Issue - items at meetings - Financial Resilience Report - December 2020

Issue - meetings

Financial Resilience Report - December 2020

Meeting: 09/02/2021 - Cabinet (Item 221)

221 Recommendation of the Performance and Audit Scrutiny Committee: 28 January 2021: Financial Resilience (December 2020) (Report number: CAB/WS/21/006) pdf icon PDF 124 KB

Report number:     CAB/WS/21/006

Portfolio holder: Councillor Sarah Broughton

Lead officer: Rachael Mann

Decision:

Recommended to Council (23 February 2021):

 

That the Financial Resilience Report (December 2020), as contained in Report number: FRS/WS/21/001, be approved.

Minutes:

The Cabinet considered this report, which was recommending to Council, the approval of the Financial Resilience Report for the third quarter of the 2020 to 2021 financial year.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Cabinet, including that the total amount invested at 1 April 2020 was £29,900,000 and at 31 December 2020, £38,900,000.

 

The 2020 to 2021 Annual Treasury Management and Investment Strategy set out the Council’s projections for the current financial year.  The budget for investment income in 2020 to 2021 was £142,141 which was based on a 0.65 percent target interest rate of return on investments.

 

As at the end of December 2020, interest earned during the third quarter of the financial year amounted to £73,250.00 against a profiled budget for the period of £106,605; a budgetary deficit of £33,355.  The budgetary deficit related to continued low interest rates as a result of the Covid-19 pandemic which started in mid-March 2020. 

 

The report also included a summary of the borrowing and capital costs - affordability; borrowing and income – proportionality; borrowing and asset yields; borrowing and temporary loans and other market considerations.

 

As at the end of December 2020 a total of £16.8 million had been borrowed internally to fund agreed business case investments from available cash balances.  This had meant the Council had not had any additional external borrowing over the long-term £4 million loan.

 

 

Recommended to Council (23 February 2021):

 

That the Financial Resilience Report (December 2020), as contained in Report number: FRS/WS/21/001, be approved.


 

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