My report to Council

Posted By: Greg Couzens
Date Posted: 19/10/2009

Thank you Mr Mayor for the opportunity to report to the Council the latest developments on various matters relating to the Finance Portfolio.

I am very pleased to advise that on the 29th September, Audit Committee approved the Council’s Statement of Accounts following the Audit Commissions external audit. At the same meeting the Audit Commission presented their Annual Governance Report. These reports followed an intense period of audit activity following the approval of the draft accounts in June. As a result of that work the Audit Commission has stated the intention to issue an unqualified report on the accounts. An unqualified opinion is also planned to be issued on the arrangements the Council has for securing economy, efficiency and effectiveness in the use of resources. This is an important outcome for the Council and recognises the work that has been undertaken to respond to the new arrangements for managing finances under the Comprehensive Area Assessment.

The financial outlook for 2009/10 and future years remains very challenging, and probably the most challenging in decades, this will result in making difficult decisions in order to balance the books. The cumulative financial risks across service budgets are just under £10m. Our corporate budget pressures fund is £5m and services have identified a further £2.5m of efficiencies that they have committed to delivering in the current financial year. Taking these resources into account, the net budget pressure is currently forecast to be just over £2.5m. As a result of the economic climate, no assumptions are being made on the ability to support this pressure through treasury management income. In addition, the medium term financial forecast means that it is very important that Council achieves a balanced budget. Further work is therefore on-going with all services to identify measures to reduce this pressure and put further controls over expenditure where this is possible. This work is focusing on all services, not just those with an overspend position, to ensure a collective and corporate response to the financial challenge.

In September Cabinet approved the Budget Guidelines and Timetable to formally commence the budget process. That report identified that efficiencies of just over £8m would be needed to balance the budget for 2009/10. Addressing a number of the underlying budget pressures in the current financial year means that the total efficiency requirement is currently estimated at around £12m. Services have responded to this requirement with £12m of savings proposals being presented to the Efficiency Programme Committee for consultation. That Committee has also been presented with proposals for a programme of cross cutting reviews through which further efficiency opportunities will be identified and brought forward for consultation. This aims to bring a more strategic approach to the choices the Council will face on funding and service provision as we move forward into a period of reduced national allocations.

Collectively this work will strengthen financial planning across the Council and improve the level of preparedness for greater levels of resource constraint. For these arrangements to be effective it is critical that services deliver the financial plans they have put forward. Rest assured I will be working with colleagues within the finance service and service portfolio holders to provide support and challenge to arrangements for financial management and the delivery of services within approved budgets.

Thank you Mr Mayor, I will be pleased to answer any questions from Members of the Council about these or any other matter relating to the Finance Portfolio.