Sponsored by the Iowa
Association of School Boards
Statement Of Sponsoring Association The Iowa Schools Joint Investment Trust
(ISJIT) has once again experienced its most successful year of operation in
history since the cash management program's introduction in 1986. In fiscal year
1999-2000, total funds collectively invested in the program's various investment
services reached an all-time high of $511,295,085 on May 18, 2000, surpassing
the previous all-time high by $12,196,915.
ISJIT was one of the first local government investment pools in the country when
it was created for Iowa school corporations in 1986. During the past fourteen
years of continuous operation, ISJIT has assisted more than 340 authorized
participants to safely and effectively increase their interest income, providing
millions of additional dollars to increase the quality of educational services
available to students across the state.
Under the guidance of the Iowa Association of School Boards and the ISJIT board,
ISJIT has become a national model for providing proactive cash management
practices and responsiveness to the unique needs of school corporations across
the state.
During this past fiscal year, prevailing short-term interest rates increased
steadily as the Federal Reserve Board raised overnight rates to attempt to slow
the domestic economy. Statistical data released throughout the period indicated
an economy that continued to expand dramatically, placing continued inflationary
pressure on the sale of economic goods and services
ISJIT's Diversified and Direct Government Obligation (DGO) rates of return
reflected the overall increase in rates in the fixed income markets in FY 99-00,
providing investing participants with rates between five and six percent
throughout the year.
Since inception, the Diversified and DGO funds have provided participants with
over $110,000,000 in investment income. The Iowa Schools Joint Investment Trust
has helped Iowa school corporations to earn more interest income than any other
program or financial institution in the history of our state.
The Iowa Association of School Boards has a proud tradition of helping our
members to combine efforts to help themselves to take better collective
advantage of individual opportunities. ISJIT has set the standard in the state
and the country for responsible, effective cash management assistance,
exemplifying IASB's service role to its members.
Ronald M. Rice
Executive Director
Iowa Association of School Boards
Email: [email protected]
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Contents
The Iowa Schools Joint Investment Trust has helped
Iowa school corporations to earn more interest income Statement of Sponsoring Association 1
than any other program or financial institution in Message From The Chair 2
the history of our state. Board of Trustees 3
Notes From Your Service Providers 4
Member Profile 5
Program Services and Features 6
Financial Statements 7
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Message from the Chair
The Iowa Schools Joint Investment Trust (ISJIT) is pleased to present this
Annual Report of Trust operations for the period ended June 30, 2000. ISJIT
enjoyed its most successful year of operation since the introduction of the
program to Iowa schools in 1986. The program's investment services set new
records for invested funds throughout the period.
Total funds for all investment alternatives reached an all-time high of
$511,295,085 in May of 2000. Use of every investment service offered by ISJIT
increased over previous fiscal periods.
o Use of the program's Fixed Term Automated (FTA) services continued to serve
many of the capital improvement programs authorized across the state as
member districts took advantage of the program's popular Flexible
Withdrawal Certificate of Deposit (Flex-CD) to invest bond proceeds in
anticipation of building projects. During the year, 62 participants from
across the state invested $113,318,921 in ISJIT FTA investments.
o Average combined daily investments in the Diversified and Direct Government
Obligation (DGO) funds were $261,460,246, up 15.8% from FY 98-99 averages.
o Regular monthly receipt of over $50,000,000 in State of Iowa Foundation Aid
payments via Electronic Funds Transfer directly into participant ISJIT
accounts.
o Placement of 142 portfolio certificates of deposit into Iowa financial
institutions representing over $151,300,000.
The ISJIT Board is particularly pleased to introduce new electronic program
interaction opportunities for our members in the coming year. The ability for a
participant to enter investments and withdrawals directly into ISJIT account(s)
twenty-four hours a day, seven days a week combined with the ability to view all
historical and current elements of program operation will create the standard
for ease and efficiency for cash management program participants everywhere.
Your suggestions and observations are always appreciated and have helped ISJIT
to continually improve its services. Please feel free to contact myself or any
other Board member at your convenience if you have ideas about improving your
cash management program.
Respectfully,
Dean Borg, Chair
Board of Trustees
Email: [email protected]
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The ability for a participant to enter investments and withdrawals directly into
ISJIT account(s) twenty-four hours a day, seven days a week combined with the
ability to view all historical and current elements of program operation will
create the standard for ease and efficiency for cash management program
participants everywhere.
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Board of Trustees
Gary Bengston - Carroll (HAVE PICTURE) Richard L. VandeKieft - Cedar Falls (HAVE
PICTURE) Karen M. Petersen - Bettendorf (PICTURE COMING) Dean Borg - Mount
Vernon (HAVE PICTURE) Dennis Jeter - Murray (HAVE COLOR PRINT) Veronica Stalker
- Waukee - (PICTURE COMING)
The Iowa Schools Joint Investment Trust Board of Trustees meets each quarter to
review the program's operation and to consider program operating enhancements
that might be of assistance to ISJIT participants. Each of the six members
represents the interests of their own school corporation as well as over 340
other ISJIT program members. Each board member has served as a school board
member or school business official in their home district for many years prior
to their ISJIT service.
Together, the ISJIT Board provides an extensive network of experience and
knowledge of members' cash management needs to the program's ongoing operation.
The diversity of experience and attention to detail by each member of the Board
assures that the program's history of helpful cash management assistance will
continue to be available to ISJIT members well into the future.
Notes from your Service Providers
Kathryn D. Beyer, CFA
Managing Director
Investors Management Group
Email: [email protected]
U.S. consumers ended the decade of the 1990s with a bang. Retailers had their
best holiday sales of the decade. The robust pace of consumer spending was not
surprising given that the unemployment rate was at the lowest level since the
1960s. In addition, readily available and low cost financing propelled the
housing sector to record levels.
The U.S. economy was not the only global region celebrating the new millennium.
Economic reports from Canada, Europe, Latin America, and the Pacific Rim region
all began to show stronger growth. Central bankers, concerned that synchronized
global growth could spur inflation, began raising short-term interest rates.
The Federal Reserve was the first central bank to take pre-emptive action. With
growth in the U.S. already at historically high levels, the Fed was concerned
that a benevolent monetary policy would eventually stoke inflation. Against this
backdrop, the Fed began to reclaim liquidity injected into the financial markets
in the midst of the 1998 global financial turmoil, beginning with an initial
rate hike of .25 percent on June 29, 1999.
Over the course of the year, the Federal Funds rate was increased by a total of
1.75 percent, evidencing the Fed's increasing concern that low unemployment
rates and rising raw material costs combined with the high demand for goods and
services could generate higher inflation.
We don't expect inflation to run rampant. The secular forces of global
competition, deregulation, and advances in technology have dampened the cyclical
forces that normally push inflation significantly higher in the latter stages of
an economic expansion. The cyclical forces, however, are gaining momentum and
will not subside unless restrained.
Both short-term and long-term rates must rise sufficiently to slow demand enough
to relieve inflationary pressures. The Fed is likely to continue raising
short-term rates until economic growth slows and inflationary pressures abate.
Given the current environment, the average maturities of the Diversified Fund
and the DGO Fund are relatively short. This posture will enable the Funds to
quickly respond to anticipated higher interest rates.
As always, management of the DGO Fund and the Diversified Fund will focus on
ISJIT's three fundamental investment objectives: 1) safety of invested
principal, 2) maintenance of necessary liquidity, and 3) competitive rates, in
that order.
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Paul L. Kruse
Investment Services
Managing Director
Investors Management Group
Email: [email protected]
Investors Management Group (IMG) provides program development services to the
ISJIT program and each eligible participant and prospect.
Paul Kruse, IMG's Investment Services Marketing Manager, personally calls on
representatives of community school districts, area education agencies,
community colleges and other eligible ISJIT participants throughout the state
each year to explain the benefits of ISJIT participation. An individual stop can
range from informal one-on-one conversation to a formal presentation to a
governing Board.
In addition to attending regional meetings and statewide conventions throughout
the year, Paul contributes material to the Educational Investor, including the
popular Kruse'n Down the Highway series.
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Anita Tracy
ISJIT Administrator
Wells Fargo Bank Iowa, N.A.
Email: [email protected]
No cash management program can serve participant needs without knowledgeable
representatives. Anita Tracy heads up a team of dedicated program administrators
that are always available to assist with any ISJIT program-related investment
need. Current investment rates, questions about account activity, setting up new
accounts, Internet account interaction, or any other inquiry is welcome and
always courteously and efficiently addressed. The ISJIT service team stands
ready to assist participants with any program interaction need, including
assistance with accessing the new ISJIT electronic interaction capabilities.
