Types

• The types of investments for public money are usually that which will ensure the greatest preservation of the principal. These can include government bonds, certificates of deposit and savings accounts in banks that are FDIC insured. Additionally, Treasury bills, qualifying money market mutual funds or bonds of other states or counties also qualify. Bonds of corporations can also be purchased with public money but must be rated highly by at least two rating agencies and have assets exceeding $500 million.
  
  

Treasurer

• The person responsible for overseeing investments made with public money is usually the treasurer or financial officer. There are rules under Public Investment Acts that regulate the treasurer. The treasurer cannot have any interest in the investment that the funds are being invested. They are also restricted from having any interest in the sellers, sponsors or managers of those investments. Finally, they cannot receive any compensation from the investment.
  
  

Training

• The treasurer or financial officer who is overseeing the investment of public money is many times required to complete a training course before investing. In the state of Texas, the investment officer is required to complete 10 hours of training within the first 12 months of taking the position. Ten hours of training is required every two years after that. These courses are sometimes offered online to make it more convenient.
  
  

Features

• One of the main features of many Public Investment Acts is the requirement to have a written investment strategy. This strategy would include safety of principal and liquidity of funds. It would also make provisions for diversification, yield and maturity. The competence and track record of the manager of the investment would also be a consideration.
  
  

Considerations

• Other considerations addressed in a Public Investment Act would include allowing for electronic transfer of funds and other considerations in how securities purchased for investment are paid for. Many Public Investment Acts will also require a private auditor to be hired to conduct periodic audits of the investments. Other considerations are how the securities are to be delivered and how and where they are to be deposited.