Treasury Management

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Author:
playboy35
ID:
143137
Filename:
Treasury Management
Updated:
2012-03-22 11:42:09
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CGFO Budget Treasury Management
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Treasury Management
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  1. Florida Statute 218.407 on Local Government Investment Authority authorizes local governments to deposit funds into the:
    Local Government Surplus Funds Trust Fund
  2. F.S. 218.415 on Local Government Investment Policies says that investment activity by a local government must be consistent with:
    A written investment plan adopted by the governing body, or in the absence of the existence of a governing body, the respective principal officer of the unit of local government and maintained by the unit of local government or, in the alternative, such activity must be conducted in accordance with subsection (17).
  3. The written investment policy of a local government should place the highest priority on the safety of ____________ and liquidity of _______________.
    • Principle
    • Funds
  4. A written investment policy should have the following sections:
    • 1) SCOPE
    • 2) INVESTMENT OBJECTIVES
    • 3) PERFORMANCE MEASUREMENT
    • 4) PRUDENCE AND ETHICAL STANDARDS
    • 5) LISTING OF AUTHORIZED INVESTMENTS
    • 6) MATURITY AND LIQUIDITY REQUIREMENTS
    • 7) PORTFOLIO COMPOSITION
    • 8) RISK AND DIVERSIFICATION
    • 9) AUTHORIZED INVESTMENT INSTITUTIONS AND DEALERS
    • 10) THIRD-PARTY CUSTODIAL AGREEMENTS
    • 11) MASTER REPURCHASE AGREEMENT
    • 12) BID REQUIREMENT
    • 13) INTERNAL CONTROLS
    • 14) CONTINUING EDUCATION
    • 15) REPORTING
  5. Local governments that have a written investment policy may by resolution reinvest and invest any surplus funds:
    -The Local Government Surplus Funds Trust Fund

    -Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

    -Interest-bearing time deposits or savings accounts in qualified public depositories

    -Direct obligations of the United States Treasury.

    -Federal agencies and instrumentalities.

    -Rated or unrated bonds, notes, or instruments backed by the full faith and credit of the government of Israel.

    -Authorized Investment Pools – SBA

    -Registered investment company or trust

    -Other investments authorized by law or by ordinance for a county or a municipality.

    -Other investments authorized by law or by resolution for a school district or a special district.
  6. Local governments that don't adopt a written investment policy may only invest or reinvest in:
    • -Authorized Investment Pools – SBA
    • -SEC Registered Money Market Funds – AAA Rated
    • -CDs or Savings Accounts from QPDs
    • -Direct Obligations of the US Treasury
  7. Per F.S. 218.415, securities purchased by local governments must be properly earmarked and:
    -Must be placed a location that safeguards the government's interest if registered with the issuer or it's agent;

    -Must be held by a depository chartered by the Fed, state or local government if the security is kept in book entry form;

    -Must be placed for safekeeping in a vault if the security has been physically issued but not registered with the issuer or it's agent;

    -If trust receipts are issued each security must be enumerated along with the specific number of each security held.

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