Investment Policy

It is always prudent for any public unit to have an Investment Policy in place for the purpose of safe guarding funds, equitably distributing the investments and maximizing income of the governmental unit. The following policy is adopted for the Moultrie County Treasurer's Office.

Scope of Investment Policy

This Investment Policy applies to the investment activities of all funds under the jurisdiction of the Moultrie County Treasurer. This Investment Policy will also apply to any new funds or temporary funds placed under the jurisdiction of the Moultrie County Treasurer. The Illinois State Statutes will take precedence except where this policy is more restrictive wherein this policy will take precedence.

Objectives

The purpose of this Investment Policy of the Moultrie County Treasurer is to establish cash management and investment guidelines for the stewardship of public funds under the jurisdiction of the Moultrie County Treasurer. The specific objectives of this investment policy will be as follows:

1. Safety of principal.
2. Diversity of investments to avoid unreasonable risks.
3. The portfolio shall remain sufficiently liquid to meet all operating costs.
4. The highest interest rate available will always be the objective of this policy combined with safety of principal, which is left to the discretion of the Moultrie County Treasurer, which includes whether or not the Moultrie County Treasurer will require collateralization of any deposits.
5. In maintaining its investment portfolio, the Moultrie County Treasurer shall avoid any transaction that might impair public confidence in the Moultrie County Treasurers office.
6. The Moultrie County Treasurer will give consideration to the financial institutions positive community involvement when consideration is given to the financial institution to be used as a depository.
7. All funds will be invested for a period of one day or longer, depending on the requirement for the disbursement of funds.
8. All funds shall be deposited within two working days at prevailing rates or better in accordance with Illinois State Statutes.

Responsibility

All investment of funds under the control of the Moultrie County Treasurer is the direct responsibility of the Moultrie County Treasurer. The Moultrie County Treasurer shall be responsible for all transactions and shall establish a system of controls of the activities of all subordinates who are directly involved in the assistance of such investment activities.

Accounting

All investment transactions shall be recorded by the Moultrie County Treasurer or the Moultrie County Treasurer's staff. A report will be generated, at least monthly, listing all active investments. This report will be made available to the Moultrie County Board and Moultrie County Treasurer.

Financial Institutions

The Moultrie county Treasure will have the sole responsibility to select which financial institutions will be depositories for Moultrie County Treasurer funds.
The Moultrie County Treasurer will take into consideration security, size, location, condition, service, fees and the community relations involvement of the financial institution when choosing a financial institution.
At no time will the Moultrie County Treasurer investments exceed 65% of the financial institutions Capital and surplus.
All financial institutions having any type of financial relationships; deposits, investments, loans, etc. are required to provide a complete and current "Call Report" required by their appropriate regulatory authority each calendar quarter within 30 days of the "Call" request date.

Investment Vehicles

The Moultrie County Treasurer will use investments approved for governmental units as set forth in most current issue of the Illinois Revised State Statutes including Securities Exchange Commission registered and AAA rated by Moody's and Standard Poor's mutual funds consisting of U.S. Government Treasuries.

Collateral

It shall be the discretion of the Moultrie County Treasurer to determine whether or not collateral will be required of financial institutions receiving funds from the Moultrie County Treasurer. At all times the Moultrie County Treasurer will require that deposits in excess of 35% of the capital and surplus of a financial institution will be collateralized. The Moultrie County Treasurer may request collateral for any part of deposits in financial institutions when the Moultrie County Treasurer determines it to be in the best interests of safeguarding the funds on deposit.
When collateral is required, 110% of the deposit will be required. Only the following collateral will be accepted:

U. S. Government direct securities
Obligations of Federal Agencies
Obligations of Federal Instrumentalities
Obligation of the State of Illinois
Obligations of the County of Moultrie
Obligations of municipalities located within the County of Moultrie,
Subject to acceptance by the Moultrie County Treasurer
Acceptance Collateral as identified in the Illinois Revised State Statutes for use by the Treasurer of the State of Illinois

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 speculations, but for investment, considering the probable safety of their capital as well as the possible income to be derived.

The above standard is established as the standard for professional responsibility and shall be applied in the context of managing the Moultrie County Treasurer's portfolio.

Security Controls

Only the Moultrie County Treasurer should be authorized to establish financial accounts for the office of Moultrie County Treasurer. At all times either the Moultrie County Treasurer, singly or two, jointly, of two or more signatories as designated by the Moultrie County Treasurer should be authorized to sign on financial accounts of the office of Moultrie County Treasurer. Authorized signatories should NOT be permitted to reconcile bank accounts at any time.

Adopted this 6th day of December, 2006.