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~~~-~' S 5 <br />ORANGE COUNTY BOARD OF COMMISSIONERS <br />• DRAFT INVESTMENT POLICY <br />SCOPE <br />This policy applies to all investments of Orange County (County) except authorized petty cash <br />accounts and trust funds administered by the Financial Services Director. The County pools <br />the cash resources of its various funds into a single fund in order to maximize investment <br />opportunities. These funds are accounted for in the County's Comprehensive Annual Financial <br />Report. Each fund's portion of total cash and investments is summarized by fund type in the <br />combined balance sheet as equity or deficit in pooled cash and investments. This policy <br />applies to all transactions involving the financial assets and related activity of all the various <br />funds accounted for in the County's Comprehensive Annual Financial Report. <br />OBJECTIVES <br />Funds of the County will be invested in accordance with North Carolina General Statute 159- <br />30 Cash Management and Investment Policy, and written administrative procedures. The <br />County's investments shall be undertaken in a manner that (1) seeks to ensure the <br />preservation of capital in the overall portfolio, (2) provides for sufficient liquidity to meet the <br />cash needs of the County's various operations and (3) attains a fair market rate of return. Cash <br />• management functions will be conducted in such a manner as to insure that adequate funds <br />will always be available to meet the County's financial obligations and to provide the maximum <br />amount of funds available for investment at all times. <br />RESPONSIBILITY <br />In accordance with N.C. General Statutes, the Financial Services Director is charged with the <br />responsibility of cash management and investment. The Financial Services Director is <br />responsible for investment decisions. and activities and shall develop and maintain written <br />administrative procedures for the operation of the cash management and investment program, <br />consistent with N.C. Statutes and these policies. <br />The standard of prudence to be used by the Financial Services Director shall be the "Prudent <br />Investor" Rule, which states, "Investments shall be made with judgment and care, under <br />circumstances then prevailing, which persons of prudence, discretion and intelligence exercise <br />in the management of their own affairs, not for speculation, but for investment, considering the <br />probable safety of their capital as well as the probable income to be derived." <br />• <br />