2024 - Annual Investment Report to the City of South Bend Board of Finance

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ADMINISTRATION & FINANCE POLICIES Supplement 202— Investments The City shall invest excess cash in various investment vehicles as allowed by Indiana law.The City shall make all investments, in both Deposit and Investment Accounts,in accordance with the terms and limitations of Indiana Code 5-13-9.The current authorization for the City to engage in these investment activities comes from Ordinance No. 10993-23.The City's practice is to obtain authorization via an ordinance on an annual basis,so as to maintain the maximum investment flexibility under Indiana Code 5-13-9. Board of Finance The local Board of Finance (as defined in Indiana Code 5-13-7) will review the investment policy and will receive an investment report on an annual basis coincident with the Annual Meeting of the Board of Finance, held after the 1st Monday in January and before January 31st. Valuation of Investments Currently, the total amount invested is $200 million. On a monthly basis,the City's investment custodian (currently 1"Source) transfers any gain in market value over$200 million or direct dividends paid from investments into the City's depository bank account.This investment income is allocated using the procedures described in Supplement 203. The City will not track the current fair market value of investments on a monthly basis in DFO. Rather, the City's books will be adjusted for FMV of investments on an annual basis only. 27