To protect against potential fraud and embezzlement, investment assets shall be secured through third-party custody and safekeeping procedures. Bearer instruments shall beheld only through third-party institutions. The City Clerk/Treasurer and any other officers or employees of the city authorized to engage in investment transactions shall be bonded in an amount established by the governing body. Collateralized securities, such as repurchase agreements, shall be purchased using the delivery versus payment procedure. Money market mutual funds used for investments must provide for independent custodians of their portfolios and delivery versus payment on their portfolio securities. The safekeeping procedures utilized in the city’s investment program shall be reviewed annually by the independent auditor.
(Ord. 94-38, passed 11-8-94)