Issue - meetings

3.15 pm

Report by Director of Finance

Audit & Governance Committee is RECOMMENDED to note the report, and to RECOMMEND Council to note the Council’s Treasury management activity in 2021/22.

Recommendations agreed.

The Audit & Governance Committee considered the Treasury Management Annual Performance 2021/22 report by the Director of Finance. It was recommended that the Committee note the reports and recommend that Council note the Council’s activity in 2021/22.

The report was presented by Tim Chapple, Treasury Manager.

In the subsequent discussion, the following points were raised.

(a)  In response to a Member’s questions, officers provided the following information –

(i)    Investment in property would fall within the Council’s Investment strategy and not within the Treasury Management strategy.

(ii)  The Lending List referred to in in Paragraph 13 of the report under the heading “Investment Strategy”, was detailed in the Budget and Business Planning 2022/23 – 2025/26 report that went to Council on 08 February of this year.

It was noted that an ESG (Environmental Social and Governance) framework would be introduced into Treasury Practices later in the year which would come through the Audit & Governance Committee.

(iii) Regarding the loan to Cherwell District Council referred to in Annex 3: Oxfordshire County Council Investment Portfolio of 31/03/2022 (“Annex 3”), this was arranged via an independent broker at market rates and dealt with by officers under the Council’s scheme of delegation.

(iv)Regarding the loans to the Police and Crime Commissioners for Merseyside and Lancashire, as precepting authorities, were statutorily defined as local authorities.

(b)  It was noted that, regarding Annex 4 and prudential borrowing, the Council was close to the operational limit for borrowing and would be close to the authorised limits for borrowing if there was a significant overspend on one of the Council’s major projects.

[It was noted that Appendix 4 included the Council’s Capital Finance Requirement instead of the Council’s Actual External Debt which was £313 million].

(c)   Referring to External Deposits and the Council’s policy of not lending to foreign banks, Appendix 3 on page 8 of the report referred to a £10 Million loan to Australia and New Zealand Banking Group. It was noted that Australia and New Zealand Banking Group that were incorporated in the UK.

(d)  In response to a Member’s questions, officers provided the following information –

(i)    The Council had no in-house Russian investments. However, a check of the Council’s external funds had revealed a small amount of indirect exposure which was less than 1% of the funds and, therefore, deemed de minimus.

(ii)  Regarding long-term lending, of the £79 million in deposits, these were deposits which had more than one year to mature as of 31 March 2022.

(iii) Annex 3 of the report set out all the Council’s deposits, including short-term deposits. The total amount of external deposits was £409 million.

Bringing the discussion to a close, the Chair thanked officers for the work carried out in preparing the report.

RESOLVED: That the Committee –

1.     Note the report; and

Recommend that Council note the Council’s Treasury Management activity in 2021/22.