UCSF Budget and Resource Management Short Term Investment Pool ~STIP~ Overview UCSF-UC Budget Conference October Angela Hawkins & Morissa Gleichenhaus

9/14/2015 UCSF Budget and Resource Management 2 Introductions Name Organization Primary STIP interest Concept Operations Strategy Specific question

9/14/2015 UCSF Budget and Resource Management 3 Agenda STIP Concept UCOP STIP Group Codes & Funds STIP Distribution Process at UCOP STIP Distribution Process at UCSF STIP Management Campus Corral QA

9/14/2015 UCSF Budget and Resource Management 4 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.

9/14/2015 UCSF Budget and Resource Management 5 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)

9/14/2015 UCSF Budget and Resource Management 6 STIP Groups and Distribution Principles

9/14/2015 UCSF Budget and Resource Management 7 STIP Organization – Groups and Subgroups Groups with Subgroups including OP STIP Funds STIP Groups are divided into subgroups

9/14/2015 UCSF Budget and Resource Management 8 STIP Organization – Groups and Subgroups Groups with Subgroups including OP STIP Funds Subgroups include ranges of STIP Funds (Handout shows UCSF ranges)

9/14/2015 UCSF Budget and Resource Management 9 General Ledger to STIP Fund 376A Monthly reports translating campus accounts to UCOP STIP Funds

9/14/2015 UCSF Budget and Resource Management 10 Adjustments by STIP Fund Monthly reports adjusting UCOP STIP Funds

9/14/2015 UCSF Budget and Resource Management 11 Distribution Report STIP Fund Average 3851 Quarterly report showing monthly balances and resulting STIP

9/14/2015 UCSF Budget and Resource Management 12 STIP Distribution Process at UCOP Campus variances Campus Profiles – Compare Step 3 Balances: Group 1: Students, Student Fees, appropriations Group 2: Volume of Gifts & Endowments Group 3: Campus Medical School & Unexpended Plant (Financed Capital Projects) Group 4: Volume of Federal Funds Group 5: Other Current, Loan and Plant funds (Is Fed AP identified to fund id?) Subgroup Relationships Question: 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.

9/14/2015 UCSF Budget and Resource Management 13 STIP Distribution Process at UCOP – Step 3 HANDOUT STEP 3

9/14/2015 UCSF Budget and Resource Management 14 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?

9/14/2015 UCSF Budget and Resource Management 15 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

9/14/2015 UCSF Budget and Resource Management 16 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.

9/14/2015 UCSF Budget and Resource Management 17 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)

9/14/2015 UCSF Budget and Resource Management 18 QA