Section 14 - Investments
Section 14.2 - Operating Funds
Date: 10/2/06 — Approved: Finance Board, editorial change 12/12/07
The operating funds of the AS of SDSU represent funds available for current use in support of the AS student programs and support functions. Operating funds are pooled to provide the AS continuity, investment flexibility, and efficient administration.
Operating funds with unique requirements which prevent participation in the pool are separately invested.
OPERATING FUNDS INVESTMENT POLICY
Definition of Responsibilities
The AS Council is responsible for establishing the investment policy (described under "Investment Objective") that is to guide the investment of the AS operating funds. The investment policy describes the overall level of risk that is deemed appropriate.
Investment Objective
Operating funds are invested to maintain liquidity appropriate to the forecasted working capital requirements of the Associated Students.
Delegation of Authority
The AS Controller is authorized to invest AS operating funds at his/her discretion in investments consistent with the AS Council's policy.
Reporting and Review
The operating funds investment policy shall be reviewed at least annually by the AS Council. The Accounting Department prepares quarterly investment reports for the AS Council.
Permissible Investments
The AS non-core operating funds shall be invested in
State of California Local Agency Investment Fund,
Certificates of Deposit that meet the criteria noted below;
Mortgage backed securities offered through a government owned agency (e.g. Government National Mortgage Association, Federal National Mortgage Association, etc.)
The following investment criteria will be used for investments in Certificates of Deposit:
A maximum of $99,000 shall be placed in each institution to ensure full FDIC insurance coverage on principal and unpaid interest.
Institutions must be based in California. Savings and loan institutions must be chartered in California.
Based on financial reports for periods not exceeding six months prior to report the institution must meet financial screening data.
Financial screening data shall be recorded on the wire transfer entry or check request on initial investment and shall be updated on renewal and recorded on a wire transfer entry form.+
Liquidity
The Controller will be responsible for maintaining adequate cash balances for the liquidity needs of the AS
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