Issue - meetings

To submit a report by the Director of Function (Resources)/Section 151 Officer.

It was RESOLVED:-

·       To note the report, the treasury activity and the prudential indicators as at 30 June, 2023;

·       That all future Quarter 1 and Quarter 3 Treasury Management reports are reviewed and accepted by the Portfolio Holder for Finance and reported to the Governance and Audit Committee for information only.  The half yearly and annual review reports will continue to follow the same process i.e. reported to the Governance and Audit Committee, the Executive and full Council.

The report of the Director of Function (Resources)/Section 151 Officer setting out the Treasury Management – Quarter 1, 2023/24 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report saying that the CIPFA’s Code of Practice for Treasury Management and CIPFA Prudential Code 2021 now requires that prudential indicators are reported quarterly rather than twice yearly.  Following discussion between the Portfolio Member and the Director of Function (Resources)/Section 151 Officer it has been agreed that the quarterly report of Quarter 1 and Quarter 3 for them to be reviewed and accepted by the Portfolio Member for Finance and thereafter presented to the Governance and Audit Committee for information only and the mid-year and Annual Report be submitted to the Executive and to full Council.

The Director of Function (Resources)/Section 151 Officer reported that internal balances continue to fund capital expenditure and as interest rates are high it is prudent not to be tied into long-term borrowing if the need arise so as to avoid high interest rates.  It is anticipated that interest rates will remain high for some time.  He noted that the financial reserves are decreasing and at the end of Quarter 1 the total balance invested was £53.097m as was shown in Table 5.6.  The yield from these investments from 1 April, 2023 to 30 June, 2023 was £0.457m, with the total interest receivable on investments expected to be £1.287m for 2023/2024.  However, cash balances are reducing as the financial year progresses, so not all these investments will be viable to renew on maturity.  He further said that the Council has operated within the treasury and prudential indicators set out in the Council’s Treasury Management Strategy Statement for 2023/2024. 

It was RESOLVED:-

·       To note the report, the treasury activity and the prudential indicators as at 30 June, 2023;

·       That all future Quarter 1 and Quarter 3 Treasury Management reports are reviewed and accepted by the Portfolio Holder for Finance and reported to the Governance and Audit Committee for information only.  The half yearly and annual review reports will continue to follow the same process i.e. reported to the Governance and Audit Committee, the Executive and full Council.