06-20-07 FPAC Minutes - Laserfiche WebLink

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report may be included within the [entity] annual Comprehensive Annual Financial Report. 11111 2. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. The benchmarks shall be reflective of the actual securities being purchased and risks undertaken, and the benchmarks shall have a similar weighted average maturity as the portfolio. Alternative sample: The[entity's] cash management portfolio shall be designed with the objective of regularly meeting or exceeding a selected performance benchmark,which could be the average return on three-month U.S.Treasury bills,the state investment pool,a money market mutual fund [specify] or the average rate of Fed funds. These indices are considered benchmarks for lower risk investment transactions and therefore comprise a minimum standard for the portfolio's rate of return. 3. Marking to Market The market value of the portfolio shall be calculated at least quarterly[or monthly] and a statement of the market value of the portfolio shall be issued at least quarterly[or monthly]. This will ensure that review of the investment portfolio,in terms of value and price volatility,has been performed consistent with the GFOA Recommended Practice on "Mark-to-Market Practices for State and Local Government Investment Portfolios and Investment Pools." (See GFOA Recommended Practices in Appendix.)In defining market value,considerations should be given to the GASB Statement 31 • pronouncement. X. Policy Considerations 1. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. Alternative sample: Any investment currently held that does not meet the guidelines of this policy shall be temporarily exempted from the requirements of this policy. Investments must come in conformance with the policy within six months of the policy's adoption or the governing body must be presented with a plan through which investments will come into conformance. 2. Amendments This policy shall be reviewed on an annual basis. Any changes must be approved by the investment officer and any other appropriate authority, as well as the individuals charged with maintaining internal controls. XI. Approval of Investment Policy The investment policy shall be formally approved and adopted by the governing body of the [entity] and • reviewed annually.