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Investing School Board Funds
General
The investment policy details the School District’s cash investment objectives, delegation of authority, standards
of prudence, reporting requirements, internal controls, eligible investments, selection process for investments,
investment management and advisory firms, diversification and safekeeping requirements.
Scope
This investment policy applies to all investment transactions/activities of the School District.
Objectives
The primary objectives of the Wauwatosa School District investment activities shall be the following in order of
importance:
A. To preserve capital in the overall portfolio and to protect investment principal;
B. To remain sufficiently liquid to meet disbursement requirements which might be reasonably anticipated; and
C. To manage the investment portfolio to maximize return consistent with objectives in Items 1 and 2 and other
risk limitations described in this policy.
Delegation of Authority
A. The responsibility for conducting investment transactions rests with the Director of Business Services.
B. The Director of Business Services shall have the authority to transfer funds between accounts established
for investments as prescribed in the investment procedures. (Two (2) signatures are required on all transfer
requests.)
C. The Wauwatosa School District may contract with one (1) or more investment managers or advisors with
authority to make investment commitments consistent with this policy with Board approval.
Prudence
The standard of prudence to be applied by the Director of Business Services shall be the "Prudent Person Rule"
which states, "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 Prudent Person Rule shall be applied in the context of managing the overall portfolio.
Reporting Requirements
The Director of Business Services shall provide the Wauwatosa School Board with copies of a portfolio
performance report annually.
Eligible Investments
A. Authorized Investments. Subject to restrictions as may be imposed by law (Section 66.04(2) of Wisconsin
State Statutes), funds will only be invested in any of the following securities:
1. U.S. Treasury Obligations and Government Agency Securities
Obligations of the United States of America, its agencies and instrumentalities, provided that the payment
of the principal and interest is fully guaranteed by the insurer.
2. Certificates of Deposit
Certificates of Deposit and other evidences of deposits from credit unions, banks, savings banks, trust
companies or savings and loan associations which are authorized to transact business in the State and
are qualified institutions, which time deposits mature in not more than one (1) year. Any Certificate of
Deposit invested over the Federal Deposit Insurance Corporation and State Deposit Guaranteed Fund
insured amounts of $500,000, whichever is less, are to be fully collateralized.
3. State of Wisconsin Investment Board’s Local Government Investment Pool.
4. Repurchase Agreements.
Investment agreements pursuant to which a Federal or State credit union, Federal or State savings and
loan association, State bank, savings and trust company, mutual savings bank, or national bank in the
State of Wisconsin agrees to repay funds advanced to it by the issuer, plus interest. Repurchase
Agreements are to be secured by investment securities fully guaranteed by the U.S. Government.
5. Operating Bank Account.
Deposits shall be limited to the lesser of $500,000 or amounts guaranteed by Federal Deposit Insurance
Corporation and the State Deposit Guarantee Fund unless overnight funds in excess are fully
collateralized. Deposits by the Wauwatosa School District with institutions outside of the State of
Wisconsin are prohibited.
6. Securities of an open-end management investment company or investment trust, if the investment
company or investment trust does not charge a sales load, if the investment company or investment trust
is registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 to 80a-64, and if the portfolio of
the investment company or investment trust is limited to the following:
a. Bonds and securities issued by the Federal government or a commission, board or other instrumentality
of the Federal government.
b. Bonds that are guaranteed as to principal and interest by the Federal government or a commission,
board or other instrumentality of the Federal government.
c. Repurchase agreements that are fully collateralized by bonds or securities under subd. 5 a. or b.
B. Eligible Amounts.
The Director of Business Services shall ensure amounts on deposit do not exceed collateralized amounts
guaranteed by the financial institution, consistent with this written policy.
Cash Liquidity
The Wauwatosa School District investments shall be managed to maintain liquidity for meeting the District’s need for cash and to limit potential market risks. Investments will be made through financial institutions offering the
highest yielding rates, consistent with this written policy.
25.50, 66.0603, 67.10, Wis. Stats.
Approved/Adopted: July 13, 2009 |
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