2007 5220
1 of 3
Non-Instructional/Business
Operations
SUBJECT:
DISTRICT INVESTMENTS
Scope
This
investment policy applies to all monies and other financial resources available
for investment by the
Objectives
The
primary objectives of the
§ LEGAL: to conform with all applicable federal, state, and legal requirements;
§ SAFETY: to adequately safeguard principal;
§ LIQUIDITY: to provide sufficient liquidity to meet all operating requirements; and
§ YIELD: to obtain a reasonable rate of return.
Delegation of Authority
The Board of Education's responsibility for administration of this investment policy shall be delegated to the School Business Manager who shall establish written compliance procedures in accordance with the provisions of Section 39 of the General Municipal Law and the guidelines of this policy.
Prudence
All
participants in the investment process shall seek to act responsibly as
custodians of the public trust and shall avoid any transaction that might
impair public confidence in the
Internal Controls
All monies collected by any officer or employee of the District shall immediately be transferred to the Treasurer, who will be responsible for establishing and maintaining an internal control structure to provide reasonable assurance that deposits and investments are safeguarded against loss, and that transactions are properly authorized, executed, and recorded.
Diversification of Investments
The District's deposits and investments shall be diversified when appropriate by types of investment, by financial institutions approved by the Board of Education, and by maturity scheduling.
(Continued)
2007 5220
2 of 3
Non-Instructional/Business
Operations
SUBJECT: DISTRICT
INVESTMENTS (Cont’d.)
Standards for Authorized Financial Institutions
The District shall maintain a list of financial institutions approved for investment purposes, which shall be evaluated annually, and establish appropriate limits to the amount of investments that can be made with each financial institution. All financial institutions with which the District conducts business must be credit worthy. The District shall require an annual financial statement from each depository bank.
Designation of Depositories
Banks and trust companies and their affiliated firms are designated for the deposit of district funds in accordance with considerations of financial stability.
Collaterizing of Deposits
In accordance with the provisions of General Municipal Law, Section 10, all deposits of the District, including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act shall be secured:
§ By a pledge of eligible securities with an aggregate market value equal to the aggregate amount of deposits from the categories designated.
§ By an eligible surety bond payable to the District for an amount equal to at least 100% of the aggregate amount of deposits and the agreed upon interest, if any, executed by an insurance company authorized to do business in New York State, whose claims‑paying ability is rated in the highest category by at least two nationally recognized statistical rating organizations.
Safekeeping and Collateralization
Eligible securities used for collateralizing deposits shall be held by the depository and/or a third party bank or trust company subject to security and collateral agreements at the discretion of the District.
The security agreement shall provide that eligible securities are being pledged to secure district deposits, together with agreed upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon default.
The custodial agreement shall provide that securities held by the bank or trust company or agent of a custodian for, the District, will be kept separate and apart from the general assets of the custodial bank or trust company.
(Continued)
2007 5220
3 of 3
Non-Instructional/Business
Operations
SUBJECT: DISTRICT
INVESTMENTS (Cont’d.)
Permitted Investments
The School Business Manager is authorized to invest monies not required for immediate expenditure for terms not to exceed the District's projected cash flow needs in the following types of investments:
§
Obligations of the
§
Obligations guaranteed by the
§
Obligations of the State of
§
Special time deposit accounts in a commercial
bank authorized to do business in the State of
§
Certificates of Deposit in a commercial bank
authorized to do business in the State of
§
Transaction accounts, both interest bearing and
non‑interest bearing, that do not require notice of withdrawal placed in
a commercial bank authorized to do business in the State of
This policy shall be reviewed and re-adopted at least annually or whenever new investment legislation becomes law, as staff capabilities change, or whenever external or internal issues warrant modification.
Adoption Date: November 26, 2007