Content

The Cabinet considered a report
of the Executive Director (Finance and Resources) presenting the
mid-year Treasury Management Report covering the treasury
management activity for the period from April to September 2023 and
compliance with the treasury management strategy for that
period.
 
Resolved:
 
1. That the Treasury Management
Mid-Year Position report for 2023/24, be approved.
 
2. That it be noted that the
Treasury management activities were carried out in accordance with
the CIPFA (The Chartered Institute of Public Finance and
Accountancy) Code of Practice for Treasury Management in the Public
Sector during the period from April to September 2023.
 
3. That it be noted that the
loan and investment portfolios were actively managed to minimise
cost and maximise interest earned, whilst maintaining a low level
of risk.
 
4. That it be noted that
£3.130m of interest and income distributions for all
investments were earned during this six-month period at an average
rate of 4.41%. This is 0.32% lower than the average SONIA rate
(Sterling Overnight Index Average) and 0.39% lower than the average
bank rate. Also, the value of the externally managed funds
decreased by a net of £0.561m due to changes in the unit
price, giving a combined overall return of 3.62%.
 
5. That it be noted that the
level of borrowing from the Public Works Loan Board (PWLB)
(excluding debt relating to services transferred from Essex County
Council on 1st April 1998) remained at £347.3m (Housing
Revenue Account (HRA): £74.2m, General Fund: £273.1m)
during the period from April to September 2023 at an average rate
of 3.46%.
 
6. That it be noted that the
level of financing for ‘invest to save’ schemes
decreased from £8.22m to £8.13m during the period from
April to September 2023.
 
Reasons for
Decisions
 
The CIPFA Code of Practice on
Treasury Management recommends that Local Authorities should submit
reports regularly. The Treasury Management Policy Statement for
2023/24 set out that reports would be submitted to Cabinet
quarterly on the activities of the treasury management
operation.
 
Other Options
 
There are many options
available for the operation of the Treasury Management function,
with varying degrees of risk associated with them. The Treasury
Management Policy aims to effectively control risk to within a
prudent level, whilst providing optimum performance consistent with
that level of risk.
 
 
 
Note: This is an Executive
Function
Not eligible for call-in as the
matter has been the subject of pre-Cabinet scrutiny by the Policy
and Resources Scrutiny Committee.
Cabinet Member: Cllr
Cox