CYNGOR SIR CEREDIGION‌

CYNGOR SIR CEREDIGION‌

Adroddiad i’r:	Cyngor
Dyddiad y cyfarfod:	22 Chwefror 2018
Teitl:	Datganiad Polisi Rheoli’r Trysorlys, Strategaeth Rheoli’r Trysorlys 2018/19 a Pholisi Isafswm Darpariaeth Refeniw (MRP) 2018/19.
Pwrpas yr adroddiad:	Ystyried Datganiad Polisi Rheoli’r Trysorlys, Strategaeth Rheoli’r Trysorlys 2018/19 a Pholisi Isafswm Darpariaeth Refeniw (MRP) 2018/19
	ER PENDERFYNIAD
Portffolio Cabinet ac Aelod Cabinet:	Adnoddau Corfforaethol – Cyllid Y Cynghorydd Xxxxxx Xxxxxxx

1. CYFLWYNIAD

Bu i’r Cabinet yn ei gyfarfod a gynhaliwyd ar 13/02/2018 ystyried Adroddiad y Pennaeth Cyllid ar Ddatganiad Polisi Rheoli’r Trysorlys, Strategaeth Rheoli’r Trysorlys 2018/19 a Pholisi Isafswm Darpariaeth Refeniw (MRP) 2018/19 sydd ynghlwm yn Atodiad 1.

2. PENDERFYNIADAU’R CABINET

Penderfynwyd gan y Cabinet y dylid:

(i) cymeradwyo Strategaeth Rheoli’r Trysorlys fel y’i hamlinellir yn yr adroddiadau ar gyfer Benthyca a Buddsoddi;

(ii) cymeradwyo’r Atodlen Buddsoddi fel y’i nodir yn Atodiad B;

(iii) cymeradwyo’r Polisi Isafswm Darpariaeth Refeniw fel y’i nodir yn Atodiad C;

(iv) dirprwyo awdurdod i’r Pennaeth Cyllid mewn ymgynghoriad â’r Aelod Cabinet Cyllid, Technoleg Gwybodaeth a Gwasanaethau Cwsmeriaid ynghyd â Thai, i newid Strategaeth Rheoli’r Trysorlys a’r Atodlen Buddsoddi yn ystod y flwyddyn;

(v) ac yn argymell bod y Cyngor Llawn:

(a) yn cymeradwyo Strategaeth Rheoli’r Trysorlys ar gyfer Benthyca a Buddsoddi 2018/19;

(b) yn cymeradwyo Polisi Isafswm Darpariaeth Refeniw 2018/19.

Llesiant Cenedlaethau’r Oes Asesiad Effaith Integredig wedi ei gwblhau?

Dyfodol:: Os na, esboniwch xxx

Crynodeb: Nid yw’r adroddiad yma’n cyfeirio at newid gwasanaeth

Hirdymor: D/B

Integreiddio: D/B

Cydweithio: D/B

Cynnwys: D/B

Xxxx: D/B

Argymhelliad: Argymhellir y dylai’r Cyngor nodi’r adroddiad a

chymeradwyo penderfyniadau’r Cabinet

Rheswm dros y penderfyniad:

Pennu Strategaeth Rheoli’r Trysorlys a’r Polisi Isafswm Refeniw ar gyfer 2018/19

Trosolwg a Chraffu: I’w ystyried

Fframwaith Polisi: Strategaeth Rheoli’r Trysorlys 2018/19

Blaenoriaethau Gorfforaethol:

Mae Rheoli’r Trysorlys yn sail I xxxx flaenoriaethau’r Cyngor

Goblygiadau Ariannol: Cyllid :Incwm Buddsoddi /Llog allanol i’w dalu

Pwerau Statudol: Deddf Llywodraeth Leol 2003

Papurau Cefndir: Dim

Atodiadau: Atodiad 1 – Adroddiad i’r Cabinet ar 13/02/2018

Pennaeth Gwasanaeth: Xxxxxxx Xxxxxxx (Pennaeth Cyllid) Swyddog Adrodd: Xxxxxx Xxxx (Cyfrifydd Grŵp) Dyddiad: 13/02/2018

CEREDIGION COUNTY COUNCIL

Report to:	Council
Date of meeting:	22nd February 2018
Title:	Treasury Management Policy Statement, Treasury Management Strategy and Minimum Revenue Provision (MRP) Policy for 2018/19.
Purpose of the report:	To consider the Treasury Management Policy Statement, the Treasury Management Strategy for 2018/19 and the MRP Policy for 2018/19.
For:	DECISION
Cabinet Portfolio: Cabinet Member:	Corporate Resources - Finance Cllr Xxxxxx Xxxxxxx

1. INTRODUCTION

The Cabinet, at its meeting held on 13/02/2018, considered the report of the Head of Finance upon the Council’s Treasury Management Policy Statement, Treasury Management Strategy for 2018/19 and Minimum Revenue Provision (MRP) Policy for 2018/19, which is attached as Appendix 1.

2. CABINET DECISIONS

The Cabinet decided:

(i) to approve the Treasury Management Strategy outlined in the report for Borrowing and Investments;

(ii) to approve the Investment Schedule as set out in Appendix B;

(iii) to approve the Minimum Revenue Provision Policy as set out in Appendix C;

(iv) to delegate authority to the Head of Finance in consultation with the Cabinet Member for Finance, ICT and Customer Services along with Housing, to amend the Treasury Management Strategy, and Investment Schedule, during the course of the year; and

(v) to recommend to Full Council:

(a) the approval of the Treasury Management Strategy for Borrowing and Investments for 2018/19; and

(b) the approval of the Minimum Revenue Provision Policy for 2018/19.

Wellbeing of Future Generations:

Has an Integrated Impact No

Assessment been completed? If, not, please state why

Summary: This report does not refer to a service

change

Long term:	N/A
Integration:	N/A
Collaboration:	N/A
Involvement:	N/A
Prevention:	N/A

Recommendation(s):	It is recommended that Council notes the report and approves the decisions made by Cabinet
Reasons for decision:	To set a Treasury Management Strategy and Minimum Revenue Policy for 2018/19
Overview and Scrutiny:	To be considered
Policy Framework:	2018/19 Treasury Management Strategy
Corporate Priorities:	Treasury Management underpins all Corporate Priorities
Financial Implications:	Finance: Investment Income/External interest paid
Statutory Powers:	Local Government Act 2003
Background Papers:	None
Appendices:	Appendix 1 – Report to Cabinet on 13/02/2018
Head of Service:	Xxxxxxx Xxxxxxx (Head of Finance)
Reporting Officer:	Xxxxxx Xxxx (Group Accountant)
Date:	13/02/2018

ATODIAD 1

CYNGOR SIR CEREDIGION

Adroddiad i’r:	Cabinet
Dyddiad y cyfarfod:	13 Chwefror 2018
Teitl:	Datganiad Polisi Rheoli’r Trysorlys, Strategaeth Rheoli’r Trysorlys 2018/19 a Pholisi Isafswm Darpariaeth Refeniw (MRP) 2018/19.
Pwrpas yr adroddiad:	Ystyried Datganiad Polisi Rheoli’r Trysorlys, Strategaeth Rheoli’r Trysorlys 2018/19 a Pholisi Isafswm Darpariaeth Refeniw (MRP) 2018/19
	ER PENDERFYNIAD
Portffolio Cabinet ac Aelod Cabinet:	Adnoddau Corfforaethol – Cyllid Y Cynghorydd Xxxxxx Xxxxxxx

1. CYFLWYNIAD

Yn unol â Deddf Llywodraeth Leol 2003 mae’n rhaid i’r Cyngor osod Strategaeth ar gyfer Rheoli’r Trysorlys, sy’n esbonio polisïau’r Cyngor o ran rheoli ei fuddsoddiadau a’i ddyledion ac ar gyfer rhoi blaenoriaeth i ddiogeledd a hylifedd y buddsoddiadau hynny. Mae’r Cyngor wedi mabwysiadu Cod Ymarfer Gwasanaethau Cyhoeddus CIPFA ar gyfer Rheoli’r Trysorlys (y Cod) ac mae’r Strategaeth Rheoli’r Trysorlys arfaethedig wedi ei llunio’n unol â’r Cod cyfredol. Fodd bynnag bu i CIPFA yn ddiweddar iawn gyhoeddi diweddariad i’r Cod Ymarfer Rheoli Trysorlys a’r Cod Darbodus. Bwriedir cydymffurfio â’r rhain gynted ag y bo’n ymarferol bosib ac erbyn 01/04/2019 fan bellaf. Cydnabuwyd fod hwn yn ffordd dderbyniol o ymdrin â’r mater ag ystyried amseriad y diweddariadau.

Mae’n rhaid i’r Cyngor Llawn gymeradwyo’r Strategaeth yn flynyddol. Cyhoeddir adroddiad canol blwyddyn hefyd, ac ar ddiwedd y flwyddyn ariannol cyhoeddir Adroddiad Alldro. Hefyd, mae’r Aelodau yn ei hadolygu’n rheolaidd fel rhan o adroddiadau neilltuol i Bwyllgor Craffu’r Adnoddau Corfforaethol, yn ogystal â hyfforddiant i’r Aelodau ar adegau priodol. Nod y trefniadau adrodd hynny yw sicrhau bod pwy bynnag sydd â chyfrifoldebau amrywiol dros Reoli’r Trysorlys yn llwyr werthfawrogi goblygiadau’r polisïau a’r gweithgareddau sy’n ymwneud â rheoli’r trysorlys, a bod pwy bynnag sy’n gweithredu’r polisïau ac yn cynnal trafodion wedi cyflawni eu cyfrifoldebau o ran dirprwyo ac adrodd mewn modd priodol.

