Issue - meetings

Report of Councillor Mattock on behalf of the Cabinet.

The matter was proposed by Councillor Mattock on behalf of the Cabinet and seconded by Councillor Elkin.

Resolved: That the annual treasury management report for 2013/14 be approved, and that specific approval be given to the 2013/14 prudential and treasury indicators included within the report.

Report of Chief Finance Officer.

Cabinet lead member:  Councillor Gill Mattock

Full Council recommended to approve the annual treasury management report for 2013/14 and that specific approval be given to the 2013/14 prudential and treasury indicators included within the report.

28.1 Cabinet considered the report of the chief finance officer.  This report covered the treasury management activity and performance for the financial year 2013/14.  The council’s treasury management activities were regulated by a variety of professional codes, statutes and guidance.

28.2 Past changes in the regulatory environment had placed a much greater onus on members for the review and scrutiny of treasury management policy and activities.  This report was important in that respect, as it provided details of the outturn position for treasury activities and highlighted compliance with the council’s policies previously approved by members.  It was also confirmed that the council had complied with the requirement under the code to give prior scrutiny to all of the above treasury management reports by the audit committee before they were reported to full council.  Member training on treasury management issues had last been undertaken in 2010 in order to support members’ scrutiny role.

28.3 The report summarised:

• Capital activity during the year.
• Impact of this activity on the council’s underlying indebtedness (the capital financing requirement).
• Reporting of the required prudential and treasury indicators.
• Overall treasury position identifying how the council had borrowed in relation to this indebtedness, and the impact on investment balances.
• Summary of interest rate movements in the year.
• Debt and investment activity.

28.4 The chief finance officer also confirmed that borrowing was only undertaken for a capital purpose and the statutory borrowing limit (the authorised limit), had not been not breached.  He commented that the financial year 2013/14 continued the challenging environment of previous years; low investment returns and continued counterparty risk.

28.5 *Resolved (budget and policy framework): That full council be recommended to approve the annual treasury management report for 2013/14 and that specific approval be given to the 2013/14 prudential and treasury indicators included within the report.