Issue - meetings

The Principal Accountant Financial and Systems presented this report on treasury management performance. It was recognised that due to the current economic situation the return on the Council’s investments was lower than expected. It was noted that the third quarter report on treasury management would be discussed at February’s meeting.

The Finance and Staffing Portfolio Holder NOTED the report.

Report to be tabled at meeting. 

The Head of Accountancy tabled a paper which showed the Council’s investments with banks and building societies as at 18 March 2009.

The following points were noted:

• The Council’s current investments were not effected by interest rate changes, as the interest rates were fixed throughout the lifetime of the investment
• Scarborough Building Society would be merging with the Skipton Building Society
• Historically the Council had achieved more revenue than expected from the interest on its investments
• The investments as at 18 March would produce interest of just over £0.5 million in 2009/10 with additional interest to come during 2009/10 from further investments arising from cash flows in the year.

The Finance Portfolio Holder NOTED the report.

Cabinet APPROVED the Investment Strategy 2009-10.

Decision taken and published 12 March 2009.  Call-in period expires 19 March 2009 and decision can be implemented from 20 March 2009 if not called-in.

Cabinet APPROVED the Investment Strategy 2009-10. 

Cabinet considered the Investment Strategy for 2009-10, noting that the list of approved bodies with which the Council invested had changed to take account of those which had merged, which reduced the overall number of organisations.  The Finance Portfolio Holder commended the strategy to Cabinet, highlighting the good returns made and its prudential and sound approach.

The Chief Finance Officer explained that the primary aim of the strategy was security of investment rather than maximisation of returns, adding that if two organisations offered exactly the same rates and one were local, the Council would prefer to support the local institution.

Cabinet APPROVED the Investment Strategy 2009-10 and congratulated officers in the Accountancy service for continuing to achieve good results at minimal cost.