To provide Members with an up to date summary of the Committee’s financial situation.

1.1 The statement for the first six months of the current financial year, prepared by Mr John Davies, is attached (see Annex A).

1.3 Transport costs continue to run above budget, partly due to high fuel price rises this year. (However, as previously reported, the main reason is the adjustment of £5,226 in the total cost of Aegis’ major refit, which arose too late to be included in the accounts for 2007-08).

1.4 The majority of the Committee’s funds continue to be invested with Lancashire County Council at a very competitive rate of just under 5% per annum (to the end of September). From November 2008, the interest rate will decrease due to the general fall in rates.

2.1 Audit of the Annual Return for the year ended 31 March 2008 has now been completed by both internal auditors Moore and Smalley, and external auditors appointed by the Audit Commission, Chartered Accountants BDO Stoy Hayward LLP. Mr. Davies completed this process and received a letter from BDO Stoy Hayward dated 27 October 2008 concluding the Audit. Copies of the Annual Return are available for inspection from the Clerk.

2.2 An Issues Arising Report was also received from BDO Stoy Hayward, raising three minor issues which do not affect their overall Audit approval of the Annual Return. An action plan to deal with these issues will be produced as soon as possible and presented to the Committee. Copies of the Issues Arising Report are available for inspection from the Clerk.