RUNNING out of cash remains the single most prominent nightmare scenario at Clackmannanshire Council.

Elected members will be taking a look at the local authority's very own Corporate Risk Log at tomorrow's Audit and Finance Committee meeting.

Scoring the highest points in both likelihood and impact is the threat of the council not having the money to meet its liabilities and essential service demand.

Legal implications, severe and extended loss of services and the possibility of other partners being affected due to interdependencies are all among the potential effects.

The log reads: "Independent analysis suggests Clackmannanshire is experiencing amongst the greatest budget pressure of all 32 councils."

The estimated budget gap for the next financial year is in excess of £10million with the document adding: "Given that significant savings have been made in recent years, it is proving extremely challenging to identify new proposals within existing policy parameters.

"Work is currently progressing to identify savings in respect of 2018-19 and beyond, including the development of redesign and restructure proposals."

When asked at a public meeting at the Bowmar Centre in Alloa on this year's budget savings proposals last week, senior management at the council were unable to rule the scenario out, saying they were not in a position to do so.

With the two biggest departments, education and social services, now being escorted to the chopping block, it will be difficult to secure savings in the future while maintaining the minimum statutory requirements.

With an initial focus on procurement and income maximisation, the log suggests the local authority moves towards more efficient and compliant processes.

A corporate redesign is also said to be underway, with officers identifying a potential £1.5m saving through "management efficiencies", including reductions in training budgets, administrative support, storage and security and deleting vacant posts.

Changing staff terms and conditions, which would come with reduced hours, overtime rates as well as additional payments for weekend and evening working, could save a further £500,000 to £1m.

In addition, slashing 40 per cent of management costs across the board could ease the financial pressure by £900,000.

One of the second biggest threats to the council, and indeed the people it serves, is the impact of the welfare reform.

The log reads: "The welfare reform agenda increases deprivation in the area, removes £8 to £10million from the local economy and requires the council to provide additional services and support due to a national priority of reducing welfare expenditure."

As a result, it is possible, the paper adds, that the efforts to reduce deprivation and improve economic development could be reversed.

This could lead to more people requiring more services from an already cash-strapped council, with further "reputational, budget and staffing implications".

While the full impact of the switch to the new benefits system is yet to be quantified, the log adds: "Impact of Universal Credit now being seen on income, particularly from homeless accommodation.

"Projected around £800K loss this year.

"Work is in place to identify potential mitigation options alongside a review of broader policy."