Decision details

Treasury Management Report 2021/22

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Decision:

The Cabinet considered a report of the Executive Director (Finance and Resources) covering the treasury activity for the period April 2021 to March 2022 and reviewed performance against the Prudential Indicators for 2021/22.

 

Resolved:

 

1. That the Treasury Management Report for 2021/22 and the outturn Prudential Indicators for 2021/22, be approved.

 

2. That it be noted that the financing of 2021/22 capital expenditure of £68.969m has been funded in accordance with the schedule set out in Table 2 of Section 4 of the submitted report.

 

3. That it be noted that the Capital Financing and Treasury Management were carried out in accordance with statutory requirements, good practice and in compliance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Prudential Code during 2021/22.

 

4. That, in respect of the return on investment and borrowing, the following matters be noted:

 

·       The loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk.

·       £1.593m of interest and income were earned during 2021/22 at an average rate of 0.97%.  This is 0.83% over the SONIA rate (Sterling Overnight Index Average) and 0.78% over the average bank base rate.  Also, the value of the externally managed funds increased by a net of £4.801m due to the changes in the unit price, giving a combined return of 3.89%.

·       The level of borrowing from the Public Works Loan Board (PWLB) (excluding debt relating to services transferred from Essex County Council on 1st April 1998) started the year at £310.3m and increased to £347.3m (Housing Revenue Account (HRA): 74.2m, General Fund (GF): £273.1m) by the end of 2021/22.

·       The level of financing for ‘invest to save’ schemes decreased from £8.53m to 8.39m by the end of 2021/22.

 

5. That the limit on deposits with any one Property Fund be increased from £25m to £30m.

 

Reasons for decision:

 

The CIPFA Code of Practice on Treasury Management recommends that Local Authorities should submit reports regularly.  The Treasury Management Policy Statement for 2021/22 set out that reports would be submitted to Cabinet quarterly on the activities of the treasury management operation.

 

Other options:

 

There are many options available for the operation of the Treasury Management function, with varying degrees of risk associated with them.  The Treasury Management Policy aims to effectively control risk to within a prudent level, whilst providing optimum performance consistent with that level of risk.

 

Note; This is an Executive Function

Eligible for call-in to: Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Collins

Report author: Joe Chesterton

Publication date: 17/06/2022

Date of decision: 14/06/2022

Decided at meeting: 14/06/2022 - Cabinet

Accompanying Documents:

 

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