Report of the Interim Head of Finance providing details of the 2019/20 year-end review of the Treasury Management function.

The committee received a report of the Interim Head of Finance which included the year-end review of the Treasury Management function. The Interim Head of Finance introduced the report.

                   He discussed the report cycle and advised that the report predominantly related to performance.  He emphasised the importance of managing cash flow, in investing with institutions that were properly graded, and in investing securely; with a maximum investment of £5m permissible - and spread over a number of institutions to manage risk.  

                   The Interim Head of Finance explained the fundamentals in administering investments and, in terms of yield, it had been hoped to gain £150k in 2019/20. However, £95k had been achieved owing to reduced and low interest rates in some organisations.  He concluded by explaining borrowing requirements and advised that the treasury management policy had been met and effectively managed during the year.

                   In response to a question from members, the Interim Head of Finance confirmed the low level of interest rates and explained they were much reduced from ten years ago.  Following a further question, he clarified that monies could not be invested in property as the cash was invested in the short term and would be required subsequently.

                        RESOLVED –

                   that the Committee notes the Annual Treasury Management Report.