1. STATEMENT of PURPOSE
It is the policy of St. Charles City-County Library District(The District) to invest its funds in a manner that will provide the highest investment return with the maximum security, while meeting the daily cash flow needs and complying with all state statutes governing the investment of public funds.
2. SCOPE of POLICY
This investment policy applies to all financial assets of St. Charles City-County Library District. These assets are accounted for in the various funds of The District and include the general fund and any new fund established by St. Charles City-County Library District.
3. INVESTMENT OBJECTIVES, IN PRIORITY ORDER
- Safety: Safety of principal is the foremost objective of the investment program.
- Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
- Return of Investment: The investment portfolio shall be designed with the objective of obtaining a rate of return throughout the budgetary and economic cycles, taking into account the investment risk constraints and the cash flow from characteristics of the portfolio.
- Diversification: The investment will be diversified by security type to minimize any potential investment loss.
4. DELEGATION of AUTHORITY to MAKE INVESTMENTS
Authority to manage the investment program is derived from Section 182.630 of Missouri Revised Statutes. Management responsibility for the investment program is hereby delegated to St. Charles City-County Library District Finance and Support Services Manager, the Director or their designee who shall follow the written procedures manual and internal controls for the operation of the investment program consistent with this Investment Policy.
5. AUTHORIZED INVESTMENT INSTRUMENTS
St. Charles City-County Library District funds shall be invested only in the manner permitted with provisions of Missouri State Statutes, and may include any of the following:
- Obligations, redeemable at maturity at par, of the State of Missourior any political subdivision thereof. Bonds, securities and other obligations of the United States or an agency or instrumentality of the United States.
- Certificates of deposit, savings accounts, deposit accounts, or depository receipts of a financial institution provided that the financial institution is eligible to be a depository of funds belonging to the State under a law or rule of the state of Missouri or the United States.
- Repurchase agreements with any qualified public depositary.
To the extent possible, St. Charles City-County Library District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the Library will not directly invest in securities having a maturity date of more than three years from the date of purchase.
St. Charles City-County Library District will require all deposits in excess of the federally insured amount to be collateralized to the extent equal to the face amount and evidenced by an approved written agreement with collateralization by a third party acting as an agent of the Library.
6. INVESTMENT PARAMETERS
The investments shall be diversified to minimize the risk of loss resulting from over concentration of assets in specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed. At a minimum, diversification standards by security type and issuer shall be:
- U.S.treasuries and securities having principal and/or interest guaranteed by the U.S.Government - 100%
- Collateralized time and demand deposits - 100%
- U.S. Government agencies, and government sponsored enterprises - no more than 75%
- Collateralized repurchase agreements - 100%
- U.S. Government agency callable securities - no more than 30%
7. SAFEKEEPING and CUSTODY
All security transactions, including collateral for repurchase agreements and financial institution deposits, entered into by St. Charles City-County Library District shall be on a cash (or delivery vs. payment) basis. Securities may be held by a third party custodian designated by the Finance and Support Services Manager or the Library Director and evidenced by safekeeping receipts.
8. STATEMENT of ETHICS
The Library Trustees, Finance and Support Services Manager, Library Director,and their designee shall refrain from personal business activity that could conflict with the proper execution and management of library investments, or that could impair the ability to make impartial investment decisions.
9. INVESTMENT ACTIVITY REPORT
St. Charles City-County Library Finance and Support Services Manager shall provide a written quarterly report to the Library Board concerning the investment of the library funds.
Approved January 10, 2011