Transcript NEW HAMPSHIRE Public Deposit Investment Pool

NEW HAMPSHIRE
Public Deposit Investment Pool
Hampton Trustees of the Trust Funds
Trustee Presentation
June 18, 2007
Warren J. Mackensen, Bookkeeper
New Hampshire
Public Deposit Investment Pool
• RSA 383:22-24, August 9, 1991
• Participants include:
– State of NH
– Agencies
– Authorities
– Commissions
– Boards
– Political Subdivisions (Cities and Towns)
2
Purpose of the NH PDIP
• Safely invest funds of the Participants
• Increase efficiency of fund administration
• Security of funds
3
Investment Strategy
• Safety
– Not subject to inordinate credit risk
– Not subject to maturity risk
• Daily liquidity
• Competitive rates of return, consistent
with the temporary investment of public
funds
4
Oversight of the NH PDIP
• NH State Advisory Committee
– NH Bank Commissioner
– NH State Treasurer
– 7 appointed members
• Independent Auditor
– PriceWaterhouse Coopers
5
Custodian & Administrator
• Custodian
– Bank of America
– Segregated account
• Administrator
– MBIA Municipal Investors Service Corp.
113 King Street
Armonk, NY 10504
6
NH PDIP Flow of Funds
NH Public Deposit Investment Pool
Cemetery Burial
Sports
Library
Capital Reserves
Others
ACH Transfers
New Monies
From Town
Cemetery
Hampton Trustees
Checking Account
Sports
Library
Two
Signatures
Required
Capital Reserves
7
Benefits of NH PDIP
• State protection of all monies
• Competitive daily rates
• Regular monthly statements
• Online access to all accounts
– Fund balances
– Interest postings
– Easy transfers of monies from trust funds or
cap reserve funds to NH PDIP
8
Administrative Improvements
• Elimination of 16 CD booklets
• Elimination of most trips to the bank to
post interest income
• Elimination of internal transfers from CD
accounts to Savings Accounts (2)
• Elimination of cashier checks at bank
9
Sports Fund Example
• After June 30th, Bookkeeper goes online to see
•
•
•
•
•
•
interest for last 12 mos.
Divide by 2 (1/2 interest is reinvested)
Use PDIP “Client Connection” to transfer money
from Sports PDIP account to Trustees’ checking
account (Automated Clearinghouse House transfer)
Trustee with checkbook writes check
Bookkeeper & one other trustee sign check
Rec. Dept. provides voucher to Bookkeeper
Check is sent to Town Finance Mgr. for Rec. Dept.
10
Participation in NH PDIP
• Trustees vote required to switch to NH PDIP
• Sign Investment Management &
•
•
•
•
Custodial Agreement
Open Trustees’ checking account
Deposit CDs into Trustees’ checking account (one
at a time – to avoid commingling)
Transfer money from Trustees’ checking account
to NH PDIP sub-account within PDIP
Verify 100% delivery of all funds to sub-accounts
11
Verification of Fund Transfers
• After CDs deposited and transferred
– Review account statements from NH PDIP
– Compare with retired CD booklets
– Provide account statements and CD booklets
to Town of Hampton auditors
• Henceforth, use NH PDIP statements
12
NH PDIP Costs
• NH PDIP fee is calculated as a percentage
of daily average balances under
management
• Fees are deducted before rates of return
are posted and daily dividend calculated
• No transaction fees or other miscellaneous
fees for audit, valuation or accounting
13
Timing of Transfers
• Trustees approve concept of using PDIP
• Sign paperwork to open PDIP account
• Sign paperwork to open local checking
account
• Transfer funds to new checking account
• Transfer funds from checking to PDIP
14
Thank You
Prepared by
Warren J. Mackensen, CFP
Trustee of the Trust Funds
Bookkeeper
15