Determine if the policy requires financial institutions, brokers and dealers to comply with Ohio Rev. Code Chapter 135. (There is no legal requirement to include this, but if the policy does not include this requirement, we should recommend the government amend their policy to require compliance.) Select a representative number or amount of investments: Inspect purchase documents and determine that investments were made only through members of NASD, or institutions regulated by the Superintendent of Banks, Superintendent of Savings and Loan Associations, Comptroller of Currency, Federal Deposit Insurance Corporation, or Board of Governors of the Federal Reserve System. For certificates of deposit, inspect documentation that any designated payee is the treasurer or treasurer’s office; and that the CDs are in the treasurer’s name. Audit implications (the indirect and material effects of non-compliance, effects on the audit opinions and/or footnote disclosures, significant deficiencies/material weaknesses, and management letter comments): 2-8 Compliance Requirements: Ohio Rev. Code §135.142 (school districts), §135.14(B)(7) (other subdivisions) Other allowable investments for subdivisions other than counties. – Summary of Requirements: Ohio Compliance Supplement Step 2-6 identifies certain investments that are eligible for interim monies. In addition to those investments, subdivisions can invest interim monies as follows: Up to per cent of interim moneys available for investment in either of the following [Ohio Rev. Code §135.142(A) for school districts; §135.14(B)(7) for other subdivisions]: Commercial paper notes issued by an entity defined in Ohio Rev. Code §1705.01(D) (see definition below) and that has assets exceeding five hundred million dollars, to which all the following apply: The notes are rated at the time of purchase in the highest classification established by at least two nationally recognized standard rating services. The aggregate value of the notes does not exceed ten per cent of the aggregate value of the outstanding commercial paper of the issuing corporation. The notes mature not later than 270 days after purchase. The investment in commercial paper notes of a single issuer shall not exceed in the aggregate five per cent of interim moneys available for investment at the time of purchase. Bankers’ acceptances of insured by the FDIC and to which both of the following apply:
Determine if the policy requires financial institutions, brokers and dealers to comply with Ohio Rev. Code Chapter 135. (There is no legal requirement to include this, but if the policy does not include this requirement, we should recommend the government amend their policy to require compliance.) Select a representative number or amount of investments: Inspect purchase documents and determine that investments were made only through members of NASD, or institutions regulated by the Superintendent of Banks, Superintendent of Savings and Loan Associations, Comptroller of Currency, Federal Deposit Insurance Corporation, or Board of Governors of the Federal Reserve System. For certificates of deposit, inspect documentation that any designated payee is the treasurer or treasurer’s office; and that the CDs are in the treasurer’s name. Audit implications (the indirect and material effects of non-compliance, effects on the audit opinions and/or footnote disclosures, significant deficiencies/material weaknesses, and management letter comments): 2-8 Compliance Requirements: Ohio Rev. Code §135.142 (school districts), §135.14(B)(7) (other subdivisions) – Other allowable investments for subdivisions other than counties. Summary of Requirements: Ohio Compliance Supplement Step 2-6 identifies certain investments that are eligible for interim monies. In addition to those investments, subdivisions can invest interim monies as follows: Up to per cent of interim moneys available for investment in either of the following [Ohio Rev. Code §135.142(A) for school districts; §135.14(B)(7) for other subdivisions]: Commercial paper notes issued by an entity defined in Ohio Rev. Code §1705.01(D) (see definition below) and that has assets exceeding five hundred million dollars, to which all the following apply: The notes are rated at the time of purchase in the highest classification established by at least two nationally recognized standard rating services. The aggregate value of the notes does not exceed ten per cent of the aggregate value of the outstanding commercial paper of the issuing corporation. The notes mature not later than 270 days after purchase. The investment in commercial paper notes of a single issuer shall not exceed in the aggregate five per cent of interim moneys available for investment at the time of purchase. Bankers’ acceptances of insured by the FDIC and to which both of the following apply:
Chapter2_2016.docx