(Cllr Rayner left the room for the duration of this item and did not take part in the discussion or vote.)

The Lead Member for Finance and Ascot introduced the latest financial update report. 

Cabinet were informed that revenues and benefits had reduced its overspend by £150,000 to £200,000 as a result of housing benefit overpayment and debtor reduction.  That there was an addition of £30,750 to member budgets, it was noted that the allocation of these budgets would be at a reduced administrative burden.  There was also £75,000 to be allocated to the revenue budget for the continued legal challenge to Heathrow airport.

The Managing Director had confirmed that there were no variances in his directorate, there continued to be pressures within domiciliary care but this was being managed.  There were also potential pressures in relation to parking income and within communications.  The tourism function within communications was due to be delivered under a different model, as our partners had not initially been willing to contribute to this function there is an emerging pressure, further discussions with partners are ongoing that may see them contribute to retaining the tourism centre.

The Chairman reported that there was an error in section 4.1 and instead of the reported overspend of £509,000 it should read a projected position of £359,000.

Cllr Targowski attended Cabinet in his role as Chairman of the Corporate Overview and Scrutiny Panel and asked that given the reported pressures and long term borrowing forecast was the Lead Member confident in the financial management and budget controls of the council.

The Lead Member replied that the Managing Director was adamant that all identifiable risks be exposed within the financial update report and at the last Cabinet meeting the Lead Member had reported that unless there were exceptional circumstances there would be no additional capital or revenue spend.  Cabinet were also informed that Corporate O&S Panel would also be considering the auditor’s report and looking at the audited accounts. 

The Lead Member informed that the Managing Director and Head of Finance promoted a whole system approach where accountants interacted with service managers with quality reports being produced that identified risks and challenged service areas.  This was a proactive approach and he was content with the financial controls.

Cabinet were also informed that with regards to borrowing he had introduced a new histogram to the report.  There was an extensive capital and regeneration programme backed up with cash flow, the Lead Member was confident with the council’s ability to pay down any borrowing.   Work was ongoing reviewing the management of the capital programme.  The Lead Member said that there was considerable strength in managing high risk, high cost services, there was a better analytical approach and borrowing was under control. 

Cllr Jones asked for clarification on sections 4.5, parking pressures and 4.10 Communities, Enforcement and Partnerships.  She also asked if long term and short term borrowing was under control.  The Lead Member replied that they were being reported as potential  ...  view the full minutes text for item 6