Agenda item

Report of the Managing Director

The Managing Director submitted a report (previously circulated) for Members of this Audit Committee to review and scrutinise the Prudential Indicators and Limits for 2020/21 to 2022/23 relating to capital expenditure and Treasury Management activity; a policy statement relating to the Minimum Revenue Provision; and the Treasury Management Strategy 2020/21 to 2022/23, which includes the Annual Investment Strategy for 2020/21, prior to approval and adoption by Cabinet and Council.

The submitted report outlined the Council’s Prudential Indicators for 2020/21- 2022/23 and set out the expected treasury operations for this period and it was reported that the Council’s expenditure plans, treasury management and prudential borrowing activities indicated that they were within the statutory framework and consistent with the relevant codes of practice, prudent, affordable and sustainable and were an integral part of the Council’s Revenue and Capital Medium Term Financial Plans.

The Council’s Minimum Revenue Provision Policy sets out how the Council will pay for capital assets through revenue each year and details of the policy statement for 2020/21 were included in the submitted report.

The submitted report also included a Treasury Management Strategy for 2020/21, which sets out how the Council’s treasury service will support capital decisions taken, the day to day treasury management and the limitations on activity through treasury prudential indicators.  The Strategy for 2020/21 will cover two main areas, Capital Issues and Treasury Management Issues and a summary of the key prudential indicators and limits were also contained within the submitted report.

It was reported that the CIPFA Prudential code requires the responsible officer to ensure that Members with responsibility for treasury management receive adequate training in treasury management and training is arranged as required.

Members discussed in particular the investment and borrowing rates and the increase of the PWLB borrowing rates and how this may impact the local authority with any future borrowing.

RESOLVED – That this Audit Committee is satisfied with the Prudential Indicators and Treasury Management Strategy for 2020/21 to 2022/23, the Minimum Revenue Position statement and the Annual Investment Strategy 2020/21, as presented in the submitted report, and that the report be forwarded to Cabinet for its onward referral to Council for consideration.