Agenda item

To present the report of the Scrutiny Manager.

A progress update report on the work of the Finance Scrutiny Panel during the period from July to August, 2018 was presented for the Committee’s consideration.

Councillor Dafydd Roberts (Scrutiny Member on the Finance Scrutiny Panel) reported that the Authority is operating in financially challenging times with the need to reduce budgets without directly affecting services becoming an increasingly difficult task. The Finance Scrutiny Panel is acutely aware of the financial pressures on services, in particular those which are demand-led such as Children and Families’ Services and elements of the Learning Service. One of the Panel’s aims has been to identify and understand the underlying issues which are responsible for the recurring pressures on these services and to ensure that the overspends which have resulted therefrom are mitigated by sustained and appropriate actions. Councillor Roberts confirmed that scrutiny of the financial pressures in Children’s Services and the Learning Service has therefore continued to be a key priority for the Panel in the context of budget monitoring during Quarter 1 2018/19. The Panel commissioned further information from both Heads of Service which was considered at its July meeting with specific attention being given to the areas most under pressure along with the mitigation measures proposed and/or implemented. The Panel has invited both Heads of Service to present a further update to its meeting in September, 2018.

Councillor Roberts said that the Panel has also been considering its role in the budget setting process for 2019/20 as well as scrutinising how well planned efficiencies are being delivered to date in the Learning Service, Adults’ Services and Highways, Waste and Property in order to form a view on the likely percentage of efficiencies to be realised in full by year end.

The Head of Function (Finance)/Section 151 Officer said that the purpose in establishing the Finance Scrutiny Panel was to enable a small group of Members to conduct more in-depth scrutiny of service budgets than the Corporate Scrutiny Committee’s work programme allows thereby helping them develop a better understanding of the budget issues affecting services leading to more meaningful challenge and suggestions for improvements. In this sense the input of the Panel is adding value to the budget setting and monitoring processes.

The Committee noted that current budget pressures in Children’s Services and the Learning Service continue to be a concern for the Panel and that it has escalated this matter to the attention of the Committee. The Committee further noted that the term “overspend” can create a misleading impression of a service spending irresponsibly or without due regard for its budget when in the case of Children’s Services the spending occurs because the service has to meet the needs of the increasing number of children coming into the Authority’s care in order to ensure they supported appropriately. The case could be made alternatively that Children’s Services are underfunded and that the Service budget has not kept pace with the growing demands upon it.

It was pointed out by the Committee that the pressures being experienced by Children’s Services are not unique to Anglesey. The Committee noted that similar pressures are being felt by Local Authorities in both Wales and England with reports in the media of an increasing number of councils which are struggling to deal with the growth in demand in children’s social care services alongside reduced funding.  

It was resolved to note –

•           The progress made to date with the work of the Finance Scrutiny Panel both in term of achieving its work programme and measuring impact and added value.

•           That processes pertaining to budget monitoring for 2018/19 appear to be fit for purpose and on track.

•           The ongoing financial scrutiny development programme for Panel members which is being delivered by CIPFA Wales.

•           That the Panel has escalated for the Committee’s attention its continued concern regarding budget pressures in Children’s Services and the Learning Service. The Committee also notes that the Panel continues to closely monitor the situation and arrangements in place to ensure regular dialogue with the Assistant Chief Executive and Heads of Service to provide an explanation of the financial situation in both services and the impact of mitigation measures in place to control overspends and that it will continue to report back to the Committee as the situation evolves.

NO ADDITIONAL ACTION WAS PROPOSED