Iowa Public Agency Investment Trust N-CSR Certified annual shareholder report (management investment company)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

REGISTRATION NO.
811-07696

IOWA PUBLIC AGENCY INVESTMENT TRUST
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
1415 28^th STREET, SUITE 200
WEST DES MOINES, IOWA 50266
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

Elizabeth Grob, Esq.

Ahlers & Cooney, P.C.

100 Court Avenue, Suite 600, Des Moines, Iowa 50309

 (NAME AND ADDRESS OF AGENT FOR SERVICE)

COPIES OF ALL COMMUNICATIONS TO:

Gweneth K. Gosselink	John C. Miles, ESQ.
Iowa Public Agency Investment Trust	Cline, Williams, Wright, Johnson & Oldfather
1415 28th Street, Suite 200	1900 U.S. Bank Building, 233 S. 13TH Street
West Des Moines, Iowa 50266	Lincoln, Nebraska 68508

Registrant’s Telephone Number, Including Area Code: (515) 244-5426

Date of fiscal year end: 06/30

Date of reporting period: 06/30/2015

Item 1. Reports to Unitholders.

IOWA PUBLIC AGENCY INVESTMENT TRUST

  www.IPAIT.org

DIVERSIFIED PORTFOLIO ANNUAL FINANCIAL REPORT

FISCAL YEAR ENDING JUNE 30, 2015

The Fund is distributed by Miles Capital, Inc.

Shares of the Fund are NOT INSURED BY THE FDIC.  Investment products involve investment risk, including the possible loss of principal.  Past performance is not predictive of future results, and the composition of the Fund’s portfolio is subject to change.

This annual report is not authorized for distribution unless accompanied or preceded by a current Information Statement also known as a prospectus.  An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money.  This and other important information about the investment company can be found in the Fund’s Information Statement.  To obtain more information, please call 800-872-4024 or visit the website IPAIT.org.  Please read the Information Statement carefully before investing.

TABLE OF CONTENTS

INTRODUCTORY SECTION

Letter from the Chair

3

Board of Trustees

5

Service Providers

7

Organization Chart

8

FINANCIAL SECTION

Report of Independent Registered Public Accounting Firm

9

Management’s Discussion and Analysis

11

Schedule of Investments

14

Statement of Net Assets

16

Statements of Operations

17

Statements of Changes in Net Assets

17

Notes to Financial Statements

18

Financial Highlights

21

INVESTMENT SECTION

Fund Facts Summary

22

Introduction

23

Risk Profile

24

Performance Summary

25

Fund Expenses

26

Statement of Additional Information

28

Investment Commentary

29

IPAIT Investment Policy

30

Investing and Non-Investing Participants

34

STATISTICAL SECTION

Statistical Information

36

Changes in Net Assets

38

Glossary of Investment Terms

39

1

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2

 LETTER FROM THE CHAIR (UNAUDITED)

August 24, 2015

Dear Fellow IPAIT Participants:

The Iowa Public Agency Investment Trust (IPAIT) is pleased to submit the Diversified Portfolio Annual Financial Report for the Fiscal Year ended June 30, 2015.  

About the Report

While IPAIT's financial statements and the related financial data contained in this report have been prepared in conformity with U.S. generally accepted accounting principles and have been audited by IPAIT's Independent Registered Public Accounting Firm, KPMG LLP, the ultimate accuracy and validity of this information is the responsibility of the management of the Iowa Public Agency Investment Trust Board of Trustees.  To carry out this responsibility, the Board of Trustees maintains financial policies, procedures, accounting systems and internal controls which the Board believes provide reasonable, but not absolute, assurance that accurate financial records are maintained and investment assets are safeguarded.

In addition, the three ex-officio non-voting trustees meet with the Program's service providers and legal counsel to review all aspects of IPAIT performance each month.  The Board of Trustees meets quarterly to similarly review Program performance and compliance.  In addition, the IPAIT Board of Trustees regularly subjects IPAIT to a comprehensive review of all services and costs of operation.

In the Board's opinion, IPAIT's internal controls are adequate to ensure that the financial information in this report presents fairly the IPAIT Diversified Portfolio operations and financial condition.

The Federal Reserve has continued to keep interest rates at historically low levels targeting 0.00-0.25 percent since December 16, 2008.  During this period, the IPAIT Diversified Portfolio maintained yields comparable to other money market funds.  For a detailed review of the Fund, please refer to Management’s Discussion and Analysis and the Investment Commentary from IPAIT’s Investment Adviser in this report.

Investment Policies and Strategies

IPAIT was created pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to effectively invest their available operating and reserve funds in a competitive rate environment,that focuses on safety of principal and liquidity.  The Diversified Portfolio has followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception.

Investment Safeguards

The Fund continues to be focused on the investment objectives as stated in the IPAIT Investment Policy.  These goals, in order of priority are: safety of invested principal, maintenance of liquidity, and maximum yield.  Within these objectives, the Fund strives to provide participants with the best available rate of return for legally authorized investments.  All security settlements within the Fund are settled on a delivery-versus-payment (DVP) basis.  DVP settlements greatly reduce the possibility of inappropriate transmission of funds or securities.

Reliability of Investment Section

All commentary and displays in the Investment Section were prepared by IPAIT's service provider, Miles Capital, the program's Investment Adviser, Administrative Services provider, and Program Support provider.  Miles Capital has provided services to the IPAIT program since the program's inception in 1987.  All services provided by IPAIT to participants are subject to rigorous and regular verification.

3

LETTER FROM THE CHAIR (UNAUDITED)

Miles Capital and IPAIT have designed internal controls and procedures to ensure that material information is made known to the principal executive officers, David Miles (Chief Executive Officer), Gwen Gosselink (Chief Compliance Officer), and Amy Mitchell (Chief Financial Officer), respectively during the reporting period for the semi-annual and annual report to shareholders.  These individuals are required to report any deficiencies and any actual or alleged fraud to the Fund Auditor and to the Executive Committee immediately upon discovery.

Participant Meetings

IPAIT had a participant meeting during the fiscal year with two proposals considered, election of the Board of Trustees and the selection of program auditors.  Details of the meeting results and proposal responses can be found later in this report.

Summary

On behalf of IPAIT's Board of Trustees, sponsoring associations and service providers, we thank you for your continued support of the Iowa Public Agency Investment Trust.  We encourage you to contact us with comments and suggestions regarding any improvements to the operation of IPAIT.  Your involvement in IPAIT is essential in its ability to provide a competitive investment alternative, and ongoing program opportunities for association members.

As we begin Fiscal Year 2015-2016, IPAIT will continue to be guided by its objectives of safety of principal, liquidity, and competitive return.  In addition, IPAIT will be an excellent resource as a user-friendly investment alternative and also an educational resource.  The website provides monthly updates as well as access to the secure IPASonline system.  We collectively pledge to continue working together to provide a viable investment option for every participant.

Respectfully,

Brent Hinson

Chair, Board of Trustees

4

 BOARD OF TRUSTEES (UNAUDITED)

Alan Kemp

Executive Director,

Iowa League of Cities

IPAIT Secretary to the Board

William Peterson

Executive Director,

Iowa State Association of Counties

IPAIT Treasurer to the Board

Troy DeJoode

Executive Director,

Iowa Association of Municipal Utilities

IPAIT Assistant Secretary to the Board

Brent Hinson

City Administrator

City of Washington

Michelle Weidner

Chief Financial Officer

City of Waterloo

*Tim Stiles

Finance Director

City of West Des Moines

Craig Anderson

Board of Supervisors

Plymouth County

*Renee Twedt

County Treasurer

Story County

*Randy Jacobsma

County Treasurer

Sioux County

Steven Pick

General Manager

Spencer Municipal Utilities

Greg Fritz

Chief Executive Officer

NIMECA

Paula Meyer

Finance Manager, Treasurer

West Des Moines Water Works

*The Board of Trustees have nominated and appointed a trustee to serve in place of the retired Trustee until the next Participant meeting on August 24, 2015.    

The trustees and officers are not compensated for Board service.  Expenses incurred in attending meetings are paid by the Trust.

5

 BOARD OF TRUSTEES (UNAUDITED)

Name	Address	Age	Position held with IPAIT	Term of Office	Length of Time Served	Principal Occupation During Past Five Years	Number of Portfolios Overseen by Trustee	Outside SEC Directorships Past 5 years
Craig Anderson	215 4th Avenue SE LeMars, IA 51031	61	Trustee	Term Ending 2018	Since 2013	Plymouth County Board of Supervisors Self-employed Farmer	1	None
Greg Fritz	1011 12th Ave. North Humboldt, IA 52353	43	Trustee Second Vice Chair	Term Ending 2017	Since 2013	Chief Executive Officer, NIMECA	1	None
Brent Hinson	215 E. Washington St. Washington, IA 52353	37	Trustee Chair	Term Ending 2016	Since 2010	City Administrator City of Washington	1	None
Randy Jacobsma	104 1st Street SE Orange City, IA 51041	50	Trustee	Term Ending 2016	Since January, 2015	Sioux County Treasurer	1	None
Paula Meyer	4200 Mills Civic Parkway West Des Moines, IA 50265	57	Trustee	Term Ending 2018	Since 2013	Finance Manager, Treasurer West Des Moines Water Works	1	None
Steven Pick	520 2nd Ave E, Suite 1 Spencer, IA 51301	41	Trustee	Term Ending 2016	Since April, 2014	General Manager, Spencer Municipal Utilities	1	None
Tim Stiles	4200 Mills Civic Pkwy West Des Moines, IA 50265	47	Trustee	Term Ending 2018	Since July, 2015	Finance Director, City of West Des Moines	1	None
Renee Twedt	900 Sixth Street Nevada, IA 50201	46	Trustee	Term Ending 2017	Since January, 2015	Story County Treasurer 2011 – Present Allen L. Kockler Co. 1989 - 2011	1	None
Michelle Weidner	715 Mulberry Street Waterloo, IA 50703	53	Trustee	Term Ending 2017	Since 2013	Waterloo, Iowa Chief Financial Officer	1	None
Alan Kemp Ex Officio Non-Voting Trustee	500 SW 7th Suite 101 Des Moines, IA  50309	54	IPAIT Secretary		Since 2007	Iowa League of Cities Executive Director
William Peterson Ex Officio Non-Voting Trustee	5500 Westown Pkwy, Ste 190 West Des Moines, IA  50266	65	IPAIT Treasurer		Since 1994	Iowa State Association of Counties Executive Director
Troy DeJoode Ex Officio Non-Voting Trustee	1735 NE 70th Ave. Ankeny, IA  50021	44	IPAIT Assistant Secretary		Since January, 2014	Iowa Association of Municipal Utilities Executive Director

The trustees and officers are not compensated for Board service.  Expenses incurred in attending meetings are paid by the Trust.

