Policy – Financial investment

Purpose

The purpose of this policy is to direct the use of investment funds of the Australasian College for Infection Prevention and Control (ACIPC) and determine future financial planning strategies to ensure the College is able to maintain its operating budget and create growth.

Scope

This policy applies to, and is binding on, all members and people employed by or representing the College in any capacity, including volunteers, employees, contractors and consultants (hereafter called ‘members and staff’) who are employed by, or undertake activities on behalf of, the College.

Policy statement

Financial investment goals

Manage the cash assets surplus to current operating expenses in order to maximise the earnings of such assets, whilst retaining security and minimising investment risk.

Develop and maintain the ACIPC Investment Plan in conjunction with the chair of the finanace and audit sub-committee and nominated executive council (EC) members. The investment plan should ensure that:

• ACIPC’s funds are utilised to achieve a balanced operating budget;
• ACIPC creates capital growth and generates income;
• there will be access to cash to cover current liabilities, and to establish new projects approved by the EC;
• ACIPC will have access to cash for unforeseen expenses.

ACIPC’s Financial Investment Policy states that the investment plan must conform to the following principles:

• Priorities set in the strategic business plan must be adhered to.
• Investments are to be made with low to medium risk ventures that provide for security of capital over the medium to long term.
• ACIPC will only invest with reputable, established, proven financial institutions.

Governance

The ACIPC EC is responsible for ensuring that the College operates within a responsible, sustainable financial framework and has adequate resources to carry out its work.

The EC delegates the finance and audit sub-committee to provide oversight, management, stewardship of assets and investment recommendations. This sub-committee is to be provided with advice through the investment advisory committee, which will report to the EC through the chair of the finance and audit sub-committee.

The executive management team (EMT) then, in consultation with the finance and audit sub-committee and independent advisory committee, recommend an investment plan portfolio for consideration by the EC in the context of the annual strategic business plan. The investment plan must conform to the principles set out in the ACIPC investment policy.

The EC, through the investment advisory committee, will seek advice from at least one independent investment consultant on relevant investment opportunities to maintain and grow the College’s portfolio of investments.

Risk profile

All investments carry some risk, but the level of risk depends on which investments are chosen. ACIPC’s investment plan will be developed to conform with a low to medium level of risk, with investments that provide security of capital over the medium to long term.

The investment plan will detail the risk tolerance for the investment portfolio and determine the appropriate investment portfolio. The investment portfolio may include a mix of equities, bonds, property, pooled funds and cash.

Performance and reviewing

The College president, chair of the finance and audit sub-committee (or assigned delegate), and chair of the independent advisory committee will meet at least annually with the independent investment consultant to discuss the performance of the investment portfolio. They will then report to the finance and audit sub-committee, who will in turn report to the EC.

Through the investment advisory committee, the chair of the finance and audit sub-committee will receive information about and keep track of all investments, and report on progress to the EC. Financial reports will be tabled at EC meetings.

The investment plan will be reviewed every six months by the investment advisory committee as part of the strategic planning for the business plan, and results will be reported as part of the annual general meeting report to members.