Note 2 – Cash and Cash Equivalents

The University’s cash and cash equivalents are detailed in Table 2, Cash and Cash Equivalents.

Table 2. Cash and Cash Equivalents (in thousands)

Cash on hand (petty cash and change funds)$352370
Deposits with U.S. financial institutions133,28689,534
Deposits with foreign financial institutions2472
Total Cash and Cash Equivalents – University$133,66289,976

Custodial credit risk for deposits is the risk that in the event of a bank failure, the University’s deposits may not be returned to it. To manage custodial credit risk, deposits with U.S. and foreign financial institutions are made in accordance with University and State policy, including the Public Deposit Protection Act (PDPA). PDPA requires all eligible depositories holding public deposits to pledge designated eligible collateral having market value equal to at least 102 percent of the deposits exceeding those amounts insured by federal depository insurance. Deposits collateralized under the PDPA are considered to be collateralized with securities held by the pledging institution in the University’s name. As of June 30, 2018 and 2017, $212,000 and $688,000, respectively, of the cash held by CUPCO was uninsured and uncollateralized. Deposits with foreign financial institutions are not PDPA-eligible deposits and thus are exposed to custodial credit risk and require separate authorization as depositories by the State. During the years ended June 30, 2018 and 2017, all deposits with foreign financial institutions were authorized.

© Office of University Controller 2018

This report must be considered in its entirety.