Internal Operating Loans
The University may grant internal operating loans to departments to finance selected acquisitions or projects, financed from internal funds. Internal operating loans have a specific term, a defined interest rate, and a formal repayment schedule.
- Minimum threshold for financing is $2,500.00.
- Maximum threshold for financing is $100,000.00.
- Departments must provide a viable, non-federal account with demonstrated evidence of availability of funds for payments. The Controller's office will review all proposed repayment accounts for viability. (Use of federally funded accounts would be prohibited due to federal policies on interest payments).
- Exceptions to any policies contained in this proposal would be only at the discretion of the Vice President for Business and Finance.
- Final approval of financing will be the responsibility of the Treasurer. The Internal financing form, signed by DEO, is forwarded with attachments to the Treasurer's office for final processing. Upon approval by the Controller's office and Treasurer's office, the Treasurer will initial and assign a fund account number to the purchase requisition and forward to purchasing for processing of the purchase order.
-
The internal financing form serves as the request, approval and
agreement document. This form will include the following
information before a purchase order is processed.
- Amount financed
- Rate and finance period
- Amount of first and subsequent payments
- Account to be charged installments
- Acknowledgment statement that property cannot be disposed of without paying outstanding balance.
- Dean or Director signature
- Purchasing office signature
- Treasurer's office signature
- Controller's office signature
- The rates charged will be based on the current yield of the operating portfolio of the University at the preceding year's fiscal year end, plus 3/4% on contracts less than three years and 1/2% on contracts three years or more. This new rate will be applied to new agreements only and will not effect outstanding agreements.
- Financing periods will be up to five years. Any agreement for more than five years will require specific approval of the Vice President for Business and Finance.
- Repayment will be accomplished by the Treasurer's office processing a semi-annual budget transfer (RET), on 12/31 and 6/30.
