To consider the Annual Treasury Management Review for 2018/19 prior to it being submitted to Council for approval (report of the Executive Director Commercialisation (S151) enclosed).
Consideration was given to the report of the Executive Director Commercialisation (S151) which requested that the Committee consider the Annual Treasury Management Review 2018/19 prior to it being submitted to Council for approval.
The Council was 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 2018/19. The report met the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).
During 2018/19, the following reports had been submitted:
· An annual treasury strategy in advance of the year (to Council 8 March 2018);
· A mid year (minimum) treasury update report (to Council on 28 November 2018);
· An annual review following the end of the year, describing the activity compared to the strategy (the report under consideration)
The regulatory environment placed responsibility on members for the review and scrutiny of treasury management policy and activities. The report was therefore important in that respect, as it provided details of the outturn position for treasury activities and highlighted compliance with the Council’s policies previously approved by members.
The Council confirmed that it had complied with the requirement under the Code to give prior scrutiny to all of the above treasury management reports by the Governance and Audit Committee. Member training on treasury management issues was undertaken on 15 March 2018, in order to support the members’ scrutiny role.
The Treasury Management function was administered by Public Sector Partnership Services Ltd (previously known as Compass Point Business Services) on behalf of the Council.
The report summarised the following:
· Capital activity during the year;
· Impact of the activity on the Council’s underlying indebtedness (the Capital Financing Requirement);
· The actual prudential and treasury indicators;
· Overall treasury position identifying how the Council had borrowed in relation to its indebtedness, and the impact on investment balances;
· Summary of interest rate movements in the year;
· Borrowing and investment outturn positions;
· Economy and interest rates.
Members were advised that training on treasury management issues would be provided in the next few months for new members of the Committee
That the report be noted.