UCSF Budget and Resource Management

Short Term Investment Pool ~STIP~

Overview

UCSF-UC Budget Conference

October 22-23 2007

Angela Hawkins & Morissa Gleichenhaus

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Introductions

Name Organization Primary STIP interest

• Concept

• Operations

• Strategy

• Specific question

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Agenda

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

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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.

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UCOP STIP Group Codes & Funds

UCOP STIP Computation Mapping Process STIP Organization – Groups and Subgroups Campus Mapping -- Ledger to STIP Groups (Reports)

1) Allocation of General Ledger Balances to UCOP STIP Funds Report (376A)

2) Manual Adjustment Schedules (Adjustment Reports)

3) Distribution of STIP Income to UCOP STIP Funds by Fund Group Based on Fund Balances (3851)

4) Cash Balances and Distribution of Income from STIP Report (Anne Broome)

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STIP Groups and Distribution PrinciplesUsual UCOP STIP Distribution

Group I University-Wide Basis Funds

STIP earnings or expense kept by UCOP.

Group II Gift, Endowment, and Private Grant Funds

STIP earnings or expense computed by individual fund. STIP earnings distributed to individual fund; STIP expenses reclassified to Group V.

For Medical Compensation Plans: STIP earnings assigned in aggregate to campus for specific distribution. If expense STIP reclassified to Group V.

For Hospital Funds (i.e. Medical Center): Follows separate Medical Center distribution process.

Unexpended Plant – Borrowed Funds: STIP reclassified to Group V.

Group IV Federal Funds Net STIP earnings or expense computed in aggregate (not computed by individual fund). Net STIP expense reclassified to Group V. In the extremely rare event of aggregate net STIP earnings, they must be remitted to the Federal Government.

Group V Campus Unrestricted Funds

Net STIP earnings or expense computed in aggregate by Subgroup (not computed by individual fund). Net STIP earnings or expense given to campus in a single lump sum. Campus has broad discretion on whether and how to further distribute this STIP.

Group 0 Zeroed Out Funds Ignored for STIP distribution calculations. No STIP earnings or expense computed.

Group III Medical Compensation Plans and Hospital Funds

STIP Group

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

STIP Groups are divided into subgroups

UCSF TIE UCSF TIE

UCOP STIP Groups and Subgroups CODE UCOP STIP Groups and Subgroups CODE

Group I: Universitywide Basis Funds 1000 Group IV: Federal Funds 4000Current 1100 Group V: Campus Unrestricted Funds 5000

Educational Fee (including loans) 1110 Current 5100General Fund and Special State Appropriations 1120 Agency 5105Endowments 1130 S&S Educational Departments (Excl Medical Comp Plans) 5110University of California Housing System 1140 Student Fees (Excluding Education Fee) 5115Self-Insurance Reserves 1150 State Contracts 5120Other Sources 1190 Local Governments 5125

Plant 1300 Private Contracts 5130State Appropriations 1310 S&S Auxiliary Enterprises 5135Regents and President's Funds 1320 Reserves 5140Unexpended Plant-Borrowed Funds 1330 Service Enterprises 5145Transfer from Net Revenue Funds 1340 Other Sources 5190Renewal & Replacement - Bond Financed Facilities 1350 Accounts Payable and other Balance Sheet Items 5195Retirement of Indebtedness 1360 Loan (Excluding funds in STIP Groups I, II and IV) 5200

Group II: Gifts, Private Grants & Endowments 2000 Plant (Excluding funds in STIP Groups I, II, III, and IV) 5300Gifts & Private Grants 2010 Unexpended 5310Endowments 2020 Reserves for Renewal and Replacement 5320

3000 Retirement of Indebtedness5330

Medical Compensation Plans 3010 Group 0: Zeroed Out Funds 0000

Group III: Medical Compensation Plans

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STIP Organization – Groups and SubgroupsGroups with Subgroups including OP STIP Funds Subgroups include ranges of STIP Funds (Handout shows UCSF

ranges)

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General Ledger to STIP Fund 376A

