Financial Management Practice Manual

FMPM 300: Policy

Investments

Intent

The intent of this policy is to set out the requirements regarding the management of surplus funds identified as available for investment.

Scope

Function

Responsibility of

Determination of risk profile of the University

Council

Identification of money available for investment

Director, Financial and Business Services

Establishment and review of investment advisory arrangements

Finance Committee

Establishment and review of:

investment guidelines; and

investment performance

Investment Sub-Committee

Approval to purchase and dispose of managed funds

Investment Sub-Committee

Approval to purchase and dispose of high risk or non-liquid investments

Finance Committee

Approval to purchase and dispose of other investments

Any one of:

Vice-Chancellor;

Executive Director, Finance and Resource Planning;

Director, Financial and Business Services; or

Deputy Director, Financial and Business Services

Safe custody of financial instruments and related documentation

Director, Financial and Business Services

Maintenance of a register of investments

Director, Financial and Business Services

Definitions

Investment

Restricted Funds

Policy

Requirements

  • The Director, Financial and Business Services must identify all money surplus to the University's operating requirements and ensure that money is invested in accordance with this Policy.

  • Any arrangement with an investment adviser external to the University must be subject to the approval of the Finance Committee and be periodically reviewed.

  • Investment decisions relating to the purchase and disposal of managed funds are approved by Investment Sub-Committee.

  • Finance Committee must approve the purchase and disposal of high risk or non-liquid investments.

  • Council must determine the risk profile of the University.

  • The purchase and disposal of investments, other than high risk or non-liquid investments, may be approved by any of the following officers:

    • Vice-Chancellor;

    • Executive Director, Finance and Resource Planning;

    • Director, Financial and Business Services; or

    • Deputy Director, Financial and Business Services.

  • Delegation must be exercised within the authorised limits set out in FMPM 302: Authorised Limits – Investments.

  • Any investment arrangements approved under the preceding requirements, or entered into directly by the University, must contain the following conditions with respect to all investment activities:

    • investments to be purchased/held must be authorised under the University's legislative requirements and contractual obligations and be in accordance with any trust or other conditions associated with the University's custody of the money ;

    • be in accordance with the investment guidelines as determined by the Investment Sub-Committee (refer FMPM 301: Procedure - Investments).

    • performance targets must be established;

    • reporting against the investment guidelines and performance targets must be provided on a timely basis to Investment Sub-Committee;

    • information on investment activities must be readily available; and

    • all correspondence regarding investment activities must be addressed to the Director, Financial and Business Services.

  • All Restricted Funds must be held in a separate investment common pool and invested in accordance with this Policy (refer FMPM 510: Policy - Internal Interest Distribution).

  • The Director, Financial and Business Services must provide quarterly reports on all investment activities to the Finance Committee.

  • The Director, Financial and Business Services is responsible for:

    • maintaining a register of investments containing sufficient information to:

      • identify and locate each investment;

      • determine the amount and timing of associated income; and

      • allow calculation of income in accordance with the approved accounting policy.

    • the safe custody, security and records of the financial instruments and other documents evidencing that title of an investment has been issued.

  • Officers are to avoid any transaction that might harm confidence in the University.Investment Officers shall refrain from personal activities that would conflict with the proper execution and management of the University’s investment portfolio.This includes activities that would impair the Investment Officer’s ability to make impartial decisions.

  • The Investment Policies and Procedures are to be reviewed and re-approved annually in order to reassess the risk associated with changes in the market and the University.

  • Clear criteria for the appointment of brokers and/or dealers will be established based on qualifications, credit rating, market capitalisation, reputation, references and capability to execute transactions.

  • Speculative and related party activities that compromise the integrity of the University and/or the investment portfolio must be excluded and prohibited.

  • Any breach of the Investment Policy is to be reported to the Executive Director, Finance and Resource Planning and rectified within 24 hours of the breach occurring.The breach will be reported to the Investment Sub-Committee at the next available meeting.

Related documents, legislation or JCU Statutes

Statutory Bodies Financial Arrangements Act 1982 Part 6 Investment Powers (s42 – s52, s59)

Financial Accountability Act 2009 (S 64)

For enquiries in relation to this FMPM Policy please contact investments@jcu.edu.au

Approval Details

Policy sponsor:

Executive Director, Finance and Resource Planning

Approval authority:

Finance Committee

Version no:

13-01

Date for next review:

04/2014

Modification History

Version no.

Approval date

Date notification sent by Approval Authority to policy@jcu.edu.au

Implementation date

Details

13-01

11/4/13

11/04/13

11-01

18/08/2011

18/08/2011

Finance Committee (6/11)

07-01

08/03/2007

03/04/2007

01-1

12/2001

12/2001

Susan Kinobe last updated this page on 1 May 2013.