Ohio Administrative Code › Title 3358:5 - Clark State College › Chapter 3358:5-1 - College Mission, Vision and Principles; Board Responsibilities › Section 3358:5-1-33 - Investment policy

Current through all regulations passed and filed through July 1, 2024
The purpose of the investment policy is
				to ensure the safety, liquidity and earnings potential while meeting the
				college's cash flow needs and providing a reasonable return on investment,
				while keeping risk low, within the constraints of this policy.
(A)
								Sections
			 3358.06,
			 3345.05,
			 3354.10, and
			 135.14 and other applicable
			 provisions of the Revised Code will guide the college's investment policy and
			 procedures.
(B)
								Authority to set policy for the college's investment
			 activities falls on the board of trustees. The treasurer, with counsel of the
			 board of trustee's finance and facilities committee, will be charged to
			 maintain and update the college's policy on investing.
(C)
								This policy
			 applies to all financial assets of the college, including state and federal
			 funds held by it, to the extent allowable by state or federal guidelines. The
			 treasurer and/or staff shall routinely monitor the contents of the college's
			 investment holdings, the available markets and relative value of competing
			 investments and adjust their holdings accordingly.
(D)
								The treasurer
			 and/or staff will use prudence in the management of the college's investments.
			 The college will exercise due diligence in making choices that keep the
			 college's risk in investing low, while still providing a reasonable return on
			 investment.
(E)
								Those involved in the investment process will refrain
			 from activities that are or could be construed as a conflict of interest. The
			 treasurer and/or staff involved in the investment process shall refrain from
			 personal business activity that could conflict with the proper execution and
			 management of the college's investments. They shall disclose any personal
			 financial and investment positions that could be related to the performance of
			 the investment portfolio.
(F)
								Acting in accordance with the investment policy
			 relieves the treasurer and/or staff from personal liability for the negative
			 effects of risk that are inherent in investing.
(G)
								Investment
			 committee.
(1) Divisiion (C) of section
			 3345.05 of the Revised Code
			  requires the establishment of an investment committee.
			 The board finance and facilities committee shall serve as the investment
			 committee.
(2)
									Objectives - the primary objectives, in priority order,
			 of the college's investment activities shall be:
(a)
										Safety: Safety of
			 principal is the foremost objective of the investment program. Investments of
			 the college shall be undertaken in a manner that seeks to ensure the
			 preservation of capital in the overall portfolio.
(b)
										Diversification:
			 Diversification of assets and maturities is required in order to avoid
			 potential losses on individual securities that may exceed the income generated
			 from the remainder of the portfolio.
(c)
										Liquidity: The
			 college's investment portfolio will remain sufficiently liquid to enable it to
			 meet all operating requirements, which might be reasonably anticipated. An
			 investment must be liquid within five years, per the Ohio Revised
			 Code.
(d)
										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 policy and the cash flow characteristics of the
			 portfolio.