HomeMy WebLinkAbout13-005RESOLUTION NO. 13-005
A RESOLUTION AMENDING THE INVESTMENT POLICY
FOR ST. LUCIE COUNTY, FLORIDA; BY FURTHER
AMENDING THE INVESTMENT POLICY
WHEREAS, the Board of County Commissioners of St. Lucie County, Florida, has made the following
determinations:
1. Pursuant to Section 218.415, Florida Statutes, on or before October 1,1995, counties that
have custody of public funds in excess of the amounts needed to meet current expenses who elect to
conduct investment activity themselves ratherthan depositing these funds in the Local Government Surplus
Funds Trust Fund for investment by the State Board of Administration, are required to conduct such
investment activity in accordance with a written investment plan and an investment policy adopted by the
Board of County Commissioners or in the alternative to invest in specified low-risk instruments.
2. On September 26, 1995, the Board adopted Resolution No. 95-168 which adopted an
investment policy as recommended by the Investment Subcommittee of the St. Lucie County Citizens
Budget Review Committee.
3. On December 6, 1995, the Investment Committee recommended that the Board adopt
certain amendments to the investment policy; and on January 2, 1996, the Board adopted Resolution No.
95-275 which amended the investment policy and incorporated the recommended changes of the
Investment Committee.
4. On December 3,1997, the Investment Committee recommended that the Board adopt
certain amendments to the investment policy and on December 16, 1997, the Board adopted Resolution
No. 97-190 which amended the investment policy and incorporated the recommended changes of the
Investment Committee.
5. On April 4, 2001, the Investment Committee recommended that the Board adopt certain
amendments to the investment policy, and on April 24,2001, the Board adopted Resolution 01-95 which
amended the investment policy and incorporated the recommended changes ofthe Investment Committee.
6. On September 21, 2005, the Investment Committee recommended that the Board adopt
certain changes to the investment policy, and on October 11, 2005, the Board adopted Resolution No. 05-
378.
7. On October 25, 2006, the Investment Committee recommended that the Board adopt
certain changes to the investment policy, and on November 28, 2006, the Board adopted Resolution No.
06-345.
8. On December 6, 2007, the Investment Committee recommended the Board adopt certain
changes to the investment policy, and on December 11, 2007, the Board adopted Resolution No. 07-396.
9. On January 23, 2008, the Investment Committee recommended the Board adopt certain
changes to the investment policy, and on February 12, 2008, the Board adopted Resolution No. 08-068.
10. On January 27, 2009, the Investment Committee recommended the Board adopt certain
changes to the investment policy, and on March 10, 2009, the Board adopted Resolution No. 09-082.
11. On May 5, 2010, the Investment recommended the Board adopt certain changes to the
investment policy, and on June 8, 2010, the Board adopted Resolution No. 10-167.
12. On February 9, 2012, the Investment Committee recommended the Board adopt certain
changes, and on February 21, 2012, the Board adopted Resolution No. 12-031.
13. On December 10, 2012, the InvestmentCommittee recommended the Board adopt certain
changes to the Investment Policy which are attached as Exhibit "A."
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of St. Lucie County,
Florida:
1. This Board does hereby adopt the amendments to the investment policy attached hereto
and made a part hereof as Exhibit "A," pursuant to Section 218.415, Florida Statutes.
2. Except as amended herein, the remaining terms and conditions of the Investment Policy,
as amended, shall remain in full force and effect.
3. This resolution shall take effect on adoption.
After motion and second, the vote on this resolution was as follows:
Chairman Tod Mowery AYE
Vice Chair Frannie Hutchinson AYE
Commissioner Chris Dzadovsky AYE
Commissioner Paula A. Lewis . AYE
Commissioner Kim Johnson AYE
PASSED AND DULY ADOPTED this 8th day of January 2013.
