Issue - meetings
Treasury Management Outturn Report for 2017/18
Meeting: 25/07/2018 - Audit Committee (Item 5)
5 Treasury Management Outturn Report for 2017/18 PDF 311 KB
Minutes:
Kevin Miles, Chief Accountant introduced the Treasury Management Outturn Report for 2017/18. He informed members the Treasury Management Strategy Statement and the Treasury Prudential Indicators for 2017/18 were approved by the Council on the 22nd February 2017 as required by the Local Government Act 2003.
Mr Miles said this report was the last in the annual Treasury Management cycle and reported on the investments made on behalf of the Council. He said
considers the Council’s treasury management investments which are separate to the ones considered by Pensions Committee. These investments are reported to the Audit Committee for them to comment upon the investments, ensuring management arrangement is transparent and in the interest of the Council.
Mr Miles stated interest rates had been a low level and a limited amount of interest had been earnt on returns. However the hope was to secure more income from the investments made. He said the Council was looking to increase the long-term investments and was in dialogue with Fund Managers as detailed at 3.9 of the report. Many investment opportunities such as property, bonds and shares are relatively expensive at present, but they give scope to earn higher returns so the Council was working with its external advisors to use external fund managers to access these investments.
Members of the Committee made the following comments and asked questions in relation to the report.
· In relation to Page 153, Table 3 – Bank LOBO – Is the Council part of the legal action being taken by other local authorities?
· What are the risks for the Council, in terms of Treasury Management?
· Has the risk of Brexit been factored in future projections and investments?
· Table 3, page 153 – the Public Works Loan Board – the interest rate.is high. Why is this?
· Is our risk appetite governed by statute?
· Point 8 – page 160 states there are no sustainable actions for a greener environment. However is the council investing in greener products and how long is it likely to take to ensure we make socially responsible investments?
Members of the Committee AGREED to:
1. Note the contents of the treasury management activities and performance against targets for the year ending 31st March 2018;
2. Note the Council’s investments as set out in Appendix 1. The balance outstanding as at 31st March 2018 was £464.82m which includes £24m, pension fund cash awaiting investment and
3. Note the new investment funds as set out in section 3.9 of the report.