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Item 44 - Annual Statement of Investment Policy
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Item 44 - Annual Statement of Investment Policy
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8/10/2023 9:50:01 AM
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City Clerk
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Agenda Packet
Agency
Clerk of the Council
Item #
44
Date
6/6/2023
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July 1, 2023 - <br />June 30, 2024 <br /> City of Santa - Annual <br />Statement of Investment Policy Page 18 <br />14.0 MAXIMUM MATURITIES <br /> <br />14.1 Maximum Maturities <br />To the extent possible, the City of Santa Ana will attempt to match its investments with <br />anticipated cash flow requirements and thus maturities shall coincide as nearly as <br />possible with the anticipated need. The maximum durations for authorized investments <br />pursuant to section 8. 2 subsections (A) through (F) are as follows: <br />• United States Treasury Bills, Notes, and Bonds – five (5) years maximum maturity <br />• Obligations issued by a Federal Agency or a United States Government <br />Sponsored Enterprise – five (5) years maximum maturity <br />• Supranational Obligations - five (5) years maximum maturity <br />• Bills of Exchange/Banker's acceptances - one hundred eighty (180) days <br />maximum maturity. <br />• Commercial Paper - two hundred seventy (270) days maximum maturity <br />• Repurchase Agreements – one (1) year maximum maturity <br />• Negotiable Certificates of Deposit - five (5) years maximum maturity <br />• Local Agency Investment Fund (LAIF) State Pool - no final stated maturity <br />• City of Santa Ana Bonds - five (5) years maximum maturity <br />• Other State of California Local Agency Bonds - five (5) years maximum maturity <br />• Medium Term Corporate Notes - five (5) years maximum maturity <br />• Shares of Beneficial Interest/Money Market Shares - no final stated maturity <br />(See also subsection 8.2 generally for additional information on City authorized <br />concentration limits and quality requirements.) <br /> <br />14.2 Average Maturity <br />In accordance with the goal of minimizing interest rate risk (see subsection 4.1(b)) <br />the City of Santa Ana will to the extent possible attempt to aim for an average <br />investment portfolio maturity of 3 years. <br /> <br />15.0 INTERNAL CONTROLS <br /> <br />The Executive Director for FMSA is responsible for establishing and maintaining an internal <br />control structure designed to ensure that the assets of the entity are protected from loss, <br />theft or misuse. The Finance Department, with oversight and approval of the Executive <br />Director for FMSA, has developed a system of internal investment controls and a <br />segregation of responsibilities of investment functions in order to assure an adequate <br />system of internal control over the investment function. No investment personnel may <br />engage in an investment transaction except as provided for under the terms of this policy <br />and the procedure established by the Executive Director for FMSA.
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