Issue - items at meetings - Targeted Budget Management (TBM) 2014/15 Month 7

(1)          That the Committee note the forecast outturn position for the General Fund, which is an overspend of £4.368m. This consists of £4.052m on council controlled budgets and £0.316m on the council’s share of the NHS managed Section 75 services.

(2)          That the Committee note that there is a further £1.890m of as yet unallocated risk provision that could be used to mitigate against this overspend.

(3)          That the Committee note the forecast outturn for the Housing Revenue Account (HRA), which is an underspend of £0.156m.

(4)          That the Committee note the forecast outturn position for the Dedicated Schools Grant which is an underspend of £1.115m

(5)          That the Committee note the forecast outturn position on the capital programme.

(6)          That the Committee approve the capital programme variations and reprofiles in Appendix 3 and new capital schemes in Appendix 4.

93.1       The Committee considered a report of the Executive Director for Finance & Resources in relation to Targeted Budget Management (TBM) 2014/15 – Month 7. TBM was a key component of the Council’s overall performance monitoring and control framework; the report set out the forecast outturn position (Month 7) on the Council’s revenue and capital budget for the financial year 2014/15. Month 7 showed an improvement to the position overall at just past the mid-point in the year, but there remained significant pressures and forecast risks to manage across the General Fund Revenue Budget.

93.2       In response to Councillor Sykes the Executive Director for Children’s Services explained that the underspend in the Dedicated Schools Grant related to the schools themselves and the early years fund. Where schools had underspends that were greater than reasonable there was a mechanism to challenge this, and even withdraw funds if the local authority considered this necessary. Councillor Shanks added that this was considered by the Schools Forum and there was also a role for school governors in challenging budgets. In relation to GCSE performance it was noted that whilst there was some disappointment with the performance this year; the primary school attainment had been very strong.  

93.3       In response to Councillor A. Norman the Chair explained that close work was being undertaken with health partners to progress work in relation to the Better Care Fund, and Councillor A. Norman noted that the new governance arrangements for the Health & Wellbeing Board allowed for cross-party work with health partners for the advantage of residents.

93.4       In response to further questions from Councillor A. Norman the Executive Director for Finance & Resources explained that the review of trade union facility time had been started, and this would include mapping out the costs of the work place reps. The deduction for strike pay would be forecast into budget holders’ TBM forecast so the funds could not be spent elsewhere. The uncertain elements of the VFM programme were a reflection of the challenges in managing the demand of services in both Adult and Children’s Services.

93.5       The Executive Director for Environment, Development & Housing responded to Councillor A. Norman that staff sickness in City Clean was being closely monitored; where the service would be directly affected it could be necessary to use temporary agency staff. One of the key issues in the City Clean service redesign would be to strengthen the local management team and build confidence with the workforce. It would also be important to make it clear that sickness imposed additional costs to the service, and the intention of the service redesign was to create the right motivation with staff to reduce sickness. In relation to the Horsdean site; the water drainage had been a requirement from the Environment Agency; the solution should be available in the new year, and there was a condition in the planning consent to consult with the local amenity society.

93.6       The Chair then put the recommendations to the vote.

93.7       RESOLVED:

(1)       That the Committee note the forecast outturn position for the General Fund, which is an overspend of £4.368m. This consists of £4.052m on council controlled budgets and £0.316m on the council’s share of the NHS managed Section 75 services.

(2)       That the Committee note that there is a further £1.890m of as yet unallocated risk provision that could be used to mitigate against this overspend.

(3)       That the Committee note the forecast outturn for the Housing Revenue Account (HRA), which is an underspend of £0.156m.

(4)       That the Committee note the forecast outturn position for the Dedicated Schools Grant which is an underspend of £1.115m

(5)       That the Committee note the forecast outturn position on the capital programme.

(6)       That the Committee approve the capital programme variations and reprofiles in Appendix 3 and new capital schemes in Appendix 4.