It is always prudent for any public unit to have an Investment Policy in place for the purpose of safeguarding funds, equitably distributing the investments and maximizing income of the governmental unit. The following policy is adopted for the Treasurer’s office.
This Investment Policy applies to the investment activities of all funds under the jurisdiction of the Treasurer. This Investment Policy will also apply to any new funds or temporary fund placed under the jurisdiction of the Treasurer. The Illinois Compiled Statutes will take precedence except where this policy is more restrictive wherein the policy will take precedence.
The purpose of this Investment Policy of the Treasurer is to establish cash management and investment guidelines for the stewardship of public funds under the jurisdiction of the Treasurer. The specific objectives of this investment policy will be as follows:
(A)
Safety of principal.
(B)
Diversity of investments to avoid unreasonable risks.
(C)
The portfolio shall remain sufficiently liquid to meet all operating costs which may be reasonably anticipated.
(D)
The highest interest rate will always be the objective of this policy combined with safety of principal, which is left to the discretion of the Treasurer, which includes whether or not the Treasurer will require collateralization of any deposits.
(E)
In maintaining its investment portfolio, the Treasurer shall avoid any transaction that might impair public confidence in the Treasurer’s office.
(F)
The Treasurer will give consideration to the financial institutions positive community involvement when consideration is given to the financial institution to be used as a depository.
(G)
All funds will be invested for a period of one (1) day or longer, depending on the requirement for the disbursement of funds.
(H)
All funds shall be deposited within two (2) working days at prevailing rates or better in accordance with Illinois Compiled Statutes.
All investment of funds under the control of the Treasurer is the direct responsibility of the Treasurer. The Treasurer shall be responsible for all transactions and shall establish a system of controls of the activities of all subordinates who are directly involved in the assistance of such investment activities.
The standard of prudence to be used by investment officials shall be the “prudent person” and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for any individual securities credit risk or market price changes, provided that deviations from expectation are reported in a timely fashion, and appropriate action is taken to control adverse developments.
All investment transactions shall be recorded by the Treasure or the Treasurer’s staff. A report will be generated, at least monthly, listing all active investments. Information regarding securities in portfolio by class or type, book value, interest earned and market value as of report date. This report will be made available to the County Board and Treasurer.
The Treasurer will have the sole responsibility to select which financial institutions will be depositories for Treasurer funds. The Treasurer will take into consideration security, size, location, condition, service, fees and the community relations involvement of the financial institution when choosing a financial institution.
At no time will the Treasurer investments exceed sixty-five percent (65%) of the financial institutions Capital and surplus.
All financial institutions having any type of financial relationships; deposits, investments, loans, etc. are required to provide a complete and current “Call Report” required by their appropriate regulatory authority each calendar quarter within thirty (30) days of the “Call” request date.
The Treasurer will use investments approved for governmental units as set forth in the most current issue of the Illinois Compiled Statutes.
It shall be the discretion of the Treasurer to determine whether or not collateral will be required of financial institutions receiving funds from the Treasurer. At all times the Treasurer will require that deposits in excess of thirty-five percent (35%) of the capital and surplus of a financial institution will be collateralized. The Treasurer may request collateral for any part of deposits in financial institutions when the Treasurer determines it to be in the best interests of safeguarding the funds on deposit.
When collateral is required, one hundred ten percent (110%) of the deposit will be required. Only the following collateral will be accepted:
U.S. Government direct securities
Obligations of Federal Agencies
Obligations of Federal Instrumentalities
Obligations of the State of Illinois
Obligations of the County of Monroe
Obligations of municipalities located within the County of Monroe, subject to acceptance by the Monroe County Treasurer
Acceptable Collateral as identified in the Illinois Compiled Statutes for use by the Treasurer of the State of Illinois.
Investments shall be made with judgment and care, under circumstances then prevailing, with persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the possible income to be derived.
The above standard is established as the standard for professional responsibility and shall be applied in the context of managing the Treasurer’s portfolio. Pursuant to the Public Funds Investment Act at 30 ILCS 235/2.5 and other provisions included in that Act, along with all other Statutes and Constitutional provisions regarding conflicts of interest and ethical considerations.
Only the Treasurer should be authorized to establish financial accounts for the office of Treasurer. At all times either the Treasurer, singly or signatories as designated by the Treasurer should be authorized to sign on financial accounts of the office of the Treasurer.