Meeting:	Audit & Governance Committee
Meeting date:	8 November 2023
Report of:	Debbie Mitchell, Chief Finance Officer
Portfolio of:	Councillor Katie Lomas Executive Member for Finance, Performance, Major Projects, Human Rights, Equality & Inclusion

Audit and Governance Committee Report: Treasury Management Mid-Year Review and Prudential Indicators 2022/23

Subject of Report

1. The purpose of the report is to provide a mid-year update to Audit & Governance Committee on treasury management activities for the first half of the year and to provide the latest update of the prudential indicators.

Policy Basis

2. Audit & Governance Committee are responsible for ensuring effective scrutiny of the treasury management strategy and policies, as stated in the Treasury Management Strategy 2023/24 approved by full Council on 23 February 2023.  The Chartered Institute of Public Finance and Accountancy (CIPFA) Treasury Management in the Public Services: Code of Practice and Cross-Sectoral Guidance (“the Code”) stipulates that:

· There needs to be a quarterly review of treasury management strategy and performance.  This is intended to highlight any areas of concern that have arisen since the original strategy was approved.

· Those charged with governance are also personally responsible for ensuring they have the necessary skills and training.

3. Attached at Annex 1 is the Treasury Management Mid-Year Review 2023/24 report which will be presented to Executive on 16 November 2023.

Recommendation and Reasons

4. Audit & Governance Committee are asked to note and scrutinise Treasury Management Mid-Year Review and Prudential Indicators attached at Annex 1

Reason: That those responsible for scrutiny and governance arrangements are updated on a regular basis to ensure that those implementing policies and executing transactions have properly fulfilled their responsibilities with regard to delegation and reporting.

Background

5. This mid-year report has been prepared in compliance with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management, and covers the following:

· A brief economic update for the first half of the 2023/24 financial year;

· A review of the Treasury Management Strategy Statement and Annual Investment Strategy;

· An update to the prudential indicators;

· A review of the Council’s investment portfolio;

· A review of the Council’s borrowing strategy;

· A review of compliance with the Treasury and Prudential Limits.

Consultation Analysis

6. Not applicable

Risks and Mitigations (optional section)

7. The treasury management function is a high-risk area because of the volume and level of large money transactions. As a result, the Local Government Act 2003 (as amended), the CIPFA Prudential Code and the CIPFA Treasury Management in the Public Services Code of Practice (the code) are all adhered to as required. 

Contact details

For further information please contact the authors of this Report.

Author

Name:	Debbie Mitchell
Job Title:	Chief Finance Officer
Service Area:	Finance
Telephone:	01904 554161
Report approved:	Yes
Date:	12 October 2023

Background papers

None

Annexes

Annex 1 - Treasury Management Mid-Year Review 2023/2024

Annex 2 – Prudential Indicators 2023/24