§ 32.09 COLLATERALIZATION.

   (A)   Funds on deposit (checking accounts, certificates of deposit, and the like) in excess of FDIC limits must be secured. So as to anticipate market changes and provide an adequate level of security for all funds, the collateralization level will be 110% of market value of principal. Acceptable collateral is limited to obligations of the United States government, its agencies, and instrumentalities.

   (B)   Collateral will always be held by an independent third party institution in the name of the village. A clearly marked evidence of ownership (safekeeping receipt) must be supplied and retained.

(Ord. passed - -1999)

§ 32.10 SAFEKEEPING AND CUSTODY.

   (A)   All security transactions, including collateral for repurchase agreements, entered into by the village shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent third party custodian designated by the Village Treasurer and evidenced by safekeeping receipts and a written custodial agreement.

   (B)   Investment officials shall be bonded to protect the village against loss due to possible embezzlement and malfeasance.

(Ord. passed - -1999)

§ 32.11 DIVERSIFICATION.

   The village shall diversify its investments to the best of its ability based on the type of funds invested and the cash flow needs of those funds. Diversification can be by type of investment, number of institutions invested in, and length of maturity.

(Ord. passed - -1999)

§ 32.12 MAXIMUM MATURITIES.

   (A)   To the extent possible, the village shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the village will not directly invest in securities maturing more than three years from the date of purchase.

   (B)   Reserve funds may be invested in securities not to exceed five years. The maturity of such investments are made to coincide as nearly as practicable with the expected use of the funds.

(Ord. passed - -1999)

§ 32.13 INTERNAL CONTROLS.

   (A)   The Village Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met.

   (B)   The internal controls shall address the following points:

      (1)   Control or collusion;

      (2)   Separation of transaction authority from accounting;

      (3)   Custodial safekeeping; and

      (4)   Written confirmation of telephone transactions for investments and wire transfers.

(Ord. passed - -1999)

§ 32.14 PERFORMANCE STANDARDS.

   (A)   This investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a comparable rate of return during a market/economic environment of stable interest rates. Portfolio performance should be compared to benchmarks with similar maturity, liquidity, and credit quality of the portfolio.

   (B)   MARKET YIELD (BENCHMARK).  Current 90-day treasury bill rate.

(Ord. passed - -1999)

§ 32.15 REPORTING.

   The Treasurer shall prepare quarterly written reports of investment activities for submission to the Board. The reports shall include information regarding securities in the portfolio by class, book value, income earned, and market value, as of the report date.

(Ord. passed - -1999)