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Policies <br />(con't) <br />Unless otherwise stated, all <br />investments must be held by the city, <br />in the city's name, or in the custody <br />by a third party on behalf of the city, <br />or in a custodial account with a Bank <br />selected by the Director of Finance. <br />The maximum maturity date for all <br />securities above is no more than 5 <br />years from the date of purchase <br />unless otherwise authorized by the <br />City Council. <br />Diversification -The city will diversify <br />use of investment instruments to <br />avoid incurring unreasonable risks <br />inherent in overinvesting in specific <br />instruments, individual financial <br />institutions or maturities. <br />Investment maturities for operating <br />funds shall be scheduled to coincide <br />with projected cash flow needs, <br />taking into account large routine <br />expenditures (payroll, bond <br />payments) as well as considering <br />sizable blocks of anticipated revenue <br />(sales tax, property taxes). <br />Investments of capital project funds <br />shall be timed to meet contractor <br />payments. <br />Competitive Quotes - The City will <br />seek competitive quotes on all <br />investments. Investments will be <br />made on the basis of the legality, <br />safety, liquidity and yield of invested <br />money with regard for the <br />characteristics of the investments, <br />the quotes and the quoting <br />institutions. <br />Documentation - All purchase and <br />sales of investments shall be <br />authorized or confirmed in writing <br />with the issuer. Internal controls will <br />be established to ensure the integrity <br />of the investment process. For <br />investment transactions which are <br />conducted electronically, <br />confirmation in the form of annotated <br />documentation and confirmation <br />received will be retained. <br />Reporting Requirements -The <br />investment officer shall generate <br />daily and monthly reports for <br />management purposes. The report <br />shall summarize the investment <br />securities, maturities, and any other <br />features necessary for clarification. <br />Accounting Policies <br />41. The city will establish and <br />maintain a high degree of <br />accounting practice. <br />Accounting systems will <br />conform to accepted principles <br />of standards of the Government <br />Finance Officers Association, <br />State of Colorado and the <br />National Council on <br />Government Accounting. <br />42. The city shall apply to the <br />Government Finance Officers <br />Association for its Certificate of <br />Conformance in the Financial <br />Reporting Program. <br />43. An annual audit will be <br />performed by an independent <br />public accounting firm with the <br />subsequent issue of an official <br />annual financial statement. <br />15 <br />