INTEGRATED RESOURCES AND PERFORMANCE REPORT FOR THE PERIOD ENDING 28 TH FEBRUARY General Purposes Committee (GPC) is recommended to:

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1 Agenda Item No. INTEGRATED RESOURCES AND PERFORMANCE REPORT FOR THE PERIOD ENDING 28 TH FEBRUARY 2018 To: Date: From: Electoral division(s): General Purposes Committee n/a via Chief Finance Officer All Forward Plan ref: Key decision: Yes Purpose: Recommendations: To present financial and performance information to assess progress in delivering the Council s Business Plan. General Purposes Committee (GPC) is recommended to: a) Analyse resources and performance information and note the significant remedial action being taken. b) Note the changes to capital funding requirements as set out in section 6.8. c) Approve an additional 138k of prudential borrowing in 2017/18, to offset the increased use of capital receipts for additional capitalisation of redundancies as set out in section 6.9. Officer contact: Member contacts: Name: Tom Kelly Names: Councillors Count & Hickford Post: Head of Finance Post: Chair/Vice-Chair Tom.Kelly@cambridgeshire.gov.uk Steve.Count@cambridgeshire.gov.uk Roger.Hickford@cambridgeshire.gov.uk Tel: Tel:

2 1. PURPOSE 1.1 To present financial and performance information to assess progress in delivering the Council s Business Plan. 2. OVERVIEW 2.1 The following summary provides a snapshot of the Authority s performance against its indicators around outcomes, its forecast financial position at year-end and its key activity data for care budgets.

3 Data available as at: 28 February 2018 Outcomes 88 indicators about outcomes are monitored by service committees They have been grouped by outcome area and their status is shown below Older people live 1 well independently People with disabilities live well independently Off target 50% On target 25% Near target 25% Decreasing Off target 25% Near target 25% On target 50% Stayed the same 4 indicators 4 indicators Adults and children are kept safe People live in a safe environment Off target 40% On target 60% Stayed the same Off target 63% On target 25% Near target 12% Stayed the same Near target 0% 6 indicators, 1 of which does not have a target The Cambridgeshire economy prospers to the benefit of all residents 12 indicators, 4 of which do not have targets Places that work with children help them to reach their potential Near target 16% Off target 17% On target 67% Stayed the Same Off target 20% Near target 30% On target 50% Stayed the same 15 indicators, 3 of which do not have targets People lead a healthy lifestyle and stay healthy for longer Near target 31% Off target 13% On target 56% 35 indicators, 3 of which do not have targets Decreasing 10 indicators Our Transformation Programme is on track 25 Early ideas 119 Business cases in development 24 Projects being implemented Transformation Fund: 35 projects rated Green 4 rated Amber (reflecting some need to re-phase savings) 2 rated Red (risk of non-delivery of savings or benefits) Sustain a high performing, talented, engaged and resilient workforce As of the end of February 2018 we had lost 5.94 days on average per staff member to sickness during the last 12 months. This is lower than the average number of days lost per staff member at the end of 2016/17 (6.91 days).

4 Finance and Risk Revenue budget forecast + 4.4m (1.2%) variance at end of year RED This is a 0.301m increase in the revenue forecast pressure since last month. This is an 8.8m increase in the underspend on the capital programme forecast compared to last month. Capital programme forecast m underspend forecast, comprising - 2.4m underspend on non-housing schemes and m relating to housing schemes GREEN Residual risk score Green Amber Red Number of risks 0 *Latest Review: January Number of service users supported by key care budgets Older people aged 65+ receiving long term services Feb-18 Trend since Apr-17 Nursing 444 Stayed the same Residential 856 Increasing Community 2,269 Increasing Adults aged 18+ open to disability services receiving long term services Feb-18 Trend since Apr-17 Nursing 26 Stayed the same Residential 323 Increasing Community 1,934 Increasing Children open to social care Feb-18 Feb Trend since Apr-17 Looked after children 697 Increasing Child protection 498 Decreasing Children in need* 2,124 Increasing *Number of open cases in Children's Social Care (minus looked after children and child protection) Public Engagement Feb-18 Feb 2018 Trend since Aug-17 Contact Centre Engagement 12,741 Phone Calls Decreasing 4,678 Other #REF! Increasing Website Engagement (cambridgeshire.gov.uk) 169,300 Users Increasing 262,796 Sessions Increasing The number of service users is a key indicator of the demand for care budgets in social care, inforamtion about the contacts with the public across web and phone channels is a key indicator of both service delivery and transformation.

5 2.2 The key issues included in the summary analysis are: The overall revenue budget position is showing a forecast year-end pressure of + 4.4m (+1.2%), an increase of 301k on the forecast pressure reported in January; there have been increases in Place & Economy (P&E), LGSS Managed and LGSS Operational, partially offset by improvements in the forecast for People and Communities (P&C). The LGSS Operational forecast is a 150k pressure after fully utilising LGSS reserves. See section 3 for details. The Capital Programme is forecasting an underspend of - 2.4m compared to the position originally anticipated when the capital programme variations budget was set. Incorporating the in-year forecast underspend of m on Housing schemes, this gives an overall forecast underspend position of m. This includes forecast full utilisation of the 27.5m capital programme variations budget. See section 6 for details.

