2003-056 - Considering the City's Statement of Investment Policy

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CITY OF SANTA ANA STATEMENT O~' INVESTMENT POLICY ~JLY 2003-2004 Securities Dealers, or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a Federal or State Association (as defined by Section 5102 of the Financial Code), or a brokerage firm, designated as a Primary Goverr~ent Dealer by the Federal Reserve Bank. The City Treasurer's staff shall investigate all institutions which wish to do business with the City, in order to determine if they are adequately capitalized, ~ake markets in securities appropriate to the City's needs, and agree to abide by the conditions set forth in the City' Of Santa Ana's Investment Poll~t and Investment Portfolio ~lidel~nes. This will be done arn%ually by having the Financial Institutions complete and resurn the appropriate questionnaire, and an audited Financial Statement must be provided within 120 days of the Institution's fiscal year- end. To protect against potential losses caused ~y collapse of individual securities dealers, all securities owned by [he City except securities used as collateral for repurchase agreements, shall be kept in safekeeping with "perfected interest" by a third party bark trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and by ~he City. Ail securities will be zeceived ~nd delivered using standard delivery versus payment procedures. The Executive Director, Finance and Management Services is responsible for establishing and maintaining an internal control structure designed to ensure that the assets Of the entity are protected from loss, theft Or misuse. The Executive Director, Finance and Management Services has developed a system of internal investment controle and a segregation of respo~sibilities of investment functions in order to assure . an adequate ~yetem of internal control over the investment function, internal control procedures address wire controls, separation of duties, delivery of securities to a third party for custodial safekeeping, and written procedures for placing inYestme~t =ransactions. Cash balances are reconciled daily by non-investment employees and reconfirmed by the City's accountin~ staff, in addition, the City's accountinG staff also verifies investment activities ~d holdings on a monthly basis. The Executive Director, Fin~ce and Management Services shall establish a process for ann~al independent review by an external auditor to the extent contemplated by generally accepted auditing standards. Resolution No. 2003-056 Page 10 of 11