It is the policy of the College to invest surplus funds in eligible investments as defined by RCW 39.60.050.
The purpose of this policy is to ensure appropriate investment of surplus funds.
To Whom Does This Policy Apply
This policy applies to all employees at the College.
Fiscal Affairs Manual 40.10.30
Short Term Investments - investments of surplus balances in short-term securities and other investments that can be converted to known amounts of cash without prior notice or penalty. Short-term investments also include the portion of long-term investment that will mature within one year.
Non-Current Investments - investments with a maturity date of one year or greater.
The President delegates to the Vice President for Administrative Services the authority to purchase, exchange, or sell investments and securities as authorized by RCW 39.60.050.
Acceptable Investments are prescribed by RCW 39.60.050 and include notes, bonds, or debentures of savings and loan associations, banks, mutual savings banks, savings and loan service corporations operating with approval of the federal home loan bank, and corporate mortgage companies, provided that:
- The notes, bonds or debentures are rated not less than “A” by a nationally recognized rating agency, or are insured or guaranteed by an agency of the federal government or by private insurer authorized to do business in the state and
- The notes, bonds and debentures insured or guaranteed by a private insurer shall also be backed by a pool of mortgages equal to the amount of the notes, bonds or debentures.
The Local Government Investment Pool (LGIP) is a voluntary investment vehicle operated by the State Treasurer. The LGIP provides a safe, competitive investment option for local governments that allows an entity to utilize the LGIP’s resources to safely invest while achieving a competitive rate of return. Refer to http://www.wa.gov/tre/lgip.htm.
To ensure internal control, custody of securities is to be separate from the Vice President for Administrative Services. Securities maintained by the agency shall be kept in a safe deposit box or locked vault with no one person having complete control over the combination or keys. Separation of duties is also achieved if securities are maintained by an outside agent.
Subsidiary ledgers are to be maintained to record the details of each investment. Subsidiary ledgers are to be balanced to the general ledger at least monthly and at fiscal year end.
A schedule of maturities and interest payment dates is to be maintained and closely monitored to assure that all income due has been received.
Periodic reviews of the investments are to be made and documented by Director of Financial Services.
Upon request of the Board, the President shall ensure that there be a report of investments.