Decision details

Michael Jackson, Principal Financial Accountant, presented the report of the Statutory Finance Officer which reports on Treasury Management performance in financial year 2018/18 to the end of September.

Updated Prudential Indicators will be presented in the Treasury Strategy report to Full Council on 26 February 2019 which will take account of the latest CIPFA guidance.

The average interest earned is 0.52% to the end of September, which is more than the target of 0.49%.  As in 2017/18, cash balances have been used as a source of internal borrowing to minimise external borrowing at higher rates of interest, thereby achieving revenue budget savings.

Members noted that the current CNAV Money Market Funds (MMF) will convert to Low Volatility Net Asset Value (LVNAV) MMFs in early 2019, so their use needs to be approved so that the Council can continue placing cash sums in MMFs.

CIPFA continue to publish guidance on the new Prudential Code and statements to take account of the increased commercialisation of local authorities. 

The advice of Link Asset Services, the Council’s Treasury Consultant  is unlikely to be achievable because the Council cannot commit cash for term deposit investments and the highly liquid accounts used pay a lower rate of interest than the Link target.

Decision:

1.    That the report be noted.

2.    That Council is recommended to add Low Volatility Net Asset Value (LVNAV) Money Market Funds to the list of approved Investment Counterparties with a limit of £3m per fund.