Decision details

A report which provided a summary of the financial monitoring reports as at the end of June 2017 was given consideration.  Six detailed reports were summarised in the executive summary including the Revenue Budget Monitoring report as at 30 June 2017; Monitoring of Service Choices Savings as at 30 June 2017; Monitoring of Financial Risks as at 30 June 2017; Capital Plan Monitoring Report as at 30 June 2017; Treasury Monitoring Report as at 30 June 2017; and Reserves and Balances as at 30 June 2017.  A web link to the detailed reports was provided within the executive summary.

Decision

The Policy and Resources Committee –

1.    Agreed recommendations 3.1a), b), d), e) and f) as set out on page 17 of the report.

2.    In relation to recommendation 3.1c), the Committee -

a)    Noted the current assessment of the Council’s financial risks.

b)    Noted the comments in paragraph 3.2.3 of the Financial Risks Analysis Report in relation to management of the Argyll and Bute Health and Social Care Partnership’s financial resources, and the risks arising to the Council from any overspend or unsuccessful budget recovery plan.

c)    Noted that at the end FQ1 the projected year-end outturn position for the HSCP is an overspend of £5m, an increase from the start of the financial year where a £2m budget gap was identified.

d)    Noted that the HSCP, in common with all council departments in the context of significantly reduced funding, needs to identify, manage and implement savings across all relevant service areas.

e)    Noted that at its 2017/18 budget meeting in February 2017, the council agreed to provide one-off transitionary funding of £2.137m, in excess of the Scottish Government recommendations on funding levels, to the HSCP to assist in meeting living wage requirements, supporting transformational change and smoothing its projected budget gap.

f)     Instructed the Chief Executive to write to the HSCP Integrated Joint Board expressing concern at the escalating financial gap and the potential risk this brings to highly valued, essential local services, to the Council and to the Partnership itself if action to address this gap is not taken urgently.

g)    Agreed to seek confirmation from the HSCP Board that a robust action plan will be put in place to mitigate the risks arising from an increasing budget gap and to focus on meeting service and savings targets. 

(Reference: Report by Head of Strategic Finance dated 7 August 2017, submitted; Motion by Councillor Aileen Morton, seconded by Councillor Gary Mulvaney, tabled)