DFA
Investment
Policy
The Pembroke School Board authorizes the School District
Treasurer working in conjunction with the chairman of Pembroke School Board and
his/her designee and pursuant to RSA 197:23-a to invest the funds of the
district subject to the following objectives and standards of care.
OBJECTIVES
The three objectives, in priority order, of investment
activities shall be safety, liquidity, and yield.
1. Safety of principal is the
foremost objective in this policy. Investments
shall be undertaken in a manner that seeks to ensure the preservation of
capital by mitigating credit and interest rate risk. This will be accomplished by limiting the
type of the investments and institutions to those stipulated by statute and fully
covered by FDIC insurance or collateral approved pursuant to RSA 366:57.
2. Liquidity of the investment
portfolio shall remain sufficient to meet all operating requirements that may
be reasonably anticipated.
3. Yield: The investment portfolio shall be designed
with the objective of attaining a market rate of return throughout budgetary
and economic cycles, taking into account the investment risk constraints and
liquidity needs. Return on investment is
of secondary importance compared to the safety and liquidity objectives
described above.
STANDARDS OF CARE
1. Prudence: The standard of prudence to be used by the
Pembroke School District Treasurer and Chairman of Board or his/her designee
involved in the investment process shall be the “prudent person” standard and
shall be applied in the context of managing an overall portfolio. They are directed to use the Government
Finance Officers Association Recommended Practices and Policy Statements
Related to Cash Management as a guide to the prudent investment of public
funds. The Government Finance Officers
Association Practices and Policy statement related to cash management and is
attached as Appendix A.
2. Ethics and conflicts of
interest: The School District Treasurer
and Chairman of School Board or his/her designee involved in the investment
process shall refrain from personal business activity that could conflict with
the proper execution and management of the investment program or that could
impair their ability to make impartial decisions. Employees and Investment officials shall
disclose any material interests in financial institutions with which they
conduct business. They shall further
disclose any personal financial institutions with which they conduct business. They shall
further disclose any personal financial/investment
APPROVED: January,
1999
REAFFIRMED: January,
2000; January, 2001; January, 2002; January, 2003; January, 2004;
January, 2005; January, 2006; January,
2007; January, 2008
positions
that could be related to the performance of the investment portfolio. Employees and officials shall subordinate
their personal investment transactions to those of the
3. Internal Controls: The
Pembroke School District Treasurer in connection with the Superintendent and
business managers of School Administrative Unit #53 shall design and implement
a system of internal controls which shall be documented in writing. The internal controls shall be reviewed and
approved by the School Board.
This investment policy shall
be reviewed annually by the school board.