Subject:

Families, Children & Learning

Revenue Budget Summary

Forecast		2019/20	Forecast	Forecast	Forecast	2019/20	Savings	Savings
Variance		Budget	Outturn	Variance	Variance	Savings	Achieved/	At
Month 2		Month 5	Month 5	Month 5	Month 5	Proposed	Anticipated	Risk
£'000	Service	£'000	£'000	£'000	%	£'000	£'000	£'000
0	Director of Families, Children & Learning	92	92	0	0.0%	116	116	0
736	Health, SEN & Disability Services	39,971	40,883	912	2.3%	1,007	944	63
512	Education & Skills	7,385	7,820	435	5.9%	318	266	52
(524)	Children's Safeguarding & Care	40,470	38,829	(1,641)	-4.1%	1,800	1,800	0
(14)	Quality Assurance & Performance	1,442	1,443	1	0.1%	79	79	0
710	Total Families, Children & Learning	89,360	89,067	(293)	-0.3%	3,320	3,205	115
(303)	Further Financial Recovery Measures (see below)	-	(83)	(83)	-	-	-	-
407	Residual Risk After Financial Recovery Measures	89,360	88,984	(376)	-0.4%	3,320	3,205	115

Explanation of Key Variances (Note: FTE/WTE = Full/Whole Time Equivalent)

