Monroe County Public Library Finance and Investment Policy

Board of Finance

The duly appointed members of the Monroe County Public Library Board of Trustees are the fiscal body of the Library and thus constitute “The Board of Finance”. The members serve without compensation. (IC 5-13-7-5), (IC 36-1-2-6)

Annual Meeting

The Board of Finance shall meet annually immediately following the January Board of Trustees Meeting to elect a president and secretary, review the written report of the Library’s investments during the previous calendar year and review the Library’s investment policy. (IC 5-13-7-6), (IC 5-13-7-7)

Fiscal Officer

The duly elected treasurer of the Board of Finance is the fiscal officer of the Library. (IC 36-12-2-22) The Treasurer shall serve without compensation.

Deposits

All funds received by the Library shall be deposited in one or more designated depositories not later than the business day following receipt and shall be deposited in the same form in which they were received. (IC 5-13-6-1)

Investments

The Treasurer is authorized to invest Library funds in the following (IC 5-13-9);

  1. United States Government Securities or discount notes backed by the full faith and credit of the United States Treasury or fully guaranteed by the United States and issued by:
    1. The United States Treasury;
    2. a federal agency;
    3. federal instrumentality
    4. a federal government sponsored enterprise.
  2. Repurchase Agreements (including standing repurchase agreements, commonly known as sweep accounts):
    1. With depositories designated by the State Board of Finance as depositories for state investments under IC 5-13-9.5; and
    2. Involving the political subdivision’s purchase and guaranteed resale of any interest-bearing obligations issued; or fully insured or guaranteed; by the United States, a United States government agency, an instrumentality of the United States, or a federal government sponsored enterprise.
  3. Money Market Mutual Funds in the form of securities of or interests in an open-end, no-load, management-type investment company or investment trust registered under the provisions of the federal Investment Company Act of 1940, as amended (15 U.S.C. 80a et seq.)  These investments shall be made in depositories designated by state board of finance as depositories under IC 5-13-9.5. 

Investments made by the Library’s fiscal officer must have a stated final maturity of not more than two (2) years after the date of purchase of entry into a repurchase agreement (IC 5-13-9-5.6) except for investments with a final maturity more than (2) years but not more than (5) years which may not exceed 25% of the total portfolio as permitted by (IC 5-13-9-5.7).

Interest Earnings

All interest earnings derived from an investment by the Library’s fiscal officer shall be receipted to the operating fund.

Depositories

All public funds of the Library shall be deposited in the designated depositories located in the territorial limits of the Library District. (IC 5-13-8-9)

Investment Cash Management

The Library Board of Finance may contract with a state designated depository for the operation of an investment cash management system. (IC 5-13-9-4)  Investment decisions and record keeping shall follow IC 5-13-9-4.

Transaction Accounts

The fiscal officer of the Library shall maintain deposits that are invested or reinvested in at least two (2) of the Library’s designated depositories. (IC 5-13-9-4)

Electronic Transfer of Library Funds

The following type of transactions may be conducted by electronic transfer between financial institutions in order to expedite the transfer of funds as well as maximize interest earnings:

  1. Transfer to cover expenditures for payroll for library employees.
  2. Transfer to pay debt service payments.
  3. Other transfers with the approval of the Library director.

The fiscal officer will maintain appropriate documentation of the transactions so these may be audited as required by statute. (IC 36-12-3-16.5)

Approved by the Library Board of Trustees July 17, 2019