income calculations are not available until after the fiscal year has been closed. These calculations are completed in early August and communicated to campus personnel at that time.