53 JAC/18/3 JOINT ANNUAL TREASURY MANAGEMENT REPORT - 2017/18 PDF 738 KB
At its meeting on 30 July 2018, the Joint Audit and Standards Committee considered Paper JAC/18/3 – Joint Annual Treasury Management Report 2017/18.
The recommendations set out in the report were accepted.
It was RECOMMENDED TO COUNCIL
(1) That the Treasury Management activity for the year 2017/18 be noted. Further, that it be noted that performance was in line with the Prudential Indicators set for 2017/18.
(2) That it be noted that Mid Suffolk District Council Treasury Management activity for 2017/18 was in accordance with the approved Treasury Management Strategy, and that, except for one occasion when the Council exceeded its daily bank account limit with Lloyds by £79k, as mentioned in Paragraph 4.7 of Paper JAC/18/3, the Council has complied with all the Treasury Management Indicators for this period.
Note – It is a requirement of the legislation that the Annual Treasury Management Report is submitted to the Full Council for noting.
Minutes:
Councillor Muller introduced the report and MOVED the recommendations in the report which Councillor Morley seconded.
53.2 In his introduction Councillor Muller informed Council that the report had
been presented and discussed at the Joint Audit and Standards Committee meeting on 30 July 2018. There were no changes to the report as a result of that meeting. The report covered the year to 31 March 2018 and provided details of the performance and effects of decisions taken throughout the year.
53.3 Councillor Muller went on to say that the report also demonstrated that the Councils performance was in line with the Prudential indicators set for 2017/18 and was in accordance with the approved Treasury Management Strategy. Apart from one occasion when the council exceeded its daily bank account limit with Lloyds by £79,000 as mentioned in paragraph 4.7 of report JAC18/3. the Council had complied with all treasury management indicators for that period.
53.4 Councillor Otton asked a question relating to the Funding Circle and asked whether the Council should feel concerned or optimistic about their investment?
53.5 In response the Section 151 Officer stated that the Council had taken a decision in the last financial year not to put any more funding into the Funding Circle. As illustrated in the Treasury Management six monthly report, the Council was seeing some failures and some losses and were not achieving the rate of return, Funding Circle had also changed the basis of which you could invest with them, which would mean that the Council would have to take significantly more risk than it actually wanted to. The position that the Council was currently in was that it was letting the existing loans run their life course and the Council would not be putting any further money in, so over a period of time would be withdrawing from the Funding Circle.
53.6 Councillor Otton sought assurance that the Council was not put at any risk and it would be monitoring performance.
53.7 In response the Section 151 Officer stated that the Council could not actually do anything about the loans that had already been made as those loans had been made to external companies, so at this point in time the Council were just letting their loans run until they ended.
53.8 Councillor Hadingham raised concerns about the rise in Council debt of £40m and asked if the operational boundary would increase from its current level of £140m.
53.9 In response the Section 151 Officer informed Council that there were two reasons for the increase, firstly, CIFCO the capital investment company, the Council was putting £25m into the Company to purchase commercial properties and also with the planned figures that the Council had, it was starting to build in some assumptions around Gateway 14 and the investment that was needed to be made there. The operational boundary was reviewed each year in line with the actual borrowing increasing so yes.
53.10 Councillor Wilshaw queried why the actual debt was £40m different from ... view the full minutes text for item 53
8 JAC/18/3 JOINT ANNUAL TREASURY MANAGEMENT REPORT - 2017/18 PDF 738 KB
Report by the Assistant Director – Corporate Resources attached.