Temporary investment:

Funds accepted by the Regents as a gift or unrestricted grant¹ or sponsored project may be transferred to trust funds for temporary investment only when all the following criteria are satisfied:

• The Sponsor's written policy requires or expects the University to invest the funds to earn income for the sponsored program or related activities.
• The award must be granted for a period of two years (24 months) or longer.
• The first year (12 months) of funding must be retained in a 133 account.
• The funds available for investments (funds remaining after the first year) must exceed $50,000.

Procedures to establish the temporary trust fund:

• RSP will develop an annual expenditure plan in consultation with the PI and/or department staff and instruct Trust Funds to establish a quasi-endowment trust (QET) account.
• RSP will establish a separate 133 account for investment income. Unless specified by the donor, the original 133 account must be fully spent before the investment income account funds may be used.
• After the first year, per the expenditure plan, RSP will draw from the QET every three months to maintain a positive cash balance in the 133 account. Investment income may be included in these transfers if needed. Once a year, if needed, adjustments will be made to the expenditure plan.
• Upon termination of the project and closing of the 133 account, all investment income will be transferred from the QET back to RSP for deposit into the 133 investment income account.

Permanent investment:

It is inappropriate for the University to override the terms and conditions of funds previously accepted by the Regents as a gift, unrestricted grant¹, or sponsored project, by transferring these funds at its own discretion to permanent trust funds

1. As defined in the RSP document "Guidelines for Assessing Indirect Costs on Unrestricted Grants," dated 5/5/98.

Revised 10/10/98