Presenter: Melanie Callahan

Commission Agenda Item No. 10
Texas Parks and Wildlife Investment Policy
August 1999

I. Discussion: Chapter 2256 of the Texas Government Code requires that each state agency have an investment policy approved annually by its governing body. This policy should direct investment of eligible funds and primarily emphasize safety of principal and liquidity. This policy has been in place since 1997. There are no changes requested to the policy, only the required readoption.

II. Recommendation: Staff recommends that the Texas Parks and Wildlife Department adopt the following motion:

"The Texas Parks and Wildlife Commission approves the investment policy as shown in Exhibit A."

Attachments - 2

1. Exhibit A – Investment Policy
2. Exhibit B – Fiscal Note (Exhibit B Available Upon Request)

Commission Agenda Item No. 10
Exhibit A

Texas Parks and Wildlife
Investment Policy

All funds of the Texas Parks and Wildlife are required by law to be deposited in the treasury and invested by the Comptroller with the exception of the Varner-Hogg State Park Trust Account and the Lifetime License Endowment Account. Although not required, these funds are also deposited in the treasury and invested by the Comptroller. TPW will review the benefit of this arrangement and determine the feasibility of other investment opportunities.

Objectives of Texas Parks and Wildlife (TPW)

A. Suitability of the investment to TPW requirements

B. Preservation and safety of principal

C. Liquidity

D. Marketability

E. Diversification of the portfolio

F. Yield

II. Policy Guidelines

A. TPW funds, unless designated otherwise, shall be held in the treasury and invested by the Comptroller under Texas Government Code §404.024.

B. Mitigation funds distributed to TPW shall be deposited in the treasury and accounted for separately.

C. Bank accounts may be utilized for the short-term deposit of funds until such funds can be appropriately deposited in the treasury.

D. Bank accounts authorized by Parks and Wildlife Code §11.032(b), the General Appropriations Act of the 76th Legislature, Article VI, Riders 3 and 4, and Texas Government Code §403.241-403.252 and §660.025 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.

E. Bank accounts will be insured up to $100,000 under FDIC. If at any time deposits exceed $100,000 in any financial institution, the custodian of the affected account(s) is required to obtain collateralization which meets state requirements to cover the amount exceeding $100,000.

F. Existing stock portfolio received in 1956 will be retained pursuant to the original donation agreement.

III. Investment Officers

A. The Investment Officers shall be the Director of Finance and the Director of Financial Management for TPW.

B. The establishment of any bank account under II.D. above must be approved by one of the investment officers. Continuance of bank accounts is dependent upon timely and accurate record keeping and reporting.

IV. Reporting

A. Reports shall be prepared within 45 days of the end of each quarter and distributed to members of the TPW Commission, the Executive Director and the Chief Financial Officer.

B. The quarterly reports shall comply with state requirements for content.

V. Review

A. The TPW Commission will delegate to the TPW Finance Committee the task of periodic review of this policy. The review shall take place at least annually.

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