|Approved by||University Council, 13 September 2016|
|Date Procedure Took Effect||13 September 2016|
|Last Approved Revision||12 September 2017|
|Sponsor||Chief Financial Officer|
|Responsible Officer||Treasury Accountant|
|Review Date||12 September 2022|
To provide guidance to staff on the application of the University’s Investment Policy.
This procedure applies to the University and its subsidiaries.
- Working Capital - Cash available for day to day operations
- Bank Term Deposits - Funds invested with a registered bank for a specified term
1. All University of Otago investments must comply with the University of Otago Investment Policy.
2. Accurate cash flow forecasts must be maintained to ensure sufficient levels of liquidity to meet both planned and unforeseen cash requirements, and to assist borrowing decisions.
3. As regards investment of working capital:
(a) Any investments of University working capital in bank term deposits up to and including 1 year must be approved by any one of the Chief Financial Officer, the Financial Controller or the Treasury Accountant.
(b) Any investments of University working capital in bank term deposits in excess of 1 year must be proposed by one of the Financial Controller or the Treasury Accountant and approved by the Chief Financial Officer, Vice-Chancellor or Deputy Vice-Chancellor on the Request for CFO, VC or DVC approval and signature form.
(c) Investments held in working capital should be managed so that the balance held matches future expected outgoings as far as practicable with surplus funds being invested in term deposits.
(d) The total exposure (working capital plus term deposits) to banks listed under Tier 2 investments in the University Investment Policy (Clause 4 (f)) should be no more than 5% of the University total cash held at any one point in time.
(e) Investment instructions provided to the banks must follow the format on the Term Deposit Instructions Form
4. Term deposit rates should be sought from the registered banks meeting the ratings set out in the Investment Policy and the best rate shall be accepted for the University within the framework for investment in bank deposits as set out in Clause 4 of the Investment Policy.
5. To ensure appropriate separation of duties, staff members placing funds on deposit should not be responsible for reconciliations of bank funds on hand.
Related Policies, Procedures and Forms
- Investment Policy
- Request for CFO, VC or DVC approval and signature form
- University of Otago Term Deposit Instructions form
Contact for Further Information
If you have any queries concerning this Policy or require further information, contact the Treasury Accountant on firstname.lastname@example.org