BUSINESS PROCEDURES
Series 800
Policy Title: Investments Code No.: 811
District funds in excess of current needs shall be invested in compliance with this policy. The goals of the district’s investment portfolio in order of priority are:
- To provide safety of the principle;
- To maintain the necessary liquidity to match expected liabilities; and
- To obtain a reasonable rate of return.
In making investments, the district shall exercise the care, skill, prudence, and diligence under the prevailing circumstances that a prudent person acting in a like capacity and familiar with such matters would use to meet the goals of the investment program.
District funds are monies of the district, including operating funds. “Operating funds” of the district are funds which are reasonably expected to be used during a current budget year or within fifteen months of receipt. When investing operating funds, the investments must mature within three hundred and ninety-seven days or less. When investing funds other than operating funds, the investment must mature according to the need for the funds.
The board authorizes the treasurer to invest funds in excess of current needs in the following investments:
- Interest bearing savings, money market, and checking accounts at the district’s authorized depositories;
- Iowa Schools Joint Investment Trust Program (ISJIT);
- Obligations of the United States government, its agencies, and instrumentalities;
- Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions;
It shall be the responsibility of the treasurer in conjunction with the superintendent to oversee the investment portfolio in compliance with this policy and the law.
It shall be the responsibility of the treasurer in conjunction with the superintendent to bring a contract with an outside person to invest district funds, to advise on investments, to direct investments, to act in a fiduciary capacity or to perform other services to the board for review and approval. The treasurer in conjunction with the superintendent shall also provide the board with information about and verification of the outside person’s fiduciary bond. Contracts with outside persons shall include a clause requiring the outside person to notify the district within thirty days of any material weakness in internal structure or regulatory orders or sanctions against the outside person regarding the services being provided to the district and to provide the documents necessary for the performance of the investment portion of the district audit.
Contracts with outside persons shall not be based on the performance of the investment portfolio.
The treasurer in conjunction with the superintendent shall be responsible for reporting to and reviewing with the board at its regular meetings the investment portfolio’s performance, transaction activity, and current investments including the percent of the investment portfolio by type of investment and by issue and maturities. The report shall also include trend lines by month over the last year and year-to-year trend lines regarding the performance of the investment portfolio. It shall also be the responsibility of the treasurer in conjunction with the superintendent to obtain the information necessary to ensure that the investments and the outside persons doing business with the district meet the requirements outlined in this policy.
It shall be the responsibility of the superintendent/designee to deliver a copy of this policy to the district’s depositories, auditor, and outside persons doing investment business with the district.
It shall also be the responsibility of the superintendent/designee, in conjunction with the treasurer and board secretary, to develop a system of investment practices and internal controls over the investment practices. The investment practices shall be designed to prevent losses, to document the officers and employees responsible for elements of the investment process, and address the capability of the management.
Date of Adoption/Review/Revision:
October 1992
August 1995
June 1998
June 2001
June 2004
July 2007
July 2010
August 2013
September 2016
February 2022
