Issue - meetings

The Committee considered the report of the Head of Finance and Resources setting out the risk assessment of the budget strategy 2015/16 onwards.  It was noted that:

·  The risk assessment considered operational risks rather than the strategic risk (which related to failure to deliver a balanced budget) and the actions to mitigate these risks formed part of the service plan of the Finance Section for 2015/16.  In some cases, the risks would also be reflected in other service plans.

·  The budget strategy report to be submitted to the Cabinet would have regard to the provisional financial settlement announced on 18 December 2014.

The Committee was of the view that the risk assessment identified the appropriate risks and that the general work of the Council in monitoring the budget and the specific mitigation measures proposed were satisfactory.

However, the Committee expressed concerns in relation to the level of balances and the future planned activity of the Council.  Whilst it was noted that balances were currently in excess of the agreed minimum level and that, in addition to the direct mitigations of the risks, the Council retained a specific balance of £500,000 as a resource set aside against the risk of commercial failure of one or more commercial projects, the Committee felt that the work completed on the medium term financial strategy did not suitably bring together all of the issues so that the maximum financial exposure identified for all activities could be seen in relation to the available resources that would be utilised if plans were to fail.

Arising from the discussion, the Head of Finance and Resources undertook to refer a Member’s concerns about the need for investment in public conveniences in the town centre to the appropriate service managers.

RESOLVED:  That the Cabinet be recommended to agree the risk assessment of the budget strategy for 2015/16 onwards as set out in Appendix D to the report of the Head of Finance and Resources subject to the level of cover available to mitigate the risks associated with the future planned activity of the Council being reviewed and monitored.