The intent of the Investment Policy is to define the parameters
within which funds are to be managed. The policy formalizes the framework
for the Township's investment activities that must be exercised
to ensure effective and judicious management of the Township's
funds. These guidelines are intended to be broad enough to allow the
Board of Commissioners or their designees to function properly within
the parameters of responsibility and authority, yet specific enough
to adequately safeguard the Township's financial assets.
This Investment Policy shall be executed in compliance with
the Township of Haverford Home Rule Charter, Pennsylvania Act 72 of
1971 (pertaining to collateralization of deposits exceeding
insurable limits), Act 10 of 2016 (pertaining to permitted investments),
and all other applicable federal, state and local requirements.
Custodial credit risk is the risk that, in the event of a bank
failure, the government's deposits may not be returned to it.
Bank balances up to $250,000 per bank are insured by the Federal Deposit
Insurance Corporation (FDIC). When the value of the Township's
deposits exceeds the insurable limits of the institution, the additional
sums shall be secured by collateral pledged by the depository pursuant
to Pennsylvania Act 72 of 1971 (72 P.S. § 3836-1 et seq.,
"Standardizing the Procedures for Pledges of Assets") which requires
banks to pledge collateral for Township deposits in excess of $250,000.
Act 72 of 1971 was amended by Act 139 of 2000 to permit the depository
institution to secure its public deposits with a Federal Home Loan
Bank letter of credit rather than with a pledge of collateral.
The Township of Haverford Investment Policy shall be adopted
by resolution of the Board of Commissioners. The policy shall be reviewed
periodically and modifications made thereto must be approved by the
Board of Commissioners.