Agenda item

Councillor Jabbar MOVED and Councillor Fielding SECONDED a report of the Director of Finance on the Treasury Management Review for 2018/19.  The report had been commended to Council by Cabinet at its meeting held on 22^nd July 2019.

The Council was required by regulations issued under the Local Government Act 2003 to produce an annual review of treasury management activities together with the actual prudential and treasury indicators for 2018/19.  The report met the requirements of both the CIPFA Code of Practice on Treasury Management (The Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (The Prudential Code).

During 2018/19 the minimum reporting requirements were that full Council should receive the following reports:

·         An annual treasury strategy in advance of the year (approved 28 February 2018)

·         A mid-year (minimum) treasury update report (approved 12 December 2018)

·         An annual review following the end of the year describing the activity compared to the strategy (this report).

The regulatory environment placed responsibility on members for the review and scrutiny of treasury management policy and activities.  The report was, therefore, important in that respect as it provided details of the outturn position for treasury activities and highlighted compliance with the Council’s policies previously approved by Members.

The Council confirmed it had complied with the requirements under the Code to vie prior scrutiny to all of the above treasury management reports.  The Audit Committee was charged with the scrutiny of treasury management activities in Oldham and was, therefore, requested to review the content of the report prior to its consideration by Cabinet and Council.  A programme of Treasury Management training had been developed in conjunction with Link Asset Services, the Council’s Treasury Management advisors and a session for leading Members and senior officers had already been delivered and further training was arranged to assist Members of the Audit Committee with their scrutiny role.

The Audit Committee had scrutinised the Treasury Management Review at its meeting on 25^th June 2019.  In addition, the report had also been presented to and approved by Cabinet at its meeting on 22^nd July 2019.  Both the Audit Committee and Cabinet were content to commend the report to Council.

During 2018/19, the Council complied with its legislative and regulatory requirements.  The key actual prudential and treasury indicators, which detailed the impact of capital expenditure activities during the year were detailed in the report.  The actual capital expenditure was less than the revised budget estimate for 2018/19 presented within the 2019/20 Treasury Management Strategy report considered at the Council meeting on 27 February 2019.

The outturn position was significantly less than the £8.658m original capital budget for 2018/19 as approved at Budget Council on 28 February 2018.  During the course of the year, the Capital Programme saw substantial rephrasing.  A number of major schemes including the Eastern Gateway Improvement Regeneration scheme and the Coliseum Theatre project were re-phased or re-aligned into future years to allow for either a review of the scheme to be undertaken (as was the case with the theatre project) or to align with revised project timelines.  The planned expenditure had therefore been reprofiled int 2019/20 and future years.

No borrowing had been undertaken during the year.  This was because of the policy of self-financing which was utilised due to the uncertainty around interest rates and the availability of cash, caused the Council to use cash reserves rather than incur additional borrowing costs.  Other prudential and treasury indicators were to be found in the report.  The Director of Finance also confirmed that the statutory borrowing limit (the Authorised Limit) had not been breached.

The financial year 2018/19 continued the challenging investment environment of previous years, namely low investment returns.

In moving the report, Councillor Jabbar informed the meeting that Oldham was the first local authority to close their 2018/19 Final Accounts in the country.  Councillor Jabbar thanked the Senior Management Team and the Director of Finance and her team on their hard work.

Councillor C. Gloster spoke on the report and reiterated the comments of Councillor Jabbar.

RESOLVED that:

1.         The actual 2018/19 prudential and treasury indicators presented in Treasury Management Review 2018/19 be approved.

2.         The Annual Treasury Management Review report for 2018/19 be approved.