Treasury Management Best Practices

Transcription

1 10:20am 12:00pm May 8, 2018 Room 220/ th Annual Conference May 6-9, 2018 St. Louis, Missouri Moderator/Speakers: Kent R. Austin Capital Budget Manager, City of Dallas Doug Buehler City Treasurer, City of Kansas City James M. Nicholson Finance Director, City of Pataskala Courtney Sladek Director of Finance, City of El Campo Treasury Management Best Practices #GFOA2018

2 Introductions GFOA Best Practices, Advisories and Resources Cash Handling Banking and Merchant Services Investing Speakers Courtney Sladek Doug Buehler Jamie Nicholson 2

3 CASH HANDLING 3

4 Cash Handling - Receivables Develop Policies/Procedures to Address the Many Issues Related to Receiving Funds Identify Receivables Allowed for Various Types of Services Determine Types of Receivables Allowed Permissible with state and local laws Cash, check, credit/debit cards, ACH, wire transfer, other Address Receivables for Special Types of Funds Federal and State Grants Developers Educate Employees Establish Segregation of Duties and Supervision 4

5 Receivables Highlights of GFOA BPs Payment Consolidation Services Lockbox Services Remote Deposit Capture Accepting Payment Cards Other Making Deposits 5

6 Cash Handling - Payables Develop Policies/Procedures to Address the Many Issues Related to Making Payments Use Electronic Means as Much as Possible Ensure Procedures and Controls Are in Place for the Many Different Ways to Make Payments, especially Checks, Petty Cash, Credit Card, ACH, Wire Transfers and Purchasing Cards Focus on Tracking and Reconciliation Deter External Fraudulent Behavior by Having Vendor Criteria and Processes in Place Follow Record Retention Guidelines 6

7 Payables Highlights of GFOA BPs Electronic Payments Purchasing Card Program 7

8 BANKING AND MERCHANT SERVICES 8

9 Banking and Merchant Services Banking Services Procurement and RFP Merchant Services Banking Relationships Bank Account Fraud Prevention 9

10 Procurement of Financial Services Governments Should Review Contracts Every Five Years Governments Should Use a Competitive Process for Procurement of Financial Services Allows governments to obtain competitive market rates and negotiate preferable terms and conditions Identify a Regular Schedule for Soliciting Bids Identify Scope of Services Needed Develop Specific Evaluation Criteria Product and service breadth, depth and quality Quality of servicing staff Financial strength Regulatory standing Reputation and social responsibility Cost 10

11 Banking Services RFP Checklist Discussion of What Should be Included in RFP 10 pages Sections Introduction Scope of Banking Services Bidding Instructions Proposal Evaluation Other 11

12 GFOA BP: Accepting Payment Cards and Selecting Payment Card Providers Selecting Vendors: RFP Process and Evaluation May be part of traditional banking services contract How/When are funds available to government Equipment costs and use (and training!) Vendor reporting capabilities Vendor security record and procedures Government s liability in event of security breach Problem resolution and chargebacks Other parameters as discussed 12

13 Merchant Services RFP s - Key Questions Firm Information Client Base Relationship Representatives Card acceptance - Interface processing Authorization processing Settlement processing Ticket Retrieval and Charge-backs Debit Card Processing Technical capabilities Security and PCI Compliance Disaster Recovery Information Reporting Implementation Customer service Pricing and contracts Merchant Services is not a simple matter 13

14 Merchant Service Providers Volume of Transactions Determines Your Merchant Level Volume of Transactions and Dollars Determine Service Provider Interest Providers charge by % or transaction Provide details for best estimate of cost Key Determining Factors in Pricing Services Transaction volume Transaction dollars Average ticket Ticket range typically gets best price quotations 14

15 Merchant Services Fees Interchange Fees Fees merchants pay to card issuers Merchant s bank (acquiring bank) pays customer s bank (issuing bank) Rates are specific to each card type, entry mode, environment, MCC, etc. Rates are periodically adjusted Assessment (Network) Fees Paid to card brands for maintaining the payment processing networks Merchant Processor Fees Charged by merchant s bank or payment processor Fees Can Be Separately Charged Or Bundled Into A Discount Rate Fees Can Be Add-on To Underlying Transaction Or Pass-thru 15

