Expendable Funds Investment Pool (EFIP)

The expendable funds investment pool (EFIP) contains expendable funds that are pooled and invested until spent. It includes the University’s cash for operations, capital projects, ancillary operations, expendable donations, expendable payouts from endowments and research grants. It excludes endowment funds and the supplemental retirement arrangement, which are part of the Long Term Capital Appreciation Pool (LTCAP).

For information on the investment policy, objectives, risk tolerance, asset mix and performance benchmarks, refer to the University Funds Investment Policy.

 

Investing in EFIP

Eligible Funds
Donation funds are eligible to be committed to earn interest to the extent they have not been committed for other purposes.

Not Eligible

  • Any restricted fund which receives income (other than donations and/or investment income on donations) is not eligible under this policy, i.e. research awards and other restricted agreements.
  • Endowment funds (which are part of the Long Term Capital Appreciation Pool)
  • Departmental operating funds are NOT eligible for investment in the EFIP.

If you have any eligible donation funds which may qualify for investment in EFIP, refer to Investing (commitment) in EFIP which provides specific guidelines and procedures for departmental administrators.

Capital projects and ancillary operations receive distribution income (or pay distribution expense) based on the individual project/operating cash position.  The EFIP Distribution Rate is the lower of  the three-month T-bill rate or actual EFIP return reported for the same 3-month period, starting from November 1, 2023.  Capital projects and ancillary operations with positive cash balances earn distribution income at this rate. Projects and operations with negative cash balances incur distribution expense at this rate plus 0.25%.  The distribution income (or expense) is calculated and recorded by the Financial Services Department on a quarterly basis.  No action is required on the part of divisional administrators to invest these funds.

Last revision: Oct 24, 2023

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