Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Councillor Lawrenson, Babergh Chair of the Joint Audit and Standards Committee, introduced the Committee’s recommendation to note the Mid Year position.
The Assistant Director – Corporate Resources answered questions from Members as follows:-
Local Context (Page 11)
The table on page 11 shows the total borrowing requirements – it is not a balance sheet as would appear in the accounts.
The main difference between the figures shown for the two Councils as Working Capital relates to the difference in the amounts borrowed.
Combined Balance Sheet (Page 93)
Babergh has more assets and fewer liabilities in a straight comparison.
Other Investment Activity (Page 17)
Performance of Funding Circle – FC hasn’t delivered as hoped, but has still produced a better return than if investments had been made at Basic Rate.
No new investments will be made in FC and as repayments come in from existing investments, that money will instead be invested elsewhere. She confirmed that the position will continue to be reported to Members.
Borehamgate purchase is not shown as it is not a current Treasury Management requirement for this type of transaction but might have to be in future following the current consultation on Treasury Management Strategy.
Pooled Fund Investments
The decline in the value of the amount invested in CCLA relates to fluctuating property values but this is a longer-term investment, the purpose of which was to generate income for the Council.
Reference to Babergh exceeding its daily bank account limit with Lloyds by £120k was due to the timing of income received and related to too much money, not too little.
It is a requirement of the Code of Practice on Treasury Management that the full Council notes the Mid Year position.
That it be noted that Treasury Management activity for the first six months of 2017/18 was in accordance with the approved Treasury Management Strategy, and that, except for one occasion when Babergh District Council exceeded its daily ban account limit with Lloyds by £120k for one day, as mentioned in Appendix D, paragraph 1.1 of Paper JAC/17/10, both Councils have complied with all Treasury Management Indicators for this period.
Publication date: 19/12/2019
Date of decision: 21/11/2017
Decided at meeting: 21/11/2017 - Babergh Council