Mae’r strategaeth a awgrymir ar gyfer 2018/19 wedi ei seilio ar safbwyntiau ynghylch cyfraddau llog, yn ogystal â rhagolygon y farchnad gan ymgynghorwyr ac yswirwyr Trysorlys y Cyngor ac mae’n cynnwys:

• Datganiad Polisi Rheoli’r Trysorlys	• Dangosyddion Darbodus
• Sefyllfa Portffolio’r Trysorlys	• Yr Anghenion Cyllidol
• Rhagolygon y cyfraddau llog	• Strategaeth Fenthyciadau
• Aildrefnu dyledion	• Strategaeth Fuddsoddi

• Polisi Teilyngdod Credyd • Trefniadau Bancio • Polisi Isafswm Darpariaeth Refeniw • Buddsoddiadau Gwlad yr Iâ

Mae’r Cyngor ar hyn x xxxx yn cyflogi Link Treasury Solutions Ltd fel ymgynghorwyr allanol i’r Cyngor ynghylch y Trysorlys ar gontract a ddaw i ben ar yr 31ain o Awst 2021. Fodd bynnag, er bod gennym ymgynghorwyr allanol, y Cyngor ei hun sy’n gyfrifol yn y pen draw am benderfyniadau sy’n ymwneud â rheoli’r Trysorlys.

2. DATGANIAD POLISI RHEOLI’R TRYSORLYS

Mae’r Cyngor yn diffinio ei weithgareddau o ran Rheoli’r Trysorlys fel ‘rheoli buddsoddiadau a llif arian yr awdurdod, ei drafodion o ran bancio, marchnadoedd arian a’r farchnad gyfalaf; rheolaeth effeithiol dros y risgiau sy’n ymwneud â’r gweithgareddau hynny a cheisio’r perfformiad gorau posibl yn unol â’r risgiau hynny’.

Mae’r Cyngor yn ystyried mai nodi, monitro a rheoli risg yw’r maen prawf pennaf o ran mesur effeithiolrwydd ei weithgareddau lle mae Rheoli’r Trysorlys yn y cwestiwn. Felly, o ran dadansoddi gweithgareddau sy’n ymwneud â Rheoli’r Trysorlys ac adrodd yn eu cylch canolbwyntir ar y goblygiadau sydd o ran risg i’r Cyngor, ac unrhyw offerynnau ariannol yr ymgymerir â hwy i reoli’r risgiau hynny.

Mae’r Cyngor yn cydnabod y bydd Rheoli’r Trysorlys yn effeithiol yn help iddo gyflawni’r amcanion sydd ganddo o ran ei fusnes a’i wasanaethau. Xxxxx, xxx wedi ymrwymo i’r egwyddor o geisio gwerth am arian o ran rheoli’r trysorlys, a gweithredu technegau cynhwysfawr xx xxxxx o ran rheoli perfformiad, yng nghyd-destun rheoli risg yn effeithiol.

3. DANGOSYDDION DARBODUS 2017/18 HYD 2020/21

Mae’r Dangosyddion Darbodus sydd yn Atodiad A yn berthnasol o ran gosod Strategaeth integredig ar gyfer Rheoli’r Trysorlys. Roeddent yn rhan o’r adroddiad i’r Cabinet am y Gyllideb Gyffredinol ar 23/10/18 ac fe’u cyflwynir i’w cymeradwyo’n derfynol gan y Cyngor Llawn ar 22/02/2018.

4. SEFYLLFA PORTFFOLIO’R TRYSORLYS

Dyma fanylion Portffolio Trysorlys y Cyngor:

	Ar 30/09/2017	Ar 31/03/2017
	£m	£m
Benthyciadau ar Gyfradd Sefydlog
- PWLB	109.1	107.6
- Benthyciadau’r farchnad - Ad-dalu benthyciad Llywodraeth Cymru	5.8     1.8	5.8      1.3
Cyfanswm y ddyled‌	116.7	114.7

Buddsoddiadau
- Mewnol *	26.7	10.9

Cyfanswm y buddsoddiadau	26.7		10.9
Dyled net	90.0		103.8

Cipolwg ar adeg benodol yw’r ffigurau sydd yn y tabl, ac mae union lefel y benthyciadau a’r buddsoddiadau a wneir yn ystod y flwyddyn yn gallu amrywio’n ddirfawr, wrth i incwm ddod i mewn ac wrth i daliadau gael eu gwneud.

5. Y GOFYNION CYLLIDO

Gellir bwrw amcan ynghylch y gofynion cyllido at y dyfodol trwy ystyried yr eitemau mwyaf sylweddol o ran llif xxxxx xx’n codi o effeithiau cyfun y Rhaglen Gyfalaf 3 Blynedd ddiweddaraf, cyllideb arfaethedig 2018/19 (gan gynnwys defnyddio arian wrth gefn), lefel y dyledion sydd ar fin aeddfedu ac union lefel y benthyciadau cyfredol o’i gymharu â’r angen sylfaenol i fenthyca (a adwaenir hefyd fel benthyca mewnol). O ystyried pob un o’r ffactorau hynny yn ei dro:

	2018/19 Amcangyfrif £m	2019/20 Amcangyfrif £m	2020/21 Amcangyfrif £m
a) Effaith y Rhaglen Gyfalaf a’r Cyllidebau Refeniw diweddaraf
Benthyca â Chymorth Llywodraeth Cymru	2.9	2.9	2.9
Rhaglen Ysgolion 21ain Ganrif	2.2	-	-
Ad-dalu Benthyciadau Dros Dro	-1.0	-0.3	-
Taliadau dyledion statudol a roddwyd o’r neilltu (MRP)	-2.6	-2.6	-2.7
Amcangyfrif o’r gofynion cyllido	5.9	-	0.2
b) Effaith y dyledion sy’n aeddfedu
Dyled aeddfedu PWLB yn aeddfedu	-	-	5.1
Amcangyfrif o’r gofynion cyllido	-	-	5.1
c) Xxxxxxx Xxxxxxxx’r Benthyciadau Mewnol
	31/03/18	31/03/19	31/03/20
Amcangyfrif o’r Gofynion Cyllid Cyfalaf	134.1	135.7	135.6
Amcangyfrif o’r Benthyciadau Allanol Gros	118.2	121.7	123.7
Amcangyfrif o’r Gwahaniaeth	15.9	14.0	11.9
Gostyngiad pellach mewn Benthyca Mewnol	2.0	2.0	-
AMCANGYFRIF O GYFANSWM y gofynion cyllido	3.5	2.0	5.3

Yn gyffredinol, amcangyfrifir bod angen benthyca oddeutu £10.8m dros y tair blynedd nesaf. Y prif sbardun yw gostyngiad rhagamcanol yn y Cronfeydd a’r Balansau dros y cyfnod, a dyledion PWLB yn aeddfedu yn 2020/21.

6. RHAGOLYGON Y CYFRADDAU LLOG

Cafwyd y cynnydd cyntaf yng nghyfraddau sylfaenol Banc Lloegr o 0.25% i 0.50% ar 02/11/2017. Bu i’r Pwyllgor Polisi Ariannol (MPC) hefyd ddarparu canllawiau i’r dyfodol y disgwylir cynnydd yng nghyfraddau’r Banc ddwywaith eto yn y tair blynedd nesaf er mwyn cyrraedd 1.0% erbyn 2020. Mae ein Ymgynghorwyr Trysorlys o’r farn y bydd cynnydd xxxxxxx yn y gyfradd banciau i 1.0% erbyn Chwarter 2019

Felly bydd yr adenillion a dderbynnir ar fuddsoddiadau’n debygol o barhau’n isel yn ystod 2018/19 a thu hwnt, fodd bynnag mae costau benthyca hefyd yn parhau i fod ar lefelau hanesyddol cymharol isel.

7. Y STRATEGAETH FENTHYCA

Mae rhagolygon Link ar gyfer cyfraddau benthyca (ar ôl ystyried gostyngiad cyfraddau PWLB (0.20%) fel a ganlyn:

• Disgwylir y bydd cyfraddau’r Bwrdd Benthyciadau Gwaith Cyhoeddus (PWLB) ar fenthyciadau 5 mlynedd yn codi’n raddol i 1.8% erbyn mis Mawrth 2019 a 2.1% erbyn mis Mawrth 2020.

• Ni ddisgwylir y bydd unrhyw wahaniaeth sylweddol rhwng cyfraddau 25 a 50 mlynedd PWLB a disgwylir y bydd y cyfraddau’n cynyddu’n raddol i to 2.9%-3.1% erbyn mis Mawrth 2019 a 3.2% i 3.4% erbyn mis Mawrth 2020.

Ar hyn o xxxx xxx’r Cyngor yn tanfenthyg oherwydd ei fod yn defnyddio benthyciadau mewnol yn lle benthyciadau allanol. Yn ymarferol, mae’r angen llawn am fenthyciadau cyfalaf (y Gofyniad Cyllido Cyfalaf ac eithrio Rhwymedigaethau Hirdymor Eraill) yn ffigur uwch nag union ddyled benthyciadau allanol y Cyngor fel y gwelir yn y tabl yn Adran 5c).

O ystyried y ffactorau hyn oll, yn ogystal â’r amcangyfrif o angen y Cyngor am gyllid sydd yn Adran 5, bydd strategaeth fenthyca arfaethedig y Cyngor yn ystyried benthyciadau newydd trwy ystyried y canlynol:

• Benthyciadau newydd gan y Bwrdd Benthyciadau Gwaith Cyhoeddus (PWLB) (gan ystyried siâp y gromlin elw a’r proffil cyfredol o ran aeddfedrwydd y dyledion) er mwyn ateb yr amcangyfrif o’r angen i fenthyca sydd wedi ei nodi.

• Benthyciadau marchnad hirdymor ar gyfradd sefydlog (lle mae’r cyfraddau’n is o lawer na chyfraddau’r Bwrdd Benthyciadau Gwaith Cyhoeddus am y cyfnod aeddfedu cyfatebol), ar yr xxxx bod cydbwysedd priodol i’w gael rhwng dyledion y Bwrdd Benthyciadau Gwaith Cyhoeddus a’r farchnad drwyddi draw yn y portffolio dyledion.

• Gellid defnyddio benthyciadau dros dro neu dymor byr gan awdurdodau lleol eraill neu’r marchnadoedd arian am hyd at 5 mlynedd

• Mae’n bosib yr ystyrir hefyd yr Asiantaeth Bondiau Bwrdeistrefol pan fydd gwaith yr Asiantaeth wedi sefydlu’n llawn.

