Agenda item

That the report be noted – and that the work of Executive Directors to manage budget pressures within their directorates also be noted.

4.1    Nick Penny (Head of Service Finance) introduced the report – setting out the Council’s current financial position and highlighting areas of overspending as well as the costs of pandemic related expenditure. Nick also provided a summary of the savings proposals and achieved by the Council – as well as risks facing the housing revenue account.

4.2    Kathy Freeman responded to questions from the Committee - the following key points were noted:

·         Work was taking place with Newton (an organisation commissioned to review the costs of adult social care) to reduce expenditure in adult social care.

·         Improvements were being made to commissioning arrangements and relationships with health care partners.

·         A ‘recovery board’ had been set up for adult social care to focus on controlling expenditure. So far £4m of additional cuts had been identified from adult social care – which were currently being assessed for deliverability and sustainability.

·         The impact of the pandemic on adult social care had been significant in terms of cost packages and the levels of care needed.

·         Further consideration was being given to recovery of unspent direct payments – alongside wholesale reviews of care and placement reviews. As a result, some care packages were increasing in cost but many were reducing.

·         Children’s social care also had a dedicated recovery board (chaired by the Executive Director for Children and Young People) which reviewed the costs of complex care packages.

·         Some funding was being held corporately to manage overspending risks in children’s social care.

·         There was nothing immediate to note regarding the funding of the government’s social care changes. The proposals were due to come into place from 2023-24.

·         Linking private landlord incentive payments (to access private housing for temporary accommodation) to better standards would be a welcome idea. However, the Council was in a competitive market place, which resulted in a range of challenges.

·         Funding had been set aside for a feasibility study for the Bridge leisure centre. A bid had also been submitted to the Greater London Authority to fund a proportion of this work.

·         It was intended that - as far as possible – all of the costs of covid would be allocated to government funding. There were some areas (such as the infection control grant) which had strict requirements about expenditure – and might not all be allocated (due to underspending by suppliers). There would be a better view of the costs recovered and those allocated at the end of the year.

·         It was recognised that there were some financial control weaknesses in the Council – but the recent restructure and recent appointments of key staff were intended to bring rigour and control to finance processes.

·         There were some challenges in ‘fixing the basics’ given some longstanding issues and ways of working.

·         An internal audit review had identified potential issues with domiciliary care overpayments. Work carried out to resolve issues related to overpayment had been subject to a joint discussion between Audit Panel and Public Accounts Select Committee.

·         Further extensive work and reconciliation of payments indicated that the overpayment was far lower than had previously been anticipated.

·         Further work was taking place to match payments with invoices and additional discussions would take place with providers to recover costs where necessary.

4.3    In the Committee discussion the following key points were also noted:

·         Members would welcome more up to date figures in the monitoring report.

·         Direct payments were allocated on the basis of need – and whilst the Committee welcomed the focus on costs – it was important to note that people in receipt of direct payments had assessed and recognised needs.

4.4    Councillor Amanda de Ryk (Cabinet Member for Finance and Resources) was invited to address the Committee, the following key points were noted:

·         The work by internal audit – along with scrutiny and Audit Panel indicated that the Council’s processes for financial control were working.

·         The review of key processes and functions being led by the Executive Director was welcome.

4.5      Resolved: that the report be noted.