Agenda item

First Quarter Review of Performance 2017/18

To consider the first quarter review of performance 2017/18.

Minutes:

Cabinet considered a report on the first quarter review of performance for 2017/18.

 

A initial overspend of £17.7 million in 2017/18 was being forecast, due to increases in caseload numbers and increased costs associated with children in care and adult social care, as well as rising costs from minimum wage requirements for care providers. The Management Team had identified service-based opportunities to reduce the overspend by up to £7.7m, leaving a current forecast deficit of £10m. Robust action was being taken to reduce this further and return the budget to a balanced position.

 

Annex 1 to the report set out details of how the Council was performing in 2017/18.  It was structured into three sections:

 

Section 1 Summary of Council Performance

Section 2 Financial Stability

Section 3 Workforce Development

 

The report had been considered by the Corporate Overview and Scrutiny Committee at its meeting on 7th September 2017. The Committee’s Chairman, Councillor M Simon, presented the Committee’s comments on the report as appended to these minutes.

 

The Chairman noted the various examples of good performance outlined in the report which showed that the Council was moving forward.

 

Note: at this point, the Chairman vacated the chair and left the meeting. The Deputy Leader took the chair.

 

Councillor D Brown in the chair

 

Cabinet considered the remainder of the report.

 

RESOLVED

 

That Cabinet

 

1.    notes the first quarter review of 2017/18 performance, in relation to the following issues:

 

  • the summary of performance against the Council’s 6 Strategic Outcomes  (Section 1) 

 

  • the projected service revenue and capital outturn positions, overall financial stability of the Council, and the impact on the Council’s reserves position (Section 2)

 

§  the delivery of the overall capital programme (Section 2, paragraphs 194 to 209 and Appendix 4)

 

§  fully funded supplementary capital estimates and virements up to £250,000 approved in accordance with Finance Procedure Rules (Appendix 5)

 

§  changes to Capital Budgets made in accordance with the Finance Procedure Rules (Appendix 8)

 

§  treasury management investments and performance (Appendix 9)

 

 

§  management of invoiced debt (Appendix 11)

 

§  use of earmarked reserves (Appendix 12)

 

§  update on workforce development and staffing (Section 3)

 

§  the intention of the S.151 Officer to identify further financial mitigation, in relation to the Council’s 2017/18 revenue budget, through a review of the calculation of the Minimum Revenue Provision and the funding of other revenue costs through capitalisation or the appropriate use of available reserves

 

2.    notes and acknowledges the comments on the report by the Corporate Overview and Scrutiny Committee as appended to these minutes; and

 

3.    approves:

 

  • fully funded supplementary capital estimates and virements above £250,000 in accordance with Finance Procedure Rules (Appendix 6); and

 

  • supplementary revenue estimates to be funded by additional specific grant (Appendix 10).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX

 

MINUTE OF the CORPORATE OVERVIEW AND SCRUTINY committee MEETING ON 7 SEPTEMBER 2017

 

Quarter 1 Performance Report

 

The committee considered a report of the Chief Operating Officer relating to the first quarter review of performance 2017/18. The report highlighted financial and non-financial pressures and performance in connection with the outcomes of the Corporate Plan 2016 to 2020.

 

A potential overspend of £17.7 million was being forecast, which was attributed largely to an increase in caseloads and costs associated with children in care.

 

Appendix 1 of the report set out details of how the Council was performing. The appendix was divided into 3 sections:

 

·         Section 1- Summary of Council Performance brought together the positive impact that service performance and financial performance had had on six residents first outcomes during the first year:

·         Section 2 – Financial Stability provided an update on the Council’s overall financial position. It demonstrated how spending in 2017/18 had been funded including service budgets, grants, council tax and business rates, treasury management, centrally held budgets and reserves.

·         Section 3 Workforce Development - provided a summary of the key issues relating to the Council’s workforce development plan.

The Chief Operating Officer, Section 151 Officer, Executive Director of Place and Acting Deputy Chief Executive and the Acting Executive Director for People and Portfolio Holders were questioned robustly, at length, on the contents of the report and sought additional information on the several matters which would be reported back to Members outside of the meeting, these included:

 

·         Requesting further details of challenges and low performance to counter the top performing indicators;

·         Figures relating to the uptake of free nursery places across the borough;

·         How many instances of fly tipping led to prosecutions;

·         Clarification of why Cheshire East are borrowing funds from other Authorities; and

·         Clarification on why £100,000 of Professional Services savings are unachievable.

 

The Chairman also read out and requested answers to each of the questions tabled, in advance, by the Leader of the Labour Group who could not be present at the meeting.  These answers will also be provided in writing to him and will also be circulated to all members of the Committee together with answers to questions that Senior Officers were unable to answer during the meeting.

 

RESOLVED –

 

(a)           That the report be received;

 

(b)          That Cabinet be informed that this Committee acknowledges and understands that this is a very challenging year and that there is immense pressure on the Council's limited resources.  The pressure on the public sector this year is perhaps unprecedented particularly in Adult Social Care and Children's' Services.

 

Corporate Scrutiny recognises that there are actions in place to address £7.7 million of the predicted overspend of £17.7 million and that ongoing work is taking place to mitigate against the remaining £10 million.

 

The Chairman, once again, extended the offer of the Council's four Scrutiny Committees to help with the identifying of savings and of sorting and prioritising challenges within the Directorates and Portfolios.

 

The Committee took the opportunity of congratulating Officers and everyone concerned for their continued hard work towards producing a balanced budget for the Council in these very challenging times.

 

(c)          That The Committee request that Cabinet formally acknowledge these comments in the minutes of the meeting.

 

Supporting documents: