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UNIVERSITY OF THE VIRGIN ISLANDS BOARD OF TRUSTEES CASH MANAGEMENT RESOLUTION (Board of Trustees meeting, June 21, 1987) Purpose 1. To centralize all major checking accounts at the Chase Manhattan Bank, N.A. for pooled cash management purposes. 2. To authorize the establishment of interest bearing statement savings accounts to receive the automatic transfer of idle cash from checking accounts for temporary investment purposes. WHEREAS, the University wishes to maximize the temporary investment of idle cash to generate additional income for the institution, and WHEREAS, Chase Manhattan Bank, N.A. has recently established a computer-based cash management system which facilitates the automatic daily transfer of cash between checking accounts and interest bearing statement savings accounts, and WHEREAS, Chase Manhattan has agreed to maintain zero (0) balances in the University's checking accounts except for a compensating balance to be maintained in either the operating account or restricted funds account, and WHEREAS, Chase Manhattan has agreed that statement savings accounts for the University will carry an interest rate comparable to the one million dollar, ninety (90) day certificate of deposit rate to be adjusted quarterly, and WHEREAS, the institution can realize additional interest revenues of at least $50,000 per year by adopting the proposed cash management arrangement with Chase Manhattan, N.A., and WHEREAS, this arrangement will require the consolidation and pooling of the institution's cash resources and checking accounts at the Chase Manhattan Bank, N.A. BE IT RESOLVED that the President and Vice-President for Business and Financial Affairs be and are hereby authorized to: 1. Transfer Endowment Funds from Citibank to Chase Bank by closing checking account 0-010293-02 at Citibank and opening a new checking account for Endowment Funds at Chase Bank. i RESTRICTED FUNDS ACCOUNT: Cash for restricted funds are kept ina B. checking account at Citibank. Most of these funds are from advances by the Federal Government for specific projects. Federal funds, which constitute the major portion of - funds in the restricted checking account at Citibank, cannot be invested for the benefit of the University. ELEMENTS OF THE PROPOSED CASH MANAGEMENT PROGRAM 1. Consolidation and pooling of cash funds in checking accounts centralized at Chase Manhattan Bank. 2. Individual checking accounts for each of the following fund groups: Operating Funds Payroll Funds Restricted Funds Endowment Funds Student Loan Funds Plant Funds Agency Funds 3. Corresponding statement savings account for each checking account except the restricted account. 4. Use of Restricted funds as compensating balances for all checking accounts. 5. Zero (0) balances in all checking accounts except the restricted checking account. 6. Automatic daily transfers of all surplus cash from checking accounts to interest bearing statement savings accounts. 7. Automatic daily transfers of needed cash from statement savings accounts to cover cleared checks drawn on checking accounts. 8. Statement savings account to earn interest at a rate comparable to the one million dollar, Ninety (90) day certificate of deposit rate. This rate is to be adjusted on a quarterly basis.