Lindsay Municipal Code § 3.02 Financial Custody And Investment Policies And Procedures For City Controlled Moneys

For the purposes of this chapter the term "city" shall encompass the city of Lindsay, the Lindsay community redevelopment agency, and all other agencies, authorities, corporations, utilities, and enterprises, and all moneys received by and all investments made on behalf of all such city controlled or city-serviced organizational entities.

(Ord. 470 § 3 (part), 1996)

The city manager shall recommend and the city council by resolution shall adopt a policy governing the investment of all city council and city received and controlled moneys for any and all of the city's agencies, authorities, corporations, utilities and enterprises, from any sources.

1. The resolution shall clarify and expand the subjects covered by this chapter.
2. The investment of all such moneys shall be made in such a manner as to assure the preservation and safety of principal and the integrity of record keeping, as set in this chapter and as expanded upon in said resolution.
3. The specific types of investments which shall be allowable for the investment of city and city-controlled moneys shall be specified in said resolution, beyond those provisions of this chapter.
4. The specific methodology for the safekeeping of investment instruments and documents shall be provided for in said resolution beyond those provisions of this chapter.

(Ord. 470 § 3 (part), 1996)

The investment of city and city-received and controlled moneys at all times shall be in compliance with all provisions of state law governing the receipt, processing, deposit, accounting, security and reporting of public moneys. The city investment policy which shall be adopted by the city council by resolution may be more conservative or restrictive than state law, but in no manner shall said investment policy be less restrictive than state law.

(Ord. 470 § 3 (part), 1996)

The finance director shall have custody of all city moneys and investments and all city-received and city-controlled moneys and investments.

1. The finance director shall deposit all moneys and investments in such depository or depositories as may be designated by city council resolution or, if no such resolution exists, such depository or depositories as may be designated in writing to the finance director by the city manager.
2. The finance director shall establish, maintain, enforce and ensure the integrity of a revenue depository system which shall provide for the regular deposit of all city, city-received and city controlled moneys with the following provisions:
3. All moneys shall be deposited at least weekly by all agencies encompassed within this chapter.
4. The system shall have internal controls over revenue receipt, custody, recordkeeping, accounting and investments, which control system shall be documented in writing.
5. The system shall be designed to prevent losses of public moneys arising from fraud, embezzlement, employee error, revisions, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by city employees or officers. Such control system shall provide for the following:
6. Prevention of collusion;
7. Separation of duties between employees;
8. Separation of revenue receipt and transaction authority from the accounting and record keeping;
9. Custody of cash;
10. Custodial safekeeping for investment instruments;
11. Clear designation of authority and assurance of responsibility commensurate with authority delegated;
12. Specific limitations regarding securities losses and remedial actions to be taken in event of loss;
13. Written confirmations of telephone transactions;
14. Minimizing the number of city officers and employees authorized to make investments;
15. Documentation of investment transactions and any strategies;
16. Code of ethics and standards, and;
17. Assurance of nonfraudulent documentation of revenue received, payments made, investments made, investments in custody, and investments liquidated by any agent.
18. The revenue depository system shall provide for appropriate receipt, deposit, custodial and accounting records to assure a minimum of deposit and investment risk, and maximum safety of principal and interest earned.

(Ord. 470 § 3 (part), 1996)

The city depository and investment system established and maintained by the finance director shall assure a high level of collateralized or federally insured security, without exception, for such city and city-controlled moneys, investments and securities held by any depository, agent or agency.

1. Such collateralization shall be maintained as specified in Government Code Section 53652 and pursuant to Government Code Sections 53656 and 53658, or to a higher level of collateral if established by the city council, this code, council resolution or city policy.
2. Securities purchased from brokers/dealers shall be held in a third party custodian and or safekeeping account and such securities shall be held in a manner that establishes the city's right of ownership.
3. Collateral for time deposits in savings and loans may be held by the Federal Home Loan Bank or an approved depository agent.
4. Collateral for time deposits in banks shall be held in the city's name in the bank's trust department or in the Federal Reserve Bank.

(Ord. 470 § 3 (part), 1996)

A review of city investment policy, procedures and security shall be made as a part of the annual audit, and the contracted audit firm shall make appropriate observations and recommendations to the city council either in its annual audit report or by special audit letter.

(Ord. 470 § 3 (part), 1996)