policy - umc - el paso | university medical center of el ... · web viewit is the policy of el paso...

EL PASO COUNTY HOSPITAL POLICY: F-11DISTRICT POLICY EFFECTIVE DATE: 04/91

LAST REVISION DATE: 11/164

INVESTMENT

POLICY

It is the policy of El Paso County Hospital District d.b.a. University Medical Center of El Paso (EPCHD) to invest public funds in a manner which will emphasize safety of principal and liquidity; provide the highest investment return with the maximum security while meeting the daily cash flow demands of the EPCHD and conform to all state and local statutes governing the investment of public funds. The EPCHD will be in complete compliance with local law and the Texas Public Funds Investment Act (hereafter, the “Act”). The earnings from the investments will be used in a manner that best serves the public trust and interest of the EPCHD.

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

Safety – Safety and soundness of principal is the foremost objective of the investment program. Investments of the EPCHD shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the EPCHD will diversify its investments by investing funds among a variety of securities that offer independent returns.

Liquidity – The EPCHD’s investment portfolio will remain sufficiently liquid to enable the EPCHD to meet all operating requirements, which might be reasonably anticipated.

Yield – The EPCHD’s Investment Policy shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles commensurate with the EPCHD’s investment risk constraints and the cash flow characteristics of the portfolio.

RESPONSIBLE

Board of ManagersPresident and Chief Executive OfficerChief Financial OfficerFiscal Services

POLICY REFERENCE

CP-42 Conflict of Interest Policy and Certification Form

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DEFINITIONS

Benchmark – A comparative base for measuring the performance or risk tolerance of an investment portfolio. A benchmark should represent a close correlation of the level of risk and the average duration of the portfolio’s investments.

Certificate of Deposit (CD) - also called a time deposit , this is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A CD has a maturity date and a specified interest rate, and can be issued in any denomination. The duration can be up to five years.

Demand Deposits - Checking accounts that pay no interest and from which funds can be withdrawn upon demand.

Delivery Versus Payment - A transaction in which the buyer's payment for securities is due at the time of delivery (usually to a bank acting as agent for the buyer) upon receipt of the securities. The payment may be made by bank wire, check, or direct credit to an account.

Diversification – Dividing investment funds among a variety of securities offering independent returns.

Federal Farm Credit Bank (FFCB) – The Federal Farm Credit Bank System is the oldest of the government sponsored enterprises, created by an Act of Congress in 1916. Its mission is to provide a reliable and low cost source of funds to support agriculture in the United States. FFCB debt obligations are highly liquid and its senior debt is rated AA+.

Federal Home Loan Banks (FHLB) – The Federal Home Loan Bank was created by an act of Congress in 1932 as a system of 12 regional banks that provide funds to its member banks. FHLB’s primary mission is to support residential and community lending. Its membership of more than 8,000 financial institutions includes savings banks, commercial banks, credit unions and insurance companies active in housing finance. FHLB debt obligations are highly liquid and its senior debt is rated is AA+.

Federal Home Loan Mortgage Corporation (Freddie Mac) – Freddie Mac was created by an act of Congress in 1970 as a shareholder-owned company to further expand the secondary market for mortgage loans in the United States. Freddie Mac buys existing mortgages and pools them together to create mortgage backed securities that can then be sold to investors, thereby providing liquidity to lenders who can then make additional loans. Along with Fannie Mae, Freddie Mac was placed into government conservatorship in September 2008 but continues full operations under government

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INVESTMENT

control and has been instrumental in the government’s attempts to revive the housing sector. Freddie Mac securities are highly liquid and its senior debt is rated AA+

Federal National Mortgage Association (Fannie Mae) – Fannie Mae was created by an act of Congress in 1938 under the Federal National Mortgage Association Act to provide a secondary market for mortgage loans in the United States. It does this by purchasing existing home loans and pooling them together to create mortgage backed securities that can then be sold to investors, along with a guaranty of the timely payment of principal and interest on the underlying loans. Fannie Mae was privatized in 1968 and operated as a private stockholder owned company for 40 years before the housing market collapse forced them into federal government conservatorship in September 2008. Fannie Mae debt obligations are highly liquid and its senior debt is rated AA+

Investment Officer – The Chief Financial Officer (CFO) upon designation by the Board of Managers is the person responsible for the investment of EPCHD funds in accordance with this policy.

