Issue - meetings

To provide Members with an update on Treasury Management performance and activity to ensure best practice is maintained (report of the Director of Finance enclosed).

Consideration was given to the report of the Director of Finance which provided members with an update on Treasury Management performance and activity to ensure best practice was maintained.

The Interim Treasury Manager (PSPS) introduced the report and the Treasury Management Update at Appendix 1, which included the following areas:

• Treasury Management update for the quarter period to 31 December 2024;
• Economic update with commentary provided by MUFG Corporate Markets (formerly Link Group);
• Interest rate forecasts;
• Annual Investment Strategy;
• Borrowing;
• Debt rescheduling;
• Net treasury position; and
• Compliance with Treasury and Prudential Indicators at Appendix 1A

Members considered the report and made the following comments:

• Members referred to the HRA Capital Expenditure on page 104 of the agenda pack and queried the changes to the approved budget of £300,000 for major adaptations.
  • The Interim Treasury Manager (PSPS) responded that expenditure detail did not fall under the remit of the Governance and Audit Committee however the information was available within the reports to Cabinet which were readily available online.

• Members referred to the Housing Revenue Account Capital Expenditure 2024/25 on page 104 of the agenda pack and, as a number of scheme improvements were required for council housing stock, queried the forecasted underspend of the Disabled Facility Grants (DFG) and  the credit balances of some of the budget lines (from Wignal’s Gate S106 to LAHF2 Tulip Fields Holbeach).
  • The Interim Treasury Manager (PSPS) responded that:
    • The DFG spend relied on applications coming through to the council; and
    • The credit balances on the budget lines would have resulted from an underspend at the end of the 2023/24 financial year with a resulting accrual to 2024/25. Expenditure in the current financial year would clear the accrual.
  • The Assistant Director – Wellbeing and Community Leadership added that:
    • DFGs were funded through the Better Care Fund and passed to the council via Lincolnshire County Council;
    • The purpose of DFGs was to support necessary upgrades for non-HRA properties and therefore the SHDC Housing Team were not involved;
    • The fulfilment of DFGs was complex and each case required an assessment and referral from an Occupational Therapist; and
    • The relevant council team was active and adequately resourced to process such applications in a timely manner.

AGREED:

That the Q3 Treasury Report 2024/25 at Appendix 1 be noted.