Resolution 2012-14 - Laserfiche WebLink

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Securities will be held by an independent third-party custodian selected by the City and evidenced by safekeeping receipts in the City's name. The safekeeping institution shall provide on an annual basis a copy of its most recent report on internal controls (Statement of Standards 70). Moreover, management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. The internal controls structure should address the following points: • Control of collusion. • Separation of transaction authority from accounting and recordkeeping. • Custodial safekeeping. • Avoidance of physical delivery securities. • Written confirmation of transactions for investments and wire transfers. • Dual authorization of wire transfers. Compliance with these controls shall be reviewed and confirmed through the City's annual independent audit. Performance Standards & Reporting The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The City's investment strategy is passive. Given this strategy, the basis used by the Finance Director to determine whether market yields are being achieved shall be the ColoTrust local government investment pool, the one-year US Treasury Bill, and the two-year Agency Benchmark. The Finance Director shall provide the Finance Committee monthly investment reports that provide the status and characteristics of the current investment portfolio. The investment report should include schedules on: • Portfolio diversification. • Maturity distribution. • A listing of all securities held by authorized investment category. • Par value, amortized book value, and market value for all securities held. • Monthly activity—purchases, sales, calls, and interest received. Investment Policy Adoption & Amendment The City's Investment Policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by management and any modifications made thereto must also be approved by resolution of the City Council. 72