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Membership Profile
Ackley-Geneva, Adair-Casey, Akron-Westfield, Albert City-Truesdale, Albia,
Alden, Algona, Allison-Bristow, Ames, Anamosa, Andrew, Anita, Ankeny,
Anthon-Oto, Aplington, Ar-We-Va, Atlantic, Audubon, Ballard, Battle Creek-Ida
Grove, Baxter, BCLUW, Bedford, Belmond-Klemme, Bennett, Bettendorf,
Bondurant-Farrar, Boone, Boyden-Hull, Bridgewater-Fontanelle, Burlington, C & M,
CAL, Calamus-Wheatland, Camanche, Cardinal, Carlisle, Carroll, Cedar Falls,
Cedar Rapids, Center Point-Urbana, Centerville, Central Decatur, Central Lyon,
Chariton, Charles City, Cherokee, Clarence-Lowden, Clarinda, Clarke (Osceola),
Clarksville, Clear Creek-Amana, Clear Lake, Clearfield, Clinton, Colfax Mingo,
College, Collins-Maxwell, Columbus, Corning, Council Bluffs, Creston, Dallas
Center-Grimes, Danville, Davenport, Davis County, Decorah, Deep
River-Millersburg, Delwood, Denison, Denver, Des Moines, Dexfield, Diagonal,
Dike New Hartford, Dows, Dubuque, Dunkerton, Earlham, East Buchanan, East
Central, East Marshall, East Union, Eastern Allamakee, Eddyville-Blakesburg,
English Valleys, Essex, Estherville, Exira, Firstar - AREA 9--Missippi Bend,
Forest City, Fort Dodge, Fort Madison, Fredericksburg, Fremont, Galva-Holstein,
GMG, Garnavillo, Garner-Hayfield, George, Gilbert, Gilmore City-Bradgate,
Glenwood, Glidden-Ralston, Graettinger, Grand, Grand Valley, Greenfield,
Grinnell-Newburg, Griswold, Grundy Center, H-L-V, Harlan,
Hartley-Melvin-Sanborn, Highland, Hinton, Howard-Winneshiek, Hudson,
Independence, Indian Hills, Indian Hills - Dev. Corp., Indian Hills -
Foundation, Indianola, Interstate 35, Iowa City, Iowa Falls, Iowa Lakes, Iowa
Valley, Iowa Western, Janesville, Jefferson-Scranton, Johnston, Keokuk, Keota,
Knoxville, Lake Mills, Lamoni, Laurens-Marathon, Lawton-Bronson, LeMars, Lenox,
Lewis Central, Lineville - Clio, Linn-Mar, Little Rock, Logan-Magnolia, Lone
Tree, Louisa-Muscatine, Lu Verne, Madrid, Manning, Manson Northwest Webster,
Maple Valley, Maquoketa, Maquoketa Valley, Marcus-Meridian-Cleghon, Marion
Independent, Marshalltown, Mason City, Mediapolis, Melcher-Dallas,
Meservey-Thornton, Mid Iowa, Mid-Prairie, Missouri Valley, MOC-Floyd Valley,
Montezuma, Monticello, Moravia, Mormon Trail, Morning Sun, Moulton-Udell, Mount
Ayr, Mount Pleasant, Mount Vernon, Murray, Muscatine, Nevada, New Hampton, New
London, New Market, Newton, Nishna Valley, North Cedar, North Central, North
Fayette, North Iowa, North Linn, North Mahaska, North Polk, North Scott, North
Winneshiek, Northeast (Goose Lake), Northeast Hamilton, Northern Trails Trust,
Norwalk, Odebolt-Arthur, Ogden, Okoboji, Olin, Orient-Macksburg, Osage, Ottumwa,
Panorama, Parkersburg, PCM, Pekin, Pella, Perry, Pleasant Valley, Pleasantville,
Pocahontas, Prairie Valley, Prescott, Preston, River Valley, Rock Valley,
Rockwell City-Lytton, Rockwell Swaledale, Roland-Story, Rudd-Rockford-MR, Sac,
Saydel, Sergeant Bluff-Luton, Seymour, Sheffield-Chapin, Sheldon,
Sibley-Ocheydean, Sidney, Sigourney, Sioux Central, Sioux City, South Hamilton,
South Page, South Winneshiek, Southeast Polk, Southeast Warren, Southeast
Webster, Southeastern, Southern Cal, Spencer, Spirit Lake, Springville, St.
Ansgar, Stanton, Starmont, Storm Lake, Stratford, Sumner, Terril, Tipton,
Treynor, Tri-Center, Tri-County, Turkey Valley, Twin Cedars, Underwood, Union,
United, Urbandale, Valley (Elgin), Van Buren, Van Meter, Ventura, Villisca,
Vinton-Shellsburg, Waco, Wall Lake, Walnut, Wapello, Wapsie Valley, Washington,
Waterloo, Waukee, Wayne, Webster City, West Burlington, West Central, West Des
Moines, West Hancock, West Harrison, West Liberty, West Lyon, West Marshall,
West Monona, West Sioux, Western Dubuque, Westwood, Whiting, Williamsburg,
Wilton, Winfield-Mt. Union, Winterset, Woden-Crystal Lake, Woodbury Central,
Woodward Granger, AEA 1--Keystone, AEA 2--Northern Trails, AEA 4, AEA
5--Arrowhead, AEA 6, AEA 7, AEA 9--Mississippi Valley, AEA 10--Grant Wood, AEA
11--Heartland, AEA 12--Western Hills, AEA 13--Loess Hills, AEA 14--Green Valley,
AEA 15--Southern Prairie, AEA 16--Great River, Des Moines Area Community
College, Hawkeye Technical Institute, Indian Hills Community College, Iowa
Central Community College, Iowa Lakes Community College, Iowa Western Community
College, Iowa Valley Community College, Kirkwood Community College, Marshalltown
Community College, North Iowa Area Community College, Northeast Iowa Community
College, Northwest Iowa Technical Institute, Southeastern Community College,
Western Iowa Technical Institute, IMPACC, ISCAP, Metro Interagency Insurance
Program (MIIP), Mid-Iowa Computer, Southeast Iowa Schools Health Care Plan
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Program Service Features
ISJIT's operation is sponsored by the Iowa Association of School Boards. IASB's
management team meets regularly with the program's service providers to monitor
all elements of program operation.
ISJIT provides two daily liquid investment alternatives, the Diversified Fund
and the Direct Government Obligation (DGO) Fund. Each alternative is tailored to
meet specific participant investment needs. Each offers rates that typically
exceed those available for other liquid account structures and fixed-term
investments with limited liquidity.
ISJIT provides toll-free phone access to experienced ISJIT representatives who
can assist with any investment-related inquiry or request. Beginning this year,
ISJIT will also offer electronic access to any program investment alternative or
account history to all participants.
ISJIT's unique proprietary reporting system, IPASonline, provides participants
with real-time account inquiry and transaction capabilities via the internet.
Participants may invest or withdraw funds, verify account balances or
transaction histories and direct inquiries to any ISJIT service provider with
this unique service
ISJIT invests available funds into Iowa financial institutions offering
competitive rates of interest whenever possible. To date, IASB sponsored cash
management programs have invested over $1,100,000,000 back into Iowa financial
institutions on behalf of program participants.
ISJIT was the first public school investment program in the country to be
registered with and regulated by the Securities and Exchange Commission (SEC).
<Insert Dallas Center-Grimes High School Graphic>
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ISJIT's Flexible Withdrawal Certificate of Deposit
"Representatives of the Iowa Schools Joint Investment or Flex-CD offers the
perfect investment capability Trust helped us to professionally handle every
aspect for bond proceeds. Each Flex-CD is tailored to the of effectively
investing our district's school specific needs of the project, offering:
building bond proceeds for both our High School and our Elementary School
building programs. The o Payment of an excellent fixed excellent fixed rate of
interest for each of our rate of interest; projects coupled with the ease and
flexibility of withdrawing funds when we need them greatly o No penalty, monthly
liquidity for simplified financial management of our building project needs; and
program. I would definitely encourage anyone to consider use of the Flex-CD to
maximize their o An extended maturity to accommodate any investment return and
convenience." unanticipated project delays.
Michelle
Wearmouth, Business Manager
Dallas Center-Grimes CSD
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Financial Statements <Insert ISJIT Financials.xls>
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Notes to Financial Statements
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Iowa Schools Joint Investment Trust (ISJIT) is a common law trust established
under Iowa law pursuant to Chapter 28E and Section 279.29, Iowa Code (1985), as
amended, which authorizes Iowa schools to jointly invest moneys pursuant to a
joint investment agreement. ISJIT is registered under the Investment Company Act
of 1940. ISJIT was established by the adoption of a Joint Powers Agreement and
Declaration of Trust as of October 1, 1986, and commenced operations on December
16, 1986. The Joint Powers Agreement and Declaration of Trust was amended
September 22, 1988, and again on May 1, 1993. As amended, ISJIT is authorized
and now operates investment programs, including the Diversified Portfolio and
the Direct Government Obligation (DGO) Portfolio. The accompanying financial
statements include activities of the Diversified and DGO Portfolios. The
objective of the portfolios is to maintain a high degree of liquidity and safety
of principal through investment in short-term securities as permitted for Iowa
schools under Iowa law. Wells Fargo Bank Iowa, N.A. serves as the Administrator
and Custodian, and Investors Management Group serves as the Investment Adviser
and Program Support Provider.
The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States of America, requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of net investment
income during the period. Actual results could differ from those estimates.
Investments in Securities
The Diversified and Direct Government Obligation Portfolios consist of cash and
short-term investments valued at amortized cost pursuant to Rule 2a-7 under the
Investment Company Act of 1940. This involves valuing a portfolio security at
its original cost on the date of purchase, and thereafter amortizing any premium
or discount on a straight-line basis to maturity. The amount of premium or
discount amortized to income under the straight-line method does not differ
materially from the amount which would be amortized to income under the interest
method. Procedures are followed to maintain a constant net asset value of $1.00
per unit for each portfolio.
Security transactions are accounted for on the trade date. Interest income,
including the accretion of discount and amortization of premium, is recorded on
the accrual basis.
Certificates of deposit amounts in excess of the $100,000 federal deposit
insurance are collateralized with securities or letters of credit held by
ISJIT's custodian in ISJIT's name, or by the state sinking fund in accordance
with Chapter 12C of the Code of Iowa, which provides for additional assessments
against depositories to ensure there will be no loss of public funds.
In connection with transactions in repurchase agreements, it is ISJIT's policy
that its Custodian take possession of the underlying collateral securities, the
value of which exceeds the principal amount of the repurchase transaction,
including accrued interest at all times. If the seller defaults and the value of
the collateral declines, realization of the collateral by ISJIT may be delayed
or limited. At June 30, 2000 the securities purchased under overnight agreements
to resell were collateralized by government and government agency securities
with market values of $63,761,938 and $26,626,600 for the Diversified Portfolio
and the Direct Government Obligation Portfolio, respectively.
Under Governmental Accounting Standards as to custodial credit risk, ISJIT's
investments in securities are classified as category one. Category one is the
most secure investment category description.
Unit Issues, Redemptions, and Distributions
ISJIT determines the net asset value of each portfolio account daily. Units are
issued and redeemed daily at the daily net asset value. Dividends from net
investment income for each portfolio is declared daily and distributed monthly.
