Prior Investment Funds processes identified numerous strategic opportunities and critical infrastructure needs which heretofore had gone unaddressed.
Main Page Content
Investment Funds projects are a testament to the fiscal capacity of the College to advance key priorities through appropriate resource allocation policy and budget processes. Several proposals exceeded the capacity of the Investment Funds to support either in part or their entirety due in part to their overall cost. In response, the campus established, and the President’s Cabinet endorsed, a fund by which internal loans can be made for priority proposals of this type.
The Internal Loan Fund (ILF) provides the campus with a tool to allocate resources more effectively to leverage fiscal capacity and support strategic priorities and infrastructure needs that are beyond the means of any single funding source (e.g. unit operating funds, academic equipment replacement funding, fee based revenue, Investment Funds, etc.) to address.
The campus maintains a central reserve fund to operate in fiscal balance, make new one-time and permanent commitments and maintain appropriate reserve balances. The Internal Loan Fund expands the use of central reserve funds by allocating up to 5% of the trailing year reserve balance as ‘working capital’ to finance approved loans consistent with the following terms:
Individual loan amount not to exceed 20% of the loan portfolio
Individual loan amount not to exceed 75% of other available sources of matching funds; e.g. some combination of unit operating funds and/or campus grants: academic equipment replacement funding, tech fee, investment funds, etc.1
Term not to exceed the depreciable life of the equipment or activity being financed or five years, whichever is less, e.g.:
- Computer/Servers, 3 years
- Other Activities, 5 years
Request and Approval Process:
Requests for internal loan financing can be made through Investment Fund(s), Academic Equipment Replacement Funding, Technology Support Initiative Grants, or LEEP funding requests, or alternatively considered by the Vice President of Administration and Finance during the process of proposal review and funding discussion to optimize project funding across all fund sources.
ILF financing commitments are subject to President’s Cabinet final review and approval.
1For example an Investment Fund proposal with a total costs of $90,000 and an up-front match of $10,000 from the proposing unit, might receive an investment fund award of $30,000 and an internal loan of $50,000 ($10,000/yr. for five years)