Calculating Admin Fees-Using Average Daily Balance or Average Trailing Quarters
With the market declining so much in the past 2 months, I am looking at how our Admin fees are calculated. We have been using the Average Daily Balance option, but since I reconcile only once a month, the system thinks the balance stays the same until the end of the next month. This has resulted in higher admin fees than I think should be charged. I am thinking that Average trailing Quarters would give a more accurate calculation?
Can you tell me which calculation you use and why?
thanks,
Joan Consani
Blue Mountain Community Foundation
Comments
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Hi Rosie, Yes I did do that and the trailing quarters method admin fees totaled more than $10,000 less. I think that is more accurate and I am going with that calculation. Even though it provides less money for our operations, I don't want to hit these funds with higher fees during this time.
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