Key
Variances
£'000	Service Area	Variance or Financial Recovery Measure Description
Further Directorate Financial Recovery Measures
(83)	Further Financial Recovery Measures projection	The directorate did develop an over-arching Financial Recovery Plan to address previous pressures. The Recovery plan included the following measures:
		- Review of Home to School transport costs
		- In-House Foster Care - Move to 65% in-house carers by the end of the year.
		- Reduce the average unit cost of placements
		- Review of council nurseries costs
		The only outstanding item is the review of Home to School transport costs.
Health, SEN & Disability Services
317	Demand Led - Children's Disability Placements	The projected number and unit costs of residential children's placements are both in excess of budgeted provision. This is due to the breakdown of several foster placements and the requirement to make 3 additional high cost residential placements in 2019/20.
200	Adults LD - Continuing Health Care (CHC) funding	The CCG is reviewing health needs of high cost clients and this is having an adverse impact on the funding of the Adults Learning Disability social care budget. Negotiations with the CCG are ongoing.
399	In-house disability services	There is an underlying pressure in both Children's and Adults in-house services. In particular, this relates to Drove Road and Beach House where services are being required to provide exceptionally high levels of support and accommodate emergency placements.
(9)	Adults LD - community care	The main community care budget is forecasting a small underspend. The average unit cost is 2.4% below budget provision and this is offset by an increase in client numbers (2.5%) against budget.
151	Direct Payments	There continues to be a pressure on the direct payments budget as there is an increase in both the numbers and unit costs.
(110)	Other	High number of vacancies and significant turnover as part of transition to new disability services structure.
(36)	Other	This relates to other small underspends across the Health, SEN and Disability branch.
Education & Skills
416	Home to School Transport	For 2019/20 an updated analysis has been undertaken by the budget holder and the latest position indicates a £0.416m overspend based on information for the old contract. The main area overspending relates to hired transport and reflects the latest numbers of children (340) being transported. In addition, work is continuing to be undertaken by consultants and the agreed savings profile for 2019/20 identifies net savings and this is shown in the Financial Recovery Plan. It is hoped however, that savings will significantly exceed this figure and progress will be monitored and reported through the Transport Project Governance Group and reflected in the Month 6 forecast. The calculation of the contract price rise for the old contract with City Cabs, relating to a change in fuel price, remains in dispute. The price rise took effect from 1 September 2018 and was not applied to any subsequent invoice due to the matter being contested. A request was made to the operator to include the minimum increase in its current invoices, prior to the end of the contract on 31 August 2019, but they have not complied to date.
(17)	Early Years	Council nurseries are now showing a breakeven position. Small underspend across youth related services.
36	Other	This mainly relates to PFI savings originally estimated for the CIPFA consultancy work started in 2018/19 and due to enter phase 2 in 2019/20, however, there is uncertainty over the commencement of this phase due to current construction of additional school places for September 2020.
Children's Safeguarding & Care
(1,278)	Demand-Led - Residential Agency Placements	The projected number of residential placements (26.94 FTE) is broken down as 23.94 FTE social care residential placements (children’s homes) and 3.00 FTE schools placements. The budget allowed for 30.00 FTE social care residential care placements and 3.50 FTE schools placements. The average unit cost of residential placements is slightly lower than the budgeted level at £3,734.66 per week (£51.07 per week below budget). The combination of the number of children placed being 6.56 FTE below the budgeted level and the unit costs result in the underspend of £1.278m.
216	Demand-Led - Independent Foster Agency (IFA) Placements	The number of children placed in Independent Foster Agency placements has decreased in recent years. During 2018/19 there were 98.73 FTE (compared with 118.68 FTE for 2017/18). The current projected number of placements in 2019/20 is 94.13 FTE, a reduction of 4.7%. The budget for IFA placements included significant levels of savings and was set at 86.10 FTE. The numbers being higher than the budget by 8.03 FTE results in a projected overspend of £0.216m.
143	Demand-Led - Secure Accommodation	It is estimated that during 2019/20 there will be 1.58 FTE secure (welfare) placements and 0.66 FTE secure (justice) placements. The budget allowed for 1.30 FTE welfare and 1.00 FTE justice placements during the year. There is currently one child in a secure (welfare) placement and none in a secure (justice) placement resulting in a projected underspend of £0.143m.
422	Demand-Led - Semi-independent/Supported placements	The number of semi-independent and supported living placements is projected to be 29.75 FTE and this is 5.15 FTE above the budgeted level. The average unit cost of these placements is currently below the budget. The higher forecast number of placements results in the overspend of £0.422m.
(386)	Demand-Led - In-House Fostering	As at the 31st August 2019 there were 140 children placed with ‘in-house’ foster carers and 143.13 FTE for the year. The budget, based on an increasing trend over the last few years and the drive to increase recruitment of in-house carers, was set at 153.60 FTE placements. This has resulted in the current projected underspend of £0.386m.
215	Demand-Led - Family & Friends placements, Child Arrangement Orders and Special Guardianship Orders	The budget allows for 332.90 FTE placements of these types. It is currently anticipated that there will be 338.49 FTE children in these placements during 2019/20 and this results in the overspend of £0.215m.
(354)	Demand-Led - Care Leavers	The projected number of care leaver placements in 2019/20 is 131.51 FTE. The budget allows for 160.10 FTE placements. The average unit cost of placements is also lower than budgeted and this has resulted in the underspend of £0.354m.
(287)	Demand-Led Unaccompanied Asylum Seeking Children (UASC) Teams, Living Expenses and Grant	The numbers of unaccompanied asylum seeking children has increased considerably in the last couple of years. The increase in the number of asylum seekers has required additional staffing and also an increase in other, non-accommodation living costs. The costs of looking after these children is funded by a grant from the Home Office and this has increased in 2019/20 by 25% resulting in the underspend of £0.287m.
81	Social Work Pods	The forecast variance accounts for current vacancies, the recruitment of newly qualified social workers in September and assumed staff turnover. An overspend of £0.142m is reported against the Partners in Change initiative as, the projected savings assumed in the Business plan are yet to be identified against the social work establishment and legal fees.
(143)	Preventive/S17	There is a significant underspend projected across the Preventive budgets. It is anticipated that, with continued scrutiny and cost effective use of funds, a year end underspend will be realised in 2019/20.
(23)	Adoptions	Based on current family finding activity and children looking for adoption the projected outturn on Interagency Adoptions is an underspend of £0.053m. Based on the current schedule of supported cases Adoption allowances are forecast to overspend by £0.030m.
20	Legal fees	The Underspend predominantly relates to forecast spend on court fees for the remainder of the year based on previous years trends.
(64)	Adolescent Service	The underspend relates to vacant posts and turnover.
(45)	Contact Service	The underspend reported assumes a full staffing establishment and a reduction in the use of sessional contact workers.
(158)	Other	This relates to minor underspends across the branch.
Quality Assurance & Performance
1	Other	Minor variances.

