Agenda item

Consideration was given to the report presented by the Principal Finance Officer (Financial Services, Resources Directorate), which provided a financial forecast to 31st March, 2014, based on actual income and expenditure to 31^st December, 2013. 

Overall, the Directorate was projecting a £1.252million over-spend outturn position at the end of the 2013/2014 financial year.  This overspend represented an increase of 2.7% on the total revenue budget allocation, which was an increase of £11,000 since the previous budget monitoring report.   

The forecast overspend was largely due to the continuing pressures in Safeguarding Children and Families’ Services due to the needs-led nature of the budget relating to out-of-authority residential and fostering placements.  The report provided an update on the main areas of variance and outlined the main pressures and areas of under-spend and/or over-spend for each Service.

The management actions taken relating to the Services for Looked After Children included a drive to recruit more in-house foster carers, prevention and early intervention strategies including an increased use of Special Guardianship Orders, and the Invest to Save Programme in Fostering and Adoption Services.

Disability Services were projecting an over-spend of £52,000 due to staffing requirements in residential homes where agency staff could not be used, and also by an increase in Direct Payments.  Although representing an over-spend, the additional charges incurred had avoided an out-of-authority payment, which was a better outcome for the individual child/young person and their family/carer/s.  An out-of-authority placement would likely have also been at a greater cost than the direct payment.  

A number of continuing budget management actions were being taken to avoid costs: -

·         Prevention and early intervention strategies, including an increased use of Special Guardianship Orders and efforts concentrating investments in Fostering and Adoption Services;

·         Proactive management actions continued to concentrate on avoiding costs relating to placements for looked after children, the fostering framework and through block commissioning and negotiation of placements.  These efforts had achieved savings of £588,000;

·         The Multi-Agency Support Panel was continuing to make efficient multi-agency management actions and decisions, and continuing to avoid costs wherever possible;

·         Agency costs had increased compared to the same period in the previous year primarily as a result of covering vacant posts within Safeguarding Children and Families’ Service, and covering sickness absence and maternity leave to ensure that safe staffing ratios were maintained.  Recruitment was underway in relation to vacant posts to save on agency costs;

·         Non-contractual overtime for Children and Young People’s Services had increased compared to the same period in the previous year as a result of the need for fully trained staff to maintain cover in residential homes.  Agency staff could not cover these posts due to training requirements;

·         Consultancy costs had decreased compared to the same period in the previous year. 

Discussion ensued with the following issue raised: -

·         The continuing efforts that were taking place with Partner organisations regarding the residential placements and achieving an equitable charging structure.

Resolved: - That the latest financial projection against the budget for the year based on actual income and expenditure to the 31^st December, 2013, be noted.