MARIN SCHOOLS INSURANCE AUTHORITY FINANCE COMMITTEE MEETING AGENDA. Marin County Office of Education 1111 Las Gallinas Avenue San Rafael, CA 94903

Transcription

1 MARIN SCHOOLS INSURANCE AUTHORITY FINANCE COMMITTEE MEETING AGENDA Marin County Office of Education 1111 Las Gallinas Avenue San Rafael, CA Thursday, October 1, :00 a.m. In compliance with the Americans with Disabilities Act, if you are a disabled person and require a disability-related modification or accommodation to participate in this meeting, please contact Mr. Rick Brush at (916) or by fax at (916) Requests must be made as early as possible, and at least one full business day before the start of the meeting. Documents and materials relating to an open session agenda item that are provided to the Marin Schools Insurance Authority Finance Committee less than 72 hours prior to a regular meeting will be available for public inspection and copying at 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA The documents will also be available on the MSIA website at 1. CALL TO ORDER 2. INTRODUCTIONS Member Ms. Terena Mares Ms. Deborah Wolfe Ms. Chris Thomas FINANCE COMMITTEE District MCOE/Rurals Ross Elementary School District San Rafael Elementary/High School District 3. APPROVAL OF AGENDA AS POSTED (OR AMENDED) 4. PUBLIC COMMENTS This time is reserved for members of the public to address the Committee relative to matters of the Marin Schools Insurance Authority not on the agenda. No action may be taken on non-agenda items unless authorized by law. Comments will be limited to five minutes per person and twenty minutes in total. 5. CONSENT CALENDAR If the Committee would like to discuss any item listed, it may be pulled from the Consent Calendar. *A. Minutes of the April 8, 2014, Finance Committee Meeting Recommendation: Committee approve the Consent Calendar 4 6. DISCUSSION CALENDAR *A. Introduction of MSIA Investment Management Firm Mr. Rick Brush, Bickmore & Mr. Ned Connolly, Chandler Asset Management Recommendation: None. Information only. *B. Review of MSIA Policy Investment of Funds Ms. Puneet Behl, Bickmore Recommendation: None. Information only. 7 8

2 Marin Schools Insurance Authority Finance Committee Meeting October 1, CLOSING COMMENTS This time is reserved for comments by Committee members and staff and to identify matters for future Committee business. A. Finance Committee B. Staff 8. ADJOURNMENT Notices: The next Board of Directors meeting is scheduled to be held on Thursday, November 5, 2015, at the Marin County Office of Education, starting at 9:00 a.m. The next Management Committee meeting is scheduled to be held on Thursday, December 17, 2015, at the Marin County Office of Education.

3 Marin Schools Insurance Authority Finance Committee Meeting October 1, 2015 CONSENT CALENDAR Agenda Items 5.A. SUBJECT: Consent Calendar BACKGROUND AND STATUS: The Consent Calendar consists of items that require approval or acceptance but are selfexplanatory and require no discussion. If the Finance Committee would like to discuss any item listed, it may be pulled from the Consent Calendar. RECOMMENDATION: Committee approve the Consent Calendar. REFERENCE MATERIALS ATTACHED: A. Minutes of the April 8, 2014, Finance Committee Meeting 3

4 MARIN SCHOOLS INSURANCE AUTHORITY SPECIAL FINANCE COMMITTEE MEETING Marin County Office of Education 1111 Las Gallinas Avenue San Rafael, CA Tuesday, April 8, :30 a.m. MINUTES MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: Ms. Terena Mares, Chairperson, MCOE/Rurals Ms. Chris Thomas, San Rafael City Schools Ms. Karen Maloney, Novato Unified Mr. Rick Brush, Executive Director, Bickmore Ms. Adrienne Beatty, Assistant Executive Director, Bickmore Ms. Jillian Stoorza, Board Secretary, Bickmore Ms. Puneet Behl, Finance Manager, Bickmore 1. CALL TO ORDER The Finance Committee meeting was called to order at 8:37 a.m. 2. INTRODUCTIONS There was no need for introductions, and it was determined a quorum was present. 3. APPROVAL OF AGENDA Ms. Terena Mares moved to approve the agenda as posted. Ms. Chris Thomas seconded the motion. The motion passed unanimously by Ms. Terena Mares and Ms. Chris Thomas. 4. PUBLIC COMMENTS There were no public comments. April 8, 2014 MSIA Finance Committee Meeting Minutes Page 1 4

