Report of Executive Director (Finance and Resources)

The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the Treasury Management documents.  This item was considered by the Audit Committee.

Recommended:

Reasons for recommendations:

To comply with CIPFA Treasury Management Code of Practice.

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 set out in the report aims to effectively control risk to within a prudent level, whilst providing optimum performance consistent with that level of risk.

Note: This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b).

Cabinet Member: Cllr Collins

The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the Treasury Management Report for Quarter One covering the treasury management activity for the period from April to June 2022 and compliance with the treasury management strategy for that period.

Resolved:

1. That the Treasury Management Report for Quarter One 2022/23, 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 2022.

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 £0.592m of interest and income distributions for all investments were earned during this three-month period at an average rate of 1.36%. This is 0.47% over the SONIA rate (Sterling Overnight Index Average) and 0.41% over the average bank rate. Also the value of the externally managed funds increased by a net of £0.916m due to changes in the unit price, giving a combined overall return of 3.46%.

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 £347.3m (HRA: £74.2m, GF: £273.1m) during the period from April to June 2022.

6. That it be noted that during the quarter the level of financing for ‘invest to save’ schemes decreased from £8.39m to £8.38m.

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 2022/23 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

Referred direct to: Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Collins