Investment Official - Any one of the following individuals who, acting under the authority of the Investment Officer, engage in investment transactions: Controller/Director of Fiscal Services, Assistant Controller or Accountant.

No-Load Mutual Fund - An open-end investment company whose shares are sold without a sales charge. There can be other distribution charges, however, such as Article 12B-1 fees. A true no-load fund has neither a sales charge nor a distribution fee.

Overnight Repurchase Agreement - A repurchase agreement with a term of one day.

Rate of Return – The total annualized income, including coupon interest as well as any amortization or accretion expressed as a percentage of original cost.

Repurchase Agreement -An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. Also called a repo, it represents a collateralized short-term loan where the collateral may be a Treasury security, money market instrument, federal agency security, or mortgage-backed security. From the purchaser's (customer's) perspective, the deal is reported as a reverse repo.

Safekeeping – A service typically provided by a bank whereby investment securities are held on behalf of clients in a separate security account by the bank. All securities held in safekeeping should be registered in client name and segregated from the assets of other clients and bank assets.

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INVESTMENT

U.S. Treasury Bills - Debt obligations of the U.S. Treasury with maturities of one year or less. Maturities for T-bills are usually 91 days, 182 days, or 52 weeks.

U.S. Treasury Bonds - Debt obligations of the US Treasury with maturities of 10 years or more.

U.S. Treasury Notes - Debt obligations of the US Treasury with maturities of more than 2 years but less than 10 years.

Yield – The rate of annual income on an investment, expressed as a percentage. The yields expressed in the EPCHD’s investment reports are yield-to-maturity at the time of purchase.

PROCEDURE

A. Investment of the EPCHD’s available funds shall be made within the following guidelines:

1. Scope

This Investment policy applies to all funds of the EPCHD. These funds are accounted for in the Annual Financial Audit report and include the General Fund accounts (Depository Account, Operating Account, Payroll Account, Depreciation Account, Interest and Sinking Account, Flexible Benefits), the Special Purpose Fund accounts, and the Trust and Agency Fund Accounts (Employee Health Benefit, Worker’s Compensation, Professional Liability, Bond Construction and the Agency Trust Account). The EPCHD shall adopt a separate written investment strategy for each of these funds pursuant to section 2256.005(d) of the Texas Government Code. UMC Foundation funds are governed by the separate investment policy adopted by the UMC Foundation Board, which adopts the prudent investor standards of the Uniform Prudent Management of Institutional Funds Act.

2. Prudence

Investments shall be made with judgment and care - based on best information available - 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.

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The standard of prudence to be used by the Investment Officer and investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. The Investment Officer and investment official acting in accordance with written procedures and the Investment ppolicy and exercising due diligence shall be relieved of personal responsibility for changes in an individual security’s credit risk or market price, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

3. Delegation of Authority

Authority to manage the EPCHD’s investment program is derived from the Board of Managers and the President and Chief Executive Officer (CEO). The Board of Managers shall designate by resolution the CFO as the Investment Officer responsible for investment of EPCHD funds. The CFO shall establish written procedures for the operation of the investment program consistent with this Investment policy. Procedures should include reference to: safekeeping, wire transfer agreements, banking service contracts and collateral/ depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. The CFO shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate investment officials.

In the exercise of its powers, the Board of Managers may contract with an investment management firm registered under the Investment Advisers Act of 1940 or with the State Securities Board to provide for the investment and management of its public funds or other funds under its control (the “Investment Advisor”). Such contract will not extend for a term beyond two years and a renewal or extension of the contract will be made by the Board of Managers by order or resolution.

4. Ethics and Conflicts of Interest

Investment Officials involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment officials shall disclose to the CEO and the CFO, any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the

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EPCHD, particularly with regard to the time of purchases and sales.

