title
Approval of amended and restated Investment and Cash Management Policy.
presenter
Presenter: Michael Moran, Chief Financial Officer
end
Recommendation
The Chief Executive Officer (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that the Board of Commissioners (“Board”) approve the attached Investment & Cash Management Policy which was last updated in July 2023.
The requested action complies in all material respects with all applicable federal, state, and local laws, and CHA policies. CHA staff has completed all necessary due diligence to support the submission of this initiative. Policy changes go into effect upon Board approval.
Background
As part of a comprehensive policy review process, CHA has reviewed and updated previous Board approved policies to comply with current laws, regulations and practices. This policy updates, combines and supersedes CHA’s current Investment and Cash Management (renamed in 2023) Policy, which was originally adopted in 1997, and revised and approved in 2000, 2004, 2008, 2010, 2014, 2017, 2022 and 2023.
Key revisions include:
• Add CFO and CEO authorization for the sale of securities as part of the 2023 annual internal audit recommendations
• Add Investment Committee and Chair of the BOC Audit and Finance Committee authorization for line of credit prior to draws.
• Change maximum duration limit for CHA Core and CHA LLC Portfolios from 18 months to 24 months and maximum maturity for government securities from 10 years to 5 years to ensure consistency and best practice
• Add two-level review and approval for Annual Cash Flow Forecast
• Add capital structure and planning to the General Provisions of debt management section
Respectfully Submitted:
______________________
Tracey Scott
Chief Executive Officer