Issue - meetings

Deputy Leader and Executive Member for Finance and Governance.

RESOLVED to note the Treasury Management Performance for the year to date and the updated prudential indicators, and to RECOMMEND to Council to note.

The Deputy Leader and Executive Member for Finance and Governance, Councillor Schofield, introduced the report which provided an update on the performance of the Council’s treasury management activities. The report had been considered by the Audit Committee and there were several questions about the background to our company and other investments.

The report showed that the treasury management performance was forecast to be better than budget due to the borrowing facility not being utilised because of slippage in the 2021/22 capital programme.

It also confirmed that the Council was compliant with the treasury limits previously approved except:

1)    One money market fund that had been in use at the start of the year had two rather than three ratings from credit agencies

2)    Balances held were higher than approved limits at some periods due to the additional Covid-19 funding received from the government

Councillor Schofield also referred to an announcement by the Department of Levelling Up, Homes & Communities on 30 November 2021 that it would be consulting on changes to the Minimum Revenue Provision (MRP) regulations. Consideration would be given as to whether any changes would be required to the Council’s approach during the next review of the Treasury Management Strategy. Consultation would be undertaken with treasury advisors and the outcome reported to the Executive in due course.

RESOLVED to note the Treasury Management Performance for the year to date and the updated prudential indicators, and to RECOMMEND to Council to note.

To review the Treasury Management Performance for the year to date and the updated prudential indicators and provide any comments for consideration by Executive.

To note the updated Treasury Management outturn results for 2020/21 that have been resubmitted now that the previously outstanding information is available.

The Interim Head of Finance explained that this was the Half-Year Treasury Management Report which updated Members on the current borrowing and investment position, whilst amending prudential indicators and revising policies where necessary.

As requested by Members at the September Committee meeting, Annex 2 to the report included an updated version of the Treasury Management Outturn Report for 2020/21 with a completed version of table 10 at section 6 now that the required information has been received.

This report would be presented to the Executive in December 2021 and to Full Council in February 2022.

A member observed that when considering investment opportunities, the Council could seek out green investments. Members concurred that green investments should be considered alongside balancing the priority to secure a financial return for the benefit of residents.

Table 4 in the report (Total Treasury Investments) reported a forecast balance of £16,478,000 in March 2022, a reduction compared to the actual position in September 2021 of £50,553,000. The Interim Head of Finance explained that this reflected planned capital expenditure over coming months.

The Interim Head of Finance also explained that the forecast movement in company loan values (Table 5) between September 2021 and March 2022 was due to accrued interest.

With regard to Table 4 at pages 21 and Table 10 at page 48, the Interim Head of Finance agreed to provide a further analysis in a written response to explain how they reconciled. The accuracy of the text at paragraph 38 would also be confirmed. The authority’s accounts were still being concluded and once the outturn figures were available the figures would align.

It was noted that the Council’s investment in Pathway for Care was currently under review.

RESOLVED that:

(i)        The Audit Committee notes the report;

(ii)        The comments made would be fed back to the Executive; and

(iii)       A written response would be sent to Members.