8 November 2002

1. To define the financial goals of the International Society for Neuroethology.
2. To provide a set of guidelines for the financial management of the society for meeting those goals.
3. To maximize the interest and dividend returns on accumulated cash reserves while, at the same time, attaining a proper and responsible balance among factors of safety, liquidity and highest yield.

1. To cover the normal, yearly operating costs of the society (1 Year Horizon)
2. To maintain a contingency fund to cover congress and/or operating costs in case of shortfalls (3 Year Horizon)
3. To maintain a capital investment fund, the earnings of which will be used to support initiatives outside the normal operating costs of the society (e.g. Young Investigator's Award Program, Congress Plenary Speaker Program, etc.) (3 Year Horizon)

1. Short Term: 100% cash and cash equivalents (Certificate of Deposit, money market, short term US government obligations (up to 2 years), interest bearing and non-interest bearing checking and savings accounts or other similar type investments).
2. Intermediate-Long Term: Obligations of the US Government and its agencies as well as investments in the stock market through the use of either mutual funds or a diversified portfolio (minimum of 30 stocks).

1. Basic purpose: To provide resources to cover normal cash flow pattern of the society.
2. Designation: Unrestricted (cash can be moved freely to another fund).
3. Level required: Defined by the operating costs.
4. Source of funding: Membership dues, investment and other income.
5. Structure: Interest bearing checking account (if possible).

1. Basic purpose: To provide resources for covering current ISN congress expenses.
2. Designation: Unrestricted.
3. Level required: Defined by the congress costs.
4. Source of funding: Meeting registration fees, grants, exhibitors fees, excess cash flow.
5. Structure: Cash.

1. Basic purpose: To provide for Society's missions and cash shortfalls.
2. Designation: Restricted (Direct obligations of the US government, its agencies and instrumentalities as well as Certificates of Deposit, Money Markets).
3. Level required: 150% of projected congress costs (see note below).
4. Source of funding: Excess cash from operations.
5. Structure of portfolio: A mixture of investments, primarily in government bonds, diversified with respect to maturity and individual issue size, or high quality income-based mutual funds (or equities). Up to 20% of the portfolio may be invested in growth equities to boost the earnings from investment.
   
   Note: ISN's investment portfolio is designed to serve two functions. One third of the portfolio value (50% of projected congress costs) shall be set aside as a contingency fund in the case of cash shortfalls. The entire portfolio shall also be used as a capital investment fund, the earnings of which shall be used for the society's missions. The level of the contingency portion of the fund is based on the premise that shortfalls will likely be on the order of 25% but no more than 50% of the cost of an average congress. Thus, if for any reason a 25% funding from this reserve is necessary, there would always be 25% left in the fund to meet future shortfalls and a 3-year time frame to rebuild the contingency portion of the fund either through dues increase and/or an increase in the upcoming congress' registration fees.
   
   Example:
   Projected Congress Costs: $150,000
   Total Value of Portfolio Fund: $225,000 (1.5 x $150,000)
   Contingency Portion of Fund: $75,000 (0.5 x $150,000)

1. All accounts must be in the name of the International Society for Neuroethology and be authorized by the Treasurer of the Society.
2. All funds must be invested with firms specifically approved by the Executive Committee and may not be invested in firms in which Executive Committee members have fiduciary interest.
3. All funds must be invested with care, skill and diligence.
4. No individual may select investments or execute investment transactions on behalf of the Society except as specified in this policy.
5. All investments must be US dollar denominated.
6. Any investment advisor relationship shall be terminable at any time upon notice from the Executive Committee.
7. All excess cash and assets above and beyond what is needed for operating costs, congress costs and maintaining the capital investment/contingency fund are to be used to support the society's missions, as determined by the Executive Committee in consultation with Council (1-3 year Horizon).
8. All uses of surplus cash as defined in article 7 above shall be approved by Council and the Executive Committee.

1. To review and approve this policy statement annually, in consultation with the Council.
2. To review and approve the annual financial report.
3. To determine how any projected or current excess cash should be distributed in consultation with Council and with input from various ISN committees (e.g. Long Range Planning Committee, Web Oversight and Education Committee).

1. To project the cash flow for future years (up to and including the year of the congress) at the end of each year.
2. To regularly monitor all financial transactions.
3. To review investment performance annually in consultation with the Executive Committee and/or a professional financial advisor.
4. To file an annual financial report with the Executive Committee that will be published in the society's newsletter to its members.
5. To work with a professional tax accountant to file an annual IRS report.
6. To work with the Congress Committee and the Local Organizing Subcommittee to meet and account for the expenses of the congress.

1. To collect membership dues and meeting registration fees and to deposit them into ISN's checking accounts.
2. To file monthly and annual financial reports to the Treasurer on membership dues, registration fees and reimbursable expenses.
3. To bill vendors for the rental of ISN mailing lists.
4. To assist or advise ISN in other budget matters when appropriate.