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Meeting: 14/11/2018 - Cabinet (Item 254)

254 Budget Monitoring: Month 6 pdf icon PDF 75 KB

Report of the County Treasurer (CT/18/09) on the budget monitoring position at month 6, attached.

Additional documents:

Minutes:

(Councillors Connett and Dewhirst attended in accordance with Standing Order 25(2) and spoke to this item).

 

The Cabinet considered the Report of the County Treasurer (CT/18/9) on the Budget Monitoring position at Month 6 for 2018/2019, circulated prior to the meeting in accordance with regulation 7(4) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.

 

The Cabinet Member for Resources Management highlighted that the total overspend at month 6 was forecast at £8.15millions, an increase of £50,000 from month 4. However, the position assumed a request to carry forward £2.4 millions to next years Dedicated Schools Grant (DSG), to be agreed by the Devon Education Forum.

 

Adult Care and Health Services were forecast to underspend by £488,000. At month 4 the service was forecasting a breakeven outturn. This position took into account £455,000 of management action yet to be achieved but assessed as achievable.

 

Children’s Services were showing a forecast overspend of £9.9 millions, an increase of £1.2 millions from month 4, with, in the main, overspending on children’s social care. Pressure continued within residential placements but were also appearing across the disabled children short breaks service, social work teams and the Atkinson secure home.

 

Highways, Infrastructure Development and Waste were also forecasting a break-even position at Month 6.

 

Communities, Public Health, Environment and Prosperity (COPHEP) were showing a forecast overspend of £153,000, the result of the countywide research and intelligence review project.

 

Corporate Services were forecasting a breakeven position, but this was dependent upon services still delivering management action totalling £65,000, but this was also assessed as achievable.

 

Non-service items were forecast to underspend by £1.4 millions, mainly due to additional investment income and a one-off underspend associated with an estimate for remedial works being undertaken at Dartington School not fully materialising in the year, the release of £302,000 of the schools improvement grant and a review of the pension contribution shortfall releasing £319,000.

 

The capital programme for the Council was £149.6 millions, with a year end forecast of £131.5 millions, of which £110.8 millions was externally funded, so slippage of £18.0 millions, in the main, due to scheme variations and programme delays in Highways (£1.3 millions), Adult Care & Health (£2.9 millions) and Planning and Transportation (£6.7 millions).

 

The Autumn Budget Statement confirmed additional Capital funding for 2018/19, therefore the Council was expecting to receive up to £4.0 millions additional capital funding for Highways and up to £5.2 millions for Schools. Disabled Facilities Grants could increase by £800,000.

 

The Report then outlined a number of additional savings initiatives to reduce expenditure by just under £5 millions, which ranged from introducing a process whereby recruitment to fill

vacancies commenced two months after a post holder had left employment, capitalisation of more revenue expenditure and other initiatives such as cessation of none essential overtime, conference attendance, hospitality and travel and subsistence allowances unless externally funded and staff being able to purchase additional leave.

 

The Chief Executive re-assured Members that many of the suggestions related to ‘improved  ...  view the full minutes text for item 254


Meeting: 08/11/2017 - Cabinet (Item 80)

80 Budget Monitoring: Month 6 pdf icon PDF 61 KB

Report of the County Treasurer (CT/17/88), on the Budget Monitoring position at month 6, attached.

Additional documents:

Minutes:

(Councillors Atkinson, Biederman, Connett, Dewhirst and Hannaford attended in accordance with Standing Order 25(2) and spoke to this item).

 

The Cabinet considered the Report of the County Treasurer (CT/17/88) on the financial position at Month 6 and outlining areas of specific pressures on budgets, potential under and over-spendings in the current financial year and management action being taken where individual budget lines were experiencing pressures. 

 

The Cabinet noted that, overall, the forecast for revenue spending at year-end now showed an underspend of £2.457 millions, an increase in underspend of £0.461 million from the position at Month 4 (a forecasted underspend of £1.996 millions).

 

The Cabinet noted that Adult Care and Health services was forecast to underspend by £4.170 millions, which was an increase of £398,000 from that reported at month 4, mainly due to additional staff vacancy savings within the Commissioning team. However, the risks facing the service, included pending HMRC action on National Living Wage compliance for sleep in night shifts and children transitioning to adult services.

 

Children’s Services were showing a forecast overspend of £2.697 millions, a decline on the month 4 position of £1.054 millions. The high cost of independent residential placements in Children’s Social Care was a factor in the forecast, but had been partially offset by other savings across the remaining budgets.

 

Highways, Infrastructure Development and Waste were showing a small underspend of £64,000, however the risks to the position, such as extreme weather and waste disposal tonnages would be monitored throughout the year.

 

Also Corporate Services were forecast to break-even at the year end.

 

In relation to capital expenditure, spending was estimated at £161.372 millions. The year-end forecast was £138.910 millions, producing slippage of £22.462 millions, in the main with schemes such as Marsh Barton station, A361 Gornhay to M5 and Connecting Devon & Somerset.

 

In summary, Cabinet noted that the ongoing pressures in Children’s Services were concerning, not only in relation to the current year but the ongoing impact over the medium term.

 

Whilst the overall underspend was forecast at £2.457 millions, caution should be taken as there was still time for storm events and winter pressures to occur.

 

The matter having been debated and the options and/or alternatives and other relevant factors set out in the County Treasurer’s Report and/or referred to above having been considered:

 

It was MOVED by Councillor Clatworthy, SECONDED by Councillor Hart, and

 

RESOLVED that the financial position and forecast for the Authority at Month 6 (to the end of September) of the financial year be noted.



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