Treasury Management Strategy and practices
The Council's treasury activities are governed by CIPFA's Code of Practice for Treasury Management in the Public Services.
Treasury Management is defined as 'the management of the organisation's cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.'
The need for sound treasury management was given added impetus by the introduction of the Prudential Code for financing capital projects, to which the Council also adheres as it sets its prudential indicators each year.
In accordance with the Treasury Management Code and the Prudential Code, the Council maintains an annual review of its
- Treasury Management Strategy
- Treasury Management Practices
The Council receives regular reports on Treasury Management activity through the monthly Financial Monitoring reports which are submitted to Cabinet meetings.
Through the Constitution and its Treasury Management Practices, the organisation has delegated responsibility for the implementation and monitoring of its treasury management policies and practices to the Head of Finance.
Treasury Management Practices
The CIPFA Treasury Management Code shows a marked shift in emphasis, with risk management at the top of issues to be addressed in each authority's statements on treasury management practices.
In accordance with the Code requirements, the issues on which the Council has adopted treasury management practices are:
- risk management;
- best value and performance measurement;
- decision-making and analysis;
- approved instruments, methods and techniques;
- organisation, clarity and segregation of responsibility and dealing arrangements;
- budgeting, accounting and audit arrangements;
- cash and cash flow management;
- money laundering;
- staff training and qualifications;
- the use of external service providers;
- corporate governance.