51-7-13 - Funds of member institutions of state system of higher education and public education foundations -- Authorized deposits or investments.
51-7-13. Funds of member institutions of state system of higher education andpublic education foundations -- Authorized deposits or investments.
(1) The provisions of this section apply to all funds of:
(a) higher education institutions, other than endowment funds, that are not transferred tothe state treasurer under Section 51-7-4; and
(b) public education foundations established under Section 53A-4-205.
(2) (a) Proceeds of general obligation bond issues and all funds pledged or otherwisededicated to the payment of interest and principal of general obligation bonds issued by or for thebenefit of the institution shall be invested according to the requirements of:
(i) Section 51-7-11 and the rules of the council; or
(ii) the terms of the borrowing instruments applicable to those bonds and funds if thoseterms are more restrictive than Section 51-7-11.
(b) (i) The public treasurer shall invest the proceeds of bonds other than generalobligation bonds issued by or for the benefit of the institution and all funds pledged or otherwisededicated to the payment of interest and principal of bonds other than general obligation bondsaccording to the terms of the borrowing instruments applicable to those bonds.
(ii) If no provisions governing investment of bond proceeds or pledged or dedicatedfunds are contained in the borrowing instruments applicable to those bonds or funds, the publictreasurer shall comply with the requirements of Section 51-7-11 in investing those proceeds andfunds.
(c) All other funds in the custody or control of any of those institutions or publiceducation foundations shall be invested as provided in Section 51-7-11 and the rules of thecouncil.
(3) (a) Each institution shall make monthly reports detailing the deposit and investmentof funds in its custody or control to its institutional council and the State Board of Regents.
(b) The state auditor may conduct or cause to be conducted an annual audit of theinvestment program of each institution.
(c) The State Board of Regents shall:
(i) require whatever internal controls and supervision are necessary to ensure theappropriate safekeeping, investment, and accounting for all funds of these institutions; and
(ii) submit annually to the governor and the Legislature a summary report of allinvestments by institutions under its jurisdiction.
Amended by Chapter 178, 2005 General Session