NEW HAMPSHIRE Public Deposit Investment Pool

1. NEW HAMPSHIRE Public Deposit Investment Pool Hampton Trustees of the Trust Funds Trustee Presentation June 18, 2007 Warren J. Mackensen, Bookkeeper

2. New Hampshire Public Deposit Investment Pool • RSA 383:22-24, August 9, 1991 • Participants include: • State of NH • Agencies • Authorities • Commissions • Boards • Political Subdivisions (Cities and Towns)

3. Purpose of the NH PDIP • Safely invest funds of the Participants • Increase efficiency of fund administration • Security of funds

4. Investment Strategy • Safety • Not subject to inordinate credit risk • Not subject to maturity risk • Daily liquidity • Competitive rates of return, consistent with the temporary investment of public funds

5. Oversight of the NH PDIP • NH State Advisory Committee • NH Bank Commissioner • NH State Treasurer • 7 appointed members • Independent Auditor • PriceWaterhouse Coopers

6. Custodian & Administrator • Custodian • Bank of America • Segregated account • Administrator • MBIA Municipal Investors Service Corp.113 King StreetArmonk, NY 10504

7. NH PDIP Flow of Funds NH Public Deposit Investment Pool Cemetery Burial Sports Library Capital Reserves Others ACH Transfers New Monies From Town Hampton Trustees Checking Account Two Signatures Required Library Sports Cemetery Capital Reserves

8. Benefits of NH PDIP • State protection of all monies • Competitive daily rates • Regular monthly statements • Online access to all accounts • Fund balances • Interest postings • Easy transfers of monies from trust funds or cap reserve funds to NH PDIP

9. Administrative Improvements • Elimination of 16 CD booklets • Elimination of most trips to the bank to post interest income • Elimination of internal transfers from CD accounts to Savings Accounts (2) • Elimination of cashier checks at bank

10. Sports Fund Example • After June 30th, Bookkeeper goes online to see interest for last 12 mos. • Divide by 2 (1/2 interest is reinvested) • Use PDIP “Client Connection” to transfer money from Sports PDIP account to Trustees’ checking account (Automated Clearinghouse House transfer) • Trustee with checkbook writes check • Bookkeeper & one other trustee sign check • Rec. Dept. provides voucher to Bookkeeper • Check is sent to Town Finance Mgr. for Rec. Dept.

11. Participation in NH PDIP • Trustees vote required to switch to NH PDIP • Sign Investment Management & Custodial Agreement • Open Trustees’ checking account • Deposit CDs into Trustees’ checking account (one at a time – to avoid commingling) • Transfer money from Trustees’ checking account to NH PDIP sub-account within PDIP • Verify 100% delivery of all funds to sub-accounts

12. Verification of Fund Transfers • After CDs deposited and transferred • Review account statements from NH PDIP • Compare with retired CD booklets • Provide account statements and CD booklets to Town of Hampton auditors • Henceforth, use NH PDIP statements

13. NH PDIP Costs • NH PDIP fee is calculated as a percentage of daily average balances under management • Fees are deducted before rates of return are posted and daily dividend calculated • No transaction fees or other miscellaneous fees for audit, valuation or accounting

14. Timing of Transfers • Trustees approve concept of using PDIP • Sign paperwork to open PDIP account • Sign paperwork to open local checking account • Transfer funds to new checking account • Transfer funds from checking to PDIP

15. Thank You Prepared by Warren J. Mackensen, CFP Trustee of the Trust Funds Bookkeeper