Agenda item

The Committee were provided with the latest financial information for the financial year 2015/16. The Council was forecasting an overspend of £2.046m at month 6, which was a worse position in comparison to month 5, when the Council had reported a potential £2.491m overspend. The main service areas showing variation from budget were Children and Families, Adult Social Care and Health Partnerships, Public Health and Housing and Environment. These had been offset by other service and some corporate under spends. Service action plans had reduced the underlying overspend.  Whilst no additional savings were expected from the Children and Families service the Adult Social Care Service remained committed to ensuring measures were taken to get as close to break even as possible. 

An update summary of the Gold Projects was provided and of the seven gold projects, one was assessed as ‘green’, one at ‘green/amber’, three at ‘amber’ and two at ‘red’. Members attention was drawn to the Slough Children’s Services Transition Project and the fact that this project was now closed, given that the services had transferred on 1 October 2015.  The two red projects were noted as School Places Programme and The Curve. 

Committee Members’ expressed concern regarding the current financial position and overspend and asked about the implications if the recovery plans, as detailed in the report, did not materialise. It was explained that most service areas had managed to achieve an underspend to help mitigate the overspend in budget in Children’s Services. Additional income sources would also contribute to the overall budget position, including the Slough Regeneration Partnership Project . 

A Member asked for details regarding the long-term future use of the former Town Hall site, which was currently operating as a primary school, given that the site could be sold to generate income to the Council. The Committee were informed that a number of alternative options were being considered to generate income. 

Following the announcement that delays in the completion of The Curve had resulted in the opening being delayed until Spring 2016, a Member requested details of what the financial implications of the delay were likely to be. The Strategic Director for Regeneration, Housing and Resources confirmed that issues in relation to sub-contractors had resulted in the delay of the completion of the project. Committee Members were also informed that Morgan Sindall had agreed to reimburse the Council for any financial costs incurred as a result of the delay in opening of The Curve. It was agreed that these financial details would, when available, be circulated to Committee Members. 

A Member sought clarification as to why the implementation of a Multi Agency Safeguarding Hub (MASH) had been delayed until spring 2016. It was explained that one of the primary purposes of the MASH was to ensure greater co-operation between the various organisations involved and it was critical that any issues were resolved prior to the MASH being fully operational.

A Member queried the £439k budget pressure reported in the Public Health  service. It was outlined that the impending in year reduction to the Public Health Grant (PHG) nationally, meant that the 2015/16 PHG would reduce in year by 7%, resulting  in a loss of funding totalling £436k. Due to the joint arrangements that all Berkshire Unitaries had agreed to it was unlikely that a reduction in these contracts would be realised in the current financial year.

Members noted that the Major Contracts Review Saving project was currently showing as a red status. The Strategic Director for Regeneration, Housing and Resources informed the Committee that two major contracts, Interserve and Amey, were currently being reviewed and that officers were reasonably confident that the a green status would be achieved before the end of the financial year. Responding to whether consideration would be given to bringing any of the services in house; it was confirmed that, although an options appraisal would be conducted, it was likely that the services would remain contracted out. Concerns regarding the lack of effective monitoring of previous contracts was raised and it was noted that monitoring details and Key Performance Indicators would be included within any new contract. 

Details regarding the Housing Revenue Account, specifically allocation of funds from this account, were requested. Councillor Morris, under Rule 30, also addressed the Committee, and queried how time was accounted for work carried out in relation to HRA matters. It was explained that the funds were ring fenced and that the Council was under a statutory duty to ensure that funds from this account were only applied to the HRA.

Resolved –   That details of the Financial and Performance Report Quarter 2 be noted.