Treasury Management - Quarter 3 2020/21
Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: No
The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the Quarter Three Treasury Management Report covering the treasury management activity and compliance with the treasury management strategy for both quarter three and the period from April to December 2020.
1. That The Quarter Three Treasury Management Report for 2020/21, 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 December 2020.
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 £1.226m of interest and income distributions for all investments were earned during this nine month period at an average rate of 1.07%. This is 1.13% over the average 7 day LIBID (London Interbank Bid Rate) and 0.97% over the average bank rate. Also the value of the externally managed funds decreased by a net of £0.183m due to changes in the unit price, giving a combined overall return of 0.91%. (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 1st April 1998) remained at £310.3m (Housing Revenue Account (HRA): £75.0m, GF: £235.3m) during the period from April to December 2020.
6. That it be noted that the level of financing for ‘invest to save’ capital schemes decreased from £8.64m to £8.58m during the period from April to December 2020.
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 2020/21 set out that reports would be submitted to Cabinet quarterly on the activities of the treasury management operation.
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 Woodley
Report author: Joe Chesterton
Publication date: 26/02/2021
Date of decision: 23/02/2021
Decided at meeting: 23/02/2021 - Cabinet