Issue - meetings
Treasury Management Report 2018/19
Meeting: 11/07/2019 - Policy and Resources Scrutiny Committee (Item 197)
197 Treasury Management Report 2018/19 
PDF 216 KB
Minute 92
Referred direct by Cabinet
Minutes:
The Committee considered Minute 92 of Cabinet held on 25th June 2019, which had been referred direct by Cabinet to Scrutiny together with a report of the Strategic Director (Finance and Resources). This presented the Annual Treasury Management Report covering the treasury activity for the period from April 2018 to March 2019.
Resolved:
That the following recommendations of Cabinet be noted:
“1. That the Annual Treasury Management Report for 2018/19 and the outturn Prudential Indicators for 2018/19, be approved.
2. That it be noted that the financing of 2018/19 capital expenditure of £50.899m has been funded in accordance with the schedule set out in Table 1 of section 4 in the submitted report.
3. That it be noted that the Capital Financing and Treasury Management were carried out in accordance with statutory requirements, good practice and in compliance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Prudential Code during 2018/19.
4. That the revised Operational Boundary of £350m and revised Authorised Limit of £360m for 2019/20 as set out in Section 5 of the submitted report, be approved.
5. That the following be noted in respect of the return on investment and borrowing:
(i) The loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk.
(ii) £1.588m of interest and income distributions were received during 2018/19. The total investment income (including the movement on the unit price of externally managed funds) was £2.043m, giving a combined return of 2.93%. This is 2.42% over the average 7 day LIBID rate (London Interbank Bid Rate) and 2.26% over the average bank base rate.
(iii) 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 from £227.8m to £267.8m (Housing Revenue Account (HRA): £77.0m, General Fund (GF): £190.8m) by the end of 2018/19.
(iv) The level of financing for ‘invest to save’ schemes decreased from £8.74m to £8.73m by the end of 2018/19.”
Note: This is a Council Function
Cabinet Member: Cllr Woodley
Meeting: 25/06/2019 - Cabinet (Item 92)
92 Treasury Management Report 2018/19 PDF 216 KB
Report of Strategic Director (Finance and Resources)
Minutes:
The Cabinet considered a report of the Strategic Director (Finance and Resources) presenting the Annual Treasury Management Report covering the treasury activity for the period from April 2018 to March 2019.
Recommended:
1. That the Annual Treasury Management Report for 2018/19 and the outturn Prudential Indicators for 2018/19, be approved.
2. That it be noted that the financing of 2018/19 capital expenditure of £50.899m has been funded in accordance with the schedule set out in Table 1 of section 4 in the submitted report.
3. That it be noted that the Capital Financing and Treasury Management were carried out in accordance with statutory requirements, good practice and in compliance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Prudential Code during 2018/19.
4. That the revised Operational Boundary of £350m and revised Authorised Limit of £360m for 2019/20 as set out in Section 5 of the submitted report, be approved.
5. That the following be noted in respect of the return on investment and borrowing:
(i) The loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk.
(ii) £1.588m of interest and income distributions were received during 2018/19. The total investment income (including the movement on the unit price of externally managed funds) was £2.043m, giving a combined return of 2.93%. This is 2.42% over the average 7 day LIBID rate (London Interbank Bid Rate) and 2.26% over the average bank base rate.
(iii) 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 from £227.8m to £267.8m (Housing Revenue Account (HRA): £77.0m, General Fund (GF): £190.8m) by the end of 2018/19.
(iv) The level of financing for ‘invest to save’ schemes decreased from £8.74m to £8.73m by the end of 2018/19.
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 2018/19 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 a Council Function
Referred direct to Policy and Resources Scrutiny Committee
Cabinet Member: Cllr Woodley
