(30 ILCS 235/2.5)
    Sec. 2.5. Investment policy.
    (a) Investment of public funds by a public agency shall be governed by a written investment policy adopted by the public agency. The level of detail and complexity of the investment policy shall be appropriate to the nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio. The policy shall address safety of principal, liquidity of funds, and return on investment and shall require that the investment portfolio be structured in such manner as to provide sufficient liquidity to pay obligations as they come due. In addition, the investment policy shall include or address the following:
        (1) a listing of authorized investments;
        (2) a rule, such as the "prudent person rule",
    
establishing the standard of care that must be maintained by the persons investing the public funds;
        (3) investment guidelines that are appropriate to the
    
nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio;
        (4) a policy regarding diversification of the
    
investment portfolio that is appropriate to the nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio;
        (5) guidelines regarding collateral requirements, if
    
any, for the deposit of public funds in a financial institution made pursuant to this Act, and, if applicable, guidelines for contractual arrangements for the custody and safekeeping of that collateral;
        (6) a policy regarding the establishment of a system
    
of internal controls and written operational procedures designed to prevent losses of funds that might arise from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the entity;
        (7) identification of the chief investment officer
    
who is responsible for establishing the internal controls and written procedures for the operation of the investment program;
        (8) performance measures that are appropriate to the
    
nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio;
        (9) a policy regarding appropriate periodic review of
    
the investment portfolio, its effectiveness in meeting the public agency's needs for safety, liquidity, rate of return, and diversification, and its general performance;
        (10) a policy establishing at least quarterly written
    
reports of investment activities by the public agency's chief financial officer for submission to the governing body and chief executive officer of the public agency. The reports shall include information regarding securities in the portfolio by class or type, book value, income earned, and market value as of the report date;
        (11) a policy regarding the selection of investment
    
advisors, money managers, and financial institutions; and
        (12) a policy regarding ethics and conflicts of
    
interest.
    (b) For purposes of the State or a county, the investment policy shall be adopted by the elected treasurer and presented to the chief executive officer and the governing body. For purposes of any other public agency, the investment policy shall be adopted by the governing body of the public agency.
    (c) The investment policy shall be made available to the public at the main administrative office of the public agency.
    (d) The written investment policy required under this Section shall be developed and implemented by January 1, 2000.
(Source: P.A. 90-688, eff. 7-31-98.)