Issue - meetings

3.00pm

Report by the Director of Finance

The Chartered Institute of Public Finance and Accountancy’s (CIPFA’s) ‘Code of Practice on Treasury Management (Revised) 2009’ requires that the Council and Audit & Governance Committee receives an updated report on Treasury Management activities at least twice per year.  This report is the second report for the financial year 2018/19 and sets out the position as at 31 March 2019. The report will be also considered by Cabinet on 16 July.

The Committee is RECOMMENDED to note the report, and to RECOMMEND Council to note the Council’s Treasury Management Activity in 2018/19.

RESOLVED: to note the report.

The Chairman clarified that the recommendation on the Agenda was incorrect.  The Committee was just recommended to note the report.  Only Cabinet could recommend that Full Council note the Treasury Management Activity.

Lorna Baxter introduced the report which had been discussed by Cabinet on the previous day.  She drew particular attention to the benchmarking charts on Agenda Page 65 which showed that the Council gets an above average return with lower than average risk.

She responded to Members’ questions as follows:

·         The net overachievement (paragraph 6) was as a result of the base rate and cash balances being higher than expected.

·         The benchmarking used by the Council is fairly standard and not under-ambitious.

·         Portfolios differ – the graph on Agenda Page 66 shows that this Council has much more in Local Authority deposits than the average.

·         In relation to Counterparties suspended (page 59), Arlingclose advise the Council and this is updated on a daily basis.

RESOLVED: to note the report.