16 Convenience Fees Fees Charged To Cardholder To Recoup Processing Costs Card Association Rules Govern How / When Convenience Fees Can Be Charged also check State law! Rules Subject To Change And Interpretation Rules Differ For Tax Programs Vs. Non-tax Programs MasterCard And Visa And Other Vendor Rules Differ If you take both cards, Visa rules take precedent Merchant (Your Government) Is Ultimately Responsible For Compliance With Rules GET ADVICE AND GUIDANCE FROM YOUR MERCHANT BANK!! 16

17 PCI Compliance Payment Card Industry Data Security Standard (PCI DSS) Applicable To All Organizations, Environments, Applications And Hardware That Collect, Transmit Or Store Cardholder Data Requirements Are Scaled To Number Of Transactions Processed Ongoing, Not A One-shot-and-done Event Policies And Procedures Employee Training Vendors YOU USE Must Be PCI Compliant Penalties For Non-compliance 17

18 PCI Requirement Breakdown

19 GFOA BP: Due Diligence on Bank and Treasury Management Providers Government Has Fiduciary Duty to Protect and Safeguard Public Funds Vital to Carefully Select Bank And Non Bank Vendors to Perform Ongoing Supervision and Evaluation Governments Should Review Quarterly And Annual Financial Statements Pro-actively Manage Relationship Monitor Financial Conditions of the Entity 19

20 BP: Bank Account Fraud Protection Proper Controls Are Essential to Reduce Liability in the Event of a Fraudulent Transaction This is Not Your Father s Fraud Environment Cash, checks, AND ELECTRONIC methods Numerous Fraud Prevention Tools From Banks Positive pay ACH blocks and filters Reconciliation tools Inter-day access Know Who Has Access to Your Accounts Set Filters/Controls/Blocks for All Accounts Revise Account Security Features at Least Once a Year 20

21 Case Study: Dixon, IL $53 million City of Dixon, population 16,000 Opened a bank account, made to look like a city account. Transferred city revenue into it before it was recorded. Used funds to purchase cars, horses and jewelry. Largest municipal fraud in American History. Pled guilty and sentenced to nearly 20 years. Annual Conference 2018

22 Case Study: Dixon, IL How did this happen? On 12/8/90, Crundwell opened a secret bank account. She was the only signatory. She deposited money into the Capital Development Fund, created false invoices and wrote the checks from the fund payable to Treasurer. She did this for 22 years. On average, she stole $2.5 million a year. Annual Conference 2018

23 Case Study: Dixon, IL Blamed budget shortfalls, forced departments to make service cuts. Street repairs were defaulted, only 65 blocks of road were repaired or replaced in the decade prior to her arrest. Financial statements were signed off annually without concern by external outdoors. Few, if any, employees had access to the city financial statements. Annual Conference 2018

24 BP: Bank Account Fraud Protection Internal Controls Educate Staff, Including Surprise! Audits Implement Review Process for Transactions Over a Certain Amount Daily Reconciliation Process (including wires and ACH) Know How Many Bank Accounts You Have and Determine if You Need Multiple Accounts or Can Streamline. Review All Accounts at Least Annually Have Document Retention Procedures Have Counsel Review any Laws That Have Changed Related to Liability for Fraudulent Transactions Have Physical Security for Checks and Other Paperwork With Account Information 24

25 Addressing Fraud in Electronic Payments Recent GFOA Conference Session Scammers are Getting Sophisticated Beware of s That Look Like They are From Vendors Demanding Payments or that State the Vendor is Changing Banks and to Send Funds to a New Account Be sure to see where the money is going (e.g., bank in China) Pick Up the Phone! If Something Appears Odd, Call the Vendor Don t Send an (that may have been compromised too) 25

26 Addressing Fraud in Electronic Payments Have Procedures in Place to Stop Checks or Electronic Payment Processes in the Event the Government is Compromised Call Law Enforcement If You Suspect a Scam/Fraudulent Activity May or Has Occurred Train and Empower Staff to Identify New Kinds of Fraud 26

27 INVESTING 27

28 GFOA BP: Cash Flow Analysis Perform Ongoing Cash Flow Analysis to Ensure Cash Liquidity and Limit Idle Cash Components of Analysis Should Include: Pooled Cash Portfolio of Unrestricted Operating Consider Historical Information and Projected Financial Activity Compare Actual Cash Flow to Projections to Assist with Future Projections Make Conservative Cash Receipts and Disbursements Assumptions Monitor Cash Position DAILY to Ensure Sufficient Liquidity Select Appropriate Tool for Cash Flow Analysis 28

