Issue - meetings

Treasury Management Outturn Report 2019/20

Meeting: 10/09/2020 - Overview and Scrutiny Committee (Item 26)

26 Treasury Management Outturn Report 2019/20

To note the Treasury Management Outturn Report 2019/20 and Annex 1 and provide any observations to the Executive at its meeting on 24 September 2020.

Supporting documents:

Minutes:

Members reviewed the Treasury Management Performance for 2019/20 and the outturn against the 2019/20 prudential and treasury indicators set out in the Annual Treasury Management Report (Annex 1).

Cllr T. Schofield, Portfolio Holder for Finance, explained that this report was part of formal reporting and regulatory requirements. The report confirms compliance with the requirements of the regulatory framework for treasury management and had been presented to the Executive meeting on 28 July 2020.

During 2019/20 none of the prudential limits were breached and, with the exception of compliance with the maximum exposure per institution, all decisions were taken in accordance with the Treasury Management Strategy. This one breach was due to the receipt of significant emergency COVID-19 Government funding at short notice which was invested in a single institution. This was being addressed by opening additional investment accounts with new institutions to spread the risk.

Members noted that the strategy and performance was on track. The report and recommendations would go to Council on 24 September 2020 for approval.

RESOLVED that:

(i)            the Treasury Management Performance for 2019/20 be noted;

(ii)          the outturn against the 2019/20 prudential and treasury indicators in the Annual Treasury Management Report (Annex 1) be noted and recommended for approval by Council.


Meeting: 28/07/2020 - Executive (Item 24)

24 Treasury Management Outturn Report 2019/20

To receive the report of the Executive Member for Finance.

Supporting documents:

Decision:

Resolved to Recommend to Council:

1.     To note the Treasury Management Performance for 2019/20;

2.     To approve the outturn against the 2019/20 Prudential and Treasury Management Indicators and the Annual Treasury Management Report (Annex 1).

Minutes:

Councillor Schofield, Executive Member for Finance and Deputy Leader of the Council, reported that with one exception, the Council had complied with its legislative and regulatory requirements. The exception related to the year-end when the Government paid over tens of millions of pounds in emergency funding to the Council at short notice as part of the national COVID-19 pandemic response. It had not been possible to spread those funds across a range of banks and financial institutions to ensure compliance with the limits set out in the Treasury Management Strategy. Councillor Schofield explained that this was now being resolved, through opening additional accounts with new institutions to spread the counterparty risk. Overall, the report showed that the Council’s treasury management activity for the last year had been robust, and complied with the limits that had previously been approved.

 

In response to questions and observations from Visiting Members, Executive Members explained that:

 

·       Each commercial opportunity explored by the Council would continue to take account of statutory guidance on Minimum Revenue Provision (MRP) and the Council’s own MRP Policy

·       Loans to subsidiaries, to date, had been made from internal borrowing

·       The interim Head of Finance would provide a clarification briefing note on the company loans and Minimum Revenue Provision, to those Members present, after the meeting.  

 

 

Resolved to Recommend to Council:

1.     To note the Treasury Management Performance for 2019/20;

2.     To approve the outturn against the 2019/20 Prudential and Treasury Management Indicators and the Annual Treasury Management Report (Annex 1).

Reason for decision:

Compliance with the requirements of the regulatory framework for treasury management.

Alternative options: As set out in the report, and decision notice.