Issue - meetings

To consider a report of the Leader of the Council and Cabinet Member for Policy, Finance and Devolution.

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution (Councillor Alex Ganotis) submitted a report (copies of which had been circulated) detailing the annual treasury report reviewing treasury management activities and the actual prudential and treasury indicators for 2017/18.

RESOLVED - (1) That approval be given to the actual 2017/18 prudential and treasury indicators detailed in the report.

(2) That the annual treasury management report for 2017/18 be noted.

(3) That it be noted that no fundamental changes had been made during 2017/18 to the Treasury Management Policy Statement and Practices approved at the Council Meeting on 14 September 2017.

To consider a report of the Leader of the Council and the Cabinet Member for Policy, Finance & Devolution.

The purpose of this report is to inform the Cabinet on the operation and effectiveness of the Council's Treasury Management function for 2017/18. Throughout 2017/18 the Council complied with its legislative and regulatory requirements.  The key actual prudential and treasury indicators detailing the impact of capital expenditure activities during the year, with comparators are set out in the report.

The Borough Treasurer confirms that borrowing was only undertaken for a capital purpose and the statutory borrowing limit (the authorised limit) was not breached.

This annual review report is a backward-looking review of the treasury management operation for the previous financial year and is the last report in the 2017/18 reporting cycle.

In treasury management terms the 2017/18 financial year largely continued the challenging environment of previous years, with lasting low investment returns and counterparty risk remaining.

The Cabinet is asked to recommend that the Council Meeting:

•      approve the actual 2017/18 prudential and treasury indicators in this report;

•      note the annual treasury management report for 2017/18;

•      note that no fundamental changes have been made during 2017/18 to the Treasury Management Policy Statement and Practices approved at the Council meeting on 14 September 2017.  However these will be fully reviewed in light of the requirements of the revised CIPFA Codes published in December 2017 and reported to Members later in 2018/19.

Officer contact: Lorna Soufian, 0161 474 4026, lorna.soufian@stockport.gov.uk

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) inviting the Cabinet to consider the Annual Report of the Council’s Treasury Management function in 2017/18.

During 2017/18 the Council complied with its legislative and regulatory requirements. The report set out the key actual prudential and treasury indicators detailing the impact of capital expenditure activities during the year, as well as compactor information.

The 2017/18 financial year had largely continued the challenging environment of previous years with lasting low investment returns and counterpart risk remaining.

The Leader of the Council paid tribute to the good work done by Council officers in managing the treasury functions and ensuring a sustainable investment strategy to support the Council’s ambitions.

In particular, the Leader highlighted changes to the CIPFA Code of Practice that would result in the Council reporting differently in relation to its fixed assets; the reduction in the Council’s debt costs; and the Council having taken on long term loans to reduce its borrowing costs.

RESOLVED – That in relation the Treasury Management Annual Report 2017/18 the Council Meeting be recommended to:

·         approve the actual 2017/18 prudential and treasury indicators in the report;

·         note the annual Treasury Management Report for 2017/18;

·         note that no fundamental changes had been made during 2017/18 to the Treasury Management Policy Statement and Practices approved at the Council meeting on 14 September 2017, but that these would be fully reviewed in light of the requirements of the revised CIPFA Codes published in December 2017 and reported to councillors later in 2018/19.

To consider a report of the Borough Treasurer.

The Council is required through regulations issued under the Local Government Act 2003 to produce an annual treasury report reviewing treasury management activities and the actual prudential and treasury indicators for 2017/18. This report meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

During 2017/18 the minimum reporting requirements were that the full Council should receive the following reports:

·         an annual treasury strategy in advance of the year (Council, 23 February 2017);

·         a mid-year treasury update report (Council, 30 November 2017);

·         an annual report following the year describing the activity compared to the strategy (this report).

In addition, the Cabinet has received quarterly treasury management updates as part of the CPRR Reports on 15 August 2017 (first update report) and 6 February 2018 (final update report).

The regulatory environment places onus on members for the review and scrutiny of treasury management policy and activities.  This report is important in that respect, as it provides details of the outturn position for treasury activities and highlights compliance with the Council’s policies previously approved by Members.

The Council Meeting will be asked to:-

·         Approve the actual 2017/18 prudential and treasury indicators in this report;

·         Note the annual treasury management report for 2017/18;

·         Note that no fundamental changes have been made during 2017/18 to the Treasury Management Policy Statement and Practices approved at the Council meeting on 14 September 2017.  However these will be fully reviewed in light of the requirements of the revised CIPFA Codes published in December 2017 and reported to Members later in 2018/19.

The Scrutiny Committee is invited to comment on the report.

Officer contact: Lorna Soufian, 0161 474 4026, lorna.soufian@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) setting out the Annual Treasury Report for 2017/18, produced in accordance with applicable CIPFA codes of practice. The report highlighted that the Council had complied with its legislative and regulatory requirements, and set out a series of key prudential and treasury indicators.

The Leader of the Council (Councillor Alex Ganotis) attended the meeting to respond to questions.

Councillors commented on the well run treasury management function of the Council.

The ongoing challenges for the Council in managing its investments and borrowing in the current financial climate were emphasised.

RESOLVED – That the report be noted.