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Investment Policy Kane County, Illinois Investment Policy It is always prudent for any
public unit to have an Investment Policy in place for the purpose of safe guarding
funds, equitably distributing the investments and maximizing income of the
governmental unit. The following policy is adopted for the Kane County
Government, hereby referred to as Kane County. a)
Scope of Investment Policy This Investment Policy applies
to the investment activities of all funds under the jurisdiction of Kane
County. This Investment Policy will also apply to any new funds or temporary
funds placed under the jurisdiction of Kane County. The Illinois Compiled
Statues will take precedence except where this policy is more restrictive
wherein this policy will take precedence. b)
Availability A copy of this policy shall
be made available to the public, upon request, in the Treasurer's office
during normal business hours. The county board on an annual basis shall
review this investment policy. c)
Objectives The Purpose of this
Investment Policy of Kane County is to establish cash management and
investment guidelines for the stewardship of public funds under the
jurisdiction of Kane County. The specific objectives of this investment
policy will be as follows: 1. Safety of principal. 2. Diversity of investments
to avoid unreasonable risks. 3. The portfolio shall remain
sufficiently liquid to meet all operating costs, which may be reasonably
anticipated. 4. The highest interest rate
available will always be the objective of this policy combined with safety of
principal, which is left to the discretion of the Kane County Treasurer,
which includes whether or not Kane County will require collateralization of
any deposits. 5. In maintaining its
investment portfolio, Kane County shall avoid any transaction that might
impair public confidence in the Kane County Government. 6. Kane County may give
consideration to the financial institutions positive community involvement
when consideration is given to the financial institution to be used as a
depository. 7. All funds will be invested
for a period of one day or longer, depending on the requirement for the
disbursement of funds. 8. All funds shall be
deposited within two working days at prevailing rates or better in accordance
with Illinois Compiled Statues. d)
Responsibility All investment of funds under
the control of the Kane County Treasurer is the direct responsibility of the
Kane County Treasurer. The Kane County Treasurer shall be responsible for all
transactions and shall establish a system of controls of the activities of
all subordinates who are directly involved in the assistance of such
investment activities. e) Prudence The standard of prudence to
be used by investment officials shall be the "prudent person,” and shall
be applied in the context of managing an overall portfolio. Investment
officers acting in accordance with written procedures and exercising due diligence
shall be relieved of personal responsibility for any individual securities
credit risk or market price changes, provided that deviations from
expectation are reported in a timely fashion to the county board, and
appropriate action is taken to control adverse developments. f)
Accounting The Kane County Governmental
Units shall record all investment transactions. A report will be generated,
at least monthly, listing all active investments. Information regarding
securities in portfolio by class or type, book value, interest earned and
market value as of report date. This report will be made available to the
Kane County Board. g)
Availability of Funds The Treasurer has the option
of requiring a three-business-day hold on disbursement requests of one hundred
thousand dollars or more. h)
Financial Institutions The Kane County Treasurer
will have the sole responsibility to select which financial institutions will
be depositories for Kane County Treasurer funds. Kane County will take into
consideration security, size, location, condition, service, fees and may also
give consideration to the community relation's involvement of the financial
institution when choosing a financial institution. At no time will Kane County's
uncollateralized investment, in any fund, exceed 75% of the financial
institution's capital and surplus. 1. All financial institutions
having any type of financial relationships: deposits, investment, loans, etc.
