DFA January 2026.pdf (124 KB)

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​Boulder Valley School District​​ ​File: DFA​ ​Adopted: June 9, 1988, date of manual adoption​ ​Revised: April 13, 2004, June 12, 2007, June 9, 2009​, February __, 2026​

​CASH MANAGEMENT/​INVESTMENT POLICY​ ​The​ ​Board​ ​recognizes​ ​the​ ​importance​ ​of​ ​prudent​ ​and​ ​profitable​ ​investment​ ​of​ ​School​ ​District​ ​monies​ ​and​ ​its​ ​responsibility​ ​in​ ​overseeing​ ​this​ ​part​ ​of​ ​the​ ​School​ ​District’s​ ​financial​​program.​​It​​is​​the​​policy​​of​​the​​School​​District​​to​​invest​​public​​funds​​in​​a​​manner​ ​that​ ​will​ ​preserve​​capital,​​meet​​the​​daily​​liquidity​​needs​​of​​the​​School​​District,​​diversify​ ​the​ ​School​ ​District’s​ ​investments,​ ​generate​ ​market​ ​rates​ ​of​ ​return,​ ​and​ ​conform​ ​to​ ​all​ ​local​ ​and​ ​state​​statutes​​governing​​the​​investment​​of​​public​​funds,​​and​​generate​​market​ ​rates of return​, and to exercise prudence​.​ ​This​ ​Cash​ ​Management​ ​Investment​ ​Policy​ ​addresses​ ​the​ ​methods,​ ​procedures,​ ​and​ ​practices​​which​​must​​be​​exercised​​to​​ensure​​effective​​and​​judicious​​fiscal​​and​​investment​ ​management of the​​School​​District’s funds.​ ​SCOPE​ ​This​​policy​​shall​​apply​​to​​the​​investment​​of​​all​​financial​​assets​​and​​all​​funds​​of​​the​​School​ ​District​ ​over​ ​which​ ​the​ ​Board​ ​exercises​ ​financial​ ​control.​ ​All​ ​cash​ ​shall​ ​be​ ​pooled​ ​for​ ​investment​ ​purposes,​ ​except​ ​for​ ​cash​ ​balances​ ​in​ ​the​ ​Bond​ ​Redemption​ ​Fund,​ ​the​ ​Building​ ​Fund,​ ​the​ ​Health​ ​Insurance​ ​Fund,​ ​the​ ​Dental​ ​Insurance​ ​Fund,​ ​the​ ​Non-expendable​​Trust​​Fund​​and​​the​​Expendable​​Trust​​Fund.​​Investment​​income​​derived​ ​from​ ​the​ ​pooled​ ​investment​ ​account​ ​shall​ ​be​ ​allocated​ ​to​ ​the​ ​General​ ​Fund​Cash​ ​balances​ ​in​ ​the​ ​Bond​ ​Redemption​​Fund,​​the​​Building​​Fund,​​the​​Health​​Insurance​​Fund,​ ​the​ ​Dental​ ​Insurance​ ​Fund,​ ​the​ ​Non-expendable​ ​Trust​ ​Fund​ ​and​ ​the​ ​Expendable​ ​Trust​ ​Fund​ ​shall​ ​not​ ​be​ ​pooled​ ​and​ ​the​ ​investment​ ​income​ ​derived​ ​from​ ​the​ ​individual​ ​investment accounts shall be allocated directly to the individual fund.​ ​All​ ​cash​​shall​​be​​pooled​​for​​investment​​purposes,​​except​​for​​cash​​balances​​of​​the​​funds​ ​listed​ ​above.​ ​Investment​ ​income​ ​derived​ ​from​ ​the​ ​pooled​ ​investment​​account​​shall​​be​ ​allocated to the General Fund.​ ​This​ ​Investment​ ​Policy​ ​shall​ ​apply​ ​to​ ​all​ ​funds​ ​accounted​ ​for​ ​in​ ​the​ ​District’s​ ​Comprehensive Annual Financial Report.​ ​INVESTMENT OBJECTIVES​¶​ ​¶​ ​The District’s principal investment objectives include:​¶​

