Issue - items at meetings - Treasury Management Policy Statement (incorporating Annual Investment Strategy) 2011/12 - Mid year review

Report of the Director of Finance (copy attached).

2.1       That Cabinet endorses the action taken during the half-year to meet the Treasury management policy statement and associated treasury management practices and the Annual investment strategy.

2.2       That Cabinet notes the maximum indicator for risk agreed at 0.05% has not been exceeded.

2.3       That Cabinet notes the authorised limit and operational boundary set by the Council have not been exceeded.

116.1          The Cabinet considered a report of the Director of Finance concerning action taken during the period April to September 2011 to meet the Treasury Management Policy Statement 2011/12 (TMPS) and the Treasury Management Practices (including the schedules) for the year commencing 1 April 2011and the Annual Investment Strategy 2010/11.

116.2          Councillor Mitchell congratulated the officers for the continuing positive position with regard to treasury management.

116.3          In response to a question from Councillor Mitchell, the Head of Strategic Finance & Procurement explained that two changes to investment limits had been made as the credit ratings of the financial institutions in question had been reduced; as a result the council had reduce both the length and amount of investment.

116.4          In response to questions from Councillor G Theobald, the Director of Finance advised that it was difficult to predict interest rates; the council used a range of forecasts from institutions and followed the CIPFA guidelines. She confirmed that the Targeted Budget Management reporting schedule for 2011-12 provided for five reports instead of the usual four and that the council only invested in institutions detailed in the Annual Investment Strategy and approved by full Council.

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

(1)         That Cabinet endorses the action taken during the half-year to meet the Treasury management policy statement and associated treasury management practices and the Annual investment strategy.

(2)         That Cabinet notes the maximum indicator for risk agreed at 0.05% has not been exceeded.

(3)         That Cabinet notes the authorised limit and operational boundary set by the Council have not been exceeded.