Laserfiche WebLink
CITY OF SANTA ANA STATEMENT OF INVESTMENT POLICY <br />JULY 2002-2003 <br /> <br />C~rporations Code, who .is a member of the National Association of <br />Securities Dealers, or a member of a Federally regulated securities <br />exchange, a National or State-Chartered Bank, a Federal or State <br />Association (as defined by Section 5102 of the Financial Code), or a <br />brokerage firm designated as a Primary Government Dealer by the <br />Federal Reserve Bank. The City Treasurer's staff shall investigate <br />all institutions which wish to do business with the City, in order <br />to determine if they are adequately capitalized, make markets in <br />securities appropriate to the City's needs, and agree to abide by <br />the conditions set forth in the City of Santa Ana's Investment <br />Policy and Investment Portfolio Guidelines. This will be done <br />annually by having the Financial Institutions complete and return <br />the appropriate questionnaire, and an audited Financial Statement <br />must be provided within 120 days of the Institution's fiscal year- <br />end. <br /> <br />SAFEKEEPING OF SECURITIES: <br /> <br />To protect against potential losses caused by collapse of individual <br />securities dealers, all securities owned by the City except <br />securities used as collateral for repurchase agreements, shall be <br />kept in safekeeping with "perfected interest" by a third party bank <br />trust department, acting as agent for the City under the terms of a <br />custody agreement executed by the bank and by the City. All <br />securities will be received and delivered using standard delivery <br />versus payment procedures. <br /> <br />INTERNAL CONTROLS: <br /> <br />The Executive Director, Finance and Management Services is <br />responsible for establishing and maintaining an internal control <br />structure designed to ensure that the assets of the entity are <br />protected from loss, theft or misuse. The Executive Director, <br />Finance and Management Services has developed a system of internal <br />investment controls and a segregation of responsibilities of <br />investment functions in order to assure an adequate system of <br />internal control over the investment function. Internal control <br />procedures address wire controls, separation of duties, delivery of <br />securities to a third party for custodial safekeeping, and written <br />procedures for placing investment transactions. <br /> <br />Cash balances are reconciled daily by non-investment employees and <br />reconfirmed by the City's accounting .staff. In addition, the City's <br />accounting staff also verifies investment activities and holdings on <br />a monthly basis. The Executive Director, Finance and Management <br />Services shall establish a process for annual independent review by <br />an external auditor to the extent contemplated by generally accepted <br />auditing standards. <br /> <br />Resolution No. 2002-057 <br /> Page 9 of 10 <br /> <br /> <br />