​¶​ ​●​ ​Preservation of capital and protection of investment principal;​¶​ ​●​ ​Maintenance of sufficient liquidity to meet anticipated cash flows;​¶​ ​●​ ​Attainment of a market rate of return;​¶​ ​●​ ​Diversification to avoid incurring unreasonable market risks;​¶​ ​●​ ​Conformance​ ​with​ ​all​ ​applicable​ ​District​ ​policies,​ ​state​ ​statutes​ ​and​ ​Federal​ ​regulations.​ ​DELEGATION OF AUTHORITY​¶​ ​¶​ ​The​ ​Superintendent​ ​is​ ​vested​​with​​responsibility​​for​​managing​​the​​District’s​​investment​ ​program​ ​and​ ​for​ ​implementing​ ​this​ ​Cash​ ​Management​ ​Investment​ ​Policy.​ ​The​ ​Superintendent​ ​may​ ​delegate​ ​the​ ​authority​ ​to​ ​conduct​ ​investment​​transactions​​and​​to​ ​manage​​the​​operation​​of​​the​​investment​​portfolio​​to​​the​​Accounting​​Services​​Director​​or​ ​the​​Chief​​Financial​​Officer.​​No​​person​​may​​engage​​in​​an​​investment​​transaction​​except​​as​ ​expressly provided under the terms of this Investment Policy.​¶​ ​The​ ​Superintendent​ ​or​ ​his/her​​designee​​shall​​establish​​written​​procedures​​and​​internal​ ​controls​​for​​the​​operation​​of​​the​​District’s​​investment​​program,​​designed​​to​​prevent​​loss​ ​of public funds due to fraud, error, misrepresentation and imprudent actions.​ ​The​ ​School​ ​District​ ​may​ ​engage​ ​the​ ​support​ ​services​ ​of​​outside​​investment​​advisors​​in​ ​regard​​to​​its​​investment​​program,​​so​​long​​as​​it​​can​​be​​demonstrated​​that​​these​​services​ ​produce​ ​a​ ​net​ ​financial​ ​advantage​ ​or​ ​necessary​ ​financial​ ​protection​ ​of​ ​the​ ​School​ ​District’s financial resources.​ ​PRUDENCE​¶​ ​¶​ ​The​ ​standard​ ​of​ ​prudence,​ ​as​​defined​​by​​the​​Colorado​​Revised​​Statutes,​​to​​be​​used​​for​ ​managing​ ​the​ ​District’s​ ​assets​ ​is​ ​the​ ​"prudent​ ​investor"​ ​standard​ ​applicable​ ​to​ ​a​ ​fiduciary,​ ​which​ ​states​ ​that​ ​a​ ​prudent​ ​investor​ ​"shall​ ​exercise​ ​the​ ​judgment​ ​and​ ​care,​ ​under​ ​circumstances​ ​then​ ​prevailing,​ ​which​ ​men​ ​of​ ​prudence,​ ​discretion,​ ​and​ ​intelligence​ ​exercise​ ​in​ ​the​ ​management​ ​of​ ​the​ ​property​ ​of​ ​another,​ ​not​ ​in​ ​regard​ ​to​ ​speculation​ ​but​ ​in​ ​regard​ ​to​ ​the​ ​permanent​ ​disposition​ ​of​ ​funds,​ ​considering​ ​the​ ​probable​ ​income​ ​as​ ​well​​as​​the​​probable​​safety​​of​​capital."