29 Cash Flow Forecast City of KCMO Example No Short-term Borrowing All Liquidity Comes From >$1 Billion Investment Portfolio In-house Investment Manager Daily Liquidity Monitoring Use Cash Flow Spreadsheet to Plan Match investment maturities and incoming receipts with cash needs Daily Communication With Departments Regarding Large Disbursements, Deposits, and Future Bond Issues 29

30 Cash Flow Forecast City of KCMO Example CASHFLOW1 DEBT SERVICE SCHEDULE LAST UPDATED: (through ) ACTIVITY CASH CASH MATURING DISBURSEMENT STATUS TYPE ID ACQ. # SK DAY DATE DISBURSEMENT RECEIPTS INVESTMENTS STATUS Act. Agency MAT C Thu 12/27/18 $10,077, Partial DS 1.1 Act. Callable INT C Thu 12/27/18 $115, Act. Not Called MAT C Fri 12/28/18 $5,030, SWR 2016A PF Act. Agency INT C Fri 12/28/18 $30, Est. C-PAY Fri 12/28/18 $8,500, CP Act. Agency INT C Fri 12/28/18 $75, D/S Fri 12/28/18 $28,500, DS 1.1 Est. JACK CO Sat 12/29/18 $16,900, Esr TIF IN Sat 12/29/18 $2,000, Act. Callable INT C Sat 12/29/18 $75, Act. Callable Call + Int C Sun 12/30/18 $80, Callable Investment Act. Callable Call + Int C Sun 12/30/18 $37, Callable Investment Act. Agency MAT C Mon 12/31/18 $5,037, KCMO GO Q1 Est. P-PAY Fri 01/04/19 $5,000, PP Est. JACK CO Fri 01/04/19 $6,000, Est. PLATTE CO Fri 01/04/19 $11,750, Est. TIF IN Fri 01/04/19 $7,000, Act. Agency INT C Sat 01/05/19 $150, Est. SL-TAX Mon 01/07/19 $18,000, CP Est. PLATTE CO RR Tax & U Wed 01/09/19 $900, Est. TIF OUT Thu 01/10/19 $10,000, TIF OUT Act. Agency INT C Thu 01/10/19 $97, SWR 2018A PF Est. JACK CO Fri 01/11/19 $6,000, Est. TIF IN Fri 01/11/19 $3,000, Est. C-PAY Fri 01/11/19 $8,500, CP 30

31 City of Pataskala, Ohio Liquidity Management Case Study James M. Nicholson Finance Director City of Pataskala, Ohio 31

32 City Demographic Info Population = 15,092 Area = 28 square miles Combined General Fund Budget = $7.4 million (all funds budget = $19.2 million) Employees = 50 full-time, 8 part-time General Purpose Government Providing Road Maintenance, Police, Parks, Zoning/Code Enforcement. Fire Protection Provided by the West Licking Fire District. City Operates a Water and Sanitary Sewer System Utility. 32

33 Existing Environment Existing Environment Historically, Limited Funds Available For Investment Overnight Sweep Used Extensively Voters Passed An Income Tax In Mid-2010, Resulting In Improved Funding Major Multi-year Investment In Infrastructure Improvements City Investment Policy Initially Implemented In 2007, However Updated Significantly In 2013 To Accommodate: Inclusion of legally permitted investments (ORC CDs) Require DVP (delivery versus payment) for trade settlement Broker/dealer investment policy acknowledgement 33

34 Cash Flow Requirements Analysis Property Tax Settlements Distributed By County Treasurer In March And August. Income Tax Collections (With Slight Deviations) Are Generally Distributed Evenly Throughout The Year Historical Analysis Of Revenues, Expenditures And Fund Balance Commingled portfolio vs fund balance requirements Core vs liquidity Active, inactive and permanent funds (ORC designation requirement) Account for extraordinary revenues or expenditures Include future forecast periods in the analysis 34

35 Monthly Revenue, Expenditure & Fund Balance - All Funds January, 2012 through December, 2017 MILLIONS $25.0 $20.0 $15.0 $10.0 $5.0 $- Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Revenue Expense Fund Balance 12 per. Mov. Avg. (Fund Balance) 35

36 Revenue, Expenditure & Fund Balance All Funds MILLIONS $45.0 $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $ Revenue Expense Fund Balance 3 per. Mov. Avg. (Fund Balance) 36

