Current through Register Vol. 18, September 20, 2024
(1) For purposes of
this rule, "investment pool" is defined as a unified investment program
established under
20-9-213(4),
MCA, by a Montana school district and one or more other school districts or
other local governmental entities. "Investment pool" does not include an
investment program hosted by the county as a countywide investment pool or a
school district investment account established under
20-9-235,
MCA.
(2) A school district
participating in an investment pool shall enter into a written agreement with
other participants, including one or more other school districts or local
governments involved in the program. In addition to terms required by
7-11-105,
MCA, the agreement must state:
(a) the manner
in which participants will share gains, losses, interest distributions and
fees;
(b) that only the types of
investments allowed by
20-9-213(4),
7-6-202,
and
7-6-213,
MCA, will be purchased;
(c) the
procedures for dissolving the pool and distributing the ending balance to
participants;
(d) the details
specific to procedures necessary when more than one county treasurer is
involved in funds combined in the investment pool;
(e) the party authorized to direct the
purchase and redemption of investments (i.e. a representative of the host
entity, investment pool committee or board, school district official, etc.);
and
(f) that all elected officials,
school district employees, and investment pool employees with duties related to
the investment pool must be bonded.
(i) The
bond may cover an individual or a blanket bond of the investment pool may cover
all elected officials and employees or any combination.
(ii) The investment pool participants shall
determine the amount for which an elected official or employee shall be bonded
based on the amount of money or property handled and the opportunity for
defalcation.
(3) Before participating in an investment
pool a school district must have written documentation that the investment firm
or entity contracted to administer the pool:
(a) complies with
20-9-204,
MCA, Article VIII, section 13, Montana Constitution, and is qualified and
competent to provide investment services to the school districts;
(b) is either the state Board of Investments
or an investment firm that is either registered with or has filed notice with
the State Auditor under the provisions of Title 30, chapter 10, MCA;
(c) acquires pledged securities in the same
manner and amount as required in
7-6-202
and
7-6-213,
MCA, for investments which are not guaranteed or uninsured investments;
and
(d) provides each investment
pool participant and associated county treasurer with a monthly report
detailing:
(i) investment and redemption
dates;
(ii) investment and
redemption amounts, by school district fund;
(iii) fees charged for administering the
investment pool;
(iv) the amount of
interest accrued, reinvested and distributed, by fund;
(v) the balance of the district's
investments, by fund; and
(vi) at
fiscal year-end, the amount of interest accrued as of June 30 and the fair
value of the district's share of pooled investments as of June 30 as prescribed
by governmental accounting standards board (GASB) No. 31.
(4) A school district
participating in an investment pool shall reconcile the district's records of
investment balances and interest income to the county treasurer's reports and
the investment firm's reports each month.
(5) When directed by a school district
participating in an investment pool, a county treasurer shall invest the
district's money within three days in an investment pool by issuing a
treasurer's check, warrant, or wire transfer of funds to the state Board of
Investments or investment firm that has registered or filed notice with the
State Auditor administering the investment pool.
(a) When directing investments, the school
district must provide written notification to the county treasurer stating the
amount to invest and the fund making the investment.
(b) A school district shall not purchase
investments using district warrants.
(6) A school district will direct the
investment firm that has registered or filed notice with the State Auditor or
State Board of Investments to deposit redeemed investments and interest income
with the county treasurer, to the credit of the specific and appropriate school
district fund.
(a) The school district will
require that the investment firm or State Board of Investments informs the
county treasurer in writing stating the funds to which the proceeds should be
deposited and the amount of the interest earnings and principal contained in
the proceeds.
(b) The school
district shall not pay operating expenses from an investment pool without first
returning the funds to the county treasurer. Operating expenses include but are
not limited to salaries, service or construction contracts, and supplies and
equipment.
(7) Each
school district participating in an investment pool will monitor its cash
balances maintained with the county treasurer and will promptly redeem
investments to pay district warrants and bond principal and interest in a
timely manner.
20-9-102,
20-9-201;
MCA; IMP,
20-9-212,
MCA;
