b'establishing and maintaining internal control procedures to provide reasonable, but not absolute, assurance that depositsand investments are safeguarded against loss from unauthorized use or disposition, and managed in compliance withapplicable laws and regulations.Except as may otherwise be provided in a contract with bondholders or note holders, anymoneys invested may be commingled for investment purposes, provided that any investment of commingled moneys shallbepayableorredeemableatthetimetheproceedsareneededtomeetexpendituresforwhichsuchmoneyswereobtained. The separate identity of the sources of these funds shall be maintained at all times through the general ledger andany income received shall be credited on a pro rata basis to the general ledger fund or account from which the moneyswere invested.7.The Treasurer may utilize the services of any bank, trust company, or savings and loan association authorized to dobusiness within the State of South Carolina.8.All deposits and investments at a bank, trust company, or savings and loan association (hereinafter, collectively referred toas depository), including all demand deposits, certicates of deposit and special time deposits (hereinafter, collectivelyreferred to as deposits) made by the Treasurers Oce that are in excess of the amount of insured under the provisions ofthe Federal Deposit Insurance Act, including pursuant to a Deposit Placement Program in accordance with law, shall besecuredbythedepositoryinaccordancewithSouthCarolinaStateStatute6-5-15,whichdictatesthesecuringandcollateralization of public funds.9.As provided by the State of South Carolina Code of Laws Section 6, the Treasurer will invest moneys not required forimmediate expenditure, for terms not to exceed its projected cash ow needs, in investments that adhere with SouthCarolina State Statutes 6-5-10 and 12-45-220.The Beaufort County Treasurer may also deposit public monies in excess ofcurrent needs into the South Carolina State Treasurers Local Government Investment Pool.Repurchaseagreements(referred to as REPOs) are complex transactions that can expose the investing local government to signicant risks. Ifutilized, the Treasurer must submit the agreement to Beaufort Countys legal counsel for review and approval; have theresources to negotiate the agreement with trading partners and custodial banks or trust companies, and monitor theinvestment daily. At a minimum, any repurchase agreement must comply with the requirements listed in Appendix A.10.Some investments, although in conformity with South Carolina Code of Laws, may be in conict with the County and theTreasurers primary objectives of safety and liquidity. As such, the following investments are not permitted:a.Interest-only Mortgage Securitiesb.Principal-only Mortgage Securitiesc.Z-Traunch Collateralized Mortgage Obligations (CMOs)d.Floating Rate CMOs, including Inverse Floaters11.All nancial institutions and dealers with which the Treasurers Oce transacts business shall be creditworthy, and have anappropriate level of experience, capitalization, size and other factors that make the nancial institution or the dealer capableand qualied to transact business with and hold public funds. The Treasurer shall evaluate the nancial position andmaintain a listing of proposed depositaries, trading partners, and custodians.If the Treasurer elects to utilize the services ofa nancial advisor, that advisor should have at least ten (10) years of experience managing public funds, ve (5) years ofwhich should be experienced in managing funds within the State of South Carolina, and, at a minimum, should be aregistered investment advisor. At least annually, the advisor must provide to the Treasurer their ADV forms, part I and II,led with the Securities and Exchange Commission.The Treasurer shall maintain a list of nancial institutions and dealersapproved for investment purposes. To maximize safety, the Treasurers Oce could purchase through, deliver to and holdincustodyofabankortrustcompanyallobligations,unlessregisteredorinscribedinthenameoftheapplicablegovernment agency.12.The Treasurer shall review this investment policy annually, or as needed, and shall have the power to amend this policy atany time. County Council shall regularly request reporting from the Treasurer regarding the status of investments andchanges in investment policy.Investmentperformanceshouldbeevaluatedatleastsemi-annuallyandbetakenintoconsiderationwhenreviewingtheinvestmentpolicy.Investmentperformancebenchmarksmayincludetimeweighedreturn, net of fees, on individual accounts as well as the overall portfolio.13.The State Treasurer is authorized to assist the Treasurers Oce in investing funds that are temporarily in excess ofoperating. This can be accomplished by explaining investment opportunities through publication and other appropriatemeans; acquainting the Treasurers Oce with the States practice and experience in investing short-term funds; andproviding technical assistance in investment of idle funds when such assistance is requested.Beaufort County, SC | Budget Book 2024 Page 28'