NONINSTRUCTIONAL AND BUSINESS SERVICES
704.3 - INVESTMENTS
(PREVIOUS LANGUAGE): School district funds in excess of current needs shall be invested in compliance with this policy. The goals of the school 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 school district shall 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.
School district funds are monies of the school district, including operating funds. "Operating funds" of the school 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 business manager to invest funds in excess of current needs in the following investments.
· Interest bearing savings, money market, and checking accounts at the school district's authorized depositories;
· Iowa Schools Joint Investment Trust Program (ISJIT); and,
· Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions.
It shall be the responsibility of the business manager to oversee the investment portfolio in compliance with this policy and the law.
The business manager 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.
It shall be the responsibility of the superintendent to deliver a copy of this policy to the school district's depositories, auditor and outside persons doing investment business with the school 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.
(PROPOSED LANGUAGE): Investments Policy
Scope of Investments
This policy applies to all public funds of the WACO Community School District, including operating funds, bond proceeds, debt service funds, and other district funds. All investments shall comply with Iowa Code Chapter 12B, applicable laws, and any relevant bond resolutions.
Copies of this policy and subsequent amendments shall be provided to the Board of Education, approved depository institutions, the district's auditor, and any third party responsible for managing district investments.
Delegation of Authority
The Board of Education delegates responsibility for managing district investments to the Board Treasurer, in accordance with Iowa Code 12B.10. Only the Treasurer or individuals specifically authorized by Board resolution may invest district funds.
The Treasurer shall maintain appropriate internal controls, investment records, and procedures to safeguard public funds and ensure compliance with applicable laws.
All authorized personnel shall be bonded in accordance with applicable legal requirements and district insurance coverage.
Investment Objectives
The district shall prioritize the following objectives in order:
1. Safety: Preserve principal and minimize investment risk.
2. Liquidity: Maintain sufficient funds to meet district financial obligations.
3. Return: Earn a reasonable investment return consistent with safety and liquidity requirements.
Authorized Investments
District funds may be invested in the following instruments, subject to applicable Iowa law:
1. Obligations of the United States government and its agencies.
2. Certificates of deposit, savings accounts, money market accounts, and interest-bearing accounts at approved Iowa financial institutions.
3. Iowa Schools Joint Investment Trust (ISJIT).
4. Other investments specifically authorized by Iowa law and approved by the Board of Education.
All deposits shall comply with Iowa Code Chapter 12C.
Prohibited Investments
District funds shall not be invested in reverse repurchase agreements, futures contracts, options contracts, or speculative investments.
Investments shall not be made primarily for short-term trading gains or through arrangements compensating investment managers based on investment performance.
Investment Maturity and Liquidity
Operating funds expected to be used within the current fiscal year or within 15 months of receipt shall generally be invested in instruments maturing within 397 days, subject to exceptions authorized by Iowa law.
Nonoperating funds may be invested for longer periods when legally permitted and consistent with anticipated district financial needs.
The Treasurer shall ensure sufficient liquidity for payroll, operational expenditures, and other district obligations.
Diversification
District investments shall be diversified when practical to reduce financial risk. Investment decisions shall consider the financial institution, investment type, maturity date, and anticipated district cash flow needs.
Safekeeping and Internal Controls
All district investments shall be properly documented and safeguarded. When third-party custodial arrangements are necessary, they shall comply with Iowa Code 12B.10C and applicable state requirements.
The Treasurer shall maintain procedures to protect district assets, prevent unauthorized transactions, and ensure appropriate financial oversight.
Reporting
The Treasurer shall provide the Board of Education with monthly financial reporting that includes district investment balances, investment activity, and interest earnings.
Investment information may be incorporated into the district's regular monthly financial reports.
Policy Review
The Board of Education shall review this policy at least once every three years and amend it as necessary to maintain compliance with Iowa law and district financial priorities.
Legal Reference: Iowa Code §§ 11.2, .6; 12.62; 12B.10; 12C; 22.1, .14; 28E.2; 257;
279.29; 283A; 285; 502.701; 633.123 (1995).
Cross Reference: 206.4 Treasurer
704 Revenue
Approved: 7/21/1994
Reviewed: 11/16/15, 3/21/22
Revised: