TITLE: Public Investments
The Fifth Judicial District Department of Correctional Services ("Department") provides supervision to offenders who have been sentenced to its jurisdiction. The Department receives funds from a variety of sources, including but not limited to, the state of Iowa, United States Government, county governments and clients under its supervision. In order to adequately safeguard invested public funds, exercise due care and diligence of invested public funds, and comply with state and federal laws and standards regarding invested public funds, a written investment policy is required pursuant to Section 12C.2, Code of Iowa.
The Department shall invest funds in compliance with federal and state laws governing such investments, including but not limited to Section 12B, Code of Iowa (Security of the Revenue) and Section 12C, Code of Iowa (Deposit of Public Funds) and the applicable sections of the Iowa Administrative Code.
- Operating Funds: Funds which are reasonably expected to be expended during a current budget year or within 15 months of receipt.
- Non-operating Funds: Funds that are reasonably expected to be expended after 15 months of receipt, e.g., funds appropriated for a capital building project.
- Public Funds: The moneys of a political subdivision of the state.
- Depository: An Iowa financial institution authorized by law to receive deposits and whose deposits are insured by the Federal Insurance Corporation (FDIC) or the National Credit Union Association (NCUA).
- Treasurer: Department employees designated by the Board of Directors to invest funds on the Department's behalf.
- The Director, or the Director's designee, shall act as Treasurer for the Department.
- The Treasurer at all times shall keep funds coming into the Department's possession as public money in a safe to be provided for that purpose or in one or more depositories approved pursuant to Section 12C.2, Code of Iowa, "Resolution Naming Depositories".
- The Treasurer, when investing or depositing public funds, shall exercise the care, skill, prudence, due diligence, under the circumstances then prevailing that a prudent person acting like capacity and familiar with such matters would use to obtain the goals of the Department and the State of Iowa. The Treasurer shall consider the role that the investment plays within the Department's portfolio of assets and the goals of investment prudence of the state of Iowa. The primary goals of investment prudence shall be based on the following order of priority:
- Safety of principal.
- Maintaining adequate liquidity to meet expected liabilities.
- Obtaining a reasonable return.
- Investment of public funds shall be made in accordance with written policies. The policy shall address the goals of the Department and the State of Iowa. The policy shall also address compliance with State law, diversification, maturity, quality and capability of investment management. The trading of securities in which public funds are invested for the purpose of speculation and the realization of short-term trading profits is prohibited. Investments must have maturities that are consistent with the needs and use of the Department.
- Investments are limited to the following:
- Obligations of the United States government, its agencies and instrumentalities.
- Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions approved by State law.
- Commercial paper or other short-term corporate debt that matures within 125 days and that is rated within the highest classification, as established by at least one of the standard rating services approved by the Superintendent of Banking, provided that at the time of purchase no more than 10% of the investment portfolio of the Department shall be in investments authorized by this paragraph and that at the time of purchase no more than 5% of the investment portfolio shall be invested in the securities of a single issuer.
- An open-ended management investment company registered with the federal Investment Company Act of 1940, 15 U.S.C., 80(a), and operating in accordance with 17 C.F.R., 270.2a-7.
- Public Investment Maturity and Procedural Limitations.
- The investment of public funds which are operating funds must be identified and distinguished from all other funds available for investment.
- Operating funds may only be invested in investments which mature within 379 days or less and which are authorized by law for the Department.
- A contract for the investment or deposit of public funds shall not provide for compensation of an agent or fiduciary based upon investment performance.
- The Treasurer may invest non-operating funds in investments having maturities longer than 379 days.
- Interest earnings from operating funds shall accrue to the general fund of the Department and shall be used to meet the financial obligations of the Department. Interest earnings from non-operating funds shall accrue to the general fund of the Department and shall be used to meet the financial obligations for which the non-operating funds were appropriated.
- This investment policy shall not be construed to supersede any provision of State law.