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HomeMy WebLinkAbout7 Power Point Review of Investment Policy & Delegate Authority Action Item #7 Delegation of Authority andReview Investment Policy Review Investment Policy &2 Requires annual delegation of investment duties•Provides a list of authorized investments•California State Law:to the investment of public fundsDescribes required disclosure of the District’s policy relating •requirementsDescribes local government investment reporting •Governmental Accounting Standards Board (GASB 40):Background / History Delegate Authority to Treasurer Review Investment Policy &3 considering safety of principal and liquidityobtain an acceptable rate of return after –Yield •cash flow needsinvestment maturity should meet the District’s –Liquidity •primary objective of the investment program is –Safety •Statement of Objectives:–and risk are described in Section 3.20.012.2 Investments The District’s Code addressing specific investment priorities Background / History (cont’d)Delegate Authority to Treasurer Review Investment Policy &4 Temporary investment in money market funds•Board approved investments allowed by State law•California’s Local Agency Investment Fund (LAIF)•interest bearing checking and savings–US Bank •Treasurer is authorized to invest District funds in the following:Background / History (cont’d)Delegate Authority to Treasurer Review Investment Policy &5 California.and the names of the investments as mandated by –Quarterly Investment Report •investment activity and balancesincludes monthly cash and –Monthly Treasurer’s Report •Reporting:Background / History (cont’d)Delegate Authority to Treasurer Review Investment Policy &6 authority to the Treasurer to perform investment dutiesState law requires renewing the annual delegation of •portfolioDiversification of the investments and custodial risk of the –trendsPolicy’s relevance to current law and financial and economic –preservation of –Consistency with overall objectives –District’s Code requires annual policy review for:•Background / History (cont’d)Delegate Authority to Treasurer Review Investment Policy &7 No revisions proposed•Investment diversification–Relevance to current law and economic trends–Consistency with overall District objectives–Treasurer reviewed the policy and investments for•New Information Delegate Authority to Treasurer Fiscal Impact Delegate Authority to TreasurerReview Investment Policy &8 There is no direct fiscal impact with this item• Recommendation Delegate Authority to TreasurerReview Investment Policy &9 to invest District funds for FY12 according to the District’s , District TreasurerB) Delegate authority to Robert Mescher, Section 3.20.012 and provide commentA) Review the District’s investment policy as described in