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Executive Policy 8.201 Executive Policy 8.201



Title

Cash  Management  And Short-Term Investment  of Operating Funds

Header

Executive Policy Chapter 8, Business and Finance
Executive Policy EP 8.201, Cash  Management  And Short-Term Investment  of Operating Funds
Effective Date:  October 2014
Prior Dates Amended:  March 2000; July 1998
Responsible Office:  Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board of Regents Policy:  RP 8.202, Designation of Depositories, Checks and Vouchers and RP 8.207, Short-term Investments
Review Date:  August 2018

I. Purpose

To plan, manage and control the collection of revenues and the disbursements of funds so as to maximize the pool of temporarily idle cash.

To invest available idle cash to maximize yields while maintaining adequate security and liquidity in investments permitted under Hawai‘i Revised Statutes §36-21, short term investment of state moneys.

II. Definitions

No policy specific or unique definitions apply.

III. Executive Policy

A. The University shall assure the safekeeping of idle cash, and make full use of idle cash through an effective short-term investment program that will produce maximum returns.

C. All University personnel responsible for financial management shall provide for the expeditious billing, collection and deposit of funds due to the University.  Concurrently, disbursements shall be controlled so as to maximize the pool of cash from which short-term investments can be made.

E. Idle cash from all operating funds shall be pooled and invested by the Treasury Office.  Interest earned shall be prorated based on average daily cash balances.

F. Temporary idle cash shall be fully invested to obtain maximum yield consistent with safety, liquidity and diversification.

G. Short-term investments of operating funds shall be made in accordance with HRS 36-21.

H. Investments shall only be made with a financial institution chartered and licensed in the State of Hawai‘i as defined by HRS 412. 

I. Collateralization of savings and checking accounts and certificates of deposit shall be required for all investments exceeding the maximum amount of federal deposit insurance.

IV. Delegation of Authority

Responsibility and authority for the management of short-term investments of operating funds is delegated to the Senior Vice President for Budget and Finance/CFO or designee.

V. Contact Information

Subject Matter Experts
 Barbara Kawamoto
 barbara.kawamoto@hawaii.edu
 956-6295
 
Office of the Vice President for Budget and Finance/Chief Financial Officer at 956-8903 or htodo@hawaii.edu
UH Treasury Office – uh-treasury@lists.hawaii.edu

VI. References

    A. HRS 36-21as amended - http://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001-0042F/HRS0036/HRS_0036-0021.htm

    B. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/

    C. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

VII. Exhibits and Appendices

No Exhibits and Appendices found

Approved

    Signed    
    David Lassner    
    October 31, 2014    
    Date    
    President

Topics

No Topics found.


Attachments

None