TREASURY POLICY STATEMENT 2005/06
2.0 Treasury Management Operation
3.0 Treasury Management Strategy
4.0 Approved Methods and Sources of Raising Capital Finance
5.0 Prudential Indicators
6.0 Annual Investment Strategy
7.0 Delegated Powers
8.0 Review & Reporting Arrangements
Schedule A Debt Maturity Profile
Schedule B Staff Involved in Treasury Management
Schedule C Authorised Signature List
1.1 The Council has customarily considered an annual Treasury Strategy
Statement under the requirement of the CIPFA Code of Practice on Treasury
Management. The 2003 Prudential Code for Capital Finance in local
authorities has introduced new requirements for the manner in which capital
spending plans are to be considered and approved, and in conjunction with
this, the development of an integrated treasury management strategy.
1.2 The Prudential Code requires the Council to set a number of Prudential
Indicators, certain of which replace the borrowing/variable interest limits
previously determined as part of the strategy statement, whilst also extending
the period covered from one to three years. This report incorporates the
indicators determining the Council’s treasury management strategy for the next
3 financial years.
2.0 TREASURY MANAGEMENT OPERATION
2.1 Treasury Management is -
“the management of the local authority’s cash flows, its banking, money
market and capital market transactions; the management of the associated
risks, and the pursuit of the optimum performance or return consistent with
2.2 The CIPFA’s Code of Practice for Treasury Management, which the Authority
has adopted, requires that authorities adopt the following clauses:
• The Authority will maintain a Treasury Management Policy Statement,
stating the policies and objectives of its treasury management activities.
The Authority will also maintain suitable Treasury Management Practices
(TMPs) setting out the manner in which policies and objectives will be
achieved and how it will manage and control those activities.
• The Authority will report on its treasury management policies, practices
and activities including an Annual Strategy in advance of the year and an
annual report after its close.
2.3 The approved activities of the Treasury Management operation are as follows:
(a) Cash Flow (daily balances and longer term forecasting)
(b) Investing surplus funds in accordance with the Welsh Assembly
Government (WAG) Investment Guidance (March 2004)
(c) Borrowing to finance cash deficits
(d) Funding of capital payments through borrowing, capital receipts or
(e) Management of debt (including rescheduling and monitoring an even
(f) Interest rate exposure management
(g) Dealing procedures with brokers, bank and Public Works Loans Board
(h) Use of external management for temporary investment of funds
2.4 The Authority regards the successful identification, monitoring and control of
risk to be the prime criteria by which the effectiveness of its treasury
management activities will be measured. The analysis and reporting of treasury
management activities will focus on their risk implications for the
organisation. The Authority acknowledges that effective treasury management
will provide support towards the achievement of its business and service
objectives and is committed to the principles of achieving best value in
treasury management. Suitable performance measurement techniques will be
employed within the context of effective risk management.
2.5 The Authority’s current portfolio position as at 1st February 2005 is:
Principal Ave. rate
Fixed rate funding PWLB 68.74
Market 4.00 72.74 6.80
Variable rate funding PWLB 0.00
Market 19.25 19.25 2.21
Other long term liabilities 0.00
TOTAL DEBT 91.99 5.84
TOTAL INVESTMENTS 5.40
Investments held are due to the temporary cash flow position of the Authority
and are of a very short term nature.
2.6 The borrowing requirement for the next 3 years is:
2004/05 2005/06 2006/07 2007/08
£'000 £'000 £'000 £'000
14,467 New borrowing 4,000 4,000 4,000
0 Alternative financing arrangements 0 0 0
533 Replacement borrowing 9,368 14,045 871
15,000 TOTAL 13,368 18,045 4,871
3.0 TREASURY MANAGEMENT STRATEGY
The major objectives to be followed in 2005/06 are:-
• To minimise the revenue costs of debt
• To manage the Council’s debt maturity profile i.e. to leave no one
future year with a high level of repayments that could cause
problems in re-borrowing (the current debt maturity profile is
shown in Schedule A).
• To effect funding in any one year at the cheapest cost
commensurate with future risk.
• To forecast average future interest rates and borrow accordingly
• To monitor and review the level of variable interest rate loans in
order to take greater advantage of interest rate movements.
• To reschedule debt in order to take advantage of potential savings
as interest rates change.
• To achieve a level of return greater than would be secured by
• To maintain capital security
• To maintain policy flexibility.
3.2 Forecasts for 2005/06
Prospects for Interest Rates
The Council has appointed Butlers as the Council’s Treasury Management
Consultant and part of their service is to assist the Council with formulating a
view on interest rates.