Ni wnaiff y Cyngor fenthyg mwy na’r hyn y bydd arno xx xxxxx, nac ychwaith fenthyca ymlaen llaw, er mwyn gwneud elw o fuddsoddi’r symiau ychwanegol a fenthycir yn unig. Byddai angen i unrhyw benderfyniad i fenthyca ymlaen llaw cyn i’r angen godi fod yn unol â’r Amcangyfrifon o’r Anghenion Cyllid Cyfalaf cymeradwy (un o’r Dangosyddion Darbodus) ac fe gaiff ei ystyried yn ofalus er mwyn sicrhau gwerth am arian, y gall y Cyngor sicrhau diogelwch y cyllid hwnnw xx x xxxx fforddio’r ‘xxxxxx xxxxx’ tymor byr.

O ystyried hyn oll, bydd angen arfer gofal o ran Rheoli’r Trysorlys yn 2018/19. Bydd y Pennaeth Cyllid yn monitro’r farchnad o ran cyfraddau llog a bydd yn cymryd agwedd bragmataidd wrth i amgylchiadau newid, a bydd yn rhoi cyfrif am gyngor ymgynghorwyr allanol y Cyngor parthed y Trysorlys ac yn adrodd unrhyw benderfyniadau perthnasol gerbron y Cabinet y tro nesaf y bydd cyfle i wneud hynny.

8. AILDREFNU DYLEDION

Prin yw’r cyfleoedd i aildrefnu dyledion gyda’r Bwrdd Benthyciadau Gwaith Cyhoeddus (PWLB) ei hun yn yr hinsawdd sydd ohoni. Mae hefyd yn annhebygol y bydd y Cyngor yn gallu ad-dalu unrhyw ddyledion pellach cyn pryd, oni fyddai hynny’n rhan o drefniadau i aildrefnu dyledion. Fodd bynnag, petai cyfleoedd yn codi i ailstrwythuro byddai’r rheiny’n cael eu hystyried yn ofalus a byddai’r rhesymau dros aildrefnu o unrhyw fath yn cynnwys:

• creu arbedion ariannol a / neu arbedion llif arian gostyngol;

• helpu i gyflawni’r strategaeth fenthyca a amlinellir uchod; a

• gwella balans y portffolio (e.e. y proffil xxxxxxxx)

9. Y STRATEGAETH FUDDSODDI

9.1 Trosolwg

Bydd y Cyngor yn ystyried Canllawiau Llywodraeth Cymru ynghylch Buddsoddiadau Llywodraeth Leol, Cod Ymarfer a Nodiadau Canllaw Traws-sector diwygiedig CIPFA 2011 ynghylch Rheoli’r Trysorlys mewn Gwasanaethau Cyhoeddus, Rheoliadau Awdurdodau Lleol (Cyllid Cyfalaf a Chyfrifyddu) (Cymru) (Diwygio) 2004 OS1010 a xxxx o law (erbyn 01/04/2019 fan bellaf) Cod Ymarfer Rheoli’r Trysorlys CIPFA. Mae blaenoriaethau’r Cyngor o ran buddsoddi fel a ganlyn:

• Diogeledd y cyfalaf

• Hylifedd ei fuddsoddiadau.

Bydd y Cyngor hefyd yn anelu at sicrhau’r elw gorau ar ei fuddsoddiadau a hynny’n gymesur â lefelau priodol o ddiogeledd a hylifedd. Mae parodrwydd y Cyngor i dderbyn risg yn isel a hynny er mwyn rhoi blaenoriaeth i ddiogeledd ei fuddsoddiadau. Mae’n anghyfreithlon benthyg arian at ddibenion buddsoddi a gwneud elw’n unig ac ni wnaiff y Cyngor hynny.

9.2 Polisi Teilyngdod Credyd

Mae’r Pennaeth Cyllid yn defnyddio gwasanaeth teilyngdod credyd Link. Mae’r gwasanaeth hwnnw’n defnyddio dull modelu soffistigedig ac mae statysau credyd gan y tair asiantaeth sy’n gosod statysau credyd - Fitch, Moodys a Standard & Poors - yn greiddiol iddo. Fodd bynnag, nid yw’n dibynnu’n llwyr ar statws credyd cyfredol y gwahanol bartïon, mae’n defnyddio’r wybodaeth ganlynol hefyd:

• Gwylio credyd a rhagolygon credyd gan yr asiantaethau statws credyd

• Amrediadau Cytundebau Ffeirio Credyd (CDS) er mwyn rhoi rhybudd mewn xx xxxx o newidiadau tebygol mewn statws credyd

• Statysau xxxxxx xx mwyn xxxxx partïon i gontract o blith y gwledydd mwyaf dibynadwy yn unig

Mae’r dull hwn o fodelu’n cyfuno statysau credyd, gwylio credyd, rhagolygon credyd ac amrediadau Cytundebau Ffeirio Credyd (CDS) mewn system sgorio gytbwys a’r canlyniad yw cyfres o fandiau sydd wedi eu codio yn ôl lliwiau. Mae’r bandiau hynny’n dangos teilyngdod credyd cymharol y partion i gontract ac maent yn awgrymu uchafswm ar gyfer hyd y buddsoddiad. Mae’r Cyngor yn defnyddio cyfnodau uchafsymiol tebyg i’r rhai a awgrymir gan fethodoleg safonol Link a, heblaw am gadw buddsoddiadau sydd o xxx 1 flwyddyn o hyd.

Band Cyfnod	Cyfnod hiraf arfaethedig Link’s	Cyfnod arfaethedig y Cyngor
Melyn	5 mlynedd	1 flwyddyn
Piws	2 flynedd	1 flwyddyn
Glas	1 flwyddyn	1 flwyddyn	yn gymwys i fanciau’r Deyrnas Gyfunol sydd wedi eu gwladoli’n rhannol/yn llawn
Xxxx	1 flwyddyn	1 flwyddyn
Coch	6 mis	6 mis
Gwyrdd	100 niwrnod	100 niwrnod
Dim lliw	Nis defnyddir	Nis defnyddir

Caiff pob statws credyd ei fonitro xxx wythnos, ac fe hysbysir y Cyngor am newidiadau yn statysau pob un o’r tair asiantaeth trwy wasanaeth teilyngdod credyd Link’s, yn ogystal â bwletin wythnosol o statysau credyd cyfredol pob parti i gontract a bandiau cyfnodau. Pe bai rhyw israddio neu’i gilydd yn peri bod parti i gontract/cynllun buddsoddi yn methu â chyflawni meini prawf sylfaenol y Cyngor, ni wneir defnydd xxxxxxx xxxx i wneud buddsoddiadau newydd. Ar adegau yn y gorffennol mae Xxxx’x wedi gosod lliw gwyrdd yn lliw diofyn ar xxx parti i gontract, ac mae hwnnw’n nodi cyfnod benthyca uchaf o dri mis. O ran eglurder, os digwydd hynny eto, bydd y Cyngor yn ystyried cod lliw’r parti cyn gosod lliw diofyn, er mwyn penderfynu a yw’r parti i gontract yn cyflawni meini prawf y statws credyd cymeradwy a welir yn Atodiad B: Anecs 1 ac yna defnyddir y cyfnod uchaf o dri mis y mae Link’s yn ei awgrymu ar hyn x xxxx.

Fodd bynnag, ni ddibynnir yn llwyr ar wasanaeth teilyngdod credyd allanol Link’s; bydd y Pennaeth Cyllid hefyd yn defnyddio data/gwybodaeth am y farchnad a gwybodaeth ynghylch cymorth y llywodraeth i’r banciau a statws credyd cymorth y llywodraeth.

9.3 Gwrthbartïon Cyfredol

O ran y gwrthbartïon a ddefnyddir fel rhan o Strategaeth Fuddsoddi gyfredol 2017/18, yn gryno yr ydym yn canolbwyntio ar y canlynol:

• Dim buddsoddiadau am fwy na blwyddyn

• Dim buddsoddiadau gyda phartïon i gontract nad ydynt yn cyflawni meini prawf sylfaenol statws credyd a ddiffinnir yn ‘Wyrdd’ gan Link

• Rhestr sefydlog o bartïon (yn amodol ar gyflawni’r meini prawf sy’n ymwneud â statws credyd): Banc Barclays, grŵp Lloyds TSB, HSBC, Cymdeithasau Adeiladu Nationwide, Santander UK, Coventry, Leeds, Yorkshire, Skipton grŵp Royal Bank of Scotland, Standard Chartered Bank, UBS Ltd, Awdurdodau Lleol eraill a Chyfrif Swyddfa Rheoli Dyledion Llywodraeth y Deyrnas Unedig.

9.4 Strategaeth Arfaethedig 2018/19

Wrth wneud buddsoddiadau, cyfeirir at y balans craidd a’r gofynion o ran llif arian a fydd, yn gyffredinol, yn bolisi gweithredol o fuddsoddi am gyfnodau hyd at chwe mis. Fodd bynnag, os bydd cyllid xxxx xxx, yna gellid gwneud buddsoddiadau am gyfnodau hyd at flwyddyn. Gwneir hynny drwy gymryd cyngor gan ymgynghorwyr allanol y Cyngor yn ôl y gofyn, ystyried amgylchiadau cyfredol y farchnad, a sicrhau bod pob gwrthbarti a ddefnyddir yn ymddangos ar y Rhestr o Wrthbartïon Cymeradwy sydd yn Atodiad B (Anecs 1) ac yn cyflawni’r meini prawf sydd wedi eu pennu o ran statws credyd.

