Issue - meetings

Resolved:

The Committee asked for examples of spending that the Corporate Expenditure Panel had stopped to be provided as part of their next financial monitoring report.

Selwyn Thompson (Head of Financial Services) introduced the reports, highlighting the following key points:

·         The report sets out the financial forecasts for 2014/15 as at 30 September 2014.

·         An overspend of £10.6m against the directorates’ net General Fund revenue budget is forecast.

·         The revised budget for the Capital Programme for the year is £147m and the current forecast expenditure at the year end is £135m. The estimated final outturn will be 92% of the revised budget, compared to 96% for the previous year.

·         Council tax collection is 0.4% lower than this year’s profiled collection rate and business rates collection is 2.8% lower than the same period last year. Collection will need to pick up to meet targets.

·         The Children and Young People directorate has a projected overspend of £8.6m, mostly due to Looked After Children and Leaving Care budgets, as well as spending on No Recourse to Public Funds cases.

·         Community Services currently has a £2.5m overspend related to Adult Social Care.

·         Customer Services has a £1.9m overspend, the result of pressures on Bed & Breakfast provision. Work is being carried out to increase supply.

·         Resources and Regeneration currently has a £0.5m underspend.

·         Management action taken to address the overspend includes the creation of the Corporate Expenditure Panel, which sits above the Directorate Expenditure Panels to examine new spending and sends the message to managers that spending is being scrutinised.

·         Treasury Management returns are in line with what was expected given the level of risk the Council takes.

·         The new contract with Barclays for accounts will start in April 2015.

In response to questions from the Committee submitted in advance, Selwyn Thompson informed the Committee that while the overspend position has not improved, compensatory underspends to offset overspends have been identified. Historically it has been possible to manage down the overspend over the year, however pressures this year are greater than before and while all efforts will be made there is no guarantee the overspend can be eliminated.

In response to questions from the Committee, Selwyn Thompson provided the Committee with the following information:

·         The current position is a major challenge and the organisation is facing significant pressures. Savings have to be made to balance the budget in the future and proposals will need to be realistic and managerially achievable.

·         Some savings can be taken early, such as areas where there are vacant posts, and these are possibly impacting on the underspend already.

·         To make the level of savings needed across the organisation then services that make up a significant portion of the overall spend, such as Adult Social care, will need to make radical changes.

Resolved:

The Committee asked for examples of spending that the Corporate Expenditure Panel had stopped to be provided as part of their next financial monitoring report.