Van Buren Intermediate School District
Bylaws & Policies
 

6144 - INVESTMENT INCOME

The Board of Education authorizes the Director of Operations/Finance or the 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 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.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;
 D.securities issued or guaranteed by agencies or instrumentalities of the United States government;
 E.United States government or Federal agency obligation repurchase agreements;
 F.bankers' acceptances issued by a bank that is a member of the Federal deposit insurance corporation;
 G.mutual funds composed entirely of investment vehicles that are legal for direct investment by a school district;
 H.Michigan Investment Liquid Asset Fund Plus (MILAF).

An obligation purchased in accordance with Section 380.1223(2), when received by the 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., 380.622, 380.1223

Revised 1/99
Revised 1/03
Revised 4/14/04