Agenda item

To present the report of the Finance Scrutiny Panel.

The report of the Scrutiny Finance Panel providing an update on the work of the Panel was presented for the Committee’s consideration.

Councillor Dafydd Roberts, a member of the Panel reported on the work of the Panel in the period from March to April, 2018 with reference to the following –

•           Detailed consideration has been given to Budget Monitoring for Quarter 3 2017/18 with the Panel’s approach being to scrutinise the Executive’s response to budget monitoring as being more helpful in supporting the Executive to make better decisions.

•           2017/18 financial pressures. The Panel continues to scrutinise the financial pressures in Children’s Services and the Learning Service as a key priority. To this end further information has been commissioned from both Heads of Service for consideration by the Panel at its next meeting on 28 June, 2018.

•           Annual Budget setting process 2019/20. A review of the Panel’s work programme has been a catalyst for agreement on the role of the Panel in the budget setting process for next year as outlined in the report.

•           The Council’s Efficiencies Strategy. The Panel has given detailed consideration to performance against each of the efficiency proposals implemented during 2017/18 in order to form a view on the percentage delivered and to identify barriers and risks and any consequent learning in moving forward.

The Panel has escalated for the Committee’s attention the current budget pressures in Children’s Services and the Learning Service.

The Committee considered the information presented and made the following points –

•           The Committee noted from the Panel’s conclusions that implementation of the 2017/18 efficiencies strategy totalling £1.954k fell short by £399k which related to the 3 projects listed in the report. The Committee sought clarification of the reasons why these savings projects had not been delivered on time.

Councillor Dafydd Roberts confirmed that the Panel had received reports on the matter. The Portfolio Member for Finance and former member of the Panel said that he was confident that the Panel would continue to keep a close eye on the progress of implementing savings plans and efficiencies.

The Assistant Chief Executive (Governance and Business Process Transformation) and Statutory Director of Social Services explained that the Garreglwyd project had taken more time than originally envisaged partly because there was a delay in employing Health staff to support the realisation of the project and partly because of CIW taking a longer than expected period to accept and to approve the implementation model. The facility is now open and receiving an increasing number of individuals and a second wing is also ready. Most of the work to develop the two wings to provide accommodation for individuals with dementia has been funded via the Welsh Government’s Intermediate Care Fund.

•           The Committee referred to the additional unplanned expenditure incurred by the Council as a result of the floods in November, 2017. The Committee sought clarification of the contribution made by Welsh Government towards the costs and whether this was subject to any specific conditions. The Head of Service (Highways, Waste and Property) said that the Authority had asked for the sum of £1.3m and had been awarded in the region of £500k with the only stipulation being that the funding be spent by the end of the 2017/18 financial year. Work has been done in the areas affected.

The Committee noted further that it would be helpful for it to receive a breakdown of the expenditure made in the aftermath of the flooding in terms of what was spent where including what was contributed by the Council and what was contributed by Welsh Government.

•           The Committee noted that the over-expenditure in Children and Families’ Services with regard to Residential Placements has a knock-on effect on the Learning Service leading to the Service incurring additional expenditure on the education provision of the individuals who are the subject of those placements. The Committee sought clarification of the cost of making this provision especially if the education provided is independent. The Portfolio Member for Education said that dependent on the individual case, the costs can be in the region of £80k young person.

Having considered the information presented, the Committee resolved to note –

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

•           That processes pertaining to budget monitoring for 2017/18 appeared 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 its attention its continued concern regarding budget pressures in Children’s Services and the Learning Service. The Committee further notes that the Panel continues to closely monitor the situation and has 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 this Committee on its findings as the situation evolves.

ADDITIONAL ACTION PROPOSED: The Committee to be provided with the following information –

•           A breakdown of the expenditure made in the aftermath of the floods in November, 2017 by area to include  the contribution made by the Council and the contribution made by Welsh Government.

•           Clarification of the cost of providing education provision including independent provision where that is necessary, for children/young people in residential care placements.