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San Leandro Investment Policy Statement Page 8 of 13 <br /> <br /> <br />Internal Control and Review <br />The Finance Director will establish an annual review process to ensure compliance with <br />the established Investment Policy and routine reporting requirements. <br /> <br />Performance Standards <br />The investment portfolio shall be designed with the overall objective of obtaining a total <br />rate of return throughout economic cycles, commensurate with investment risk <br />constraints and cash flow needs. <br /> <br />The investment performance objective for the portfolio shall be to earn a total rate of <br />return over a market cycle which is approximately equal to the return on a Market <br />Benchmark Index of similar risk characteristics as that of the City’s investment portfolio. <br /> <br />Other market investments that may be used as yield comparisons include: <br /> <br /> The State of California Local Agency Investment Fund (LAIF) <br /> The two-year U.S. Treasury Bill <br /> The five-year U.S. Treasury Note <br /> <br />Reporting <br />This policy will be reviewed annually with the City Council to ensure compliance with the <br />objectives of safety, liquidity and yield and adherence with applicable laws. The City <br />Council Finance Committee will review and approve all changes to this policy statement <br />prior to submittal to the full City Council for approval. <br /> <br />California Government Code Section 53646 states that the Finance Director may render a <br />quarterly report on the status of the City’s investment portfolio to the City Manager and the <br />City Council within 30 days after the end of the calendar quarter. The report will provide <br />detailed information regarding the type of investments, the amount invested with various <br />institutions, purchase and maturity dates, and interest yield on all investments. The report <br />shall state if the City’s investments are in compliance with this policy and if the City will be <br />able to meet its cash obligations during the next six-month period. The Finance Director, <br />will submit a monthly transactions report on the portfolio’s activity to the City Manager and <br />City Council consistent with the requirements of the State Code. <br /> <br /> <br />