LAREDO COMMUNITY COLLEGE

                                                    MANUAL OF POLICY

Title: ANNUAL OPERATING BUDGET

Number: III-3 Legal Authority:

Board of Trustees Approval Date:

Policy

                                        ANNUAL OPERATING BUDGET

The College shall prepare a budget for each fiscal year in accordance with
Texas Education Code Chapter 23, Subchapter C.

                                                        ACCOUNTING

The College shall maintain its financial records and submit reports to the
Coordinating Board in accordance with the most recent edition of the
Coordinating Board’s financial reporting system for public junior colleges
in Texas in accordance with Texas Education Code Section 61.065.

                                                              AUDITS

The accounts of the College shall be audited in accordance with the approved
financial reporting system (Education Code 61.065). An annual audit report for
each year ending August 31shall be filed with the Coordinating Board on or
before December l next following the close of the fiscal year for which the audit
was made. Three copies of the audit shall be submitted to the Coordinating Board.

                                         LAREDO COMMUNITY COLLEGE

                                                    MANUAL OF POLICY

Title: TRAVEL

Number: III-4

Legal Authority:

Board of Trustees Approval Date: Revised August 25, 1992; October 21,1999

Policy

                                                                TRAVEL

The College will reimburse Board members, employees, students, and officially invited guests of the College for reasonable expenses incurred while traveling on College business. The total amount reimbursed may be limited to the total estimated travel expenses pre-approved on the travel authorization form. The President of the Board shall authorize travel for all trustees and for the College President. The Board of Trustees shall authorize travel to foreign countries, except Mexico, by majority vote. The College President shall authorize travel out-of-state and to Mexico. College executive officers shall authorize in-state travel. Transportation and lodging shall be reimbursed at reasonable actual expenditures. Out-of-town travel will require the use of the most cost-effective mode as determined by the Business Manager/CFO or his/her representative, with consideration given to distance, travel time, and meals/lodging enroute to and from destination. Use of personal automobile, when authorized, shall be reimbursed at the "standard mileage rate" allowed by Internal Revenue Services. A rental vehicle must be used when the cost of such vehicle is less than the cost to reimburse an employee for the use of a personal automobile, as determined by the Business Manager/CFO or his/her representative. When a rental vehicle is required to be used, an employee may opt to use a personal vehicle and be reimbursed at the rental vehicle rate. Subsistence shall be reimbursed at the "standard meal rate" allowed by the Internal Revenue Service.

                                        LAREDO COMMUNITY COLLEGE

                                                    MANUAL OF POLICY

Title: PURCHASING

Number: III-5 Legal Authority:

Board of Trustees Approval Date:

Policy

                                                        PURCHASING

The College may enter into agreements for cooperative purchase of goods
and services between and among itself and other local governments and
with the State, including cooperative agreements with the State Purchasing
and General Services Commission. (ART. 4413 (32C), SEC. 4(I), V.A.T.S.)

                                        LAREDO COMMUNITY COLLEGE

                                                    MANUAL OF POLICY

Title: SALE OF COLLEGE-OWNED PROPERTY

Number: III-6

Legal Authority:

Board of Trustees Approval Date:

Policy

                                 SALE OF COLLEGE-OWNED PROPERTY

The College Business Manager will, from time to time, identify property that
is no longer useful to the District and will direct the Procurement Director to
dispose of such property through destruction, public sale by auction, public
sale by sealed bids, or public sale by fixed prices on a first-come, first-serve
basis.  The Board will be notified of the sale of College-owned property prior
to the sale, and revenue generated will be reported at the next regularly
scheduled Board meeting.

                                        LAREDO COMMUNITY COLLEGE

                                                    MANUAL OF POLICY

Title: BIDDING REQUIREMENTS

Number: III-7

Legal Authority:

Board of Trustees Approval Date: Revised November 18, 1993

Policy

                                               BIDDING REQUIREMENTS

All contracts for the purchase of personal property or for the construction,
maintenance, repair, or renovation of a building or for materials used in
such construction, maintenance, repair, or renovation shall be submitted to
competitive bidding when such contracts are valued at $10,000 or more in
accordance with Texas Education Code Section 21.901.

