stephen f. austin state university · was ordered that dan angel continue as president of stephen...
TRANSCRIPT
Stephen F. Austin
State University
Minutes of the
Board of Regents
Nacogdoches, Texas
April 30,1996
Volume 145
TABLE OF CONTENTS
96-45 Approval of January 30,1996 Minutes f 96-46 Election of Board Officers 1 96-47 Election of President .""!""".!.""." l 96-48 Election of General Counsel .V///.!!.V//.!!.V.V."..".".V.*.!!'.".V.".!.'.V 1 96-49 Faculty and Staff Appointments for Spring 1996...."....... 1 96-50 Faculty and Staff Appointments for 1996-97 2 96-51 Changes in Status 3 96-52 Promotions ."T..V.V....T........"........" 3 96-53 Tenure 4
96-54 Regents Professorships for 1996-97..".!. 4 96-55 Faculty Development Leaves ."" 4 96-56 Retirements !.!!*."!!!."."'."! 4 96-57 Voluntary Modification of Employment .........".. 5 96-58 Faculty Workload Report '.'.'.'.'.'.'.'."'. 5 96-59 Underenrolled Class Report for Spring, 1996..."...'............"."."."." 5 96-60 Acceptance of General Bulletin and Graduate Bulletin ".".".*""" 7 96-61 Top Ten Scholarship Program 7 96-62 Doctor of Education Degree in Educational Leadership...............\" 7 96-63 Room and Board Rates 7 96-64 Student Information Kiosks !."."!."."!!."!!"!."!!!!!!.".".'.'.'."."" 8 96-65 Revision of Investment Policy '.".'.'.'.'.'.'.'. 8 96-66 Budget Changes - Reporting Items Less Than $50,666".'.".'.".'.'.'.".'.'.'.'.'.".'.'."!!."" 8 96-67 Approval to Solicit Bids for Purchase of Three Interactive Video Systems .. 8 96-68 Amendment to Coordinating Board Approval - Utility Loop... 8 96-69 Authorization of Project Substitution - HEAF Funds 8 96-70 Subcontractor Bids on Music Building Construction and Renovation 8 96-71 Roof Repair Bids .."."!!" 8 96-72 Construction Manager for Austin Building Renovation! Utility Loop
Project and Human Sciences Elevator Project 9 96-73 Feed Mill Installation '."."""'.7."."."'.'.".'."'.".'.'."".'.'."!'.".'." 9
Reports
A. Chair, Faculty Senate
B. Vice President, Student Government Association C. Vice President for University Advancement D. President
Appendix No. 1 - Room and Board Rates for 1996-1997 Appendix No. 2 - Current Investment Policy Appendix No. 3 - Revised Investment Policy Appendix No. 4 - Budget Changes
MINUTES OF THE MEETING
BOARD OF REGENTS STEPHEN F. AUSTIN STATE UNIVERSITY
NACOGDOCHES, TEXAS
April 30,1996
The meeting was called to order at 9:07 a.m. by Chair Ron Adkison. Board members present: Sissy Austin, R. A. Brookshire, Pattye Greer, Lynn Montes, and Jimmy Murphy. Absent: Dionne Bagsby, Retta Kelley, and Murray Shaw.
Others present: Dan Angel, Janelle Ashley, Jerry Holbert, Baker Pattillo, Roland Smith, Yvette Clark, other University personnel, Daily Sentinel reporter Ayoka Campbell and KTRE-TV reporter Donna McCollum.
Dr. Angel recognized the Sesquicentennial Scholarship recipients, Amanda Kirk and Amanda Collier. He then recognized professors who were promoted and awarded tenure and announced the Regents Professors for 1996-97.
Chair Ron Adkison declared the meeting in Executive Session at 9:19 a.m., and brought the meeting back into Open Session at 10:05 a.m.
96-45
Upon motion of Regent Greer, seconded by Regent Austin it was ordered that the minutes of the January 30,1996 meeting be approved.
96-46
Upon recommendations by the Board Nominating Committee and a motion of Regent Austin, seconded by Regent Montes with all members voting aye, it was ordered that the Board Chair be Ron Adkison, Vice Chair be Murray Shaw and Secretary be Jimmy Murphy.
96-47
Upon motion of Regent Brookshire, seconded by Regent Murphy with all members voting aye, it was ordered that Dan Angel continue as President of Stephen F. Austin State University at his current salary.
96-48
Upon motion of Regent Greer, seconded by Regent Austin with all members voting aye, it was ordered that Yvette Clark continue as General Counsel of Stephen F. Austin State University at her current salary.
96-49
Upon motion by Regent Murphy, seconded by Regent Montes with all members voting aye, it was ordered that the following appointments be approved for Spring 1996:
1. Education
Betty Alford Humble $1040 William Heeney Jasper 1447
Sandra Lowery Fairfield 989
Robert Marshall Longview 686 Bennat Mullen Longview 686
Andrew Nutt Longview 936
Milton Payne Trinity 1246
Hugh Douglas Prewitt Humble 790
Jose A. Rodriguez Humble 1040
Carol A. Shaw Humble 1040 Sharon Spall Humble 1040
Jerry Irons Coordinator 800
96-50
Upon motion by Regent Murphy, seconded by Regent Brookshire with all members voting aye, it was ordered that the following appointments be approved for 1996-97.
