2008-045 - Laserfiche WebLink

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CITY OF SANTA ANA STATEMENT OF INVESTMENT POLICY JULY 2008-2009 QUALIFIED Dr." T "'I> 'J l\HO mS'l'I'lUt'IORS; The City shall transact business only with banks, savings and loans and registered investment securities dealers. The purchase by the City of any investment other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, who is a member of the National Association of Securit~es Dealers, or a member of a Federally regulated securities excha.'1ge, 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 Government Dealer by the Federal Reserve Bank. The City's Treasurer's staff shall inves':igate all instit'.1tions which wish to do business with the City, in order to determine if they are adequately capitalized, make 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 policy and Investment Portfolio Guidelines. This will be done annually by having the Financial Instt tutions complete and return the appropriate questionnaire, and an audited Financial Statement nust be provided within one-hundred, twenty (120) days of the Institution's fiscal year-end. SAFl!:KEEPING OJ!' SECURITIES: TO protect against potential losses caused by collapse of individual secur~ties dealers, all securities owned by the City except secur:.ties used as collateral tor repurchase agreements, shall be kep:: in safekeeping with "pertectEld interest" by a third party bank trust departmen::, acting as agent for the City under the terms of a custody agreement executed by the bank and by the City. All securities ,,,ill be received and delivered using standard delivery versus payrr.enl procedures. INTERNAL CONTROLS: The Bxecutive D~rector, Finance and Management Services is responsible for establ~sh~ng and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse, The Executive Directo,,", Finance and Management Services has deve10ped a system of internal investment controls and a segregation of responsibilities of investment functions in order to assure an adequate system of internal control over the investment function. Internal control procedures address wire controls, separation of dut.iE'S, deli',ery of securities to a ::hird party for custodial safekeeping, and written procedures for placing investment transactions. Cash balances are reconciled daily by non-investment employees and rE'confirmed by the City's accounting staff. In addition, the City'S Resolution No. 2008-045 Page 9 of 10