Chair of Joint Audit and Standards Committee
At its meeting on 26 July 2021, Joint Audit and Standards Committee considered Paper JAC/21/2, the Annual Treasury Management Report 2020/21. Paper BC/21/14 now includes all the relevant updated information following consideration by the Joint Audit and Standards Committee, together with the necessary recommendations.
Minutes:
Councillor Hurren introduced the report and informed Councillors that the Treasury Management 2020/21 outturn report was discussed at Joint Audit and Standards Committee on 26th July 2021.
The report provided details of investment performance, effects of decisions taken during the period and confirmed compliance with the Council’s Treasury Management Policy.
The Bank of England held the Bank Rate at 0.1% throughout the year but extended its Quantitative Easing programme by £150 billion to £895 billion in November 2020.
The UK unemployment rate was 5.0% in the three months to January 2021. Unemployment is expected to increase as the various Government job support schemes come to an end.
Inflation has remained low over the 12-month period. Latest figures showed the annual headline rate of UK Consumer Price Inflation (CPI) fell to 0.4% year on year in February, below expectations (0.8%) and still well below the Bank of England’s 2% target.
Councillor Hurren then informed Council that specifically for Babergh
2. The Council operated within the daily bank account limits.
3. Short-term debt has increased by £15.5m.
4. The Council lent a further £19.3m to CIFCO Ltd.
5. All investment activities undertaken were in accordance with the
approved counterparty list.
6. The Councils’ investment activities including average returns can be found in Appendix C of the report.
7. The investment in Funding Circle has reduced by £48k as unallocated funds have been reclaimed and existing loans repaid, leaving the balance on 31st March as £166k.
Councillor Hurren then MOVED the recommendations in the report which Councillor Plumb SECONDED.
Councillor Busby queried why the General Fund borrowing had increased from £50.7m to £71.3m in the previous year?
In response, the Section 151 Officer confirmed that this was due to the finalisation of the CIFCO purchases in that year.
Councillor Ward asked if the net borrowing and total borrowing figures could be separated into the General Fund and the HRA fund and reflected in the report in the same way as the capital financing requirements was.
The Section 151 Officer confirmed that this was possible and would be implemented going forward.
It was RESOLVED: -
1.1 That the Treasury Management activity for the year 2020/21 be noted. Further, that it be noted that performance was in line with the Prudential Indicators set for 2020/21.
That it be noted that both Councils treasury management activity for 2020/21 was in accordance with the approved Treasury Management Strategy, and that the Councils have complied with all the Treasury Management Indicators for this period.
Supporting documents: