Agenda item

The Executive Director Core Services will submit, for information, a report which was considered by Cabinet on the 5^th September, 2018 on the financial performance of the Authority during the first quarter ended June, 2018 and assessing the implications against the Council’s Medium Term Financial Strategy.

The Executive Director Core Services submitted, for information, a report, which had been considered by Cabinet on the 5^th September, 2108 on the financial performance of the Authority during the first quarter ended June, 2018 and assessing the implications against the Council’s Medium Term Financial Strategy.

It was noted that the position for Council services was a projected operational underspend of £0.245m in 2018/19.  The overall position for the council in 2018/19 was a projected operational underspend of £0.745m including Corporate budgets.

The Cabinet had requested Executive and Service Directors (where appropriate) to provide detailed plans of how their forecast overspends would be brought back into line with existing budgets on a recurrent basis.  It had approved the write off of £1.402m of historic debts that were detailed within the Corporate Budgets section of the report and had also approved various Virements as detailed within Appendix 1.

In the ensuing discussion the following matters were raised:

·         There was a discussion of the Business Rates stretch target for 2018/19.  It was noted that these targets were currently being exceeded and the reasons for this were touched upon.  The Service Director Finance commented upon the volatility of this type of debt and upon the external pressured that could have a negative impact throughout the financial year.  The financial position for this year was stable and laid solid foundations for the difficulties the Authority may face in future years

·         The Service Director Finance reported on the targeted approach to the collection of high value debts and to the use of a specialist firm in relation to recovery of such debts

·         There was a discussion of the overspend on the Dedicated School Grant which mainly related to the high needs funding block and the increasing numbers and cost of out of Borough Special Educational Needs Placements.  The Authority was currently examining ways of reducing this overspend and a Placement and Sufficiency Strategy was seeking to address demand and, in addition, build capacity within Borough.  This area, however, remained an area of concern and additional information could be provided.  The Executive Director Core Services reminded that specialist out of Borough provision was often very expensive and a few complex cases that could not be handled locally could quickly skew the budget.  The Audit Manager also commented that a review of this service area was to be undertaken and a report would be submitted in the fourth quarter

RESOLVED that the report be received.