RFP for External Treasury Management Services

Ava Community Energy is seeking a qualified organization to provide treasury management and advisory services to manage Ava’s free cash balances. The treasury management services would encompass the following scope of work:

• Work with Ava’s Finance Department to develop a robust investment policy as well as create and deploy investment strategies that align with Ava’s Policy, liquidity needs, and risk tolerance.
• Assess the market risk of investments and report findings to Ava’s Finance Department and, on an ad-hoc basis, to Ava’s Executive Management.
• Provide market research and analysis of the yield curve.
• Work diligently with Ava’s Legal Department to ensure compliance with all legal requirements associated with proposed investments.
• Attend meetings of the Finance Department, Board, or other Committees on an as-needed basis. (Virtual or in-person attendance is currently acceptable.)
• Provide monthly, quarterly, and annual reports on the performance of the portfolio with metrics including, but not limited to:
  • Portfolio composition, portfolio return, maturity, weighted average maturity, transaction activity, maturity date, accrued interest, market and book values, yield to maturity, days to maturity, and portfolio summary statistics.
  • Monthly statements should be provided by the 5th business day following the end of the monthly and quarterly statements; and the annual statement should be provided by the 15th business day following the end of the fiscal year (Ava’s fiscal year end is June 30). If these proposed statement timelines are problematic for the proposing organization, please suggest alternatives and the reason for the suggestion.
• Assist with the development of Ava’s Investment Policy, alongside Ava’s Finance Department, Legal Department, and custodian, and monitor any changes to the California Government Code that would affect the Investment Policy.
• Monitor and remain up-to-date on market conditions, general economic developments, and possible regulation changes in order to make recommendations on treasury management strategies, goals, or possible changes to Ava’s Investment Policy.
• Assist in establishing such new accounts as appropriate to implement proposed treasury management strategies.
• Provide Ava staff access to online investment accounts and reports.
• Assist with cash flow and maturity analysis.
• Assist with the end-of-year audit and reporting.