                                        LAREDO COMMUNITY COLLEGE

                                                    MANUAL OF POLICY

Title: INVESTMENT POLICY

Number: III-8

Legal Authority:

Board of Trustees Approval Date: May 28, 1996, Revised January 22, 1998, May 18, 2000, June 28, 2001, September 19, 2002

Policy

                                                  INVESTMENT POLICY

This policy for the investment of funds of Laredo Community College is
adopted by the Board of Trustees pursuant to Section 116.112 of the Texas
Local Government Code, Chapter 2256 of the Texas Government Code, and
Chapter 2257 of the Texas Government Code.  This policy will be reviewed
and adopted at least annually, in accordance with Section 2256.005(e) of the
Texas Government Code.

Click on the links below to got to a particular Article or Appendix.

Article I

Article II

Article III

Article IV

Article V

Article VI

Appendix A

Appendix B

Article I. Definitions

1. "Authorized Investment" – the types of investments authorized for the investment of College funds, listed in Article IV hereof.
2. "Board" – the Laredo Community College Board of Trustees.
3. "FDIC" – the Federal Deposit Insurance Corporation.
4. "FSLIC" – the Federal Savings and Loan Insurance Corporation.
5. "Funds" – all funds and accounts containing cash, investments, or other financial assets belonging to the College, the investment of which is governed by the Public Funds Investment Act.
6. "Investment Officer" – A qualified LCC employee will be designated as the College’s investment officer by the Board of Trustees; such person is responsible for the investment of College funds. Another qualified LCC employee will be designated as the alternate investment officer with responsibility to act as the College’s investment officer in the absence of the Investment Officer.
7. "Investment Policy" – the policy for the investment of the funds of Laredo Community College.
8. "Public Funds Collateral Act" – Chapter 2257 of the Texas Government Code.
9. "Public Funds Investment Act" – Chapter 2256 of the Texas Government Code.

                                            ARTICLE II.  INVESTMENT POLICY

Section 2.1. Applicability.   This Investment Policy applies to all Funds.
See Sections 3.1 through 3.4.

Section 2.2 Purpose. The Board of Trustees desires to adopt this Investment
Policy to comply with the Public Funds Investment Act and to set forth the
general policies governing investment of Funds, the specific investment
strategies applicable to each particular Fund, the guidelines, for investment of
the Funds, including the types of investments authorized for the Funds, and
the investment management policies of the College.

Section 2.3 Investment Policy. The primary concern of the Investment Officer in
the investment of the Funds shall be the preservation and safety of the principal.
To the extent that the principal is protected, the secondary concern of the
Investment Officer in investing the Funds shall be the liquidity of the College’s
investments.  Finally, to the extent that principal is protected and there is liquidity,
the Investment Officer shall invest the Funds to yield the highest possible rate of
return in accordance with this Investment Policy. The investment of all the Funds
shall be undertaken in accordance with the provisions of this Investment Policy.

Section 2.4 Standard of Care. The Investment Officer shall invest the funds with
the judgment and care, under prevailing circumstances, that a person of prudence,
discretion, and intelligence would exercise in the management of the person’s
own affairs, not for speculation, but for investment, considering the probable
safety of the principal and probable income to be derived.

Section 2.5 Investment Diversification. Investments shall be diversified by security
type.  The investments shall also be diversified as to maturity as described in the
investment strategies in Article III.

Section 2.6 Investment Yield. To the extend that the principal is protected and
there is liquidity of the investments, the Funds shall be invested to yield the
highest possible rate of return, taking into consideration the strength of any
financial institution selling investments to the College, and complying with all
applicable laws, rules, or regulations and any bond resolutions or orders adopted
from time to time by the Board of Trustees requiring yield restrictions.

Section 2.7 Investment Maturities. The Funds shall be invested to mature to meet the College’s cash requirements, but when cash requirements are met, the Funds shall be invested in accordance with the investment strategies developed for individual Funds, as described in Article III.

Section 2.8 Investment Income.  Investment income earned by the Scholarship Funds, Unexpended Plant Fund, Debt Service Reserve Funds, and Endowment Funds will be retained by those particular funds.  Investment income earned by other LCC funds, except Agency funds, will be retained by the General Operating Fund as a general revenue.  Investment income earned by Agency Funds will be retained as General Operating Fund general revenue only on Agency Funds with fund balances not exceeding $10,000.00; all interest earned on Agency Funds with fund balances above $10,000.00 will be retained by that particular fund.  

