Administrative Fee Codes

Administrative Fee Codes

FIMS allows you to calculate administrative fees for your Funds based on any combination of assets (a flat fee, a straight percentage, or a stepped fee - where rates vary depending on the Fund value), transactions, or annual minimum amounts.

1. In the Fund Management module, select File Maintenance > Funds > Fund Code Maintenance > Administrative Fees. The Administrative Fees Data Grid opens.
Administrative Fees Grid

2. Click the New button on the toolbar. The Edit Administrative Fees window opens, with the Main Options section displayed.

Note: You can also select an existing code and click the Edit Fee Code button to make changes to that code.

Edit Administrative Fees Window (Main Options)

3. Enter the Fee Code (up to six characters) that you want to use.

Note: You cannot change the Fee Code for existing codes.

4. Enter a Description (up to sixteen characters) of the Fee code.

5. Click the arrow in the Frequency drop-down box and select the frequency with which fees will be assessed: Never, Monthly, Quarterly, Semi-Annually, or Yearly.

6. (Optional) If you want to add an additional flat fee to the total fee (for example, an annual standard fee for processing checks), enter the desired amount in the Base Fee field.

7. (Optional) If you want to set a flat, minimum fee that will be used when the calculated fee is less than the minimum, enter the desired annual amount in the Minimum Fee field.

8. Click the arrow in the Master Fund Fee Calculation drop-down box and select one of the following:

• Not Master / Sub Basis: Indicates that the fee is not applied to Master and Sub-Funds and it is not necessary to prorate fees to multiple funds.
• Prorate Fees Back to Funds: Indicates that you want to prorate the fees back to the funds based on each fund’s percentage of the aggregated total. Note that you can enter a percentage over 100 percent if you need to record an increase in the amount.

9. (Optional) If you want to override the accounts for GL Journal Entries that are created based on this code, then enter the desired accounts in the Operating Fund Override G/L Offset Account and Operating Fund Override G/L Revenue Account fields. If you want to use the default operating accounts, leave these fields blank.

10. Follow the steps for Asset Based or Annual Minimum, depending on how you want to calculate your fees.

Tip: Calculating Administrative Fees

The actual value that is used for fee computations depends on the method selected at time of calculation. Refer to Editing and Posting Administrative Fees for more information.

Maintaining Asset Based Administrative Fees

Complete the steps for configuring the main options discussed above, and then do the following:

1. Click the Asset Based radio button.
Edit Administrative Fees Window (Asset Based)

2. In the Calculation Method section, do one of the following:

• If you are using a set fee for Funds with this code, select the Flat Fee radio button and enter the desired amount.
• If you are using a set percentage to calculate the fee for Funds with this code, select the Straight % radio button and enter the appropriate percentage.
• If you are using a stepped fee, select the Stepped Fee radio button and then do the following:

1. Select the Cumulative checkbox if you want to assess a different Fee Factor to each Fund balance range.
   In the screenshot above, it is set as 1% up to $50,000, 5% from $50,001 to $100,000, 10% from $100,001 to $500,000, and then 15% above $500,001).
2. Clear the Cumulative checkbox if you want to assess a single fee factor to the entire Fund value depending on the highest value the Fund has reached.
3. In the Value Amount column, enter the upper limit of the Fund balance range. Funds with balances less than or equal to this amount will be assessed the selected fee.
4. In the center column, enter either % or $ to indicate whether you want to charge a flat fee or a percentage.
5. In the Fee Factor field, enter the dollar amount or percentage that you want to charge.

3. In the From G/L Accounts and Thru G/L Accounts fields, enter up to four ranges of General Ledger account balances that you want to combine to determine the Fund value.

Note: If you want to use the account balances from a single account, enter the same account number in both the From and Thru fields.

4. (Optional) If you only want to use accounts that are of a specific type, enter the desired type (or range of types) in the From Type and Thru Type fields next to each G/L account range.

5. (Optional) If you are using more than one range of accounts, enter either a plus sign (+) or minus sign (-) in the +/- field to determine whether the next account range will be added to or subtracted from the current line.

Note: When figuring addition or subtraction of accounts, you must take into account the normal balance of the G/L accounts. For example, if you want the basis amount to be total Fund balance (30000 to 99999) minus pledges receivable (15000) you must leave a plus sign at the end of the first row.

6. Click the Save button on the toolbar.

7. Configure any other codes, as desired. When you are completely finished, click the Close button.