To report December’s budget monitoring information and provide an indication of estimated outturn for both revenue and capital to 31 March 2010 and treasury management activities in the first nine months of 2009/10.

The Committee considered December’s budget monitoring information, an indication of estimated outturn for both revenue and capital to 31 March 2010 and treasury management activities in the first nine months of 2009/10.

The Head of Financial Services presented the report. 

She highlighted that the projected overspend on the revenue budget at the end of December 2009 had been £847k.  It was currently envisaged that the implementation of recovery plans and maximisation of grant income would deliver a balanced budget at the year end.  However, a lot of work remained to be done to achieve this position.

She noted the position on earmarked reserves shown on page 67 of the agenda papers had changed following use of the winter maintenance reserve and the social care contingency and now stood at £14.6 million.

In relation to the Treasury Management Statement she highlighted ongoing work to reschedule debt.

In discussion the following principal points were made:

·         Paragraph 17 of the report stated that invoices from Mencap totalling £150k, relating to domiciliary care for 2008/09, had unexpectedly been received in December 2009.  Paragraph 25 referred to a one-off cost of £110k relating to unexpected invoices for the Homecare block contract for domiciliary care.  Clarification was sought.

The Head of Financial Services commented that there had been an error in communication between service areas and an issue in relation to contract negotiation.  It was not considered to be a systemic failure and work was underway to mitigate the risk of such a situation occurring again.

·         The Chairman of the Adult Social Care and Strategic Housing Scrutiny Committee commented that she did not agree with the statement in the report that the measures in the recovery plan for the Integrated Commissioning Directorate were realistically achievable.

·         A Member drew attention to the reference in the report to an absence of budget provision for personal budgets for nursing and residential care packages in 2009/10 and asked what provision had been made for 2010/11.  The Head of Financial services said that the gap remained to be addressed in finalising the service budgets.

·         Clarification was requested on the overspend of £375k on the managing agent contract with Amey Wye Valley; the background to and administration of the Leader Vital grant; and capital expenditure on City Centre enhancements and details of the works

·         The institution of a more robust panel procedure for reviewing the level of void placements in residential homes and day care facilities was discussed.  It was requested that a report be made to the Adult Social Care and Strategic Housing Scrutiny Committee on the operation of the Panel and its effectiveness in reducing voids.  The Head of Financial Services noted that the current level of voids was 12%.  It would be reasonable to expect a figure of 5-6%. 

·         It was asked whether the forecast capital expenditure for 2009/10 would be realised, given the level of actual expenditure incurred.  The Head of Financial Services said that it was usual for a larger spend to occur towards the end of the year, and a number of contracts would have stage payments calculated and made just before the end of the financial year. 

·         Concern was registered about the pressure on Mandatory Disabled Facilities Grant and the reported backlog of approximately £1m.

RESOLVED:

That    (a)        the report and its approach to delivering a balanced outturn position at the year end be noted;

            (b)       briefing notes be circulated to Members of the Committee on the overspend on the managing agent contract with Amey Wye Valley; the background to and administration of the Leader Vital grant; capital expenditure on City Centre enhancements and details of the works; 

(c)        a report be made to the Adult Social Care and Strategic Housing Scrutiny Committee on the operation of the Panel reviewing the level of void placements in residential homes and day care facilities and its effectiveness in reducing voids.