To receive apologies for absence, including notifications of any changes to the membership of the Board.

An apology for absence was received from Councillor Morey and it was reported that, in accordance with the wishes of the Conservative Group, the membership of the Board had been amended to include Councillor Tyerman in place of Councillor Sykes.

To confirm as a correct record the minutes of the meetings of the Board held on 20 November and 12 December 2018 and 16 January 2019.

The minutes of the meetings of the Board held on 20 November and 12 December 2018 and 16 January 2019 were confirmed as a correct record and signed by the Chairman.

To receive an update on the development of an Integrated Care System in Devon.

The Board received an update from the Director of Strategy of the Clinical Commissioning Group on the development of an Integrated Care System fin Devon.  The Board was also briefed on the progress that had been made in implementing the Devon-wide Sustainability and Transformation Plan, including the creation of a new Digital Strategy and the priority areas in a system-wide Workforce Strategy.

The Board heard a representation from the Community and Welfare Alliance Group.

The Head of Finance to present the third budget monitoring report for 2018/2019 under the Authority’s agreed budget monitoring procedures which provides high-level information on capital and revenue expenditure and funding for the year compared to the latest position as reported to Council in December 2018.

The Elected Mayor to answer any of the Board’s questions.

The Board to consider making any recommendations to the Council.

The Board considered a report which provided a high level budget summary of the Council’s revenue and capital income and expenditure for the financial year 2018/2019.  As at the end of Quarter 3, it was predicted that the Council’s Revenue Budget would be overspent by £2.7 million before the application of identified one-off funding.

It was noted that this was a small improvement from the Quarter 2 position, however the overspend of £4.2 million in Children’s Services remained a real cause for concern.  A moratorium on all spend and recruitment which was not urgent or needed to meet statutory duties continued to be in place.

The Capital Plan budget included £94 million scheduled to be spent in 2018/2019, including £50 million on Investment Fund acquisitions and £13 million on regeneration projects.

Members of the Board raised a number of questions in relation to the current situation in Children’s Services and noted that a more detailed debate would take place at the next meeting of the Board.

The Head of Finance to present the report on the current forecast position on the use of Council reserves.

The Elected Mayor to answer any of the Board’s questions.

The Board to consider making any recommendations to the Council.

The Board noted the report setting out the Review of Reserves for 2019/2020 which identified that £1 million from the Comprehensive Spending Review (CSR) Reserve would be required to fund the balance of the predicted 2018/2019 revenue budget overspend.  £2.1 million of reserves had also been identified to be transferred to ensure that the CSR Reserve could be maintained at a prudent level and to support future IT replacement and investment.

The Head of Finance to present the report on the review of the Council’s Corporate Capital Strategy.

The Elected Mayor to answer any of the Board’s questions.

The Board to consider making any recommendations to the Elected Mayor ahead of the meeting of the Council.

The Board considered the Elected Mayor’s proposed Capital Strategy which set out the principles to be used to guide the allocation of capital investment across all of the Council’s services.

Resolved:  that the Elected Mayor be recommended to amend Section 2.1 of the proposed Capital Strategy so that Business Cases prepared self-funding or invest-to-save capital schemes include all future maintenance costs over the life of the scheme.