NASFUND Contributors Savings & Loan Society Ltd

Policy Category:	Finance
Policy Topic:	Financial Delegation
Policy No:	1
Source of Authority	Interim Board
Date	15th December 2004

PURPOSE OF THE POLICY:

This policy sets out the level of financial delegation required by the society’s interim Board and management to ensure there is effective and prudent control over the finances of the society.

PROCEDURE & AUTHORISATION LEVELS:

The following rules will affect the exercise of authority under this policy.

(a)      Authorities are vested with a specific position and to that position’s area of responsibility only. A person formally in an acting role will carry the authority attached to the position.

(b)      Approvals to include personnel on approved authority’s lists can only be given by the Society Board through the recommendation of the Manager.

(c)      Existing Authority levels attached to any given position may, with the approval of the Chairman be delegated to other personnel if it is deemed necessary.

Position Holder	Signatory Code	Authorization of financial delegation.	Investments	Finance & Admin	Withdrawals
Interim Chairman	A	Up to K 100,000	Yes	Yes	Yes
Supervisory Committee Chairman	A	Up to K 100,000	Yes	Yes	Yes
Manager	B	Up to K 50,000	Nil	Yes	Yes
Accountant	B	Up to K30, 000	Yes	Nil	Yes
Secretary	B	Nil	Nil	Nil	Nil

A - First cheque signatory

B - Second cheque signatory

Each cheque must be signed by either two “A” signatories or one “A” and one “B” signatory. Any amount exceeding K100, 000.00 must be referred to the full NCSL board for approval.

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Board Chairman

Policy Category:	Finance
Policy Topic:	Operating Bank Accounts
Policy No:	2
Source of Authority	Interim Board
Date:	15th December 2004

PURPOSE OF THE POLICY:

To assist the Manager, Accountant/Treasurer, Supervisory Committee and Interim Board monitor the Society’s cash flow and expenses.

PROCEDURE:

The Society will initially operate 2 two different bank accounts with the Bank South Pacific to cater for member deposits (savings) and interest income. The accounts are:

Account Name	Receipts In	Outflow
1. Contribution	Member deposits, (deductions)	Member withdrawals, loan payments
2. Administration	Interest income from T/ Bills and other income	Operating & Overhead expenses

1.      The following officials have the authority to operate the Society’s bank accounts:

·        Interim Chairman

·        Manager

·        Accountant/Treasurer

·        Secretary

2.      Refer Financial Delegation for order of cheque signatories.

3.      All expenses, loan funding and other financial transactions must be in accordance with the Society’s policies and approved budget.

4.      Member savings are not to be used for expense payments without members / Interim Board /AGM or Special General Meeting approval.

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Board Chairman

PURPOSE OF THE POLICY:

To ensure Board Fees paid to directors and committee members are consistent with industry rates and acceptable to the Registrar of Savings & Loan Societies.

POLICY GUIDELINES:

1.      No advances on entitlements of a Board Member are allowed under any circumstances

2.      No other entertainment, accommodation or travel will be advanced to a Board Member without prior Board approval taken.

3.      No overseas travel is permitted.

4.     The following allowances highlighted in the table below will be deemed to be the only entitled payments that can be received by Board Members.

5.     There is no additional sitting fee for being a Director of the NCSL unless the meetings of those committees / boards occur on a different day from the NASFUND Audit & Remuneration Committee meeting.

6.      There is no quarterly fee for Directors of NCSL.

Allowance	Board Member	Chairman	Period	Date Entitled
Sitting Allowance	K250			At each Board or Committee Meeting
Airfares & Hire Car	Yes (Economy) For non POM residents only	Yes (Economy) For non POM Residents only	For night before & day of meeting only	Paid directly on invoice. (Initially will be paid by NASFUND)
Accommodation	For non POM residents only	For non POM residents only	For night before & day of meeting only	Paid directly by on invoice: (Initially will be paid by NASFUND)

Notes:

All payments are in Kina.

No extension of accommodation will be allowed unless approved before hand by NCSL Board.

The Board is allowed to provide food and drink to the value of no more than K 200 per daily sitting.

No Board fees will be paid if the NCSL Interim Board meeting is held on the same day as the NASFUND Audit & Remuneration Committee Meeting.

The Interim Chairman is not entitled to any fees or sitting allowances.

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Board Chairman  

Policy Category:	Investments
Policy Topic:	Cash Management
Policy No	4
Source of Authority	Interim Board
Date:	15th December 2004

PURPOSE OF THE POLICY:

To invest in liquid assets as approved by the Registrar of Savings & Loan Societies. Approved liquid assets being Treasury Bills, Inscribed Stock, deposits with BPNG, Deposits with Banks and Approved Financial Institutions.

