1.1 The report for the first seven months of the current financial year is attached (see Annex A).

1.2 Members will note that Transport is continuing to run outside the budgeted predictions. As reported previously, the main reason for this is the cost of repairs to both of Aegis’s gear boxes and her raw water pumps.

1.3 Officers are still liaising with Lancaster University and with Estate Agents to try to find alternative accommodation for the Lancaster office. As previously advised, we are unlikely to find anything within our present budget.

1.4 The majority of the Committee’s funds continue to be invested with Lancashire County Council – the current rate of 5.95% per annum is very competitive compared with those offered by banks or other acceptable institutions.

1.5 The Committee’s internal and external financial audit system was reviewed by the Chairman’s Working Party Sub-Committee on 13^th November 2007. The Sub-Committee agreed that the system in place is effective. A minute of that meeting is enclosed with the papers for this meeting (Members only)