Issue - meetings

Cabinet Member: Finance & Property

Forward Plan Ref: 2010/097

Contact: Tim Chapple, Financial Manager – Treasury & Pension Fund Investment Tel: (01865) 323978

Report by Assistant Chief Executive & Chief Finance Officer (CA 6).

The report sets out the Council’s Treasury Management Outturn financial position for the 2009/10 financial year. 

The report fulfils the CIPFA Code of Practice on Treasury Management 2001 (and subsequent updates) requirement for the receipt of an annual report summarising the Treasury Management activity within 6 months of year-end.

The Council's external debt increased from £402.38m on 1 April 2007 to £412.09m on 31 March 2010.  All new long-term debt was arranged through the Public Works Loans Board.  The weighted average rate of interest paid on long-term debt during 2009/10 was 4.81%.

Security and liquidity of cash was prioritised over returns and the council adopted a cautious approach to lending to financial institution, with the majority of deposits restricted to 3 months in duration.

The Council achieved an in-house deposit return of 1.21% and continued to use 2 external fund managers, Investec and Scottish Widdows Investment Partnership (SWIP).  Investec earned an average return of 1.20% and SWIP 3.62%.

The net outturn on Treasury Management debt and investment activity was an underspend of £288k. This was mainly due to higher than average balances throughout the financial year.

The Cabinet is RECOMMENDED to note the report, and to RECOMMEND Council to note the Council’s Treasury Management Activity in 2009/10.

Cabinet considered a report that set out the Council’s Treasury Management Outturn financial position for the 2009/10 financial year.

The report fulfilled the CIPFA Code of Practice on Treasury Management 2001 (and subsequent updates) requirement for the receipt of an annual report summarising the Treasury Management activity within 6 months of year-end.

RESOLVED:             to note the report, and to RECOMMEND Council to note the Council’s Treasury Management Activity in 2009/10.