{"document":{"created_at":"2009-07-09T16:15:38Z","document_owner_type":"Meeting","title":["Minutes for Audit Committee meeting, Nov 13 2008, 5.45PM","Minutes for Audit Committee meeting, Nov 13 2008, 5.45PM"],"body":"
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Venue: The Guildhall, Westgate, Canterbury. View directions

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Contact: Bob Bennett  \n\t\t01227 862 003\n\t\t\n\t\t

\n\t\t\nItems\n\t\t\nNo.\n\t\t\tItem\n\t\t\n\n

482.

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Apologies for absence

\n

Minutes:

\n
\n
\n

Apologies for absence were submitted from\nCouncillors Ellis and Vye.

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483.

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Members' Interest

\n
\n
\n

If any Members have any interest in any item\non the agenda, they are invited to declare the nature thereof, ie\npersonal or prejudicial, when the relevant item is considered by\nthe Committee.

\n
\n
\n

Minutes:

\n
\n
\n

In accordance with the Code of Conduct for\nMembers:

\n

 

\n

Councillor Mrs Doyle declared a personal\ninterest as her son was employed by the Royal Bank of Scotland.

\n

 

\n

Councillor Matthews declared a personal\ninterest as he knew two people who worked for the Kent Reliance\nBuilding Society.

\n
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484.

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Public Participation at Meetings

\n
\n
\n

TO RECEIVE representations

\n
\n
\n

Minutes:

\n
\n
\n

No representations had been received.

\n
\n
\n\t\t\t\t\t\n\t\t\n\n

485.

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Treasury Management Review- Revised Investment Strategy PDF 288 KB

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\n
\n

TO CONSIDER the report of the Director of\nCorporate Services

\n
\n
\n

Minutes:

\n
\n
\n

The Committee received a report from the\nDirector of Corporate Services, which provided details of the\ncouncil’s investments, and the process followed for investing\nfunds.  The report also\nreferred to loans lodged with two Icelandic banks and their UK\nsubsidiaries.  Finally,\nthe report reviewed the annual investments strategy and set out a\nnumber of options for changing that strategy.

\n

 

\n

In stressing the importance of this matter the\nDirector of Corporate Services took the Committee through his\nreport in detail with particular reference to:

\n

 

\n
    \n
  • The current global\nbanking crisis.
    • \n
  • How the council had\naccumulated funds to invest (through property sales, reserve funds,\nhousing revenue account balance, general fund balance and\ncashflow).
    • \n
  • Credit ratings and\nhow the council used them in the investments strategy.
    • \n
  • The key elements of\nthe council’s investments strategy, including the process\nfollowed and how deals were done and how funds were redeemed.
    • \n
  • The council’s\ncurrent and past investments with banks and building\nsocieties.
    • \n
  • The £6m\ninvested with Icelandic banks and action taken since their\nfailure.
    • \n
  • Implications on the\ncouncil’s budgets with particular reference to the loss of\ninterest.
    • \n
  • What could have\nbeen done to protect the council’s funds?
    • \n
  • Steps to be taken\nin future.
    • \n
\n

 

\n

The report concluded that the council should\nnot cease to invest in banks and building societies because, as the\nPrime Minister had said, the world needed a secure banking system\nand the impact on the council of investing in the Debt Management\nAccount would be a substantial reduction in interest which in turn\nwould lead to further cuts in services.  The Director of Corporate\nServices referred to the seven options set out in his report and\nadvised that it would be necessary for the Committee to consider\nthese options and advise the Executive accordingly on the way\nforward.

\n

 

\n

He further added that it was proposed to\nintroduce more frequent reporting to Members on the investment\nportfolio.

\n

 

\n

Members then commented on the report taking\ninto account the seven options in it regarding the future\ninvestment strategy.

\n

 

\n

The general view was that there was little\npoint looking back but it was necessary to ensure that the\ninvestment of the council’s funds was protected.  Some Members supported option C\nin the report others supported option F in the report. Option C\nwould have a “cost” to the revenue account whilst\nOption F would carry more risk but with a reduced\n“cost” to the revenue account.

\n

 

\n

At this point in the meeting, Richard Bason,\nRegional Director of SECTOR, the council’s treasury\nmanagement advisers, briefed the Committee on how money market\nfunds operated and explained the workings of SECTOR.  He stressed that SECTOR was a\nconduit for credit rating agencies.  He also reported that SECTOR\ncould only set a framework for investments and that it was the city\ncouncil who took the decisions on investment counterparties.

\n

 

\n

RESOLVED –

\n

 

\n

(a)       That\nthe following options be referred to the Executive for\nconsideration:

\n

 

\n

\ni)                  \nInvest only in two AAA/MR1+ Money Market Funds and a call\naccount.

\n

 

\n

\nThe difference in interest rates between  ...  \nview the full minutes text for item 485.

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","document_owner_id":6709,"updated_at":"2010-04-23T15:55:46Z","url":"http://www2.canterbury.gov.uk/committee/ieListDocuments.asp?CId=127&MId=6091&Ver=4","id":6304,"raw_body":"
\n\n\n\n
\n\t\t\t\t\t\t

Venue: The Guildhall, Westgate, Canterbury. View directions

\n\t\t

Contact: Bob Bennett  \n\t\t01227 862 003\n\t\t\n\t\t

\n\t\t\n\n\t\t\n\n\t\t\t\n\t\t\n\n\n\t\t\t\t\n\t\t\n\t\t\n\n\n\t\t\t\t\n\t\t\n\t\t\n\n\n\t\t\t\t\n\t\t\n\t\t\n\n\n\t\t\t\t\n\t\t\n\t\t\n
Items
No.Item

482.

