The Cabinet considered a report of the Chief Executive covering the treasury management activity for the period April 2018 to June 2018 and compliance with the treasury management strategy for that period.

Resolved:

1. That the Quarter One Treasury Management Report for 2018/19, 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 2018.

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 £0.826m of interest was earned during this three month period at an average rate of 4.90%. This is 4.54% over the average 7 day LIBID (London Interbank Bid Rate) and 4.40% over the average bank rate. The breakdown of this overall investment position is set out in section 8 of the submitted report.

5. 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 1^st April 1998) remained at the same level of £227.8m (HRA: £77.0m, GF: £150.8m) during the period from April to June 2018.

6.  That it be noted that during the quarter the level of financing for ‘invest to save’ schemes decreased from £8.74m to £8.72m.

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 2018/19 sets 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 & Resources Scrutiny Committee

Cabinet Member: Cllr Lamb