Issue - meetings

Treasury Management Report - Mid Year 2020/21

Meeting: 03/11/2020 - Cabinet (Item 525)

525 Treasury Management Report - Mid Year 2020/21 pdf icon PDF 167 KB

Report of Executive Director (Finance and Resources)

Additional documents:

Decision:

The Cabinet considered a report of Executive Director (Finance and Resources) presenting the Mid-Year Treasury Management Report covering the treasury management activity and compliance with the treasury management strategy for both quarter two and the period from April to September 2020.

 

Resolved:

 

1. That the Treasury Management Mid Year Position 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 September 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 £0.842m of interest and income distributions for all investments were earned during this six month period at an average rate of 1.08%. This is 1.14% over the average 7 day LIBID (London Interbank Bid Rate) and 0.98% over the average bank rate. Also the value of the externally managed funds decreased by a net of £0.767m due to changes in the unit price, giving a combined overall return of 0.10%.

 

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, General Fund: £235.3m) during the period from April to September 2020.

 

5. That it be noted that the level of financing for ‘invest to save’ schemes decreased from £8.64m to £8.59m during the period from April to September 2020.

 

Reasons for Decisions:

 

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.

 

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 Woodley

Minutes:

The Cabinet considered a report of Executive Director (Finance and Resources) presenting the Mid-Year Treasury Management Report covering the treasury management activity and compliance with the treasury management strategy for both quarter two and the period from April to September 2020.

 

Resolved:

 

1. That the Treasury Management Mid Year Position 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 September 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 £0.842m of interest and income distributions for all investments were earned during this six month period at an average rate of 1.08%. This is 1.14% over the average 7 day LIBID (London Interbank Bid Rate) and 0.98% over the average bank rate. Also the value of the externally managed funds decreased by a net of £0.767m due to changes in the unit price, giving a combined overall return of 0.10%.

 

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, General Fund: £235.3m) during the period from April to September 2020.

 

5. That it be noted that the level of financing for ‘invest to save’ schemes decreased from £8.64m to £8.59m during the period from April to September 2020.

 

Reasons for Decisions:

 

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.

 

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

Cabinet Member: Cllr Woodley


 

Get the best from this site

We use simple text files called 'cookies'. Some of these cookies are essential to make our site work and others help us to improve by giving us some insight into how the site is being used. For more information, including how to turn cookies off, see more about cookies - or simply click the Continue button to use this site as normal.