Council finances are in good shape, says watchdog

Herefordshire Council's financial controls and procedures use public money and assets to secure economy, efficiency and effectiveness, according to independent public services watchdog the Audit Commission. In its Annual Governance Report for the last full financial year (2007/08), the commission's district auditor has stated that the council's financial statements represent fairly its income and expenditure.

The Audit Commission is expected to report to the council's audit and governance committee this week (Thursday 25 September) that its annual audit went 'very smoothly' and there will be an unconditional approval of the council's financial arrangements.

Despite added pressure on social service budgets, unexpected flood expenses and continued government under funding in education, the council ended its financial year under budget for the fifth year running. The council saved £591,000 on its revenue budget and has put aside a general reserve of £6.7 million for unforeseen requirements.

"The council is committed to continuing to provide the best care and support we can to the most vulnerable in our communities", said Councillor Harry Bramer, cabinet member for resources. "And because the county has a rapidly growing older population, and services are more difficult and more expensive to deliver over long distances in a very rural environment, we have severe financial challenges.

"Yet, as we have demonstrated with another year of prudent financial management, the county of Herefordshire has been protected against the widespread cuts and redundancies in services that have been seen in other parts of the region and the country as a whole".

"On top of that we have been able to inject capital funding into much needed flood defences in Hereford and Ross, the construction of the new access road in Rotherwas to protect jobs and help business competitiveness, the setting up of new enterprise centres across the county, and a new crematorium for Hereford".

"This year, the council is facing up to the same pressures affecting every household - the credit crunch, increased fuel and utility costs and general inflation - but we will continue to target limited resources to areas of greatest importance. A major drive is underway to achieve significant savings by restructuring services and transforming the way they are delivered by making better use of modern technology and strategic partnerships, with no reduction in service quality".