6

 SERVICE PROVIDERS (UNAUDITED)

Service Providers

Sponsoring Associations

Iowa Association of Municipal Utilities

1735 NE 70th Avenue

Ankeny, IA 50021-9353

Troy DeJoode, Executive Director

tdejoode@iamu.org

515-289-1999

Iowa State Association of Counties

5500 Westown Parkway, Suite 190
West Des Moines, IA 50266-8202

William Peterson, Executive Director

bpeterson@iowacounties.org

515-244-7181

Iowa League of Cities

500 SW 7^th Street, Suite 101

Des Moines, IA 50309

Alan Kemp, Executive Director

alankemp@iowaleague.org

515-244-7282

Legal Counsel

AHLERS & COONEY, P.C.

100 Court Avenue, Suite 600

Des Moines, IA 50309

Elizabeth Grob 515-246-0305

egrob@ahlerslaw.com

Investment Adviser

Administrator

Program Support

Miles Capital

Century II Building

1415 28th Street, Suite 200

West Des Moines, IA 50266-1461

Laurie Mardis 515-224-2719

lmardis@miles-capital.com

Amy Mitchell 515-224-2720

amitchell@miles-capital.com

Anita Tracy 515-224-2725

atracy@miles-capital.com

Gwen Gosselink 515-224-2716

ggosselink@miles-capital.com

Dan Zomermaand 515-224-2723

dzomermaand@miles-capital.com

Custodian

Wells Fargo Bank, N.A.

MAC N9311-115

625 Marquette Avenue, 11th Floor
Minneapolis, MN 55479

Brent Jordahl 612-316-0112

brent.m.jordahl@wellsfargo.com

Independent Registered Public Accounting Firm

KPMG LLP

2500 Ruan Center

Des Moines, IA 50309

Michael D. Martens 515-697-1350

mmartens@kpmg.com

7

ORGANIZATION CHART (UNAUDITED)

Organization Chart

IPAIT Board of Trustees

Brent Hinson, Chair and Trustee

Craig Anderson, Vice Chair and Trustee

Greg Fritz, Second Vice Chair and Trustee

Randy Jacobsma, Trustee*

Paula Meyer, Trustee

Michelle Weidner, Trustee

Tim Stiles, Trustee*

Renee Twedt, Trustee*

Steven Pick, Trustee

*The Board of Trustees have nominated and appointed a trustee to serve

 in place of the retired Trustee until the next Participant meeting on August 24, 2015.   

IPAIT Sponsoring Association

Iowa League of Cities

Alan Kemp

Iowa State Association of Counties

William Peterson

Iowa Association of Municipal Utilities

Troy DeJoode

IPAIT Custodian

Wells Fargo Bank, N.A.

Brent Jordahl

IPAIT Investment Advisor

Miles Capital

Laurie Mardis

IPAIT Administrator

Miles Capital

Amy Mitchell

Anita Tracy

IPAIT Program Support

Miles Capital

Dan Zomermaand

Amy Mitchell

IPAIT Legal Counsel

Ahlers & Cooney, P.C.

Elizabeth Grob

IPAIT Independent Registered Public Accounting Firm

KPMG LLP

Michael D. Martens

8

KPMG LLP

2500 Ruan Center

666 Grand Avenue

Des Moines, IA  50309

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Unitholders
Iowa Public Agency Investment Trust:

We have audited the accompanying statement of net assets of the Diversified Portfolio of the Iowa Public Agency Investment Trust (the Fund), including the schedule of investments, as of June 30, 2015, and the related statements of operations and 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 financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States) and the standards applicable to financial statement audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2015, by correspondence with custodians and brokers. 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 and financial highlights referred to above present fairly, in all material respects, the financial position of the Diversified Portfolio of the Iowa Public Agency Investment Trust as of June 30, 2015, and the results of its operations and the changes in its 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, in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated August 24, 2015 on our consideration of the Fund’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audits. 

U.S. generally accepted accounting principles require that the management’s discussion and analysis on pages 11-13 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries with management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

/s/KPMG LLP

Des Moines, Iowa
August 24, 2015

10

 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)

This section of the IPAIT Diversified Portfolio’s Comprehensive Annual Financial Report presents management’s discussion and analysis of the financial position and results of operations as of and for the fiscal years ended June 30, 2015 (FY 15) and 2014 (FY 14).  This information is being presented to provide additional information regarding the activities of IPAIT, pursuant to the requirements of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, Statement No. 37, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments: Omnibus, and Statement No. 38, Certain Financial Statement Note Disclosures (Statements Nos. 34, 37, and 38).  This discussion and analysis should be read in conjunction with the basic financial statements of IPAIT’s Diversified Portfolio.

OVERVIEW OF THE FINANCIAL STATEMENTS

The Management’s Discussion and Analysis provides an introduction to and overview of the basic financial statements of IPAIT’s Diversified Portfolio.  The following components comprise the financial statements:  1) Schedule of Investments, 2) Statement of Net Assets, 3) Statements of Operations, 4) Statements of Changes in Net Assets, and 5) Notes to Financial Statements.

• The Schedule of Investments lists each security held by the portfolio as of the date of current fiscal year end.The Statement of Net Assets shows the financial position (assets and liabilities) of the portfolio as of the date of the current fiscal year end.
• The Statements of Operations display the results of operations (income and expenses) of the portfolio for the two most recent fiscal years.
• The Statements of Changes in Net Assets display the results of additions (net investment income, unit sales, and reinvestments) and deductions (dividends and unit redemptions) of the portfolio for the two most recent fiscal years.
• The Notes to Financial Statements describe significant accounting policies and disclose summary security transaction amounts of the portfolio and other information required by U.S. generally accepted accounting principles.

MANAGEMENT’S DISCUSSION AND ANALYSIS

Year-over-year changes in most financial statement amounts reported in IPAIT’s Diversified Portfolio are most significantly impacted by the level of average net assets (which fluctuates based on the overall levels of pool participant/unitholder invested balances).  The pool is the portfolio.  Additionally, changes in the short-term interest rate environment (which follows the general trend established by monetary policy set by the Federal Reserve) contribute to year-over-year variances in the amount of investment income earned by the portfolio.  Over the twelve months ended June 30, 2015, the Federal Reserve’s Federal Open Market Committee did not change the Fed Funds target rate from a range of zero to 0.25 percent.  The Fed Funds target rate was set from a range of zero to 0.25 percent on December 16, 2008.

11

 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)

Condensed financial information and variance explanations for FY 15, as compared to FY 14, follow.

		Percent
Net Assets	June 30, 2015	Change	June 30, 2014
Total investments	$ 297,073,026	-6%	$ 315,533,953
Excess of other assets over total liabilities	124,178	183%	43,919
Net assets held in trust for pool participants	297,197,204	-6%	315,577,872
Average Net Assets	$ 315,975,161	-20%	$ 394,178,911

Total investments and net assets decreased 6 percent, comparing June 30, 2015 and June 30, 2014 amounts.  During FY 15, average net assets decreased 20 percent to $315,975,161 from average net assets of $394,178,911 during FY 14.  The increase in other assets over liabilities during FY 15 was due to interest receivable at June 30, 2015.

		Percent
Change in Net Assets for the years ended	June 30, 2015	Change	June 30, 2014
Investment Income	$ 591,038	15%	$ 512,932
Total Net Expenses	(559,441)	18%	(473,387)
Dividends to unitholders from net investment income	(31,597)	-21%	(39,545)
Net decrease in net assets	(18,380,668)	87%	(140,119,443)
Net assets at beginning of year	315,577,872	-31%	455,697,315
Net assets at end of year	$ 297,197,204	-6%	$ 315,577,872

Investment income increased 15 percent mainly due to higher short term rates from investments in the ICS, Insured Cash Sweep program.   Dividends to unitholders from net investment income decreased 21 percent during FY 15 compared to FY 14 due to lower average net assets.  During the 12-month periods in FY 15 and FY 14, the Fed Funds target rate remained at a range from zero to 0.25 percent.  The Fed Funds target rate is an economic indicator for short-term investments and has been at the same zero to 0.25 percent level since December 2008.  Total net expenses are derived based on net assets held by the Fund and the effect of any fee waivers in place.  These expenses increased 18 percent during FY 15 compared to FY 14 due to a reduction in the percentage of fees waived by service providers.  

12

 MANAGEMENT’S DISCUSSION AND ANALYSIS (CONT.) (UNAUDITED)

Condensed financial information and variance explanations for FY 14, as compared to FY 13, follow.

		Percent
Net Assets	June 30, 2014	Change	June 30, 2013
Total investments	$ 315,533,953	-33%	$ 468,316,801
Excess of other assets over total liabilities	43,919	100%	(12,619,486)
Net assets held in trust for pool participants	315,577,872	-31%	455,697,315
Average Net Assets	$ 394,178,911	-22%	$ 502,786,423

Total investments and net assets decreased 33 and 31 percent, respectively, comparing June 30, 2014 and June 30, 2013 amounts.  During FY 14, average net assets decreased 22 percent to $394,178,911 from average net assets of $502,786,423 during FY 13.  The significant increase in other assets over liabilities during FY 14 was due to a pending cash movement for the purchase of a security at June 30, 2013.

		Percent
Change in Net Assets for the years ended	June 30, 2014	Change	June 30, 2013
Investment Income	$ 512,932	-46%	$ 953,838
Total Net Expenses	(473,387)	-48%	(903,155)
Dividends to unitholders from net investment income	(39,545)	-22%	(50,683)
Net decrease in net assets	(140,119,443)	-62%	(86,625,344)
Net assets at beginning of year	455,697,315	-16%	542,322,659
Net assets at end of year	$ 315,577,872	-31%	$ 455,697,315

Investment income decreased 46 percent and dividends to unitholders from net investment income decreased 22 percent during FY 14 compared to FY 13.  During the 12-month periods in FY 14 and FY 13, the Fed Funds target rate remained at a range from zero to 0.25 percent.  The Fed Funds target rate is an economic indicator for short-term investments and has been at the same zero to 0.25 percent level since December 2008.  Total net expenses are derived based on net assets held by the Fund and the effect of any fee waivers in place.  These expenses decreased 48 percent during FY 14 compared to FY 13.  

CONTACTING THE PORTFOLIO’S FINANCIAL MANAGEMENT

This financial report is designed to provide IPAIT participants and prospective investors with a general overview of the Fund’s finances and to demonstrate the Fund’s accountability for the resources it receives and manages.  If you have questions about the report or need additional financial information, contact IPAIT at 800-872-4024 or visit the website at IPAIT.org.

