Distribution of Interest Income
Policy Number: 70
Distribution of interest earned on cash balances
- Date Reviewed:
- May 2008
- Responsible Office:
- Treasury Management
- Responsible Executive:
- Senior Vice President, Finance and Business Affairs
I. POLICY AND GENERAL STATEMENT
The University of Texas Health Science at Houston ("university") invests institutional cash balances to optimize return on investment within the guidelines established by the Board of Regents of The University of Texas System. Interest on such cash balances is distributed on a monthly basis to qualified accounts in the manner outlined in the following procedure. Interest is earned and distributed based on actual cash collected, not on accounts, notes and/or awards receivable.
Interest income is distributed in the month in which it is earned. Interest is distributed to accounts with actual cash balances that exceed $50,000. Exceptions may include the following:
- Loan funds earn interest on actual cash balances that exceed $1,000.
- Student scholarship accounts that reside in the private or designated funds groups earn interest on actual cash balances that exceed $1,000.
Fund groups eligible for interest income distribution include designated funds, auxiliary funds, private gifts and contracts, loan funds, unexpended plant funds and agency funds.