Policies
and Procedures
Operating Funds
Policy
21-00-11.1 Investment Objectives
Policy
21-00-11.2 Investment Management
Policy
21-00-11.3 Investment Term
Policy
21-00-11.4 Investment Type and Diversification
Policy
21-00-11.5 Asset Allocation
Policy
21-00-11.6 Collateralization
Policy
21-00-11.7 Management, Reporting and Monitoring
Financial
and Accounting Services
Overview
Financial
and Accounting Services is responsible for the treasury and general
accounting functions of the University. Financial and Accounting
Services is comprised of the Comptroller's Office and the following
units which are under the Comptroller's purview: Accounting Services,
Grants and Contracts, Disbursements, and Student Accounts.
The
Accounting Services Office is responsible for general accounting functions
with the exception of those associated with (1) restricted funds which
are administered by the Grants and Contracts Office; (2) loan funds
which are administered by the Student Accounts Office; and (3) payroll
agency funds which are administered by the Human Resources Office.
Accounting Services is responsible for the financial reporting of
the University.
The
Disbursements Office is responsible for reviewing claims and demands
against the University, and for making payment of the University's
legally incurred obligations for materials and services, including
payrolls.
The
Student Accounts Office acts as the official University Cashier and
is responsible for the control, collection and maintenance of records
related to money due the University from the sale of goods or rendering
of services. Such sales/services are primarily related to the financial
administration of the student registration process, but also include
non-registration transactions.
Location
of Units
Comptroller's
Office 329 Alumni Hall
Student
Accounts 100 Sparks Hall
University
Cashier 100 Sparks Hall
Debt Counseling
and Collections 100 Sparks Hall
Accounting
Services 400B Sparks Hall
Disbursements
400A Sparks Hall
Property
Accounting 400 A Sparks Hall
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Section
21-00 Office of the Comptroller
Overview
The
Comptroller is responsible for the general accounting records and
procedures as well as for the preparation and interpretation of financial
records, and for the paying of the University's legally incurred obligations
for materials, services, and payrolls. The Comptroller is responsible
for collecting amounts due the University from the sale of goods/services
and certain specific cost reimbursable agreements and for development
of the University's indirect cost recovery proposal.
The
Comptroller is also responsible to the Associate Vice President for
Finance and Administration for the management, collection, control
and custodianship of University funds and securities, for the administration
and accounting for funds held in trust, and for the fiscal administration,
accounting and reporting of student loan funds. The Comptroller
performs other such duties as may be assigned.
The
Vice President and Associate Vice President for Finance and Administration
are the only officers authorized in the name of Georgia State
University to transact business with banking and financial institutions
and with brokerage firms.
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Office of the Comptroller Policies and Procedures
Goergia
State University Investment Policy
Policy 21-00-10.1
Authority
The
Board of Regents of the University System of Georgia ("Board") has
governing authority for the University System, including the management
and investment of funds. The Senior Vice Chancellor for Capital
Resources/Treasurer of the Board is responsible for working with institutions
in the University System of Georgia in the development of investment
policy. An investment advisory committee with membership drawn
from institutions within the University System of Georgia assists
the Senior Vice Chancellor for Capital Resources/Treasurer in fulfilling
this task. Responsibility for investment management at Georgia
State University is delegated to the President of the University,
the Vice President for Finance and Administration, and their staff.
Endowment
Funds
Policy 21-00-10.2
Investment Objectives
Endowment
funds are gifts from donors subject to restrictions that the principal
be invested in
perpetuity and the income generated therefrom be expended for current
operations in accordance with donor restrictions. The goal of
the endowment investment program is to provide a real total return
from assets invested that will preserve the purchasing power of the
endowment assets, while
generating an income stream to support the activities of the
University. The endowment investment objectives are:
1.
Protect the principal of the funds against permanent loss
2.
Generate sufficient investment return to provide sustainable funding
for current operating needs
3.
Grow the principal to protect the endowment from inflation
Policy 21-00-10.3
Investment Management
The Endowment investments
will be managed by the University. The University may contract
with investment managers to maximize earnings and to benefit from
pooled investment opportunities. Georgia State University may
utilize the pooled investment funds, that may be contracted by the
Board from time to time, available to institutions in the University
System of Georgia for investment of endowment funds.
Policy 21-00-10.4
Investment Term
Endowment
funds are a permanent investment and therefore can tolerate more volatile
investments than operating funds.
Policy 21-00-10.5
Investment Type, Asset Allocation and Diversification
Endowment
funds may be invested in cash and cash equivalents, U.S. Government
and Agency securities, certificates of deposit, banker's acceptances,
corporate bonds, commercial paper, common stocks, and pooled investment
funds.
Endowment
funds may be invested in the Total Return Fund.
Asset
allocation is determined based on the objectives of the endowment
fund. The investment objective of the Total Return Fund is to
maximize long term growth of income and principal. The asset
allocation, as defined in the Total Return Fund profile, is as follows:
"The
fund will seek its objectives by investing in common stocks, US Government
and Agency bonds, corporate bonds, convertible bonds, and cash equivalents.
A typical asset allocation will be 50-79% equities, 35-40% fixed income
and the remainder cash equivalents."
Policy 21-00-10.6
Spending Policy
The
objective of the endowment spending policy is to provide a steady,
growing income stream to support University programs while providing
sufficient reinvestment to protect the endowment from inflation.
Endowment spending will be set at 5% of the three-year moving average
of the market value of the endowment fund.
