Agenda item

This report updates the Executive Member on Treasury Management performance for 2005/06, covering short-term investments, long-term borrowing, the venture fund, outturn and including a review of the Prudential Indicators.  It also seeks approval of a revised Treasury Management Policy Statement and Practices, following a recent review of the Treasury Management in the Public Services Code of Practice by the Chartered Institute of Public Finance and Accountancy (CIPFA) and subsequent recommendations that local authorities update their policy statements and practices.

(i)           That the performance of the Treasury Management activity in 2005/06, the movements on the Venture Fund and the Treasury Management outturn be noted;

(ii)         That the review of the movements in the Prudential Indicators be noted;

(iii)       That the revised Treasury Management Policy Statement and Practices, attached as Annexes E & F of the report, be approved, subject to the following amendments

(a)To the Policy Statement to reflect that the Council now delegated responsibility for the implementation and monitoring of its treasury management policies and practices to the Executive Member for Corporate Services;

(b)To the first bullet point of the section headed “Checks” on page 10 of the Practice Schedules to require bank reconciliation to be carried out monthly from the bank statement to the financial ledger;

(c)To point f) of paragraph 5.1 on page 18 of the Practice Schedules to reflect that the Council’s audit committee was called the Audit and Governance Committee.

Members received a report which updated them on Treasury Management performance for 2005/06, covering short-term investments, long-term borrowing, the Venture Fund, outturn and including a review of the Prudential Indicators.  It also sought approval of a revised Treasury Management Policy Statement and Practices, following a recent review of the Treasury Management in the Public Services Code of Practice by the Chartered Institute of Public Finance and Accountancy (CIPFA) and subsequent recommendations that local authorities update their policy statements and practices.

As part of the update on Treasury Management performance for 2005/06 it was reported that:

·        The Council’s average balance available for short term investments had dropped slightly from £29.2m in 2004/05 to £27.6m in 2005/06;

·        The Council’s long term borrowings started 2005/06  at £80.4m and ended it at £93.4m;

·        The balance on the Venture Fund was £1,467k at the start of 2005/06 and £852k at the end;

·        The Treasury Management outturn for 2005/06 was £2,628k against an approved budget of £2,526k, which resulted in a small overspend of £102k.

Paragraph 27 and Annex D of the report presented a review of the Prudential Indicators for 2005/06.

The revised Treasury Management Policy Statement and Practices were attached as Annexes E & F of the report. 

Advice of the Advisory Panel

(i)           That the performance of the Treasury Management activity in 2005/06, the movements on the Venture Fund and the Treasury Management outturn be noted;

(ii)         That the review of the movements in the Prudential Indicators be noted;

(iii)       That the revised Treasury Management Policy Statement and Practices, attached as Annexes E & F of the report, be approved, subject to the following amendments

(a)To the Policy Statement to reflect that the Council now delegated responsibility for the implementation and monitoring of its treasury management policies and practices to the Executive Member for Corporate Services;

(b)To the first bullet point of the section headed “Checks” on page 10 of the Practice Schedules to require bank reconciliation to be carried out monthly from the bank statement to the financial ledger;

(c)To point f) of paragraph 5.1 on page 18 of the Practice Schedules to reflect that the Council’s audit committee was called the Audit and Governance Committee.

Decision of the Executive Member

RESOLVED:That the advice of the Advisory Panel be accepted and endorsed.

REASON:In order to comply with the CIPFA Treasury Management in the Public Services Code of Practice.