Decision - Targeted Budget Management (TBM) Revenue Outturn 2007/2008

1.     That the provisional outturn for the General Fund, Section 75 (S75) Partnerships and Housing Revenue Account for 2007/08 and the impact on reserves and balances be noted.

2.     That the contribution of £0.500 million to the Single Status reserve and the creation of a Car Parks Maintenance reserve of £0.400 million be agreed.

3.     That the changes to the 2008/09 budget allocations as set out in paragraph 3.6 of the report and the use of unallocated general reserves as set out in paragraph 3.5 of the report be agreed.

4.     That the carry forward of £0.799 million to 2008/09 relating to the Older People Mental Health Services S75 pooled budget, managed by Sussex Partnership Trust be agreed, subject to Joint Commissioning Board approval at their meeting on 16^th June 2008.

5.     That an additional contribution from the General Fund to the S75 Partnership pooled budget to meet the shortfall of £0.199 million against the Integrated Community Equipment Services S75 pooled budget managed by South Downs Health Trust be agreed.

6.     That the proposed distribution of the unallocated Local Authority Business Growth Incentive Scheme (LABGI) funding as set out in Appendix 2 of the report be agreed.

1.     The recommendations have been made in the context of the overall financial standing and future outlook of the council. The movements on specific reserves and the earmarking of unallocated general reserves represent prudent financial management and make best use of the limited financial resources available to the council.

1.     The proposed contribution to the Single Status reserve (£0.500 million) and the creation of a Car Parks Maintenance (£0.400 million) reserve are prudent actions based on current financial risk assessments. If these proposals were not approved, unallocated general reserves would increase by a corresponding amount.

2.     If the earmarking of an amount (£1.070 million) of unallocated general reserves to support the collection fund deficit were not approved, alternative funds would need to be identified to cover the deficit to avoid future council tax levels being affected.

3.     The £0.100 million allocation to the transformation fund if not made could delay service transformation projects/ value for money improvements. This is a modest amount that should support the speedier delivery of improvement projects and associated efficiency and productivity gains.

4.     The proposed carry forward of £0.799 million in respect of S75 Older People Mental Health Services will be reported to the Joint Commissioning Board (JCB) for approval and is considered vital to ensure the setup and delivery of the new “Dementia at Home” service in 2008/09. Decisions regarding the utilisation of underspends on partnerships are taken jointly by the partners through the JCB. If this was not approved by the JCB and/or the Cabinet, the underspend would revert to both partners and would normally be shared in proportion to the partners’ contributions to the pooled budget. However, given the additional investment of over £1.9 million in this service in 2007/08, it is highly likely that this would be successfully disputed by the Primary Care Trust and that the underspend would revert to the Primary Care Trust in full.

5.     The overspend on the Integrated Community Equipment Store (£0.199 million) has been reported for many months and the demands on the service are known to have increased. South Downs Health NHS Trust were expecting to manage this pressure but higher than anticipated costs on other S75 services has meant that financial recovery could not be achieved. Provider trusts are expected to deliver within budget provided there are no significant changes in demand. In this case, there is some evidence of a change in demand for social care equipment and the provider is highly likely to be successful in arguing the case for additional contributions from the commissioners (council and/or PCT). If the additional contribution was not approved, South Downs Health Trust is likely to seek redress under the terms of the S75 agreement.