Policy 21-00-10.7
Management, Reporting and Monitoring
The Vice President
for Finance and Administration shall review on a quarterly basis all
University endowment investments. This review shall encompass:
1.
Review investment performance against established objectives
2.
Review investment activity to ensure compliance with investment policy
3.
Monitor investment performance against relevant market comparisons
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Review,
Recording and Reporting of Endowment Investments
Accounting
services maintains and reviews endowment funds to ensure proper recording
and reporting of these activities. The following
five procedures are taken to ensure that Policy 21-00-10.7, "Management,
Reporting, and Monitoring," is adhered to.
Procedure 21-00-10.7-1P
Maintaining Documentation
Accounting
Services maintains the folders that contain documentation for endowments
under the control of Georgia State University.
Procedure 21-00-10.7-2P
Calculation of Investment Income
Accounting services
calculates the investment income on endowment funds on a monthly basis.
The calculated interest is prorated to the individual fund balances
in Fund Code 40-12908 on a monthly basis through a journal entry.
Procedure 21-00-10.7-3P
Annual Amount for Spending
Accounting Services
determines the annual amount available for spending. Endowment spending
will be set at 5% of the three-year moving average of the market value
of the endowment funds. For purposes of computing endowment
spending, the market value as of December 31 will be used. This
enables Accounting Services to provide endowment spending information
in time to enable Financial Aid to award scholarships at the beginning
of the fiscal year.
A
copy of the calculation of the 5% endowment spending allowance is
then forwarded to Financial Aid, Student Accounts and the Georgia
State University Foundation.
Procedure
21-00-10.7-4P
Records of Awards
The Financial Aid
office is responsible for the awarding of scholarships made from the
endowment spending allowance and for maintaining records of the awards.
Procedure 21-00-10.7-5P
Reporting Award Amounts
Financial
Aid reports on a quarterly basis to Student Accounts and Accounting
Services the amounts awarded through scholarships made from the endowment
spending allowance, including the recipients names and Social Security
numbers.
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Operating
Funds
Policy 21-00-11.1
Investment Objectives
Funds
for the general operation of the University are received primarily
from State appropriations, tuition and fees charged to students, and
restricted funds from sponsoring organizations, primarily federal,
state and private grant-making entities. Funds received in excess
of amounts spent are available for investment in accordance with this
policy. Operating funds should not be invested in volatile asset
classes due to liquidity demands. The investment objectives
are:
1.
Protect the principal of the funds against permanent loss
2.
Maximize current income with a minimum of risk
Policy
21-00-11.2
Investment Management
The
University may contract with investment managers to maximize earnings
and to benefit from pooled investment opportunities.
Policy
21-00-11.3
Investment Term
Operating
funds will be invested in short-term, fixed-income instruments.
For purpose of this
investment policy, the definition of short term includes maturities
up to two (2) years (including the comparable short-term branches
of instruments with maturities extending beyond two (2) years).
Investment maturities will be determined by University management
based on funds available for investment compared to annual expenditures.
Policy 21-00-11.4
Investment Type and Diversification
In
accordance with Georgia Code Section 50-17-63, investment of State
funds is restricted to bonds, bills, certificates of indebtedness,
notes or other obligations of the United States, and its subsidiary
corporations and instrumentalities. Operating funds may be invested
in the Local Government Investment Pool (Georgia Fund I), the Board
of Regents Short Term Investment fund, or short term investment funds
offered by financial institutions. Funds in depository accounts
may be invested on an overnight basis in financial institution money
market funds or repurchase agreements collateralized by securities
identified below under "Collateralization".
Policy 21-00-11.5
Asset Allocation
Operating
funds will be allocated 100% to fixed-income securities, in accordance
with the previous captioned investment restrictions.
Policy 21-00-11.6
Collateralization
Funds
belonging to the State of Georgia cannot be placed in a depository
paying interest longer than ten (10) days without the depository providing
a surety bond to the State. In lieu of a surety bond, the depository
may pledge as collateral one or more of the following securities enumerated
in the Georgia Code Section 50-17-59:
1.
Bonds, bills, certificates of indebtedness, notes, or other direct
obligations of the United States or of the State of Georgia
2.
Bonds, bills, certificates of indebtedness, notes, or other direct
obligations of the counties or municipalities of the State of Georgia
3.
Bonds of any public authority created by the laws of the State of
Georgia, providing that the statute that created the authority authorized
the use of the bonds for this purpose
4.
Industrial revenue bonds and bonds of development authorities created
by the laws of the State of Georgia
5. Bonds,
bills, certificates of indebtedness, notes, or other direct obligations
of subsidiary corporation of the United States government, which are
fully guaranteed by the United States government both as to principal
and interest, or debt obligations issued by the Federal Land Bank,
the Federal Home Loan Bank, the Federal Intermediate Bank, the Central
Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan
Mortgage Association, and the Federal National Mortgage Association
6.
Guarantee or insurance of accounts provided by the Federal Deposit
Insurance Corporation
In
accordance with Georgia Code 50-17-53, the University is authorized
to exempt demand deposits from the collateral requirements.
Policy 21-00-11.7
Management, Reporting and Monitoring
The
Vice President for Finance and Administration shall review on a quarterly
basis all
University investments. This review shall encompass:
1.
Review investment performance against established objectives
2.
Review investment activity to ensure compliance with investment policy
3.
Monitor investment performance against relevant market comparisons.
The relevant market comparison is Donoghues' Money Fund Report
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