- Codes Applicable to Investments
- Fund Groups
- Authorized Sources of Investment
- Metropolitan West Securities, Inc.
Codes Applicable to
- Government Code
- Authority to invest funds / 11012
- Eligible securities for investment / 16430
- Bank deposits / 16506, 16510
- Security for bank deposit / 16520, 16521, 16522
- Savings & Loan association deposits / 16605, 16609
- Security for Savings & Loan Association deposits / 16610, 16611, 16612
- Education Code:
- Deposit and investment of:
- Student Body Organization Fees / 89301
- Student Body Center Fees / 89304
- Deposit into CSU trust accounts of moneys received (specific sources and purposes are listed) / 89721, 89722, 89724, 89725
- Deposit and investment of:
- State Administrative Manual (SAM)
- State Treasurer-responsibilities and investment services to State agencies / 7340
- Pooled money Investment Board / 7360
- Bank or savings & Loan association accounts outside of the centralized treasury system / 8002
- Accounting for investment securities / 8770
- Deposit and Investment of trust moneys not under the control of the Treasurer / 19460
- Bank deposits and security for deposits not under the control of the Treasurer / 19462
- Savings & loan deposits and security for deposits not under the control of the Treasurer / 19463
- Investment in securities of trust moneys not under the control of the Treasurer (custody of securities and journal entries) / 19464
- State University Administrative Manual
- Government Code
It is the responsibility of the Chief Business Officer to maximize the investment of surplus cash in order to generate the amount of interest earned. Only the appropriate investment channels shall be used, and interest income must be credited to the appropriate fund or sub-fund as may be directed by applicable statute or other controlling document.
The campus President may define the rules for distribution of interest income, except where interest income is defined in instruments such as bond resolutions, trust fund project agreements, and federal funding contracts. An administrative charge may be assessed for the direct costs of the cash management functions consistent with any limitations, including the President's definition.
The President of California State University, Fresno has delegated investment responsibilities to the Vice President for Administration. The Vice President for Administration has delegated the daily investment responsibilities to the Controller. Daily investment activity and review to ensure that University investments are within government regulations and the investment policy are to be performed by the Director of Accounting Services and his staff.Go to Top
For Purposes of this policy, funds are grouped according to SUAM section 3824.02:
Group I: Public Service Enterprise Funds (State University and Colleges [SUC])
- SUC Dormitory Revenue Fund and all subfunds
- SUC Dormitory Construction Fund and all subfunds
- SUC Dormitory Interest and Redemption Fund and all subfunds
- SUC Continuing Education Revenue Fund and all subfunds
- SUC Parking Revenue Fund
- SUC Facilities Revenue Fund
- SUC Dormitory Building Maintenance and Equipment Revenue Fund and
- all subfunds
Group II: SUC Trust Fund, including all related subfunds, excluding financial aid moneys.
Group III: SUC Special Project Fund
Group IV: Associated Student Body Funds
Group V: Foundation Funds.Go to Top
Authorized Sources of
- SUAM sections 3824.03.01 through 3824.03.05 describe the
authorized sources of investment by fund group:
Group I funds are invested through the State Treasury in the Surplus Money Investment Fund or by the State Treasury in a separate portfolio, with the exception of the Security Deposit collected from the students residing in the residence halls, which by law may be invested in the same securities as described in Group II. Although not listed separately, funds from Student Center fees are included in Group I. (SUAM 3824.03.01)
Group II funds may be invested utilizing: 1) The Surplus Money Investment Fund. 2) Banks and savings and loan associations; however, compliance with SAM sections 19462 and 19463 must be maintained. (These sections require that accounts must be insured or collaterized and reports must be submitted to the Treasurer at the time of deposit or purchase and with year-end financial statements.)
Group III funds are treated in the same ways as those in Group II.
Group IV funds are treated in the same ways as those in Group II, as well as by the purchase of investment certificates or withdrawable shares in chartered savings and loan associations and savings accounts of federal savings and loan associations, provided such associations are doing business in the State of California and have their accounts insured by the Federal Savings and Loan Insurance Corporation. Also, investment certificates or withdrawable shares in federal or state credit unions which are doing business in the State of California may be purchased, provided such associations have their accounts insured by the National Credit Union Administration. Any money so invested or deposited in certificates, shares, or accounts must be fully covered by such insurance.
