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It is the general policy of the Provincetown Housing Authority to maximize the interest income earned on investments of excess funds. This necessitates the tool of a forecast of funds needed to operate and a strategy for making investments.
1. Forecast:
To enable the timely investment of funds, the Fiscal Department Supervisor is responsible for developing a forecast of the cash that must be on hand for a period of ninety days.
This forecast will take into consideration the estimated receipts and expenditures for the quarter being forecasted.
This forecast will be reviewed by the Executive Director and the Fiscal Department Supervisor in the implementation of the investment strategy.
2. Investment Strategy:
The types of investments made by the Housing Authority will be limited to those approved by the U.S. Department of Housing and Urban Development and the Executive Office of Communities and Development. The determination of the type of investment made is dependent on the limitation of risk, the maximization of the yield, extent of liquidity, and the time of maturity.
Whatever type of investment is used, the Authority shall require their depositaries to continuously and fully secure all deposits – regular, savings, and time, in excess of the amount insured, by the pledging or setting aside of collateral of the types and in the manner as is prescribed by State law for the security of public funds. such collateral shall at all times be of a market value at least equal to the amount of the deposits so secured.
The primary objective in considering these factors is to obtain the optimum return on the investment consistent with the goals of the Housing Authority’s cash management program.
Within the ninety day period of the forecast, the Executive Director will on a monthly basis, invest any money not necessary for the thirty-day operation of the project. The Fiscal Department Supervisor will be responsible for the monitoring of the maturity dates on a timely basis so that there is no lapse of time from the maturity date to the next investment.
APPROVED BY BOARD:
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Signature Date