Ohio Administrative Code › Title 3358:11 - Michael J. Owens Community College › Chapter 3358:11-4 - College Policies In General › Section 3358:11-4-25 - Investment policy

Current through all regulations passed and filed through July 1, 2024
(A) The purpose of this rule is to provide a
			 framework for the prudent management of all public funds that will adhere to
			 Chapter 135. of the Revised Code and to all other applicable laws and
			 regulations at all times.
Owens community college shall invest public funds in a manner,
				which will provide maximum security with the highest investment return, safety
				and preservation of principal, while meeting the daily cash flow demand and
				conforming to all applicable statutes governing the investment of public
				funds.
(B) Authority. The
			 treasurer/chief financial officer is the investment officer of the college and
			 is responsible for the purchase and sale of invested funds and the
			 implementation of the investment rule. The treasurer/chief financial officer
			 will adhere to the investment rule, section
			 3358.06 of the Revised Code,
			 section 3345.05 of the Revised Code, and
			 all other applicable laws and regulations.
(C) Scope. The investment rule applies to all
			 financial assets of the college, including state and federal funds held by the
			 college. The treasurer/chief financial officer or designated staff shall
			 routinely monitor the composition of the college's investment portfolio, the
			 available markets and relative value of competing investments and will adjust
			 the portfolio accordingly.
(D)
			 Standard of prudence. The standard of prudence to be applied by the treasurer
			 shall be the industry prudent-person standard, which states, "investments shall
			 be made with judgment and care, under circumstances then prevailing, which
			 persons of prudence, discretion and intelligence exercise in the management of
			 their own affairs, not for speculation, but for investment, considering the
			 probable safety of their capital as well as the probable income to be derived."
Acting in accordance with the investment rule or any other
				appropriate written procedures pertaining to the administration and management
				of the college investment portfolio while exercising due diligence, shall
				relieve the treasurer of personal responsibility for an individual security's
				credit risk or market price changes, provided deviations from expectations are
				reported to the board of trustees in a timely fashion and appropriate action is
				taken to respond to adverse developments.
(E) Objectives. The primary objectives of the
			 college's investment activities are in priority order, as follows:
(1) Safety. The safety of principal is the
			 foremost objective of the investment program. College investments shall be
			 undertaken in a manner that seeks to ensure the preservation of capital in the
			 overall portfolio. Diversification is required in order that potential losses
			 on individual securities are not excessive relative to the income generated
			 from the remainder of the portfolio.
(2) Liquidity. The college investment
			 portfolio will remain sufficiently liquid to enable it to meet all operating
			 requirements, which might be reasonably anticipated.
(3) Return on investment. The college's
			 investment portfolio shall be designed with the objective of attaining a market
			 rate of return throughout budgetary and economic cycles, taking into account
			 this investment rule and the cash flow characteristics of the
			 portfolio.
(4) Minimization of cost
			 of services. The fourth objective is to minimize transaction costs.
			 Relationships with securities dealers, investment bankers, and other entities
			 providing investment services will be carefully managed to secure high quality
			 services while simultaneously minimizing costs.