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INVESTMENT POLICY 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 Kane County Treasurer's office. Scope of Investment Policy This Investment Policy applies to the investment activities of all funds under the jurisdiction of the Kane County Treasurer. This Investment Policy will also apply to any new funds or temporary funds placed under the jurisdiction of the Kane County Treasurer. The Illinois Compiled Statutes will take precedence except where this policy is more restrictive wherein this policy will take precedence. Availability A copy of this policy shall be made available to the public, upon request, in the Treasurer's office during normal business hours. The county board on an annual basis shall review this investment policy. Objectives The Purpose of this Investment Policy of the Kane County Treasurer is to establish cash management and investment guidelines for the stewardship of public funds under the jurisdiction of the Kane County Treasurer. The specific objectives of this investment policy will be as follows:
Responsibility All investment of funds under the control of the Kane County Treasurer is the direct responsibility of the Kane County Treasurer. The Kane 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. Prudence The standard of prudence to be used by investment officials shall be the "prudent person", and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for any individual securities credit risk or market price changes, provided that deviations from expectation are reported in a timely fashion, and appropriate action is taken to control adverse developments. Accounting The Kane County Treasurer or the Kane County Treasurer's staff shall record all investment transactions. A report will be generated, at least monthly, listing all active investments. Information regarding securities in portfolio by class or type, book value, interest earned and market value as of report date. This report will be made available to the Kane County Board and Kane County Treasurer. Availability of Funds The Treasurer has the option of requiring a three-business-day hold on disbursement requests of one million dollars or more. Financial Institutions The Kane County Treasurer will have the sole responsibility to select which financial institutions will be depositories for Kane County Treasurer funds. The Kane County Treasurer will take into consideration security, size, location, condition, service, fees and may also give consideration to the community relation's involvement of the financial institution when choosing a financial institution. At no time will the Kane County Treasurer's uncollateralized investment exceed 75% of the financial institutions capital and surplus.
· Kane County Adult Corrections Complex, Kane County
Animal Control, Aurora Election Commission, Kane County Board of Review, All
Kane County Boards and Commissions, Kane County Building and Failure to comply may result in exclusion from participation in the Treasurer's investment and collection programs. All information supplied to the Treasurer will be forwarded (annually) to the internal/external Auditors and the Finance Director. Investment Vehicles The
Kane County Treasurer will use investments approved for governmental units as
set forth in the most current issue of the Illinois Compiled Statues 5/ Collateral It shall be the discretion of the Kane County Treasurer to determine whether or not collateral will be required of financial institutions receiving funds from the Kane County Treasurer. At all times the Kane County Treasurer will require that deposits in excess of 25% of the capital and surplus of a financial institution will be collateralized. The Kane County Treasurer may request collateral for any part of deposits in financial institutions when the Kane County Treasurer determines it to be in the best interests of safeguarding the funds on deposit. It should be noted that the current policy of the Treasurer is to fully collateralize all investment accounts. When
collateral is required, U. S. Government direct securities Obligations of Federal Agencies Obligations of Federal Instrumentalities Obligations
of the State of Obligations
of the Obligations of municipalities located within the County of Kane, subject to acceptance by the Kane County Treasurer Acceptable collateral as identified in the Illinois Compiled Statues
for use by the Treasurer of the State of Investments shall be made with judgement and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their affairs, not for speculation, 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 Kane County Treasurer's
portfolio. Pursuant to the Public Funds Investment Act at Security Controls Only the Kane County Treasurer is authorized to establish financial accounts for the office of Kane County Treasurer. At all times either the Kane County Treasurer, singly or signatories as designated by the Kane County Treasurer should be authorized to sign on financial accounts of the office of the Kane County Treasurer. David
J. Rickert, |