Treasury management is defined as the management of the Commissioner’s investments and cash flows, banking, money market and capital market transactions.
It relates to the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks.
The Commissioner regards the successful identification, monitoring and control of risk to be the prime criteria by which the effectiveness of its treasury management activities will be measured. Accordingly, the analysis and reporting of treasury management activities will focus on their risk implications for the PCC.
The PCC acknowledges that effective treasury management will provide support towards the achievement of its business and service objectives. It is therefore committed to the principles of achieving value for money in treasury management, and to employing suitable comprehensive performance measurement techniques, within the context of effective risk management.
The Local Government Act 2003 (the Act) requires the PCC to set out its Treasury Management Strategy for borrowing and to prepare an Annual Investment Strategy (as required by Investment Guidance subsequent to the Act). The Annual Investment Strategy sets out the PCC’s policies for managing its investments and for giving priority to the security and liquidity of those investments.