A. The police pension board shall have exclusive control and management of the police pension fund, subject to this article. It shall make rules, not inconsistent with this article, for its government, the conduct of its proceedings and the management of the fund, and shall do all things necessary to carry out this article. It may compel witnesses to attend hearings, or produce records and papers, and testify with respect to applications for pensions, or on any matter connected with the fund, and any member of the board may administer oaths to such witnesses.

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B. The board may invest or reinvest, in the name of the board, that portion of the fund which in its judgment is available for investment in such interest-bearing securities as follows:

1. Bonds of the United States.

2. Federal housing insured mortgage bonds of the United States.

3. Bonds, debentures or other obligations issued by the federal land banks, the federal intermediate credit banks or the banks for cooperatives.

4. Any bonds on which the payment of interest and principal is guaranteed by the United States.

5. Bonds issued by any United States government instrumentality or federal agency that qualify and are acceptable as security for public funds of the United States government.

6. General obligation bonds of the state or of the counties, incorporated cities and towns and school districts.

7. Revenue bonds of the incorporated cities and towns of this state, the Arizona board of regents, the Arizona power authority or any other legally constituted state authority or agency authorized by law to issue revenue bonds, except revenue bonds for recreational purposes issued by cities and towns.

8. Bonds of agricultural improvement districts and agricultural improvement and power districts organized under the laws of this state when issued or guaranteed, with the approval of the secretary of the interior, by corporations operating a United States reclamation project within the state.

9. Bonds of incorporated cities or towns of this state issued under sections 48-595, 48-596, 48-597, 48-598, 48-599, 48-600, 48-601, 48-602, 48-603, 48-604, 48-605, 48-606, 48-607, 48-608, 48-609, 48-609.01 and 48-610.

10. First lien bonds of sanitary districts issued pursuant to Title 48, Chapter 14.

11. Registered warrants of the state, or registered county or school district warrants when offered as security for monies of the county or school district by which they are issued.

12. Interest-bearing savings accounts or certificates of deposit in banks doing business in this state whose accounts are insured by the federal deposit insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state.

13. Interest-bearing savings accounts or certificates of deposit in savings and loan associations doing business in this state whose accounts are insured by the federal savings and loan insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state.

14. Deposits placed in accordance with the procedures prescribed in Section 35-323.01.

C. The board shall cause an annual audit and report of the fund to be made by a certified public accountant, and shall also cause actuarial studies of the fund to be made periodically, but not less than once in each three years, by a qualified actuary who is a member of the society of actuaries. The actuary shall make specific recommendations as to the contributions to be made to the fund in accordance with section 9-923, subsection A, paragraph 10 in order to maintain the fund on an actuarially sound basis.