Framework for Investments Policy 214.00
Series: 200 Administrative Services
Section: Income and Investments
The Board of Trustees hereby authorizes the investment of temporary idle cash to be administered by the president or his designee. The Board of Trustees authorizes the president to act as its agent in matters relating to the purchase of investments and acceptance of safekeeping receipts.
The objective of the investment policy is to ensure that all revenues received are promptly recorded and deposited. Those funds not immediately required to meet payment of obligations will be placed in an interest bearing account according to the following objectives:
- Safety: Investments will be made in a manner which ensures preservation of principal. Financial institutions that receive college funds must pledge qualified securities with a market value equal to 105% of deposits in excess of FDIC coverage.
- Liquidity: Investments will be made after careful consideration of future expected liabilities. The cash position of the college will be maintained at a level adequate to meet these requirements. Maturities on these investments will be selected in such a way as to provide income stability.
- Yield: Investments will be made with the expectation of a reasonable rate of return while maintaining prudent investment principles. A competitive bid process will be used to encourage a favorable yield.
- Fiduciary Trust: Investments will be managed with a degree of professionalism that is worthy of the public trust. Investment officials will avoid any transaction that might erode the public confidence. Investment activities will be made within the generally accepted accounting principles of separation of function. The official in charge of accounting for the college shall not make investments. Conversely, the official making investments shall not be responsible for the accounting function of the college.
- The portion of funds at the Municipal Investment Pool should not exceed 10% of total funds available for investment. There may be short periods of time between the distribution of funds from government entities and investment of those funds when the amount at the Municipal Investment Pool exceeds 10%.
Investments will be made in only those instruments authorized by Kansas statutes K.S.A. 9-1402, 12-1675 through 12-1678a, and 17-5002.
- 1. Time deposits and open accounts
- 2. Certificates of deposit
- 3. Repurchase agreements
- 4. Temporary notes or no-fund warrants
- 5. U.S. Treasury notes or bills
- 6. The Municipal Investment Pool
Revised: 07/07/1994, 02/19/2004, 01/27/2011