Issue - meetings

To provide Members with a review of Treasury Management performance and activity during 2023/24 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 2023/24 to ensure best practice was maintained.

In the absence of the Portfolio Holder – Finance, the Leader presented the report and highlighted the following areas:

Each year a comprehensive report on the Council’s treasury activities came before Council.  This complied with the CIPFA Code of Practice for Treasury Management

The following headlines (this data had already been reported throughout the year to the Governance and Audit Committee) were provided:

• Investment income earned was £2.4million, £545,000 greater than budgeted with an average rate of return of 5.17%;
• £2.35million interest was paid on the Council’s HRA borrowing at a rate of 3.48%. This was a £67million loan over a 38 year term;
• £23.5million of capital had been invested within the District across the General Fund and Housing Revenue Account;
• Most of the Council’s investments were with banking institutions, for fixed term periods and for periods under 1 year;
• Economically the focus has been on bringing down inflation to provide the possibility to reduce interest rates

DECISION:

That the Annual Treasury Management Review 2023/24 at Appendix A be received and approved, as required by the Local Government Act 2003, following scrutiny by the Governance and Audit Committee at its meeting on 18 July 2024.

To provide Members with a review of Treasury Management performance and activity during 2023/24 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 2023/24 to ensure best practice was maintained.

The Interim Treasury and Investment Manager (PSPS) introduced the report by stating that the figures were based on the draft statements of accounts which awaited audit and were therefore subject to change.

The Annual Treasury Management Review at Appendix A included the following information:

• Introduction to the report;
• Council’s Capital Expenditure and Financing 2023/24;
• Council’s overall borrowing need;
• Treasury position as at 31 March 2024;
• The Strategy for 2023/24;
• Borrowing outturn;
• Investment outturn 2023/24;
• The economy and interest rates – commentary provided by Link Group; and
• Other issues, which included: International Financial Reporting Standards 9 fair value of investments; non treasury investments; and changes in risk appetite.

Appendix A1 included the following:

• The 2023/24 Capital Programme and Q4 outturn;
• The General Fund Capital Financing;
• Housing Revenue Account (HRA) Capital Programme;
• HRA Capital Financing.

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Members considered the report and made the following comments:

• Members thanked officers for the report and comprehensive statements. The increase in respect of earned interest was particularly well-received.
  • The Deputy Chief Executive – Corporate Development (S151) responded that the council had increased investments with local authorities which had provided a good return. 

• Members referred to the introduction of Appendix A in respect of member training on treasury management and suggested that further training with Link Group take place as a partnership session.

• Members referred to the zero outturn items on Appendix A1, such as the Spalding Gateway Public Realm Project, and asked if this had resulted from a non-requirement of funds for such projects and/or whether the funds had been carried forward for use as required.
  • The Deputy Chief Executive – Corporate Development (S151) confirmed that the budget for such items had been carried forward and was to be used.

·       Members stated that whilst ‘risk appetite’ had not changed, there was a belief that a greater degree of risk control had occurred.

AGREED:

Following consideration of the Annual Treasury Report 2023/24 at Appendix A, that the comments of the Governance and Audit Committee be noted for consideration when the document be presented to Council for approval on 31 July 2024.