6144 - INVESTMENT INCOME
Philosophical Foundation:
Frequently there will be a cash balance in school district funds which, though allocated to a specific use, is temporarily available for investment. Most of the budgets maintained by the District start the fiscal year with a beginning balance. The arrival of receipts in advance of disbursements during the annual fiscal cycle also creates a cash balance available for investment.
In the District’s Building Fund receipts from the sale of bonds are received shortly after the bond sale. This up-front lump sum will be paid out gradually over multiple annual fiscal cycles, as construction is completed on building projects. This creates cash available for investment.
The Board considers an investment program a critical ingredient of sound fiscal management. Further, the Board authorizes an investment program for the purpose of securing maximum yield of interest to supplement the revenues for the support of the District’s educational program.
The investment program will be administered in a way that will ensure:
A continuous process of temporary investing of all idle moneys available for investment purposes.
Investments that have very low or no risk of loss of principle.
Investment liquidity to meet cash flow needs.
That all District investments will be in compliance with the law.
The Board authorizes the District Administrator (or designee) and Financial Manager to manage all activities associated with the investment program in such manner as to accomplish the objectives of this policy.
Policy Guidelines:
The District Administrator (or designee) and Financial Manager are further authorized to execute, in the Board’s name, any or all documents relating to the investment program in a timely manner and to confer with reputable consultants regarding investment decisions when necessary.
The following parameters are established to guide the Durand-Arkansaw School District in investment actions:
The use of open competition system of bids and/or quotes to obtain the maximum yield on all investments from both in-district and out-of-district financial institutions.
Investment must be insured, collateralized or in some other way protected from loss exposure.
Investments will be placed in a Board approved depository.
Depositories must be identified and Board approved. Each depository transaction will be preapproved by the District Administrator (or designee) or Financial Manager.
The Board Treasurer must be kept appraised in a timely manner of any non-collateralized investments.
The interest earned from such investments will be deposited in the respective fund, investments responsibility rests with the District Administrator (or designee) and the Financial Manager.
Reviewed 8/20/25
© Durand-Arkansaw School District 2015