This policy establishes approval authority and acceptable investment options relating to monies held by the University.
Schedule I Bank – comprised of domestic banks that are authorized under the Bank Act to accept deposits that are eligible for deposit insurance provided by the Canadian Deposit Insurance Corporation up to certain limits.
Schedule II Bank – comprised of smaller credit unions, trusts and subsidiaries of foreign banks that are still regulated by the Federal Bank Act that provides for adherence to the same strict policies that apply to the larger domestic banks.
There are two separate and distinct types of funds at the University which are utilized for investment purposes as follows:
The University maintains its endowment and trust funds, less a reserve considered necessary to meet obligations due within one year, with the University of Regina. These funds include monies received from donors for the purpose of generating scholarships and other academic endeavors and are invested in long term investments pursuant to policies established by the University of Regina.
In the normal course of operations, the University generates surplus cash reserves that will not be required for a minimum period of 90 days. The amount of surplus operational cash flow is monitored on a daily basis by the Director of Finance as is the time frame considered available before the funds will be needed.
The objectives in investing surplus cash flow is to maximize investment income and return to the University while simultaneously minimizing the risk of capital loss on any investment and maintaining adequate liquidity for operational cash requirements.
Operational cash reserves may only be invested in fixed income based investments with little or no possibility of capital loss. These investments would include those backed by Schedule I or Schedule II banks primarily comprised of term deposits or banker’s acceptances.
Any employee who fails to comply with this policy may be subject to disciplinary action under the applicable collective agreement, employment contract, University policy, or at law.
The approved process to be followed by the University is as follows: