Treasury Management
We work with clients to help select banking services or analyze your current banking provider for the cash management program. This work can be labor intensive, and our team is committed to conducting a thorough analysis of services and fees, existing contractual items, and long-term cash management goals.
In the end, it may result in a competitive banking request for proposal (RFP), or a re-worked contract of an existing provider. Either way, it should result in value for the public entity via improved and inclusive banking services, as well as cost savings attributed to the negotiation or competitive pricing analysis.
Arbitrage Rebate*
Ensures overall compliance and savings for our clients with respect to arbitrage rebate services including:
Arbitrage Calculation:
- Assess whether the issue is subject to arbitrage rebate requirements (including an analysis to ascertain whether any “spending exceptions” or “small issuance exceptions” apply).
- Calculate the bond yield, as required under existing regulations (except where previously computed and provided to us).
- Calculate earnings from investment of bond proceeds (including a calculation of investment yield) to assess if any rebate to the federal government is required.
- Calculate the more complicated refunding bond issues with transferred proceeds or commingled funds.
- Analyze the data contained in source documents, helping to evaluate whether bond proceeds are included in the calculations.
- Advise you of situations we become aware of while completing the arbitrage calculation that bond counsel consultation is recommended.
- Work closely with bond counsel to resolve any questions that may arise.
- Prepare a detailed report on arbitrage rebate that includes cumulative results since the issue date.
- Prepare the necessary Form 8038T and reports to accompany any required payment to the U.S. Treasury.
Yield Reduction Payment Calculation:
- Assess whether the issue has specific type funds outside a stated temporary period subject to yield restriction requirements (including analysis to ascertain whether any exceptions or minor portions apply).
- Calculate the materially higher bond yield as required under regulations (including a calculation of investment yield) to assess if any yield reduction payment due to the federal government is required.
- Prepare a detailed yield reduction calculation that includes cumulative results since end of the unrestricted temporary period.
- Prepare the necessary Form 8038T and reports to accompany any required payment to the U.S. Treasury.
*Arbitrage Rebate Services are provided by one of our trusted partners