Issue - meetings

Treasury Management Policy refresh and approval for next financial year (2021/22)

Meeting: 21/01/2021 - Audit and Governance Committee (Item 58)

58 Treasury Management Monitoring report for the period April to December 2020 and Treasury Management Strategy 2021/22 pdf icon PDF 335 KB

This report sets out the monitoring of the Council’s Treasury Management function for the period 1 April 2020 to 31 December 2020. A surplus of £159k will be achieved through lower borrowing costs due to historically low interest rates.

The Treasury Management Strategy 2021/22 is included as an appendix to this report. Key changes to the strategy have been set out in paragraphs 29-33 as well as inclusion of analysis of the approach to finance more of the capital programme through borrowing.

Additional documents:

Minutes:

The Finance Manager (Corporate) presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

The report set out the monitoring of the Council’s Treasury Management function for the period 1 April 2020 to 31 December 2020 set against a summary of the prevailing economic background and an assessment of the impact of changing interest rates. Details of actual performance were set out including a schedule of the Council’s borrowing and investments.  It was reported that the current prediction was for a net surplus of £159k and iIt was explained that this would be achieved through lower borrowing costs as a result of historically low interest rates.

It was confirmed that regular internal and external audit of treasury management activities had confirmed compliance with the Council’s Financial Regulations and that a sound control framework was in place with key control systems being consistently applied.

The Treasury Management Strategy for 2021/22 had also been included with the agenda and circulated as an appendix to the report. The key changes proposed to the Strategy were set out including an analysis of the proposed approach to financing more of the capital programme through borrowing. The different sources of short-term and long-term borrowing were explained.

In response to questions, it was confirmed that all Councils were being encouraged to adopt a similar financing approach to the proposal set out in the Strategy. In terms of investments, it was also confirmed that treasury investments, where undertaken, took place through national Banking Institutions

RESOLVED that the Audit and Governance Committee

(a)  Note the reported activity of the Treasury Management function for the period ending 31 December 2020;

(b)  Approve the Treasury Management Strategy 2021/22 included in Appendix 1 of the report to the Audit and Governance Committee.

Voting: Unanimous