Invitees

All Members of Cabinet and the Corporate Management Board

The Interim Head of Finance submitted a report, the purpose of which, was to provide the Committee with an update on the Council’s financial performance for the year ended 31 March 2018.

The Chief Executive referred Members to the Council’s net revenue budget and final outturn for 2017-18 as was detailed in Table 1 in the report, which reflected the comparison of budget against actual outturn as at the above date.

The report then included in paragraph 4.1.6 at Table 2, certain virements and technical adjustments processed during Quarter 4.

The next section of the report then expanded upon the monitoring of Budget Reduction Proposals, giving an explanatory note with regard to budget reductions for 2017-18 and a comparison of the same, for the previous period of 2016-17.

Paragraph 4.2.4 of the report then identified the most significant  budget reduction proposals that hadn’t been achieved as part of the RAG status, ie red, amber, green.

Appendix 2 to the report identified the actual amount of savings against the above mentioned proposals, and action to be taken by the appropriate Directorates to mitigate shortfalls going forward. The savings identified not met in full, would continue to be monitored during 2018-19. The Social Services and Wellbeing Directorate had developed a Future Service Delivery Plan presented to Committee previously, and this outlined the Directorate’s response to the financial challenge facing it, not least setting out the planned actions to be undertaken in order to make the required MTFS savings and maximise income opportunities by March 2019. This would be monitored continuously throughout 2081-19.

The next section of the report then gave a commentary on the financial position for each main service area comprising the different Directorates of the Council, whilst Appendix 3 to the report expanded upon this, as well as both commenting on the most significant variances.

The report then referred to the Capital Programme Outturn for 2017-18, with it advising that the original budget approved by Council on 1 March 2017, had been further revised and approved by Council during the year to incorporate budgets brought forward from 2016-17, together with any new schemes and grant approvals. This information also included details of schemes where slippage is required, and the reasons for such slippage.

Table 6 in the report, gave details regarding Movement on Earmarked Reserves to 31 March 2018, whilst Table 7 following this, outlined Net Appropriations to/from Earmarked Reserves during Quarter 4. A full breakdown of the total movement on earmarked reserves for the period stated was provided at Appendix 5 to the report.

Members asked a number of questions of the Invitees, following which they left the meeting. These questions related to Home to School Transport, and concerns in respect of this regarding a review of Safe Routes to Schools. Members also asked questions in relation to a Volunteer Driver Service being provided.

In respect of the Social Services and Wellbeing Directorate, Members sought reassurance that the Directorates projected overspend would in time be met, notwithstanding the fact that there was a financial plan in place to secure this overspend.

Finally, Members voiced some concerns regarding the local Health Service’s lack of providing adequate financial resources towards the various services provided by Social Services.

These points were responded to by the various Invitees at the meeting, or requested as being followed up as expressed below.

The Committee then offered some comments and conclusions on this item, as mentioned hereunder.

Conclusions:

Chief Executives and Finance

The Committee recommended that Cabinet/CMB undertake a review into achievability of proposed Directorate budget reductions and further recommend that unrealistic offers are removed from the Medium Term Financial Strategy.

Education and Family Support Directorate

The Committee raised concerns relating to over half of the schools in the Borough have deficit budgets and queried the level of school budgeting competencies.  Members therefore recommended that financial training for all school governors is made mandatory to ensure effective management and scrutiny of their school budget.

Following discussions in relation to the pending review into appropriateness of catchment areas across the local authority, the Committee recommended that Ward Members are consulted as part of the exercise.

Social Services and Wellbeing Directorate

Members requested that when the subsequent Financial Performance report is presented to Corporate Overview and Scrutiny Committee, the Social Services and Wellbeing Future Service Delivery Plan is also delivered in conjunction with this.