Treasury management strategy
The police and crime commissioner’s objectives for treasury management both investing and borrowing are as follows:
- effective management and control of risk is the prime objective;
- a high priority to revenue cost stability. This aids stable financial planning and avoids a stop-start approach to service delivery. This means it adopts a relatively low-risk attitude to treasury management, and accepts that this may come at a cost;
- the main risks with regard to treasury management activities are security, liquidity and yield risk. The police and crime commissioner’s policies will prioritise the risks in that order of importance, that is highest priority will be given to security, followed by liquidity and then yield;
- the police and crime commissioner will pursue best value in treasury management within the context of effective risk management.
The strategy for 2018/19 covers two main areas:
- the capital plans and Prudential indicators;
- the minimum revenue provision (MRP) strategy.
Treasury management issues:
- the current treasury position;
- treasury indicators which limit the treasury risk and related activities of the PCC;
- prospects for interest rates;
- the borrowing strategy;
- policy on borrowing in advance of need;
- debt rescheduling;
- the investment strategy;
- creditworthiness policy; and
- policy on use of external service providers.