DFE: Investment of Funds
The investment of school district monies shall be the responsibility of the superintendent, business manager and/or the district treasurer.
Any monies not immediately required for the purposes for which the monies were collected or received, shall be invested as provided by current statute.
All investments of district monies shall be secured by F.D.I.C. coverage, a pledge of direct federal obligations or direct guaranteed federal agency deposits in accordance with requirements of state law. Exceptions to the required posting of securities shall be only as provided by law and approval of the board.
All offerings of monies for investment shall state the amount to be invested and the maturity date of each investment.
All banks and savings and loan associations with main or branch offices located within the county shall be given an opportunity to bid on all monies offered for investment. All bids shall be specified on the basis of simple interest.
Distribution of monies for investment shall be as follows:
The treasurer or other person designated by the board shall inform each eligible bank and savings and loan association of the total amount of money to be invested on a specified date and the maturity date of the investment. Each bank or savings and loan association bidding shall submit a single bid of the rate of interest it would pay on all or part of the funds to be invested.
Monies shall be invested with the highest bidder in such amount as the bidder will accept, and any remaining amounts shall be invested with the next highest bidders in order of interest rate offered. No bidder shall be eligible to recover any funds in the same offering at a rate lower than its single bid.
No bid less than the most recently determined investment rate as determined by the state treasurer shall be accepted. No funds will be invested for maturities of more than two years.
Any monies not otherwise invested in eligible banks and savings and loans located in the district due to their inability, for whatever reason, to accept the funds, shall be invested in secured deposits in banks or savings and loans which have offices located in counties in which a part of the school district is located.
Any monies not invested in banks and savings and loans in the district or located in counties in which a part of the school district is located may be invested in the municipal investment pool fund or United States Treasury bills or notes as authorized by Kansas law.
Monies available for reinvestment as a result of maturities may be reinvested with the banks or association holding such monies provided the bank or savings and loan association agrees to pay the same or higher rate as that offered by the highest bidder at the time of re-offer.
The treasurer shall record the following information: the date of each offering; the name of each bank or savings and loan association notified; the name of the officer notified; the bid, carried to five decimal places (.11111); the amount of monies the bank or savings and loan association is willing to accept at the rate bid.
To be eligible to receive invested funds or deposits from the district, any otherwise eligible bank or savings and loan association shall have on file in the office of the district treasurer a letter requesting its inclusion in the bidding process and providing proper assurance of compliance with the requirements of applicable laws and board policy relating to maintenance of proper security and assurance of its membership in good standing consistent with current federal regulations. The superintendent shall report monthly to the board on the district's investments.
Approved: May 4, 2009