Treasury and Investment Management Best Practices
Investing Policy and Governance Best Practices
GFOA recommends that all governments establish a comprehensive written investment policy, which should be adopted by the governing body.
Investment Program for Public Funds
Diversifying the Investment Portfolio
GFOA recommends that state and local governments properly manage the risk in their portfolios to achieve their investment objectives and comply with their investment constraints.
Collateralizing Public Deposits
GFOA recommends the use of a written agreement with pledging requirements as protection for state or local government's deposits.
Government Relationships with Securities Dealers
Government investors should follow GFOA recommendations pertaining to selecting securities dealers for their approved vendor list, managing the relationships with the broker/dealers, and conducting investment transactions with them.
Investment and Management of Bond Proceeds
GFOA recommends that governments have an Investment Policy which takes into consideration all inherent risks, and which also includes specific policies for the investment of bond proceeds to ensure that legal and regulatory requirements are met, fair market value bids are received, and issuer objectives for various uses of proceeds are attained. This best practice is focused on the investment of bond proceeds. For best practices regarding a comprehensive Investment Policy see the reference list of GFOA best practices below.
Measuring Investment Performance Best Practices
Mark-to-Market Reporting for Public Investment Portfolios
GFOA recommends that state and local government officials responsible for investment portfolio reporting determine the market value of all securities in the portfolio on at least a quarterly basis. These values should be obtained from a reputable and independent source and disclosed to the governing body or other oversight body at least quarterly in a written report.
Monitoring the Value of Securities in Repurchase Agreements
Managing Market Risk in Investment Portfolios
Government investors should follow GFOA recommendations with respect to managing market risk.