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 1.

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.

2.

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.

3.

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.

4.

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