1. Biology
Dr. Robert H. Johnson, Assistant Professor, Ph.D. (University of South Carolina), at a salary of $32,000 for nine months, effective September 1, 1996.
2. English
Mr. Edwin R. Nagelhout, Assistant Professor, M.A. (Purdue), at a salary of $31,000 for nine months, effective September 1, 1996, contingent upon completion of doctorate by September 1, 1996.
Ms. Janet McAdams, Assistant Professor, M.F.A. (University of Alabama), at a salary of $31,000 for nine months, effective September 1, 1996, contingent upon completion of doctorate by September 1, 1996.
3. Human Sciences
Dr. Scott D. Murdoch, Assistant Professor, Ph.D. (University of North Carolina), at a salary of $35,000 for nine months, effective September 1, 1996.
4. Kinesiology & Health Sciences
Dr. Rodney Bowden, Assistant Professor, Ph.D. (Texas A&M University), at a salary of $30,000 for nine months, effective September 1, 1996.
5. Management and Marketing
Mr. Robert A. Culpepper, Assistant Professor, MBA (Louisiana State University), at a salary of $47,000 for nine months, effective September 1, 1996, contingent upon completion of doctorate by September 1,1996.
6. Sociology
Dr. Nancy A. Wisely, Assistant Professor, Ph.D. (University of Minnesota), at a salary of $31,500 for nine months, effective September 1, 1996.
96-51
Upon motion by Regent Montes, seconded by Regent Murphy with all members voting aye, it was ordered that the following changes of status be approved:
1. University Affairs
Mr. Derek Allister, Men's Assistant Basketball Coach, from a salary of $42,640 for 10.5 months to Men's Head Basketball Coach at a salary of $62,919 for twelve months, effective April 9,1996.
Ms. Sherrie Sitton, Purchasing and Sales Supervisor, from a salary of $15,864 for twelve
months to Assistant Manager of the Bookstore at a salary of $25,000 for twelve months, effective February 1,1996.
Mr. Eugene Chizik, Assistant Coach and Instructor, from a salary of $35,885 for 10.5 months to $47,307 for 10.5 months, effective February 14, 1996.
Mr. Edward Wittel, Learning Center Facilitator, from a salary of $15.00 per hour as an on call employee to Programmer Analyst II at a salary of $24,720 for twelve months, effective April 1, 1996.
96-52
Upon motion by Regent Murphy, seconded by Regent Montes with all members voting aye, it was ordered that the following individuals be granted promotion to the academic rank indicated, effective fall semester, 1996.
To Assistant Professor:
Deborah Dalton
To Associate Professor:
Miles McCall
Ravi Behara
Christine Irvine
Elizabeth Rhodes
Janie Kenner
Glen McCuller
Chris Ninness
Mitzi Penitt
Alan Nielsen
Brent Carbajal
Gary Ford
DaleHearell
Robert Feistel
To Professor:
Geralyn Franklin
Debbie DuFrene
Gary Frields
Music
Communication
Management/Marketing
General Business
Kinesiology & Health Science
Human Sciences
Counseling & Special Educational Programs
Counseling & Special Educational Programs
Human Sciences
Theatre
Modern Languages
Psychology
English
Mathematics & Statistics
Management/Marketing
General Business
Art
To Emeritus/a:
Hershel Reeves Forestry John Quinn English
Joy Reeves Sociology
Robert G. Dean Mathematics & Statistics
96-53
Upon motion by Regent Murphy, seconded by Regent Montes with all members voting aye, it was ordered that academic tenure be awarded to the following individuals, effective September 1,1996.
Miles McCall Communication
Ravi Behara Management/Marketing Elizabeth Rhodes Kinesiology & Health Science Lisa Mize Human Sciences William E. Johnson Kinesiology & Health Science Deborah Dalton Music
Alan Nielsen Theatre
Brent Carbajal Modern Languages Frank Codispoti Political Science & Geography Darrel McDonald Political Science & Geography Mark Ludorf Psychology SherylMylan English Wade Carter Library
Karen Wielhorski Library
96-54
Upon motion by Regent Murphy, seconded by Regent Montes with all members voting aye, it was ordered that the following be awarded Regents Professorships for the academic year 1996-97.
Dr. Jere Jackson, Professor, History Dr. David Kulhavy, Professor, Forestry
96-55
Upon motion by Regent Murphy, seconded by Regent Austin with all members voting aye, it was ordered that the faculty members listed below be awarded Faculty Development Leaves for the semester(s) indicated.
Fall 1996:
Dr. John Harlan Criminal Justice Dr. Mark A. Turner Accounting
Spring 1997:
Dr. Scott L. Bills History
96-56
Upon motion by Regent Murphy, seconded by Regent Austin with all members voting aye, it was ordered that the following retirements be accepted.
1. English and Philosophy
Dr. Roy Cain, Professor, effective May 15, 1996 Dr. Mary Ella Lowe, Professor, effective December 31, 1996
96-57
Upon motion by Regent Murphy, seconded by Regent Monies with all members voting aye, it was ordered that the following requests for retirement and subsequent modification of employment be' approved:
Dr. Carroll R. Schoenewolf, English & Philosophy, effective January 1, 1998 Dr. Charles T. Nail, History, effective September 1,1996
96-58
Upon motion by Regent Murphy, seconded by Regent Montes with all members voting aye, it was ordered that the faculty workload report for the spring semester, 1996 be approved as submitted.
