Agenda Item No.










Cabinet was presented with the annual review report on Treasury Management 2014/15.


In March 2012 the Council adopted the 2011 edition of the Chartered Institute of Public Finance and Accountancy 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.


This annual treasury report had been prepared as required and covered:

  • the economy / interest rates in 2014/15;
  • the strategy for 2014/15;
  • the borrowing outturn for 2014/15;
  • investment outturn for 2014/15;
  • 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. This 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 favourable 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 2014/15 the Council continued to finance the majority of its capital expenditure from internal resources. The potential reduction of the Council's investments balances at times of elevated credit risk was considered the most prudent option available to the Authority at this time.


During 2014-2015 the Authority did borrow externally from the Public Works Loan Board (PWLB) as a special project rate was available under the 21st Century Schools Initiative.


Council approved the Treasury Management Strategy for 2014/15 at its meeting on the 5 March, 2014, minute no. 881 referred.


The Section 151 Officer advised that all treasury management activity undertaken during the financial year complied with the amended approved strategy, the CIPFA Code of Practice, and the relevant legislative provisions.


This was a matter for Executive and Council decision


RESOLVED – T H A T the annual report on Treasury Management 2014/15 be approved and referred to Council for approval.


Reason for decision


To accept and refer the report to Council.


[Attached as Appendix - Report to Cabinet - 27 July 2015]