The base rate is projected to remain constant at 4.75% in the early part of 2005
and fall back to 4.5% by the end of 2005.
Mid and long term PWLB rates are not projected to deviate significantly in
2005 from the current rates of 4.7% for 5 years and 4.65% for 25 years.
Shorter-term rates – Base rate increased from 4% to 4.75% during 2004. The
inflation target for the Monetary Policy Committee (MPC) in 2004 was plus or
minus 1% and around 2% on CPI (consumer prices index). CPI has been
running at 1.2% – 1.6% throughout 2004 and is forecast to rise steadily in
2005, reaching 2% in 2006. Wage inflation and producer price inflation are
rising at around 4%. However, oil prices have been very volatile recently
reaching a high of $50 per barrel. This volatility could affect the forecasts for
inflation. The upside is that the potential increase for the base rate is limited by
the heightened sensitivity of consumers to interest rate rises due to the huge
increase in personal borrowing in recent years.
Longer-term interest rates – PWLB rates were at low levels during the first
part of 2004 rising to around 4.65% at the year end. This rate is expected to
continue to rise in the early part of 2005 and then fall back to 4.6% towards the
Capital Borrowings and the Borrowing Portfolio Strategy
Based upon the prospects for interest rates outlined above, there are a number
of strategy options available. The anticipation is that short-term variable rates
will continue to be cheaper than long-term PWLB fixed rate borrowing during
2005/06. Short term variable rates are expected to rise in line with increases in
the base rate. Long term rates are also expected to rise. These expectations
provide a variety of options:
• that short term variable rates will be good value compared to long term
rates, and are likely to remain so for potentially at least the next couple of
years. Best value will therefore be achieved by borrowing short term at
variable rates in order to minimise borrowing costs in the short term or to
make short term savings required in order to meet budgetary constraints.
• that the risks intrinsic in the shorter term variable rates are such, when
compared to historically relatively low long term fixed funding, which may
be achievable in 2005/06, that the Council will maintain a stable, longer
term portfolio by drawing longer term fixed rate funding at a marginally
higher rate than short term rates.
Against this background caution will be adopted with the 2005/06 treasury
operations. The Deputy Chief Executive and Director of Corporate Services
will monitor the interest rate market and adopt a pragmatic approach to any
changing circumstances, reporting any decisions to Cabinet as and when
Sensitivity of the forecast - The main sensitivities of the forecast are likely to
be the two scenarios below. The Council officers, in conjunction with the
treasury advisers, will continually monitor both the prevailing interest rates
and the market forecasts, adopting the following responses to a change of
• if it was felt that there was a significant risk of a sharp rise in long and
short term rates, perhaps arising from a greater than expected increase in
world economic activity, then the portfolio position will be re-appraised
with the likely action that fixed rate funding will be drawn down whilst
interest rates are still relatively cheap.
• if it was felt that there was a significant risk of a sharp fall in long and
short term rates, due to e.g. growth rates remaining low or weakening, then
long term borrowings will be postponed, and any rescheduling from fixed
rate funding into variable or short rate funding will be exercised.
The Council has assumed borrowing rates of between 4.6% and 5% in the
Treasury Management Strategy for 2005/06.
The PWLB rates range from 4.6% for one year to 4.75% for 10 – 20 years.
(PWLB Interest Rate Notice, dated 1st February 2005).
(a) Capital Finance
To achieve the optimum funding structure for the Capital Programme,
maximising the use of capital grants, prudently using capital receipts
and utilising borrowing and other financing options.
To maintain a flexible approach and take advantage of the low interest
rates which currently apply to long, medium and short- term
(c) Temporary Investments
To minimise the use of temporary investments except when required to
maintain flexibility, and where borrowing is made in advance of
(d) Debt Rescheduling
To review the possibility of debt rescheduling as and when the
opportunity arises, but not to proceed unless the appropriate discounted
cash flow calculations are favourable.
(e) Treasury Management Consultant
The Council has a contract with the treasury management consultant,
Butlers, whose remit is to work with the Authority through the coming
year and assist in the delivery of the objectives of the Treasury
4.0 APPROVED METHODS AND SOURCES OF RAISING CAPITAL
4.1 The following list specifies which sources of finance available:
PWLB X X
Market Long Term X X
Market Temporary X X
European Investment Bank X X
Local Bonds X
Negotiable Bonds X X
Stock Issues X X
Other Sources of Finance
4.2 The Council has no policy to restrict the type of borrowing instruments
required and all the above are available to the Deputy Chief Executive and
Director Corporate Services when he considers them appropriate.
