School district funds in excess of current needs are 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 will 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. If, during the
current budget year an amount of public funds will exceed operating funds by at least thirty-
three percent, the amount of public funds that exceed operating funds by greater than thirty-
three percent may be invested in certificates of deposit at federally insured depository
institutions which mature within sixty-three months or less, in accordance with state and
federal laws. When investing funds other than operating funds, the investments must
mature according to the need for the funds.
The board authorizes the treasurer 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);
● Obligations of the United States government, its agencies and instrumentalities; and,
● Certificates of deposit and other evidence of deposit at federally insured Iowa
depository institutions.
It is the responsibility of the treasurer to oversee the investment portfolio in compliance with
this policy and the law.
It is the responsibility of the treasurer to bring a contract with an outside person to invest
school district funds, to advise on investments, to direct investments, to act in a fiduciary
capacity or to perform other services to the board for review and approval. The treasurer
will also provide the board with information about and verification of the outside person's
fiduciary bond. Contracts with outside persons will include a clause requiring the outside
person to notify the school district within thirty days of any material weakness in internal
structure or regulatory orders or sanctions against the outside person regarding the services
being provided to the school district and to provide the documents necessary for the
performance of the investment portion of the school district audit. The compensation of the
outside persons will not be based on the performance of the investment portfolio.
The treasurer is responsible for reporting to and reviewing with the board at its regular
meetings the investment portfolio's performance, transaction activity and current
investments including the percent of the investment portfolio by type of investment and by
issuer and maturities. The report will also include trend lines by month over the last year
and year-to-year trend lines regarding the performance of the investment portfolio. It will
also be the responsibility of the treasurer to obtain the information necessary to ensure that
the investments and the outside persons doing business with the school district meet the
requirements outlined in this policy.
It is 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 will 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 are designed to prevent losses, to document the officers and employees responsibility for elements of the investment process and address the capability of the management.
Legal Reference: Iowa Code §§ 11.2, .6; 12.62; 12B.10; 10A; 12C; 22.1, .14; 28E.2; 257;
279.29; 283A; 285; 502.701; 633.123.
Cross Reference: 206.4 Treasurer
704 Revenue
Approved 1/10/72 Reviewed 8/17/22 Revised 1/16/19