5 5. DISCUSSION CALENDAR A. Review of Policy Investment of Funds Ms. Puneet Behl, MSIA s Finance Manager, reported that the MSIA Investment Policy (300.12) is reviewed annually by the Finance Manager and the Investment Manager, Cutwater Asset Management (Cutwater) to identify if any regulatory changes apply or if the policy needs to be revised for any reason. The current Policy was included in the agenda packet for the Committee s review. Ms. Behl noted that a number of changes were recommended to the Committee at the August 20, 2013, Finance Committee meeting; however, the Committee was not comfortable with some of the recommendations at that time and no action was taken. Ms. Behl reported that staff further reviewed Cutwater s recommendations from the August meeting and recommends including language to the Policy in order to limit investments to 5% of any one single issuer. The language that was recommended reads and no more than 5% of the portfolio may be held in any one deposit or allocated to any one issuer. This language was added to the last sentence in the Investment of Funds sections: 5, 6, 9, and 10. For section 13, staff recommended that the language stating and no more than 10% of the portfolio may be invested in any single fund be added to the end of the section. There was a general consensus from the Committee members to be more conservative with investments. Recommendations will be reported out at the Management Committee meeting for their discussion and action. 6. CLOSING COMMENTS A. Finance Committee None. B. Staff Mr. Rick Brush, Executive Director, requested a timeframe for when the Finance Committee can meet with Mr. Dave Witthohn, Investment Manager from Cutwater, to look at what the maturity dates are for the portfolio as well as the payouts specifically in the Workers Compensation Program. There was a general consensus with the Committee to wait until after the fiscal year to schedule the meeting. Ms. Adrienne Beatty, Assistant Executive Director, asked the Committee members if the Finance Committee meetings for the 2014/15 program year could be scheduled in conjunction with the Management Committee meetings scheduled in August and April, respectively. The Committee members confirmed that the meetings can be held prior to the Management Committee meetings, commencing at 8:00 a.m. April 8, 2014 MSIA Finance Committee Meeting Minutes Page 2 5

6 7. ADJOURNMENT There being no further business, the meeting was adjourned at 8:52 a.m. Jillian Stoorza, Board Secretary April 8, 2014 MSIA Finance Committee Meeting Minutes Page 3 6

7 Marin Schools Insurance Authority Finance Committee Meeting October 1, 2015 DISCUSSION CALENDAR Agenda Item 6.A. SUBJECT: Introduction of MSIA Investment Management Firm Mr. Rick Brush, Bickmore & Mr. Ned Connolly, Chandler Asset Management BACKGROUND AND STATUS: At the September 10 th Board of Directors meeting, the Board approved Chandler Asset Management as MSIA s new Investment Manager, effective October 1, Mr. Rick Brush, Executive Director, will introduce Mr. Ned Connolly, Chandler Asset Management, who will be in attendance to introduce himself and answer any questions from the Committee. RECOMMENDATION: None. Information only. 7

