[HISTORY: Adopted by the Suffolk County Legislature 5-16-2006 by Res. No.
387-2006 (Ch. 658 of the 1985 Code). Amendments
noted where applicable.]
This investment policy applies to all monies and other financial
resources available for investment by Suffolk County on its own behalf.
The primary objectives of the local government's investment
activities are, in priority order:
[Amended 6-17-2014 by L.L. No. 32-2014]
The Suffolk County Legislature's responsibility for administration
of the investment program is delegated to the Suffolk County Comptroller
as set forth by the County Charter, Article V, establishing the Department
of Audit and Control, the head of which shall be the County Comptroller.
The Charter states that the County Comptroller shall receive and have
custody of all public funds belonging to or handled by the County.
The County shall have a written investment policy which shall include
procedures for adequate internal control which provide a satisfactory
level of accountability based on records incorporating description
and amounts of investments, transaction dates, and other relevant
information and regulate the activities of subordinate employees.
A.
All participants in the investment process shall seek to act responsibly
as custodians of the public trust and shall avoid any transaction
or perception that might impair public confidence in Suffolk County
to govern effectively.
B.
Investments shall at all times be made with judgment and care, under
circumstances then prevailing, which persons of prudence, discretion
and intelligence exercise in the management of their own affairs,
not for speculation, but for investment, considering the safety of
the principal as well as the probable income to be derived.
C.
All participants 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.
It is the policy of Suffolk County to diversify its deposits
and investments by financial institution, by investment instrument,
and by maturity scheduling.
[Amended 6-17-2014 by L.L. No. 32-2014]
A.
It is the policy of Suffolk County for all monies collected by any
officer or employee of Suffolk County to transfer those funds to the
Comptroller within 10 days after the end of the month, or within the
time specified by law, whichever is shorter.
B.
Pursuant to Resolution No. 1054 of 1983 and Resolution No. 15 of
1986, County departments are to deposit all income into interest-bearing
accounts. Standard Operating Procedure D-08, dated October 21, 1992,
directs departments to prepare and submit monthly SCIN Form 212 to
the County Comptroller indicating the balance in each bank account.
C.
The Comptroller is responsible for establishing and maintaining an
internal control structure to provide reasonable assurance that deposits
and investments are safeguarded against loss from unauthorized use
or disposition, that transactions are executed in accordance with
management's authorization and recorded properly, and are always
managed in compliance with applicable laws and regulations.
[Amended 9-15-2011 by L.L. No. 49-2011; 9-9-2014 by Res. No.
690-2014]
A.
The banks and trust companies authorized for the deposit of County
monies are designated each year at the organizational meeting of the
Suffolk County Legislature.
B.
The banks and trust companies authorized for the deposit of County
monies are hereby authorized to arrange for the redeposit of the County's
monies in one or more banking institutions, as defined in § 9-r
of the New York Banking Law, for the account of the County through
a deposit placement program that meets all of the conditions set forth
in § 10(2)(a)(ii) of the New York General Municipal Law.
A.
In accordance with the provisions of General Municipal Law § 10, all deposits of Suffolk County, including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act shall be secured by:
(1)
A pledge of eligible securities with an aggregate market value, as provided by General Municipal Law § 10, equal to the aggregate amount of deposits from the categories designated in Appendix A to the policy.[1]
[1]
Editor's Note: Appendix A, Schedule of Eligible Securities, is included at the end of this chapter.
(2)
An eligible surety bond payable to the government for an amount at
least equal to 100% of the aggregate amount of deposits and the agreed-upon
interest, if any, executed by an insurance company authorized to do
business in New York State, whose claims-paying ability is rated in
the highest rating category by at least two nationally recognized
statistical rating organizations.
(3)
An irrevocable letter of credit issued in favor of the County by
a federal home loan bank whose commercial paper and other unsecured
short-term debt obligations are rated in the highest rating category
by at least one nationally recognized statistical rating organization
payable to the County as security for the payment of 100% of the aggregate
amount for the County deposits and the agreed-upon interest, if any.
[Added 9-9-2014 by Res. No. 690-2014]
B.
Any surety bond provided in compliance with the investment policy
shall be delivered to the Suffolk County Comptroller's office
prior to or concurrent with the deposit of monies in that financial
institution.
[Amended 6-17-2014 by L.L. No. 32-2014]
A.
Eligible securities used for collateralizing deposits shall be held
by a third-party bank or trust company subject to security and custodial
agreements.
B.
The security agreement shall provide that eligible securities are
being pledged to secure local government deposits together with agreed-upon
interest, if any, and any cost or expenses arising out of the collection
of such deposits upon default. It shall also provide the conditions
under which the securities may be sold, presented for payment, substituted
or released, and the events which will enable the local government
to exercise its rights against the pledged securities. In the event
that the securities are not registered or inscribed in the name of
the local government, such securities shall be delivered in a form
suitable for transfer or with an assignment in blank to the Comptroller
or its custodial bank.
