Finance

Council Investments

The Council can confirm that it is not exposed by the failure of the Icelandic banks, and no funds have ever been placed with these institutions.

At present the Council has £24m of investments with banks and financial institutions. The investment strategy is set each year to ensure the security of the capital sum and to maintain liquidity. This means that the Council does not make investments which may return high levels of interest, but have high levels of risk. As a result of this strategy its funds are placed only with very highly rated banks and financial institutions. The funds invested produce an annual income that enable the Council to keep Council Tax lower than it would otherwise have to be, without a reduction in services.

As the crisis in the money market has intensified, the Council has progressively restricted investments to the highest rated institutions and in recent days investments have only been placed with central government through the Debt Management Office, and are therefore 100% guaranteed. Although the interest rates are less than some money market rates the Council considers that in these uncertain times, only the most secure institution should be used for Council's funds.

We also set a maximum level of investment with any one institution. Providing they continue to meet the Council's minimum credit rating requirement, a maximum of £4m can be invested with an individual bank or building society. In the light of the current difficulties and the takeover of various banks we are reviewing these limits to ensure that we remain within the strategy.

The Council is in daily contact with a leading independent treasury advisor, a company called Arlingclose, who are available for advice and provide detailed knowledge and guidance on the issues of the day. They are fully aware of the Council's policies and advise accordingly.

The Council will continue to undertake prudent treasury management on behalf of the people of North Norfolk.

Functions

The Finance section provides financial and accounting information and advice to Members and officers of the Council.

The main functions of the section are as follows:

• To prepare and monitor the Council's Revenue and Capital Budgets
• Forward Financial Planning
• Production of the Financial Plan and Budget Book
• Provision of financial information and support to Service/budget managers
• Close the Council's Accounts and production of the Financial Statements and report to Members through Cabinet and Scrutiny Committees
• Maintain and develop the Council's financial information system (Efinancials)
• Provide general adhoc financial advice
• Provide technical advice on VAT and legislative changes.
• Treasury Management - Invest the Council's cash balances and manage the Council's debt portfolio.

The Treasury Management Strategy sets out details of the Council's treasury management activities and presents a strategy for the prudent investment of the Council's surplus funds. Download the Treasury Management Strategy here.

The areas covered by Finance include the following:

• Financial accounting
• Management accounting
• Creditors
• Cashiering service

It is important to the council that the summary financial information provided meets the needs of our stakeholders, as it regards both content and available formats. If you have any comments in relation to any of the financial information provided and how it could be improved upon please contact Karen Sly at Karen.Sly@north-norfolk.gov.uk'.

Useful contacts:

Sheila Oxtoby - Strategic Director - Resources
01263 516077
email: sheila.oxtoby@north-norfolk.gov.uk

Francis Harmer - Chief Technical Accountant
01263 516083
email: francis.harmer@north-norfolk.gov.uk

Karen Sly - Financial Services Manager
01263 516243
email: karen.sly@north-norfolk.gov.uk

Address:

The Finance section is based at the Council Offices in Cromer:

Finance
North Norfolk District Council
Council Offices
Holt Road
Cromer
Norfolk
NR27 9EN
Tel: (01263) 513811
Fax:(01263) 515042