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Policies - Section 2300 » 2326 - Investment Policy

2326 - Investment Policy

 
 
2326 Investment Policy 2326
 

The School Board authorizes the School District Treasurer, working in conjunction with the Superintendent/designee and pursuant to RSA 197:23, to invest the funds of the District subject to the following objectives and standards of care.

OBJECTIVES:

The three objectives of investment activities shall be safety, liquidity, and yield.
  1. Safety of principal is the foremost objective in this policy. Investments shall be
    undertaken in a manner that seeks to ensure the preservation of capital by
    mitigating credit and interest rate risk. This will be accomplished by limiting the type
    of the investments and institutions to those stipulated by statute and fully covered
    by FDIC insurance or collateral approved pursuant to applicable law.
  1. Liquidity of the investment portfolio shall remain sufficient to meet all operating
    requirements that may be reasonably anticipated.
  1. Yield. The investment portfolio shall be designed with the objective of attaining a
    market rate of return throughout budgetary and economic cycles, taking into
    account the investment risk constraints and liquidity needs. Return on investment is
    of secondary importance compared to the safety and liquidity objectives described
    above.

STANDARDS OF CARE:
  1. Prudence. The standard of prudence to be used by the District Treasurer and
    Superintendent/designee involved in the investment process, shall be the “prudent
    person” standard and shall be applied in the context of managing an overall
    portfolio. They are directed to use the Government Finance Officer Association’s
    Recommended Practices and Policy Statements Related to Treasury and
    Investment Management, as a guide to the prudent investment of public funds.
  1. Conflict of Interest. Officials involved in the investment process shall not engage in
    or have a financial interest in any activity or investment that could conflict with or
    could create the appearance of conflict with proper execution of the investment
    program, or which could impair their ability to make impartial investment decisions.
    Investment officials, Auditors and School Board Members shall disclose to the
    School Board any material, personal, business-related, or financial interests in
    financial institutions that conduct business with the district, and they shall further
    disclose any material financial relationships or business responsibilities that could
    be related to the impartial management of the District’s financial assets. Where
    conflicts of interest or the appearance of conflict of interest cannot be avoided
    through policies or procedures approved by the School Board, affected official(s)
    shall recuse themselves from subject decisions.
  1. Internal Controls. The District Treasurer and Superintendent/designee shall
    establish a system of internal controls which shall be documented in writing. The
    internal controls shall be reviewed periodically by the School Board and an
    independent auditor.

The investment of funds is delegated by the School Board to the District Treasurer.

The Board will, at least annually, review and adopt the investment policy.
 

Reference: RSA 197:23-a, Treasurer’s Duties
RSA 383:22, Public Deposit Investment Pool
RSA 386:57 Collateralization of Funds

Adopted: 6/2009