Issue - meetings

To provide Members with a review of Treasury Management performance and activity during 2022/23 to ensure best practice is maintained (report of the Deputy Chief Executive – Corporate Development (S151) enclosed).

Consideration was given to the report of the Deputy Chief Executive -Corporate Development (S151) which provided members with a review of Treasury Management performance and activity during 2022/23 to ensure best practice was maintained.

The Portfolio Holder for Finance, Commercialisation, UKSPF and Levelling Up introduced the report which set out the Annual Treasury Management Review of the Council’s activities and actual prudential and treasury indicators for 2022/23 at Appendix A.

DECISION:

That the Council received and approved the Annual Treasury Management Review 2022/23 at Appendix A as required by the Local Government Act 2003 following scrutiny by the Governance and Audit Committee at their meeting on 19 September 2023.

To provide members with a review of Treasury Management performance and activity during 2022/23 to ensure best practice is maintained (report of the Deputy Chief Executive - Corporate Development (S151) enclosed).

Consideration was given to the report of the Deputy Chief Executive – Corporate Development (S151) which provided members with a review of Treasury Management performance and activity during 2022/23 to ensure best practice is maintained.

The Interim Treasury and Investment Manager (PSPS) introduced the Annual Treasury Management Review 2022/23 which was detailed at Appendix A, and the following areas were highlighted:

• An introduction to the review;
• The Council’s capital expenditure and financing 2022/23;
• The Council’s overall borrowing need;
• The Treasury Position as at 31 March 2023;
• The Strategy for 2022/23;
• Borrowing outturn;
• Investment outturn 2022/23;
• The economy and interest rates (commentary provided by Link Group); and
• Other issues including Non-Treasury Investments and changes in risk appetite.

Members considered the update and made the following comments:

• Members thanked the Interim Treasury and Investment Manager (PSPS) for the report.
• Members queried whether invested funds were tied-in at low rates or whether they could be/had been transferred to higher rate investments over a short term.
  • The Interim Treasury and Investment Manager (PSPS) responded that monies only remained in a current account if they attracted higher rates of return than could be achieved by investing in short-term markets, which had been the case. Various institutions were used to invest monies on a short-term instant access basis. The Q1 Treasury Management Report would give a breakdown of investments.

• Members asked whether the Council utilised overseas or environmentally friendly companies.
  • The Interim Treasury and Investment Manager (PSPS) stated that:
    • The Treasury Management Strategy allowed the council to invest in AA and AAA rated sovereign countries with a maximum of £5 million per sovereign country. Mechanisms were in place to swiftly act upon changes to credit ratings of institutions. 
    • The PSPS Treasury Team were consulting with external treasury advisors to incorporate environmental, social and governance consideration in the Link Investment Counterparty List of investment institutions to be considered. From SHDC’s perspective, investments could be made with any company on the countyparty list however the S151 Officer and Portfolio Holder could decide to avoid certain companies/countries based on high profile ESG reasons or geo-political risk.

AGREED:

That after scrutiny by the Governance and Audit Committee of the Annual Treasury Management Review 2022/2023 detailed at Appendix A, comments of the committee be noted and considered when the document is presented for approval by Council on 27 September 2023.