8 Marin Schools Insurance Authority Finance Committee Meeting October 1, 2015 DISCUSSION CALENDAR Agenda Item 6.B. SUBJECT: Review and Action Regarding Policy Investment of Funds Ms. Puneet Behl, Bickmore BACKGROUND AND STATUS: The MSIA Investment Policy (300.12) is reviewed annually by the Investment Manager and MSIA s Finance Manager, Ms. Puneet Behl, in order to identify any regulatory changes or whether the policy requires any necessary revisions. The Board approved the Investment Policy at their September 10, 2015, meeting with no recommended changes in order to allow MSIA s new Investment Manager the opportunity to review the policy. This time is reserved for the Committee to review the policy with Mr. Ned Connolly, Chandler Asset Management, and for Mr. Connolly to provide any recommended changes to the policy. RECOMMENDATION: None. Information only. REFERENCE MATERIALS ATTACHED: MSIA Policy : Investment of Funds 8

9 SECTION 300 JPA AND PROGRAM FINANCING The Mann Schools Insurance Authority (the Authority) is a Joint Powers Authority operating within the provisions of the California Government Code and the Brown Act. It was established in 1985 to self-insure in the areas of workers' compensation, property, liability, dental, and vision, and members may partake in any of the sponsored Programs. The Authority is comprised of the Mann County Office of Education, 18 school districts, one Community College, and one Transportation District. The Authority has adopted this Investment Policy (the Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the Authority. All Authority funds will be invested in accordance with this Policy and with California Government Code Sections and , as currently written. This Policy was endorsed and adopted by the Board of Directors of the Marin Schools Insurance Authority and it replaces any previous investment policy or investment procedures of the Authority. I. Scope The provisions of this Policy shall apply to all financial assets of the Authority as accounted for in the Authority's Annual Audited Financial Report. All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the contributing funds based upon the proportion of the respective average balances relative to the total pooled balance. Investment income shall be distributed to the individual funds not less than annually. II. Investment Objectives The Authority's funds shall be invested in accordance with all applicable Authority policies and codes, State statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order: 1. Preservation of capital and protection of investment principal. 2. Maintenance of sufficient liquidity to meet anticipated cash flows. 3. Diversification to avoid incurring unreasonable market risks. 4. Attainment of a market rate of return. Page ~ 1 9

10 SECTION 300 JPA AND PROGRAM FINANCING Page 2 III. Delegation of Authority The management responsibility for the Authority's investment progam is delegated by the Board of Directors to the Finance Committee, as defined in the Authority's By-Laws. On an annual basis the Board shall review this delegated authority and following such review may act to renew the delegation by way of approval of this Policy. The Finance Committee, chaired by the Treasurer, shall be assisted in the management of the operation of the investment portfolio by the Finance Manager or his/her designee, and/or external consultants. The Finance Manager, his/her designee, and authorized external consultants are considered investment officials. No person may engage in an investment transaction except as expressly provided under the terms of this Policy. The Finance Committee shall develop administrative procedures and internal controls, consistent with this Policy, for the operation of the Authority's investment program. Such procedures shall be designed to prevent losses of public funds arising from fraud, error, misrepresentation by third parties, or imprudent actions by the Finance Committee or any investment officials of the Authority. The Authority may engage the support services of outside investment advisors or consultants with respect to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the Authority's financial resources. IV. Prudence The standard of prudence to be used by all investment officials, whether the Finance Manager, his/her designee, or external consultants, shall be the prudent investor standard of California Government Code Section and shall be applied in the context of managing an overall portfolio. The prudent investor standard states that "when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited. to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." The Authority's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public's trust. The Authority recognizes that no investment is totally without risk and that the investment activities of the Authority are a matter Page ( 2 10

