The Treasurer shall prepare an investment report at least monthly. The report should be provided to the County Board and available upon request. The report should be in a format suitable for review by the general public. An annual report should also be provided to the County Board. A statement of the market value of the portfolio shall be issued to the County Board quarterly.
The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a comparable rate of return during a market/economic environment of stable interest rates. Portfolio performance should be compared to benchmarks with similar maturity, liquidity and credit quality as the portfolio maintained by the Illinois Public Treasurer’s Investment Pool (IPTIP).
The Treasurer is responsible for establishing and maintaining an internal control structure designed to insure that the assets of the County are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The internal controls shall address the following points:
(A) Control of collusion.
(B) Separation of transaction authority from accounting.
(C) Custodial safekeeping.
(D) Written confirmation of telephone transactions for investments and wire transfers.
To the extent possible, the County shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the County will not directly invest in securities maturing more than two (2) years from the date of purchase.
Reserve funds may be invested in securities exceeding two (2) years if the maturity of such investments are made to coincide as nearly as practicable with the expected use of the funds.
The County shall diversify its investments to the best of its ability based on the type of funds invested and the cash flow needs of those funds. Diversification can be by type of investment, number of institutions invested in, and length of maturity.
All security transactions, including collateral for repurchase agreements, entered into by the County, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent third party custodian designated by the Treasurer and evidenced by safekeeping receipts and a written custodial agreement.
Collateralization may be required, at the discretion of the County, on all funds held in banks or savings and loans above the insured limits provided by the FDIC or FSLIC. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be a minimum of one hundred two percent (102%) of market value of principal and accrued interest.
Investments may be made in any type of security allowed for in Illinois statutes regarding the investment of public funds. Investments shall be made that reflect the cash flow needs of the fund type being invested.
The Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security brokers/dealers selected by creditworthiness.
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions.
Management and administrative responsibility for the investment program is hereby delegated to the Treasurer who may establish written procedures for the operation of the investment program.
The primary objective, in order of priority, shall be:
(A) Legality. Conformance with federal, state and other legal requirements.
(B) Safety. Preservation of capital and protection of investment principal.
(C)Liquidity. Maintenance of sufficient liquidity to meet operating requirements.
(D) Yield. Attainment of market rates of return.
The portfolio should be reviewed periodically as to its effectiveness in meeting the County’s needs for safety, liquidity, rate of return, diversification and its general performance.
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital, as well as the probable income to be derived.
The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio.
It is the policy of the County to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the County and conforming to all State and local statutes governing the investment of public funds.