Agenda and minutes

Additional Governance and Audit Committee meeting, Governance and Audit Committee - Tuesday, 16th January, 2018 6.30 pm

Venue: Meeting Room 1, Council Offices, Priory Road, Spalding

Contact: Christine Morgan  01775 764454

Items
No. Item

32.

Declaration of Interests

(Where a Councillor has a Disclosable Pecuniary Interest the Councillor must declare the interest to the meeting and leave the room without participating in any discussion or making a statement on the item, except where a Councillor is permitted to remain as a result of a grant of dispensation). ‘

 

Minutes:

There were none.

33.

Treasury Management Policy and Strategies 2018/19 pdf icon PDF 74 KB

To provide pre-decision scrutiny to the policy and strategies being proposed, prior to submission to Cabinet and Full Council for approval as part of the budget setting report (report of the Executive Director Commercialisation (S151 Officer) enclosed).

Additional documents:

Minutes:

Consideration was given to the report of the Executive Director Commercialisation which provided information for pre-decision scrutiny of the Treasury Management Policy and Strategies 2018/19 being proposed, prior to submission to Cabinet and Council for approval as part of the budget setting report.

 

Treasury Management was defined as: ‘The management of the local authority’s investments and cash flows, its banking, money market and capital market transaction; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks’.

 

The Council was required to receive and approve, as a minimum, three main reports each year, which incorporated a variety of policies, estimates and actuals.  The prudential and treasury indicators and treasury strategy (this report), was one of these reports.

 

The Treasury Management Strategy for 2018/19 covered two main areas:

 

·         Capital issues

o   The capital plans and the prudential indicators;

o   The minimum revenue provision (MRP) policy.

 

·         Treasury management issues

o   The current treasury position;

o   Treasury indicators which would limit the treasury risk and activities of the Council;

o   Prospects for interest rates;

o   The borrowing strategy;

o   Policy on borrowing in advance of need;

o   Debt rescheduling;

o   The investment strategy;

o   Creditworthiness policy; and

o   The policy on use of external service providers

 

The report also provided a summary of main changes and key issues.

 

Members considered the information within the report, which was explained in further detail by the Finance Manager Treasury.

 

The main issue that arose was the possibility of SHDC increasing the amount of its investment in Welland Homes to construct more houses, which could be less of a risk and provide a higher return.  Officers advised that this could possibly be done if there was the will.  The overall capital expenditure requirements of the Council would need to be looked at as a whole.  It was agreed that this view be taken on to Cabinet and Council

 

A general discussion also took place regarding the list of Sovereign Countries whose banks could be used for investment purposes. Qatar and Abu Dhabi currently meet the investment criteria despite the political uncertainty in that region at the moment. Members of Governance and Audit were of the opinion that Members of Full Council should be involved in deciding whether Qatar and Abu Dhabi should remain on the list of Sovereign Countries whose banks would be available for Council investments.  It was pointed out that even if they are included on the list, the Section 151 would not be obliged to invest in that region until the political situation improved.

 

The Committee thanked the officers for a clear report and a clear delivery of the information within it.

 

AGREED:

 

a)    That the Governance and Audit Committee recommend to Cabinet and Full Council that the following be approved as part of the budget setting report:

 

              i.        The Treasury Management Policy Statement 2018/19 at Appendix A;

 

            ii.        The Treasury Management Strategy Statement 2018/19 at Appendix B;

 

           iii.        The Minimum Revenue Provision Policy  ...  view the full minutes text for item 33.

34.

Any other items which the Chairman decides are urgent.

 

 

NOTE:            No other business is permitted unless by reason of special circumstances, which shall be specified in the minutes, the Chairman is of the opinion that the item(s) should be considered as a matter of urgency.

Minutes:

There were none.