Page 561 - Bedford-FY24-25 Budget

Accordingly, within the scope of the annual audit, the Director of Finance shall establish a process for
an independent review by an external auditor to assure compliance with policies and procedures. The
results of this compliance audit must be reported annually to the City Council. The internal controls
shall address the following points:

a. Avoidance of collusion
b. Separation of transaction authority from accounting and record keeping
c. Custodial safekeeping
d. Clear delegation of authority to subordinate staff members
e. Written confirmation of transactions for investments and wire transfers

3. Delivery Versus Payment. All trades, where applicable, will be executed by delivery versus
payment (DVP) to ensure that securities are deposited in an eligible financial institution prior to the
release of funds. Securities will be held by a third-party safekeeping agent as evidenced by
safekeeping receipts.

V. Suitable and Authorized Investments.

1. Investment Types. The following investments will be permitted by this Policy as defined by state
and local law where applicable. Bedford is not required to liquidate investments that were authorized
at the time of purchase.

a. U.S. government obligations, U.S. government agency obligations, and U.S. government
instrumentality obligations (including obligations of the FDIC and the Federal Home Loan
Banks), which have a liquid market with a readily determinable market value, and exclude
those prohibited by the PFIA.

b. Obligations of states, agencies, counties, cities, and other political subdivisions of any state
rated as to investment quality and have received a rating by a nationally recognized credit
rating agency of at least AA or its equivalent.

c. Certificates of deposit and other evidences of deposit at a financial institution that, a) has its
main office or a branch office in Texas and is guaranteed or insured by the Federal Deposit
Insurance Corporation or its successor, b) is secured by obligations in a manner and amount
provided by law for deposits of Bedford, or c) is placed in a manner that meets the
requirements of the PFIA.

d. Repurchase and reverse repurchase agreements whose underlying purchased securities
consist of instruments as defined in a. above and placed in compliance with the PFIA.

e. No load money market mutual funds regulated by the Securities and Exchange Commission
that meet the requirements of the PFIA and seeks to maintain a stable net share value of
$1.0000.

f. Local government investment pools, either state-administered or through joint powers
statutes and other intergovernmental agreement legislation authorized in compliance with
the PFIA.

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