Finance Highlights 2012 0706 - Laserfiche WebLink

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San Leandro Investment Policy Statement Page 7 of 13 ♦ A description of interest calculation methods, how interest is distributed, and how gains and losses are treated. ♦ A description of safekeeping procedures and settlement processes, how often securities are priced, and how often the program is audited. ♦ A description of who are eligible to invest in the program and how often, and any limitations on deposits and /or withdrawals. ♦ A schedule for receiving statements and portfolio listings. ♦ Any policies regarding the use of reserves or retained earnings by the pool. ♦ A fee schedule and a description of how and when fees are assessed. ♦ Any policies regarding the pool's eligibility for bond proceeds if applicable. Securities Issued by the City of San Leandro and its Agencies. The City may elect to sell or purchase its securities through secondary markets when conditions are favorable. See Appendix A City of San Leandro Summary of Eligible Investments on pages 9 and 10 for a tabular listing of the restrictions regarding authorized investments. Competitive Transactions All investment transactions shall be conducted on a competitive basis with quotes from a minimum of three brokers or financial institutions when possible. Safekeeping Purchased securities are held in third party safekeeping by the trust department of the City's bank or other designated third party in the City's name and control. All security transactions entered into by the City will be conducted on a delivery- versus - payment (DVP) basis and evidenced by a receipt issued by the safekeeping agent. Collateral ization An independent third party with whom the City of San Leandro has a current custodial agreement will always hold collateral. A clearly marked evidence of ownership must be supplied to the City. Internal Control and Review The Finance Director will establish an annual review process to be conducted by an independent external auditor. The review will provide internal control by assuring compliance with established City policies and procedures. Performance Standards The portfolio will be structured to obtain a rate of return that reflects the prevailing and historical level of interest rates and the City's expected cash flow needs. The City employs an investment strategy that focuses on safety and liquidity. Given this strategy, the bases used by the Finance Director for benchmark purposes will be the yield on the following safe and liquid investment vehicles: ♦ The State of California Local Agency Investment Fund (LAIF)