AP 6320 Investments - Administrative Procedures, Chapter 6 Business and Fiscal Affairs
- References: Government Code Sections 53600 et seq.
The Vice President of Administrative Services is responsible for investing the funds of the District that are not required for the immediate needs of the District. Funds so invested shall follow the investment policy approved by the Governing Board in accordance with the Government Code Sections cited above and the following:
- Funds that are not required for the immediate needs of the District shall be prudently invested in order to earn a return on such investment.
- The preservation of principal is of primary importance. Each transaction shall seek to ensure that capital losses are avoided, whether from securities or erosion of market value.
- The investment program should remain sufficiently flexible to enable the District to meet all operating requirements that may be reasonably anticipated in any fund. After preservation of principal, liquidity is the major objective.
- In managing District investments, District officials should avoid any transactions that might impair public confidence.
- Investments should be made with precision and care, considering the probable safety of the capital as well as the probable income to be derived. (See Government Code Section 53600.6 regarding solvency and creditworthiness.)
District funds maintained by the County Treasurer that are not required for the immediate needs of the District may be invested as follows:
- County Treasurer's Investment Pool
Investment of District funds may be delegated to the County Treasurer. In accordance with county procedures, District funds may be pooled with other local agencies and invested by the County Treasurer in accordance with the investment guidelines specified by Government Code Section 53635 and investment policies adopted by the County Board of Supervisors.
- State's Local Agency Investment Fund (Government Code Sections 16429.1-16429.3)
District funds not required for immediate needs of the District may be remitted to the State Local Agency Investment Fund (LAIF) for the purpose of investment (Government Code Section 16429.1). District funds deposited with the LAIF shall be invested by the State Treasurer in securities prescribed by Government Code Section 16430, or the Surplus Money Investment Fund and as determined by the Local Investment Advisory Board (Government Code Section 16429.2).
- Other Investments
Other investments as permitted by Government Code Sections 53600 et seq., and in particular Government Code Sections 53601 and 53635, may be made by Vice President of Administrative Services or designee subject to prior approval of the Governing Board.
The Vice President of Administrative Services shall provide the Board with quarterly reports describing the types and amounts of investments, purchase and maturity dates, and yield on investments, purchase and maturity dates, and yield on investments, including a statement of how the district portfolio compares with district’s investment policy.
Approval of Investment transactions shall be as follows:
- Approval of deposits and withdrawals in the investment account shall require the written authorization of the Vice President of Administrative Services or the President/Superintendent.
For Bond related Technology Endowment, the following investments apply:
- In accordance with the Resolution and subject to the federal tax restrictions, moneys in the Debt Service Fund and the Building Funds may be invested in the following:
- Lawful investment permitted by Sections 16429.1 and 53601 (“Section 53601”) of the Government Code of the State of California, including Non-AMT Bonds and Qualified Non-AMT Mutual Funds;
- Shares in a California common law trust established pursuant to Title 1, Division 7, Chapter 5 of the Government Code which invests exclusively in investments permitted by Section 53635 of the Government Code;
- A guaranteed investment contract with a provider rated in at least the second highest category by each rating agency then rating the Bonds;
- The Local Agency Investments Fund of the California State Treasurer;
- The County Pool; and,
- State and Local Government Series Securities.
See Board Policy #6320.Adopted: February 2014