Columbus Compensation Association Investment Policy


This statement of investment policy was adopted by the Board of the Columbus Compensation Association on 4/17/2013, to provide for the creation of, and guidelines for the management of, various funds held by the organization. These policies supersede any and all prior actions regarding investment policies. For the purposes of managing investment risk and to optimize investment returns within acceptable risk parameters, the following funds will be created and held as separate investment pools.

  1. Operating Fund
  2. Investment Fund


I. The following procedures will be followed to ensure the investment policy statement is consistent with the mission of the Columbus Compensation Association and accurately reflects current financial conditions:

  1. The Treasurer will review the existing investment policy annually during the 1st quarter
  2. The Board shall review this investment policy annually during one of the 1st quarter meetings.
  3. The Treasurer will send the investment policy to the current financial advisor.
  4. If changes are recommended, the Treasurer will update the policy and the Board will vote to approve the policy.

II. The following procedures will be used to determine the dollar amounts to be placed in the each of the various funds.

  1. The Treasurer will recommend the allocation of dollars for the Operating fund and the Investment fund.
  2. The Board will review the budgeted expenses and revenues for the year and vote on the allocation of Operating and Investment funds.

Delegation of Authority

The Treasurer is responsible for directing and monitoring the investment management of the various fund assets on behalf of the Columbus Compensation Association As such, the Treasurer is authorized to delegate certain responsibilities to professional experts in various fields. These include, but are not limited to Investment Management Consultant, Investment Manager, Custodian, and additional specialists. It is anticipated that the services of a registered investment manager may be sought to manage portions of the Investment fund. The following procedure shall be followed to engage a new or replace a current investment manager:

  1. The Treasurer will recommend the hiring or replacing of an investment manager to the Board.
  2. The Treasurer and the Board will nominate prospective candidates and send a Request for Proposal to each candidate.
  3. The Treasurer will review proposals and interview candidates to determine appropriate investment manager(s).
  4. The Treasurer will make the hiring recommendation to the Board, who shall have the final approval.

Operating Fund

The purpose of the Operating Fund is to provide sufficient cash to meet the day-to-day financial obligations of The Columbus Compensation Association in a timely manner.

The investment objectives of the Operating Fund are:

  1. Preservation of Capital
  2. Liquidity
  3. To optimize the investment return within the constraints above

Investment Guidelines

The President and Treasurer, if authorized by the Board will invest the Columbus Compensation Association Operating Fund as follows:

  1. Checking Account (optimized to have the best cost/benefit ratio)
  2. Money Market funds (if interest rates provide greater than 2% return)

Withdrawal of Cash

In order to provide security of funds, the following guidelines will be applied to the checking account and any money market accounts:

  1. Access for withdrawal of cash at ATM’s or Branch offices will not be permitted
  2. Payments for services will be completed via automated banking transactions
  3. No paper checks will be purchased and will not be utilized
  4. Access to Debit card for purchases of meeting materials, travel expenses and meeting door prizes will be available to the Treasurer and President
  5. Access to make all other payments will be limited to Treasurer
  6. Any payments over $2,000 must have Treasurer and President approval


The maturities on investments for the Operating Fund shall be 6 months or less.


The Executive Director or his/her designee shall prepare the following reports for presentation on at least a quarterly basis to the Board;

  1. Schedule of investments
  2. Interest income year to date

Long-term Reserve Fund

Purpose of Long-term Reserve Fund

The purpose of the Long-term Reserve Fund is to provide secure long-term funding for the mission of the Columbus Compensation Association. The assets of the Long-term Reserve Fund shall be managed in such a way as to facilitate the organization’s goals and objectives as outlined by the Board. Expenditure of the principal is board designated. Also, at the discretion of the Board, up to 100% of the yearly total return may be utilized for program expenses.

Investment Objectives

In order to meet its needs, the investment strategy of the Long-term Reserve Fund is to emphasize total return; that is, the aggregate return from dividend and interest income. Specifically, the primary objective in the investment management of the Long-term Reserve Fund shall be:

  1. Long-term growth of capital – To emphasize the Long-term growth of principal while avoiding excessive risk. Short-term volatility consistent with the volatility of a comparable market index is anticipated, though management should strive to contain it.
  2. Preservation of purchasing power – To achieve returns in excess of the rate of inflation plus spending over the investment time horizon in order to preserve purchasing power of agency and Trust assets. Risk control is an important element in the investment of Trust assets.

Investment Guidelines

General Principles

Investments shall be made solely in the interest of the Columbus Compensation Association and Long-term Reserve Fund.

The assets shall be invested with care, skill, prudence, and diligence under the circumstances then prevailing that a prudent investor acting in like capacity and familiar with such matters would use in the investment of a like fund.

Investment of these funds shall be so diversified as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.

The Columbus Compensation Association may employ one or more investment managers of varying styles and philosophies to attain the Fund’s objectives.

Cash is to be employed productively at all times by investment in Short-term cash equivalents to provide safety, liquidity and return.

Withdrawal of any principal or interest associated with the investments must have both President and Treasurer signature.


Each year, the treasurer will meet with the financial advisor to review the past year portfolio performance of the investments and any recommendations to allocation changes.

Changes will be submitted to the Board for approval before any changes are made. Both President and Treasurer will sign off on all changes to portfolio.


Investment management of the assets of the Long-term Reserve Fund shall be in accordance with the following asset allocation guidelines:

Asset Class Minimum Maximum 
Fixed Income20%60%
Cash Equivalents10%30%

*This policy was approved by the board in May 2013.

© Columbus Compensation Association
P.O. Box 164022
Columbus, OH 43216

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