CGFO - TREASURY

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Gogators
ID:
289547
Filename:
CGFO - TREASURY
Updated:
2014-11-19 12:32:14
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CGFO TREASURY
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BARRY SKINNER TREASURY REVIEW
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  1. Authorized investments - WRITTEN POLICY
    • Israel bonds
    • reg inv co or trust
    • OTHER - BY LAW OR RESO
    • AAA RATED MM FUNDS
    • CD OR SAVINGS ACCTS - QPDS
    • DIRECT OBLIG OF US TREAS
    • AUTH INV POOLS - SBA
  2. AUTH INV - NO POLICY
    • SBA
    • MM IN AAA RATED
    • CDS OR SAVINGS - QPDS
    • DIR OBLIG OF US TREAS
  3. SALE OF SECURITIES
    SWAP TO GET BETTER RATE OK
  4. PREEXISTING CONTRACT
    IF HAD INV BEFORE 218.415, THEN THOSE RULES APPLY
  5. PREEMPTION
    STATUTES TAKE PRIORITY
  6. AUDITS
    MUST BE ANNUAL
  7. AUTHORIZED DEPOSITS
    • CDARS - BANK SELLS LARGE INVESTMENT INTO SMALLER DEPOSIT TO INVEST
    • CERT OF DEP ACCT REG SVC
  8. PROGRAM COMPONENTS
    • SET INV OBJ
    • ID & MANAGE INV ASS
    • STAFFING
    • INV POLICY
    • DEV CASH FLOWS
    • PERF BROKER-DEALER DUE DILIG
    • IMPL INT CONT
    • SEL/PURCH INV
    • REC/ACCTGS FOR INV/MONITOR PROTFOLIO/REPORTING
  9. INV POLICY SHOULD BE
    CLEAR & CONCISE
  10. GFOA POLICY
    • GOV AUTH - LEGALITY - INV HAS T/B LEGAL
    • SCOPE -
    •   APPLIC - WHAT FUNDS TO INV
    •   EXCLUSIONS - PENSIONS, BOND FUNDS, FOUNDATIONS, ENDOWMENTS - COVERED BY OTHER POLICIES
    •   POOLING OF FUNDS - EFFICIENCY,   SAFEKEEPING, ADMIN, ALLOCATE BACK PROPORT
    •   ARBITRAGE - INVEST BORROWED $ @ HIGHER RATE
  11. WHO TO PAY ARBITRAGE
    US TREASURY
  12. GEN OBJ OF INV POLICY
    SAFETY - CR (DEFAULT) RISK DUE TO LOSS OF BORROWER OR BACKER/INT RATE RISK
  13. DIVERSIFICATION
    MITIGATES CR RISK
  14. INT RATE RISK
    • MATCH SECURITIES TO CASH NEEDS TO HOLD TO MATURITY TO GET FULL VALUE.
    • MITIGATE INT RATE RISK - S/T INV
  15. STATIC LIQUIDITY
    HOLD TO MATURITY
  16. DYNAMIC LIQUIDITY
    SECURITIES BOUGHT CAN BE SOLD EASILY - HAVE ACTIVE SECONDARY MKT
  17. YIELD
    SECONDARY TO SAFETY & LIQUIDITY
  18. hold to maturity EXCEPT:
    INT RATE DECLINING & want to protect prin.  SELL OR SWAP
  19. STANDARDS OF CARE
    • PRUDENT PERSON RULE
    • ETHICS/CONFLICT OF INT
    • DELEG OF AUTHORITY
  20. CONFLICT OF INTEREST
    ACTIVITIES THAT COULD CONFLICT W/ PROPER EXEC/MGMT OF INV PROG OR IMPAIR DECISIONS.  DISCLOSE MATERIAL INV. - WHO/WHAT
  21. DELEG OF AUTH
    GOV BODY HAS TO DELGATE AUTH TO PERSON RESP FOR INV
  22. WHO HAS ULT RESP FOR INV?
    GOVERNING BODY
  23. INV ADVISORY ACT OF 1940
    CAN HIRE INV MGR OR ADVISOR BUT THEY MUST BE REGISTERED
  24. INV MGR/ADV LEVEL OF AUTH
    DISCRETIONARY OR NONDISCRETIONARY
  25. AUTHORIZED BROKER/DEALER
    NASD/FINRA CERT - STATE REG/F/S, CERTIFY THEY AGREE TO FOLLOW INV POLICY/INS
  26. BROKER
    DOSN'T HAVE TITLE TO SECURITIES THEY ARE SELLING.  SELL FOR COMM
  27. DEALER
    BID TO BUY SECURITIES FRO SELLER/OFFER SEC FOR SALE TO BUYERS
  28. DIR ISSUER
    ISSUER OF SECURITIES.  COMMON ARRANGEMENT OF MKT.
