TRUSTEES OF THE TRUST FUNDS
AUGUST 8, 2017
The Trustees of the Trust Funds for the Town of Harrisville met on Tuesday, August 8, 2017 at the Town Offices at 705 Chesham Road.
Members present: Charles Sorenson, Dean Ogelby and Ranae O’Neil
Meeting called to order at 7:05 pm. The agenda included:
Review of the activities of the year (contributions and withdrawals) and other Trustee tasks such as reports
Charles Sorenson restated the responsibilities of the board, noting they primarily deal with contributions and withdrawals to town funds, as well as the issuance of some regular reports, the biggest being the year-end report for Town Meeting. Mr. Sorenson noted the trustees also handle the School District report, which has a different fiscal year, and report to the state Attorney General’s office. As to transactions in the trust funds, the trustees’ role is to ensure that they are authorized by Town Meeting Warrant Articles and that documentation is complete for withdrawals.
Overview of the Role of the Trustee and the process of transferring money for Ranae O’Neil, a new Board member
Charles Sorenson explained that the funds include Capital Reserve Funds, School and Private trusts, with Capital Reserve Funds the most numerous. Private funds, he explained, include a School and Church Fund, the Silver Lake Grange Funds and Cemetery Trusts (or Perpetual Care Funds). With regard to the latter, a petition has to be filed with the state court to close the fund or change where fund money goes.
Update on Law relating to trust funds
Mr. Sorenson noted that RSA Section 35 deals with the parameters and limitations of the Trustees of the Trust Funds, the biggest being on Capital Reserve Funds.
Approval of the Investment policy.
The committee reviewed the policy, which is attached. Primarily, the objective is to preserve principal and liquidity. There were no suggestions for additions or changes to the policy. Mr. Sorenson and Mr. Ogelby stated that the trustees meet at least once a year to approve the investment policy, which is submitted to the state for approval. Dean Ogelby stated they also try to meet before the March Town Meeting as well.
The committee named Charlie Sorenson as Chairman, Dean Ogelby as Treasurer, and Ranae O’Neil as Secretary.
Ranae O’Neil and Dean Ogelby asked whether the Trustees are covered by a bond from the town. Charles Sorenson stated that when he checked several years ago, he was told that we are, but said he will check on the bond.
Meeting adjourned at 7:45 pm.
att: Investment Policy of the Town of Harrisville Trustees of the Trust Funds
TRUST FUNDS INVESTMENT POLICY
The overall portfolio should be managed in accordance with the Prudent Man or Prudent Person rule. The definition of prudence is based on RSA 31:25 as follows:
“A prudent investment is one which a prudent man would purchase for his own investments having in view the preservation of the principal and the amount and regularity of the income to be derived there from.”
The investment objective is to preserve principal, provide ready access to cash to fund obligations, and earn a reasonable yield on investments while maintaining safety and liquidity of the funds. The trustees will meet once a year to review the portfolio and the Investment Policy and, if necessary, make changes where appropriate.
Funds will be invested in the New Hampshire Public Deposit Pool.
Charles W. Sorenson