\t\t\t\n\t\t\t\t\t

Apologies for absence

\n

Minutes:

\n
\n
\n

Apologies for absence were submitted from\nCouncillors Ellis and Vye.

\n
\n
\n\t\t\t\t\t

483.

\t\t\t\n\t\t\t\t\t

Members' Interest

\n
\n
\n

If any Members have any interest in any item\non the agenda, they are invited to declare the nature thereof, ie\npersonal or prejudicial, when the relevant item is considered by\nthe Committee.

\n
\n
\n

Minutes:

\n
\n
\n

In accordance with the Code of Conduct for\nMembers:

\n

 

\n

Councillor Mrs Doyle declared a personal\ninterest as her son was employed by the Royal Bank of Scotland.

\n

 

\n

Councillor Matthews declared a personal\ninterest as he knew two people who worked for the Kent Reliance\nBuilding Society.

\n
\n
\n\t\t\t\t\t

484.

\t\t\t\n\t\t\t\t\t

Public Participation at Meetings

\n
\n
\n

TO RECEIVE representations

\n
\n
\n

Minutes:

\n
\n
\n

No representations had been received.

\n
\n
\n\t\t\t\t\t

485.

\t\t\t\n\t\t\n\t\t\t\t\t

Treasury Management Review- Revised Investment Strategy \"pdf PDF 288 KB

\n
\n
\n

TO CONSIDER the report of the Director of\nCorporate Services

\n
\n
\n

Minutes:

\n
\n
\n

The Committee received a report from the\nDirector of Corporate Services, which provided details of the\ncouncil’s investments, and the process followed for investing\nfunds.  The report also\nreferred to loans lodged with two Icelandic banks and their UK\nsubsidiaries.  Finally,\nthe report reviewed the annual investments strategy and set out a\nnumber of options for changing that strategy.

\n

 

\n

In stressing the importance of this matter the\nDirector of Corporate Services took the Committee through his\nreport in detail with particular reference to:

\n

 

\n
    \n
  • The current global\nbanking crisis.
    • \n
  • How the council had\naccumulated funds to invest (through property sales, reserve funds,\nhousing revenue account balance, general fund balance and\ncashflow).
    • \n
  • Credit ratings and\nhow the council used them in the investments strategy.
    • \n
  • The key elements of\nthe council’s investments strategy, including the process\nfollowed and how deals were done and how funds were redeemed.
    • \n
  • The council’s\ncurrent and past investments with banks and building\nsocieties.
    • \n
  • The £6m\ninvested with Icelandic banks and action taken since their\nfailure.
    • \n
  • Implications on the\ncouncil’s budgets with particular reference to the loss of\ninterest.
    • \n
  • What could have\nbeen done to protect the council’s funds?
    • \n
  • Steps to be taken\nin future.
    • \n
\n

 

\n

The report concluded that the council should\nnot cease to invest in banks and building societies because, as the\nPrime Minister had said, the world needed a secure banking system\nand the impact on the council of investing in the Debt Management\nAccount would be a substantial reduction in interest which in turn\nwould lead to further cuts in services.  The Director of Corporate\nServices referred to the seven options set out in his report and\nadvised that it would be necessary for the Committee to consider\nthese options and advise the Executive accordingly on the way\nforward.

\n

 

\n

He further added that it was proposed to\nintroduce more frequent reporting to Members on the investment\nportfolio.

\n

 

\n

Members then commented on the report taking\ninto account the seven options in it regarding the future\ninvestment strategy.

\n

 

\n

The general view was that there was little\npoint looking back but it was necessary to ensure that the\ninvestment of the council’s funds was protected.  Some Members supported option C\nin the report others supported option F in the report. Option C\nwould have a “cost” to the revenue account whilst\nOption F would carry more risk but with a reduced\n“cost” to the revenue account.

\n

 

\n

At this point in the meeting, Richard Bason,\nRegional Director of SECTOR, the council’s treasury\nmanagement advisers, briefed the Committee on how money market\nfunds operated and explained the workings of SECTOR.  He stressed that SECTOR was a\nconduit for credit rating agencies.  He also reported that SECTOR\ncould only set a framework for investments and that it was the city\ncouncil who took the decisions on investment counterparties.

\n

 

\n

RESOLVED –

\n

 

\n

(a)       That\nthe following options be referred to the Executive for\nconsideration:

\n

 

\n

\ni)                  \nInvest only in two AAA/MR1+ Money Market Funds and a call\naccount.

\n

 

\n

\nThe difference in interest rates between  ...  \nview the full minutes text for item 485.

\n
\n
\n\t\t\t\t\t
\n
\t\n
\t\n
","openlylocal_url":"http://openlylocal.com/documents/6304-Minutes-for-Audit-Committee-meeting-Nov-13-2008-5-45PM","document_type":"Minutes","precis":"\nAttendance Details\nAgenda Frontsheet\n PDF 68 KB \nAgenda reports pack\n PDF 360 KB \nPrinted minutes\n PDF 69 KB \n \nVenue: The Guildhall, Westgate, Canterbury. View directions\nContact: Bob Bennett  \n01227 862 003\nItems\nNo.\nItem\n482.\nApologies for absence\nMinutes:\nApologies for absence were submitted from\nCouncillors Ellis and Vye.\n483.\nMembers' Interest\nIf any Members have any interest in any item\non the agenda, they are invited to declare the nature thereof, ie\npersonal or prejudicial, wh...","status":null}}