Agenda item

To consider a report by the Head of Scrutiny and Member Development setting out the Financial Health Monitoring 2011/12- Month 6 Report.

At the last meeting of the Board it was agreed that for today’s meeting the focus would be on Children’s Services.  Officers from the Children’s Directorate have been invited to attend along with the Executive Board Member, Councillor Blake and the Chair of Scrutiny Board (Children and Families), Councillor Chapman.  The Chief Officer (Financial Management) will also be in attendance to respond to any general budget questions.

(Report attached)

The Head of Scrutiny and Member Development submitted a report which provided information for Financial Health Monitoring 2011/12 month 6.

The Board had agreed in October that the November meeting would focus on Children’s Services.

The following Councillors and Officers attended;

Executive Board Member Children’s Services, Councillor Blake,

Chair of Scrutiny Board (Children and Families), Councillor Chapman

Chief Officer (Financial Management)

Director of Children’s Services

Head of Finance, Children’s Services

Opening the discussion the Chief Officer (Financial Management) provided Members with a summary overview of the financial position of the Council at month 6.

The overall projected overspend at the half year stage was £7.2m, which was largely unchanged from last month.

In brief summary the issues discussed relating to the overall financial position of the Council were;

• The increased level of reserves
• Non achievement of assumed procurement savings for residential and nursing care packages within Adult Social Care
• Income shortfalls mainly relating to planning and building regulation fees, car parking, advertising and children’s centres
• Projected surplus in the Housing Revenue Account
• The high levels of financial performance management in relation to council tax collection, non-domestic rates and Sundry income

In response to a question on phased budgeting the Chief Officer (Financial Management) explained the role of the monthly budget monitoring reports and the requirements of budget holders and reviewing officers to monitor budget projections against real time expenditure.  The Board would be provided with month 6 actual overspend.

Following these general budget discussions the Board focused on Children’s Services.  A Document entitled, Children’s Services – Turning the curve on placements for looked after children, referred to as the ‘Plan on a Page’ was tabled by the Director of Children’s Services.

Whilst Members acknowledged the considerable improvements made by Children’s Services which were now being evidenced by good external inspections, the following issues were raised and discussed;

• The number of externally provided residential and fostering placements in Children’s Services and consequential budget pressures
• Opportunities to safely reduce reliance on external placements through smarter and better working with partners, increased preventative work and maximising the role of fostering and the City Councils ‘offer’ in relation to fostering.
• Scope to reduce the costs of external placements that continue to be needed
• Ensuring all partners made appropriate financial contributions to the service
• The need to set realistic budgets to meet demand whilst continuing to turning the curve on placements
• The importance of locality working in decision making and the development of a ‘total place’ culture in the delivery and funding of services.

Throughout the discussion Members were informed of, and acknowledged the work being undertaken by Scrutiny Board (Children and Families) in addressing a number of these issues and noted a general invitation given by the Scrutiny Chair, Councillor Chapman, for Members to observe this work.

RESOLVED –

  (i)    To thank those members and officers attending for their input

(ii)  To note the Council’s Financial Performance for month 6

(ii)  To receive the additional information requested

(Councillor Lowe left the meeting at this point at 11.20 am)