Issue - meetings

Report of the Director of Finance and Support

1.      Cabinet is to recommend to Council that they approve:

a.      The adoption of the revised CIPFA Treasury Management in the Public Services; Code of Practice and Cross Sectoral Guidance Notes (Fully revised second edition 2009)

b.      The replacement of existing paragraph 5.9 of the Council’s Financial Regulations with the wording at Annex A of the Cabinet report

c.      The Treasury Management Policy Statement at Annex B of the Cabinet report

d.      The Treasury Management Practices (TMPs) and TMP Schedules for 2010-11 at Annex C of the Cabinet report

e.      The Treasury Strategy for 2010-11 at Annex D of the Cabinet report, incorporating:

(i)                 The Capital Financing and Borrowing Strategy for 2010-11 including:

·        The Council’s policy on the making of Minimum Revenue Provision (MRP) for the repayment of debt, as required by the Local Authorities (Capital Finance & Accounting) (Amendments) (England) Regulations 2008.

·        The Affordable Borrowing Limit for 2010-11 as required by the Local Government Act 2003.

(ii)               The Investment Strategy for 2010-11 as required by the CLG (formerly ODPM) Guidance on Local Government Investments issued in 2004.

2.      Cabinet is to recommend to Council that they note:

a.      The proposed Debt Financing Budget 2010-11 to 2011-12 (paragraph 3.2.15 and Annex F of the Cabinet report).

b.      Adherence to the Council’s policy on reserves and balances (paragraph 3.2.16 of the Cabinet report).

c.      Compliance with the requirement under the Local Government Finance Act 1992 to produce a balanced budget (paragraph 3.2.17 & 3.2.18 of the Cabinet report).

Councillor Clarke addressed Cabinet and asked for details of the policy on the taping of conversations as set out in Annex C of the report. He then referred back to his concerns over the whereabouts and use of Section 106 monies that had been received from English Partnerships for use in the building of changing rooms and playing fields on land in Upton.  Councillor B Hoare clarified that this was in fact an operational issue and not relevant to the Treasury Strategy.

Councillor Mildren addressed Cabinet.  He commented that the Audit Committee had not met to discuss the strategy although he understood that there had been an agreement from committee members via e-mail.  Referring to proposed changes to the arrangements for housing finance, he suggested that if there was a significant impact, a decision should be brought to full Council.  He then asked for confirmation that any trainee accountant doing responsible work would be at an appropriate level of competency.

Councillor Perkins presented the report to Cabinet and outlined its purpose. An internal audit on the treasury management had given a high assurance on work being done and auditors were satisfied that appropriate controls were in place. He outlined the content of report and explained that any changes had been extremely limited.  The report was a policy on the debt and investment portfolio and it was reported to Council as part of the whole process.  In response to Councillor Clarke’s query, he pointed out that it was common practice in money markets for calls to be recorded as evidence of any deals made.  In regard to the issue of HRA financing, he explained that if the housing subsidy ended, there would have to be additional borrowing but this would not appear in the budget figures until full details had been issued.

Councillor B Hoare was confident that the finance team was up to date in practice and fully compliant with legislation and the latest CIPFA information.  He acknowledged their good use of resources.

RESOLVED

1.      That Cabinet recommend to Council that they approve:

a.      The adoption of the revised CIPFA Treasury Management in the Public Services; Code of Practice and Cross Sectoral Guidance Notes (Fully revised second edition 2009)

b.      The replacement of existing paragraph 5.9 of the Council’s Financial Regulations with the wording at Annex A

c.      The Treasury Management Policy Statement at Annex B

d.      The Treasury Management Practices (TMPs) and TMP Schedules for 2010-11 at Annex C

e.      The Treasury Strategy for 2010-11 at Annex D, incorporating:

(i)                 The Capital Financing and Borrowing Strategy for 2010-11 including:

·        The Council’s policy on the making of Minimum Revenue Provision (MRP) for the repayment of debt, as required by the Local Authorities (Capital Finance & Accounting) (Amendments) (England) Regulations 2008.

·        The Affordable Borrowing Limit for 2010-11 as required by the Local Government Act 2003.

(ii)               The Investment Strategy for 2010-11 as required by the CLG (formerly ODPM) Guidance on Local Government Investments issued in 2004.

2.      That Cabinet recommend to Council  ...  view the full minutes text for item 11