The District Treasurer is authorized to invest all available district funds, including proceeds of obligations and reserve funds, in the following types of instruments:
- Savings Accounts or Money Market accounts of designated banks;
- Certificates of Deposit issued by a bank or trust company located in and authorized to do business in New York State
- Demand deposit accounts in a bank or trust company located in and authorized to do business in New York State
- Obligations of New York State
- Obligations of the United States government (US Treasury Bills and Notes)
All investments made pursuant to this investment policy will comply with the following conditions:
- Savings accounts, money market accounts, time deposit accounts and certificates of deposit will be fully secured by insurance of the Federal Deposit Insurance Corporation or by obligations of New York State, the United States, New York State school districts and federal agencies whose principal and interest are guaranteed by the United States. The market value of collateral will at all times exceed the principal amount of the certificate of deposit. Collateral will be monitored no less frequently than on a monthly basis.
- Collateral will not be required with respect to the direct purchase of obligations of New York State, the United States and federal agencies, the principal and interest of which are guaranteed by the United States Government
- Delivery of Securities
Payment of funds may only be made upon receipt of collateral or other acceptable form of security, or upon the delivery of government obligations whether such obligations are purchased outright, or pursuant to a repurchase agreement. Written confirmation of delivery shall be obtained from the custodial bank.
- Written Contracts
Written contracts are required for certificates of deposit and custodial undertakings. With respect to the purchase of direct obligations of U.S., New York State, or other governmental entities in which monies may be invested, the interests of the school district will be adequately protected by conditioning payment on the physical delivery of purchased securities to the school district or custodian, or in the case of book-entry transactions, on the crediting of purchased securities to the Custodian’s Federal Reserve System account. All purchases will be confirmed promptly in writing to the school district.
- Designation of Custodial Bank
- The Board will designate a commercial bank or trust company authorized to do business in the State of New York to act as Custodial Bank of the school district’s investments. However, securities may not be purchased through a Repurchase Agreement with the Custodial Bank.
- When purchasing eligible securities, the seller will be required to transfer the securities to the district’s Custodial Bank.
- Selection of Financial Institutions
- The District Treasurer will periodically monitor, to the extent practical but not less than annually, the financial strength, credit-worthiness, experience, size and any other criteria of importance to the district, or all institutions and trading partners through which the district’s investments are made.
- Investments in time deposits and certificates of deposit are to be made only with commercial banks or trust companies, as permitted by law.
- Operations, Audit, and Reporting
- The District Treasurer will authorize the purchase and sale of all securities and execute contracts for investments and deposits on behalf of the school district. Oral directions concerning the purchase or sale of securities will be confirmed in writing. The school district will pay for purchased securities upon the simultaneous delivery or book-entry thereof.
- The school district will encourage the purchase and sale of securities through a competitive process involving telephone solicitation for at least three quotations.
- Monthly investment reports will be furnished to the Board of Trustees.
Adoption date: August 21, 2013