Cabinet considered the head of finance’s statutory mid-year monitoring report on the council’s treasury management function. The report provided details of the treasury activities during the period 1 April to 30 September 2016, together with an assessment of economic conditions looking forward to the remainder of the financial year.
Cabinet noted that a breach of the counterparty limits had occurred; temporary authorisation had been sought and obtained to overcome this. All other treasury management activities had operated within the agreed parameters.
The report estimated that the interest received from cash investments would be above budget forecast at the end of the financial year. This meant the council’s cash balances would be higher than anticipated. In addition, the council had realised £2 million from a disposal of part of its unit trust holdings. There had been no need for the council to borrow funds during the first six months of the financial year and no borrowing was forecast for the remainder of the year also.
The Joint Audit and Governance Committee had also considered the report and was satisfied that the treasury management activities had been carried out in accordance with the treasury management strategy and policy. Cabinet concurred.
RECOMMENDED: to Council to approve the head of finance’s treasury management mid-year monitoring report to Cabinet on 1 February 2017.