Suffolk County, NY
 
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Suffolk County Legislature 5-16-2006 by Res. No. 387-2006 (Ch. 658 of the 1985 Code). Amendments noted where applicable.]
GENERAL REFERENCES
Ethics and accountability — See Ch. 77.
Finances — See Chs. 86 and 952.
Local development corporations — See Ch. 155.
Reserve funds — See Ch. 1091.
981a App A Sch of Eligible Securities

§ 981-1 Scope.

This investment policy applies to all monies and other financial resources available for investment by Suffolk County on its own behalf.

§ 981-2 Objectives.

The primary objectives of the local government's investment activities are, in priority order:
A. 
To conform with all applicable federal, state and other legal requirements (legal);
B. 
To adequately safeguard principal (safety);
C. 
To provide sufficient liquidity to meet all operating requirements (liquidity); and
D. 
To obtain a reasonable rate of return (yield).

§ 981-3 Delegation of authority.

[Amended 6-17-2014 by L.L. No. 32-2014]
The Suffolk County Legislature's responsibility for administration of the investment program is delegated to the Suffolk County Comptroller as set forth by the County Charter, Article V, establishing the Department of Audit and Control, the head of which shall be the County Comptroller. The Charter states that the County Comptroller shall receive and have custody of all public funds belonging to or handled by the County. The County shall have a written investment policy which shall include procedures for adequate internal control which provide a satisfactory level of accountability based on records incorporating description and amounts of investments, transaction dates, and other relevant information and regulate the activities of subordinate employees.

§ 981-4 Prudence.

A. 
All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction or perception that might impair public confidence in Suffolk County to govern effectively.
B. 
Investments shall at all times 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 safety of the principal as well as the probable income to be derived.
C. 
All participants involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

§ 981-5 Diversification.

It is the policy of Suffolk County to diversify its deposits and investments by financial institution, by investment instrument, and by maturity scheduling.

§ 981-6 Internal controls.

[Amended 6-17-2014 by L.L. No. 32-2014]
A. 
It is the policy of Suffolk County for all monies collected by any officer or employee of Suffolk County to transfer those funds to the Comptroller within 10 days after the end of the month, or within the time specified by law, whichever is shorter.
B. 
Pursuant to Resolution No. 1054 of 1983 and Resolution No. 15 of 1986, County departments are to deposit all income into interest-bearing accounts. Standard Operating Procedure D-08, dated October 21, 1992, directs departments to prepare and submit monthly SCIN Form 212 to the County Comptroller indicating the balance in each bank account.
C. 
The Comptroller is responsible for establishing and maintaining an internal control structure to provide reasonable assurance that deposits and investments are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly, and are always managed in compliance with applicable laws and regulations.

§ 981-7 Designation of depositories; deposit placement program authorized.

[Amended 9-15-2011 by L.L. No. 49-2011; 9-9-2014 by Res. No. 690-2014]
A. 
The banks and trust companies authorized for the deposit of County monies are designated each year at the organizational meeting of the Suffolk County Legislature.
B. 
The banks and trust companies authorized for the deposit of County monies are hereby authorized to arrange for the redeposit of the County's monies in one or more banking institutions, as defined in § 9-r of the New York Banking Law, for the account of the County through a deposit placement program that meets all of the conditions set forth in § 10(2)(a)(ii) of the New York General Municipal Law.

§ 981-8 Collateralizing of deposits.

A. 
In accordance with the provisions of General Municipal Law § 10, all deposits of Suffolk County, including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act shall be secured by:
(1) 
A pledge of eligible securities with an aggregate market value, as provided by General Municipal Law § 10, equal to the aggregate amount of deposits from the categories designated in Appendix A to the policy.[1]
[1]
Editor's Note: Appendix A, Schedule of Eligible Securities, is included at the end of this chapter.
(2) 
An eligible surety bond payable to the government for an amount at least equal to 100% of the aggregate amount of deposits and the agreed-upon interest, if any, executed by an insurance company authorized to do business in New York State, whose claims-paying ability is rated in the highest rating category by at least two nationally recognized statistical rating organizations.
(3) 
An irrevocable letter of credit issued in favor of the County by a federal home loan bank whose commercial paper and other unsecured short-term debt obligations are rated in the highest rating category by at least one nationally recognized statistical rating organization payable to the County as security for the payment of 100% of the aggregate amount for the County deposits and the agreed-upon interest, if any.
[Added 9-9-2014 by Res. No. 690-2014]
B. 
Any surety bond provided in compliance with the investment policy shall be delivered to the Suffolk County Comptroller's office prior to or concurrent with the deposit of monies in that financial institution.
[Amended 6-17-2014 by L.L. No. 32-2014]

§ 981-9 Safekeeping and collateralization.

