Treasury Management Strategy Statement & Capital Strategy 2020-21
The Committee considered the Treasury Management Strategy, associated Annual Investment Strategy and the Minimum Revenue Provision Policy for 2020/21 along with the Capital Strategy for 2020/21.
The Principal Accountant (Housing & Exchequer) advised that this was the second year of the revised reporting requirements introduced by CIPFA’s 2017 Prudential and Treasury Management Codes in that all authorities must prepare a Capital Strategy.
Members were informed that the Capital Strategy will be presented separately however it had intrinsic links to the Treasury Management Strategy of the Council.
The Principal Accountant (Housing & Exchequer) advised that, in relation to Treasury Management Reporting, the Full Council was required to receive and approve, as a minimum, the following three main reports each year, which incorporated a variety of policies, estimates and actuals:-
· Prudential and treasury indicators and treasury strategy;
· A mid-year treasury management; and
· An annual treasury report.
The above reports were required to be adequately scrutinised before being recommended to Full Council therefore it was the role of the Finance and Audit Committee to scrutinise these reports.
The Principal Accountant (Housing & Exchequer) drew Members’ attention to the key points contained within the Treasury Management Strategy and Capital Strategy for 2020/21.
Members were informed that the Council currently uses Link Asset Services as its external treasury management advisors. Link Asset Services had provided the Council with a summary on the economic background which was attached at Appendix One of the report and had been taken into consideration when developing the Treasury Management Strategy and Capital Strategy for 2020/21.
The Committee was informed that both strategies were complexed documents and would be regularly updated.
In relation to Treasury Management, the Committee asked whether there were any key and/or new indicators that the Committee should be focussing on.
The Principal Accountant (Housing & Exchequer) highlighted both ‘commercial activities’ and ‘the Council’s borrowing need’ as key areas of focus. The Assistant Director (Corporate Services) advised that any amendment to either area would require approval by Full Council at the appropriate time therefore Members would be provided with the opportunity to consider each area in its own right prior to any decisions being made that could affect the council in respect of commercial activity or borrowing need beyond that already included in the draft budget.
Resolved that the Finance & Audit Committee recommends to the Full Council that:-
1. the Treasury Management Strategy for 2020/21 as set out in Appendix 2 be agreed;
2. delegated authority be given to the Director (Corporate Services), in consultation with the Chair of the Finance and Audit Committee, to amend the prudential and treasury indicators as necessary as a result of the budget approved by Full Council on 25 February 2020;
3. the Minimum Revenue Provision (MRP) calculation on all new capital expenditure as set out in Section 5 of the Treasury Management Strategy Statement be approved for 2020/21 and beyond in accordance with the Authority’s Capital Programme;
4. the Annual Investment Strategy for 2020/21 as set out in Section 14 of the Treasury Management Strategy Statement be agreed;
5. and the Capital Strategy for 2020/21 as set out in Appendix 3 be agreed.
- TMSS & Capital Strategy Summary Report 2020-21, item 38. PDF 104 KB
- TMSS 2020-21 V2, item 38. PDF 580 KB
- 1. Gravesham Capital Strategy 2020, item 38. PDF 167 KB
- 2. Appendix 1 - CP1 Form 2020, item 38. PDF 169 KB
- 3. Appendix 2 - GF Capital programme to 2024-25, item 38. PDF 54 KB
- 4. Appendix 3 - HRA Capital Programme to 2024-25, item 38. PDF 57 KB