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- 2 - util i zed in accordance with the purposes established by the sourc e of such funds and are in contrast with un­restrlcted funds over which the University's management retains full control to use in achieving any of its institutional purposes. Subs tantially all of the U.S. dollar endowment funds are subject to the restrictions of gift instruments requiring that the principal be invested and the income only be utilized. While quasi-endowment funds have been established by the University's management for the same purposes as endowment funds, any portion of quasi-endow­ment funds may be expended upon approval by the Board of Trustees. The ordinary income derived from the U.S. dollar endowment fund is accounted for in the restricted or unrestri cted current fund, as appropriate. Gains and losses from investment transactions are accounted for in the endowment fund and may be transferred to the current fund at the discret ion of the University's management. Investments of this endowment and similar funds are pooled on a market value basis, with each individual fund sub­scribing to units on the basis of the value per unit at market value at the beginning of the quarter following the date at which the transaction takes place. Of the total units each having an average market value at August 31, 1975 of $52.69, 38,941 were owned by the endowment fund and 53 by the quasi-endowment fund. The University follows the policy of providing an allowance to reduce individual investments in the U.S. dollar endowment fund to market whenever the market value of such securities becomes less than original cost. This allowance is reduced by the amount of any subsequent increases in the market value of the applicable investments, but never more than original cost