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Issue - meetings
Outturn for Treasury Management
Meeting: 31/07/2018 - Audit Committee (Item 32)
32 Annual Treasury Management Report 2017/18 PDF 375 KB
Minutes:
The Assistant Director, Financial Services and Revenues (Chief Finance Officer), introduced his report on the Treasury Management activities and performance of the last financial year. To ensure that members are fully aware of the activities undertaken, that Codes of Practice have been complied with and the Council’s strategy has been effective in 2017-18.
Treasury management related to the council’s investments, cash flow, banking, money market and capital market transactions. The purpose of the strategy is to minimise the risks associated with these activities and optimise performance.
The Assistant Director, Financial Services and Revenues (Chief Finance Officer), explained that last year’s actions revolved around funding/external debt. It is our intention to borrow more this year and next, once the statements have been approved next year. There is no need to amend this year’s Treasury management strategy. We will be borrowing more when interest rates are low. We may use our own investments but that remains a future decision.
Councillor Levane asked for clarification on the amounts of individual loans. She questioned whether it was because of the maturity of loans? The Assistant Director, Financial Services and Revenues (Chief Finance Officer), confirmed it was.
Councillor Chowney raised his disappointment that the leader of opposition didn’t call the report for discussion at Council. He said it appeared to be custom in previous years. As neither leader called the report, he said he felt it was unfair on officers who had put the report together. Councillor Rankin said he was not aware of this custom and would raise it with his party.
Councillor Rankin said he was concerned regarding the phrase ‘take view on macro markets’ and ‘borrow as much as can’. He said it is about return, money is not cheap and he was concerned it is not invested. The Assistant Director, Financial Services and Revenues (Chief Finance Officer), said the interest rates were set to go up. If we go to market we have to sell assets to afford. We need to reduce services. We borrowed at 2.5% this year. You have to meet borrowing costs but even so, it is definitely time to be fully borrowed. To do otherwise, you would risk everything.
Councillor Chowney explained that if the opportunity presents itself and sums work out we must borrow. If, say, one of our tenants goes bust, we either let the premises to someone else or build houses. We don’t know what the future holds.
Councillor Rankin said the role of the committee is to look at risks, if the deal goes wrong how do we reverse out of it. The Assistant Director, Financial Services and Revenues (Chief Finance Officer), said we should not borrow in advance of need.
Councillor Levane proposed a motion to approve the report as set out in the resolution below, which was seconded by Councillor Chowney.
RESOLVED (unanimously) to consider the report – no recommendations are being made to amend the current Treasury Management Strategy as a result of this particular review.
The reason for ... view the full minutes text for item 32
Meeting: 02/07/2018 - Cabinet (Item 88)
88 Outturn for Treasury Management PDF 283 KB
Minutes:
Peter Grace, Assistant Director of Financial Services and Revenues brought a report to Cabinet on the Outturn Treasury Management. This was to provide the opportunity for the committee to scrutinise the Treasury Management activities and performance of the last financial year.
This Council is required by regulations issued under the Local Government Act 2003 to produce an annual treasury management review of activities and the actual prudential and treasury indicators for 2017/18.
Councillor training on treasury management issues was last undertaken on 10 January 2017 with further training on the medium term financial strategy in December 2017 in order to support members’ scrutiny role.
Under Rule 13.3 of the council constitution, this item was agreed without being called for discussion.
RESOLVED that:
1. Cabinet consider the report – no recommendations are being made to amend the current Treasury Management Strategy as a result of this particular review.
The reasons for this recommendation were:
Compliance with statutory requirements and good practice. The Council is accountable for the use of public money and continuously seeks to improve Value for Money.
The outturn position informs the budget setting process. Where there are under or overspends the reasons behind these are investigated with a view to reallocating resources to meet priorities.
The 2016/17 Audit Completion Report from the council’s external auditors
(BDO) recommended that management report on the achievement of PIER savings following their implementation
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