4.3 However, it is anticipated that in practice borrowing will be confined to -
(b) Market Temporary
(c) Market Long Term
5.0 PRUDENTIAL INDICATORS
The following Prudential Indicators are required to be set and approved by
Council in accordance with the Prudential Code. There are no future year
estimates for Housing Revenue Account as the housing stock was transferred
to Valleys to Coast Housing Association in September 2003.
5.1 Prudential Indicators for Prudence
No. Prudential indicators For Prudence 2003/04 2004/05 2005/06 2006/07 2007/08
Actual Proj Est Est Est
1 Estimates of Capital Expenditure £'000 £'000 £'000 £'000 £'000
Non – HRA 28,649 31,853 18,214 15,205 11,570
HRA (applies only to housing authorities) 2,112 0 0 0 0
TOTAL 30,761 31,853 18,214 15,205 11,570
2 Capital Financing Requirement (as at 31 March) £'000 £'000 £'000 £'000 £'000
Non – HRA 116,707 121,173 123,896 126,378 128,761
HRA (applies only to housing authorities) 0 0 0 0 0
TOTAL 116,707 121,173 123,896 126,378 128,761
3 External Borrowing £'000 £'000 £'000 £'000 £'000
Total Long Term Borrowing 91,360 98,827 101,827 104,827 107,827
The actual capital expenditure that was incurred in 2003/04 is split between
Council Fund and HRA. The estimates of capital expenditure to be incurred
for the current and future years are recommended in accordance with the
approved Capital Programme for 2005/06.
The Capital Financing Requirement measures the Authority’s underlying need
to borrow for capital purposes. In accordance with best practice there is no
association between individual loans and particular types of expenditure. The
Authority has an integrated Treasury Management Strategy and has adopted
the CIPFA Code of Practice for Treasury Management in Public Services.
External Borrowing arises as a result of both capital and revenue expenditure.
Therefore, the Capital Financing Requirement and actual external borrowing
can be very different.
One of the Prudential Indicators for Prudence, called the Net Borrowing and
Capital Financing Requirement requires that:
“In order to ensure that over the medium term net borrowing will only be for a
capital purpose, the local authority should ensure that net external borrowing
does not, except in the short term, exceed the total capital financing
requirement in the preceding year plus the estimates of any additional capital
financing requirement for the current and next two financial years.”
The Deputy Chief Executive and Director of Financial Services reports that the
Authority had no difficulty meeting this requirement in 2003/04 and does not
envisage any difficulties in the current and future years. This view takes into
account current commitments, existing plans and the proposals for next year’s
5.2 Prudential Indicators for Affordability
No. Prudential Indicators for Affordability 2003/04 2004/05 2005/06 2006/07 2007/08
Act Proj Est Est Est
Ratio of Financing Costs to Net Revenue
4 Council Fund 5.42% 5.50% 5.60% 5.60% 5.60%
5 Housing Revenue Account 15.53% 0 0 0 0
Incremental Impact of Capital Investment
Decisions on Council Tax
6 Increase in Band D Council Tax as per Capital - £0.00 £0.00 £0.00 £0.00
7 Increase in Band D Council Tax Incl Rejected - £0.00 £0.00 £0.00 £0.00
The estimates of financing costs include current commitments and the
proposals in the Budget Report. Financing Costs include external interest and
the Minimum Revenue Provision charged to the Consolidated Revenue
Account. The Net Revenue Stream is the Budget Requirement for the Council
Fund and the total of rents and subsidy for Housing Revenue Account.
The estimate of the Incremental Impact of Capital Investment Decisions on
Council Tax (No. 6) is the future effect on Council Tax of the approved
Capital Programme 2005/06. As a comparison indicator No. 7 would show the
effect on Council Tax if additional unsupported borrowing had been
undertaken to carry out all of the high priority schemes identified in the
Capital Programme Appraisal.
5.3 Prudential Indicators for Treasury Management
No. Prudential Indicators For Treasury Management 2003/04 2004/05 2005/06 2006/07 2007/08
£'m £'m £'m £'m £'m
8 Authorised limit for external debt -
Borrowing 180 123 126 126 126
Other long term liabilities 0 0 3 3 3
TOTAL 180 123 129 129 129
9 Operational boundary -
Borrowing 147 102 106 110 114
Other long term liabilities 0 2 2 2
TOTAL 147 102 108 112 116
10 Upper limit for fixed interest rate exposure
Net principal re fixed rate borrowing / investments 141 102 106 110 114
11 Upper limit for variable rate exposure
Net principal re variable rate borrowing / investments 35 44 45 45 45
12 Upper limit for total principal sums invested for 0 0 0 0 0
over 364 days (per maturity date)
Bridgend County Borough Council has adopted the CIPFA Code of Practice
for Treasury Management in Public Services.
