Agenda Item No. 13(b)










Cabinet were presented with the annual review report on Treasury Management 2013/14.


In March, 2012 the Council adopted the 2011 edition of the CIPFA Treasury Management in the Public Services: Code of Practice, which required the Council to approve a treasury management strategy before the start of each financial year, a mid year report, and an annual report after the end of each financial year. 


The report covered:

  • the economy / interest rates in 2013/14;
  • the strategy for  2013/14;
  • the borrowing outturn for 2013/14;
  • investment outturn for 2013/14;
  • compliance with treasury limits and Prudential Indicators;

The Section 151 Officer continued to adopt a cautious approach with respect to Treasury Management operations. The Council's primary objectives for the management of its investments were to give priority to the security and liquidity of its funds before seeking the best rate of return. That being the case, the Authority continued to place the majority of its funds with the 'Debt Management Account Deposit Facility' (DMADF) as these deposits were guaranteed by the British Government, although the interest rate was lower than some commercial banks.


Funds not placed in the DMADF were placed with other Local Authorities. These investments attracted a slightly more favorable rate of return but still gave priority to the security of funds invested.


The Council's primary objective for the management of its debt was to ensure its long term affordability. The majority of its loans had therefore been borrowed from the Public Works Loan Board at long term fixed rates of interest. In 2013/14 the Council continued to finance its capital expenditure from internal resources rather than borrow externally. The potential reduction of the Councils investments balances at times of elevated credit risk was considered the most prudent option available to the Authority at that time.


Council approved the Treasury Management Strategy for 2013/14 at its meeting on 25 February, 2013. The Section 151 Officer advised that all treasury management activity undertaken during the financial year complied with the approved strategy, the CIPFA Code of Practice, and the relevant legislative provisions.


This was a matter for Council decision.


RESOLVED – T H A T the annual report on Treasury Management 2013/14 be accepted and that the report be referred to Council for approval.


Reason for decision


To accept and refer the report to Council.


[View Cabinet Report]