Income Taxes
ISJIT is exempt from federal and state income tax.
Fees and Expenses
Under separate agreements with ISJIT, Investors Management Group (IMG), the
Investment Adviser and Program Support Provider, and Wells Fargo Bank Iowa, N.A.
(Wells Fargo), the Custodian and Administrator, are paid an annual fee for
operating the investment programs. For each of the portfolios, IMG receives .150
percent of the average daily net asset value up to $150 million and .125 percent
exceeding $150 million for investment adviser fees. In addition, IMG receives
.100 percent of the average daily net asset value of the Diversified Portfolio
for program support fees. For the year ended June 30, 2000, the Diversified
Portfolio and the Direct Government Obligation Portfolio paid $550,075 and
$51,233, respectively, to IMG for services provided. For each of the portfolios,
Wells Fargo receives .050 percent of the average daily net asset value up to
$150 million, .045 percent from $150 to $200 million, and .040 percent exceeding
$200 million for custodial services. For the Diversified Portfolio, Wells Fargo
receives .175 percent of the average daily net asset value up to $150 million,
.165 percent from $150 to $200 million, and .150 percent exceeding $200 million
for administrative services; for the Direct Government Obligation Portfolio,
Wells Fargo receives .275 percent of the average daily net asset value up to
$150 million, .265 percent from $150 to $200 million, and .250 percent exceeding
$200 million for administrative services. For the year ended June 30, 2000, the
Diversified Portfolio and the Direct Government Obligation Portfolio paid
$493,027 and $111,004, respectively, to Wells Fargo for services provided. Under
a distribution plan, the sponsoring association receives an annual fee of .100
percent of the daily net asset value of the portfolios. For the year ended June
30, 2000, the Diversified Portfolio and the Direct Government Obligation
Portfolio paid $228,013 and $34,155, respectively, to the Iowa Association of
School Boards. ISJIT is responsible for operating expenses incurred directly by
ISJIT. All fees are computed daily and paid monthly.
(2) SECURITIES TRANSACTIONS
Purchases of portfolio securities for the Diversified Portfolio and Direct
Government Obligation Portfolio aggregated $20,675,385,107 and $7,722,391,993,
respectively, for the year ended June 30, 2000. Proceeds from maturities of
securities for the Diversified Portfolio and Direct Government Obligation
Portfolio aggregated $20,632,533,131 and $7,722,273,000, respectively, for the
year ended June 30, 2000.
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Independent Auditors' Report
The Board of Trustees and Unitholders
Iowa Schools Joint Investment Trust:
We have audited the accompanying statements of net assets of the Diversified
Portfolio and the Direct Government Obligation Portfolio of the Iowa Schools
Joint Investment Trust (the Trust Portfolios) as of June 30, 2000, and the
related statements of operations for the year then ended and the statements of
changes in net assets for each of the years in the two-year period then ended,
and the financial highlights for each of the years in the five-year period then
ended. These financial statements and the financial highlights are the
responsibility of the Trust Portfolios' management. Our responsibility is to
express an opinion on these financial statements and the financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform our audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Investment securities
held in custody are confirmed to us by the Custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Diversified Portfolio and
the Direct Government Obligation Portfolio of the Iowa Schools Joint Investment
Trust as of June 30, 2000, and the results of their operations for the year then
ended and the changes in their net assets for each of the years in the two-year
period then ended, and the financial highlights for each of the years presented,
in conformity with generally accepted accounting principles.
KPMG LLP
Des Moines, Iowa
July 21, 2000
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Investment Adviser
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2203 Grand Avenue
Des Moines, IA 50312-5338
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Custodian and Administrator
<Insert Logo>
Wells Fargo Bank Iowa, N.A.
666 Walnut Street, P.O. Box 837
Des Moines, IA 50304
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Legal Counsel
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BRICK, GENTRY, BOWERS, SWARTZ,
STOLTZE, SCHULING & LEVIS, P.C.
550 39th Street, Suite 200
Des Moines, IA 50312
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Independent Auditor
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KPMG LLP
2500 Ruan Center
Des Moines, IA 50309
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IOWA SCHOOLS JOINT INVESTMENT TRUST
c/o Wells Fargo Bank Iowa, N.A.
666 Walnut Street, P.O. Box 837
Des Moines, IA 50304
(800) 872-0140 or (515) 245-3245
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IOWA SCHOOLS
JOINT INVESTMENT TRUST
(ISJIT)
A comprehensive cash management service for Iowa School Corporations
INFORMATION STATEMENT
August 29, 2000
This booklet provides detailed information about the Iowa Schools Joint
Investment Trust.
Please read it carefully and retain it for future reference.
Sponsored by the
Iowa Association of School Boards
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<PAGE>
CONTENTS
Section Page
The Iowa Schools Joint Investment (ISJIT)....................3
Cash Management Alternatives
Diversified Portfolio ...................................3
Direct Government Obligation Portfolio...................3
Authorized Investments
Maximum Current Income...................................4
Risk and Management of Risk
Management Policies and Procedures.......................4
Maturity of ISJIT Investments............................5
Maintenance of Liquidity.................................5
Year 2000 Issues.........................................5
Investing in ISJIT Portfolios
Portfolio Investments....................................5
Investments by Bank Funds Transfer.......................5
Income Distributions.....................................6
Redeeming ISJIT Portfolio Units
Portfolio Withdrawals....................................6
Valuing ISJIT Portfolio Trust Units
Portfolio Transactions...................................7
Calculating Yield........................................7
Expenses of ISJIT........................................7
Trustees and Officers........................................7
The Adviser..................................................8
The Administrator............................................8
The Custodian................................................8
Administrative and Distribution Related Services.............9
Taxes........................................................9
Reports to Participants......................................9
Declaration of Trust
Description of Trust Units...............................9
Participant Liability....................................9
Termination of the Declaration...........................9
Amendment of the Declaration ............................9
Withdrawal...............................................9
Definitions..............................................9
Independent Auditors........................................10
Document Copies.............................................10
Instructions and Application Form...........................11
Instructions for Making Investments ........................17
Instructions for Making Withdrawals.........................17
No person or entity has been authorized to give any information or to make any
representations other than those contained in this Information Statement, and,
if given or made, such information or representations must not be relied upon as
having been authorized by ISJIT, its Trustees, the Investment Adviser, the
Administrator, the Custodian, or any agent of ISJIT or the Trustees.
<PAGE>
THE IOWA SCHOOLS JOINT INVESTMENT TRUST
(ISJIT)
The Iowa Schools Joint Investment Trust ("ISJIT") is a professionally managed
common law trust organized and operated as a diversified open-end investment
management company and created with the objective of providing Iowa schools (the
"Participants") a convenient method for investing their funds in a manner that
will maximize current income consistent with safety of principal and the
required degree of liquidity for operating funds.
ISJIT has been established under Iowa law pursuant to Iowa Code chapter 28E and
section 279.29, which authorize Iowa schools to jointly invest moneys pursuant
to a joint investment agreement. ISJIT was established by adoption of a Joint
Powers Agreement and Declaration of Trust establishing the Iowa Schools Joint
Investment Trust as of October l, l986 and amended as of November 1, 1988 and
May 1, 1993 (the "Declaration"). An Iowa school corporation whose board of
directors is a member of the Iowa Association of School Boards can become a
Participant in ISJIT by submitting an application and a certified copy of the
form of authorizing resolution contained therein to Iowa Schools Joint
Investment Trust, c/o Wells Fargo Bank Iowa, N.A., 666 Walnut, P.O. Box 837, Des
Moines, Iowa, 50304-0837. See "Instructions and Application Form".
In the opinion of legal counsel, the interests of beneficial ownership in ISJIT
("Trust Units") are exempt from registration under the Securities Act of l933
and the Iowa Uniform Securities Act. ISJIT, however, is registered as an
investment company under the Investment Company Act of 1940 ("1940 Act")
pursuant to the requirements of Iowa Code 12B.10.
This Information Statement provides detailed information about ISJIT and its
investment and operating policies. Please read it carefully and retain it for
future reference. Additional information, a copy of the Declaration, and further
assistance regarding becoming a Participant in ISJIT may be obtained by calling
the ISJIT toll free number, (800) 872-0l40, or by contacting the Iowa Schools
Joint Investment Trust, Wells Fargo Bank Iowa, N.A., 666 Walnut, P.O. Box 837,
Des Moines, Iowa 50304-0837. This Information Statement is qualified in its
entirety by reference to the text of the Declaration.
CASH MANAGEMENT ALTERNATIVES
ISJIT issues two separate series of Trust Units in which Participants may
invest, referred to as the Diversified Portfolio and the Direct Government
Obligation Portfolio (a "Portfolio" or collectively the "Portfolios").
There are no minimum or maximum investments or limitations on redemptions for
either Portfolio. Participants may invest any funds in their custody in either
Portfolio. The Portfolios are operated according to investment and accounting
standards which are required of bond proceeds subject to arbitrage rebate and
which conform to the requirements of Rule 2a-7 under the 1940 Act for "money
market funds." Only funds of Participants may be invested in ISJIT.
DIVERSIFIED PORTFOLIO - The Diversified Portfolio is a professionally managed
portfolio of U.S. government and Federal Agency securities, collateralized
certificates of deposit of Iowa financial institutions and collateralized
perfected repurchase agreements as more fully described below. All such
securities have final maturities of no greater than 397 days from the date of
purchase and the Portfolio maintains a maximum dollar weighted average maturity
of 90 days or less.
DIRECT GOVERNMENT OBLIGATION PORTFOLIO - The Direct Government Obligation
Portfolio is identical in every respect to the Diversified Portfolio except that
it is exclusively invested in direct U.S. government obligations and repurchase
agreements collateralized by direct U.S. government obligations, as more fully
described below. All such securities have final maturities no greater than 397
days from the date of purchase and the Portfolio maintains a maximum dollar
weighted average maturity of 90 days or less. Thus, Participants, which may be
required by Iowa law or who may wish to confine their short-term investments to
these types of instruments, may do so by investing in the Direct Government
Obligation Portfolio.
