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As a way to ensure fiduciary responsiblity, a government entity should include which of the following in its investment
policy?
* Why Include Permissible and Non-Permissible Investment Securities?
An investment policy outlines the guidelines and restrictions for managing an entity's investments, ensuring compliance with laws and protecting public funds.
Listing permissible (e.g., government bonds, treasury securities) and non-permissible investments ensures clarity about what the entity can and cannot invest in, helping to mitigate risk and maintain fiduciary responsibility.
* Why Other Options Are Incorrect:
A . Prices and performance of investment securities: This information is important for monitoring investments but does not belong in the policy itself.
C . Historical allocations of investment securities: Historical data informs decision-making but is not relevant to the rules governing investments.
D . Key and non-key investment security controls: While controls are critical, they are part of the implementation process, not the investment policy.
* Reference and Documents:
GAO Investment Policy Guidelines: Recommends specifying permissible investments to ensure fiduciary responsibility.
GFOA Best Practices in Investment Management: Emphasizes clear investment guidelines in the policy.