Issue - meetings

To consider the report of the Director of Resources, (copy enclosed).

The Committee considered the report of the Director of Resources, the purpose of which was to comply with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) revised Code of Practice for Treasury Management’s requirement for regular scrutiny of Treasury Management Strategy and Practices. 

The Director of Resources advised Members that this report had gone to the Finance and Corporate Services Committee and was reported to the Overview and Scrutiny Committee on an annual basis.  This reflected both CLG guidance and the CIPFA code of practice.  The Director of Resources drew Members’ attention to the Borrowing Strategy set out in Appendix 1 to the report and advised that the operational limit was included in this.

The Director of Resources further highlighted the following contained within Appendix 1 to the report:

·                     Borrowing Strategy – this included an authorised limit of £10 million which was in place should the Council wish to develop a crematorium;

·                     The detail of Investment Strategy counterparties;

·                     Existing Investment and Debt Portfolio Position;

·                     Treasury Management Practices - Principles and Schedules and the key changes contained therein – starting to incorporate something around borrowing strategy and ensuring that where investments were held they weren’t just rolled over without getting a decent rate of interest back on them.

Members raised various questions, to which the Director of Resources responded as follows:

·                     The table on page 112 of Appendix 1 to the report stated a total investment of £21,000,000.  This did not equate to the Council’s reserves which was approximately £10,000,000;

·                     The amount of investment included Section 106 monies;

·                     The amount of investment included the remnants from selling the Council’s housing stock.

The Director of Resources advised that it was now possible for new capital receipts to be used on revenue budgets.

RESOLVED:

That the Committee considered the Treasury Management Strategy asking confirmatory questions on total investment balances, PWLB borrowing and maximisation of income subject to due diligence.