Calculate Spending Policy

When you calculate a spending policy, the output is called the Cash Requirement value. You can view the last calculated value on the Fund record’s Fund 1 Tab.

The value is also written to the Cash Requirements field on the Fund Summary History record. This is an annual record, so if you run the calculation yearly, it keeps a history of past calculations. Create Recurring, G/L, or Budget Entries uses this field to create Journal or Budget entries. See Create Recurring, General Ledger, or Budget Entries for more information.

FIMS offers three approaches to base spending policy calculation: General Ledger historical balances, FACTS (Investment Pool) historical balances, and Pool Market Value.

Tip: You can also calculate Spending Policy amounts using the Administrative Fee Calculation utility in the Fund Management module. After the calculation report displays in the FIMS Viewer, click Create GL Entries on the FIMS Viewer menu bar. The system asks if you want to update the Spending Policy. Click Yes to put the calculated amount in the Cash Requirement field of the Fund record. Keep in mind that this calculation routine cannot average more than one year’s worth of General Ledger data. See   in the Fund Management module for more information.

IMPORTANT: If you have changed (or are planning to change) your fiscal year, contact Support before running this utility. The change may have implications on your calculation results.