Res 2004-196 - Laserfiche WebLink

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I I I XIII. INTERNAL CONTROLS The Investment Officer shall establish a system of written internal controls that will be reviewed annually with the independent auditor of the City along with quarterly investment reports. The controls will be designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, unanticipated market changes, or imprudent actions by employees, contracted investment managers or financial counterparties of the City. XIV. PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and cash flow needs of the City. A benchmark for performance of the portfolio will be included in the quarterly reports based on the portfolio's maximum weighted average maturity of 180 days. The period average yield of the six-month u.s. Treasury Bill will be used as the City's benchmark. XV. REPORTING The Investment Officer( s) shall provide the City Council quarterly investment reports as required by the Texas Public Funds Investment Act and a monthly report to the Investment Committee. The reports will reflect both detail and summary information enabling the reader to determine the value and risk associated with the portfolio. Market values for the report will be derived from an independent source. A management report will be included with the quarterly investment report. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. XVI. CASH MANAGEMENT PROGRAMS AND ACTIVITIES The Department of Finance is committed to the overall success of the City's cash management programs. These programs address a variety of cash management issues, including: 1. The design and implementation of reliable and effective cash flow forecasting methodologies to assist Finance Department personnel in the determination of the amounts of cash available for investment, the time period for which the funds may be invested with a reasonable level of confidence, and a measure of the volatility of specific cash forecasts, which will allow viable detemlination of the required liquidity. 2. The design and implementation of appropriate "revenue-acceleration programs", aimed at enhancing the speed at which monies are collected and deposited by the City and the elimination of bad debt expense/write-offs. City of San Marcos Investment Policy Page 7