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ITEM EX12 - ANNEX 1

EXECUTIVE – 2 APRIL 2003

TREASURY MANAGEMENT STRATEGY FOR 2003/04

Key Recommendations of the CIPFA Code of Practice on Treasury Management in the Public Services

• Public Sector Organisations should put in place formal and comprehensive objectives, policies and practices, strategies and reporting arrangements for the effective management and control of treasury management activities.

• Policies and practices should make clear that effective management and control of risk are the prime objectives of the treasury management activity

• Within the context of effective risk management, treasury management policies and practices should acknowledge and reflect the pursuit of best value and use of appropriate performance measures.

• In order to achieve the above, organisations should:

1. formally adopt the CIPFA Treasury Management Code;
2. create and maintain:

• a Treasury Management Policy Statement stating the policies and objectives of its Treasury Management activities;
• suitable Treasury Management Practices (TMPs) in accordance with guidance set out in the Code, specifying the manner in which the organisation will seek to achieve these policies and objectives and prescribing how it will manage and control these activities;

c. require that reports on treasury management policies, practices and activities be made, including as a minimum an annual strategy and plan in advance of the year and an annual report after its close;

d. formally delegate responsibility for implementing and monitoring treasury management policies and practices to a nominated group of members and for the execution and administration of treasury management decisions to a named, responsible officer who will act in accordance with the organisation’s policy statement and TMPs.

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