Mae rhestr gyflawn o offerynnau buddsoddi arfaethedig 2018/19 yn Atodiad B. Mae defnyddio Cronfeydd Eiddo wedi ei ychwanegu at y Categori Buddsoddiadau na Nodwyd yn benodol. Caiff terfynau’r gwrthbartïon eu hadolygu’n rheolaidd ac fe gaiff unrhyw newidiadau eu hawdurdodi gan y Pennaeth Cyllid. Mae’r rhestr ddiweddaraf o wrthbartïon arfaethedig i’w gweld yn Anecs 1 Atodiad B. Hefyd ni ragwelir y byddwn yn defnyddio Rheolwr Cronfa Allanol, ac eithrio i brynu Giltiau’r Llywodraeth a/neu Xxxxxx’r Trysorlys.

10. BUDDSODDIADAU GWLAD YR IÂ

Rhoddwyd diweddariadau rheolaidd i’r Cabinet ynghylch y sefyllfa ddiweddaraf o ran y 6 buddsoddiad sy’n gyfanswm o £5.5m a fuddsoddwyd ym manciau Glitnir, Heritable a Landsbanki. Mae’r Cyngor hyd yma wedi derbyn taliadau net o £5.439m. Yr unig eitem xxxx xxxxxxx yn weddill ac a gydnabyddir ar fantolen y Cyngor sy’n ymwneud â banc Heritable, lle nodir buddsoddiad o £9,000 sy’n ymwneud â’r swm a gedwir yn escrow, a gedwir yno o hyd hyd nes bydd canlyniadau unrhyw daliadau pellach yn hysbys o Weinyddwyr Heritable.

11. CONTRACT BANCIO

Xxx xxx y Cyngor gontract â Barclays i ddarparu gwasanaethau bancio fydd yn para tan 31/03/2021.

12. POLISI ISAFSWM DARPARIAETH REFENIW (MRP)

Yn ei gyfarfod ar 11/11/2015, bu’r Cyngor Llawn yn ystyried yn fanwl y Polisi Isafswm Darpariaeth Refeniw (MRP), ac fe’i cymeradwywyd ganddo. Yn gryno, mae’n cynnwys dull newydd ond darbodus o weithredu o ran cyfran o’r ddarpariaeth MRP lle caiff methodoleg xxxxxxx xxxx o 2% ei mabwysiadu o 2015/16 ymlaen ar gyfer yr xxxx Fenthyca â Chymorth cyfredol ac yn y dyfodol (cyn ac ar ôl 2008). Ni chafwyd unrhyw newid i’r polisi o ran Benthyca Darbodus Digymorth na’r egwyddor o beidio â chodi MRP ar Fenthyca Darbodus Digymorth dros dro (e.e. pan fyddwn yn aros i dderbyniadau cyfalaf ddod i law yn sgil gwerthu safleoedd ysgol diangen).

Mae Datganiad Polisi Isafswm Darpariaeth Refeniw 2018/19 i’w weld yn Atodiad C ac yn parhau’r â’r un modd o weithio fodd bynnag y xxx xxxxxxx yn symud at y cyfeiriad o ddefnyddio egwyddor methodoleg llinell wastad oes ased i elfen dyledion Cynllun Cyllid Preifat o gyfrifiad yr MRP o 01/04/2017 ymlaen. Mae hyn yn symud ymlaen o’r egwyddor o gynnwys dyled y Cynllun Cyllid Preifat ar y fantolen yn y blynyddoedd mwyaf diweddar.

	Oes Asesiad Effaith Integredig wedi ei gwblhau? Os na, esboniwch xxx	Na
Llesiant Cenedlaethau’r Dyfodol:	Crynodeb: Nid yw’r adroddiad yma’n cyfeirio at newid gwasanaeth
	Hirdymor:
	Integreiddio:
	Cydweithio:
	Cynnwys:
	Xxxx:

Argymhellion: Argymhellir bod y Cabinet yn nodi’r adroddiad ac:
a) yn cymeradwyo Strategaeth Rheoli’r Trysorlys fel y’i hamlinellir yn yr adroddiadau ar gyfer Benthyca a Buddsoddi; b) yn cymeradwyo’r Atodlen Buddsoddi fel y’i nodir yn Atodiad B; c) yn cymeradwyo’r Polisi Isafswm Darpariaeth Refeniw fel y’i nodir yn Atodiad C; d) yn dirprwyo awdurdod i’r Pennaeth Cyllid mewn ymgynghoriad â’r Aelod Cabinet Cyllid, Technoleg Gwybodaeth a Gwasanaethau Cwsmeriaid ynghyd â Thai, i newid Strategaeth Rheoli’r Trysorlys a’r Atodlen Buddsoddi yn ystod y flwyddyn;
ac yn argymell bod y Cyngor Llawn:
e) yn cymeradwyo Strategaeth Rheoli’r Trysorlys ar gyfer Benthyca a Buddsoddi 2018/19; a f) yn cymeradwyo Polisi Isafswm Darpariaeth Refeniw 2018/19.

Rheswm dros y penderfyniad:	Pennu Strategaeth Rheoli’r Trysorlys a’r Polisi Isafswm Refeniw ar gyfer 2018/19
Trosolwg a Chraffu:	I’w ystyried
Fframwaith Polisi:	Strategaeth Rheoli’r Trysorlys 2018/19
Blaenoriaethau Corfforaethol:	Mae Cyngor Ceredigion yn sefydliad sy’n addas at ei bwrpas er mwyn cyflwyno gwasanaethau sy’n gwella ac yn cyflawni anghenion ein dinasyddion.
Goblygiadau Ariannol:	Cyllid : Incwm Buddsoddi /Llog allanol i’w dalu
Pwerau Statudol:	Deddf Llywodraeth Leol 2003
Papurau Cefndir:	Dim
Atodiadau:	Atodiad A: Dangosyddion Darbodus sy’n ymwneud â Rheoli’r Trysorlys Atodiad B: Atodlen Buddsoddi Atodiad C: Polisi Isafswm Darpariaeth Refeniw 2018/19
Pennaeth Gwasanaeth:	Xxxxxxx Xxxxxxx (Pennaeth Cyllid)
Swyddog Adrodd:	Xxxxxx Xxxx (Cyfrifydd Grŵp)
Dyddiad:	18/01/2018

APPENDIX 1

CEREDIGION COUNTY COUNCIL

Report to:	Cabinet
Date of meeting:	13th February 2018
Title:	Treasury Management Policy Statement, Treasury Management Strategy for 2018/19 and Minimum Revenue Provision (MRP) Policy for 2018/19.
Purpose of the report:	To consider the Treasury Management Policy Statement, the Treasury Management Strategy for 2018/19 and the MRP Policy for 2018/19.
For:	DECISION
Cabinet Portfolio and Cabinet Member:	Corporate Resources – Finance Cllr Xxxxxx Xxxxxxx

1. INTRODUCTION

The Local Government Act 2003 requires the Council to set out its Treasury Management Strategy, which explains the Council’s policies for managing its investments and debt, and for giving priority to the security and liquidity of those investments. The Council has adopted the CIPFA Treasury Management in the Public Services Code of Practice (the Code) and this suggested Treasury Management Strategy has been prepared in accordance with the existing Code. However CIPFA have very recently issued an update to the Treasury Management Code of Practice and an updated Prudential Code. This will be complied with as soon as is practically possible and at the latest by 01/04/2019. It has been acknowledged that this an acceptable approach given the timing of the updates.

The Strategy needs to be approved annually by Full Council. There will also be a mid- year report, and at the end of the financial year there will be the Outturn Report. In addition there is regular review by Members as part of adhoc reports to the Corporate Resources Scrutiny committee, plus training to Members at appropriate points in time. The aim of these reporting arrangements is to ensure that those with various responsibilities for the Treasury Management function appreciate fully the implications of treasury management policies and activities, and that those implementing policies and executing transactions have properly fulfilled their responsibilities with regard to delegation and reporting. The suggested strategy for 2018/19 is based upon views on interest rates, supplemented with market forecasts provided by the Council’s Treasury advisor and covers:

• Treasury Management Policy Statement	• Prudential Indicators
• Treasury portfolio position	• Funding requirement
• Prospects for interest rates	• Borrowing strategy
• Debt rescheduling	• Investment strategy
• Creditworthiness Policy • Banking Arrangements	• Icelandic Investments • MRP Policy

The Council currently employs Link Treasury Solutions Ltd as the Council’s external Treasury advisor on a contract that runs until 31/08/2021. However, even by using external advisors, the responsibility for Treasury management decisions ultimately rests with the Council.

2. TREASURY MANAGEMENT POLICY STATEMENT

The Council defines its Treasury Management activities as ‘the management of the authority’s investments and cashflows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities and the pursuit of the optimum performance consistent with those risks’.

The Council 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 organisation, and any financial instruments entered into to manage those risks.

The Council 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.

3. PRUDENTIAL INDICATORS FOR 2017/18 TO 2020/21

The Prudential indicators shown in Appendix A are relevant for the purposes of setting an integrated Treasury Management Strategy. They formed part of the Overall Budget report to Cabinet on 23/01/18 and will be presented for final approval by Full Council on 22/02/18.

4. TREASURY PORTFOLIO POSITION

Details of the Council’s treasury portfolio are:

	As at 30/09/2017	As at 31/03/2017
	£m	£m
Fixed Rate borrowing
- PWLB	109.1	107.6
- Market loan	5.8	5.8
- WG Repayable Loan funding	1.8	1.3
Total Debt‌	116.7	114.7

Investments held
- In-house	26.7		10.9
Total Investments	26.7		10.9
Net Debt	90.0		103.8

The figures in the table are a snapshot at a point in time, therefore the actual level of borrowing and investments during the year may vary significantly, as income is received and payments are made.

