opening doors for departments matt darring manager of investment accounting financial reporting and...
TRANSCRIPT
Opening Doors For Departments
Matt DarringManager of Investment
AccountingFinancial Reporting and Analysis
How The Internal Investment Program Works
BIG PICTURE
The Internal Investment Program is a short to medium term, risk free, and fully liquid investment vehicle
for departments
For FY 2008, the IIP had an average investment of $373m and $9.9m in
interest benefit for departments
Do You Have What It Takes?
Allowable Fund Sources
Qualified Fund Types (GA) (GL)
Gift & Endowment Distribution FundsDR ER DU
EU
2075209011001105
Local Plant FundsLP 5045
505551105215
E & G ReservesSP 5212
Auxiliary Operating and Reserve FundsSP LP SA
LA
52105215
1010 / 1120 / 11401125
A Positive Outlook
Cash Balance By Project Report
+ Project to Date Revenues- Project to Date Expenditures
+/- Transfers- Investments
Cash
Negative Number on CBR = Positive Cash
Positive Cash Balance and IIP Investment
Everybody In The Pool
Choose a Pool based on your cash needs
• Pool 1 (1215) - $10,000 threshold/minimum, Short Term Market Rate, 1 year minimum term
• Pool 2 (1216) - $500,000 threshold/minimum, Market + 1/2%, 2 year minimum term
• Pool 3 (1217) - $1,000,000 threshold/minimum, Market + 3/4%, 3 year minimum term
Live In The GL
InvestingGeneral Ledger Journal Entry
Category: UVA Transfer
DR/CR Entity Project Fund Source
Object Code
Org Future
Amount
DR Project Entity
Dept Project
Correct Fund
Source for Project
1215/6/7 Project Owning Org
0000 $$$$
CR Entity on
Dept Project
128471
Fund Source on
Dept Project
1215/6/7 99999 0000 $$$$
InterestingInterest Earnings are automatically
allocated and reinvested every quarter by FRA
D and E Awards are automatically installed
Interest Income is posted to Object Codes 4836/7/8 depending on investment pool
This is the only automatic part of the Internal Investment Program, all other
activity requires Department action
Getting Out of The Pool Safely
DivestingGeneral Ledger Journal Entry
Category: UVA Transfer
DR/CR Entity Project Fund Source
Object Code
Org Future
Amount
DR Entity on
Dept Project
128471
Fund Source on
Dept Project
1215/6/7 99999 0000 $$$$
CR Project Entity
Dept Project
Correct Fund
Source for Project
1215/6/7 Project Owning Org
0000 $$$$
Divest To Avoid The Man
Penalties exist for:
• Cash deficits• Not meeting minimum investment
amounts• Not meeting minimum term limits
Typical penalty is the loss of a quarter's interest
Report, Reconcile, & Relax
Run the Cash Balance by Project Report at least monthly to monitor cash
balances and divest IIP if necessary
Down To Brass TacksIIP Quarterly Rate History
0.0000
0.2000
0.4000
0.6000
0.8000
1.0000
1.2000
1.4000
Pool 1 Pool 2 Pool 3
Pools 2 & 3 did not exist before FY 2008
More Tacks
Average annualized rates for the Pools for Fiscal Year 2008
Pool 1 3.27%
Pool 2 3.72%
Pool 3 3.97%
Don't Make These Mitsakes
Pay attention to these problem areas
• 99999 org value on the offset side of entry• 128471 project on the offset side of entry• Project Owning Org on department side of
entry• Award Purpose Code Fund Source on both
sides• PTD Cash Balance w/o Commitments is the
cash balance to use
