SPPF Investment and Budget Report
The investment and budget report for SPPF’s fiscal year July 1, 2011 to June 30, 2012
encompasses an entire academic year.
There are two major funds invested by the Syracuse Pulp and Paper Foundation, the
general endowment and the Herman Louis Joachim Fund.
The general endowment consists of all of the donated scholarship endowments, along
with the income and appreciation that has been generated by prudent investment of the
donated funds.
Donations to the scholarship endowment make up the principal of the general endowment
as the permanently restricted assets. Additional gifts in fiscal 2011-2012 to the existing
endowments totaled $7,575.
The unrestricted assets are gifts given without restriction such as annual fund donations
and corporate memberships. The New York Prudent Management of Institutional Funds
Act of September 2010, requires that the unspent earnings of the endowment are
classified as temporarily restricted until released for expenditure by a vote of the board of
directors. When including cash investments and checking accounts the endowment was
equal to $4,163,293 on June 31, 2012, up from $4,145,882 the prior year.
The Grossman Family Foundation Scholarship Fund, which is part of the general
endowment fund, now represents two funds which were known as The Grossman
Southern –Container Foundation undergraduate fund and The Grossman SouthernContainer Graduate Fellowship fund. This combined fund value is $363,620 as of June
30, 2012. This fund provides scholarships to students who meet academic requirements
and will offset student loans for these scholars.
The Herman Louis Joachim Fund was established in the early nineties to provide
management education and support to students in the Department of Paper and
Bioprocess Engineering. The principle, the appreciation, and the income generated by
the Joachim Fund is all classified as temporarily restricted assets, in accordance with the
wishes of the donor. The Joachim fund totaled $3,813,199 on June 30, 2012, up from
$3,749,996 the previous year.
The SPPF Investment Policy applies to all funds managed by SPPF. It dictates that the
Foundation may distribute annually up to 4 (Four) percent of a trailing three or five year
average of the Endowment’s total asset value to meet the approved expenses. If less than
the maximum amount allowed is needed to meet the budget, the remainder is returned to
the investment.
Budget Results 2011-2012
At the end of fiscal 2011-2012 after all expenses, SPPF returned $62,633 to capital.
Corporate contributions were $59,750 which is a significant increase over the last two
fiscal years. Contributions continue to be significantly lower than the historical pace of
$115,000. We sincerely appreciate all companies who have continued to provide
funding.
Individual memberships held steady at $14,175, many thanks to all who continue to
donate in the annual fund each year. Your annual gifts help to maintain our office
operations so we can continue to provide scholarships.
The budget is reviewed in detail at each board of directors meeting to identify how we
can control spending while keeping our focus on providing the greatest benefits in
scholarships. During this fiscal year we had unexpected absence by the office staff that
lead to reduced spending in salary, benefits and office operations. Scholarships granted
were slightly below the budget estimate due to class size.