5. FUNDING REQUIREMENT

The future funding requirement can be estimated by looking at the more significant cashflow items emanating from the combined impacts of the latest 3 year Capital Programme, the proposed 2018/19 budget (including use of reserves), the level of upcoming maturing debt and the actual level of current borrowing compared with the underlying need to borrow (also known as internal borrowing). Looking at each of these factors in turn:

	2018/19 Estimate £m	2019/20 Estimate £m	2020/21 Estimate £m
a) Latest Capital Programme and Revenue budgets Impact
WG Supported Borrowing	2.9	2.9	2.9
21st Century Schools programme	2.2	-	-
Repayment of Temporary Borrowing	-1.0	-0.3	-
Statutory debt payments set aside (MRP)	-2.6	-2.6	-2.7
Estimated funding requirement	1.5	-	0.2
b) Maturing Debt Impact
PWLB Maturity debt maturing	-	-	5.1
Estimated funding requirement	-	-	5.1
c) Internal Borrowing Position Impact
	31/03/18	31/03/19	31/03/20
Estimated Capital Financing Requirement	134.1	135.7	135.6
Estimated Gross External Borrowing	118.2	121.7	123.7
Estimated Difference	15.9	14.0	11.9
Further reduction in Internal Borrowing	2.0	2.0	-
TOTAL ESTIMATED funding requirement	3.5	2.0	5.3

Overall there is therefore an estimated borrowing requirement in the region of £10.8m over the coming 3 year period. The main driver behind this is a combination of PWLB debt maturing in 2020/21 and a further reduction in Internal borrowing over the period.

6. PROSPECTS FOR INTEREST RATES

The first rise in the Bank of England base rate from 0.25% to 0.50% took place on 02/11/2017. The MPC also gave forward guidance that they expect to increase Bank Rate only twice more in the next three years to reach 1.0% by 2020. Our Treasury advisors’ view is also that there will be a gradual increasing in bank rate to 1.0% by Q4 2019

Investment returns will therefore continue to remain low during 2018/19 and beyond, however conversely borrowing costs are also still at relatively historically low levels.

7. BORROWING STRATEGY

The Link forecast for borrowing rates (taking account of the PWLB certainty rate reduction (0.20%) are as follows:

• PWLB rates on loans of 5 years duration are expected to gradually rise to 1.8% by March 2019 and 2.1% by March 2020.

• There is expected to be no significant difference between 25 and 50 year PWLB rates, with rates expected to be move up gradually to 2.9%-3.1% by March 2019 and 3.2% to 3.4% by March 2020.

The Council is still maintaining an under-borrowed position as it is using internal borrowing in lieu of external borrowing. Effectively the full capital borrowing need (the Capital Financing Requirement excluding Other Long Term Liabilities) is a higher figure than the Council’s actual external loan debt as shown in the table in Section 5c).

Taking account of these factors, combined with the Council’s estimated funding requirement in Section 5, the Council’s proposed borrowing strategy will give consideration to new borrowing by taking account of the following:

• New PWLB loans (taking account of the shape of the yield curve and the current debt maturity profile) in order to meet the estimated borrowing requirement identified.

• Long term fixed rate market loans (where rates are significantly below PWLB rates for the equivalent maturity period), provided that an appropriate balance between PWLB and market debt is maintained across the debt portfolio.

• Temporary or short term borrowing from other local authorities or the money markets may be used for periods of up to 5 years,

• Consideration may be given to the Municipal Bonds Agency once its operations are fully established.

The Council will not borrow more than, or in advance of, its needs purely to profit from the investment of the extra sums borrowed. Any decision to borrow in advance of need will be within the approved Capital Financing Requirement estimates (one of the Prudential Indicators) and will be carefully considered to ensure that value for money can be demonstrated, that the Council can ensure the security of such funds and can afford the short term ‘cost of carry’.

Against this background, caution will continue to be adopted with the 2018/19 Treasury Management operations. The Head of Finance will monitor the interest rate market and adopt a pragmatic approach to changing circumstances, taking account of the prevailing advice from the Council’s external Treasury advisors and reporting any relevant decisions to Cabinet at the next available opportunity.

8. DEBT RESCHEDULING

There are limited options for PWLB to PWLB debt rescheduling in the current climate. It is also unlikely that the Council will be in a position to repay prematurely any further debt outright, unless it is part of debt rescheduling. However should any restructuring opportunities arise they would be carefully considered and the reasons for any rescheduling to take place will include:

• the generation of cash savings and / or discounted cash flow savings;

• help fulfill the borrowing strategy outlined previously; and

• enhance the balance of the portfolio (e.g. the maturity profile)

9. INVESTMENT STRATEGY

9.1 Overview

The Council will have regard to the WG Guidance on Local Government Investments, CIPFA’s revised 2011 Treasury Management in Public Services Code of Practice and Cross Sectoral Guidance Notes, the Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2004 SI1010 and in due course (by 01/04/2019 at the latest) the updated CIPFA Treasury Management Code of Practice. The Council’s investment priorities are:

• The security of capital

• The liquidity of its investments.

The Council will also aim to achieve the optimum return on its investments commensurate with proper levels of security and liquidity. The risk appetite of the Council is low in order to give priority to security of its investments. The borrowing of monies purely to invest and make a return is unlawful and the Council will not engage in such activity.

9.2 Creditworthiness Policy

The Head of Finance uses the creditworthiness service provided by Link. This service uses a sophisticated modelling approach with credit ratings from all three rating agencies - Fitch, Moodys and Standard & Poors, forming the core element. However, it does not rely solely on the current credit ratings of counterparties but also uses the following information:

• Credit watches and credit outlooks from credit rating agencies

• Credit Default Swap (CDS) spreads to give early warning of likely changes in credit ratings

• Sovereign ratings to select counterparties from only the most creditworthy countries

This modelling approach combines credit ratings, credit watches, credit outlooks and CDS spreads in a weighted scoring system for which the end product is a series of colour code bands. These bands indicate the relative creditworthiness of counterparties and assign a suggested maximum investment duration. The Council uses similar maximum durations to those suggest by Xxxx’x standard methodology, other than still keeping investments under 1 year in duration.

Durational band	Link’s suggested max duration	Council suggested duration
Yellow	5 years	1 year
Purple	2 years	1 year
Blue	1 year	1 year	applies to part/fully nationalised UK Banks
Orange	1 year	1 year
Red	6 months	6 months
Green	100 days	100 days
No colour	Not used	Not used

All credit ratings are monitored on a weekly basis, with the Council being alerted to changes to ratings of all three agencies through its use of Link’s creditworthiness service, combined with receiving a weekly bulletin of all counterparties’ current credit ratings and durational banding. If a downgrade results in the counterparty/investment scheme no longer meeting the Council’s minimum criteria, its further use for new investments will be withdrawn immediately. Link have, at certain previous points in time, overlaid all counterparties with a default colour of green, indicating a maximum lending period of 3 months. For absolute clarity should this happen again, the Council will look at a counterparty’s colour coding prior to this default overlay, in order to establish whether a counterparty meets the approved credit rating criteria in Appendix B: Annex 1 and then use the maximum 3 month time period that Xxxx are currently advising.

However, sole reliance will not be placed on the use of this external creditworthiness service provided by Link, the Head of Finance will also use market data/information and information on government support for banks and the credit ratings of that government support.

9.3 Current Counterparties

The counterparties being used as part of the current 2017/18 investment strategy focuses in summary on:

• No investments for longer than a 1 year duration

• No investments with any counterparty that does not meet the minimum credit rating criteria defined as ‘Green’ by Link

• Fixed counterparty (still subject to meeting credit rating criteria) list of: Barclays Bank, Lloyds Banking group, HSBC, Nationwide BS, Santander UK, Royal Bank of Scotland group, Coventry BS, Leeds BS, Yorkshire BS, Skipton BS, Standard Chartered Bank, UBS Ltd, Other Local Authorities and the UK Government DMO Account.

9.4 Proposed 2018/19 Strategy

Investments will be made with reference to the core balance and cashflow requirements which will generally be investing for periods of up to 6 months. However where surplus funds allow, then investments for up to a 1 year period may be made. This will be done through taking advice as required from the Council’s external advisors, taking account of prevailing market conditions, combined with ensuring any counterparty used is on the Approved Counterparty list in Appendix B (Annex 1) and meets the defined credit rating criteria.

The complete list of Investment instruments proposed for use in 2018/19 is shown in Appendix B. The use of Property Funds has been added to the Non-Specified Investment Category as a potential future option. Counterparty limits are reviewed regularly and any changes are authorised by the Head of Finance. The latest proposed counterparty list is attached as Annex 1 to Appendix B. It is also not envisaged that an External Fund Manager would be used, except for the purchase of Government Gilts and/or Treasury Bills.

10. ICELANDIC INVESTMENTS

Regular updates have been reported to Cabinet on the latest position relating to the 6 investments totalling £5.5m in Glitnir, Heritable and Landsbanki banks. The Council has so far received net payments totalling £5.439m. The only item now remaining outstanding and recognised on the Council’s balance sheet relates to Heritable bank, where an investment of £9,000 is shown relating to an amount being held in escrow, which is still due subject to the outcome of any further payment(s) from the Administrator of Heritable.

11. BANKING CONTRACT

The Council has a contract with Barclays for the delivery of banking services, which runs until 31/03/2021.

12. MINIMUM REVENUE PROVISION POLICY

Full Council gave detailed consideration to and approved a revised Minimum Revenue Provision (MRP) Policy at its meeting on 11/11/2015. In summary this included a new but prudent approach to part of the MRP provision, whereby a 2% straight line methodology for all current and future Supported Borrowing (pre and post 2008) from 2015/16 onwards was adopted. There was no change to the policy with respect to Unsupported Prudential Borrowing or the principal of not charging MRP on temporary unsupported Prudential borrowing (e.g. whilst awaiting the realisation of capital receipts from the sale of surplus school sites).

The proposed MRP Policy Statement for 2018/19 is attached as Appendix C and continues the same approach but also now moves to apply the asset life straight line methodology principle to the PFI debt element of the MRP calculation from 01/04/2017 onwards. This follows on from the principle of bringing the PFI liability onto balance sheet in recent years.