13

 FINANCIAL STATEMENTS

Iowa Public Agency Investment Trust - Diversified Portfolio

Schedule of Investments – June 30, 2015

		Yield at
Par		Time of
Value	Description	Purchase	Due Date	Amortized Cost
COUPON SECURITIES (11.09%)
$ 5,000,000	Federal Home Loan Mortgage Corporation	1.74%	09/10/15	$ 5,015,445
5,000,000	Federal Home Loan Bank	0.20%	09/25/15	5,000,379
2,167,000	Federal Home Loan Mortgage Corporation	4.67%	11/17/15	2,204,327
2,000,000	Federal Farm Credit Bank	0.25%	12/02/15	2,000,419
6,065,000	Federal Home Loan Bank	4.89%	12/21/15	6,201,984
3,000,000	Federal Home Loan Bank	0.27%	01/15/16	3,000,277
5,000,000	Federal Farm Credit Bank	0.50%	05/04/16	5,006,052
4,532,000	Federal National Mortgage Association	0.38%	07/05/16	4,530,568
	Total (cost -- $32,959,452)			32,959,451
CERTIFICATES OF DEPOSIT (12.74%)
2,000,000	CDARS Treynor St Bk	0.35%	07/16/15	2,000,000
249,323	NXT Bank, IA CD	0.55%	07/26/15	249,323
1,003,880	Green Belt Bk&Tr CD	0.40%	07/31/15	1,003,880
2,000,000	CDARS Treynor St Bk	0.35%	08/13/15	2,000,000
4,000,000	Cedar Rapids B&T CD	0.46%	08/14/15	4,000,000
2,500,000	Freedom Bank	0.41%	08/14/15	2,500,000
1,500,000	CDARS Treynor St Bk	0.50%	12/03/15	1,500,000
1,000,000	CDARS Treynor St Bk	0.50%	12/12/15	1,000,000
5,000,000	CDARS Treynor St Bk	0.50%	12/24/15	5,000,000
2,006,634	Cedar Rapids B&T CD	0.38%	02/07/16	2,006,634
2,035,765	Freedom Financial CD	0.50%	02/07/16	2,035,765
4,007,663	Cedar Rapids B&T CD	0.38%	02/14/16	4,007,663
2,504,077	Freedom Bank	0.48%	02/16/16	2,504,077
1,006,500	Raccoon Valley Bank	0.75%	03/03/16	1,006,500
2,017,833	Northwest Bank CD	0.35%	03/20/16	2,017,833
1,009,043	Northwest Bank CD	0.35%	03/20/16	1,009,043
1,003,309	Peoples Bk-Rock V CD	0.47%	04/27/16	1,003,309
2,000,000	Peoples Bk-Rock V CD	0.43%	05/18/16	2,000,000
1,000,000	CDARS Frmers & Mrcnt	0.42%	05/19/16	1,000,000
	Total (cost -- $37,844,027)			37,844,027
DEPOSIT ACCOUNTS (43.92%)
245,000	Cent S Bk-St Cen IP	1.00%		245,000
245,000	Citizens St Bk-Pocah	0.40%		245,000
248,779	Comm Svgs-Manchester	0.40%		248,779
245,293	Comm Bank of Oelwein	0.40%		245,293
245,000	FNB Creston	0.25%		245,000
2,250,000	Northwest Bk Spencer	0.40%		2,250,000
1,000,000	Treynor State Bk-IP	0.25%		1,000,000
14,190,559	FNB Omaha Collateral	0.25%		14,190,559
97,063,479	FNB Omaha ICS	0.25%		97,063,479
54,278	Wells Fargo PF Dep	0.14%		54,278
14,685,160	Wells Fargo Savings	0.20%		14,685,160
	Total (cost -- $130,472,548)			130,472,548
	14
See accompanying notes to financial statements.
		Yield at
Par		Time of
Value	Description	Purchase	Due Date	Amortized Cost
REPURCHASE AGREEMENTS (32.25%)
95,797,000	Wells Fargo Bank, N.A.	0.12%	07/01/15	95,797,000
	Total (cost -- $95,797,000)			95,797,000
	(Purchased on 6/30/15; proceeds at maturity
	$95,797,319; collateralized by $97,730,000
	U.S. Government Agencies with maturities
	ranging from 09/25/15 to 12/16/16, collateral
	worth $97,713,064)
TOTAL INVESTMENTS (cost -- $297,073,026)				$ 297,073,026
See accompanying notes to financial statements.

15

 FINANCIAL STATEMENTS (CONT.)

Iowa Public Agency Investment Trust - Diversified Portfolio

Statement of Net Assets – June 30, 2015

ASSETS
Investments in securities, at amortized cost:
	Coupon Securities		$ 32,959,451
	Certificates of Deposit		37,844,027
	Deposit Accounts		130,472,548
	Repurchase Agreements		95,797,000
		Total investments in securities	297,073,026
Cash			86
Interest receivable			177,946
		Total assets	297,251,058
LIABILITIES
Investment advisory, administrative,
and program support fees payable			30,996
Custody fees payable			4,048
Distribution fees payable			10,120
Other fees and expenses payable			6,209
Dividends payable			2,481
		Total liabilities	53,854
NET ASSETS HELD IN TRUST FOR POOL PARTICIPANTS			$ 297,197,204
Units of beneficial interest outstanding			297,197,204
Net asset value - offering and redemption price per share			$ 1.00
See accompanying notes to financial statements.

16

FINANCIAL STATEMENTS (CONT.)

Iowa Public Agency Investment Trust - Diversified Portfolio

Statements of Operations
For the Years Ended June 30,
			2015	2014
INVESTMENT INCOME
	Interest		$ 591,038	$ 512,932
EXPENSES
	Investment advisory, administrative,
	and program support fees		720,353	868,940
	Custody fees		94,792	118,254
	Distribution fees		236,981	295,634
	Audit and Tax expenses		19,726	14,519
	Insurance expense		24,559	16,980
	Legal fees		26,824	17,476
	Other fees and expenses		7,885	49,570
		Total expenses	1,131,120	1,381,373
Less: Expenses voluntarily reduced/waived
	Investment advisory, administrative,
	and program support fees		(391,350)	(588,264)
	Custody fees		(51,522)	(80,083)
	Distribution fees		(128,807)	(200,221)
	Other fees and expenses		0	(39,418)
		Total expenses voluntarily reduced/waived	(571,679)	(907,986)
	Net expenses		559,441	473,387
NET INVESTMENT INCOME			$ 31,597	$ 39,545
Statements of Changes in Net Assets
For the Years Ended June 30,
			2015	2014
ADDITIONS
From investment activities:
	Net investment income		$ 31,597	$ 39,545
From unit transactions:
	(at constant net asset value of $1 per unit)
	Units sold		778,833,748	794,890,127
	Units issued in reinvestment of dividends
	from net investment income		29,918	39,226
		Total additions	778,895,263	794,968,898
DEDUCTIONS
Dividends to unitholders from:
	Net investment income		(31,597)	(39,545)
From unit transactions:
	Units redeemed		(797,244,334)	(935,048,796)
		Total deductions	(797,275,931)	(935,088,341)
Net decrease in net assets			(18,380,668)	(140,119,443)
Net assets held in trust for pool participants at beginning of period			315,577,872	455,697,315
Net assets held in trust for pool participants at end of period			$ 297,197,204	$ 315,577,872
See accompanying notes to financial statements.

17

NOTES TO FINANCIAL STATEMENTS

(1)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

Iowa Public Agency Investment Trust (IPAIT) is a common law trust established under Iowa law pursuant to Chapter 28E and Sections 331.555 and 384.21, Iowa Code (1987), as amended, which authorizes Iowa public agencies to jointly invest monies pursuant to a joint investment agreement.  IPAIT is registered under the Investment Company Act of 1940 as required by Iowa Statute and files reports with the Securities and Exchange Commission under Regulation S-X.  IPAIT was established by the adoption of a Joint Powers Agreement and Declaration of Trust as of October 1, 1987, and commenced operations on November 13, 1987.  The Joint Powers Agreement and Declaration of Trust was amended September 1, 1988, May 1, 1993, and again on September 1, 2005.  The accompanying financial statements include activities of the Diversified Portfolio.  The objective of the portfolio is to maintain a high degree of liquidity and safety of principal through investment in short-term securities as permitted for Iowa public agencies under Iowa law.  Wells Fargo Bank, N.A. (Wells Fargo) serves as the Custodian, and Miles Capital, Inc. (Miles Capital) serves as the Investment Adviser, Administrator, and Program Support Provider.

The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, 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 year.  Actual results could differ from those estimates.

IPAIT is exposed to various risks in connection with operation of the Diversified Portfolio and adheres to policies which attempt to mitigate market risk in the portfolio and maintains insurance coverage for fidelity and errors and omissions exposures.  IPAIT has had no claims or settlements under its insurance coverage since its organization in 1987.

INVESTMENTS IN SECURITIES

The Diversified Portfolio consists of cash and short-term investments valued at amortized cost, which approximates fair value, 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 the interest method.  Investment policies are followed to maintain a constant net asset value of $1.00 per unit for the portfolio.

Security transactions are accounted for on the trade date.  Interest income, including the accretion of discount and amortization of premium, is accrued daily as earned.

IPAIT is authorized by investment policy and statute to invest public funds in obligations of the U.S. government, its agencies and instrumentalities; certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions approved and secured pursuant to Chapter 12B of the Code of Iowa; and repurchase agreements, provided that the underlying collateral consists of obligations of the U.S. government, its agencies and instrumentalities and that IPAIT’s custodian takes delivery of the collateral either directly or through an authorized custodian.

In connection with transactions in repurchase agreements, it is IPAIT’s policy that the underlying collateral securities value exceeds the principal amount of the repurchase transaction, including accrued interest at all times.  If the seller were to default on its repurchase obligation and the value of the collateral declines, realization of the collateral by IPAIT may be delayed or limited.  At June 30, 2015 and 2014, the securities purchased under overnight agreements to resell were collateralized by U.S. Government Agency Securities with a fair value of $97,713,064 and of $157,884,781, respectively with maturities ranging from 02/23/15 to 06/20/44.

Certificates of Deposit and Deposit Accounts up to $250,000 are insured by the Federal Depository Insurance Company (FDIC).  For public funds deposited in Iowa financial institutions in excess of the FDIC insurance, the local financial institution must comply with Iowa Code Section 12c.22 to ensure appropriate collateralization.  As of June 30, 2015, public funds invested in Certificates of Deposit and Public Fund Deposit Accounts not covered by FDIC insurance were $54,524,701.  Public funds not covered by FDIC or collateralization are covered 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.

CDARS, the Certificate of Deposit Account Registry Service, is a network of banks offering Certificates of Deposit below the standard FDIC insurance maximum so that principal and interest are eligible for full FDIC insurance.  As of June 30, 2015, the portfolio held $12,500,000 in the CDARS program.

