Administrative Policy

Section 5: Investments

This document, in conjunction with the Ohio Revised Code, as amended, will govern the investment activities of the Chillicothe & Ross County Public Library. It will be reviewed periodically for compliance and to assure the flexibility necessary to effectively manage the monies of the Chillicothe & Ross County Public Library.

Policy Statement and Scope of Policy:  It is the policy of the Chillicothe & Ross County Public Library to invest public funds in a manner which will prioritize the maximum security of those funds. Meeting the cash flow demands of the library and striving to attain high investment returns while conforming to the Ohio Revised Code, are also of primary importance.

This Investment Policy applies to all active, interim and inactive funds that the library has received, and is held accountable for, from all public and private sources.

Investment Objectives:  The primary objectives of the investment activities of the Chillicothe & Ross County Public Library are:

• Safety: Safety of principal is the foremost objective of the investment program. Investments of the library shall be undertaken in a manner that ensures the preservation of capital in the overall portfolio. At no time will the safety of the portfolio's principal be impaired or jeopardized. Safety is defined as the certainty of receiving full par value plus accrued interest, at the securities legal final maturity.
• Liquidity: The library's investment portfolio will remain sufficiently liquid to enable the library to meet all operating requirements. Portfolio liquidity is defined as the ability to sell a security on a short notice near the par value of the security.
• Return on Investments: The library's investment portfolio shall be structured with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the library's investment risk constraints and the cash flow characteristics of the portfolio.

Delegation of Authority:  Management responsibility for the investment program is delegated to the Chief Fiscal Officer or subsequent designee of the Board, who shall be responsible for the implementation of the investment program and the establishment of investment procedures consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Chief Fiscal Officer.

Ethics and Conflicts of Interest:  Employees 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.

Authorized Financial Institutions  and Brokers/Dealers:  Any financial institution located within the State of 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 library. At least quarterly, a depository is required to supply the Chief Fiscal Officer the amount of public monies deposited by the Library 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.

The Chief Fiscal Officer 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 as defined in ORC 135.03. Such brokers or dealers should also be members of the National Association of Securities Dealers, Inc. Securities brokers and dealers shall be utilized only after an analysis performed by the Chief Fiscal Officer has revealed that the broker or dealer is adequately financed to conduct business with the library.

Authorized Investments:  The Chief Fiscal Officer is authorized to make investments of available monies from the funds of the Library in securities authorized in ORC 135.14, as amended.

Maximum Maturities:  To the extent possible, the library will attempt to match its investments with the anticipated cash flow requirements. The Chief Fiscal Officer will not invest in securities exceeding 5 years in maturity. Any investment made must be entered into with a reasonable expectation to be held to maturity unless defined opportunities exist to better achieve deposit/investment objectives denoted in this Investment Policy.

Internal Control and Compliance:  The Chief Fiscal Officer shall establish an annual review process of investment policies and procedures. This review will include an audit every 2 years conducted by the Auditor of State, as well as internal review for compliance with all investment policies and procedures.

Certification by All Parties, Filing, and Acknowledgement:  The Chief Fiscal Officer shall distribute a copy of this 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 Investment Policy and agree to comply with all applicable State of 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.

This Investment Policy, along with any future revisions or updates, will be filed with the Auditor of State in accordance with State of Ohio law.