Policies and Procedures

INTRODUCTION 
1.1 This policy is created under guidance issued by the Secretary of State for Communities and Local Government in accordance with the Local Government Act 2003. This policy has been adopted by Silk Willoughby Parish Council but acknowledges SLCC for the copyright of the template.

1.2 Silk Willoughby Parish Council acknowledges its responsibility to the community and the importance of prudently investing any reserves held by the council. 

1.3 Investments will be made in line with the Council’s financial procedures and observations or advice received for the Council’s internal and external advisors

1.4 The Council will ensure it has adequate, though not excessive cash resources or standby facilities to enable it at all times to have the level of funds available which are necessary for the achievement of its objectives.

OBJECTIVES 
2.1 The general policy objective of the Council is prudent investment of its balances. The Council’s investment priorities are: 
(i) Security of reserves and then 
(ii) Liquidity of investments 

2.2 The Council will aim to achieve the optimum return on its investments commensurate with proper levels of security and liquidity. 

INVESTMENT POLICY 
3.1 The Parish Council shall diversify its reserves between multiple UK banks and building societies, covered by the Financial Services Compensation Scheme and not partake in any stocks and shares. 

3.2 A significant percentage of the Council’s bulked reserves shall be placed on interest bearing term/notice deposits. 

3.3 To retain liquidity these shall be placed with phased end dates i.e. there will always be some maturing sooner than others. 

3.4 No one investment shall be for a period longer than 24 months. 

3.5 No investment shall be held with the council’s current bankers. 

3.6 Investments shall be decided and placed by the Full Council after being offered advice from the Responsible Financial Officer, having used due diligence including as a minimum finance search engines and ratings agencies. The actual movement of money shall be by the usual authorised signatories. 

3.7 The procedure for undertaking investments, considering the need for timely and speedy placing of deals shall be documented by the Responsible Financial Officer and approved by the Parish Council before any investments are placed. 

REVISION 
4.1 Any revisions to this policy shall be approved by the Full Council. 

4.2 The Parish Council shall review this policy annually and any changes be implemented prior to the commencement of the new financial year. Where no changes are proposed, Council shall note the policy. 

4.3 Notwithstanding 4.2 this policy shall be reviewed in the event the Bank of England increases its base rate by more than 1%