Issue - meetings

The Executive Member for Finance submitted a report setting out the Council’s treasury management activities for the six months up to 30 September 2014.  The mid-year report had been prepared in compliance with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice.

The Director of Finance and Support Services provided a summary of the factors affecting investments, the detail of which was set out in the report now submitted.  The Director of Finance and Support Services provided an update in relation to the Council’s recent decision to invest in pooled property funds, and stated that  the Council was now on the waiting list to invest.

Councillor R Sharma suggested that it might be interesting to have information regarding how accurate previously predicted forecasts of interest rates had been.

Councillor D Andrews stated that the Council was relying heavily on traditional methods of investment.  He referred to a neighbouring authority which had invested in property and was receiving high rates of return.  The Director Finance and Support Services commented that she was aware of this and that the other authority had already set up a company to facilitate its property investment approach.     

The Chairman expressed concern at the low level of interest paid by the bank on overnight deposits.   The Director of Finance and Support Services stated that, having already taken a decision to invest in Pooled Property Funds, the Council needed to keep sufficient cash on hand so that it could move quickly, if needed.

The Committee received the report.

RESOLVED – that (A) the loan and investment position as at 30 September 2014 be noted; and

(B)     the Prudential Indicator position as at 30 September 2014 be noted and that no changes to Prudential Indicators be proposed.