18

ICS, the Insured Cash Sweep service, is a network of banks offering demand deposit accounts below the standard FDIC insurance maximum so that principal and interest are eligible for full FDIC insurance.  As of June 30, 2015, the portfolio held $97,063,479 in the ICS program.

Under Governmental Accounting Standards as to custodial credit risk, IPAIT's investments in securities in the Diversified Portfolio held securities whose S&P credit ratings were 11.1 percent AA+, 56.7 percent not rated (representing all Certificates of Deposit and Deposit Accounts from Iowa financial institutions guaranteed by the FDIC or the state of Iowa sinking fund) and 32.2 percent NA.  Securities which are not rated or carry an NA rating are securities guaranteed or issued by government-sponsored entities which are deemed to carry the equivalent of A1+/P1 ratings by the IPAIT Board of Trustees or are repurchase agreements as defined above.

Management attempts to limit the Diversified Portfolio’s exposure to interest rate risk and believes this is addressed by the fact that securities are limited under Rule 2a-7 as well as by investment policy and statute to investments of high quality with durations not to exceed 397 days.  Hence it is not expected that any significant change in market interest rates would present long-term risk to the Diversified Portfolio.

UNIT ISSUES, REDEMPTIONS AND DISTRIBUTIONS

IPAIT determines the net asset value of the Diversified Portfolio daily.  Units are issued and redeemed daily at the daily net asset value.  Dividends from net investment income are declared daily and distributed monthly.

INCOME TAXES

IPAIT is exempt from both state and federal income taxes pursuant to Section 115 of the Internal Revenue Code.

FEES AND EXPENSES

Under separate agreements with IPAIT, Miles Capital and Wells Fargo are paid an annual fee for operating the investment program.  Effective March 15, 2010, Miles, Wells Fargo, and the public agency associations agreed to waive fees in order for the Diversified Portfolio to pay a net yield no lower than 0.0775 percent to participants.  On April 06, 2010, Miles, Wells Fargo, and the public agency associations agreed to waive fees in order for the Diversified Portfolio to pay a net yield no lower than 0.05 percent to participants.  On July 7, 2011, Miles, Wells Fargo, and the public agency associations agreed to waive fees in order for the Diversified Portfolio to pay a net yield no lower than 0.01 percent to participants.  The total fee may vary each day based on the gross yield earned.  These waivers are voluntary and may end at any time with no recovery of previously waived fees.

Miles Capital receives 0.190 percent of the average daily net asset value up to $150 million, 0.160 percent from $150 to $250 million, and 0.130 percent exceeding $250 million for investment adviser and administrative fees.  In addition, Miles Capital receives 0.060 percent of the average daily net asset value for program support fees.  For the years ended June 30, 2015 and 2014, the Diversified Portfolio paid $329,003 and $280,676, respectively, to Miles Capital for services provided net of waivers.  During the year ended June 30, 2015, on various and multiple days, Miles Capital voluntarily waived a portion of the fees.  Future waivers may not be required and are determined on market yields and other market considerations.

Wells Fargo receives 0.030 percent of the average daily net asset valueof the portfolio for custody fees.  For the years ended June 30, 2015 and 2014, the Diversified Portfolio paid $43,270 and $38,171, respectively, to Wells Fargo for services provided net of waivers.  During the year ended June 30, 2015, on various and multiple days, Wells Fargo voluntarily waived a portion of the fees.  Future waivers may not be required and are determined on market yields and other market considerations.

Under a distribution plan the public agency associations collectively receive an annual fee of 0.075 percent of the average daily net asset value for sponsorship fees.  For the years ended June 30, 2015 and 2014, the Diversified Portfolio paid $64,023 and $62,797 to the Iowa League of Cities, $28,266 and $21,999 to the Iowa State Association of Counties, and $15,886 and $10,617 to the Iowa Association of Municipal Utilities, respectively, net of waivers.  During the year ended June 30, 2015, on various and multiple days, the public agency associations voluntarily waived a portion of the fees.  Future waivers may not be required and are determined on market yields and other market considerations.

IPAIT is responsible for other fees and expenses incurred directly by IPAIT.  The other fees and expenses accrual is 0.025 percent of the average daily net asset value, and totaled $78,994 and $59,127 for the years ended June 30, 2015 and 2014, respectively, net of waivers.  During the year ended June 30, 2015, on various and multiple days, the Diversified Portfolio voluntarily waived a portion of the other fees and expense accrual.  Future waivers may not be required and are determined on market yields and other market considerations.  All fees are computed daily and paid monthly.

19

NOTES TO FINANCIAL STATEMENTS

FAIR VALUE MEASUREMENT

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  ASC 820 also establishes a framework for measuring fair value in U.S. generally accepted accounting principles, and requires disclosures about fair value measurements.  As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair values.  The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements.  These inputs are summarized into three broad levels as described below:

Level 1 –

quoted prices in active markets for identical securities;

Level 2 –

other significant observable inputs (including quoted prices for similar securities, interest rates, and evaluated quotations obtained from pricing services); or

Level 3 –

significant unobservable inputs (including IPAIT’s own assumptions in determining the fair value of investments.)

Securities in the Diversified Portfolio are valued at amortized cost, which approximates fair value, pursuant to Rule 2a-7 under the Investment Company Act of 1940. These approximate fair values are all considered level 2 valuations. There were no transfers between fair value hierarchy levels during the years ended June 30, 2015 or 2014.

(2)

SECURITIES TRANSACTIONS

Purchases of portfolio securities for the Diversified Portfolio aggregated $33,160,996,431 and $42,261,491,072 for the years ended June 30, 2015 and 2014, respectively.  Proceeds from the maturity and sale of securities for the Diversified Portfolio aggregated $33,179,295,344 and $42,413,807,667 for the years ended June 30, 2015 and 2014, respectively.

(3) DIRECT GOVERNMENT OBLIGATIONS PORTFOLIO

In 2010, the Board of Trustees approved a resolution ceasing the investment operations of the Direct Government Obligation Portfolio and transferring assets to the Diversified Portfolio. The transfer was facilitated through Rule 17a-7 at fair value. The Portfolio remains available for future investment if IPAIT participants should request it in the future.

(4) SUBSEQUENT EVENTS

IPAIT has evaluated the effects of events that occurred subsequent to June 30, 2015, and there have been no material events that would require recognition in the financial statements or disclosure in the notes to the financial statements.

20

 FINANCIAL HIGHLIGHTS

Iowa Public Agency Investment Trust - Diversified Portfolio
Selected Data for Each Unit of Portfolio
Outstanding Through Each Year Ended
June 30		2015	2014	2013	2012	2011
Net Asset Value, Beginning of Period		$1.0000	$1.0000	$1.0000	$1.0000	$1.0000
Net Investment Income		0.0001	0.0001	0.0001	0.0002	0.0006
Dividends Distributed		(0.0001)	(0.0001)	(0.0001)	(0.0002)	(0.0006)
Net Asset Value, End of Period		$1.0000	$1.0000	$1.0000	$1.0000	$1.0000
Total Return*		0.01%	0.01%	0.01%	0.02%	0.06%
Ratio of Expenses to Average
	Net Assets, After Waivers	0.18%	0.12%	0.18%	0.16%	0.23%
Ratio of Net Investment Income to
	Average Net Assets, After Waivers	0.01%	0.01%	0.01%	0.02%	0.06%
Ratio of Expenses to Average
	Net Assets, Before Waivers	0.36%	0.35%	0.34%	0.34%	0.35%
Ratio of Net Investment Income to
	Average Net Assets, Before Waivers	(0.17%)	(0.22%)	(0.15%)	(0.16%)	(0.06%)
Net Assets, End of Period (000 Omitted)		$297,197	$315,578	$455,697	$542,323	$524,017
* Total return is calculated by taking the ending value of an initial $1,000 investment including monthly reinvested dividends, minus the
initial investment, divided by the initial $1,000 investment.
	See accompanying Report of Independent Registered Public Accounting Firm

21

FUND FACTS SUMMARY

Diversified Portfolio Facts

as of June 30, 2015

(unaudited)

Investment Strategy/Goals:  To provide a safe, liquid, effective investment alternative for the operating funds, reserve funds, and bond proceeds for Iowa's municipalities, counties, municipal utilities and other eligible public agencies by jointly investing participant funds in a professionally managed portfolio of short-term, high-quality, legally authorized, marketable securities.

Date of Inception:  November 13, 1987

Total Net Assets:  $297 million

Benchmarks:  Money Market Index, Iowa Code Chapter 74A 32-89 day Public Funds Rates, and Iowa Code Chapter 74A 90-179 day Public Funds Rates.

Performance Objective:  To provide the highest level of current income from investment in a portfolio of U.S. government and agency securities, certificates of deposit in Iowa financial institutions, and other authorized securities collateralized by U.S. government and agency securities as is consistent with, in order of priority, preservation of principal and provision of necessary liquidity.

Investment Adviser:  Miles Capital

Management Fees:  

Sliding scale from nine basis points (0.09%) to five and one-half basis points (0.055%)

Total Expense Ratio:  

Sliding scale from thirty-eight basis points (0.38%) to thirty-two basis points (0.32%)

Actual Expense Ratio FYE 2015:  Due to voluntary fee waivers recognized by IPAIT’s sponsors and service providers, the actual fee ratio charged during FYE 2015 was eighteen basis points (0.18%).

22

DIVERSIFIED PORTFOLIO (UNAUDITED)

INTRODUCTION

The IPAIT Diversified Portfolio (the “Fund”) is a short-term investment pool of high-quality money market instruments.  The Fund has been registered since May of 1993 with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940.  It is operated in accordance with 17 C.F.R. Section 270.2a-7 (Rule 2a-7).  The Fund has complied voluntarily with all Rule 2a-7 money market fund operating guidelines from inception.

The Fund is made up of a professionally managed portfolio of U.S. government and federal agency securities, certificates of deposit issued by Iowa financial institutions, public fund deposit accounts, public fund savings accounts, and perfected repurchase agreements, the latter collateralized by U.S. government and federal agency securities.  The Fund is typically used for the investment of public funds subject to the Iowa public funds statutory provisions invested by a participant unless other participant-specific investment restrictions exist.

Historical Portfolio Cash Flow (expressed in millions)

IPAIT Diversified Portfolio

The Fund has been managed by Miles Capital, IPAIT’s West Des Moines, Iowa-based investment adviser, since inception.  Aggregate cash flows are monitored daily and compared to respective Fund cash flow patterns of previous periods.  Fund cash flow patterns throughout the fiscal period, as compared to previous years, have traditionally been repetitive.  Over twenty-five years of operating history create a very helpful tool to gauge necessary pool liquidity needs.

