APPENDIX E

CIPFA TREASURY MANAGEMENT CODE

1. The Council has formally adopted CIPFA’s Code of Practice on Treasury Management 2021 and complies with the requirements of the Code as detailed in this Appendix. There are no changes to the requirements formally adopted in the 2017 update with regard to reporting which are summarised below:

· Maintaining a Treasury Management Policy Statement setting out the policies and objectives of the Council’s treasury management activities.

· Maintaining a statement of Treasury Management Practices that sets out the manner in which the Council will seek to achieve these policies and objectives.

· Presenting the Full Council with an annual TMSS statement, including an annual investment strategy and Minimum Revenue Provision policy for the year ahead (this report) a half year review report and an annual report (stewardship report) covering compliance during the previous year.

· A statement of delegation for treasury management functions and for the execution and administration of statement treasury management decisions. (see below)

· Delegation of the role of scrutiny of treasury management activities and reports to a specific named body. At Spelthorne Borough Council this role is undertaken by the Corporate Policy and Resources Committee

Knowledge and Skills

2. The Council uses the knowledge and skills of its officers when considering treasury investment and borrowing decisions and where necessary it also relies on the expert knowledge of specialist external advisors.

3. Finance staff are professionally qualified to advise the Council on all areas of finance. Included within the team is an officer with specialist knowledge of treasury management. All finance staff undertake Continuous Professional Development and maintain knowledge and skills through regular technical updates from appropriate bodies and attending specialist courses. Staff follow the Treasury Management Practices approved by the interim Chief Executive.

4. A programme of training for members on Treasury Management is being developed and will be open to all Members to assist in their understanding of the treasury function during 2026/27.

Treasury management consultants

5. The Council uses Arlingclose Ltd as its external treasury management advisors in relation to conventional treasury management activities such as borrowing and placement of residual cash.

6. The Council recognises that responsibility for treasury management decisions remains with the organisation at all times and will ensure that undue reliance is not placed upon the services of our external service providers. All decisions will be undertaken with regards to all available information, including, but not solely, our treasury advisers.

7. It also recognises that there is value in employing external providers of treasury management services in order to acquire access to specialist skills and resources. The Council will ensure that the terms of their appointment and the methods by which their value will be assessed are properly agreed and documented and subjected to regular review.

8. The scope of investments within the Council’s operations currently includes both conventional treasury investments and more commercial type investments, such as investment properties.  An appropriately qualified and experienced in-house team is in place to manage investment properties and external specialist property advisors are being appointed to support the Council’s asset rationalisation plans.

Treasury Management Delegations and Responsibilities

9. The respective roles of the Council, Corporate Policy and Resources Committee and Section 151 officer are summarised below.  Further details are set out in the Treasury Management Practices.

(i) Full Council

· Approval of annual strategy, mid-year review and Annual Report

(ii) Interim Chief Executive (s151 Officer)

· approval of/amendments to the organisation’s adopted clauses, treasury management policy statement and treasury management practices;

· budget consideration and approval;

· approval of the division of responsibilities;

· receiving and reviewing regular monitoring reports and acting on recommendations;

· approving the selection of external service providers and agreeing terms of appointment.

(iii) Corporate Policy and Resources Committee with responsibility for scrutiny

· reviewing the treasury management policy and procedures and making recommendations to the responsible body.

THE TREASURY MANAGEMENT ROLE OF THE INTERIM CHIEF EXECUTIVE (SECTION 151 OFFICER)

The S151 (responsible) officer

· recommending clauses, treasury management policy/practices for approval, reviewing the same regularly, and monitoring compliance;

· submitting regular treasury management policy reports;

· submitting budgets and budget variations;

· receiving and reviewing management information reports;

· reviewing the performance of the treasury management function;

· ensuring the adequacy of treasury management resources and skills, and the effective division of responsibilities within the treasury management function;

· ensuring the adequacy of internal audit, and liaising with external audit;

· recommending the appointment of external service providers.