approved_res-05-2026_-_investment_policy-exhibit-a.pdf

Exactly as extracted, unformatted — for checking against the original. The readable version is easier to read.

EXHIBIT A
1. Purpose
The purpose of this Investment Policy is to establish the parameters for the investment of public
funds of The Town of Centreville. in a manner that complies with Maryland law, the regulations
and guidelines of the Maryland State Treasurer, and generally accepted public-sector investment
practices.
This policy is intended to ensure that public funds are invested with a primary emphasis on
safety of principal, liquidity, and yield, in that order of priority.
2. Scope
This policy applies to all financial assets of the Municipality that are available for investment,
including but not limited to:
• General Fund
• Special Revenue Funds
• Capital Project Funds
• Debt Service Funds
• Any other funds not otherwise restricted by law or trust agreement
Funds governed by separate legal or contractual requirements (such as pension or trust funds) are
excluded unless specifically incorporated by reference.
3. Governing Authority
This policy is adopted pursuant to:
• Maryland Local Government Article, Title 17
• State Finance and Procurement Article
• Applicable sections of the Code of Maryland Regulations (COMAR)
• Investment guidelines issued by the Maryland State Treasurer
All investments shall be made in strict conformity with these authorities, as amended from time
to time.
4. Objectives
The objectives of the Municipality’s investment activities, in priority order, shall be:
4.1 Safety
Preservation of capital is the foremost objective. Investments shall be undertaken in a manner
that seeks to minimize the risk of loss of principal.

EXHIBIT A
4.2 Liquidity
The investment portfolio shall be structured to meet all reasonably anticipated operating and
capital cash flow requirements.
4.3 Yield
The portfolio shall be designed to attain a market rate of return consistent with the objectives of
safety and liquidity and within the constraints of this policy.
5. Standard of Care (Prudence)
Investments shall be made with judgment and care, under circumstances then prevailing, that
people of prudence, discretion, and intelligence exercise in the management of their own affairs,
not for speculation, but for investment.
Investment officers acting in accordance with this policy and applicable law shall be relieved of
personal responsibility for individual investment decisions, provided deviations are reported in a
timely manner and corrective action is taken.
6. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall:
• Refrain from personal business activity that could conflict with proper execution of the
investment program
• Disclose any material financial interests in financial institutions with which the
Municipality conducts business
• Not accepting gifts, favors, or compensation from entities seeking to do business with the
Municipality
7. Delegation of Authority
Authority to manage the Municipality’s investment program is delegated to the Finance Officer,
hereafter referred to as the “Investment Officer.”
The Investment Officer shall act in accordance with this policy and applicable law and may not
delegate investment authority without formal approval by the governing body.
8. Authorized Financial Institutions and Dealers
The Municipality shall only transact investment business with:
• Financial institutions authorized to do business in the State of Maryland

EXHIBIT A
• Institutions that provide written certification of compliance with this policy
9. Authorized Investments
Investments shall be limited to those authorized by Maryland law and COMAR, including but
not limited to:
• Obligations of the United States Treasury
• Obligations of U.S. federal agencies or instrumentalities
• Repurchase agreements collateralized by U.S. government securities
• Certificates of deposit and other bank deposits permitted by law
• Money market mutual funds authorized for public funds
• Other investments specifically authorized under Maryland law
Prohibited Activities:
• Borrowing funds for the purpose of investing
• Speculation or leveraged investment strategies
• Investments not expressly authorized by Maryland law
10. Maturity and Diversification
• Investments shall be structured to match projected cash flow needs
• The portfolio shall be diversified by maturity, investment type, and issuer to reduce risk
• Maturity limits shall comply with Maryland law and State Treasurer guidelines
11. Safekeeping and Custody
• All securities shall be held by a third-party custodian in the Municipality’s name
• Delivery versus payment (DVP) shall be required for all transactions
• Collateral for deposits shall meet Maryland collateralization requirements
12. Internal Controls
The Investment Officer shall establish and maintain a system of internal controls designed to
prevent loss, fraud, or misuse of public funds. Controls shall be reviewed periodically by
independent auditors.
13. Reporting
The Investment Officer shall provide periodic investment reports to the governing body, at least
quarterly, which shall include:
• A listing of current investments

EXHIBIT A
• Portfolio composition and maturity distribution
• Compliance with this policy and applicable law
14. Performance Measurement
The investment portfolio shall be evaluated against appropriate benchmarks consistent with the
objectives of safety and liquidity.
15. Policy Review and Amendment
This policy shall be reviewed at least annually by the governing body. Any amendments shall be
adopted by resolution and submitted to the Maryland State Treasurer as required by law.
16. Policy Adoption
This Investment Policy was adopted by the [Governing Body Name] of the [Name of
Municipality], Maryland, on [Date], and shall remain in effect until amended or rescinded.
Certification
I hereby certify that this policy complies with Maryland law and the investment guidelines of the
Maryland State Treasurer.
__________________________________
[Authorized Official]
Title
Date