Agenda item

A report from the Deputy Cabinet Member for Finance and Corporate Affairs is attached.

The Cabinet Member for Finance and Resources submitted a report informing Cabinet of the Council’s financial position for the period April to December 2013 and projects the likely outturn at the end of 2013/14.

The report included Prudential Indicators in accordance with CIPFA’s Prudential Code.

Questions and comments were invited from the Committee and the following issues were raised:

·      The Chair, Councillor Hankey, placed on record thanks to the   Council’s Financial Team, Executive Directors and Portfolio Holders for their efforts in reducing the forecast overspend at month 9.

·      In response to a question relating to Adult Care cost pressures, the Executive Director explained that a number of preventative strategies would take time to bed in, with the full benefits not being realised until future years. It was highlighted that although the cost per case had been reduced through improved procurement and the use of personal budgets, a rising demand and some existing expensive care packages still contributed to budget pressures in this area.

·      In response to a question from Councillor Daly concerning non service specific areas, the Executive Director acknowledged that, without the forecast underspend in this area, the budget would, at month 9, be showing an increased overspend. The Assistant Director of Resources explained that it was important to consider the direction of travel in respect of the financial position and highlighted the work of Departments to manage down cost pressures during the course of the financial year.

·      With regard to the positive contribution to the budget from the Council’s Treasury Management activity, it was stressed that all Executive Directors were aware of the necessity to manage cost pressures and in no way be reliant on Treasury Management to balance departmental budgets.

·      In response to a question concerning SEN transport, the Assistant Director of Resources confirmed that this was procured through an ongoing tendering process to ensure value for money.

·      Councillor O’Hanlon expressed concerns in relation to under spending in Children’s Services for the use of one off funding. The Executive Director referred to external grants being off-set against the departments existing level of resource and highlighted that in some cases external funding could contribute to existing workstreams. It was explained that there was some headroom within particular grants and that carrying funds forward was permitted in certain cases.

·           In response to a question from Councillor O’Hanlon concerning severances, staff vacancies and sickness levels, the Assistant Director of Resources reported that there had been no drop in performance highlighted within the Council’s Corporate Plan. With specific regard to sickness levels, the Assistant Director referred to the role of the Audit Committee in monitoring this area and stated that there had been no discernible increase in levels of staff sickness.

·           Councillor James enquired whether demand pressures would be built into next years budget? The Assistant Director of Resources referred to the Council’s Medium Term Financial Strategy which sets out that demand pressures are not built into the budget. The Cabinet Member highlighted the role of Star Chambers in identifying demand pressures at an early stage.

·           In response to concerns about the management of the Six Town Housing Capital Programme, the Assistant Director of Resources confirmed that fortnightly meetings were now taking place between himself and Six Town Housing to monitor the situation and try to ensure the programme will spend to budget.

It was agreed:

That the financial position of the Council as at 31 December 2013 be noted.