Health & Adult Social Care (HASC)

Revenue Budget Summary

Forecast		2019/20	Forecast	Forecast	Forecast	2019/20	Savings	Savings
Variance		Budget	Outturn	Variance	Variance	Savings	Achieved/	At
Month 2		Month 5	Month 5	Month 5	Month 5	Proposed	Anticipated	Risk
£'000	Service	£'000	£'000	£'000	%	£'000	£'000	£'000
3,751	Adult Social Care	33,354	37,682	4,328	13.0%	2,886	2,886	0
99	S75 Sussex Partnership Foundation Trust (SPFT)	16,340	16,461	121	0.7%	699	699	0
963	Integrated Commissioning	8,677	9,475	798	9.2%	455	455	0
0	Public Health	399	399	0	0.0%	314	314	0
4,813	Total Health & Adult Social Care	58,770	64,017	5,247	8.9%	4,354	4,354	0
(2,145)	Further Financial Recovery Measures (see below)	-	(1,462)	(1,462)	-	-	-	-
2,668	Residual Risk After Financial Recovery Measures	58,770	62,555	3,785	6.4%	4,354	4,354	0

Explanation of Key Variances

Key
Variances
£'000	Service Area	Variance or Financial Recovery Measure Description
Further Directorate Financial Recovery Measures
(1,462)	Further Financial Recovery Measures projection	The directorate has developed an over-arching Financial Recovery Plan to address the above pressures. The Recovery plan includes the following measures:
		- Targeted Reviews project
		- In house Services review
Adult Social Care
3,442	Demand-Led Community Care - Physical & Sensory Support	There is a continuing trend of increasing numbers of older people being discharged from hospital requiring social care services for the first time, as well as increased community care demand. This additional financial pressure is being partly mitigated by the Adult Care Support Grant and Improved Better Care fund for 2019/20. The forecast number of placements/packages is 2,324 WTE, which is above the budgeted level of 2,210 WTE placements. The average unit cost of a placement / package is also higher than the budgeted level at £182 per week (£17 per week above budget per client) due to pressures in the marketplace. The combination of the number of adults placed being 114 WTE above the budgeted level and the increased unit costs results in the overspend of £3.442m. There has been a significant reduction in Continuing Health Care contributions from the CCG over the last three financial years where in 2016/17 £0.602m was received (26 clients at £564 per week on average) but this reduced to £0.174m in 2017/18, £0.316m in 2018/19 and £0.122m to date in 2019/20 (six clients at £477 per week).
142	Demand-Led Community Care - Substance Misuse	There are relatively small numbers of clients within this service and this is in line with the expected demand. The average unit cost is higher than the budgeted unit cost resulting in the overspend of £0.142m.
776	In house provision	The saving of £0.614m set against in house provision (home care and residential) is reflected within the FRP and is subject to consultation.
(475)	Assessment teams	This is due to a number of temporary vacancies across the Assessment teams.
440	Sustainable Social Care	£0.440m of the overall £1.000m Sustainable Social Care savings target has been allocated to HASC and mitigating actions are being identified where possible.
3	Other
S75 Sussex Partnership Foundation Trust (SPFT)
(50)	Demand-Led - Memory Cognition Support	The unit cost is lower than had been anticipated resulting in the underspend projection of £0.050m. The forecast number of placements/packages is 406 WTE which is above the budgeted level of 399 WTE placements. However, the average unit cost of residential placements is lower than the budgeted level at £512 per week (£2 per week below budget). The combination of the number of adults placed being 7 WTE above than the budgeted level and the unit cost variance result in the underspend of £0.050m (before applying the agreed risk-share with Sussex Partnership Foundation Trust).
117	Demand-Led - Mental Health Support	The number of forecast placements are higher than budgeted and this results in the overspend projection of £0.117m. There is increasing need and complexity within this client group and the forecast number of placements/packages is 439 WTE, which is above the budgeted level of 418 WTE placements. The average unit cost of a placements/package is higher than the budgeted level at £296 per week (£12 per week less than the budget per client). The combination of the number of adults placed being 21 WTE more than the budgeted level and the increased unit costs result in the overspend of £0.117m (before applying the agreed risk-share with Sussex Partnership Foundation Trust).
54	Staffing Teams	This is due to an increase in overtime hours within the Approved Mental Health Professional (AMHP) Service.
Integrated Commissioning
800	External Funding	Brighton & Hove CCG made a recurrent reduction of £1.100m to council services in 2018/19. Council reinvestment funding of £0.300m was allocated which then results in a net pressure of £0.800m.
(2)	Other	Minor variances.