AUTHORIZED INVESTMENTS
The objective of ISJIT, in offering the Diversified and Direct Government
Obligation Portfolios, is to provide Participants with daily liquidity and the
highest possible investment yield consistent with safety of principal and the
maintenance of liquidity.
Subject to the specific investment restrictions of the Portfolios described
herein, assets of ISJIT will only be invested in securities specifically
permitted for Participants under Iowa law, as it now or in the future exists,
including the following types of securities and instruments ("Permitted
Investments").
(1) Securities issued or guaranteed as to payment of principal and interest by
the U.S. Government. These include, for example, Treasury bills, bonds, and
notes which are direct obligations of the U.S. Government.
(2) Obligations issued or guaranteed as to payment of principal and interest by
agencies or instrumentalities of the U.S. Government. Such agencies and
instrumentalities include, for example, Federal Intermediate Credit Banks,
Federal Home Loan Banks, the Federal National Mortgage Association and the
Farmers Home Administration. Such securities will include those supported
by the full faith and credit of the United States Treasury or the right of
the agency or instrumentality to borrow from the Treasury, as well as those
supported only by the credit of the issuing agency or instrumentality.
(3) Collateralized perfected repurchase agreements secured by securities in the
immediately foregoing categories. A repurchase agreement involves the sale
of such securities to ISJIT with the concurrent agreement of the seller to
repurchase them at a specified time and price to yield an agreed upon rate
of interest. The securities collateralizing the agreement are held in
custody and are regularly verified by the ISJIT Custodian and are
maintained daily in an amount equal to at least 102 percent of the value of
principal and accrued interest of the repurchase agreement.
<PAGE>
(4) Certificates of Deposit ("CDs") in Iowa financial institutions. Each CD
that ISJIT places with an Iowa institution on behalf of the Participants in
ISJIT is insured by the FDIC for the first $100,000 of value. All amounts
in excess of $100,000 in an Iowa institution are protected by the State of
Iowa's sinking fund for public deposits.
Every Permitted Investment shall be purchased on a delivery-versus-payment
("DVP") basis. No other settlement procedure shall be allowed.
MAXIMUM CURRENT INCOME - Because of the participation of many Iowa schools in
ISJIT and the large pool of funds resulting therefrom, ISJIT can purchase
securities in larger denominations, thereby improving yields and reducing
transaction costs. ISJIT's size and experience also permits the selection of
securities maturing at various times which can enhance average portfolio yields.
These strategies, implemented by a full-time professional portfolio manager,
will maximize the current returns earned by ISJIT.
Generally, the yields on direct and guaranteed U.S. government obligations are
less than those on Federal Agency securities and other Permitted Investments.
Thus, the returns earned by Participants that elect to invest in the Direct
Government Obligation Portfolio may also be lower.
RISK AND MANAGEMENT OF RISK
While investments by ISJIT will be confined to the highest quality securities
and instruments with varying short-term maturities, the complete elimination of
risk is not possible. It is possible that large redemptions of Trust Units in
the Portfolios could necessitate the sale of some Portfolio investments prior to
maturity at current market prices. If market values have declined, a reduction
in Unit value could result at the time of redemption.
MANAGEMENT POLICIES AND PROCEDURES
Following are the fundamental management policies and procedures for ISJIT. All
securities are maintained in separate ISJIT Custodial accounts at Wells Fargo
Bank Iowa, N.A., segregated by Portfolio on behalf of ISJIT Participants.
1. ISJIT investment procedures require that each purchase of a security be
handled on a DVP basis. Funds for the purchase of an investment shall not
be released to the seller until the security is delivered to the ISJIT
Custodian. Conversely, a sold security shall not be released to the buyer
until funds for the purchase price of the security have been received by
the ISJIT custodian.
2. ISJIT investment procedures prohibit "free delivery" transactions. The
Custodian shall never release assets from the ISJIT custodial accounts
until the funds for the investment are delivered. Prohibiting "free
delivery" settlements precludes movement of ISJIT program investments or
funds to a third party anywhere.
3. Any material deviation (greater than .5 percent) from the amortized cost of
investments shall be promptly reported by the Adviser to the Board of
Trustees. If such deviation exceeds .5 percent, the Adviser will consider
what action, if any, should be initiated to reasonably eliminate or reduce
material dilution or other unfair results to Participants. Such action may
include redemption of Trust Units in kind, selling portfolio securities
prior to maturity, withholding distributions or utilizing a net asset value
per Trust Unit based upon available market quotations.
4. The frequent trading of securities, including day trading for the purpose
of realizing short-term gains, the purchase and sale of futures and options
to buy or sell authorized investments, reverse repurchase agreements, and
other similar speculative or derivative transactions are expressly
prohibited.
5. ISJIT may not make any investment other than Permitted Investments
authorized by the provisions of the law applicable to the investment of
funds by the Participants, as such laws may be amended from time to time.
6. ISJIT may not purchase any Permitted Investment for the Diversified or
Direct Government Obligation Portfolios which has a maturity date more than
397 days from the date of purchase unless subject to a perfected repurchase
agreement, which such maturity shall be determined as set forth in Rule
2a-7 under the 1940 Act it presently exists or as it may be amended in the
future.
7. ISJIT may not purchase any Permitted Investment if the effect of such
purchase by ISJIT would be to make the average dollar weighted maturity of
either the Diversified or Direct Government Obligation Portfolios greater
than ninety (90) days; provided, however, that in making such
determination, the maturity of any Permitted Investment shall be determined
as set forth under 6 above.
8. ISJIT may not borrow money or incur indebtedness whether or not the
proceeds thereof are intended to be used to purchase Permitted Investments;
9. ISJIT may not make loans, provided that ISJIT may make Permitted
Investments;
10. ISJIT may not purchase securities or shares of investment companies or any
entities similar to ISJIT.
The restrictions set forth above are fundamental to the operation and activities
of ISJIT and may not be changed without the affirmative approval in writing of a
majority of the Participants entitled to vote, except that such restrictions may
be changed by the Trustees so as to make them more restrictive when necessary to
conform the investment program and activities of ISJIT to the laws of the State
of Iowa and the United States of America as they may from time to time be
amended.
ISJIT may invest in Certificates of Deposit issued by Iowa financial
institutions. The Trust's investment adviser provides a financial assessment of
each nonrated ISJIT depository to the ISJIT Board of Trustees comparing that
Depository's financial ratios to those of other Iowa and regional financial
institutions whose securities are rated in <PAGE>
the highest rating category for short-term debt obligations. Pursuant to this
credit analysis, each ISJIT depository's Certificates of Deposit are deemed to
be First Tier securities pursuant to Rule 2a-7 under the Investment Company Act
of 1940 and to present minimal credit risk of default based upon the credit
analysis. The ISJIT Board of Trustees has directed ISJIT's investment adviser to
monitor the credit quality of all ISJIT depositories on an ongoing basis and to
advise the Board of any deterioration of credit quality of any ISJIT depository
relative to rated institutions. The State of Iowa maintains a Sinking Fund for
public deposits to protect against the potential loss of funds by a public body
with funds on deposit in an Iowa financial institution. The State of Iowa also
has assessment procedures authorized to assess all Iowa depositories holding
public funds for any losses experienced by an Iowa public body in excess of the
State Sinking Fund in the event of an Iowa depository failure. There is no
assurance that the State of Iowa's Sinking Fund for public deposits will be
sufficient in case of bank failure.
In addition to the fundamental restrictions and procedures set forth above, as a
condition of providing services to ISJIT, ISJIT presently requires that the
ISJIT Custodian and Investment Adviser maintain fidelity and errors and
omissions insurance coverage for ISJIT's benefit for all services provided to
ISJIT.
MATURITY OF ISJIT INVESTMENTS
Each of the Portfolios strictly adheres to Iowa law and Rule 2a-7 under the 1940
Act for money market mutual funds, developed to minimize risk that the value of
investments in a portfolio might vary. ISJIT investment policy as set forth
above presently limits portfolio investments to the following:
1. The remaining maturity of any individual investment may not exceed more
than 397 days from the date of purchase, which such maturity shall be
determined as set forth in Rule 2a-7 under the 1940 Act as it presently
exists or as it may be amended in the future.
2. The maximum dollar weighted average maturity of all ISJIT investments may
not exceed 90 days.
3. Investments are monitored daily by its Iowa based Investment Adviser and
Administrator to assure that the value of each ISJIT investment does not
materially deviate in value from its amortized cost.
MAINTENANCE OF LIQUIDITY - ISJIT investments in the Diversified and Direct
Government Obligation Portfolios will generally be confined to securities
maturing at various times within 397 days from the date of purchase as
previously described. Because of their relatively short maturities, high
quality, and minimal price fluctuations, ready markets will exist for
liquidating all securities in which ISJIT will invest.
As a general policy, the Portfolios will hold investments until they mature.
However, in an effort to increase yields, ISJIT may sell securities and realize
capital gains when there are perceived disparities between maturities for
various categories of investments. Summaries of all securities trades are
regularly provided to the Board of Trustees by the Adviser.
INVESTING IN ISJIT PORTFOLIOS
PORTFOLIO INVESTMENTS - To become a Participant in ISJIT, the school corporation
must adopt the Form A Resolution included in the Instructions and Application
Form attached hereto, or otherwise provided by ISJIT. The Resolution authorizes
the school corporation to become a Participant, adopts the Declaration, and
designates officials of the school corporation authorized to execute
transactions with ISJIT. Following adoption of the Resolution, the school
corporation must complete and forward to the ISJIT Administrator, Wells Fargo
Bank Iowa, N.A., the Investment Trust Application Form B along with the Form A
and Form A Certificate. See "Instructions and Application Form".
Investments may be made in the Diversified or Direct Government Obligation
Portfolio at the net asset value per Unit next determined after an investment
order has been received. The net asset value of <PAGE>
Portfolio Units is determined once daily at the close of the New York Stock
Exchange (currently 3:00 p.m., Des Moines time).
