Issue - meetings

Treasury management mid-year monitoring 2014/15

 

 

Meeting: 20/01/2015 - Audit and Corporate Governance Committee (Item 25)

25 Treasury management mid-year monitoring 2014/15 pdf icon PDF 253 KB

Purpose: to consider the report that fulfils the legislative requirements to ensure the adequate monitoring of the treasury management activities and that the council’s prudential indicators are reported to council mid-year.  The report provides details of the treasury activities for the first six months of 2014/15 and an update on the current economic conditions with a view to the remainder of the year (attached).

Minutes:

The committee considered the report of the Head of Finance that fulfilled the legislative requirements to ensure the adequate monitoring of the treasury management activities and also fulfilled the requirement to report the prudential indicators to the council mid year.  The report provides details of the treasury activities for the first six months of 2014/15 and an update on the current economic conditions with a view to the remainder of the year.

The Accountancy Manager (Technical), drew attention to the key points in the report, which included the following:

 

·         The council had received over £2 million in respect of its claim for £2.6 million against the failed Icelandic bank Kaupthing Singer & Friedlander, with the twelfth dividend paid on 10 December 2014.

·         Total investment income was forecast to be around £2.4 million in 2014/15 against a budget of £2.1 million

 

In response to questions, officers clarified the following:

 

·         CCLA was the Churches, Charities and Local Authorities property portfolio that the council bought into and which paid slightly below six per cent per annum.

·         The amount of the loan to SOHA was £15 million and not £20 million as stated in the report.

·         The advantage of entering into a seven-year rather than a five-year deal with Kingston upon Hull City Council was the investment income to be gained over the additional period.  It also ensured that the council had a more balanced portfolio spread of investments.

·         Officers were aware of the exposure risks of investing in smaller building societies. However, many of the investments listed in Appendix B had either matured or would mature shortly. Changes proposed to the Treasury management and investment strategy 2015/16 would spread the exposure risks.

 

RESOLVED:

 

  1. that the treasury management mid-year monitoring report 2014/15 be noted;

 

  1. that the committee was satisfied that the treasury activities were carried out in accordance with the treasury management strategy and policy.

 

  1.  that cabinet considers the comments made by the committee and recommends council to approve the report.