Page 419 - FY 2026-2027 Adopted Budget Book

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

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