96-59
Upon motion by Regent Murphy, seconded by Regent Austin with all members voting aye, it was ordered that the following underenrolled classes be approved for the spring semester, 1996, as indicated.
1. AGD 481.001- Teaching Age Sci Sed Enrollment: 9
Maintain Sequence
2. CHE 420.001L - Environmental Chemistry Lab Enrollment: 8
Graduating Senior
3. CHE 321.001 - Applied Chemical Concepts Enrollment: 9
Graduating Senior
4. CHE 420.001 - Environmental Chemistry Enrollment: 8
Graduating Senior
5. CSC 331.001 - Prog Method Scien Application Enrollment: 8
Maintain Sequence
6. ECH 328L.011 - Early Childhood Laboratory 1 Enrollment: 9
Maintain Sequence
7. ENG 234.001 - Literary Genres/Honors Enrollment: 8
Maintain Sequence
8. ENG 330.001 - Modern Latin American Fiction Enrollment: 7
To Support New Latin American Minor
9. FRE 410.001 - French Lit of the 20th Century Enrollment: 5
Graduating Senior
10. GEO 375.001 - Topics: Biogeography Enrollment: 8
Graduating Senior
11. GEO 365.001 - Political Geography Enrollment: 6
Graduating Senior
12. GEO 439.001 - Urban Geography Enrollment: 4
Graduating Senior
13. GER 132.001 - Elementary German
Enrollment: 8
Maintain Sequence
14. GER 209.001 - Intermediate German Conversation Enrollment: 8
Graduating Senior
15. GER 304.001 - Main Currents of German Literature Enrollment: 9
Graduating Senior
16. GOL 132.003 - General Geology II Enrollment: 7
Maintain Sequence
17. GOL 243.001 - Sedimentary Petrology Enrollment: 8
Graduating Senior
18. GOL 243L.011 - Sedimentary Petrology Lab Enrollment: 8
Graduating Senior
19. HMS 241L.055 - Sensory, Percept Motor Dev Lab Enrollment: 9
Maintain Sequence
20. HMS 241L.056 - Sensory, Percept Motor Dev. Lab Enrollment: 9
Maintain Sequence
21. MTH 522.001 - Regression Analysis Enrollment: 4
Maintain Sequence
22. MTH 440.001 - Advanced Calculus II Enrollment: 4
Maintain Sequence
23. PHY 441.001 - Optics Enrollment: 8
Maintain Sequence
24. PHY 441L.020 - Optics Lab Enrollment: 8
Maintain Sequence
25. PHY 551.001 - Advanced Quantum Mechanics Enrollment: 4 Graduating Senior
26. SED 450.003 - Students in Secondary Schools Enrollment: 6
Maintain Sequence
27. SED 460.003 - Instruction in Secondary Schools Enrollment: 6
Maintain Sequence
28. SPA 132.005 - Elementary Spanish H Enrollment: 9 Graduating Senior
96-60
Upon motion by Regent Monies, seconded by Regent Austin with all members voting aye, it was ordered that the General Bulletins (undergraduate and graduate) be accepted:
General Bulletin 1996-97 (undergraduate) Graduate Bulletin 1996-98 (graduate)
96-61
Upon motion by Regent Montes, seconded by Regent Austin with all members voting aye, it was £i,Tnn?f , op Ten ScholarshiP Program be renewable for the second year at SFA effective Fall 1996 based upon the following:
Satisfactorily completing a minimum of 24 semester hours during the first academic year with a cumulative 3.25 gpa or higher.
•Cumulative gpa of 3.50 - 4.00 $ 1,000 scholarship ($500 per semester) •Cumulative gpa of 3.25-3.49 $500 scholarship ($250 per semester) •Second year scholarship recipients must carry 15 hours per semester
96-62
Upon motion by Regent Greer, seconded by Regent Murphy with all members voting aye it was ordered that the proposal for a Doctor of Education Degree with a major in Educational Leadership be approved for submission to the Texas Higher Education Coordinating Board.
96-63
Upon motion by Regent Montes, seconded by Regent Greer with all members voting aye, it was ordered that the room and apartment rates for FY 1996-97 be continued at the current rates.
96-64
U5°n T°uti0nuby ReSent Montes, seconded by Regent Austin with all members voting aye it was ordered that the administration be authorized to purchase two electronically-based information " kiosks to be installed in Steen Library and in the University Center, with each containing a keyboard, electronic information screen, printer, coin box and a change-making device.
Estimated Cost: $106,000
Source of Funds: $15,000 HEAF FY '96 Debt Service Budget Balance $15,000 FY '96 Auxiliary Services Budget $76,000 HEAF FY '97
96-65
Upon motion by Regent Monies, seconded by Regent Austin with all members voting aye it was ordered that the proposed revised Investment Policy be approved as presented in Appendix No. 3.
96-66
No Board action was required regarding budget changes in amounts of $50,000 or less as presented in Appendix No. 4.
