Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To consider the Annual Treasury Management Review 2018/2019.

RESOLVED:  That the Annual Treasury Management Review 2018/19 be noted.

REASON FOR DECISION:  To provide an opportunity for the Committee to comment as appropriate on the Annual Treasury Management Review 2018/19.

Audio Recording – Start of Item – 1 Hour, 13 Minutes

The Service Director – Resources presented the report in respect of the Annual Treasury Management Review 2018/19, and advised that the report was for consideration prior to presentation to Cabinet.

The Service Director – Resources provided the Committee with a brief background explanation, and drew the Members attention to the reports Executive Summary which informed that the Council had generated slightly less than the Working Budget as at the end of the year, but had in fact, achieved an improved return over the year as a whole, compared with the original budget.  He confirmed that the Council had complied with all legislative and regulatory rules.

The Members attention was drawn to the fully detailed Annual Treasury Management Review of the report, stating questions would be welcomed.

In response to Councillor Sam Collins concerns of the volatility and unpredictability of the current “Brexit” climate who asked a question about the Investment Portfolio, The Service Director – Resources explained that the Council were protected by ensuring that there was good diversification on investment.  The Treasury Strategy that was set for 2018/19 did not now allow for investment in any foreign banks.   Ensured that Building Societies had assets to back up investment. 

In response to questions asked by Councillor Sam North, The Service Director – Resources responded as follows:

·         Whilst 9 million pounds was being invested in local authorities, no local authorities invested in NHDC as this Council did not borrow money.

·         Investment had been placed with Slough Borough Council and Lancashire County Council as they both required cash to either fund their capital programme or assist with their cash flow. The money was provided for a set period of time and would be returned with interest.  The money was not an  investment in their Councils, it was an investment that was placed with them.

In answer to Councillor Kay Tarts query, The Service Director – Resources confirmed that the £32.4 million as at 31 March 2019 was an accumulation of all the cash that the Council held.  He also confirmed that the average daily balance of investment with balance variances highlighted within the report was perfectly normal.

In response to Councillor Sam North’s query in respect to how quickly investment could be liquefied, The Service Director – Resources referred the Members to the Chart on page 125 of the Report – Maturity Profile of Investment.

RESOLVED: 

(1)        That the Committee review the Risk Profile of the Diversity of Investments; and

(2)        That the Annual Treasury Management Review 2018/19 be noted.

REASON FOR DECISION:  To provide an opportunity for the Committee to comment as appropriate on the Annual Treasury Management Review 2018/19.