Investment Income

I. Policy Title Investment Income

II. Who Does This Policy Affect

Board of Trustees and all employees

III. Purpose

To earn interest for College Operations

IV. Policy Statement

The Board of Trustees authorizes the President to make investments of available monies from the several funds of the College in accordance with the Community College Act of 1966, Section 389.421 in:

A. Bonds, bills, or notes of the United States; obligations, the principal and interest of which are fully guaranteed by the United States; or obligations of the state;
B. Certificates of Deposit issued by financial institutions organized and authorized to operate in this state;
C. Commercial paper rated prime at the time of purchase and maturing not more than 270 days after the date of purchase;
D. Governmental Investment pools;
E. Bankers Acceptances;
F. Securities issued or guaranteed by agencies or instrumentalities of the U.S. government;
G. U.S. government or federal agency obligation repurchase agreements; and
H. Mutual funds composed entirely of investment vehicles that are legal for direct investment by a district.

Money in the several funds of the College shall not be commingled for the purpose of making an investment authorized by Section 380.1223 of the Revised School Code. The Board, however, may establish and maintain one common debt retirement fund for bond issues of like character.

Earnings on an investment shall become a part of the College’s General Fund. fund from which the investment was made.

V. Definitions

N/A

VI. Responsible Party for Policy Interpretation/Review

President of the College
Vice President of Finance

VII. Related Documents

MCL 380.1223
Michigan Legislature - Section 380.1223

VIII. Policy History:
a. Adopted by Board: February 20, 1995
b. Previous Policy Section Finance; Previous Policy No.2250

Reviewed/Updated

April 15, 2024 - changes approved by Board

This policy supersedes and replaces any and all policies related to this subject