Issue - meetings

Treasury management outturn 2014/15

 

 

Meeting: 15/10/2015 - Council (Item 14)

14 Treasury management outturn 2014/15 pdf icon PDF 255 KB

 

(Cabinet member responsible: Mrs J Murphy)

 

Cabinet, at its meeting on 13 October 2015, will consider a report on the outturn performance of the treasury management function for the financial year 2014/15.

 

The report of the head of finance, which Cabinet will consider on 13 October, is attached.

 

The recommendations of Cabinet will be circulated to councillors on 13 October 2015.

 

Additional documents:

Minutes:

Council considered the Cabinet’s recommendation, made at its meeting on 13 October 2015, on the performance of the treasury management function for the financial year 2014/15 and the actual 2014/15 prudential indicators.

 

In introducing the item Mrs Murphy, Cabinet member for finance, advised of a correction to the surplus figure in the table in paragraph 7 of the report which should read £402,767 and not £421,605. A corrected table is set out below:

 

 

 

 

South Oxfordshire District Council

Vale of White Horse District Council

1

Average investment balance

£127,831,000

£30,874,514

2

Budgeted investment income

£2,090,000

£355,500

3

Actual investment income

£2,492,767

£430,807

4

Surplus/(deficit)   (3) – (2)

£402,767

£75,307

5

Rate of return  (3) ÷ (1)

1.950%

1.395%

6

Benchmark rate of return:

3 month LIBID

Industry average*

 

0.43%

0.75%

7

Borrowing

Nil

Nil

 

 

She reported that investments had provided a two per cent return equating to £2.5 million investment income which supported the council’s medium term financial plan and contributed to the council’s balances and in year expenditure programmes. 

 

Cabinet and the Joint Audit and Governance Committee were satisfied that the treasury activities were carried out in accordance with the treasury management strategy and policy. 

 

RESOLVED: to

1.    approve the treasury management outturn report for 2014/15;

2.    approve the actual 2014/15 prudential indicators within the report of the head of finance to Cabinet on 13 October 2015. 

 

Meeting: 13/10/2015 - Cabinet (Item 33)

33 Treasury management outturn 2014/15 pdf icon PDF 255 KB

To consider the head of finance’s report. 

Additional documents:

Minutes:

Cabinet considered the head of finance’s report on the treasury management performance during 2014/15.  It had been a challenging year with:

·         low investment returns and difficulties placing long-term investments

·        increased counterparty risk through a reduced choice of counterparties (other parties involved in financial transactions)

·         interest rate exposure risk, due to investments held for short-term maturity periods

The appendices to the report set out details of investment performance throughout the year. 

 

Despite the uncertainty, the council continued to make investments that maintained security and liquidity whilst providing a 2 per cent return, exceeding market benchmarks and equating to £2.5 million investment income.  Cabinet, like the Joint Audit and Governance Committee that also considered the report, was satisfied that the treasury activities had been carried out in accordance with the treasury management strategy and policy. 

 

RECOMMENDED to Council

 

(a)       To approve the treasury management outturn report for 2014/15; and

 

(b)       To approve the actual 2014/15 prudential indicators within the report.