Accounting Procedures Handbook

INVESTMENTS 11.3 ASSETS principles. • To ensure the Board’s funds are invested in accordance with applicable laws and regulations. • To ensure that the Board adheres to its published investment policy. III. PROCEDURES A.MLGIP Purchases 1. Grants Accountant requests draws on various grants or there is an established schedule of payment set by the grantor. Typically, all state funds are wired into the MLGIP account. 2. Accounting Manager prepares a General Journal Entry to book the incoming wire of funds to the MLGIP account. 3. Comptroller must approve the General Journal Entry via workflow. B. MLGIP Sales & Disbursements 1. Each day, the Accounting Manager looks at the general fund cash balance and determines if the Board needs to transfer funds from the MLGIP account. 2. The Accounting Manager can only transfer funds to the Board’s General Checking account from the MLGIP. 3. Accounting Manager prepares a General Journal Entry to record the transfer of funds. This Journal Entry must be approved by the Comptroller via workflow. 4. Transfers out cannot exceed $10,000,000 per day as established withMLGIP. 5. Only the Accounting Manager and the Comptroller have the authority to transfer funds in or out of the MLGIP account. The MLGIP has control procedures over how funds are wired from the account. C.MLGIP Reconciliation 1. Once a month, the Accounting Manager reconciles the MLGIP accounts upon receipt of the MLGIP custody statement. Accounting Manager reconciles to the General Ledger by completing a reconciliation spreadsheet. Accounting Manager posts the interest earned with a General Journal Entry that must be approved by the Comptroller via workflow. 2. The reconciliation is forwarded to the Comptroller for review and approval. 3. As part of the reconciliation process, the Accounting Manager recalculates the interest posted to ensure that it is correct. D.Valuation Funds invested in the MLGIP accounts are recorded at cost, which approximate fair value. The fair value of the pool is the same as the value of the poolshares E. REFERENCE DOCUMENTS & SOURCES • §6-222, Maryland State Finance and Procurement Article • §6-209(c), Maryland State Finance and Procurement Article • §6-202, Maryland State Finance and Procurement Article • §17-101, Maryland Local Government, Investment or deposit of surplus money by counties, municipalities, and other entities • §17-302, Investment by Local Government, Local Government Investment Pool