Agenda item

To receive a report showing how the Council will manage its investments and its borrowing for the coming year and sets the policies within which the Treasury Management function operates (copy attached).

The Lead Member for Finance Performance and Strategic Assets, introduced the Annual Treasury Management Strategy Statement (TMSS) 2022/23 Report (Appendix 1 - previously circulated) which showed how the Council would manage its investments and its borrowing for the coming year and sets out the Policies within which the Treasury Management function operate.

The Treasury Management Update Report (appendix 2) provided details of the Council’s Treasury Management activities during 2021/22.

The Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management (the “CIPFA TM Code”) requires the Council to approve the TMSS and Prudential Indicators annually. The Governance and Audit Committee was required to review this report before it is approved by Council on 22 February 2022.

Members were reminded of the three priorities considered when investing funds:

·         keep money safe (security);

·         make sure that the money comes back when it is needed (liquidity);

·         make sure a decent rate of return is achieved (yield).

The Lead Member highlighted the key areas of the strategy (appendix1) and the annexes within the paper.

Appendix 2 provided the in-year update for members. Members heard under the borrowing strategy the authority held 6 loans from other authorities totalling about £30m, which were due to mature in the next 12 months. Once completed a review of the position would be conducted.

It was stressed the last internal audit review of the service had received a medium assurance.  

Work was currently underway to develop a medium term strategy for

Capital funding. This would help identify projects that were planning to develop and invest in over a 5 to 10 year period, but had not yet gone through the approval process.

The Head of Finance and Property Services, thanked the Lead Member for the detailed introduction and stressed the level of borrowing and investment balances had both peaked at the end of 2019 financial year. This had been to extra borrowing drawn down before the funding from the revenue support grant from Welsh Government resulting in extra cash held. The patterns had returned to what officers would expect.

Members were reassured training would be provided to all members following the election in May.    

The Chair thanked the officer for the detailed report. Members were appreciative of the attached glossary and found it very useful.

During discussion the following points were raised –

·         The authority had to initially fund some support to businesses before Welsh Government funding was received.

·         Temporary borrowing from other authorities was a form of borrowing. Officers reviewed when it was best to lock in borrowing.

·         The Head of Finance and Property Services agreed BREXIT should be included as a potential risk.

·         The actions from the audit review were minor actions to implement. Internal Audit were happy with the response officers had offered. It was confirmed it would be followed up and reported back to the committee as part of the internal audit update.

·         Denbighshire County Council did not loan funds to other authorities. The option of borrowing from other authorities was low risk and often low costing.

·         It was noted that the majority of funding received by the authority was completed electronically. The loss of the high street banks had not impacted on the finance service.

Members,

RESOLVED, that the Committee note the Treasury Management Strategy Statement for 2022/23, the Prudential Indicators 2022/23 to 2023/24 and 2024/25. The Committee note the Treasury Management Update Report and confirm it has read, understood and taken account of the Well-being Impact Assessment as part of its consideration.