Issue - meetings

To receive the information, consider the risks arising from the forecast expenditure against the budget, and scrutinise the decisions to be presented to Cabinet regarding budget management by the Council and its departments.

DECISION:

·         To accept the report on the end of November 2023 review of the Revenue Budget

·         To consider the latest financial position regarding the budgets of each department / service

·         To note that significant overspend is anticipated in the Adults, Health and Well-being Department, the Children and Supporting Families Department, and the Highways, Engineering and YGC Department this year.

·         To agree with the recommendation to Cabinet (23-01-24) to approve a transfer of £4,241k of underspend on corporate budgets to the Council's Financial Strategy Reserve

Note: The Cabinet is requested to,

·         consider the timetable for the Adult Health and Well-being Department's overspend review and the Environment Department's overspend review (Integrated transport issues)

·         consider the imbalance in the use of grants.

Submitted - the report of the Cabinet Member for Finance requesting that the committee scrutinises the position and relevant risks in respect of the Council's budgets and those of its departments and considers the recommendations for the Cabinet 24-01-23.

The Cabinet Member set out the context for the report, noting the following:-

·         Following a review at the end of November, the projections suggested that all of the ten departments would overspend by the end of the year.

·         There was substantial overspend by the Adults, Health and Well-being Department, the Children and Supporting Families Department and the Highways, Engineering and YGC Department.

·         A delay in realising savings was a factor.

He added that the Finance Officers merely reported on the situation, and that the Departments themselves were responsible for their budgets.

The Assistant Head of Finance highlighted, following a review at the end of November, that the projections suggested that all the ten departments would overspend by the end of the year, with significant overspending by the Adults, Health and Well-being Department, Children and Supporting Families Department, and the Highways, Engineering and YGC Department. Additionally, it was anticipated that there would be a financial deficit of £8.1 million (compared with £9.1 million in the August Review), and therefore, although the situation was a million times better overall, that the one-off grants had to be used to help the departments' situation.

Reference was made to the main matters:

·         Adults, Health and Well-being Department - the latest projections suggested £5.4 million overspend, being a combination of several factors including several new cases and costly supported accommodation in the learning disability service, higher staffing costs, sickness levels and high rates of non-contact hours in the field of Home Care, as well as high fees by private providers in Older People's Services. In light of the exceptional overspend projection by the Department, it was noted that the work commissioned by the Chief Executive now conveyed a detailed picture of the complexity of adults’ care spending and gave a better understanding of those matters to create a clear programme to respond. It was reiterated that the work was led by the Statutory Director of Social Services.

·         Children and Supporting Families Department - the department's financial situation had worsened substantially since the end of August review, following an increase in costs because of the complexities regarding the out-of-county packages provided. By now, it was anticipated that there would be an overspend of £1.3 million by the end of the financial year.

·         Education Department - a clear increase in the pressure on taxis and school buses funding this year, with an anticipated overspend of £1.5m. It was noted that the transport field had already been subject to a strategic review to try and manage the increase in spending and it was suggested that work continued to try and decrease the overspending and take advantage of efficiency opportunities. It was reiterated that a combination of underspend in other fields, as well as use of funds in reserve, reduced the  ...  view the full minutes text for item 8