Policy for Investing Institutional Funds

2.17

Preface: The policies listed below are to govern the objectives of funds investment for the funds of the institutions under the jurisdiction of the Board as well as the funds of the Board proper.

Purpose: In the absence of specific statutory or donor mandated directives concerning investment of monies by institutions of higher education under the governance of the Board, the purpose of this policy is to address the investment of monies accruing to the institutions from non-tax sources, including all institutional earnings. Nothing in this policy shall preclude one institution under the Board from pooling its investments with another institution as long as the mechanisms for such pooling are set forth in written policies in accordance with Institutional Guidelines 3. below. Nothing in this policy shall preclude one institution under the Board from accepting investible funds from institutions from within the statewide system of Higher Education as long as the mechanisms for receiving, accounting for and liquidating such investible funds, and any resulting interest or loss, are set forth in written policies maintained in accordance with Institutional Guidelines 3. below.

Institutional Guidelines

1.

Allowable monies for investment shall include all monies accruing to the institutions from non-tax sources, including all institutional earnings, that are not required by law to be invested by the State Treasurer.

2.

Allowable investment instruments shall include those permitted for the investment of state monies, as enumerated in Section 89.2(A) of Title 62 of the Oklahoma Statutes or other investment instruments as specifically approved by the Board.

3.

Investments of allowable monies shall be made in accordance with written policies established by the respective institutions and approved by the Board which shall address liquidity, diversification, safety of principal, yield, maturity and quality and capability of investment management, with primary emphasis on safety and liquidity. Provision shall be made for institutional officials authorized to make investments, for reporting and documentation of investments, and for selection of financial institutions and/or investment management services.

4.

To the extent practicable, the institutions' investment policies shall include provision for utilization of a system of competitive bidding in the investment of these funds. Such system shall be designed to maximize yield within each class of investment instrument, consistent with the safety of the funds invested. Institutions and agencies may invest allowable monies through the Office of State Treasurer, or provided a higher return on the investment can be earned, with other financial institutions and/or investment management services.

5.

Interest income from investments shall accrue to the fund from which the investment was made. Each institution and agency shall develop an interest income distribution plan to ensure that investment income shall be deposited to the source generating the principal invested. Nothing in this policy precludes the assessment of fees to support administration of the investment program.

Institutional Procedures

1.

Each institutional president is administratively responsible to the Board for the effective implementation and maintenance of such procedures. The institutional positions referenced below are administratively responsible to the respective institutional presidents.

2.

The chief fiscal officer of the institution is responsible to the president for transactions concerning investments in accord with the policies of the governing Board and will serve as the chair of an institutional investment committee (the chief fiscal officer has discretionary authority to assign personnel responsible to his/her supervision in effectively discharging the responsibilities of said officer).

3.

The institution may invest allowable funds of the institution through the Oklahoma State Treasurer's Office. Such funds will originate in agency special accounts (including, but not limited to, payroll trust funds, funds transferred to construction accounts, and travel trust funds) and may be funds which are advanced by granting agencies and deposited to agency relationship accounts as directed by conditions required by the terms of the contract or grant.

4.

The chief fiscal officer of the institution shall establish procedures on behalf of the institution to sufficiently analyze the cash-flow requirements of the institution and to sufficiently analyze market conditions as required to periodically evaluate investment performance of the State Treasurer's Office.

5.

The chief fiscal officer or his/her designee will direct the State Treasurer's Office pertaining to amounts available for investments to be accomplished in the State Treasurer's Cash Management Program or in longer term instruments. Except for funds required for operating expenses and invested as appropriate in the Cash Management Program, the institution may invest all other available funds in longer term investments as allowable under the laws of Oklahoma in order to accomplish the best rate of return on the funds invested.

6.

The institutional administration shall develop an interest-earned distribution plan to ensure that interest derived from the investment of monies generated by the collection of student fees/charges, revenue bond issues, or other restricted accounts shall be deposited to the original accounts generating the principal invested. Interest accrued by the investment of other monies shall be distributed to general purpose accounts as the general administration of the institution believes can best serve the objectives of said institution provided, however, the disbursement or expenditure of any such monies, including the interest derived from investments, shall be in accord with the policies established by the Board of Regents.

7.

Records pertaining to the investment of funds, interest accrued from such investments, as well as all other records of the institution shall be available at reasonable times for review of or examination by the Office of Internal Audit and subject to examination by external auditors as required by the governing Board.

Approved Date: 
June 16, 1989
July 15, 1994
Revised Date: 
June 20, 1997
April 24, 2015