HomeMy WebLinkAbout2021-PAD-032 Investment
COUNTY OF NEWELL - POLICY HANDBOOK
POLICY NO: 2021-PAD-032
TITLE: INVESTMENT
ADOPTED: May 6, 2021 (C-163/21) SUPERCEDES NO: 2019-PAD-032
TO BE
REVIEWED:
PAGE NO: 1 of 4
POLICY STATEMENT:
The County of Newell will invest public funds in a prudent manner that provides the
highest return with the maximum security while meeting daily cash flow needs and
conforming to all provincial statutes and regulations governing the investment of
municipal funds.
PURPOSE AND SCOPE:
The purpose of this policy is to establish and maintain practices and procedures for
investment of funds held by the County. This investment policy applies to all
investment transactions involving the financial assets of the County and must be
applied by any party managing County investments.
OBJECTIVES:
The primary objectives of the County’s investment activities are preservation of
capital, liquidity, risk mitigation and investment returns.
Preservation of Capital
The County recognizes its fiduciary responsibility for the stewardship of public
funds with which it has been entrusted. Therefore, its foremost investment
objective is to ensure the preservation of capital.
Liquidity
The investment portfolio will remain sufficiently liquid to enable the County to
meet operating requirements which might be reasonably anticipated. The
portfolio should consist largely of securities with active secondary or resale
markets.
Risk Mitigation
The County will manage risk by ensuring there is sufficient diversification among
the assets in its investment portfolios. Additional risk control is provided by the
constraints on the permitted investments.
Investment Returns
The County will seek to maximize the rate of return earned on its investments
while following prudent investment principles.
COUNTY OF NEWELL - POLICY HANDBOOK
POLICY NO: 2021-PAD-032
TITLE: INVESTMENT
ADOPTED: May 6, 2021 (C-163/21) SUPERCEDES NO: 2019-PAD-032
TO BE
REVIEWED:
PAGE NO: 2 of 4
STANDARDS OF CARE:
Prudence
Investments shall be made with judgment and care under circumstances then
prevailing. Investment officials exercising due diligence and acting in accordance
with procedures consistent with this investment policy shall be relieved of personal
responsibility for market price changes or the credit risk of a certain investment
provided that appropriate action is taken to control adverse developments and
that such developments are reported on a timely basis.
Conflict of Interest
Investment officials shall refrain from personal business transactions that could
conflict with the proper execution of their responsibilities, or which may impair
their ability to make impartial investment decisions. Investment officials shall
disclose to the Chief Administrative Officer any material interests in financial
institutions that conduct business with the County, and they shall separate their
personal investment transactions from those of the County.
Authority and Internal Control
The Chief Administrative Officer is ultimately responsible and accountable for the
control, management, and administration of the County’s investments in
accordance with the investment policy approved by Council. The Chief
Administrative Officer may delegate this responsibility. The Chief Administrative
Officer or Appointed Delegate shall establish appropriate guidelines, procedures,
and internal controls;
a) To ensure the achievement of the objectives identified within this policy.
b) For authorizing officers and employees to engage in investment activities.
c) For purchasing and selling investments.
d) For custody and safekeeping of investments.
e) For the accounting and reporting of investment activities.
Where external resources have been engaged to provide investment services,
they are required to follow the CFA Institute Code of Ethics and Standards of
Professional Conduct and provide certification to the Manager of Finance that the
investments meet the terms of this investment policy before investments are
made.
COUNTY OF NEWELL - POLICY HANDBOOK
POLICY NO: 2021-PAD-032
TITLE: INVESTMENT
ADOPTED: May 6, 2021 (C-163/21) SUPERCEDES NO: 2019-PAD-032
TO BE
REVIEWED:
PAGE NO: 3 of 4
PERMITTED INVESTMENTS:
The County only invests in the securities which are Authorized Investments as defined
and described by sections 250(1) and (2) of the Municipal Government Act (MGA)
RSA 2000 Chapter M-26 (as amended).
Schedule I and Schedule II below identify the securities that the Chief Administrative
Officer or Appointed Delegate can purchase on behalf of and in the name of the
County:
COUNTY OF NEWELL - POLICY HANDBOOK
POLICY NO: 2021-PAD-032
TITLE: INVESTMENT
ADOPTED: May 6, 2021 (C-163/21) SUPERCEDES NO: 2019-PAD-032
TO BE
REVIEWED:
PAGE NO: 4 of 4
Institutions not meeting the minimum required rating, or its equivalent, can be
invested in to the extent that principal and interest are covered by the Canadian
Deposit Insurance Corporation.
The maturity dates of investments in the long-term portfolio will be diversified to
minimize effects of fluctuations in any given part of the yield curve and to maintain
liquidity for projects anticipated in the County’s long-term financial plans.
The average duration for the long-term portfolio will not exceed 6 years.
PROCUREMENT AND CUSTODY:
The Chief Administrative Officer or Appointed Delegate shall ensure that:
1. The method of procurement achieves and maximizes the objectives of this
policy. Investment activities may be undertaken utilizing internal resources or
external (contract) resources or a combination of internal and external
resources. The utilization of external resources must be approved by Council.
2. All investment certificates issued to the County of Newell are in the name of
or held in the name of the County of Newell.
3. Negotiable securities are held in one of two ways:
a. In a safekeeping compartment with the County’s banker.
b. Held by a third party custodian in the name of the County and evidenced
by safekeeping receipts and monthly statements.
4. Non-negotiable investment certificates are maintained in an appropriate
investment file at the County Office.
5. All security transactions are conducted on a delivery-versus-payment basis.
DEFINITIONS
Appointed Delegate: For the purpose of this policy, designates of the Chief
Administrative Officer include the Director of Corporate Services, the Controller, or
any other employee or contracted resource specifically assigned by the Chief
Administrative Officer.