1 Purpose and scope
This policy governs appraisal of investments of funds surplus to Association needs and management of reserves, preserving its ability to meet obligations. It does not itself authorise an investment, risk limit or use of restricted funds. Each decision requires the prescribed approvals.(1)
2 Identifying surplus funds
Before classifying funds as surplus, the Treasurer forecasts liquidity, obligations, programmes, donor restrictions and emergency needs. A justified reserve is proposed for Board approval within the budget, without assuming a fixed percentage. The entire bank balance is not necessarily available for investment.
3 Investment appraisal
The memorandum covers purpose, amount, instrument, licensed provider, time horizon, liquidity, expected return, fees, loss exposure and compatibility with Association purposes. Counterparty, concentration, market and conflict-of-interest risks are assessed, and a lower-risk alternative compared.
The competent-authority application is submitted at least 15 days before the investment begins, with Board approval and all permits and information. Execution starts only after actual approval; expiry of an assessment period is not acceptance. Instruments and exceptions in Article 16 are observed without extending them by analogy.(2)
4 Execution and custody
Execution is limited to approved terms through Association accounts, regulated channels and documented authorised persons. Ownership statements, contracts and notices are retained and independently reconciled to the register. Borrowing for speculation, guarantees or pledges require a valid basis and specific approvals.
5 Monitoring and escalation
The Treasurer periodically reviews performance, value, liquidity and compliance with the decision, escalating material losses, risk changes or conflicts to the Board. Exit or reinvestment is approved within the original authorisation; material changes require fresh approval.
6 Reporting
Annual reports to the competent authority cover investments, returns and their use for Association purposes. Accounts disclose investments under accounting standards; decisions, approvals, ownership and performance records are retained. Reporting does not guarantee future returns or turn forecasts into realised income.
References in the approved document
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The Association’s approved 2026 Articles of Association, Articles 20 and 62. This document establishes internal implementation controls without changing higher legal powers or requirements.
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Cabinet Resolution No. 5 of 2025, executive regulations for public-benefit institutions, Article 16 on prior approval and investments. This document establishes internal implementation controls without changing higher legal powers or requirements.