Wautoma Area School District
Approved 01/23/2006
The Wautoma Board of Education authorizes an investment program for the purpose of securing maximum yield of interest revenues to supplement other revenues for the support of the Wautoma School District’s educational programs. The Business Manager is responsible for managing all activities associated with the investment program as to accomplish the program’s objectives.
The district’s investment program shall be administered in a way that will ensure:
1) A continuous process of temporary investing of all idle monies available for investment purpose.
2) The use of a system of bids/quotes or negotiation to obtain maximum yield on all investments.
3) That all district investments will be made in compliance with existing federal and state laws.
4) That no aggregate deposit exceeding $500,000 shall be permitted in any one depository unless the depository agrees to furnish the district with either evidence of deposit insurance or evidence of collateralized securities backed by the United States government or its agency.
5) That all interest earnings shall be deposited to the fund from which the money was invested, except for funds which rely on the district’s operating fund for their cash flow needs while waiting for their revenue.
It is the district’s preference that investments are made in local lending institutions, which serve and benefit the district and the area where school tax dollars are raised as long as the rates of return are competitive with market rates throughout the school district’s area. An equitable balance must also exist between rate of return and the benefit derived by the relationship between the district and the financial institution.
Investments permitted under the district’s investment program include:
1) Bonds and other securities guaranteed as to principal and interest by the United States government or agency of the government.
2) Time and/or demand deposits with maturities of two year or less in financial institutions, which are financially secure and insured by the FDIC, or equivalent insurance program.
3) Repurchase agreements collateralized by securities back by the United States government or agency thereof.
