Issue - meetings

Item CB 14/003 referred from Cabinet minutes of 4 February 2014

Item CB 14/003 referred from Cabinet minutes of 4 February 2014

RESOLVED:  That the recommendations at Minute CB 14/003 be adopted.

The report of the Director of Finance and Transformation provided details of investments undertaken and returns achieved in the first nine months of the current financial year.  Members were invited to consider amending the current split of investment responsibilities for in-house and externally managed funds.  It was noted that the size of the core fund had diminished to the extent that its investment could now be managed with in-house resources.  The report concluded with a recommendation to adopt the Treasury Management Strategy Statement and Annual Investment Strategy for 2014/15.

The Cabinet was advised that the Audit Committee had reviewed the matters covered by the report at its meeting on 27 January 2014 and the revised arrangements had been commended for adoption.

The Director of Finance and Transformation reported that, following a sale by auction of the Landsbanki claim, the Council had now received the final tranche of monies due and the matter was now closed.  She advised that Tonbridge and Malling Borough Council had recovered 95% of the £1million that was deposited in 2008.

RECOMMENDED:  That

(1)  the treasury management position as at 31 December 2013 be noted;

(2)  the current minimum counterparty credit ratings and the current maximum sovereign/counterparty exposure limits be retained;

(3)  all cash flow funds in 2014/15 be managed in-house with no requirement to transfer funds to the external fund manager;

(4)  the transfer of responsibility for the Council's core fund investments from the external fund manager to in-house management during 2014/15 be approved;

(5)  some flexibility over the duration of investments placed with UK financial institutions be allowed as outlined in paragraph 1.3.12 of the report; and

(6)  the Treasury Management Strategy Statement and Annual Investment Strategy for 2014/15, as set out at Annex 3 to the report, be adopted.