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39 Analysis Assumptions A Portion Of The Portfolio Is Held In Callable Securities. The Analysis Did Not Assume That Any Securities Were Called Before Maturity (High Likelihood Of Security Calls). Assumed That Revenue Collection Timing In Would Match That Of Factored In The March/August Timing Of Nearly $1.0 Million In Property Tax Revenues. Includes June/December timing for debt service payments. Assumed A 15% Average (All Funds) Reserve Ratio Policy for General, Police and Street funds have a target 25-35% ratio, all other governmental funds are 5-15%. 39

40 CITY OF PATASKALA, OHIO LIQUIDITY FORECAST Millions $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $- $(2.0) Q 1-16 Q 2-16 Q 3-16 Q 4-16 Q 1-17 Q 2-17 Q 3-17 Q 4-17 Q 1-18 Q 2-18 Q 3-18 Q 4-18 Q 1-19 Q 2-19 Q 3-19 Q 4-19 Q 1-20 Q 2-20 Q 3-20 Q 4-20 Revenues Expenditures Fund Balance Excess/(Deficit) Liquidity 40

41 Results of Analysis Core (Inactive) Funds Reflect The First $2.0 Million In Funds. Interim (Active) Funds Are Excess Above $2.0 Million Factoring An Average 15% Reserve Ratio, 2018 Liquidity Ranges From A Low Of $2.1 Million In Q1-16 To A High Of $3.3 Million In Q3-16. The liquidity forecast ranges from a high of $7.63 million in Q1-18, to a deficit of $213 thousand in Q4-20. Current Portfolio Is Now Well-positioned, However Calls In Late-2018 And 2019 Will Need To Be Retained In Liquid Form (STAR Ohio Or ICS Sweep) 41

42 Why an Investment Policy? GFOA s Best Practice on Creating an Investment Policy Starts with: A written investment policy is the single most important element in a public funds investment program. Why? It improves the quality of decisions It demonstrates a commitment to the fiduciary care of public funds, with emphasis on balancing safety of principal and liquidity with yield. It signals to rating agencies, the capital markets, and the public that a government entity is well managed and is earning interest income suitable to its situation and economic environment. 42

43 What Does an Investment Policy Do? Defines the Investment Program Legal and permitted activities and investments Authority - Who s in charge Benchmarks - Measurement of results Relationship to counterparties Provides Protection For the Government and the individual responsible for investing Addresses the Dynamic Nature of the Investment Process 43

44 Policy Components Introduction and Statement of Intent Overview of entity Sound fiscal management Adoption of policy Approval by governing board 2. Scope Funds covered by policy 3. Objectives Safety, liquidity, yield/return (SLY) & others 4. Delegation of Authority 5. Statement of Prudence, Indemnification & Ethics 44

45 Policy Components Authorized Investments & Transactions State Statutes Risk tolerance Types of securities & transactions Maximum maturities & weighted average maturities Credit criteria Repurchase agreement criteria 7. Collateralization Repurchase Agreements Bank deposits 45

46 Policy Components Local Government Investment Pools/Mutual Funds Criteria for evaluating pools and mutual funds 9. Authorized Financial Institutions, Depositories & Broker/Dealers Criteria for selection Competitive trade executions 10. Delivery and Safekeeping Criteria for selecting safekeeping bank Delivery versus payment (DVP) settlement Fed wire Depository Trust Company (DTC) 46

47 Policy Components Risk Management and Diversification Addresses how market and credit risk will be managed Maximum maturities, weighted average maturities, weighted average duration Diversification among asset classes and issuers Liquidity targets Prohibited investments and practices 12. Reporting Disclosure of activities & holdings Methods for calculations Frequency of reports & who receives them 47

48 Policy Components Performance Benchmarks Criteria for selecting benchmarks Minimum yield standards Methods of calculation Policies Will Often Have a Glossary Of Terms That Follow The Body of the Policy 48

49 Pataskala, Ohio Investment Policy 49

50 Pataskala, Ohio Investment Policy 50

51 Pataskala, Ohio Investment Policy 51

52 Pataskala, Ohio Investment Policy 52

53 Pataskala, Ohio Investment Policy Other Sections in the Policy Include: Delegation of Authority Investment Procedures Ethics and Conflicts of Interest Authorized Financial Dealers & Institutions Authorized and Eligible Investments Collateralization Safekeeping and Custody of Securities (DVP) Diversification (investment type, issuer and call/maturity) Maximum Maturity (typically, <5 years) Performance Standards (composite benchmark) 53

