Issue - meetings

Cabinet Member: Cabinet Member for Finance

Forward Plan Ref: 2021/128

Contact: Louise Tustian, Head of Insight & Corporate Programmes Tel: 07741 607452/ Kathy Wilcox, Head of Financial Strategy Tel: 07788 302163

Report by Corporate Director Customers, Organisational Development & Resources and Director of Finance (CA6).

This report presents the October 2021 performance, risk and finance position for the Council.

Cabinet is RECOMMENDED

a)           To note the October business management and monitoring report.

b)           To agree virements set out in Annex C -2b which relate to the Covid-19 costs incurred by the directorates between July and September 2021.

c)           To note virements set out in Annex C-2c

d)           To approve the bad debt, write off in Annex C paragraph 48

e)           To approve the use of the Transformation Reserve and COVID Reserve paragraphs 80 and 81

Recommendations agreed

Cabinet considered the report presenting the October 2021 performance, risk and finance position for the Council.

Councillor David Bartholomew, Shadow Cabinet Member for Finance, addressed the financial aspects of the report:

·         He was concerned about the increase in the variance against budget of £1.2m in the last month including a deterioration of £200,000 for children’s social care.

·         He was pleased to hear that the issue of the Memorandum of Cooperation in relation to agency costs was being revisited and looked forward to seeing the details.

·         He noted a 10.8% increase in the average costs of residential home placements.  Individual placements can cost over £250,000 per annum which the public would find hard to understand.  He suggested cooperation with other councils to develop innovative solutions.

·         There had been an overspend of £400,000 under Community Operations due to transport fleet services.  An update was promised in the next report which he hoped would show an improvement.

·         He expressed disappointment that the corporate debt collection rate and adult social care invoice collection rate had both fallen below target.  He hoped that the Cabinet Member would be able to assist staff to improve these rates.

Councillor Calum Miller, Cabinet Member for Finance responded and summarised the report as follows:

·         It was expected that the Memorandum of Cooperation would be in place in time for the new financial year but a number of councils in special measures had indicated that they could not participate.

·         He agreed that the increase in costs for external placements in children’s social care was worrying but it was a function of the market.  The Competition and Markets Authority reported on this in November and expressed concern that the market may be broken.  The Cabinet will certainly add its voice to those who were seeking to improve the situation.

·         Transport services across the country were experiencing increases in staffing and fuel costs.  So there was a limit to what this Council could do to control costs.

·         The Council will continue to pursue debts where they can be recovered but they would also continue to show sensitivity to those residents who have been negatively affected by the pandemic.

·         There were two new red ratings in the report.  One under Finance related to matters largely outside the Council’s control regarding the High Needs Block and Adult Social Care.  The other related to Infrastructure Delivery where there were delays conditioned by the outside environment.

·         There was a new risk identified relating to Deprivation of Liberty Authorisations.  The relevant Corporate Director and Cabinet Member were looking to do everything in their power to avoid being forced into this position.

Councillor Miller moved the recommendations and they were agreed.

RESOLVED:

a)            To note the October business management and monitoring report.

b)           To agree virements set out in Annex C -2b which relate to the Covid-19 costs incurred by the directorates between July and September 2021.

c)            To note virements set out in Annex C-2c

d)           To approve the bad debt, write off in Annex C  ...  view the full minutes text for item 127