University Investment Pool (UIP)

The University Investment Pool (UIP) provides depositors daily access to their funds without risk of loss, with a corresponding rate of return. UIP is discretionary earnings over which the department maintains ultimate control. There are customizations which can be done in PeopleSoft to automatically move UIP, as it is earned, to a different chartfield string. This can be done in each Fund/Department combination to move UIP down to a spendable chartfield or can be done for all of a School or College to place UIP in an unrestricted fund like Designated (40000) into a Dean’s discretionary chartfield. We recommend that all units consider how such a customization may fit within their plans. If your unit desires, a system customization can be employed by ITS. 

NOTE: General Fund UIP is accumulated in a central chartfield and is allocated by the Provost as part of the General Fund Budget Process. Under the UIP distribution policy approved by the Board of Regents, the rate of return is based on the 90-day U.S. Treasury Bill rate.

Participating Funds

All Fund/Department cash balances earn UIP for their units with the following exceptions:

• Federal sponsored research cash - grants or contracts
• Non fed research cash - from State agencies or companies
• Balances already invested elsewhere - Specific Stocks, Bond issues, etc.
• Most Agency Fund Chartfields

Calculation of Distributions

Chartfields (not invested elsewhere) earn UIP based on their month end cash balance at their Fund/Department level. In M-Pathways, the cash accounts used in the UIP calculation are 111100, 111111, 111201, 111202, and 111203.

Month end cash balances by Fund/Department, before the quarter end Endowment distributions are posted, are multiplied by the quarterly T-Bill rate (annualized to a monthly equivalent). The T-bill rate is annualized to a monthly equivalent based on the number of days in that particular month. Example: for a rate of 1.97%, in the month of January, take 31 days, divide by 365 and then multiply by .0197 to arrive at .001673151 for the month. ((31/365) X .0197)

Moving Distributions

UIP income is deposited, by default, to the Fund/Department level of the recieving unit at account 408300 in the General Ledger (G/L) as part of the allocations run at month-end close.

In order to move UIP within the G/L, departments should use account 408301 on both sides of the entry. 408300 is a system-maintained account, and is not available for departmental use.