11 ';i ''! 1 SECTION 300 JPA AND PROGRAM FINANCING Page 3 of public record. Accordingly, the Authority recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the Authority. Investment officials acting in accordance with written procedures and the Policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. V. Ethics and Conflict of Interest Officers, investment officials, and consultants involved in the investment process shall not engage in personal business activities that could conflict with proper execution of the investment program, or which could impair or create the appearance of an impairment of their ability to make impartial investment decisions. In addition, members of the Board of Directors, and others designated. in the Authority's Conflict of Interest Code, shall file a Statement of Economic Interests each year as required by California Government Code Section and regulations of the Fair Political Practices Commission. VI. Investment Securities All investments and deposits of the Authority shall be made in accordance with California Government Code Sections , , and Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. Securities that have been downgraded to a level that is below the minimum ratings described herein may be sold or held at the Authority's discretion. The portfolio will be brought back into compliance with Investment Policy guidelines as soon as is practical. The Authority has further restricted the eligible types of securities and transactions as follows: 1. United States Treasury Securities (Bills, Notes, and Bonds) with a final maturity not exceeding five years from the date of trade settlement. 2. Federal Instrumentality (government sponsored enterprise) debentures, discount notes, callable and step-up securities, with a final maturity not exceeding five years from the date of trade settlement. Page ~ 3 11

12 SECTION 300 JPA AND PROGRAM FINANCING Page 4 3. Federal Agency mortgage-backed securities and debentures with a final maturity not exceeding five years from the date of trade settlement. 4. Taxable California Municipal Obligations, which are insured and rated "AAA" by a nationally recognized statistical rating organizations (NRSRO) and with a final maturity not exceeding five years from the date of trade settlement. The purchase of such obligations sha11 be restricted to a maximum of 30% of the portfolio. 5. Non-negotiable Certificates of Deposit and savings deposits with a maturity not exceeding five years from the date of trade settlement, in FDIC insured state or nationally chartered banks or savings banks that qualify as a depository of public funds in the State of California as defined in California Government Code Section Deposits exceeding the FDIC insured amount shall be secured pursuant to California Government Code Section The aggregate investment in certificates of deposit held in the Authority's portfolio may not exceed 30%, and no more than 5% of the portfolio maybe held in any one deposit or allocated to any one issuer. 6. Negotiable certificates of deposit or deposit notes issued by a nationally or state-chartered bank or a state or federal savings and loan association or by astate-licensed branch of a foreign bank. The senior debt obligations of the issuing institution shall be rated at least "AA" or the equivalent by a NRSRO. The aggregate investment in certificates of deposit held in the Authority's portfolio may not exceed 30%, and no more than 5% of the portfolio may be held in any one deposit or allocated to any one issuer. 7. Passbook savings demand accounts or other interest bearing bank accounts with a federally insured financial institution. 8. Eligible Banker's Acceptances with a maturity not exceeding 180 days from the date of trade settlement, drawn on and accepted by a commercial bank whose senior long-term debt is rated at least A or the equivalent by a NRSRO at the time of purchase. Banker's Acceptances shall be rated at least A-1 or the equivalent at the time of purchase by a NRSRO. If the bank has senior debt outstanding, it must be rated at least A or the equivalent by a NRSRO. The aggregate investment in Banker's acceptances shall not exceed 15% of the Authority's total portfolio, and no more than 5% of the Authority's total portfolio shall be invested in Banker's acceptances of any one bank. 9. Prime Commercial Paper of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2}: Page~4 (1) The entity must: (i) be organized and operating in the United States as a general 12

