To update Audit & Governance Committee on the financial position to 30 September 2013 including the Treasury Management report.

The Committee considered the report of the Chief Finance Officer which gave an update on the financial position of the Council to 30 September 2013, together with the Treasury Management position:

·         The Chief Finance Officer spoke to his report outlining the monitoring arrangements put in place, emphasising that the budgeting process will replenish the Council’s reserves which had reduced.

·         Attention was drawn to page 20 of the Report which identified a £2.3m saving which would not be achieved this financial year.  It was confirmed that plans had been put in place to achieve this saving in the next financial year.

·         A Member expressed concern that savings originally identified in the current year would not be fully achieved.  They also expressed concern about the risks associated with the level of reserves.

The Chairman of the General Overview and Scrutiny Committee commented on the need for effective contract monitoring.  He suggested that a joint Task and Finish Group should be established to review this issue.

A Member questioned the robustness of the budget and its capacity to take account of unexpected demand such as a flu pandemic.   The Chief Finance Officer acknowledged that unexpected events were a high risk in respect of budget management.

Concern was expressed about the setting of effective and realistic targets for the delivery of savings.  It was recognised that improvements were needed in this area of budget management.

RESOLVED:  That:

(a)        the Report and the present position be noted; and

(b)       the Chairman of the Committee and the Chairman of the General Overview and Scrutiny Committee consider setting up a joint Task and Finish Group to review the effectiveness of the Council’s contract monitoring arrangements.