CITYOFMADISONSOUTHDAKOTAINVESTMENTPOLICY.docVIP

Advanced Investment Policy The following Advanced Policy is for those entities that invest directly in?securities (US Treasuries,?GSEs, etc)?in addition to deposits and SD FIT. This comprehensive policy addresses credit, interest rate, concentration and custodial risks as required by GASB 40 as well as diversification, safekeeping, and custody. There are also Excel chart templates which can be downloaded from the website to assist with reporting. Just plug in your numbers and make a few minor adjustments to print charts for your governing board. The Basic Investment Policy is for those entities that only use deposits (interest bearing checking accounts, savings accounts, and CDs) and SD FIT. Please review the sample even if you have a policy, you might find new information to add to an existing policy. Is an investment policy necessary? Yes. South Dakota Codified Law does require local governments to adopt an investment policy: SDCL 4-5-8. Investment policies for local funds determined by governing board. Investments of public funds as defined in §?4-5-5 shall be made only after the adoption of a proper resolution by the governing board of such county, municipality, township, or school district. Such resolution shall state the investment policies to be followed by the treasurer thereof. In addition to being required by law, an investment policy is also an integral part of the audit process. By naming depositories, auditors know where to confirm bank balances. A policy also helps auditors run compliance tests, such as, interest earned being credited properly and that investments being purchased are authorized. Where to start This sample provides a comprehensive policy that can be customized by the governing board. As with any policy, you should consider consulting with legal counsel before adopting the policy. Every entity has its own specific needs that should be reflected in the adopted policy. There are no rules or regulations that specify what is to be included