| Centreville Public Schools |
| Bylaws & Policies |
6144 - INVESTMENT INCOME
The Board of Education authorizes the Superintendent or Business Office Manager/Central Office Accountant to make investments of available monies from the several funds of the District in:
| A. | bonds, bills, or notes of the United States; obligations, the principal and interest of which are fully guaranteed by the United States; or obligations of the State; | |
| B. | certificates of deposit issued by financial institutions which means a state or nationally-chartered bank or a state or federally-chartered savings and loan association, savings bank, or credit union whose deposits are insured by an agency of the United States government and which maintains a principal office or branch office in Michigan under Michigan and Federal laws; | |
| C. | certificates of deposit of a public corporation(s) (CDs) in insured depository institutions in accordance with the following conditions: |
| 1. | the funds are initially invested through a financial institution that is not ineligible to be a depository of surplus funds belonging to this State under (M.C.L.A. 21.146 (discriminatory lending practices) | ||
| 2. | the financial institution arranges for the investment of the funds in certificates of deposit in one (1) or more insured depository institutions, as defined in 12 U.S.C. 1813, or one or more insured credit unions, as defined in 12 U.S.C. 1752, for the account of the school district | ||
| 3. | the financial institution acting as custodian for the school district is insured by an agency of the United States | ||
| 4. | the financial institution acts as custodian for the school district with respect to each certificate of deposit | ||
| 5. | at the same time that the funds are deposited and the certificate or certificates of deposit are issued, the financial institution receives an amount of deposits from customers of other insured depository institutions equal to or greater than the amount of the funds initially invested by the school district through the financial institution |
| D. | commercial paper rated prime 1 or prime 2 at the time of purchase and maturing not more than 270 days after the date of purchase; | |
| E. | securities issued or guaranteed by agencies or instrumentalities of the United States government; | |
| F. | United States government or Federal agency obligation repurchase agreements; | |
| G. | bankers' acceptances issued by a bank that is a member of the Federal deposit insurance corporation; | |
| H. | mutual funds composed entirely of investment vehicles that are legal for direct investment by a school district; | |
| I. | investment pools, as authorized by the surplus funds investment pool act, Act. No. 367 of the Public Acts of 1982, being sections 129.11 to 129.118 of the Michigan Compiled Laws, composed entirely of instruments that are legal for direct investment by a school district. |
An obligation purchased in accordance with Section 380.1223(2), when received by the Business Office Manager/Central Office Accountant, shall be deposited with the bank or trust company having the deposit of the money of the particular fund from which the obligation was purchased.
Money in the several funds of the School District shall not be commingled for the purpose of making an investment authorized by Section 380.1223. The Board, however, may establish and maintain one common debt retirement fund for bond issues of like character.
Earnings on an investment shall become a part of the fund from which the investment was made.
The Board may adopt a resolution at its annual organizational meeting, authorizing electronic transactions and the treasurer or the Electronic Transfer Officer (ETO) as authorized agent(s) to complete such transactions on behalf of the Board. The Automatic Clearing House (ACH) authorizing resolution shall include all of the following:
| A. | That an officer or employee designated by the Treasurer or ETO is responsible for the local unit’s ACH agreements, including payment approval, accounting, reporting, and generally for overseeing compliance with the ACH policy. | |
| B. | That the officer or employee responsible for disbursement of funds shall submit to the local unit documentation detailing the goods or services purchased, the cost of the goods or services, the date of the payment, and the department levels serviced by payment. This report can be contained in the electronic general ledger software system of the local unit or in a separate report to the governing body of the local unit. | |
| C. | A system of internal accounting controls to monitor the use of ACH transactions made by the local unit. | |
| D. | The approval of ACH invoices before payment. | |
| E. | Any other matters the Treasurer or ETO considers necessary. |
M.C.L.A. 124.301 et seq., 129.11 to 129.118, 380.1221, 380.1223 (2), 380.622
P.A. 22 of 2009
Revised 5/18/98
Revised 11/30/98
Revised 1/19/04
Revised 2/22/10
Revised 11/22/10