Issue - meetings

Report number:     CAB/WS/22/006

Portfolio holder: Councillor Sarah Broughton

Chair of the Committee: Councillor Ian Houlder

Lead officer: Rachael Mann

Recommended to Council (22 February 2022):

1.       The Treasury Management Strategy Statement 2022 to 2023 as set out in Appendix 1 to Report number: FRS/WS/22/002, be approved; and

2.       The Treasury Management Code of Practice, as set out in Appendix 2 to Report number: FRS/WS/22/002, be approved, subject to an amendment within the section of the Code of Practice entitled ‘Use of External Brokers / Advisors / Fund Managers’, with the removal of the word ‘will’, to be replaced with the word ‘may’, to ensure that the Council has the flexibility on the use of services of other organisations.       

The Cabinet considered this report, which was recommending to Council, the approval of the Financial Resilience - Strategy Statement 2022 to 2023 and Treasury Management Code of Practice.

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Cabinet, including that the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Treasury Management Code of Practice required that, prior to the start of the financial year the Council should formally approve a Treasury Management Policy Statement and Investment Strategy, setting out the Council’s treasury management policy and strategy for the forthcoming year.

The Treasury Management Strategy Statement 2022 to 2023 was attached as Appendix 1 to Report number: FRS/WS/22/002, and the Treasury Management Code of Practice attached as Appendix 2.

The report also included additional supporting information on treasury advisors; borrowing strategy; investment strategy counterparty ratings and interest rate projections.

On 27 January 2022, the Performance and Audit Scrutiny Committee (PASC) considered the report and asked various questions relating to the setting of net costs, capital and revenue limits and the borrowing strategy, to which responses were provided.  In particular, the Committee discussed the Treasury Management Code of Practice (Appendix 2) and referred to page 24 of the Code and the section which related to ‘Use of External Brokers/Advisors/Fund Managers’.  The Committee expressed some reservations around the wording used within that section, in that the Council ‘will’ employ the services of other organisations to assist it in the field of treasury management.  The Committee recommended that this word be replaced with ‘may’, so that the Council had the flexibility around the use of services of other organisations.

Councillor Broughton thanked Councillor Houlder, Chair of PASC and his Committee for their careful scrutiny of both documents, and together with other members of the Cabinet, supported the approval of the Code of Practice, including the proposed amendment, and approval of the Treasury Management Strategy Statement 2022 to 2023.

Recommended to Council (22 February 2022):

That:

1.       The Treasury Management Strategy Statement 2022 to 2023 as set out in Appendix 1 to Report number: FRS/WS/22/002, be approved.

2.       The Treasury Management Code of Practice, as set out in Appendix 2 to Report number: FRS/WS/22/002, be approved, subject to an amendment within the section of the Code of Practice entitled ‘Use of External Brokers / Advisors / Fund Managers’, with the removal of the word ‘will’, to be replaced with the word ‘may’, to ensure that the Council has the flexibility on the use of services of other organisations.