Agenda item

Mr Chard and Ms McMullan were present for this item.

An addendum report relating to the Council’s treasury management function had been tabled for Members’ consideration.  Mr Simmonds summarised the debate at the Budget IMG and explained that the discussions around treasury management had been superseded by the tabled paper which contained a proposal from the Leader of the Council – that an Advisory Group should be formed. 

Mr Smyth explained to the Committee that he supported the original proposal of the Budget IMG that treasury management would be scrutinised by the Budget IMG on a quarterly basis, it was a dynamic and useful way of involving Members in the treasury management process.   The proposal within the addendum report was to create a sub committee of the Cabinet and Mr Smyth had concerns that this group would not have the degree of detachment that a group dealing with treasury management should have.  In his opinion it was an inferior proposal to the recommendation of the Budget IMG.  Mr Simmonds considered that it was right that the Cabinet was aware of the Council’s actions regarding treasury management at the earliest opportunity, but that the proposal did not preclude the Budget IMG being involved.  Mrs Dean explained that she did not agree with the recommendations of the Budget IMG, her preference was for this role to be undertaken by the Governance and Audit Committee.  Mrs Dean requested that in relation to the membership of the proposed Treasury Advisory Group, group Leaders had the flexibility to nominate Members onto the group with special expertise.  She also requested that the minutes of the meetings of the Treasury Advisory Group be reported to the Governance and Audit Committee and the Budget IMG as a matter of course. 

Mrs Dean stated that her understanding was that the Audit Commission stated that reports should at least go to the Governance and Audit Committee, which did not happen at KCC.  Ms McMullan clarified that reports did go to the Governance and Audit Committee and KCC did comply with all the best practice guidelines.  The Treasury Advisory Group was vital for pre-scrutiny in a private and confidential setting.  The Governance and Audit Committee was a webcast meeting so the information that was able to be shared would be more restricted.

Mr Chard stated that he supported the proposal within the addendum report and he was relaxed about the membership of the Treasury Advisory Group. 

Mr Northey asked that the options paper relating to the POCs involvement in the budget setting process and the paper detailing the locations of all cash deposits be circulated to all Members of the Committee – this was agreed by the Committee.

The Cabinet Scrutiny Committee endorsed the Leader’s proposal that a Treasury Advisory Group (TAG) be set up with the following conditions:

1. The minutes of the TAG be sent to the Governance and Audit Committee and the Budget IMG for discussion;

2. Where appropriate, group leaders be allowed flexibility on membership of the group to take advantage of Members with expertise.