Issue - meetings

This report seeks approval to the Council’s Treasury Management Strategy for the 2014/2015 financial year.  The Treasury Management Strategy incorporates within it the Treasury Management Policy Statement, Annual Investment Strategy and Minimum Revenue Provision policy.

Discussion:

This report sought approval to the Council’s Treasury Management Strategy for the 2014/2015 financial year.  The Treasury Management Strategy incorporated within it the Treasury Management Policy Statement, Annual Investment Strategy and Minimum Revenue Provision policy.

It was noted that the annual presentation of a Treasury Management Strategy was a requirement under the CIPFA Code of Practice on Treasury Management. It covered the various aspects of the treasury management function and was based on the treasury officers’ views on interest rates, supplemented with leading market forecasts provided by the Council’s treasury adviser, Capita Asset Services.

The Business Support Overview and Scrutiny Committee considered this report on 4 February 2014 and its views were set out in paragraph 17 of the report. The Cabinet considered this report on 11 February 2014 and its recommendation to Council was set out in paragraph 22 of the report.

A Diversity Impact Assessment screening had been undertaken and was set out in Appendix 9 to the report. It was not necessary to proceed to a full impact assessment. It was noted that the Treasury Management Strategy did not directly impact on members of the public as it dealt with the management of the local authority’s 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.

The Portfolio Holder for Finance and Deputy Leader, Councillor Jarrett, supported by the Leader of the Council, Councillor Rodney Chambers, proposed the recommendations set out in the report.

Decisions:

(a)       The Council agreed the Treasury Management Strategy and associated policies and strategy statements as attached in Appendices 1-6 to the report.

(b)       The Council agreed the revisions to the Constitution, as set out in Appendix 8 to the report, which would transfer responsibility for scrutinising the treasury management function to the Audit Committee.

Background:

This report presented the Council’s Treasury Management Strategy for 2014/2015. The strategy incorporated the Treasury Management Policy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy.

The appendices that accompanied this report were set out within Supplementary Agenda No. 1 and a revised copy of the Treasury Management Practices (Appendix 10 to the report) had been circulated within Supplementary Agenda No. 3.

It was noted that the annual presentation of a Treasury Management Strategy was a requirement under the CIPFA Code of Practice on Treasury Management. It covered the various aspects of the treasury management function and was based on the treasury officers’ views on interest rates, supplemented with leading market forecasts provided by the Council’s treasury adviser, Capita Asset Services.

The report included proposals to amend the treasury management practices, which included changes to Approved Countries, Treasury and Prudential Indicators and the Authorized Limit and Operational Boundary for 2014/2015. The report also set out details of a proposed transfer of the scrutiny of treasury management from the Business Support Overview and Scrutiny Committee to the Audit Committee.

It was noted that the Business Support Overview and Scrutiny Committee had considered this report on 4 February 2014and details of the discussion was set out within the addendum report (included within Supplementary Agenda No. 3).

A Diversity Impact Assessment screening had been undertaken and was set out in Appendix 9 to the report. It was not necessary to proceed to a full impact assessment. It was noted that the Treasury Management Strategy did not directly impact on members of the public as it deals with the management of the local authority’s 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.

Reasons:

Cabinet has the responsibility to make recommendations to Full Council on the approval of the Council’s Treasury Management, Investment Strategy and Minimum Revenue Provision Policy Statement along with scrutinising the Treasury Management Practices and associated schedules.