1 / 22

Day-to-Day Management of Public Funds and Investment Reports

Learn about the day-to-day activities involved in managing public funds and investment reports, including cash management, pre-investment activities, investment of daily funds, and ongoing activities. Gain insights into investment decision-making, portfolio structure alternatives, and post-investment activities. Get relevant information from investment workshops, financial markets, and professional programs.

rsalas
Download Presentation

Day-to-Day Management of Public Funds and Investment Reports

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Day-to-Day Management of Public Funds and Investment Reports California Debt and Investment Advisory Commission Brice Bins, Assistant Treasurer, Contra Costa County Katano Kasaine, Treasury Manager, City of Oakland Maria Öberg, Principal Investment Officer, City of San Jose January 13, 2011

  2. Introduction • Daily Routine for Cash Management • Pre-Investment Activities • Investment of Daily Funds • Reconciliation of Daily Activities • Ongoing Activities

  3. Pre-Investment Activities • Download Prior Day Bank Activity • Update Cash Flow Model • Download Intra-Day Bank Activity

  4. Bank Activity • Prior Day Activity – Reports • Collected Balances • Funds Available • Update Daily Cash Flow Model • Debits & Credits • Update Cash Flow Projections

  5. Daily Cash Flow • Identify Current Revenues • Deposits from Agencies and Districts • Remittances from the State • Investment Maturities • Other • Identify Current Expenditures • Accounts Payable, Wire Transfers • Investment Purchases • Other

  6. Daily Cash Flow • Determine Amount of “Idle” Cash • Revenues Minus Expenditures • Investment of “Idle” Cash • Short-Term, Medium-Term, Long-Term • Reconciliation of Daily Cash Flow

  7. Investment Of Funds • Focus on Investment Objectives • Safety • Liquidity • Return on Investment (Yield)

  8. Bloomberg - YCRV

  9. What To Invest Funds In ? • California Government Code • City or County Investment Policy • Investment Objectives • Market Access

  10. Market Review • What’s the market like today? • Major economic announcements? • Other resources?

  11. Bloomberg - BTMM

  12. Bloomberg - DOCP

  13. Bloomberg - NIM2

  14. Compliance Review • Proportion of Security Types and Issuers • Govt. Code, Investment Policy • Credit Quality • Ratings, Analysis, Review • Approved List of Issuers and Brokers

  15. Investment Decision • Permitted Investments • California Govt. Code • Your Agency’s Investment Policy • Suitable Maturity/Category • Obtain Bids/Offers from Broker/Dealers • Decide and Execute Trade • Maintain Lines of Communication with Custody Bank for Settlement Confirmation

  16. Short-Term Investments(One Day Liquidity) • Demand / Checking Account • Bank “Sweep Account” • Money Market Account • L.A.I.F. – State of California • Repurchase Agreement • Commercial Paper

  17. Medium-Term Investments(One Month or Longer) • U.S. Treasury Bills • Federal Agency Discount Notes • Time Deposits (TCD) – Collateralized • Commercial Paper • Corporate Notes

  18. Portfolio Structure Alternatives • Divide your portfolio into: • Short-term Maturities or Core Portfolio • Longer-term Maturities or Reserve Portfolio • Advantages: • Clearly Define Funds Available for Liquidity • Can Optimize Returns on Both Sub-Portfolios • Each can be Managed to a Unique Benchmark

  19. Post-Investment Activities • Settle with Custodian Bank - DVP • Record Trade in Finance System • Reconcile to Trade Confirmations • Update Cash Flow Model

  20. Ongoing Activities • Investment Reporting • Credit Reviews • Cash Flow Updates • Broker Reviews • Audits • Portfolio Rating/Review

  21. Summary • Daily Routine for Cash Management • Pre-Investment Activities • Investment of Daily Funds • Reconciliation of Daily Activities • Ongoing Activities • Questions?

  22. Where to Get More Information • Investment Workshops: • CDIAC, GFOA, GIOA, AFP • Financial Markets: • Bloomberg, Telerate, CNN, etc. • Programs, such as: • Master in Business Administration (MBA) • Certified Treasury Professional (CTP) • Chartered Financial Analyst (CFA)

More Related