The actual amount of required collateral varies depending on the district's deposits on hand at any given time. Exhibit 6-1 lists the district's various bank accounts at Bank of America. The payroll and workers' compensation accounts are zero balance accounts. The director of the Funds Management Department reviews the account daily and subsequently makes investment decisions based on the district's need to access the monies in that account. United States agency investments are investments in bonds issued by an agency of the United States government.
Commercial paper is short-term debt that is issued by corporations.
An investment pool is a mechanism created under the Public Funds Investment Act for investing the combined funds of various participating public entities. A similar investment tool in the private sector is a money market mutual fund. Lone Star is administered by the Texas Association of School Boards, Inc., and Texpool is administered by the Texas State Comptroller's Office. This represents a 25.5 percent decline during 1998-99. Exhibit 6-5 includes the number of bank accounts that peer districts operate.