Treasury management is the management of all CILIP's cash, money market and capital market transactions in connection with its cash resources and financing requirements and control of the associated risks.
This statement sets out CILIP's policy concerning investment of surplus cash and forms part of the financial rules and regulations.
Objectives and Attitude to Risk
All treasury management involves risks and potential rewards. CILIP's objectives are
a) to maximise the total return from long-term investments, both income and capital growth, without taking undue risk, and
b) to obtain the best interest rates available on short-term cash surpluses, without risking the capital.
Ethical Investments
The trustees will not invest directly in investments which conflict with CILIP's aims and objectives as set out in the Royal Charter.
Availability of Funds
a) Funds held in anticipation of immediate expenditure (ie working capital and designated funds for project expenditure in the next two years) should not be held in investments where the capital is at risk
b) Funds which are expected to be available for more than two years may be put into long-term investments to provide both income and capital growth.
c) In determining availability of funds, a forecast will be prepared annually, showing the effect of the operating budget and other planned expenditure on cash levels
Investment of surplus cash
Surplus cash held for working capital or project expenditure will be transferred to the deposit account with Bank of Scotland.
Long-term investments
Funds available for investment long-term will be invested with appropriate External Fund Managers, who will comply with CILIP's investment objectives. Decisions on which managers will be used will be made by the Treasurer in conjunction with the Director of Finance.
Review and Reporting
The Director of Finance will include a summary of cash and investments in the management accounts reported to each Executive Board meeting, with a commentary on any major changes to long-term investments or the short-term cash position.
Delegations
A schedule of delegated authorities in relation to treasury management and investments is set out in Appendix 1.
Appendix 1
Schedule of Delegations for Treasury Management and Investment Policy
|
Delegated Power |
Exercised By |
|
Approval and review of treasury management and investment policy |
Executive Board and Council |
|
Decisions concerning selection of external fund managers |
Treasurer in liaison with Director of Finance |
|
Authorisation of instructions to selected external fund managers |
Director of Finance in consultation with Treasurer |
|
Authorisation of Cash Transfers between accounts |
Director of Finance or Senior Financial Accountant |
|
Approval to open new bank accounts |
Treasurer |
Appendix 2
Approved Fund Managers and Investment Funds
M&G Charifund
CCLA COIF Income Shares
Appendix 3
Approved Bank Accounts
Bank of Scotland Current Account
Bank of Scotland Deposit Account
CCLA COIF Deposit Accounts