Babergh and Mid Suffolk District Councils
Democratic Services

Mobile menu icon

Issue - meetings

Meeting: 23/11/2017 - Mid Suffolk Council (Item 96)

96 JAC/17/10 Mid Year Report on Treasury Management 2017/18 pdf icon PDF 281 KB

At its meeting on 13 November 2017, the Joint Audit and Standards Committee considered Paper JAC/17/10, the Mid Year Report on Treasury Management for 2017/18.

The deliberations of the Committee will be reported at the Council meeting together with any amendments requested by Members. 

Note: It is a requirement of the Code of Practice on Treasury Management that full Council notes the Mid Year position.

RECOMMENDED TO COUNCIL

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 bank 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.

 

Minutes:

Councillor Morley, Mid Suffolk 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:-

 

Review of Funding Circle performance (Page 27 – paras 2.4 and 2.10)

 

Review concluded – No new investments to be made and as repayments come in from existing investments that money will instead be invested elsewhere. 

 

Regulatory updates – qualifications/experience of person authorised to make investment decisions, possible delegation of technical detail (Pages 19-20 – paras 4.1.1, 4.1.2 and 4.2.3)

 

Further guidance and the outcome of the current consultation awaited.

 

Current value of CCLA (long term investment) – (Page 26)

 

Impact of current performance under consideration.

 

Current value of CCLA (long term investment) – (Page 26)

Impact of current performance under consideration, but always anticipated to be a long term investment, so confident that the market value will increase again before the Council needs to redeem the investment.

 

RESOLUTION

 

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 bank 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.

 

Note:  It is a requirement of the Code of Practice on Treasury Management that the full Council notes the Mid Year position.

 


Meeting: 23/11/2017 - Mid Suffolk Council (Item 96)

Recommendation and Report from Joint Audit and Standards Committee


Meeting: 21/11/2017 - Babergh Council (Item 51)

51 JAC/17/10 MID YEAR REPORT ON TREASURY MANAGEMENT 2017/18 pdf icon PDF 281 KB

At its meeting on 13 November 2017, the Joint Audit and Standards Committee considered Paper JAC/17/10, the Mid Year Report on Treasury Management for 2017/18.

The deliberations of the Committee will be reported at the Council meeting together with any amendments requested by Members. 

Note: It is a requirement of the Code of Practice on Treasury Management that full Council notes the Mid Year position.

RECOMMENDED TO COUNCIL

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 bank 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.

 

Minutes:

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.

 

Recommendation

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.

 

Note:

It is a requirement of the Code of Practice on Treasury Management that the full Council notes the Mid Year position.

 

RESOLVED

 

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.

 

 


Meeting: 21/11/2017 - Babergh Council (Item 51)

RECOMMENDATION AND REPORT FROM JOINT AUDIT AND STANDARDS COMMITTEE


Meeting: 13/11/2017 - Joint Audit and Standards Committee (Item 26)

26 JAC/17/10 MID YEAR REPORT ON TREASURY MANAGEMENT 2017/18 pdf icon PDF 281 KB

Report by the Cabinet Members for Finance attached.