2021-06-30 Special Meeting Agenda

SPECIAL MEETING AGENDA   30 JUNE 2021




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SPECIAL MEETING AGENDA                                                                 30 JUNE 2021

  INVESTMENT OF SURPLUS FUNDS POLICY

  Examples include:
  6     investment in private placements;
  °     a security that is not supported or priced by at least two approved brokers/securities dealers;
  °     sub investment grade (i.e., a lower than rating BBB- (Standard and Poor’s) or equivalent), and
        in most cases, BBB rated investments; and
  °     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 Financial Services Manager are authorised to invest funds
  at their discretion in investments consistent with this policy and legislation.
  The Financial Services Manager will report to Council for investment guidelines and oversight of
  investment activities for the purposes of this policy.
  Internal controls
  The Financial Services Manager 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;
  °     accounting and record keeping;
  °     evidence of quotes for each investment transaction;
  °     delegated authority to investment officers;
  °     compliance and oversight of investment parameters; and
  °     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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