Investment Policy
Approved by the Kingston Library Board on November 9, 2009
A. Scope
This investment policy applies to all moneys and other financial resources available to Kingston Library for investment on its own behalf or on behalf of any other entity or individual.
B. Objectives
The primary objectives of the Kingston Library’s investment activities are, in order of priority:
C. Delegation of Authority
The Board of Trustees’ responsibility for administration of the investment policy is delegated to the Treasurer, Director and one other Board member who, together, shall establish written procedures for the operation of the investment program consistent with these investment guidelines. The other Board member shall be nominated by the Board President and approved by the full Board annually. Such procedures shall include an adequate internal control structure to provide a satisfactory level of accountability based on records incorporating description and amounts of investments, transaction dates, and other relevant information, and regulate the activities of subordinate employees.
D. Prudence
All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction that might impair public confidence in the Kingston Library effectively.
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudent discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the safety of the principal as well as the probable income to be derived.
All participants involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
E. Diversification
It is the policy of the Kingston Library to diversify its deposits and investments by maturity scheduling. Diversification may also be accomplished through seeking competitive bids on investments from at least three of the designate financial institutions.
F. Internal Controls
The Treasurer is responsible for establishing and maintaining an internal control structure to provide reasonable, but no absolute, assurance that deposits and investments are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with the Board of Trustees’ authorization and recorded properly, and managed in accordance with applicable laws and regulations. Investing of funds will require the authorization of the Treasurer and one Board member, including execution of wire transfers of funds to effect such investments.
G. Internal Controls
The banks and trust companies (including any successors) authorized for the deposit of monies up to the following amounts are:
H. Collateralizing of Deposits
In accordance with the provisions of General Municipal Law §10, all deposits of Kingston Library, including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act ($250,000 currently) shall be secured:
Appendix A: Schedule of Eligible Securities