The investment objective of the Fund is to provide as high a level of current income as is consistent with preservation of invested principal and provision of adequate liquidity to meet participants’ daily cash flow needs.  As a general policy, all purchased securities will be held until they mature. Summaries of all security trades for the Fund are provided quarterly to the IPAIT Board of Trustees for review.

The Fund actively monitors rates offered by Iowa financial institutions for public fund certificates of deposit and savings accounts.  Institutions experiencing strong loan demand typically offer rates that are at or above those available for marketable securities, presenting a helpful portfolio investment alternative.

Amortized Cost vs. Market Value Per Share

July 1, 2012 - June 30, 2015

IPAIT Diversified Portfolio

The Fund accrues interest income daily and pays accrued income monthly to participant accounts.  Interest is paid on the first business day of the month following accrual.  Daily income amounts and investment returns are calculated using the interest method.  Under this method, a security is initially valued at cost on the date of purchase and, thereafter, any premium or discount is amortized using the interest method.

The IPAIT Adviser values the Fund’s portfolio weekly at current fair value, based upon actual market quotations.  The Fund’s current market valuation is compared to that Fund’s current amortized cost basis.  In accordance with the established operating parameters of Rule 2a-7 and IPAIT’s internal controls and procedures, any deviation in net asset value based upon available market quotations from the Fund’s $1.00 amortized cost per unit is carefully monitored.  Deviations may never exceed 0.5 percent.  Illustrated above is the amortized cost versus market value per unit comparison for the past three fiscal years.

IPAIT Diversified Portfolio vs. Iowa Chapter 74A (90-179 & 32-89

Day) & Money Market Benchmark

US Government & Agency July 2014 - June 2015

The Fund’s investment performance is regularly compared to three established benchmarks, the money market benchmark average rate for all registered Rule 2a-7 money market funds investing in U.S. government and federal agency securities and the Iowa Code Chapter 74A rate for 32-89, and 90-179 day certificates of deposit issued by Iowa financial institutions for public funds in the state.

                                                                                                    DIVERSIFIED PORTFOLIO (CONT.) (UNAUDITED)

The Iowa Code Chapter 74A rates are distributed monthly by the state Treasurer’s office for various investment periods and are intended to be the minimum rates at which Iowa financial institutions can accept public funds for timed deposits.  While a public body must commit funds for minimum periods of time to access Chapter 74A rates, IPAIT may offer rates at or above the Chapter 74A benchmarks with complete daily liquidity.

RISK PROFILE

The Fund is low in risk profile.  Portfolio investments are limited to:

1.  No single portfolio investment may exceed the 397 days to maturity as outlined in Rule 2a-7.

2.  The weighted average maturity (WAM) of the portfolio may never exceed 60 days.

In addition to the above investment maturity restrictions, the Fund limits itself to U.S. government and federal agency securities, perfected repurchase agreements collateralized by U.S. government and federal agency securities, and Iowa financial institution certificates of deposit and Iowa depository accounts.  This combination of those average maturities and extremely high-quality credit instruments provides eligible Iowa public fund investors with a safe, effective investment alternative.

Maturity Analysis as of June 30, 2015

IPAIT Diversified Portfolio

As noted previously, the Fund carefully limits itself to high credit-quality securities.  In addition, IPAIT monitors a broad array of economic indicators as well as activities of the Federal Reserve Board to be able to position the Fund’s WAM to take advantage of projected interest rate environments.  

Distribution by Security Type as of June 30, 2015

IPAIT Diversified Portfolio

It is important to note that portfolio liquidity needs for IPAIT must control evaluation of alternative portfolio management opportunities at all times.  For example, if historical cash flow analysis indicates that participants will need to withdraw funds, material extension of the Fund’s portfolio is not a viable alternative.

Participation membership by affiliation concentration is illustrated in the following graph.

Participant Membership

IPAIT Diversified Portfolio

DIVERSIFIED PORTFOLIO (UNAUDITED)

Ownership Analysis as of June 30, 2015

IPAIT Diversified Portfolio

PERFORMANCE SUMMARY

For the one-year period ended June 30, 2015 the Fund reported a ratio of net investment income to average net assets of 0.01 percent, net of all operating expenses.  These figures compare relative to the money market benchmark average, which returned 0.01 percent for the fiscal period.

Annual Total Returns

IPAIT Diversified Portfolio vs. Money Market Benchmark

US Government & Agency

Also illustrated below are the historical returns for the Fund for the most recent one, three, and five year periods.

Annualized Total Returns

IPAIT Diversified Portfolio vs. Money Market Benchmark

US Government & Agency

25

FINANCIAL HIGHLIGHTS

FUND EXPENSES

It is important for you to understand the impact of costs on your investment.  All mutual funds have operating expenses. As a shareholder of the fund, you incur ongoing costs, including management fees, distribution and service fees, and other fund expenses. Expenses, which are deducted from a fund’s investment income, directly reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio.  The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire period from January 1, 2015 to June 30, 2015. The table illustrates your fund’s costs in two ways:

1. Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the fund’s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

2. Based on hypothetical 5 percent return. This section is intended to help you compare your fund’s costs with those of other mutual funds. It assumes that the fund had a return of 5 percent before expenses during the period shown, but that the expense ratio is unchanged. In this case, because the return used is not the fund’s actual return, the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5 percent return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Your fund does not carry a “sales load” or transaction fee. The calculations assume no shares were bought or sold during the period.  Your actual costs may have been higher or lower, depending on the amount of your investment and timing of any purchases or redemptions.

You can find more information about the fund’s expenses, including annual expense ratios for the past five years, in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the Information Statement.    

26

DIVERSIFIED PORTFOLIO (CONT.) (UNAUDITED)

FEES AND EXPENSES
All fees are calculated by basis points per net assets.
Entity	Fee Type		Fee
Miles Capital, Inc.	Adviser		0.090% up to $150MM;
			0.070% on $150 - $250MM;
			0.055% on assets exceeding $250MM
Miles Capital, Inc.	Administrator		0.100% up to $150MM;
			0.090% on $150 - $250MM;
			0.075% on assets exceeding $250MM
Miles Capital, Inc.	Program Support		0.060%
Sponsoring Associations 1	Sponsoring Associations		0.075%
Wells Fargo	Custody		0.030%
Administration Fund	Other fees & expenses		0.025%
1  Includes Iowa League of Cities, Iowa State Association of Counties, Iowa Association of Municipal Utilities
This fiscal year's actual expense ratio after fee waivers for the IPAIT Diversified portfolio was 0.18 percent of average net assets based on a sliding fee scale.
Actual:
For the fiscal year ended June 30, 2015, the following actual expenses were incurred by the Fund after waivers:
		Diversified
		Portfolio
Adviser		$110,243
Administrator		132,220
Program Support		86,540
Sponsoring Associations		108,174
Custody		43,270
Other fees and expenses		78,994
Total		$559,441

27

DIVERSIFIED PORTFOLIO (CONT.) (UNAUDITED)

STATEMENT OF ADDITIONAL INFORMATION

The SAI has additional information about the Fund and is available without charge, upon request, by calling 800-872-4024.

SCHEDULE OF PORTFOLIO HOLDINGS

A complete schedule of portfolio holdings is posted every month at IPAIT.org and is filed monthly with the SEC (Form N-MFP). Form N-Q (first and third quarters) and the semiannual and annual reports (second and fourth quarter) are available at www.sec.gov, or by phone at 800-SEC-0330, or by mail at Public Reference Section / SEC / Washington DC / 20549 (duplicating fee required) or upon request from IPAIT at 800-872-4024 or at IPAIT.org.

PROXY VOTING

The SEC requires an annual report of the proxy voting record of the Trust.  Because the investments allowable under Iowa law restrict the investment for IPAIT to securities to which proxy voting does not apply, IPAIT does not have a proxy voting policy and will report no proxy votes on the Form N-PX.  The law requires the filing of the Form N-PX, and this disclosure, even though the Form N-PX will contain no votes.  Form N-PX is available at www.sec.gov, or by phone at 800-SEC-0330, or by mail at Public Reference Section SEC / Washington / DC / 20549 (duplicating fee required) or upon request from IPAIT at 800-872-4024.

OTHER INFORMATION

Units of IPAIT’s Diversified Portfolio are not insured by the FDIC or the U.S. Government.  Investment products involve investment risk, including the possible loss of principal.  Past performance is not predictive of future results, and the composition of the Fund’s portfolio is subject to change.

PARTICIPANT MEETING RESULTS

On August 26, 2014, a participant meeting was held at the Iowa League of Cities in Des Moines, Iowa for election of trustees and the selection of auditors. The proposals were approved.

Total Units:

297,595,485

1. Board of Trustees proposal

For:

153,007,741

2. Auditors proposal

For:

153,317,107

28

INVESTMENT COMMENTARY (UNAUDITED)

Our Economy

Although Greece is dominating headlines today, the real story for investors is inflation and the Federal Reserve.  The market and systemic risk of a Greek exit from the Eurozone is relatively limited, especially in comparison to the potential impact from a few short years ago.  In 2012 when Greece last threatened to leave, market contagion through the banking system was a real concern.  Today, Europe is much stronger given the efforts of the European Central Bank to generate growth and shore up the zone’s banking system, and these efforts are reflected in higher GDP and inflation metrics.  So as Greece’s future hangs in the balance today, markets show a remarkable lack of volatility.

Domestically, investor focus has shifted to a stronger U.S. economy and a likely Fed rate hike in the second half of the year.  Domestic GDP growth slowed again in the first quarter, but has rebounded and is expected to average 3.0% for the remainder of 2015.  The housing market has remained surprisingly solid this year despite an increase in mortgage rates and this should translate into additional spending on durable goods.  Also, growth in building permits, which is a leading indicator for housing activity, has accelerated and is currently at a seven year high.  

Importantly, the Fed remains on track to raise rates in 2015 as the unemployment rate continues to fall toward a sustainable level, even as inflation remains stubbornly low.  The Fed will not wait for core inflation to reach its target level of 2% but instead will look for evidence of nascent inflation pressure for justification to begin hiking rates.  Indeed, there are already signs that wage pressures are building, including an increase in average hourly earnings, so we expect the Fed will have sufficient evidence later this year to begin the process of normalizing the interest rate environment.  

But higher short rates should not limit economic growth nor should they shut down the equity markets.  Instead, we expect Fed action to support continued expansion of the economy by confirming the growth story.

Money Market Funds

As money market reform continues to shape the industry, change is happening in many areas.  The repo market continues to shrink and volatility of repo rates continues to rise.  Variations of fund structure and new offerings are appearing.  While we prepare for rising rates in 2015, we are also preparing for new opportunities to serve our participants.  We welcome your partnership and look forward to innovating with you through this new environment.

/s/ Laurie Mardis, CFA

Miles Capital, Inc.

