Agenda item

Financial Reporting

Julie Evans, Strategic Director of Resources, outlined a report setting out the revenue and capital monitoring position to October 2010.  It was noted that the Council’s net revenue budget for 2010/2011 was £103.9m and the Housing Services agreed net operating budget for the same period was a surplus of £213k.  The Committee was advised that there was currently a projected under-spend position for the 2010/2011 General Fund of £746k and this compared to a reported over-spend at the same stage last year of £854k.  The Director advised that for the Housing Revenue Account there was currently a projected under-spend position of £1248k from the budgeted surplus position of £213k agreed at the start of the year and this showed a favourable movement of £173k from the figure reported in the previous month.

The Committee noted the month on month movement in variances within each Directorate.  It was highlighted that within Community and Wellbeing an under-spend position of £14k was reported which was an adverse movement of £61k on the position reported in the previous month.  Members were advised that the change was largely due to an increase in costs across Community Services and Adult Social Care due to an increase in external care packages, with 11 new clients being placed in October as well as care package revisions totalling £144k.  This had been off-set by a saving of £74k for the provision of free swimming rising from a reduction in the contribution required to support Slough Community and Leisure.

It was reported that the Education and Children Services Directorate had an overall under spend position of £82k which was an adverse movement of £226k on the figure reported in the previous month.  It was highlighted that there was a continuing pressure on the budget in Children and Families due to the number of looked after children.

The Committee was advised that the Green and Built Environment continued to report an overall break even position but the Department had reported a pressure arising due to the shortfall in the indexation costs associated with a number of major contracts.  It was noted that negotiations were ongoing with Contractors in an attempt to contain the pressure.

Central Directorates had reported an under-spend position of £311k which was a favourable movement of £193k from the position reported in the previous month.  The Housing Revenue Account showed and under-spend of £1248k and an in-year surplus of £213k on the Housing Revenue Account was approved by Cabinet for 2010/2011.  The latest projection indicated an outturn surplus of £1461k which was an under-spend of £1248k against budget compared to last months under-spend of £175k. The change was primarily due to the release of surplus ex People 1^st cash balances of £1215k.

The Director discussed the emerging issues and risks and it was noted that although the headline position was showing a projected under-spend of £746k. It was highlighted that at this stage of the financial year it had been necessary to achieve a significant level of gross savings, incorporating the £3.3m of in-year reductions as a result of the Government’s £6.2billion of reductions across the public sector.  It was considered prudent to deliver known 2011/2012 savings early to mitigate the risk of achieving the required savings over the next 4 years and Cabinet had therefore at it’s meeting on 20^th September 2010 agreed to the pre CSR 2011/2012 savings. 

Members raised a number of questions/comments in the ensuing debate including the following (responses in italics):

·  In the ensuing debate a Member asked for further details regarding the current position on foster carers and it was agreed that a response would be forwarded to him from the relevant Director.

·  An investigation was underway within the Children and Families Division regarding the terms and conditions of Sure-Start funding.  A Member asked what the current position was in this area?

The tender process was ongoing and the relevant Director would be requested to provide an update report for the Member.

·  In relation to Community and Wellbeing the report stated that a provider had entered into a voluntary agreement with the Council not to accept other local authority placements and due to an embargo based on quality issues at this residence Slough had been unable to make placements.  A Member asked whether the Council should be concerned about this?

It was agreed that the relevant Director would forward the response to this question.

·  Within the Green and Built Environment it was highlighted that the cost of the new Pest Control contract would likely result in an end of year budget pressure of approximately £30k.  It was stated that there was a disparity between the cost to the Council of that treatments against the charges made to Customers and a Member asked for detail of the gap.

It was agreed that the relevant Director would forward a response to the Member.

·  A Member asked why a property which had been vacated in Pemberton Road had had its kitchen removed when this was only installed 18 months previously? 

The Member was advised that this question had been raised at a previous Panel meeting and that an Officer was currently investigating this issue.

Performance

Roger Parkin, Strategic Director of Improvement & Development outlined a report setting out performance monitoring against the corporate balanced score card and the LAA balanced score card up to October 2010 which set out areas of exception, improved performance between 1^st April to 31^st October 2010, and an assessment of where improvements actions were required for performance to achieve end of year targets.

The Director provided a gold project update for the ten projects, setting out the time line, budget, issues and risks and overall status of each project.  In respect of the 2011 Census it was highlighted that there were concerns that the cash budget was insufficient and recent discussions with partners had ensured that budget costs were back on track.

Members raised a number of questions/comments in the ensuing debate including the following:

• In response to a Member question regarding the number of Slough Sheds, the Director confirmed the number at 2177.  He advised that the ‘sheds’ were not always in  a poor state of repair, indeed some had been assessed within Council Tax Band B.

•  In respect of the Customer Focus Project a Member expressed the concern that reports he had seen had indicated that My Council was not working efficiently.  The Director responded that he was happy to work with Members in this area and it was important to review what was being done to ensure that people were attended to by knowledgeable staff.  It was agreed that an update report on My Council would be provided for the Committee at its meeting on the 27^th January, 2011 and this was added to the work programme.

• In respect of Adult Social Transformation Programme a Member asked why the status was amber and expressed the concern that the Council was not on top of this project.  It was agreed that a response would be sought from the relevant Director for the Member in question.  Another commented that she had concerns about the amber position of the mental health pilot and it was agreed also that the Director would respond to this concern.

Resolved  -  

(a)  That the Performance and Project management aspects of the  report be noted.

(b)  That the Financial performance – revenue and capital aspects of the report be noted.