​ ​(Colorado​​Revised​​Statutes​ ​15-1-304, Standard for Investments.)​¶​ ​¶​ ​The​​District’s​​overall​​investment​​program​​shall​​be​​designed​​and​​managed​​with​​a​​degree​ ​of​ ​professionalism​ ​that​ ​is​ ​worthy​ ​of​ ​the​ ​public​ ​trust.​ ​The​ ​District​ ​recognizes​ ​that​ ​no​ ​investment​​is​​totally​​without​​risk​​and​​that​​the​​investment​​activities​​of​​the​​District​​are​​a​ ​matter​ ​of​ ​public​ ​record.​ ​Accordingly,​ ​the​ ​District​ ​recognizes​​that​​occasional​​losses​​may​ ​be​ ​possible​ ​in​ ​a​ ​diversified​ ​portfolio​ ​and​ ​shall​ ​be​ ​considered​ ​within​​the​​context​​of​​the​ ​overall​ ​portfolio’s​​return,​​provided​​that​​adequate​​diversification​​has​​been​​implemented​ ​and that the sale of a security is in the best long-term interest of the District.​¶​ ​Page​​2​​of​​7​

​The​ ​Superintendent​ ​and​ ​other​ ​authorized​ ​persons​ ​acting​ ​in​ ​accordance​ ​with​ ​written​ ​procedures​ ​and​ ​exercising​ ​due​ ​diligence​ ​shall​ ​be​ ​relieved​ ​of​​personal​​responsibility​​for​ ​an​ ​individual​ ​security's​ ​credit​ ​risk​ ​or​ ​market​ ​price​ ​changes,​ ​provided​ ​deviations​ ​from​ ​expectations​​are​​reported​​in​​a​​timely​​fashion​​to​​the​​Board​​of​​Education​​and​​appropriate​ ​action is taken to control adverse developments.​¶​ ​ETHICS AND CONFLICTS OF INTEREST​¶​ ​¶​ ​District​ ​employees​ ​involved​ ​in​ ​the​ ​investment​ ​process​ ​shall​ ​refrain​ ​from​ ​personal​ ​business​ ​activity​ ​that​ ​could​ ​conflict​ ​with​ ​proper​ ​execution​ ​of​ ​the​ ​District’s​ ​investment​ ​program​​or​​that​​could​​impair​​or​​create​​the​​appearance​​of​​an​​impairment​​of​​their​​ability​ ​to​​make​​impartial​​investment​​decisions.​​Employees​​shall​​disclose​​to​​the​​Superintendent​ ​or​​his/her​​designee​​any​​material​​financial​​interest​​they​​have​​in​​financial​​institutions​​that​ ​conduct​​business​​with​​the​​District,​​and​​they​​shall​​subordinate​​their​​personal​​investment​ ​transactions to those of the District.​¶​ ​¶​ ​AUTHORIZED SECURITIES AND TRANSACTIONS​¶​ ​¶​ ​All​ ​investments​ ​will​ ​be​ ​made​ ​in​ ​accordance​ ​with​ ​applicable​ ​law.​ ​the​ ​Colorado​ ​Revised​ ​Statutes​​as​​follows:​​C.R.S.​​§​​11-10.5-101,​​et​​seq.​,​​Public​​Deposit​​Protection​​Act;​​C.R.S.​​§​ ​11-47-101,​ ​et​ ​seq.,​​Savings​​and​​Loan​​Association​​Public​​Deposit​​Protection​​Act;​​C.R.S.​​§​ ​24-75-601,​ ​et.​ ​seq​.,​ ​Funds​ ​-​ ​Legal​ ​Investments;​ ​C.R.S.​ ​§​ ​24-75-603,​ ​Depositories;​ ​and​ ​C.R.S.