/ Parish Council / Finance Sub Committee / Agenda 2nd September 2020



CREECH ST MICHAEL PARISH COUNCIL

A G E N D A for the Meeting of Creech St Michael Parish Council

Finance Sub Committee

on 2nd September 2020 at 7pm





1. Welcome.


2. To receive any apologies for absence.


3. Declarations of Interests. Declarations of Individual Members.


4. Minutes – to approve the Minutes of the meeting held on 3rd July 2020.



5. Matters arising from the Minutes of the meeting held on 3rd July 2020.


6. Accounts (2020/2021). Review of budget following the 1st Qtr. Reconciliation and report attached.

RFO to report on cashflow Rec Park Improvement work.


7. Banking. To review arrangements and to consider options to opening a Deposit account. See enclosed report.


8. External Audit (2019/2020 Accs). To receive the written report of the Ext Auditor if completed in time.


9. Financial Controls. To review (see attached document).


10. Risk Assessment of Assets. To consider and agree the approach to the Annual Risk Assessment of Assets.


11. National Pay Award. To accept the National Pay Award agreed by the Nat Joint Council (details separately circulated).


12. Dates of next meeting/s; To agree


(to be held on Zoom or in the Cartwright Room of CSM Village Hall if permitted).





Steve Altria, Clerk to Creech St Michael Parish Council 01823 666295. Email clerk@creechstmichael.net




































CSM PC Finance Sub Committee 2nd September 2020 Item 7.


Deposit Account


During the Rec Park Play Equipment project there was a need to utilise all the PC’s available funds to cashflow the purchase. Now the build is completed and with the Covid19 Lockdown winding back it is now possible to consider opening deposit account arrangements.


As the PC bank balance currently exceeds the Financial Services Authority protection scheme sum of £85,000 it is recommended that risk be reduced to the PC by ensuring that a lower sum is held in the current account and the remainder be placed with another financial institution they approve. There is also the potential for earning a little interest.


The Market Leader; the Nationwide Bdg Society Business Save Instant Access saver account currently pays 0.05% AER/gross p.a.

I have become aware of the Public Sector Deposit Fund (PSDF) which is a UK domiciled FCA Qualifying Money Market Fund managed by CCLA that offers the substantial benefits of cooperation between public sector bodies. It is a cash management solution designed by the sector, for the sector. The PSDF is a low volatility net asset value money market fund, or LVNAV MMF, which is a short term MMF and is authorised as such in accordance with the provisions of the MMF Regulation.


CCLA is one of the UK's largest charity fund managers according to the latest Charity Finance Survey. Managing investments for charities, religious organisations and the public sector is all they do. Based in the City of London


The PSDF Funds objective is to maximise current income consistent with the preservation of principal and liquidity by investing in a diversified portfolio of high-quality sterling denominated deposits and instruments. The primary objective is to maintain the net asset value of the Fund at par (net of earnings). Designed for Councils, CCLA monitors the counterparties' environmental, social and governance risk management on a regular basis; and take further action as necessary.


Risk Warning- In addition to the general risk factors investors should also note that purchase of PSDF shares is not the same as making a deposit with a bank or other deposit taking body and is not a guaranteed investment. Although it is intended to maintain a stable net asset value per share, there can be no assurance that it will be maintained. Notwithstanding the policy of investing in short-term instruments, the value of the PSDF may also be affected by fluctuations in interest rates. The PSDF does not rely on external support for guaranteeing the liquidity of the fund or stabilising the net asset value per share. The risk of loss of principal is borne by the shareholder.


Recommendations


I have spoken to the Clerk and Asst Clerk at WM PC as that authority utilises both Nationwide and PSDF and they have spoken highly (confirmed in writing) of the service received from both.


I am minded that some analysts are warning of a Covid economic depression in coming months and the certainty of the Nationwide Deposit A/c albeit with lower interest rates is recommended at this time.


I would therefore seek PCllrs decision as to which the PC is to use.


Steve Altria

Clerk/RFO 25 8 20