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Investment
of Public Funds
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Purpose
The purpose of this policy statement is to outline the responsibilities,
general objectives, and specific guidelines for management of public
funds by the XYZ Public Library.
Responsibilities
All investment policies and procedures of the XYZ Public Library
will be in accordance with Illinois law. The authority of the Library
Board of Library Trustees to control and invest public funds is
defined in the Illinois Public Funds Investment Act, and the investments
permitted are described therein. Administration and execution of
these policies are the responsibility of the Treasurer, and, by
designation, the Library Director acting under the authority of
the Library Board of Library Trustees. Investments, fund balances,
and the status of such accounts will be reported at each regularly
scheduled meeting of the Library Board.
Objectives
In selecting financial institutions and investment instruments
to be used, the following general objectives should be considered:
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Safety |
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Maintenance of sufficient
liquidity to meet current obligations |
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Return on investment |
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Simplicity of management |
Guidelines
The following guidelines should be used to meet the general investment
objectives:
| A. |
Safety |
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1. |
Investments will be
made only in securities guaranteed by the U.S. government, or
in FDIC or FSLIC insured institutions. Deposit accounts in banks
or savings and loan institutions will not exceed the amount
insured by FDIC or FSLIC coverage. |
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2. |
Authorized investments
include and will primarily consist of: Certificates of Deposit,
Treasury Bills and other securities guaranteed by the U.S. Government,
participation in the State of Illinois Public Treasurer’s
Investment Pool, and any other investments allowed under State
law that satisfy the investment objectives of the library district.
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| B. |
Maintenance
of sufficient liquidity to meet current obligations |
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In general,
investments should be managed to meet liquidity needs for the
current month plus one month (based on forecasted needs). |
| C. |
Return on
investment |
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Within the
constraints on Illinois law and this investment policy, every
effort should be made to maximize return on investments made.
All available funds will be placed in investments or kept in
interest bearing deposit accounts at all times. |
| D. |
Simplicity
of management |
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The time
required by library administrative staff to manage investments
shall be kept to a minimum. |
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