SUBJECT:  PPM 410-10 Assessment of Current Gift and Private Grant
                     Fund Interest Earnings from UCSD and the UC San Diego
                     Foundation

General Accounting has recently distributed the first quarter STIP earnings in accordance with the revised PPM 410-10. As you recall, a Campus Notice was issued last June regarding changes to the distribution of earnings return for private gift and grant funds.

Effective July 1, 2002, the first 2% of earnings on current gift and private grant funds held by The Regents and the UC San Diego Foundation will be allocated to the Vice Chancellor units associated with the individual funds for use as needed to support the academic mission. Current gift and private grant fund investment earnings in excess of 2% will be transferred to the Vice Chancellor- External Relations to assist in funding the capital campaign.

You may access the detailed PPM electronically at the following address:
http://adminrecords.ucsd.edu/PPM/docs/410-10.html

Questions regarding the effects of this policy revision should be referred to the Vice Chancellor of your division.

                                                John A. Woods
                                                Vice Chancellor
                                                Resource Management and Planning