Agenda Item No. 11(a)
THE VALE OF GLAMORGAN COUNCIL
COUNCIL: 26TH SEPTEMBER, 2012
REFERENCE FROM CABINET: 9TH JULY, 2012
"C1762 TREASURY MANAGEMENT (L) (SCRUTINY - CORPORATE RESOURCES) -
The annual Treasury Report had been prepared as required and covered
· the economy / interest rates in 2011/12
· the strategy for 2011/12
· the borrowing outturn for 2011/12
· investment outturn for 2011/12
· Prudential Indicators.
The report noted that the Director of Finance, ICT and Property continued to adopt a cautious approach in respect of Treasury Management operations with the Council's primary objectives for the management of its investments being given priority for the security and liquidity of its funds before seeking the best rate of return. The authority continued to place the majority with the Debt Management Account Deposit Facility (DMADF) and these deposits were guaranteed by the British Government although the interest rate was lower than commercial banks. Funds not placed in the DMADF were placed with Barclays Bank plc in a Fixed Interest Bearing Current Account. This investment attracted a slightly more favourable rate of return and had the benefit of instant access to funds deposited but security being compromised to the very minimum.
The Council's primary objective for the management of its debt was to ensure its long term affordability. The majority of the Council's loan being borrowed from the Public Works Loan Board at long term fixed rates of interest.
The Council had approved the Treasury Management Strategy for 2011/12 at its meeting on 28th February, 2011 and the Director of Finance, ICT and Property advised that all treasury management activity undertaken during the financial year complied with the approved strategy, the CIPFA Code of Practice and the relative legislative provisions.
The overall return on investments for 2011/12 was reported as 0.26%.
This was a matter for decision by Council.
Having considered the report and the Prudential Indicators attached at Appendix 1 it was
RESOLVED - T H A T the report on Treasury Management 2011/12 be accepted and recommended to Council for approval.
Reason for decision
To confirm Cabinet's acceptance of the report and refer the same to Council for approval."