CashTrac CGA Market Values

The CashTrac CGA Market Values routine computes and records new market values for all gift annuities of the selected organization and gift annuity pool.

You can run this routine regularly to maintain an accurate estimation of the assets backing each gift annuity. You may want to use this information to determine the amount to withdraw from your gift annuity pool when a gift annuity terminates.

You can make CashTrac CGA Market Values compute a new total market value that matches a target amount, such as the market value of your gift annuity investment pool. See steps 4 - 7 for instructions.

1. Click Actions > CashTrac CGA Market Values in the Menu Bar.

2. Enter selection and calculation criteria to adjust gift annuity market values as you wish. There is help available on each field.

The CashTrac period must be within a single calendar year. If the return % you want to use spans two calendar years, split the return % and period into two parts and run CashTrac twice.

To adjust all market values based on a net investment return %
Choose Annuity Pool Return % for Period (Net of Fees) in the Methodology for Computing New Market Values area to adjust the market value of all gift annuities that are included in the CashTrac run by the same percentage. Annuity payments made during the CashTrac period will then be subtracted from these adjusted market values to determine the new market value of each gift annuity. Enter the percentage investment return on funds that have been invested for the entire CashTrac period net of fees.

The advantage of this approach is that all the gift annuities will be adjusted as you intend, whether or not you have mistakenly neglected to record one or more new gifts or gift terminations that occurred during the CashTrac period. Also, if you choose to allocate investment returns to annuities that have negative market values at the start of the CashTrac period, these allocations will not affect the investment return allocated to the gift annuities that have positive market values at the start of the CashTrac period.

The disadvantage of this approach is that the total market value of all gift annuities is unlikely to match perfectly the actual market value of the gift annuity pool they comprise.

To match a target amount for total new market value
Choose Total Annuity Pool Market Value at End of CashTrac Period in the Methodology for Computing New Market Values area to adjust the market value of all gift annuities that are included in the CashTrac run such that their total market value after adjustment equals the specific pool market value you enter.

The advantage of this approach is that the total market value of the gift annuities included in the CashTrac run will exactly match the actual market value of the gift annuity pool they comprise.

The disadvantage of this approach is that all of the gift annuity market values will be adjusted incorrectly if you have mistakenly neglected to record one or more new gifts or gift terminations that occurred during the CashTrac period.

Including annuities with negative market value will affect positive annuities, too
If you choose to allocate investment return to annuities that have negative market values at the start of the CashTrac period and/or to include these annuities when matching the total annuity pool market value, doing so will also affect the investment return allocated to the annuities that have positive market values at the start of the CashTrac period. For example, if the total market value of the negative annuities becomes more negative as a result of the CashTrac run, the market value of each positive annuity will be greater than it would have been had negative annuities been ignored both for purposes of allocating investment return and for purposes of matching the total annuity pool market value. The ending market values of the positive annuities may be overstated, as a result.

Be you sure you understand the affect of a calculation option before you select it. See the help for the CashTrac CGA Market Values screen for more specific information on each calculation option.

3. Click OK. If you see an error log, see Notes below.

4. Produce the CashTrac Detail report, if you wish. This report provides a record of the exact adjustment that the routine made to each gift annuity market value. It also gives you a chance to make sure the adjustments look correct before the routine actually enters the new market values into the database. You can reproduce a similarly detailed report at any later time by producing the CGA Market Value Transaction Details report.

· Click Yes to produce the CashTrac Detail report. Click No only if you are sure you do not want to produce the CashTrac Detail report. If you click No, skip to step 7.

5. Review the CashTrac Detail report to make sure the market value adjustments look correct.

Do the following, as needed:

- Print the report.
- Save the report to a file.
- Export raw data for the report.
- Export to Document Storage ModuleExport to Document Storage Module
  
  If you have a license to GiftWrap's Document Storage Module, you can save the CashTrac Detail report directly to this module.
  
  1. View the report.
  
  2. Click .
  
  3. Fill out the Save Report to Document Storage screen that will now open.
  
  4. Click Save.

6. Click $image\closebox.gif$ when done viewing.

7. Choose whether to save your new CashTrac market values to the corresponding gift records, the corresponding gift records and historical gift table, or not at all, and then click OK.

If you choose not to save your new CashTrac market values at all, go back to step 2 if you wish to rerun CashTrac CGA Market Values using different data. Otherwise, go to step 7.

8. Click OK .

9. Click Close .

Notes:

· Gifts included in CashTrac run
For a gift to be included in the calculations, the following must be true in addition to any selection criteria entered in the function window:

Gift Date is less than or equal to end date of CashTrac Period

Gift Status is Current or Gift Status is Finished/Severed and Account Closed Date is greater than or equal to end date of CashTrac Period

· Values updated by CashTrac
This routine updates the value stored in each gift annuity Market Value field based on the current Market Value, the start and end of the CashTrac period, the investment return percentage for the period, and the payments the annuity has made during the CashTrac period. This routine also enters the end date of the CashTrac period in each gift annuity Market Value Date field. The Market Value and Market Value Date fields are in the General tab of each gift's Gift Information screen.

· Fixing values adjusted incorrectly by CashTrac
If you run CashTrac CGA Market Values using incorrect data and therefore save incorrect market values, you can use the Restore Selected Batch to Gift Table button in Maintain Historical Gift Values to recover the previous gift annuity market values if those market values were previously saved as historical values. Alternatively, if you wish to start over from the beginning, you can use Reset Market Values to reset the market values of an organization's gift annuities to their respective initial values on the day they were given.

· Error log
If you see an error log, fix the errors it identifies, then run CashTrac CGA Market Values again.

To print the error log, click Print. Alternatively, you may save the log in a file that you can print or review later. When done, click Cancel.