Cash Management Fund Policy

I. Background

The following is a statement of the Cash Management Fund (CMF) policy, which has been reviewed and approved by the executive officers. This policy became effective January 1, 2009 when the Institutional Reinvestment Account (IRA) was renamed the Cash Management Fund (CMF).

II. Guidelines

Investment in the Cash Management Fund (CMF) will be permitted according to the following guidelines:

• Restricted, allocated, loan, plant, or agency funds of the University may be invested through the University's Endowment Investment Accounting Office in strict accordance with University policies for investment of internal funds. Grants from the federal government or its agencies may not be invested . Debt funded plant projects may not be invested , unless approved by Treasury and Cash Management. The determination of funds that may invest in the CMF will be the responsibility of Treasury and Cash Management.
• The initial minimum investment in the CMF is $10,000. Additional investments will be in multiples of $5,000.
• To insure that each participating fund can provide working capital for the ongoing operation of the University, minimum cash (uninvested) balances must be maintained according to the following schedule:

Note

1. No exceptions to the balance requirements are allowed.
2. Multiple funds administered by the same department cannot be commingled by the Endowment Investment Accounting Office to meet the minimum cash balance requirements.

Requests for initial investment in the CMF or changes in existing investment levels (increases or decreases) shall be submitted electronically via email to cmf-program@duke.edu. Requests received by the 17th of the month will be effective retroactive to the first day of that month.

When a fund code becomes over-invested, a journal entry will be posted to reduce the fund code’s investment to the correct level. Reinvestment will occur only after the department notifies the Endowment Investment Office that adequate funds are, again, available to invest.

The Endowment Investment Office is not in a position to know or to determine the spending habits of each individual department investing in the CMF. It is each department’s responsibility to request new deposits be added to the CMF as funds become available for investment.

Income on CMF investments will be paid at a rate determined by the Executive Vice President less an infrastructure tax of 0.75%. Income will be paid monthly, in the month earned, based on the invested balance in each fund code for that month. Investment in the CMF will be recorded on the University’s general ledger in object code 1320.

Any questions concerning the Cash Management Fund policy should be directed to the Endowment Administration Office.