The Director of Finance presented a review of Treasury Management activities in 2010/2011, which had resulted in £1m of additional receipts from investment income and a saving of £2m from the capital financing activities that could now be returned to the General Fund balances. He confirmed compliance with treasury limits and prudential indicators and provided a definition of Treasury Management as ‘the management of the local authority investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks’. He confirmed that the Annual Report had been prepared in accordance with the revised CIPFA Code of Practice on Treasury Management and the revised Prudential Code. He commented also upon the current economic background and reported upon investment and borrowing activity during the year.

Resolved –

(1)  That the Treasury Management Annual Report for 2010/11 be noted and the thanks of this Committee be accorded to the staff for their work in contributing to the Council’s finances.

(2)  That the transfer of additional investment income of £1m and the saving of £2m from capital financing activities in 2010/2011 to the General Fund balance be noted.