Often a financial advisor can be of assistance in offering advice about using contracted services for school district investments. However, there are times when the financial advisor could simply steer the district into using his or her firm's services entirely, rather than to give an unbiased opinion of how the district could stretch their financial horizons by using additional sources for their investment portfolio. Investment services can be of great help to a school district. Those firms providing services for the district will have experience far beyond personnel issues in the business services area. If a district employs architects to draw buildings, contractors to carry out construction plans, external auditors to oversee the appropriateness of business procedures, then hiring an outside investment specialist should have the same importance.
All school districts have operating funds available for use throughout the year.
There are some districts that have fund balances at the end of the year. School districts that have fund balances are not as restricted in investing strategies as those that operate with minimum fund balances. A money manager could help to determine an investment schedule based on available fund balances as well as peruse the markets for the best investment yields during each time period. It is important for school districts that have bond proceeds to look into using a money manager to help them place their funds in accordance with their draw schedules. State Securities Board School districts should check with the Texas State Securities Board to determine whether the dealers, agents, and investment advisors they are dealing with are registered to sell securities or render investment advice.