Agenda item

This report provides details of the headline performance issues from the second performance monitor for 2009/10 covering the period from 1^st April to 30^th September 2009.

Members received a report that provided details of the headline performance issues from the second performance monitor of 2009/10 covering the period from 1 April to 30 September 2009.  The report updated on finance, performance and key projects and priorities. 

Discussion took place regarding the level of detail that the Committee would wish to receive when information was presented to them.  It was agreed that it would be beneficial for a training session to be arranged in order that Members could gain a greater understanding of how they could utilise the information in carrying out their role.

Officers went through the key issues in the report and highlighted areas where there was significant variance.  Attention was drawn to financial pressures amounting to £1,842k that needed to be managed by directorates in order to contain overall spending within budget by the end of the financial year.  The savings required to contain the pressures equated to a reduction of 1.5% of net budget for each directorate.  The committee was pleased to note that, following the concerns that they had raised regarding the overspend in fostering costs for looked after children, the Learning and Culture Overview and Scrutiny Committee would be receiving a presentation on this issue.  The presentation would include an analysis of the current overspend. 

Discussion took place regarding the impact of the present economic situation on revenue and expenditure.  Members were concerned to note that should the current level of spend continue it would take the council well below the recommended minimum threshold for revenue reserves.  They questioned officers as to how long it would take to recoup the reserves.  Officers explained that historically the council was an underspending authority and the underspend had passed into reserves.  Medium-term financial planning was a key issue, particularly in the context of the likely outcome of the next spending review and the decisions on levels of public spending.  

Members commented on the implications for staff when posts were frozen and training budgets reduced.  It was agreed that it would be helpful for the Committee to receive a presentation on the “More for York” project and to receive a summary of the comments on the accommodation move and details of the staff survey.  

Consideration was given to the data on performance indicators.  Members’ attention was drawn to indicators where performance was deemed to be an exception (e.g. good improvement or possible areas of concern). 

RESOLVED:(i)         That the performance issues identified in the report be

                                    noted.

(ii)               That the finance issues identified in the report be noted, including the following:

·        The significant pressures arising due to the economic recession and social care costs that are still evident across the council.

·        The work already undertaken within directorates to contain financial pressures.

·        The ongoing work to identify and implement options to meet the 1.5% savings targets required to contain spending within budget by the end of the financial year.

·        The longer term need for growth in some budgets, which will require compensating efficiencies and service transformation across the council.

(iii) That a training session be arranged for the Committee on

                                    utilising the performance and financial monitoring data.

REASONS:    (i)         To ensure that the council’s expenditure can be

                                    contained within budget.

(ii)               To assist the Committee in utilising the data presented to

                                 them.