The CFO, as Investment Officer, shall file a statement disclosing a personal business interest in an entity, when that entity is seeking to sell an investment to the EPCHD. If the CFO is related within the second degree by affinity or consanguinity as determined under Chapter 573 of the Texas Government Code, to an individual seeking to sell an investment to the EPCHD, he/she shall file a statement disclosing the relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the Board of Managers of the EPCHD.

An investment official has a personal business relationship with a business organization if:

a. The officer or employee owns 10 percent or more of the voting stock or shares of the business organization or owns either 10 percent or $5,000 or more of the fair market value of the business organization; or

b. Funds received by the officer or employee from the business organization exceed 2% of his/her gross income for the previous year; or

c. The officer or employee holds an equitable or legal ownership in real property with a fair market value or $2,500 or more; or

d. The officer or employee has acquired from the business organization during the previous year investments with a book value of $2,500 or more for his/her personal account; or

e. The officer or employee is related in the second degree by affinity or consanguinity or affinity to someone who has a substantial interest as outlined in Sections A 4(a) through A 4(d) above.

5. Authorized Financial Dealers and Institutions

Not less than annually, the CFO, as Investment Officer, shall submit to the Board of Managers for approval a list of qualified brokers for investment transactions. The Board of Managers will receive the list 30 days prior to Board approval. The CFO may authorize investment transactions only with brokers that have been approved by the Board of Managers.

The CFO shall maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved

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security broker/dealers selected by credit worthiness who are authorized to provide investment services in the State of Texas. These may include “”Primary Dealers” or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). No public deposit shall be made except in a qualified public depository as established by state laws.

The CFO shall issue to any person seeking to sell to the EPCHD an authorized investment a copy of this Investment policy.

All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the CFO with the following as applicable: audited financial statements, proof of Financial Industry Regulatory Authority (FINRA) certification, trading resolution, proof of state registration, completed broker/dealer questionnaire, and certification of having read the EPCHD’s Investment policy and assurance against imprudent investment activities. The investment officer may not buy any securities from a person or entity who has not delivered to the EPCHD the required certification.

An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO.

A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the EPCHD invests.

If the EPCHD chooses to utilize the services of an Investment Advisor, the Investment Advisor shall assume the EPCHD’s responsibilities by performing required due diligence on the financial institutions with which it conducts business on behalf of the EPCHD. The Investment Advisor will provide a list of authorized broker/dealers to CFO for submission to the Board of Managers for review and approval on an annual basis.

In addition, the Investment Advisor will review this Investment policy annually and certify in writing that it has procedures in place designed to preclude investment activities within the EPCHD account that are either imprudent or in violation of this policy. In the event the Investment Advisor purchases investment instruments from brokers/dealers on behalf of the EPCHD, certifications from each broker are not required provided the Investment Advisor submits the required certification on behalf of itself and the broker/dealers. The Investment Advisor shall provide its recommendations to the Investment Officer prior to the annual review of the Investment policy by the EPCHD.

6. Authorized and Suitable Investments

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The EPCHD chooses to invest primarily in the following securities allowed by the statute, but reserves the right to invest in all authorized investments as provided under the Act:

a. U.S. Treasury Bills, Notes or Bonds,

b. A certificate of deposit (CD) or share certificate is an authorized investment provided the CD is issued by a depository institution that has its main office or a branch office in Texas and is: (1) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; (2) secured by government obligations including U.S. Treasury bills, notes and bonds, and Federal agencies and instrumentalities, including mortgage-backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage-backed securities listed in Section 7 of this as “unauthorized investments”; or (3) secured in any other manner and amount provided by law for deposits of the EPCHD.

