Quarter One Treasury Management Report
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The Cabinet considered a report of the Chief Executive covering the treasury management activity for the period from April 2017 to June 2017.
1. That the Quarter One Treasury Management Report for 2017/18, be approved.
2. That it be noted that the Treasury management activities were carried out in accordance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management in the Public Sector during the period from April to June 2017.
3. That it be noted that the loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk.
4. That it be noted that an average of £48.6m of investments were managed in-house. These earned £0.052m of interest during the three month period at an average rate of 0.43%. This is 0.32% over the average 7-day LIBID and 0.18% over the bank base rate.
5. That it be noted that an average of £5.0m was managed by an enhanced cash fund manager. This earned £0.006m during this three month period at an average rate of 0.52%.
6. That it be noted that an average of £15.2m was managed by two short dated bond fund managers. This earned £0.046m during this three month period from a combination of an increase in the value of the units and income distribution, giving a combined return of 1.21%.
7. That it be noted that an average of £15.9m was managed by two property fund managers. These earned £0.403m during this three month period from a combination of an increase in the value of the units and income distribution, giving a combined return of 10.14%.
8. That it be noted that 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) remained at the same level of £227.8m (HRA: £77.0m, GF: £150.8m) during the period from April to June 2017.
9. That it be noted that during the quarter the level of financing for ‘invest to save’ schemes increased from £7.90m to £8.75m.
Reason for Decision
The CIPFA Code of Practice on Treasury Management recommends that Local Authorities should submit reports regularly. The Treasury Management Policy Statement for 2017/18 sets out that reports would be submitted to Cabinet quarterly on the activities of the treasury management operation.
Note: This is an Executive Function
Eligible for call in to: Policy & Resources Scrutiny Committee
Executive Councillor: Moring
Report author: Joe Chesterton
Publication date: 22/09/2017
Date of decision: 19/09/2017
Decided at meeting: 19/09/2017 - Cabinet
Effective from: 30/09/2017