6 3. REVENUE BUDGET 3.1 A more detailed analysis of financial performance is included below: Key to abbreviations CS Financing DoT Corporate Services Financing Direction of Travel (up arrow means the position has improved since last month) Original Budget as per Business Plan Service Current Budget for 2017/18 Forecast Variance (January) Forecast Variance (February) Forecast Variance (February) Overall Status % 38,682 Place & Economy 42, % Amber 237,311 People & Communities 239,567 6,774 6, % Red 200 Public Health Green 15,542 Corporate Services 4, % Amber 6,500 LGSS Managed 11, % Amber Commercial & 2, Amber Investment 22,803 CS Financing 24,227-2,006-2, % Green Service Net 323, ,606 5,578 5, % Red Spending 24,377 Funding Items 23,305-1,520-1, % Green 348,117 Subtotal Net Spending 345,911 4,058 4, % Red Memorandum items: 7,746 LGSS Operational 9, % Amber Grand Total Net Spending 355,442 4,044 4, % Red 212,873 Schools 212,873 Total Spending 568, , /18 1 The budget figures in this table are net, with the Original Budget as per BP representing the Net Budget column in Table 1 of the Business Plan for each respective Service. 2 For budget virements between Services throughout the year, please see Appendix 1. 3 The budget of 387k stated for Public Health is its cash limit. In addition to this, Public Health has a budget of 26.0m from ring-fenced public health grant, which makes up its gross budget. 4 The Funding Items budget (previously been referred to as Financing Items ) comprises the 23m Combined Authority Levy and the 384k Flood Authority Levy. The forecast outturn on this line reflects any variance in the amount received from corporate grants and business rates from what was budgeted; a negative outturn indicates a favourable variance, i.e. more income received than budgeted. DoT

7 3.1.1 Across the Council, the strategic management team is directing a proactive response through financial management and transformation activity to address the predicted deficit. The response to the pressures arising includes: increasing savings achievable from contractual efficiencies, as part of the rolling procurement review capability, now established and overseen by the Commercial Board. bringing forward savings, efficiencies and income maximisation identified for future years where this is possible on a department-by-department basis maximising grant income and retention with appropriate application to current pressures review of earmarked and held funds and releasing these where no longer required benefitting from opportunities for reduced cost or additional income through collaboration across partners. at the November General Purposes Committee (GPC) meeting the Committee noted Peterborough City Council s request to the Chief Executive to explore delivery of further shared services with other local authorities to protect front line services and asked that these opportunities were also explored on behalf of Cambridgeshire County Council. This programme of work has commenced, with opportunities being taken for collaboration and expertise sharing already where these arise. To date across these measures mitigations totalling 6.2m have been identified.

8 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Outturn 000's Forecast Outturn Position 2017/18 7,000 6,000 5,000 4,000 3,000 2,000 1, ,000-2,000 P&E P&C Public Health CS LGSS Managed C&I CS Financing Financing Items LGSS Operational -3,000 Month The Council has enhanced its financial reporting processes in recent months as the level of budgetary challenge has continued to increase. The outlook for demand services remains a risk as services face the winter months - service management teams are planning responses that nonetheless improve the financial position in that context. The Council has significant budget flexibility to respond to these risks and uncertainties. In addition to the measures already identified and listed in section 3.1.1, SMT has identified significant one-off mitigation in the following areas which will be released in a planned way to respond to and smooth resource needs in the remainder of the financial year, while delivering an improved outturn, compared to the pressures currently reported. Grant and funding review Balance sheet & financial provision review Commercial income Workforce There is significant potential to re-prioritise grant funded activity, especially in response to Adults Services pressures as these emerge in winter at a local level, in collaboration with the NHS. This is part of a planned approach across at least the next 2 years. There are opportunities to review and release funds previously held for specific risks or uncertainties that can be re-directed in the current context. This forms a regular and routine part of financial and management activity. As the remit of the Commercial and Investment Committee widens, we view that there are opportunities for an improved position reported by traded and shared services in the remainder of the year. Vacancy and recruitment review activity will continue to forecast financial impacts and deploy existing workforce to key priorities.

