3-Attachment B Procedure DFL.pdf

GWINNETT

COUNTY

PUBLIC

SCHOOLS

Gwinnett County Board of Education

Level:

Procedure D-Fiscal Management

Accompanying Policy:

DFL

Descriptor Code:

P.DFL

Rescinds September 3, 2010

Descriptor Term:

Investment Earnings

Effective Date:

March 4, 2016

Last Reviewed Date:

July 5, 2023

CASH MANAGEMENT AND INVESTMENTS

Definition: Cash management is a cash flow program that optimizes the Gwinnett County 1.

Board of Education's financial resources on a day-to-day basis

Goals: The basic goals of the cash management program are to maximize the amount of 2.

money available for investment while providing adequate liquidity to fund the day-to-day operations, and to continually upgrade the investment portfolio to earn the highest possible income.

Purpose: The cash management system insures that sufficient cash will be available to 3.

pay all obligations, while investing idle cash at the highest allowable low risk rate of return.

4. Function: The cash management function includes banking, cash needs analysis/forecasting, and investing.

5. Banking: A Request for Banking Service Proposal that provides for banking services will be developed by the Director of Treasury Services. (The bank selected through the RFP will be referred to as the "bid service bank" in these procedures.)

Selection criteria will be developed and will determine the awarding of the a.

banking bid. The banking service agreement will provide for a bank account structure which allows for the current structure and future needs.

b. School Food and Nutrition Area Deposit Accounts. Bank accounts will be established at Board approved banks to function as deposit accounts so that monies may be efficiently transferred to the central account for proper cash management.

6. Cash Needs Analysis/Forecasting: Cash analysis and forecasting is a major vehicle used to help meet cash flow and cash utilization responsibilities.

Meaningful cash analysis requires the documentation of the flow of cash receipts a.

and disbursements and the resulting cash position at the end of each period of analysis -- day, week, or month.

On each business day the cash position by fund must be reviewed as b.

summarized on the cash book ledger. The cash book is prepared with information from the following sources:

1) Receipts. Receipts are posted daily to the cash book ledger. Special handling for large dollar items for quicker deposit helps to accelerate use of monies. Large dollar revenues from the Tax Commissioner's office are handled by Electronic Fund Transfer.

2) Accounts Payable. Accounts payable and payrolls are recorded daily to the cashbook ledger. Accounts payable checks are printed on Tuesday and Wednesday and payroll checks are printed according to prescribed published schedules.

3) Investment Ledger. A cash book ledger is used to record all investments.

Maturing investments and purchases are posted to the cash book ledger.

4) Book Balances. Daily, the bid service bank furnishes bank balances for all accounts. A daily transaction record is maintained for each bank account balance. Bank account balances must reconcile daily with the cash book ledger (appropriate action and follow up must be taken immediately to identify non-reconciling items).

7. After daily cash balances have been calculated, the following information must be considered in planning for investments:

a. Daily receipts and expenditures

b. Daily bank balances

c. Daily cash book balances

d. Deposit clearing (float)

e. Current investment

f. Investment maturities

g. Interest coupons

h. Anticipated receipts and expenditures

i. Allowable investment options

8. Investing: The investments of the Gwinnett Public School District must be made in instruments that are legal according to Georgia statutes and allowable under Policy DFL.

To keep updated on the latest trends affecting investments, consultation with local bankers, the bid service bank, and investment brokers and counselors will be employed in the decision making process. Securities will be selected that satisfies the current objective and needs of the portfolio.

9. Monthly Reporting: The Director of Treasury Services will prepare a monthly report for the board of all investment holdings.

DELEGATION OF AUTHORITY AND RESPONSIBILITIES

1. Authority to engage in investment transactions on behalf of the Gwinnett Public School District is delegated to the following positions:

a. Chief Financial Officer - overall management responsibility.

b. Executive Director of Budget, Strategy and Risk Mitigation.

c. Director of Treasury Services - day-to-day cash management, banking, and investment program management responsibility.

d. Assistant Director of Treasury Services - day-to-day cash management and banking responsibility.

e. Cash Accountant - record keeping and posting responsibility for cash book ledger, and general ledger systems.

2. The Assistant Director of Treasury Services will maintain the operational cash needs analysis/forecast and review with the Executive Director of Budget, Strategy and Risk Mitigation cash needs on a routine basis.

3. The Director of Treasury Services will maintain the strategic cash needs and investment analysis/forecast, working closely with the Assistant Director of Treasury.Services

4. The Director of Treasury Services will execute investment transactions with approved financial institutions and broker/dealers.

5. The Assistant Director of Treasury Services will keep the Director of Treasury Services informed of significant daily activity that is not of a routine nature.

QUALIFYING BANKING INSTITUTIONS

1. The Director of Treasury Services and the Assistant Director of Treasury Services will be responsible for maintaining a list of approved financial institutions and broker/ dealers for the Chief Financial Officer's approval. No bids will be solicited or accepted from any financial institution which does not appear on the approved list.

2. A review will be conducted yearly of each institution desiring to conduct business with the Gwinnett Public School District.

3. Financial reports from institutions, the State Banking Organization, Banking Industry Organization, Federal Home Loan Bank Board Semi-Annual Reports, and other appropriate publications may be utilized to help formulate the list of approved financial institutions.

4. Each institution must qualify for the appropriate insurance coverage:

a. Commercial Banks -- FDIC (Federal Deposit Insurance Corporation)

b. Savings and Loans -- FSLIC (Federal Savings and Loan Insurance Corporations)

c. Dealers -- SIPC (Securities Investor Protection Corporation)

5. The district may enter into an agreement with an Investment Advisor to provide investment advice and utilize them for the bidding and purchase of securities as allowed under Policy DFL.