Administration – 210
Approved by the Board of Trustees March 27, 2025
St. Joseph Public Library
Investment Policy
1. Statement of Purpose
It is the policy of the St. Joseph Public Library to invest its funds in a manner that will provide the highest investment return with the maximum security, while meeting the daily cash flow needs and complying with all state statues governing the investment of public funds.
2. Scope of Policy
This investment policy applies to all financial assets of the St. Joseph Public Library. These assets are accounted for in the various funds of the St. Joseph Public Library and include the general fund, capital projects fund, and any new fund established by the St. Joseph Public Library.
3. Investment Objectives, in Priority Order
A. Safety: Safety of principal is the foremost objective of the investment program.
B. Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
C. Return on Investment: The investment portfolio shall be designed with the objective of obtaining a rate of return throughout the budgetary and economic cycles, taking into account the investment risk constraints and the cash flow from characteristics of the portfolio.
D. Diversification: The investment will be diversified by security type to minimize any potential investment loss.
4. Delegation of Authority to Make Investments
Authority to manage the investment program is derived from Section 182.800 of Missouri Revised Statutes. Management responsibility for the investment program is hereby delegated to the St. Joseph Public Library Director or their designee who shall follow the internal controls for the operation of the investment program consistent with this Investment Policy.
5. Authorized Investment Instruments
St. Joseph Public Library funds shall be invested only in the manner permitted with provisions of Missouri statutes, and may include any of the following:
A. Obligations, redeemable at maturity at par, of the State of Missouri or any political subdivision thereof. Bonds, securities and other obligations of the United States or an agency or instrumentality of the United States.
B. Certificates of deposit, savings accounts, deposit accounts, or depository receipts of a financial institution provided that the financial institution is eligible to be a depository of funds belonging to the State under a law or rule of the state of Missouri or the United States.
C. Repurchase agreements with any qualified public depositary.
To the extent possible, the St. Joseph Public Library will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the Library will not directly invest in securities having a maturity date of more than three years from the date of purchase.
The St. Joseph Public Library will require all deposits in excess of the federally insured amount to be collateralized to the extent equal to the face amount and evidenced by an approved written agreement with collateralization by a third party acting as an agent of the library.
6. Safekeeping and Custody
All security transactions, including collateral for repurchase agreements and financial institution deposits, entered into by the St. Joseph Public Library shall be on a cash (or delivery vs. payment) basis. Securities may be held by a third party custodian designated by the Library Director and evidenced by safekeeping receipts.
7. Statement of Ethics
The Library Trustees, Library Director and their designee shall refrain from personal business activity that could conflict with the proper execution and management of library investments, or that could impair the ability to make impartial investment decisions.