9 3.2 Key exceptions this month are identified below Place & Economy: m (+0.6%) pressure is forecast at year-end. Winter Maintenance a + 730k pressure is forecast. This is due to the number of gritting runs that have taken place in November to February compared to previous years. For this year 69.5 runs have taken place compared to 42.5 runs that took place for the whole of last year. We are now forecasting around a total of 80 runs for the year based on the estimated expected runs for the remainder of the year comparing to previous years. This latest forecast takes into account the recent severe weather period. m % (+37%) Executive Director a + 317k pressure is forecast. The review of Senior management within P&E has completed with implementation on 1st February This limits the amount of savings that can be made in this financial year. The full year will save up to 250k. The forecast spend also includes a number of one off subscriptions (+20%) For full and previously reported details see the P&E Finance & Performance Report ( People & Communities: m (+2.7%) pressure is forecast at year-end. Due to the material overspend in Children s Services, the full narrative regarding those variances, provided to the CYP Committee is available in Appendix 3 to this report. m % Looked After Children (LAC) Placements a + 3.5m pressure is forecast, which is an increase of 300k on the pressure previously reported in January. The increase is due to a combination of factors including an increase in average placement costs, one new high cost placement, one high cost placement where the length of stay has exceeded the planned time, and an increase in 16/17 costs that were reserved for at year end, which have subsequently been invoiced for at a higher amount than expected. External placement numbers (excluding unaccompanied asylum seeking children (UASC) but including 16+ and supported accommodation) at the end of February are 355, which is the same level as reported at the end of January. However the composition of placement types and costs indicates that a small but significant number of children are in receipt of very intensive and costly packages of support which has increased since last month. The Access to Resources team are working with providers to ensure that support and cost matches need for all children. Actions being taken to address the forecast pressure are outlined in Appendix (+20%)

10 Learning Disability Partnership a + 3.4m pressure is forecast, which is an increase of 498k on the pressure previously reported in January. Overall this is due to higher than expected demand pressures throughout the year and lower levels of savings than required. The change from last month is due to increased care costs above the level expected. Whilst it is late in the financial year, a number of packages with large costs have been agreed as a result of breakdown in care arrangements and urgently changing need. Where these are permanent packages there will be an impact on spend in the LDP in 2018/19 which will be built into budgets. SEN Placements a + 1.2m pressure is forecast, which is an increase of 352k on the pressure previously reported in December. The majority of this increase relates to one new high cost placement. The remainder is due to a further increase in placements being approved at panel. This budget pays for the educational element of those placements and is funded from the Dedicated Schools Grant (DSG). It is the aim that any pressures on DSG funded services will be managed from within the overall available DSG for 2017/18. Older People s Services a 0.9m pressure is forecast, which is a decrease of 543k on the pressure previously reported in January. The reduced pressure is the result of continuing reductions in the overall number of people receiving care following increases in the number of deaths and hospital discharges. There is an expectation of additional cost from the additional activity to transfer people out of hospital, but the impact of that in this financial year is expected to be lower than previously forecast due to the number of people being discharged to other NHS funded care arrangements. Physical Disabilities a 0.06m pressure is forecast which is a decrease of 345k from the underspend previously reported in August. Whilst this brings the service almost to a balanced position, the change is due to reduced expectation of health funding for service-users which offsets the underspend from lower than expected demand. A large amount of additional healthfunding was built into the service s budget this year, and whilst a significant portion has been achieved, ongoing challenge from the NHS has resulted in a prudent adjustment to expectations around funding still to be agreed, though work is ongoing to ensure that appropriate health funding arrangements are in place. Strategic Management - Commissioning a - 0.3m underspend is forecast. The Grants to Voluntary Organisations budget is forecasting an underspend of 195k, which is due to the Home Start/Community Resilience Grant where the re-commissioning of this service ceased in 16/17 ( 168k), and 27k has been identified in relation to an underspend in Small Grants in 2017/18. This has therefore reduced the 2017/18 committed expenditure. This (+6%) (+13%) (+2%) (+1%) (-9%)

11 underspend is partially offset by interim management costs that were incurred pending the outcome of the new Commissioning Directorate consultation. Financing DSG a - 2.1m required contribution from DSG is now forecast, which is an increase of - 352k on the position previously reported in October. This is due to increases in the High Needs forecast pressure, specifically in respect of SEN placements (-5%) Strategic Management Adults a - 4.4m underspend is forecast, which is an increase of - 336k on the underspend since last month. The forecast improvement is due to further overdelivery of vacancy savings across Adults and Safeguarding. As previously reported, the forecast underspend is due primarily to assumptions around the ability to re-prioritise grant funded activity, in response to Adults Services pressures as these emerge, this relates particularly to an increased performance in delayed transfers of care (DTOC), bringing with it an increased need for the delivery of complex packages of care for older people (-45%) In addition, efficiencies have been made within Adults transport services. For full and previously reported details see the P&C Finance & Performance Report ( Public Health: a m (-%) underspend is forecast at year-end. There are no exceptions to report this month; for full and previously reported details see the PH Finance & Performance Report ( Corporate Services: m (+3.7%) pressure is forecast. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report ( LGSS Managed: m (+2.6%) pressure is forecast. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report ( CS Financing: m (-8.3%) underspend is forecast at year-end. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report ( Commercial & Investment: m (-%) pressure is forecast. There are no exceptions to report this month; for full and previously reported details see the C&I Finance & Performance Report ( LGSS Operational: m (+1.6%) pressure is forecast. LGSS Operational a m pressure is forecast. There is a forecast pressure of around 300k on the LGSS budget as a result of the expectation that no dividend payments will be received from LGSS Law in the current financial year. These dividend payments m % (+2%)

