# STIP (Short Term Investment Pool)

Find out about the Short Term Investment Pool (STIP).

The Treasurer's Office at the UC Office of the President (UCOP) invests available university cash in short-term securities called the Short Term Investment Pool (STIP).

## Distribution dates

Quarterly, UCOP distributes total pool earnings to the individual UC campuses based on campuses' average daily cash balances. Approximate distribution dates:

Quarter UCOP distribution Campus distribution
1st quarter ending Sept. 30 Nov. 30 December
2nd quarter ending Dec. 31 Feb. 28 March
3rd quarter ending March 31 May 31 June
4th quarter ending June 30 July 31 August or September

## UCSD STIP calculation

After UCOP determines UCSD's share of quarterly pool earnings, UCSD calculates distributions based on IFIS ledger financial data. Since all IFIS transactions have a fund designator, IFIS tracks the average daily cash balance, positive or negative, of individual funds. The calculation process:

1. Accumulates these average daily cash balances
2. Adjusts them for misrecorded or unrecorded items
3. Derives, for each fund, an average daily cash balance for the quarter
4. Divides each individual fund's average daily cash balance for the quarter by the total UCSD average daily cash for the quarter
5. Multiplies this percentage by UCSD's share of quarterly pool earnings
• UCOP distribution example: For a recent quarter, the UCOP average daily cash and invested cash balances for all campuses combined was \$3,306,000,000. UCSD's share was \$288,000,000, or 8.71%. The total pool earnings were \$50,000,000 so UCSD's share was \$4,400,000 (before adjustments for bank fees and related administrative costs of approximately \$100,000).
• UCSD distribution example: Fund xxxxxA has an average daily cash balance of \$100,000. If UCSD's average daily cash balance for the quarter was \$288,000,000, then fund xxxxxA's percentage share of \$4,400,000 UCSD adjusted pool earnings was 0.02272% or \$1,528.

## STIP fund distribution

The STIP calculation process replaces a fund's alpha suffix with a zero. If fund xxxxxA has sub funds xxxxxB and xxxxxC, the calculation process produces a single STIP amount for fund xxxxx0, which represents combined financial activity. The STIP can be distributed either to the fund or to any one of the sub funds, but not both.

Although STIP is calculated for every fund, it isn't distributed to each fund. UOCP and UCSD policy determine whether an individual fund's STIP is distributed to that fund, to the fund's cognizant vice chancellor, or to the chancellor. Most funds receiving individual STIP are in the donation and private grant fund ranges. (All STIP balances, positive or negative, of \$15 or less go to the chancellor.)

## Ledger entries

You can find STIP distribution entries in the transfer section, toward the bottom of the IFIS operating ledger under account code 72xxxx. Entries include a financial transaction for the quarterly positive or negative STIP amount and budget transactions to allocate the financial amount. Positive STIP appears as a credit (-) financial transaction.

• Example: For a donation or private grant fund, a STIP entry appears in the transfer section of the ledger under account code 720703 with a budgetary allocation to account 630000.

## Annual rates

UCSD's STIP calculation process also results in a calculated annualized STIP rate for the campus. The rate is derived by dividing UCSD's share of quarterly pool earnings by total UCSD average daily cash for the quarter and then multiplying by 4. See a list of historical STIP rates.