ARTICLE III.  INVESTMENT STRATEGIES

    A.    The investment objectives of the Current Funds(General Operating Fund, Auxiliary enterprises Funds, Scholarship Funds, and Federal/State/Local Grant Funds)  are:
            (1) preserving the safety of the principal;
            (2) ensuring that money is available as needed to pay the College’s monthly operating expenses, as estimated by the annual operating budget; and
            (3) to the extent principal is protected and there is adequate liquidity, obtaining the maximum yield on investments permitted by law..

    B.    The Investment Officer shall invest money of the Current            Funds in any authorized investment, provided that investments will
            mature no later than the date the money will be needed to pay monthly
            operating expenses as determined by the annual operating budget.  For
            any operating reserve, investments will mature no later than one year
            after the date of purchase, unless the Board of Trustees authorizes an
            investment with a longer maturity. At no time will investments of one year
            or more constitute more than 25% of the Current Funds portfolio.

    A.    The investment objectives of the Unexpended Plant Fund are:
            (1) preserving the safety of the principal;
            (2) ensuring that money is available as needed to meet the construction
            and facilities maintenance needs of the College;
            (3) to the extent principal is protected and there is adequate liquidity,
            obtaining the maximum yield on investments as permitted by law.

    B.    The Investment Officer shall invest money of the Unexpended Plant Fund
            in any authorized investment, provided that investments will mature no later
            than the date the money will be needed to pay for construction projects and
            facilities maintenance.   For other money, investments will mature no later
            than one year after the date of purchase, unless the Board of Trustees
            authorizes an investment with a longer maturity. At no time will investments
            with maturities of one year or more constitute more than 25% of the
            Unexpended Plant Fund portfolio.

    A.    The investment objectives of the Debt Service Funds are:
            (1) preserving the safety of the principal;
            (2) ensuring that money is available as needed to meet the debt service
            needs of the college;
            (3) to the extent that principal is protected and there is adequate liquidity,
            obtaining the maximum yield on investments as permitted by law.

    B.    The Investment Officer shall invest money in the Debt Service Funds in any
            authorized investment, and in accordance with any covenants made
            regarding he investment of these funds as provided in any applicable bond
            order or resolution, provided that the investment shall mature no later than
            the date a debt service payment is due. For money not needed for the
            College’s next debt service payment, the maximum stated maturity date of
            the investment shall be no greater than one year after the date of purchase
            unless otherwise authorized by the Board of Trustees. At no time will
            investments with maturities of one year or more constitute more than 25%
            of the Debt Service Fund portfolio.

    A.    The investment objectives of the Debt Service Reserve Funds are:
            (1) preserving the safety of the principal;
            (2) ensuring that money is available as needed to meet the debt service
            needs of the College;
            (3) to the extent that principal is protected and there is adequate liquidity,
            obtaining the maximum yield on investments as permitted by law.

    B.    The Investment Officer shall invest money in the Debt Service Reserve
            Funds in any authorized investment, and in accordance with any
            covenants made regarding the investment of these funds as provided in
            any applicable bond order or resolution, provided that, for money needed
            for debt service payments, the investment shall mature no later than the
            date the debt service payment is due. For money not needed for debt
            service payments, the stated maturity date of the investment shall be no
            greater than five years after purchase, unless otherwise authorized by the
            Board of Trustees. At no time will investments with maturities of five years
            or more constitute more than 80% of the portfolio.

Section 3.5 Endowment and Similar Funds.

    A.   The investment objectives of the endowment and similar Funds are: (1) preserving the safety of the principal; (2) ensuring that the principal is protected according to the terms specified by the donor; (3) to the extent that the principal is protected, obtaining the maximum yield on investments according to the terms specified by the donor of this investment policy.

  B.  The Investment Officer shall invest money of the endowment Funds in any authorized investment, and in accordance with the terms specified by the donor of this investment policy.  Investments shall mature as specified by the donor or no later than ten years after purchase, unless otherwise authorized by the Board of Trustees.

Section 3.6 Agency Funds

 A.  The investment objectives of the agency Funds are: (preserving the safety of the principal; (2) ensuring that money is available as needed; (3) to the extent that the principal is protected and there is adequate liquidity, obtaining the maximum yield on investments permitted by law.

B.  The Investment Officer shall invest the money of the Agency Funds in any authorized investment, provided that investments will mature no later than the date the money will be needed by any account holder.  Money deemed not needed within six months may be invested to mature no longer than one year after purchase, unless the Board of Trustees authorizes an investment with a longer maturity.