Economy, Environment & Culture

Revenue Budget Summary

Forecast		2019/20	Forecast	Forecast	Forecast	2019/20	Savings	Savings
Variance		Budget	Outturn	Variance	Variance	Savings	Achieved/	At
Month 2		Month 5	Month 5	Month 5	Month 5	Proposed	Anticipated	Risk
£'000	Service	£'000	£'000	£'000	%	£'000	£'000	£'000
(551)	Transport	1,013	305	(708)	-69.9%	1,167	1,167	0
879	City Environmental Management	30,463	31,523	1,060	3.5%	96	96	0
35	City Development & Regeneration	2,811	2,968	157	5.6%	224	224	0
(4)	Culture, Tourism & Sport	3,972	3,972	0	0.0%	316	316	0
0	Property	(622)	(622)	(0)	0.0%	120	120	0
359	Total Economy, Environment & Culture	37,637	38,146	509	1.4%	1,923	1,923	0
(359)	Further Financial Recovery Measures (see below)	-	(509)	(509)	-	-	-	-
0	Residual Risk After Financial Recovery Measures	37,637	37,637	0	0.0%	1,923	1,923	0

Explanation of Key Variances

Key
Variances
£'000	Service Area	Variance or Financial Recovery Measure Description
Further Directorate Financial Recovery Measures
(509)	Financial Recovery Plan	The directorate has developed an over-arching financial recovery plan to address the pressures detailed below across the various service headings. This includes the following measures:
	Directorate Wide	All corporately significant income streams, including parking income, will be forecast alongside finance officers to ensure robust forecasts are presented as part of the budget monitoring process. The ongoing identification of additional income and reduced spend to offset pressures on a recurrent basis.
	City Environmental Management	A comprehensive modernisation programme is being undertaken across the City Environmental Management services to reduce existing pressures. The existing fleet of vehicles is currently under review; the service is also undertaking a review of processes and contracts to seek efficiencies.
Transport
(600)	Parking Services	High level forecasts based on income generated to date suggest an overachievement of at least £0.600m in 2019/20. This is substantially due to higher than budgeted Penalty Charge Notice (PCN) income due to an increased seasonal variation in bus lane PCN’s issued during the summer period. However, parking income is demand led and difficult to predict and minor variations in demand can and do result in significant changes in income achieved. Forecasts will be regularly reviewed throughout the year. The forecast includes £0.038m additional pressure following approval of the Independent Remuneration Panel’s recommendation to retain Members parking permits at Norton Road and The Lanes car parks.
(100)	Concessionary Bus Fares	The Concessionary Bus Fares budget is forecast to underspend due to lower than budgeted and agreed contract costs.
(77)	Traffic Management	A forecast overachievement of income from hoardings, tables and chairs and A boards of £0.166m is partially offset by planned improvements to George Street, encampment protections in King's Place £0.061m, staff sickness and restructure delays £0.018m and a contribution towards Pride transport measures at Brighton station £0.010m.
69	Transport Projects and Engineering	Payments to bus operators are forecast to exceed budget by £0.110m. Bus shelter advertising receipts are forecast to exceed budget by £0.145m offset by bus shelter building works of £0.093m.
City Environmental Management
440	City Clean	Employee related costs due to additional communal bin rounds and additional collection drivers and operatives to meet service requirements have resulted in an expected additional cost of £0.440m. Anticipated commercial waste pressure is expected but not yet quantified whilst a review of service, price structure and customer base is being undertaken as part of a service modernisation programme.
550	Fleet & Maintenance	£0.400m variance forecast to meet service requirements including fuel, parts, tyres and staff costs. £0.100m income pressure relating to vehicle maintenance income due to delayed implementation of service. £0.050m cost to appoint two external transport management consultants for a period of 12 weeks to ensure regulatory compliance at Hollingdean Depot.
70	Stategy & Projects	Temporary overspend is forecast on public conveniences cleaning contract costs and delays in the receipt of income from charging in public conveniences (capital works require completing). There is also an unachievable textiles income target.
City Development & Regeneration
97	Developmental Planning	Additional spend on agency staff and consultants to support major applications and Building Control and Planning Policy income pressure being partially offset by increased income for Planning fees and Pre Application advice and some salaries underspends.
60	Assistant Director - EEC	The forecast £0.060m overspend is the agreed ongoing contribution to Legal Services for a permanent additional contracts lawyer to assist with EEC projects and contracts. The 2018/19 contribution was funded by a one-off allocation from capital funds. The ongoing contribution is unbudgeted and requires funding on a recurring basis.
Culture, Tourism & Sport
(7)	Royal Pavilion and Museums	Minor variances.
(4)	Sport and Leisure	Minor variances.
11	Venues	Minor variances.

