Agenda item

A report by the Director of Finance and Support Services setting out the quarter 2 performance and finance position as at the end of September 2020.

The Committee is asked to examine the data and supporting commentary for the Quarter 2 TPM and make any relevant recommendations for action to the Cabinet Member or relevant scrutiny committee.

91.1  The Committee considered the quarter 2 Total Performance Monitor (TPM) report to end of September 2020 from the Director of Finance and Support Services (copy appended to the signed minutes).

91.2  The Cabinet Member for Finance introduced the report and highlighted key information for the Committee.  The report addresses concerns around the financial aspects of service delivery and the challenges faced.  The projected in-year overspend is considerably less than predicted last quarter, particularly in Children’s Services.  The overspend is down from £16m to £5.5m and can be covered by use of the contingency budget without the need to use reserves.  Covid costs have risen slightly but there has been an increase in the Covid grant to cover this.

91.3  The Director of Finance and Support Services introduced the finance aspect of the report and highlighted key information.  The Covid-19 grant received up to October is outlined in an appendix, however as the pandemic continues demand on the council services will continue to change.  The impact of the pandemic on children’s services was reviewed as the impact of Covid-19 on placement activity and costs became clearer.  An underspend in the Children’s Services Improvement Programme and additional grants received have helped offset the increased costs.  There has been a significant change in the numbers of older people’s residential (reduced) and non-residential services (increased) and future budget setting will kept under review.

91.4  The scrutiny committee chairmen were asked to outline any financial risk or performance issues highlighted by the scrutiny committees, as follows:

·       The Children and Young People’s Services Scrutiny Committee (CYPSSC) will consider proposals for Early Help at their January meeting, and will look at current and future service demand expectations for intentionally homeless persons and the effect of Covid.

·       The Health and Adult Social Care Scrutiny Committee (HASC) highlighted the effect of Covid on social care provision, residential care beds required, and future care place planning.  The Shaw contract is being monitored, in addition to some quality of care issues.  The committee is also monitoring Government proposals to abolish Clinical Commissioning Groups.

·       The Environment and Communities Scrutiny Committee (ECSC) noted in the budget the funds to tackle the necessary Ash Dieback works in 2021/22.

·       The Fire & Rescue Service Scrutiny Committee (F&RSSC) noted the service response to the Covid pandemic.

91.5  The Committee made comments in relation to the TPM finance report including those that follow. It:

·       Welcomed the work by council services to identify savings.

·       Expressed concern that plans for Children Looked After (CLA) to exit care have been delayed due to Covid, highlighted the importance that children exit care at the appropriate time, and asks CYPSSC to look into this matter.

·       Noted the delay in children’s cases going to Court due to Covid and the extra financial burden this causes, this is outside the council’s control, and queried whether any children’s services tribunal costs have been funded by the Government.  The Director of Finance and Support Services will clarify the tribunal cost details for the Committee.

·       Highlighted that increasing demand for Education and Health Care Plans (EHCP) for children in the county results in a deficit of £9m in the Dedicated Schools Grant (DSG), and agreed this should be highlighted to the Department for Education.  The Chairman will seek information from the Cabinet Member for Education and Skills.  The Director for Finance and Support Services confirmed funding is slightly higher this year than last, however it is not sufficient for the current levels of demand so the DSG overspend will continue.

·       Expressed concerns regarding the significant rise to the number of young people not in education, employment or training (NEETs).  Requested a breakdown from the Cabinet Member for Education and Skills of the trend and numbers of NEETS.  The Director of Finance and Support Services explained the measure has changed to include those of ‘unknown’ status, therefore is perceived as an increase.

·       Queried when Admiral dementia nurses would be available in the south of West Sussex.  The Chairman of HASC will take this point forward as services differ across the county.

·       Echoed the concerns of the HASC Chairman that care homes are underperforming and queried if the Council has any influence on this.  The Chairman will ask the Cabinet Member for Adults and Health for reassurance.  The HASC Chairman confirmed the Shaw contract is on that committee’s work programme for 2021/22.

·       Questioned the escalation of adult social care costs over the previous six months, including over the maximum rates, and queried the expected total overspend at the end of 2020/21.  The Director of Finance and Support Services confirmed costs have risen over the period and will provide the figures.

·       Expressed concern that the backlog in financial assessments prior to in-sourcing the service could impact on the ability of families to pay. 

·       Asked whether the projected National Concessionary Fares underspend used for Ash Dieback felling works could have been carried over to 2021/22 to save cutting concessionary services in the budget, and requested a response on this from the Cabinet Member for Highways and Infrastructure.  The Director of Finance and Support Services highlighted that the council’s priority is to balance the budget for this year.

·       Highlighted that some identified savings are judged to be ‘red’, not achievable, and requested all scrutiny committees consider the savings relevant to their remit to understand why some are not being made or mitigated. 

