Rule 10.10.611 - ESTABLISHMENT OF INVESTMENT ACCOUNTS(1) In accordance with 20-9-235, MCA, a school district may set up school district investment accounts for any fund or funds of the district, except the debt service fund. A full service education cooperative established under 20-7-451, MCA, and which receives state special education allowable cost payments and quality educator payments directly from the Superintendent of Public Instruction under 20-7-457 and 20-9-327, MCA, may set up investment accounts for any fund or funds of the cooperative in accordance with 20-9-235, MCA.(2) Trustees may deposit money from elementary and high school funds of districts operating as a unified school system as provided in 20-6-312, MCA, into a combined investment account or accounts, provided the financial activity of each fund and district is separately identified in the district's financial records and provided that income on investments is allocated to the district fund which generated the income.(3) All elected officials, school district employees, full service education cooperative employees, and investment firm employees with duties related to the investment must be bonded. (a) The bond may cover an individual or a blanket bond of the investment may cover all elected officials and employees or any combination.(b) The district or full service education cooperative shall determine the amount for which the elected official or employee shall be bonded based on the amount of money or property handled and the opportunity for defalcation.(4) Before establishing investment accounts, a school district or full service education cooperative must obtain written documentation that the investment firm or entity being contracted to administer the investment account(s): (a) complies with 20-9-204, MCA, Article VIII, section 13 of the Montana Constitution and is qualified and competent to provide investment services to school districts and full service education cooperatives;(b) is either registered with or has filed notice with the State Auditor under the provisions of Title 30, chapter 10, MCA;(c) acquires pledged securities in the same manner and amount as required in 7-6-202 and 7-6-213, MCA, for investments which are not guaranteed or uninsured investments;(d) agrees to purchase only the types of investments allowed for schools by law pursuant to 20-9-213(4), MCA; and(e) provides the district or full service education cooperative with a monthly report detailing: (i) investment and redemption dates;(ii) investment and redemption amounts, by school district fund;(iii) fees charged for administering the investment accounts;(iv) the amount of interest accrued, reinvested and distributed by fund;(v) the balance of the district's investments, by fund;(vi) for a spending investment account, a list of checks, if applicable, and a detailed report of electronic payments made from the investment account; and(vii) at fiscal year-end, the amount of interest accrued as of June 30 and the fair value of the district's or full service education cooperative's share of pooled investments as of June 30 as prescribed by Governmental Accounting Standards Board (GASB) No. 31.Mont. Admin. r. 10.10.611
NEW, 2002 MAR p. 1740, Eff. 6/28/02; AMD, 2004 MAR p. 1613, Eff. 7/23/04; AMD, 2006 MAR p. 3070, Eff. 12/22/06; AMD, 2010 MAR p. 1990, Eff. 9/10/10.20-9-102, 20-9-235, MCA; IMP, 20-9-235, 20-9-327, 20-9-440, MCA;