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624 <br /> <br />-, <br /> <br />o <br /> <br />demands of the County and conforming to all state and local <br />statutes governing the investment of public funds. <br />This investment policy applies to all financial assets in the <br />County's investment portfolio except debt proceeds which will be <br />accounted for separately and invested separately from other funds. <br />These funds are accounted for in the CountyVs Comprehensive Annual <br />Financial Report. <br />The standard of prudence to be used by staff will be the "prudent <br />person" rule. The "prudent person" concept discourages <br />speculative transactions. It attaches primary significance to the <br />preservation of capital and secondary importance to the generation <br />of income and capital gains. Authorized staff, if acting in <br />accordance with written procedures and state statutes and <br />exercising due diligence, shall be relievedl of personal <br />responsibility for an individual security's credit risk or market <br />price changes, provided that these deviations are reported <br />immediately and action is taken to control adverse developments. <br />The primary objectives, in priority order, of the CountyVs <br />investment activities will be: safety, liquidity, yield. <br />a. Safety of principal is the foremost objective of the <br /> investment program. Investments of the County will be <br /> undertaken in a manner that seeks to ensure the preservation <br /> of capital in the overall portfolio. To attain this <br /> objective, diversification is required in order that <br /> potential losses on individual securities do not exceed the <br /> income generated from the remainder of the portfolio. <br />b. The County's investment portfolio will remain sufficiently <br /> liquid to enable the County to meet all operating <br /> requirements which might be reasonably anticipated through <br /> the use of structured maturities and marketable securities. <br />c. The CountyWs investment portfolio will be designed with the <br /> objective of attaining a market rate of return while <br /> minimizing risk and retaining liquidity. <br />North Carolina G.S. 159-25(a)6 delegates management responsibility <br />for the investment program to the Finance Director. The Finance <br />Director will establish and maintain written procedures for the <br />operation of the investment program consistent with this <br />investment policy. Such procedures will include explicit <br />delegation of authority to persons responsible for investment <br />transactions. No person may engage in an investment transaction <br />except as provided under the terms of this policy and the <br />procedures established by the Finance Director. The Finance <br />Director will be responsible for all transactions undertaken and <br />will establish a system of controls to regulate the activities of <br />subordinates. <br />Officers and employees involved in the investment process will <br />refrain from personal business activity that could conflict with <br />proper execution of the investment program, or which could impair <br />their ability to make impartial investment decisions. Employees <br />and investment officials will disclose to the County Manager any <br />material financial interests in financial institutions that <br />conduct business within this jurisdiction, and they will further <br />disclose any large personal financial/investment positions that <br />could be related to the performance of the County's portfolio. <br />Employees and officers will subordinate their personal investment <br />transactions to those of the County, particularly with regard to <br />the time of purchase and sales. <br />The Finance Director will maintain a list of financial <br />institutions who are authorized to provide investment services. <br />Authorized financial institutions will be selected by credit <br />worthiness and must maintain an office in the State of North <br />Carolina. These may include "primary" dealers or regional dealers <br />that qualify under Securities & Exchange Commission Rule 15C3-1 <br />(uniform net capital rule). No public deposit will be made except <br />in a qualified public depository as established by state laws. <br />a. Ail financial institutions and broker/dealers who desire to <br /> become qualified bidders for investment transactions must <br /> supply the Finance Director with the following: audited <br /> financial statements, proof of National Associations of <br /> Security Dealers Certifications, proof of state <br /> registrations, and certification of having read the County's <br /> investment policy. <br />b. A review of the financial condition and registrations of <br /> qualified bidders will be conducted by staff. Any financial <br /> <br /> <br />