Issue - meetings

To consider the report of the head of finance on the council’s treasury management activities and prudential indicators for the financial year 2022/23.

At its meeting on 9 November 2023, Cabinet agreed the recommendations to Council set out in the report and resolved:

1.    To note the treasury management outturn report 2022/23,

2.    is satisfied that the treasury activities are carried out in accordance with the treasury management strategy and policy

Council considered the head of finance’s report on the treasury management outturn for 2022/23.  The Cabinet member for finance reported that the outturn report had also been considered by the Joint Audit and Governance Committee and Cabinet, both of which were satisfied that the treasury activities during 2022/23 had been carried out in accordance with the treasury management strategy and policy.  There had been an overachievement of treasury income during the year, largely due to high interest rates.  Performance had exceeded expectations and there had been no breaches of the counterparty limits or the prudential indicators. 

In answer to questions regarding the council’s strategy on environmentally harmful investments, the Cabinet member reported that the treasury management and investment strategy would be reviewed by the Joint Audit and Governance Committee, Cabinet and Council in the new year. 

RESOLVED to:

(a)       approve the treasury management outturn report 2022/23; and

(b)       approve the actual 2022/23 prudential indicators within the report. 

To consider the head of finance’s report. 

Cabinet considered the head of finance’s report on the treasury management outturn for 2022/23.  This set out the treasury activity and performance during the last financial year. 

Members noted that the Joint Audit and Governance Committee had considered the report on 3 October 2023 and was satisfied that the treasury activities had been carried out in accordance with the treasury management strategy and policy. 

Cabinet concurred.  Despite a turbulent operating environment, the council continued to make investments during 2022/23 that maintained security and liquidity and took advantage of the increases in interest rates in line with the parameters of the treasury management strategy. 

To comply with treasury management professional guidance, the council’s investments prioritised security, liquidity and yield, in that order.  Looking ahead, the Cabinet member for finance welcomed officers exploring the introduction of environmental, social and governance factors as a fourth consideration in the investment decision-making process, having first complied with the priorities outlined in the guidance.  The Cabinet member reported that the council had no direct investments during the financial year with companies engaged in environmentally harmful activities. 

RESOLVED:

(a)    to note the treasury management outturn report 2022/23;

(b)    that Cabinet is satisfied that the treasury activities have been carried out in accordance with the treasury management strategy and policy;

RECOMMENDED to Council to:

(c)    to approve the treasury management outturn report 2022/23 to Cabinet on 9 November 2023; and

(d)    approve the actual 2022/23 prudential indicators within the report.