Issue - meetings

Background:

This report provided an overview of treasury management activity during 2011/2012. The report covered a number of issues including the Council’s treasury position as at 31 March 2012, performance measurement, the strategy for 2011/2012, borrowing and investment rates, the borrowing outturn, compliance with treasury limits and prudential indicators, investment outturn and debt rescheduling.

Overall the Interest and Financing budget made a surplus over its targeted budget by £0.272m.  In light of the continued historically low bank rate which continued at 0.5% throughout 2011/12, the overall rate achieved for the in-house team was 1.42% and 1.77% for the fund manager averaging an overall return of 1.51%.  The body of the report and the appendices outline the significant financial implications.  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 this report would be referred to Audit Committee later on 10 July 2012 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.