 IPAIT INVESTMENT POLICY (UNAUDITED)

SECTION 1 - SCOPE OF INVESTMENT POLICY

The Investment Policy of the Iowa Public Agency Investment Trust (IPAIT) shall apply to all funds

invested on behalf of participants accounted for in the IPAIT financial statements. Each investment made pursuant to this Investment Policy must be authorized by applicable law and this written Investment Policy.

This Investment Policy is intended to comply with Iowa Code chapters 28E, 12B, 12C and sections 331.555 and 384.21.

Upon passage and upon future amendment, if any, copies of this Investment Policy shall be delivered to all of the following:

1.

The IPAIT Board of Trustees.

2.

All IPAIT depository institutions or fiduciaries.

3.

The auditor engaged to audit any fund of IPAIT.

SECTION 2 – FUNDAMENTAL INVESTMENT RESTRICTIONS

A. Unless otherwise specified below, none of the portfolios will:

1.

Invest more than 5 percent of the value of their total assets in the securities of any one federally insured Iowa depository institution (other than securities of the U.S. government or its agencies or instrumentalities).

2.

Invest 25 percent or more of the value of their total assets in the securities of issuers conducting their principal business activities in any one industry, including financial institutions. This restriction does not apply to securities of the U.S. Government or its agencies and instrumentalities and repurchase agreements relating thereto.

3.

Issue any senior securities (as defined in the Investment Company Act of 1940, as amended).

4.

Mortgage, pledge or hypothecate their assets.

5.

Make short sales of securities or maintain a short position.

6.

Purchase any securities on margin.

7.

Write, purchase or sell puts, calls or combinations thereof.

8.

Purchase or sell real estate or real estate mortgage loans.

9.

Invest in restricted securities or invest more than 10 percent of the Portfolio’s net assets in repurchase agreements with a maturity of more than seven days, and other liquid assets, such as securities with no readily available market quotation.

10.

Underwrite the securities of other issuers.

11.

Invest in any securities in contravention of the provisions of Rule 2a-7 of the Investment Company Act of 1940 as it presently exists or as it may hereafter be amended.

B. Prohibited Investments

Assets of IPAIT shall not be invested in the following:

1.

Reverse repurchase agreements.

2.

Futures and options contracts.

3.

Any security with a remaining maturity exceeding 397 days as provided in Rule 2a-7.

C. Prohibited Investment Practices

30

 IPAIT INVESTMENT POLICY (UNAUDITED)

The following investment practices are prohibited:

1.

Trading of securities for speculation or the realization of short-term trading gains.

2.

Investing pursuant to a contract providing for the compensation of an agent or fiduciary based upon the performance of the invested assets.

3.

If a fiduciary or other third party with custody of public investment transaction records of IPAIT fails to produce requested records when requested by IPAIT or its agents within a reasonable time, IPAIT shall make no new investment with or through the fiduciary or third party and shall not renew maturity investments with or through the fiduciary or third party.

D. Management Policies and Procedures

Following are the fundamental management policies and procedures for IPAIT. All investments shall be maintained in separate IPAIT custodial accounts, segregated by Portfolio on behalf of IPAIT Participants.

1.

Each purchase or sale of a security must be handled on a delivery versus payment (DVP) basis. Funds for the purchase of an investment shall not be released to the seller until the security is delivered to the IPAIT 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 IPAIT Custodian.

2.

“Free delivery” transactions are prohibited. The Custodian shall never release assets from the IPAIT custodial accounts until the funds for the investment are delivered.

3.

Any material deviation (greater than 0.5 percent) from the amortized cost of investments shall be promptly reported by the Adviser to the Board of Trustees. If such deviation exceeds 0.5 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 transactions are expressly prohibited.

5.

IPAIT 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.

IPAIT may not purchase any Permitted Investment if the effect of such purchase by IPAIT would be to make the average dollar weighted maturity of a portfolio greater than sixty (60) days.

7.

IPAIT may not borrow money or incur indebtedness whether or not the proceeds thereof are intended to be used to purchase Permitted Investments.

8.

IPAIT may not make loans, provided that IPAIT may make Permitted Investments.

9.

IPAIT may not purchase securities or shares of investment companies or any entities similar to IPAIT.

The restrictions set forth above are fundamental to the operation and activities of IPAIT 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 confirm the investment program and activities of IPAIT to the laws of the State of Iowa and the United States of America as they may from time to time be amended.

The above investment restrictions shall not be changed without the vote of a majority of the Participants in a Portfolio. “Majority” means the lesser of (a) 67 percent of the Trust’s or a Portfolio’s outstanding Trust Units voting at a meeting of the Participants at which more than 50 percent of the outstanding Trust Units are represented in person or by proxy or (b) a majority of the Trust’s or a Portfolio’s outstanding Trust Units.

31

 IPAIT INVESTMENT POLICY (UNAUDITED)

Provided, however, the Trust may invest Portfolio assets pursuant to the maximum extent possible by Iowa law governing investments by public agencies and Rule 2a-7 and any change in the restrictions of the Iowa law governing investments by public agencies and Rule 2a-7 shall be deemed to be adopted by the Trust, and such change shall not require the approval of the Participants.

Any investment restrictions or limitations referred to above which involves a maximum percentage of securities or assets shall not be considered to be violated unless an excess over the percentage occurs immediately after an acquisition of securities or utilization of assets and results there from.

Section 3 – DELEGATION OF AUTHORITY

The responsibility for conducting IPAIT investment transactions resides with the IPAIT Board of

Trustees. Certain responsibilities have been delegated to the Administrator, the Adviser, and the

Custodian (the “Service Providers”) pursuant to the Administrator Agreement, the Adviser Agreement, the Custodian Agreement, with amendments as may be adopted from time to time, and the current Information Statement (the “Documents”).

Each Service Provider shall individually notify the IPAIT Board of Trustees in writing within thirty days of receipt of all communications from the auditor of any Service Provider or any regulatory authority of the existence of a material weakness in internal control structure of the Service Provider or regulatory orders or sanctions regarding the type of services being provided to IPAIT by the Service Provider.

The records of investment transactions made by or on behalf of IPAIT are public records and are the property of IPAIT whether in the custody of IPAIT or in the custody of a fiduciary or other third party.

Section 4 – OBJECTIVES OF INVESTMENT POLICY

The primary objectives, in order of priority, of all investment activities involving the financial assets of IPAIT shall be the following:

1.

Safety: Safety and preservation of principal in the overall portfolio is the foremost investment objective.

2.

Liquidity: Maintaining the necessary liquidity to match expected liabilities is the second investment objective.

3.

Return: Obtaining a reasonable return is the third investment objective.

Section 5 – PRUDENCE

The Board of Trustees, when providing for the investment of deposit of public funds in the IPAIT

program, shall exercise the care, skill, prudence, and diligence under the circumstances then prevailing that a person acting in a like capacity and familiar with such matters would use to attain the Section 4 investment objectives.

Section 6 – INSTRUMENTS ELIGIBLE FOR INVESTMENT

Assets of IPAIT may be invested in the following, all as more fully described in the IPAIT Information Statement:

--

Obligations of the United States government, its agencies and instrumentalities.

--

Certificates of deposit ("CDs") and other evidences of deposit at federally insured Iowa depository institutions approved and secured pursuant to chapter 12C.

--

Repurchase agreements, provided that the underlying collateral consists of obligations of the United States government, its agencies and instrumentalities and that the Custodian takes delivery of the collateral either directly or through a third party custodian.

-

Insured deposits or certificates of deposit, invested pursuant to Iowa Code Section 12B10(7), in an amount above any insured portion of the public funds on deposit at a federally insured Iowa depository institution approved and secured pursuant to Iowa Code chapter 12C.

All instruments eligible for investment are further qualified by all other provisions of this Investment Policy, including Section 7, Diversification and Investment Maturity Limitations.

32

 IPAIT INVESTMENT POLICY (UNAUDITED)

Section 7 – DIVERSIFICATION AND INVESTMENT MATURITY LIMITATIONS

It is the policy of IPAIT to diversify portfolio investments in the Diversified Portfolio.  As described in the Information Statement, portfolio investments in the Diversified Portfolio are limited to the following:

1.

No individual investment with maturity in excess of 397 days as provided in Rule 2a-7.

2.

The maximum average maturity of all portfolio investments may not exceed 60 days. Pursuant to IPAIT policies as disclosed in the Documents, Participants may also individually invest in Fixed Term Program investments.

Section 8 – SAFEKEEPING AND CUSTODY

All invested assets of Participants in the Portfolios or in the Fixed Term Program shall be held in accordance with the Custodian Agreement.

All invested assets eligible for physical delivery shall be secured by having them held at a third party custodian. All purchased investments shall be held pursuant to a written third party custodial agreement requiring delivery versus payment. No assets may be delivered out of the IPAIT account without full payment (no “free deliveries” shall be permitted).

Section 9 – REPORTING

The Service Providers shall submit all reports required in the Documents.

Section 10 – INVESTMENT POLICY REVIEW AND AMENDMENT

This Investment Policy shall be reviewed annually or more frequently as appropriate. Notice of amendments to the Investment Policy shall be promptly given to all parties noted in Section 1.

Section 11 – EFFECTIVE DATE

This Investment Policy shall be effective as of May 1, 1993.

Passed and approved this 20th day of April, 1993.

Amended effective November 1, 2003, August 26, 2009, August 25, 2010, and August 28, 2013.

