Cash Deposit & Withdrawal Procedures

I. Introduction

This document sets forth administrative procedures intended to promote responsible administration, control and movement of cash into, among and from the various operating, reserve and investment accounts of the MiraCosta College Foundation. (This “Procedures” document does NOT address decisions regarding the specific ways or places that funds are invested or conserved. For guidance on these matters, the reader is directed to the Foundation’s separate, more comprehensive document entitled, “Investment and Spending Policy”)

II. Procedures

A. Operations Reserve/Cash Forecasts. Quarterly, the Foundation’s Executive Director and Finance Committee chair will determine if funds need to be transferred from the Operations Reserve Account (Vanguard) into local operating accounts (e.g.,Union Bank) to meet upcoming cash needs. Alternatively, if cash on-hand in operating accounts exceeds forecast needs, it should be transferred to either LAIF or the Vanguard Operations Reserve account. Quarterly adjustments for operating needs will normally not come from the Endowment Account(s).

B. Deposits to the Endowment Account. All new contributions designated for the Endowment portfolio are promptly and regularly deposited to the Foundation’s operating account(s) and earmarked for near-term transfer to the Endowment Fund Account at Vanguard. Gifts that exceed $25,000.00 in liquid funds must be transferred to Vanguard within 10 days of receipt. Gifts of lesser amount may be held for aggregation with other gifts received during a calendar month but must be deposited with Vanguard within 15 days following the end of each calendar month.

C. Visibility of Deposits In/Withdrawals Out. To promote and facilitate transparency and traceability of transactions in the Endowment Account, deposits to the Endowment Account will be separate from requests for withdrawals from the Endowment Account. (The full amount of deposits and withdrawals are to be visible as separate transactions in regular Vanguard “Activity” statements and not “netted” into a single deposit/withdrawal.)

D. Cash Withdrawals from the Endowment Accounts. Timing. Calculation of the Endowment Management Fee charges and Endowment Account earnings will normally be performed once per year at a consistent time, preferably within 60 days following the end of the December quarter. (This timing accommodates the need to transfer funds to the operating account(s) for Scholarships and other recurring programs of the Foundation.) At that time, and subject to the approval procedure set forth below and in the Investment and Spending Policy, withdrawals from the Endowment Account are permitted.

E. Approval of Cash Withdrawals. Requests for cash withdrawals from the Endowment Account must be initiated by the Foundation Director AND require the written approval of the Foundation’s Finance Committee Chair. To assure prior awareness and concurrence, any letter to Vanguard that authorizes withdrawal from the Endowment Account will bear two signatures, namely those of the Foundation’s Director AND the Finance Committee Chair. Letters will be transmitted via USPS or Fax (not email). Signatures will be “wet ink” signatures; facsimile stamps are not to be used. Signers will carefully verify the bank and account number to which the funds are to be transferred.

F. Signature Authority Directives. The Foundation Director and Finance Committee Chair are responsible for insuring that signature-authority directives to Vanguard (or other institutions holding Foundation funds) are in compliance with this procedure and are kept current.