Issue - meetings

This report summarises the council’s treasury management activity during 2014/15, as required to ensure compliance with CIPFA’s Code of Practice for Treasury Management. The report also covers the council’s Prudential Indicators for 2014/15, in accordance with the requirements of the CIPFA Prudential Code for Capital Finance in Local Authorities.

Declarations of interest:

None

Witnesses:

Phil Triggs, Strategic Manager – Pension Fund and Treasury

Key points raised during the discussion:

1.    The Strategic Manager – Pension Fund and Treasury introduced the report, explaining the treatment of funds held on behalf of schools and the Office of the Police and Crime Commissioner for Surrey.

2.    In response to a question about the long term borrowing maturity profile, the Strategic Manager – Pension Fund and Treasury confirmed that there was the discretion to reschedule debt with the Public Works Loan Board.  The Chairman supported the approach, stating that forward borrowing is a key tool in the treasury toolbox.

3.    The committee was informed that a tendering process was underway for the Treasury Management Advisor.  The company that wins the tender will provide training to the committee later in the year.

4.    The committee discussed the risk that the treasury management strategy is too conservative.  The Strategic Manager – Pension Fund and Treasury informed the committee that over the past twelve months there has been a change in the appetite for risk among treasury managers.  This would be considered when drafting the Treasury Management Strategy for 2016/17.

5.    It confirmed that borrowing cannot be used to cover any shortfall from cuts to budgets.  Local authorities can only borrow for long-term capital financing and to cover short-term cash-flow requirements. 

Action/Further information to note:

None.

RESOLVED:

That the Committee:

      i.        NOTES the content of the Treasury Management Annual Report for 2014/15; and

     ii.        ADOPTS the revised Treasury Management Risk Register.

Committee next steps:

None.

The committee adjourned from 11.35am to 11.50am for a short break.