Public Sector

The Prudential Code has transformed the local authority finance market. A local authority now has a responsibility to establish value for money when entering into agreements for the financing of capital assets and intangible costs. Calculation of the implicit interest rate answers only part of the question. It is the measurement of both the quantitative and qualitative costs and benefits that determine whether a proposal offers value for money. Assessing value for money can be further complicated when the financing is embedded within a service agreement.

Local authorities may also have existing financing agreements that need investigation in order to ensure that any extension or termination is undertaken on terms that are favourable to it rather than for third parties.

Quartz Finance offers consultancy services to help local authorities establish value for money plus evaluate potential savings or benefits to be derived from investment in new projects. We can also work with local authorities to achieve better contract and financing terms for new transactions as well as help them minimise end of lease costs on existing agreements.