06-20-07 FPAC Minutes - Laserfiche WebLink

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funds. Skill and judgment shall be exercised in order that no individual or group of • transactions undertaken would jeopardize the total capital sum of the overall portfolio. LIQUIDITY AND DIVERSITY: The total cash assets of the City shall be invested in instruments whose maturities conform to the cash flow needs of the City. The investment portfolio shall be diversified to reduce the risk of loss investment income from over-concentration of assets in a specific issue, a specific issue size, or a specific class of securities. COLLATERILIZATION: All City funds must be deposited in financial institutions which provide $100,000 in governmental insurance protection. At no time, will deposits in any one institution exceed $100,000 unless such excesses are protected by pledged securities, and will be limited to the following: 1. U.S. Treasury Bills, Notes or Bonds all of which mature within five (5) years. 2. U.S. Agency securities created by an act of Congress. 3. Repurchase Agreements, with maturities not exceeding one (1) year, secured by U.S. Government Bills, Notes or Bonds. • 4. Municipal general Obligation Bonds, Rated "A" or better by Moodys, with maturities not exceeding five (5) years. INTERNAL CONTROLS: A system of internal controls shall be followed and shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City. Controls deemed most important shall include: 1. Custodial safekeeping, when appropriate. 2. Clear delegation of authority. 3. Written confirmation of telephone transactions. 4. Limiting the number of authorized investment officials. 5. Documentation of transactions and strategies. 6. Quarterly investment reporting to the City Manger and City Council. •