Financial policies

Investment of Funds Policy

It shall be the responsibility of the Treasurer of the Corporation to devise an appropriate investment strategy for the Reserve Funds and to develop and operational plan to implement the Reserve Fund Policy. Any investment instruments with a locked-in maturity period of more than 12 months shall be approved by the Corporation's Board before implementation.

Enacted: April 25, 2013

Reserve Fund Policy

The UWSA shall establish and maintain reserve funds as follows:

Projects Reserve
Windup Reserve

Allocation

If any Reserve is below the required funding (described below) as at the Corporation's fiscal year end, special allocations equal to at least 75% of the earnings of the Corporation for the fiscal year shall be allocated to the deficient reserve funds. Preference shall be given to the Windup Reserve; allocations to the Projects Reserve shall occur only if the Windup Reserve is fully funded.

Projects reserve definition

This reserve shall exist to permit the board of directors to engage in special projects that are not capital in nature with a fixed term duration typically not to exceed one year. The reserve shall be funded by allocating 50% of earnings of the Corporation as at the Corporation's fiscal year end. The reserve shall be capped at 25% of the total expenses of the corporation as at the fiscal year end of the corporation. The reserve shall be maintained in a completely accessible manner. The board may make additional allocations to the Projects Reserve Fund at any time.

Windup reserve definition

This reserve shall exist to provide business continuity and severance obligations for the Corporation in the event of the windup of the Corporation. The size of the reserve shall be determined by the greater of:

the total Expenses of the Corporation as at the fiscal year end of the corporation; or
the salary, severance and other compensatory obligations to the staff of the Corporation as defined by the University of Waterloo Staff Employment policy 18.