(A) Investment of public funds by the village shall be governed by a written investment policy adopted by the village. The level of detail and complexity of the investment policy shall be appropriate to the nature of the funds, the purpose for the funds and the amount of the public funds within the investment portfolio. The policy shall address safety of principal, liquidity of funds and return on investment and shall require that the investment portfolio be structured in such manner as to provide sufficient liquidity to pay obligations as they come due. In addition, the investment policy shall include or address the following:
(1) A listing of authorized investments;
(2) A rule, such as the “prudent person rule,” establishing the standard of care that must be maintained by the persons investing the public funds;
(3) Investment guidelines that are appropriate to the nature of the funds, the purpose for the funds and the amount of the public funds within the investment portfolio;
(4) A policy regarding diversification of the investment portfolio that is appropriate to the nature of the funds, the purpose for the funds and the amount of the public funds within the investment portfolio;
(5) Guidelines regarding collateral requirements, if any, for the deposit of public funds in a financial institution made pursuant to this subchapter, and, if applicable, guidelines for contractual arrangements for the custody and safekeeping of that collateral;
(6) A policy regarding the establishment of a system of internal controls and written operational procedures designed to prevent losses of funds that might arise from fraud, employee error, misrepresentation by third parties or imprudent actions by employees of the entity;
(7) Identify that the Village Comptroller is responsible for establishing the internal controls and written procedures for the operation of the investment program;
(8) Performance measures that are appropriate to the nature of the funds, the purpose for the funds and the amount of the public funds within the investment portfolio;
(9) A policy regarding appropriate periodic review of the investment portfolio, its effectiveness in meeting the village’s needs for safety, liquidity, rate of return and diversification and its general performance;
(10) A policy establishing at least quarterly written reports of investment activities by the Village Comptroller for submission to the Village Board and President of the Village. The reports shall include information regarding securities in the portfolio by class or type, book value, income earned and market value as of the report date;
(11) A policy regarding the selection of investment advisors, money managers and financial institutions; and
(12) A policy regarding ethics and conflicts of interest.
(B) The investment policy shall be adopted by the Village Board.
(C) The investment policy shall be made available to the public at the main administrative office of the village.
(Ord. 01-25, passed 8-22-01)