ATTEST:
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BOARD OF COUNTY COMMISSIONERS
ST. LUCIE COUNTY, FLORIDA
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BY: 10
CHAIRMAN
APPROVED AS TO LEGAL FORM AND
CORRE SS:
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~OUNTY A OR EY
5T. LUCIE COVNTY BOARD OF COUNTY COMMISSIONERS
INVESTMENT POLICY
TABLE OF CONTENTS
I. SCOPE ............................................................................................................................................2
II. INVESTMENT OBJECTIVES ................................................................................................2
III. DELEGATION OF AUTHORITY .......................................................................................2,3
IV. INVESTMENT PERFORMANCE AND REPORTING .......................................................3
V. PRUDENCE AND ETHICAL STANDARDS ....................................................................3,4
VI. AUTHORIZED INVESTMENTS .......................................................................................4,5
VII. MATURI7Y AND LIQUIDITY REQUIREMENTS ...........................................................6
VIII. PORTFOLIO COMPOSITION ...............................................................................6,7,8,9,10
IX. RISK AND DIVERSIFICATION ..........................................................................................10
X AUTHORIZED INVESTMENT INSTITUTIONS AND DEALERS .......................10,11
XI. THIRD PARTY CUSTODIAL AGREEMENTS .....................................................................11
XII. MASTER REPURCHASE AGR~EMENT .................................................................................11
XIII BID REQUIREMENT ......................................................................................................11,12,13
XIV. INTERNAL CONTROLS .....................................................................................................13,14
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I. SCOPE
This investment policy applies to all surplus funds held by or for the benefit of the
St. Lucie County Board of County Commissioners, hereinafter referred to as the County.
These policies were ndopted using Sections 125.31 and 218.415, Florida Statutes.
Bond proceeds may be further limited or expanded by their respective bond resolutions or
covenants and shall not be considered to be in conflict with the Investment Policy.
II. INVESTMENT OBJECTIVES
The County shall strive to achieve with each investment opportunity, the following
ob jectives, in ORDER OF PRIORITY:
1. SAFETY - The primary ob jective of the County's investment activities is the
protection of investment capital.
Z. LIQVIDITY - The County's investment strntegy will provide sufficient
liquidity such that cnsh flow requirements are met through the utilization of
marketable securities with structured maturities.
3. INVESTMENT INCOME - In investing public funds, the County will strive to
mnximize the return on the portfolio but will minimize investment risk.
III. DELE6ATION OF AUTHORITY
The responsibility for providing oversight and direction in regard to the
management of the investment program resides with the Clerk of the Circuit Court. The
Board of County Commissioners will appoint 4n Investment Committee that wil) serve in an
odvisory cnpacity and report to the Boord of County Commissioners. Each Commissioner
will select one of the five Investment Committee members who will possess relevant
financial experience. The Investment Committee shall meet quarterly to review the
Clerk's investment strategy and results. The Investment Gommittee will rely on the Clerk
of the Circuit Court, Finance Director and their staff for support. The management
responsibility for all Board's funds in the investment program and investment transactions
is delegated to the Clerk of Circuit Court or designee. The Clerk of the Circuit Court or
designee shall establish written procedures for the operntion of the investment portfolio
nnd a system of internal accounting and administrQtive controls to regulate the investment
activities. The Clerk may employ investment mnnager(s) to assist in manQging some of the
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Board's investment portfolio. Such investment manager must be registered under the
investment Advisors Act of 1940.
IV. INVESTMENT PERFORMANCE AN~ REPORTIN6
A portfolio report shull be prepared each quarter by the Finance Director or
designated staff inember, and be provided to the Clerk of the Circuit Court and
appropriate management staff. The report will Qlso be made availnble to the Board of
County Commissioners and Investment Committee. The report shnll include a breakdown of
the portfolio ns well as its overall performance and the current market pricing at manth-
end.
A detailed analysis of the investment portfolio wil) be prepared by the Finance
Director and presented to the Board of County Commissioners and Investment Committee
on a quarterly basis. The report shnll include information relating to transactions, market
values, performunce and adherence to policy. The Clerk of the Circuit Gourt is authorized
to utilize an investment accounting service to obtnin necessary information. The Board of
County Commissioners will conduct an annunl review of the investment portfolio and the
investment policy.
The Board of County Commissioners will appoint nn Investment Committee that wi(I
serve in an advisory capacity nnd report to the Board of County Commissioners. Each
Commissioner will select one of the five Investment Committee members who will possess
relevunt financial experience. The Investment Committee and the Board of County
Commissioners shall receive n copy of the portfolio pricing analysis.
The Clerk of the Circuit Court shall be notified immediately upon exceptions from
currently approved investment policies by the Finance Director.
In the event of an emergency situation requiring noncompliance with policy
guidelines, the Finance Director sh411 attempt to schedule a special committee meeting to
discuss the proposed action. If a special committee meeting is not possible due to time
constraints or scheduling problems, the Finnnce Director shall individually notify a minimum
of three committee members to obtain approval of the proposed nction.
V. PRUDENCE AND ETHICAL STANDAR~S
The "prudent person" standnrd shall be used in the management of the overall
investment portfolio.
