Decision details

To comply with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Treasury Management (2001) and under the prudential borrowing regime, it is necessary to report as soon as practicable after the year end on the performance of the treasury management function and its activities.

Discussion:

This report provided an overview of treasury management activity during 2009/2010, in line with the Chartered Institute of Public Finance and Accountancy (CIPFA) Treasury Management Code of Practice 2009 that had been adopted by the Council in February 2000. The Cabinet had considered the annual outturn report on 29 June 2010 and recommended its approval to the Audit Committee.

The report covered a number of issues including the Council’s treasury position as at 31 March 2010, borrowing activity in 2009/2010, performance measurement, the strategy for 2009/2010, the economy and interest rates in 2009/2010, borrowing and investment rates, the borrowing outturn, compliance with treasury limits and prudential indicators, investment outturn and debt rescheduling. The outturn for the prudential indicators, as contained in the council’s Treasury Strategy Statement, was set out at appendix 1 in the report.

The Chief Finance Officer detailed the contents of the report. It was noted that whilst the Interest and Financing budget was almost £600,000 short of the targeted budget, this budget had been predicated upon anticipated earnings higher than those achievable in the current economic climate. Members were informed that using cash balances to finance new capital expenditure or maturing debt had mitigated the loss in interest earnings by running down cash balances and minimise counterparty risk incurred on investment.

Decision:

The Audit Committee approved the Treasury Management Outturn Annual Report in accordance with the CIPFA Code of Practice.