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People directorate quarterly service report - budget position

Revenue budget

The original cash budget for the people department was £48.849 million. Net transfers out of £0.466 million have been made, bringing the current approved cash budget to £48.383m.

In addition to this amount, there is a budget for Dedicated Schools Grant and other income of £100.350 million to fund the Schools Budget which is outside the control of the council where there have also been net transfers in from Reserves of £0.592 million making a gross budget of £100.942 million.

Within the Schools Budget, £23.442 million is managed by the council on behalf of schools. A breakdown of the budget is available in the document below, which is presented for the first time under the new Directorate reporting structure, with it showing the budget changes processed this quarter.

The forecast outturn for the department is £54.467 million (£6.084 million overspend on the current approved cash budget, an increase of £1.087 million from the last period). For the Schools Budget, the outturn forecast is £2.985 million (£2.393 million over spend, an increase of £1.442 million from the last period).

A detailed analysis of the variances this quarter will be available shortly.

The department has identified the following as budgets that can pose a risk to the council’s overall financial position, principally because it is vulnerable to significant changes in demand for services.

The current position is as follows:

Table showing potential budget risks.

Service area

Budget £000

Forecast outturn £000

Comments

Looked After Children – accommodation, care costs and allowance payments

£5,363

£7,967

The budget assumed an average of 119.0 high cost placements throughout the year at circa £44.3k each. There are now (31 August) forecast to be 128.2 (+7.7%) at circa £53.0k each (+19.8%).

Externally purchased Adult Social Care

£21,090

£23,113

This is a volatile area, dependent on number of clients, complexity of care, health funding and the availability and capacity of local providers. The budget is split across the four teams, ACT, CMHT, CMHTOA and CTPLD. The budget assumed in-year cost reductions through the Transformation Programme.

Capital budget

The original capital budget for the People Directorate was £15.370 million. The Executive approved £11.794 million of under spending from 2018 to 2019 to be carried forward resulting in a total budget of £27.164 million. At this stage, no significant matters have arisen.

A detailed list of schemes together with their budget and forecast spend will be available shortly.