From: Horsley, Steve To: Subject: FOI 20092898 Date: 08 February 2013 10:08:00
Dear
Freedom of Information Act 2000
Thank you for requesting financial information which the Council received on 29th January 2013. Your request has been considered under the Freedom of Information Act 2000.
You have requested the following information:
• For the complete suite of council financial services (transactional banking and investment), which *provider(s) does the Council currently use, and how many individual accounts are held with each listed financial services provider? (2010/11 and 2011/12 financial years).
• How frequently are the various financial services procured, and when is the existing arrangement due to end (month/ year) - for each listed provider?
• What was the average balance(s)/ cap on investment(s); of accounts held with each listed provider as at last audit? (for transactional & investment banking).
• Please provide the specific procurement criteria and weighting that the council uses to assesses and procures financial services.
• Detail if, and how, the procurement criteria, weighting, and assessment process has been reviewed and modified, to give effect to Best Value Guidance and the Public Services (Social Value) Act 2012 to maximize public socio- economic value via procurement.
My enquires can confirm :
For the complete suite of council financial services (transactional banking and investment), which *provider(s) does the Council currently use, and how many individual accounts are held with each listed financial services provider? (2010/11 and 2011/12 financial years).
Transactional Banking
The Council operates 5 accounts with HSBC and 3 accounts with Santander – applicable for both years in question.
Investments
Investment criteria varies throughout the year dependent on the individual credit rating of the institution.
For 2010/2011 37 number of different institutions were used of which 31 were local authorities (Peer-to Peer lenders) HSBC BANK
BARCLAYS BANK PLC
ROYAL BANK OF SCOTLAND
SANTANDER UK plc
NATIONWIDE B/SOCIETY
DEBT MANAGEMENT ACCOUNT
BIRMINGHAM CITY COUNCIL
BOURNEMOUTH BOROUGH COUNCIL
LONDON BOROUGH OF BRENT
BRISTOL CITY COUNCIL
CALDERDALE COUNCIL
CHELTENHAM BOROUGH COUNCIL
EAST DUNBARTONSHIRE
EASTLEIGH BOROUGH COUNCIL
GLASGOW CITY COUNCIL
HINCKLEY & BOSWORTH
LANCASHIRE COUNTY COUNCIL
MERSEYSIDE POLICE
LEEDS CITY COUNCIL
MERTHYR TYDFIL COUNTY COUNCIL
NEWPORT CITY COUNCIL
NORTHAMPTONSHIRE
NOTTINGHAM CITY COUNCIL
PLYMOUTH CITY COUNCIL
READING BOROUGH COUNCIL
REIGATE & BANSTEAD
SALFORD CITY COUNCIL
SHEFFIELD CITY COUNCIL
SOUTH AYRSHIRE COUNCIL
SOUTH LANARKSHIRE COUNCIL
SOUTHAMPTON CITY COUNCIL
STOCKPORT MBC
THURROCK BOROUGH COUNCIL
WEST BERKSHIRE
WEST MIDLANDS INTEGRATED TRANSPORT AUTHORITY
WEST YORKSHIRE FIRE & RESCUE
WEST YORKSHIRE POLICE
For 2011/2012 38 number of different institutions were used of which 32 were local authorities (Peer-to Peer lenders)
HSBC BANK
BARCLAYS BANK PLC
ROYAL BANK OF SCOTLAND
SANTANDER UK plc
NATIONWIDE B/SOCIETY
DEBT MANAGEMENT ACCOUNT
BIRMINGHAM CITY COUNCIL
BLAENAU GWENT COUNTY BC
BOURNEMOUTH BOROUGH COUNCIL
BRIDGEND COUNTY COUNCIL
BRISTOL CITY COUNCIL
CALDERDALE METROPOLOTAN COUNCIL
CHESTERFIELD BOROUGH COUNCIL
GREATER LONDON AUTHORITY
HALTON BOROUGH COUNCIL
HARTLEPOOL BC
HERTFORDSHIRE
HINCKLEY & BOSWORTH
HUNTINGDONSHIRE
LANCASHIRE COUNTY COUNCIL
LEEDS CITY COUNCIL
LONDON BOROUGH OF NEWHAM
LONDON BOROUGH OF WALTHAM
MAYOR'S OFFICE METROPOLITAN POLICE
NEATH and PORT TALBOT CBC
NEWPORT CITY COUNCIL
NORTH LANARKSHIRE COUNCIL
NORTHAMPTONSHIRE CC
NOTTINGHAM CITY COUNCIL
NOTTINGHAMSHIRE POLICE
PLYMOUTH CITY COUNCIL
SALFORD CITY COUNCIL
STOCKPORT MBC
TELFORD and WREKIN
THURROCK BOROUGH COUNCIL
TORFAEN COUNTY COUNCIL
WEST LOTHIAN COUNCIL
WEST YORKSHIRE FIRE & RESCUE
How frequently are the various financial services procured, and when is the existing arrangement due to end (month/ year) - for each listed provider?
