Issue - meetings

Cabinet, at its meeting on 24 September 2020, considered the report of the interim head of finance on the outturn performance of the treasury management function for the financial year 2019/20.

The report of the interim head of finance, which the Joint Audit and Governance Committee considered on 22 September 2020 and Cabinet considered on 24 September 2020, is attached.

The Joint Audit and Governance Committee noted the treasury management outturn report 2019/20 and was satisfied that the treasury activities were carried out in accordance with the treasury management strategy and policy.

RECOMMENDATION: to

1.approve the treasury management outturn report for 2019/20; and

2. approve the actual 2019/20 prudential indicators within the report. 

Council considered Cabinet’s recommendations, made at its meeting on 24 September 2020, on the outturn performance of the treasury management function for the financial year 2019/20. The Joint Audit and Governance Committee and Cabinet had considered the interim head of finance’s report and were satisfied that the treasury activities had been carried out in accordance with the treasury management strategy and policy.

RESOLVED: to

1.         approve the treasury management outturn report 2019/20; and

2.         approve the actual 2019/20 prudential indicators within the report. 

To consider the interim head of finance’s report. 

Cabinet considered the report of the interim head of finance on the treasury outturn 2019/20. This reporting fulfilled the legislative requirements to ensure the adequate monitoring and reporting of the treasury management activities and that the council’s prudential indicators were reported to the council at the end of the year.  The report provided details of the treasury activities for the financial year 2019/20. This action also complied with the requirements of the Chartered Institute of Public Finance and Accountancy (CIPFA’s) Code of Practice on Treasury Management.

Cabinet was advised that the Joint Audit and Governance Committee had considered the report and were satisfied with the council’s financial performance. 

Cabinet noted with approval the performance demonstrated in the Yield table (page 9 of report) which depicted an actual investment income of £3.243m against a budgeted investment income of £2.807m. Including the property investment income, the overall total for 2019/20 was £3.634m, with a rate of return of 1.99%.

RECOMMEND to Council to:

(a)       approve the treasury management outturn report for 2019/20; and

(b)       approve the actual 2019/20 prudential indicators within the report. 

To consider the interim head of finance’s report. 

The committee considered the interim head of finance’s report on the management and outturn of the councils’ treasury activity during 2019/20.  The committee noted that performance had exceeded the target returns for both councils and that this had been achieved within the treasury management strategy and policy, and within the Prudential limits approved by both Councils. 

The committee welcomed the report but questioned what would be the effect of negative interest rates on the councils’ treasury activities.  The committee asked officers to investigate this scenario and report back to the next meeting. 

RESOLVED: to

(a)      note the treasury management outturn report 2019/20;

(b)      advise Cabinet that the committee is satisfied that the treasury activities during 2019/20 have been carried out in accordance with the treasury management strategy and policy; and

(c)       ask officers to investigate the impact negative interest rates would have on the council’s treasury management activities and report back to the next meeting.