Issue - meetings

This report fulfils the Authority’s legal obligation under the Local Government Act 2003 to have regard to the CIPFA Code. Treasury management is the management of the Authority’s cash flows, borrowing and investments, and the associated risks. The Authority has borrowed and invested substantial sums of money and is therefore exposed to financial risks including the loss of invested funds and the revenue effect of changing interest rates.  The successful identification, monitoring and control of financial risk are therefore central to the Authority’s prudent financial management.

This report was scrutinised by the Corporate Audit Committee at the 6^th February 2020 meeting, and reported to Cabinet on 13^th February 2020.

The Council considered the Treasury Management Strategy Statement and Treasury Investment Strategy 2020/21 which is prepared within the framework of the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2017 Edition (the CIPFA Code). This report fulfils the Authority’s legal obligation under the Local Government Act 2003 to have regard to the CIPFA Code.

The Strategy Statements were scrutinised by the Corporate Audit Committee at the 6^th February 2020 meeting, and reported to Cabinet on 13^th February 2020.

On a motion from Councillor Richard Samuel, seconded by Councillor Mark Elliott, it was unanimously

RESOLVED

To approve the actions proposed within the Treasury Management Strategy Statement (Appendix 1).

Treasury risk management at the Authority is conducted within the framework of the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2017 Edition (the CIPFA Code) which requires the Authority to approve a treasury management strategy before the start of each financial year. This report fulfils the Authority’s legal obligation under the Local Government Act 2003 to have regard to the CIPFA Code.

Councillor Richard Samuel introduced the Strategy statement which will be recommended to Council.  He drew Members’ attention to the Municipal Bonds agency which might make borrowing more complicated but may be a potential investment source in the future.

On a motion from Councillor Richard Samuel, seconded by Councillor Dine Romero, it was

RESOLVED (unanimously) that the Cabinet agreed to:

1.  Recommend the actions proposed within the Treasury Management Strategy Statement (Appendix 1) to February Council;

2.  Note the Treasury Management Indicators detailed in Appendix 1 and delegate authority for updating the indicators prior to approval at Full Council on 25th February 2020 to the Chief Finance Officer and Cabinet Member for Resources, in light of any changes to the recommended budget as set out in the Budget Report elsewhere on the agenda for this meeting; and

3.  Note that any comments made by the Corporate Audit Committee at their meeting on the 6th February 2020 will be reported to Full Council on the 25th February 2020.