FILE: DFL

The School Board, in accordance with statutory provisions, may invest any funds which are available for investment and are above the immediate cash requirements of the Board, from whatever source derived, in statutorily sanctioned investments. Types of investments include Direct U.S. Treasury obligations, bonds, debentures, notes issued by or guaranteed by federal agencies, or certificates, or time certificates of deposit in any bank domiciled or having a branch office in Louisiana or any other federally insured investment. The interest earned on any such investment shall be credited to the fund from which the investment was made.

The Board shall authorize its President and Superintendent, as treasurer, to invest any surplus funds in whatever type deposit that will offer the Board the most favorable rates of interest.

Investments of the Board shall be guided by the following:

1. Cash management and investment activities shall be conducted in a manner consistent with prudent business practices applied by governmental entities and shall be in compliance with applicable statutes.

2. Funds as determined by the chief financial officer to be in excess of immediate cash requirement shall be invested only in statutorily permitted obligations.

3. Appropriate emphasis in making any investment shall be as follows:

a) First priority shall be to ensure safety of the principal amount.

b) Second priority shall be ensure liquidity of funds to meet all obligations of the Board. 

c) Third priority shall be the yield of the investments.

In no event shall monies be considered available for investment unless and until such funds are determined by the Superintendent or chief financial officer, in the exercise of prudent judgement, to be in excess of the immediate cash requirements of the fund to which the monies are credited. As a criteria in making such a determination, any amount of money exceeding ten thousand dollars which is on demand deposit to the credit of the School Board, or to the credit of any fund and which is not required to meet an obligation for at least forty-five (45) days, or any amount of money exceeding one hundred thousand dollars which is on demand to the credit of the School Board or to the credit of any fund and which is not required to meet an obligation for at least fifteen (15) days shall be construed available for investment.

Ref: La. Rev. Stat. Ann. §§17:99, 33:2955, 39:1271.