Agenda item

The Assistant Director, Finance and Audit, summarised the latest financial information for the 2014/15 financial year. The Council was forecasting an overspend of £0.98m and without remedial action this would have a significant impact on the Council’s General Reserves. The main service areas showing variation from budget was Adult Social care and Health Partnerships and this was due in particular to an overspend on Mental Health Services of £395k. 

A summary of the Council’s six gold projects as at June 2014 indicated that the overall status of five had been assessed as amber and one as red. Further details were provided regarding the projects, including the Safeguarding improvement Plan which had been assessed as red and Members were informed that the projects were monitored on a monthly basis.

Further details were requested regarding the investment of £50k in the Municipal Bonds Agency. The Assistant Director explained that this expenditure would be capital in nature and whilst this was a relatively modest amount of money for the Council in terms of investment, the benefit to the Council would mean lower capital financing rates available to the Council when it next refinanced existing debt or used new debt.

Members expressed concern with regard to the increase in the staff sickness rate which had increased from 8.3 to 8.6 days lost per Full Time Equivalent (FTE) member of staff. It was noted that whilst there had been a slight increase in the figures, the rate had significantly improved from 2012/13 where the average staff sickness rate was 11.6 days per FTE. Committee Members were informed that managers were encouraged to focus on areas of high sickness and that the statistics were subject to regular monitoring. 

In response to writing off debt, and in particular over £96k in relation to Housing Benefits, Members were informed that work was on-going to reduce write offs as much as possible.

Referring to the number of primary schools in special measures or with notice to improve, a Member requested further details regarding the procedures in place to assist schools in addressing concerns raised and implementing improvement activity. The Assistant Director stated that this information would be circulated to Committee Members.

Resolved: That the report be noted.