INVESTMENTS BY BANK FUNDS TRANSFER - A Participant may authorize Wells Fargo
Bank Iowa, N.A., as ISJIT Administrator, to cause moneys to be transferred, by
means of the Iowa Automated Clearinghouse System ("ACH"), from the Participant's
local bank to ISJIT. The Participant may also have its local bank wire federal
funds directly to Wells Fargo Bank Iowa, N.A., all as indicated herein.
A Participant has the ability to invest in a Portfolio by the following methods:
(1) An authorized official may telephone ISJIT at (800) 872-0140 and furnish
the school's name, name of person calling, the ISJIT account number, the
amount being invested, and the account number from which the funds are to
be transferred. A request for the ISJIT investment to be transferred by ACH
must be made by 2:00 p.m.
(2) To make an investment by wire transfer, an authorized official must notify
an ISJIT representative by 10:00 a.m., furnishing the information described
above. The Participant must also instruct its local financial institution
to wire funds to the ISJIT Custodian with the following instructions:
Wells Fargo Bank Iowa, N.A., Des Moines
ABA #073000228
Credit #405200
Iowa Schools Joint Investment Trust
(Further credit to Participant Name and ISJIT
account number)
(3) A Participant may invest in ISJIT Portfolio Units by mailing a check or
other bank draft to the ISJIT Administrator, Wells Fargo Bank Iowa, N.A.,
Iowa Schools Joint Investment Trust, 666 Walnut, P.O. Box 837, Des Moines,
Iowa 50304-0837. Until the check has been converted into federal funds, the
investment order will not be accepted, and no income will be earned on the
investment until that time.
INCOME DISTRIBUTIONS - Net income for each Portfolio of ISJIT is declared each
business day for Participants of record immediately before 3:00 p.m. Des Moines
time. Income distributions are accrued to Participants' accounts daily and
reinvested in additional Trust Units monthly for compounded interest. Total
distributions for the previous month are credited to Participants' Diversified
Portfolio accounts by the first business day of each month and Participants' DGO
Portfolio accounts by the second business day of each month. Distributions are
automatically reinvested in ISJIT Portfolio Trust Units unless cash payment has
been requested. Cash payments, if requested, will be made monthly. If a
Participant redeems the entire amount in its account during the month, income
distributions accrued to the account from the beginning of the month through the
date of redemption are paid into the account the first business day of the
following month.
REDEEMING ISJIT PORTFOLIO TRUST UNITS
PORTFOLIO WITHDRAWALS - ISJIT Portfolio Trust Units may be redeemed on any day
on which the New York Stock Exchange is open for trading, on which the
Administrator computes the net asset value of the ISJIT Portfolios and which is
not a federal holiday or a holiday officially observed by commercial banks in
Iowa. ISJIT Portfolio Trust Units will be redeemed at the net asset value next
determined after a withdrawal request in good order is received by the
Administrator at offices in Des Moines.
Proceeds from the redemption of ISJIT Portfolio Trust Units will be transmitted
to the Participant's local financial institution by means of the ACH System or
by the federal reserve wire system. No charge will be made for the ACH transfer
of Participant's funds; however, local financial institutions may reserve the
right to charge for an incoming wire transfer. Proceeds can also be paid by
check to the registered Participant and mailed to the Participant's address of
record.
Proceeds from the redemption of ISJIT Portfolio Trust Units which have been paid
for by check may not be transmitted to the Participant's financial institution
by wire for up to a maximum of 7 days after the ISJIT Administrator has been
informed that the Participant's check has cleared, but in no event for more than
15 days after the Units have been issued and outstanding.
A Participant has the ability to redeem ISJIT Portfolio Trust Units by the
following methods:
(1) An authorized official may redeem ISJIT Portfolio Trust Units by
telephoning (800) 872-0140 and furnishing the school distric's name, name
of person calling, the ISJIT account number, the amount to be withdrawn,
and the account number to which the funds are to be transferred. A request
for the ISJIT withdrawal to be transferred by the Automated Clearing House
System (ACH), which will be transferred the next business day, must be made
by 2:00 p.m.
(2) To redeem ISJIT Portfolio Trust Units by wire transfer to be effective the
same day, an ISJIT representative must be notified by 10:00 a.m. by a
Participant's Authorized Official. The Participant must instruct the ISJIT
representative to wire funds to its local financial institution. The
Participant must provide the wiring instructions, including the local
financial institution name, location, account number, and name and
telephone number of a contact person at that financial institution.
(3) A Participant may redeem all or a portion of its ISJIT Portfolio Trust
Units by instructing the Administrator by letter mailed to the following
address: Iowa Schools Joint Investment Trust, c/o Wells Fargo Bank Iowa,
N.A., 666 Walnut, P.O. Box 837, Des Moines, Iowa, 50304-0837. This
redemption request must be in good order indicating the dollar amount or
number of ISJIT Portfolio Trust Units to be redeemed, the method of
redemption (i.e., ACH, check) and signed by an authorized official of the
school.
<PAGE>
VALUING ISJIT PORTFOLIO TRUST UNITS
The net asset value of ISJIT Portfolio Trust Units is determined once each day,
as of the close of the New York Stock Exchange (currently 3:00 p.m. Des Moines
time). Except for federal holidays, such other holidays that are officially
observed by commercial banks in Iowa, and days on which no investments in or
redemption of ISJIT Trust Units occur, the Administrator will compute the ISJIT
Portfolio's net asset value on each day the New York Stock Exchange is open for
trading or when there is a sufficient volume of trading which might materially
affect the net asset value of the securities held by the Portfolios. The net
asset value of each Portfolio Trust Unit is computed by adding the value of all
securities and other assets (including income receivable), subtracting
liabilities (including accrued expenses) attributable to each Portfolio and
dividing by the number of Trust Units of each Portfolio outstanding.
The ISJIT Administrator will compute the net asset value of Portfolio Trust
Units by using the amortized cost method for valuing securities. Under the
amortized cost method a security is initially valued at cost on the date of
purchase and, thereafter, any discount or premium is amortized on a straight
line basis to maturity, regardless of fluctuating interest rates or the market
value of the security. However, the Adviser will establish procedures to
stabilize the net asset value of Trust Units at $l.00 per Trust Unit. These
procedures include a review by the Adviser as to the extent of the deviation of
net asset value based upon available market quotations from the Portfolio's
$l.00 amortized cost per value unit. If such deviation exceeds .5 percent, the
Adviser will consider what action, if any, should be initiated to reasonably
eliminate or reduce material dilution or other unfair results to Participants.
Such action may include redemption of Portfolio Trust Units in kind, selling
portfolio securities prior to maturity, withholding distributions or utilizing a
net asset value per Portfolio Trust Unit based upon available market quotations.
If, and only if, the Trustees, with the advice of the Adviser, shall determine
that the amortized cost method of determining the net asset value of Portfolio
Trust Units no longer represents a fair method of valuation, the Trustees may
either permit such net asset value to fluctuate or may reflect the fair value
thereof in the number of Trust Units allocated to each Participant.
PORTFOLIO TRANSACTIONS - Subject to policies set by the Trustees, the Adviser is
authorized to determine, consistent with the ISJIT investment objectives and
policies, which securities will be purchased, sold and held by ISJIT. Most of
the securities will be purchased on a principal basis directly from the issuer,
from banks, underwriters or market makers and, thus, will not involve payment of
a brokerage commission. Such purchases may include a discount, concession or
mark-up retained by an underwriter or dealer. The Adviser is authorized to
select the brokers or dealers that will execute the purchases and sales of
securities and is directed to use its best efforts to obtain the best available
price and most favorable execution on brokerage transactions. Some of the
transactions may be directed to brokers or dealers who furnish special research
and statistical information or services rendered in the execution of orders.
CALCULATING YIELD - The yield on Trust Units (a 7-calendar-day historical yield)
is calculated by first dividing the average daily net income per Portfolio Trust
Unit for that 7-day period by the average daily net asset value per Trust Unit
for the same period. This return is then annualized by multiplying the result
times 365. The yield for the 7-day period ended June 30, 2000, for ISJIT and
ISJIT DGO was 5.86% and 5.80%, respectively.
EXPENSES OF ISJIT - Under separate agreements with ISJIT, the Adviser, the
Administrator and the Custodian each is paid an annual fee for its services.
Fees are paid from each portfolio according to the schedule illustrated on the
following page:
DIVERSIFIED PORTFOLIO
Average Daily Custodian Administrator Adviser
Net Asset Amount Fee Fee Fee
Less than $150 million .050% .175% .250%
For additional amounts
up to $200 million .045% .165% .225%
For amounts greater than
$200 million .040% .150% .225%
DGO PORTFOLIO
Average Daily Custodian Administrator Adviser
Net Asset Amount Fee Fee Fee
Less than $150 million .050% .275% .150%
For additional amounts
up to $200 million .045% .265% .125%
For amounts greater than
$200 million .040% .250% .125%
These fees are based upon the average daily net assets of the respective
Portfolios and are accrued daily and paid monthly.
ISJIT also pays the operating expenses incurred directly by ISJIT and its
Trustees in connection with the discharge of their duties. These expenses
include initial and on-going legal fees, auditing fees, out-of-pocket expenses
of Trustees, and the cost of printing, mailing and other services performed
independently by ISJIT. Payment of all operating expenses are accrued daily and
are estimated at the annual rate of 0.03 percent of average daily net assets.
Pursuant to the Trust's Rule 12b-1 Plan, a Participant service fee computed at
the annual rate of 0.10 percent of the average daily net assets of the
Portfolios is payable to the Iowa Association of School Boards ("IASB"). The fee
is paid for administrative services provided by IASB to ISJIT, including
clerical and administrative services in connection with meetings of the Board of
Trustees, evaluation of performance of service providers, review of compliance
with investment policies, providing the Board of Trustees various reports
thereon, maintaining Trust records and providing marketing services.
Expenses directly attributable to a Portfolio are accrued against the respective
Portfolio. Expenses not attributable to a particular Portfolio ("general
expenses") are allocated to the Portfolios pro rata based upon the relative net
asset value of the Portfolios.
