The report of the Director of Finance, Governance and Assurance (Section 151 Officer) is attached.

Contact:  James Walton (01743) 258915

71.1 The Committee received the report of the Director of Finance, Governance and Assurance (Section 151 Officer) – copy attached to the signed Minutes – which proposed the Treasury Strategy for 2020/21 and recommended Prudential and Treasury Indicators for 2020/21 to 2022/23.

71.2 The Director of Finance, Governance and Assurance (Section 151 Officer) reported that the Treasury Strategy for 2020/21 had been approved by Cabinet on the 12 February 2020 and would be going to Full Council later that week.  He referred to the recent Treasury Strategy training session for Members which had provided more detail.  He explained that the Capital Strategy picked up non-treasury (investment) activities, which the Audit Committee could look at separately.

71.3 In relation to the Council’s Housing Company, an exempt report had been considered by Full Council and delegated authority had been given to the Director of Finance, Governance and Assurance (Section 151 Officer) to make any necessary changes to the Treasury Strategy in relation to the Housing Company.

71.4 In response to a query, the Director of Finance, Governance and Assurance (Section 151 Officer) explained that although the Audit Committees’ responsibility for ‘Scrutiny of Treasury Strategy’ could be seen as an ‘overview’ instead, ‘scrutiny’ was the language used in the Code.  In relation to a query about whether an external fund manager was to be appointed (Page 41), the Director of Finance, Governance and Assurance (Section 151 Officer) explained that the Council had no intention of appointing any such manager but that it had the power to do so, should it wish and he gave an example of circumstances in which an external fund manager may be appointed.

71.5 In relation to PWLB borrowing, the Director of Finance, Governance and Assurance (Section 151 Officer) explained that they used to be the cheapest source of funding but had increased their margin by 1% the previous year which had stifled the market so that other products became viable and PWLB became more expensive.

71.6 In response to a query about whether borrowing decisions were made in consultation with Cabinet or the Portfolio Holder with responsibility for Finance, the Director of Finance, Governance and Assurance (Section 151 Officer) explained that the vast majority of day to day borrowing decisions were delegated to the Section 151 Officer, with guidance and support from the Treasury Management Team and Asset Managers.  Any decisions were then reported back to Committee.  He stated that it was a dynamic process and that extra governance would slow the process down.  He confirmed that decisions were made in line with the Treasury Management Code.

71.7 In response to a query, the Director of Finance, Governance and Assurance (Section 151 Officer) explained that the process of lending to AAA rated Money Market Funds.  Members requested that the appropriate aspects of the Capital Strategy be considered at the next meeting of the Audit Committee.

71.8 RESOLVED:

a)    That the Treasury Strategy 2020/21 be endorsed.

b)    That the appropriate aspects of the Capital Strategy be considered at the next meeting of the Audit Committee.