APPENDIX C

TREASURY MANAGEMENT FRAMEWORK DOCUMENTS AND RESPONSIBILITIES

For Consideration by Cabinet 15 February 2011

DOCUMENT

RESPONSIBILITY

CODE of PRACTICE

To be adopted by Council (as updated November 2009).

POLICY STATEMENT

The Code of Practice recommends a specific form of words to be used, to set out the Council's objectives within the Policy Statement for its Treasury Management activities.  It is the responsibility of Council to approve this document, and then note it each year thereafter if unchanged.  This reflects the revised code November 2009.

TREASURY MANAGEMENT STRATEGY

The Strategy document breaks down the Policy Statement into detailed activities and sets out the objectives and expected market forecasts for the coming year. This also contains all the elements of an Investment Strategy as set out in the DCLG guidance; it is the responsibility of Council to approve this document, following referral from Cabinet.

Changed responsibility to Council

TREASURY MANAGEMENT INDICATORS

These are included within the Strategy Statement as part of the framework within which treasury activities will be undertaken. It is the responsibility of Council to approve these limits.

INVESTMENT STRATEGY

The Investment Strategy is included within the Treasury Management Strategy. It states which types of investments the Council may use for the prudent management of its treasury balances during the financial year. Under existing guidance the Secretary of State recommends that the Strategy should be approved by Council.

TREASURY MANAGEMENT PRACTICES

These are documents that set out the procedures that are in place for the Treasury Management function within the Council. The main principles were approved by Cabinet following initial adoption of the Code of Practice; they include:

TMP 1:

Risk management

TMP 7:

Budgeting, accounting & audit

TMP 2:

Performance measurement

TMP 8:

Cash & cash flow management

TMP 3:

Decision-making and analysis

TMP 9:

Money laundering

TMP 4:

Approved instruments, methods & techniques

TMP 10:

Staff training & qualifications

TMP 5:

Organisation, clarity and segregation of responsibilities, and dealing arrangememts.

TMP 11:

Use of external service providers

TMP 6:

Reporting requirements & management information requirements

TMP 12:

Corporate governance

Any changes to the above principles will require Cabinet approval.  It is the Head of Financial Service's responsibility to maintain detailed working documents and to ensure their compliance with the main principles.  It is highlighted that for 2011/12, quarterly treasury management reports will continue to be included within Corporate Financial Monitoring and reported through to Members.

Assume that Cabinet can still approve as they have been delegated responsibility for implementation under fin regs C4.