Agenda item

Purpose of the report:  Scrutiny of budgets

This report presents the revenue and capital budget monitoring update for August 2013 with projected year-end outturn. The Performance and Finance Sub-Group will report back on any key issues following the detailed discussion of this item at their meeting on 30 September 2013.

Declarations of interest: None.

Witnesses:

Kevin Kilburn, Chief Finance Officer

Key points raised during the discussion:

1.    A summary of the discussion held at the Council Overview & Scrutiny Committee’s Performance & Finance Sub-Group was shared with the Committee. The Performance & Finance Sub-Group considered the August 2013 budget monitoring report at its meeting on Monday 30 September 2013 and identified the following issues for further discussion by the Committee:

• Uncertainties relating to the revenue budget, in particular the likelihood of achieving the savings target for social capital in Adult Social Care in the current financial year (paragraph 10 on page 38).

• Further information was requested about the reasons behind the increase in the number of IT users in the Council from 7,700 in 2011/12 to just under 10,000 this year (paragraph 35 on page 43), and whether better planning could have prevented this becoming a budget pressure in the current year.

• Information was requested about the number of the total staff vacancies as at 31 August 2013 (683) which were filled by temporary staff (page 48).

2.    The Sub-Group also stressed the need for Select Committees and the Council Overview & Scrutiny Committee to be provided with sufficient detail of potential savings identified by the Cabinet to enable them to provide effective challenge and robust advice.  This was particularly crucial if the Council Overview & Scrutiny Committee was to fulfil its role of reviewing the Council’s overall position recommending any re-allocation of funds from one directorate to another.

3.    The Committee commented that there were still significant concerns with regards to the likelihood of Adult Social Care meeting its 2013/14 savings. Members were informed that the Adult Social Care Select Committee had made two recommendations to Cabinet with regards to this. Members expressed concerns that the budget-setting process had allocated such a significant saving to social capital measures.

4.    Officers commented that the expectation had been that there would be some slippage in the savings targets related to social capital, and that Whole Systems funding had been set aside to meet any shortfall. It was highlighted that no request was to be made to draw down this funding, until the potential to make these savings within the financial year had been assessed. The Committee was informed that any use of this funding would have to be done in consultation with the health service. Officers informed the Committee that they anticipated the measures related to social capital would begin to show an impact by the September 2013 budget monitoring stage.

5.    The Committee asked for clarification regarding the usage of Whole Systems funding. Officers commented that this was money the NHS was required to allocate to the local authority, with the intention of offsetting an increase in demand on acute services in the health service, through preventative work. It was highlighted that other local authorities had used the funding to met shortfalls in their budgets.

6.    Officers highlighted that the average cost per service user in Adult Social Care was coming down, and that the level of demand had remained consistent this year. Members were informed that future savings identified in the Medium Term Financial Plan (MTFP) had been made anticipating increased demand.

7.    The Committee queried whether £3.3 million of funding for sexual health services for Public Health that had been delegated to the Clinical Commissioning Groups (CCGs) in error was recoverable. Officers confirmed that there were ongoing discussions with the CCGs in order to claim back this funding. It was clarified that sexual health services were being provided, but that the absence of funding was preventing new initiatives from beginning.

8.    The Committee was informed that a budget pressure in relation to an increase in IT users was result of actions identified within the MTFP to improve efficiencies within services. Officers commented that they confident that the spend could be contained within the IMT budget. The Committee asked for further information with regards to why this increase had not been anticipated within the business planning for the current financial year.

9.    The Committee asked for further details on the savings planned for the next financial year. It was confirmed that these would be communicated as part of the ongoing business planning process in the coming few months.

10.  Members asked for further details regarding the usage of the Ranger House, the Parkside House, and Egham purchases. It was confirmed this would be circulated to the Committee following the meeting.

Recommendations:

None.

Actions/further information to be provided:

Information was requested to address the second and third bullet-points from the Sub-Group report.

Officers to provide details on the following:

·         IMT Business Planning and the increase in the number of IT users

·         The usage of the Ranger House, the Parkside House, and Egham purchases.

Committee Next Steps:

None.