​​§​​24-75-702,​​Local​​governments​​–​​authority​​to​​pool​​surplus​​funds.​​Any​​revisions​​or​ ​extensions​ ​of​ ​these​ ​sections​ ​of​ ​the​ ​statutes​ ​will​ ​be​ ​assumed​ ​to​ ​be​ ​part​ ​of​ ​this​ ​Investment Policy immediately upon being enacted.​ ​This​ ​Cash​ ​Management​ ​Investment​ ​Policy​ ​further​ ​restricts​ ​the​ ​investment​ ​of​ ​District​ ​funds to the following types of securities and transactions:​¶​ ​¶​ ​1.​ ​U.S.​ ​Treasury​ ​Obligations​:​ ​Treasury​ ​bills,​ ​Treasury​ ​notes,​ ​Treasury​ ​bonds​ ​and​ ​Treasury​ ​STRIPS​ ​with​ ​maturities​ ​not​ ​exceeding​ ​five​ ​years​ ​from​ ​the​ ​date​ ​of​ ​trade​ ​settlement.​¶​ ​¶​ ​2.​ ​Federal​ ​Instrumentality​ ​Securities​:​ ​Debentures,​ ​discount​ ​notes,​ ​callable​ ​securities,​ ​step-up​ ​securities​ ​and​ ​stripped​ ​principal​ ​or​ ​coupons​ ​with​ ​maturities​​not​​exceeding​ ​five​ ​years​ ​from​ ​the​ ​date​ ​of​ ​trade​ ​settlement​ ​issued​ ​by​ ​the​​following​​only:​ ​Federal​ ​National​ ​Mortgage​ ​Association​ ​(FNMA),​ ​Federal​ ​Farm​ ​Credit​ ​Banks​ ​(FFCB),​ ​Federal​ ​Home​ ​Loan​ ​Banks​ ​(FHLB)​ ​and​ ​Federal​ ​Home​ ​Loan​ ​Mortgage​ ​Corporation​ ​(FHLMC).​ ​Federal​ ​Instrumentality​ ​Securities​​shall​​be​​rated​​in​​the​​highest​​rating​​category​​by​​at​ ​least​ ​two​ ​Nationally​ ​Recognized​​Statistical​​Rating​​Organizations​​(NRSROs),​​and​​shall​ ​be rated not less by any NRSRO that rates the debt.​¶​ ​¶​ ​Page​​3​​of​​7​

​3.​ ​Repurchase​​Agreements​​with​​a​​termination​​date​​of​​180​​days​​or​​less​​collateralized​​by​ ​U.S.​ ​Treasury​ ​obligations​ ​or​ ​Federal​ ​Instrumentality​ ​securities​ ​listed​ ​in​ ​1.​ ​and​ ​2.​ ​above​ ​with​ ​a​ ​final​ ​maturity​ ​not​ ​exceeding​ ​10​ ​years.​ ​The​ ​purchased​ ​securities​​shall​ ​have​​a​​minimum​​market​​value​​including​​accrued​​interest​​of​​102​​percent​​of​​the​​dollar​ ​value​ ​of​ ​the​ ​transaction.​ ​Collateral​ ​shall​ ​be​ ​held​ ​by​ ​the​ ​District’s​ ​third-party​ ​custodian​ ​bank,​ ​and​ ​the​ ​market​ ​value​ ​of​ ​the​ ​collateral​ ​securities​ ​shall​ ​be​ ​marked-to-the market daily.​¶​ ​¶​ ​Repurchase​ ​Agreements​ ​shall​ ​be​ ​entered​ ​into​ ​only​ ​with​ ​broker/dealers​ ​recognized​ ​as​ ​primary​​dealers​​by​​the​​Federal​​Reserve​​Bank​​of​​New​​York,​​or​​with​​firms​​that​​have​​a​ ​primary​ ​dealer​ ​within​ ​their​ ​holding​ ​company​ ​structure.