DFA – Investment

The School Board authorizes the School District Treasurer working in conjunction with
the Superintendent 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 or care.
The three objectives 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 applicable law.

2. Liquidity of the investment portfolio shall remain sufficient to meet all operating requirements
that may be reasonably anticipated.

3. 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. Investment
Funds shall be invested in accord with the standards set forth in RSA 197:23-a. Investment
maturities for operating funds shall be scheduled to coincide with projected cash flow needs,
taking into account large routine expenditures (payroll and accounts payable) as well as
anticipated revenues.

Competitive Selection of Investment Instruments

Before investing any excess funds in investment instruments, with the exception of United States
Treasury securities maturing in less than one year, a competitive bid process shall be conducted by
the District Treasurer, the Superintendent, or his/her designee.

Bids shall be requested from qualified financial institutions for various options with regard to
terms and instrument. The District Treasurer, Superintendent, his/her designee shall accept the
bid(s) that provide(s) the highest rate of return, within the maturity required, and within the
parameters of this policy, taking into consideration all
associated costs, requirements, and capabilities.

Standards of Care

1. Prudence: The standard of prudence to be used by the District Treasurer
and Superintendent 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 GFOA (Government Financial Officers Association).

2. Practices and Policy Statements Related to Cash Management as a guide to the prudent investment
of public funds.

Ethics and Conflicts of Interest: The School District Treasurer and Superintendent 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 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 School District, particularly with regard to the
timing of purchases and sales.

3. Internal Controls: The District Treasurer and Superintendent or his/her designee shall establish
a system of internal controls that shall be documented in writing. The internal controls shall be
reviewed by the School Board and an independent auditor.

The investment of funds will be left to the discretion of the Superintendent or his/her designee
without prior approval of the Board.

Legal Reference:

     Per the District’s Financial Advisors/Auditors, this policy must be readopted annually. RSA
     197:23-a, IV

Category: P

1st Read: June 18, 2019
2nd Read: July 23, 2019
Adoption: July 23, 2019

Reviewed: March 1, 2022