Issue - items at meetings - Treasury Management Policy Statement 2014/15 - End of year Review

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

1)    That Policy & Resources Committee endorses the key actions taken during the second half of 2014/15 to meet the treasury management policy statement and practices (including the investment strategy) as set out in this report.

2)    That Policy & Resources Committee note the reported compliance with the Annual Investment Strategy for the period under review.

3)    That Policy & Resources Committee notes that the approved maximum indicator for investment risk of 0.05% has been adhered to and the authorised limit and operational boundary have not been exceeded.

4)    That Policy & Resources Committee recommend to full Council to approve amendments to the Annual Investment Strategy as set out in paragraphs 3.16 to 3.19 of this report.

23.1       The Committee considered a report of the Interim Executive Director for Finance & Resources in relation to Treasury Management Policy Statement (TMPS) 2014/15 – End of Year Review. The 2014/15 Treasury Management Policy Statement practices and schedules were approved by the Committee on 20 March 2014. The TMPS set out the role of Treasury Management whilst the practices and schedules set out the annual targets and methods by which these targets would be met. The TMPS included the Annual Investment Strategy which set out the key parameters for investing Council cash funds and was adopted at Council on 27 March 2014.

23.2       In response to Councillor Sykes the Interim Executive Director confirmed that the authorised limit was the maximum level of borrowing that could be outstanding at any one time; this limit was set by statute as part of the Local Government Act 2003. It was also confirmed that there were no proposed changes or cuts to the Treasury Management Team.

23.3       In response to Councillor Mac Cafferty it was explained that the investment strategy of was very risk adverse, and used external advisors to ensure it was making sound investments. Investments were typically short to ensure there was a strong recovery of invested money.

23.4       Councillor A. Norman stated she had always been very impressed by the work of the Treasury Team, and she hoped that more could be done to make residents aware of the careful investment of Council funds on their behalf.

23.5       Councillor Hamilton highlighted the low risk of investments and stated he had full confidence in the Treasury Team. Councillor G. Theobald also commended the work of the team.

23.6       The Chair then put the recommendations to the vote.

23.7       RESOLVED:

1)        That Policy & Resources Committee endorses the key actions taken during the second half of 2014/15 to meet the treasury management policy statement and practices (including the investment strategy) as set out in this report.

2)        That Policy & Resources Committee note the reported compliance with the Annual Investment Strategy for the period under review.

3)        That Policy & Resources Committee notes that the approved maximum indicator for investment risk of 0.05% has been adhered to and the authorised limit and operational boundary have not been exceeded.

RESOLVED TO RECOMMEND

4)        That Policy & Resources Committee recommend to full Council to approve amendments to the Annual Investment Strategy as set out in paragraphs 3.16 to 3.19 of this report.