The financial assets of the Board of Education shall be invested unless legally prohibited; provided, however, that cash needs shall not be impaired. To insure the Board's fiduciary responsibility and stewardship of its resources, the safety of principal is the foremost investment objective. The investment portfolio shall be designed to attain a market average rate of return throughout budgetary and economic cycles, with consideration of investment risk and cash flow requirements.
The Superintendent or designee may invest excess funds in any of the following instruments:
- Obligations issued by the State of Georgia or by the other states
- Obligations issued by the United States Government
- Obligations fully insured or guaranteed by the United States government or a United States government agency.
- Obligations of any corporation of the United States
- Prime banker's acceptances
- The Local Government Investment Pool administered by the Department of Administrative Services, Georgia Fund One, Fiscal Division
- Repurchase agreements
- Obligations or other political subdivisions of the State of Georgia
- Certificates of Deposits
Investments for all operating funds shall be made in maturities of twelve months or less. A temporary extension is approved by the Board.
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in management of their own affairs, considering to probable safety of their capital as well as the probable revenue to be derived (prudent person rule). Investment decisions will be based on the prudent person rule.