Issue - meetings

The Report of the meeting held on 20th June 2013 - attached.

Councillor N J Guyatt, Deputy Executive Leader of the Council and Vice Chairman of the Cabinet presented the Reports of the meetings of the Cabinet held on 16th May and 20th June 2013.

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In connection with Item No 4 and upon being moved by Councillor Guyatt, and seconded by Councillor J A Gray, the recommendation was declared to be CARRIED.

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Whereupon, it was

RESOLVED

that, subject to the foregoing paragraph, the Reports of the meetings of the Cabinet held on 16th May and 20th June 2013 be received and adopted. 

By way of a report by the Assistant Director Finance, to receive the annual report on treasury management.

Recommend the Treasury Management Annual Report 2012/13 to Council.

With the aid of a report by the Accountancy Manager (a copy of which is appended in the Minute Book) the Cabinet considered the Council’s performance of its treasury management activities for the year ending 31^st March 2013.

In accordance with the Chartered Institute of Public Finance and Accountancy’s Treasury Management Code of Practice, Executive Councillors received the views of the Overview and Scrutiny Panel (Economic Well-Being) on the matter.

Having acknowledged that the Council had performed well with regard to the returns it had achieved on its investment in the year, the Cabinet

RECOMMEND

that Council receives the Treasury Management Annual Report 2012/13.

To consider and comment on the Treasury Management Annual Report, prior to its consideration by Cabinet and Council.

(Councillor J A Gray, Executive Councillor for Resources, was in attendance for this item).

In accordance with the Council’s Treasury Management Strategy and with the assistance of a report by the Accountancy Manager (a copy of which is appended in the Minute Book) the Panel considered the Council’s treasury management performance for the year ending 31st March 2013. The Accountancy Manager reported that the funds had performed well in 2012/13, significantly exceeding both the benchmark and the budgeted investment interest. He drew attention to Sections 3.2 to 3.5 of the report and Members noted that the actual net investment interest was more than three times the estimated credit budget of £11,000 for the year. Whilst it might have been expected that income from long term investments could be predicted relatively accurately, this had not been the case because some investments had ended during the year and new arrangements had to be made.

In terms of the Management of VAT, the Panel noted that the Council’s liability in this respect was reviewed annually by HMRC. A question having been raised as to whether there might be a benefit for the Council from transferring the leisure centres to a trust, it was explained that the Council’s VAT liability was not wholly attributable to the leisure centres as VAT was also payable on other land and property. This and other factors meant that there would not be a total saving of the VAT sum, though there was the potential that it might lower the cost.

In response to a comment about the difficulties being experienced by the Co-operative Bank, the Panel’s attention was drawn to Annex B of the report which indicated that the Co-operative Bank was not one of the Council’s counterparties. Members were assured that the counterparty list was reviewed on a monthly basis with the assistance of the Council’s advisors.

Members were informed that the Economic Review of 2012/13 contained in Annex A had been obtained from the Council’s Treasury Management Advisors. In terms of current economic trends, it was explained that the Treasury Management Advisory Group met on an ad hoc basis throughout the year and there were a number of unknown factors which might have an impact on the economy, such as the appointment of a new Governor at the Bank of England. The Accountancy Manager was asked to circulate to Panel Members further information on the estimated credit budget for the forthcoming year. Whereupon, it was

RESOLVED

that the contents of the report be noted.