·       Commented that ensuring value for money across council services is essential and that this could be included in the TPM report.  The Director of Finance and Support Services confirmed value for money is really important and benchmarking to statistical neighbours is undertaken regularly to monitor this as well as being regularly reviewed by senior officers.

·       Queried whether there is an understanding of the effects of Brexit on the council in terms of residential and business finances.  The Director of Finance and Support Services explained the effect is hard to estimate but the main concern is a general increase in prices.

·       Expressed regret that a number of the committee’s questions were not able to be answered as not all of Cabinet were in attendance.

91.6  The Chairman introduced the performance section of the TPM report, commenting that the Committee hope to see the measures which are suspended to the end of 2020/21 soon.

91.7  The Committee made comments including those that follow.  It:

·       Expressed concern regarding performance measure 39 (Effective CLA Permanency Planning) and requested that CYPSSC consider it. 

·       Questioning regarding indicator 29 [economically active 16-64 year olds in employment] whether aiming for 80% is acceptable.  Queried whether the council is working with business and employers to aid recovery.  The Cabinet Member for Economy and Corporate Resources clarified the council’s role, supported by the Economic Reset Plan, is to influence and encourage initiatives including diversification and re-skilling employees.  The Council are regularly lobbying Government on the economy. 

91.8  The Committee considered the risk aspects of the report and made comments including those that follow.  It:

·       Expressed great concern that corporate risk 61 (death/serious injury of a child (Council failing in their duty)) and corporate risk 69 (Children’s services fail to deliver an acceptable provision to the community) remain high risk.  Given the work on the Improvement Plan some improvement in these measures should be seen.

·       In relation to corporate risk 68 (Covid and the risk to delivery of the Council’s services), suggested the recent report from the HASC Covid-19 TFG be shared with internal audit to assist their review. 

·       Queried how many care homes in West Sussex are struggling to maintain an economically viable number of residents due to the effects of Covid.  The Director of Finance and Support Services will confirm the current figure.

·       Expressed concern that corporate risk 39a (Cyber security) remains a high risk.  The Cabinet Member for Economy and Corporate Resources stated cyber security is taken seriously by the council, all staff take mandatory online training and all Members are encouraged to.  Additional Government funding for cyber security has been announced and the detail is awaited.

91.9  The Director of Human Resources and Organisational Development introduced the Workforce section of the TPM and highlighted key information for members.  The requirement for staff to remain working from home where possible continues to show a decrease in sickness rates, however it is notable that the main reasons for sickness are now muscular-skeletal (MSk) issues.  Staff are being encouraged to assess their workstations, take breaks, and avoid the temptation to be “always on”.  The Cabinet Member for Economy and Corporate Resources reiterated the advice is relevant to elected Members as well as staff.

91.10  The Committee made comments in relation to the TPM workforce report including those that follow. It:

·       Welcomed the continued fall in levels of sickness.

·       Expressed concerns regarding the effects of MSk issues on staff, especially if there is a move post-Covid to encourage more regular home working.  The Director of Human Resources and Organisational Development explained the New Ways of Working group aims to encourage staff to take responsibility for their health when working from home and look after themselves; additional help will be provided where needed.

·       Commented that if the future expectation is staff remain working from home then this should be resourced to the same standard as working from the office.  The Director of Human Resources and Organisational Development is aware of the issues and the need for a balanced approach.  The Cabinet Member for Economy and Corporate Resources recognised that home circumstances differ for all staff and home working results in higher costs for heating and home energy.

·       Queried if officers are looking at the long-term impacts of Covid in relation to the need for office space.  The  Director of Human Resources and Organisational Development confirmed the intention is to build back better, with flexible and agile buildings and spaces.

·       Highlighted the notable decrease in induction completion rates and management training completed in Children’s Services.  The Director of Human Resources and Organisational Development confirmed this is being investigated.  The Chairman requested an update be provided on this in due course. 

·       Commented that the increase in council headcount and agency staff usage is concerning whilst the council are under pressure to deliver more for less cost.

·       Queried why the levels of stress have fallen during home working  and whether investigations will be undertaken to determine why. The Director of Human Resources and Organisational Development would take this work forward.

91.11  The Committee noted its thanks to officers for a good, informative TPM report which has improved in format over previous years. 

91.12  Resolved – That the Committee:

1)   Recommend value for money and benchmarking information be included in future TPM reports;

2)   Request that scrutiny committee chairman review the savings at risk within their portfolio areas;

3)   Recommend CYPS review the arrangements around Children Looked After and Children Exiting Care particularly around the effects of Covid and how quickly children can exit care. The review should include benchmarking with other Councils;

4)   Reiterate the need for information on the progress of achieving the targets and outcomes in the Children’s Improvement Plan; and

5)   Welcome the reported fall in sickness due to stress, but request consideration be given as to why.