6.20INVESTMENT POLICY

WHEREAS, Ozarks Technical Community College is the custodian of public monies and College officials wish to exercise good judgment and prudence in investing these funds.

NOW THEREFORE, BE IT RESOLVED, by the Board of Trustees of Ozarks Technical Community College of Springfield, Missouri, that the following investment policy be adopted, to-wit:

  1. Policy:

It is the policy of the Treasurer of Ozarks Technical Community College to invest public funds in a manner which will provide maximum security and investment returns while meeting the daily cash flow demands of the College and conforming to all state and local statutes governing the investment of public funds.

B.Scope:

This investment policy applies to all financial assets of Ozarks Technical Community College. Any and all funds currently existing or anticipated are included unless specifically excluded by the College officials or set aside in a special escrow account.

  1. Prudence:

Investments of all College funds shall by controlled by the prudent person standard which states: “Investments shall be made with the judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their affairs, not for speculation, but for investment considering the probable safety of their capital as well as the income to be derived.”

  1. Objective:

The primary objectives, in priority order, of Ozarks Technical Community College investment activities shall be:

D.1Safety: Safety of principal is the foremost objective of the investment program. Investments of Ozarks Technical Community College shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.

D.2Liquidity: Ozarks Technical Community College’s investment portfolio will remain sufficiently liquid to enable the College to meet all operating requirements on a timely and adequate basis for payments of general expenditures and capital outlay projects, both short and long term, in an expeditious manner.

D.3Return on Investment: Ozarks Technical Community College’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the College’s investment risk constraints and the cash flow characteristics of the portfolio.

  1. Ethics and Conflicts of Interest:

College officials involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions, and shall disclose annually to the Board of Trustees any financial interest or transaction during the preceding year with any institution or entity with which the College does business or in which the College has a pecuniary interest through its investment portfolio.

  1. Delegation of Authority:

Authority to manage Ozarks Technical Community College’s Investment program is derived from Article 1 Section 1.03D of the Policies and Procedures Manual of Ozarks Technical Community College. The Treasurer may delegate authority of investment transactions to include the Vice Chancellor for Finance, Director of Finance, and any other College official deemed appropriate.

  1. Authorized and Suitable Investments and Institutions:

G.1The College may invest in Certificates of Deposit, U. S. Treasury Bills, and other obligations of the U. S. Government, U. S. Government Agency, or a corporation guaranteed by the full faith and credit of the U. S. Government.

G.2Certificates of deposit, savings accounts or interest bearing time deposits when such funds are held in United States banks, state banks, savings and loan associations operating under Chapter 369 RSMo., or savings and loan associations authorized by the Unites States government, so long as such deposits, savings accounts, and interest bearing deposits are secured by one or more of the types of securities described in subparagraphs G.1 or G.2 or this Section.

  1. Collateral:

Collateral shall be required on all qualified investments. In order to anticipate market changes and provide a level of security for all funds, the collateral value of the pledged security shall be at least 100% of the actual amount of funds invested with the depository, less the amount, if any, insured by FDIC.

This collateral shall be limited to bonds, bills, notes, debentures or other obligations guaranteed as to payment of principal and interest by the government of the United States or any agency or instrumentality thereof, and the State of Missouri, (RSMo 30.270, 110.010, and 110.020).

  1. Safekeeping and Custody:

All security transactions entered into by Ozarks Technical Community College shall be conducted on a delivery-versus-payment (DVP) basis. Securities held by a third party custodian shall be evidenced by safekeeping receipts supplied to and retained by the College.

  1. Maximum Maturities:

To the extent possible, Ozarks Technical Community College will attempt to match its investments with anticipated cash flow requirements. Unless matched to specific cash flows, the College will not directly invest in securities maturing more than two years from the date of purchase.

Reserve funds may be invested in securities exceeding two years if the maturity of such investments coincides as nearly as practicable with the expected use of the funds.

  1. Reporting:

The College officials shall submit monthly investment reports describing the portfolio in terms of investment securities, maturities, rates, characteristics and other features.

  1. Policy Review:

The policy shall be reviewed on an annual basis and any modification made thereto must be approved by the entire Board of Trustees.

4/10/99

Revised 4/13/06

Revised 4/19/10