Agenda item

The Service Lead, Finance (Deputy Section 151) introduced a report that provided an update on the financial position of the Council’s revenue account for Quarter 1 (April to June) of the 2019-20 financial year.

The Committee was informed that the 2019/20 approved net budget for the Council was £106.625 million.  At Quarter 1, the forecast year end position for all Council run services indicated an overspend of £1.641 million (1.54%).  The Service Lead, Finance reported that based on recent information received from the Slough Children’s Services Trust (SCST) that to ensure visibility, the SCST’s financial position should be included in the revenue monitor.  It was explained that when the SCST’s forecast financial position was included in the revenue monitor, the Council’s current exposure to financial risk was an estimated net expenditure forecast of £16.266 million.  This represented a potential budget overspend of £9.641 million, which was 9.04% above the approved budget.

A Member raised concern regarding the robustness of SCST’s governance arrangements and asked if suitable controls were in place.  The Service Lead, Finance explained that SCST had reported that the overspend was due to increases in staffing, placements and legal costs as a result of a spike in referrals during October/November 2018 and January 2019.  The increase in referrals had consequently led to more child protection cases and Children Looked After cases arising in 2019/20 than had been initially budgeted for.  Officers had been working closely with SCST’s leadership team in an effort to understand SCST’s current financial position and to support initiatives that would reduce the overspend by the end of the financial year.  In addition, Council and SCST officers had been in regular discussions with the Department for Education and the Local Government Association to highlight the on-going financial pressures facing the Trust and Children's Services more generally.

In relation to the ‘write offs’ detailed on page 69 of the report, a Member queried why these occurred and what measures were in place to recover the debts.  In response, the Service Lead, Finance explained that every effort was made to recover the money owed.  Write offs were requested as a last resort, when the debtor was untraceable or had absconded.

Resolved –

(a)  That the reported underlying financial position of the Council, including the Slough Children’s Services Trust, as at Quarter 1 of the year be noted.

(b)  That the management actions being undertaken by the officers to reduce the budget pressures be noted.

(c)  That the Council’s request to the Department for Education (DfE) to provide additional financial support relating to the Slough Children’s Services Trust (SCST) be noted.

(d)  That the potential impact on the Council’s general reserves and associated implications for the Council based on the latest financial projections, be noted.