Agenda item

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In presenting the report, the Financial Services Manager explained the purpose of the report and reminded the Committee that the Council had formally adopted the Chartered Institute of Public Finance Accountancy’s Code of Practice on Treasury Manager (2017) and remained fully compliant with its requirements.

The Financial Services Manager explained that the Annual Treasury Outturn Report looked backwards at 2022/2023 and covered:

•           The 2022/2023 Treasury Outturn.

•           Compliance with Treasury Limits.

•           Outturn Summary.

The Financial Services Manager drew the Committee’s attention to the following sections of the report:

•           2.1:  Executive Summary

•           4.2:  Capital Expenditure

•           5.6:  Council’s Capital Spend – Revenue.

•           5:7:  Capital Finance Requirement.

•           5.8:  The Authorised Limit.

•           6:4:  Investments.

The Committee was informed that the following additional supporting information was attached to the report:

•           Appendix 1 – Economic Outlook.

•           Appendix 2 – Investments as at 31 March 2023.

•           Appendix 3 – Borrowing as at 31 March 2023.

•           Appendix 4 – Prudential Indicators.

The Financial Services Manager advised that the Council’s Treasury Policy Statement 2023/2024 and annual Treasury Strategy Statement 2023/2024 were approved by Council on the 23 February 2023.

The Chair thanked the Financial Services Manager for the report and invited questions and comments from the Committee, a summary of which is set out below.

In response to questions from the Chair relating to the Capital Programme, the Financial Services Manager explained that there were elements of the Capital Programme which were not funded by revenue.  The Committee was reminded that the Capital Programme was approved by Council in February of each year.

Councillor Dark commented that 2022/2023 was a difficult year nationally and complimented the work undertaken by officers to deliver the services and to provide reassurance to Councillors.  Councillor Dark added that this was a lengthy report and drew the Committee’s attention to the following sections of the report:

•           5.8:  The Authorised Limit.

•           6:3:  As at 31 March 2023 the Council did not have temporary loans.

•           7.4:  During 2022/2023, the Council maintained an under-borrowed position.

•           8:1:  No borrowing was undertaken during the year.

•           8.2:  The Council had not borrowed more than, or in advance of its needs, purely in order to profit from the investment of the extra sums borrowed.

•           9.2:  The investment activity during the year conformed to the approved strategy, and the Council had no liquidity difficulties.

•           Page 42:  The Council had not borrowed any money to support the revenue budget.

Councillor Dark referred to investments and reminded the Committee that £3m had been allocated in the budget for capital projects to generate revenue and also to improve the Council’s revenue position.

In response to questions from Councillor Dark on the Council’s investments being sustainable and making a good return, the Assistant Director Resources explained that £3m had been set aside for earmarked reserves which were designed for investment.  The Committee was informed that a scheme to identify returns, efficiencies and income generated which the new Administration would decide what the £3m would be used for.  The Assistant Director, Resources explained that the Council had a Treasury Management Strategy agreed at Council on annual basis.

It was explained that the £3m inherited from the previous Administration was within earmarked reserves and provided clarification on the two types of reserves – General Fund Reserve and Earmarked Reserve.

The Chair invited Councillor Morley, Portfolio Holder Finance to address the Committee.

Councillor Morley explained that the £3m would sit in the Earmarked Reserve to see what transpired in the future and invited Councillors who had any ideas on what the £3m could be spent on to contact him.

Councillor de Winton asked where the council was in  projecting Environmental, Social and Governance (ESG) measures.  In response, the Assistant Director, Resources explained that this was a hot topic and that currently there was no legislation to comply with but that the Council was already taking forward some measures and anticipated that this would evolve over the coming financial year.

Following questions from Councillor Bearshaw on Appendix 2 – Investments and start and end dates not stated, the Financial Services Manager explained that the £15m available for investment did not indicate start and end dates as these were  instant access accounts for the council to use to support immediate cashflow requirements if required.  The information  was a snapshot as at 31 March 2023.

The Chair, Councillor Ryves invited Councillor Morley, Portfolio Holder for Finance to address the Committee.

Councillor de Whalley referred to Appendix 2 and asked for confirmation of the end date which was incorrectly typed in the table.  Following the meeting the Financial Services Manager confirmed that the end date for the investment with SMBC Bank International should read 16/06/23.

Councillor Morley referred to ESG projects and explained that interest had been expressed at the Shareholder Committee and added that the current Administration wished to be open and transparent and it was up to the Opposition to tell the Administration if they felt it was going in the wrong direction.

RESOLVED:  The Audit Committee noted the annual treasury outturn position for 2022/2023.