Issue - meetings

This report sets out the activities and performance of the Treasury Management function during 2021/22.

Cabinet Portfolio Holder: Councillor Peter Butlin

Councillor Peter Butlin (Deputy Leader, Finance and Property) opened this item by explaining that overall cash balances had risen to £458m over the year, up £63m. However, financial markets remained volatile and returns had generally been weak as a result of this and low interest rates. The overall return was below the original budget target but had still outperformed benchmarks.  The actual return shortfall to the budget would be dealt with through interest rate volatility reserve, specifically held for this purpose. Despite the difficult conditions, the Treasury Management Team had done a good job of balancing returns against the overriding principles of security and liquidity and it was pleasing that a ‘substantial’ audit opinion was given for the controls relating to Treasury Management activity.

Andy Felton, the Assistant Director for Finance was invited to respond, to a question from Councillor Andy Crump regarding driving improvement in the control framework.  He stated that a focus on the requirements of the prudential code was at the heart of strong treasury management, together with ensuring that the right processes and procedures were in place to enable an understanding of where cash flow existed and the investments that could be made as a result.

Resolved

That Cabinet notes the Treasury Management outturn for 2021/22.