13.10 Investment of University Funds

A. Policy Statement

NMSU seeks to manage and prudently invest cash balances, and to maximize the efficiency of the university’s cash management system. The goal of this policy is to ensure investment of funds in a manner which provides for the safety of principal and adequate liquidity, while maximizing investment income. This policy will apply to all cash balances of the university, with the sole exception of those cash balances associated with the university’s Endowment Funds, which are invested under a revocable trust agreement by the NMSU Foundation, Inc. All investment decisions will be made with due care and judgment, taking into consideration principal preservation in addition to income maximization, and not for speculative purposes.

B. Permitted Investments

Cash balances of the university may be held in interest and noninterest bearing demand and interest-bearing time deposits of financial institutions, or invested in investment grade securities and/or other financial instruments. The university will invest in conformity with federal and state laws and regulations applicable to an instrumentality of a political subdivision. These laws and regulations include, but are not limited to NMSA 1978, §6-10-10, NMSA 1978, §§46-9 A -1 through 46-9 A-10, and Internal Revenue Code, Section 148 (Arbitrage).

C. Ethics and Conflicts of Interest

Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair the ability to make impartial investment decisions.

D. Authority

The Board of Regents is granted authority under state statute to manage the investment of its cash balances. Within the university, the vice president administration and finance is delegated the authority to make investment decisions. Investments decisions shall be made by the vice president administration and finance in consultation with internal advisors from the Office of the Controller. Investment decisions will be reviewed with the President on a regular basis, at least semi-annually. The administration is authorized to adopt Rules as may be necessary and proper for the implementation of this policy. No such Rule may be implemented without the concurrence of the vice president administration and finance.