Agenda item

(Copy herewith)

LGSS Finance Manager presented the report and elaborated thereon. It was advised that the  draft  Treasury  Management  Strategy  for  2016-17  was put before  Audit Committee for review andto inviteAuditCommitteeto putforwardany recommendations thattheythinkappropriate. P.50 of the report was referred to outlining the main changes.

·         Updates to PrudentialandTreasuryIndicators

·         Updates to interestrateforecasts

·         Updates to debtfinancingbudgetforecasts

·         Updates to theMRP policy

·         Expansion oftheCouncil’scounterpartypolicytoinclude appropriate counterparties witha sovereignratingofAA.

·         Re-wordingofthe50%restrictionon overseas counterpartiestotake out MoneyMarketFunds andinstantaccessdeposit accounts

It was also advised that the investment counterparty limits were set out on P.91 of the report.

In response to questions from the Committee regarding the possibility of adding human rights records as a sovereign counterparty criteria alongside credit ratings and financial risk the Chief Finance Officer responded by explaining that proceeding down the ethical route would be a large shift in the policy determining which counterparties the Council invest with, but the committee are welcome to make recommendations to be considered by Council and Cabinet.

The Finance Manager advised that, aside from the UK, at very few investments had been made during the current year with the AA+ countries listed on p.88 of the report.

RESOLVED

ThatAudit Committee reviewedthe draftTreasuryManagementStrategyfor 2016-17.