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Effective cash management is recognized as essential to good fiscal management. Cash management <br />is defined as the process of managing monies in order to ensure maximum cash availability to the <br />City for investment use. The City shall maintain a comprehensive cash management program that <br />includes collection of accounts receivable, prudent investment of its available cash, disbursement of <br />payments in accordance with invoice terms and the management of banking services. <br />VI. DELEGATION OF AUTHORITY <br />Management responsibility for the investment program is hereby delegated to the Director of <br />Finance, the Assistant Director of Finance/Controller, and the Accounting Manager, and they are <br />therefore designated as the Investment Officers under the Texas Public Funds Investment Act. The <br />Investment Officer(s) shall be responsible for all transactions undertaken and shall establish a system <br />of controls to regulate the activities of subordinate officials. <br />Investment managers under contract to the City or other City employees may also be designated as <br />Investment Officers by the City Council. A contracted Investment Manager will perform the <br />investment responsibilities ofthe Investment Officer. The investment management firm selected to <br />transact investment business on behalf of the City will be provided a copy of this Policy to assure <br />that they are familiar with the goals and obj ectives of the investment program. All key investment <br />professionals of the investment management firm will be required to return a signed copy of the <br />Certification by Business Organization substantially in the form provided as Appendix B. The <br />investment management firm, which will act in a fiduciary capacity, must be registered with the <br />Securities and Exchange Commission under the Investment Advisor's Act of 1940. The Investment <br />Manager will be required to manage the City's funds in accordance with the laws of the State of <br />Texas, and investment policies and procedures established by the City. <br />Investment Officers who are employees of the City acting in accordance with this standard, written <br />procedures and the Policy and exercising due diligence shall be relieved of personal responsibility for <br />an individual security's credit risk or market price changes, provided deviations from expectations <br />are reported in a timely fashion and appropriate action is taken to control adverse developments. <br />Investment Managers acting under contract to the City are not relieved of personal responsibility. <br />An Investment Committee consisting of the City Manager, Assistant City Manager, Director of <br />Finance, Assistant Director ofFinance/Controller and Accounting Manager is established to review <br />monthly reports and Policy changes as well as advise the City Council on investment matters. The <br />Investment Committee shall, at least annually, review, revise, and adopt a list of authorized <br />broker/dealers that may engage in investment transactions with the City based on the annual review <br />of the financial condition and registrations of dealers and institutions conducted by the Investment <br />Officer (in accordance with Section VIII). <br />VII. INVESTMENT PROCEDURES <br />The Investment Officer(s) shall establish reasonable commercial written procedures for the operation <br />City of San Marcos Investment Policy Page 3 <br />