Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 298]

EXTRACTED TEXT FROM PAGE:

286

BOARD OF TRUSTEES

[June 13

Delegation of Authority to Write-Off Uncollectible Student Loans ( 1 1 ) On June 8, 1939, the Finance Committee of the Board of Trustees was authorized to make adjustments in student loans as may be necessary from time to time to secure settlement, and to approve cancellation of loans when collection seems impossible. Periodically, requests are submitted to the Finance and Audit Committee to approve cancellation of short-term and intermediate emergency student loans that are deemed uncollectible. These loans are made primarily from University gift funds designated for loan programs by donors. University collection procedures are applied to all such accounts. Also, accounts are sent to collection agencies, to the State comptroller for tracing via income tax filings, and to other State agencies for employment matches. Those recommended for write-off are deemed uncollectible due to death, bankruptcy, or inability to locate the debtor. These accounts are kept in an inactive file so they may be returned to current conditions should the University be able at any time to make collection on them. Any future requests by these individuals for registration, transcript, or diploma will be denied until the debt is paid. In order to bring this practice in parallel with similar University accounting and collection procedures, the vice president for business and finance recommends that the board authorize the comptroller to write-off uncollectible student loans. I concur. O n motion of Ms. Reese, this r e c o m m e n d a t i o n was approved. Establishment of Quasi-Endowment, Urbana (Hazel Belle Baker Estate) (12) Hazel Belle Baker, an alumna of the University of Illinois, died on April 27, 1990, leaving a will naming the University of Illinois as beneficiary of a remainder interest in her estate. The amount of the bequest was approximately $95,000. The purpose of the bequest designated by the donor is for the College of Liberal Arts and Sciences, in cooperation with the Board of Trustees, to utilize the funds for the best interest of the University. The dean of the College of Liberal Arts and Sciences has proposed the establishment of a quasi-endowment with all of the funds from the Baker estate. The income would be used to support alumni programming and programs related to visual research, an area of preference of the donor. The chancellor at Urbana recommends approval and the vice president for business and finance concurs. I recommend the establishment of the quasi-endowment for the purposes described. O n motion of Ms. Reese, this r e c o m m e n d a t i o n was approved. By consensus, the b o a r d a g r e e d that one roll call vote would be taken and considered the vote on each agenda item nos. 13 t h r o u g h 35 inclusive. T h e r e c o m m e n d a t i o n s were individually discussed but acted u p o n at o n e time. ( T h e r e c o r d of b o a r d action appears at the e n d of each item.) Revision of Investment Policy, Short-Term Funds (13) On February 13, 1991, the Board of Trustees received a report on the review of University current funds investment policy by Ennis, Knupp & Associates, Inc. T h e report outlines several recommendations for clarifying and enhancing the shortterm investment program of the University. Adoption of a new investment policy was recommended that expresses the intent for a broadly diversified and safe portfolio