Hillsdale Housing Commission
45 N. West Street � Hillsdale, MI  49242
Phone: (517) 439-1210 � Fax: (517) 439-9577 � E-mail: mail@hillsdalehousing.org

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It is the policy of the Hillsdale Housing Commission to invest its funds in a manner which will provide the highest investment return will the maximum security while meeting the daily cash flow needs of the Hillsdale Housing Commission and comply with all state statutes governing the investment of public funds.

An investment register shall be maintained to record the purchase and sale of investment securities. A separate record shall be maintained for each fund account. At a minimum, the record shall contain the following:

A. A complete description of the securities purchased
B. The date of purchase
C. The purchase price
D. The interest rate
E. The amount of periodic increment of value of US Savings Bonds, if applicable
F. The date of sale
G. Source of funds invested

Interest earned shall be credited when actually received or credited to the account.

This investment policy applies to all financial assets of the Hillsdale Housing Commission. The assets are accounted for in the various funds of the Hillsdale Housing Commission and include the general operating account, special revenue funds, debt service funds, capital project funds, enterprise funds, internal service funds, trust and agency funds and any fund established by the Hillsdale Housing Commission.

The primary objectives, in priority order, of the Hillsdale Housing Commission’s investment activities shall be:

Safety

Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio.

Diversification

The investments will be diversified by security type and institution in order that potential loss of individual securities do not exceed the income generated from the remainder of the portfolio.

Liquidity

The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

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 characteristics of the portfolio.

Authority to manage the investment program is hereby delegated to the Executive Director, who shall establish written procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, collateral/depository agreements and banking service contracts and provide for dual signatures for all expenditures, one of which must be a member of the Hillsdale Housing Commission. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Hillsdale Housing Commission. The Executive Director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.

The Hillsdale Housing Commission is limited to investments authorized by Act 20 of 1943, as amended. Unless otherwise authorized by the Hillsdale Housing Commission, all investments will be authorized by formal board resolution. Unless otherwise authorized by the Hillsdale Housing Commission, investments will be limited to FDIC insured accounts or in direct obligations of the U.S. Treasury.

All security transactions, including collateral for repurchase agreements and financial institution deposits, entered into by the Hillsdale Housing Commission shall be on a cash (or delivery vs. payment) basis. Securities may be held by a third party custodian designated by the Executive Director and evidenced by safekeeping receipts as determined by the Executive Director.

Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

45 N. West Street � Hillsdale, MI 49242

Phone: (517) 439-1210 � Fax: (517) 439-9577 � E-mail: hhc@core.com

I have read and fully understand Act 20 PA 1943, as amended, and the Investment Policy of the Hillsdale Housing Commission.

Any investment advice or recommendation given by _____________________________, representing _______________________________, to the Hillsdale Housing Commission shall comply with the requirements of Act 20 PA 1943, as amended, and the Investment policy of the Hillsdale Housing Commission. Any existing investment not conforming with the statute or the policy will be disclosed promptly.