Feb 21, 2024
BS5711 - Investments
Section: BUSINESS SERVICES PROCEDURES
SubSection: BUSINESS OFFICE
Master List Section: Business Service
- Institutional Regulation
Investments of idle funds shall be limited to DMACC district financial institutions providing collateralization as required by state law, or in U.S. Government securities. The rate of return shall be secondary to the security of the investment.
- The Controller shall obtain and analyze the most recent regulatory statements or audited, annual financial statement of each financial institution in which investments are authorized.
- The Controller shall determine that each financial institution meets the following minimum financial qualifications:
- Investments shall be made only in financial institutions within the DMACC district, or in U.S. Government securities.
- Maximum cumulative investment in any single financial institution shall not exceed $10,000,000.
- DMACC shall not invest in trusts, except for the non-taxable Iowa New Jobs Training Projects funds invested in the Iowa Schools Joint Investment Trust (ISJIT) handled by Norwest Bank, Iowa.
- Public funds deposits in banks are now secured by collateral equal to ten percent of the average uninsured public funds deposits of a bank in the prior year, by the bank sinking fund, and by the Treasurer of State’s ability to assess all banks in the state accepting uninsured public funds to cover the loss of public funds in a failed bank. Accordingly, we shall continue to allow deposits of public funds in banks to be secured either by the pledge of securities pursuant to a security and custodial agreement to which the Treasurer of State is a party or by a letter of credit issued by the Federal Home Loan Bank of Des Moines.
- All securities shall be held in safekeeping in the financial institutions where investments are made and safekeeping receipts provided to the College.
- The Controller shall monitor DMACC’s cash requirements on a daily basis and shall initiate investments in accordance with the guidelines outlined above.
- On a weekly basis, the Controller shall provide to the College Treasurer and Vice President, Business Services a listing of investments by financial institution name and location, type, term and amount. A similar listing shall be included with the monthly financial report prepared for the DMACC Board of Directors.
Adopted: July 1, 2000
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