Financial Policies

To establish policies to govern the preparation of, and responsibility for, investment reporting.

The University’s endowment spending rate policy balances the objective of maximizing budgetary support to endowed programs while ensuring that the purchasing power of the endowment is protected against inflation. The actual payout in any given year is determined by a formula designed to smooth the impact of short-term market moves on endowment payout.

To recover the direct administrative cost (expenses of the offices directly supporting the investment function) and indirect administrative cost (expenses incurred by University administrative and responsibility centers in support of programs that are funded by investment income) from investment income.

Given that Schools and Centers, from time to time, request to invest excess funds in the Associated Investments Fund (AIF), this policy provides a backdrop on the University’s long-term investment strategy executed through the University’s centrally managed and invested AIF, the due diligence required for the investment of unrestricted operating cash in the AIF for the five year lockup period, and the procedures for School/Center direct investment in and liquidation from this fund.

To assist students in financing the cost of education, the University administers several governmental and institutional loan programs.

To establish authority and responsibility for administering, disbursing and collecting short-term emergency loans to students.

Certain sales and services activities require that the University extend credit to individuals/parties outside the University.

Certain circumstances require that the University extend loans to outside parties. This policy relates to outside parties other than University employees.

By general policy, the University does not provide loans to employees. However, loans may be extended on an exception basis to employees under conditions of extreme personal need, or for the purpose of recruitment and retention of key faculty and staff.

The University may guarantee loans to certain employees or affiliated organizations.