Committee recommends small edits to city investment policy, including CAFR name change

City staff told the Financial Review Committee on Oct. 25 that the city’s annual investment policy review found no exceptions but included several recommended edits and clarifications.

Staff said the city is adjusting the review schedule so an updated investment policy will take effect Jan. 1. The auditors recommended renaming the comprehensive annual financial report — previously called the CAFR — to the annual comprehensive financial report, or ACFR, citing a recent GASB statement and noting the prior acronym can be problematic in pronunciation in some languages. Staff also recommended adding the finance manager as an authorized approver for investment transactions because the position is new to the organizational chart.

During questions, staff clarified that all city funds are pooled for investment purposes and tracked separately in the accounting system, but the city’s irrevocable section 115 trust is governed by different rules and is not subject to the full government investment guidelines. The committee discussed those distinctions and confirmed the recommendation would not change how the section 115 trust is treated.

A committee member moved and the committee seconded a motion to make the small edits described in staff’s report and forward the investment policy to the city council for final action. The motion passed on a recorded vote of 3-0-2 with Member Federico and Chair Mescal absent.

The edits will go to the City Council at its Nov. 1 meeting, per staff.