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Hinsdale Public Library Investment Policy

Hinsdale Public Library Investment Policy

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Published by: Hinsdale Public Library on Sep 13, 2010
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Approved: 6/27/00 Rev: 01/17/08
1
Hinsdale Public LibraryInvestment Policy
Policy:
It is the policy of the Hinsdale Public Library (the Library) to invest idle public funds inrelatively risk-averse assets which will provide the highest return possible whilemeeting the cash flow demands of the Library and conforming to all State Statutesgoverning the investment of public funds.
Scope:
This investment policy applies to all cash and investments held for each of the fundsmaintained by the Library including, but not limited to, the operating, statutory reserve,bequests, special levy and special reserve
 
funds.
 Monies from individual Library fundsmay be commingled for investment purposes.
 The policies set forth below apply to the activities of the Treasurer and AssistantTreasurer of the Library and the Custodian of Library Monies (hereafter "Custodian ofMonies") as defined in Section 5.4 of the Library bylaws.
 
Prudence:
1) The standard of prudence to be used under this policy by the Custodian of Moniesshould be the “prudent person” standard which states:
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in themanagement of their own affairs, not for speculation, but for investment,considering the probable safety of their capital as well as the possible income to bederived,
2)
The above standard is established for professional responsibility and should beapplied in the context of managing the Library’s overall portfolio. The Custodian ofMonies, acting in accordance with this investment policy, should be relieved ofpersonal responsibility for an individual security’s credit risk or market pricechanges, provided that deviations from expectation are reported in a timely fashion,and appropriate action is taken to control adverse developments.
 
Approved: 6/27/00 Rev: 01/17/08
2
 Objectives:
1)
Risk Avoidance - The primary objective of investing Library funds is preservation ofprincipal.
2)
Liquidity - The types and length of investments should be managed to enable theLibrary to meet its cash flow requirements for operations and capital expenditures.
3)
Yield - The Library should strive to achieve a maximum return in consideration ofthe foregoing risk avoidance and liquidity objectives.
4)
Local Institutions - Preference will be given to financial institutions located withinthe Village of Hinsdale as long as yields are competitive with other institutions forcomparable instruments.
Delegation of Authority:
The Board may appoint the Finance Director of the Village of Hinsdale, or anotherVillage official, the Custodian of Monies responsible for investing and transferringfunds. Said Custodian will be appointed by a resolution of the Board, and actions takenby the Custodian with respect to Library funds shall be subject to review and approvalby the Treasurer and Finance Committee as well as to the limitations established byLibrary Bylaws, the authorizing Board resolution and Illinois law. The Custodian ofMonies shall be bonded in accordance with Illinois Compiled Statutes (ICS), Chapter 75,Section 5/4-9.The Treasurer, acting on behalf of the Board of Trustee, and after approval by theFinance Committee is authorized to modify current investment strategies, andallocation. Such changes will be submitted to the Board of Trustees in writing forapproval.The Custodian of Monies should submit any suggested changes in investment strategies,or fund allocations in writing to the Treasurer and to the Library Director.
 
Approved: 6/27/00 Rev: 01/17/08
3
Ethics and Conflicts of Interest:
Officers and employees involved in the investment process shall refrain from personalbusiness activity that could conflict with the proper execution and management of theinvestment program, or that could impair their ability to make impartial decisions.Employees and investment officials shall disclose any material interests in financialinstitutions with which they conduct business. They shall further disclose any personalfinancial/investment positions that could be related to the performance of theinvestment portfolio. Employees and officers shall refrain from undertaking personalinvestment transactions with the same individual with which business is conducted onbehalf of their entity.
 Authorized Financial Dealers and Institutions:
The Custodian of Monies will maintain a list of financial institutions authorized toprovide investment services. In addition, a list will also be maintained of approvedsecurity broker/dealers selected by credit worthiness. These may include “primary”dealers or regional dealers that qualify under Securities and Exchange Commission Rule15C3-1 (uniform net capital rule). No public deposit shall be made except on a qualifiedpublic depository as established by State Statutes.An annual review of the financial condition and registration of qualified bidders will beconducted by the Custodian of Library Monies.A current audited financial statement is required to be on file for each financialinstitution and broker/dealer in which the Library invests.Unless other institutions are specifically approved by the Library Board, Library fundsshall be invested only in institutions that have been authorized by the Village ofHinsdale.
 Allowable Investments
Investments shall be made in accordance with Illinois Compiled Statutes (ICS), Chapter30, Section 235, “Public Funds Investment Act,” but shall be limited to the followingtypes of investments:
1)
U. S. Treasury and Agency obligations held to maturity
2)
Certificates of Deposit at commercial banks and insured by the Federal DepositInsurance Corporation (FDIC)
3)
Money Market mutual fundsIllinois Public Treasurers Investment Pool (IPTIP) or any other local governmentinvestment pool approved by the Illinois Department of Insurance

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