Agenda item

Consideration was given to a report of the Director of Finance which provided details of the Treasury Management Review for 2019/20.

The Council was required by regulations issued under the Local Government Act 2003 to produce an annual treasury management review of activities and the actual prudential and treasury indicators for 2019/20.  This 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 2019/20 the minimum reporting requirements were that the full Council should receive the following reports:

·         An annual treasury strategy in advance of the year (approved 27 February 2019);

·         A mid-year (minimum) treasury update report (approved 8 January 2020); and

·         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 that it had complied with the requirements under the Code to give prior scrutiny to the treasury strategy and the mid-year update.  The Audit Committee was charged with the scrutiny of treasury management activities in Oldham and reviewed the content of this annual report at its meeting on 21^st July 2020 and commended the report to Cabinet.  The report was considered by Cabinet at tis meeting on 24^th August 2020 and commended the report to Council.  Approval of the report by Council would ensure full compliance with the Code for 2019/20.

During 2019/20, the Council had complied with its legislative and regulatory requirements.  The key actual prudential and treasury indicators with detailed the impact of capital expenditure activities during the year with comparators was outlined in the report.  The actual capital expenditure was less than the revised budget estimate for 2019/20 presented within the 2020/21 Treasury Management Strategy report considered at the Council meeting held on 26 February 2020.  The outturn position was significantly less than the £84.332m original capital budget for 2019/20 as approved at Budget Council on 27 February 2019.

The Capital Programme had seen substantial rephasing.  A number of major schemes including a number of schools’ schemes in the Children’s Service Directorate were rephased.  The Asset Management (Education) Essential Condition Works provision was realigned into future years to align with other works being undertaken at schools.  Housing Revenue Account (HRA) schemes were rephased into 2020/21 to align with the latest HRA Strategy.  In addition, the ‘Creating a Better Place’ Strategy required a number of existing regeneration projects to be reviewed and rephased to align to the long-term vision of the strategy.  Also, during the year, the Information Technology (IT) Capital Strategy, the Strategic Roadmap was reviewed.  The outcome was a rephasing of resources to ensure that the Council’s future IT offer took account of new innovations in IT and created efficiencies that would complement future ways of working.

Borrowing of £20m was undertaken during the year.  Member training on treasury management issues was undertaken on 1 October 2019 in order to support Members and senior members of staff in their scrutiny role.

Other prudential and treasury indicators were to found in the main body of the report. 

The Director of Finance confirmed that the statutory borrowing limit (the authorised limit) was not breached.  The financial year 2019/20 continued the investment environment of previous years, namely low investment returns.

RESOLVED that:

1.         The actual 2019/20 Prudential and Treasury Indicators presented in the report be approved.

2.         The Annual Treasury Management Report for 2019/20 be approved.