Group V funds: No restrictions have been imposed on the investment of funds administered through separate, chartered, nonprofit organizations, unless the administrative board of the organization has established some criteria for investment.
- Federal funds may be invested in accordance with Bureau of the Budget Circular No. A-96 dated August 29, 1969
- The CSU is precluded from investing money from the State General Fund, State Construction Program Fund, Capital Outlay Fund for Public Higher Education, and Energy and Resource Fund.
- All Trust Fund (Fund 948) money, pending disbursement for its intended purpose, will be managed by Metropolitan West Securities, Inc. (Met West) in custodial accounts in the name of the California State University System (or individual campuses) (AD 97-08). The Campus Investment Manual for the California State University Short-Term Account and Total Return Account contains the information and forms required to establish a sub-account, initiate transactions, and access the sub-account information via the internet at the Met West website.
- SUAM sections 3824.03.01 through 3824.03.05 describe the authorized sources of investment by fund group:
- Section 16475 of the Government Code provides that trust funds shall receive semi-annual transfers from the Surplus Monetary Investment Fund (SMIF).
- In January 1997, the Board of Trustees approved the creation of a centralized investment fund, as authorized by Government Code Section 16430. The Board also agreed that an external fund manager should be hired to invest these funds consistent with the investment policy of the Board of Trustees. A management committee subsequently selected the firm of Metropolitan West Securities, Inc. (Met West).
Current Investment Procedures
- Insure accuracy of trust fund cash balances
in general cash (111010), claimable cash (111030), and cash
- Using PeopleSoft query, review balances for general cash, claimable cash and cash in-transit.
- Determine that any needed adjusting journal entries which may be needed to adjust general cash, claimable cash, cash in-transit have been posted to the General ledger.
- Determine that any needed cash/Fund Balance-Clearing transfer journal entries have been posted to the General Ledger.
- Determine that monthly bank reconciliations are completed and up-to date
- Remit all "available" trust fund cash to
State Treasurer Surplus Monetary Investment Fund (SMIF)
weekly (account 352022).
- Determine that cash remittances are being processed routinely and are up-to-date.
- "Available" cash is cash in excess of daily operating needs.
- Do not include any of the student financial aid related trust funds except fund 43300 and 43206 which should be included
- Insure accuracy of trust fund, Fund Balance
Clearing account balances (account 352002).
- Using PeopleSoft query, calculate the total of all Fund Balance Clearing accounts (352022) for all trust funds (4XXXX).
- Compare and reconcile the total in (a) above to the SCO balance available for fund 0948000 using access to the SCO on line system.
- Reconciling items may include remittances in-transit, claims paid, payroll charges and/or other miscellaneous charges or credits.
- Record any needed journal entries.
- Preferably, the reconciliation should be completed as of the end of a monthly period--after payroll has been posted to the General Ledger and the claim Reconciliation process has been completed and the usual entries have been posted to the General Ledger.
- Remit all available SMIF funds to MET West
- Review a list of all trust fund "Fund Balance Clearing" accounts for available funds, which may be invested. Consider excluding amounts needed for operating purposes during the next 12 months and all amounts less than $50,000. Do not include any of the student financial aid related trust funds.
- Based upon (a) above, prepare a check request for an
amount to be invested (wired) to Met West. Reconciliation
of the SCO balances and General Ledger balances as part of
the SAM 99 reconciliation process also provides an overall
assurance that the General Ledger Fund Balance Clearing
accounts are accurately stated after any needed journal
entries are recorded.
- The distribution should be as follows:
- For all 463XX, 465XX, 467XX, and 496XX trust funds: 112007 49623 00000 9002 00000
- For all other trust funds (AB 2812 types funds) the distribution should be: 112007 XXXXX 00000 9002 00000
- The check should be payable to CSU, Fresno acct. 1436380599.
- The distribution should be as follows:
- Deposit check in local B of A branch one-day prior to wire date.
- On the day after deposit, call B of A Government
Services Division requesting a wire transfer.
- Complete "Wire Transfer to Met West" from which includes date, beneficiary, banks, account number, etc.
- On the day of the wire deposit, fax a Total Return Account Cash Transaction Notice to Met West advising of a contribution and wire being sent. (Fax needs to be sent prior to 1:00 P.M. EST). Go to Top
- Insure accuracy of trust fund cash balances in general cash (111010), claimable cash (111030), and cash in-transit (111020).