Handbook of Operating Procedures

Distribution of Interest Income

Policy Number: 70

Subject:

Distribution of interest earned on cash balances

Scope:

Employees

Date Reviewed:
May 2008
Responsible Office:
Treasury Management
Responsible Executive:
Senior Vice President, Finance and Business Affairs

I. POLICY AND GENERAL STATEMENT

The University of Texas Health Science at Houston ("university") invests institutional cash balances to optimize return on investment within the guidelines established by the Board of Regents of The University of Texas System. Interest on such cash balances is distributed on a monthly basis to qualified accounts in the manner outlined in the following procedure. Interest is earned and distributed based on actual cash collected, not on accounts, notes and/or awards receivable.

II. PROCEDURE

Interest income is distributed in the month in which it is earned. Interest is distributed to accounts with actual cash balances that exceed $50,000. Exceptions may include the following:

  • Loan funds earn interest on actual cash balances that exceed $1,000.
  • Student scholarship accounts that reside in the private or designated funds groups earn interest on actual cash balances that exceed $1,000.

Fund groups eligible for interest income distribution include designated funds, auxiliary funds, private gifts and contracts, loan funds, unexpended plant funds and agency funds.

III. CONTACTS

ContactTelephoneEmail/Web Address
Treasury Management 713-500-4944

TreasuryMgmt@uth.tmc.edu

https://inside.uthouston.edu/finance/treasury-management/contact-us.htm