Issue - meetings

The Corporate Director of Finance and Assets submitted a report setting out the Council’s mid-year Treasury Management performance for 2020/21 The Committee noted that the CIPFA Treasury Code of Practice recommends that Treasury Management performance is reported to members at least twice a year.

In introducing the report Paul Smith (Head of Finance – Deputy Section 151 Officer) drew Members’ attention to paragraph 3.2, and advised the Committee that the second sentence should have been deleted.

Councillors Kevin Small and James Robbins asked a range of questions, as set out below, to which Paul Smith responded at the meeting:

1)     Does the figure of £15m in paragraph 3.10.3 refer to the funding for commercial investment? Is it short- or long-term and from what source? The amount refers to a different investment, which was always intended as a five-year investment to maximise returns and avoid extra costs if left early the funding comes from cash flow.

2)     How much of the government Covid-19 related grant was earmarked for free school meals over school holidays and how much has it cost the Council so far? A written response will be provided.

3)     Where is the Council-owned investment property referred to in 3.10.5? What is the expected income and how might Covid affect this? It is Lysander House, Bristol. A written answer will be provided on the rental income; however, the tenants had not missed any payments to date and is it still making a surplus.

4)     Could Officers elaborate on the issues around exceeding the Treasury limit as set out in paragraph 3.13?  The limit is one adopted locally to ensure that the Council is not dependent on too few financial institutions.  The Council exceeded this limit when central government Covid-19 funding arrived at short notice. Once this was known, officers set up a new money market fund as quickly as possible to reduce the risks and protect the Council’s cash.

Resolved: (1) That the mid-year Treasury Management performance be noted.

(2) That Officers would send the written responses to any questions to the Committee Officer for circulation to the Audit Committee members.