Investment Income Allocation

The purpose of this policy is to outline the practices governing the allocation of investment revenue to University of Saskatchewan (USask) funds and activities. 

Investment income will be allocated to the following specific USask accounts or activities: 

• Trust and endowment funds that have terms of reference (trust deed) which stipulate that related earnings will be used to support the designated purpose of the trust and which have been approved pursuant to Board policy. The allocation will be based on the non-spendable portion of the account. Non-spendable funds include all funds maintained under the trust deed except for the amount available annually to support the purpose of the trust.
• Activities that are externally funded whereby the external agency or company requires the allocation of investment earnings earned on unspent funds to support the project that is being funded.
• Other activities or funds may be allocated investment earnings if that allocation has been authorized by the Strategic Finance Committee (SFC) with consideration to the identified needs and the priorities of the institution, (e.g. Capital Funds, Research Funds).
• Transfer of funds from non-interest bearing to interest bearing status must also be approved by SFC.

Investment earnings allocated to the funds or activities described in the foregoing section will be calculated as follows: 

• Funds held on a short-term basis will be allocated investment earnings based on the 30 day Canada Treasury Bill rate.
• Funds held for the long-term will be allocated investment earnings on a pro-rata share of actual earnings of either the f endowed or non-endowed pool (depending on which investment pool the funds are held).

Funds designated to receive investment income allocations that experience negative cash balances will be assessed an interest charge based on the Debt Policy, unless another agreement is in place 

The University of Saskatchewan expects that its faculty, staff, students, post-doctoral students, visitors, contractors and agents will comply with this policy. Should there be reason to suspect that laws or university policies have been or are being violated, and the university may suffer reputational, financial or other harm as a result of non-compliance, this may constitute grounds for disciplinary or legal action in accordance with any applicable agreements, contracts, collective agreements, regulations or policies, legislation or common law principles.

The source of institutional approved definitions is in the Academic and Curricular Nomenclature.

• Academic and Curricular Nomenclature 
• Investment Income Allocation Procedures