Agenda item 4 - MTFS (Final) Cab 070213 , item 9. PDF 1 MB

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9. Adoption of the CIPFA Treasury Management Code: 9.1 This indicator demonstrates that the Council has adopted the principles of best practice. Adoption of the CIPFA Code of Practice in Treasury Management The Council approved the adoption of the CIPFA Treasury Management Code at its Council meeting on 24th February 2010*. *The Council has incorporated the changes from the revised CIPFA Code of Practice (published November 2011) into its treasury policies, procedures and practices. 10. Upper Limits for Fixed Interest Rate Exposure and Variable Interest Rate Exposure: 10.1 These indicators allow the Council to manage the extent to which it is exposed to changes in interest rates. This Council calculates these limits on net principal outstanding sums, (i.e. fixed rate debt net of fixed rate investments). 10.2 The upper limit for variable rate exposure has been set to ensure that the Council is not exposed to interest rate rises which could adversely impact on the revenue budget. The limit allows for the use of variable rate debt to offset exposure to changes in short-term rates on investments. 10.3 The limits above provide the necessary flexibility within which decisions will be made for drawing down new loans on a fixed or variable rate basis; the decisions will ultimately be determined by expectations of anticipated interest rate movements as set out in the Council’s treasury management strategy. 10.4 The Council’s existing level (on internal investments) of fixed interest rate exposure is 80% and variable rate exposure is 20%. Upper limit for Fixed Interest Rate exposure Upper limit for Variable Interest rate exposure 2012/13 Approved £m 2012/13 Revised £m 2013/14 Estimate £m 2014/15 Estimate £m 2015/16 Estimate £m 450.0 450.0 450.0 450.0 450.0 200.0 200.0 200.0 200.0 200.0 11. Maturity Structure of Fixed Rate borrowing: 11.1 This indicator highlights the existence of any large concentrations of fixed rate debt needing to be replaced at times of uncertainty over interest rates and is designed to protect against excessive exposures to interest rate changes in any one period, in particular in the course of the next ten years. 11.2 It is calculated as the amount of projected borrowing that is fixed rate maturing in each period as a percentage of total projected borrowing that is fixed rate. The maturity of borrowing is determined by reference to the earliest date on which the lender can require payment. 87
Maturity Structure of fixed rate borrowing Existing level at 31/03/2012 % Lower Limit for 2013/14 % Upper Limit for 2013/14 % Under 12 months 11.0 0 25 12 to 24 months 3.0 0 25 2 to 5 years 4.4 0 50 5 to 10 years 18.9 0 75 10 to 20 years 15.7 0 100 20 to 30 years 11.9 0 100 30 to 40 years 26.0 0 100 40 to 50 years 9.1 0 100 More than 50 years 0.0 0 100 Note that LOBO’s are included in the table above at earliest call date and not at maturity. 12. Credit Risk: 12.1 The Council considers security, liquidity and yield, in that order, when making investment decisions. 12.2 Credit ratings remain an important element of assessing credit risk, but they are not a sole feature in the Council’s assessment of counterparty credit risk. 12.3 The Council also considers alternative assessments of credit strength, and information on corporate developments of and market sentiment towards counterparties. The following key tools are used to assess credit risk: • Published credit ratings of the financial institution (minimum A- or equivalent) and its sovereign (minimum AA+ or equivalent for non-UK sovereigns); • Sovereign support mechanisms; • Credit default swaps (where quoted); • Share prices (where available); • Economic fundamentals, such as a country’s net debt as a percentage of its GDP); • Corporate developments, news, articles, markets sentiment and momentum; • Subjective overlay. 12.4 The only indicators with prescriptive values remain to be credit ratings. Other indicators of creditworthiness are considered in relative rather than absolute terms. 13. Upper Limit for total principal sums invested over 364 days: 13.1 The purpose of this limit is to contain exposure to the possibility of loss that may arise as a result of the Council having to seek early repayment of the sums invested. Upper Limit for total principal sums invested over 364 days 2012/13 Approved £m 2012/13 Revised £m 2013/14 Estimate £m 2014/15 Estimate £m 2015/16 Estimate £m 30.0 30.0 30.0 30.0 30.0 88
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Gloucestershire County Council Medi
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7 The capital budget strategy refle
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This will then provide a further £
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The draft budget was also considere
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for non Academy Schools. These amou
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• Providing the basics - In the c
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(1) The budget provides for contrac
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Any increase in a school’s depriv
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In the future there is a risk that
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40 Council’s financial standing a
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2014/15 2015/16 £m £m Budget 420.
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Entry’ approval had been given, w
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escheduling, and investments. • P
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ANNEX 1.1 : COMMISSIONING INTENTION
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Delivering Change Achieving improve
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Currently an estimated 38,000 older
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ANNEX 1.3: COMMISSIONING INTENTIONS
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Looking Forward Some of the changes
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Page 54 and 55: Proposed cost reductions as part of
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Page 58 and 59: Forward Planning 2013/14 to 2015/16
Page 60 and 61: Revenue Outturn 2012/13 : Forecast
Page 62 and 63: • The Learning Disabilities Exter
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Page 68 and 69: Academies. Such adjustments will be
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Page 100 and 101: ANNEX 11 RISK MANAGEMENT STRATEGY 2
Page 102 and 103: Risk Management Policy Statement Gl
Page 104 and 105: What are our Strategic Risk Managem
Page 106 and 107: Appendix 1 - Risk Management Accoun
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Agenda item 4 - MTFS (Final) Cab 070213 , item 9. PDF 1 MB

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