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The Finnnce ~irector, and other persons performing the investment function, shall
act ns a"prudent person" in accordance with these written policies and procedures,
exercising due diligence and investing in investments authorized by law.
The "prudent person" standard is herewith understood to mean the following:
Investments shall be mude with judgment and care, under circumstances then prevailing,
which persons of prudence, discretion, and intelligence exercise in the management of
their own affairs, not for speculntion, but for investment, considering the probable s4fety
of their capital as well as the probable income to be der+ved.
VI. AUTHORIZE~ INVESTMENTS
The Clerk of the Circuit Court acting through the Finance Director, or other
designee of the Clerk's office, shQll purchase or sell investment securities at prevniling
market rates, with o preference to pnr bonds or those at a discount. Authorized
instruments are as follows:
A. The LocQl Government Surplus Funds Trust Fund, the State Investment Pool
administered by the State Board of Administration, also known as ~B~ Florida Prime.
B. The Florida Local 6overnment Investment Trust, nlso known as F.L.G.I.T,
administered by the Florida Association of Court Clerks and Comptrollers and the Florida
Association of Counties.
C. Negotiable direct obligations of, or obligations the principal and interest of
which nre unconditionally guQranteed by, the United States Government. Such securities
w+ll include, but not be limited to, the following:
1. Treasury Bills
2. Treasury Notes
3. Treasury Bonds
D. Bonds, debentures, notes or other evidence of indebtedness issued or
guaranteed by United States agencies provided such obligations are backed by the full
faith and credit of the United States Government. Such securities will include, but not be
limited to, the following:
1. Farmers Home Administration
2. Government National Mortgage Association (GNMA)
3. Government guarnnteed bank debt issued pursuunt to the Troubled
Asset Relief Program (TARP)
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E. Bonds, debentures, notes of or other evidence of indebtedness issued or
guaranteed by United States Government ngencies (Federal Instrumentnlities) which are
not full faith and credit agencies limited to the following:
1. Federal Farm Credit Bunk (FFCB)
2. Federal Home Loan Bank or its district banks (FHLB)
3. Federal National Mortgage Associntion (FNMA)
4. Federal Home Loan Mortguge Corporation (Freddie-Macs)
F. Non-negotiable interest-beoring time certificates of deposit, money market
accounts or savings accounts in f inancial institutions organized under the laws of the
United States, doing business and situnted in this state, provided thnt nny such deposits
are secured by the Floridn Security for Public Deposits Act, Chapter 280, Florida
Statutes.
G. Repurchase ngreernents collateralized by Trensury Bills or Notes having a
maturity of two (2) years or less,
H. Securities and Exchange Comm+ssion registered money market funds with
the highest credit quality rating from a nationally recognized rating agency.
I. Corporate Obligations issued by financial institutions in the F~IC's
Temporury Liquidity Guarantee Progrnm (TLCP), which are fully insured by the FDIC and
guaranteed by the full faith and credit of the United States Government.
J. Corporate Obligations or Corporate Notes of U.S. Corporations with at least
two of the followinq three minimum ratings: A- by Standard d Poor's, A3 by Moody's, or A-
by Fitch.
K. Commercial paper denominated in United States dollars ati .,Y
'Y~'.Yft6'aM1Y~~1~Q1 is rnted, at the time of purchase, -Prime-1 by Moody's and -A-1 by
Standard ~ Poor's (prime commerciul paper). If the commercial paper is backed by a letter
of credit (-LOC), the long-term debt of the LOC provider must be rated A or better by nt
least two nationally recognized rating ngencies.
Investment in derivative producis is not authorized. For the purposes of
this policy derivative products are defined ns financial arrangements whose value are
derived from changes in an underlying variable such as n stock, bond, stock index, interest
rate index, currency, commodity, etc. Derivative investments include, but nre not limited
to: futures contracts, options contracts, forward contrncts, interest rate swaps, interest
rate floor or ceiling contracts, and linked index investments.
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VII. MATURITY AND LIQUIDITY REQUIREMENTS
To the extent possible, an attempt will be made to match investment maturities
with known cash needs and anticipated cash flow requirements. Investments, including
investment pools, of current operating funds shnll have m4turities of up to five and one-
half (5.5) years except the Corporate Obligations. The maximum length to muturity for
Corpornte Obligations under the Temporary Liquidity Guarantee Program (TLGP) shc-II be
three (3) yeurs and non-TLGP Corporate Obligations or Corporute Notes shall be five (5)
years from the date of purchase. The Finance Director and other persons performing the
investment function will provide nn appropriate mix of maturities to maximize the return
on the portfolio while minimizing investment risk. Investment of bond reserves,
construction funds, and other non-operating funds shnll have a term appropriate to the
need for funds, and in nccordance with debt covenants, but shall not exceed five nnd one-
half (5.5) yenrs, unless permitted by the terms of the bond documents.