The Authorised Limit for External Debt and Operational Boundary separately
identifies borrowing from other Long Term Liabilities such as finance leases.
The limits are consistent with the Authority’s current commitments, existing
plans, approved revenue and capital budgets, and approved Treasury
Management Policy. They also have regard to risk management strategies,
estimates of capital expenditure, capital financing requirements and cash flow
The Operational Boundary is based on the estimate of the most likely, prudent
but not worst case scenario and represents a key management tool for in year
monitoring. The Authorised Limit includes additional headroom to allow for
unusual cash movements.
It should be noted that actual external debt is not directly comparable to the
Authorised Limit as actual external debt reflects the position at one point in
The Cabinet is asked to recommend these limits and to delegate authority to
Deputy Chief Executive and Director of Corporate Services to effect
movement between the separate agreed annual limits for borrowing and other
long term liabilities in accordance with option appraisal and value for money.
Any such changes will be reported to Council.
The Cabinet is asked to note that the Authorised Limit for 2005/06 will be the
statutory limit determined under Section 3(1) of the Local Government Act
• Upper limits for fixed interest rate exposure for principal sums have been
set at £106m for 2005/06, £110m for 2006/07 and £114m for 2007/08.
• Upper limits for variable interest rate exposure or principal sums have been
set at £45m for 2005/06,2006/07 and 2007/08 .
The Deputy Chief Executive and Director of Corporate Services will manage
interest rate exposures between these limits in 2005/06.
There are no proposals for the Council to invest sums for periods longer than
The amount of projected borrowing that is fixed rate, maturing in each period
as a percentage of total projected fixed rate borrowing is:
No Maturity structure of new fixed rate upper lower
borrowing during 2005/06 limit limit
13 Under 12 months 20% 0%
12 months and within 24 months 20% 0%
24 months and within 5 years 50% 0%
5 years and within 10 years 60% 0%
10 years and above 80% 40%
6 ANNUAL INVESTMENT STRATEGY
6.1 This Council has regard to the Welsh Assembly Government’s Guidance on
Local Government Investments (currently in draft form) and CIPFA’s
Treasury Management in Public Services: Code of Practice and Cross Sectoral
Guidance Notes (“CIPFA TM Code”).
6.2 This Annual Investment Strategy states which investments the Council may
use for the prudent management of its treasury balances during the financial
year under the heads of Specified Investments and Non-Specified
Investments. These are listed in Section 6.13
6.3 This Strategy also sets out:
• The procedures for determining the use of each asset class (advantages and
associated risk), particularly if the investment falls under the category of
• The maximum periods for which funds may be prudently committed in
each asset class;
• The £ limit to be invested in each asset class;
• The investment instruments to be used by the Council’s in-house officers;
and, if non-specified investments are to be used in-house, whether prior
professional advice is to be sought from the Council’s treasury advisors;
• The minimum amount to be held in short-term investments (i.e. one which
the Council may require to be repaid or redeemed within 12 months of
making the Investment).
6.4 All investments will be in sterling. The general policy objective for this
Council is the prudent investment of its treasury balances*. The Council’s
investment priorities are:
(a) the security of capital and
(b) liquidity of its investments.
The council will aim to achieve the optimum return on its investments
commensurate with the proper levels of security and liquidity.
* this includes monies borrowed for the purpose of expenditure in the
reasonably near future (i.e. borrowed 12-18 months in advance of need).
6.5 The Welsh Assembly Government maintains that the borrowing of monies
purely to invest or on-lend and make a return is unlawful and this Council will
not engage in such activity.
Security of Capital : The use of Credit Ratings
6.6 This Council relies on credit ratings published by Fitch Ratings, Moody’s
Investors Service or Standard & Poor’s to establish the credit quality of
counterparties (issuers and issues) and investment schemes. The Council has
also determined the minimum long-term and short-term and other credit
ratings it deems to be “high” for each category of investment (See Section
Monitoring of credit ratings:
• All credit ratings will be monitored periodically. The Council is alerted to
changes by Butlers (Treasury Management Consultant).
