Treasury management scheme of delegation                                       Annex D

(i) Executive / Full Council

• receiving and reviewing reports on treasury management policies, practices and activities
• approval of annual strategy and annual outturn

(ii) Executive

• approval of/amendments to the organisation’s adopted clauses, treasury management policy statement and treasury management practices
• budget consideration and approval
• approval of the division of responsibilities

 (iii) Audit & Governance Committee

• receiving and reviewing reports on treasury management policies, practices and activities
• reviewing the annual strategy, annual outturn and mid year review.

(iv) Chief Finance Officer (section 151 officer)

• reviewing the treasury management policy and procedures and making recommendations to the responsible body.
• all operational decisions are delegated by the council to the Chief Finance Officer, who operates within the framework set out in this strategy and through the treasury management policies and practices
• Approving the selection of external service providers and agreeing terms of contract in accordance with the delegations in financial regulations.

The treasury management role of the section 151 officer

• recommending clauses, treasury management policy/practices for approval, reviewing the same regularly, and monitoring compliance
• all operational decisions delegated by the council to the Chief Finance Officer (s151 officer), who operates within the framework set out in this strategy and through the treasury management policies and practices
• submitting regular treasury management policy reports
• submitting budgets and budget variations
• receiving and reviewing management information reports
• reviewing the performance of the treasury management function
• ensuring the adequacy of treasury management resources and skills, and the effective division of responsibilities within the treasury management function
• ensuring the adequacy of internal audit, and liaising with external audit
• recommending the appointment of external service providers.
• preparation of a capital strategy to include capital expenditure, capital financing, non-financial investments and treasury management, with a long term timeframe
• ensuring that the capital strategy is prudent, sustainable, affordable and prudent in the long term and provides value for money
• ensuring that due diligence has been carried out on all treasury and non-financial investments and is in accordance with the risk appetite of the authority
• ensure that the authority has appropriate legal powers to undertake expenditure on non-financial assets and their financing
• ensuring the proportionality of all investments so that the authority does not undertake a level of investing which exposes the authority to an excessive level of risk compared to its financial resources
• ensuring that an adequate governance process is in place for the approval, monitoring and ongoing risk management of all non-financial investments and long term liabilities
• provision to members of a schedule of all non-treasury investments including material investments in subsidiaries, joint ventures, loans and financial guarantees
• ensuring that members are adequately informed and understand the risk exposures taken on by an authority
• ensuring that the authority has adequate expertise, either in house or externally provided, to carry out the above
• creation of Treasury Management Practices which specifically deal with how non treasury investments will be carried out and managed, to include the following: -

o Risk management, including investment and risk management criteria for any material non-treasury investment portfolios;

o Performance measurement and management, including methodology and criteria for assessing the performance and success of non-treasury investments;        

o Decision making, governance and organisation, including a statement of the governance requirements for decision making in relation to non-treasury investments; and arrangements to ensure that appropriate professional due diligence is carried out to support decision making;

o Reporting and management information, including where and how often monitoring reports are taken;

o Training and qualifications, including how the relevant knowledge and skills in relation to non-treasury investments will be arranged.