Issue - meetings

The Committee considered the report of the Head of Finance and Resources setting out details of the activities of the Treasury Management function for the 2012/13 financial year.  It was noted that:-

·  The average rate of interest received on the Council’s investments over the period was 1.17% compared to a forecast level of 1.0%.  Due to additional resources being available for investment during the year and the correction of a mis-stated interest accrual from 2011/12 investment income for 2012/13 was £400,000 against a budget of £250,000.

·  In terms of outcomes, all investments bar one had been on a short term basis (less than one year), including £3m invested with Lloyds TSB (part nationalised bank) for 346 days at a rate of 3.0%.  £2m of core cash funds were invested for 367 days also with Lloyds TSB at a rate of 2.85%.  The Bank was currently offering a rate of 1.03%.

·  There had been no borrowing during 2012/13 and investments had remained within the group limits set during the year.  The balance of investments as at 31 March 2013 was £13.520m.

In response to a question by a Member, the Head of Finance and Resources said that the Treasury Management Strategy did not allow investments in equities, the main consideration being the security of the original capital invested.  He would look into whether local Councils were allowed to speculate in the equity markets.

RESOLVED:

1.  That the review of the financial year 2012/13 which has been compiled in accordance with the Code of Practice on Treasury Management, as adopted by the Authority, be noted. 

2.  That no amendments are necessary to the current Treasury Management Strategy as a result of the review of activities in 2012/13.