13 SECTION 300 JPA AND PROGRAM FINANCING Page 5 corporation; (ii) have total assets in excess of $500,000,000; (iii) have debt other than commercial paper, if any, that is rated at least "A" or the equivalent by a NRSRO. (2) The entity must: (i) be organized within the United States as a special purpose corporation, trust, or limited liability company; (ii) have program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond; (iii) have commercial paper that is rated at least "A-1" or the equivalent, by a NRSRO. Purchases of eligible commercial paper may not exceed 270 days to maturity and may not represent more than 10% of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed 25% of the Authority's investment portfolio, and no more than 5% of the portfolio may be held in any one deposit or allocated to any one issuer. 10. Medium-term corporate notes issued by corporations organized and operating within the United States or by depository institutions licensed by the U.S. or any state and operating within the U.S. with a final maturity not exceeding five years from the date of trade settlement. Such Notes shall be rated at least A, A2 or the equivalent by a NRSRO and purchase of medium-term corporate notes may not exceed 30% of the Authority's investment portfolio, and no more than 5% of the portfolio may be held in any one deposit or allocated to any one issuer. 11. Repurchase Agreements used solely as short-term investments not to exceed 30 days. The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities, as described in IV. 1. and 2. are acceptable collateral. All securities underlying Repurchase Agreements must be delivered to the Authority's custodian bank versus payment or be handled under a tri-party repurchase agreement. The total of all collateral for each Repurchase Agreement must equal or exceed, on the basis of market value plus accrued interest, 102% of the total dollar value of the money invested by the Authority for the term of the investment. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day. For any Repurchase Agreement with a term of more than one day, the value of the underlying securities must be reviewed on a regular basis. Market value of the collateral securities sha11 be marked-to-the-market daily. Page ~ 5 Repurchase Agreements shall be entered into only with broker/dealers who are 13

14 r, ~, ~ ~, '' ~ ~ recognized as Primary Dealers with the Federal Reserve Bank of New York, or with firms that have a Primary Dealer within their holding company structure. SECTION 300 JPA AND PROGRAM FINANCING Page 6 Repurchase agreement counterparties shall execute an Authority approved Master Repurchase Agreement with the Authority. The Finance Committee shall instruct the Authority's Finance Manager or his/her designee to maintain, a copy of the Authority's approved Master Repurchase Agreement and a list of the broker/dealers who have executed same. Reverse repurchase agreements are not allowed. 12. State of California's Local Agency Investment Fund (LAIF), pursuant to California Government Code Section The LAIF portfolio should be reviewed periodically. LAIF limits total investment by any agency to $50,000, Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision these companies shall either: (1) attain the highest ranking letter or numerical rating provided by not less than two of the three largest NRSROs; or (2) have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years experience managing money market mutual funds and with assets under management in excess of $soo,aoo,000. The purchase price of shares shall not exceed 15% of the investment portfolio of the Authority, and no more than 10% of the portfolio maybe invested in any single fund. 14. Shares of beneficial interest issued by a joint powers authority organized. pursuant to Section that invests in the securities and obligations authorized in subdivisions (a) to (n), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria: (1) The adviser is registered. or exempt from registration with the Securities and Exchange Commission. Page ~ 6 (2) The adviser has not less than five years of experience investing in the securities and 14

15 SECTION 300 JPA AND PROGRAM FINANCING Page 7 obligations authorized in subdivisions (a) to (n), inclusive. (3) The adviser has assets under management in excess of $500,000,000. Credit criteria listed in this section refers to the credit of the issuing organization at the time the security is purchased. Investment maturities shall be based on a review of cash flow forecasts. Maturities will be scheduled so as to permit the Authority to meet all projected obligations. Investments must mature within the time specified in the Government Code for each type of investment. Purchases of investments having a maturity in excess of five years must have specific Board approval. Ineligible Investments: Any security type or structure not specifically approved by this Policy is hereby specifically prohibited. Security types which are thereby prohibited include, but are not limited to: 1. Inverse floaters, range notes, or mortgage derived interest-only strips. 2. Any security that could result in zero interest accrual if held to maturity. VII. Portfolio Diversification The Authority shall diversify its investments to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets, and the Authority's anticipated cash flow needs. VIII. Portfolio Maturities and Liquidity To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The Authority will not invest in securities maturing more than five years from the date of trade settlement, unless the Board of Directors has, by resolution, approved in public session granted authority to make such an investment at least three months prior to the date of investment. IX. Selection of Broker/Dealers The Authority's Finance Manager or his/her designee shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the Authority to purchase Page ~ 7 15

