IEEE Policies

11.3   Asset/Liability Management

Adherence to the policies in this section regarding Asset/Liability Management shall apply equally throughout the entire world, except where local laws and regulations prohibit compliance.  Compliance outside the United States shall be to the maximum extent possible. 

1. Asset Management.  Uses of IEEE funds shall comply with the following policies
   
   
   1. Investments.  IEEE funds may be invested only in the IEEE Investment Fund.
      
      The primary objective of IEEE's investment policy shall be the protection of IEEE's (inflation adjusted) assets.  In a manner consistent with the primary objective, the secondary objective shall be to maximize the total return on the IEEE Investment Fund's assets. 
      
      Investment portfolios for which IEEE is responsible shall be separated into an Operational Cash Fund, a Long-Term Investment Fund and a Defined Benefit Plan.  The Operational Cash Fund shall provide for the cash needs of the IEEE, as determined each year based on projected cash flows plus a contingency.  The Operational Cash Fund shall be invested only in secure short-term instruments focused on preservation and availability of the cash.  The Long-Term Investment Fund shall be well diversified and invested in a conservative fashion to satisfy the primary objective of protection of assets while providing growth over the long term through total return. The Defined Benefit Plan, while not an IEEE Investment asset of the IEEE, does impact the net income of the IEEE due to changes in market value and the impact upon the benefit liability.
      
      Investment Business Continuity Plan. If at the close of business in New York, New York on Friday of any calendar week, there is a 15% decline in the value level of IEEE’s investment assets, which includes the Long Term Investment Fund, and the Operational Cash Fund, as well as the Defined Benefit Plan assets from the highest amount reached in the previous thirty six month-end period,then the Finance Committee and the Investment Committee, along with the IEEE President, Treasurer, appropriate staff, and other key participants designated by the President shall hold an emergency meeting to review whether the decline in the value of such assets, has major negative implications for the IEEE's near term (1 to 3 years) business operations.  Discussion topics shall include, but not be limited to, (1) whether the level of the Operational Cash Fund is sufficient for any changed business or investment conditions affecting the IEEE, (2) whether the IEEE's short-term investments, including the assets in the Operational Cash Fund, are liquid and reasonably accessible, and (3) whether IEEE's investment assets should continue to be invested in a manner consistent with the most recently approved investment decisions.
      
      If a decline in the value of IEEE’s investment assets because of deterioration in the investment and financial markets exceeds the 25% range from the highest amount reached in the previous thirty six month-end period, then the IEEE President, IEEE Treasurer, and Chair of the Investment Committee shall call a meeting of the Investment Business Continuity Plan Advisory Committee (IBCPAC).  The IBCPAC shall meet only when the financial situation as described has occurred.  Members of the IBCPAC shall include the IEEE President, who shall be Chair, IEEE President-Elect, IEEE Past President, IEEE Treasurer, and all IEEE Directors then currently serving as members of the Investment Committee and the IEEE Past Treasurer.
      
      Any recommendations by the IBCPAC shall be reported to the IEEE Board of Directors within 24 hours of the meeting.  When warranted a special meeting of the IEEE Board of Directors may be called in accordance with IEEE Bylaw I-301.5.
      
      The IEEE Treasurer and the Chair of the Investment Committee may invite members of the Finance Committee and the Investment Committee to participate at these IBCP meetings.  Further meetings of the IBCPAC during any one-year period shall not be required unless the investment assets further decline in value by an increment of 10% since the last IBCP-triggered meeting, but a meeting may be called at any time at the discretion of the IEEE President, or IEEE Treasurer.
      
      
   2. Banking.  To the maximum extent possible IEEE Geographic Units and IEEE Conferences are encouraged to participate in the IEEE Concentration Banking Program which shall be defined in the IEEE Finance Operations Manual.  All other IEEE organizational units shall conduct their banking through central IEEE treasury processes. 
      
      
   3. Bank Account Signatures.  All IEEE Geographic Units and Conference bank accounts must have the IEEE Staff Director, Financial Services as a signator thereon.  Procedures for handling bank account signatures shall be maintained in the IEEE Finance Operations Manual.  
      
      
   4. Capital Expenditures Policy.  Procedures for the lease, purchase and disposition of capital assets, including furniture, real property and other property shall be set forth in the IEEE Finance Operations Manual.  No IEEE Geographic Unit, conference or other organizational unit of the IEEE shall lease or purchase real property without the advance approval of the IEEE Board of Directors, which may be given either on the basis of a specific proposal or by inclusion in the approved annual budget.
      
      
2. Accounting Method.   Accounting methods shall be specified in the IEEE Finance Operations Manual.