The Chief Executive presented a report, the purpose of which, was to comply with the requirement of the Chartered Institute of Public Finance and Accountancy ‘ Treasury Management in the Public Services: Code of Practice’ (the Code) to report an overview of treasury activities for the preceding financial year. The item also reported on the actual Treasury Management and Prudential Indicators for 2015-16.

He confirmed that the Council’s Treasury Management activities were regulated by the Local Government Act 2003 which provides the powers to borrow and invest as well as providing controls and limits on this activity. The Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003 as amended, develops the controls and powers within the Act. This requires the Council to undertake any borrowing activity with regard to the CIPFA Prudential Code for Capital Finance in Local Authorities and to operate the overall treasury function with regard to the CIPFA Code of Practice for Treasury Management in the Public Services.

The Chief Executive confirmed that the Annual Report covered the following areas for the period 205-16:-

•           The Council’s  treasury position

•           Treasury Risk Management

•           Borrowing Strategy & Outturn

•           Investment Strategy & Outturn

•           Performance Measurement

•           Review of the Treasury Management Strategy

•           Reporting Arrangements

•           Treasury Management and Prudential Indicators

Paragraph 4.1.1 then detailed in tabular form, the treasury position for 2015-16. The figures shown in this table and throughout the report were based on the actual amounts borrowed and invested, and so may differ from those in the Statement of Accounts which included accrued interest or were stated at fair value in different instances.

The Chief Executive then gave a breakdown and explanation of the information detailed in the above mentioned table, along the lines as was detailed in paragraphs 4.1.3 to 4.1.5. He informed Members, that the Council’s Treasury Management function had been reviewed by the Council’s External Auditors, Wales Audit Office, during their 2015-16 annual audit, and no adjustments relating to treasury management had been identified. Furthermore he added, Internal Audit had carried out their own audit of this area of work, and as a result, they had given an opinion of substantial assurance in respect of the Treasury Management function.

The Chief Executive then gave a resume of the subsequent sections of the report which related to:-

1.    Treasury Risk Management;

2.    Borrowing Strategy and Outturn 2015-16;

3.    Investment Strategy and Outturn 2015-16;

4.    Performance Management 2015-16;

5.    Review of the Treasury Management Strategy 2015-16; and

6.    Reporting Arrangements 2015-16

He then advised Council that the Treasury Management Code and Prudential Code, required the Council to set and report on a number of Treasury Management and Prudential Indicators. Details were shown in Appendix A of the estimated indicators for 2015-16, as detailed in the Treasury Management Strategy 2015-16 approved by Council on 25 February 2015, the revised projection (where applicable) as set out in the Treasury Management Strategy 2016-17 approved by Council on 10 March 2016, and the actual indicators for 2015-16. The Chief Executive added, that during the financial year 2015-16, the Council operated within the treasury limits and prudential indicators set out in the Council’s Treasury Management Strategy 2015-16

RESOLVED:                    That Council:-

(1)  Approved the Treasury Management activities for 2015-16.

Approved the actual Treasury Management and Prudential Indicators for 2015-16.