This report is the treasury management review for the quarter ended 30 September 2017. It summarises the Council’s Treasury Management operations during the first six months of 2017/18. It is presented for the purpose of monitoring and review and meets best practice as suggested by the Treasury Management Code of Practice.
The Council invested surplus funds when available and complied with the requirements of the Prudential Code. The Council is operating the agreed Treasury Management Strategy for 2017/18.
Councillor David Hicks, Chair of the Audit Committee, formally moved the adoption of the minute, which was put to the vote and carried.
RESOLVED: that that this report be adopted as the mid year treasury management review and noted.
This report is the treasury management review for the quarter ended 30 September 2017. It summarises the Council’s Treasury Management operations during the first six months of 2017/18.
MANAGEMENT QUARTERLY REPORT
The report was presented by Lyndsey Gamble, Head of Investment, Risk and Commercial Finance. She outlined the treasury management review for the quarter ended 30 September 2017 and the Treasury Management operations during the first six months of 2017/18. The Committee were advised that no new borrowing had been undertaken in this timeframe. It was confirmed that Investments as at end of September stood at just over £35M, and that the strategy is that the Council are continuing to use resources to fund capital expenditure. The need to ensure a minimum investment balances of £10M under Mifid II was also highlighted.
The committee were updated that the Prudential code and Treasury Management code has now been revised. It was confirmed that the Prudential code highlights that you may not borrow in advance of need. In discussion it was highlighted that the essence of the Prudential code is regarding high level capital strategy on what CIPFA expect to be included. The new format is being looked at for 2018/19 to get this into the right structure. The consultation by the Government on investment guidance and MRP guidance has closed. The outcome of this is awaited.
There is currently some uncertainty regarding commercial property re investment. CIPFA (The Chartered Institute of Public Finance and Accountancy) have already reviewed London Borough of Sutton (LBS) arrangements for commercial property and these are believed to be sound. The government guidance is awaited to confirm this. Regarding Mifid II LBS have now opted up to Commercial status.
Members asked for clarification on the new codes and the new guidance. It was confirmed that the Prudential code and Treasury Managements code were published by CIPFA before Christmas. The outcome of the Government consultation on investment guidance and MRP guidance has not yet been published.