Attachment A.pdf
PDF 54 KB Posted
- Attached to
- Banking Services State and local contract opportunity
- Solicitation number
- 5400028775
- Issued by
- Charleston County, South Carolina
About this file
This is a financial policy document from South Carolina establishing procedures for the investment of surplus funds. The policy, numbered 6-7-1 and approved on January 4, 1999, applies to the state entity managing banking services. The document authorizes the Vice President of Finance and Administration, or their designee, to invest local surplus funds in financial instruments in compliance with South Carolina Code 6-5-10. The investment program is structured around three prioritized objectives: preservation of capital as the foremost goal to mitigate risk through safe securities selection, maintenance of sufficient liquidity to meet all reasonably anticipated operating requirements with securities maturing concurrent with cash needs, and achievement of market rate returns throughout the budget cycle based on current rate environment and risk constraints. The policy permits overnight investments for portions of the portfolio to address unforeseen cash demands that cannot be anticipated.
The policy establishes that investments shall be limited to the safest types of securities with portfolio structuring designed to prevent the need for premature security sales prior to maturity. The investment activities are conducted to generate revenue for use as general operating funds. The procedures remain in effect until funds are needed for cash operations, with the Vice President of Finance and Administration maintaining authorization over investment decisions within the established guidelines. No specific contract term, renewal options, pricing terms, or award dates are specified in this policy document, as it serves as a standing authorization framework for ongoing surplus fund investment activities.
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Other files for this state and local contract opportunity
| File | Type | Posted |
|---|---|---|
| 5400028775.pdf | ||
| Attachment C.pdf | ||
| Attachment D.pdf | ||
| Attachment B.pdf |
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Text version
6-7-1 Funds, Investment of Surplus
NUMBER: 6-7-1 APPROVED DATE: 01-04-1999
BASED ON POLICY NUMBER AND TITLE: 2-12-0 EPA 4: FINANCIAL CONDITION
PURPOSE: To establish procedures to invest all surplus funds in order to earn revenue for use as general operating funds.
The Vice President of Finance and Administration is authorized to invest local funds until the funds are needed for cash according to the guidelines within these procedures
1. The Vice President of Finance and Administration or the designee of the Vice
President is authorized to invest in financial instruments in compliance with the
Code of Laws of South Carolina (SC Code 6-5-10).
2. The primary objectives in priority order of investment activities shall be preservation of capital, liquidity and yield.
A. Preservation of capital – Preservation of capital is the foremost objective of the investment program. Funds shall be invested in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective is to mitigate risk. Risk is defined as limiting investments to the safest types of securities and structuring the investment portfolio so securities mature to meet cash requirements for ongoing operations and would prevent the need to sell securities prior to maturity.
B. Liquidity – The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The portfolio shall be structured so that securities mature concurrent with cash needs to meet anticipated demands. Because all cash demands cannot be anticipated, a portion of the portfolio may be placed in overnight investments.
C. Yield – The investment portfolio shall be designated to attain the market rate of return throughout the budget cycle based on the current rate environment, risk constraints and liquidity needs.
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