• If a counterparty’s or investment scheme’s rating is downgraded with the
result that it no longer meets the Council’s minimum criteria, the further
use of that counterparty/investment scheme as a new investment will be
• If a counterparty is upgraded so that it fulfils the Council’s criteria, it will
be included in the Counterpart List.
Investment balances/Liquidity of investments
6.7 Based on its cash flow forecasts, the Council anticipates its fund balances in
2005/06 to range between nil and £20m.
6.8 The minimum amount of its overall investments that the Council will hold in
short-term investments is nil.
6.9 Giving due consideration to the Council’s level of balances over the
next 3 years, the need for liquidity, its spending commitments and
provision for contingencies, the Council has determined that none of its overall
fund balances can be prudently committed to longer term investments (i.e.
those with a maturity exceeding a year).
Investments defined as capital expenditure
6.10 The acquisition of share capital or loan capital in any body corporate is defined
as capital expenditure under Section 16(2) of the Local Government Act 2003.
Such investments will have to be funded out of capital or revenue resources
and will be classified as ‘non-specified investments’.
6.11 A loan or grant by the Council to another body for capital expenditure by that
body is also deemed by regulation to be capital expenditure by this Council. It
is therefore important for the Council to clearly identify if the loan has been
made for policy reasons (e.g to the registered social landlord for the
construction/improvement of dwellings) or if it is an investment for treasury
management purposes. The latter will be governed by the framework set by the
Council for ‘specified’ and ‘non-specified’ investments.
Provisions for Credit-related losses
6.12 If any of the Council’s investments appeared at risk of loss due to default (i.e.
this is a credit-related loss, and not one resulting from a fall in price due to
movements in interest rates) the Council will make revenue provision of an
Investment Strategy to be followed in-house
6.13 Investment is restricted to Specified Investments (those which offer high
security and liquidity, are in sterling and have a maturity of less than 1 year) as
• U.K. Local Authorities, parish councils and community councils
• Central Government (NILO)
• Money Market Funds
• Building Societies
Non-specified investments will not be used.
6.14 This policy further restricts the above by limiting the bodies approved in 6.13
to those with “high credit rating”. “High” is defined as:
• AAA rating for Money Market Funds
• Long term rating of AA- and/or short term rating of F1/A1/P1 for Banks
and Building Societies
6.15 All other investments are defined as Non-Specified Investments and will not
be entered into without prior advice being sought from the Authority’s
Treasury Management Consultant (Butlers).
6.16 The Council does not employ external fund managers to manage the day to day
Treasury Management activities.
6.17 The money market yield curve is currently anticipating rising base rates in
2005/06. Investment maturities will generally be kept short (1-3 months), with
a view to enabling returns to be compounded more frequently.
End of year Investment Report
6.18 At the end of the financial year, the Council will prepare a report on its
investment activity as part of its Annual Treasury Report.
7.0 DELEGATED POWERS
The setting of borrowing limits and Prudential Indicators requires the
resolution of full Council.
7.2 Deputy Chief Executive and Director of Corporate Services
The Deputy Chief Executive and Director of Corporate Services’ delegated
powers in respect of Investments, Borrowing and Trust Funds are contained in
the Council’s Constitution under the Financial Procedure Rules which are
shown in Schedule C.
In practice most of the work is carried out by Officers of the Finance Division,
and a summary of the roles of the staff concerned is contained in Schedule B.
8.0 REVIEW AND REPORTING ARRANGEMENTS
8.1 An annual report will be made by the 30th September in the following
financial year. A monitoring report on treasury management activities will be
submitted to Cabinet 6 monthly.
ROLES OF FINANCE DEPARTMENT STAFF RELATING TO TREASURY
DEPUTY CHIEF EXECUTIVE AND DIRECTOR OF CORPORATE
1. Ensure policy documents exist and are adhered to, and that they are regularly
2. Ensure that a review of the Treasury Management function and its
performance takes place at least twice a year.
3. Report to Members, Cabinet and Council on performance and activities of
Treasury Management in accordance with the Treasury Management Policy
4. Ensure that there is a clear written statement of the responsibilities delegated to
each post and arrangements for absence cover.
ASSISTANT DIRECTOR OF CORPORATE SERVICES (FINANCE)
1. Deputise for the Deputy Chief Executive and Director of Corporate Services
in the performance of Treasury Management as required.
1. Prepare and review the Treasury Policy Statement, assure it is complied with,
and that this statement complies with the law.