  29. QPD
    STATE OF FL ONLY - NOT GFOA
  30. MINORITY/COMM FIN INST
    LEG BODY CAN REQUIRE INV IN IF IN POLICY
  31. DELIVERY VS PAYMENT
    HELD BY DTC UNTIL SALE COMPLET
  32. INT CONTROLS PER GFOA
    • SEP OF TXN AUTH FORM ACCTG
    • DVP - CUSTODIAL SAFEKEEPING
    • AVOIDANCE OF PHYS DELIV
    • CONF OF TXN/WIRES
    • DUAL AUTH OF WIRES
    • STAFF TRG & MONITORING OF PROC
    • DOCUMENTATION
    • CLEAR DELEG OF AUTH
  33. REPURCH AGREEMENT
    HAVE TO HAVE A MASTER REPURCH AGREEMENT TO DO ACC TO STATE - NOT PER GFOA
  34. COLLATERALIZATION
    DON'T NEED IN FL BECAUSE WE HAVE QPDS
  35. GFOA INV PARAMETERS
    • DIVERSIFICATION/ASSET ALLOC
    •   COVARIANCE - MEASURE IF SECURITIES MOVE TOGETHER - POS - MOVE TOGETHER, NEG MOVE OPPOSITE
    • MAX MATURITIES
    • COMPETITIVE BIDS - GFOA DEFINES AS 3
  36. # OF BIDS PER F.S.
    NOT DEFINED - STATUTUE JUST SAYS MUST GET BIDS - NO MIN #
  37. CONVEXITY
    MEASURE OF INT RATE/MKT RISK
  38. PASSIVE MGMT STRATEGY
    MINIMIZES THE TRAINING & LABOR EFFORT TO ATTAIN MKT AVG PORTFOLIO PERF
  39. MANAGED ASSETS
    MONEY MKT, MUTUAL FUNDS
  40. LADDERED MATURITIES
    DATES STAGGERED FOR EXTENDED PERIODS, RENEW L/T WHEN COME DUE
  41. BARBELL MATURITIES
    SOME LONG/SOME SHORT  NO INBETWEEN
  42. HORIZON INVESTING
    INVEST AS FAR OUT AS YOU CAN
  43. ROLLING T BILLS
    BUY T BILLS EVERY TIME IT IS ISSUED - SELL ONE THAT YOU HAVE & REINV IN NEW ISSUE
  44. ACTIVE MGMT STRATEGY
    INC PROTFOLIO PERF BY EXCEEDING MKT AVG ROR
  45. ACTIVE INV STRATEGY
    • MERKET TIMING
    • MONEY MKT ARBITRAGE
    • SOWNGRADE INV QUALITY
    • SWAPS
    • YIELD CURVE ANALYSIS
  46. REPORTING
    • METHODS
    • PERF STDS
    • MARKING TO MKT - HOW OFTEN DONE
  47. PORTFOLIO RETURNS REPORTING
    • EFF ROR
    • RISK ADJ RET
    • TOTAL RET
  48. yield to call
    yield if held to call date
  49. BENCHMARK
    A PASSIVE PORTFOLIO THAT REPRESENTS THE EXPECTED RETURN & EXPECTED RISKS THAT CORRESP TO THE INV OBJ
  50. DB PLANS/457 PLANS
    NOT UNDER GASB 31 - EST FAIR STDS FOR INV IN INT EARNING INV CONTRACTS, INV POOLS, DEBT SEC, EQUITY SEC, OPEN ENDED MUTUAL FUNDS
  51. GASB 40
    KNOW
  52. OTHER POLICY CONSIDERATIONS
    EXEMPTIONS - WHAT IS NOT IN NEW POLICY
  53. FED RESERVE ACT OF 1913
    EST FED RESERVE BANKS TO FURNISH ELASTIC CURRENCY, AFFORD MEANS OF REDISC COMM PAPER, EST MORE EFF SUPERVISION OF BANKING IN US & OTHER PURPOSES
  54. BOARD OF GOVERNORS
    • 7 MEMBERS
    • NOMINATED BY PRES
    • CONFIRMED BY SENATE
    • 14 YEAR TERMS
  55. FOMC COMPOSITION
    • 12 MEMBERS
    • 7 ARE BOARD OF GOV
    • PRES OF NY FED RESERVE
    • 4 ROATTING MEMBERS FROM 11 FED RESERVE BANKS EACH SERVING 1 YEAR TERM
  56. FOMC FUNCTION
    • DETERMINES BANK RESERVE REQ - $ BANKS HAVE TO HAVE ON DEPOSIT IN RESERVE BANK
    • SETS DISCOUNT RATES - RATE ON LOANS BY FED RESERVE BANKS TO MEMBER BANKS
    • OPEN MKT OPS - BUY & SELL US TREASURIES
  57. T BILLS
    • ISSUED AT A DISCOUNT
    • MATURE 1 YR OR LESS