In addition, an investment in certificates of deposit made in accordance with the following conditions is an authorized investment if: (1) the funds are invested by the EPCHD through: (A) a broker that has its main office or a branch office in this state and is selected from a list adopted by the EPCHD; or (B) a depository institution that has its main office or a branch office in Texas and that is selected by the EPCHD; (2) the broker or the depository institution arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the EPCHD; (3) the full amount of the principal and accrued interest of each CD is insured by the United States or an instrumentality of the United States; and (4) the EPCHD appoints the depository institution, an entity described by Section 2257.041(d) of the Texas Public Funds Collateral Act, or a clearing broker-dealer registered with the Securities and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for the EPCHD with respect to the certificates of deposit.

c. Repurchase Agreements. Agreements must have a defined termination date and be fully collateralized by a combination of cash and obligations described by section 2256.009(a)(1) of the Public Funds Investment Act. In addition, all collateral securities must be pledged to the EPCHD, held in the EPCHD’s name, and deposited at the time the investment is made with the EPCHD’s

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safekeeping agent or with an approved third-party custodian. Agreement counter-parties must be limited to primary government securities dealers, or financial institutions doing business in Texas. All repurchase agreements shall be governed by Master Repurchase Agreement signed by both the EPCHD and the trade counter-party.

d. U.S. Agency and Instrumentality Securities. This authorization includes, but is not limited to, coupon-bearing debentures and discount notes of the following agencies: Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Company (FHLMC), Federal Farm Credit Bank (FFCB) .

e. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of Texas or the United States, or their respective agencies and instrumentalities, including any investment or deposit account insured by the Federal Deposit Insurance Corporation (FDIC).

f. Municipal debt, including obligations of U.S. states, agencies, counties, cities, and other political subdivisions, with a minimum short term commercial paper rating of A1 P1 or equivalent, or a long term bond rating of not less than AA or its equivalent.

g. No-load Money Market Mutual Funds with underlying portfolios limited to securities listed in this section. Permitted funds must be registered with the SEC, have a dollar-weighted average stated maturity of 60 days or less, and include in its investment objectives the maintenance of a stable $1.00 net asset value per each share. All qualified funds must supply the EPCHD with a prospectus and other information required by the Securities Exchange Act of 1934 or the Investment Company Act of 1940.

h. Public funds investment pools meeting the requirements of Government Code 2256.016 and 2256.019, if the Board authorizes investment in each particular pool by resolution.

[i.] Prime Commercial Paper (CP). Permitted CP investments must have a stated

maturity of 270 days or less from the date of issuance and must be rated not less than A-1 or P-1, or an equivalent rating by at least two nationally recognized credit rating agencies. In addition, the total percentage ownership in any single CP issuer may not exceed 5% of the EPCHD portfolio value at the time of purchase, while the total CP allocation at purchase may not exceed 2030% of the total portfolio value.

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Scott McIntyre (HTS), 06/29/16,

Increase max percentage allocation to Prime commercial paper from 20% to 30% while retaining 5% per issuer limit. This change is intended to increase earnings and provide additional investment choices.



INVESTMENT

All have specific requirements and/or restrictions contained in the law; the EPCHD will follow those requirements/restrictions when investing funds.

7. Unauthorized Investments

a. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pay no principal.

b. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest.

c. Collateralized mortgage obligations that have a stated final maturity date of greater than 10 years.

d. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index.

8. Diversification

EPCHD investments shall be diversified by limiting concentration of specific security types and issuers and by staggering maturity dates of specific investments. With the exception of collateralized bank deposits, U.S. Treasury securities and fully collateralized flexible repurchase agreements related to specific bond issues, investment in any single issuer or financial institution shall be limited to 30% of the total portfolio. In the event that commercial paper, bankers’ acceptances and municipal debt are authorized by policy in the future, they shall be subject to a more restrictive 5% issuer limitation due to higher perceived credit risk.

9. Collateralization

Collateralization will be required on the following investments: cash deposits, certificates of deposit and repurchase (and reverse) agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest.

The EPCHD chooses to limit collateral to the following:

Cash, U.S. Treasury and Agency Securities.

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Collateral will always be held by an independent third-party with whom the EPCHD has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the EPCHD and retained.

Release or substitution of collateral securities by repurchase agreement counter-parties is generally acceptable and will be outlined within the specific terms of the repurchase agreements themselves. An independent third-party safekeeping agent is responsible for assuring that any collateral substitution meets the terms of the signed custodial agreement and that the collateral value in the EPCHD account adheres to the terms of the repurchase agreement. In the case of depository collateral, the depository bank is required to notify the EPCHD CFO in writing and gain written approval from the CFO prior to substitution.