33

INVESTING AND NON-INVESTING PARTICIPANTS DIVERSIFIED PORTFOLIO (UNAUDITED)

$0-$50,000 Assets Invested

Cascade Municipal Utilities

Cedar Rapids/Linn County SWA

Central IA Reg Trans Planning Alliance

City of Badger

City of Bellevue

City of Bloomfield

City of Breda

City of Carson

City of Central City

City of Clarinda

City of Coralville

City of Council Bluffs

City of DeWitt

City of Dyersville

City of Earlham

City of Earlville

City of Garner

City of Grundy Center

City of Guttenberg

City of Hartley

City of Humboldt

City of Jefferson

City of Keystone

City of Letts

City of Lovilia

City of Manchester

City of Marengo

City of Martensdale

City of Massena

City of McCausland

City of Melcher-Dallas

City of Monroe

City of Nevada

City of New London

City of New Virginia

City of Panora

City of Polk City

City of Springbrook

City of State Center

City of Wellman

City of Wesley

City of West Burlington

City of West Liberty

City Utility of Eagle Grove

City Utility of Lake Mills

City Utility of Martensdale

City Utility of New Hampton

City Utility of Orient

City Utility of Pella

City Utility of Prairie City

County of Cedar

County of Des Moines

County of Dickinson

County of Emmet

County of Fremont

County of Greene

County of Hardin

County of Howard

County of Lyon

County of Monona

County of Monroe

County of Story

Durant Municipal Electric Plant

Fontanelle Municipal Utility

Gowrie Municipal Utilities

Iowa Cities E-Payment Aggregation System

Johnson Township Barnum Community Fire D

Knoxville Utility

La Porte City Utility

Lamoni Municipal Utilities

NIMECA

North Central Iowa Regional SWA

Southeast Iowa Regional Planning Commiss

Spencer Municipal Utility

Stuart Municipal Utilities

Webster County Telecommunications Board

Winterset Municipal Utilities

$50,000-$250,000 Assets Invested

City of Boone

City of Clinton

City of Dike

City of Fairbank

City of Grimes

City of Indianola

City of Lake Mills

City of Lewis

City of Mason City

City of Maynard

City of Morning Sun

City of Moulton

City of Nora Springs

City of Orange City

City of Parnell

City of Readlyn

City of Red Oak

City of Ringsted

City of Riverdale

City of Shelby

City of Shenandoah

City of Tiffin

City of Walnut

City Utility of Fredericksburg

City Utility of Melcher-Dallas

City Utility of Middletown

City Utility of Readlyn

City Utility of Urbandale

County of Adair

County of Audubon

County of Boone

County of Butler

County of Carroll

County of Crawford

County of Franklin

County of Kossuth

County of Plymouth

Fifth Judicial District

Hiawatha Water Department

IPAIT Administration Fund

Lakewood Benefited Rec. Lake District

Lenox Municipal Utilities

Manning Municipal Gas Department

Villisca Municipal Power Plant

Warren County

$250,000-$500,000 Assets Invested

Algona Municipal Utilities

Brooklyn Municipal Utilities

City of Adel

City of Algona

City of Davenport

City of Eagle Grove

City of Early

City of Orleans

City of Osceola

City of Pella

City of Van Meter

City Utility of Dike

Grundy Center Municipal Utilities

Hiawatha Water Department

Iowa Agency for Municipal Wind

Lakewood Benefited Rec. Lake District

Ringgold County Hospital

South Iowa Area Crime Commission

Urbandale Sanitary Sewer District

$500,000-$1,000,000 Assets Invested

Algona Municipal Utilities

City of Adel

City of Algona

City of Clive

City of Davenport

City of Early

City of Elk Horn

City of Griswold

City of Independence

City of Mitchellville

City of Orleans

City of Osceola

City of Pella

City of Prairie City

City of Van Meter

City of Windsor Heights

City Utility of Dike

City Utility of Montezuma

City Utility of Shelby

City Utility of Traer

Corning Municipal Utilities

County of Linn

County of Osceola

County of Tama

County of Wright

Dallas County

Denison Municipal Utilities

Des Moines Area MPO

Grundy Center Municipal Utilities

Iowa Agency for Municipal Wind

Iowa Public Power Agency

Lucas County

Northwest Iowa Area Solid Waste Agency

Ringgold County Hospital

SIMECA

South Iowa Area Crime Commission

South Iowa Detention Service Agency

Urbandale Sanitary Sewer District

West Des Moines Water Works

$1,000,000-$5,000,000 Assets Invested

City of Altoona

City of Bondurant

City of Denison

City of Eagle Grove

City of Fort Dodge

City of Iowa City

City of Keokuk

City of Knoxville

City of Marion

City of Marshalltown

City of Montezuma

City of Mount Pleasant

City of Muscatine

City of Oskaloosa

City of Ottumwa

City of Sioux City

City of Traer

City of Washington

City of Waverly

County of Appanoose

County of Black Hawk

County of Calhoun

County of Cass

County of Decatur

County of Hamilton

County of Henry

County of Louisa

County of O'Brien

County of Wapello

County of Wayne

County of Winneshiek

IAMU Insurance Trust

IMWCA Group C

Montezuma Municipal Light and Power

Orange City Area Health System

Resale Power Group of Iowa

Southwest Iowa Planning Council

Waterloo Water Works

Xenia Rural Water District

Over $5,000,000 Assets Invested

Broadlawns Medical Center

Cedar Falls Utilities

City of Hiawatha

City of Johnston

City of Waterloo

City of West Des Moines

County of Buchanan

County of Jackson

County of Madison

County of Poweshiek

County of Sioux

Muscatine Power and Water

Non-Investing Participants

Anita Municipal Utilities

Audubon County Memorial Hospital

Brooklyn Municipal Utilities

Buena Vista County Solid Waste Commiss

Cass County Environment Control Agency

Central IA Juvenile Detention Commission

City of Ackley

City of Afton

City of Agency

City of Albert City

City of Alton

City of Ames

City of Anamosa

City of Ankeny

City of Anthon

City of Atlantic

City of Audubon

City of Bedford

City of Bettendorf

City of Brandon

City of Burlington

City of Burt

City of Bussey

City of Callender

City of Camanche

City of Carlisle

City of Carter Lake

City of Cascade

City of Cedar Falls

City of Cedar Rapids

City of Center Point

City of Centerville

City of Charles City

City of Cherokee

City of Clear Lake

City of Colfax

City of Colo

City of Corning

City of Correctionville

City of Corydon

City of Creston

City of Cumming

City of Dayton

City of Denver

City of Des Moines

City of Dubuque

City of Dunkerton

City of Dysart

City of Eldon

City of Eldridge

City of Elk Run Heights

City of Ellsworth

City of Ely

City of Epworth

City of Evansdale

City of Fairfield

City of Forest City

City of Fort Madison

City of Gilbertville

City of Gilmore City

City of Grand Mound

City of Grand River

City of Grant

City of Greenfield

City of Grinnell

City of Harlan

City of Hawarden

City of Hazleton

City of Hudson

City of Huxley

City of La Porte City

City of Lamont

City of Lehigh

City of Lenox

City of Leon

City of Lisbon

City of Lohrville

City of Mallard

City of Manning

City of Maquoketa

City of Marble Rock

City of Middletown

City of Missouri Valley

City of Montezuma Fire Department

City of Mount Vernon

City of Murray

City of New Hampton

City of Newton

City of Oelwein

City of Osage

City of Ossian

City of Peosta

City of Perry

City of Pleasant Hill

City of Pleasantville

City of Pocahontas

City of Prescott

City of Preston

City of Rockwell City

City of Sac City

City of Sageville

City of Sheldon

City of Shueyville

City of Slater

City of Spencer

City of Spirit Lake

City of Spragueville

City of St. Charles

City of Storm Lake

City of Stratford

City of Sumner

City of Tipton

City of Underwood

City of Urbana

City of Urbandale

City of Villisca

City of Vinton

City of Webster City

City of West Branch

City of Westfield

City of Wilton

City of Woodbine

City Utility of Alton

City Utility of Ames

City Utility of Anamosa

City Utility of Anthon

City Utility of Aplington

City Utility of Bloomfield

City Utility of Colfax

City Utility of Coon Rapids

City Utility of Corydon

City Utility of Creston

City Utility of Denver

City Utility of Epworth

City Utility of Fairbank

City Utility of Graettinger

City Utility of Harlan

City Utility of Hawarden

City Utility of Laurens

City Utility of LeClaire

City Utility of Lohrville

City Utility of Maquoketa

City Utility of Murray

City Utility of Preston

City Utility of Sac City

City Utility of Sanborn

City Utility of Slater

City Utility of St. Charles

City Utility of Story City

City Utility of Vinton

City Utility of Wahpeton

Clay County

Clayton County

Clear Lake Sanitary District

Council Bluffs Airport Authority

County of Buena Vista

County of Cerro Gordo

County of Chickasaw

County of Clarke

County of Clinton

County of Davis

County of Dubuque

County of Floyd

County of Greene-Medical Center

County of Grundy

County of Hancock

County of Harrison

County of Iowa

County of Jasper

County of Johnson

County of Jones

County of Marion

County of Marshall

County of Mills

County of Mitchell

County of Muscatine

County of Page

County of Pocahontas

County of Polk

County of Ringgold

County of Sac

County of Scott

County of Union

County of Washington

County of Webster

County of Winnebago

County of Worth

Crawford County Memorial Hospital

Dallas County Hospital

Des Moines Metropolitan Transit Authority

Des Moines Utility

Eighth Judicial Dist. Dept. of Correct.

Evansdale Water Works

Fort Madison Utility

Geode Resource Conserv. & Develp., Inc.

Gilbertville Community Day, Inc.

Greenfield Municipal Utilities

Guthrie County

Heart of Iowa Reg. Transit Agency

Ida County

Iowa Lakes Regional Water

Iowa Northland Reg. Council of Gov.

Iowa Stored Energy Plant Agency

Jefferson County Hosp. Foundation, Inc.

Jefferson County Hospital

Lee County

Madison County Memorial Hospital

Manilla Municipal Gas Dept.

Manning Municipal Utilities

Mid Iowa Regional Housing Authority

Midas Council of Governments

Mid-Iowa Development Association COG

Missouri River Energy Services

Mitchell County Regional Health Center

Monroe County Hospital

Mt. Pleasant Municipal Utilities

Newton Waterworks

North Central Reg. Emerg. Resp. Com.

North Iowa Area Council of Govts.

Ogden Municipal Utility

Page County Landfill Association

Palo Alto County Hospital

Plymouth County Solid Waste Agency

Pottawattamie County

Poweshiek Water Association

Second Judicial Dist Dept. of Correct

Seventh Judicial District

Third Judicial District

Van Buren County Hospital

Washington County Hospital

Waverly Health Center

Waverly Light and Power

Webster County Solid Waste Commission

Wilton Municipal Light and Power

 STATISTICAL INFORMATION (UNAUDITED)

