Issue - meetings
Treasury Management Report - Quarter Three 2021/22
Meeting: 22/02/2022 - Cabinet (Item 736)
Report of Executive Director (Finance and Resources) attached
- Appendix 1 - In-House Investment Position as at 31 December 2021, item 736 PDF 120 KB
- Appendix 2 - Treasury Management Performance for Quarter Three, item 736 PDF 627 KB
- Webcast for Treasury Management Report - Quarter Three 2021/22
The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the 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 2021.
1. That the Quarter Three Treasury Management Report for 2021/22, 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 2021.
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 £1.123m of interest and income distributions for all investments were earned during this nine-month period at an average rate of 0.94%. This is 0.83% over the average bank rate for that period. Also, the value of the externally managed funds increased by a net of £2.654m due to changes in the unit price, giving a combined overall return of 3.15%.
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) increased by £40m to £350.3m (Housing Revenue Account (HRA): £75.0m, General Fund (GF): £275.3m) during the period from April to December 2021.
6. That it be noted that the level of financing for ‘invest to save’ capital schemes decreased from £8.53m to £8.45m during the period from April to December 2021.
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 2021/22 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 Collins