Agenda item

Trafod Adroddiad Cyflawniad y Cyngor ar gyfer Chwarter 1 2020/21.

The Service Director – Finance and Improvement Services presented the Council’s Quarter 1 Performance Report (to 30^th June 2020).

The Service Director explained that the Quarter 1 Performance Report was presented to Cabinet on the 24^th September 2020 and contains revenue and capital budget performance; Treasury Management prudential indicators; Organisational Health information, including staff turnover; sickness and Council strategic risks; corporate plan priority action plan updates; other national measures; and target setting.

The Service Director advised Members that the first quarter revenue budget position is projecting a £2.903M overspend. It was emphasised that this is an early projection for the full year and reflects the impact of forecasted changes in demand through to year-end, with key pressures being primarily within Adult Social Care and Children’s Services. The projected position is also set in the unprecedented context of COVID-19 and takes into account additional Welsh Government funding received for the first 3 months of the year, and that forecasted to be received for the remainder of the year, in respect of additional expenditure incurred and income loss as a result of the pandemic.

Members were informed that work will continue to closely monitor the Council’s financial position, refresh financial forecasts for the full year as updated information becomes available and also engage with Welsh Government to highlight the importance of providing additional funding to meet on-going permanent cost pressures.

The Service Director advised the Committee that capital investment, as at 30th June 2020, is £7.7M, with projects across the programme recommencing during quarter 1, taking account of COVID-19 safety requirements, following the initial 3 week lockdown period from 23rd March. In addition, a number of schemes have been re-profiled during the quarter to reflect changes in costs and also new external grant funding approvals received.

Following the overview by the Service Director, Members scrutinised the report and put forward their questions.

Councillor S. Rees sought further information in respect of the financial impact of the latest Wales wide lockdown and the measures in place to support local businesses throughout the period. Councillor S. Rees asked if funding can be claimed back from the Welsh Government and the impact on Local Authority staff in managing the lockdown measures. The Service Director – Finance and Improvement Services advised Members that in terms of the initial business grants payments made between April-July, the payments equated to £40-50M and it was a monumental effort by RCT Staff Members across the finance department. The Service Director acknowledged that this was a challenge for staff, however, he praised all staff for their hard work and dedication. It was emphasised that whilst it is important that business grants continued to be paid on a timely basis, managers will also ensure that staff members are looked after appropriately.

A further query was raised by Councillor S. Rees-Owen in respect of the resources available for school learners in relation to remote learning and whether the Council is satisfied that school learners have everything that they need to continue with their studies on a remote basis. Councillor S Rees-Owen sought information on the financial implication of these additional resources to the Local Authority.  The Service Director – Finance and Improvement Services confirmed that the Council did take advantage of additional funding to ensure that appropriate resources and equipment was distributed to schools during the first lockdown, however, the Service Director advised Members that he would refer the matter to the Director of Education and would provide a further update to the Committee in due course.

Mr Fish, the Voting Parent/ Governor Representative, sought reassurance that schools were still in a position to retrospectively claim back additional COVID-19 expenses. Mr Fish also emphasised that the demand for multiple devices in households will increase and Mr Fish sought reassurance that the Authority will be in a position to meet this growing demand. The Head of Finance – Education & Financial Reporting informed Members that all schools were issued with some guidance at the start of the term and were given forms to complete to apply for additional financial support. The Council has advised all schools in the County Borough to assume in their monthly outturns that they will get reimbursement unless they are told otherwise.

The Chair referred the Committee to page 56 of the report and sought information as to how much the sickness absence is costing the Authority. The Service Director – Finance and Improvement Services informed the Chair that this figure is not ordinarily calculated on a quarterly basis and is historically  calculated in terms of the number of days lost against an average salary cost. The Chair raised his concerns in respect of Adult Services and the large number of sickness days lost. The Service Director – Finance and Improvement Services acknowledge that in terms of Adult Services there has been a higher than average figure in respect of Council staff absences and that part of this is due to the nature of the work itself. The Service Director emphasised that there are timely measures in place to support the individual to return to work, for example, this may include accelerated referrals to Occupational Health. The Service Director advised Members that further information will be sought from the Human Resources department in terms of any underlying reasons or this upward trend in sickness levels and information will be fed back to Committee in due course.

Following discussion, Members RESOLVED to endorse the Council’s financial and operational performance position as at 30^th June 2020 (Quarter 1).