Policy No.: 6040 Board Approved: October 24, 1995 Revised: September 15, 2020
Hagerstown Community College Investment Policy
1.0 Policy Statement The purpose of the investment policy is to establish guidelines that will govern Hagerstown Community College when investing public funds. All funds will be invested in a manner which will yield the greatest return with maximum security while meeting the daily cash flow needs of the College. This policy will conform to all State and local statutes governing the investment of public funds. In accordance with Senate Bill 86, Hagerstown Community College will not borrow funds for the express purpose of investing those funds. 2.0 Scope and Strategy This investment policy applies to all financial assets of Hagerstown Community College. These funds are accounted for in the College’s Comprehensive Annual Financial Statements and include:
• Current Unrestricted Funds • Current Restricted Funds • Agency Funds • Plant Funds • Auxiliary Services Funds • Independent Operations Funds 3.0 Prudence
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. The standard of prudence to be used by the investment officials shall be the “Prudent Person Rule” and shall be applied in the context of managing the overall portfolio. Investment officials acting in accordance with written procedures and the investment policy shall be relieved of personal liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and action is taken to control possible adverse developments.
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