Issue - meetings

Sarah Hardy, Group Accountant (Technical and Exchequer):

a.    presented a report for Audit Committee to scrutinise and recommend to the Executive for approval the adoption of the 15 statutory prudential indicators and 8 local indicators for the period 2018/19 to 2021/22, together with the 2019/20 Treasury Management Strategy alongside the Medium Term Financial Strategy 2019-24, prior to being reported to Council for final approval

b.    referred to training undertaken prior to the start of this meeting in relation to Treasury Management in order to help members take an informed view on the contents of this report

c.    summarised the key prudential indicators which had been incorporated into the 2019/20 strategy; the projected capital expenditure would determine the capital financing or borrowing requirement, which would in turn determine the actual level of external borrowing taken and hence, cash balances available for investment

d.    reported on the methodology employed for selecting investment counterparties as detailed at paragraph 2.2 of the report 

e.    advised that the strategy for 2019/20 had been prepared taking into account changes in the Prudential Code and Treasury Management Code

f.     outlined the operation of the Council's prudential indicators, it's treasury function and its likely activities for the forthcoming year, incorporating the four key Council reporting requirements as follows:

g.    requested that Audit Committee review the content of the report and its associated appendices and recommend to Executive and Council for approval.

Members considered further the content of the report.

Jane Nellist, Independent Member, referred to cash balances for short term investments having reduced and queried whether they would stop altogether.

Sarah Hardy, Group Accountant (Technical and Exchequer) advised that a minimum level of £5m available cash balances had been set for short term investment, although it may not go as low as this figure. Temporary short-term borrowing measures could be used to ensure sufficient liquidity of resources managed on a daily basis.

RESOLVED that:

1.    The prudential indicators detailed in Section 4.1 and Appendix 1 of the report be recommended to Executive and Council for approval.

2. The Treasury Management Strategy (including the Treasury Management Prudential Indicators and the Investment Strategy) as set out in Section 4.3 and Appendix 3 of the report be recommended to Executive and Council for approval.

3. The revised MRP policy detailed in Appendix 2 of the report be recommended to Executive and Council for approval.

Sarah Hardy, Group Accountant (Technical and Exchequer):

a.    presented a report for Audit Committee to scrutinise and recommend to the Executive for approval the adoption of the 15 statutory prudential indicators and 8 local indicators for the period 2017/18 to 2020/21, together with the 2018/19 Treasury Management Strategy alongside the Medium Term Financial Strategy 2018-23, prior to being reported to Council for final approval

b.    referred to training undertaken prior to the start of this meeting in relation to Treasury Management in order to help members take an informed view on the contents of this report

c.    summarised the key prudential indicators which had been incorporated into the 2018/19 strategy; the projected capital expenditure would determine the capital financing or borrowing requirement, which would in turn determine the actual level of external borrowing taken and hence, cash balances available for investment

1. reported on the methodology employed for selecting investment counterparties as detailed at paragraph 2.2 of the report 

2. advised that the strategy for 2018/19 had been prepared taking into account changes in the Prudential Code and Treasury Management Code

3. outlined the operation of the Council's prudential indicators, it's treasury function and its likely activities for the forthcoming year, incorporating the four key Council reporting requirements as follows:

4. requested that Audit Committee review the content of the report and its associated appendices and recommend to Executive and Council for approval.

Members considered further the content of the report, raising the following questions:

·         : Would capital receipts from the sale of land/property still be available by the year 2020?

·         : The balance of capital receipts was not shown in the table provided at paragraph 4.1.2 of the report. It would be detailed in the final Medium Term Financial Strategy 2018-2023(MTFS).

·         : How were large capital sums allocated to projects during the year built into the MTFS?

·         : New projects which came on board during the year would be presented to Executive for approval as part of the capital programme moving forward. Performance Scrutiny Committee also received regular quarterly financial updates.

·         : How did ongoing maintenance of assets get accounted for?

·         : A maintenance budget and a sinking fund capital budget was built into the figures for the MTFS.

·         : What happened to those assets reducing in value and dropping to the bottom of the priorities list?

·         : An asset register was kept/maintained. The Council’s priorities at any one time dictated whether or not individual assets were the subject of investment. A cyclical programme of asset revaluation was undertaken, any devaluation of assets would be reflected in the balance sheet.

·         : What was the meaning of ‘counterparties’?

·         : This was a standard description in treasury terms for people the Council had financial arrangements with.

RESOLVED that:

1.    The prudential indicators detailed in Section 4.1 and Appendix 1 of the report be recommended to Executive  ...  view the full minutes text for item 37