<PAGE>
For the fiscal year ending June 30, 2000, total expenses of the Portfolios
amounted to 0.59 percent and 0.60 percent, respectively, of the Diversified and
Direct Government Obligation Portfolios average daily net assets.
These fees and operating expenses are subject to adjustment and renegotiation as
determined by the Board of Trustees and the terms of the contracts with the
service providers.
TRUSTEES AND OFFICERS
The Board of Trustees has full and complete control over the business and assets
of ISJIT, subject to the rights of ISJIT Participants as provided in the
Declaration.
There are six voting members of the Board of Trustees. Ronald M. Rice, the
Executive Director of the Iowa Association of School Boards, Inc. serves as an
ex officio nonvoting member of the Board of Trustees and, pursuant to the
By-laws, is Secretary for the Board. The Assistant Secretary is Robert M.
Huckleberry, Director of Finance of the Iowa Association of School Boards, Inc.
Carolyn Jons serves as the Assistant Treasurer to ISJIT. The names, affiliations
and positions of the Board members are set forth below:
Name Affiliation Position
Dean Borg Mount Vernon Chairperson
Richard VandeKieft Cedar Falls Vice Chairperson
Gary D. Bengtson Carroll Treasurer
Veronica Stalker Waukee Member
Don Williams Villisca Member
Jan Turner Okoboji Member
Of the six voting Trustees, four Trustees must be persons who are school board
members and members of the board of directors of the Iowa Association of School
Boards; one must be a school superintendent; and one must be a school business
official. The Chairman, Vice Chairman, and Secretary serve on an Executive
Committee. The Executive Committee may exercise all of the authority of the
Board of Trustees except that the Executive Committee cannot create a new
portfolio or series of units or change investment policies. Ex Officio Trustees
have no voting power in connection with any actions that the Trustees may take
on behalf of ISJIT. The Trustees have legal title to the assets of ISJIT for the
benefit of the Participants. In their capacity, the Trustees function on behalf
of the Participants, as the agents and fiduciaries of the Participants, to
implement and administer the Declaration, as an agreement among the
Participants.
Trustees are elected to terms with staggered, annual expiration dates over three
years. In each year, the Trustees will elect two Trustees to serve for a term of
three years. The Declaration provides that two-thirds of the Trustees may, at
any time, remove a Trustee from office for cause.
If at any time a Trustee is associated as a school board member, a school
superintendent or a school business official, with a school which ceases to be a
Participant, such Trustee must resign.
No Trustee (whether voting or non-voting) of ISJIT will receive any compensation
from ISJIT, the Adviser, Administrator or Custodian for his or her services.
ISJIT will reimburse the Trustees for their reasonable expenses incurred on
behalf of ISJIT.
ISJIT refers to the Trustees in their capacity collectively as Trustees and not
individually or personally. All persons dealing with ISJIT must look solely to
the ISJIT assets for the enforcement of claims against ISJIT. The Trustees,
officers and Participants do not assume any liability for obligations entered
into on behalf of ISJIT. The Declaration shall not create any right, title,
privilege or entitlement in any person, corporation or other legal entity except
a Participant and a Person that has a direct and written contract with ISJIT.
The terms and conditions of the Declaration are not intended to and shall not be
construed to create any cause of action, legal or equitable, in any Person
against the Participants, Trustees, officers, employees or agents of ISJIT,
except as is provided by specific language in the Declaration or by specific
language in written agreements or contracts entered into by the Trustees in
implementing ISJIT. It is not intended and the terms of the Declaration shall
not be construed so that any breach thereof by Participants, Trustees, officers,
employees or agents of ISJIT creates an action at common law, tort, contract or
otherwise.
A Trustee is not personally liable for a claim based upon an act or omission of
the Trustee performed in the discharge of the Trustee's duties, except for acts
or omissions which involve intentional misconduct or knowing violation of the
law or for a transaction from which the Trustee derives an improper personal
benefit.
The Trustees are responsible for the management of ISJIT, the conduct of its
affairs, and the management and distribution of ISJIT assets. However, the
Trustees are not required personally to conduct all of the affairs of ISJIT.
Consistent with their responsibility, the Trustees have appointed an Adviser, an
Administrator, and Custodian and have assigned to them such duties as the
Trustees have deemed appropriate with regard to the investment, administration,
record keeping, and custody of moneys and investments of ISJIT.
THE ADVISeR
Investors Management Group (IMG), 2203 Grand Avenue, Des Moines, Iowa
50312-5338, an investment adviser registered under the Investment Company Act of
1940, serves as the ISJIT Investment Adviser, pursuant to an Adviser Agreement.
IMG, a wholly-owned subsidiary of AMCORE Financial Inc., was organized in 1982.
Since then, the firm's principal business has been providing continuous
investment management to pension and profit-sharing plans, insurance companies,
public agencies, banks, endowments and charitable institutions, individuals and
others. As of June 30, 2000, IMG had approximately $4.2 billion in equity, fixed
income and money market assets under management. The Trust has been managed by
Kathryn D. Beyer, CFA, Managing Director since 1993. Ms. Beyer is a fixed income
strategist and is a member of IMG's Investment Policy Committee. Her experience
includes serving as a securities analyst and director of mortgage-backed
securities for Central Life Assurance Company. She received her Master of
Business Administration from Drake University and her Bachelor of <PAGE>
Science degree in agricultural engineering from Iowa State University. The
Adviser furnishes ISJIT with advice with respect to ISJIT operations and the
investment of its assets, subject to and in conformity with the Declaration and
the policies adopted by the Board of Trustees. The ISJIT agreement with the
Adviser is approved annually by the Trustees, not assignable, and is cancelable
on 60 days notice by either party without penalty. It will remain in effect
until September 30, 2000, and thereafter as approved by the Trustees. For the
fiscal year ended June 30, 2000, fees paid by ISJIT and ISJIT DGO to IMG for
investment advisory services amounted to $321,674 and $51,233 respectively, or
approximately 0.15 percent of each Fund's average net assets.
THE ADMINISTRATOR
Pursuant to an Administrator Agreement, Wells Fargo Bank Iowa, N.A., 666 Walnut
Street, P. O. Box 837, Des Moines, Iowa 50304-0837, has been retained as
Administrator of ISJIT. The Administrator provides daily account services to
Participants; determines and allocates income of ISJIT; administers all
Portfolio Unit transactions and purchases and sales associated with the Fixed
Term Program; provides administrative personnel, equipment and office space to
ISJIT; determines the net asset value of ISJIT on a daily basis; and performs
all related administrative services for ISJIT. The ISJIT agreement with the
Administrator is approved annually by the Trustees, not assignable, and is
cancelable on 60 days notice by either party without penalty. It will remain in
effect until September 30, 2000, and thereafter as approved by the Trustees.
THE CUSTODIAN
Wells Fargo Bank Iowa, N.A., 666 Walnut, P.O. Box 837, Des Moines, Iowa
50304-0837, acts as Custodian for ISJIT pursuant to a Custodian Agreement. The
Custodian will hold in a separate account all investment instruments and moneys,
including cash received for each Portfolio. Subject to the terms and conditions
of the Custodian Agreement, the Custodian may register or transfer assets of
ISJIT into the Custodian's name or the name of a nominee or nominees provided
that the books and records of the Custodian at all times show that such accounts
are a part of ISJIT. All ISJIT security transactions are handled on the basis of
delivery versus payment of the Custodian or its nominee or nominees. The ISJIT
agreement with the Custodian is approved annually by the Trustees, not
assignable, and is cancelable on 60 days notice by either party without penalty.
It will remain in effect until September 30, 2000, and thereafter as approved by
the Trustees.
ADMINISTRATIVE AND DISTRIBUTION
RELATED SERVICES
The Trust has adopted a Rule 12b-1 Plan ("Plan") which permits the Trust to pay
for certain distribution related expenses. Under the Plan, the Trust pays the
Iowa Association of School Boards, ("IASB"), a fee at the annual rate of 0.10
percent of average net assets for providing to the Trust various administrative
services, including clerical and administrative services in connection with
meetings of the Board of Trustees, evaluation of performance of service
providers, review of compliance with investment policies, providing marketing
assistance, providing the Board of Trustees various reports thereon, and
maintaining Trust records. IASB was instrumental in facilitating the
establishment of the Trust which was and is intended to assist Iowa schools in
cash management, thereby lessening the burdens of government. The Executive
Director of IASB serves as Secretary of ISJIT. The Plan is approved annually by
the Trustees only after careful consideration of whether there is a reasonable
likelihood that the Plan will benefit the Trust and the Participants.
TAXES
Counsel for ISJIT is of the opinion that ISJIT is not subject to Federal or Iowa
income tax and that distributions received by Participants are not taxable to
them.
REPORTS TO PARTICIPANTS
Participants receive an "advice of activity" confirming all transactions
processed. Participants will receive a monthly statement summarizing all
activity on each account opened with ISJIT. This statement will include a list
of all investments currently held by ISJIT for the Participant. In addition,
Participants will be provided monthly performance information illustrating
historical investment performance and yield. ISJIT will issue unaudited
semi-annual reports which will include a list of securities owned by ISJIT and
complete financial statements. It will also issue an annual report containing a
financial report audited by the ISJIT independent auditors, KPMG Peat Marwick
LLP.
DECLARATION OF TRUST
ISJIT was established as of October 1, 1986, as a common law trust under the
laws of the State of Iowa by the adoption and execution of a Joint Powers
Agreement and Declaration by the Iowa Association of School Boards, the
Southeast Polk Community School District and the Pella Community School
District, which served as the initial Participants. Additional Iowa schools
(including 28E organizations) whose boards of directors are members in good
standing of the Iowa Association of School Boards, Inc., may become Participants
in the manner described in this Information Statement. The Declaration was
amended November 1, 1988 and May 1, 1993, and restated as of May 1, 1993.
Each potential Participant is given a copy of the Declaration before it becomes
a Participant. The summary of the Declaration given herein is qualified in its
entirety by reference to the full text of the Declaration.
