4-9 Investment Policy | Westmoreland County Community College, Youngwood, Pennsylvania

4.9 Investment Policy

Policy approved by the Board of Trustees – September 28, 2005

Policy revised by the Board of Trustees – April 15, 2026

 

Statement of Investment Guidelines - Introduction

Westmoreland County Community College (the college) was established in 1970 under Article XIX-A of the Pennsylvania School Code. The mission of the college is to provide access to quality educational opportunities that meet the diverse needs and interests of the communities it serves. The college is sponsored by Westmoreland County and is governed by a 15-member board of trustees (the  board).

Responsibilities of the Board of Trustees

The board recognizes its responsibility to develop and execute a policy of investing funds under its control.

In addition, the board recognizes its responsibility to make certain that the college funds are invested        subject to restrictions contained in the Pennsylvania Public Funds Collateral Act (Act 72 of 1971), any other applicable statute, and any rules and regulations adopted by the board.

The purpose of this statement is to assist the board in effectively supervising and monitoring the investment activities of the college’s assets by:

  • Stating in writing the board’s attitudes, expectations, goals, and guidelines for the investment of funds
  • Delegating various responsibilities to the board’s Finance Committee
  • Defining the responsibilities of the college’s administrative staff, and
  • Providing a schedule for reviewing investment activities

Investment Guidelines

Board Philosophy

The board recognizes that risk and volatility are present to some degree with all types of investments. However, high and moderate levels of risk and volatility are to be avoided.

Equity Investments

No college funds shall be invested in Equity Investments or derivative products where the underlying is an equity security.

 Fixed-Income Investments

The objective of fixed-income investments is to provide a secure, above average stream of income and to provide a relatively stable market value base. Investment of college funds are limited to obligations of the United States of America or any of its agencies or instrumentalities backed by the full faith and credit of the United States of America and the Commonwealth of Pennsylvania, or any of its agencies or instrumentalities backed by the full faith and credit of the Commonwealth.

Cash Equivalent Investments

It is the board’s direction that except for non-investment cash (i.e., petty cash), college funds should be invested in insured, guaranteed or collateralized cash equivalent investments. Such investments should be prudently diversified and would include:

  • Instruments issued by, guaranteed by, or insured by the United States
  • Certificates of deposit issued by national banks which are insured by the Federal Deposit Insurance Corporation or for any amounts above the insured maximum, provided that approved collateral in accordance with Pennsylvania law for pledges of assets to secure deposits of public funds with banking institutions shall be pledged by the
  • Short-term cash reserve funds issued by national banks which are insured by the Federal Deposit Insurance Corporation or for any amounts above the insured maximum, provided that approved collateral in accordance with Pennsylvania law for pledges of assets to secure deposits of public funds with banking institutions shall be pledged by the
  • Moneys may be combined from more than one fund under college control for the purchase of a single investment, provided that each of the funds combined for the purpose shall be accounted for separately in all respects, and that the earnings from the investment are separately and individually computed and recorded, and credited to the accounts from which the investment was purchased.

Delegation of Responsibilities

This Statement of Investment Guidelines will be reviewed in accordance with the Policy Making Process or more frequently if deemed appropriate by the Finance Committee of the board. All recommended changes to the guidelines will be developed by the Finance Committee and submitted to the board for final approval.

On a regular basis, the college’s vice president of Administrative Services and/or the college’s    controller shall administer these guidelines.

The Finance Committee recognizes the valued relationships which have developed between the College and the local banking community. As such, the following guidelines are to be used for cash equivalent investing:

  • Certificate of deposit or other liquid investment rates are to be obtained from local national banks.
  • If the interest rate differential among institutions is 100 basis points or less, the college administration may select the institution at its discretion.
  • If the interest rate differential among institutions is greater than 100 basis points, the college administration should     select the institution offering the most favorable rate.
  • The college administration may deviate from the above guidelines with approval from both the chairman of the Finance Committee and the chairman of the

Timely reports summarizing investment activities will be presented to the Finance Committee on a regular basis.