(Amended 7/02; 3/10; 5/12; 12/17)
The University Treasurer's Office has overall responsibility for the administration and oversight of the banking, debt service, and investment programs for the University.
- Banking, cash management, and debt services. This includes establishing and maintaining University bank and investment accounts and contracting for new banking services, including retail credit card processing and lockbox services. The Treasurer's Office also serves as the bond registrar and paying agent for the majority of the bonds issued by the University.
- Bank accounts. Only the University Chief Financial Officer and Treasurer, the Director of Financial Management and University Secretary, and the Director of Treasury Operations are authorized to establish and maintain University bank accounts. Requests for bank accounts or other banking services must be submitted to the Treasurer's Office for prior review and approval.
- Prohibition of use of University's name and tax identification number. The University strictly prohibits the use of The University of Iowa's name or tax identification number by any person or organization in any bank account except as specifically authorized by the University Chief Financial Officer and Treasurer or the Director of Treasury Operations. Banks are periodically surveyed to identify any accounts utilizing the University's name or identification number. These accounts are independently reviewed for proper authorization.
- Bequests. The Treasurer's Office records and invests all funds that are designated as endowment and payable directly to The University of Iowa. Beneficiary documents, estate notices, or any communication indicating a possible beneficiary status of bequests and gifts to the University are directed to the Office of the General Counsel for official handling. Wherever justified, the funds are transferred to the University of Iowa Center for Advancement, the University's preferred channel for private gifts.
- Investments — operating, endowment, and quasi-endowment funds. Investment activities are in accordance with the investment policy of the Board of Regents, State of Iowa. (See Board of Regents Policy Manual 2.2.4.) Investment-related fees are assessed to investment pools and may include costs for investment management, banking and custody, and (where applicable) stewardship and donor-related service costs.
- Endowment and quasi-endowment funds.
- Endowments. Endowment funds are invested in perpetuity for the long-term benefit of University programs with the objective of generating a reasonable spending payout while maintaining the real value of funds over time. Spending payouts generated by endowment investments are restricted in use to purposes established by donors. All endowments are invested in a long-term investment pool.
- Quasi-endowments. Quasi-endowment funds are invested for the mid- and long-term benefit of University programs using investment philosophy similar to the endowment. However, in the case of quasi-endowments, the inflation-adjusted value of the principal need not be maintained over time. Based on the intended use of funds, quasi-endowments are invested in either or both the long-term investment pool and/or the intermediate investment pool.
- Authorization. Endowment or quasi-endowment accounts may be established only when authorized by both the University Chief Financial Officer and Treasurer and the Director of Treasury Operations. Additional contributions to established endowment or quasi-endowments accounts also must be authorized by both the University Chief Financial Officer and Treasurer and the Director of Treasury Operations. Endowment determinations are made based upon an interpretation of donor or other restrictions that apply, while quasi-endowment determinations are based upon the proposed long-term uses and intentions of the department. Any request for the establishment of a quasi-endowment must be accompanied by a specific programmatic plan for those funds and should contemplate commitment of the corpus for a minimum of three years.
- Investment earnings. Endowment or quasi-endowment funds deposited with the University are transferred to a fund manager for investment at the next endowment valuation date — usually at the end of the calendar quarter following receipt of the funds. Investment pool earnings will begin accruing to the recipient department at that time. Balances in individual endowment or quasi-endowment income accounts will become part of the University pool investments; earnings on these balances will not accrue to either the fund principal or the associated income account, except where authorized by the Treasurer.
- Spendable income. An amount determined by The University of Iowa's endowment spending rules will be transferred from the endowment or quasi-endowment fund to the associated income account on a quarterly basis. Periodically, in consultation with the Regents' investment advisor, the University evaluates guidelines for income distribution.
Internal procedures are developed by Treasury Operations and approved by the University Chief Financial Officer and Treasurer. For internal procedures and additional information, contact Treasury Operations or refer to the following web address: https://treasury.fo.uiowa.edu.