DESCRIPTION OF TRUST UNITS. The Declaration authorizes an unlimited number of
full and fractional Trust Units which may be issued in series. All Trust Units
of each series participate equally in the allocation of distributions and have
equal liquidation and other rights pertaining to that series. The Trust Units
have no conversion, exchange or preemptive rights.
For all matters requiring a vote of Participants, each Participant is entitled
to one vote with respect to each matter. It is not necessary for <PAGE>
a Participant to hold any minimum number of Trust Units to be entitled to vote.
Participants are not entitled to cumulative voting.
No Trust Units may be transferred to any transferee other than ISJIT itself at
the time of redemption.
PARTICIPANT LIABILITY - The Declaration provides that Participants will not be
subject to any liability whatsoever in tort, contract or otherwise to any other
person or persons in connection with ISJIT property or the affairs of ISJIT. Any
Participant made a party to any suit or proceedings to assert or enforce any
such liability shall not on account thereof be held to any personal liability.
TERMINATION OF THE DECLARATION - ISJIT may be terminated by the affirmative vote
of a majority of Participants entitled to vote at any meeting of Participants or
by an instrument in writing, without a meeting, signed by a majority of the
Trustees and consented to by not less than a majority of the Participants
entitled to vote.
AMENDMENT OF THE DECLARATION - The Declaration may be amended at any meeting of
Participants or by an instrument or instruments in writing, by the affirmative
vote or signed approval of a majority of the Participants. The Trustees, from
time to time, by a two-thirds vote of the Trustees and after fifteen days prior
written notice to the Participants, may amend the Declaration without the vote
or consent of the Participants, to the extent they deem necessary to conform the
Declaration to the requirements of applicable laws or regulations, or any
interpretation thereof by a court or other governmental agency; but the Trustees
shall not be liable for failing to do so.
WITHDRAWAL - A Participant may withdraw from ISJIT at any time by notifying the
Trustees as specified in the Declaration.
DEFINITIONS - Unless otherwise expressly defined herein, words that are
capitalized in this Information Statement have the meaning defined in the Joint
Powers Agreement and Declaration.
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP, 2500 Ruan Center, Des Moines, Iowa 50309, serves as the
ISJIT independent auditors.
DOCUMENT COPIES
Copies of the Joint Powers Agreement and Declaration, the Adviser Agreement, the
Administrator Agreement and the Custodian Agreement can be obtained from the
ISJIT Administrator, Wells Fargo Bank Iowa, N.A., 666 Walnut, P.O. Box 837, Des
Moines, Iowa 50304-0837.
<PAGE>
INSTRUCTIONS AND APPLICATION FORM
HOW TO OPEN ACCOUNTS WITH THE IOWA SCHOOLS JOINT INVESTMENT TRUST (ISJIT)
Any Iowa School Corporation (or 28E organizations whose members are Iowa School
Corporations) whose board of directors are members in good standing with the
Iowa Association of School Boards, Inc., may join ISJIT as a "Participant" and
take full advantage of its investment programs.
A SCHOOL CORPORATION (OR 28E ORGANIZATION) THAT WISHES TO OPEN AN ACCOUNT WITH
ISJIT AND BECOME A PARTICIPANT SHOULD COMPLETE FORMS A AND B.
FORM A (Model Resolution)
The board of directors of the School Corporation or 28E organization must adopt
a resolution in the form as provided by the model resolution. The adopted
resolution must be certified using the certificate provided. The resolution
authorizes the School Corporation to become a Participant of ISJIT and adopts
the Joint Powers Agreement and Declaration. It also designates the officials of
the School Corporation authorized to effect transactions with ISJIT. Form A must
be completed with the School Corporation name, the names, titles and signatures
of authorizing officials, the signatures of the board president and secretary
and a certification signed and notarized by the board secretary. Form A and the
certificate are to be sent with Form B to the Administrator, Wells Fargo Bank
Iowa, N.A. at the address given herein. The school must include a copy of the
resolution along with a copy of the Joint Powers Agreement and Declaration in
the minutes of the meeting at which the resolution is approved.
FORM B (Application Form)
This form must be completed and signed by a school official authorized by board
resolution to transact business with ISJIT. Form B provides all applicable
information about the School Corporation and the local depository bank. After an
application is received by the ISJIT Administrator, it will take approximately
two days to open an account and assign an account number. Once the account is
open, the Participant may make its initial investment according to the
"Instructions for Investment and Withdrawals" given at the back of this
publication. Supplemental Form B should be used for opening additional accounts.
For more information regarding the opening of an account or the use of automated
clearinghouse transfer, please call the ISJIT Administrator toll-free
(800)872-0140.
NOTE: All completed forms should be mailed to the ISJIT Administrator at the
following address:
Iowa Schools Joint Investment Trust
c/o Wells Fargo Bank Iowa, N.A.
666 Walnut, P.O. Box 837
Des Moines, Iowa 50304-0837
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
IOWA SCHOOLS JOINT INVESTMENT TRUST (ISJIT)
RESOLUTION
FORM A Date_________________________________
--------------------------------------------------------------------------------
The Board of Directors (the "Board") of the ______________________ (the "School
Corporation"), met in________________________ (regular or special) session, at
the_________________________________ ,______________________, Iowa at ______
o'clock, on the above date. There were present, President_____________________,
in the chair, and the following named Board Members:
---------------------- ------------------------- -------------------------
---------------------- ------------------------- -------------------------
---------------------- ------------------------- -------------------------
Absent:____________________________ _____________________________
Director __________________________ introduced the following resolution
entitled "Resolution Authorizing the Adoption of a Joint Powers Agreement and
Declaration for the IOWA SCHOOLS JOINT INVESTMENT TRUST ("ISJIT") and
Authorizing Participation Therein," and moved its adoption. Director
_________________ seconded the motion to adopt. The roll was called and the vote
was:
Ayes:________________________ Nays:___________________________________
RESOLUTION AUTHORIZING THE APPROVAL OF A
JOINT POWERS AGREEMENT AND DECLARATION OF TRUST
FOR THE IOWA SCHOOLS JOINT INVESTMENT TRUST
AND AUTHORIZING PARTICIPATION THEREIN
WHEREAS, the Iowa Association of School Boards, Inc., is a nonprofit
corporation organized and existing under the laws of the State of Iowa; the
Pella Community School District and the Southeast Polk Community School District
in the State of Iowa are municipal corporations and political subdivisions
organized under and by virtue of the laws and Constitution of the State of Iowa;
and
WHEREAS, the Iowa Association of School Boards, Inc., the Pella Community
School District and the Southeast Polk Community School District have approved
the Joint Powers Agreement and Declaration and have established the Iowa Schools
Joint Investment Trust as of October 1, 1986; and
WHEREAS, Iowa Code section 28E.1 permits political subdivisions to make
efficient use of their powers enabling them to provide joint services with other
agencies and to cooperate in other ways of mutual advantage, and to exercise and
enjoy jointly any powers, privileges or authority exercised or capable of being
exercised by the School Corporation with any other school corporation or public
agency of this state or private agencies for joint or cooperative action; and
WHEREAS, Iowa Code section 279.29 empowers school corporations to invest
their moneys pursuant to a joint investment agreement; and
WHEREAS, this Board desires to adopt and enter into the Joint Powers
Agreement and Declaration as amended, and it is in the best interest of this
School Corporation to participate in the Iowa Schools Joint Investment Trust for
the purpose of the joint investment of this School Corporation's moneys with
other school corporations so as to enhance investment earnings accruing to each;
and
WHEREAS, this Board deems it to be advisable for this School Corporation to
make use of the Fixed Term Automated Investment Program available to
Participants of ISJIT;
================================================================================
<PAGE>
NOW, THEREFORE, BE IT RESOLVED:
Section 1. The Joint Powers Agreement and Declaration is approved and
adopted. This School Corporation joins with the other school corporations in
accordance with the Joint Powers Agreement and Declaration as amended, which is
incorporated herein by reference with the same effect as if it had been set out
verbatim in this Resolution. A copy of the Joint Powers Agreement and
Declaration as amended is filed in the minutes of this meeting. The President
and Secretary of this Board are authorized and directed to take actions and
execute documents necessary to effect the entry of this School Corporation into
the Declaration to carry out the intent and purposes of this Resolution.
Section 2. This School Corporation is hereby authorized to invest its
available moneys from time to time and to withdraw such moneys from time to time
in accordance with the provisions of the Joint Powers Agreement and Declaration
and the Fixed Term Automated Investment Program of ISJIT.
Section 3. The following officers and officials of this School Corporation
and their respective successors in office, are designated as "Authorized
Officials", with full power and authority to invest and withdraw moneys of this
School Corporation in accordance with the Joint Powers Agreement and Declaration
and pursuant to the Fixed Term Automated Investment Program of ISJIT. The Board
Secretary must notify ISJIT of any changes in Authorized Officials in accordance
with procedures established by ISJIT.
-------------------- ------------------------ -------------------------
Printed Name Signature Title
-------------------- ------------------------ -------------------------
Printed Name Signature Title
-------------------- ------------------------ -------------------------
Printed Name Signature Title
Section 4. Payment for Fixed Term Automated Investments is authorized to be
made from the School Corporation's designated ISJIT Account. Interest and
principal payments of investments shall be credited to the School Corporation's
designated ISJIT account. Fixed Term Automated Investments shall be held by the
Custodian in the name of ISJIT for the account of the School Corporation.
Section 5. The Trustees of ISJIT are designated as having official custody
of this School Corporation's moneys, which are invested in accordance with the
Joint Powers Agreement and Declaration and any moneys invested in accordance
with ISJIT's Fixed Term Automated Investment Program.
Section 6. ISJIT is authorized to designate and name depositories and to
file Form CPE-31019, to execute documents, and to take necessary actions to
purchase and make payment, sell, secure, or take payment of principal and
interest. Certificates of Deposit must be purchased only from financial
institutions designated by ISJIT, which are approved depositories as prescribed
in Iowa Code chapter 573.
