ORANGE : City Expected to OK Investment Policy
The City Council is expected to approve a new investment policy next week that would place stricter controls on its financial operations by following recommendations made in two recent audits.
The move follows the scandal allegedly masterminded by Newport Beach money manager Steven D. Wymer who reportedly bilked the city of more than $7 million in an investment scheme. In December, the Securities and Exchange Commission charged Wymer with swindling 14 cities out of at least $113 million.
A financial audit, completed by accounting firm KPMG Peat Marwick, and a legal audit by Phillips, Haglund, Haddan & Jeffers proposed a variety of changes to prevent future abuses.
Among them, the auditors suggested that the city attorney review new investment agreements, that the council perform annual reviews of investments, and that investment guidelines be provided to all brokers, dealers and banks who handle city securities.
City Manager Ron Thompson has recommended that the council draft new ordinances to implement the recommendations at its July 21 meeting.
The new plan is expected to give the council tighter control over its investments. In the past, the treasurer alone had been responsible for overseeing the city’s investment plans.
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