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The Cabinet considered a report of the Executive
Director (Finance and Resources) presenting the Annual Treasury
Management Report covering the treasury activity for the period
from April 2022 to March 2023.

 

Resolved:

 

1. That the Annual Treasury Management Report for
2022/23 and the outturn Prudential Indicators for 2022/23, be
approved.

 

2. That it be noted that the financing of 2022/23
capital expenditure of £51.822m has been funded in accordance
with the schedule set out in the submitted report.

 

3. That it be noted that Capital Financing and
Treasury Management were carried out in accordance with statutory
requirements, good practice and in compliance with the CIPFA (The
Chartered Institute of Public Finance and Accountancy) Prudential
Code during 2022/23.

 

4. That the following in respect of the return on
investment and borrowing, be noted:

 

• The loan and investment portfolios were
actively managed to minimise cost and maximise interest earned,
whilst maintaining a low level of risk.

 

• £3.773m of interest and income
distributions for all investments were earned during 2022/23 at an
average rate of 2.37%. This is 0.13% over the average SONIA rate
(Sterling Overnight Index Average) and 0.07% over the average bank
base rate. Also, the value of the externally managed funds
decreased by a net of £7.335m due to the changes in the unit
price, giving a combined return of -2.24%.

 

• 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 (GF):
£273.1m) throughout 2022/23. 

 

• The level of financing for ‘invest to
save’ schemes decreased from £8.39m to £8.22m by
the end of 2022/23. 

 

Reasons for decision:

 

The CIPFA Code of Practice on Treasury Management
recommends that Local Authorities should submit reports regularly.
The Treasury Management Policy Statement for 2022/23 sets 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