Issue - meetings

The Leader’s Portfolio

To consider report FIN/442 of the Head of Finance, Revenues and Benefits, which was referred to the meeting of the Overview and Scrutiny Commission held on 25 June 2018.

The Leader of the Council presented report FIN/442 on the Treasury Management Outturn for 2017/18. The Cabinet was informed that Councillors were required under regulations to regularly review and scrutinise the Council’s treasury management policy and performance. The report provided details of the outturn position for treasury activities and highlighted compliance with the Council’s policies previously approved by Councillors. The report also meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Local Authorities (the Prudential Code).

Councillor Cheshire presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 25 June 2018. The Cabinet noted the Commission’s comments.

RESOLVED

That the Cabinet approves the actual 2017/18 Prudential and Treasury Indicators as set out in the report FIN/442 and notes the Annual Treasury Management Report for 2017/18.

Reasons for the Recommendations

The Council’s financial regulations, in accordance with the CIPFA Code of Practice for Treasury Management, requires an annual review following the end of the year describing the activity compared to the Strategy. This report complies with these requirements.

To consider report FIN/442 of the Head of Finance, Revenues and Benefits.

The Commission considered report FIN/442 with the Leader of the Council, the Head of Finance, Revenues and Benefits and the Chief Accountant. The CIPFA Code of Practice for Treasury Management recommends that Councillors be updated on treasury management activities regularly and the report ensured the Council was implementing best practice in accordance with the Code.  The report provided details of the outturn position for treasury activities and highlighted compliance with the Council’s policies previously approved by Councillors.

During the discussion, the following points were expressed:

·         Investment decisions were based on the Treasury Management Strategy which used Treasury indicators for 2017/18. Councillors were subsequently updated on outcomes through the budget monitoring and mid-year review process, along with capital programme updates.

·         Confirmation that investment funds were a mixture of fixed and variable rates.

·         Recognition that the Council’s financial regulations are in accordance with the CIPFA Code of Practice for Treasury Management and the Prudential Code for Capital Finance in Local Authorities.

·         Explanation sought and obtained on the detailed holdings including ratings and maturity.

·         Agreement that details of reserves could be included in future reports.

·         It was noted that external advisors provided information and guidance.

·         Recognition that the Council’s policy was to invest accordingly whilst providing an appropriate balance between security, liquidity, yield and ethical considerations.  Whilst the fourth criterion had been applied, it had not prevented any investment from being undertaken as a result of its consideration.

·         It was noted that 68% of investments at year-end were with other local authorities. Whilst this was historically unusual, it is in line with other authorities and is due to the rates being similar or higher than rates offered by banks during 2017/18.

RESOLVED

That the Commission supported the recommendations to the Cabinet.