96-67
Upon motion by Regent Murphy, seconded by Regent Greer with all members voting aye it was ordered that the administration be authorized to proceed with the purchase of three Picture Tel Venue 2527 Compressed video processors for distance education in accordance with current state purchasing procedures and that the President be authorized to sign the necessary purchase documents.
Estimated Cost: $100,000
Source of Funds: HEAF
96-68
Upon motion by Regent Montes, seconded by Regent Murphy with all members voting aye it was ordered that the University seek Coordinating Board approval of a 2,000 square foot increase in tne building space requirement for the utility loop project.
96-69
Upon motion by Regent Montes, seconded by Regent Austin with all members voting aye it was ordered that up to $125,000 in FY '96 HEAF funding originally approved for street repairs in the Dorm 20 area be reallocated to street repair and paving projects along Wilson Drive Clark Boulevard, and the Plant Services area.
96-70
Upon motion by Regent Murphy, seconded by Regent Montes with all members voting aye it was ordered that the University be authorized to begin the base bid project for the Music Building renovation and addition immediately and that the President be authorized to sign the contracts with various subcontractors. Bid price was $5,854,200. It was further ordered that the Administration be authorized to seek permission from the Coordinating Board to increase the budget for the project and to proceed with the alternates when Coordinating Board approval is granted. Total project is not to exceed $6,511,627.
96-71
Upon motion by Regent Murphy, seconded by Regent Greer with all members voting aye, it was ordered that the bid for campus roof repair be tabled.
8
96-72
Upon motion by, Regent Montes, seconded by Regent Austin with all members voting aye, it was ordered that the President be authorized to execute a construction manager contract for the Austin Building Renovation, the Utility Loop Project (Power Plant E addition and underground piping), and the Human Sciences Elevator Project once necessary procedures have been completed.
96-73
Upon motion by Regent Austin, seconded by Regent Brookshire with all members voting aye, it was ordered that the request for addition to the feed mill building, installation of equipment, and associated modifications and improvements to the facilities be approved, and that the President be authorized to sign necessary construction and installation contracts, if project bids are within the budget.
Reports
A Faculty Senate Vice Chair, John Dahmus read a report from Chair Rick Berry concerning:
•Access to budget information
•Faculty input on Wellness Center programs. •Proposed change in last day to drop a class •Proposed development of a "Faculty Fair."
•New activities and approaches used by Admissions, including opportunities for direct faculty involvement in recruiting.
•Faculty Survey
•Resolution on Faculty Salaries
B . Student Government Association Vice President, Justin Darland •SGA election results: Erik Gobel and Justin Darland were re-elected as President and Vice President, respectively, and 26 new senators were elected
•Unfinished Business
Student Services Allocation Committee Prayer
Core Curriculum
C. Vice President for University Advancement, Jerry Holbert •Gifts for first half of FY '96 were $1,663,000 ($236,722 from Annual Fund, $767,000 in grants)
•Discussed the giving process, with Bernal endowment cited as a textbook case
D. University President, Dan Angel
•LTC Steve Clay reported on efforts to keep the Lumberjack Batallion •Presented Pace Setter Awards to Roland Smith and John Rulfs for utility savings •Presented a Lagniappe Award to Robert Rogers for landscaping and grounds work •SFA 98 Midway Report
The next meeting was scheduled for July 8 and 9, 1996.
Meeting adjourned at 11:00 a.m.
Appendix No. 1
Residence Hall
1
2
3
5
7
8
9
10
11
12
13
14
15
16
17
18
20
Unit I
Unit II
Unit in
Wisley Hall
Todd Hall
Gibbs Hall
North Hall
Hall 10
Mays Hall
South Hall
Wilson Hall
Hall 14
Griffith Hall
Hall 16
Steen Hall
KerrHall
Hall 20
Stephen F. Austin State University
Room and Board Rates for 1996-1997
Fall and Spring Semester
W/ 7 Day W/7 Day
14 Meals 20 Meals
Summer I or II
W/7 Day W/7 Day
14 Meals 9.0 M,
Rates above include sales tax for Board
* - Includes Utilities, Cable
Television and Telephone.
** - Includes Utilities, Cable
Television, Telephone, and
Laundry Facilities.
*** - Inlcudes Cable
Television and Telephone
For Accounting Purposes Only:
Appendix No. 2
STEPHEN F. AUSTIN STATE UNIVERSITY INVESTMENT POLICY
1.0 SCOPE
u ^ u i t t ■ P0 y cstablishes rules for the investment of all University funds and funds held by the University in trust for others except those endowment and SFA Foundation trust funds which are under the control and management of the Board selected fund managers.
2.0 AUTHORITY
2.1 The authority for this policy is Article 842a-2, V.T.C.S. as to all funds which are not required to be deposited in the State Treasury.
3.0 OBJECTIVES
3.1 The primary emphasis of all investment decisions shall be safety of principal. All investments must be undertaken with appropriate fiduciary responsibility in a reasonable and prudent manner, and must be in accordance with Texas law. Investment maturities must be diversified to match the Universityfs need for liquidity.
3.2 Investment decisions shall not incur unreasonable risks in order to obtain cuirent investment income.
3.3 The investment portfolio shall remain sufficiently liquid to meet all operating requirements which might be reasonably anticipated.