​ ​Approved​ ​Repurchase​ ​Agreement​​counterparties​​shall​​have​​a​​short-term​​credit​​rating​​of​​at​​least​​A-1​​or​​the​ ​equivalent​ ​and​ ​a​ ​long-term​ ​credit​ ​rating​ ​of​ ​at​ ​least​ ​A​ ​or​ ​the​ ​equivalent​ ​by​ ​a​ ​Nationally​ ​Recognized​ ​Statistical​ ​Rating​ ​Organization​ ​(NRSRO).​ ​Repurchase​ ​agreement​ ​counterparties​ ​shall​ ​execute​ ​a​ ​District​ ​approved​ ​Master​ ​Repurchase​ ​Agreement​ ​with​ ​the​ ​District.​ ​The​ ​Chief​ ​Operations​ ​Officer​ ​shall​ ​maintain​ ​a​ ​copy​​of​ ​the​ ​District’s​ ​approved​ ​Master​ ​Repurchase​ ​Agreement​ ​along​ ​with​ ​a​ ​list​ ​of​ ​broker/dealers who have executed same.​¶​ ​¶​ ​4.​ ​Commercial​​Paper​​with​​an​​original​​maturity​​of​​180​​days​​or​​less​​that​​is​​rated​​at​​least​ ​A1+,​ ​P-1​ ​or​ ​the​ ​equivalent​ ​at​​the​​time​​of​​purchase​​by​​by​​at​​least​​two​​NRSROs​​and​ ​rated​​not​​less​​by​​all​​NRSROs​​that​​rate​​the​​commercial​​paper.​​If​​the​​commercial​​paper​ ​issuer​ ​has​ ​senior​ ​debt​ ​outstanding,​ ​it​ ​must​ ​be​ ​rated​ ​at​ ​least​ ​AA-,​ ​Aa3​ ​or​ ​the​ ​equivalent​ ​at​​the​​time​​of​​purchase​​by​​at​​least​​two​​NRSROs​​and​​rated​​not​​less​​by​​all​ ​NRSROs that rate the issuer.​¶​ ​¶​ ​5.​ ​Non-negotiable​​Certificates​​of​​Deposit​​with​​a​​maturity​​not​​exceeding​​one​​year​​in​​any​ ​FDIC​ ​insured​ ​state​ ​or​ ​national​ ​bank,​ ​or​ ​state​ ​or​ ​federal​ ​savings​ ​bank​ ​located​ ​in​ ​Colorado​ ​that​ ​is​ ​a​ ​state​ ​approved​ ​depository​​per​​C.R.S.​​§​​24-75-603.​​Certificates​​of​ ​deposit​ ​that​ ​exceed​ ​FDIC​ ​insurance​ ​limits​ ​shall​ ​be​ ​collateralized​ ​as​​required​​by​​the​ ​Public​ ​Deposit​ ​Protection​ ​Act​ ​or​ ​the​ ​Savings​ ​and​ ​Loan​ ​Association​ ​Public​ ​Deposit​ ​Protection Act.​¶​ ​¶​ ​6.​ ​Local​​Government​​Investment​​Pools​​authorized​​under​​C.R.S.​​§​​24-75-702​​that:​ ​1)​​are​ ​"no-load"​​(no​​commission​​or​​fee​​shall​​be​​charged​​on​​purchases​​or​​sales​​of​​shares);​​2)​ ​have​ ​a​ ​constant​ ​net​ ​asset​ ​value​ ​of​ ​$1.00​ ​per​ ​share;​ ​3)​ ​limit​ ​assets​ ​of​ ​the​ ​fund​ ​to​ ​those​​securities​​authorized​​by​​state​​statute;​​4)​​have​​a​​maximum​​stated​​maturity​​and​ ​weighted​​average​​maturity​​in​​accordance​​with​​Rule​​2a-7​​of​​the​​Investment​​Company​ ​Act of 1940; and 5) have a rating of AAA or the equivalent by one or more NRSROs.​¶​ ​¶​ ​7.​ ​Money​​Market​​Mutual​​Funds​​registered​​under​​the​​Investment​​Company​​Act​​of​​1940​ ​that:​​1)​​are​​"no-load"​​(no​​commission​​or​​fee​​shall​​be​​charged​​on​​purchases​​or​​sales​ ​of​​shares);​​2)​​have​​a​​constant​​net​​asset​​value​​of​​$1.00​​per​​share;​​3)​​limit​​assets​​of​​the​ ​fund​ ​to​ ​those​ ​securities​ ​authorized​ ​by​ ​state​ ​statute;​ ​4)​ ​have​ ​a​ ​maximum​ ​stated​ ​maturity​ ​and​ ​weighted​ ​average​ ​maturity​ ​in​ ​accordance​ ​with​ ​Rule​ ​2a-7​ ​of​ ​the​ ​Page​​4​​of​​7​

