Treasury Management Annual Report
Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: Yes
Year-end report on treasury and cash management activities and the Prudential Indicators
Councillor Phil Davies introduced a report by the Section 151 Officer stating that the Council’s treasury management activity was underpinned by CIPFA’s Code of Practice on Treasury Management, which required the production of annual Prudential Indicators and a Treasury Management Strategy Statement on likely financing and investment activity. The Code also recommended that members were informed of treasury management activities at least twice a year.
The Section 151 Officer’s report fulfilled the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the Department for Communities and Local Government (CLG) Investment Guidance.
The report informed that the Council had achieved in-year savings from the re-profiling of the Capital Programme and the temporary use of internal funds offsetting the requirement to externally borrow. The use of these internal funds reduced the sums available to invest but in times of low interest rates there were overall benefits. As a consequence Treasury Management activities achieved one-off savings of £2 million in 2014/15. The Council had also complied with the Prudential Indicators.
Councillor Phil Davies noted in particular that during 2014/15 there had been one-off savings from borrowing activity of £2.3 million which included the use of internal funding so had a consequential impact on investment income which was reduced by £0.3 million. Overall treasury management activities resulted in a saving of £2.0 million in 2014/15 and this sum has been returned to the General Fund balances.
(1) the Treasury Management Annual Report for 2014/15 be noted;
(2) the Treasury Management Strategy (Minimum Revenue Provision policy) be amended; and
(3) the transfer of the saving of £2 million from capital financing activities in 2014/15 to the General Fund balance be noted.
Publication date: 16/07/2015
Date of decision: 13/07/2015
Decided at meeting: 13/07/2015 - Cabinet
Effective from: 24/07/2015