3.4 Investments will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.
3.5 Management of the investment portfolio will specifically avoid any purchase of investments, or any investment practices or procedures, not specifically authorized under the terms of this policy.
4.0 AUTHORIZED INVESTMENTS
4.1 All University funds and funds held in trust for others may be invested in:
4.1.1 Obligations of the United States of America, its agencies and instru mentalities;
4.1.2 Direct obligations of the State of Texas and agencies thereof;
4.1.3 Other obligations, the principal of and interest on which are uncondi tionally guaranteed or insured by the State of Texas or the United States of America or its agencies and instrumentalities;
4.1.4 Obligations of states, agencies thereof, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having
received a rating of no less than A or its equivalent;
4.1.5 Certificates of deposit of state and national banks doing business in Texas, guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or secured by obligations described'in 5.0 below, and pursuant to Article 2529b-l, in market value no less than the principal amount of the certificates;
4.1.6 .Fully collateralized direct repurchase agreements with a defined termin ation date secured by obligations described in 6.0 below with a market value of not less than the amount of the funds disbursed and pledged with a thirdparty other than an agent for the pledgor. Repurchase Agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a bank domiciled in Texas;
4.1.7 Gifts, grants and donations of non-educational and general funds or other property which are received in forms other than money may be maintained as investments in the form in which they were received or may be con verted to other types of investments at the determination of the Board.
5.0 INSURANCE OR COLLATERAL
5.1 All deposits and investments of University funds other than direct purchase of u. J>. Treasuries or U. S. Agencies shall be secured by a pledge of collateral with a market value equal to no less than 100% of the deposits or investments less an amount insured by the FDIC or FSLIC and pursuant to Article 2529d, the Public Funds Collateral Act Evidence of the pledged collateral shall be maintained by the University Comptroller. Repurchase Agreements shall be documented by a specific agreement noting the collateral pledged in each agreement Collateral shall be reviewed monthly to assure the market value of the securities pledged equals or exceeds the related bank balances. «i"<uaur
5.2 Pledged collateral shall be maintained for safekeeping by a third party depository.
6.0 COLLATERAL DEFINED
6.1 The University shall accept only the following securities as collateral:
6.1.1 FDIC and FSLJC insurance coverage;
6.1.2 United States Treasuries, Agencies, and Instrumentalities;
6.1.3 Other obligations, the principal of and interest on which are uncondition ally guaranteed or insured by the State of Texas or the United States of America;
6.1.4 Obligations of States, agencies thereof, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of no less than A or its equivalent
7.0 INVESTMENT OFFICER
i
7.1 The Vice President for Administrative and Fiscal Affairs shall serve as the Investment Officer for the University.
7.2 The Vice President for Administrative and Fiscal Affairs shall determine the total amount of institutional funds available for investment in accordance with projected cash flow requirements and is authorized herewith to use the services provided by the investment consultants and the Board selected Fixed Income Manager in the investment of those funds.
8.0 REPORTS
8.1 No later than 30 days after the end of each quarter of the fiscal year beginning September 1, the Vice President for Administrative and Fiscal Affairs will prepare and furnish to the Board of Regents a report of investments for the quarter just ended, yields on the investments and current balances. The report will group all investments by authorized investment category as described in Section 4.0 above
Appendix No. 3
STEPHEN F. AUSTIN STATE UNIVERSITY
INVESTMENT POLICY
1.0 POLICY STATEMENT
Stephen F. Austin State University invests the public funds in its custody with
primary emphasis on the preservation and safety of the principal amount of the investment. Secondarily, investments must be of sufficient liquidity to meet the day to day cash
requirements of the University. Finally, the University invests to maximize yield within the
two previously-indicated standards. All investments within this policy conform to all
applicable State statutes and local rules governing the investment of public funds. This
policy is promulgated in accord with the Public Funds Investment Act (Government Code,
Chapter 2256), related portions of the Texas Education Code, and the applicable portions of H. B. 2459, 74th Texas Legislature.
2,0 SCOPE
This policy establishes rules for the investment of all University and agency funds
except endowment funds. Endowment funds are invested in accordance with separate
policy approved by the Board of Regents the responsibility of fund managers selected by the Board of Regents.
3.0 OBJECTIVES
3.1 The foremost objective of all investment decisions shall be safety of
principal. All investments must be undertaken with the fiduciary responsibility
associated with that of a reasonable and prudent person. Investments must be in
accord with Texas law. Investment maturity must be diversified to match the
University's liquidity requirements.
3.2 Investments shall incur no unreasonable risk in order to maximize potential income.
3.3 Investments shall remain sufficiently liquid to meet all reasonably anticipated operating requirements.
3.4 Investments shall be diversified in order to minimize any risk inherent in the
purchase of multiple securities of the same type or within the same financial institution.
3.5 No investments within the portfolio or investment practices conducted to effect investment activities shall violate the terms of this policy.
