7.5 Financial Institutions and Investments
Chapter 7 - General Finance Provisions
Part 1. Authority Statement
It is the policy of the Board of Trustees that each university and college president shall maintain an effective program of cash management and follow the legal requirements regarding depositories and collateral requirements.
Part 2. General Responsibilities
All financial institutions and investments shall be conducted in accordance with the provisions of Minnesota Statutes, Board policy, and system procedures. The Board of Trustees expects that community relationships will be balanced against efficient financial institution administration.
Subpart A. Financial Institution Practices
All system office, college or university funds must be deposited for safe keeping in financial institutions selected in accordance with provisions of Minnesota Statutes or invested as specified by Minnesota Statutes (see related documents below).
Documentation specifying staff authorized to sign checks or initiate funds movements, or changes thereto, for all financial institution accounts, pooled investments accounts, or money market funds shall be approved by the chancellor for the system office and by the president for a college or university. Depository financial institutions selected shall furnish adequate collateral to assure safety of these funds in accordance with provisions of Minnesota Statutes.
As permitted by statutes and system procedures, interest received on local institutional funds may be credited to appropriate accounts.
Subpart B. Investments
Local institutional funds shall be invested in funds authorized by Minnesota Statutes and in a manner consistent with system procedures and guidelines.
Subpart C. Safekeeping
All monies received by the system office, college or university shall be deposited daily, unless such receipts are less than $250 in which event deposits may be deferred until they total such sum.
Part 3. Accountability/Reporting
The Board of Trustees will be periodically updated on financial institutions and investment management on an exception reporting basis and advised of any recommended policy changes.
- Procedure 7.5.1 Financial Institution Accounts/Investments
To view any of the following related statutes, go to the Revisor's Web site (http://www.revisor.leg.state.mn.us/). You can conduct a search from this site by typing in the statute number.
- Minnesota Statute 11A.24 Investment of State and Pension Fund Assets
- Minnesota Statute 118A, Deposit and Investment of Local Public Funds
- Minnesota Statute 309, Social and Charitable Organization - Management of Institutional Funds
Date of Implementation: 06/21/00
Date of Adoption: 06/21/00
Date & Subject of Revisions:
11/16/11 - Effective 1/1/12, the Board of Trustees amends all board policies to change the term "Office of the Chancellor" to "system office," and to make necessary related grammatical changes.
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