The goal of the investment policy is to preserve the association's cash while providing earnings to further its mission.
Scope of Investments
The investments are limited to savings accounts and Certificates of Deposit (CDs) with a maximum duration of two (2) years offered by F.D.I.C. insured banks. CDs may be purchased with varying maturity dates, a process known as laddering, to provide liquidity.
There is no limit on the amount placed in savings accounts so long as there is no penalty for withdrawals. Funds may be invested in CDs so long as the total funds available in association checking and savings accounts are not less than $5,000.
Authorization to Make Investments
Consistent with the association's bylaws, investment recommendations are made by the Audit and Finance Committee. If the association's treasurer concurs with a recommendation, the treasurer is authorized to implement it by virtue of this policy.
The treasurer is to make timely reports of any investments to the association's president and to include such action in reports submitted at meetings of the Board of Directors and the annual membership meeting.
Adopted by the NIU Annuitants Association Board of Directors, December 4, 2019.