Issue - meetings

Treasury Management - Mid Year Report 2014/15

Meeting: 10/12/2014 - Audit Committee (Item 39)

39 Treasury Management - Mid Year Report 2014/15 pdf icon PDF 185 KB

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That the draft Treasury Management Mid-Year Report 2014/15 be noted.


The Finance Manager - Technical Accountancy introduced an update on matters relating to the Council’s Treasury Management Policy, Strategy and Practices 2014/15 to the end of September 2014.  In summarising the key points, she stated that no new borrowing had taken place during the year and this was likely to be the case for the remainder of 2014/15.  She referred to the impact of both the Housing Revenue Account (HRA) subsidy reform (reported to Cabinet in November 2014) and the ‘bail-in’ provisions resulting from the EU Bank Recovery and Resolution Directive, both of which would be covered as part of the Treasury Management training session in January 2015.  In line with the usual practice, all Members had been invited to attend the training and suggestions for other topics to be included in the session were welcomed.


In response to a question from Councillor Haydn Bateman, the Finance Manager explained that investments with Money Market Funds were pooled.  Investments made with banks and building societies were normally for periods up to 12 months in line with the advice received, however there was potential to invest over a longer term to achieve a better rate, depending on the security of the counterparty.


Councillor Glyn Banks asked for clarification on the settlement payment to be paid by all stock-retaining councils to the Welsh Government (WG) to abolish the HRA Subsidy system.  The Finance Manager advised that the final amount for Flintshire (yet to be confirmed) would need to be borrowed from the Public Works Loans Board and that exiting the system would benefit the Council through the receipt of additional revenue each year to re-invest in stock.


The Chief Executive said that there would be no new risks to the HRA as a result of this action, which would benefit the Council, and that further detail would be shared with Members at the training session.


Following a question on investments made within smaller periods, the Finance Manager explained that decision-making on investments involved taking a measured view within the context of the Council’s changing cashflow requirements.




That the draft Treasury Management Mid-Year Report 2014/15 be noted.