Agenda item

Introduction to include a 10 minute refresher

(Copy herewith)

The Finance Manager submitted a report, which appended a draft report to Cabinet to be submitted on the 23^rd February 2011 and invited the Audit Committee to put forward any further recommendations. It was noted that the report was produced annually to cover a three-year period but the main focus of the report should be scrutinizing Annex E and F of the appendices, as they were specific to the Borough Council.

It was reported that with regards to Capital Finance, the Borough would be looking to internally finance rather than externally; i.e. the Council would use its own cash flow, as long term borrowing rates remained high and by doing this would equate to better value for money and the risks would be lessened.

The policies for the management of counterparties had not changed and Annex H listed the Counterparties that met Northampton Borough Councils investment criteria for 2011/12. In response to a question asked by Councillor Yates, it was explained that whilst the list contained over 60 banks meeting the NBC criteria, not all of those listed would be willing to accept the money and some set their deposit investment rates at different rates and therefore it would be necessary to shop around for the best deal.

The Director of Finance and Support explained that the Treasury Management Strategy reflected the overall view of the market and the risks that were posed. It was advised that the Council play safe, but that there would be an increase in flexibility.  I.e. as outlined above the use of internal funds would minimise budget requirements, with emphasis being placed on the cash flow and not the reserves. The Director of Finance and Support informed the Committee that some money was invested by the Council overseas, but that all the money that was borrowed came through the public loans board.

RESOLVED:

That any changes to the report would be delegated to the Director of Finance and Support and the Portfolio Holder for Finance.