2014-06-18 Special Meeting Budget

STRATEGIC POLICY – 2014/15 INVESTMENT POLICY


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 internal controls
will be subject to periodic reviews by Council’s Internal Audit function to verify compliance with the
Investment Policy and legislation.

The established processes will include monthly and quarterly reporting (including compliance
reporting), as well as an annual review of the Investment Policy.


Definitions
BBSW – Bank Bill Swap Rate – This is the daily calculation of the yields on bank bills of 1, 2, 3, 4,
5, and 6 month maturities used for the setting of financial arrangements.
Ethical Investment Principles – Investment in companies or industries that promote positive
approaches to environmental, social and corporate governance issues; or the avoidance of
investment in industries deemed harmful to health or the environment. These principles have been
recognised by the United Nations Principles for Responsible Investment. 1
Financial Institution is defined as an authorised deposit-taking institution within the meaning of
the Banking Act 1959 (Cwlth), Section 5.2
Investments are defined as arrangements that are undertaken or acquired for producing income
and apply only to the cash investments of Council.
Market Value of the portfolio is the book value of fixed term fixed interest deposits plus a market
value assessment of commercial paper, bank bills, and bonds or floating rate notes.
QIC – Queensland Investment Corporation.
QTC – Queensland Treasury Corporation.
UBS Bank Bill Index – widely considered to be the industry benchmark for short term cash fund
performance and is used by market participants as a means of comparing the returns generated by
the various cash funds available in the market.


RELEVANT LEGISLATION

Statutory Bodies Financial Arrangements Act 1982
Statutory Bodies Financial Arrangements Regulation 2007
Local Government Act 2009
Banking Act 1959 (Cwlth)




Version control:
    Version    Reason/ Trigger                    Change (Y/N)     Endorsed/ Reviewed by          Date

    1.1        Annual Review                      Y                Wayne Jensen                   02/06/2014

    1.0        Create new on de-amalgamation       Y               Wayne Jensen                   22/12/2013
               from Sunshine Coast Regional
               Council




1
  Further information on the United Nations Principles for Responsible Investment, including a schedule of Australian
signatories, can be obtained from the following website http://www.unpri.org/principles/
2
  For a list of authorised deposit taking institutions, refer to the website of the Australian Prudential Regulation
Authority: http://www.apra.gov.au/adi/.
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