Agenda item

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer setting out the Council’s investment activity for the first half of 2023 / 24 in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Treasury Management (TM) Code.

The report provided an update on the following areas and further details were set out in the related Appendices:

·                  An overview of the external economic environment - Appendix 1 to the report had been prepared by the Link Group who provide treasury management consultancy and advice services to the Council.

·                  Investment Activity (April – September 2023).

·                  Performance – Budgeted income and outturn.

·                  Outlook for the remainder of 2023 / 24 provided by the Link Group (attached at Appendix 2 to the report).

·                  Compliance with Prudential Indicators (Appendix 3) and Treasury Management Strategy.

It was noted that only one of the Prudential Indicators had been breached and a mindful approach had been taken in relation to investment activity with priority being given to security and liquidity over yield.

In response to a number of questions raised by Members, the Interim Chief Finance Officer advised:

·                  No investment was 100% secure as they all had an element of risk, however as Section 151 Officer she was satisfied that the Council ‘s approach to investment was in line with the Strategy agreed by the Council as part of its Treasury Management Strategy.  Overall she felt the Council had taken a reasonably risk averse approach to its investments, with the majority being very low risk.

·                  The Interim Chief Finance Officer advised she would provide Members outside of the meeting with further details regarding the trend and performance of investment in the CCLA (Churches, Charities and Local Authorities) – Lamit Property Fund.  She explained the purpose of this fund being for longer term investment, the fund was linked to property values which could fluctuate over time with and in line with the Investment Strategy.  It was noted that only a small proportion of Council monies were invested in these types of funds.

·                  The Council’s Investment Strategy would be considered by this Committee in January 2024 and that report would provide details of what the Council invests in.  Property funds were in line with the current Strategy.

·                  It was important to ensure that the Council had adequate liquidity throughout the year and the amount of monies held varied throughout the year due to the receipt of council tax and business rates.

·                  Members’ attention was drawn to table 1 in the report which detailed the categories of investment and gave an indication of the liquidity.  The Interim Chief Finance Officer provided Members with detail regarding the investment length of each of the categories set out in the table.

In response to a question regarding recycling bins, the Chairperson advised that this matter had been discussed by the Finance Working Group and its recommendations would be coming forward to the Committee at its meeting on 23 November 2023.

The Leader of the Council, in response to a question regarding whether he was involved in any of the investment delegations, advised that he had no statutory powers and directed Members to raise any questions regarding management of investments when the Investment Strategy was brought forward to the Committee for approval.

The Chairman moved the recommendation as set out in the report and this was duly agreed.

RESOLVED that the Treasury Management report be received for compliance purposes.