Issue - meetings

To consider a report by the Head of Financial Services containing a proposed Treasury Management Strategy, which is required under the Council’s Code of Financial Management.

recommended to the Council that the following be approved; the Treasury Management Strategy for 2010/2011, the Treasury Management Indicators and Prudential Indicators for 2010/2011; and the scrutiny of Treasury Management be undertaken by the Overview and Scrutiny (Economic Well-Being) Panel.

With the aid of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Cabinet considered the contents of a proposed Treasury Management Strategy for 2010/2011.  The views of the Overview and Scrutiny Panel (Economic Well-Being) were received (copies of which also are appended in the Minute Book).

Having noted changes to the Chartered Institute of Public Finance and Accountancy's Treasury Management Code of Practice, and in particular a requirement for Council’s to nominate where the responsibility for scrutinising Treasury Management would be undertaken, the Cabinet

RESOLVED

  that the Council be recommended to approve:-

·  the Treasury Management Strategy for 2010/11 as appended to the report now submitted;

·  the Treasury Management Indicators and Prudential Indicators for 2010/11; and

·  the scrutiny of Treasury Management be undertaken by the Overview and Scrutiny (Economic Well-Being) Panel.

To consider a report by the Head of Financial Services.

(Councillor T V Rogers, Executive Councillor for Finance, was in attendance for this Item).

With the assistance of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Panel was acquainted with proposed changes to the Council's Treasury Management Strategy for 2010/11. The Panel was advised that following the collapse of the Icelandic Banks in 2008 treasury management now had a higher profile, which had led to new interim guidance from the Audit Commission and a revised Code of Practice from the Chartered Institute of Public Finance and Accountancy being produced.  Members were also advised that the Department for Communities and Local Government was currently consulting on revised guidance on local authority investments, which was expected to apply from April 2010 onwards. The primary change would be to place emphasis on using a wider range of information to assess the credit quality of counterparties and on the security and liquidity of investments. The Panel was acquainted with the recommended criteria for assessing the credit worthiness of counterparties for Council investments.

Having outlined the borrowing that had taken place to fund the Capital Programme in future years, the Head of Financial Services went on to discuss the Prudential Code, which covered a number of indicators relating to capital expenditure, external debt and treasury management. Compliance with the Code would enable the Council to demonstrate the robustness of its capital expenditure plans. Members were advised that the proposed Strategy took account of the Code and Guidance and that further modifications would be considered should the final Guidance differ materially from the draft.

Members were advised that responsibility for scrutinising Treasury Management would fall to the Economic Well-being Overview and Scrutiny Panel and training to enable them to ensure that the Council complied with the Code would be arranged.  Having noted that in future, half yearly reports would be submitted to the Panel, it was

RESOLVED

  that the Cabinet be requested to recommend the Council to approve:

a)  the revised Treasury Management Strategy for 2010/11,

b)  the Treasury Management Indicators and Prudential Indicators for 2010/11 and

c)  scrutiny of Treasury Management by the Overview and Scrutiny (Economic Well-being) Panel.