Agenda item

Report of the Managing Director

The Managing Director submitted a report (previously circulated) to seek Members approval of the revised Treasury Management Strategy, Prudential Indicators and provide Members with a half-yearly review of the Council’s borrowing and investment activities.

It was reported that the mandatory Prudential Code, which governs Council’s borrowing, required Council approval of controls, called Prudential Indicators, which related to capital spending and borrowing. The indicators were set out in three statutory annual reports and the key objectives of those reports were set out in the submitted report, together with the key proposed revisions to the indicators which related to a reduction in the Operational Boundary and the Authorised Limit to allow for any additional cashflow requirement.

Reference was also made to the Treasury management budget which was forecast to overspend by £0.033m in 2019/20 due to a combination of less than expected returns on Commercial Ventures and investments and reduced interest/principal repayments which have been reflected in the current Medium Term Financial Plan projections.

Members examined the Prudential Indicators and the Treasury Management half-yearly review and were satisfied with the Council’s borrowing and investment activities and the reported prudential indicators.

RESOLVED – That the submitted report be referred to Cabinet and that it be advised that this Audit Committee approves the revised prudential indicators and limits and notes the overspend in the revised Treasury Management Budget (Financing Costs).