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Posted by: John Brace | 28th June 2011

Pension Committee 27/6/2011 – Part 5 – Representation on outside bodies, Treasury Management Annual Report

Peter Wallach introduced the next report regarding representation on outside bodies. Hr said the report was about the positions that councillors held on external bodies and that they had on occasion represented the fund regarding collaboration or best practice. It had been previously classed as an approved duty. Currently there were two councillor, the Chair (Cllr Geoffrey Watt) as an Executive Member of LAPFF and Cllr Ann McLachlan as the LGA Labour Group appointment
on the Local Government Pensions Committee.

It was recommended that both be approved and continue. This was agreed.

The committee considered the annual Treasury Management Report. An officer said it was an approved strategy, paragraph 4.5 dealt with counter-party risk. He said he was aware the base rate was at 0.5% so there was not much scope for making money. The report detailed three days (at 4.9) when the Fund had been non-compliant as they had more money with their own bankers than was allowed.

This had happened as a result of receiving income 24 hours before they were expecting it so they had exceeded the limit. However they got the best rate from the bank and this was corrected within 24 hours. At 4.10 they had also had more money than allowed due to a planned property purchases not completing on the scheduled dates. To keep liquidity and as they pay in full outright they had kept the money in the account. In accordance with procedure they had got the OK from the Fund’s Operating Group which met monthly. This was chaired by the Director Finance and reported to the Investment Monitoring Working Party.


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