​Investment​ ​Company​ ​Act​​of​​1940;​​and​​5)​​have​​a​​rating​​of​​AAA​​or​​the​​equivalent​​by​ ​one or more NRSROs.​​¶​ ​¶​ ​The​ ​foregoing​ ​list​ ​of​ ​authorized​ ​securities​ ​shall​ ​be​ ​strictly​ ​interpreted.​ ​Any​ ​deviation​ ​from this list must be approved by the Board of Education.​¶​ ​¶​ ​INVESTMENT DIVERSIFICATION​¶​ ​¶​ ​It​​is​​the​​intent​​of​​the​​District​​to​​diversify​​the​​investments​​within​​the​​investment​​portfolio​ ​to​ ​avoid​ ​incurring​ ​unreasonable​ ​risks​​inherent​​in​​over-investing​​in​​specific​​instruments,​ ​individual​ ​financial​ ​institutions​ ​or​ ​maturities.​ ​Nevertheless,​ ​the​ ​asset​ ​allocation​ ​in​ ​the​ ​investment​ ​portfolio​ ​should​ ​be​ ​flexible​ ​depending​ ​upon​ ​the​ ​outlook​ ​for​ ​the​ ​economy,​ ​the securities markets and the District’s anticipated cash flow needs.​¶​ ​¶​ ​INVESTMENT MATURITY AND LIQUIDITY​¶​ ​¶​ ​The​ ​investment​ ​portfolio​ ​shall​ ​remain​ ​sufficiently​ ​liquid​ ​to​ ​meet​ ​all​​cash​​requirements​ ​that​ ​may​ ​be​ ​reasonably​ ​anticipated.​ ​To​ ​the​ ​extent​ ​possible,​ ​investments​ ​shall​ ​be​ ​matched​ ​with​ ​anticipated​ ​cash​ ​flows​ ​and​ ​known​ ​future​​liabilities.​​Investments​​shall​​be​ ​limited to maturities not exceeding five years from the date of trade settlement.​¶​ ​¶​ ​COMPETITIVE TRANSACTIONS​¶​ ​¶​ ​Each​ ​investment​ ​transaction​ ​shall​ ​be​ ​competitively​ ​transacted​ ​with​ ​authorized​ ​broker/dealers.​​At​​least​​three​​broker/dealers​​shall​​be​​contacted​​for​​each​​transaction​​and​ ​their bid and offering prices shall be recorded.​¶​ ​¶​ ​If​ ​the​ ​District​ ​is​ ​offered​ ​a​ ​security​ ​for​ ​which​ ​there​ ​is​ ​no​ ​other​ ​readily​ ​available​ ​competitive​ ​offering,​ ​quotations​ ​for​ ​comparable​ ​or​ ​alternative​ ​securities​ ​will​ ​be​ ​documented.​ ​SELECTION OF BROKER/DEALERS​¶​ ​¶​ ​The​ ​Chief​ ​Operations​ ​Officer​ ​shall​ ​maintain​ ​a​ ​list​ ​of​ ​broker/dealers​ ​approved​ ​for​ ​investment​​purposes,​​and​​it​​shall​​be​​the​​policy​​of​​the​​District​​to​​purchase​​securities​​only​ ​from those authorized firms.​​¶​ ​¶​ ​To be eligible, a firm must meet at least one of the following criteria:​ ​¶​ ​¶​ ​1.​ ​Be​​recognized​​as​​a​​primary​​dealer​​by​​the​​Federal​​Reserve​​Bank​​of​​New​​York​​or​​have​ ​a primary dealer within its holding company structure;​¶​ ​2.​ ​Report voluntarily to the Federal Reserve Bank of New York;​¶​ ​3.​ ​Qualify​​under​​Securities​​and​​Exchange​​Commission​​(SEC)​​Rule​​15c3-1​​(Uniform​​Net​ ​Capital Rule).​¶​ ​¶​ ​Page​​5​​of​​7​

