To consider the Annual Treasury Management Review for 2019/20
(Report of the Executive Director – Commercialisation (S151) enclosed)
Consideration was given to the report of the Executive Director Commercialisation (S151) which considered the Annual Treasury Management Review for 2019/20.
That the Council receives and approves the Annual Treasury Management Review 2019/20 as required by the Local Government Act 2003.
To consider the Annual Treasury Management Review for 2019/20 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 considered the Annual Treasury Management Review for 2019/20, 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 2019/20. 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 2019/20, the following reports had been submitted:
· An annual treasury strategy in advance of the year (Council 27 February 2019 );
· A mid year (minimum) treasury update report (Council 27 November 2019);
· 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 14 November 2019, in order to support the members’ scrutiny role.
The Treasury Management function was administered by Public Sector Partnership Services Ltd, on behalf of the Council.
The Council was currently in the process of producing its financial statements for the 2019/20 financial year, and these would be subject to external audit. The figures in the report were therefore subject to change, and any such changes would be reflected in the report submitted to Council.
The report summarised the following:
· Capital activity during the year;
· Impact of this 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 considered the report, and thanked officers for its clear and concise information. Notwithstanding the current very low interest rates, it was clear that the Authority had been prudent, as borne out by returns on investments, detailed within the report.
That the report be noted.