54 Pataskala, Ohio Investment Policy Other Sections in the Policy Include: Performance Standards (composite benchmark) Investment Advisory Committee Reporting Training & Education Investment Policy Adoption by Council info Broker/Dealer Acceptance and Acknowledgement Glossary of Terms 54

55 Additional Policy Thoughts Start By Examining State Statutes Review sample investment policies, but don t just copy The Policy is an Internal Document Involve staff responsible for investments Prepare draft of new policy and anytime making revisions Have the right parties review the drafts The Policy is an External Document Distribute to outside parties Get Governing Body Approval As resolution, ordinance, etc. Perform Annual Reviews & Updates 55

56 GFOA Best Practice: Investment Policy Describes Parameters for Investment of Government Funds Identified Objectives, Risk Tolerance, Constraints, and Monitoring and Managing Should be Reviewed and Updated Annually Components: Scope and investment objectives Roles, Responsibilities and Standards of Care Suitable and Authorized Investments Custody of collateral Safekeeping and Internal Controls Authorized Financial Institutions, Depositories and B/D Risk and Performance Standards Reporting and Disclosure Standards 56

57 GFOA Best Practice: Investment Program for Public Funds Management and Monitoring of Investment Activity Allows Structure to Set Policy, Make Decisions and Safeguard the Government s Financial Assets Fiduciary Responsibility, Regardless of Size or Type of Governmental Entity Components: Develop Investment Leadership Team Identify Funds Used for Investment and Their Characteristics Review all Federal, State and Local Laws and Regulations Establish a Risk Profile Determine Portfolio Management Team (internal/external) Create and Use an Investment Policy 57

58 Standard Authorized Investments Local Government Investment Pools (LGIP)* Money Market Mutual Funds* Commercial Paper* Repurchase Agreements* Derivatives* Certificates of Deposit Treasury Obligations bills and notes Government Agency Securities Municipal And State Obligations Corporates * - GFOA BP/Advisories

59 BP: Using LGIPs Usually State Treasurers Office Runs a Pooled Investment Fund for Multiple Jurisdictions Within State That Are Similar to MMMFs Benefit: Economies of Scale, Full-Time Portfolio Management, Responsible Investment Strategies (as set by law) Know the Pool s Investment Objectives, Rules, Administrative Issues, NAV and Credit Rating Are the Pool s Investment Objectives In Sync With Your Government s Investment Policy? Review/Know the Portfolio Manager Evaluate Earnings Performance, Benchmarks, Custodial Practices, Reporting Practices, Diversification Strategy

60 BP: Using MMMFs for Cash Management Purposes Use Only MMMFs Invested in Treasuries, Federal Government Agency or First Tier Categories and Short Term Bond Funds of Highest Credit Quality/Low Risk Analyze Risk - Ensure state/local statute and investment policy compliance - Understand and have full information about fund prospectus - Be familiar with any restriction gates assessed against fund - Review and understand fee structures - Keep an eye on duration SHORT TERM - Review specific holdings of MMMF Pay Attention To Changing SEC Regulations

61 ADV: Using CP in Investment Portfolios Commercial Paper - Short-term (<270 days) - Unsecured promissory note from issuer (usually corporates) - Default risk If Governments Choose to Use CP, They Must: - Verify They Are Legally Able to Do So - Have the Expertise to Understand, Evaluate & Monitor the Investment - Determine if the Incremental Yield Associated With CP Justifies the Additional Credit and Liquidity Risk

62 ADV: Using CP in Investment Portfolios Governments Should Have Policies and Procedures In Place to Manage Their CP Investments - Monitor CP Issuer s Balance Sheet and review Monthly/Quarterly Reports and Maintain Own Information on Each CP Issue - Set Limits on the Amount of CP That Can Be Purchased From One Issuer - Restrict Investments to the Safer Segment of the CP Market Shorter Maturities, Sectors that Aren t Experiencing Turmoil - Establish Pre-Approved List of CP Programs That Can be Purchased - Should be First Tier Credit Rating