Neighbourhood, Communities & Housing

Revenue Budget Summary

Forecast		2019/20	Forecast	Forecast	Forecast	2019/20	Savings	Savings
Variance		Budget	Outturn	Variance	Variance	Savings	Achieved/	At
Month 2		Month 5	Month 5	Month 5	Month 5	Proposed	Anticipated	Risk
£'000	Service	£'000	£'000	£'000	%	£'000	£'000	£'000
1,100	Housing General Fund	5,330	6,390	1,060	19.9%	143	143	0
0	Libraries	4,650	4,620	(30)	-0.6%	231	231	0
0	Communities, Equalities & Third Sector	2,882	2,882	0	0.0%	121	121	0
0	Safer Communities	2,518	2,518	0	0.0%	458	458	0
1,100	Total Neighbourhood, Communities & Housing	15,380	16,410	1,030	19.2%	953	953	0
(1,100)	Further Financial Recovery Measures (see below)	-	(1,060)	(1,060)	-	-	-	-
0	Residual Risk After Financial Recovery Measures	15,380	15,350	(30)	-0.2%	953	953	0

Explanation of Key Variances

Key
Variances
£'000	Service Area	Variance or Financial Recovery Measure Description
Further Directorate Financial Recovery Measures
(1,060)	Further Financial Recovery Measures projection	Housing General Fund services have a challenging savings target which is only part met and a forecast overspend in Temporary Accommodation. There are a range of measures being put in place in Temporary Accommodation to deliver a balanced budget. If these measures are unsuccessful, the Flexible Homelessness Support Grant (FHSG) can be used, as a last resort, to mitigate any final in-year overspend.
Housing General Fund
250	Housing General Fund savings	There are £0.250m of savings required of the Housing General Fund (some from 2017/18) to be identified. There is further work underway to deliver more savings in-year.
600	Temporary Accommodation	The forecast overspend is the result of higher than budgeted volumes and costs of temporary accommodation due to the continuing local pressures and bedding in the more onerous statutory requirements of the Housing Reduction Act. The number of households in temporary accommodation reduced by 208 to 1,495 by the end of 2018/19 but it has not decreased to the expected levels. The service continues to work to reduce the volume of households in temporary accommodation by focusing resources on earlier prevention of homelessness and using the grant funding to transform the service.
250	Seaside Homes	The forecast overspend is substantially the result of lower income collection following the impact of Universal Credit and tenancy turnover. The service are focusing on improving income collection, which may be more difficult as Universal Credit is rolled out, and improving void turnaround times. The council has agreed in principle with Seaside Homes to make changes to the agreement to offer fixed term tenancies and thereby discharge the Housing duty, enabling households to remain longer term (reducing churn or turnover). However, this will take a little more time to deliver as Seaside’s lender needs to consent and the change requires a variation to the Overarching Agreement.
(40)	Travellers	Accrual for extra sewerage costs no longer required (£0.035m); more income than budgeted from the Horsedean permanent site (£0.025m) offset by estimated extra repairs costs of £0.020m.
Libraries
(30)	Various	Minor variances.

