093_SR0171

 
                                     LRB093 12067 NHT 16808 r

 1                          SENATE RESOLUTION

 2        WHEREAS,  Section  8-7  of  the  School  Code  authorizes
 3    township   and   school    treasurers    to    "enter    into
 4    agreements...regarding  the  deposit,  redeposit, investment,
 5    reinvestment  or  withdrawal  of  school  funds,   including,
 6    without limitation, agreements with other township and school
 7    treasurers"; and

 8        WHEREAS, Section 3-47 of the Public Community College Act
 9    authorizes   community   college  districts  to  "enter  into
10    agreements...regarding the  deposit,  redeposit,  investment,
11    reinvestment   or  withdrawal  of  community  college  funds,
12    including, without limitation, agreements with...township and
13    school treasurers authorized by Section  8-7  of  the  School
14    Code"; and

15        WHEREAS,  Under the authority provided by those statutes,
16    the Illinois School District Liquid Asset Fund Plus, a common
17    law trust, was created; and

18        WHEREAS, Hundreds of  Illinois  school  districts  invest
19    public moneys in the Fund; and

20        WHEREAS,  Section  2.14(d)  of  the Fund's Declaration of
21    Trust states, "any Trustee or officer, employee or  agent  of
22    the  Fund  may  be interested...or otherwise have a direct or
23    indirect interest in, any Person who may be engaged to render
24    advice or services to the Fund"; and

25        WHEREAS,  A  recent  news  report  involving  the   Worth
26    Township  School  Treasurer,  a  former  Trustee of the Fund,
27    questions certain activities involving the Fund; and

28        WHEREAS,  In  1997  the  State  Treasurer   had   ongoing
29    questions   concerning  the  Fund's  investment  in  banker's
30    acceptances, which was  determined  to  be  an  inappropriate
31    investment  by  the  State's  Attorney  General at that time;
 
                            -2-      LRB093 12067 NHT 16808 r
 1    therefore, be it

 2        RESOLVED, BY  THE  SENATE  OF  THE  NINETY-THIRD  GENERAL
 3    ASSEMBLY  OF  THE  STATE OF ILLINOIS, that we ask the Auditor
 4    General to conduct a management audit of the Illinois  School
 5    District Liquid Asset Fund Plus; and be it further

 6        RESOLVED,  That  the audit include without limitation (i)
 7    whether the Fund's provisions regarding conflicts of interest
 8    are sufficient and comparable to other pools investing public
 9    moneys, (ii) whether the Fund's performance is comparable  to
10    other  pools  investing  public  moneys,  and  (iii)  whether
11    controls  are  in  place  to adequately protect public moneys
12    invested in the Fund; and be it further

13        RESOLVED, That the  Fund,  its  Trustees,  officers,  and
14    employees,  its  agents and contractors, and any other entity
15    or person that may have information relevant  to  this  audit
16    cooperate  fully  and promptly with the Office of the Auditor
17    General in the conduct of this audit; and be it further

18        RESOLVED, That the Auditor General commence this audit as
19    soon as possible and distribute the report upon completion in
20    accordance with Section 3-14 of the Illinois  State  Auditing
21    Act; and be it further

22        RESOLVED,  That  a  suitable  copy  of this resolution be
23    delivered to the Auditor General.