Money, Banking and Investing in an Uncertain Economy
for Tribal Leaders and Enterprise Board Members
Finance

Do you know how to select a good investment for your tribal organization? To choose an investment manager? To develop and direct an investment strategy and make the critical financial decisions that your tribe needs to assure its economic growth and stability?

Rapidly increasing tribal assets are challenging tribal leaders to take a hard look at investment strategies and to make difficult decions regarding the financial resources of the entire tribe. It’s easy to talk about investing, but with a seemingly endless array of options, where do you begin? How much money should be left in the bank? What risks are associated with investment? And what investment options are available?

This two-day program will alleviate the frustration and confusion often experienced when reviewing proposals from investment counselors and money managers. You’ll become familiar and comfortable with the unique language of the investment world. You’ll learn how your tribe can best use banks and other financial firms. Also, you’ll survey the financial markets and learn the basics of stocks, bonds and other investments, as well as discuss the risks involved and how to keep them under control.

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Topics that will be covered include:

Key Investments What is an investment anyway? Types of money that can be invested "Time value of money” Your tribe’s attitude toward risk Getting past Wall Street hype Investment Philosophy and Objectives Why you should develop an investment philosophy Creating objectives for the investment program Types of risks Safety first Cost-benefit analysis Assessing Tribal Goals, Mapping Your Financial Stress Points and Setting Objectives Meeting immediate financial needs Expanding tribal services Funding for routine or major emergencies Tribal economic development Self-Determination funds — keeping interest on money earned Requirements for investing federal/tribal funds Building Your In-House Team Tribal council Investment committee Portfolio manager Portfolio accountant Internal auditor Investment Policy Why a written policy is important Creating separate policies Legal and political considerations Initial considerations in policy drafting Critical components: Delegation of authority Prudence Ethics Collateral Performance evaluation Operating procedures Identifying funds Kinds of Investments Bank instruments — CDs and repurchase agreements Established security markets Treasury bills, notes and bonds Direct investment in closely held companies Overseas investment markets Real estate Mutual funds Negotiating with banks Avoiding “bad investments” Managing Risk The kinds and nature of risk: Credit risk Liquidity risk Inflation risk Fraud and transaction risk Operating policies that reduce risk

Cash Flow Forecasting What is forecasting? Development process Updating the forecast Internal Controls What are internal controls? Putting controls in place to safeguard your assets Investment Process Determining the investment horizon How the interest rate outlook and investment strategy are established Monitoring market and investment results Benchmarking Layering Your Portfolio to Blend Risk, Return and Liquidity Cash Liquid investments Tribal infrastructure investments Long-term low and high risk Futures, options and other special investments Scheduling maturities Access to credit Investment Advisors Discretionary and non-discretionary authority Benefits and risks of using advisors Steps for selecting an advisor Elements of an Investment Advisory Agreement Evaluating performance Investment Reporting Importance of reporting Information that should be included Frequency of reports Choosing who should receive and review reports Selecting Professional Help Determining who you can trust and what to expect: Accountants Bankers Brokerage house sales representative Certified financial planner and chartered financial consultants How they succeed in making money Using Banks Core and ancillary banking services Fees and charges — What should you pay? Special services your tribal organization should receive Negotiating with banks Insurance — FDIC Technology features — direct deposit, check faxing, ATMs, on-line banking, etc. “Sweep” accounts Special Roles of the Banker Wire transfers Networking and trade talk