Kansas Administrative Regulations Agency 122 - POOLED MONEY INVESTMENT BOARD
Here’s a detailed summary of Kansas Administrative Regulations – Agency 122: Pooled Money Investment Board (PMIB):
📑 Structure & Content
Agency 122 – POOLED MONEY INVESTMENT BOARD is organized into five Articles:
Article 1 – Definitions (§ 122‑1‑1)
Clarifies key terms used throughout the regulations (law.cornell.edu).
Article 2 – Depository Banks (§ 122‑2‑1 to 122‑2‑2)
Defines the criteria for banks eligible to hold state funds.
Article 3 – Investment of State Moneys (§ 122‑3‑1 to 122‑3‑11)
Set limits on investments (e.g., up to 50 % in commercial paper; no more than 10 % in a single issuer) (law.cornell.edu, pooledmoneyinvestmentboard.com, law.cornell.edu).
Specifies maturity constraints (e.g., commercial paper ≤ 270 days, corporate bonds ≤ 2 years) .
Article 4 – Municipal Investment Pool (§ 122‑4‑1)
Governs the statewide Municipal Investment Pool (MIP), including participation, maturities, transfers, and yields. Updated policies effective February 19, 2025 (pooledmoneyinvestmentboard.com).
Article 5 – Investment Accounts in Qualified Banks (§ 122‑5‑1)
Establishes regulations for approved state agency deposit accounts.
🏦 Agency Operations & Investment Policies
Mandate & Assets
The PMIB, under K.S.A. 75‑4201 et seq., manages pooled state funds—including the State General Fund, other agency funds, and municipal deposits—ensuring they meet legislative standards and board policy (law.cornell.edu, pooledmoneyinvestmentboard.com, pooledmoneyinvestmentboard.com).
Strategic Objectives
According to the PMIB’s Investment Policy (approved Feb 19, 2025):
Safety – Prioritize preservation of principal.
Liquidity – Maintain sufficient liquidity for state needs.
Yield – Optimize return within safety and liquidity constraints (pooledmoneyinvestmentboard.com).
Permitted Investment Types & Limits
U.S. Treasuries & agency securities (max 4-year maturity)
CDs (max 15% of portfolio, 2.5% per bank)
Reverse repos, commercial paper (≤ 270 days, rated A1/P1), corporate bonds (≤ 2 years, AA+ rating) (pooledmoneyinvestmentboard.com)
Linked-deposit loans, SKILL-act bonds, legislative loans, etc.
Portfolio Diversification & Concentration
Commercial paper + corporate bonds ≤ 60% total portfolio; max 5% per issuer.
Collateralization rules for bank holdings and repurchase operations are specified in statute (pooledmoneyinvestmentboard.com, kslegislature.gov).
Governance & Oversight
The Director of Investments manages day-to-day operations under PMIB’s oversight. The Board and Director establish internal controls, competitive bidding (per § 122‑3‑5), and conflict-of-interest safeguards (pooledmoneyinvestmentboard.com).
Reporting & Audits
Monthly reports on holdings, diversification, yield, and asset performance.
Annual legislative reporting and independent biennial audit required under K.S.A. 75‑37,152 (pooledmoneyinvestmentboard.com).
📊 Financial Snapshot
FY 2024 budget: $841,630 (5 FTE)
FY 2025 budget: $877,800 (+4.3%, includes performance audit costs) (kslegislature.gov).
🔍 Why It Matters
These regulations ensure:
Security of public funds through stringent investment standards.
Transparency via regular reporting and audits.
Broad access as Kansas municipalities and state agencies can participate in the MIP.
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