Treasury Annual Report 2018-19
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Councillor Janette Williamson introduced a report which fulfilled the Authority’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the Ministry of Housing, Communities and Local Government (MHCLG) Investment Guidance which required the Authority to approve treasury management semi-annual and annual reports.
Proactive Treasury Management activity had resulted in savings of £2.1 million. This was £1 million more than the estimated £1.1 million reported in the Treasury mid-year review. These savings were on top of the £3.8 million worth of Treasury Management savings already built into the 2018/19 budget. The additional savings resulted due to a combination of increased investment income and securing lower cost loans. This meant that the £2m saving in 2019/20 budget for increased income from Treasury Management had already been achieved.
The level of Capital Financing debt, including the Merseyside Residuary Body debt managed by the Council on behalf of the constituent authorities, was £174 million at 31 March 2018. This was a reduction of £90 million since 1 April 2012.
The Council had complied with the Prudential and Treasury Management Indicators as set out in the agreed Treasury Management Strategy for 2018/19.
During the year there had been a change in the minimum revenue provision, the amount set aside for the repayment of future debts and this was still subject to future audit. If agreed this would result in further savings for the Council and be reported as part of the final accounts to the Audit and Risk Management Committee, once signed off by the Council’s auditors, Grant Thornton.
Cabinet Members expressed their thanks to all the finance team for all their work in achieving these savings which helped to support the delivery of vital Council services.
Councillor Pat Hackett remarked upon this brilliant result with the huge challenges ahead the need to maximise every commercial opportunity. He thanked all the officers who had delivered this.
On a motion by Councillor Janette Williamson, seconded by Councillor Tony Jones, it was –
Resolved – That,
(1) The Treasury Management Annual Report for 2018/19, be agreed;
(2) The savings of £2.1m from treasury and capital financing activities in 2018/19, be noted.
Reasons for the decision: Wirral has adopted the CIPFA Code of Practice on Treasury Management (“the Code”), which includes regular update reports to Members of treasury activity. This report is the annual review for 2018/19. Under the Council’s Financial Regulations any surplus resources, including any additional income, are returned to General Fund Balances and so used to support the delivery of other Council services.
Publication date: 26/07/2019
Date of decision: 22/07/2019
Decided at meeting: 22/07/2019 - Cabinet
Effective from: 03/08/2019