Agenda item

The Head of Financial Services submitted a report to seek the Panel’s views regarding the Treasury Management Framework proposals for 2010/11, prior to them being considered by Council.

The attachments to the report provided information on recent changes to the Code of Practice for treasury management following the collapse of the Icelandic banking system and the difficulties experienced in the global banking system generally.

The Principal Accountant advised that it was a requirement of the CIPFA Code of Practice on Treasury Management that a Strategy outlining the expected treasury activity on the forthcoming 3 years was adopted and reviewed at least annually.  The forecasts and activities to be covered by the Strategy were set out in the report.  The Treasury Policy Statement had been amended slightly to reflect the updated Code’s requirements.

It was reported that, in line with the updated Treasury Management Code and Investment Guidance, there were additional elements to be introduced to help manage risk.  These included the explicit nomination of Budget and Performance Panel as the scrutiny committee for Treasury Management and an increased frequency of reporting to Members, including a formal mid-year review.

Officers had liaised with Butlers, the Council’s Treasury Advisors in developing the proposed Strategies and they had also consulted KPMG LLP as the Council’s external auditors.  Additional audit work had been undertaken regarding the Council’s treasury management arrangements, which had led to a number of recommendations, which Officers had considered and responded to accordingly. 

One of the recommendations was that all staff involved in undertaking treasury management activities and elected Members with responsibility for the stewardship of public money and scrutiny of the treasury management function should undertake ongoing training to ensure they could effectively discharge their responsibilities. 

It was reported that frequent Member training would, therefore, be provided in future and consideration of whether such training should be mandatory would be referred to the Council’s Business Committee as part of the Member Development Plan.

Resolved:

(1)        That the report be noted.

(2)        That the relevant Officers be asked to consider Invest to Save schemes that would provide a greater rate of return than Council investments and report back to the Panel.