Issue - meetings

Background:

This report provided an overview of treasury management activity during 2012/2013. The report covered a number of issues including the Council’s treasury position as at 31 March 2013, performance measurement, the strategy for 2012/2013, borrowing and investment rates, the borrowing outturn, compliance with treasury limits and prudential indicators, investment outturn and debt rescheduling.

It was noted that overall the Interest and Financing budget made a surplus over its targeted budget by £1.068 million.  In light of the continued historically low bank rate which continued at 0.5% throughout 2012/13, the overall rate achieved for investments averaged at 1.46%.  The body of the report and the appendices outlined the significant financial implications and it was reported that any transactions undertaken on either investments or borrowings were governed by the London Code of Conduct, the Council’s Treasury Policy Statement, and the CIPFA Code of Practice on Treasury Management in Local Authorities.

It was noted that the Business Support Overview and Scrutiny Committee considered this report on 20 June 2013. The Committee had requested that future reports include information on debt maturity analysis and requested that the mid-year review report includes information on the quantum of local authorities that use just in-house and a mixture of in-house and external fund manager services.

This report would also be referred to Audit Committee on 11 July 2013 for consideration and approval.

Reasons:

In line with CIPFA’s Code of Treasury Management Practice an annual report must be taken to Cabinet detailing the council’s treasury management outturn within six months of the close of each financial year.