D-12: Investment of College Funds

Adoption Date: 10/19/92  |  Revision Date: 06/16/03  |  Review Date: 09/23/08 | Revision Date: 12/04/18

College funds which are deemed by the College treasurer or designee to be in excess of current operating cash needs shall be invested in a manner which utilizes prudent discretion in the stewardship of public funds. Such investments shall be in accordance with the Public Funds Investment Act of the State of Illinois and this policy.

Funds available for investment purposes must meet the following criteria:

  1. Funds may be invested in any of the following categories:
    1. Bonds, notes, certificates of indebtedness, treasury bills, or other securities which are either direct obligations of the United States of America or its agencies or are guaranteed by the full faith and credit of the United States of America as to principal and interest;
    2. Certificates of deposit, money market accounts, time deposits, or savings accounts only with banks or savings and loan associations which are insured by either the FDIC (Federal Deposit Insurance Corporation) or FSLIC (Federal Savings and Loan Insurance Corporation);
    3. Short-term obligations of corporations organized in the United States subject to the following requirements:
      1. Assets of companies must exceed $500,000,000;
      2. The investment be rated at the time of purchase at one of the three highest classifications established by at least two standard rating services; 
      3. Investments must mature no later than one hundred eighty (180) days of the date of purchase;
      4. Investments cannot exceed ten per cent (10%) of a corporation's outstanding obligations; and
      5. Not more than one-third (1/3) of College-invested funds may be invested in such obligations; or
    4. Mutual funds that invest in investment grade or global government short term bonds. Such mutual funds must have assets of at least $100 million, must be rated in one of the ten highest classifications established by a recognized rating service and must be in instruments identified in A-1 above. The fund must also be approved by the College’s Board of Trustees. No more than 10% of the College’s investment portfolio can be invested in such funds.
  2. Uninsured investments or those not guaranteed by the United States Government shall be collatorized with securities identified in Section A-1, above. Securities shall have a market value of not less than one hundred ten per cent (110%) of the amount of funds secured.
  3. The total of deposits at any one financial institution may not exceed seventy-five per cent (75%) of the capital stock and surplus of that institution.
  4. All in-district banks and savings and loan associations which are insured by the FDIC or FSLIC are designated as depositories by this policy. Out-of-district banks will be used only when separately designated by the Board of Trustees. College funds may also be invested with the Illinois Funds, the Illinois Liquid Asset Fund Plus, PMA Financial Network, Incorporated, Morgan Stanley, Illinois Institutional Investors Trust and Fixed Income Investment Program provided that they comply with the statutes governing the investment of public funds.
  5. The College treasurer or designee shall not:
    1. Have any interest directly or indirectly in any investment in which the College is authorized to invest;
    2. Have any interest directly or indirectly in the sellers, sponsors, or managers of those investments; or
    3. Receive in any manner compensation of any kind from any investments in which the College is authorized to invest.