Issue - meetings

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Report of Head of Finance

Summary

This report details the actual return on investments for the quarter to September 2009, details the counterparties that have been used for investments and considers compliance with the investment strategy.

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

1)                 Note the contents of the report and performance to date.

2)                 Note the procurement process and timetable for the retender of the treasury management advisory contract.

The Committee considered a report of the Head of Finance detailing the actual return on investments for the period to September 2009, the counterparties that have been used for investments and considered compliance with the investment strategy.

The Head of Finance reminded Members that as part of the Council’s Investment Strategy the Committee had responsibility for considering the investment performance to date and the Council’s compliance with counterparties being used. They would be reported to the Committee on a quarterly basis. The Committee was advised that the performance for the first six months of the financial year was on a cumulative basis. It showed that performance was in line with expectations and within tolerances.

In response to Members’ questions regarding the Council’s investment in Iceland, the Head of Finance advised the Committee that the Council had submitted its claim in relation to its investments with the failed Icelandic Bank Glitner and that this was currently being reviewed by the legal firm Bevan Britten. She informed the Committee that the administration committee of Glitner Bank would meet in December 2009 to review all claims. 

The Head of Finance reported that the Council’s contract for treasury advice had expired and that Officers were currently preparing to re-tender to ensure that a new contract was in place for 1 April 2010. She informed the Committee that discussions were underway with neighbouring authorities on a joint procurement process and a further report would be submitted to the Committee’s December meeting outlining the process.

Resolved

1)                 That the contents of the report on treasury management performance and the performance to date be noted.

2)                 That the procurement process and timetable for the retender of the treasury management advisory contract be noted and Officers be requested to bring an update report to the Committee’s December meeting.