Comply with UMIFA in a Down Market

FIMS does not currently have a specific provision for this occurrence. However the following process may be effective for your organization.

The two main goals are to exclude Funds with negative accumulated earnings from the Spending Policy Calculation and only transfer what is accumulated when that amount is less than the calculated Spending Policy amount.

1. Export the accumulated return balance to Excel:

   • Create a simple columnar financial statement with one column (accumulated balance). Refer to Designing Columnar Financial Statements in the General Ledger module for more information.

   • Export the columnar financial statement in spreadsheet format. Column A of the spreadsheet should be the Fund ID and Column B should be the Accum Return balance.

2. Run the Spending Policy Calculation to populate the Cash Requirement fields on the Fund record, and then do one of the following to place these values into Column C of the spreadsheet.

   • Run the Cash Requirements Report for the new year, save it to a text file, use the Excel wizard to import only two columns (Fund ID and Cash Requirement value), then copy and paste into your other spreadsheet.

   • Run an export in Results based on the Fund record with the Fund Id and the Cash Requirement field, open it in Excel, and copy the Cash Requirement column into your existing spreadsheet.

3. Use Column D of the spreadsheet to subtract the Cash Requirement from the accumulated return.

4. Use Column E to display the actual Spending Policy amount for each Fund. It contains a conditional (IF(B2<0,0,IF(D2<0,B2,C2)) which says that if the accumulated returns are less than zero, the Spending Policy amount should be zero. Otherwise, if Column D (Accumulated Returns minus Cash Requirement) is less than zero, the Spending Policy amount should match the amount in Column B (Accum Returns). If the difference not less than zero, the Spending Policy amount should match the amount in Column C.

5. Run the Spending Policy Import to replace the Cash Requirement value in FIMS with the new values from Column E.

Note: You need a spreadsheet with two columns (the Fund ID and the Spending Policy amount), saved as a comma delimited (.csv) file. To do this, you can link columns A and E to Columns A and B on Sheet 2. Then on Sheet 2, save the file as a .csv file. FIMS will import this file.