06-20-07 FPAC Minutes - Laserfiche WebLink

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• collateral/depository agreements, including but not limited to reference of GFOA's 4111 Investment Procedures Manual,2003. No engage may in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. V. AUTHORIZED FINANCIAL INSTITUTIONS,DEPOSITORIES,AND BROKER/DEALERS 1. Authori<ed Financial Institutions, Depositories, and Broker/Dealers A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition,a list will be maintained of approved security broker/dealers selected by creditworthiness (e.g.,a minimum capital requirement of$10,000,000 and at least five years of operation). These may include"primary"dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate: • Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines; • Proof of National Association of Securities Dealers (NASD) certification (not applicable to Certificate of Deposit counterparties); • • Proof of state registration; • Completed broker/dealer questionnaire (not applicable to Certificate of Deposit counterparties); • Certification of having read and understood and agreeing to comply with the City of Medina's investment policy;and • Evidence of adequate insurance coverage. An annual review of the financial condition and registration of all qualified financial institutions and broker/dealers will be conducted by the Treasurer. VI. INTERNAL CONTROLS 1. Internal Controls The Finance Director 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. Details of the internal controls system shall be documented in an investment procedures manual and shall be reviewed and updated annually. 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. 41111 The internal controls structure shall address the following points: Page 4 of 8