Our School - Investment PolicySouth Yarra Primary School
- School Council has a responsibility to manage school funds and in doing so, has a responsibility to invest funds in a manner that generates the maximum interest revenue with institutions that represent low risk.
- To ensure maximum interest returns on low-risk investments.
- To ensure the cash flow needs of the school are not compromised by the investment of funds into inaccessible accounts.
- All grants and other payments from the Department of Education are paid into our school's individual 'at call' High Yield Investment Account.
- These funds, plus locally raised funds, are then transferred into the school's Official Account on a needs basis.
- School Council, after determining sufficient cash flow to meet the school's needs, must consider whether or not it should leave excess funds in the High Yield Investment Account, or seek other investment opportunities. The Finance sub-committee of school council will monitor and make recommendations regarding investment of targeted funds to school council.
- School Council must maintain a manual Investment Register for all investments other than the High Yield Investment Account. The register will detail date of lodgement, investment institution, account number, amount invested, deposits & withdrawals, and terms of investment including interest rate, maturity date and interest earned.
- When considering investment opportunities, school council can only invest funds in financial institutions regulated by the Australian Prudential Regulation Authority and are listed by them as an Authorised Deposit-taking Institution. School Council can only invest in cash management accounts, term deposit accounts, accepted or endorsed bills of exchange, or negotiable, convertible or transferable certificates of deposit.
- All investment details and changes to investments, including the 'roll over' of existing investments, must be approved and minuted by school council, must be reported to School Council at least annually must and authorised by the principal and a school council delegate.
- All investments will be made in the name of school council and be reported through CASES21.
- The cash-flow requirements of the school must be monitored to ensure that there are sufficient funds available to meet commitments.
- School Council must not deposit money directly into, or make payments directly from an investment account. All receipts and payments must be made via the Official Account with the exception of interest earned and paid directly into an investment account, funds deposited by Department directly into the High Yield Investment Account, and schools with ATO endorsement to operate a gift deductible trust fund (eg school library or building fund).
- This policy, plus investment levels, investment terms and types of investments are required to be formally minuted and reviewed by school council regularly.
THIS POLICY WAS LAST RATIFIED BY SCHOOL COUNCIL ON JUNE 21ST, 2016