The Investment Policy approved by the Board of Commissioners/Directors shall apply to all financial assets of the Housing Authority, which includes any subsidiary entities. The funds accounted for include operating reserves of all programs, development reserves, and any newly acquired special funds that the Housing Authority may invest in. Generally, all income of the Housing Authority shall be deposited into a financial institution insured by the FDIC (Federal Deposit Insurance Corporation).
Monies deposited in excess of FDIC limits shall be collateralized by pledged securities according to the General Depository Agreement (HUD Form 51999).
Security deposits accounts must be maintained as required by state laws.
1. The Housing Authority shall have the following accounts, as approved by the Board of Commissioners/Directors:
General Operating Account(s) shall be a checking account at a financial institution insured by the FDIC (Federal Deposit Insurance Corporation) and approved by the Board of Commissioners/Directors.
Investment Account(s) may be established by the Executive Director/CEO or the Chief Operations Officer, with approval of the Board of Commissioners/Directors to invest excess cash not required for operations. Investments shall be limited to savings accounts, money market accounts, certificates of deposit, and governmental securities. The priority for investment criteria shall be (1) security, (2) liquidity, and (3) rate of return.
2. Interest revenue will be required to be added to the principal of the investment.
3. All accounts of the Housing Authority shall be in the name of the Housing Authority.
4. The Executive Director/CEO, two Board of Commissioners/Directors, the Controller, and the Chief Operating Officer shall be signatories on all Housing Authority accounts. The Executive Director/CEO may designate other signers.
5. Investments will be reviewed at least annually for the rate of return comparability between financial institutions.
6. An investment register shall be maintained by the Finance Department listing each investment, rate of return, maturity dates, and current balances.