A liquidity amount of approximately three (3) months of anticipated
disbursements, excluding bond construction payments or other bond payments made from
escrow or trust accounts, will be kept in relatively short-term investments. These would
include the State Investment Pool (SBA), F.L.G.I.T., money market accounts nnd
Repurchnse Agreements.
VIII. PORTFOLIO COMPOSi i iON
The following are the guidelines for investments nnd limits on security issues, issuers, and
mnturities as established by the County. The Finance Director, or their appropriate
designee, nfter consulting with the Clerk of Circuit Court, shall have the option to further
restrict or increase investment percentages from time to time bnsed on market conditions.
Purchnses of investments based on bond covenant requirements shall not be included in
the portfolio composition calculation. The allowable maximum dercentaae reauirements
should be based on the drior month bort#olio endina balnnce. If the mnximum dercentaae
is exceeded for anv reason. corrective action should be taken within 30 davs of unv notice
of violation to conform the oortfolio to the nllownble dercentuaes.
The following mnximum limits are guidelines established for diversification by
instrument:
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Florida Local Government Surplus Trust Fund 40% N/A N/A
Florida Local Government Investment Trust Fund 35% N/A N/A
Certificates of Deposit 40% 10% 2 yenrs
Treasuries 75% N/A 5.5 years
United States Government Agencies 50% 25% 5.5 years
Federal Instrumentalities (United States
Government Sponsored Agencies) 50% 25% 5.5 years
Repurchase Agreement 10% 10% 1 year
Money Market Funds 80% 25% N/A
Corporate Obligations (Temporary Liquidity
Guarantee Program) 50% 25% 3 years
Corporate Obligations or Corporate Notes 25% 5% 5 years
Commercial Paper 25% 5% ~88 270 days
A. The Locnl 6overnment Surplus Trust Fund (SBA).
1. A maximum of 40% of the portfolio may be invested in the SBA,
however, bond proceeds mny be temporarily deposited in the SBA until alternative
investments have been purchased and nre not a part of this cnlculation.
6. The Local Government Investment Trust fund (F.L.G.I.T.)
1. A maximum of 35% of the portfolio may be invested in f F.L.G.I.T~.
C. Non-negotiable Interest-Bearing Time Certificates of Deposit
1. A maximum of 40% of the portfolio mQy be invested in non-negotinble
interest bearing time certif icates of deposit or savings accounts.
2. The maximum maturity on any certific4tes shall be no greater than
two (2) years from the time of purchase.
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3. A mnximum of 10% of the portfolio mny be deposited in the
instruments of any one issuer.
D. United States Government Securities
1. A mnximum of 75% of the portfolio may be invested in United Stntes
Government Securities which are defined as negotiable direct obligations, or obligations
the principnl and interest of which are unconditionally guaranteed, by the United Stntes
Government.
2. The mnximum length of maturity of any direct investment in
government securities is f ive and one-half (5.5) years.
E. United States Federal Agencies
1. A maximum of 50% of the portfolio may be invested in United Stntes
Federal Agency securities which are backed by the full faith and credit of the United
States Government.
2. The maximum length of maturity of any direct investment in Federal
Agencies Securities five nnd one-half (5.5) years.
3. A maximum of 25% of the portfolio may be invested in the
instruments of any one issuer.
F. FederalInstrumentalities
1. A mnximum of 50% of the portfolio mny be invested in Federnl
Instrumentalities which are not full-faith and credit United States Government Agencies.
2. The maximum length of maturity of any direct investment in Federnl
Instrumentalities is five and one-half (5.5) years.
3. A maximum of 25% of the portfolio may be invested in the
instruments of any one issuer.
G. Repurchase Agreements
1. A maximum of 10% of the portfolio may be invested in repurchase
ngreements with the exception of one (1) business day agreements nnd overnight sweep
agreements which may go as high as 25%.
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2. The maximum term of a repurchase agreement will be one (1) year.
3. A maximum of 10% of the portfolio may be invested in the
instruments of nny one issuer with the exception of one (1) business day ngreements and
overnight sweep agreements which may go as high as 25%.
H. Money Market Funds
1. A maximum of 80% of the portfolio may be invested in institutionnl
money market funds.
