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GFOA Sample Investment Policy <br /> • <br /> The purpose of this sample investment policy is to aid the general membership of the Government Finance <br /> Officers Association(GFOA) in the preparation of an investment policy. This sample policy is not <br /> intended to supplant an existing policy;rather,it is presented as a model to help investing entities <br /> customize a policy to fit their particular needs, constraints and capabilities.In order to accommodate the <br /> varying needs of government entities and in order to stimulate conversation at the local level, certain <br /> sections of the attached policy include examples of alternative language. These alternative examples may <br /> be used in place of or in addition to the first paragraph presented for that section,depending on the goals <br /> and objectives of the particular investing entity. <br /> For additional information,please read Chapter Three of Investing Public Funds, second edition, a text <br /> authored by Girard Miller,with M. Corinne Larson and W.Paul Zorn,and published by the Government <br /> Finance Officers Association of the United States and Canada. You are also invited to contact current staff <br /> of the GFOA Standing Committee on Cash Management for assistance in modifying and/or writing your <br /> government's investment policy.Governments should obtain counsel to ensure compliance with state and <br /> local laws,regulations, and other policies concerning the investment of public funds. <br /> I. Governing Authority <br /> Legality <br /> The investment program shall be operated in conformance with federal, state, and other legal requirements, <br /> including[insert applicable citations governing the investment of public funds]. <br /> 411 <br /> II. Scope <br /> This policy applies to the investment of all funds,excluding the investment of employees'retirement funds. <br /> Proceeds from certain bond issues, as well as separate foundation or endowment assets, are covered by a <br /> separate policy.[This section should be modified to specify which assets are excluded from this policy] <br /> 1. Pooling of Funds <br /> Except for cash in certain restricted and special funds,the [entity]will consolidate cash and reserve <br /> balances from all funds to maximize investment earnings and to increase efficiencies with regard to <br /> investment pricing, safekeeping and administration. Investment income will be allocated to the <br /> various funds based on their respective participation and in accordance with generally accepted <br /> accounting principles. [This paragraph refers to the pooling offunds within a single governmental <br /> entity and implies no reference to local government investment pools. This GFOA Sample Investment <br /> Policy is not specifically designed for use by local government investment pools, although certain <br /> portions of this sample policy may apply.] <br /> III. General Objectives <br /> The primary objectives, in priority order,of investment activities shall be safety, liquidity, and yield: <br /> • 1. Safety <br /> Safety of principal is the foremost objective of the investment program. Investments shall be <br />