Agenda item

Financial Progress Information Report

This report informs the Customer and Corporate Services Scrutiny Management Committee (CSMC) of a decision by Members of the previous CSMC to invite the Corporate Directors of Health, Housing and Adult Social Care and Children, Education and Communities to the first meeting of the new CSMC to explain the financial forecasts within their Directorates.

 

Minutes:

The Corporate Directors of Health, Housing and Adult Social Care and Children, Education and Communities attended the meeting, with the Head of Finance, to explain the financial forecasts within their Directorates, as requested by Members of the Committee in March. They tabled documents which were published as an agenda supplement following the meeting.

 

Members expressed their disappointment that papers were being tabled on the day of the meeting.

 

The Corporate Director for Children, Education and Communities stated that there were significant pressures impacting all Local Authorities. To stat to address this there had been a placement review, work on an inclusion review and she had implemented budget ‘deep dives at Management Team meetings.  In response to questions from Members she stated:

 

·        In relation to ‘The Glen’ the overspend had primarily been staffing costs, in relation to agency staffing and some issues around vacant posts. There was a new Manager in post and agency spend had significantly reduced. There was also a move to the Centre of Excellence which would help bring things back into line;

·        There was no evidence of academisation having an impact, York was good at partnership working;

·        Older Children were now coming into the care system, and often their more complex needs made them more challenging to place. There had been changes to the Local Care Offer, with increased training and support for Foster Carers so they were able to deal with more complex cases. However, there were currently no empty placements so there was a clear need to recruit more Foster Carers; and

·        There had been a dramatic reduction in the Home to School Transport Budget, in part due to reassigning some of it to the dedicated schools grant.

 

The Corporate Director for Health, Housing and Adult Social Care also stated that the national context was a factor and that in terms of Adult Social Care it was key to make sure demand was legitimate and ‘eligible need’ fell within  legislation.

 

In response to questions from Members she stated:

 

·        In terms of external residential care use this was due to increased demand and the closure of two homes. This had created a significant cost pressure;

·        CYC intended to develop places where residents could live independently, rather than create more residential care places. There would however always be a need for residential care. A hybrid mode of care was therefore ideal, but this would take time and in year results would not be evident;

·        There was a clear policy not to place outside of the City but in very specific circumstances this may have to happen;

·        York was a very particular market and demographic with a high level of residents self funding. This meant that many providers would never deal with the Local Authority; and

·        There were very low numbers of agency staff being used by the directorate. They were not experiencing the workforce challenges that the NHS and Direct Care were.

 

Resolved:  That, in light of the data provided by the Corporate Directors, an update on the financial position of the two Directorates be brought to this committee in December.

 

Reason:     To provide the Committee with assurances that financial controls are in place to mitigate any overspend.

Supporting documents:

 

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