Issue - meetings

To receive the recommendation of the following Committee and, if approved, to adopt the recommendations contained therein:

Audit Committee – 11 July 2019 – one recommendation in respect of the treasury activity and prudential indicators for 2018/19 – Minute No. AAG/13 (The report of the Director of Corporate Resources to the Audit Committee is online here

RESOLVED

That:

i)   an increase from £1m to £1.5m in the limit on lending to subsidiary companies in the 2019/20 Investment Strategy be approved; and;

ii)  a £0.5m limit on shareholding in its subsidiary companies in the        2019/20 Investment Strategy

Reasons for Recommendations

i)             The annual treasury report is a requirement of the Council’s reporting procedures.

ii)            This report also covers the actual Prudential Indicators for 2018/19 in accordance with the requirements of the relevant CIPFA Codes of Practice.

iii)          Changes to the limits in the 2019/20 Investment Strategy are required to enable the housing companies agreed by Cabinet on 21 March 2019 to commence operations

The Chairman of the Audit Committee reported that as at 31 March 2019, the Council’s external debt was £4m and investments totalled £36.1m including call accounts and Money Market Funds. During 2018/19, the Council’s cash balances had been invested in accordance with the Council’s treasury management strategy. Interest of £0.887m had been earned on investments, an average return of 2.1%.

In reply to a question from a Member regarding the raising of the Public Work Loans Board increase in lending rates by 1%, the Director of Corporate Resources said that the council had no debt at the moment, so was unaffected by this change.  Financial activity had shifted toward inter authority loans, as the rates were more favourable.  The recommendation was seconded by Councillor John Blackall.

RESOLVED

That:

i)   an increase from £1m to £1.5m in the limit on lending to subsidiary companies in the 2019/20 Investment Strategy be approved; and;

ii)  a £0.5m limit on shareholding in its subsidiary companies in the        2019/20 Investment Strategy