12 are built into the LGSS budgets and whilst there has been some increased trading income this year within LGSS to offset the budget shortfall, a pressure of around 300k remains. This pressure is shared equally between CCC and NCC. Pressures in LGSS Operational are set against LGSS reserves at year-end up until the point that the LGSS reserves are fully utilised. The 150k pressure reported above is the forecast after fully utilising LGSS reserves, at which point the General Fund will need to be utilised to fund the position, in the same way as other directorate outturns. For full and previously reported details see the CS & LGSS Finance & Performance Report ( Note: exceptions relate to Forecast Outturns that are considered to be in excess of +/- 250k.

13 4. KEY ACTIVITY DATA 4.1 The latest key activity data for: Looked After Children (LAC); Special Educational Needs (SEN) Placements; Adult Social Care (ASC); Adult Mental Health; Older People (OP); and Older People Mental Health (OPMH) can be found in the latest P&C Finance & Performance Report ( (section 2.5). 5. PERFORMANCE AND RISK 5.1 The work to review all indicators and report exceptions against these is still ongoing; once all Service Committees have reviewed their indicators, exceptions will be reported to GPC. 5.2 Increasing Pressures Requiring Attention: There were two outcomes where the overall performance decreased since last month. The first was Older people live well independently. This reflected change in one indicator, Proportion of service users requiring no further service at end of re-ablement phase, which changed from 57.2% (green RAG rating) to 52.4% (amber). The service continue to experience a significant challenge around capacity and recruitment. A recruitment campaign is currently being undertaken to increase staffing and discussions are being held with the NHS to fill intermediate care gaps and reduce inappropriate referrals to re-ablement. The second outcome with decreased performance was People lead a healthy lifestyle and stay healthy for longer and reflected a change in two indicators. The first, Personal Health Trainer Service Personal Health Plans Produced (Pre-existing GP based service), changed from green RAG rating (947 plans, 101% of YTD target) to amber (1082 plans, 83% of YTD target). The second Number of physical activity groups held (Extended Service) changed from green (524, 105% of YTD target) to amber (638, 97% of YTD target). Despite these two indicators decreasing, overall performance in this area, lifestyle services, is good, with 11 green, 3 amber and no red indicators. Further information on the specific indicator changes are detailed on the relevant service committee finance and performance reports. 5.3 The master file of performance indicators is available here, ( while the latest Corporate Risk Register can be found here, (

14 6. CAPITAL PROGRAMME 6.1 A summary of capital financial performance by service is shown below: 2017/18 TOTAL SCHEME Original 2017/18 Budget as per Business Plan Service Revised Budget for 2017/18 Forecast Variance - Outturn (Jan) Forecast Variance - Outturn (Feb) Forecast Variance - Outturn (Feb) Forecast Variance - Outturn (Feb) Forecast Variance - Outturn (Feb) % ,331 P&E 72,511-1,378-10, % 435,038-77,408 P&C 75,442 8,239 9, % 576,016 14,326 5,489 CS & Transformation 5, % 11, LGSS Managed % 9, ,408 C&I 115,455-47,338-47, % 234, LGSS Operational % 2, Outturn adjustment ,896 Total Spending 270,867-40,768-49, % 1,268,762 13,775 Notes: 1. The Revised Budget incorporates any changes in the funding available to what was originally budgeted. A breakdown of the use of the capital programme variations budget by service is shown in section The reported P&E capital figures do not include City Deal, which has a budget for 2017/18 of 11.1m and is currently forecasting a balanced budget at year-end 3. The Total Scheme Forecast Variance reflects the forecast variance against budget of the total expenditure for all active capital schemes across all financial years.

15 Service Capital Programme 2017/18 P&E P&C CS C&I LGSS Managed Spend to Date Forecast Expenditure Revised Budget LGSS Operational m Note: The Revised Budget incorporates any changes in the funding available to what was originally budgeted. 6.2 A summary of the use of capital programme variations budgets by services is shown below. As forecast underspends are reported, these are offset with a forecast outturn for the variation budget, leading to a balanced outturn overall up to the point when re-phasing exceeds this budget. 2017/18 Service Capital Programme Variations Budget Forecast Variance - Outturn (Feb) Capital Programme Variations Budget Used Capital Programme Variations Budget Used Forecast Variance - Outturn (Feb) % 000 P&E -15,514-26,257 15, % -10,743 P&C -10,305-1,064 1, % 9,241 CS & Transformation % 197 LGSS Managed , % -375 C&I Non-Housing , % -674 LGSS Operational % -10 Outturn adjustment - - 9, Subtotal -27,481-29,845 27, % -2,364 C&I Housing % -47,209 Total Spending -27,481-29,845 27, % -49,573

