At its meeting held on 21 January 2010 (minute 55a refers), the Children and Young People O&S Committee considered minute 25 ‘Financial Monitoring Statement’, of the Council Excellence Overview and Scrutiny Committee held on 16 September, 2009, which had requested that the consideration of serious concerns with regard to the projected overspend in the Children and Young People’s Department.

Minute 55a reads as follows –

“The Director of Children’s Services responded to the concerns and stated that all his officers were aware of the need to keep within the budget set by the Council at the beginning of March 2009. The schools budget had increased by twice the level of inflation but the non-schools budget expenditure had been constrained. The non-schools budget amounted to approximately £70m revenue budget, half of which was social care related and the other half of which was non-school educational needs.

The Director explained the expenditure that was involved in placing children in specialist care at an average cost for each child of £150,000 per annum. This was a budget that had to respond to need and could not be predicted with any certainty, although every measure was taken to try and reduce the number, currently at 45, by placing children with families, wherever possible.

Rigorous measures were in place in the Department to constrain expenditure, including vacancy savings of about £1m a year. The Director reported that the Director of Finance was about to report to Cabinet a predicted £975,000 overspend for the end of quarter 3 and he was confident that this position would be further improved by the end of quarter 4.

Resolved – That the comments of the Director be noted and these be referred to the Council Excellence Overview and Scrutiny Committee.”

Further to minute 25 (16 September 2009), the Director of Law, HR and Asset Management reported that at its meeting held on 21 January 2010 (minute 55a refers), the Children and Young People O&S Committee considered the serious concerns expressed by the Council Excellence Committee with regard to the projected overspend in the Children and Young People’s Department. The Committee had considered also comments of the Director of Children’s Services and had requested that they be referred to the Council Excellence O&S Committee. The Director of Finance reported that although Children and Young People still faced demands, primarily from residential care and SEN (including transport), actions to maximise grants and control spend now meant that the Director of Children’s Services was now anticipating spend to be kept within the budget allocated (see minute 60 ante)

Resolved – That the referral from Children and Young People Overview and Scrutiny Committee (minute 55a – 21 January 2010), and the comments of the Director of Finance, be noted.

To consider a referral from the Council Excellence Overview and Scrutiny Committee held on 16 September, 2009.

The Committee considered minute 25, ‘Financial Monitoring Statement’, of the Council Excellence Overview and Scrutiny Committee of 16 September, 2009, which had requested that the Committee consider their serious concerns with regard to the projected overspend in the Children and Young People’s Department.

The Director responded to the concerns and stated that all his officers were aware of the need to keep within the budget set by the Council at the beginning of March, 2009. The schools budget had increased by twice the level of inflation but the non-schools budget expenditure had been constrained. The non-schools budget amounted to approximately £70m revenue budget, half of which was social care related and the other half of which was non-school educational needs.

The Director explained the expenditure that was involved in placing children in specialist care at an average cost for each child of £150,000 per annum. This was a budget that had to respond to need and could not be predicted with any certainty, although every measure was taken to try and reduce the number, currently at 45, by placing children with families, wherever possible.

Rigorous measures were in place in the Department to constrain expenditure, including vacancy savings of about £1m a year. The Director reported that the Director of Finance was about to report to Cabinet a predicted £975,000 overspend for the end of quarter 3 and he was confident that this position would be further improved by the end of quarter 4.

Resolved – That the comments of the Director be noted and these be referred to the Council Excellence Overview and Scrutiny Committee.