	Has an Integrated Impact Assessment been completed? If, not, please state why	No
Wellbeing of Future Generations:	Summary: This report does not refer to a service change
	Long term:
	Integration:
	Collaboration:
	Involvement:
	Prevention:

Recommendation(s): It is recommended that Cabinet notes the report and:
a) approves the Treasury Management Strategy outlined in the report for Borrowing and Investments; b) approves the Investment Schedule as set out in Appendix B; c) approves the Minimum Revenue Provision Policy as set out in Appendix C; d) delegates authority to the Head of Finance, in consultation with the Cabinet Member for Finance, ICT and Customer Services along with Housing, to amend the Treasury Management Strategy, and Investment Schedule, during the course of the year;
and recommends to Full Council:
e) the approval of the Treasury Management Strategy for Borrowing and Investments for 2018/19; and f) the approval of the Minimum Revenue

	Provision Policy for 2018/19.
Reasons for decision:	To set a Treasury Management Strategy and Minimum Revenue Policy for 2018/19
Overview and Scrutiny:	To be considered
Policy Framework:	2018/19 Treasury Management Strategy
Corporate Priorities:	Ceredigion County Council is an organisation that is fit- for-purpose to deliver improving services to meet the needs of our citizens
Financial Implications:	Finance: Investment Income/External interest paid
Statutory Powers:	Local Government Act 2003
Background Papers:	None
Appendices:	Appendix A: Treasury Management related Prudential Indicators Appendix B: Investment Schedule Appendix C: 2018/19 MRP Policy Statement
Head of Service:	Xxxxxxx Xxxxxxx (Head of Finance)
Reporting Officer:	Xxxxxx Xxxx (Group Accountant)
Date:	29/01/2018

Atodiad A

Dangosyddion Darbodus o ran Rheoli’r Trysorlys

(Yn deillio o’r adroddiad i’r Cabinet ar 13/01/2018 am y Rhaglen Gyfalaf a’r Dangosyddion Darbodus – Atodiad 4: Dangosyddion Darbodus)

DP4 Dyled gros a’r Gofyniad Cyllido Cyfalaf

I sicrhau bod dyled yn cael ei defnyddio at ddibenion cyfalaf yn unig yn y tymor canolig, dylai awdurdodau lleol sicrhau nad yw’r ddyled allanol gros, ac eithrio yn y tymor byr, yn fwy na chyfanswm y gofyniad cyllido cyfalaf yn y flwyddyn flaenorol ynghyd ag amcangyfrifon o unrhyw ofyniad cyllido cyfalaf ychwanegol ar gyfer y flwyddyn ariannol gyfredol a’r ddwy flynedd ariannol nesaf.

Yn ôl y Pennaeth Cyllid, ni chafodd yr awdurdod unrhyw anhawster o ran bodloni’r gofyniad hwn yn 2016/17 ac nid yw’n rhagweld unrhyw anawsterau yn y flwyddyn gyfredol na’r blynyddoedd i ddod. Mae’r farn hon yn ystyried yr ymrwymiadau presennol, y cynlluniau presennol a’r cynigion yn y rhaglen gyfalaf dair blynedd.

DP5 Terfyn awdurdodedig ar gyfer dyled allanol
	2017/18	2018/19	2019/20	2021/21
	£m	£m	£m	£m
Benthyca	135	142	145	148
Rhwymedigaethau hirdymor eraill	8	7	7	6
Cyfanswm	143	149	152	154

DP6 Terfyn gweithredol ar gyfer dyled allanol
	2017/18	2018/19	2019/20	2021/21
	£m	£m	£m	£m
Benthyca	129	136	139	142
Rhwymedigaethau hirdymor eraill	7	6	6	5
Cyfanswm	136	142	145	147

DP7 Dyled allanol wirioneddol

Dyled allanol wirioneddol y Cyngor ar 31/03/2017 oedd £121.7m

(a oedd yn cynnwys Benthyca Allanol o £114.7m a Rhwymedigaethau Hirdymor o £7.0m).

DP9 Cod Ymarfer CIPFA ar Reoli’r Trysorlys

Mae’r Cyngor wedi mabwysiadu Cod Ymarfer CIPFA ar gyfer Rheoli’r Trysorlys mewn Gwasanaethau Cyhoeddus. Fodd bynnag bu i CIPFA gyhoeddi Cod Ymarfer newydd yn hwyr ym mis Rhagfyr a chydymffurfir â hwn xxxx o law.

DP10 Terfyn uchaf ar gyfer amlygiad i gyfraddau llog sefydlog
	2017/18	2018/19	2019/20	2020/21
Terfyn uchaf ar gyfer amlygiad i gyfraddau llog sefydlog	100%	100%	100%	100%

DP11 Terfyn uchaf ar gyfer amlygiad i gyfraddau llog amrywiadwy
	2017/18	2018/19	2019/20	2020/21
Terfyn uchaf ar gyfer amlygiad i gyfraddau amrywiadwy	50%	50%	50%	50%

PD12 Strwythur aeddfedu benthyca ar gyfraddau sefydlog
	Terfyn uchaf	Terfyn isaf
Llai na 12 mis	20%	0%
12 mis ac o fewn 24 mis	20%	0%
24 mis ac o fewn 5 mlynedd	50%	0%
5 mlynedd ac o fewn 10 mlynedd	75%	0%
10 mlynedd a throsodd	95%	25%
Is-gategori 10 mlynedd a throsodd 50 mlynedd a throsodd	20%	0%

DP13 Terfyn uchaf ar gyfer cyfanswm y prifsymiau a fuddsoddir am gyfno o dros 364 diwrnod
2017/18	2018/19	2019/20	2020/21
£3.5m	£2.5m	£2.5m	£2.5m

Atodiad B

ATODLEN BUDDSODDI

Categori buddsoddi	Terfyn penodedig ar gyfer buddsoddiad unigol	Terfyn penodedig ar gyfer y categori buddsoddi	Meini prawf sgôr gredyd ‘uchel’	Diogelwch / Sgôr Gredyd ‘Uchel’ Isaf (Fitch neu gyfatebol)	Ad-daladwy/ Adbrynadwy o fewn 12 mis?	Amgylchiadau defnyddio’r buddsoddiad	Cyfnod buddsoddi mwyaf
BUDDSODDIADAU PENODEDIG (Rhaid i’r xxxx fuddsoddiadau a restrir isod fod mewn sterling a rhaid nad ydynt yn gyfalaf benthyciad na chyfranddaliad)
Swyddfa Rheoli Dyledion Llywodraeth y DU – Cyfleuster Adneuo’r Asiantaeth Rheoli Dyledion (DMADF)	Diderfyn	Diderfyn	Amherthnasol	Fe’u cefnogir gan Lywodraeth y DU	Ydyn	Mewnol	6 mis (Polisi DMO Presennol)
Banciau sydd wedi’u gwladoli’n llwyr neu’n rhannol gan Lywodraeth y DU (e.e. Northern Rock)	Gweler Atodiad 1	Gweler Atodiad 1	Lliw glas ym mandiau cyfnodol Link	Tymor byr F2	Ydyn	Mewnol	1 flwyddyn
Adneuon cyfnod penodol neu adneuon galw gyda Llywodraeth y DU neu gydag awdurdodau lleol (fel y’u diffinnir yn Neddf Llywodraeth Leol 2003)	Diderfyn ar gyfer Llyw. y DU, 6m fesul ALl	Diderfyn	Amherthnasol	Diogelwch uchel, ond nid oes gan yr Awdurdodau Lleol sgôr gredyd.	Ydyn	Mewnol	1 flwyddyn
Adneuon cyfnod penodol neu adneuon galw gyda sefydliadau sy’n derbyn adneuon a chanddynt sgôr gredyd (banciau a chymdeithasau adeiladu)	Gweler Atodiad 1	Gweler Atodiad 1	Melyn, Porffor, Xxxx, Coch xxx Wyrdd xx xxxxxxx cyfnodol Link *	Tymor hir A- Tymor byr F1	Ydyn	Mewnol	1 flwyddyn ar gyfer Melyn, Porffor xx Xxxx 6 mis ar gyfer Coch 100 diwrnod ar gyfer Gwyrdd
Tystysgrifau Adneuon a roddir gan sefydliadau sy’n derbyn adneuon a chanddynt sgôr gredyd (banciau a chymdeithasau adeiladu) (Angen trefniant gwarchodol cyn prynu)	£2.5m	£2.5m	Melyn, Porffor, Xxxx xxx Xxxx xx mandiau cyfnodol Link *	Tymor hir A- Tymor byr F1	Ydyn	Mewnol a rheolw(y)r cronfeydd allanol	1 flwyddyn
Giltiau Llywodraeth y DU (Angen trefniant gwarchodol cyn prynu)	£2.5m	£2.5m	Amherthnasol	Fe’u cefnogir gan Lywodraeth y DU	Ydyn	Mewnol a rheolw(y)r cronfeydd allanol	1 flwyddyn
Biliau’r Trysorlys (Angen trefniant gwarchodol cyn prynu)	£2.5m	£2.5m	Amherthnasol	Fe’u cefnogir gan Lywodraeth y DU	Ydyn	Mewnol a rheolw(y)r cronfeydd allanol	1 flwyddyn
Cronfeydd Hylifedd / Marchnad Arian y Llywodraeth – Nid oes gan y cronfeydd hyn ddyddiad aeddfedu a gellir cael mynediad atynt ar yr un diwrnod neu drwy roi diwrnod o rybudd fel rheol	£2m	£2m	AAA	Sgôr gredyd uchaf	Ydyn	Mewnol, yn amodol ar y canllawiau a’r terfynau y cytunwyd arnynt	Ni chaiff y cyfnod buddsoddi ei bennu ar y cychwyn, ond bydd yn dibynnu ar y gofynion llif arian a hylifedd

* Troednodyn – Cyn unrhyw droshaenu byrdymor

Categori buddsoddi	Terfyn penodedig ar gyfer buddsoddiad unigol	Terfyn penodedig ar gyfer y categori buddsoddi	Ad-daladwy/ Adbrynadwy o fewn 12 mis?	Amgylchiadau defnyddio’r buddsoddiad	Cyfnod buddsoddi mwyaf
BUDDSODDIADAU AMHENODEDIG

