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Decision details

Treasury Management Half Yearly Update Report 2021/22

Decision Maker: Executive Councillor for Finance and Resources

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Recommend the report to Council, which includes the Council's estimated Prudential and Treasury Indicators 2021/22 to 2024/25. Also, to revise any counterparty limits as applicable.

Decision:

Matter for Decision

 

The Council has adopted The Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management (Revised 2017).

 

The Code of Practice requires as a minimum receipt by full Council of an Annual Treasury Management Strategy Statement – including the Annual Investment Strategy and Minimum Revenue Provision Policy – for the year ahead, a half-year review report and an Annual Report (stewardship report) covering activities in the previous year

 

This half-year report has been prepared in accordance with the Code and covers the following: -

 

·  The Council’s capital expenditure (Prudential Indicators);

·  A review of compliance with Treasury and Prudential Limits for 2021/22;

·  A review of the Council’s borrowing strategy for 2021/22;

·  A review of the Treasury Management Strategy Statement and Annual Investment Strategy;

·  A review of the Council’s investment portfolio for 2021/22; and;

·  An update on interest rate forecasts following economic news in the first half of the 2021/22 financial year.

 

 

Decision of Executive Councillor for Finance and Resources to recommend that Council

 

  i.  Approve the Council’s estimated Prudential and Treasury Indicators 2021/22 to 2024/25 (Appendix A of the officer’s report).

  ii.  Approve that the counterparty limit for building societies with assets over £100bn be increased by £10m to £30m (Appendix B of the officer’s report).

  iii.  Approve the changes to the Cambridge Investment Partnership loans in the counterparty list, to bring these into line with the approved expenditure per the approved capital plan (Appendix B of the officer’s report).

 

 

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Head of Finance.

 

In response to a request for further information, the Head of Finance undertook to provide to the scrutiny committee the value of the CCLA Property Fund investment each year since it was purchased.

 

Subsequent to the meeting, the following was provided:

Date

Nominal Value (Cash deposited)

Fair Value

31 March 2015

£10,000,000

£9,434,022

31 March 2016

£10,000,000

£10,000,348

31 March 2017

£15,000,000

£14,534,900

31 March 2018

£15,000,000

£15,225,160

31 March 2019

£15,000,000

£15,461,733

31 March 2020

£15,000,000

£14,908,706

31 March 2021

£15,000,000

£14,802,709

 

The Committee unanimously resolved to endorse the recommendations.

 

The Executive Councillor approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.

 

 

Publication date: 16/11/2021

Date of decision: 11/10/2021