Ohio Administrative Code › Title 3356 - Youngstown State University › Chapter 3356-3 - Guidelines for Expenditure of Funds › Section 3356-3-10 - Investment of the university's non-endowment and endowment funds

Current through all regulations passed and filed through July 1, 2024
(A) Policy
			 statement. This policy ensures sufficient liquidity to meet the university's
			 cash flow needs and further ensures compliance with the Revised Code and all
			 other applicable laws and regulations while optimizing opportunities for growth
			 in invested assets in a responsible and prudent manner. The president and the
			 vice president for finance and business operations, or designee, is authorized
			 to invest university funds in compliance with this policy, provisions of
			 section 3345.05 of the Revised Code and
			 all other applicable laws and regulations.
(1)
			 For the purpose of this policy on the investment of the university's
			 non-endowment and endowment funds (policy), the nonendowment and
			 endowment portfolios shall include:
(a) All
			 tuition and mandatory fees, registration, non-resident tuition fees, academic
			 fees for the support of on- and off-campus instruction, laboratory and course
			 fees when so assessed and collected, all other fees, deposits, charges,
			 receipts, and income from all or part of the students, all subsidy or other
			 payments from state appropriations, and all other fees, deposits, charges,
			 receipts, and income received. These funds shall be held and administered by
			 the board of trustees.
(b)
			 Notwithstanding any provision of the revised code to the contrary, the title to
			 investments made by the board of trustees with funds derived from revenues
			 described above shall not be vested in the state but shall be held in trust by
			 the board. Such investments shall be made pursuant to this investment policy
			 adopted by the board in public session. Such investments shall be made with the
			 care, skill, prudence, and diligence under the circumstances then prevailing
			 that a prudent person acting in like capacity and familiar with such matters
			 would use in the conduct of an enterprise of a like character and with like
			 aims.
(c) It is the intention of
			 the board of trustees that actions taken pursuant to this policy shall be in
			 compliance with all applicable laws as they may be amended from time to time.
			 No university representative, employee, or agent shall take any action
			 prohibited by or fail to take any action required by all applicable laws in
			 carrying out this policy.
(d)
			 Members of the board of trustees will annually provide to the chair of the
			 board of trustees a statement disclosing the nature, if at all, of any
			 relationship with the financial institutions involved with the university's
			 non-endowment and endowment funds. Any member having a relationship that
			 creates a conflict prohibited by the ethics laws with any investment entity
			 will withdraw from participating in the selection of, or authorizing the
			 contracts of, those investment managers and/or consultants.
(e) External investment managers, consultants
			 and advisors retained by the university shall immediately notify the chair of
			 the investment 
										committee and the vice president for finance and
			 business operations, or designee, of any potential conflicts of interest which
			 may develop from time to time. In any such situation, the external investment
			 manager, consultant and/or advisor shall identify the nature of the conflict of
			 interest and its potential impact, if any, on the university.
(f) The university's non-endowment portfolio
			 will remain sufficiently liquid to enable the university to meet all operating
			 requirements. Portfolio liquidity is defined as the maturity or ability to sell
			 a security on short notice near the purchase price of the security. To help
			 retain the desired liquidity, no security shall be purchased that is likely to
			 have few market makers or poor market bids. Additionally, liquidity shall be
			 assured by keeping an adequate amount of short-term investments to accommodate
			 the cash needs of the university.
(g) The university's non-endowment and
			 endowment portfolios shall be structured with the objective of attaining the
			 highest possible total return for the investment portfolio while adhering to a
			 prudent level of risk.