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Policy 016

PLATTEKILL PUBLIC LIBRARY 

Investment Policy 

 

Adopted: April 10, 2014
Revised: March 10, 2021 

Policy Statement and Scope   

This document will govern the investment activities of the Plattekill Public Library (the Library). It is the policy of the Library to invest public funds in a manner which will provide the highest return with the maximum security while meeting cash flow demands. All investments will conform to all applicable laws and regulations governing the investment of public funds. 

Investment Policy Adoption

The Library’s Investment Policy shall be adopted by resolution of the Library’s Board of Trustees. The Policy shall be reviewed at least every two years by a Committee of the Board and any modifications made thereto must be approved by the Library’s Board of Trustees.

Investment Objectives  

The primary objectives, in priority order, of the Library's financial investments are: 

Safety of Principal – Safety of principal is the foremost objective of the investment program. All investments shall be undertaken in a manner that seeks first to preserve capital and second to fulfill other investment objectives. 

Liquidity – The Library's investment portfolio will remain sufficiently liquid to enable the Library to meet all operating requirements which might be reasonably anticipated. 

Return on Investments (Yield) – The Library's investments should generate the highest available return without sacrificing the first two objectives outlined above. 

Delegation of Authority   

The Budget and Finance Committee will create the Library Investment Plan for presentation to the Board. The Board will vote to approve or reject the Library Investment Plan. 

Management responsibility for the execution of Library Investment Plan is hereby delegated to the Budget and Finance Committee, which includes the Treasurer, who is the Library's chief fiscal officer. The Treasurer and one other signatories to the Bank Accounts shall be responsible for the implementation of the investment program, the establishment of investment procedures consistent with this Policy, and the engagement of banks and financial institutions for the purpose of executing investments on behalf of the Plattekill Public Library. No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by Board resolution.  

Internal Control 

The Treasurer is responsible for establishing and maintaining internal control to ensure that the assets of the Library are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The internal controls shall address the following points:

Deposit Requirements

Cash derived from tax revenues should be deposited in interest bearing municipal accounts in commercial banks insured by the Federal Deposit Insurance Corporation (FDIC). Any such cash deposited in excess of FDIC insurance coverage shall be collateralized by investment grade securities held by a financial institution under a third-party agreement. See, NY General Municipal Law §10.

Authorized and Suitable Investments   

The following investments are deemed to be suitable for inclusion in the Library's investment program. The Budget and Finance Committee is authorized to invest Library funds in only those investments specifically delineated below. 

All Investments will follow NY State Law on Investment of Funds by a NY State Special District Library.  See, NY General Municipal Law §11.

Prohibited Investments

The Library may not purchase securities on margin or open a securities margin account for the investment of Library funds.

Maturity of Investments   

No investment shall have a maturity date of more than five years from its date of purchase by the Library. To the extent possible and prudent, the Library will attempt to match its investment maturities with anticipated cash flow requirements.  

Gifts and Bequests

Gifts or bequests received in the form of marketable securities must  be promptly liquidated and reinvested in accordance with paragraph III above.

Liability

When investments are made in accordance with this policy, no Library Trustee with investment authority shall be held liable for a loss resulting from default or insolvency of a depository of Library funds.

Ethics and Conflicts of Interest

Those involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the Library investment program, or that could impair their ability to make impartial decisions.

Reporting 

The Treasurer shall provide to the Library's Board of Trustees monthly investment reports which clearly provide the following information regarding the investment portfolio: types of investment, depository institutions, principal balances, rates of return and maturities.