OGLEIF, Protecting digtal rust Treasury Framework Policy
Subject Area: General Accounting Policy#: FINOO7 Level 1
Policy Title: GLEIF Treasury Framework Policy
Final Approver: Chair, Board of Directors
Key Policy User(s): Board of Directors
Chief Executive Officer
AFC Committee Chair Review Date: 17/11/2015
AFC Recommendation: X (YES) O (NO) 17/11/2015
Board Approval Date: 16/12/2015
Effective Date: 16/12/2015
PURPOSE:
The purpose of this policy is to provide an overall framework in which to organize and manage GLEIF
treasury activities.
POLICY:
This policy outlines the following overall scope of the GLEIF Treasury function:
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Cash and Liquidity management: The ongoing liquidity needs of GLEIF will be monitored regularly to ensure cash flow requirements are met on a day to- day, cyclical, and long-term basis. Liquidity risk results from the Foundation’s potential inability to meet its financial liabilities, in particular the ongoing cash requirements of operating activities.
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Foreign exchange exposure management: The operating structure of GLEIF exposes the Foundation to foreign currency exchange rate risk in the ordinary course of business. The Foundation shall monitor and manage foreign exchange risk in order to mitigate the risk exposure to unpredicted and unwanted currency exchange fluctuations.
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Interest Rate risk management: The Foundation shall monitor and manage interest rate risk. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This risk arises whenever interest terms of financial assets and liabilities are different.
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Investment management: The Foundation shall establish guidelines for investing/managing the funds of GLEIF. A separate investment policy shall be developed by the Foundation.
Treasury Framework Policy Page 2 of 3 GLEIF 16-09-16_General_Accounting_FINOO7_v.1_final Version 1.1 16 September 2016
- Banking relationship management: The Foundation shall manage all banking relationship activities, including, but not limited to: e Opening and closing of all GLEIF bank accounts ¢ Maintaining authorized signatories for all GLEIF bank accounts e Compiling, issuing, and evaluating all Requests for Proposal with regards to any and all banking services o Serving as the first point of contact for any bank contact for GLEIF SUPPORTING POLICIES AND PROCEDURES: Separate policies, procedures and guidelines designed to support, and achieve compliance with this policy shall be developed, as appropriate, by GLEIF. The RELATED DOCUMENTS section below will be maintained and updated accordingly. RESPONSIBILITIES AND ADMINISTRATION It is the responsibility of the Board of Directors to approve and amend the Treasury Policy, and any exceptions to the Treasury Policy. It is the responsibility of the CEO to: o Implement the Treasury Policy and designate those who can act on behalf of the CEO including outside money management firms; ¢ Monitor the existing portfolio for suitability, performance and conformity with this Treasury Policy and report on same on a quarterly basis to the Board,;
- Annually review and propose amendments, as appropriate, to the Treasury Policy RELATED DOCUMENTS N/A Record Retention Period: 10 years or local legal requirements whichever is greater Treasury Framework Policy Page 3 of 3 GLEIF 16-09-16_General_Accounting_FINOO7_v.1_final Version 1.1 16 September 2016