Review/update responsibility

Revision

Reference

Florida Statute 720.303

Investment objectives

1. safeguard the principal cash amount by investing in securities that minimize loss from credit risk and market volatility.
2. provide the required level of liquidity by investing in securities that: a) are redeemable consistent with projected Association cash requirements, or b) can be readily converted to cash if required.
3. generate income at a competitive market rate.

Short term cash

1. cash used for operating expenses, upcoming MRR expenditures or needed to satisfy other short-term requirements will be held in interest bearing accounts which allow immediate access to all available funds (e.g., savings accounts or money market funds).
2. cash that may be transferred from interest bearing accounts into non-interest-bearing checking accounts as required for payments.

Cash investments

1. Association cash (Operating [excluding Deposits] and Reserve) may be invested in high yield interest bearing instruments for time periods equal to or shorter than the estimated time when those funds may be needed.
2. Investments shall be limited to U.S. government securities or investments in which the principal is insured and/or guaranteed.

Investment maturities

1. To reduce market volatility and the risk of loss associated with the conversion of investments into cash, funds will be invested in multiple securities with different maturities.
2. A minimum of 50% of the invested MRR funds will be in securities with maturities of two (2) years or less. Funds may be invested securities with maturities greater than two (2) years with a maximum of five (5) years after verification that these funds will not be required to meet cash flow requirements or that the cost of liquidation will be less than the incremental gain from the longer maturity.