Issue - meetings

In accordance with CIPFA’s Code of Practice on Treasury Management, the Committee considered the report of the Head of Finance and Resources setting out the draft Treasury Management Strategy for 2015/16, including the Treasury and Prudential Indicators.

It was noted that the total core cash figure provided in paragraph 1.7.3 of the report should read £3.8m and not £4.8m.

Ellie Dunnet, Chief Accountant, summarised the changes proposed to the existing strategy which included the following:

·  Investing additional core cash of up to £3m for over 1 year if rates were to improve, with the option to use this amount to invest in property funds;

·  Including overseas institutions within the Council’s counterparty list where the country’s sovereign rating is the same as or better than the UK’s AA+ rating and the institution itself is of a high credit quality; and

·  Giving the Head of Finance and Resources delegated authority to invest within the certificate of deposit market to access highly secure counterparties.

A Member suggested that a review be undertaken to see whether the Council could gain better rates for its investments by, for example, using external fund managers.

The Chief Accountant explained that, in order to protect taxpayers’ money, the Council’s investment priorities were:

·  Security of Capital

·  Liquidity

·  Yield

The aim was to achieve the optimum return on investments with proper levels of security and liquidity.  Funds were invested short term to maintain the liquidity required to reinvest for longer periods if rates increased.  External fund managers did operate within the parameters set by local authorities, but there were varying degrees of risk.  However, this option could be re-examined.

The Committee indicated that it was content to endorse the draft Treasury Management Strategy for 2015/16 for submission to the Cabinet and the Council.

RESOLVED:  That the Cabinet be recommended to agree the draft Treasury Management Strategy for 2015/16, as set out in the Appendices to the report of the Director of Regeneration and Communities, for submission to the Council.