Monthly reports translating campus accounts to UCOP STIP Funds

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Adjustments by STIP Fund

Monthly reports adjusting UCOP STIP FundsSTIP Manual Adjustments--April 2006

Location Fund Amount Description Description2 00000 (1,243,205,046.13) Zero Out2 00001 4,937,618.73 Zero Out2 01365 161,742,856.55 To 2-63000 Hospital Adjustment2 01471 4,809,410.77 Fr 2-019992 01493 7,864.27 To 2-770002 06305 (784.00) To M-063052 19900 (38,030,000.00) Ed Fee/General Funds Proration2 19900 (176,723.00) San Francisco Financial Ctrl2 20095 38,030,000.00 Ed Fee/General Funds Proration2 20095 (33,314,222.69) To M-200952 20097 122,736.42 To 2-202992 20299 (122,736.42) Fr 2-200972 20899 (84,786.82) San Francisco Financial Ctrl2 63000 100,000.00 San Francisco Financial Ctrl2 63000 (161,742,856.55) Fr 2-01365 Hospital Adjustment2 63000 18,762,205.97 To 2-77000 Hospital Adjustment2 69999 5,000,000.00 Exception Report2 76092 (231,647.36) To 2-769992 76999 231,647.36 Fr 2-760922 77000 (9,300.19) Fr 2-00004

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Distribution Report STIP Fund Average 3851

Quarterly report showing monthly balances and resulting STIPUCOP STIP ReportSF-3851- FY06Qtr4

Location Fund Period 1 Period 2 Period 3 Average STIP Income2 00000 0.00 0.00 0.00 0.00 0.00 ZD2 00001 0.00 0.00 0.00 0.00 0.00 ZD2 00003 (4,311,113.41) (2,198,435.22) 0.00 (3,254,774.32) 33,609.942 00004 0.00 0.00 0.00 0.00 0.00 ZD2 00099 (3,934,057.05) (1,971,317.27) 0.00 (2,952,687.16) 30,490.482 00464 (127,659.96) (129,108.04) 0.00 (128,384.00) 1,325.682 00465 0.00 (48,000.00) 0.00 (24,000.00) 247.752 00468 89,718.71 164,571.64 0.00 127,145.18 0.00 N2 00471 (45.68) (45.68) 0.00 (45.68) 0.00 LO2 00472 6,564,408.15 6,626,334.62 0.00 6,595,371.39 0.00 N2 05397 (1,113,682.13) (442,738.32) 0.00 (778,210.23) 8,035.982 07427 (40,335,154.31) (42,340,620.61) 0.00 (41,337,887.46) 426,869.592 20000 337,077.64 (193,919.55) 0.00 71,579.05 0.00 N2 20899 14,750,734.72 15,281,260.08 0.00 15,015,997.40 0.00 N2 62998 (193,387,450.30) (187,969,895.48) 0.00 (190,678,672.89) 1,969,015.262 65999 (59,900,984.43) (61,533,200.23) 0.00 (60,717,092.33) 626,986.142 69750 (13,525,985.88) (15,819,776.89) 0.00 (14,672,881.39) 151,517.302 69999 (233,951,188.37) (258,405,167.42) 0.00 (246,178,177.90) 2,542,122.832 77000 (56,902,647.63) (63,178,789.10) 0.00 (60,040,718.37) 620,001.63

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STIP Distribution Process at UCOP

Campus variances

Campus Profiles – Compare Step 3 Balances:Group 1: Students, Student Fees, 19900 appropriationsGroup 2: Volume of Gifts & EndowmentsGroup 3: Campus Medical School & Unexpended Plant (Financed Capital Projects)Group 4: Volume of Federal FundsGroup 5: Other Current, Loan and Plant funds (Is Fed AP identified to fund id?)

Subgroup RelationshipsQuestion: Are Federal AP identified to fund ID’s? Answer: If Yes, Group IV balance is reduced; if No, Group V Accounts Payable and

Other Balance Sheet Items is reduced.

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STIP Distribution Process at UCOP – Step 3

HANDOUT STEP 3

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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?

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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

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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.

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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)

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QA