4.0 AUTHORIZED INVESTMENTS
4.1 All University funds and Hinds held in trust for others may be invested only in the following securities:
4.1.1 obligations of the United States of America, its agencies and
instrumentalities;
4.1.2 direct obligations of the State of Texas or its agencies and
instrumentalities;
4.1.3 collateralized mortgage obligations directly issued by a federal
agency or instrumentality of the United States of America, the
underlying security for which is guaranteed by an agency or
instrumentality of the United States of America;
4.1.4 other obligations, the principal of and interest on, which are
unconditionally guaranteed or insured by, or backed by the full faith
and credit of, the State of Texas or the United States of America or
their agencies and instrumentalities;
4.1.5 obligations of states, agencies, counties, cities, and other political
subdivisions of any state rated as to investment quality by a
nationally recognized investment rating firm of not less that A or its equivalent;
4.1.6 certificates of deposit issued by a state or national bank or savings
and loan association domiciled in Texas that is:
4.1.6.1 guaranteed or insured by the Federal Deposit Insurance
Corporation;
4.1.6.2 fully collateralized by obligations described in Section 4.1.1
through Section 4.1.5, including mortgage backed securities
directly issued by a federal agency or instrumentality that have a
market value of not less than the principal amount of the
certificates, but excluding those mortgage backed securities
of the following nature:
4.1.6.2.1 obligations whose payment represents the
coupon payments on the outstanding
principal balance of the underlying
mortgaged-backed security collateral and
pays no principal;
4.1.6.2.2 obligations whose payment represents the
principal stream of cash flow from the
underlying mortgage-backed security
collateral and bears no interest;
4.1.6.2.3 collateralized mortgage obligations that have
a stated final maturity date of greater than 10
years; and
4.1.6.2.4 collateralized mortgage obligations the
interest rate of which is determined by an
index that adjusts opposite to the changes in
a market index.
4.1.7 fully collateralized repurchase agreements with a definite
termination date, secured by obligations described by
Section 4.1.6.1, requiring the securities being purchased by
the entity to be pledged to the entity, held in the entity's
name, and deposited at the time the investment is made with
the entity or with a third party selected and approved by the
entity; and placed through a primary government
securities dealer, as defined by the Federal Reserve, or a
financial institution doing business in this state;
4.1.8 bankers acceptances having a stated maturity of 270 days
or fewer from the date of issuance, to be liquidated in full at
maturity, eligible for collateral for borrowing from a Federal
Reserve bank, and accepted by a bank organized and
existing under the laws of the United States of America or
any state, if the short-term obligations of the bank, or of a
bank holding company of which the bank is the largest
subsidiary, are rated not less than A-l or P-l or an
equivalent rating by at least one nationally recognized credit
rating agency;
4.1.9 commercial paper that has a stated maturity of 270 days or
fewer from the date of its issuance, and is rated not less than
A-l or P-l or an equivalent rating by at least two nationally
recognized credit rating agencies or one nationally
recognized credit rating agency and is fully secured by an
irrevocable letter of credit issued by a bank organized and
existing under the laws of the United States of America or
any state;
4.1.10 no-load money market mutual funds regulated by the
Securities and Exchange Commission, having a dollar-weighted -
average stated maturity of 90 days or fewer, and including in their
investment objectives the maintenance of a stable net asset value of
$1 for each share;
4.1.11 guaranteed investment contracts conforming to Section
2256.015 of the Government Code;
4.1.12 investment pools conforming to Section 2256.016 of the
Government Code;
4.1.13 cash management and fixed income funds sponsored by
organizations exempt from federal income taxation under Section
501(f), Internal Revenue Code of 1986 (26 U.S.C. Section 501(f));
5.0 INSURANCE OR COLLATERAL
5.1 All deposits and investments of University funds other than direct purchase
of United States Treasury securities or United States Agency securities
shall be secured by a pledge of collateral with a market value equal to no
less than 100% of the deposits or investments less an amount insured by
the FDIC or FSLIC and pursuant to Article 2529d, the Public Funds
Collateral Act. Evidence of the pledged collateral shall be maintained by
the University Comptroller. Eligible repurchase agreements shall be
documented by a specific agreement noting the collateral pledged in each
agreement. Collateral shall be reviewed monthly to assure the market value
of the securities pledged equals or exceeds the related bank balances.
5.2 Pledged collateral shall be maintained for safekeeping by a third party depository.
6.0 COLLATERAL DEFINED
6.1 The University shall accept only the following securities as collateral:
6.1.1 FDIC and FSLIC insurance coverage;
6.1.2 United States Treasury, Agency, or Instrumentality securities;
6.1.3 Other obligations, the principal of and interest on which are
unconditionally guaranteed or insured by the State of Texas or the United States of America;
6.1.4 Obligations of states, agencies thereof, counties, cities, and
other political subdivisions of any state having been rated as to
investment quality by a nationally recognized investment rating firm
and having received a rating of no less than A or its equivalent.
7.0 INVESTMENT STRATEGY
All investments will be made in accordance with the University's
Investment Policy. Investments will be diversified among a variety of
investment vehicles as specified in Section 13. Protection of the portfolio's
principal is of primary concern; however, it is recognized that unrealized
losses will occur in a rising interest rate environment, just as unrealized
gains will occur during periods of falling interest rates.
Investments may be categorized and described as:
7.1 Short Term - less than 90 days
Funds needed to meet short term operating requirements normally
will be invested the Texpool investment vehicle managed by the
State Treasurer. This pool allows funds to be liquidated on a daily,
if necessary, basis. Interest rates in Texpool change daily. The benchmark is the average three month Treasury Bill yield.
