Issue - meetings

Report of Councillor Gill Mattock on behalf of the Cabinet.

This matter was reported and moved by Councillor Mattock on behalf of the Cabinet and seconded by Councillor Di Cara.

Resolved: That the Treasury Management annual report for 2015/16 be approved and that specific approval be given to the 2015/16 prudential and treasury indicators set out in the report.

Report of Deputy Chief Executive. 

Cabinet lead member:  Councillor Gill Mattock.

Full Council recommended to approve the annual treasury management report for 2015/16 and specific approval given to the 2015/16 prudential and treasury indicators included within the report.

23.1 Cabinet considered the report of the deputy chief executive.  This report covered the treasury management activity and performance for the financial year 2015/16.  The council’s treasury management activities were regulated by a variety of professional codes, statutes and guidance.

23.2 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 council’s Audit and Governance Committee before they were reported to full council.  Member training on treasury management issues was last undertaken on 23 November 2015 in order to support members’ scrutiny role.

23.3 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.

23.4 The deputy chief executive 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 2015/16 continued the challenging environment of previous years; low investment returns and continued counterparty risk.

*23.5 Resolved (budget and policy framework): That full council be recommended to approve the annual treasury management report for 2015/16 and that specific approval be given to the 2015/16 prudential and treasury indicators included within the report.