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 November, 2014.  Overall, the Directorate was projecting an over-spend outturn position of £4.262M, which was an increase of 9.8% of the total budget.  The reported position at the end of November was an increase of £233,000 since the October 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 - £310,000 (previous provision had also been made in the 2013/2014 accounts);
• Child Protection Teams - £125,000;
• Children in Need Social Work Teams - £579,000;
• Looked After Children - £3,502,000.

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

The Adoption Reform Grant that was first received in 2013/2014 was reduced by £746k in 2014/2015.  The grant significantly mitigated LAC budget pressures in 2013/2014 on a temporary basis. 

As at the end of November, 2014, there were 409 Looked After Children, which was an increase of 7 since the October budget monitoring report and an increase of 9 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 £698,000 of cost avoidance which would otherwise have been incurred.  These related to a reduction in placement costs of £598,000, the Fostering Framework had achieved £48,000 of cost avoidance, the Block contract had avoided £52,000 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 £655,000 as at 30^th November, 2014.  This compared to an actual cost of £541,000 for the same period last year;

• Non-contractual overtime totalled £66,000 as at 30^th November, 2014, excluding schools.  This compared to an actual cost of £84,000 for the same point last year.  The overspend related mainly to cover in Residential Units. 

Discussion followed and the following issue was raised: -

·         Working with Schools that were in the process of converting to be academies, especially in the cases where there would be a deficit balance for the Local Authority to pick-up. 

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