Public Funds Investment Policy

View Board-Approved Policy (PDF)

This webpage has been formatted for easier online reading. The PDF is the official policy document approved by the Board of Trustees.

Introduction

The Hudson Library and Historical Society’s Public Funds Investment Policy is developed and implemented in accordance with Senate Bill 81 and Section 135, “Uniform Depository Act,” of
the Ohio Revised Code. This Investment Policy applies to all funds that the library has received, and is held accountable for, except the funds kept in Special Funds, which are governed by the Special Funds (or Private Funds) Policy.

Investment Authority

The Investing Authority will be the fiscal officer, deputy fiscal officer or such officer or employee of the library as the board shall designate. The Investing Authority shall act only in accordance with the wishes of the board as described in this policy.

Review

This policy will be reviewed annually to ensure that it meets the library’s needs and to ensure there are no changes to the Ohio Revised Code. Any state of Ohio legislative action that further restricts or permits allowable maturities, investment type or percentage allocations will, upon effectiveness, be incorporated into the Hudson Library and Historical Society’s Public Funds Investment Policy and shall supersede any and all previous applicable language.

Objectives

The following deposit/investment objectives will be applied in the management of funds of the Hudson Library and Historical Society.

• The deposit/investment program will preserve capital and the protection of investment principal within certain risk parameters.
• The deposit/investment program will maintain sufficient liquidity to meet the fiscal operating requirements of the Library.
• The deposit/investment program will strive to attain the best total return on funds as is reasonable and prudently achievable within the safety parameters established in this policy.
• Investments shall be made in good faith, in a manner reasonable believed to be in or not opposed to the best interests of the library, and with the exercise of that degree of care that an ordinarily prudent person in a like position would use under similar circumstances.
• The Investing Authority shall act as the custodian of the public trust in all deposit/investment activities. The Investing Authority shall recognize that the deposits shall be managed with a degree of professionalism that is worthy of public trust.

Authorized Investments

The Investing Authority may deposit and/or invest in the following instruments at a price not to
exceed the fair market value of the specific investment instrument.

• Bills, notes, bonds, or other obligations of, or guaranteed by, the United States, or those for which the faith of the United States is pledged for payment of principal and interest thereon.
• Bills, notes, bonds or other obligations or securities issued by any U.S. Government Agency, whether or not guaranteed by the United States.
• Certificates of deposit, including, but not limited to passbook accounts, in any eligible institution insured by the Federal Deposit Insurance Corporation and having an office located within the territorial limits of the United States.
• Checking and saving accounts in any eligible institution insured by the Federal Deposit Insurance Corporation and having an office located within the territorial limits of the state of Ohio.
• Bonds and other obligations of the state of Ohio that are rated A or better or SP-1 or better by Standard & Poor’s, or its equivalent.
• No-load money market mutual funds consisting exclusively of Treasury or Federal Agency obligations and Repurchase Agreements secured by Treasury, or Federal Agency obligations made through eligible institutions.
• Repurchase Agreements collateralized as required by the Ohio Revised Code with Treasury or Federal Agency obligations and made through eligible institutions and for no longer than thirty days.
• STAR Ohio, the State Treasury Asset Reserve of Ohio.

Maturity Guidelines

An investment must mature within five (5) years from the date of purchase unless matched to a specific obligation or debt of the library and must be purchased with the expectation that it will be held to maturity.

Authorized Financial Institutions and Brokers/Dealers

The Investing Authority shall deal only with brokers or dealers who are registered as such with the Securities and Exchange Commission and who are licensed as a dealer with the Ohio Division of Securities and should also be members of the National Association of Securities Dealers, Inc. Any financial institution located within Ohio as defined by ORC 135.03 is eligible to serve as an approved depository and/or investment provider contingent upon having an active executed Depository Agreement on file with the Investing Authority. Four times per year, a depository is required to supply the Investment Authority the amount of public monies deposited by the Investment Authority and secured and the total value based on the amounts above of the pool of securities pledged to secure public monies held by the depository, including those deposits by the library.

Certification by All Parties

The Investing Authority shall distribute a copy of this Public Funds Investment Policy and any revisions or updated versions to each of the eligible financial institutions and brokers and dealers desiring to do business with the library. It shall be the responsibility of the designated officer of each eligible financial institution, broker, and dealer to certify that they have reviewed this policy and agree to comply with all applicable Ohio and Federal laws. Furthermore, the aforementioned officer shall agree to disclose any potential conflicts or risks to library funds that could arise out of financial transactions between the financial institutions, brokers, and dealers and the library.

Filing Requirements

This Investment Policy, along with any future revisions or updates, will be filed with the Auditor of State, Attention: Clerk of the Bureau, P.O. Box 1140, Columbus, OH 43216-1140, in accordance with Ohio law.