What is the main purpose of the 'Investment of Public Funds Act'?

The 'Investment of Public Funds Act' is primarily designed to ensure that public funds are invested in a manner that prioritizes safety and liquidity. This means that the Act outlines guidelines and restrictions that help protect public funds from undue risk while also ensuring that these funds are readily accessible when needed. The focus is on safeguarding taxpayer money, reducing the potential for losses, and maintaining an adequate level of liquidity to meet public obligations. By regulating the investment strategies employed by public entities, the Act promotes responsible fiscal management, ensuring that funds are managed prudently and sustainably within a framework that supports the financial health of public organizations.

High-risk investments are not the aim of the Act, as it seeks to create a conservative investment approach to protect public funds. Eliminating all investment risks is not feasible due to the nature of financial markets, and governing private sector investment strategies is outside the scope of this Act, which is specifically focused on public funds.