To:CCRESA Board of Directors

From:Neil Pedersen, Executive Director
Dana Stutzman, Office Manager

CC:

Date:11/16/2018

Re:FDIC Investing

CCRESAInvestment Policy

The CCRESA’s fund balance shall be invested with the objective of preserving its assets to cover operating expenses and realizing earnings in a way that allows for immediate liquidity to meet the CCRESA’s ongoing programmatic and operational needs. The fund balance may be maintained in the checking account that the CCRESA uses for day-to-day operations and may be invested in other cash-equivalent investments, such as savings accounts, money market accounts, certificates of deposit with maturities appropriate for expected needs, Treasury bills and other investments that are relatively easy to liquidate. The Executive Director and Treasurer will annually review the allocation of the CCRESA’s assets between the checking account and its other cash-equivalent investments, determining the appropriate allocation based on the CCRESA’s cash-flow needs, and report such allocation to the Board for approval.

After extensive research, the CCRESA proposes investing our fund balance where we can make a few extra dollars and be protected by the FDIC limit of $250,000.Currently, BB&T pays us virtually no interest on our money market (.050%) and checking accounts (0%), and its CD rate is not competitive with online banks. We would like to invest $100,000 in a Business Savings Account with Capital One 360 and purchase a 3 Year CD for $200,000 from First Internet Bank. Details for each proposed investment are laid out below:

Capital One 360 Business Savings Account

  • 24/7 Access to the account online. Account access for up to 3 authorized signers.
  • Deposits are FDIC insured up to $250,000
  • Open the account prior to September 30th, 2015 to earn 1.00% APY for the first 12 months. After 12 months earn 0.4% APY.
  • Money is accessible through the linked checking account. At your request, money is transferred electronically between your Business Savings Account and your business checking account. It takes 2 business days to transfer money.
  • Online application to open account.

Required Documents for New Account Opening

  • Non-Profit Resolution: Document provided by Capital One 360 that needs signatures of those authorized to conduct banking activities for the business (up to 3) and signatures of a quorumof Directors.
  • Proof of Existence Document (e.g. IRS Determination Letter or Copy of Articles of Incorporation)

First Internet Bank 3 Year CD

  • Interest rate of 1.5%, APY 1.51%
  • Early withdrawal penalty is 360 days interest
  • Access account information through online banking, mobile banking and telephone banking. First IB does not issue monthly or annual statements for CD accounts.
  • Online application to open account

Required Documents for New Account Opening

  • 3 of our most recent bank statements
  • Corporate Resolution: Document provided by First Internet Bank that needs signatures of authorized signers and Board adoption noted in the Meeting Minutes. Resolution is to be signed by the CCRESA Board Secretary.

Attachments

  1. Draft Resolution for your consideration as we need a Board decision and vote on this matter during the September 11, 2015 Board Meeting
  2. Capital One 360 Non Profit Resolution Document
  3. First Internet Bank Corporate Resolution Document

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RESOLUTION OF DIRECTORS OF
CENTRAL CAROLINA REGIONAL EDUCATION SERVICE ALLIANCE
REGARDING THE INVESTMENT OF CCRESA FUNDS

WHEREFORE, the directors of the Central Carolina Regional Education Service Alliance, having been informed of the desirability of investing a portion of the fund balance into FDIC insured accounts; and

WHEREFORE, the directors having had an opportunity to review the attached Memo outlining the proposed investments;

RESOLVED THAT, pursuant to the CCRESA Investment Policy, the CCRESA Board of Directors approvedthe Capital One Business 360 non-profit banking resolution to establish a Business SavingsAccount with an initial deposit of $100,000;

RESOLVED FURTHER THAT, pursuant to the CCRESA Investment policy, the CCRESA Board of Directors approved the First Internet Bank Corporate Resolution to establish a 36 month CD for $200,000.

This action is effective this 11th day of September, 2015.

______
Monica Smith-Woofter
Board Secretary

______moved, and ______
seconded.

______Passed ______Failed

______Aye ______Nay ______Abstain



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