Issue - meetings
Treasury Management Report - Mid Year 2024/25
Meeting: 18/11/2024 - Cabinet (Item 45)
45 Treasury Management Report - MId Year 2024/25 PDF 442 KB
Report of Executive Director (Finance and Resources)
Additional documents:
- 2024-25 Q2 Appendix 1, item 45
PDF 493 KB
- 2024-25 Q2 Appendix 2, item 45
PDF 112 KB
- Webcast for Treasury Management Report - MId Year 2024/25
Minutes:
The Cabinet considered a report of the Executive Director (Finance & 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 2024.
Resolved:
1. That the Treasury Management Mid-Year Position report for 2024/25, be approved.
2. That it be noted that 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 2024.
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 £3.106m of interest and income distributions for all investments were earned during this six-month period at an average rate of 4.71%. Also, the value of the externally managed funds increased by a net of £0.459m due to changes in the unit price, giving a combined overall return of 5.40%.
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 £347.3m (Housing Revenue Account (HRA): £74.2m, General Fund: £273.1m) during the period from April to September 2024.
6. That it be noted that the level of financing for ‘invest to save’ schemes decreased from £8.03m to £7.93m during the period from April to September 2024.
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 2024/25 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.
Not eligible for call-in
Cabinet Member: Cllr Collins
Meeting: 07/11/2024 - Policy and Resources Scrutiny Committee (Item 32)
32 Treasury Management Report - Mid Year 2024/25 PDF 442 KB
Additional documents:
- 2024-25 Q2 Appendix 1, item 32
PDF 493 KB
- 2024-25 Q2 Appendix 2, item 32
PDF 112 KB
- Webcast for Treasury Management Report - Mid Year 2024/25
Minutes:
The Committee considered the report of the Executive Director (Finance and Resources), by way of pre-Cabinet scrutiny, presenting the treasury management activity and compliance with the treasury management strategy for both quarter two and the period from April to September 2024.
A Committee Member requested a benchmark of property funds and bond fund returns against the sector average so that the Committee could determine how funds were being managed compared to other funds out there and what the risk appetite was for the local authority, it was confirmed this would be prepared for the next reporting period.
The Committee asked questions regarding the Lothbury Property Trust, including property dispersal timelines, it was currently estimated that all properties would be sold before the end of the financial year.
The Committee asked a number of questions which were responded to by the Executive Director (Finance and Resources), the Leader of the Council and the Cabinet Member of Finance, Assets and Investments.
The Cabinet Member for Finance, Assets and Investments advised that his portfolio working party was due to meet on 22 November to review the annual strategy, and that members contributions would be welcome to help influence and shape the strategy for the year ahead.
Resolved:
That the report and recommendations to Cabinet, be noted:
That Cabinet:
1. Approves the Treasury Management Mid-Year Position report for 2024/25.
That Cabinet:
2. Notes that 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 2024; and
3. That the loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk; and
4. That £3.106m of interest and income distributions for all investments were earned during this six-month period at an average rate of 4.71%. Also, the value of the externally managed funds increased by a net of £0.459m due to changes in the unit price, giving a combined overall return of 5.40%. (Section 8); and
5. 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 £347.3m (Housing Revenue Account (HRA): £74.2m, General Fund: £273.1m) during the period from April to September 2024; and
6. That the level of financing for ‘invest to save’ schemes decreased from £8.03m to £7.93m during the period from April to September 2024.
Note: This is an Executive Function
Cabinet Member: Councillor P Collins, Cabinet Member for Finance, Assets and Investments.