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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 07/12/2004
Treasury Management - Borrowing and Investment Transactions and Performance Measurement



Summary & Purpose
The purpose of this report is to summarise Waverley’s investment performance in accordance with Waverley’s Treasury Management Policy and the Code of Practice on Treasury Management in Local Authorities.

Quality of Life Implications
Natural Resource Use
Pollution Prevention and Control
Biodiversity and Nature
Local Environment
Social Inclusion
Safe Communities
Local Economy
Natural
Resource Use
Pollution
Prevention and Control
Biodiversity
and Nature
Local
Environment
Social
Inclusion
Safe, Healthy
and Active
Communities
Local
Economy
N/A
N/A
N/A
N/A
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APPENDIX FF
WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 7TH DECEMBER 2004

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Title:
TREASURY MANAGEMENT – BORROWING AND INVESTMENT
TRANSACTIONS AND PERFORMANCE MEASUREMENT
[Wards Affected: N/A]
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Summary and purpose:

The purpose of this report is to summarise Waverley’s investment performance in accordance with Waverley’s Treasury Management Policy and the Code of Practice on Treasury Management in Local Authorities.

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Quality of life implications – social, environmental & economic (sustainable development):

E-Government implications:

There are no e-government implications.

Resource and legal implications:

There are no direct resource implications and the financial areas are covered in the report.

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Introduction and Background

1. In September 2002, the Council approved Waverley’s Treasury Management Policy which was prepared in accordance with the revised Chartered Institute of Public Finance and Accounting (CIPFA) Code of Practice on Treasury Management in Local Authorities.

2. Included within the Policy was that regular reports on performance and transactions were to be prepared. This report shows the rate of return from the Council’s investments for the half-year ended 30th September 2004 and that rate of return has been measured against a predetermined base. A summary has also been prepared to show the total investment during the same half-yearly period.

Investments – Performance Measurement

3. The annual rate of return on the Council’s investments for the half year ended 30th September 2004 was 4.40%. Waverley’s criteria for comparative purposes is the London Inter-Bank Bid Rate (LIBID) seven-day rate. This has been calculated at 4.24%. This comparison is used as it gives a good indication of the average rates achieved in the investment market that is most relevant to Waverley’s investment activity.

4. For information, the Local Performance Indicator (LOBT3) which relates to investment performance is shown below:-

Full Description of PI
2002/2003
Actual
2003/2004
Target
2003/2004
Actual
2004/2005
Target
Average rate of return on the Council’s investments compared with the average seven-day LIBID rate (London Inter-Bank Bid Rate)
0.41% above the LIBID rate
0.60% above the LIBID rate
0.32% above the LIBID rate
0.50% above the LIBID rate

Investment Transactions

5. The analysis below shows the total transactions during the period 1st April 2004 to 30th September 2004 in respect of all external investments undertaken by the Council, together with balances outstanding as at 30th September 2004.

Investments

Balance at
1st April 2004

Total Lent


Total Repaid


Balance at 30th September 2004

Temporary
Investments
27,300,000
83,050,000
77,500,000
32,850,000

6. The temporary investments outstanding comprise 11,700,000 as specific investments (i.e. high credit rated banks and building societies) and 21,150,000 as non-specific investments (non-rated top 30 building societies and A rated UK banks).

Recommendation

It is recommended that the Executive notes the report.

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Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

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CONTACT OFFICER:

Name: Paul Wenham Telephone: 01483 523238

E-mail: pwenham@waverley.gov.uk

comms/executive/2004/2005/235