School City of East Chicago
Bylaws & Policies
 

6144 - INVESTMENT INCOME

The School Board authorizes the Treasurer to make investments of available monies from the several funds of the Corporation 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 organized and authorized to operate in this State;

 C.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.

The purpose of the investments is to maximize the returns on the Corporation's excess cash balances consistent with safety of those monies and with the desired liquidity of the investments.

Investments in U.S. Treasury securities and those other securities completely guaranteed by the Treasury as to payment of principal and interest may be purchased in any dollar amount up to 100% of the available reserves.

The Treasurer is authorized to contract with a depository for the operation of a cash management system under the following conditions:

 A.the contract is in writing

 B.the contract provides for the investment of funds by the depository with the written approval of the Board

 C.the depository keeps all records concerning investment cash management

 D.the investments are made in accordance with State law with maturities not to exceed two (2) years

 E.the contract, which cannot exceed two (2) years, is awarded using the Corporation's bidding procedure

The Treasurer may request, no more often than four (4) times per year, that each public depository report the amount of monies deposited by him/her and the total value of the pool of securities pledged to secure the monies of this Corporation held by the depository.

The Treasurer shall include in the monthly report to the Board all cash in all accounts on deposit as well as the investment assets of the Board.

The Board also requires the Treasurer to report to the Board monthly:

 A.the types and amounts of each investment and the interest earned on each;

 B.the transactions occurring since the last report.

An obligation, when received by the Treasurer, 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 Corporation may be commingled for the purpose of making an investment. The Treasurer may also join with other school treasurers, the regional service region, for the purpose of investing Corporation funds. S/He shall account for such investments separately.

Earnings on an investment shall become a part of the fund from which the investment was made.

I.C. 5-13-9, 20-26-5-4

© Neola 2006