Investments

To assure adherence to health department regulations and District Board by-laws/directives regarding investments, this policy is applicable to all investments.  

Investment guidelines are outlined in 902 KAR 8:170 Section 10: Bank Accounts and Investments and are governed by NKIDBOH By-Laws.

Officers designated to implement the investment of funds approved by the Northern Kentucky Independent District Board of Health (NKIDBOH) are:

• The NKIDBOH Chair

• The NKIDBOH Vice-Chair

• The District Director of Health 

• The Deputy Director

• The Buildings and Accounting Administrator

At least two signatures are required on investment documents.

The Buildings and Accounting Administrator is responsible for oversight of investment activities on a day-to-day basis.  Board members may inquire about investments at any time.

Permitted types of investments include Investments as described in 902 KAR 8:170 Section 10.

The following procedures are designed to secure the agency’s financial interest in investments:

• Investment of funds can occur only upon approval of the investment by the NKIDBOH (or Executive Committee acting on behalf of the full board).

• Investment documents require two signatures by designated officers.

• Any investments over insured amounts must be backed by securities as permitted by KRS 41.240(4).  (See  902 KAR 8:170  Section 10 (2 a-c))

• All employees and Board members are covered by a $500,000 fidelity bond.

• An independent auditor will verify securities have been pledged for uninsured amounts of investments during the agency’s annual A-133 audit.

Procedures for monitoring, control, deposit, retention and reporting of investments include:

• To assure segregation of duties, checks that come in the mail are logged in by staff that is NOT responsible for bank reconciliations or deposits.

• Staff responsible for deposits DO NOT complete the bank reconciliations.

• Check signors and investment officers DO NOT make deposits or do the bank reconciliations.

• Bank reconciliations are done monthly.  Bank statement is sent monthly to NKIDBOH Chair.  

• NKIDBOH Chair must sign off on any payments that are $50,000 or more.

• Quarterly reports will be made to the NKIDBOH on the cash position of the agency, which includes any investments.

• Annual audit is performed by an independent audit firm as required by the State.

Standards for written agreements, diversification and qualified investment agents include:

• Before an investment of agency funds can be made, the financial institution must submit documentation of their creditworthiness, as deemed sufficient and satisfactory by the NKIDBOH, and the written Memorandum of Agreement regarding the investment.

• Documents that may be required of a financial institution include (but are not limited to):

  • Audited financial statements.

  • Regulatory reports on financial condition.

  • Proof of National Association of Dealers certification (if applicable).

  • Proof of State registration.

  • Any additional information considered necessary to evaluate the credit worthiness of an institution.

6/20/2023

• Added Revision Log