Issue - meetings

Cabinet, at its meeting on 29 September, considered the report of the head of finance on the outturn performance of the treasury management function for the financial year 2021/22.

The report of the head of finance, which the Joint Audit and Governance Committee considered on 27 September 2022 and Cabinet considered on 29 September, is attached.

RECOMMENDATION: to

1.    approve the treasury management outturn report for 2021/22;

2.    approve the actual 2021/22 prudential indicators within the report.

Council considered Cabinet’s recommendations, made at its meeting on 29 September 2022, on the outturn performance of the treasury management function for the financial year 2021/22. 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.

In response to a question regarding the lack of environmental, social and governance (ESGs) considerations in the current Treasury Management Strategy (TMS), Councillor Rawlins, Cabinet member for Finance, responded that Council was being invited to approve the 2021/21 outturn against the strategy in place during that period at this meeting. He acknowledged that the council was looking at a revision of the TMS to include ESG factors alongside financial factors. However, the council had a duty to reflect the principles of security, liquidity and to invest in sound investments.

RESOLVED: to

1.          approve the treasury management outturn report 2021/22; and

2.          approve the actual 2021/22 prudential indicators within the report. 

To consider the head of finance’s report. 

Cabinet considered the head of finance’s report on the treasury outturn for the 2021/22 financial year. 

The Joint Audit and Governance Committee had considered the report and had recommended to Cabinet that the treasury activities in 2021/22 had been carried out in accordance with the council’s treasury management strategy and policy. 

The Cabinet member for finance reported that rising interest rates had increased investment income towards the end of the financial year.  Performance of the internally managed portfolio exceeded benchmarks, whilst that of the externally managed portfolio was modestly below benchmarks.  There had been no breaches of the counterparty limits or prudential indicators during the year. 

Cabinet welcomed the report and thanked the Joint Audit and Governance Committee and officers for their work. 

RESOLVED to:

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

RECOMMENDED to Council to:

(b)       approve the treasury management outturn report for 2021/22;

(c)        approve the actual 2021/22 prudential indicators within the report.

To consider the report of the Head of Finance.

The committee considered the treasury outturn report by the head of finance. The report highlighted that in terms of performance both councils exceeded their budget, however, this is primarily due to the rise in interest rates. Performances exceeded benchmarks across both councils and all counterparty limits were met, with no breaches of potential indicators within the context of the strategy it was set in.

Resolved: Committee voted unanimously to receive the report.