10. Safekeeping And Settlement Of Transactions

All security transactions, including delivered collateral for repurchase agreements, but excluding investment pool and mutual funds, shall be settled on a delivery - versus - payment (DVP) basis. By doing this, EPCHD funds are not released until the EPCHD has received, through the Federal Reserve wire, the securities purchased. Following each transaction, a clearly marked evidence of ownership, e.g., safekeeping receipt, must be supplied to the EPCHD and retained for audit purposes. All purchased securities shall be held by a third-party safekeeping agent approved by the EPCHD. Evidence of ownership in the form of a monthly safekeeping report shall be supplied by the safekeeping agent and reconciled on a monthly basis to internal investment reports.

11. Maximum Maturities

a. Maximum Allowable Stated Maturity

To the extent possible, the EPCHD will attempt to match its investments with anticipated cash flow requirements. In general, unless matched to a specific cash flow, the EPCHD will not directly invest in securities maturing more than five (5) years from the date of purchase. There are exceptions to this, which are listed below. It is expected that the following guidelines for specific accounts/securities will be followed:

1) General Fund Accounts and Special Purpose Accounts, as defined above, will be invested in securities maturing not more than 12 months from the date of purchase.

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2) Reserve funds, Trust and Agency Fund Accounts may be invested in securities exceeding five (5) years. Specifically, reserve funds may be invested in securities exceeding five (5) years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. In the case of Trust and Agency Fund Accounts, as defined above, these may be invested in securities maturing no more than seven (7) years from the date of purchase.

3) The EPCHD may collateralize the cash deposits, certificates of deposit and repurchase agreements using longer-dated investments not to exceed 30 years to maturity.

b. Maximum Dollar Weighted Average Maturity for Pooled Fund Groups

The maximum weighted-average maturity of the EPCHD portfolio, excluding longer-term tobacco funds, shall be limited to 365 days. Limiting the average maturity of the portfolio is intended to reduce market exposure and increase liquidity.

12. Financial And Compliance Audits

The CFO shall establish an annual process of independent review by an external auditor. This review will evaluate the internal control by assuring compliance with policies and procedures. The EPCHD requires quarterly market valuation reports from all institutions holding securities and investments for the EPCHD.

13. Yield And Maturity

The EPCHD has selected weighted-average yield-to-maturity at cost as its preferred measure of investment performance. This shall be calculated on a monthly basis by multiplying each individual security yield-to-maturity at time of purchase by its adjusted book value, totaling the product of these calculations and dividing by the total adjusted book value of the portfolio.

The EPCHD shall regularly compare its investment performance to appropriate benchmarks, which reflect similar risk and maturity characteristics as well as to current liquidity options. Thus, performance benchmarks shall include, but not be limited to, 3-, 6- and 12-month Constant Maturity Treasury (CMT) indexes as well as the TexPool local government investment pool.

14. Reporting

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The CFO is charged with the responsibility of including a market report on investment activity and returns in the EPCHD’s Financial Report. Not less than quarterly, the CFO shall prepare and submit to the Board of Managers a written report of investment transactions for all funds covered by the Public Funds Investment Act. This report shall be presented to the Board not less than quarterly, within a reasonable time after the end of the period.

The report must contain or address the following:

a. Contain a detailed description of the investment position of the EPCHD on the date of the report.

b. Be prepared jointly and signed by all EPCHD investment officers.

c. Contain a summary statement for each pooled fund group (i.e. each internally created fund in which one or more accounts are combined for investing purposes).

d. The report must be prepared in compliance with generally accepted accounting principles and must state:

1) Ending book value for the reporting period

2) Ending market value for the period

3) Fully accrued interest for the period

4) Book value and market value of each separately invested asset at the end of the reporting period by the type of asset and fund type invested.

5) Maturity date of each separately invested asset that has a maturity date.

6) The account or fund or pooled group fund in the EPCHD for which each individual investment was acquired.

