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Conestoga Valley School District

Conestoga Valley School District. Cash Flows & Investment Strategy. Cash Flow Projections 2011-12. Monthly Summary of Cash Receipts, Disbursements. Permissible Investments. US Treasury Bills – 1 year or less Obligations of US Agencies – 1 year or less FHLB, FFCB, FNMA, FHLMC, SLMA

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Conestoga Valley School District

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  1. Conestoga Valley School District Cash Flows & Investment Strategy

  2. Cash Flow Projections 2011-12

  3. Monthly Summary of Cash Receipts, Disbursements

  4. Permissible Investments • US Treasury Bills – 1 year or less • Obligations of US Agencies – 1 year or less • FHLB, FFCB, FNMA, FHLMC, SLMA • Obligations of US Government backed by full faith & credit – short-term or long-term • GNMA (collateralized mortgage obligations) • CDs insured by FDIC - $250,000 • C0llateralized CDs • 102% Market Value Collateral (US Treasury/ Agency Securities only), or Federal Home Loan Bank Irrevocable Letter of Credit

  5. Bank Failures • 2000 through 2007 total of 27 bank failures • 2008 – 25 bank failures • 2009 – 140 bank failures • 2010 – 157 bank failures • YTD 2011 – 51 bank failures • Total since 2000 = 400 bank failures

  6. 20 Year History of T-Bill Interest Rates

  7. Current Interest Rates • US Treasury Bills – 0.13% • Agencies – 0.16% • FDIC Individual Bank CDs – 0.25% - 0.35% • Collateralized CDs – 0.20% - 0.25% • Minimal increase in interest rates is projected for 2011-2012

  8. Current Portfolio

  9. CV’s Investment Strategy • FDIC Insured CDs – properly rated • Collateralized CDs • Agencies such as FHLB, FNMA, FHLMC • US Treasury Bills if interest rates increase • Investment term within 12 months unless rates increase • If rates increase, invest longer term with staggering maturities, i.e. 12 month, 15 month, 18 month, 24 month maturities

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