Issue - meetings

To provide the Annual Treasury Management Review for 2021/22 financial year for review and approval as required by the Local Government Act 2003 and the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management (Report of the Interim Treasury and Investment Manager (PSPS) enclosed)

Consideration was given to the report of the Interim Treasury and Investments Manager (PSPS) which provided the Annual Treasury Management Review for 2021/22 financial year for review and approval, as required by the Local Government Act 2003 and the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management.  The report was presented to members by the Portfolio Holder Finance, Commercialisation and Partnerships.

DECISION:

That the Annual Treasury Management Review 2021/22 be received and approved, as required by the Local Government Act 2003, following scrutiny by the Governance and Audit Committee at their meeting on 28 July 2022.

Report of the Interim Treasury and Investment Manager (PSPS) enclosed.

Consideration was given to the report of the Interim Treasury and Investment Manager (PSPS) prior to it being submitted to Council for approval.

Appendix A incorporated the Annual Treasury Management review of the Council’s activities and actual prudential and treasury indicators for 2021/2022, and included:

• an economic update for the 2021/2022 financial year;
• a review of the Council’s investment portfolio for 2021/2022;
• a review of the Council’s borrowing strategy for 2021/2022;
• debt position; and
• compliance with Treasury and Prudential indicators.

The Council was currently in the process of producing its financial statements for the 2021/2022 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.

During 2021/2022, the following reports had been submitted:

• An annual treasury strategy in advance of the year (Council 3 March 2021)
• A mid-year (minimum) treasury update report (Governance and Audit 11 November 2021); and
• An annual review following the end of the financial year, described the activity compared to the strategy (the report under consideration).

The regulatory environment placed responsibility on Governance and Audit Committee members for the review and scrutiny of treasury management policy and activities.

The report summarised the following:

• the Council’s capital expenditure and financing 2021/2022;
• the Council’s overall borrowing need;
• the treasury position as at 31 March 2022;
• the strategy for 2021/2022;
• borrowing outturn;
• investment outturn for 2021/2022; and
• the economy and interest rates with a commentary provided by Link Group.

Consideration was given to the report, and the following points were raised:

• Members asked what action would take place should interest rates increase sharply.
  • The Interim Treasury and Investment Manager (PSPS) predicted that interest rates would rise until inflation was under control and would then level off/decrease.

• Members referred to point 7 of Appendix A and queried the reduction in usable capital receipts from 3,220 to 4,905. What was the reason?
  • The Assistant Director – Finance would investigate and circulate the information to the Committee after the meeting.

• Referring to Table 6 on Appendix A, an explanation was requested for the stated differential between budgets and outturns for Garden Waste and Disabled Facility Grants; the same was requested for Wignals Gate Section 106 on Table 10, alongside an explanation of the purpose.
  • The Assistant Director – Finance would investigate and circulate the information to the Committee after the meeting.

AGREED:

That the information detailed within the report be noted.