16 6.3 As at the end of February 2018, People & Communities is forecasting an overall utilisation of - 1.1m of the m capital programme variations budget originally allocated to P&C, and Corporate Services is forecasting an overall utilisation of - 0.1m of the - 0.3m capital programme variations budget originally allocated to CS. At this stage of the financial year it is forecast that P&C and CS will not require any further capital programme variations budget as these services will have delivered more of their capital programme than originally anticipated. Taken together with the re-phasing on Place and Economy, LGSS Managed, Commercial and Investment and LGSS Operational schemes which have exceeded the capital programme variations budget allocated to them, this fully utilises the total m capital variations budget and exceeds the total by - 2.4m. Therefore, overall expenditure on the 2017/18 capital programme is forecast to be underspent by - 2.4m compared to the position originally anticipated when the capital variations budget was set. 6.4 The C&I Housing scheme budget does not have a capital programme variations budget associated with it; it is therefore shown as a separate line in the above capital programme variations table. Incorporating the in-year forecast underspend of m on Housing schemes, this gives an overall forecast underspend position of m. 6.5 A more detailed analysis of current year key exceptions this month by programme for individual schemes of 0.25m or greater are identified below Place & Economy: a m (-15%) in-year underspend is forecast after the capital programme variations budget has been utilised in full. m % Guided Busway an in-year underspend of - 0.7m is forecast on the Guided Busway. This is due to part one compensation payments in relation to the busway only expected to be a maximum of 500k during this financial year (-58%) 90m Highways Maintenance schemes an in-year underspend of - 1.0m is forecast on the 90m Highways Maintenance schemes, which is an increase of - 1.3m on the position previously reported in January. Schemes funded by money from prudential borrowing tend to be those highway maintenance schemes that involve re-surfacing, rather than the lower cost surface dressing. Re-surfacing involves a greater level of preconstruction work due to the removal and replacement of the top layer of the road surface. The removal of the top surface has the potential to expose buried infrastructure. In order to reduce the risk of damaging the underlying infrastructure significant up front investigation is required. The findings of the investigatory work determines the level of design required before construction commences. This process is resource intensive, especially when the investigations highlight the need for a greater level of design work. This has resulted in some schemes not being completed this financial year and will be carried forward into the new financial year (-17%) Community & Cultural Services an in-year underspend of - 1.4m is forecast across the Community & Cultural Services schemes, which is an increase of - 0.9m on the underspend -1.4 (-72%)

17 previously reported in November. This is due to an underspend on the following scheme: o Sawston Community Hub: An in-year underspend of - 1.3m is forecast. Construction has yet to commence, expenditure to date has been on design and planning fees. The delay to the start of construction is due to protracted negotiations in the planning stages. We are currently finalising legal arrangements with our partners and once complete construction can be mobilised, so the majority of expenditure will be re-phased into 2018/19. Operating the Network an in-year underspend of - 2.0m is forecast across the Operating the Network schemes, which is an increase of - 1.1m on the underspend previously reported in December. This increase is due to underspends on the following schemes: o Carriageway & Footway Maintenance incl Cycle Paths: An underspend of - 1.0m is forecast. Some carriageway schemes have been delayed due to the impact of the drought damaged roads and the impact on available resources. Footway slurry seal/re-tread and barrier work is programmed for March but some work is expected to be rephased into 2018/19. The recent weather has also caused delays as temperatures have been too low for night work for patching, and it has not been possible to lay tarmac with snow on the ground. Delivering the Transport Strategy Aims an in-year underspend of - 2.0m is forecast across Delivering the Transport Strategy Aims schemes, which is an increase of - 0.9m on the underspend previously reported in January. This increase is in the main due to underspends on the Norwood Road highways scheme which has been delayed due to issues with Network Rail. King s Dyke an in-year underspend of - 4.4m is forecast on King s Dyke, which is an increase of - 4.0m on the underspend previously reported in December. Detailed design work by Kier, the appointed contractor, has now commenced but land access issues have caused delays. The majority of the work anticipated for 2017/18 will be re-phased into 2018/19. The current business plan forecast remains at 13.6m based on early estimates. As previously reported to Economy and Environment (E&E) Committee, the estimated cost could increase and an upper possible figure of 16.9m was indicated. The total scheme costs will become more robust as the design progresses. Any additional funding requirements, will be reported to the E&E Committee and GPC (-12%) -2.0 (-43%) -4.4 (-73%) For full and previously reported details see the P&E Finance & Performance Report (

