Agenda item - Targeted Budget Management (TBM) 2015/16 Month 7

Extract from the proceedings of the Policy & Resources Committee meeting held on 3 December 2015; together with reports of the Acting Executive Director of Finance & Resources (copies attached).

1)            That Committee note the report

63.1      The Committee considered a report of the Acting Director, Finance & Resources that provided the Targeted Budget Management 2015/16 Month 7 report and an extract from the proceedings of the Policy & Resources Committee meeting held on 3 December 2015 from which the report had been referred; together with a specific report to the Audit & Standards Committee from the Acting Director of Finance & Resources.

63.2      Diane Bushell sought assurance that the saving controls implemented would not have a knock-on effect that would lead to an unforeseen increase in costs elsewhere.

63.3      The Head of Corporate Finance and Resources stated that consideration was given when designing the saving controls to any knock on effects in expenditure that would cancel out the potential saving. Furthermore, the controls were reviewed by Internal Audit subsequent to their implementation and monitored at senior manager level to ensure the savings were realised and there were no unintended consequences.

63.4      Councillor Sykes noted that paragraph 3.11 stated that savings plans for 2016/17 had been brought forward and asked if this had been carried out with democratic oversight.

63.5      The Head of Corporate Finance and Resources clarified that only a limited number of savings plans had been brought forward and that policy decisions were necessary, this had been sought through reports to Policy & Resources Committee as had occurred with recent decisions taken on 4 November 2015 at a Special Policy & Resources Committee in relation to proposed Adult Social Care service changes.

63.6      Councillor Taylor noted that there appeared to be a trend that the council would overspend in the early stages of the financial year with that overspend being reversed by year end and asked if that indicated that processes needed to be improved. Councillor Taylor also asked how the Value for Money (VFM) Programme was progressing as it had not met its target in the previous financial year.

63.7      The Head of Corporate Finance and Resources stated that the council’s budget had a number of volatile demands on services that could lead to an unforeseen increase or decrease in costs and in some respects, identifying rather than supressing overspends early in the financial year was positive as it allowed thorough scrutiny and review and appropriate action to be taken early. The Acting Director, Finance & Resources indicated that the graph on page 54 of the agenda highlighted the current savings monitoring programme which included VFM savings.

63.8      Councillor Druitt asked if the current spending controls programme was a matter of deferring the inevitable need to cut services.

63.9      The Head of Corporate Finance and Resources confirmed that a feature of the current spending controls was to encourage the redesign of services that may lead to the deletion or removal of currently vacant posts plus a number of one-off savings.

63.10   RESOLVED- That Committee note the report