A. 
Eligible securities used for collateralizing deposits shall be held by a third-party bank or trust company subject to security and custodial agreements.
B. 
The security agreement shall provide that eligible securities are being pledged to secure local government deposits together with agreed-upon interest, if any, and any cost or expenses arising out of the collection of such deposits upon default. It shall also provide the conditions under which the securities may be sold, presented for payment, substituted or released, and the events which will enable the local government to exercise its rights against the pledged securities. In the event that the securities are not registered or inscribed in the name of the local government, such securities shall be delivered in a form suitable for transfer or with an assignment in blank to the Comptroller or its custodial bank.
[Amended 6-17-2014 by L.L. No. 32-2014]
C. 
The custodial agreement shall provide that securities held by the bank or trust company, or agent of and custodian for, the local government, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposit or other liabilities. The agreement should also described that the custodian shall confirm the receipt, substitution or release of the securities. The agreement shall provide for the frequency of revaluation of eligible securities and for the substitution of securities when a change in the rating of a security may cause ineligibility. Such agreement shall include all provisions necessary to provide the local government a perfected interest in the securities.

§ 981-10 Permitted investments.

A. 
As authorized by General Municipal Law § 11, Suffolk County authorizes the Comptroller to invest monies not required for immediate expenditure for terms not to exceed its projected cash flow needs in the following types of investments:
[Amended 6-17-2014 by L.L. No. 32-2014]
(1) 
Special time deposit accounts.
(2) 
Certificates of deposit.
(3) 
Obligations guaranteed by agencies of the United States of America where the payment of principal and interest are guaranteed by the United States of America.
(4) 
Obligations of the State of New York, to the extent that no more than 25% of invested monies shall be invested in obligations of the State of New York.
(5) 
Obligations issued pursuant to Local Finance Law § 24 or 25 (with approval of the State Comptroller) by any municipality school district or district corporation other than Suffolk County, to the extent that no more than 15% of invested monies shall be invested in obligations issued pursuant to Local Finance Law § 24 or 25.
(6) 
Participation in a cooperative investment program with another authorized governmental entity pursuant to Article 5-G of the General Municipal Law where such program meets all the requirements set forth in the Office of the State Comptroller Opinion No. 88-46 and the specific investment program has been authorized by the County Legislature, to the extent that no more than 15% of invested monies, exclusive of trust and agency funds, shall be invested in obligations issued by any one approved cooperative investment program.
(7) 
Tax anticipation notes and reserve anticipation notes issued by any school district in New York State.
[Added 9-9-2014 by Res. No. 690-2014]
B. 
All investment obligations shall be payable or redeemable at the option of the County of Suffolk within such times as the proceeds will be needed to meet expenditures for purposes for which the monies were provided and, in the case of obligations purchased with the proceeds of bonds or notes, shall be payable or redeemable at the option of the County of Suffolk within two years of the date of purchase. The investment maturities of monies invested from current operating funds shall be limited to 12 months or less, while the maturities of monies invested from budgetary reserve funds shall be limited to 20 months or less.

§ 981-11 Authorized financial institutions and dealers.

[Amended 6-17-2014 by L.L. No. 32-2014]
Suffolk County shall maintain a list of financial institutions and dealers approved for investment purposes and establish appropriate limits to the amount of investments which can be made with each financial institution or dealer. All financial institutions with which the local government conducts business must be credit worthy. Banks shall provide their most recent Consolidated Report of Condition (Call Report) at the request of Suffolk County. Security dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank, as primary dealers. The Comptroller is responsible for evaluating the financial position and maintaining a listing of proposed depositaries, trading partners and custodians. Such listings shall be evaluated at least annually.

§ 981-12 Purchase of investments.

A. 
The Comptroller is authorized to contract for the purchase of investments directly, including through a repurchase agreement, from an authorized trading partner.
[Amended 6-17-2014 by L.L. No. 32-2014]
B. 
All purchased obligations, unless registered or inscribed in the name of the local government, shall be purchased through, delivered to and held in the custody of a bank or trust company.
C. 
Such obligations shall be purchased, sold or presented for redemption or payment by such bank or trust company only in accordance with prior written authorization from the officer authorized to make the investment. All such transactions shall be confirmed in writing to Suffolk County by the bank or trust company. Any obligation held in the agreement as described in General Municipal Law § 10.
D. 
The custodial agreement shall provide that securities held by the bank or trust company, as agent of and custodian for, the local government, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposit or other liabilities. The agreement shall describe how the custodian shall confirm the receipt and release of the securities. Such agreement shall include all provisions necessary to provide the local government a perfected interest in the securities.

§ 981-13 Repurchase agreements.

Repurchase agreements are authorized subject to the following restrictions:
A. 
All repurchase agreements must be entered into subject to a master repurchase agreement.
B. 
Trading partners are limited to banks or trust companies authorized to do business in New York State and primary reporting dealers.
C. 
Obligations shall be limited to obligations of the United States of America and obligations of agencies of the United States of America where principal and interest are guaranteed by the United States of America.
D. 
No substitution of securities will be allowed.
E. 
The custodian shall be a party other than the trading partner.
F. 
Repurchase agreement maturities shall be limited to 30 days or less.