18 6.5.2 People & Communities: + 9.2m (+25%) accelerated spend is forecast after utilising - 1.1m of the m capital programme variations budget allocated to P&C. m % Temporary Accommodation an in-year pressure of + 0.6m is forecast. It had been anticipated at Business Planning that the current stock of mobiles would prove sufficient to meet demand. Unfortunately, it has proved necessary to provide additional mobiles at Spring Common Special School which had required substantial investment ( 513k) to make the accommodation suitable (+39%) Basic Need Secondary an in-year pressure of + 0.3m is forecast, which is a decrease of 0.4m on the pressure previously reported in January. This decrease is mainly due to changes in the spending profile of the following schemes: o St Bede s: The project at St Bede s to deliver additional places in Cambridge has been re-phased by 1,145k due to delays in the kitchen refurbishment works and a revised completion date of 26 June rather than 29 May This is an increase in the re-phasing of 160k on the underspend previously reported in January. o Bottisham Village College: The project at Bottisham Village College is forecasting 700k of accelerated spend due to revised contractor cash flow reports that are indicating the project is ahead of the scheme s original schedule. This is a reduction in acceleration of 200k on the amount previously reported in January, +0.3 (+1%) Basic Need Primary an in-year underspend of - 1.8m is forecast, which is a decrease of 0.9m on the underspend previously reported in December. This decrease is mainly due to accelerated spend of 1000k forecast on the Fulbourn Primary School scheme as works are progressing ahead of the original contractor programme, and 300k forecast on the Wyton Primary scheme as the project is progressing better than initially forecast. This is partially offset by changes in the following schemes: o North West Cambridge Primary is forecasting 145k re-phasing as the associated housing development has not yet commenced therefore the scheme has not progressed to the design and planning stage. o Ramnoth Junior School is forecasting 100k re-phasing due to a delay on site; actions to mitigate the delay have been taken by the contractor. o Chatteris New School is anticipating 180k re-phasing; the withdrawal of an approved bid by the sponsor to open the new school as a Free School from September 2018 and recent demographics which show the scheme is needed less urgently that originally anticipated has required the reevaluation of options for providing the additional places required. The additional places will now be delivered as an extension of the age range at Cromwell Community College -1.8 (-5%)

19 and has meant a new design proposal; the scheme has not yet progressed beyond the concept design stage. P&C Capital Variation as agreed by the Capital Programme Board, any forecast underspend in the capital programme is offset against the capital programme variations budget, leading to a balanced outturn. As at February 2018, 1.1m of the 10.3m Capital Variation budget has been utilised and this is unlikely to change in the remainder of the financial year. This will be offset with additional borrowing of 9.2m. This is a decrease of 1.0m on the use of variations budget last reported in January (+90%) For full and previously reported details see the P&C Finance & Performance Report ( Corporate Services: m (+7%) accelerated spend is forecast after utilising - 0.1m of the - 0.3m capital programme variations budget allocated to Corporate Services. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report ( LGSS Managed: a - 0.4m (-40%) in-year underspend is forecast after the capital programme variations budget has been utilised in full. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report ( Commercial & Investment: a m (-42%) in-year underspend is forecast after the capital programme variations budget has been utilised in full. There are no exceptions to report this month; for full details see the C&I Finance & Performance Report ( LGSS Operational: a m (-1%) in-year underspend is forecast after the capital programme variations budget has been utilised in full. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report ( 6.6 A more detailed analysis of total scheme key exceptions this month by programme for individual schemes of 0.25m or greater are identified below: Place & Economy: a total scheme balanced budget is forecast. There are no exceptions to report this month; for full and previously reported details see the P&E Finance & Performance Report ( People & Communities: a m (+3%) total scheme overspend is forecast. There are no exceptions to report this month; for full and previously reported details see the P&C Finance & Performance Report ( Corporate Services: a + 0.6m (+5%) total scheme overspend is forecast. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report (

20 6.6.4 LGSS Managed: a - 0.5m (-5%) total scheme underspend is forecast. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report ( Commercial & Investment: a - 0.6m (-0%) total scheme underspend is forecast. There are no exceptions to report this month; for full and previously reported details see the C&I Finance & Performance Report ( LGSS Operational: a total scheme balanced budget is forecast. There are no exceptions to report this month; for full and previously reported details see the CS & LGSS Finance & Performance Report ( 6.7 A breakdown of the changes to funding has been identified in the table below. Funding Source B'ness Plan Budget Rolled Forward Funding1 Revised Phasing Additional/ Reduction in Funding Revised Budget Outturn Funding Funding Variance m m m m m m m Department for Transport (DfT) Grant Basic Need Grant Capital Maintenance Grant Devolved Formula Capital Specific Grants S106 Contributions & Community Infrastructure Levy Capital Receipts Other Contributions Revenue Contributions Prudential Borrowing TOTAL Reflects the difference between the anticipated 2016/17 year end position used at the time of building the initial Capital Programme budget, as incorporated within the 2017/18 Business Plan, and the actual 2016/17 year end position.

