Operating Cash
NC State’s associated entities rely on operating cash to fund operations, pay continuing obligations, and build rainy day funds. Therefore, the investment of operating cash and short-term operating funds is focused on the most prudent methods of generating supplemental income while preserving principal.
To achieve the portfolio’s objectives of protection and income, permitted investments may be moved among different investment types, while always maintaining cash sufficient for annual operations. It has been a long standing practice to ensure at least one year of operating reserves is in place for each Associated Entity.
Operating cash and short term investments held for operating purposes play a strategic role in the annual operations of an Associated Entity. Ensuring adequate liquidity is paramount, but the generation of additional income is also important in achieving key strategic initiatives.
Key investment objectives are to:
– Preserve capital
– Provide liquidity for the Associated Entities annual operating budget
– Provide increased levels of diversification
– Optimize the use and investment of the Entities cash and short-term investments
– Earn rates of return that consistently exceed money market rates of return over time to generate incremental resources for the Entity
The NC State University Associated Entity Operating Cash and Short-term Investments Policy Statement has been designed to provide guidelines for the investment of operating cash and short-term operating investments for Associated Entities (Entity) at North Carolina State University. Specifically, this policy is directed to cash and short term operating investments that are held specifically for operating purposes and not invested in the long-term pool.
While this investment policy is approved by the governing board of the Associated Entity, or the specific committee authorized to act on behalf of the Board, the authority to manage the investments, in accordance with this investment policy, is delegated to each Entity’s Treasurer or in cases where the University Treasurer is not the Associated Entity’s Treasurer, to its Assistant Treasurer.
Given university and the associated entities have unique cash needs, there is not one commingled fund and investing options and performance are specific to each entity.