Short Term Investment Pool STIP Overview

1
Short Term Investment Pool STIP Overview

• UCSF-UC Budget Conference
• October 22-23 2007
• Angela Hawkins Morissa Gleichenhaus

2
Introductions

• Name
• Organization
• Primary STIP interest
• Concept
• Operations
• Strategy
• Specific question

3
Agenda

• STIP Concept
• UCOP STIP Group Codes Funds
• STIP Distribution Process at UCOP
• STIP Distribution Process at UCSF
• STIP Management
• Campus Corral
• QA

4
STIP Concept

• The Short Term Investment Pool (STIP) is the
  interest earned on cash balances transferred
  nightly to UCOP.
• UCSF cash balances are aggregated with all UC
  cash balances and managed at UCOP as a single
  pool.
• The resulting STIP is proportionally distributed
  at the end of each quarter based on average
  monthly balances.

5
UCOP STIP Group Codes Funds

• UCOP STIP Computation Mapping Process
• STIP Organization Groups and Subgroups
• Campus Mapping -- Ledger to STIP Groups (Reports)
• Allocation of General Ledger Balances to UCOP
  STIP Funds Report (376A)
• Manual Adjustment Schedules (Adjustment Reports)
• Distribution of STIP Income to UCOP STIP Funds by
  Fund Group Based on Fund Balances (3851)
• Cash Balances and Distribution of Income from
  STIP Report (Anne Broome)

6
STIP Groups and Distribution Principles
7
STIP Organization Groups and SubgroupsGroups
with Subgroups including OP STIP Funds

• STIP Groups are divided into subgroups

8
STIP Organization Groups and SubgroupsGroups
with Subgroups including OP STIP Funds

• Subgroups include ranges of STIP Funds (Handout
  shows UCSF ranges)

9
General Ledger to STIP Fund 376A

• Monthly reports translating campus accounts to
  UCOP STIP Funds

10
Adjustments by STIP Fund

• Monthly reports adjusting UCOP STIP Funds

11
Distribution Report STIP Fund Average 3851

• Quarterly report showing monthly balances and
  resulting STIP

12
STIP Distribution Process at UCOP

• Campus variances
• Campus Profiles Compare Step 3 Balances
• Group 1 Students, Student Fees, 19900
  appropriations
• Group 2 Volume of Gifts Endowments
• Group 3 Campus Medical School Unexpended Plant
  (Financed Capital Projects)
• Group 4 Volume of Federal Funds
• Group 5 Other Current, Loan and Plant funds (Is
  Fed AP identified to fund id?)
• Subgroup Relationships
• Question Are Federal AP identified to fund IDs?
  
• Answer If Yes, Group IV balance is reduced if
  No, Group V Accounts Payable and Other Balance
  Sheet Items is reduced.

13
STIP Distribution Process at UCOP Step 3

• HANDOUT STEP 3

14
STIP Distribution Process at UCSF

• Determined by Group
• Group 1 No Allocation all STIP kept by OP
• Group 2 Directly Distributed by OP
• Group 3 Hospital distributed per a separate
  agreement Medical Comp Plan computed by OP comes
  to campus for distribution (normally positive)
• Group 4 Negative Balance reduces allocation to
  campus (normally negative)
• Group 5 Allocated by a Separate Campus Program
  to Unit Account controlling the balance including
  Chancellor
• HOW DOES YOUR CAMPUS DIFFER?? DOES THE TREATMENT
  INCENT FISCAL ATTENTION TO CASH BALANCES BY THOSE
  CONTROLLING THE BALANCES?

15
STIP Management

• Day to Day Activities in Accounting Offices
• Review Deficit balances
• Consider month end balances and Time Draws
  accordingly (Payroll)
• Attend to new fund set up to appropriate Account
  and UCOP Fund Group Code
• Budget Office / Controllers Office Coordination
• Regular communications related to coding new
  funds
• Resolve distribution issues
• Review Trends and understand anomalies

16
Training Department Staff

• Explain consequences of both positive and
  negative fund balances
• Talk to Control Points
• Messages to Departments
• Spend Non-STIP earning funds (19900, 0pportunity
  Funds, etc.) before STIP earning funds
• Issues with fund balances in deficit
• Restrict carry forward balances of 19900,
  Opportunity Funds, etc.

17
Campus Corral

• What is the status, sophistication of each campus
  in the following
• Consider why your campus does things differently.
  Can you identify a justification/ rationale?
  Can you take steps to improve your STIP return?
• Processes (relationships, management)
• Tools (Distribution, tracking, other)
• Operations (Reports, Transfers, Communications)
• Policy (Written, formal process)
• Plans (Tracking, Changing systems, Forecasting)

18
QA