Policy 0807.20 Investments
Investment Objectives:
The primary objectives, in order, of investment activities for the school district are safety, liquidity, and yield:
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Safety: Safety of principal is the foremost objective of the investment program.
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Liquidity: Investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
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Yield: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.
Prudent Person Standard:
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
Delegation of Authority:
Authority to manage the investment program is granted to the controller and Director of Finance. They shall be responsible for all transactions undertaken and shall establish, in consultation with the District’s outside auditors, a system of controls that shall comply with auditing standards, to regulate the activities of subordinate officials.
Authorized Investment Types:
The District may participate in the Local Government Investment Pool authorized under the Joint Exercise of Powers Agreement.
The District may invest idle funds in investment-types allowable for the Idaho State Treasurer as per Idaho Code 67- 1210 and 67-1210A.
Authorized financial institutions, depositories, and broker/dealers:
The District may invest idle funds through financial institutions that are qualified public depositories that provide the services of a securities dealer or a broker/dealer who is a member of the National Association of Securities Dealers (NASD) and who meets the capital adequacy standard established by the Federal Reserve Bank of New York.