Z. Money market funds must have an "AAA" rating from Moody's,
Standnrd and Poor's or Fitch.
3. A maximum of 25% of the portfolio may be invested in any one money
market fund.
I. Corporate Obligations - Temporary Liquidity Guarantee Program
1. A maximum of 50% of nvnilable fund may be directly invested in
corpornte obligations issued by finuncial institutions thQt pnrticipate in the FDICs
Temporary Liquidity Guarantee Program (TLGP).
2.
issuer.
3.
is three (3) years.
A maximum of 25% of avnilable funds mny be invested with any one
The maximum length of maturity of any Corporate Obligations - TLGP
J. Corporate Obligations or Corpornte Notes
1. A maximum of 25% of available funds may be invested in corporate
obligations or corporate notes.
2. A mnximum of 5% of av4ilnble funds may be invested in with any one
issuer.
3. The mnximum length of maturity of any Corporate Obligntions or
Corporate Notes is five (5) yenrs.
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K. Commercial Paper
1. A maximum of 25% of available funds may be directly invested in
prime commercial paper.
2. A maximum of 5% of available funds may be invested with any one
issuer.
3. The maximum length to maturity for prime commercial pnper shall be
~88 270 days from the date of purchase.
IX. RISK AND ~IVERSIFICATION
Assets held shall be diversified to control the risk of loss resulting from the over
concentration of nssets in a specific maturity, issuer, instrument, dealer, or bank through
which these instruments are bought and sold. Diversification strategies within the
established guidelines shall be reviewed and revised periodically as necessary by the
approprinte mnnagement staff.
X. AUTHORIZED INVESTMENT IN, i i i~1TION5 AN~ ~EALERS
The County shnll only purchase securities from finnncial institutions which have
offices located within the Stute of Florida and are qualified as public depositories by the
Treusurer of the State of Florida, from primary securities brokers/dealers designated by
the Federal Reserve Bank of New York or from secondary brokers/dealers, with an office
located in the State of Florida. Such specified brokers/dealers must be reviewed and
npproved by the Investment Committee and npproved by the Board of County
Commissioners.
Documented lists of the authorized finnnciul institutions and brokers/dealers will
be developed and maintained by the Finance ~irector and approved by the Clerk of the
Circuit Court.
The restriction on the secondary brokers/denlers with an office located in the
State of Florida does not apply to the external investment managers. The purpose is to
provide greater flexibility in seekinq better pricing und optimize interest income to the
County within the guidelines set forth in this policy.
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If at any time the Clerk of the Circuit Court is appropriately notified of any thrent
to the integrity of the investment portfolio, proper security mensures may be suggested
and implemented, and the Clerk of the Circuit Court shall have the option to further
restrict investment in selected instruments, to conform to the then-present mnrket
conditions.
Repurchuse Agreements will be conducted through, and negotiated with primary
securities brokers/dealers, or secondnry brokers/dealers, or Qualified Public Depository
financial institutions. A written Master Repurchase Agreement will be negotiated with any
institutions with which the County through the Clerk of the Circuit Court enters into a
specific repurchase agreement.
XI. THIR~ PARTY CUSTODIAL A6REEMENTS
The Clerk of the Circuit Court will execute a Third Party Custodial safekeeping
Agreement with a commerciQl bank's trust department which is sepurately chartered by
the United States Government or the Stnte of Florida. All securities purchased and/or
collaternl obtained by the Clerk of the Circuit Court shall be properly designnted as an
asset of the County and held in safekeeping by the trust depnrtment and no withdrawal of
such securities, in whole or in part, shall be made from safekeeping except by an
authorized staff inember. The Third Party Custodial Snfekeeping Agreement shall include
letters of authority from the Clerk of the Circuit Court, detnils as to responsibilities of
each party, notification of security purchases, sales, delivery, repurchase agreements, wire
transfers, safekeeping and transaction costs, procedures in case of wire failure or other
unforeseen mishaps including linbility of, eQCh party.
XII. MASTER REPURCHASE A6REEMENT
The Clerk of the Circuit Court will require all approved institutions and dealers
transacting repurchase agreements to execute and perform as stated in the Muster
Repurchase Agreement. All repurchase agreement trnnsactions will adhere to
requirements of the Master Repurchase Agreement. The agreement shall specify that the
underlying securities have a mnrket value of at le4st 103% of the principal bnlance of the
investment. The mnrket value is to be determined on a monthly bnsis.
h~~~. BID REQUIREMENT
Although in most situations the competitive bid process shall be utilized, there is no
obligation to secure competitive bids from all f inancinl institutions and denler/brokers on
the npproved list.
il
Rather a decision wil) be made by the Clerk of the Circuit Court through the
Finance Director as to the institutions that have been the most competitive over the
preceding weeks and these will be contacted for a bid.
