Agenda item

The Committee received a report of the Corporate Director of Resources that provided details of the forecast outturn budget position for the Adult and Health Services (AHS) service grouping, highlighting major variances in comparison with the budget for the year, based on the position to the end of September 2023 (for copy see file of Minutes).

J Watson, Principal Accountant gave a presentation that explained the 2023/24 Quarter 2 revenue forecast outturn and variance and the 2023/24 Quarter 2 capital position.  She explained that the Adult Health Service’s budget position for 2023/24 had projected an under budget of £0.316 million which equated to 0.2% of the budget as there was a net under budget for employee costs due to staff turnover levels and net over budget on supplies, services, transports, other costs and over recovery of income.  The revenue budget had a projected over budget of £29,000 due to increased central recharge costs and a projected under budget of £55,000 in respect of the management of vacancies and contract management within commissioning. The revenue for Public Health was projected on target with £1.992 million forecast to be made available for future investment in Public Health

projects from uncommitted budgets, savings from vacant posts and underspends against some contracts.

Councillor K Earley asked when the money would run out.

The Principal Accountant advised that in balancing the budget for 2024/25 she did not foresee any issues and Adult Health Services continued to be a well-run service.

Councillor L Hovvels felt it was good to keep any eye on the budget and appreciated that the budgets came to committee for scrutiny as it was a big budget and the breakdown was beneficial to create a clear picture of the spend.  She was concerned regarding the potential vacancies within the service.

Councillor P Jopling queried if the staff underspend was caused by people leaving and whether this had an affect on the service.  She asked if this was an issue to worry about especially in health services as it would affect the public in providing what they needed.

The Principal Accountant could not respond as she did not work in the service direct nor manage staffing for the service.  She confirmed that she met with the budget holders regularly for the service area and they had not raised any concerns with regards to vacancies and assumed they would recruit to as and when needed.

Councillor L Hovvels felt it was a helpful report that gave the Members the opportunity to raise any issues that required to be scrutinised.  She noted that HR issues should be picked up in another committee.

S Gwillym, Principal Overview and Scrutiny Officer agreed to pass concerns on to the service.

Councillor K Earley questioned what proportion of the Council’s budget was allocated to Adult Health Services.

Councillor T Stubbs thought that the budget for Adults Services and Childrens Services were combined and made up approximately 37% of the budget.  He acknowledged that capital spend tended to be over budget but this would not show until the last quarter. He enquired if there was enough forecasted spend for the budget.

The Principal Accountant noted that the Capital team reported on their budgets separately and she just met with the scheme managers.  She did know that some expenditure would move over to the next financial year to keep it in the budget if it was not spent in time. 

The Principal Accountant responded to Councillor T Stubbs that it appeared that Hawthorn was finished but this was only the maximum liability from Adult Services contribution and not the larger capital investment for the project with funding from North East England.

Resolved

That the report and the financial position included be noted.