06-20-07 FPAC Minutes - Laserfiche WebLink

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the overall portfolio's investment return, provided adequate diversification has been implemented. DELEGATION OF AUTHORITY: In accordance with Minnesota Statutes Chapter 118A,the responsibility for conducting investment transactions resides with the treasurer. Management responsibility for the investment program is hereby delegated to the treasurer and assistant finance director (hereafter referred to as investment officers), who are authorized to make investments of public funds. No person may engage in an investment transaction except as provided under the terms of this policy. PRUDENCE: Investments shall be made with judgement and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The investment officers, acting in accordance with this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and that appropriate action is taken to control adverse developments. ETHICS AND CONFLICT OF INTEREST: Investment officers shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Investment officials shall disclose any material interest in financial institutions with40 which they conduct business. Investment officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. INTERNAL CONTROL: The investment officers are 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 or reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of cost and benefits, requires estimates and judgements by management. Accordingly, the investment officers shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: • Control of collusion • Separation of transaction authority from accounting and record-keeping • Custodial safekeeping • Avoidance of physical delivery securities • Written confirmation of transactions for investments and wire transfers • Documentation of transactions •