Agenda item - Targetted Budget Management (TBM) Month 9

Report of the Executive Director for Finance & Resources (copy attached).

RESOLVED:

1)        That the Committee note the forecast risk position for the General Fund, which indicates an in-year budget pressure of £1.862m. This includes a pressure of £0.603m on the council’s share of the NHS managed Section 75 services.

2)        That the Committee note that total recurrent and one-off risk provisions of £3.000m, less additional restructure and redundancy commitments, are available to mitigate the forecast risk if the risks cannot be completely eliminated by year-end.

3)        That the Committee note the forecast for the Housing Revenue Account (HRA), which is an underspend of £2.236m.

4)        That the Committee note the forecast position for the Dedicated Schools Grant which is an underspend of £0.212m.

5)        That the Committee note the forecast outturn position on the capital programme and approve the variations and reprofiles in Appendix 4 and the new schemes as set out in Appendix 5.

126.1    The Committee considered a report of the Executive Director for Finance & Resources in relation to Targetted Budget Management (TBM) Month 9. The Targeted Budget Monitoring (TBM) report was a key component of the Council’s overall performance monitoring and control framework. The report set out an indication of forecast risks as at Month 9 (December) on the Council’s revenue and capital budgets for the financial year 2016/17.

126.2    In response to questions from Councillor Wealls the following responses were provided. There had been a spike in the level of agency social care provision, though there were currently no agency staff in management positions. There had been a successful recruitment campaign in the last few months leading to the appointment of eight permanent new social workers; the service had added a market supplement to make the positions more competitive and staff had been attracted by the new working model – particularly newly qualified staff. By April it was envisaged that the service would have no agency staff. Nationally there had been a reduction in adoption levels and this had been identified as a court issue.

126.3    In response to questions from Councillor G. Theobald the following responses were provided. The Planning service had commenced pre-application charges for major and minor planning applications, a staged approach had been adopted which was reflected in the underachievement detailed in the report. The over-achievement on major work service charges for leaseholders related to the difficulty forecasting the completion of works; charging only took place at the point of completion. It was agreed that a response in relation to the HRA underspend would be provided to the Committee after the meeting.

126.4    In response to Councillor Mac Cafferty it was explained that some of the costs in relation to asylum seeking children could be claimed from the Home Office, this largely covered accommodation costs, but not the costs to health partners.  

126.5    In response to questions from Councillor Sykes the following responses were provided. The community care variance sat across two directorates. The gains in an increased resource position by the end of the year created a higher balance and a higher level of interest added to the underspend. The pressures in the crematory service largely related to a private competitor setting their fees at a level to deliberately undercut the Council; however, work was being undertaken to look at selling the service on a regional level. There was an underspend in the ‘Super Connected Cities’ budget; however, this would not need to be given back to Central Government as the scheme had drawn down funds when a voucher was awarded.

126.6    The Chair then put the recommendations to the vote.

126.7    RESOLVED:

1)        That the Committee note the forecast risk position for the General Fund, which indicates an in-year budget pressure of £1.862m. This includes a pressure of £0.603m on the council’s share of the NHS managed Section 75 services.

2)        That the Committee note that total recurrent and one-off risk provisions of £3.000m, less additional restructure and redundancy commitments, are available to mitigate the forecast risk if the risks cannot be completely eliminated by year-end.

3)        That the Committee note the forecast for the Housing Revenue Account (HRA), which is an underspend of £2.236m.

4)        That the Committee note the forecast position for the Dedicated Schools Grant which is an underspend of £0.212m.

5)        That the Committee note the forecast outturn position on the capital programme and approve the variations and reprofiles in Appendix 4 and the new schemes as set out in Appendix 5.