02-26-2002 PTRC Packet - Laserfiche WebLink

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Maximum Maturities: • To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five years from the date of purchase. At any point, no more than 50% of the portfolio will be invested in maturities greater than three years. Internal Control: The City shall continue its annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. Internal control is the City's responsibility and such internal control procedures will be established and maintained throughout the year. Performance Standards: The investment portfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow needs. Reporting, The investment reporting function shall include requirements for: budgetary reporting, interim reporting, internal reporting and annual reporting. Budgetary Reporting: As part of the annual budget, interest income shall be estimated for all funds based on a cash flow forecast. This forecast shall take into account the historical pattern of inflows and outflows of cash and any other pertinent factors affecting cash flow. The budget document shall explicitly state the assumptions of the cash flow forecast and the assumed interest rate for the entire investment portfolio. Interim Reporting: The investment portfolio of the City shall be provided to the Council along with the Budget versus Actual reports monthly. The portfolio shall be sequenced by maturity date and shall state the type of investment, cost, rate and yield percentages and shall indicate an annualized rate of return based on the daily interest strategy or anticipated variances from the investment income budgeted. 4