1.8 College Investment Policy
I. Purpose
This policy limits investment by the college to those types of financial instruments authorized under Section 1706 of the County Code and other investments that are limited to educational institutions or educational support institutions which are exempt from taxation. Such institutions are described in Section 501(c) (3) of the Internal Revenue Code under Section 170(b) (1) (A) (ii) or Section 170(b) (1) (A) (iv) of the Code respectively.
II. Scope
The Board of Trustees will adopt appropriate practices and review them annually.
III. General
Investment Objectives
General Statement - Funds of the college will be invested in accordance with State and County laws and the college Investment Policy. College administration will follow the investment strategies adopted by the Board of Trustees.
Safety and Maintenance of Adequate Liquidity – Bucks County Community College is primarily concerned about the safety of its principal, as well as, providing liquidity and maximizing allowable interest income in any investment transaction. Investments made by the college must be structured in conformance with the asset/liability management plan to provide for liquidity necessary to pay obligations as they become due, such as: immediate liabilities, debt service payments, pending land acquisition, new building construction, emergencies, and purchase discounts.
Interest Rate/Yield - It is the objective of the college to earn the maximum rate of return allowed on its investments while complying with County, State, and Federal Laws, and adhering to the college’s Investment Policy.
Maturity Restraints – The maturity of the investment first must be structured to meet the obligations of the college, and secondly to achieve the highest rate of return allowable by law.
Investment Strategy for Funds – The funds subject to the Investment Policy will include: Operating Funds, Capital Funds, Debt Service Funds, Special Capital Projects Funds, and Reserves from Fund Balance. The investment strategy for these funds is to assure the needs for adequate safety of principal and liquidity are met to provide sufficient cash flows to cover anticipated obligations.
IV. Procedures
None
V. Approval
Board of Trustees, October 9, 2014
VI. Responsibility
Vice President for Administrative Affairs & CFO