Order of Operations During a Year

Pooled Fund Administration Order of Operations Over a Calendar Year

For most of each year, you can simply enter information on new fund participants and edit information on existing participants as the information becomes available. However, at the end of each payment period there are a number of procedures that you must perform in a particular order before you are ready to enter information in the next payment period. Similarly, at the end of each fund year you must run specific procedures in a specific order.

The protocol you follow throughout the year will depend on whether your fund uses an actual distribution method or an estimated distribution method.

Follow the protocol described below that matches the fund's distribution method.

Order of operations for actual distribution method

If your fund distributes income using the actual income distribution method, follow the order of operations below. In the protocol shown, it is 2010 and the fund makes quarterly payments.

2010

Early January (immediately following the end of the year)

Enter last fund gifts and severances of previous payment period.
Confirm all year-end gifts; double check entire year's activity.
Run Distribute Income to distribute income for the last period of 2009; print and verify the Distribute Income Detail reports produced by this function.
Print checks and, if necessary, advices for last period of 2009. Send them.
Backup the database using Database Manager.
Run Year End Update to update the organization with which the fund is associated to 2010. Also, update the fund to 2010. This will allow you to produce payments for 2009.

January 15 - February 28 (or as early in 2010 as possible)

Enter fund income data for the 2009 tax year.
Produce and verify K-1 Summary. Once K-1 information is verified, print and send Schedule K-1s or substitute K-1s for 2009.
Begin entering 2010 transactions. For each new participant, create an entry using Add Person, then add the gift and associate the appropriate person records with it.
Run Unitize New Gifts to assign units to new gifts. The frequency with which you run Unitize New Gifts will depend on the fund's unitization method.
Record deaths and severed gifts as necessary. These functions will make all necessary adjustments.

Early April, July, and October (immediately following the end of first three payment periods)

Record the last gifts, deaths, and severances of payment period.
Find out from the fund's asset manager or trustee the exact actual net income of the fund for the payment period just ended as soon as possible following the end of the payment period.
Run Distribute Income to distribute the actual net income for the period; print and verify the Distribute Income Detail reports produced by this function.
Print checks and, if necessary, advices for period. Send them.
Backup the database using Database Manager and update the fund to the next period in 2010.

2011

Early January (immediately following the end of the year)

Enter last fund gifts and severances of previous payment period.
Confirm all year-end gifts; double check entire year's activity.
Run Distribute Income to distribute income for the last period of 2010; print and verify the Distribute Income Detail reports produced by this function.
Print checks and, if necessary, advices for last period of 2010. Send them.
Run Year End Update to update the organization with which the fund is associated to 2011. Also, update the fund to 2011. This will allow you to produce payments for 2011.

and so on ...

Order of operations for estimated distribution methods

If your fund distributes income using the estimated income distribution method (method 1), follow the protocol below in the order functions are listed. In the protocol shown, it is 2010 and the fund makes quarterly payments.

2010

Early January (immediately following the end of the year)

Enter last fund gifts and severances of previous payment period.
Confirm all year-end gifts; double check entire year's activity.
Run Distribute Income to distribute income for the adjusting period of 2009 (quarter 5 for a quarterly paying fund) using the actual number of dollars earned during the year; print and verify the Distribute Income Detail reports produced by this function.
Print checks and, if necessary, advices for the adjusting period of 2009. Send them to participants, or hold them for mailing with K-1s.
Backup the database using Database Manager.
Run Year End Update to update the organization with which the fund is associated to 2010. Also, update the fund to 2010. This will allow you to produce payments for 2010.

January 15 - February 28 (or as early in 2010 as possible)

Enter fund income data for the 2009 tax year.
Produce and verify K-1 Summary. Once K-1 information is verified, print and send Schedule K-1s or substitute K-1s for 2009.
Begin entering 2010 transactions. For each new participant, create an entry using Add Person, then add the gift and associate the appropriate person records with it.
Run Unitize New Gifts to assign units to new gifts. The frequency with which you run Unitize New Gifts will depend on the fund's unitization method.
Record deaths and severed gifts as necessary. These functions will make all necessary adjustments.

Late March, June, September, and December

Record the last gifts, deaths, and severances to be included in the distribution for the period.
Run Distribute Income to distribute income based on an estimated number of dollars per unit for the period; print and verify the Distribute Income Detail reports produced by this function.
Print checks and, if necessary, advices for period. Send them.
Backup the database using Database Manager and update the fund to the next period in 2010.

2011

Early January (immediately following the end of the year)

Enter last fund gifts and severances of 2010.
Confirm all year-end gifts; double check entire year's activity.
Run Distribute Income to distribute income for the adjusting period of 2010 (quarter 5 for a quarterly paying fund) using the actual number of dollars earned during the year; print and verify the Distribute Income Detail reports produced by this function.
Print checks and, if necessary, advices for the adjusting period of 2010. Send them to participants, or hold them for mailing with K-1s.
Backup the database using Database Manager.
Run Year End Update to update the organization with which the fund is associated to 2011. Also, update the fund to 2011. This will allow you to produce payments for 2011.

and so on ...