DFA - LRSD Board Policy | www.lrsd.org

DFA - LRSD Board Policy

Published by jackbgarvey on Tue, 07/09/2013 - 11:05

LITTLE ROCK SCHOOL DISTRICT - NEPN CODE:  DFA

 

REVENUES FROM INVESTMENTS/USE OF SURPLUS FUNDS

The Board of Education supports and authorizes a safe and sound investment program.  Such a program is viewed as a critical ingredient of sound fiscal management, the purpose of which is to secure a maximum yield of interest revenues to supplement other District revenues for the support of the educational program of the District.

The Board of Education establishes that:

  • all excess funds should be held in interest-bearing accounts or investments to earn the maximum return possible on the funds available for investment while complying with state statutes and District policy,
  • safety of funds should be a first consideration,
  • when financially effective, excess funds should be deposited in financial institutions located within the District and
  • for all investments placed, a log of interest quotes will be maintained by Financial Services.  The successful bidder will be required to place specific securities in escrow for the purpose of insuring all money over $100,000.  The market value of securities pledged will be sufficient to cover amounts on deposit in excess of $100,000 at all times.  The market value of pledged securities must be disclosed at least quarterly.  The pledging agreement will be in writing.
  • the market value of all investments will be monitored and appropriate actions taken if market drops below cost.
  • all funds over $100,000 per bank will be collateralized by pledge of specific securities by that financial institution.
  • investment practices will be in compliance with state and federal law.

 

 

Adopted:  March 22, 2001

Legal References:  A.C.A. 6-20-222, A.C.A. 19-1-504 and A.C.A. 19-8-104