After the Clerk of the Circuit Court, through the Finance Director, has determined
the approximate maturity date based on the cash flow needs nnd market conditions and has
analyzed and selected one or more optimnl types of investments, n minimum of three (3)
qualified banks and/or dealers will be contacted and asked to provide bids on the securities
in question.
1. Bids will be held in confidence until the highest bid is determined and
awnrded.
2. Documentation will be retained for all bids, with the winning bid
clearly identified.
3. If for any reason the highest interest rate bid was not selected, then
the reasons leading to that decision will be clearly indicated on the bid form.
4. If the maturing investment in funds to be invested are from a
certificate of deposit, the present holder of the funds issuer of the CD will be one of the
contacts made, subject to the portfolio diversification requirements in this policy.
5. In certain circumstances where a dealer or bank informs the County
of a potential sale that must be completed within minutes of notification, the competitive
bidding policy will be waived. The Clerk of the Circuit Court will huve final approval on
these pnrticular tr4nsactions before they have been completed.
6. Notwithstanding the above, in order to afford financial institutions
within St. Lucie County opportunities to enhance the economy of the local nrea,
certificates of deposit may be purchased from an institution as described in Section VI.F
provided that the following additionnl conditions have been satisfied:
a. The institution, or a branch office, is located within the
boundaries of St. Lucie County.
b. The institution has the highest and best bid of all bidding
institutions as described in Section VI.F.
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c. The institution awnrded the bid is sub ject to the portfolio
limitation requirements and may not exceed said limitations.
d. Financial institutions included on the approved list must be
Qualified Public Depositories, as determined by the State of Florida.
XIV. INTERNAL CONTROLS
The Clerk of the Circuit Court shall exercise and monitor a set of interna! controls
to be conducted through the Finance Director. Controls are designed to protect the
County's funds nnd ensure proper 4ccounting and reporting of the securities transqctions.
The investment policy shall provide for review of such controls by independent uuditors as
part of any financial audit periodically required of the unit of local government. Such
internal controls shall consist of the following:
A. All securities purchased or sold wil) be transferred only under the "delivery
versus payment" (D.V.P.) method to ensure that funds or securities are not released until
all criteria relating to the specific transuction are met.
B. The Clerk of the Circuit Court is authorized to accept, on behalf of and in
the name of St. Lucie County, bank trust receipts or confirmntions as evidence of nctunl
delivery of the obligation or securities in return for investment of funds.
C. Trust receipts or confirmations shall fully describe the various obligations or
securities held. The receipt or confirmation shall state that the investment is held in the
name of St. Lucie County.
~. Written documentation and/or confirmation of telephone transactions and
wire trnnsfers will be maintained.
E. There will be adequute separation of duties with clear delegntion of
Quthority among investment personnel.
F. Custodial sofekeeping shall be properly utilized.
G. Operation review nnd performance evaluations and reporting, interim and
annual, shall be done by the Finance Director.
H. There will be 4n nvoidance of no bearer-form securities.
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I. There will be no physical delivery of securities.
J. There will be specific limitations regarding securities losses and remedial
action shall be taken as soon as possible.
K. A development of a wire transfer agreement with the custodial bank
outlining the various controls and security provisions for making and receiving wire
transfers shall be made.
L. There is a prohibition of collusion between those mnking investment
decisions and those providing investment services.
M. Written dealer confirmntion and monthly and/or qunrterly custodinl account
statements shall be maintained.
N. Investment policy shall be established by the Bonrd of County Commissioners
considering the recommendations of the Investment Committee. All daily investment
activity will be coordinated and reviewed by the Finance Director. In the nbsence of the
Finnnce Director and Clerk of the Circuit Court investment activity must be approved by
their designee and later approved by the Finance Director or Clerk of the Court.
O. The following positions are designated by the Clerk of the Circuit Court as
having the Quthority to initiate all investment activities:
1. Clerk of the Circuit Court
2. Finnnce Director
3. All other designees will be at the discretion of the Clerk of the
Circuit Court.
P. All officials responsible for making investment decisions, or the Finnnce
Director, shall complete 8 hours of continuing educntion annually in sub jects or courses of
study relnted to investment practices and products.
Q. Such ndditional internal controls as established by the Clerk of the Circuit
Court.
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