(a) The Treasurer of State will maintain internal controls to protect against the loss of public funds arising from:

1. (1) Negligence;
2. (2) Theft; or
3. (3) Misuse.

(b) These controls will include, but not be limited to:

1. (1) The use of third-party custody and safekeeping;
2. (2) The execution of all securities transactions on a delivery versus payment basis;
3. (3) The clear and limited delegation of investment authority;
4. (4) The separation of transaction authority from record keeping;
5. (5) Frequent reconciliation of the investment ledger with the general ledger;
6. (6) The use of objective criteria in selecting financial institutions and dealers authorized to provide investment services to the state; and
7. (7) The use of objective criteria in awarding investment purchases and sales to authorized financial institutions and dealers.

(c)

1. (1) The State Board of Finance shall:

   1. (A) Serve as the investment policy committee; and
   2. (B) Review and approve revisions to this policy.

2. (2) The board shall review this policy:

   1. (A) As often as necessary; and
   2. (B) No less than annually.