7) The compliance of the investment portfolio of the EPCHD as it relates to the EPCHD’s investment strategy expressed in the EPCHD’s Investment policy and relevant provisions of law.

If the EPCHD invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, an

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independent auditor shall formally review the reports at least annually, and that auditor shall report the result of the review to the Board.

15. Investment Policy Adoption

The EPCHD’s Investment policy and investment strategies shall be adopted by resolution of the EPCHD Board of Managers annually, after review by the Finance Committee. The resolution shall state that the Board of Managers has reviewed the Investment policy and investment strategies and that the written instrument so adopted shall record any changes made to either the Investment policy or investment strategies.

Finance Committee members and management (CEO, CFO, Corporate Controller and Assistant Controller) are members of the Investment Ad-Hoc Committee. The Committee, which meets as necessary quarterly,to reviews the investment portfolio performance with the Investment Advisor and discusses future investment strategies.

16. Training

The CFO shall attend at least one training session relating to the CFO’s responsibilities under this policy within 12 months after taking office or assuming duties, and receive not less than 10 hours of additional instruction every two year period beginning on the first day of the fiscal year and consisting of two consecutive fiscal years after that date. The training provider must be an independent source approved by the Board. Investment training shall include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance within the Government Code, Chapter 2256.

17. Monitoring of Market Prices

The portfolio shall be valued, at a minimum, on a quarterly basis. Market prices for securities may be provided by an Investment Advisor, or any independent market-pricing source including, but not limited to, Bloomberg, the Wall Street Journal or any broker/dealer that is not responsible for selling the security being priced to the EPCHD. Rating changes will be monitored as required by law.

B. Investment Procedure

1. General Fund accounts and Special Purpose accounts, as identified above, are generally funds that need high liquidity, therefore the investments will be of a

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very short-term nature and the investment officers will be highly involved in the investment decisions.

a. The available securities will usually be U.S. Treasury Bills government obligations, with maturity dates of less than 12 months, Money Market Funds or overnight Repurchase Agreements. This investment decision is limited to the following EPCHD positions: CFO or Controller/Director of Fiscal Services.

b. The funds available and the expected needs for funds will be evaluated for each account daily. If there are excess funds available in the accounts, they will be invested in the Money Market Account associated with each Demand Deposit Account (DDA). This investment decision is limited to the following investment officials: CFO, Controller/Director of Fiscal Services, Assistant Controller, or Staff Accountant.

c. It is advised that the funding available in the Money Market Account, associated with each DDA, equal the cash needed for three to four weeks of operations.

d. The investing institution shall provide the EPCHD with daily receipts and monthly statements for each transaction to ensure proper accounting in the EPCHD records. This should also include confirmation of any purchases of U.S. Treasury Bills.

e. Wire transfers will be authorized by the CFO or Controller/Director of Fiscal Services as necessary to conduct an immediate transaction.

f. When investing in Certificates of Deposit (CD’s);, bids may be solicited in any of the following manners: orally, in writing or electronically or in any combination of these methods.

2. The Trust and Agency Fund Accounts, as identified above (Section A-1: SCOPE), for the EPCHD are more long term in nature.

a. The Investment Ad Hoc Committee will provide guidelines and recommendations for future investments as current investments mature based on future estimated cash flows.

b. The resolutions approved by the Board will be followed for investing funds. Copies of these resolutions are maintained in the Office of the CFO.

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Scott McIntyre (HTS), 06/29/16,

Amending Treasury bills to government obligations provides enhanced investment supply.



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El Paso County Hospital DistrictPolicy and Procedure Committee

Chairperson

Date

President and Chief Executive Officer Date

Board of Managers Chairperson Date

Review/Revision History: Policy & ProcedureCommittee

LegalReview

AdministrativeTeam

Board of Managers

11/95 01/96 10/14 08/0203/97 03/97 12/0312/98 12/98 03/0509/02 08/02 10/0611/03 10/03 02/0805/05 02/05 03/1009/06 08/06 11/1001/08 01/08 06/1202/10 11/09 11/1410/10 10/1003/12 03/1210/14 09/1411/16 11/16

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