2019-06-28 Special Meeting Agenda

SPECIAL MEETING AGENDA   28 JUNE 2019




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SPECIAL MEETING AGENDA                                                                 28 JUNE 2019

 INVESTMENT OF SURPLUS FUNDS POLICY

 Examples include:
 e   investment in private placements;
 e   asecurity that is not supported or priced by at least two approved brokers/securities dealers;
 e   sub investment grade (i.e., a lower than rating BBB- (Standard and Poor's) or equivalent), and
     in most cases, BBB rated investments; and
 e   unrated securities.
 Return on investments
 The portfolio is expected to achieve a market average rate of return and take into account Council’s
 ethical investment appetite, risk tolerance, current interest rates, budget considerations, and the
 economic cycle. Any additional return target set by Council will also consider the risk limitations,
 ethical and prudent investment principles and cash flow characteristics identified within this policy.
 Comparison of performance
 For performance purposes, the portfolio will be compared to the Bloomberg AusBond Bank Bill Index
 and/or the Bank Bill Swap Reference Rate over a rolling one-year period. The benchmark target is
 to be set equal to or above the benchmark yield and consider the expected types of securities held
 in each portfolio. In comparing performance, the portfolio will be market valued and take into account
 all coupons, deposits and withdrawals to / from the portfolio.

 ROLES AND RESPONSIBILITIES
 Authorised personnel
 The Director Corporate Services and the Manager Financial Services are authorised to invest funds
 at their discretion in investments consistent with this policy and legislation.
 The Manager Financial Services will report to Council for investment guidelines and oversight of
 investment activities for the purposes of this policy.
 Internal controls
 The Manager Financial Services in consultation with the Director Corporate Services shall establish
 internal controls and processes that will ensure investment objectives are met and that the
 investment portfolios are protected from loss, theft or inappropriate use.
 The established processes will include monthly and quarterly reporting, as well as an annual review
 of the policy. The internal controls will address the following:
 e   control of collusion;
 e   accounting and record keeping;
 e   evidence of quotes for each investment transaction;
 e   delegated authority to investment officers;
 e   compliance and oversight of investment parameters; and
 e   reporting guidelines.
 The internal controls will be subject to periodic reviews by Council's Internal Audit function to verify
 compliance with the policy and legislation.

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