Finance & Resources

Revenue Budget Summary

Forecast		2019/20	Forecast	Forecast	Forecast	2019/20	Savings	Savings
Variance		Budget	Outturn	Variance	Variance	Savings	Achieved/	At
Month 2		Month 5	Month 5	Month 5	Month 5	Proposed	Anticipated	Risk
£'000	Service	£'000	£'000	£'000	%	£'000	£'000	£'000
0	Finance (Mobo)	65	108	43	66.2%	30	30	0
0	HR & Organisational Development (Mobo)	1,105	1,105	0	0.0%	0	0	0
150	IT&D (Mobo)	2,756	2,906	150	5.4%	65	0	65
0	Procurement (Mobo)	(416)	(416)	0	0.0%	0	0	0
0	Business Operations (Mobo)	92	206	114	123.9%	0	0	0
159	Revenues & Benefits (Mobo)	5,004	5,004	0	0.0%	192	192	0
(325)	Housing Benefit Subsidy	(901)	(859)	42	4.7%	0	0	0
0	Contribution to Orbis	12,985	13,006	21	0.2%	735	735	0
(16)	Total Finance & Resources	20,690	21,060	370	1.8%	1,022	957	65

Mobo = Budgets held by Orbis and Managed on behalf of the relevant partner i.e. they are sovereign, non-partnership budgets.

Explanation of Key Variances

Key
Variances
£'000	Service Area	Variance or Financial Recovery Measure Description
Finance (Mobo)
43	Finance (including Audit)	The service is forecasting a pressure for the year of £0.043m, mainly due to higher than expected IT Systems costs following a number of mandatory upgrades, together with additional one-off external audit fees and a reduced contribution from the Dedicated Schools Grant for Schools Forum support.
IT&D (Mobo)
150	IT&D	At Month 5, IT&D have identified a net pressure of £1.050m due to budget pressures in some areas, particularly ICT contracts and some savings targets. Although there have been some individual contract savings, the overall pressure in the contracts budget has increased. The forecast has reduced by £0.250 this month due to Modernisation funding having been applied for the increase in Microsoft licencing costs. The service is working to identify funding to minimise these pressures including appropriate use of the IT&D Reserve and capitalisation of legitimate costs. To manage this in 2019/20 there has been a re-examination of funding within the Modernisation fund including the substantial allocation agreed this February. These allocations include two years’ contracts costs for Mendix and Dell Boomi, and also resources brought forward to support the Digital Organisation Plan (DOP). Overall this will offset the overspend by £0.900m, bringing the pressure down to £0.150m.
Business Operations (Mobo)
114	Business Operations	There is an expected overspend of £0.114m in relation to an increase in system costs in respect of iTrent, Civica Financials and ICON HR and Financial systems. These overspends have arisen due to renegotiation of contracts and are based on sovereign decisions taken.
Revenues & Benefits (Mobo)
0	Revenues & Benefits	At Month 5 the service is now forecast to breakeven due to staff vacancies contributing to a forecast staffing underspend of £0.138m that is partially offsetting an underachievement in court costs income of £0.106m and an overspend on bank charges of £0.039m.
Housing Benefit Subsidy
42	HB Subsidy	There is a forecast surplus of £0.200m on the recovery of overpaid former Council Tax Benefits based on the first five months of 2019/20. There is a forecast pressure of £0.242m on the main subsidy budgets which is is mostly (£0.254m) due to the subsidy loss on a particular type of benefit for vulnerable tenants. This is offset by the forecast position on the net recovery of Housing Benefit overpayments being better than expected by £0.038m and there are other minor adverse variances of £0.026m.
F&R Contribution to ORBIS
21		There were unachievable staff savings in Business Operations and IT&D, offset partly by a reduced pension adjustment. The expected overspend of £0.100m for Orbis services would lead to a higher contribution cost to BHCC of £0.021m.

