Agenda item

BUDGET MONITORING 2017/18

Minutes:

Report ED18010

 

The Sub-Committee considered a report setting out the budget monitoring position for the Education, Children and Families Portfolio for 2017/18, based on expenditure to the end of May 2017. 

 

The Non-Schools budget was forecast to be in an overspend position of £627k for 2017/18, with a projected full year cost pressure effect of £1,130k for which further management action would need to be taken.  This was largely due to a predicted overspend of £491k for the Children’s Social Care Service as a result of an increase in placements for children, expenditure related to leaving care and staffing pressures.  The Schools Budget which was funded by the Dedicated Schools Grant was forecast to be in an underspend position of £705k during 2017/18, which would be added to £1.6m carried forward funding. 

 

Members were advised that at its meeting on 20th June 2016, the Council’s Executive approved a number of carry forward requests for funding to be transferred into contingency for 2017/18.  These carry forward requests which totalled £218k related to either unspent grant income or delays in expenditure where cost pressures would follow through into 2017/18.

 

It was requested that the Council’s Executive agree the release of £800k from an earmarked reserve funded by the Bromley Clinical Commissioning Group to contribute towards the health costs of children’s social care placements that comprised a one-off payment of £500k and further contributions totalling a maximum of £500k per annum for 2017/18 and 2018/19, to be utilised towards the provision of Children’s Social Care for 2017/18.  It was also requested that the Council’s Executive agree the release of £115k from the Central Contingency for 2017/18 to fund additional staffing to meet statutory obligations in relation to transferring all existing statements of special educational needs to the new Education, Care and Health Plans by 31st March 2018.

 

The Head of Education, Care and Health Services Finance advised Members that plans were in place to reduce the level of spend on agency staff within Children’s Social Care, with a target for agency staff to make up no more than 10% of the workforce by September 2017, and that this was being supported by a robust recruitment campaign for permanent staff.  Councillor Nicholas Bennett JP outlined a number of ongoing pressures within Children’s Social Care including increase in placements for children, and emphasised that the level of demand for these services should be reflected in the budget setting process for 2018/19.

 

In considering the reserve funded by the Bromley Clinical Commissioning Group, Members were generally concerned that £200k had been set aside to undertake a review of Hollybank, its use and funding.  The Head of Education, Care and Health Services Finance confirmed that discussions were ongoing with the Bromley Clinical Commissioning Group regarding the proposed review and that final costings had not been agreed.

 

The Chairman noted that where waivers were agreed, contracts could be exempted from the normal requirement to obtain competitive quotations under the Council’s Contract Procedure Rules, including some contracts for care placements in Children’s Social Care.  The Chairman requested that a redacted summary be provided in future Budget Monitoring reports for contracts costing in excess of £100k where a waiver had been agreed and this was supported by the Sub Committee.

 

RESOLVED that the Portfolio Holder be recommended to:

 

1)  Note the latest projected overspend of £627k forecast on the controllable budget, based on information as at May 2017;

 

2)  Note the full year effect of cost pressures of £1,130k for the Education Portfolio budget for 2017/18;

 

3)  Agree the release of carry forward amounts held in contingency relating to Early Years Grant – Supporting Early Education of Disadvantaged Children, LA Conversion Academies Sponsor Support, High Needs Strategic Planning Fund, SEN Reform Grant and SEN Pathfinder Grant;

 

4)  Request the Council’s Executive agree the release of £800k from an earmarked reserve provided by the Bromley Clinical Commissioning Group to contribute towards the health costs of children’s social care placements which would be utilised towards the provision of Children’s Social Care for 2017/18;

 

5)  Request the Council’s Executive agree the release of £115k from the Central Contingency for 2017/18 to fund additional staffing to meet statutory obligations in relation to transferring all existing statements of special educational needs to the new Education, Care and Health Plans by 31st March 2018; and,

 

6)  Approve the Education Portfolio Budget Monitoring Report 2017/18.

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