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<br />compliance audit ofmanagell1cnt controls on investments and adhercnceto the agency's established investment policics_
<br />The compliance audit shall be perfonned by the agency's internal auditor or by a private auditor employed in lhe manner
<br />provided by Section 321.020, '\fallaler than January I of each even-numbered year a slate agency shall report the results
<br />of the most recent audit pcrlonned under this subsection to the slate l1uditoT. Subject to a risk assessment and 10 the
<br />legislative audit committec's approval of including a review by the stale auditor in thc audit plan under Sectioll 321 013,
<br />the SlaW auditor may review information provided underthis section. [freview by the Slate auditor is approved by the
<br />legislative audit committee, the state auditor mayc based 011 its review, require a stale agency to also rcpoFt to the slate
<br />aud llor other i nlormallo(J th estate aud itor d erennin e s necessary to assess comp Ii ance with laws and poli cics app 1 i eabl e to
<br />state agency investlllents. A repon under this subsection shall be prepared in a manner the state auditor prescrihes,
<br />
<br />(0) The audit requirements of Subsection (II) do not apply to assets ofa Slate agency that are invested by the
<br />comptroller under Section 404.024.
<br />Amended by Acts 1995, 74th Leg., eh.402, Sec. L efr. Sept. 1. 1995: Acts 1997, 75th Leg., dJ.(j85, Sec. I, c1I, Sept. I,
<br />1997, Acts 1997, 75th Leg,c eh. 142 L Sec. 3, eff ';cJlt. l. 1997; '\ct5 1999, 76th Leg" eh. 1454. See, 4, eft'. Sept. 1.
<br />1999: Acts 2003, 78th Leg" eh. 785, Sec. 4l, efT Sept. 1,2003.
<br />
<br />See, 2256.006, S'fANDARD OF CARF:, (a) Investments shall be made with judgment and care, under
<br />prevailing circumstances, that a person of prudence. discretion, and intelligcll\.;e IVould exen:isc in the management oI'lhe
<br />person's own atlairs. not fot speculation, but for investment, considering the prohable safety of capital and the probable
<br />income to be derived. lnvesunent oj' funds shall be g.overned by the ti.Jllowing. investment objectives, in order of prinrit),
<br />(1) preservation and safel} of principal;
<br />(2) liquidity; and
<br />(3) yield,
<br />
<br />(b) In detennining whether an investmcntofficer hRs eXl'rcised prudence with respcct to an illl'estmel1t deCISion,
<br />the determ/rllltion shall be made taking into consideration:
<br />(1) the investment of all funds, or funds under the entity's control. over which the offker had
<br />responsibility rather than a consideration as to the prudence of a single invcstment; and
<br />12) whether the investment decision was consistent with the written investment policy of the entily.
<br />A mended by Acts 1995. 74th r~eg., ch, 402, See, I. ell Sept, " 1995
<br />
<br />'lec.2256.007 INVESTrvlENT TRAINING, STATE '\.GE'-CY BOARD MEMBERS AND OFFICERS, I a)
<br />Each member ofthe governing board of a state agency and its investment oflleer shall attend at least one training session
<br />relating to the person's responsibilitics under this chapter within six 1110nths after taking office or assuming duties.
<br />
<br />(b) The Texas Higher Education Coordinating Board shall provide the training tinder this section.
<br />
<br />(C) Training under this section must include educatloll in investment controls, security risks, strateg) risks.
<br />market risks. diversitication of investment portfolio. and compliance With this chapter.
<br />
<br />(d) An investment officer shall attend a training session not less than once in a two-year period and may receive
<br />training tram any independclllsouree approved by tile governing body of the state agency The investment oflicer shall
<br />prepare a report on this subchapter and deliver tJle r~port to the governing body of the stale agency not later than the
<br />180th da) after the last day of each regular session of the legislature.
<br />Amended by Acts 11)95, 74th Leg.. ch. 402, See, L efL Sept. 1, 1995: Acts 1997, 75th Leg.. eh. 73, Sec. I. elf May 9c
<br />1997; Acts 1997. 75th Leg.. ell, 1421. Scc. 4, eff. Sept. 1,1997: Acts 1999, 76lh Leg., ch, 1454. <;ee, 5, elf. "'ept. 1.
<br />1999_
<br />
<br />Sec. 2256,008. tN\-ESTMENT TRAJ'\ING. LOCAL lJOVERNMEJl.:TS (a) Exeept as provided b)
<br />Subsections (b) and (e). the treasurer, the chief financial ofl1eer if the treasurer is nolthe ehicffinancial officcr, and the
<br />investment officer of a local government shall:
<br />
<br />(I) attend at least one training session from an independent source approved by the governing budy of
<br />the local government or a designated investment committee advising the investmcnt officer as proVIded lor III the
<br />iuvcstment policy of the local government and containing at lca~t I I) hours of instruction relating to the lreasurer's OJ'
<br />
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<br />~it~. -~ San ~r~r _,~ Invescment '.-ll:}
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