Guidelines for Deposit and Investment of College Monies
- College funds may be deposited or invested by the Office of the Executive Vice President for Business in demand accounts, negotiable certificates of deposit, saving accounts, or other interest-earning deposit accounts of a bank that is a member of the Federal Deposit Insurance Corporation or a savings and loan association that is a member of the Federal Savings and Loan Insurance Corporation. Deposits should be limited in any given financial institution to no more than 50 percent of the capitalization value of the institution. Deposits in any individual institution are subject to an upper limit of $19,700,000. The forgoing dollar limit shall not include funds that are subject to daily withdrawal.
- No deposits or investments will be made in "suspect" institutions. "Suspect" is defined as the condition when an institution may be undercapitalized or overextended. In most cases, this determination can be made by review of the annual financial statement or last report of examination by regulatory agencies.
- Because of the fiduciary role in handling of public funds, it is important that paramount consideration be given to those financial institutions (except "suspect" institutions) that will provide to the College the greatest financial return.
- When all things are equal, banking institutions physically located in Macomb County should be given preference.
- Whenever unusual deposits or investments are to be made, the Executive Vice President for Business will consult with the College President and the Chairperson and Treasurer of the Board of Trustees.
- The College funds may also be invested by the Office of the Executive Vice President for Business in bonds, bills, or notes of the United States or of an agency or instrumentality of the United States or obligations of this state.
- Also, funds may be invested by the Office of the Executive Vice President for Business in commercial paper that is supported by an irrevocable letter of credit issued by a bank that is a member of the Federal Deposit Insurance Corporation and commercial paper of corporations located in Michigan rated prime by at least one of the standard rating services. In addition, the investment in any single issuer should not exceed $19,700,000 at any one time.
- Also, funds may be invested by the Office of the Executive Vice President for Business in mutual funds, trusts, or investment pools composed entirely of instruments that are issued by the United States or of an agency or instrumentality of the United States or obligations of this state.
- Periodic reports will be submitted to the Board of Trustees so it can be determined that the guidelines prescribed here are observed.
- The dollar limitation of this policy shall be adjusted annually using the United States Consumer Price Index for all urban consumers. The change from year to year will be measured by the change in the annual average as reported by the State Treasurer.
Approved by the Board of Trustees
Macomb Community College
December 20, 1988
Updated pursuant to Board authorization (1/24)