Strategy, Governance & Law

Revenue Budget Summary

Forecast		2019/20	Forecast	Forecast	Forecast	2019/20	Savings	Savings
Variance		Budget	Outturn	Variance	Variance	Savings	Achieved/	At
Month 2		Month 5	Month 5	Month 5	Month 5	Proposed	Anticipated	Risk
£'000	Service	£'000	£'000	£'000	%	£'000	£'000	£'000
38	Corporate Policy	697	697	0	0.0%	24	24	0
0	Legal Services	1,331	1,330	(1)	-0.1%	93	93	0
0	Democratic & Civic Office Services	1,740	1,740	0	0.0%	78	78	0
338	Life Events	103	475	372	361.2%	316	155	161
0	Performance, Improvement & Programmes	628	616	(12)	-1.9%	46	46	0
0	Communications	660	660	0	0.0%	51	51	0
376	Total Strategy, Governance & Law	5,159	5,518	359	7.0%	608	447	161

Explanation of Key Variances

Key
Variances
£'000	Service Area	Variance or Financial Recovery Measure Description
Corporate Policy
0	Policy, Partnerships & Scrutiny	The funding shortfall reported last time is being negotiated, and underspends elsewhere have been identified.
Legal Services
(1)		Minor variances
Life Events
372	Life Events	There is a declared pressure at Month 5 of £0.372m, after an agreed corporate contribution of £0.050m towards income pressures has been applied. The Registrars Service has a £0.200m saving to deliver against statutory fees for certificates, but is forecasting to be short of this income by £0.182m, due to a higher than expected drop in demand, as a result of the cost increase from £4 to £11. In light of this pressure from the saving, it is expected that the shortfall will be partly offset by corporate funding of £0.050m. The service, liaising with Finance, will continue to re-examine this forecast through the year. Elsewhere in Registrars the termination of services, in particular of nationality checking services has led to a further pressure of £0.056m and there are other income pressures of £0.021m. Bereavement Services have also flagged up likely commitments for cemetery works, covering urgent repairs and maintenance for roadways and trees costing an estimated £0.100m. The service is also declaring an expected overspend of £0.053m, being an income pressure of £0.031m (especially in the Mortuary), and other costs of £0.022m. In Local Land Charges, an increase in (cheaper) Private Searches has led to an expected income shortfall of £0.040m (an increase of £0.021m this month). Other variances accounted for an underspend of £0.030m including £0.025m vacancy management in Elections.
Performance, Improvement & Programmes
(12)	Performance, Improvement & Programmes	Vacancies.

Corporate Budgets

Revenue Budget Summary

Forecast		2019/20	Forecast	Forecast	Forecast	2019/20	Savings	Savings
Variance		Budget	Outturn	Variance	Variance	Savings	Achieved/	At
Month 2		Month 5	Month 5	Month 5	Month 5	Proposed	Anticipated	Risk
£'000	Service	£'000	£'000	£'000	%	£'000	£'000	£'000
0	Bulk Insurance Premia	3,069	3,069	0	0.0%	0	0	0
0	Capital Financing Costs	5,659	5,659	0	0.0%	0	0	0
0	Levies & Precepts	207	207	0	0.0%	0	0	0
0	Unallocated Contingency & Risk Provisions	522	522	0	0.0%	0	0	0
(42)	Unringfenced Grants	(25,320)	(25,362)	(42)	-0.2%	0	0	0
34	Other Corporate Items	5,073	5,107	34	0.7%	56	22	34
(8)	Total Corporately-held Budgets	(10,790)	(10,798)	(8)	-0.1%	56	22	34

Explanation of Key Variances

Key
Variances
£'000	Service Area	Variance or Financial Recovery Measure Description
Unringfenced Grants
(42)	Releasing grant pressure funding	Releasing residual grant pressure funding for specific grants as only one grant remains unannounced (Department for Health - Local Reform and Community Voices Grant).
Other Corporate Items
34	Pension Costs	Costs for 2019/20 are higher than anticipated at budget setting time.

