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A. The investment manager shall prepare and/or maintain individual records of all investments to include purchase and sales tickets, safekeeping receipts, prospectuses if applicable, maturity or call notices and amortization schedules. The investment manager shall report to the borough as follows:

1. Within 15 days of the end of a monthly period, monthly statements listing:

a. All cash and securities in the funds and their respective cost and market values in U.S. dollars as of the close of business on the last business day of each month;

b. A chronological schedule of each purchase and sale transaction for the funds during the month; and

c. Transactions resulting in realized capital gains or losses in U.S. dollars, including all securities purchased or sold prior to maturity;

2. Within 15 days of the end of a quarterly accounting period, quarterly statements providing a narrative analysis of past quarter activity with an evaluation of performance as it relates to both management style and market conditions, and the proposed approach to the bond market for the next period;

3. Within 30 days of the end of the annual accounting period (June 30th), an annual report summarizing the previous 12 months’ investment activities and describing the current composition of the investment portfolio including current yield and any unrealized gains or losses;

4. The borough shall have full access to, the right of inspection of, and the right to make extracts from any records generated or held by the investment manager or any custodial agent reporting to the investment manager, to the extent allowed by state and federal law.

B. All investment transactions must be accounted for on an accrual basis in accordance with generally accepted accounting practices.

C. Premiums and discounts on the purchase of debt securities must be amortized under the effective interest method over the life of the securities.

D. All short-term and long-term reserve investments, although in physically separate accounts, must be treated as a common investment pool for reporting purposes. As such, the pool shall be an asset of the general fund and investment income of the pool shall be distributed on a monthly basis.

E. There shall be an annual investment performance audit of the operational contract between the borough and any agent of the borough employed or contracted to invest public funds on behalf of the borough. The performance audit shall be conducted by an unrelated third party or by the custodian of the borough’s investment securities. (Ord. 07-08-164 § 4)