Issue - items at meetings - Treasury Management Policy Statement (incorporating the Annual Investment Strategy) End of Year review 2013/14

Report of the Executive Director for Finance & Resources (to follow).

1)           That Policy & Resources Committee endorses the key actions taken during the second half of 2013/14 to meet the treasury management policy statement and practices (including the investment strategy) as set out in this report.

2)           That Policy & Resources Committee notes that the approved maximum indicator for investment risk of 0.05% has been adhered to and the authorised limit  and operational boundary have not been exceeded.

29.1    The Committee considered a report of the Executive Director for Finance & Resources in relation to the Treasury Management Policy Statement 2013/14 – End of Year Review. The 2013/14 Treasury Management Policy Statement (TMPS) practices and schedules were approved by the Committee on 21 March 2013. The TMPS set out the role of Treasury Management; whilst the practices and schedules set out the annual targets and methods by which those targets would be met. The TMPS included the Annual Investment Strategy (AIS) which set out the key parameters for investing Council cash funds and was approved by Council on 28 March 2013 and amended on 12 December 2013. Good practice recommended that Members receive biannual reports and reviews, and endorse the treasury management actions during the year.

29.2    Councillor Sykes thanked Officers for the report, and welcomed the prudent management of the organisation’s finances. He supported the establishment of the Municipal Bonds Agency in view to it creating competition in public sector borrowing.

29.3    Councillor A. Norman noted the consistent high standard of the work undertaken by Officers; she went on to add that she also welcomed the creation of the Municipal Bonds Agency to provide local authorities more opportunities to borrow. In response to a query the Executive Director for Finance & Resources explained that the minimum capital raising requirement had been met for the Municipal Bonds Agency, but the agency was still requesting further contributions. The TBM report listed at Item 30 on the agenda would give the Executive Director authority, in consultation with the Leader and Leaders of the Oppositions Groups, to allocate additional funding as more information came forward.

29.4    Councillor G. Theobald welcomed the creation of the agency as means to allow local authorities to be more proactive.

29.5    Councillor Hamilton noted that he agreed with the comments made by Councillor A. Norman and added that internal audit had provided ‘substantial assurance’ in January 2014.

29.6    The Chair then put the recommendation to the vote.

29.7    RESOLVED:

1)        That the Committee endorses the key actions taken during the second half of 2013/14 to meet the treasury management policy statement and practices (including the investment strategy) as set out in this report.

2)        That the Committee notes that the approved maximum indicator for investment risk of 0.05% has been adhered to and the authorised limit and operational boundary have not been exceeded.