Housing Revenue Account (HRA)

Revenue Budget Summary

Forecast		2019/20	Forecast	Forecast	Forecast	2019/20	Savings	Savings
Variance		Budget	Outturn	Variance	Variance	Savings	Achieved/	At
Month 2		Month 5	Month 5	Month 5	Month 5	Proposed	Anticipated	Risk
£'000	Service	£'000	£'000	£'000	%	£'000	£'000	£'000
(320)	Capital Financing	31,335	31,015	(320)	-1.0%	0	0	0
0	Housing Management & Support	4,521	4,381	(140)	-3.1%	80	80	0
0	Head of City Development & Regeneration	316	316	0	0.0%	0	0	0
0	Income, Involvement & Improvement	(46,303)	(46,783)	(480)	-1.0%	50	50	0
0	Property & Investment	7,969	8,769	800	10.0%	100	100	0
0	Tenancy Services	2,162	2,222	60	2.8%	50	50	0
(320)	Total Housing Revenue Account	0	(80)	(80)	0.0%	280	280	0

Explanation of Key Variances

Key
Variances
£'000	Service Area	Variance Description
Capital Financing
(320)	Financing costs	Significant reprofiling of HRA capital expenditure from 2018/19 into 2019/20 impacts on the timing of when borrowing is required to be undertaken to fund the expenditure. This has resulted in lower interest charges being incurred during 2019/20 compared to the original budget forecast, as at Month 2.
Housing Management & Support
(100)	Rents	Projected income is more than the budget assumptions for Temporary Accommodation.
(40)	Employee costs	Projected underspend on agency staff budget.
Income, Involvement & Improvement
(350)	Rents	Reduced level of rent loss through voids and projected income is also slightly more than budget assumptions. The revised income level will be accommodated in the 2020/21 budget setting process.
(130)	Employee costs	Forecast underspend due to staff vacancies in the Income Management team.
Property & Investment
800	Leaseholder - Service Charges Major Works	A lower than expected level of leasehold service charge is being forecast for major works in 2019/20. Provision in the HRA budget allowed for billing of £1.8m, based on likely completion times for a large number of projects and the fact that previous years’ estimates had been under the level of billing. Due to some projects taking longer to complete or reach final account, a lower level of £1m was actually billed in 2019/20 with the remainder forecast for billing in 2020/21.
Tenancy Services
(100)	Rents & Service Charges	Projected income is slightly more than budget assumptions for Seniors Housing.
80	Premises	Council Tax costs are higher than budgeted and there are additional costs for rubbish clearance, resulting from an increase in fly-tipping.
60	Employees costs	Projected overspend as a result of additional staff cover and regrading.
20	Supplies & Services	Small overspend across the service.

Key
Variances
£'000	Service Area	Variance Description
Early Years Block (including delegated to Schools)
(30)	Additional Support Funding for 2, 3 & 4 year olds	Estimated underspend for 2 year olds
(130)	Early years free entitlement	Unallocated underspend from 2018/19
(88)	Early years free entitlement	Anticipated retrospective adjustment made by DfE for 2018/19 provision
(35)	Early years free entitlement 2 year olds	Estimated underspend for 2 year old payments to PVI providers
(20)	Early years free entitlement 3 & 4 year olds	Estimated underspend for 3 & 4 year old payments to PVI providers
(11)	Other	Balance of variances on other cost centres.
High Needs Block (excluding delegated to Schools)
108	Inclusion Support Service	Impact of school traded service element for BHISS £0.104m and Literacy Support Service £0.004m.
(83)	FE and post-19 specialist provision	FE college and post-19 specialist provision - placements for 2019/20 academic year being finalised.
64	High needs pupils in other LAs	Increase in the number of high needs pupils being educated in other LA provision.
58	High needs top-up funding	Projected overspend for provision within mainstream and special schools within the city.
44	Agency Placements	Projected overspend for new placements in the Autumn Term.
(36)	Other	Balance of variances on other cost centres.
Exceptions and Growth Fund
30	Historic Pension costs	Historic pension liabilities.
(16)	Other	Balance of variances on other cost centres.