16 SECTION 300 JPA AND PROGRAM FINANCING Page 8 securities only from those brokers and the firms they represent. Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section of the California Corporations Code. To be eligible, a firm must meet at least one of the following criteria: 1. be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or 2. report voluntarily to the Federal Reserve Bank of New York, or 3. qualify under Securities and Exchange Commission (SEC} Rule 15c3-1 (Uniform Net Capital Rule). The Finance Committee will select broker/dealers on the basis of their expertise in public cash management and their ability to provide service to the Authority's account. Each authorized broker/dealer shall submit and annually update an Authority approved Broker/Dealer Information Request form that includes the firm's most recent financial statements. The Authority may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in Item 9 of the Investment Securities section of this Policy. X. Competitive Transactions All investment transactions shall be conducted competitively with authorized. broker/dealers. At least three broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recorded. If the Authority is offered a security for which there is no other readily available competitive offering, then the Authority's investment advisor will document quotations for comparable or alternative securities and provide those to the Authority's Finance Manager or his/her designee. XI. Selection of Banks The Authority's Finance Manager or his/her designee shall maintain a list of FDIC insured banks approved to provide depository and other banking services for the Authority. To be eligible, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section and shall secure deposits in excess of FDIC insurance coverage in accordance with California Government Code Section Page ~ 8 16

17 SECTION 300 JPA AND PROGRAM FINANCING Page 9 XII. Safekeeping and Custody The Finance Committee shall select one or more banks to provide safekeeping and custodial services for the Authority. A Safekeeping Agreement approved by the Authority shall be executed with each custodian bank prior to utilizing that bank's safekeeping services. Custodian banks will be selected on the basis of their ability to provide services for the Authority's account and the competitive pricing of their safekeeping related services. The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. All securities shall be perfected in the name of the Authority. Sufficient evidence to title shall be consistent with modern investment, banking and commercial practices. All investment securities purchased by the Authority will be delivered by either book entry or physical delivery and will be held in third-party safekeeping by an Authority approved custodian bank, its correspondent bank or its Depository Trust Company (DTC) participant account. XIII. Portfolio Performance The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the Authority's investments shall be compared to the average yield on the U.S. Treasury security that most closely corresponds to the portfolio's weighted average effective maturity. When comparing the performance of the Authority's portfolio, its rate of return will be computed net of all fees and expenses. XIV. Reporting The Board of Directors recognizes that various bank accounts may be established for the purpose of maintaining liquid assets to be used in the daily management of the Authority's funds and for the deposit and disbursement of funds as detailed in MSIA Policies Investment of Monies in LAIF and Establishing All Bank Accounts and Authorized Signatures. Disclosure to the Board of Directors of all investment activity will occur quarterly via the Treasurer's Report. The Treasurer shall approve a monthly report, of the investment earnings, transactions, and performance results of the Authority's investment portfolio, which will be provided to the Board of Directors on a quarterly basis via the Page ( 9 17

18 SECTION 300 JPA AND PROGRAM FINANCING Page 10 Treasurer's reports. The report shall include the information required by Government Code section and the following information: 1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the Authority; 2. A description of the funds, investments and programs; 3. A market value as of the date of the report (or the rnost recent valuation as to assets not valued monthly) and the source of the valuation; 4. A statement of compliance with this Policy or an explanation for non-compliance; and 5. A statement of the Authority's ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case. XV. Policy Review This Investment Policy shall be adopted annually by the Board of Directors. It shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield, and diversification and its relevance to current law and economic trends. Amendments to this Investment Policy shall be approved by the Board of Directors. References: 1. Government Code Sections 989, 990, 990.4, 990.8, and 6500 et seq. 2. California Government Code Sections California Government Code Sections and California Government Code Section Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.) 6. California Corporations Code Section Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule). 8. The Ralph M. Brown Act 9. Regulations of the Fair Political Practices Commission 10. MSIA Policy Investment of Monies in LAIF 11. MSIA Policy Establishing All Bank Accounts and Authorized Signatures This policy was approved by the MSIA Board of Directors on May 8, Signed: MSIA Board President Page ~ 10 18