are required to provide a complete and current "Call Report"
required by their appropriate regulatory authority each calendar year within
30 days of the "Call" request date. 2. All governmental agencies
listed below are required to provide to the Finance Director a list of all
employees with signature authority and also provide a list of all bank
accounts open on an annual basis. 3. All financial institutions
accepting funds from the following governmental agencies are required to
notify the Finance Director anytime an account is opened or closed by said
agency: Kane County Adult Corrections
Complex, Kane County Animal Control, Aurora Election Commission, Kane County
Board of Review, All Kane County Boards and Commissions, Kane County Building
and Zoning Commission, Kane County Central Services, Kane County Community
Services Division, Clerk of the Circuit Court, Kane County Coroner, Kane
County Auditor, Kane County Clerk, Kane County Health Department, Kane County
Historic Preservation Commission, Kane County Human Resources Department,
Kane County Information Technologies Department, Kane County Jury Commission,
Kane County Department of Employment and Education (KCDEE), Law Library, Kane
County Liquor Commission, Kane County Office of Emergency Management, Kane
County Public Defenders Office, Kane County
Recorder, Kane County Regional Planning Commission, Kane County Sheriff, Kane
County States Attorney, Kane County Transportation Division, Kane County
Veterans Assistance Commission, Water Resource and Platting Division, Zoning
Board of Appeals. Failure to comply may
result in exclusion from participation in the Treasurer's investment and
collection programs. All information supplied to the Treasurer will be
forwarded (annually) to the internal/external Auditors and the Finance
Director. i) Investment Vehicles Kane County will use
investments approved for governmental units as set forth in the most current
issue of the Illinois Compiled Statues 5/3-11006. The Kane County Board, when
requested by the County Treasurer, shall designate one or more banks or other
financial institutions in which the funds and other public moneys in the
custody of the county treasurer may be kept and when a bank or other
financial institution has been designated as a depository it shall continue
as such until 10 days have elapsed after a new depository is designated and
has qualified by furnishing the statements of resources and liabilities as is
required by this Section. When a new depository is designated, the county
board shall notify the sureties of the county treasurer of that fact, in
writing, at least 5 days before the transfer of funds. The County Treasurer
shall be discharged from responsibility for all funds and moneys, which he
deposits in a depository so designated while such funds and moneys are so
deposited. j)
Collateral It shall be the discretion of
the Kane County Treasurer to determine whether or not collateral will be
required of financial institutions receiving funds from the Kane County
Treasurer. At all times the Kane County Treasurer will require that deposits
in excess of 25% of the capital and surplus of a financial institution will
be collateralized. The Kane County Treasurer may request collateral for any
part of deposits in financial institutions when the Kane County Treasurer
determines it to be in the best interests of safeguarding the funds on
deposit. It shall be noted that in the normal course of operations there may
be temporary fluctuations in the fund balance to collateral ratio. Due to
this, funds may not have 100% collateralization 100% of the time. It shall be
the intent of the Treasurer not to allow a collateral shortage to exceed 30
days for any one account. When
collateral is required, 100% of the deposit will be required. Only the
following collateral will be accepted: U. S. Government direct
securities Obligations of Federal
Agencies Obligations of Federal
Instrumentalities Obligations of the State of
Illinois Obligations of the County of
Kane Obligations of municipalities
located within the County of Kane, subject to acceptance by
the Kane County Treasurer Acceptable collateral as
identified in the Illinois Compiled Statues for use by the
Treasurer of the State of Illinois. Investments shall be made
with judgment and care, under circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in the management of their
affairs, not for speculation, but for investment, considering the probable
safety of their capital as well as the possible income to be derived. The above standard is
established as the standard for professional responsibility and shall be
applied in the context of managing Kane County's portfolio. Pursuant to the
Public Funds Investment Act at 30 Illinois Compiled Statues 235/2.5 and other
provisions included in that Act, along with all other Statues and
Constitutional provisions regarding conflicts of interest and ethical
considerations. k) Security
Controls Only
the Kane County Treasurer is authorized to establish financial accounts for
the office of Kane County Treasurer. All other offices must seek the approval
of the County Board, unless otherwise prescribed by law. At all times either
the Kane County Treasurer, singly or jointly with the County Clerk are
authorized to sign on financial accounts of Kane County, unless otherwise
prescribed by law. David J. Rickert, CPA Last
Update 12-10-2014 |