7.2 Intermediate Term - 90 days to one year
United States Treasury and Agency securities, United States
Agency Discount Notes, and Texpool are the primary investment
vehicles. United States Agency Discount Notes are preferable
because of the ease with which they are traded, and their return is
comparable to other United States Agency Securities and are
usually higher in yield that United States Treasury securities and
Texpool. Texpool is preferred when short term interest rates are
low and there is no significant earnings advantage to using other
investment vehicles. The benchmark is 95 percent of the average one-year Treasury yield.
7.3 Long Term - over one year
United States Treasury and Agency securities are the primary
investment vehicles. Normally, investments are laddered so that
most principal is returned over a five year period in increments
sufficient to meet anticipated operating and capital needs. The
Lehman Government/Corporate Bond Index is the benchmark for
long term funds. *
7.4 Maturity
The length of time for investments within this policy will vary
according to fund type and will be dependent on funding
requirements. As a general rule, funds will be invested for the time
periods indicated:
Current Unrestricted and
Restricted Funds 2 days to one year
Plant Funds 3 months to 3 years
8.0 DELEGATION OF AUTHORITY
The Vice President for Business Affairs (VPBA) of Stephen F. Austin State
University is responsible for investment management decisions and activities. The
VPBA delegates the day-to-day management of the investment activities to the
Director of Financial Services.
The VPBA shall be ultimately responsible for all transactions undertaken and shall
establish a system of controls (Appendix A) to regulate the activities of officials
and staff involved in investment transactions.
The VPBA shall develop and maintain written administrative procedures and
guidelines for the operation of the investment program which are consistent with
and part of this Investment Policy (Appendix B).
The VPBA shall be designated as the University's investment officer and is
responsible for the duties outlined herein. The name and title of the investment
officer shall be filed with the Board of Regents. Changes of name and/or title must
be filed with the Board of Regents as they occur.
Decisions requiring security purchases with stated maturity in excess of five (5)
years will require approval of the Board of Regents and the VPBA.
No officer or designee may engage in an investment transaction except as provided
under terms of this policy as approved by the Stephen F. Austin State University Board of Regents.
9.0 PRUDENCE
*
9.1 The "prudent person" standard will be used in the investment function and
shall be applied in the context of individual transactions as well as management of
the overall portfolio. Accordingly, all investments shall be made with judgment
and care, under circumstances then prevailing, which persons of prudence,
discretion, and intelligence exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived.
10.0 INTERNAL CONTROLS
Stephen F. Austin State University has established a system of written internal
controls designed to prevent loss of public funds due to fraud, employee error,
misrepresentation by third parties, unanticipated market changes, or imprudent
actions by employees of the University. These controls are shown in Appendix A
of this Investment Policy. These controls are subject to the review of and
recommendations from the University's Internal Audit office.
11.0 AUTHORIZED INVESTMENTS
The VPBA shall invest only those funds regulated by this policy and shall purchase only those securities authorized by Section 4.0 of this policy!
12.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
12.1 Transactions (bids and offers) will require competitive bidding by at least
three Board authorized broker/dealers who have fulfilled all compliance
requirements of the Board. Exceptions to this rule require written justification and Board approval.
12.2 A written copy of the then current investment policy shall be presented
to any individual seeking to sell an authorized investment to Stephen F. Austin
State University. The registered principal of the organization seeking to sell an
authorized investment shall execute a written instrument substantially to the effect that the registered principal has (a) received and thoroughly reviewed the
investment policy of the University and (b) acknowledges that the organization has implemented reasonable procedures and controls in an effort to preclude imprudent investment activities arising out of investment transactions conducted between the University and the organization.
12.3 Securities may not be bought from any organization whose representative has not provided the University with the acknowledgment required in Section 12.2.
13. DIVERSIFICATION
Investments shall be diversified to minimize the risk of loss resulting from
unauthorized concentration of assets in a specific maturity, specific issuer, or specific class of securities. The diversification limits by security type and issuer shall be:
Category Maximum
U. S. Treasury securities and securities having
principal and interest guaranteed by the
U. S. Government 100%
U. S. Government agencies, instrumentalities
and government sponsored enterprises
(excluding mortgage backed securities) 50%
Mortgage backed securities 25%
Fully insured or collateralized certificates of deposit 30%
Bankers' acceptances 25%
Commercial paper 25%
Repurchase agreements 100%
Registered money market funds 100%
Local Government Investment Pool 100%
The VPBA and his or her designee shall diversify investment maturity. To the extent possible, investment maturity will be matched with anticipated cash flow
requirements. Matching maturity and cash flow requirements will minimize
occasions for sale of securities prior to maturity, thereby reducing market risk. However, no provision of this policy shall be interpreted as prohibiting the sale of any security prior to maturity, provided that it is in the University's financial interest to effect the sale.
The weighted average maturity of the entire portfolio shall be maintained at no more than three years and shall be reported in quarterly reports to the Board of Regents.
14.0 SAFEKEEPING AND COLLATERALIZATION *
14.1 All securities transactions, including collateral for repurchase agreements,
shall be conducted on a delivery versus payment basis. All securities shall be held
by a third party custodian in the name of the University. The third party custodian
shall be required to issue a safekeeping receipt to the University listing the specific instrument, rate, maturity, safekeeping receipt number, and other pertinent
information. Any collateral safekeeping receipt shall be clearly marked on its face that the security is "pledged to Stephen F. Austin State University".