21 6.8 Key funding changes (of greater than 0.25m or requiring approval): Funding Addition/Reduction in Funding Department for Transport (DfT) Grant Addition/Reduction in Funding Department for Transport (DfT) Grant Addition/Reduction in Funding Prudential Borrowing Service P&E P&E P&E Amount Reason for Change ( m) The Challenge Fund programme of schemes has been re-phased with the majority of works being scheduled for completion in 2018/19. As such - 1.1m of the Challenge Fund DfT Grant will not be required until 2018/19. This change in spend profile has been notified to the DfT and no concerns have been raised. General Purposes Committee is asked to note this in-year reduction in funding The Safer Roads Fund scheme for safety improvements on the A1303 is being re-phased and it is anticipated that this will be completed in 2018/19. As such - 0.8m of the Safer Roads Fund DfT Grant will not be required until 2018/19. The altered spend profile for this scheme will shortly be notified to the DfT. General Purposes Committee is asked to note this in-year reduction in funding Due to the re-phasing of Challenge Fund work into 2018/19 as described above, the additional prudential borrowing of 2.25m approved by GPC in July 2017 to supplement the DfT Grant will no longer be required during this financial year. General Purposes Committee is asked to note this in-year reduction in the prudential borrowing requirement.

22 6.9 In addition to the above funding budget changes for 2017/18, additional funding of 138k is requested in 2017/18 to fund the in-year pressure on the Capitalisation of Corporate Redundancies budget. (This is in addition to the 359k requested in the January report). Transformation costs can only be classified as capital under the government directive on flexible use of capital receipts, which permits capital receipts to be used to fund transformation work, therefore they must be funded by capital receipts rather than any other source of capital funding. This necessitates a corresponding reduction in capital receipts funding in the Commercial & Investment capital programme, offset by an increase of 138k in the C&I borrowing requirement. The main service which is facing additional redundancies costs, following a restructure, had previously accumulated a departmental revenue reserve. This revenue reserve was previously incorporated into the general fund reserve, following Council policy, and it is therefore considered most appropriate to make use of the capital receipts flexibility for this transformation activity instead. General Purposes Committee is asked to approve additional prudential borrowing of 138,000 in 2017/18 to offset the increased use of capital receipts for additional capitalisation of redundancies.

23 7. BALANCE SHEET 7.1 A more detailed analysis of balance sheet health issues is included below: Measure Level of debt outstanding (owed to the council) days, m Level of debt outstanding (owed to the council) 361 days +, m Year End Target Actual as at the end of February Adult Social Care 1.6m 2.5m Sundry 0.4m 0.9m Adult Social Care 1.9m 2.6m Sundry 0.1m 0.2m Invoices paid by due date (or sooner) 97.6% 99.6% 7.2 The graph below shows net borrowing (borrowings less investments) on a month by month basis and compares the position with the previous financial year. The levels of investments at the end of February 2018 were 10.43m (excluding 3 rd party loans) and gross borrowing was m. Of this gross borrowing, it is estimated that m relates to borrowing for Invest to Save or Invest to Earn schemes, including loans we have issued to 3 rd parties in order to receive a financial return. Net Borrowing Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar The Treasury Management Strategy Statement (TMSS) sets out the plan for treasury management activities over the year. It identifies the expected levels of borrowing and investments based upon the Council s financial position and forecast capital programme. When the TMSS was set in February 2017, it was anticipated that net borrowing would reach 466m at the end of this financial year. Net borrowing at the beginning of this financial year as at 1 st April 2017 was 399m, this reduced to 366m at the end of April 2017 thus starting at a lower base than originally set out in the TMSS ( 466m). This is to be reviewed as the year progresses and more information is gathered to establish the full year final position.

24 7.4 From a strategic perspective, the Council is currently reviewing options as to the timing of any potential borrowing and also the alternative approaches around further utilising cash balances and undertaking shorter term borrowing which could potentially generate savings subject to an assessment of the interest rate risks involved. 7.5 Although there is a link between the capital programme, net borrowing and the revenue budget, the Debt Charges budget is impacted by the timing of long term borrowing decisions. These decisions are made in the context of other factors including, interest rate forecasts, forecast levels of cash reserves and the borrowing requirement for the Council over the life of the Business Plan and beyond. 7.6 The Council s cash flow profile varies considerably during the year as payrolls and payment to suppliers are made, and grants and income are received. Cash flow at the beginning of the year is typically stronger than at the end of the year as many grants are received in advance. 7.7 Further detail around the Treasury Management activities can be found in the latest Treasury Management Report ( 7.8 The Council s reserves include various earmarked reserves (held for specific purposes), as well as provisions (held for potential liabilities) and capital funding. A schedule of the Council s reserves and provisions can be found in appendix 2.

25 8. ALIGNMENT WITH CORPORATE PRIORITIES 8.1 Developing the local economy for the benefit of all There are no significant implications for this priority. 8.2 Helping people live healthy and independent lives There are no significant implications for this priority. 8.3 Supporting and protecting vulnerable people There are no significant implications for this priority. 9. SIGNIFICANT IMPLICATIONS 9.1 Resource Implications This report provides the latest resources and performance information for the Council and so has a direct impact. 9.2 Procurement/Contractual/Council Contract Procedure Rules Implications There are no significant implications within this category. 9.3 Statutory, Legal and Risk Implications There are no significant implications within this category. 9.4 Equality and Diversity Implications There are no significant implications within this category. 9.5 Engagement and Consultation Implications No public engagement or consultation is required for the purpose of this report. 9.6 Localism and Local Member Involvement There are no significant implications within this category. 9.7 Public Health Implications There are no significant implications within this category.

