Investment Policy

(Adopted on 8/5/96, reviewed and approved 5/15/00, amended 5/21/01, reviewed and approved 1/22/02, 1/20/03; amended 1/19/04, 1/17/05; reveiwed 1/16/06, 1/15/07, 1/21/08, 1/19/09, 1/18/10, 1/17/11, 1/16/12, amended 1/21/13, reviewed 1/20/14, 1/19/15, 1/18/16, 1/16/17, amended 1/15/18, reviewed 1/21/19, 1/20/20)

It is the policy of the library to invest public funds in a manner that will provide the highest return with the maximum security while meeting cash-flow demands. All investments will conform to applicable laws and regulations governing the investment of public funds.

I. Policy Statement

It is the policy of the library to invest public funds in a manner that will provide the highest return with the maximum security while meeting cash-flow demands. All investments will conform to applicable laws and regulations governing the investment of public funds.

II. Investment Objectives

A. Legality. All investments shall conform to all applicable legal requirements, including but not limited to IC 5-13.
B. Preservation of Capital. All investments shall be undertaken in a manner that seeks to preserve capital. At no time should the safety of the portfolio’s principal investment be impaired or jeopardized.
C. Liquidity. The library’s investment portfolio is to remain sufficiently liquid to enable the library to meet those operating requirements that might be anticipated.
D. Yield/Return on Investments. The library’s investments should generate the highest available return without sacrificing the first three objectives outlined above.

III. Delegation of Authority

Management responsibility for the library’s investment program is hereby delegated to the library director, with assistance from the board treasurer. The library director shall be responsible for the implementation of the investment program and the establishment of investment procedures consistent with the law, the procedures outlined in the State Board of Accounts Accounting and Uniform Compliance Guidelines Manual for Libraries, and this policy. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the library director and the board of trustees.

 

IV. Internal Control

The director, with assistance from the board 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.

 

V. Standard of Prudence

Investments shall be made with judgment and care, under circumstances then prevailing, that 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.

 

VI. Authorized and Suitable Investments

The Delphi Public Library is authorized to invest in:

• Any security backed by the full faith and credit of the United States Treasury or fully guaranteed by the United States; and issued by the United States Treasury, a federal agency, a federal instrumentality, or a federal government sponsored enterprise. (IC 5-13-9-2(a)(1) and IC 5-13-9-2(a)(2))

• Municipal securities issued by an Indiana local governmental entity, a quasi-governmental entity related to the state, or a unit of government, municipal corporation, or special taxing district in Indiana, if the issuer has not defaulted on any of the issuer’s obligations within the twenty (20) year preceding the date of purchase. (IC 5-13-9-2(a)(3))

• Money market mutual funds that are in the form of securities of or interests in an open-end, no load, management-type investment company or investment trust registered under the provisions of the federal Investment Company Act of 1940 as amended. (IC 5-13-9-2.5)

• Agreements commonly known as repurchase or resale agreements with depositories designated by the Department of Local Government Finance as depositories for state investments, so long as the agreements involve the political subdivision’s purchase and guaranteed resale of any interest-bearing obligations issued or fully insured or guaranteed by the United States, a United States government agency, an instrumentality of the United States, or a federal government sponsored enterprise. (IC 5-13-9-3(b))

• Deposit accounts issued or offered by a designated depository. Such accounts include

o Obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Redevelopment or the African Development Bank. (IC 5-13-9-3.3)

o The local government investment pool established by IC 5-13-9-11 and know as TRUSTINdiana.

o Certificates of deposit, transaction accounts, and other interest bearing deposit accounts under the conditions and procedures stated in IC 5-13-9.

 

VII. Prohibited Investments

The library will not purchase securities on margin nor will it open a securities margin account for the investment of library funds. (IC 5-13-9-9)

VIII. Diversification of Investments

The library’s investment portfolio shall be diversified by institution, investment instruments, and by maturity schedule as much as is practical and prudent.

 

IX. Maturity of Investments

Investments must have a stated final maturity of not more than two years after the date of purchase or entry into a repurchase agreement. (IC 5-13-9-5.7)

 

X. Manner of Investing Funds / Interest Earnings

Investments shall be made by fund. All interest devised from the library’s investments shall be receipted into the fund of which they are a part unless required otherwise by IC 5-13-9-6. Interest on investments will not be added automatically to the investment. Instead, interest on investments should be paid to the library at each maturity date and posted to the appropriate fund.

Whenever investments are made in a certificate of deposit, the investing officer will obtain quotes from the library’s designated depositories of the specific rates of interest for the term of the CD. The quotes will be recorded in a memorandum and retained as a public record. The deposit will be placed with the designated depository quoting the highest rate of interest for the selected period. If two depositories tie for the highest quote, the deposit may be placed in any or all of the designated depositories quoting the highest rate at the investing officer's discretion. (IC 5-13-9-4)

XI. Accounting of Investments and Reporting
The treasurer shall maintain an inventory of all obligations and securities and shall provide an annual written report to the library’s board of finance summarizing the library’s investments during the previous calendar year.

XII. Board of Finance

The duly appointed members of the Delphi Public Library Board of Trustees are the fiscal body of the library and thus constitute “The Board of Finance” of the Delphi Public Library. The members serve without compensation.

The Delphi Public Library Board of Finance shall meet annually after the first Monday and on or before the last day of January to elect a president and secretary, review the written report of the library’s investments during the previous calendar year, and review the library’s investment policy.

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