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III. DELEGATION OFA UTHORITYAND OVERSIGHT PROCEDURES 1. The responsibility for conducting investment transactions rests with the Clerk of the Circuit Court. The Clerk may delegate the responsibility for day-to-day investment decisions to deputy clerks. The Finance Director will provide investment information to the Clerk concerning investment decisions made by deputy clerks managing the investments. 2. An Investment Advisory Committee consisting of the Clerk of the Circuit Court, the Finance Director, the County Administrator or his designee and at least two citizens selected by the Clerk shall meet regularly (at least quarterly) to evaluate investment performance of the County's investment portfolio, to evaluate current and future liquidity needs and investment strategy, and to prepare reports for the Board of County Commissioners. The Committee will recommend appropriate investment policies and procedures for all investment activities carried out by the Clerk. The Committee will perform an annual review of those investment policies and procedures. 3. The Clerk may use professional money management to assist in the investment of County surplus funds consistent with this policy. If such management is employed they shall act in a co-fiduciary relationship with the Clerk to insure that ample liquidity is maintained to meet County cash flow requirements. Money managers are required to provide investment strategy reviews to the Investment Advisory Committee quarterly or more frequently if requested. Money managers shall provide portfolio valuations monthly or more frequently if requested. An outside consultant may be utilized to evaluate investment performance of outside money managers. Performance figures will be calculated net of all fees and commissions. The consultant will provide comparative performance analysis on money managers to the Investment Advisory Committee quarterly. Money managers' performance, calculated in accordance with the Chartered Financial Analysts (CFA) Institute's performance presentation standards, will be compared to standard benchmarks. IV. PRUDENCE The standard of prudence to be applied by the Clerk shall be the "Prudent Person Rule" which states, "Investments should be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived from the investment." The Prudent Person Rule shall be applied in the context of managing the overall portfolio. The Clerk, in accordance with Section 218.415 of the Florida Statutes and County procedures, will exercise due diligence. The Clerk will follow these policies and procedures. He will work with the Finance Director who will report to him any individual security's credit risk or market price change and recommend appropriate action be taken to control adverse developments. 2 15