Section 4.1 Purpose.   The purpose of this Article IV is to set forth the types
of authorized investments in which the funds may be invested and the manner
in which certain investments may be made.

Section 4.2. Authorized Investments.

    A.    The Investment Officer is authorized to invest funds in the following
            types of investments:
            (1) Obligations of, or Guaranteed by, the United States.  The funds may
            be invested in obligations of, or guaranteed by, the United States or one
            of its agencies or instrumentalities; and (2). Certificates of Deposit. The
            Funds may be invested in certificates of deposit issued by a state or
            national bank domiciled in Texas or by a savings and loan association
            domiciled in Texas. Principal and accrued interest on certificates issued by
            a savings and loan association shall not exceed FSLIC limits. Principal and
            accrued interest on certificates issued by a state or national bank domiciled
            in Texas shall not exceed FDIC limits and/or the collateral pledged as
            security for the College’s investments as set forth in Section 4.3.

    B.    The Funds may be invested in investment pools to the extent authorized
            by the Public Funds Investment Act and this investment policy.  Only investment pools approved by the Board of Trustees shall be used. 

    A.    All funds held by a state or national bank domiciled in Texas in cash or in
            certificates of deposit shall be secured by the FDIC and/or by collateral
            pledged to the extent of 102% of the fair market value of the amount not
            insured.  All funds held in certificates of deposit by a savings and loans
            association domiciled in Texas must be fully secured by the FSLIC.  The
            College recognizes that the FDIC or FSLIC insurance is only available up
            to a maximum of $100,000 (including accrued interest) per financial
            institution and that the amount of funds at any one Texas financial
            institution (including branch banks located within the same county) will be
            cumulated to determine whether the $100,000 limit has been exceeded.

    B.    To the extent the Funds held by banks domiciled in Texas are not insured
            by the FDIC, they shall be secured in the manner provided by law for the
            security of funds by the Public Funds Collateral Act.  There shall be pledged
            as collateral for such funds, to the extent of the market value thereof, any
            of the following book entry securities:
            (1) government securities or obligations issued by the State of Texas, its
            agencies or political subdivisions, and approved by the Attorney General
            of Texas, payable from taxes; or
            (2) obligations of the United States or its agencies and instrumentalities; or
            (3) any other obligations or securities authorized to be collateral securing
            the funds of institutions of higher education under the laws of the State of
            Texas that are approved by the Board of Trustees. All collateral shall be
            placed with an independent third party financial institution for safekeeping,
            with safekeeping receipts issued to the College.

Section 4.4. Authorized Financial Dealers and Institutions.  A list will be maintained
by the Investment Officer of creditworthy financial institutions and dealers
authorized to sell investments to the College.  All financial institutions and dealers
who would like to become qualified to bid on investments other than certificates of
deposit must submit the following to the Investment Officer:
    (1) audited financial statements;
    (2) proof of National Association of Securities (NASD) certification, or for financial
          institutions, a statement from a senior bank official that the institution is
          registered as a government securities dealer;
    (3) proof of state registration; and
    (4) certification of having read this Investment Policy.  An annual review of the
          financial condition and registration of qualified dealers and institutions will
          be conducted by the Investment Officer.

Section 4.5. Electronic Wire Transfers. Electronic means may be used to transfer
or invest all Funds.

Section 4.6. Delivery vs. Payment. All investments will be executed by delivery
vs. Payment (DVP) to ensure that investments purchased are deposited in the
College’s financial institution prior to the release of money in payment therefor.

Section 4.7. Loss of Required Rating. An investment under Section 4.2 that
requires a minimum rating does not qualify as an Authorized Investment during
the period that the investment does not have the minimum rating.  The Investment
Officer shall take all prudent measures that are consistent with this Investment
Policy to liquidate any investment that does not have a minimum rating.

Section 5.1. Designation of Investment Officer.  The Board of Trustees hereby
designates the Chief Financial Officer of the College to serve as the Investment
Officer for the College, and the Comptroller of the College to act as alternate
investment officer in the absence of the Chief Financial Officer.  The Investment
Officer has the authority to deposit, withdraw, invest, transfer, and manage the
Funds in accordance with this Investment Policy and applicable law.

Section 5.2 Investment Training.   The Investment officer (at the time this
Investment Policy is adopted) shall attend at least one training session relating
to such person’s responsibilities under the Public Funds Investment Act within
12 months of adoption of this Investment Policy.  Any Investment Officer taking
office after the adoption of this Investment Policy shall attend such training
session within 12 months after assuming the duties of this office.