POLICY STATEMENT:

1.                  Cash in bank must be invested daily through the Investment Managers in liquid assets that are offering the best available rate.

2.         Cash in bank to be used for secured member loans, using own savings / shares or guarantor shares-savings, will be given priority over any investment commitments.

3.         The Board of Directors will only invest member savings / shares and that are clearly surplus to ongoing member loan demand.

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Board Chairman

Policy Category:	MEMBER
Policy Topic:	Minimum Savings
Policy No:	5
Source of Authority	Interim Board
Date Approved:	15th December 2004

PURPOSE OF THE POLICY:

1.                  To encourage members to save regularly.

2.                  To enable members to obtain larger loans when it is required.

3.                  To encourage & promote the S & L concept which is to provide for a members immediate financial needs.

POLICY STATEMENT:

1.      Under the Education and General Savings Account, all members will be required to save a minimum of K20.00 per fortnight. (amended 23/05/06)

2.      For the Christmas Savings Account, savings is a minimum of K15.00 per fortnight. (amended 23/5/06).

3.      Members are allowed to make saving deposits over and above their regular saving deductions.

4.      No cash deposits will be entertained. All savings must be paid by cheque or by direct bank deposit.

5.      Transfer of funds between the three savings accounts is not allowed. (amended 23/05/06). 

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Board Chairman

Policy Category:	Member
Policy Topic:	Membership Criteria
Policy No:	6
Source of Authority	Interim Board
Date Approved:	15th December 2004

PURPOSE OF POLICY:

To define the categories of persons joining as members of the NCSL.

POLICY STATEMENT

1.                  The membership of the society is initially limited to NASFUND contributors, Aon Master Trust members and NCSL staff.

2.                  People interested in being members are to receive verbal and written information on the Society’s operations and its benefits and what their responsibilities as member are.

3.                  The Society will provide and distribute a range of written information material that assists members in personal and household financial management, including budgeting, savings and credit management.

4.                  Joining fees for new members is K10.00 to be taken up as income for the society.

5.                  New members will pay K1.00 share capital as shareholders of the society. The share is redeemed when the member resigns their membership.

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Board Chairman  

Policy Category:	MEMBER
Policy Topic:	Savings Accounts
Policy No:	7
Source of Authority	Interim Board
Date Approved:	15th December 2004

PURPOSE OF POLICY

To define the guidelines governing the three savings accounts.

POLICY STATEMENT - Guidelines

GENERAL SAVINGS ACCOUNT (S2)

• Minimum savings of K 20.00 per fortnight. (amended 23/05/06).
• Minimum withdrawal of K 200.00 at any one time.
• Qualifying time of six months continuous savings before a withdrawal is allowed if minimum savings of K 20.00
• If minimum savings is greater than K 20.00 member must save for a continuous period of three months before a withdrawal is allowed
• Savings can be used as a security against personal loans

EDUCATION SAVINGS ACCOUNT (ESA) (S1)

• Minimum savings of K20.00 per fortnight. (amended 23/05/06).
• Minimum balance of K50.00 to remain at any one time
• Withdrawals must be only for education related purposes
• One withdrawal per month is permitted. 
• Cheques will be made payable to school, education institutions or supplier of education related goods or services only. No cheques will be payable to a member unless approved by management. (amended 23/05/06)
• Formal quotations from suppliers of goods and services to accompany each application.
• Savings can be used as security against personal loans. (amended 23/05/06).

CHRISTMAS SAVINGS ACCOUNT (S3)

• Minimum savings of K15.00 per deposit (whether paid on weekly, fortnightly or monthly).
• Withdrawals only allowed in November, December and January of each year. (amended 23/05/06).
• Savings can be used as security for personal loans. (amended 23/05/06)

Notes

• Members can now combine their aggregate savings under Education, General  & Christmas as security to obtain a larger loan amount. Once they commit these specific savings they are not allowed any withdrawals until the loan is fully repaid or the aggregate savings exceed the loan liability. (amended 23/05/06)

• Personal loans will be considered on a ratio of 1:1 against the member’s total combined savings. (amended 23/05/06)

• Loans for medical expenses, school fees or on compassionate grounds can be considered on a 1:2 basis. (effective as of 1/03/07)

• ADDITIONAL SAVINGS 

·        One off additional savings outside of regular deductions can be accepted from members