​Broker/dealers​ ​will​ ​be​ ​selected​​by​​the​​Superintendent​​or​​his/her​​designee​​on​​the​​basis​ ​of​ ​their​​expertise​​in​​public​​cash​​management​​and​​their​​ability​​to​​provide​​service​​to​​the​ ​District’s​ ​account.​ ​Each​ ​authorized​ ​broker/dealer​ ​shall​ ​be​ ​required​ ​to​ ​submit​ ​and​ ​annually​ ​update​ ​a​ ​District​ ​approved​ ​Broker/Dealer​ ​Information​ ​Request​ ​Form​ ​that​ ​includes​ ​the​ ​firm's​ ​most​ ​recent​ ​financial​ ​statements.​ ​In​ ​the​ ​event​ ​that​ ​an​ ​external​ ​investment​​advisor​​is​​not​​used​​in​​the​​process​​of​​recommending​​a​​particular​​transaction​ ​in​​the​​District’s​​portfolio,​​any​​authorized​​broker/dealer​​from​​whom​​a​​competitive​​bid​​is​ ​obtained​​for​​the​​transaction​​will​​attest​​in​​writing​​that​​he/she​​has​​received​​and​​reviewed​ ​a copy of this policy.​ ​The​ ​District​ ​may​ ​purchase​ ​commercial​ ​paper​ ​from​ ​direct​ ​issuers​​even​​though​​they​​are​ ​not​​on​​the​​approved​​broker/dealer​​list​​as​​long​​as​​they​​meet​​the​​criteria​​outlined​​in​​item​ ​3. of the Authorized Securities and Transactions section of this Investment Policy.​¶​ ​¶​ ​SAFEKEEPING AND CUSTODY​¶​ ​¶​ ​The​ ​Superintendent​ ​or​ ​his/her​ ​designee​ ​shall​ ​approve​ ​one​ ​or​ ​more​ ​banks​ ​to​ ​provide​ ​safekeeping​ ​and​ ​custodial​ ​services​ ​for​ ​the​ ​District.​ ​A​ ​District​ ​approved​ ​safekeeping​ ​agreement​ ​shall​ ​be​ ​executed​ ​with​ ​each​ ​custodian​ ​bank.​ ​To​ ​be​ ​eligible,​ ​a​ ​financial​ ​institution​​shall​​qualify​​as​​a​​depository​​of​​public​​funds​​in​​Colorado​​as​​defined​​in​​C.R.S.​​§​ ​24-75-603.​¶​ ​The​ ​purchase​ ​and​ ​sale​ ​of​ ​securities​ ​and​ ​repurchase​ ​agreement​ ​transactions​ ​shall​ ​be​ ​settled​​on​​a​​delivery​​versus​​payment​​basis.​​Ownership​​of​​all​​securities​​shall​​be​​perfected​ ​in​ ​the​ ​name​ ​of​​the​​District.​​Sufficient​​evidence​​to​​title​​shall​​be​​consistent​​with​​modern​ ​investment, banking and commercial practices.​¶​ ​¶​ ​All​ ​investment​ ​securities,​ ​except​ ​non-negotiable​ ​Certificates​ ​of​ ​Deposit,​ ​Local​ ​Government​ ​Investment​ ​Pools​ ​and​ ​Money​ ​Market​ ​Mutual​ ​Funds,​ ​purchased​ ​by​ ​the​ ​District​ ​will​ ​be​ ​delivered​ ​by​ ​either​ ​book​ ​entry​ ​or​ ​physical​ ​delivery​ ​and​ ​will​ ​be​ ​held​ ​in​ ​third-party​​safekeeping​​by​​the​​District​​approved​​custodian​​bank,​​its​​correspondent​​bank​ ​or the Depository Trust Company (DTC).