Issue - items at meetings - Treasury Management Policy Statement (incorporating the Annual Investment Strategy) 2008/09 end of year reviews)

Report of the Interim Director of Finance & Resources (copy attached).

That Cabinet:

(a)       endorse the action taken during the second half year to meet the treasury management policy statement and practices (including the annual investment strategy);

(b)       note the authorised limit and operational boundary set by the Council have not been exceeded; and

(c)       note that all Members will be offered training on the risks involved in borrowing and investments on an annual basis.

54.1       The Cabinet considered a report of the Interim Director of Finance & Resources advising Members of the action taken during the second half of the financial year 2008/2009 on the Treasury Management Policy Statement, including the investment strategy (for copy see minute book).

54.2       In response to questions from Councillor Randall, the Interim Director of Finance & Resources made the following comments:

§       With regard to socially responsible investments, institutions are surveyed every three years about their own policies and outcomes, with the next one due to take place in June 2010.

§       With regard to spreading investments, the council took a cautious approach by looking into individual institutions and spreading risk as much as possible. This had become more difficult as institutions had become more vulnerable, so the council had taken the decision to repay debt to reduce risk.

§       With regard to the Communities & Local Government recommendation to share information on treasury management, once it became evident how this would work, the council was likely to be supportive of this approach.

54.3       RESOLVED - That, having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendations:

(1)        That the action taken during the second half year to meet the treasury management policy statement and practices (including the annual investment strategy) be endorsed.

(2)       That it be noted that the authorised limit and operational boundary set by the Council had not been exceeded.

(3)       That all Members will be offered training on the risks involved in borrowing and investments on an annual basis.