School Board authorizes the School District Treasurer working in
conjunction with the Superintendent and his/her designee and pursuant
to RSA 197:23-a to invest the funds of the District subject to the
following objectives and standards or care.
The three objectives, in priority order, of investment activities shall be safety, liquidity, and yield.
• Safety of Principal is the foremost objective in this policy.
Investments shall be undertaken in a manner that seeks to ensure the
preservation of capital by mitigating credit and interest rate risk.
This will be accomplished by limiting the type of the investments and
institutions to those stipulated by statute and fully covered by FDIC
insurance or collateral approved pursuant to RSA 366.57.
• Liquidity of the investment portfolio shall remain sufficient to meet
all operating requirements that may be reasonably anticipated.
• Yield. The investment portfolio shall be designed with the objective
of attaining a market rate of return throughout budgetary and economic
cycles, taking into account the investment risk constraints and
liquidity needs. Return on investment is of secondary importance
compared to the safety and liquidity objectives described above.
STANDARDS OF CARE
1. Prudence. The standard of prudence to be used by the School District
Treasurer and Superintendent or his/her designee involved in the
investment process shall be the "prudent person" standard and shall be
applied in the context of managing an overall portfolio. They are
directed to use the GFOA* Recommended Practices and Policy Statements
Related to Cash Management as a guide to the prudent investment of
2. Ethics and conflicts of interest. The School District Treasurer and
Superintendent or his/her designee 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. Employees and
Investment officials shall disclose any material interests in financial
institutions with which they conduct business. They shall further
disclose any personal financial institutions with which they conduct
business. They shall further disclose any personal financial/investment
positions that could be related to the performance of the investment
portfolio. Employees and officials shall subordinate their personal
investment transactions to those of the School District particularly
with regard to the timing of purchases and sales.
3. Internal Controls. The School District Treasurer and Superintendent
or his/her designee shall establish a system of internal controls,
which shall be documented in writing. The internal controls shall be
reviewed by the School Board and an independent auditor.
This investment policy shall be reviewed annually by the School Board.
ADOPTED: December 10, 1998
REVISED: September 27, 2007
January 9, 2014
Reviewed, March 24, 2016
Reviewed, April 27, 2017
Statutory Reference: RSA 197:23-a. (School District Treasurer's duties)
RSA 383:22 (public deposit investment pool) RSA 386:57 (bank
commissioner's authority to define acceptable securities)