Section 7. Authorization is given for members of this Board and officials
of this School Corporation to serve as Trustees of ISJIT from time to time, if
selected, pursuant to the provisions of the Joint Powers Agreement and
Declaration.
Section 8. Unless otherwise expressly defined herein, words that are
capitalized in this Resolution have the meanings defined in the Joint Powers
Agreement and Declaration.
Passed and approved this_______ day of_________________, ____.
-------------------------
President
ATTEST:____________________________
Secretary
Mail one original copy of this form and the secretary's certification along with
FORM B to ISJIT Administrator:
Iowa Schools Joint Investment Trust, Wells Fargo Bank Iowa, N.A.
666 Walnut, P.O. Box 837, Des Moines, Iowa 50304-0837
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
FORM A CERTIFICATE
--------------------------------------------------------------------------------
STATE OF IOWA )
) SS:
COUNTY OF )
I, the undersigned Secretary of _______________________________________,
State of Iowa, certify that attached is a complete copy of the records of this
School Corporation, and the same is a complete copy of the action taken by the
Board of Directors with respect to this matter at the meeting held on this date;
these proceedings remain in full force and effect and have not been amended or
rescinded in any way; that the meeting and all action was publicly held in
accordance with a Notice of Public Meetings and tentative agenda, a copy of
which was timely served on each member of the Board and posted on a bulletin
board or other prominent place easily accessible to the public and clearly
designated for that purpose, at the principal office of the School Corporation
and in accordance with the provisions of Iowa Code chapter 21, with at least 24
hours advance notice to the public and media as required by law and with members
of the public present in attendance.
I further certify that the individuals named were on this date lawfully
possessed of their respective offices as indicated, that no vacancy existed
except as may be stated in these proceedings, and that no controversy or
litigation is pending, prayed or threatened involving the incorporation,
organization, existence or boundaries of the School Corporation or the right of
the individuals named as officers to their respective positions.
Witness my hand hereto affixed this______ day of__________________, _____.
By_______________________________________
Secretary
Subscribed and sworn to before me on the______ day of________________, _____.
---------------------------------------
Notary Public
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
APPLICATION FORM
FORM B
--------------------------------------------------------------------------------
I. BASIC INFORMATION
Name of School Corporation
Mailing Address
Contact Person and Title
Telephone Number ( )
--------------------------------------------------------------------------------
II. ISJIT ACCOUNT INFORMATION
Authority is given to Wells Fargo Bank Iowa, N.A., as ISJIT Administrator
to open the following Account(s).
-------------------------------------------------------------------------
Name to appear on this Account (e.g. General Fund, Schoolhouse Fund,etc.)
Name of local depository for funds transfer______________________________
City___________________________________________________
Telephone Number (____)________________________________
Depository Account Number to be accessed_________________________________
Checking Savings
(FOR YOUR PROTECTION,EACH ISJIT ACCOUNT MAY ACCESS ONLY ONE DEPOSITORY ACCOUNT.)
Local depository ABA Routing Number:____________________________________________
(THIS CAN BE OBTAINED FROM THE BOTTOM OF A BLANK CHECK OR BY CALLING YOUR
DEPOSITORY.)
**TO OPEN ADDITIONAL ISJIT ACCOUNTS USE SUPPLEMENTAL FORM B**
--------------------------------------------------------------------------------
III. DEPOSIT/WITHDRAWAL INFORMATION AND AUTHORIZATION
Authorization is given to Wells Fargo Bank Iowa, N.A., as ISJIT
Administrator, to honor any request believed to be authentic for
investment to or withdrawal from the ISJIT Accounts. Moneys will be
transferred only upon telephone, written or personal notice from an
authorized official of the School Corporation. Upon notification, Wells
Fargo Bank Iowa, N.A., will initiate debit and credit entries to the
local depository account(s) indicated and the local depository(ies) are
authorized to further debit and credit the same to the accounts(s).
Transfer must be made by Automated Clearinghouse Transfer (ACH), if
available, unless otherwise directed by the School Corporation. There is
no direct charge for ACH transfers.
IV. INFORMATION STATEMENT AND DECLARATION
It is certified that the School Corporation has received a copy of the
Information Statement of ISJIT and a copy of the Joint Powers Agreement
and Declaration and agrees to be bound by the terms of such documents.
V. EFFECTIVENESS OF APPLICATION FORM
The information, certifications and authorizations set forth on this
application form remain in full force and effect until the ISJIT
Administrator receives written notification of a change.
VI. APPLICATION SIGNATURE
Application is made and executed this______day of________________, _____.
Name:___________________________ Title:______________________________
Signature______________________________________
This application form must be signed by a school official authorized by board
resolution to transact business with ISJIT. (See resolution Form A for
Authorized Officials). Mail this form along with Form A to the ISJIT
Administrator.
--------------------------------------------------------------------------------
<PAGE>
SUPPLEMENTAL FORM B
TO BE USED FOR OPENING ADDITIONAL ACCOUNTS
IOWA SCHOOLS JOINT INVESTMENT TRUST
School Corporation ________________________________________________
ISJIT ACCOUNT INFORMATION
Authority is given to Wells Fargo Bank Iowa, as ISJIT Administrator, to open the
following Account(s).
--------------------------------------------------------------------------------
Name to appear on this Account (e.g. General Fund, Schoolhouse Fund, etc.)
--------------------------------------------------------------------------------
Name of local depository for funds transfer_____________________________________
City______________________________________________________
Telephone Number (____)__________________________
Depository Account Number to be accessed________________________________________
Checking Savings
(For your protection,each ISJIT Account may access only one depository account.)
Local depository ABA Routing
Number:____________________________________________
(This can be obtained from the bottom of a blank check
or by calling your depository.)
--------------------------------------------------------------------------------
Name to appear on this Account (e.g. General Fund, Schoolhouse Fund, etc.)
--------------------------------------------------------------------------------
Name of local depository for funds transfer_____________________________________
City_____________________________________________________
Telephone Number (_____)______________________________
Depository Account Number to be accessed________________________________________
Checking Savings
(For your protection,each ISJIT Account may access only one depository account.)
Local depository ABA Routing
Number:____________________________________________
(This can be obtained from the bottom of a blank
check or by calling your depository.)
--------------------------------------------
Signature of Authorized Official
This form may be photocopied
<PAGE>
INSTRUCTIONS FOR
MAKING INVESTMENTS
TO MAKE AN INVESTMENT BY AUTOMATED CLEARINGHOUSE (ACH) DEBIT:
(Interest always begins the following business day)
1. Call (800)872-0140 prior to 2:00 p.m. and an ISJIT representative will
answer - "Iowa Schools Cash Management."
2. Say: "This is (Your Name) with ___________ School Corporation, ISJIT
account number ___________, with an ACH Investment, in the amount of
$___________. My local checking/savings account number is ___________."
3. The ISJIT representative will repeat the information given and acknowledge
that the Investment is accepted.
NOTE: Notice must be received prior to 2:00 p.m. to begin earning interest the
next business day.
TO MAKE AN INVESTMENT BY WIRING MONEYS:
(Interest begins same day)
1. Call (800)872-0140 prior to 10:00 a.m. and an ISJIT representative will
answer - "Iowa Schools Cash Management."
2. Say: "This is (Your Name) with ___________ School Corporation, ISJIT
account number ____________ with a wire investment in the amount of
$___________. This will be coming from (Financial Institution Name and
Location)."
3. The ISJIT representative will repeat the information given and acknowledge
the investment.
4. Instruct your local Financial Institution to wire moneys to Wells Fargo
Bank Iowa, N.A., Des Moines, ABA #073000228, credit #405200, Iowa Schools
Joint Investment Trust, further credit to (School Corporation and ISJIT
account number).
NOTE: To be credited the same day, the Participant must call before 10:00 a.m.
and the local financial institution
must deposit money with the federal reserve wire system no later than 11:00 a.m.
TO MAKE AN INVESTMENT BY CHECK OR BANK DRAFT:
(Interest begins usually one business day following receipt)
1. Mail or deliver checks endorsed for deposit or made payable to Wells Fargo
Bank Iowa N.A., along with investment instructions, giving the School
Corporation name, ISJIT account number, and investment amount. Mail or
deliver to:
Iowa Schools Joint Investment Trust
c/o Wells Fargo Bank Iowa N.A.
666 Walnut, P.O. Box 837
Des Moines, IA 50304-0837
INSTRUCTIONS FOR
MAKING WITHDRAWALS
TO MAKE A WITHDRAWAL BY AUTOMATED CLEARINGHOUSE (ACH) CREDIT:
(Moneys transferred next business day after request)
1. Call (800)872-0140 prior to 2:00 p.m. and an ISJIT representative will
answer - "Iowa Schools Cash Management."
2. Say: "This is (Your Name) with ___________ School Corporation, ISJIT
account number ___________ with an ACH withdrawal request, in the amount of
$___________. My local checking/savings account number is ___________."
3. The ISJIT representative will repeat the information given and acknowledge
the withdrawal.
NOTE: Notice must be received prior to 2:00 p.m. for moneys to be on deposit in
your local bank the next business day.
TO MAKE A WITHDRAWAL BY WIRING MONEYS:
(Moneys transferred same day)
1. Call (800)872-0140 prior to 10:00 a.m. and an ISJIT representative will
answer: - "Iowa Schools Cash Management."
2. Say: "This is (Your Name) with ___________ School Corporation, ISJIT
account number ___________, with a wire withdrawal request, in the amount
of $___________."
3. Provide instructions for wiring, including local financial institution,
location, account number, and name and telephone number of a contact person
at that financial institution.
4. The ISJIT representative will repeat the information given and acknowledge
the withdrawal.
NOTE: Notice must be received prior to 10:00 a.m. for transfers to be made the
same day.
TO RECEIVE A CHECK BY MAIL:
(This option is available but not recommended since the ISJIT account is
debited same day check is written)
Call (800)872-0140 and an ISJIT representative will assist you.
<PAGE>
