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3.1 Management and Investment Funds

Business Operations

MANAGEMENT AND INVESTMENT FUNDS

Board of Education Section 3

Policy 3.1

This investment policy is adopted in accordance with the provisions of applicable law by the board of education of the technology center.  This policy sets forth the investment policy for the management of the public funds of the technology center.  The policy is designed to ensure prudent management of public funds, the availability of funds when needed, and reasonable investment returns.  The District Treasurer is required by the Board of Education to invest District monies in the custody of the Treasurer in only those investments permitted by law. The primary objectives of these investment activities shall be safety and liquidity. The Treasurer will minimize risks by diversifying the investment portfolio; structuring investments so that securities mature in time to meet cash requirements; and by investing the full amount of all accounts of the District in one or more of the following:  

  1. Direct obligations of the United States Government to the payment of which the full faith and credit of the Government of the United States is pledged; provided, upon completion of an investment education program approved by the State Board of Education and the State Board of Career and Technology Education the Treasurer may invest funds in the investment account in other obligations of the United States Government, its agencies or instrumentalities;
  2. Obligations to the payment of which the full faith and credit of this state is pledged;  
  3. Certificates of deposits of banks when such certificates of deposits are secured by acceptable collateral as in the deposit of other public monies; 
  4. Savings accounts or savings certificates of savings and loan associations to the extent that such accounts or certificates are fully insured by the Federal Savings and Loan Insurance Corporation. Provided, that the income received from the investments may be placed in the general fund of the governmental subdivision to be used for general governmental operations; 
  5. Repurchase agreements that underlying collateral consisting of those items specified in paragraphs 1 and 2 above including obligations of the United States, its agencies and instrumentalities, and where the collateral has been deposited with a trustee or custodian bank in an irrevocable trust or escrow account established for such purposes; 
  6. County, municipal or school district direct debt obligations for which an ad valorem tax may be levied or bond and revenue anticipation notes, money judgments against such county, municipality or school district ordered by a court of record or bonds or bond and revenue anticipation notes issued by a public trust for which such county, municipality or school district is a beneficiary thereof. All collateral pledged to secure public funds shall be valued at no more than market value. The income received from an investment may be placed in the general fund of the District to be used for general governmental operations the sinking fund, the building fund, or the fund from which the investment was made; 
  7. Money market mutual funds regulated by the Securities and Exchange Commission and which investments consist of obligations of the United States, its agencies and instrumentalities, and investments in those items and those restrictions specified in paragraphs 1 through 6 above; 
  8. Warrant, bonds or judgments of the school district; 
  9. Qualified pooled investment programs, the investments of which consist of those items specified in paragraphs 1 thought 8 above, as well as obligations of the United States agencies and instrumentalities, regardless of the size of the District’s budget. To be qualified, a pooled investment program for school funds must be governed through an interlocal cooperative agreement formed pursuant to 70 O.S. section 5-117b, and the program must be approved by the Board of Education.  
  10. Investment programs administered by the state treasurer; or  Adopted July 1, 2022 1.
  11. Any other investment that is authorized by law.  

Investment Philosophy  

This policy shall be based upon a “prudent investor” standard. The Board of Education recognizes that those charged with the investment of public funds act as fiduciaries for the public, and, therefore the Treasurer is directed to exercise the judgment and care under the circumstances then prevailing that persons of prudence, discretion and intelligence would exercise in the management of their own affairs as to the permanent nonspeculative disposition of their funds. In investing the District’s funds, the Treasurer shall place primary emphasis on safety and liquidity of principal and earnings. 

  1. Liquidity: Available funds will be invested to the fullest extent practicable in interest-bearing investments or accounts, with the investment portfolio remaining sufficiently liquid to meet reasonably anticipated operating requirements. 
  2. Diversification: The investment portfolio will be diversified to avoid one class of investment having a disproportionate impact on the portfolio; provided, this restriction will not apply to securities of the United States Treasury backed by the full faith and credit of the United States Government. 
  3. Safety of Principal: Although investments are made to produce income for the District, investments will be made in a manner that preserves principal and liquidity. 
  4. Yield: The portfolio will be designed to attain maximum yield within each class of investment instrument, consistent with the safety of the funds invested and taking into account investment risk and liquidity needs. 
  5. Maturity: Investments may have maturities extending to twenty-four (24) months, provided sufficient liquidity is available to meet major outlays, except that general fund investments may not exceed twelve (12) months. 
  6. Quality of the Instrument and Capability of Investment Management: The Superintendent of the District shall be responsible for seeing that the Treasurer is qualified and capable of managing the investment portfolio. The Treasurer is required to satisfactorily complete an investment education program approved by the State Board of Education and the State Board of Career and Technology Education. Such program shall be designed to allow the Treasurer to make informed decisions regarding the safety, return, liquidity, costs and benefits of various investment options allowed under this policy.  

Safekeeping and Custody 

  1. The Treasurer shall require any depository wherein District funds are deposited to insure or guarantee the deposit by proper securities, which shall be of the same class of securities as are required to insure deposits of county treasurers of the various counties, and such securities shall be pledged, taken, and kept in the manner provided in Section 517.1 through 517.7 of Title 62 of the Oklahoma Statutes. 
  2. The Treasurer shall maintain a list of the financial institutions which are authorized to provide investment services to the District and shall maintain a separate list of financial institutions with collateral pledged in the name of the District. 
  3. All securities will be in book entry form, and physical delivery of securities will be avoided.
  4. Telephone transactions may be conducted, but such transactions must be supported by written confirmation, which may be made by way of a facsimile on letterhead with authorized signatures of the safekeeping institution. 
  5. Written transactions and confirmations of transactions will be kept in the Treasurer’s office.  Reporting and Review of Investments  

The Treasurer shall prepare in writing an investment report to be submitted to the Board of Education at each regular meeting of the Board of Education, but in no event shall such written investment report be submitted less often than monthly. This report shall include: 

  1. A list of investments held at the end of the reporting period; 
  2. The purchase and maturity dates of these investments; 
  3. The name and fund for these investments; 
  4. The yield rate of these investments; 
  5. Any collateral pledged by a custodian.  

Depositing of Interest  

Unless otherwise directed by the Board of Education through policy or by special directive, by the Oklahoma Constitution, or by the federal government, all income earned from the investment of appropriated funds shall be deposited in the fund from which it was generated.  

Except as otherwise provided by law, the Treasurer of the District shall pay out District funds in the care of the Treasurer only upon warrants signed by the proper official(s) of the District authorized by law to sign such warrants, provided this restriction shall not apply to the investment of the funds of the District. Authorized payment for investments or receipt of liquidated investments may be made by check, wire transfer or other instrument or method through the Federal Reserve System. 

Adopted July 1, 2022

 

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