City of Plymouth Proposed 2022-2023 Budget - Flipbook - Page 267
4.4
4.5
4.6
OBJECTIVES: SAFETY, LIQUIDITY AND RETURN ON INVESTMENT
1.
Safety- Protection of investment principal is the foremost objective of the
investment program. Investments shall be undertaken in a manner that seeks to
insure the preservation of capital in the overall portfolio.
2.
Liquidity- The investment portfolio shall remain sufficiently liquid to meet all
operating requirements that may be reasonably anticipated.
3.
Return on Investment- The investment portfolio shall be designed with the
objective of obtaining a rate of return throughout the budgetary and economic
cycles, taking into account the investment risk constraints and cash flow
characteristics of the portfolio.
DELEGATION OF AUTHORITY
1.
The authority to manage the investment program is derived from Public Act 20
of the Public Acts of 1943, as amended by Act 285 of 1988, Act 196 of 1997 and
Act 213 of 2007. The Finance Director is hereby designated as the investment
officer of the City and is responsible for investment decisions and activities.
2.
Written procedures shall be developed for the operation of the investment program
consistent with the investment policy. Procedures will include references to:
safekeeping, delivery, payment, investment accounting, repurchase agreements,
wire transfer agreements, collateral/depository agreements and banking service
contracts.
3.
A system of written internal controls shall be designed to regulate the activities of
investment officials to prevent loss of public funds due to fraud, error,
misrepresentation, unanticipated market changes or imprudent actions.
4.
In case of the Finance Director's absence, the City Manager or his designee shall
be responsible for investment decisions and activities.
5.
No person may engage in an investment transaction except as provided under the
terms of this policy and the procedures established by the investment officer.
ETHICS AND CONFLICT OF INTEREST
1.
INVPOL22
2
Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with the proper execution of the
investment program, or which could impair their ability to make impartial
investment decisions
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