Resolution #16-30: Resolution to Adopt a Cash Management Plan—2016

Date of Adoption: March 17, 2016

BE IT RESOLVED by the Board of Commissioners for the Vernon Township Municipal Utilities Authority, County of Sussex, that for the year 2016, the following shall serve as the cash management plan of the Vernon Township Municipal Utilities Authority.

1. Cash Management and Investment Objectives

The Vernon Township Municipal Utilities Authority has the following objectives.

  1. Preservation of capital.
  2. Adequate safekeeping of assets.
  3. Maintenance of liquidity to meet operating needs.
  4. Investment of assets in accordance with state and federal laws and regulations.
  5. Maximize yield.

2. Designation of Official Depositories

The following Government Unit Protection Act approved banks are authorized depositories for deposit of funds:

  • Sussex Bank
  • Valley National Bank
  • Highlands State Bank
  • Lakeland Bank
  • PNC Bank

3. Cash Management

  1. All funds shall be deposited within 48 hours of receipt in accordance with N.J.S.A.40A:5-15
  2. The chief financial officer shall minimize the possibility of idle cash accumulating in accounts by assuring that any excess amounts not needed to cover expenses or in excess of negotiated compensating balances are kept in interest bearing accounts or promptly swept into the investment portfolio.
  3. Investment decisions shall be guided by the cash flow projections prepared by the chief financial officer.

4. Permissible Investments

  1. Certificates of Deposits
  2. Savings and Loan Associations and Saving Bank Accounts
  3. New Jersey Cash Management Plan
  4. MBIA Municipal Investors Service Corporation CLASS

5. Authority for Investment Management

The chief financial officer is authorized and directed to make investments on behalf of the authority. All investment decisions shall be consistent with this plan and all appropriate regulatory constraints.

6. Reporting

The chief financial officer shall report to the board of commissioners investments in accordance with N.J.S.A. 40A: 5-15.2.

7. Audit

The cash management plan shall be subject to annual audit conducted pursuant to N.J.S.A. 40A: 5-14.

8. Disposition of Abandoned Property

The chief financial officer shall escheat to the State of New Jersey checks which remain outstanding for more than twelve months after the date of issuance.