5221 - Revenues & District Investments
| Policy: Revenues & District Investments | Policy Number: 5221 |
| Date of Original Policy: 05/22/2013 | Date Revision Adopted: 02/05/2020 |
| Reviewed by Policy Committee: 09/20/2019 | Date of Next Review: 09/28/2022 |
| Replacement of Policy Number: 5210 , 5220 |
Revenues
The School District treasurer will have custody of all District funds in accordance with the provisions of state law. The treasurer will be authorized and directed by the Jordan-Elbridge Board of Education to invest the balances available in various District funds in accordance with regulations set forth in state law.
District Investments
Whenever the District has funds (including operating funds, reserve funds and proceeds of obligations) that exceed those necessary to meet current expenses, the Board of Education shall authorize the School Treasurer to invest such funds in accordance with all applicable laws and regulations and in conformity with the guidelines established by this policy.
Objectives
The objectives of this investment policy are four-fold:
a) Investments shall be made in a manner that safeguards the funds of the District
b) Bank deposits shall be made in a manner that safeguards the funds of the District
c) Investments shall be sufficiently liquid to allow funds to be available as needed to meet the obligations of the District
d) Funds shall be invested in such a way as to earn the maximum yield possible given the first three (3) investment objectives
b) Bank deposits shall be made in a manner that safeguards the funds of the District
c) Investments shall be sufficiently liquid to allow funds to be available as needed to meet the obligations of the District
d) Funds shall be invested in such a way as to earn the maximum yield possible given the first three (3) investment objectives
Authorization
The authority to deposit and invest funds is delegated to the District Treasurer. These functions shall be performed in accordance with the applicable sections of the General Municipal Law and the Local Finance Law of the State of New York.
The District Treasurer may invest funds in the following eligible investments:
a) Obligations of the State of New York
b) Obligations of the United States Government, or any obligations for which principal and interest are fully guaranteed by the United States Government
c) Time Deposit Accounts placed in a commercial bank authorized to do business in the State of New York, providing the accounts is collateralized as required by law. {Banking Law Section 237(2) prohibits a savings bank from accepting a deposit form a local government. This also applies to savings and loan associations.}
d) Transaction accounts (demand deposits) 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 New York, providing the account is collateralized as required by law
e) Certificates of Deposits placed in a commercial bank authorized to do business in the State of New York providing the Certificates are collateralized as required by law
f) Securities purchased pursuant to a repurchase agreement whereby one party purchases securities from a second party and the second party agrees to repurchase those same securities on a specific future date at an agreed rate of return (the interest rate).
g) The district may authorize a designated depositary bank or trust company to arrange for the “redeposit” of funds in one or more “banking institutions” through a “deposit placement program”. The deposit placement program must meet the following:
a. The district’s depositary bank or trust company must serve as custodian for the district for the redeposited funds.
b. The district’s funds held in the depository bank or trust company in excess of FDIC coverage, pending redeposit, must be properly secured in accordance with the GML.
c. The full amount of the redeposited funds, plus any accrued interest, must be covered by the FDIC.
d. At the same time of the redeposit, the district’s depositary bank or trust company must receive an amount at least equal to the amount of the district’s funds redeposited.
b) Obligations of the United States Government, or any obligations for which principal and interest are fully guaranteed by the United States Government
c) Time Deposit Accounts placed in a commercial bank authorized to do business in the State of New York, providing the accounts is collateralized as required by law. {Banking Law Section 237(2) prohibits a savings bank from accepting a deposit form a local government. This also applies to savings and loan associations.}
d) Transaction accounts (demand deposits) 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 New York, providing the account is collateralized as required by law
e) Certificates of Deposits placed in a commercial bank authorized to do business in the State of New York providing the Certificates are collateralized as required by law
f) Securities purchased pursuant to a repurchase agreement whereby one party purchases securities from a second party and the second party agrees to repurchase those same securities on a specific future date at an agreed rate of return (the interest rate).
g) The district may authorize a designated depositary bank or trust company to arrange for the “redeposit” of funds in one or more “banking institutions” through a “deposit placement program”. The deposit placement program must meet the following:
a. The district’s depositary bank or trust company must serve as custodian for the district for the redeposited funds.
b. The district’s funds held in the depository bank or trust company in excess of FDIC coverage, pending redeposit, must be properly secured in accordance with the GML.
c. The full amount of the redeposited funds, plus any accrued interest, must be covered by the FDIC.
d. At the same time of the redeposit, the district’s depositary bank or trust company must receive an amount at least equal to the amount of the district’s funds redeposited.
Implementation
Using the policy as a framework, regulations and procedures shall be developed which reflect:
a) A list of authorized investments
b) Procedures including a signed agreement to ensure the school district’s financial interest in investments
c) Standards for written agreements consistent with legal requirements
d) Procedures for the monitoring, control, deposit and retention of investments and collateral which shall be done at least once a month
e) Standards for security agreements and custodial agreements consistent with legal requirements
f) Standards for diversification of investments including diversification as to type of investments, and firms and banks with whom the District transacts business
g) Standard for qualification of investment agents which transact business with the District including, at minimum, the Annual Report of the Trading Partner
b) Procedures including a signed agreement to ensure the school district’s financial interest in investments
c) Standards for written agreements consistent with legal requirements
d) Procedures for the monitoring, control, deposit and retention of investments and collateral which shall be done at least once a month
e) Standards for security agreements and custodial agreements consistent with legal requirements
f) Standards for diversification of investments including diversification as to type of investments, and firms and banks with whom the District transacts business
g) Standard for qualification of investment agents which transact business with the District including, at minimum, the Annual Report of the Trading Partner
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.
Education Law Sections 1604 (a) and 1723(a)
General Municipal Law Section 39
Education Law Sections 1604-a and 1723 (a)
Local Finance Law Section 165
Chapter 128 of the Laws of 2012 Sections 10 and 11 of General Municipal Law