Page 126 - CityofBurlesonFY26Budget

Quality and Capability of Investment Management

The City shall provide periodic training in investments for the Investment Officer(s) and other
investment personnel through courses and seminars offered by approved professional
organizations, associations, and other independent sources in order to ensure the quality and
capability of investment management in compliance with the PFIA.

Training Requirements

In accordance with the PFIA, the Investment Officer(s) shall attend investment training no
less often than once every two-year period that begins on the first day of the City’s fiscal year
and consists of the two consecutive fiscal years after that date, and accumulate not less than
8 hours of instruction relating to investment responsibilities and requirements of the PFIA. A
newly appointed Investment Officer(s) must attend training accumulating at least 10 hours
of instruction within twelve months of the date the Officer took office or assumed the
Officer’s duties. Training must include education in investment controls, security risks,
strategy risks, market risks, diversification of investment portfolio, and compliance with the
PFIA.

Internal Controls

The Finance Director is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the City are protected from loss, theft or
misuse. The internal control structure shall be designed to provide reasonable assurance that
these objectives are met. The concept of reasonable assurance recognizes that (1) the cost
of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs
and benefits requires estimates and judgments by management.

The internal controls shall address the following points:

 Avoidance of collusion,
 Separation of transactions authority from accounting and record keeping,
 Third-party safekeeping and custody,
 Clear delegation of authority of subordinate staff members, and
 Written confirmation for transactions for investments and wire transfers.

Standard of Care

The standard of care to be applied by the Investment Officer(s) shall be the “prudent person”
rule. This rule states that “Investments shall be made with judgment and care, under
prevailing circumstances, that a person of prudence, discretion, and intelligence would
exercise in the management of the person’s own affairs, not for speculation, but for
investment, considering the probable safety of capital and the probable income to be
derived.” In determining whether an Investment Officer(s) has exercised prudence with
respect to an investment decision, the determination shall be made taking into consideration:

119