Content

The Cabinet considered a report
of the Executive Director (Finance and Resources) that presented
the Treasury Management Report for Quarter One covering the
treasury management activity for the period from April to June 2023
and compliance with the treasury management strategy for that
period.
 
Resolved:-
 
1. That the Treasury Management
Report for Quarter One 2023/24 be approved.
 
2. That it be noted that
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 June 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
£1.483m of interest and income distributions for all
investments were earned during this three-month period at an
average rate of 4.20%. This is 0.17% under the SONIA rate (Sterling
Overnight Index Average) and 0.24% under the average bank rate.
Also, the value of the externally managed funds decreased by a net
of £0.643m due to changes in the unit price, giving a
combined overall return of 2.38% as set out in Section 8 of the
submitted report.
 
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 (HRA:
£74.2m, GF: £273.1m) during the period from April to
June 2023.
 
6. That it be noted that during
the quarter the level of financing for ‘invest to save’
schemes remained the same at £8.22m.
 
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