There are typically two possible reasons for removing a Fund from the Pool.   
  • One is because the Fund is being invested in a different investment or shouldn't be invested in this one. 
  • The other is because the Fund is being closed and the assets are either being granted or transferred to another Fund. 

In either situation, the process to close the Fund out of the Pool starts in the General Ledger with journal entries.   There is really only one way to properly remove a fund from a pool -- creating manual journal entries to move money out of the Fund's pooled asset account.  

Here are the general steps to move money out of a Fund's pooled asset account.   Read further to understand more detailed steps for different scenarios.
  1. Process journal entries to bring the balance in the Fund's pooled asset account in the General Ledger to $0. 
  2. The Apply Date can be any date you wish, but the FACTS Confirm Date MUST be the first day of the cycle you want to close the Fund out of.
  3. Make sure the Confirm Date on any and all other FACTS Transactions for this Fund are also the first day of the cycle.
  4. Process the Pool Allocation.
  5. Review the Unitization Report to be sure that the Ending Market Value for this Fund is $0 and Ending Units are 0.

Scenario 1: No physical transfer of assets : just journal the money to a different Fund   If you are not prepared to actually transfer assets in the amount of the journal entry, or the Fund is retiring and moving its assets to another Fund, then it will be necessary to offset the journals for the closing Fund with journals in another Fund. 
Choices might be any of the following: ·         
  • The largest Fund in the Pool ·         
  • An associated Fund (like the pass through Fund for an endowed Fund) ·         
  • The Operating Fund ·         
  • The General Unrestricted or Endowment Fund

The choice for the offset Fund is usually dependent upon the reasons for removing the Fund from the pool.  
For example, the Hunt Fund has a Pool balance in the GL of $123.00 in the 12000 Pool account. 
  • The Hunt Fund is not being closed.   It is just moving its money to a different Pool, the 14000 account. 
  • The Genu Fund is a General Endowment Fund and it is all right for it to have a temporary balance or overdraft in any Pool. 
So the decision is to use this Fund as the offset. 

We aren't transferring the $123.00 at the bank because the amount is too small.

The journal entries would be:  
14000 Hunt 123.00 DB
12000 Hunt 123.00 CR  
12000 Genu 123.00 DB
14000 Genu 123.00 CR  

This will bring the Hunt Fund 12000 to $0. 
The Confirm Date on the journal entry MUST be the first day of the cycle.  

If the Hunt Fund is retiring, and no physical transfer is being done, but money is just being moved to another Fund in the same Pool, you would most likely use transfer accounts.  
For example:    
12000 Hunt 123.00 CR
37000 Hunt 123.00 DB  
12000 Genu 123.00 DB
37000 Genu 123.00 CR  

Scenario 2: Do a physical transfer of money  
For example, the Hunt Fund has a Pool balance in the GL of $123.00 in the 12000 Pool account.  The Hunt Fund is not being closed.   It is just moving its money to a different Pool, the 14000 account. 

Below is a sample journal entry.  In this case, you must move the $123 at the bank from one pool to the other.  
12000 Hunt 123.00 CR
14000 Hunt 123.00 DB  

If the Hunt Fund is retiring, and a physical transfer is being done because money is being moved to another Fund in a different Pool, you would most likely use transfer accounts.  Once again, you must actually move the money at the bank.  
Sample journal entries:    
12000 Hunt 123.00 CR
37000 Hunt 123.00 DB  
14000 Genu 123.00 DB
37000 Genu 123.00 CR  
Confirming the Fund is out of the Pool  

After running the Pool Allocation Processing in FACTS, run and review the Unitization Report .  If the balance in the Fund being removed is $0 at the end of the first day of the cycle and there are no other entries for any other day (all the Confirm Dates are for the first day of the cycle), then it will not get any allocations, and therefore will no longer participate in the Pool.  

Continuing with the example above, if the Beginning Market Value for the Hunt Fund is $123, there should be a -$123 Value in the Gifts\Receipts\Transfers column.  Look at both the Ending Market Value and Ending Units .   Both should say 0.   If there is even a fraction of a Unit left, the Fund is not totally out of the Pool.  

If this is your situation, call FIMS Support for assistance in removing the fraction.  
  1. If the Ending Market Value is anything but 0, go to the Transactions tab again, and sort by Fund ID.   Look for any Transactions that still have Confirm Dates that are not the first day of the cycle. 
  2. Having two Transactions net to $0 on the 10 th of the month will cause an allocation to occur and the Fund will remain in the Pool. 
  3. Move the Confirm Dates for ALL Transactions for the Fund to the 1 st day of the cycle.  
  4. Then rerun Pool Allocation Processing and check the Unitization Report again.  
  5. If you maintain book in the GL, you will eventually need to process a manual journal entry moving the adjustment to market value to the book asset account to clear out that value.  
  6. When that journal is made, you must use an FA journal key because you don't want to impact FACTS further.  
  7. This entry can be made at any point ( before or after FACTS has been brought to $0 for the fund).

Tip: If you use asset rebalancing and plan to disburse the funds through the checking account, change the asset targets to 100% checking in the month prior to the disbursement to automatically sweep the balance out of the pool and into the checking account for disbursement.  You will need to modify the confirm date on the asset rebalancing transaction just as you would for a manual transfer entry.

If you still have issues or need further assistance, please contact FIMS Support before processing the Pool for the cycle.