Agenda item

In presenting the report, the Interim Financial Services Manager (s151 Officer) reminded the Committee that the Council had formally adopted the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management (2009) and remained fully compliant with its requirements.

It was explained that the Annual Treasury Outturn Report looked backwards at 2018/2019 and covered:

·        The 2018/2019 Treasury Outturn.

·        Compliance with Treasury Limits.

·        Outturn Summary.

Members were informed that the additional supporting information was also attached to the report:

·        Appendix 1 – Investments as at 31 March 2019.

·        Appendix 2 – Borrowing as at 31 March 2019.

·        Appendix 3 – Prudential Indicators.

It was noted that the Council’s Treasury Policy Statement 2018/2019 and Annual Treasury Strategy Statement 2018/2019 were approved by Council on the 12 April 2018, amendments approved by Cabinet on the 21 August 2018.

The Interim Financial Services Manager (s151 Officer) responded to questions and comments, a summary of which is set out below.

In response to a question on borrowing, the Interim Financial Services Manager (s151 Officer)  explained that the borough council both borrowed from and loaned money to other councils.

Following questions and comments on the impact from Brexit, particularly at a local level, the Interim Financial Services Manager (s151 Officer) explained that it was unlikely that there would be an impact on the borough council at a local level and added that the Council’s Treasury Management Advisers did not have an answer on the likely impact of Brexit due to all the unknowns around it.

In response to questions relating to the Capital Financing Requirement (CFR), the Interim Financial Services Manager (s151 Officer) explained that the Council did not have a set upper limit, but that borrowing would be controlled on the basis of affordability.  She also undertook to amend the figures set out in the table at paragraph 5.11 on page 13 and the same table in Appendix 3 on page 26.  An email would be sent to the Committee detailing the correct figures.

Following questions on European funding, the Interim Financial Services Manager (s151 Officer) explained that the Borough Council did not receive European funding.

In response to a question on the amount of growth the Council received from business rates, the Interim Financial Services Manager (s151 Officer) advised that she did not have the information to hand, but would email a response to the Committee.

The Chair referred to para 9.4 and the average rate of return of 0.70% and no comparative figures being available, etc. The Interim Financial Services Manager (s151 Officer) referred the Committee to Appendix 1 which gave more detail about the Council’s investments as at 31 March 2019, but acknowledged that it didn’t have the comparatives for the previous year.  The Chair added that  it was difficult to reconcile the figures without knowing the average rate of return for the previous year.  The Interim Financial Services Manager (s151 Officer) explained that the details would be available in the 2018 Outturn report, but did not have them to hand.  The Chair suggested that comparative figures be included in future reports which was agreed by the Interim Financial Services Manager (s151 Officer).  The Interim Financial Services Manager (s151 Officer) also undertook to email the average rate of return of the previous year to the Committee.

The Chair referred to Appendix 2 of the report and commented that it would be useful to include details on the types of loan, for example, was it fixed rate, variable, Lender Option Borrower Option (LOBO), etc.  The Interim Financial Services Manager (s151 Officer) undertook to include the requested details in future reports.

The Chair thanked the Interim Financial Services Manager (s151 Officer) for attending and presenting the report.

RESOLVED:  The Audit Committee noted the Annual Treasury Outturn position for 2018/2019.