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346 • 3 226.005 _ GOVERNMENT CODE Title 10 (k) A written •copy of the investment policy shall be presented to any person offerinc, to engage in an investment transaction with an investing entity., For purposes of this subsection, a business organization includes investment pools. Nothing in this subsection relieves the investing entity of'the responsibility for monitoring the investments made by the investing entity to determine that they are in compliance with the investment policy. The qualified representative of the business organization offering to engage in an investment trap-saction with an investing entity shall execute a written instrument in a form acceptable. to the investing entity and the business organization substantially to the effect'that the business organization has: (1) received and reviewed the investment policy of the. entity; and (2) acknowledged that the business organization has implemented reason -. able procedures and controls in an effort to preclude investment transactions conducted between the enrity'and the organization that are not authorized bv-. the entity's investment policy, except to the extent that this authorization is .. dependent on an analysis of the makeup of the entity's entire portfolio or requires an interpretation of subjective investment standards. (1) The investment officer of an entity may not acquire or otherwise obtain ..any authorized investment described in the investment policy of the investing entity from a person who has not delivered to the entity_ the instrument required by Subsection (k). (m) An investing entity, in conjunction with its annual financial audit, shall perform - a compliance audit of management controls on investments and adherence to the entity's established investment policies. State agencies shall report the results of -the audit performed under this subsection to the state auditor. The state auditor shall compile the results of reports received under this subsection and annually report those results to the legislative audit commit- tee. Amended by Acts 1995, 74th Leg., ch. 402, § 1, eff. Sept, 1, 1993; Acts 1997, 75th Leg., ch. `683, § 1, eff. Sept. 1, 1997: Acts 1997, 75th Leg., ch. 1421, § 3, eff. Sept. 1, 19,07. Historical and Acts 1997, 75th Leg., eh. 685, rewrote subsec. (h). which previously read: "An officer or employee of a commission cre- ated under Chapter 391. Local Government Code. is ineligible to be designated as an invest- ment officer under Subsection (f) ." Acts 1997. 75th Leg., eh. 1421. in subscc. (b), in subd. (4), in par. (C), substituted -dollar- weighted average "for "average dollar- weiLht- cd", added pars. (D) and W. and made. ocher nonsubstantive changes: in sub9cc. (d), inserted "or group of. funds "; in subsec. (e), inserted "The governing body shall adopt a written in- strument by rule, order. ordinance. or resolu- tion :stating that it has reviewed the investment policy and investment strategies and that the r written instrument so adopted shall record any e Statutory Notes changes made to either the investment policy or investment stratcgies.": in subsee. M. deleted ". Unless otherwise authorized by law, a person may not deposit, withdraw, invest. transfer, or manage in any other manner funds of a state agency, local government. or investment pool without express wt men authority of the govern- ing body, chief executive offieer.•or chief finan- cial officer of the state agency, local gover- ment, or investment pool. deleted "deposit. withdraw; deleted transfer. or manage and inserted "In the adrainistrarion of the duties of an investment officer. the person des- ignated as investment officer shall exercise the judzment and care. under prevailing circum- stances. that a prudent person would exercise in' the management of the person's own affairs. Unlcss authorized by law, a person may not r