Cronfeydd Eiddo
£2.5m
£2.5m
Na Ystyrir y cronfeydd yma’n wariant cyfalaf. Cymerir diwydrwydd dyladwy, gan gynnwys cyngor oddi wrth ymgynghorwyr Trysorlys Allanol y Cyngor cyn ymgymryd â buddsoddiad o’r fath .
Mae’n bosib na phenderfynir ar y cyfnod buddsoddi ar y cychwyn fodd bynnag bydd yn ddibynnol ar lif arian a gofynion hylifedd

Atodiad B: ANECS 1

Terfyn penodedig buddsoddiad unigol fesul Grŵp Bancio	Terfyn penodedig y categori buddsoddi	Meini prawf sgôr gredyd (Ar sail bandiau cyfnodol Link)	Rhestr sefydlog o wrthbartïon penodol (caiff ei diweddaru’n gyson yng ngoleuni newidiadau i sgoriau credyd ac o ran bodloni’r meini prawf sgoriau credyd)
£7m	£7m	GLAS	Wedi’u gwladoli’n rhannol neu’n llwyr gan Lywodraeth y DU National Westminster Bank plc (gan gynnwys cyfrif galw mynediad uniongyrchol) The Royal Bank of Scotland Plc
£5m	£25m	XXXXX xxx BORFFOR neu XXXX xxx XXXX	Grŵp Bancio / Cymdeithas Adeiladu yn y DU(1): Unrhyw un o’r banciau neu’r cymdeithasau adeiladu yng nghategori Grŵp Bancio y DU / Cymdeithas Adeiladu (2) os yw eu statws yn newid o WYRDD i GOCH neu XXXX xxx PORFFOR neu FELYN plws HSBC Bank Plc (Xxxx ar 8/01/2018) Lloyds Bank Plc (Xxxx ar 8/01/2018) Bank of Scotland Plc (gan gynnwys cyfrifon galw mynediad uniongyrchol a 7 diwrnod) (Xxxx ar 8/01/2018) Cymdeithas Adeiladu Nationwide (Coch ar 8/01/2018) Cymdeithas Adeiladu Coventry (Coch ar 8/01/2018) Cymdeithas Adeiladu Leeds (Coch ar 8/01/2018)
£4m	£6.5m	XXXXX xxx BORFFOR neu XXXX xxx XXXX xxx WYRDD	Grŵp Bancio â rhiant-gwmni tramor: Santander UK plc gan gynnwys cyfrif galw mynediad uniongyrchol a chyfrif galw 95 diwrnod o rybudd (Coch ar 8/01/2018) Standard Chartered Bank (Gwyrdd ar 8/01/2018) UBS Ltd (Coch ar 8/01/2018)
£3m	£6m	XXXXX xxx BORFFOR neu XXXX xxx XXXX xxx WYRDD	Grŵp Bancio / Cymdeithas Adeiladu yn y DU (2): Unrhyw un o’r banciau neu’r cymdeithasau adeiladu yng nghategori Grŵp Bancio / Cymdeithas Adeiladu yn y DU (1) os bydd ei statws yn newid o GOCH i WYRDD, yn ogystal â Cymdeithas Adeiladu Yorkshire (Gwyrdd ar 8/01/2018) Cymdeithas Adeiladu Skipton (Gwyrdd ar 8/01/2018) Cymdeithas Adeiladu Leeds (Gwyrdd ar 8/01/2018)
£7m	£1m	XXXXX xxx BORFFOR neu XXXX xxx XXXX xxx WYRDD	Barclays Bank Plc * (Coch ar 8/01/2018) – Terfyn ar gyfer balansau dros nos ar gyfrifon banc corfforaethol
	£6m		Barclays Bank Plc * (Coch ar 8/01/2018) – Terfyn ar gyfer adneuon cyfnod penodol a rhybudd / mynediad ar unwaith . Terfynau Cyfrifon Galw ar gyfer xxxx falensau cyfrifon galw

* Troednodyn – Barclays sy’n darparu gwasanaethau bancio i’r Cyngor ar hyn x xxxx

ATODIAD C

Datganiad Polisi ar Isafswm Darpariaeth Refeniw 2018/19

1. Egwyddorion cyffredinol

a) Xxx Xxxxxx Isafswm Darpariaeth Refeniw arfaethedig y Cyngor ar gyfer 2018/19 yn dilyn egwyddorion y canllawiau a gyhoeddwyd gan Lywodraeth Cymru o xxx xxxxx 21(1A) o Ddeddf Llywodraeth Leol 2003, gan ddefnyddio un o’r opsiynau a amlinellir yn y canllawiau, yn ogystal â chyflwyno opsiwn arall a ategir gan yr egwyddor darpariaeth ddarbodus.

b) Pennir y cyfnodau oes amcangyfrifedig yn unol â’r Cod Ymarfer ar Gyfrifyddu Awdurdodau Lleol yn y Deyrnas Unedig oni bai fod Llywodraeth Cymru’n mynnu neu’n penderfynu fel arall. I’r graddau nad yw’r gwariant yn creu ased a’i fod yn wariant y mae cyfnodau oes amcangyfrifedig y cyfeirir atynt yn y canllawiau’n berthnasol iddo, bydd y Cyngor yn mabwysiadu’r cyfnodau hyn yn gyffredinol. Fodd bynnag, mae’r Cyngor yn cadw’r hawl i bennu cyfnodau oes defnyddiol ac isafswm darpariaeth refeniw darbodus mewn amgylchiadau eithriadol pan na fyddai argymhellion y canllawiau’n briodol.

c) Oherwydd nad oes modd cysylltu rhai mathau o wariant cyfalaf y Cyngor ag ased unigol, caiff oes ased ei hasesu ar y sail sy’n adlewyrchu cyfnod disgwyliedig y xxxx xx’n deillio o’r gwariant yn y modd mwyaf rhesymol. Hefyd, pa fath bynnag o wariant sydd o xxx sylw, bydd yn cael ei grwpio mewn modd sy’n adlewyrchu natur y brif elfen o wariant ac ni fydd ond yn cael ei wahanu mewn achosion lle xxx xxx xxx ragor o brif elfennau ac iddynt oes ddefnyddiol economaidd wahanol iawn i’w gilydd.

2. Dulliau o gyfrifo isafswm darpariaeth refeniw (MRP)

a) Bydd y gyfran fwyaf o MRP 2018/19 yn gysylltiedig â rhwymedigaethau dyledion mwy hanesyddol a oedd yn bodoli cyn 2008 neu ar ôl 2008 yn achos Benthyca â Chymorth a ariennir gan Lywodraeth Cymru (LlC). Darperir ar gyfer y rhwymedigaeth MRP ar Ofyniad Cyllido Cyfalaf y Cyngor sy’n gysylltiedig â dyledion cyn 2008 a Benthyca â Chymorth ar ôl 2008 a ariennir gan LlC drwy’r Grant Cynnal Refeniw drwy randaliadau blynyddol cyfartal dros gyfnod o 50 mlynedd (h.y. dull xxxxxxx xxxx o 2%) gan gychwyn ar 01/04/2015.

b) Gan fod Benthyca â Chymorth newydd pellach yn cael ei ddefnyddio yn y Rhaglen Gyfalaf, byddwn hefyd yn darparu ar gyfer rhwymedigaeth MRP pob cyfran newydd o Fenthyca â Chymorth drwy randaliadau blynyddol cyfartal dros gyfnod o 50 mlynedd (h.y. dull xxxxxxx xxxx o 2%).

c) Bydd y Benthyca Darbodus Digymorth a adlewyrchir o fewn y Gofyniad Cyllido Cyfalaf yn parhau i gael xx xxxx dros gyfnod sy’n gyfwerth â’r oes ddefnyddiol amcangyfrifedig sy’n berthnasol i natur y gwariant, gan ddefnyddio Opsiwn 3 (dull oes ased) yng nghanllawiau LlC a gyhoeddwyd yn 2010 a chymhwyso’r dull blwydd-dal.

d) Pan fyddwn yn ymgymryd â Benthyca Dros Dro yn lle derbyniadau cyfalaf a fydd yn dod i law yn y dyfodol (e.e. benthyciadau cyllid ad-daladwy LlC neu Fenthyca Darbodus Digymorth dros dro) byddwn yn parhau â’r egwyddor o beidio â chodi MRP e.e. pan fyddwn yn aros i dderbyniadau cyfalaf ddod i law ar ôl gwerthu asedau diangen.

e) Pan fydd ased yn cael ei hadeiladu, mae’r Cyngor yn cadw’r hawl i beidio â chodi MRP hyd nes y flwyddyn ariannol ar ôl y flwyddyn y mae’r gwariant cyfalaf yn cael ei wneud ac, yn achos ased newydd, y mae’r ased yn dechrau cael ei defnyddio.

f) O 01/04/2017 ymlaen codir tâl am drefniadau credyd PFI ac MRP dros gyfnod sy’n cyfateb ag amcangyfrif oes defnyddiol yr ased gan ddefnyddio egwyddor xxxxxxx xxxx.

g) Pan fydd MRP yn gysylltiedig â phroffil a bennwyd ymlaen llaw sy’n gysylltiedig â threfniant credyd (e.e. Prydles Gyllidol) bydd y cyfrifiad MRP yn cydweddu â’r proffil ad- dalu pwrpasol perthnasol.

h) Gall y Cyngor ddewis gwneud cyfraniadau MRP gwirfoddol yn ychwanegol at y cyfrifiadau MRP uchod ar unrhyw adeg. X.x. Xxxx y Cyngor ymdrin â chyfraniadau MRP gwirfoddol fel darpariaeth ‘ymlaen llaw’ (sy’n cael effaith debyg i ad-dalu dyled yn gynnar) a gall ailgyfrifo taliadau MRP yn y dyfodol yn unol â hynny.

Appendix A Treasury Management related Prudential Indicators

(Extracted from Capital Programme and Prudential Indicators report to Cabinet on 13/01/2018 - Appendix 4: Prudential Indicators)

PI4 Gross debt and the Capital Finance Requirement

In order to ensure that over the medium term debt will only be for a capital purpose, the local authority should ensure that gross external debt does not, except in the short term, exceed the total of capital financing requirement in the preceding year plus the estimates of any additional capital financing requirement for the current and next two financial years.

