Procedures and activities for the purchase of investments

The first step of the investment process is to develop, review and revise the
investment policy. To develop and implement the internal controls to safegurad the
cash and securities is the next step. Through written investments procedures, which
are a key part of internal controls, it can be ensured that internal controls are being
followed.
It is helpful to think thorugh the entire process while developing the written
investment procedures and then document the activites that take place. Investment
procedures start with a review of daily cash position, include a review of maturing
investments and incoming coupon payments, and details regarding invesmtent
decisions.

Investment activites:

Investment authorization:

A company establishes an investment officer/ treasurer/ dvision within the treasury

or finance department with the responsibilty of conducting cash and investment
transactions for all funds and cash surplus held by a company. The investment officer
shall establish the procedures for the operation of investment program.

Investment selection:

When purchasing or selecting securities, those shall be selected that satisfies the
current objectives and needs of the company and that provides both the highest rate
of return within the estblished parameters pf the investment policy.