Agenda item

(Cabinet Member with Special Responsibility Councillor Bryning)

Report of Head of Financial Services

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Head of Financial Services which set out the 2012/13 Treasury Management framework for Cabinet’s approval and referral on to Council.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report.

The CIPFA Code of Practice on Treasury Management (“the Code”) required that a strategy outlining the expected treasury activity for the forthcoming 3 years be adopted, but that it be reviewed at least annually.  It needed to cover various forecasts and activities.  The proposed Strategy for 2012/13 to 2014/15 was set out at Appendix B to the report. This document contained the necessary details to comply with both the Code and Government investment guidance.  Responsibilities for treasury management were set out at Appendix Cand the updated policy statement was presented at Appendix D to the report.

Cabinet could put forward alternative proposals or amendments to the proposed Strategy in Appendix B to the report, but these would have to be considered in light of legislative, professional and economic factors, and importantly, any alternative views regarding the Council’s risk appetite.  As such, no further options analysis was available at this time.

Furthermore, the Strategy needed to fit with other aspects of Cabinet’s budget proposals, such as investment interest estimates and underlying prudential borrowing assumptions, feeding into Prudential and Treasury Management Indicators. 

The officer preferred option was for Cabinet to approve the framework as attached, for referral on to Council.  This was based on the Council continuing to have a low risk appetite regarding investments.

Councillor Bryning proposed, seconded by Councillor Barry:-

“(1)      That the proposals, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)        That Council be recommended to approve the Treasury Management Framework as reflected in Appendices B to D to the report, and as updated for Cabinet’s final budget proposals.

Officers responsible for effecting the decision:

Head of Financial Services

Reasons for making the decision:

As part of the adoption of the CIPFA Code of Practice on Treasury Management it is a statutory requirement that the authority has a Treasury Management Strategy Statement and Investment Strategy. The decision based on the Council continuing to have a low risk appetite regarding investments, takes into account the requirements of the Code.