Issue - meetings

Mr John Owen, Finance Manager, introduced his report setting out details of the activities of the Treasury Management function for the 2017/18 financial year in accordance with CIPFA’s Code of Practice on Treasury Management in Local Authorities, and in the context of the economic environment over the past 12 months.

Mr Owen explained that:

·  Key elements of the Council’s Treasury Management Strategy for 2017/18 were:

To reduce the maximum principal sums to be invested for a period exceeding 364 days from £8m to £5m.  This was consistent with the borrowing strategy to utilise cash balances rather than loan debt to meet liabilities as they became due and to finance the Capital Programme in the short term.  No long term investments had been made in the year.

To diversify the investment portfolio within the parameters of the counterparty list as advised by Arlingclose, the Council’s Treasury Management advisors.  The types of investment included money market funds, deposits with other local authorities and certificates of deposit.

·  Investment income for the year totalled £145k with the average rate on investments being 0.44% against the benchmarked rate of 0.51%.

·  The Council had borrowed during the year for short term liquidity purposes.  Maximum borrowing was £3.65m for 6 days towards the end of March.  There was no borrowing requirement at year end.

·  The Prudential Indicators showed expenditure on the Capital Programme.  The Capital Financing Requirement was at a low level but would increase when more was spent on the Capital Programme in future years.

The Chairman emphasised the need to ensure that investments in capital projects are carefully managed.

RESOLVED:

1.  That the review of the financial year 2017/18 which has been

compiled in accordance with CIPFA’s Code of Practice on Treasury

Management in Local Authorities be noted.

2.  That no amendments to the current Treasury Management

procedures are necessary as a result of the review of activities in

2017/18.