Laserfiche WebLink
I <br />To the City Council and Citizens of the City of Orono <br />May 29. 1996 <br />C ash Management <br />Cash temporarily idle during the year was invested in demand deposits, money market funds, obligations <br />of federal agencies, the U.S. Treasury, obligations of local governmental units, the State of Minnesota, <br />repurchase agreements, bankers’ acceptances, and commercial paper. The City's investment objective as <br />stated in the investment policy is to first ensure the preservation of capital in the overall portfolio, second <br />to maximize yield while matching maturity dates with expendimre needs, and thira to diversity the <br />investment portfolio by financial institution, government agency, or by the corporation in the case of <br />commercial paper to reduce the exposure to risk of loss. At December 31, 1995, the City had an <br />investment portfolio of $9,832,592, at cost, (exclusive of the assets held by deferred compensation <br />trustees), diversified as shown in the following table; <br />Type of Investment Cost Percent <br />Investment Pool - Money Market Funds $14,171 0.14% <br />Certificates of Deposit 278.718 2.84 <br />U.S. Federal Agencies 5.767.100 58.65 <br />U.S. Treasury Obligations 398,938 4.06 <br />City of Goodview, Minnesota 50,000 0.51 <br />State of Minnesota 235,000 2.39 <br />Commercial Paper 3,088,665 31.41 <br />$9,832,592 100.00% <br />For the year ended December 31, 1995, the City had cash and investment interest earnings of $456,382, <br />at an average yield of 6.03%. <br />R isk Management <br />The City participates in the liability, property, and workers' compensation programs sponsored by the <br />League of Minnesota Cities Insurance Trust. In addition, the City appoints an agent of record to assist with <br />the administration, loss prevention, and risk management. <br />Other Information <br />Independent Audit <br />Minnesota State Statutes require that the City have an annual audit performed by a certified public <br />accountant or the State Auditor. The City appointed the certified public accounting firm of Malloy, <br />Montague, Karnowski, Radosevich & Co., P.A., to perform the audit for the year ended December 31, <br />1995. The Independent Auditor's Report on the general purpose financial statements is included in the <br />Financial Section of this report. <br />-13-