Skip Navigation
Office Directory
Government Relations, Compliance and Procedures
Board of Education Policies
Board Policies 3000 - Business and Other Non-Instructional Operations
Board Policy 3100 - Investments

Board Policy 3100 - Investments

I. Policy Statement

  1. The Prince George’s County Board of Education (Board) shall invest public funds in excess of daily operational requirements in a manner which guarantees that investment vehicles meet the primary criteria of prudence, safety of principal, liquidity, and market rate of return.
  2. The Board will conform to all state and local statutes governing the investment of public funds, as well as applicable Federal and State regulatory requirements.

II. Purpose

This policy establishes the investment objectives, and delegation of authority from the Board to the Superintendent/designee to invest school system unexpended funds, and the standards of prudence to be applied to such investments.

III. Definitions

Within the context of this policy, the following definitions apply:

  1. Collateralization – A financing arrangement where a borrower offers an asset to a lender as a security for a loan. If the borrower defaults on the loan, the lender can seize the collateral and sell it to recoup their losses.
  2. Collateralized funds – A valuable asset that a borrower pledges as security for a loan.
  3. Delivery vs. Payment – The investor’s cash is not wire transferred to a financial institution until the agreed collateral is delivered and received by a third-party custodian.
  4. Liquidity – The operating funds shall be invested to assure that funds are available to meet immediate payment requirements.
  5. Maximum return – The investment of operating funds shall be managed to attain a market rate of return consistent with legal restrictions, risk, and prudent investment practices while preserving and protecting invested capital and taking into account constraints on risk and cash flow requirement.
  6. Safety of principal – The investment of operating funds shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio and the protection of the investment principal. To attain this objective, investments shall be diversified by specific security types and individual financial institutions to reduce risk. Third-party collateralization and safekeeping, and delivery versus payment will be required.

IV. Standards

  1. Applicability
    1. This policy applies to the investment of all unexpended or surplus funds of the Board which are accounted for in the Board’s Annual Comprehensive Financial Report and include the following funds:
      1. Current Expense Fund
      2. School Construction Fund
      3. Food and Nutrition Service Fund
      4. Group Life and Health and Vehicle Self Insurance Funds
      5. Other funds that may be created from time to time
    2. The authority to invest, redeem, sell, exchange, and reinvest unexpended or surplus monies shall be with the Superintendent/designee.
  2. The primary objectives of the investment of operating funds shall be:
    1. Safety of principal - to protect the capital in the overall portfolio and to protect the investment principal.
    2. Liquidity - to retain sufficient liquidity to meet disbursement requirements which might be reasonably anticipated, and to diversify investments by specific security types and individual financial institutions to reduce risk to the extent possible.
    3. Maximum return - to maximize the return of the investment portfolio, consistent with legal restrictions, risk and prudent investment policies.
  3. Standards of Care
    1. Investments shall be made pursuant to state law, exercising prudent judgment, discretion, and care, under circumstances then prevailing, not for speculation, but for investment, considering the probable safety of capital as well as the probable income to be derived.
    2. The Superintendent/designee, while acting in accordance with state law, administrative procedures and this policy, and exercising due diligence shall not be held personally responsible for a single security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
  4. Ethics and Conflicts of Interest
    The Superintendent/designee shall act in accordance with Policy 0107 (Ethics Regulations) and Policy 4116 (Conflicts of Interest) -regarding conflicts of interest, gifts and financial disclosures and file a financial disclosure statement.
  5. Investment Strategy
    1. In accordance with state law and regulation, investments shall be limited to insured or fully collateralized funds, including obligations of the federal government, federal agency obligations, and repurchase agreements secured by direct government or agency obligations.
    2. Quarterly, the Superintendent/designee shall hold investment strategy sessions to evaluate the investment portfolio for compliance with current investment policy, discuss market conditions and cash flows, and identify appropriate investment vehicles and the most effective means of generating income.
  6. Monitoring and Controls
    1. The Superintendent/designee shall be responsible for ensuring that PGCPS’ investment program is consistent with COMAR 25.03.03 and the local government investment guidelines adopted by the Maryland State Treasurer.
    2. The Superintendent/designee shall provide the Operations, Budget, and Fiscal Affairs committee, followed by the Board a monthly investment policy compliance report which provides a listing of individual securities held at the end of the reporting period, a listing of the investment by maturity date, and the percentage of the total portfolio which each type of investment represents. The Superintendent shall utilize the current communication platforms available between the Board and the Superintendent’s Office to submit these reports.
    3. The independent auditor will review the investment program as part of the annual financial audit and confirm the Board’s investments and policies.

V. Implementation Responsibilities

The Superintendent is authorized to develop an administrative procedure to implement this policy.

VI. References

  1. Legal
    MD. CODE ANN., LOCAL GOV’T. §§ 17-101, 17-104, and 17-301 through 17-309
    MD. CODE ANN., STATE FIN. AND PROC. § 6-222
    COMAR 15.03.03
  2. Other Board Policies
    Policy 0107 – Ethics Regulations
    Policy 4116 – Conflicts of Interest
  3. Superintendent’s Administrative Procedures
    Administrative Procedure 3100 – Investment Policy and Procedures
  4. Other
    Prince George’ County Investment Policy

VII. History

Policy Adopted 4/16/98

Policy Amended 3/4/03

Policy Reviewed-No Revisions Required 11/9/04

Policy Amended 7/20/09

Policy Amended 4/29/10

Policy Amended 6/26/25

Documents