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 January, 2014. 

Overall, the Directorate was projecting a £1.124million over-spend outturn position at the end of the 2013/2014 financial year.  This overspend represented an increase of 2.4% on the total revenue budget allocation, and represented a reduction of £128,000 since the December 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. In addition, Disability Services were also projecting a significant over-spend relating to over-time and agency costs and Direct Payments.

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.

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 £701,000 to January, 2014;

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

·           The Invest to Save Programme in Fostering and Adoption Services was continuing to be effective and increase the number of in-house fostering placements and adopters;

·           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 and service-users’ need for consistency;

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

·           The actions of Neil Nerva, Continuing Care Consultant, had proved effective in drawing down additional funding streams. 

Based on previous Budget Monitoring feedback from the Cabinet Member, the January 2014 report contained a breakdown of the different placement types that existed for the years 2011/12, 2012/13 and 2013/14 to January, 2014.  The breakdown noted the number of out-of-authority placements that existed, an average placement cost, independent fostering agencies and in-house fostering placements. 

Discussion followed and the budget allocation for Looked After Children was discussed.  The budget had historically been insufficient for the level of need, and was always going to be a demands-led budget.  The Cabinet Member expected all stakeholders to continue to work to bring the budget allocation for Looked After Children to a more achievable figure. 

It was also agreed that future budget monitoring reports would include reference to the continuing Valuing Care Review. 

Resolved: - That the latest financial projection against the budget for the year based on actual income and expenditure to the 31^st January, 2014, be noted.