Issue - meetings

To accept the report on the end of August 2019 review of the Revenue Budget, and: 

1)    Note that there is a significant overspend by the Adults, Health and Well-being Department this year, and as complex details need to be clarified in this picture in Adults care, the Chief Executive has already called a meeting of the relevant officers to gain a better understanding and a clear response programme, as is the case in Child care.

2)    Ask the Cabinet Member for Children and Young People, together with the Head of Children and Families Department, to get to the root of the Department's overspend and take steps to bring the situation within control and within budget by the end of the financial year and report to the Cabinet on their response plan.

3)    Allow the Environment Department to earmark (£220k) of the department's underspend following a recent judicial review of a capital scheme relating to the Llanbedr access Road, due to reasons beyond the Council's control, by putting it into a specific fund for this purpose.

4)    On Corporate budgets, transfer: 

-       (£240k) relating to capital costs to the capital programme’s financing fund.

-       (£995k) relating to repair and maintenance to the repair and maintenance fund.

-       net underspend of (£1,632k) on Corporate Budgets to the Supporting the Financial Strategy Fund to mitigate the risk of overspending of Council departments in 2019/20.

Presented by Cllr Ioan Thomas

            DECISION

To accept the report on the end of August 2019 review of the Revenue Budget, and: 

1)    Note that there is a significant overspend by the Adults, Health and Well-being Department this year, and as complex details need to be clarified in this picture in Adults care, the Chief Executive has already called a meeting of the relevant officers to gain a better understanding and a clear response programme, as is the case in Child care.

2)    Ask the Cabinet Member for Children and Young People, together with the Head of Children and Families Department, to get to the root of the Department's overspend and take steps to bring the situation within control and within budget by the end of the financial year and report to the Cabinet on their response plan.

3)    Allow the Environment Department to earmark (£220k) of the department's underspend following a recent judicial review of a capital scheme relating to the Llanbedr access Road, due to reasons beyond the Council's control, by putting it into a specific fund for this purpose.

4)    On Corporate budgets, transfer: 

1)    (£240k) relating to capital costs to the capital programme’s financing fund.

2)    (£995k) relating to repair and maintenance to the repair and maintenance fund.

3)    net underspend of (£1,632k) on Corporate Budgets to the Supporting the Financial Strategy Fund to mitigate the risk of overspending of Council departments in 2019/20.

DISCUSSION

The report was submitted, noting that it presented the end of August review for the Council's revenue budget. The review showed a mixed picture and reported an acceptable level of financial management by a number of the Council’s departments. However, the pressures on some of the departments was highlighted following savings to the tune of £32 million since 2015 coupled with an increase in the demand for services.

Due to the scale of overspend anticipated in the Children (£2.9 million) and Adults (£1.6 million) departments, it was concluded that there was a need to get to the root of their inability to keep within their budgets. It was noted that the demand was higher than expected for the services of both departments, and the Adults department had also failed to realise nearly a million pounds in savings. In order to attempt to bring the situation under control, the Chief Executive had already held meetings with the departments in order to start this work, with the intention of reporting back to the Cabinet in due course.

It was added that the Highways and Municipal Department had overspent by approximately £733k. However, it did not cause concern as it included transitional costs that derived from changing arrangements in the waste field.

It was prudent to transfer the funds available due to the underspend on Corporate budgets in order to mitigate the risk of overspending of Council departments in 2019/20.

Observations arising from the discussion

¾    Concern was  ...  view the full minutes text for item 8