DFA - Investment of School District Funds
PURPOSE AND AUTHORITY
The purpose of the Policy is to comply with RSA 197:23-a, IV which requires the School Board to at least annually review and adopt an investment policy for the investment of public funds in conformance with the provisions of applicable statutes. The School Board authorizes the School District Treasurer to invest the School District’s funds in accordance with the requirements of RSA 197:23-a and this Policy.
SCOPE
This investment policy applies to all public funds held in the custody of the School District’s Treasurer.
OBJECTIVES
The primary object of this investment policy is to provide for, first and foremost, the safety of principal, as well as sufficient liquidity to support operations while generating a reasonable investment yield.
The specific investment policy objectives are:
- To ensure the preservation of capital and the protection of investment principal by investing in instruments authorized by State Law;
- To maintain sufficient liquidity to meet operating requirements for the School District;
- To satisfy all legal requirements; and
- To attain a market rate of return on investments taking into account risk and legal constraints and cash flow considerations. Return on investment is of secondary importance compared to the safety and liquidity objectives described above.
STANDARD OF CARE
All activity carried out under this Investment Policy shall be conducted in accordance with the “prudent person” standard in which investments shall be made with the 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 probable safety of their capital as well as the probable income to be derived.
Legal References:
RSA 197:23-a
First Reading: Unknown
Second Reading: Unknown
Adopted: Unknown
Last Review: Unknown