The Head of Finance reports that the authority did not have any difficulty in meeting this requirement in 2016/17, nor are there any difficulties envisaged for the current or future years. This view takes into account current commitments, existing plans, and the proposals in the three year capital programme.

PI5 Authorised Limit for External Debt‌
	2017/18	2018/19	2019/20	2020/21
	£m	£m	£m	£m
Borrowing	135	142	145	148
Other long term liabilities	8	7	7	6
Total	143	149	152	154

PI6 Operational Boundary for External Debt
	2017/18	2018/19	2019/20	2020/21
	£m	£m	£m	£m
Borrowing	129	136	139	142
Other long term liabilities	7	6	6	5
Total	136	142	145	147

PI7 Actual External Debt

The Council’s actual external debt at 31/03/2017 was £121.7m (consisting of External Borrowing of £114.7m and Long term liabilities of £7.0m).

PI9 CIPFA Code of Practice for Treasury Management

The Council has adopted the revised 2011 CIPFA Code of Practice for Treasury Management in Public Services. However CIPFA issued a new Code of Practice in late December which will be complied with in due course.

PI10 Upper Limit for Fixed Interest Rate Exposure
	2017/18	2018/19	2019/20	2020/21
Upper Limit for fixed interest rate	100%	100%	100%	100%

PI11 Upper Limit for Variable Interest Rate Exposure
	2017/18	2018/19	2019/20	2020/21
Upper Limit for variable rate exposure	50%	50%	50%	50%

PI12 Maturity Structure of Fixed Rate Borrowing
	Upper limit	Lower limit
Under 12 months	20%	0%
12 months & within 24 months	20%	0%
24 months & within 5 years	50%	0%
5 years & within 10 years	75%	0%
10 years & above	95%	25%
Sub-category within 10 years and above 50 years & above	20%	0%

PI13 Upper limit for total principal sums invested for over 364 days
2017/18	2018/19	2019/20	2020/21
£3.5m	£2.5m	£2.5m	£2.5m

Appendix B

INVESTMENT SCHEDULE

Category Of Investment	Specified Individual Investment Limit	Specified Category Investment Limit	‘High’ Credit Rating Criteria	Security / Minimum ‘High’ Credit Rating (Fitch or other equivalent)	Repayable/ Redeemable within 12 months?	Circumstance of use	Maximum period of investment
SPECIFIED INVESTMENTS (All investments listed below must be sterling-denominated and are not Share or Loan Capital)
UK Government Debt Management Office - Debt Management Agency Deposit Facility (DMADF)	Unlimited	Unlimited	N/A	UK Government- backed	Yes	In-house	6 months (Current DMO Policy)
Banks part or fully nationalised by the UK Government (E.g. Northern Rock)	See Annex 1	See Annex 1	Blue colour on Link durational bandings	Short term F2	Yes	In-house	1 year
Fixed Term and call deposits with the UK government or with local authorities (as defined in the Local Government Act 2003)	Unlimited for UK Gov’t, £6m per LA	Unlimited	N/A	High security, although Local Authorities not credit rated.	Yes	In-house	1 year
Fixed Term and call deposits with credit-rated deposit takers (banks and building societies)	See Annex 1	See Annex 1	Yellow, Purple, Orange, Red or Green colour on the Link durational bandings *	Long Term A- Short term F1	Yes	In-house	1 year for Yellow, Purple & Orange 6 months for Red 100 days for Green
Certificates of Deposits issued by credit-rated deposit takes (Banks & Building Societies (Custodial arrangement required prior to purchase)	£2.5m	£2.5m	Yellow, Purple, Orange or Red colour on the Link durational bandings *	Long Term A- Short term F1	Yes	In-house and External fund manager(s)	1 year
UK Government Gilts (Custodial arrangement required prior to purchase)	£2.5m	£2.5m	N/A	UK Government backed	Yes	In-house and External fund manager(s)	1 year
Treasury Bills (Custodial arrangement required prior to purchase)	£2.5m	£2.5m	N/A	UK Government backed	Yes	In-house and External fund manager(s)	1 year
Government Liquidity / Money Market Funds - These funds do not have any maturity date and can usually be accessed either on the same day or at one day’s notice	£2m	£2m	AAA	Highest credit rating	Yes	In-house, subject to the guidelines and parameters agreed	The period of investment may not be determined at the outset but would be subject to cash flow and liquidity requirements

* Footnote - Prior to any short term overlay

Category Of Investment	Non- Specified Individual Investment Limit	Non- Specified Category Investment Limit	Repayable/ Redeemable within 12 months?	Circumstance of use	Maximum period of investment
NON SPECIFIED INVESTMENTS
Property Funds	£2.5m	£2.5m	No	These funds can be deemed to be capital expenditure. Appropriate due diligence, including advice from the Council’s External Treasury advisors would be undertaken before investment of this type is undertaken	The period of investment may not be determined at the outset but would be subject to cash flow and liquidity requirements

Appendix B: ANNEX 1

Specified Individual Investment Limit per Banking Group	Specified Category Investment Limit	Credit Rating Criteria (Based on Link durational bandings)	Fixed List of Specific Counterparties (Subject to regular updating for credit rating changes and meeting Credit Rating criteria)
£7m	£7m	BLUE	Part or 100% nationalised by UK Government National Westminster Bank plc (Including Instant Access call account) The Royal Bank of Scotland Plc
£5m	£25m	YELLOW or PURPLE or ORANGE or RED	UK Banking Group / Building Society (1): Any of the banks or building societies in the UK Banking Group / Building Society category (2) if their status changes from GREEN to RED or ORANGE or PURPLE or YELLOW plus HSBC Bank Plc (Orange as at 08/01/2018) Lloyds Bank Plc (Orange as at 08/01/2018) Bank of Scotland Plc (Including Instant Access & 7 day call accounts) (Orange as at 08/01/2018) Nationwide Building Society (Red as at 08/01/2018 Coventry Building Society (Red as at 08/01/2018)
£4m	£6.5m	YELLOW or PURPLE or ORANGE or RED or GREEN	Foreign Banking Group parent: Santander UK plc including Instant Access call & 95 day notice account (Red as at 08/01/2018) Standard Chartered Bank (Red as at 08/01/2018) UBS Ltd (Orange as at 08/01/2018)
£3m	£6m	YELLOW or PURPLE or ORANGE or RED or GREEN	UK Banking Group / Building Society (2): Any of the banks or building societies in the UK Banking Group / Building Society (1) category if their status changes from RED to GREEN plus Yorkshire Building Society (Green as at 08/01/2018) Skipton Building Society (Green as at 08/01/2018) Leeds Building Society (Green as at 08/01/2018)
£7m	£1m	YELLOW or PURPLE or ORANGE or RED or GREEN	Barclays Bank Plc * (Red as at 08/01/2018) – Limit for overnight balances on corporate bank accounts
	£6m		Barclays Bank Plc * (Red as at 08/01/2018) – Limit for Fixed Term deposits and Notice/Instant access Call Accounts Limit for Call account balances

* Footnote – Barclays Bank are the Council’s current Banking Services provider

APPENDIX C

2018/19 MRP Policy Statement

1. General Principles

a) The Council’s proposed Minimum Revenue Provision (MRP) Policy for 2018/19 follows the principles of the guidance issued by the Welsh Government under section 21(1A) of the Local Government Act 2003, through using one of the options outlined in the guidance, combined with introducing a further option that is underpinned by the principle of prudent provision.

b) Estimated life periods will be determined in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom unless WG require or determine otherwise. To the extent that expenditure is not on the creation of an asset and is of a type that is subject to estimated life periods that are referred to in the guidance, these periods will generally be adopted by the Council. However, the Council reserves the right to determine useful life periods and prudent MRP in exceptional circumstances where the recommendations of the guidance would not be appropriate.

c) As some types of capital expenditure incurred by the Council are not capable of being related to an individual asset, asset lives will be assessed on a basis which most reasonably reflects the anticipated period of benefit that arises from the expenditure. Also, whatever type of expenditure is involved, it will be grouped together in a manner which reflects the nature of the main component of expenditure and will only be divided up in cases where there are two or more major components with substantially different useful economic lives.

2. Methods for calculating MRP

a) The major proportion of the MRP for 2018/19 will relate to the more historic debt liability that existed pre 2008 or post 2008 where it relates to Supported Borrowing funded by WG. The MRP liability on the Council’s Capital Financing Requirement that relates to pre 2008 debt and post 2008 Supported Borrowing funded by WG through RSG will be provided for through equal annual instalments over a 50 year period (i.e. 2% straight line approach) commencing 01/04/2015.

b) As further new Supported Borrowing is utilised in the Capital Programme, the MRP liability on each new tranche of Support Borrowing will also be provided for through equal annual instalments over a 50 year period (i.e. 2% straight line approach).

c) Unsupported Prudential Borrowing reflected within the Capital Financing Requirement will continue to be charged over a period commensurate with the estimated useful life applicable to the nature of expenditure, using Option 3 (Asset life method) of the 2010 WG guidance and applying the annuity method.

d) Where there is Temporary Borrowing in lieu of future Capital receipts (e.g. WG repayable finance loans or temporary Unsupported Prudential Borrowing) the principal of not charging MRP will continue, e.g. whilst awaiting the realisation of capital receipts from the sale of surplus assets.

e) Where an asset is under construction, the Council reserves the right to not make an MRP charge until the financial year after that in which the capital expenditure is incurred and in the case of a new asset comes into service use.

f) From 01/04/2017 onwards MRP on PFI credit arrangements will be charged over a period commensurate with the estimated useful life applicable to the asset and using a straight line approach.

g) Where MRP relates to a pre-determined profile linked to a credit arrangement (e.g. Finance Lease) then the MRP calculation will be in accordance with the relevant bespoke repayment profile.

h) The Council has the option of making additional Voluntary MRP contributions in addition to the above MRP calculations at any point in time. E.g. The Council may treat any Voluntary MRP as ‘up-front’ provision (having a similar impact to the early repayment of debt) and thus recalculate future MRP charges accordingly.