Issue - meetings

Treasury Management Strategy & Annual Report 2022/23

Meeting: 25/07/2023 - Audit and Governance Committee (Item 186)

186 Treasury Management Annual Report 2022/23 pdf icon PDF 600 KB


            Upon the invitation of the Chair, the Internal Audit Manager introduced the report, explaining that he was presenting this on behalf of the Group Head of Finance who unfortunately had been unable to be present at the meeting. He highlighted that page 75, table 4.2 showed the Qatar National Bank and First Bank of Abu Dhabi deposits had now matured. Both the CCLA and Standard Chartered investments were classed as sustainable, something that would be given more consideration in the future. Page 85, table 4.3 showed there had been a significant reduction in the amount of overall investment available across the years, which had reduced from £68M to £43M. This was as a result of a significant amount of grant funding, such as Covid-19 grants, being returned to the Government in 2022/23. Page 86, table 4.5 showed the Council had outperformed it’s investment budget and investment return by over £1M, which was partly due to good management of Treasury investment, and partly due to unexpected interest rises.


Members then took part in a question and answer session where the following points were raised:

  • It was observed that page 81 commented that the Council currently had no external debt other than that taken out for the Housing Revenue Account, which was a separate financial and administrative function from the rest of the Council.
  • It was asked how many investments were locked in for a set time, and what these timeframes were, and whether the Council would be able to fund unforeseen expenses. The Chair explained that page 85, table 4.4 detailed how many investments were longer than one year, and how many were less, showing the vast majority were less than one year. He explained there were also reserves held, and he felt the Council’s financial position was sound. If further information was required regarding this, Members should contact the Internal Audit Manager, who would obtain answers from the Group Head of Finance.
  • Support was offered for Arun considering ethical investments.



          The recommendations were proposed by Councillor Wallsgrove and seconded by Councillor Purser.


The  Committee




1.    the actual prudential and treasury indicators for 2022/23 contained in the report be approved


2.    the annual treasury management report for 2022/23 be noted


3.    the treasury activity during 2022/23 which has generated interest receipts of £1,455,650 (2.35%); budget £370,000 (0.84%) be noted


4.    the addition of Handelsbanken Plc (Fitch rating AA, F1+) and Natwest Markets Plc (NRFB–Non Ring Fenced Bank) (Fitch rating A+, F1) to the 2023-24 treasury management strategy, be approved


5.    as agreed at Audit & Governance Committee on 28 February 2023, that the Qatar National Bank and First Bank of Abu Dhabi have been removed from the counterparties list in the Council’s Treasury Management Strategy, be noted