Laserfiche WebLink
SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of <br />Finance or the City's independent auditors. <br />IX. SAFEKEEPING AND CUSTODY <br />SAFEKEEPING AGREEMENT All securities owned by the City shall be held in the City’s <br />designated third party safekeeping. The third party custodian shall be required to issue safekeeping <br />receipts to the City listing each specific security, description, maturity, cusip number yield and/or <br />coupon, market value and other pertinent information. Each safekeeping receipt shall clearly <br />indicate that the instrument is held for the City of La Porte. All safekeeping arrangements shall be <br />documented by the Investment Officer. <br /> DELIVERY VERSUS PAYMENT All investment transactions shall be executed on a delivery <br />versus payment basis. That is, funds shall not be wired or paid until verification has been made that <br />the collateral was received by the Trustee. The collateral shall be held in the name of the City. The <br />Trustee's records shall assure the notation of the City's ownership of or explicit claim on the <br />securities. The original copy of all safekeeping receipts shall be delivered to the City. <br /> X. MANAGEMENT AND INTERNAL CONTROLS <br /> The Director of Finance shall establish a system of internal controls, which shall be reviewed by <br />an independent auditor. The controls shall be designed to prevent losses of public funds arising <br />from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial <br />markets, or imprudent actions by employees or Investment Officers of the City. <br /> Controls and managerial emphasis deemed most important that shall be employed where practical <br />are: <br /> A. Control of collusion <br />B. Separation of duties <br />C. Separation of transaction authority from accounting and record keeping <br />D. Custodian safekeeping receipts records management <br />E. Avoidance of physical delivery securities <br />F. Clear delegation of authority to subordinate staff members <br />G. Documentation on investment bidding events <br />H. Written confirmation of transactions for investments and wire transfers <br />I. Reconcilement and comparisons of security receipts with the investment subsidiary records <br />J. Compliance with investment policies <br />K. Accurate and timely reports <br />L. Validation of investment maturity decisions with supporting cash flow data <br />M. Adequate training and development of Investment Officers <br />O. Review of financial condition of all brokers, dealers and financial institutions <br />P. Staying informed about market conditions, changes, and trends that require adjustments in <br />investment strategies <br />Q. Monitor credit ratings <br />R. Monitor FDIC status for mergers and acquisitions for brokered CD’s <br />COMPLIANCE AUDIT The City shall perform, in conjunction with its annual financial audit, a <br />compliance audit of management controls on investments and adherence to the entity's established <br />8 <br /> <br />