Transactional banking arrangements are reviewed every 5 years. Existing arrangement due to end March 2014
Investment arrangements are reviewed daily on the basis of credit ratings, availability of counterparties for investment and available investment limit capacity.
What was the average balance(s)/ cap on investment(s); of accounts held with each listed provider as at last audit? (for transactional & investment banking).
Cap on investments is limited to £10m per institution. Balances at last audit 31/3/2012 SANTANDER UK PLC 6,000,000.00 ROYAL BANK OF SCOTLAND 6,000,000.00 THURROCK BOROUGH COUNCIL 4,750,000.00 LEEDS CITY COUNCIL 3,000,000.00 HSBC BANK PLC 5,400,000.00 BLAENAU GWENT COUNTY B.C 3,000,000.00 NEWPORT CITY COUNCIL 2,500,000.00 NEATH and PORT TALBOT CBC 3,500,000.00 HUNTINGDONSHIRE 2,000,000.00 LEEDS CITY COUNCIL 5,000,000.00
INVESTEC LIQUIDITY PLUS FUND 900,930.21
INVESTEC LIQUIDITY SHORT DATED FUND 6,307,673.17
IINESTEC TARGET FUND 1,830,081.95
PAYDEN STERLING RESERVE FUND 5,019,556.07
Please provide the specific procurement criteria and weighting that the council uses to assesses and procures financial services.
Transactional Banking is based on 60% quantitative, 40% qualitative (comprising 30% service deliver, 10% management arrangements)
Must be authorised and regulated by the Financial Services Authority , subscribe to the Banking Code, be a member of the Financial Ombudsman Service and be licensed by the Office of Fair Trading
Investments
· Dependent on Credit Rating of the institution · Credit Default Swaps (an indicator of risk based on the cost of insuring against non payment); · Sovereign support mechanisms; · Share prices; · Corporate developments; · Financial media reviews and commentaries.
Detail if, and how, the procurement criteria, weighting, and assessment process has been reviewed and modified, to give effect to Best Value Guidance and the Public Services (Social Value) Act 2012 to maximize public socio-economic value via procurement.
Prospective tenderers for transactional banking will be taken from the Eastern Shires Purchasing Organisation (ESPO) framework contract. As such, I believe the Public Services (Social Value) Act 2012 does not apply. Also, tenderers must be authorised and regulated by the Financial Services Authority and be capable of providing a service so this limits the number of organisations that can tender. It is expected that the Co-operative Bank will be part of the framework contract.
Investment opportunities are not procured they are governed by our Treasury Management Strategy which incorporates the points detailed in the question above.
Please note that most of the information that you request is owned by the Coventry City Council and subject to copyright protection. Under the Re-Use of Public Sector Information 2005 Regulations you are free to use this information for your own use or for the purposes of news reporting. However, any other type of re-use under the Regulations, for example; publication of the information or circulation to the public, will require permission of the copyright owner and may be subject to terms and conditions. For documents where the copyright does not belong to Coventry City Council you will need to apply separately to the copyright holder.
If you wish to apply to reuse the information you have requested or have any other issues relating to this request please do not hesitate to contact me.
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Information Governance Team, Coventry City Council Room 21a, Lower Ground Floor, Council House, Earl Street Coventry. CV1 5RR [email protected]
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Yours sincerely
Steve
Steve Horsley Legal Services Manager Legal Services 4th Floor Christchurch House Greyfriars Lane Coventry CV1 2QL
Tel: 024 7683 3121 Fax: 024 7683 2527