Issue - meetings

Background:

This report provided an overview of treasury management activity during 2010/2011. The report covered a number of issues including the Council’s treasury position as at 31 March 2011, performance measurement, the strategy for 2010/2011, borrowing and investment rates, the borrowing outturn, compliance with treasury limits and prudential indicators, investment outturn and debt rescheduling.

It was reported that the Interest and Financing budget had fallen short of the targeted budget by £1.319m, prior to any contributions from the rate equalisation reserve. Members were informed that the budget had been predicated upon anticipated earnings of 2% on internal investments and earnings from the fund manager and a contribution from the rate equalisation reserve of £908,000. In light of the continued historically low bank rate, which continued at 0.5% throughout 2010/11, the overall rate achieved for the in-house team was 0.994% and 1.175% for the fund manager. The rate equalisation reserve had therefore been fully utilised resulting in a short fall from budget of £0.269m. The body of the report and the appendices outlined the significant financial implications.

It was noted that this report would be referred to Audit Committee later on 5 July 2011 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.