Agenda item

Consideration was given to the report presented by the Finance Manager for Children and Young People’s Services and Schools (Financial Services, Resources Directorate) that provided a budget monitoring update on the Children and Young People’s Service revenue budget to the end of March, 2015.

The budget monitoring report was based on actual income and expenditure to the end of October, 2014.  Overall, the Directorate was projecting an over-spend outturn position of £4.029 million, which was an increase of 9.3% of the total budget.  The reported position at the end of October was an increase of £524,000 since the September budget monitoring report. 

The report gave the net budget and forecast outturn for each division of service within the whole Directorate, and any variations. 

The main variances were outlined, along with the underlying reasons shown in the submitted report.  The main areas of over-spend related to:-

• Academy conversions – treatment of deficits - £283,000 (previous provision had also been made in the 2013/2014 accounts);
• Child Protection Teams - £80,000;
• Children in Need Social Work Teams - £536,000;
• Looked After Children - £3,398, 000.

Some of the overspends were off-set against under-spends in other areas as outlined in the submitted report.

As at the end of October, 2014, there were 402 Looked After Children, which was a reduction of 2 since the September budget monitoring report and an increase of 2 as at March, 2014. The submitted report outlined the type of looked after children’s placement, along with current and previous financial year costs, including whether they were based in Out of Authority Residential settings, and independent or in-house fostering settings.

The report also outlined the use of Special Guardianship and Residence Orders.  There was a continuing push to secure permanency for some children via these routes rather than becoming or remaining looked after children.  This sought to reduce the numbers of Looked After Children and also provide better outcomes for children and young people.   

Management actions had contributed £604,000 of cost avoidance which would otherwise have been incurred.  These related to a reduction in placement costs of £518,000, the Fostering Framework had achieved £42,000 of cost avoidance, the Block contract had avoided £44,000 and the multi-agency support panel and the Valuing Care review would identify potential areas for cost renegotiations and ongoing savings in 2014/2015. 

Further information was provided in relation to:-

• Agency spend totalled £591,000 as at 31^st October, 2014.  This compared to an actual cost of £473,000 for the same period last year;

• Non-contractual overtime totalled £52,000 as at 31^st October, 2014, excluding schools.  This compared to an actual cost of £70,000 for the same point last year.  The overspend related mainly to cover in Residential Units. 

• Consultancy costs totalled £139,000 as at 31^st October, 2014, compared to an actual cost of £104,000 last year.   

Discussion followed and the following issues were raised: -

• The mileage and expenses costs of staff visiting children and young people who were in out-of-authority placements at a great distance from the Borough.  It was confirmed that mileage and expenses was met from the specific budget and not from a Social Care budget;

• Were soft incentives available for fostering families?  These could act as recruitment and retention incentives?  -  Further information would be provided to the Members on this;

• Further information was requested around successful approvals for adoption, the number of placement breakdowns and the reasons why families going through the approvals process had withdrawn. 

The Interim Strategic Director for Children and Young People’s Services spoke about work that he was initiating to ensure that the Directorate operated an efficient budget: -

·         Ensure that Looked After Children had the best chances possible to achieve in-line with their peers;

·         Invest in and create more fostering placements within the Borough;

·         Complex needs: -

o   Prevention work, including working with midwifery services so that more women could have a healthy pregnancy;

o   Joint commissioning between partners, including schools, for early help services;

o   Addressing academy deficits.

·         Creation of an accurate Medium Term Financial Strategy that fully reflected the activity of the Directorate. 

Resolved: -  That that latest financial projection against budget for the year on actual income and expenditure to the end of October, 2014, be noted.