[Amended 6-17-2014 by L.L. No. 32-2014]
C.
The custodial agreement shall provide that securities held by the
bank or trust company, or agent of and custodian for, the local government,
will be kept separate and apart from the general assets of the custodial
bank or trust company and will not, in any circumstances, be commingled
with or become part of the backing for any other deposit or other
liabilities. The agreement should also described that the custodian
shall confirm the receipt, substitution or release of the securities.
The agreement shall provide for the frequency of revaluation of eligible
securities and for the substitution of securities when a change in
the rating of a security may cause ineligibility. Such agreement shall
include all provisions necessary to provide the local government a
perfected interest in the securities.
A.
As authorized by General Municipal Law § 11, Suffolk County authorizes the Comptroller to invest monies not required for immediate expenditure for terms not to exceed its projected cash flow needs in the following types of investments:
[Amended 6-17-2014 by L.L. No. 32-2014]
(1)
Special time deposit accounts.
(2)
Certificates of deposit.
(3)
Obligations guaranteed by agencies of the United States of America
where the payment of principal and interest are guaranteed by the
United States of America.
(4)
Obligations of the State of New York, to the extent that no more
than 25% of invested monies shall be invested in obligations of the
State of New York.
(5)
Obligations issued pursuant to Local Finance Law § 24 or 25 (with approval of the State Comptroller) by any municipality school district or district corporation other than Suffolk County, to the extent that no more than 15% of invested monies shall be invested in obligations issued pursuant to Local Finance Law § 24 or 25.
(6)
Participation in a cooperative investment program with another authorized
governmental entity pursuant to Article 5-G of the General Municipal
Law where such program meets all the requirements set forth in the
Office of the State Comptroller Opinion No. 88-46 and the specific
investment program has been authorized by the County Legislature,
to the extent that no more than 15% of invested monies, exclusive
of trust and agency funds, shall be invested in obligations issued
by any one approved cooperative investment program.
(7)
Tax anticipation notes and reserve anticipation notes issued by any
school district in New York State.
[Added 9-9-2014 by Res. No. 690-2014]
B.
All investment obligations shall be payable or redeemable at the
option of the County of Suffolk within such times as the proceeds
will be needed to meet expenditures for purposes for which the monies
were provided and, in the case of obligations purchased with the proceeds
of bonds or notes, shall be payable or redeemable at the option of
the County of Suffolk within two years of the date of purchase. The
investment maturities of monies invested from current operating funds
shall be limited to 12 months or less, while the maturities of monies
invested from budgetary reserve funds shall be limited to 20 months
or less.
[Amended 6-17-2014 by L.L. No. 32-2014]
Suffolk County shall maintain a list of financial institutions
and dealers approved for investment purposes and establish appropriate
limits to the amount of investments which can be made with each financial
institution or dealer. All financial institutions with which the local
government conducts business must be credit worthy. Banks shall provide
their most recent Consolidated Report of Condition (Call Report) at
the request of Suffolk County. Security dealers not affiliated with
a bank shall be required to be classified as reporting dealers affiliated
with the New York Federal Reserve Bank, as primary dealers. The Comptroller
is responsible for evaluating the financial position and maintaining
a listing of proposed depositaries, trading partners and custodians.
Such listings shall be evaluated at least annually.
A.
The Comptroller is authorized to contract for the purchase of investments
directly, including through a repurchase agreement, from an authorized
trading partner.
[Amended 6-17-2014 by L.L. No. 32-2014]
B.
All purchased obligations, unless registered or inscribed in the
name of the local government, shall be purchased through, delivered
to and held in the custody of a bank or trust company.
C.
Such obligations shall be purchased, sold or presented for redemption or payment by such bank or trust company only in accordance with prior written authorization from the officer authorized to make the investment. All such transactions shall be confirmed in writing to Suffolk County by the bank or trust company. Any obligation held in the agreement as described in General Municipal Law § 10.
D.
The custodial agreement shall provide that securities held by the
bank or trust company, as agent of and custodian for, the local government,
will be kept separate and apart from the general assets of the custodial
bank or trust company and will not, in any circumstances, be commingled
with or become part of the backing for any other deposit or other
liabilities. The agreement shall describe how the custodian shall
confirm the receipt and release of the securities. Such agreement
shall include all provisions necessary to provide the local government
a perfected interest in the securities.
Repurchase agreements are authorized subject to the following
restrictions:
A.
All repurchase agreements must be entered into subject to a master
repurchase agreement.
B.
Trading partners are limited to banks or trust companies authorized
to do business in New York State and primary reporting dealers.
C.
Obligations shall be limited to obligations of the United States
of America and obligations of agencies of the United States of America
where principal and interest are guaranteed by the United States of
America.
D.
No substitution of securities will be allowed.
E.
The custodian shall be a party other than the trading partner.
F.
Repurchase agreement maturities shall be limited to 30 days or less.