​​¶​ ​¶​ ​All​ ​Fed​ ​wireable​ ​book​ ​entry​ ​securities​ ​shall​​be​​evidenced​​by​​a​​safekeeping​​receipt​​or​​a​ ​customer​ ​confirmation​ ​issued​ ​to​ ​the​ ​District​ ​by​ ​the​ ​custodian​ ​bank​ ​stating​ ​that​ ​the​ ​securities​ ​are​ ​held​ ​in​ ​the​ ​Federal​ ​Reserve​ ​system​ ​in​ ​a​ ​Customer​ ​Account​ ​for​ ​the​ ​custodian bank which will name the District as “customer.”​¶​ ​¶​ ​All​​DTC​​eligible​​securities​​shall​​be​​held​​in​​the​​custodian​​bank’s​​Depository​​Trust​​Company​ ​(DTC)​ ​participant​ ​account​ ​and​ ​the​ ​custodian​ ​bank​ ​shall​ ​issue​ ​a​ ​safekeeping​ ​receipt​ ​evidencing that the securities are held for the District as “customer.”​​¶​ ​¶​ ​All​​non-book​​entry​​(physical​​delivery)​​securities​​shall​​be​​held​​by​​the​​custodian​​bank​​or​​its​ ​correspondent​ ​bank​ ​and​ ​the​ ​custodian​ ​bank​ ​shall​ ​provide​ ​evidence​ ​that​​the​​securities​ ​are held for the District as “customer.”​ ​¶​ ​Page​​6​​of​​7​

​The​ ​District’s​ ​custodian​ ​will​ ​be​ ​required​ ​to​ ​furnish​ ​the​ ​District​ ​monthly​ ​reports​ ​of​ ​holdings of custodied securities as well as a report of monthly safekeeping activity.​¶​

​REPORTING​ ​At​ ​the​ ​end​ ​of​ ​each​ ​quarter,​ ​the​ ​Chief​ ​Financial​ ​Officer​ ​shall​ ​submit​ ​to​ ​the​ ​Board​ ​an​ ​investment​ ​report​ ​listing​ ​the​ ​investments​ ​held​ ​by​ ​the​ ​School​ ​District​ ​and​ ​the​ ​current​ ​market​​value​​of​​the​​investments.​​These​​reports​​shall​​be​​formatted​​in​​a​​manner​​that​ ​allows​​the​​Board​​to​​evaluate​​the​​success​​of​​its​​investment​​practices​​in​​light​​of​​its​ ​stated objectives.​ ​POLICY REVISIONS​¶​ ​¶​ ​This​ ​Cash​ ​Management​/​ ​Investment​ ​Policy​ ​shall​ ​be​ ​reviewed​ ​annually​ ​by​ ​the​ ​Superintendent​​or​​his/her​​designee​​and​​may​​be​​amended​​by​​the​​Board​​of​​Education​​as​ ​conditions warrant.​¶​ ​LEGAL REFS.:​ ​C.R.S. §​​11-10.5-101​(Public Deposit Protection Act)​ ​C.R.S.​ ​§​ ​11-47-101​ ​(Savings​ ​and​ ​Loan​ ​Association​ ​Public​ ​Deposit​ ​Protection​ ​Act)​ ​C.R.S. §​​22-45-103​​(bond redemption fund trustee or escrow requirement)​ ​C.R.S. §​​24-75-601​​(public funds - legal investments)​ ​C.R.S. §​​24-75-701​​(investment funds - local government pooling)​

​End of File: DFA​

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