NEW HAMPSHIRE Public Deposit Investment Pool Hampton Trustees of the Trust Funds Trustee Presentation June 18, 2007 Warren J. Mackensen, Bookkeeper

2 New Hampshire Public Deposit Investment Pool RSA 383:22-24, August 9, 1991 RSA 383:22-24, August 9, 1991 Participants include: Participants include: –State of NH –Agencies –Authorities –Commissions –Boards –Political Subdivisions (Cities and Towns)

3 Purpose of the NH PDIP Safely invest funds of the Participants Safely invest funds of the Participants Increase efficiency of fund administration Increase efficiency of fund administration Security of funds Security of funds

4 Investment Strategy Safety Safety –Not subject to inordinate credit risk –Not subject to maturity risk Daily liquidity Daily liquidity Competitive rates of return, consistent with the temporary investment of public funds Competitive rates of return, consistent with the temporary investment of public funds

5 Oversight of the NH PDIP NH State Advisory Committee NH State Advisory Committee –NH Bank Commissioner –NH State Treasurer –7 appointed members Independent Auditor Independent Auditor –PriceWaterhouse Coopers

6 Custodian & Administrator Custodian Custodian –Bank of America –Segregated account Administrator Administrator –MBIA Municipal Investors Service Corp. 113 King Street Armonk, NY 10504

7 NH PDIP Flow of Funds Sports NH Public Deposit Investment Pool Hampton Trustees Checking Account Library Sports CemeteryCapital Reserves New Monies From Town Two Signatures Required ACH Transfers Library Cemetery Burial Capital Reserves Others

8 Benefits of NH PDIP State protection of all monies State protection of all monies Competitive daily rates Competitive daily rates Regular monthly statements Regular monthly statements Online access to all accounts Online access to all accounts –Fund balances –Interest postings –Easy transfers of monies from trust funds or cap reserve funds to NH PDIP

9 Administrative Improvements Elimination of 16 CD booklets Elimination of 16 CD booklets Elimination of most trips to the bank to post interest income Elimination of most trips to the bank to post interest income Elimination of internal transfers from CD accounts to Savings Accounts (2) Elimination of internal transfers from CD accounts to Savings Accounts (2) Elimination of cashier checks at bank Elimination of cashier checks at bank

10 Sports Fund Example After June 30 th, Bookkeeper goes online to see interest for last 12 mos. After June 30 th, Bookkeeper goes online to see interest for last 12 mos. Divide by 2 (1/2 interest is reinvested) Divide by 2 (1/2 interest is reinvested) Use PDIP “Client Connection” to transfer money from Sports PDIP account to Trustees’ checking account (Automated Clearinghouse House transfer) Use PDIP “Client Connection” to transfer money from Sports PDIP account to Trustees’ checking account (Automated Clearinghouse House transfer) Trustee with checkbook writes check Trustee with checkbook writes check Bookkeeper & one other trustee sign check Bookkeeper & one other trustee sign check Rec. Dept. provides voucher to Bookkeeper Rec. Dept. provides voucher to Bookkeeper Check is sent to Town Finance Mgr. for Rec. Dept. Check is sent to Town Finance Mgr. for Rec. Dept.

11 Participation in NH PDIP Trustees vote required to switch to NH PDIP Trustees vote required to switch to NH PDIP Sign Investment Management & Custodial Agreement Sign Investment Management & Custodial Agreement Open Trustees’ checking account Open Trustees’ checking account Deposit CDs into Trustees’ checking account (one at a time – to avoid commingling) Deposit CDs into Trustees’ checking account (one at a time – to avoid commingling) Transfer money from Trustees’ checking account to NH PDIP sub-account within PDIP Transfer money from Trustees’ checking account to NH PDIP sub-account within PDIP Verify 100% delivery of all funds to sub-accounts Verify 100% delivery of all funds to sub-accounts

12 Verification of Fund Transfers After CDs deposited and transferred After CDs deposited and transferred –Review account statements from NH PDIP –Compare with retired CD booklets –Provide account statements and CD booklets to Town of Hampton auditors Henceforth, use NH PDIP statements Henceforth, use NH PDIP statements

13 NH PDIP Costs NH PDIP fee is calculated as a percentage of daily average balances under management NH PDIP fee is calculated as a percentage of daily average balances under management Fees are deducted before rates of return are posted and daily dividend calculated Fees are deducted before rates of return are posted and daily dividend calculated No transaction fees or other miscellaneous fees for audit, valuation or accounting No transaction fees or other miscellaneous fees for audit, valuation or accounting

14 Timing of Transfers Trustees approve concept of using PDIP Trustees approve concept of using PDIP Sign paperwork to open PDIP account Sign paperwork to open PDIP account Sign paperwork to open local checking account Sign paperwork to open local checking account Transfer funds to new checking account Transfer funds to new checking account Transfer funds from checking to PDIP Transfer funds from checking to PDIP

15 Thank You Prepared by Warren J. Mackensen, CFP Trustee of the Trust Funds Bookkeeper