Issue - meetings

Cabinet Portfolio:                 Corporate Services and Finance

Strategic Directorate:           Finance and Customer Services

Consideration was given to the report presented by Councillor Alam, Cabinet Member, which set out the financial position as at the end of May 2019 and was based on actual costs and income for the first two months of 2019/20 and forecast for the remainder of the financial year. 

This was the first monitoring report of the financial year and would continue to be reported to the Cabinet on a regular basis.  As at May, 2019, the Council had a forecasted year-end overspend of £4.5m on the General Fund.

The Strategic Director for Finance and Customer Services pointed out it would be premature take any drastic measures, but the right actions were taking place in service areas.

Budgets were realigned for Children’s Services and whilst there were still pressures with looked after children numbers, the numbers were on track for what had been planned for within the budget.  The main issue was the cost of particular placements, but work was underway to address this along with the concerns about the High Needs Block within the Dedicated schools Grant.

Rotherham’s deficit in the High Needs Block was greater than some Councils, but a recovery plan had been submitted to the Department for Education.

In terms of adult care the pressure was predominantly around the demand for services, demographics etc. Work again was underway around all the different mechanisms and a new operating model had been adopted to properly and safely address the pressures.

There was an underspend already in year around Treasury Management, but the Finance Directorate were cautious in those projections as it was dependent upon interest rates and other  market factors around borrowing and investment.  The situation may well improve further, but the position on treasury management could support the Budget if it was required to.

Discussion ensued on the extent to which projected overspends have delayed implementation of restructuring or the cost-saving measures expected and it was pointed out that in Adult Social Care there was a significant restructure underway with a new target operating model.  One of the other pressures was round assessment packages and the reassessment of people's needs and levels of support.  There had been some delays due to external factors, but it was anticipated this would soon be back on track.

As previous reported resources in Children's Services had been diverted, but the service had confidence in a number of initiatives that were either ongoing or ready to commence by the end of the year.

In response to the Board’s concerns about the Council having enough money to fulfil its obligations, the Strategic Director confirmed a number of controls would again need to be implemented with restrictions on spending and there was the fall-back position of reserves and contingency within the budget that were not used in the current year which may be available for future years.

Actions initiated were starting to deliver the right outcomes both in service and financially so the Council was on track on what it needed to do.

Resolved:-  ...  view the full minutes text for item 35

Report of the Strategic Director of Finance and Customer Services.

Recommendations:-

1.    That the current General Fund Revenue Budget forecast of £4.5m overspend.

2.    That it be noted that actions will continue to be taken to mitigate the forecast overspend.

Consideration was given to the report which set out the financial position as at the end of May, 2019 and was based on actual costs and income for the first two months of 2019/20 and forecast for the remainder of the financial year. 

Financial performance was a key element within  ...  view the full minutes text for item 27