Issue - meetings

The Leader’s Portfolio

To consider report FIN/637 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission on 27 November 2023.

RESOLVED

That the Cabinet considered and notes reportFIN/637 and the treasury activity for the first two quarters of 2023/2024.

Reasons for the Recommendations

The Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice for Treasury Management (the TM Code) recommends that members be updated on treasury management activities regularly (Treasury Management Strategy, annual and mid-year reports). This report, therefore, ensures this Council is implementing best practice in accordance with the Code.

The Leader presented report FIN/637 of the Head of Corporate Finance.  The report provided an update on the Council’s Treasury Management Strategy for 2023/24. The report detailed that the current projection was that the Council would earn an additional £2.4m income from investments, which was up by £600k from the forecast in quarter 1. It was noted that the Council prioritises its investments as security of capital, liquidity, yield and ethical.

Councillor Ayling presented the Overview and Scrutiny Commission’s comments on the report OSC/315 to the Cabinet following consideration of the matter at its meeting on 27 November 2023, which included:

·            Acknowledgement that the ethical investment policy was considered prior to every investment undertaking.

·            Explanation was sought on the investment limits across detailed holdings and portfolios.

·            Recognition that the new strategy would be approved by Full Council in February 2024 (having been considered at OSC and Cabinet).

Councillor Crow was invited to speak on this item. Matters raised included disappointment with some of the levels of interest rates achieved on some of the Council’s investments including the 1.5% with Derbyshire CC.

Councillor Jones and the Head of Corporate Finance spoke as part of the discussion on the report and provided clarification on several of the comments raised. 

RESOLVED

That the Cabinet considered and notes reportFIN/637 and the treasury activity for the first two quarters of 2023/2024.

Reasons for the Recommendations

The Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice for Treasury Management (the TM Code) recommends that members be updated on treasury management activities regularly (Treasury Management Strategy, annual and mid-year reports). This report, therefore, ensures this Council is implementing best practice in accordance with the Code.

To consider report FIN/637 of the Head of Corporate Finance.

The Commission considered report FIN/637 of the Head of Corporate Finance. The report provided an update on the Council’s Treasury Management Strategy for 2023/24.

During the discussion with the Leader of the Council, Head of Corporate Finance and Chief Accountant, the following comments were made:

·         Acknowledgement that the ethical investment policy was considered prior to every investment undertaking.

·       Confirmation sought on the investment performance (Bail-in Exposure) and officers would look into the possibility of providing equivalent figures in pounds sterling. It was thought that it would be beneficial that a “Bail-In” definition be provided within the report.

·         Explanation was sought on the investment limits across detailed holdings and portfolios.

·         Recognition that the new strategy would be approved by Full Council in February 2024 (having been considered at OSC and Cabinet).

·         Confirmation that the Council’s treasury advisor was Arlingclose Limited, and the Council would have to make a decision to diverge from the advice provided. It was important that in accordance with the Treasury Management Code that the Council’s investments priorities were security of capital, liquidity, yield and ethical investment policy.

RESOLVED

That the Commission noted the report and requested that the views expressed during the debate, were fed back to the Cabinet through the Commission’s Comment sheet.