Issue - meetings

Treasury Management Outturn 2019 – 2020

Meeting: 24/06/2020 - Cabinet (Item 6)

6 Treasury Management Outturn for 2019/20 pdf icon PDF 798 KB

The Leader’s Portfolio

 

To consider report FIN/502 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 22 June 2020.

Minutes:

The Leader presented report FIN/502 of the Head of Corporate Finance which set out­ details of the Council’s annual treasury management review of activities and the actual prudential and treasury indicators for 2019/20.  The Cabinet noted that regulations required treasury management policy to be reviewed annually.  It was noted that the Council’s financial decisions for 2019/20 were taken in line with the Ethical Investment Policy.

 

Councillor Rana presented the O­verview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 22 June 2020, which included:

·       That confirmation had been provided that the major repairs reserve reduction had been spent throughout the year on capital spend mostly on new council dwellings.

·       Acknowledgment that investments were restricted as the Council was governed by CIFPA and the Government, and that the Treasury Strategy prioritises investments accordingly whilst providing an appropriate balance between security, liquidity, yield and ethical considerations.

·       Recognition that investment properties were evaluated annually and the neighbourhood parades were classed as non-operational properties, along with others with a similar description within the portfolio.

 

A recorded vote was taken on the recommendations in accordance with the Council’s Virtual Committee Procedure Rules.  The names of the Councillors voting for and against the recommendations, along with any abstentions, are recorded as set out below:

 

For the recommendations:

Councillors Irvine, Jhans, Lamb, Mullins, and P Smith. (5)

 

Against the recommendations:

None.

 

Abstentions:

None.

 

 

RESOLVED

 

That the Cabinet:

 

a)         approves the actual 2019/20 Prudential and Treasury Indicators as set out in the report;

 

b)         notes the Annual Treasury Management Report for 2019/20.

 

 

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.


Meeting: 22/06/2020 - Overview and Scrutiny Commission (Item 4)

4 Treasury Management Outturn 2019 – 2020 pdf icon PDF 798 KB

To consider report FIN/502 of the Head of Corporate Finance.

Minutes:

The Commission considered report FIN/502 with the Head of Corporate Finance 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:

·       Acknowledgement that all funds were managed internally.

·       Clarification offered on the maturity structure together with number of detailed holdings.

·       Confirmation provided that the major repairs reserve reduction had been spent throughout the year on capital spend mostly on new council dwellings.

·       In terms of income generation and creative investments, it was acknowledged that investments were restricted as the Council was governed by CIFPA and the Government. The Treasury Strategy prioritises investments accordingly whilst providing an appropriate balance between security, liquidity, yield and ethical considerations.

·       Explanations were sought and obtained on the details provided within appendices.

·       Recognition that investment properties were evaluated annually and the parades were classed as non-operational properties, along with others with a similar description within the portfolio.

 

RESOLVED

That Commission notes the report and requests that the views expressed during the debate, are fed back to the Cabinet through the Commission’s Comment sheet.