District funds in excess of current needs are invested in compliance with this policy. The goals of the District's investment portfolio in order of priority are:
• To provide safety of the principal;
• To maintain the necessary liquidity to match expected liabilities; and
• To obtain a reasonable rate of return.
In making investments, the District will exercise the care, skill, prudence and diligence under the circumstances then prevailing 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 investments 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;
- Certificates of deposit at the District's authorized depositories;
- Qualified investment pool, including, but not limited to, Iowa Schools Joint Investment Trust Program (ISJIT);
- Obligations of the United States government, its agencies and instrumentalities; and,
- Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions.
It shall be the responsibility of the treasurer to oversee the investment portfolio in compliance with this policy and the law.
It shall be the responsibilities of the treasurer to oversee the investment portfolio and/or bring a contract with an outside person to oversee the District's investment portfolio, including but not limited to, advising on investments, directing investments, acting in a fiduciary capacity or performing other services to the Board for review and approval.
If the treasurer brings a contract with an outside person, the treasurer 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. The compensation of the outside persons shall not be based on the performance of the investment portfolio.
The treasurer 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 issuer 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 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 Treasurer to work with the Secretary to coordinate the financial records, the financial reports, the cash flow needs, and the investment portfolio of the District.
It shall be the responsibility of the Superintendent 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, in conjunction with the treasurer, 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' responsibility for elements of the investment process, and address the capability of the management.
Reviewed: FY 2016-2017, December 19, 2016