Page 13 - City of Moreno Valley Invstment and Cash Management Program

INVESTMENT PROCESS

The investment process begins with the daily review of the bank statement. Each morning the incoming
cash activity is identified, coded and prepared for entry into the general ledger. The projected available
cash balance is compared to the scheduled disbursements, such as Accounts Payable or Payroll
disbursements to determine if there is a sufficient level of cash on hand to meet those requirements.
If the cash balance is not sufficient to cover the disbursements, funds are withdrawn from the LAIF
account. If there is cash in excess of the known disbursements that excess amount is deposited into
LAIF. Periodically the balances in the LAIF account will be compared to the Cash Flow Forecast to
determine if additional funds can be moved into the Long-term portfolio and invested into securities with
higher yields than LAIF or other short term money funds.

Daily Cash
Management
(bank)

Short-Term
Investments
(LAIF)

Long-Term
Investments
(Fund Managers)

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