Reconcile regularly to broker and bank confirmations. Report each security and interest-bearing investment on your monthly report. A new service available, which helps small and large districts, is Treasury Direct from the U.S. Treasury. Local Government Investment Pools Many small districts use local government investment pools for all their investment needs. These commingled investment vehicles address all the strategy requirements required by law and offer current market rates through an economy of scale and professional management.
Larger districts use the pools for the liquidity portion of their portfolios for the same reason.
There are several pools available in Texas to help districts. There are different types of pools, however, and the investor should understand the pool's objectives and structure. A constant dollar pool is a type of money market fund that offers safety of principal and liquidity. Even though these are extremely conservative, their size and active management create rates normally above both CDs and Treasury Bills. But no broker will always have the best investment idea.