MAJOR PARTICIPANTS
	Top Ten Participants		Top Twenty Participants		Top Fifty Participants
	Percent	Total Assets	Percent	Total Assets	Percent	Total Assets
2015	61%	$ 180,639,805	75%	$ 222,927,515	91%	$ 269,435,729
2014	59%	186,561,809	75%	236,583,802	91%	286,164,072
2013	66%	299,996,375	78%	353,591,054	93%	421,950,854
2012	73%	393,342,100	82%	445,695,043	94%	509,409,879
2011	70%	366,772,444	80%	417,092,754	92%	484,160,277
2010	68%	297,982,346	78%	339,077,179	91%	397,601,718
2009	61%	293,717,646	71%	340,178,059	87%	417,691,066
2008	48%	169,271,079	60%	211,718,912	80%	283,235,598
2007	37%	88,409,383	50%	120,897,069	75%	179,823,065
2006	32%	65,432,579	47%	95,702,772	75%	152,227,092
INVESTMENT ADVISER
Miles Capital has served as the sole Investment Adviser to all investment alternatives within IPAIT since the program’s
inception in 1987.  As of June 30, 2015 Miles Capital had a total of $4.35 billion in assets under management, representing
a diverse group of institutional and individual clients.
CONSULTANTS
IPAIT does not employ the use of any professional consultants beyond those service providers detailed in the Notes to
Financial Statement Section.
BROKERS
IPAIT does not employ the use of brokers in the operation of its various investment alternatives.
CHANGES IN PARTICIPANT NET ASSETS UNDER MANAGEMENT
		Diversified Portfolio	Annual Change		Diversified Portfolio	Annual Change
	06/15	$ 297,197,204	-5.82%	06/10	$ 435,708,180	-9.49%
	03/15	331,184,599	-11.49%	03/10	558,584,374	3.06%
	12/14	323,576,257	-29.38%	12/09	530,312,284	37.40%
	09/14	334,312,995	-25.80%	09/09	508,783,012	29.70%
	06/14	315,577,872	-30.75%	06/09	481,402,637	35.46%
	03/14	374,179,071	-27.30%	03/09	542,002,661	63.25%
	12/13	458,174,841	-7.39%	12/08	385,961,736	34.00%
	09/13	450,571,900	-11.64%	09/08	392,271,966	44.78%
	06/13	455,697,315	-15.97%	06/09	481,402,637	35.46%
	03/13	514,663,471	-0.62%	03/09	542,002,661	63.25%
	12/12	494,742,322	-6.04%	12/08	385,961,736	34.00%
	09/12	509,924,527	-0.28%	09/08	392,271,966	44.78%
	06/12	542,322,659	3.49%	06/08	355,390,565	47.87%
	03/12	517,894,507	1.09%	03/08	331,998,874	13.10%
	12/11	526,528,050	17.33%	12/07	288,037,962	17.49%
	09/11	511,342,006	2.58%	09/07	270,935,522	5.68%
	06/11	524,016,990	20.27%	06/07	240,334,243	18.11%
	03/11	512,301,188	-8.29%	03/07	293,556,937	23.79%
	12/10	448,774,035	-15.38%	12/06	245,158,277	1.04%
	09/10	498,458,887	-2.03%	09/06	256,375,849	2.48%

36

 STATISTICAL INFORMATION (CONT.) (UNAUDITED)

MONTHLY AVERAGE YIELD COMPARISON
	Diversified Portfolio	Money Market	Chapter 74A	Chapter 74A
Date	Net Rate	Benchmark	32-89 Day	90-179 Day
06/2015	0.01%	0.01%	0.05%	0.05%
05/2015	0.01%	0.01%	0.05%	0.05%
04/2015	0.01%	0.01%	0.05%	0.05%
03/2015	0.01%	0.01%	0.05%	0.05%
02/2015	0.01%	0.01%	0.05%	0.05%
01/2015	0.01%	0.01%	0.05%	0.05%
12/2014	0.01%	0.01%	0.05%	0.05%
11/2014	0.01%	0.01%	0.05%	0.05%
10/2014	0.01%	0.01%	0.05%	0.05%
09/2014	0.01%	0.01%	0.05%	0.05%
08/2014	0.01%	0.01%	0.05%	0.05%
07/2014	0.01%	0.01%	0.05%	0.05%
AVERAGE ANNUAL YIELD COMPARISON
	Diversified Portfolio	Money Market
	Net Rate	Benchmark
2015	0.01%	0.01%
2014	0.01%	0.01%
2013	0.01%	0.01%
2012	0.02%	0.01%
2011	0.06%	0.01%
2010	0.13%	0.02%
2009	1.01%	0.70%
2008	3.46%	3.24%
2007	4.84%	4.54%
2006	3.70%	3.43%
TOTAL NET INVESTMENT INCOME
FOR THE FISCAL YEARS ENDED JUNE 30,
	Diversified
	Portfolio
2015	$ 31,597
2014	39,545
2013	50,683
2012	81,377
2011	280,265
2010	625,355
2009	4,311,687
2008	10,042,030
2007	11,907,172
2006	8,475,466

37

 CHANGES IN NET ASSETS (UNAUDITED)

For the Years Ended June 30,
(dollars in thousands)
DIVERSIFIED PORTFOLIO
		2015	2014	2013	2012	2011
ADDITIONS
From investment activities:
	Net investment income	$ 32	$ 40	$ 51	$ 81	$ 280
From unit transactions:
	Units sold	778,834	794,889	791,827	959,524	1,203,124
	Units transferred from
	DGO on 9/09/2010 *	--	--	--	--	67,592
	Units issued in reinvestment
	of dividends from net
	investment income	29	40	51	95	279
	Total additions	778,895	794,969	791,929	959,700	1,271,275
DEDUCTIONS
Dividends to unitholders from:
	Net investment income	(32)	(40)	(51)	(81)	(280)
From unit transactions:
	Units redeemed	(797,244)	(935,048)	(878,504)	(941,313)	(1,182,686)
	Total deductions	(797,276)	(935,088)	(878,555)	(941,394)	(1,182,966)
Changes in net assets		(18,381)	(140,119)	(86,626)	18,306	88,309
Net assets at beginning of period		315,578	455,697	542,323	524,017	435,708
Net assets at end of period		$ 297,197	$ 315,578	$ 455,697	$ 542,323	$ 524,017
		2010	2009	2008	2007	2006
ADDITIONS
From investment activities:
	Net investment income	$ 625	$ 4,312	$ 10,042	$ 11,907	$ 8,472
From unit transactions:
	Units sold	1,015,718	1,404,293	1,350,872	1,246,520	1,151,720
	Units issued in reinvestment
	of dividends from net
	investment income	681	4,689	10,036	11,055	7,815
	Total additions	1,017,024	1,413,294	1,370,950	1,269,482	1,168,007
DEDUCTIONS
Dividends to unitholders from:
	Net investment income	(625)	(4,312)	(10,042)	(11,907)	(8,472)
From unit transactions:
	Units redeemed	(1,062,094)	(1,282,970)	(1,245,851)	(1,220,723)	(1,185,721)
	Total deductions	(1,062,719)	(1,287,282)	(1,255,893)	(1,232,630)	(1,194,193)
Changes in net assets		(45,695)	126,012	115,057	36,852	(26,186)
Net assets at beginning of period		481,403	355,391	240,334	203,482	229,668
Net assets at end of period		$ 435,708	$ 481,403	$ 355,391	$ 240,334	$ 203,482
* DGO refers to the Direct Government Obligation Portfolio

38

 GLOSSARY OF INVESTMENT TERMS

Glossary of Investment Terms

Accrued interest - interest accumulated on all securities in a portfolio since the most recent payment date for each security.

Administrator - entity that carries out IPAIT policies and provides participant recordkeeping services.

Amortized Cost - method of accounting that gradually reduces a security's discount or premium on a straight-line basis.

Assets - items in financial statement with current market value owned by IPAIT.

Certificate of Deposit - debt instrument issued by a financial institution with an interest rate set by competitive forces in the marketplace.

Collateral - U.S. government or agency securities pledged to IPAIT until investment is repaid. For instance, the security for a collateralized certificate of deposit issued by an Iowa financial institution.

Compound Rate - interest calculation based upon investment of principal plus reinvestment of interest earned from previous period(s). IPAIT portfolio interest is compounded or reinvested monthly.

Custodian - bank that maintains custody of all IPAIT assets.

Discount - the dollar amount by which the par value of a bond exceeds its market price.

Diversified - spreading of risk by investing assets in several different categories of investment and assorted maturities within those categories.

Investment Adviser - Securities and Exchange Commission registered firm that provides investment advice to IPAIT.

Iowa Code Chapter 74A Rates - Minimum rates at which Iowa financial institutions may accept deposits of public funds for various periods.

Liabilities - claims on the assets of IPAIT.

Fair Value - the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Net Investment Income - income from IPAIT investments distributed to participants after payment of program operating expenses.

Nominal Rate - simple interest calculation based only upon the principal amount invested without reinvestment of earned interest.

Par Value - value of IPAIT investments at maturity.

Portfolio - all investments owned by IPAIT.

Premium - the dollar amount by which the market price of a bond exceeds its par value.

Redemptions - withdrawal of funds by participants from IPAIT.

Repurchase Agreement - agreement between IPAIT and a seller of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price at a stated time. The transaction is collateralized by U.S. government or U.S. agency securities with a market value of at least 102% of the value of the repurchase agreement.

Straight-Line - conservative accounting procedure to reduce a security's premium or discount in equal daily increments over its remaining period to maturity.

U.S. Government Agencies - securities issued by U.S. government sponsored corporations such as the Federal Home Loan Bank and Federal National Mortgage Association.

U.S. Government Securities - direct obligations of the U.S. government, such as Treasury bills, notes and bonds.

Yield Curve - graph plotting yields of securities of similar quality on vertical axis and maturities ranging from shortest to longest on horizontal axis.

39

IOWA PUBLIC AGENCY INVESTMENT TRUST

C/O MILES CAPITAL, INC.

1415 28^TH STREET, SUITE 200

WEST DES MOINES, IA  50266-1461

(800 872-4024)

WWW.IPAIT.ORG

Item 2. Code of Ethics.

(a) The Registrant has adopted a Code of Ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party.

(b) No comment required.

(c) Not applicable.

(d) Not applicable.

(e) Not applicable.

(f)(1) Not applicable.

(f)(2) Not applicable.

(f)(3) To request a free copy of the IOWA PUBLIC AGENCY INVESTMENT TRUST code of ethics, please call 1-800-438-6375.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant’s Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its audit committee.

(a)(2) Paula Meyer is the independent director named as the audit committee financial expert.

Item 4. Principal Accountant Fees and Services

(a)The aggregate fees for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements are listed below.  

     June 30, 2015  $17,500

     June 30, 2014  $17,000

(b) Not applicable.

(c)Tax preparation fees. Professional services for the preparation of the Registrant’s tax returns by the principal accountant.

 June 30, 2015  $1,250

    June 30, 2014  $1,250

(d) Not applicable.

(e) Not applicable.

(f) Not applicable.

(g) Not applicable.

(h) Not applicable.

Item 5.  Not applicable.

Item 6.  Not applicable.

Item 7.  Not applicable.

Item 8.  Not applicable.

Item 9.  Not applicable.

Item 10.  Not applicable.

Item 11. Controls and Procedures.

(a) The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of September 4, 2015, a date within 90 days of the filing date of this report.  

(b) There were no significant changes in Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonable likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) A certification from the principal executive and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CRF 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

IOWA PUBLIC AGENCY INVESTMENT TRUST

By /s/ Brent Hinson

Brent Hinson, Chair and Trustee

Date: September 4, 2015

Pursuant to the requirements of the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature and Title

By /s/ David W. Miles

David W. Miles, Chief Executive Officer

Date:  September 4, 2015

By /s/ Amy M. Mitchell

Amy M. Mitchell, Chief Financial Officer

Date:  September 4, 2015