Vice-President, Finance and Resources
Authorization: Board of Governors
Approval Date: Dec 17, 2004
Amended: May 1, 2009 / May 1, 2012
The purpose of this policy is to outline the practices governing the allocation of investment revenue to university funds and activities.
Investment income will be allocated to the following specific university accounts or activities:
Investment earnings allocated to the funds or activities described in the foregoing section will be calculated as follows:
Funds designated to receive investment income allocations that experience negative cash balances will be assessed an interest charge based on the Prime Business Rate minus 0.5% and the funds weighted average cash balance for the month, or as approved by PCIP.
Financial Services will ensure that investment income is allocated for all Trust and Endowment funds(non-spendable portion) and funds which require allocation of earnings to fulfill external requirements.
Requests for transfer of funds to an earnings-bearing fund or requests that earnings allocation be applied to an existing fund should be approved by the appropriate Dean or Administrative Unit Head and submitted to Pensions and Treasury, Financial Services.
PCIP approval is required for all transfers of funds to an earnings-bearing fund and designation of a fund as earnings-bearing.
Board approval is required where a transfer of funds or designation of a fund as earnings-bearing has the potential to allocate annual earnings of $500,000 or more to a specific unit/activity.
For funds approved as earnings-bearing, FSD will ensure that earnings are allocated on a monthly basis in accordance with this policy.
Financial Services to ensure that an annual report is provided to the Board summarizing approved allocation of earnings.
There are no other documents associated with this policy.
Contact Person: Treasurer and Director of Pensions, Financial Services