PURPOSE: To establish procedures to invest all surplus funds in order to earn revenue for use as general operating funds.

1. The Vice President of Finance and Administration is authorized to invest available local funds until the funds are needed for cash. The available funds must be invested as soon as possible according to the guidelines within these procedures.
2. All investments will be made in a money market sweep, discount notes, GNMA or certificates of deposit. Certificates of deposit must be secured by obligations of the United States and held by a third party as escrow agent or custodian. All investments must be of a market value not less than the amount of the certificates of deposit so secured, including interest, or in treasury bills or other direct obligations of the United States Government. All investments will be in compliance with the Code of Laws of South Carolina.
3. Competitive bidding from major banks and savings and loan associations in the local area will be required. The decision to purchase discount notes, GNMA, certificates of deposit, treasury bills or other direct obligations of the United States Government will be based on the dollar yield after taking into account the date of maturity, the date the funds will be needed, and the interest rate quoted. The Finance Department will keep on file all competitive bid information.
4. Operational funds needed for normal operations (and not part of the bidding process) will be invested in a money market sweep according to the 'zero' based banking process with the bank that has Trident's operational bank account.

^{This page was last updated September 18, 2003.}