This policy memorandum establishes policy for investing surplus cash funds including, but not limited to, capital improvement funds and checking funds. Surplus cash is defined as cash resources in excess of the needs of CHHA to conduct its business.

All surplus cash will be under the control of the Treasurer and President. No surplus cash, beyond minor petty cash balances, are permissible elsewhere within CHHA.

1. Surplus cash will be invested in a manner which minimizes risk of principal, provides sufficient liquidity and, within these constraints, maximizes yield.

2. Investments will be made in instruments that will possess high liquidity or instruments that can be converted to cash in a short period of time. Accordingly, investments are restricted to instruments with maturities of two years. Exceptions to that will require approval of the board.

3. Within these guidelines, the Treasure and President will have the flexibility to invest surplus cash in the following debt instruments:
   1. U.S. Treasury Bills
   2. Certificates of Deposit
   3. Money Market Accounts
   4. Low to Moderate Mutual Funds as ranked by Morningstar

The Treasurer is responsible for ensuring that CHHA’s investment portfolio is properly accounted for at all times. This process will include:

1. The establishment and maintenance of files for all accounts with investment brokers and related confirmation documentation.

2. The preparation of monthly investment activity reports for board review.

3. The reconciliation of monthly interest statements received from the organizations investing CHHA's cash.