Ranger College Investment Policy

 

POLICY

Ranger College will invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investments of public funds.

SCOPE

The investment policy applies to all financial assets of Ranger College.  The funds are accounted for in Ranger College's Annual Financial Report and include the following funds:

PRUDENCE

Investments will be made with judgment and care.  Investments will be made considering the safety of capital a well as income, not for speculation.  The standard of prudence to be used by investment officials will be the "prudent person" standard and will be applied in the context of managing an overall portfolio.  The investment offices acting in accordance with the investment policy and exercising due diligence will be relieved of personal responsibility for an individual security's credit risk or market price changes, provided changes are reported in a timely manner and appropriate action is taken to control adverse developments.

OBJECTIVE

The safety of principal is the most important objective of the investment program.  Ranger College's investment portfolio will remain sufficiently liquid to enable the college to meet all operating requirements which might be reasonably anticipated.  The college's investment portfolio will be designed with the objective of attaining a rate of return to meet budgetary needs.

DELEGATION OF AUTHORITY

Management responsibility for the investment program is hereby delegated to the Investment Officer, who will establish procedures for the investment program consistent with the investment policy.  No person may engage in an investment transaction except as provided under terms of this policy.

ETHICS AND CONFLICTS OF INTEREST

Officers and employees involved in the investment process will not be involved in personal business activity that could conflict with proper execution of the investment program.  Investment officials will disclose any material financial interests in financial institutions that conduct business with the college.

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS

The investment officer will maintain a list of financial institutions authorized to provide investment services.  All deposits will be made in a qualified public depository as established by state law.  A current audited financial statement is required to be on file for each financial institution in which the college invests.

AUTHORIZED INVESTMENTS

Ranger College is empowered by statute to invest in the following:

Ranger College will invest only in Certificates of Deposit.  Ranger College may hold investments that were authorized investments at the time of purchase or receipt.

COLLATERALIZATION

Collateralization will be required on certificates of deposit.  The collateralization level will be a minimum of 100% of market value of principal and accrued interest.  Collateral will always be held by an independent third party with whom the entity has a current custodial agreement.  The right of collateral substitution is granted.

MATURITIES

Ranger College will attempt to match its investments with anticipated cash flow requirements.  Unless matched to a specific cash flow, the college will not directly invest in securities maturing more than one year from the date of purchase.

Reserve funds may be invested in securities exceeding one year of maturity if such investments are made to coincide as nearly as practicable with the expected use of the funds.

INTERNAL CONTROL

The Investment Officer will establish an annual process of independent review by an external auditor.  The review will provide internal control by assuring compliance with policies and procedures.

MARKET YIELD

The college's investment strategy is passive.  With this strategy, the comparison used to determine if market yields are being achieved will be the one year U.S. Treasury Bill.

REPORTING

The Investment Officer will provide investment reports to the college president and Board of Regents quarterly.  Reports will also be made to any state agencies or offices as mandated by state requirements.

INVESTMENT POLICY ADOPTION

The investment policy will be adopted by the Board of Regents by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and investment strategies and that the written investment so adopted will record any changes made to either the investment policy or investment strategies.

INVESTMENT POLICY REAFFIRMATION

The Board of Regents of Ranger College reaffirmed the College's Investment Policy, with no changes, at the March 30, 2004 Board of Regents meeting.