Business and Finance
Office of Business and Finance – Policies and Procedures
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The recommendations presented here are designed to support the following objectives:
Preservation of principal and purchasing power, including meeting or exceeding state
Maximize return of a valuable asset without jeopardizing safety of public funds.
Alignment with university academic and financial goals.
Applies to: All university personnel responsible the management of the Operating Fund.
Short -Term Pool – the Short-Term Pool should be invested primarily in lower risk,
more liquid instruments such as government securities and maintain a balance
equivalent to at least 60 days operating cash. Once this threshold is reached, the
senior vice president for business and finance will have the authority to approve
investment of up to 60% of the operating funds, net of construction bond funds, in
the Long-Term Investment Pool.
Long -Term Pool – once the amount of the Short-Term Pool is determined, excess
operating funds may be transferred to the Long-Term Investment Pool, where they
will be invested along with gifted endowment funds. In no case may the Long-Term
Pool exceed 60% of the total operating funds, net of construction bond funds.
Interest Stabilization Fund – in order to protect operating cash invested by the
university for individual units, a reserve of 5% of the operating funds invested in the
Long-Term Pool shall be maintained in the Short-Term Pool. This will assure the
short term interest rate can be paid out even when returns in the Long-Term Pool
fluctuate because of market conditions.
President's Strategic Investment Fund II – over time, the Long-Term Pool should be
expected to earn returns 3-4% above the Short-Term Pool, alt