Meeting documents

The Chair of the Committee will allow members of the public, who have registered, to ask a question/s and/or make a statement/s about any matter on the agenda for this meeting. Each member of the public that has registered to speak is allocated 3 minutes.  

At the Chair’s discretion, questions and statements from the public may be taken during the meeting, when the relevant agenda item is considered. 

The Chair noted that a member of the public had registered to speak regarding agenda items 11 and 14 and she invited Mr Nigel Behan to speak.

He noted that in the Value for Money Arrangements it is stated:

"In particular the greater focus on clear and timely budget monitoring, greater scrutiny and challenge and the rebasing of the children and families services budget to reflect more realistic cost pressure assumptions. We are also encouraged by the difficult decisions taken in September to make further savings. We note the continued improvement in projected 2018/19 revenue position to month 8, with the council now projecting a small underspend for the year." & "Despite this significant challenges remain. The improved in year position has been achieved, in part by non recurring savings, and the 2019/20 budget is estimated to require the delivery of £15m of further savings. Your level of reserves remain a concern and, although we recognise that the month 8 report states that they will be partially replenished in year, continued efforts are required to ensure that the council repositions itself on a sustainable financial footing."

a) When is it predicted that the level of reserves will be at a non-critical level (above the £15m threshold?) bearing in mind that the improved in year position was partly achieved by non recurring savings according to Grant Thornton?

b) Are other services (e.g. Adults) expecting or anticipating a significant rebasing (increase) of service budgets (as has happened in year to Children and Families in year) with realistic assumptions about "pressures"?

In response the Interim Director of Finance responded:

a) To some extent this depends on the actual outturn of the Council, bearing in mind that the figures are projected to the end of the year at the moment.  However, if our current projections are realised then it is anticipated that the General Fund reserve will reach a level of £15m or more within 2019/20.  Your question suggests that the Fund is at "critical" level at the moment and I have been at pains to avoid such labels.  Given that the Council took action in September and have an appropriate contingency to manage pressures within year, then we have a mitigation for the less than optimal level of General Fund within 2018/19.

b) The pressures on all services have been evaluated as part of the preparation of the 2019/20 budget and the MTFP and it is considered that the budget being recommended to the Cabinet and to the Council takes account of those pressures.  However, it is appreciated that in addressing these pressures it is then necessary to identify proposals for change to bridge the funding gap.  Overall, via each Scrutiny Committee, directors and scrutiny members are being asked to give assurance that they have a sufficient budget for 2019/20.

Regarding agenda item 14 Mr Behan then highlighted that in Appendix B – Internal Audit Work p10 it was reported that the Discovery LD contract (Adults Operational LD – Discovery Contract Q4 Not started) will be audited and that the "Audit Type" is "Operational" and that there is an "Initial Meeting scheduled". Will the scope include care provision to service users (and outcomes), consulting parents, carers, families and staff as well as use of agency staff, service continuity, financial matters and property, CQC reports and Risk of Care Provider Failure (it is noted that SWAP are scoping the Risk of Care Provider Failure as a separate workstream – p12 same report)?

In response the Assistant Director of the South West Audit Partnership (SWAP) replied that the initial meeting for the Discovery LD contract had now been held and Terms of Reference covering the scope of the work issued.  A standard contract management audit would be performed to provide assurance that services were being delivered in accordance with the terms and conditions of the contract. 

SWAP’s standard SCC contract management work programme would be used that will check for compliance with the Council’s corporate contract management framework.  The audit would cover controls in relation to both operational and financial performance management and would include the areas listed where relevant.

The Chair noted that a member of the public had registered to speak regarding agenda items 11 and 14 and she invited Mr Nigel Behan to speak.

He noted that in the Value for Money Arrangements it is stated:

"In particular the greater focus on clear and timely budget monitoring, greater scrutiny and challenge and the rebasing of the children and families services budget to reflect more realistic cost pressure assumptions. We are also encouraged by the difficult decisions taken in September to make further savings. We note the continued improvement in projected 2018/19 revenue position to month 8, with the council now projecting a small underspend for the year." & "Despite this significant challenges remain. The improved in year position has been achieved, in part by non recurring savings, and the 2019/20 budget is estimated to require the delivery of £15m of further savings. Your level of reserves remain a concern and, although we recognise that the month 8 report states that they will be partially replenished in year, continued efforts are required to ensure that the council repositions itself on a sustainable financial footing."

a) When is it predicted that the level of reserves will be at a non-critical level (above the £15m threshold?) bearing in mind that the improved in year position was partly achieved by non recurring savings according to Grant Thornton?

b) Are other services (e.g. Adults) expecting or anticipating a significant rebasing (increase) of service budgets (as has happened in year to Children and Families in year) with realistic assumptions about "pressures"?

In response the Interim Director of Finance responded:

a) To some extent this depends on the actual outturn of the Council, bearing in mind that the figures are projected to the end of the year at the moment.  However, if our current projections are realised then it is anticipated that the General Fund reserve will reach a level of £15m or more within 2019/20.  Your question suggests that the Fund is at "critical" level at the moment and I have been at pains to avoid such labels.  Given that the Council took action in September and have an appropriate contingency to manage pressures within year, then we have a mitigation for the less than optimal level of General Fund within 2018/19.

b) The pressures on all services have been evaluated as part of the preparation of the 2019/20 budget and the MTFP and it is considered that the budget being recommended to the Cabinet and to the Council takes account of those pressures.  However, it is appreciated that in addressing these pressures it is then necessary to identify proposals for change to bridge the funding gap.  Overall, via each Scrutiny Committee, directors and scrutiny members are being asked to give assurance that they have a sufficient budget for 2019/20.

Regarding agenda item 14 Mr Behan then highlighted that in Appendix B – Internal Audit Work p10 it was reported that the Discovery LD contract (Adults Operational LD – Discovery Contract Q4 Not started) will be audited and that the "Audit Type" is "Operational" and that there is an "Initial Meeting scheduled". Will the scope include care provision to service users (and outcomes), consulting parents, carers, families and staff as well as use of agency staff, service continuity, financial matters and property, CQC reports and Risk of Care Provider Failure (it is noted that SWAP are scoping the Risk of Care Provider Failure as a separate workstream – p12 same report)?

In response the Assistant Director of the South West Audit Partnership (SWAP) replied that the initial meeting for the Discovery LD contract had now been held and Terms of Reference covering the scope of the work issued.  A standard contract management audit would be performed to provide assurance that services were being delivered in accordance with the terms and conditions of the contract. 

SWAP’s standard SCC contract management work programme would be used that will check for compliance with the Council’s corporate contract management framework.  The audit would cover controls in relation to both operational and financial performance management and would include the areas listed where relevant.