Issue - meetings

Purpose of report

To inform the Cabinet Member of the revenue expenditure position within the portfolio cash limit for the financial year 2016-17. This report sets out the budget position and contributing factors to the final portfolio overspend at the end of the financial year; together with details of the initial financial projection for 2017-18

RECOMMENDED that the Cabinet Member:

(1)  Notes the portfolio financial outturn position for 2016-17 of £0.335m in excess of the approved cash limit provision.

(2)  Notes the current expectation that overspends represent a first call against the following year cash limit allocation. The overspend for 2016-17 has been accepted against corporate contingencies; given the actions that have been undertaken and continue to be developed to mitigate future overspending.

(3)  Notes the ongoing budget pressures within the portfolio, as highlighted within the report, together with the need for continued action to reduce the service expenditure so that it can operate within its authorised cash limit for 2017- 18.

Graham Smith introduced the report and explained the reasons for the portfolio overspend in 2016-17 and the financial projection for 2017-18.

In response to questions from Councillor Wood, the following points were clarified:

·         The overspend for looked after children is mainly due to placement pressures and in particular the high cost of the external residential placements.

·         The offsetting underspends within the Children's Social Care service were a consequence of staffing and operational changes.  This was led by a structural review of the department and the subsequent holding of vacancies.  These underspends were therefore one-off and are not expected to occur in 2017-18.  

·         The Public Health funding of £1.367m referred to in paragraph 5.3 of the report is income for the Portfolio and therefore offsets off the expenditure incurred by the Portfolio, which is why the cash limit for the Early Years and Children's Centre activities appears low.

the commissioning of health services for children.

Councillor Wood congratulated officers for their work on the budget and paid tribute to the staff who had continued when there were vacancies.  If the service had been fully staffed the council would not have been able to offset this against the overspend.

The Cabinet Member passed on his thanks to the whole service for their work in particular the resilience of staff working in the areas where vacancies had been held.

DECISIONS: the Cabinet Member

(1)  Noted the portfolio financial outturn position for 2016-17 of £0.335m in excess of the approved cash limit provision.

(2)  Noted the current expectation that overspends represent a first call against the following year cash limit allocation. The overspend for 2016-17 has been accepted against corporate contingencies; given the actions that have been undertaken and continue to be developed to mitigate future overspending.

(3)  Noted the ongoing budget pressures within the portfolio, as  highlighted within the report, together with the need for continues action to reduce the service expenditure so that it can operate within its authorised cash limit for 2017-18.