Meeting documents

To consider a report by the Chief Financial Officer (attached).

The Committee considered a report by the Chief Financial Officer that provided an update on budget management and financial performance for 2018-19.

The Chief Accountant reported a £2.7m predicted overspend due to the same general causes of the variances outlined in the report, but principally around Children's Services provision.

The County Council’s Section 151 Officer had presented a mid-year financial management update at a Budget Working Group that week setting out that the County Council would do the utmost to come in on budget in 2018-19.

The debt picture was generally improving and the SWAP audit work had been supportive of the objectives being established for the team being assimilated into Financial Services from Adult & Community Services.  The reorganisation of this team as part of the integration into Financial Services had also resulted in savings in staff costs and a clearer focus on staff roles. 

Members asked about the pressure on the High Needs Block (HNB) due to the rise in the numbers of Education, Health Care Plans (EHCPs).  It was confirmed that councils could not ration or deny the requirements established in an EHCP despite the fact that this might cause potential conflict with councils’ requirements to set a balanced budget.

The Vice-Chairman stated that schools in Weymouth & Portland were not doing well and she asked whether this could be a result of the lack of adequate provision in school for children with greater needs.

The Chief Accountant responded from a financial perspective and confirmed that the growth in resources was not commensurate with the growth in the level of challenge around outcomes. In addition, investment to create places in special schools had been absorbed by new demand, however, Dorset was far from being alone in this regard.

Members discussed the overspend at some length, in particular clarifying that the £3.6m forecast overspend in the Children's Services Directorate was in addition to the overspend on the High Needs Block of the Dedicated Schools Grant (DSG). 

Members were informed that work was continuing with the Schools Forum to tackle complex budget and demand issues.  There was also a high national profile around the DSG.  Dorset had seen around a 60% growth in EHCPs since 2014 alongside 5% additional funding from government. 

Members drew attention to the loss of the ability to control costs of independent carers in the context of shutting 2 of the 3 local authority children's homes.  The view was expressed that closure of the homes had been a missed opportunity to work in partnership rather than being tied to independent providers. An update on the campaign for in-house foster carers was requested and it was reported that 56 foster carers were in the process of being recruited, but that not all of the cost savings could be achieved in the current financial year. 

The Chairman highlighted the use of personalised budgets for transport costs, stating that the best interests of the child should be at the centre of the EHCP. The Chief Accountant acknowledged that the aim would be to provide a balance of cost and the needs of the child.

Members asked about late payments by debtors and it was noted that this could sometimes relate to people who were vulnerable or dying.

The Council was getting better at sending out invoices, however, there was always scope for improvement such as the use of online services by some elderly residents.

A final point was raised in relation to the Dorset Waste Partnership following the decision made by China to stop the importation of recyclate and whether the provision of a UK based solution involving substantial funding for a recycling facility would be required and therefore be considered in the short term.

Resolved

1.       That the presentation to the Budget Working Group concerning the DSG and HNB is circulated to the Committee; and

2.       That an update on the progress made of the impact on the budget through the provision of in house foster carers is included in the Financial Management report in January 2019.