Issue - meetings

Cabinet, at its meeting on 3 December 2020, considered a monitoring report on the treasury management activities for the first six months of 2020/21 and an update on the current economic conditions with a view to the remainder of the year. 

The Joint Audit and Governance Committee considered the report at its meeting on 26 November 2020. The committee resolved to note the treasury management mid-year monitoring report 2020/21 and was satisfied that the treasury activities are carried out in accordance with the treasury management strategy and policy.Cabinet, at its meeting on 3 December 2020, concurred with the Joint Audit and Governance Committee.

The report of the interim head of finance, which Cabinet considered on 3 December 2020, is attached.

RECOMMENDATION to:

1.    note that the Joint Audit and Governance Committee is satisfied that the treasury activities have been carried out in accordance with the treasury management strategy and policy; and

2.    approve the treasury management mid-year monitoring report 2020/21.

Council considered Cabinet’s recommendations, made at its meeting on 3 December 2020, on the treasury management mid-year monitoring report for the financial year 2020/21.

The Joint Audit and Governance Committee and Cabinet had considered the 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.    note that the Joint Audit and Governance Committee is satisfied that the treasury activities have been carried out in accordance with the treasury management strategy and policy; and

2.       approve the treasury management mid-year monitoring report 2020/21.

To consider the interim head of finance’s report. 

Cabinet considered the report of the interim head of finance.  This set out a review of the treasury management performance at the mid-point of the 2020/21 financial year.  The report projected that South Oxfordshire could be marginally under budget at the year end, resulting from the types of investments and their maturity dates.  The returns had been achieved within the counterparty limits and the prudential indicators set out in the treasury management strategy 2020/21. 

The report had been considered by the Joint Audit and Governance Committee at its meeting on 26 November 2020.  The committee had been satisfied that the treasury activities had been carried out in accordance with the treasury management strategy and policy.  Cabinet concurred and duly recommended Council. 

The report also discussed the possible scenario of negative interest rates and their effect on the council’s treasury management performance.  In such a scenario, the councils’ income would likely fall.  This might require the council to seek longer term investments at higher interest rates and to increase its use of notice accounts.  A reduction in investment income would have to be reflected in the medium term financial plans.  Officers would monitor the situation closely. 

Cabinet asked that when the treasury management and investment strategy was next reviewed, consideration was given to green investments.  Officers agreed to review this. 

RECOMMENDED to Council on 10 December 2020 to:

(a)      note that the Joint Audit and Governance Committee is satisfied that the treasury activities have been carried out in accordance with the treasury management strategy and policy; and

(b)      approve the treasury management mid-year monitoring report 2020/21.