2017-06-29 Special Meeting Agenda

INVESTMENT OF SURPLUS FUNDS POLICY


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:
   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.


INVESTMENT PARAMETERS
Investable funds
For the purposes of this policy, investable funds are the moneys available for investment at any one
time and include Council’s bank account balance. Included in this balance is any moneys held by
Council on behalf of external parties (for example cash performance bonds).

Investable funds will be determined against the cash flow needs of Council following the adoption of
the annual budget.

Authorised investments
Without specific approval from Council or the Treasurer, investments are limited to those prescribed
by Section 6 of the Statutory Bodies Financial Arrangements Act 1982 for local governments with
Category 1 investment power, which include:
   deposits with a financial institution;
   interest bearing deposits;
   commercial paper;
   bank accepted/endorsed bank bills;
   bank negotiable certificates of deposit;
   short term bonds;
   floating rate notes;
   QIC Cash Fund; and
   QTC Capital Guaranteed Cash Fund, Debt Offset Facility, Fixed Rate Deposit (up to 12 months)
    and QTC Working Capital Facility.

Prohibited investments
This Policy prohibits any investment carried out for speculative purposes. The Manager Financial
Services may include a prohibited investments list within the Investment Guidelines.

The following investments are prohibited by this investment policy:
 derivative based instruments (excluding floating rate notes);
 principal only investments or securities that provide potentially nil or negative cash flow;
 stand-alone securities issued that have underlying futures, options, forward contracts and swaps
   of any kind; and
 securities issued in non-Australian dollars.




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