26 Implications Have the resource implications been cleared by Finance? Have the procurement/contractual/ Council Contract Procedure Rules implications been cleared by Finance? Has the impact on Statutory, Legal and Risk implications been cleared by LGSS Law? Have the equality and diversity implications been cleared by your Service Contact? Have any engagement and communication implications been cleared by Communications? Have any localism and Local Member involvement issues been cleared by your Service Contact? Have any Public Health implications been cleared by Public Health Officer Clearance Yes Name of Financial Officer: Chris Malyon No Name of Legal Officer: Not applicable No Name of Legal Officer: Not applicable No Name of Officer: Not applicable No Name of Officer: Not applicable No Name of Officer: Not applicable No Name of Officer: Not applicable Source Documents Location P&E Finance & Performance Report (February 18) P&C Finance & Performance Report (February 18) PH Finance & Performance Report (February 18) CS and LGSS Cambridge Office Finance & Performance Report (February 18) C&I Finance & Performance Report (February 18) Performance Management Report & Corporate Scorecard (February 18) Capital Monitoring Report (February 18) Report on Debt Outstanding (February 18) Payment Performance Report (February 18) 1 st Floor, Octagon, Shire Hall, Cambridge

27 APPENDIX 1 transfers between Services throughout the year (only virements of 1k and above (total value) are shown below) Public CS Corporate LGSS LGSS Financing P&C Health P&E Financing Services Managed C&I Op Items Opening Cash Limits as per Business Plan 237, ,682 22,803 15,542 6,500 2,702 7,746 24,377 Post BP adjustments Apprenticeship Levy City Deal budgets not reported in CCC budget -1,027 Transfer Digital Strategy budget to CS - CCR -1, ,354 Transfer Strengthening Communities budget to CS - CCR Property demerger from LGSS and rationalisation of property services Organisational structure review Transfer budget for Court of Protection team to CS Transfer surplus NHB funding from City Deal Transfer budget from reablement for In Touch maintenance Allocation of inflation to Waste budget Drug and Alcohol Treatment service transfer to PH Workforce development budget transferred to LGSS -1,361 1,361 Budget transfer per CCR Property commissioning transfer budget to P&C Dial a Ride budget to Total Transport LAC demography 2,913-2,913 Waste demography Transfer of savings LGSS to C&I Welfare benefits budget to Financial Assessments and Adult Early Help Combined Authority levy adjustment 1,327-1,327 Budget transfer to Transformation Team P&E use of earmarked reserves Catering and Cleaning services transfer to C&I Business support transfer to applications development Use of earmarked reserves for passenger transport Grants budget to P&C Supporting Community Services budget transfers Adult Learning & Skills transfer to P&C

28 Healthwatch transfer to P&C Supporting Community Services budget transfers Community Led Local Development Programme Funding transfer Trading Services budget transfers Supporting Community Services budget transfers Cambs Housing Investment Company net interest receivable transfer to C&I 1,424-1,424 ESPO dividend budget transfer to C&I Equalisation adjustment transfer from LGSS Managed to LGSS Cambridge Office Budget transfer per CCR Transfer Strengthening Communities budget Transfer insurance budgets 419 1,615-2,033 Physical Disabilities redundancy savings to CS Transfer Strengthening Communities budget Reduce flood budget ETE, approved by GPC Transfer insurance budgets Current budget 239, ,091 24,227 11,338 5, ,501 22,721 Rounding

29 APPENDIX 2 Reserves and Provisions Fund Description Balance at 31 March Movements in Balance at 28 February 2018 Forecast Balance 31 March 2018 Notes 000s 000s 000s 000s General Reserves - County Fund Balance 15,808 1,546 17,353 12,995 Service reserve balances transferred to General Fund after review - Services 1 P&C P&E 2,229-2, CS LGSS Operational subtotal 19,122-1,188 17,933 13,046 Earmarked - Specific Reserves 5 Insurance 3,269-1,605 1,664 1,664 subtotal 3,269-1,605 1,664 1,664 - Equipment Reserves 6 P&C P&E CS C&I subtotal 1, Other Earmarked Funds 10 P&C 1, PH 2, ,960 2, P&E 5, ,631 5, CS 2, ,559 2, LGSS Managed C&I Transformation Fund 19,525 2,777 22,302 19, Innovation Fund 1, subtotal 33,941 1,596 35,537 31,710 SUB TOTAL 57,465-1,415 56,051 47,240 Includes liquidated damages in respect of the Guided Busway - current balance 1.5m. Savings realised through change in MRP policy Capital Reserves - Services 18 P&C 1,827 44,467 46, P&E 7,274 38,310 45,584 5, LGSS Managed C&I 0 3,100 3, Corporate 29,782 26,855 56,636 48,524 subtotal 38, , ,614 53,768 Section 106 and Community Infrastructure Levy balances. GRAND TOTAL 96, , , ,007