Financial Policy

The Association’s fiscal year shall be January 1st to December 31st.

The Treasurer in consultation with the Executive Committee (the Executive) shall be responsible for drafting an annual operating budget for the Association.

The Association shall maintain two separate funds: Operating Fund, Reserve Fund (Unrestricted).

Operating Fund

The Operating Fund shall serve as the main operational fund for carrying out the day-to-day financial activities of the Association. Operational surpluses are normally transferred at year end to the Reserve Fund (Unrestricted). Conversely, any operational deficit shall be offset by a transfer from the Reserve Fund (Unrestricted).

This fund should maintain a minimum balance of $5,000 for cash flow purposes. Once the fund exceeds this amount, all further proceeds shall be transferred to the Reserve Fund (Unrestricted).

Reserve Fund (Unrestricted)

The Reserve Fund (Unrestricted) shall be established for the purpose of providing contingency funds, such as offsetting any annual deficits. Funds may also be used to offset cash flow shortfalls in the Operating Fund or for special projects and other activities that are not normally considered operational in nature.

Funds may only be transferred from the Reserve Fund (Unrestricted) on the approval of the Executive.

Annual interest income, generated as a result of the Fund’s investments, shall be disbursed in the following manner: one-hundred percent (100%) of all income shall be available for operational activities.

Investment Guidelines

Source of Investment Funds
From time to time, surpluses occur in the association’s operating account. These funds, as well as the Association’s cash assets, may be used for term investments, subject to formal approval of the Executive.

Investment Policy
ASAPA has established the practice that operational funds and other cash assets will be invested in securities of the following types:

a) Interest bearing accounts of Canadian chartered banks or approved credit unions;
b) Government of Canada treasury bills;
c) Other securities which are specifically authorized by the Executive of the Association.

The overriding mandate is that ASAPA funds are not to be placed at risk of loss in the class or type of investment selected.

There shall be no exposure to loss of the original investment. The Executive shall consider itself as trustee to all investment income.

Investment Criteria

a) Rate of Return – All funds shall be placed in interest bearing accounts, but maximizing rate of return shall at all times be secondary to minimizing risk exposure.
b) Investment Management – The Association may arrange placement of investment funds directly with its banker on authority of the Executive. Other investment houses may be nominated and/or authorized by the Executive for purposes of arranging investments. The Executive may also authorize the appointment of a professional investment counsellor.
c) Currency Determination – Investments may be placed in Canadian or U.S. dollars. Other foreign currency transactions must have prior approval from the Executive.
d) Independent Documentation – All investment and securities transactions must be supported by a confirmation of transaction, generated independently by the bank or investment house. The Treasurer has the responsibility of confirming to the Executive that documentation is current and complete in every respect.
e) Reporting on a Current Basis – The current investment portfolio will be reported at each regular meeting of the Executive Committee. In the event that there is no formal meeting, the investment report will be circulated by the Treasurer.
f) Term and Liquidity – All investments shall be of a form such that redemption is allowed, as a minimum, at least once per year, and preferably on one month’s notice.

Financial Policy Adopted: October 17, 2007; Revised Nov 14, 2013 AGM