CP-016: Investment Policy

All funds paid to TPWD pursuant to Parks and Wildlife Code §11.042 or allocated to TPWD pursuant to Tax Code §151.801 must be deposited in the treasury with two exceptions: the Operation Game Thief Fund and the Texas Park Development Fund (Parks and Wildlife Code §21.101). The Operation Game Thief Fund is held outside the treasury and, as authorized by Parks and Wildlife Code §12.201, is invested according to rules adopted by the Operation Game Thief Committee. Therefore, the investment of the Operation Game Thief Fund is not governed by this Investment Policy. Although not required, the Texas Park Development Fund is and will continue to be deposited in the treasury and invested by the Comptroller of Public Accounts.

Parks and Wildlife Code §11.065 requires the Commission to adopt rules for investment of the Lifetime License Endowment Account. The Lifetime License Endowment Account is and will continue to be deposited in the treasury and invested by the Comptroller of Public Accounts.

In addition, TPWD has established an account at the Texas Treasury Safekeeping Trust Company, an organization created by the Texas Legislature to invest and safeguard funds for the state and various subdivisions whose sole shareholder and director is the Comptroller of Public Accounts. [1] TPWD’s account at the Texas Treasury Safekeeping Trust Company is for the purpose of accepting donations of marketable securities which shall be held only until accepted by the Commission. Donations of marketable securities shall be sold promptly upon acceptance by the Commission and the proceeds shall be deposited into the treasury.

Objectives of TPWD

  • Suitability of the investment for TPWD requirements
  • Preservation and safety of the principal
  • Liquidity
  • Marketability
  • Diversification of the portfolio
  • Yield
  • TPWD funds shall be held in the state treasury and invested by the Comptroller of Public Accounts under Gov’t Code §404.024. 
  • Mitigation funds distributed to TPWD shall be deposited in the state treasury and accounted for separately. 
  • Bank accounts authorized by Gov’t Code §§403.241-403.252 and the General Appropriations Act (petty cash accounts and imprest accounts for the purchase of evidence and/or information and surveillance) should be either interest-bearing accounts or accounts with no fees. Any interest earned in excess of bank fees shall be deposited in the General Revenue Fund. The establishment of any petty cash or imprest bank accounts must be approved by the TPWD Chief Financial Officer (Signature and Approval Policy OP-03-03). Continuance of bank accounts is dependent upon timely and accurate records keeping and reporting.

Policy Guidelines 

Texas Public Funds Investment Act: Investment Officer Designation and Reporting

  • Pursuant to Gov’t Code §2256.004, the Texas Public Funds Investment Act (PFIA) does not apply to TPWD funds that are deposited into the state treasury and which are managed by the Comptroller of Public Accounts in accordance with Gov’t Code §404.024. 
  • In the event that TPWD funds are deposited outside of the state treasury and become subject to the PFIA, the TPWD Executive Director, or the Executive Director’s designee, shall identify and designate an Investment Officer or Investment Officers (Gov’t Code §2256.005).
    • The designated TPWD Investment Officer(s) shall perform the functions and responsibilities required by the PFIA.
    • The Investment Officer(s) shall attend investment training at least once each state fiscal biennium from a program recommended by the Texas Higher Education Coordinating Board.
    • The Investment Officer(s) are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TPWD.
    • The Investment Officer(s) are required to provide a written copy of this Investment Policy to every business organization engaging in investment activity and must obtain written acknowledgement that the policy was received and reviewed, and that appropriate procedures and controls are in place to preclude unauthorized transactions.
    • The Investment Officer(s) will ensure that all TPWD funds outside the state treasury held in bank accounts are insured by FDIC up to the FDIC deposit insurance limit, currently $250,000. If at any time deposits exceed the FDIC deposit insurance limit in any financial institution, the custodian of the affected account(s) is required to obtain collateralizations that meets state requirements to cover the amount exceeding the deposit insurance limit.
    • The Investment Officer(s) shall prepare reports of investment transactions for all funds managed under the PFIA within 45 days of the end of each quarter and distribute them to the members of the Commission, the Executive Director, and the Chief Financial Officer, as required by Gov’t Code §2256.023. These quarterly reports shall comply with statutory requirements for content. 
    • To the extent that the Texas Legislature modifies any provision of the PFIA that is applicable to TPWD’s funds, the Investment Officer(s) shall prepare a report summarizing those legislative changes to the PFIA and distribute it to the members of the Commission, the Executive Director, and the Chief Financial Officer within six months of the end of a regular legislative session.

Review

The Commission shall review this policy at least annually pursuant to Gov’t Code §2256.005.

 

[1] Texas Treasury Safekeeping Trust Company

TPWD jointly manages another Texas Treasury Safekeeping Trust Company account for the purpose of holding funds recovered under federal and state laws by the designated natural resource trustees for the State of Texas (TPWD, General Land Office, and Texas Commission on Environmental Quality) for restoration of natural resources lost or injured by the unauthorized discharge or release of oil or hazardous substances. A decision on use and any investment of these funds is exclusively the joint decision of the designated natural resource trustees and does not involve the Commission.