    • INT PAID AT MATURITY
    • CREDIT/DEFAULT RISK FESS
    • HIGHLY LIQUID
    • ISSUED/MATURE THURS
    • LOWEST ROR
    • BACKED BY FULL FAITH & CR OF US GOVT
  58. DISCOUNT $
    TERM X DISCOUNT %/360

    NOTE: USES 360 DAYS (FOR TBILL)
  59. DOLLAR PRICE
    $100- DISCOUNT $
  60. BOND EQ YIELD - COMPARES T BILL TO BOND
    DISCOUNT $/DOLLAR PRICE X 365/TERM
  61. T NOTES & BONDS
    • COUPON BEARING
    • MATURE 2-30 YRS
    • INT PAID SEMIANNUAL
    • CREDIT RISK FREE
    • CARRY NORMALLY HIGHER ROR THAN BILLS
    • BACKED BY FULL FAITH & CR OF US GOVT
  62. FED AGENCY SECURITIES
    DEBT ISSUED BY IS GOVT AGENCIES DEPTS, GOVT SPONSORED
  63. FED AGENCIES
    • BACKED BY FULL FAITH & CR OF IS GOVT
    • HIGHER INT RATES THAT OTHER TREAS
    • GENERALL L/T
    • SUBJ TO LIQ & MKT RISKS
    • SBA, GNMA, EXPORT/IMPORT BANK
  64. INSTRUMENTALITIES
    • GOVT SPONSORED/EST TO IMPLEMENT FED LENDING PROGRAMS/IMPLIED BACKING OF US GOVT/HIGHER INT RATES
    • FED HOME LOAN MTG
    • FED FARM CR BUREAU
    • FED HOME LOAN BANKS
    • FED MORTGAGE
  65. REVERSE REPO
    • LEVERAGES BORROWED CASH FOR HIGHER YIELDING SECURITIES DUE TO LONGER MATURITIES OR INCREASED RISK
    • OR ANY OTHER CASH/LIQUIDITY NEED
  66. BANKERS ACCEPTANCES
    • USE TO FINANCE INT'L TRADE
    • MATURE IN 270 DAYS OR LESS
  67. MONEY MARKET MUTUAL FUNDS GOVERNED BY:
    SEC RULE 2A-7
  68. FL PROHIBITS:
    NEGOTIABLE CDS
  69. MORTGAGE-BACKED SECURITIES
    CMO/COLLATERALIZED MORTGAGE OBLIGATIONS
  70. SECURITIZATION
    WHAT IS ACCOMPLISHED WHEN BUNDLE ASSETS TOGETHER SO THAT SOLD TOGETHER
  71. EXAMPLE OF 0 COUPON SECURITIES
    T-BILL
  72. ODD LOT
    SECURITIES SOLD AT $100,000 OR LESS
  73. DERIVATIVES
    FIN INSTRUMENT THE VALUE OF WHICH DEPENDS ON, OR IS DERIVED FROM, THE VALUE OF 1 OR MORE UNDERLYING ASSETS OR INDEX OR ASSET VALUES.  HAS NO VALUE ITSELF.
  74. STRIKE PRICE
    STATED PRICE THAT DERIVATIVE CAN BE BOUGHT OR SOLD AT
  75. SECURITIES LENDING
    BROKER-DEALER.  PROVIDE THAT GOVT PROVIDE ADDL CR ENHANCEMENT.  LEND TO SOMEONE ELSE BKZ DON'T NEED.  CREATES COUNTERPARTY RISK.
  76. DURATION
    MEASURE TIMING OF CASH FLOWS FROM A FI SECURITY & A USEFUL INDICATOR OF PRICE VOLATILITY
  77. DURATION OF PORTFOLIO X MARKET SHIFT
    HOW SENSITIVE TO INT RATE RISK
    SHOCK VALUE
  78. ADMIN FLOAT
    TIME IT TAKES TO PREPARE DEPOSIT
  79. COLLECTION FLOAT
    TIME IT TAKES TO GET $ DEPOSITED
  80. MAIL FLOAT
    TIME IT TAKES TO RECEIVE PAYMENT
  81. AVAILABILITY FLOAT
    TIME IT TAKES FOR FUNDS TO BECOME AVAILABLE.  WANT TO MIN AVAILABILITY FLOAT/MAX DISB FLOAT
  82. AVAILABLE BALANCE
    BALANCE THAT CAN BE WITHDRAWN OR INVESTED
  83. AVG DAILY BALANCE
    CAN BE USED FOR BANKING FEES/OVERNIGHT
  84. COMPENSATING BALANCE
    BALANCE TO LEAVE IN ACCT TO OFFSET BANK FEES
  85. SWEEP ACCOUNT
    TRANSFER EXCESS BALANCES TO 1 ACCT FOR INVESTING
  86. ZBA
    RECONCILES TO 0 BALANCE - CHECK CLEARING ACCT
  87. ACCOUNT ANALYSIS FEE

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