Provision of a Treasury Management Service

Background Information

Dyfed-Powys Police Force provides the Police and Crime Commissioner and his Chief Finance Officer with day to day treasury management activities including:

 Executing and processing all investment and borrowing decisions

 Regular reporting to senior management on treasury management and related issues

 Reporting to the Police and Crime Commissioner, Chief Officers and Members of the Joint Audit Committee

 Forecasting and monitoring the Capital Financing and interest on balances budgets

 Financial accounting for treasury, including input to statutory accounts and production of statutory returns

 Production and maintenance of all treasury strategy, policy and procedures

The current Treasury Management Strategy is available online.

Treasury Management Consultancy Service Requirements

• Strategic Advice

 Provide advice and assistance to structure an appropriate treasury management and investment strategy, calculation of prudential indicators, minimum revenue provision policy and capital financing requirement.

 Provide balance sheet analysis.

 Provide advice on treasury management practices and procedures including risk management for treasury management activities.

 Conduct quarterly strategic review meetings at the Police and Crime Commissioner's offices in Carmarthen.

 Provide presentations/attend Joint Audit Committee meetings on an ad-hoc basis and as requested. These occur quarterly at the Force HQ in Carmarthen.

• Economic Analysis & Interest Rate Forecasting

 Monitor and provide regular updates on economic indicators, political changes, Monetary Policy Committee meetings, London Inter-Bank Offer rate, investment returns and other market rates that may impact on current and future borrowing and investment strategies.

 Provide forecasts of movements in economic indicators including inflation, Bank of England base rate, market rates, gilt market movements.

• Debt Management

 Pro-actively monitor debt portfolio.

 Provide advice on early redemption and repayment.

 Provide advice on different borrowing options including advice on timing and structure of borrowing decisions.

 Assist with financial scenario modelling.

• Investment and Counterparty Advice

 Provide advice on individual investments within the investment portfolios.

 Provide advice on investment counterparty creditworthiness.

 Provide advice on investment solutions addressing bail-in environment.

 Provide advice on financial instruments that accord with our risk appetite i.e. including but not limited to corporate bonds, covered bonds and floating rate notes.

 Advise on external fund management and custodian account selection.

 Notify and advise on creditworthiness changes from rating agencies.

 Benchmark investment performance and proactively advise on the investment portfolio.

 Advise on structure, duration and timing of individual investment options in context of entire portfolio and in line with strategy.

 Pro-actively advise o