Approved by the Board of Directors: November 8, 1984
Approved by the General Membership: March 5, 1985
Article 1: Principles
(a) The investment of funds must be conducted in a manner that does not risk the financial stability of the Co-operative.
(b) Money earned on investments is to accrue to the benefit of the Co-operative as a whole and may not be allocated to individual members.
(c) When making investments, the Co-op shall consider the social purpose of the investments, as well as the risk and rate of return. Funds shall be invested in the co-operative sector whenever feasible and consistent with this policy.
(d) No funds shall be invested with institutions whose activities knowingly conflict with the goals and principles of the co-operative movement.
(e) No individual involved in the investment activity may profit from the use of co-operative funds
Article 2: Objectives
(a) To maximize the monies earned on surplus working capital and members' deposits within the limitations of the above principles.
(b) To apply money towards offsetting inflationary increases.
(c) To provide the funds necessary to carry out such capital projects (improvements and replacements) within the co-operative as may be necessary from to time.
(d) To provide the co-operative with adequate working capital to meet its operating expenses.
(e) To maintain sufficient reserves to meet any unforeseen major emergency.
Article 3: Responsibility and Accountability
(a) The Co-ordinator, or by delegation, the administrative staff shall maintain the necessary minimum balances in the chequing and savings (demand) accounts. They shall also make transfers of fund to other instruments according to the previously agreed decisions of the Investment Sub-committee (of the Finance Committee). Guiding decisions of the Sub-committee can be either specific or general. The staff shall keep current detailed records of all funds and investments and such information shall be summarized on each monthly financial statement. A detailed list of holdings shall be included with the financial statements each quarter.
(b)Investment decisions will be taken by the Investment Sub-committee of the Finance Committee. It shall have three members, one of whom shall be the Treasurer or his/her delegate and the other two of whom shall be elected by the Finance Committee. One of the three must be a Board member; all should be members of the Finance Committee.
(c)The Finance Committee is responsible to the Board for the work of the Investment Sub-committee and for the ongoing development and maintenance of the Investment Policy. The Finance Committee may deal with any problems that may arise concerning investment policy and make recommendations to the Board.
(d) The Board of Directors has final authority over the investment decisions but must keep within the bounds of the investment policy. The Treasurer or his/her delegate has the authority to make decisions in an emergency situation.
(e) In order to ensure that the Replacement Reserve is sufficient to fund necessary capital repairs and replacements, as well as meet, or exceed, CMHC Operating Agreement requirements, the interest earned on the Replacement Reserve shall accrue directly to the Reserve and shall not be treated as operating income. In setting each annual operating budget, the Board shall recommend and the members shall decide whether to recognize earnings on other investments and income for the purposes of determining housing charges.
(f) The Investment Policy, once established by the membership at a general meeting, can only be changed in the same way.