14.2 COLLATERALIZATION shall be required on certificates of deposit and
repurchase agreements. The COLLATERALIZATION level shall be no less than
100% of the market value of the principal and interest due on these instruments.
14.3 Collateral for certificates of deposit and repurchase agreements shall
consist of any of the securities authorized for investment within this policy.
15,0 PERFORMANCE EVALUATION
The VPBA shall submit quarterly reports to the Board of Regents through its
Finance Committee and the President of the University in the format prescribed by
the Public Funds Investment Act, within a reasonable time after the end of the quarter.
The reports must
(a) describe in detail the investment position of the University on the date of the report;
(b) be prepared by the investment officer(s) of the University;
(c) be signed by the investment officer(s) of the University;
(d) contain a summary statement of each pooled fund group that states the
(1) beginning marked value for the reporting period;
(2) additions and changes to the market value during the period; and
(3) ending market value for the period;
(e) state the book value and market value of each separately invested asset at
the beginning and end of the reporting period by the type of asset and fund type invested;
(f) state the maturity date of each separately invested asset that has a maturity date;
(g) state the account or fund or pooled group fund for which each individual
investment was acquired; and
(h) state the compliance of the investment portfolio of the University as it relates to:
(1) the relevant provisions of the Public Funds Investment Act.
16,0 TRAINING
The VPBA and Director of Financial Services are required by Section 2256.007(a)
of the Government Code to attend at least one session of investment training not
later than March 1, 1996, and, as appropriate, periodically thereafter.
17.0 AUDITS
The University's Internal Audit office shall conduct periodic compliance audits of
management controls on investments and adherence to the University's investment
policy and report the results to the President and VPBA.
18.0 INVESTMENT POLICY ADOPTION AND CERTIFICATION
Upon adoption by the Stephen F. Austin State University Board of Regents, the
University's investment policy shall be reviewed annually to ensure current
applicability and significant modifications thereto submitted to the Board of Regents for approval.
APPENDIX A
INTERNAL CONTROLS
The University has prepared an Investment Policy as of April 12, 1996. The policy was approved by the Board of Regents April 30, 1996.
The Investment Policy will be reviewed and/or updated no less than annually.
All securities shall be held by a third party custodian in the name of the University. A safekeeping receipt will be issued to the University listing the specific instrument, rate, maturity, safekeeping receipt number, and other relevant information.
The signature of the President, VPBA, or Director of Financial Services is required for release of securities from safekeeping.
An evaluation of the portfolio value and mark to market report will be made not less than quarterly.
The investment subsidiary ledger will be reconciled monthly to the Financial Report, General Ledger, Texpool statements, and other broker/dealer statements. The Controller's Office will record investment income monthly. The Controller will review the entries monthly.
All wire transfers, check transfers, or other bank items are transmitted to the bank by someone other than the person preparing them.
All purchases of securities and deposits of funds to or withdrawals of funds from Texpool require the signature of both the VPBA and the Controller.
APPENDIX B
ADMINISTRATIVE PROCEDURES
The Director of Financial Services will monitor investments and cash balances held in depository bank accounts on a daily basis.
The Controller will provide cash flow projections and will monitor and report cash requirements to the Director of Financial Services. Such needs will be initially determined at the beginning of the fiscal year and will be modified, as necessary, throughout the year.
The Director of Financial Services will review the level of investments, cash balances, and cash requirements and make necessary adjustments in the investment allocations and bank balances.
All investment transaction and cash transfer confirmations will be prepared by the Director of Financial Services with the related banking transactions being made by the Controller and approved by the Vice President for Business Affairs.
The Controller will maintain a subsidiary investment ledger for reconciliation to the monthly financial report, Texpool statements, and other broker/dealer statements. These reports are to be reconciled monthly.
Quarterly investment reports are prepared by the Director of Financial Services and approved by the VPBA in accordance with Section 15 of this investment policy.
STEPHEN F. AUSTIN STATE UNIVERSITY
SCHEDULE OF TRANSFERS
DECEMBER 1, 1995 through APRIL 15, 1996
Appendix No. 4
ACTIVITY RECIPIENT
ACCOUNT NAME
HEAF-SCIENCE & MATH
INSTITUTIONAL EXPENSES
UNIVERSITY SUPPORT
INSTITUTIONAL EXPENSES
PRESIDENTIAL STAFF AWARDS
UNIVERSITY SUPPORT
LIBERAL ARTS EXCELLENCE
COUNSELING&CAREER SVCS.
FINE ARTS SERIES
ARTS TICKETS
MUSIC DEPARTMENT
MUSIC DEPARTMENT
THEATRE
THEATRE
ART DEPARTMENT
MILITARY SCIENCE
ANTHROPOLOGY LAB
COLLEGE OF EDUCATION
PERFORMING ARTS
INDIRECT COST RECOVERY
TOTAL
ACCOUNT NUMBER
108510
272035
272034
272035
272143
272034
591372
230050
316000
596344
233136
233136
203368
203368
317200
105710
204601
108210
208655
278000