In 1989, the National Association of State Treasurers (NAST) released its first suggested guidelines for local government investment pools (LGIPs). The guidelines provided the framework for the formulation of disclosure policies for LGIPs. In response to the growing use and interest in LGIPs, NAST has recently updated these guidelines.

NAST and the Government Finance Officers Association (GFOA) recognize that potential pool participants have several alternative investment vehicles from which to choose. The goal of a disclosure statement, which is outlined in the NAST Guidelines, is to ensure that local government investment officials, when choosing among their available investment options, are fully aware of significant investment and administrative policies, practices, and restrictions of the pool and thereby are able to make informed investment decisions.

GFOA Position

The GFOA endorses the NAST Guidelines. GFOA encourages NAST to continue working with its members to implement these disclosure policies within state-operated pools as soon as practical. The GFOA urges further that the NAST Guidelines for Local Government Investment Pools be adopted and implemented by all local government investment pools. The GFOA will work further in this area and invites the continued participation and support of the National Association of State Treasurers.

• Publication date: May 1996