63 BP: Repurchase Agreements Develop and Implement Internal Policies/Procedures Know the Parties Acting as Principals Exercise Caution When Selecting and Evaluating the Creditworthiness of Counterparty Use Master Purchase Agreements (SIFMA) and GFOA s Considerations for Govts Developing a Master Repurchase Agreement Have Counsel Review Agreement Implement Proper Securitization Practices Routine Market Valuing Consider Restricting Types of Securities Used for Collateral 63

64 ADV: Use of Derivatives and Structured Instruments Governments Need to Use EXTREME Caution when Using These Products (or thinking about using these products). ONLY Should be Considered IF There is Sufficient Understanding of the Products and Ability to Manage Various Considerations - Legal - Appropriateness - Need for strong and strict internal controls - Need for staff to conduct ongoing monitoring and recordkeeping - Outside professionals should provide appropriate disclosures and be free of conflicts of interest

65 GFOA BP: Diversifying the Investment Portfolio Diversification is Important to Managing Risk and is a Component of an Entity s Risk Portfolio Various Ways to Achieve Diversification Portfolio Should Have Securities With Varying Risk Characteristics Maturity Distribution in a Portfolio (market and liquidity risk) Sector allocation (credit risk) Issuer allocation (credit risk) Securities structures (callable vs non callable) (market and liquidity risk) Develop and Implement Diversification Strategies 65

66 GFOA BP: Using Benchmarks to Assess Portfolio Risk and Return Important To Measure Risk And Return Levels Against An Appropriate Benchmark Total Return/Benchmark Evaluations Should Be Done At Least Quarterly Carefully Select Your Benchmark(s) Taking Into Consideration: Should be transparent Should be seen as investable Should be priced on regular basis Past returns should be available Should be consistent Risk metrics should be published Composition should be similar to YOUR portfolio holdings Select benchmark BEFORE evaluation starts

67 BP: Managing Market Risk in Investment Portfolios Governments Should Comply With State Statutes ALWAYS Follow Your Investment Policy Governments Must Know Their Risk Tolerance Limits Other Considerations: Make sure portfolio allows for enough liquidity to meet cash flow needs (MMMFs) Understand security s structure, including options/call options Maturity date should be used to comply with your investment policy, not a call date Adopt weighted average maturity limitations/average duration targets to manage risk Don t invest in securities with maturities greater than your investment policy limits Make specific authorizations for longer term investments

68 GFOA BP: Mark-to-Market Reporting for Public Investment Portfolios Importance of Reporting Provides a Realistic Measure of a Portfolio s True Liquidation Value Provides Investors/Public With Proper Snapshot of Entity s Investments Demonstrates Adherence to GASB Standards Perform Quarterly Using Reputable Sources Report Should Include: Market Value, Book Value, Unrealized Gain/Loss of the Securities in the Portfolio Conduct if Significant Event in Local or National Economy Warrants 68

69 BP: Selection and Review of Investment Advisors Governments Need To Use A Careful And Informed Approach In Selection And Management Of Services Specifically State The Scope Of Services Have Policies And Procedures In Place Regarding Level Of Discretion (If Any) That Is Given To Advisor That Is Line With Your Policy Advisor Needs to Be Independent From Underwriter in General and MSRB Rules Don t Allow Same Firm To Serve in Both Roles on Same Transaction

70 BP: Selection and Review of Investment Advisors Determine Criteria for Use and Selection Advisor s Understanding of Entity s Investment Program and Their Approach for Services Advisor s Background Verify SEC and Regulatory (and State) Registration Establish Risk Controls Prohibit Self Dealing Competitive Trade Execution and Confirmations Timely Reporting

71 GFOA Best Practice Relationships with Securities Dealers Use Specific WRITTEN Criteria When Selecting, Managing and Engaging in Transactions With Broker/Dealers All Parties Need to Understand Their Role Set Criteria Based on Needs and Investment Policy Know and Follow Your Federal State Laws and Regulations Keep Communication Doors Open 71

72 112 th Annual Conference May 6-9, 2018 St. Louis, Missouri Speaker Contact Information: Kent R. Austin Doug Buehler James M. Nicholson Courtney Sladek Questions: Speakers will take questions and comments. This session is being recorded, please utilize the microphone in the aisle to ask all questions. Provide Feedback: Please take a few minutes to provide your feedback at Discuss/Comment: Join the discussion at #GFOA2018 Contact GFOA: To contact GFOA about session topics please research@gfoa.org #GFOA2018