Issue - meetings

To provide pre-decision scrutiny to the strategy being proposed (report of the Deputy Chief Executive (Corporate Development) & S151).

Consideration was given to the report of the Deputy Chief Executive - Corporate Development which provided pre-decision scrutiny to the strategy being proposed.

The Interim Treasury and Investment Manager introduced the report which detailed the Draft Treasury Management Policy and Strategy Statement for the 2023/24 financial year which would be included within the Budget Setting Report submitted to Council for approval. As a treasury report, scrutiny from the Governance and Audit Committee was required prior to its submission to Cabinet and Council.

• Appendix A outlined The Treasury Management Policy Statement 2023/24; and
• Appendix B detailed the Draft Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement and Annual Investment Strategy 2023/24.

The main points of the report and appendices were outlined in a presentation to the Committee at the meeting, which included:

• Reporting requirements as set out by the CIPFA (Chartered Institute of Public Finance and Accountancy) 2021 Prudential and Treasury Management Codes;
• Treasury Management Strategy for 2023/34;
• Training;
• Capital Prudential Indicators 2022/23 to 2027/28 which included capital expenditure and financing; and borrowing need ;
• Minimum Revenue Provision (MRP) Policy Statement;
• Borrowing;
• Annual Investment Strategy;
• Prudential Indicators; and
• Treasury Management Practice (TMP1) - Credit and Counterparty Risk Management.

Members considered the report and presentation and made the following comments:

• Members queried whether the value/performance of assets were assessed, and a discussion ensued which distinguished between assets, revenue and capital spend.
  • The Assistant Director – Finance clarified that:
    • performance of council assets was the responsibility of respective Assistant Directors;
    • the £5m borrowing requirement referred to at point 2.2 of the report related to the Capital programme which incorporated the longer-term financial view of an asset, whereas the Revenue account covered the day to day running of a service, such as stationery and salaries. Spending relating to the Capital programme included the utilisation of working capital, grant funding or borrowing;
    • to support communication of the services details, a budget book would be produced alongside the budget papers and circulated to all members, which presented the net operation cost for each asset function in a granular format; and[MC1] 
    • the purpose of the Treasury Management Strategy was to provide a treasury management function which captured cash movements within services and identified any surplus or deficit.

• Regarding the utilisation of reserves, Members asked if the lowest balance kept in reserve, as a ‘safety net’, could be disclosed[MC2] .
  • The Interim Treasury and Investment Manager responded that the figure would be considered and decided by the Section 151 Officer as part of the budget setting process.

• Members referred to the Internal Drainage Board precept and asked whether the ‘without referendum’ increased Council Tax payment was expected to revert to previous levels in future years.
  • The Assistant Director – Finance responded that the settlement announced on 19 December 2022 was the greater of 3 per cent or £5. It was assumed that the current level would remain for 2024/25 but it was not known what the levels would be after this date.

• During  ...  view the full minutes text for item 34