Section 5.3. Compliance Audit.   The College, in conjunction with its annual
financial audit, shall perform a compliance audit of management controls on
investments and adherence to this Investment Policy.

Section 5.4. Internal Management Reports.  At the end of each quarter of the
fiscal year, the Investment Officer shall prepare and submit to the Board of
Trustees a written report of investment transaction for all Funds as required by
the Public Funds Investment Act, Sec. 2256.023(b), Texas Government Code.

Section 5.5 Conflicts of Interest.   In the event that the Investment Officer has
a personal business relationship with an entity seeking to sell an investment to
the College, the Investment Officer shall file a statement with the Board of
Trustees and the Texas Ethics Commission disclosing that personal business
relationship prior to purchasing such investment.  An Investment Officer who is
related within the second degree by affinity or consanguinity, as determined
under Chapter 573 of the Texas Government Code, to an individual seeking to
sell an investment to the College shall file a statement with the Board of Trustees
and the Texas Ethics Commission disclosing that relationship.

Section 5.6. Disclosure of Investment Policies.

    A.    The Investment Officer shall provide a copy of this Investment Policy to
            any person seeking to sell the College an Authorized Investment.  The
            authorized representative of the business organization shall execute a
            written acknowledgement in the form set forth in Appendix "A" hereto, to
            the effect that the registered principal has received and thoroughly
            reviewed the Investment Policy of the College and acknowledged that the
            organization has implemented reasonable procedures and controls in an
            effort to preclude imprudent investment activities arising out of the investment
            transactions conducted between the College and the organization.  The
            Investment Officer shall not buy any securities from a person who has not
            delivered to the entity a written acknowledgement in the form set in
            Appendix "A".

    B.    The College shall present the Investment Officer with a copy of this
            Investment Policy and the Investment Officer shall execute a written
            statement in the form set forth in Appendix "B" to the effect that the
            Investment Officer has reviewed the Investment Policy and has implemented
            procedures and controls to comply with this Investment Policy.

Section 6.1 Open Meeting.   The Board of Trustees officially finds, determines,
and declares that this Investment Policy was reviewed, carefully considered,
and adopted at a regular meeting of the Board of Trustees beginning at 6:30 p.m.
on May 28, 1996, and that a sufficient written notice of the date, hour, place, and
subject of this meeting was posted at a place readily accessible and convenient
to the public within the College and on a bulletin board located at a place
convenient to the public in the Webb County Courthouse for the time required
by law preceding this meeting, as required by the Open Meetings Act, Texas
Government Code, Section 551, et seq. as amended, and that this meeting was
open to the public as required by law at all times during which this Investment
Policy was discussed, considered, and acted upon. The Board of Trustees
further ratifies, approves, and confirms such written notice and the contents and
posting thereof.

Section 6.2 Effective Date. This Investment Policy shall be effective as of May 28, 1996.

                                                            APPENDIX "A"

                                                Authorized Representative’s

                        Certification of Receipt and Review of Investment Policy

THE STATE OF TEXAS

COUNTY OF

I, THE UNDERSIGNED,______________________ , authorized representative
of ___________________________, do hereby certify that I have been presented
a copy of the Policy for the Investment of Funds (the "Investment Policy") for
Laredo Community College.  I have thoroughly reviewed the Investment Policy
and acknowledge that the College has implemented procedures and controls in
an effort to preclude imprudent investment activities arising out of investment
transactions conducted between the College and _________________________.

WITNESS MY HAND THIS ______________________________________

Name: _______________________________________

Title: _________________________________________

                                                                Appendix "B"

                                                         Investment Officer’s

                        Certification of Receipt and Review of Investment Policy

THE STATE OF TEXAS

COUNTY OF WEBB

I, _____________________________, the designated investment officer of
Laredo Community College, do hereby certify that I have been presented a
copy of the Policy for the Investment of Funds (the "Investment Policy") for
Laredo Community College.  I have thoroughly reviewed the Investment Policy
and acknowledge that Laredo Community College has implemented procedures
and controls to comply with the Investment Policy.

WITNESS MY HAND THIS ____________________________________.

Name: _____________________________________

Title: ______________________________________

This instrument was acknowledged before me on __________________________
by ____________________as Business Manager of Laredo Community College.

                                                                                                    _______________________