Page 281 - Colleyville FY21 Budget

Internal Controls

The Chief Financial Officer and Accounting Manager shall establish a system
of written internal controls which shall be reviewed annually by the
independent auditor. The controls shall be designed to prevent the loss of
public funds due to fraud, error, misrepresentation, unanticipated market
changes or imprudent actions.

Permissible Instruments

The following is a list of permissible instruments as authorized by the 70th
Texas Legislature in the Public Funds Investment Act (TEX. REV. CIV. STAT.
ANN. ACT 842A-2) and amended by the 71st Legislature:

1. Obligations of the United States or its agencies or instrumentalities;

2. Direct obligations of the State of Texas or its agencies;

3. Other obligations, the principal of and interest on which are
unconditionally guaranteed or insured by the State of Texas or the
United States or its agencies or instrumentalities;

4. Obligations of states, agencies, counties, cities, and other political
subdivisions of any state having been rated as to investment quality by
nationally recognized investment rating firm and having received a
rating of not less than "A" or its equivalent;

5. Certificates of deposit issued by state and national depository
institutions that have its main office or branch office in this state that
are:
a. Guaranteed or insured by the Federal Deposit Insurance
Corporation, FSLIC or its successors; or
b. Secured by obligations that are described by subdivisions (1)
through (4) of this subsection, which are intended to include all
direct federal agency or instrumentality issued mortgage
backed securities, and which have a market value of not less
than the principal amount of the certificates or in any other
manner and amount provided by law for deposits of the
investing entities;

6. Invest in a local government investment pool as authorized by the
Interlocal Cooperation Act (TEX. REV. CIV. STAT. ANN. ACT. 4413

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