2. Ensure that Treasury Management Practices exist.
3. Review performance of the Treasury Management function at least twice a
year and prepare monitoring reports and annual reports for the Deputy Chief
Executive and Director of Corporate Services/Cabinet/Council as required.
4. Ensure all persons engaged in Treasury Management activities receive
5. Ensure the organisation of the Treasury Management function is adequate to
meet current requirements.
6. Ensure that there is adequate internal checking and division of duties.
7. Ensure that all treasury staff are aware and given access to the Non-Investment
Products Code (NIPS).
8. Advise the Deputy Chief Executive and Director of Corporate Services on
BUSINESS MANAGER (FINANCIAL CONTROL)
Absence Cover: Senior Accountant (Corporate Services)
1. Manage the overall Treasury function.
2. Implement the Treasury Policy Statement.
3. Prepare and implement the Treasury Management Practices.
4. Ensure that the systems and procedures laid down in the Treasury Management
Practices are complied with, and that prescribed limits are not breached.
5. Ensure appropriate division of duties in this section.
6. Ensure credit worthiness of investment counter-parties.
7. Assess and appoint brokers, and monitor the performance of brokers
8. Review Treasury Management Practices i.e. borrowing limits, risk spreading,
data recording at least annually.
9. Receive reports from Loans Officer on a monthly basis on
- all loans transactions
- cashflow actuals and projections
- level of debt/investment
10. Produce performance reports for Chief Accountant.
11. Assist in the preparation of the Treasury Policy Statement.
12. Prepare an annual report on the Treasury Management function by 30th
September of the succeeding financial year.
Absence Cover: Senior Accountant (Corporate Services)
1. Prepare Cash Flow projections
2. Make daily decisions on funding, lending, acceptability of treasury
instruments, and consider legality of proposed action.
3. Dealing and initial record of deal
4. Transmission procedures
5. Comply with the Non-Investment Products Code (NIPS)
6. Provide the Business Manager (Financial Control) with a monthly report on:
- transactions made
- cash flow actuals and projects
- level of debt/investment
SENIOR ACCOUNTANT (CORPORATE SERVICES)
1. Provide absence cover for Business Manager (Financial Control)
2. Provide absence cover for Loans Officer
NB. The Senior Accountant should not deputise for both Business Manager
and Loans Officer at the same time.
As a further internal check the authorisation and approval of the
transmission of transactions to the bank will be performed by Business
Managers, Group Accountants and Senior Accountants outside the
Accountancy Loans Sub Section.
AUTHORISED SIGNATORY LIST
....................................................................... L. James
Deputy Chief Executive and Director of Corporate Services
....................................................................... A. Phillips
Assistant Director Finance
....................................................................... J . Smith
INVESTMENTS, BORROWINGS AND TRUST FUNDS
17.1This organisation adopts the key recommendations of CIPFA’s Treasury
Management in the Public Services: Code of Practice (the Code), as
described in section 4 of that Code.
17.2Accordingly, the organisation will create and maintain, as the cornerstone
for effective treasury management:
• A treasury management policy statement, stating the policies and
objectives of its treasury management activities
• Suitable Treasury Management Practices (TMP’s), setting out the
manner in which the organisation will seek to achieve those
policies and objectives, and prescribing how it will manage and
control those activities”.
17.3The content of the policy statement and TMP’s will follow the
recommendations contained in sections 6 and 7 of the Code, subject only to
amendment where necessary to reflect the particular circumstances of this
organisation. Such amendments will not result in the organisation
materially deviating from the Code’s key recommendations.
• This Council will receive reports on its treasury management
policies, practices and activities, including as a minimum, an
annual strategy and plan in advance of the year, and an annual
report after its close, in the form prescribed in its TMP’s.
• This Council delegates responsibility for the implementation and
monitoring of its treasury management policies and practices to
the Cabinet, and for the execution and administration of treasury
management decisions to the Chief Finance Officer, who will act
in accordance with the organisation’s policy statement and TMPs.
17.4All investments of money under its control shall be made in the name of
17.5 All investments and borrowing transactions shall be undertaken in
accordance with the Council’s Treasury Management Policy
17.6 The Chief Finance Officer shall report six monthly to the Cabinet
summarising his loan and investment activity and indicating their
compliance with any statutory or Council approved guidelines.
17.7 The Chief Financial Officer, or an agent nominated by the Chief
Finance Officer, will be the Council’s Registrar of loan instruments
and shall maintain records of all borrowing of money by the Council.
17.8 The Chief Financial Officer will have a duty to ensure a proper,
efficient and effective mix of borrowing and investments.