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Agenda Item No. 6

 

The Vale of Glamorgan Council

 

Healthy Living and Social Care Scrutiny Committee : 18th July 2016

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April to 31st May 2016

 

Purpose of the Report

  1. To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April to 31st May 2016 regarding those revenue and capital budgets which form this Committee's remit.

Recommendations

It is recommended that:-

  1. The position with regard to the 2016/17 revenue and capital monitoring is noted.
  2. The progress made in delivering the Social Services Budget Programme is noted and be referred to Cabinet for information.

Reasons for the Recommendations

  1. That members are aware of the position with regard to the 2016/17 revenue and capital monitoring relevant to this scrutiny committee.  
  2. That members are aware of the progress made to date on the Social Services Budget Programme.

Background

  1. Council on the 2nd March 2016 (minute no 885 and 884 respectively) approved the Revenue and Capital Budgets for 2016/17. Reports monitoring expenditure are brought to this committee on a regular basis.
  2. In setting the Social Services budget for 2016/17, the use of £970k from the Social Services Fund was approved.
  3. Following changes to the remit of Scrutiny Committees, Leisure, Parks, Sport and Play budgets are now included in this report.

Relevant Issues and Options

Social Services Revenue

  1. As it is still early in the financial year, the forecast for Social Services is shown as a balanced budget. However, there will be great pressure on this service in the coming year and this position may not be achieved.
  2. A table and graph setting out the variance between profiled budget and actual expenditure to date and the projected position at year end are attached at Appendix 1.
  3. Children and Young People Services - The major issue concerning this service for the coming year will be the continued pressure on the children's placements budget.  Work continues to ensure that children are placed in the most appropriate and cost effective placements. However, it should be noted that due to the potential high cost of each placement, the outturn position could fluctuate with a change in the number of looked after children. This budget will be closely monitored during the year.
  4. Adult Services - The major issue concerning this service for the coming year will continue to be the pressure on the Community Care Packages budget. This budget is extremely volatile and is influenced by legislative changes such as the National Living Wage and the Social Services and Wellbeing (Wales) Act 2014, which both came into force in April 2016. It is considered that this budget will overspend by year end but, at this early stage of the year, the level is difficult to predict. Final negotiations regarding fee levels have yet to be concluded with some service providers but proposed increases are already above the level of inflation provided for within the budget. The service also continues to be affected by the pressures of continued demographic growth and the Community Care Packages budget will have to achieve further savings this year of £300k. Further details regarding the potential overspend will be assessed and provided to Committee in the next monitoring report. The service will strive to manage growing demand and some of these initiatives may be funded via regional grants in the current financial year. However, the level of grant funding for the year has yet to be fully determined and it is not necessarily guaranteed on an ongoing basis. Committee will be provided with further details as they become clearer through the year.

Leisure Services Revenue

  1. Leisure Services - It is early in the financial year and it is projected that this service will outturn within budget at year end.

Savings Programme

  1. The Directorate is currently required to find savings totalling £2.257m by the end of 2019/20 and this target is analysed by year in the following table. The surplus shown and the savings brought forward figures are as a result of the foster carer recruitment project, which is being developed in addition to the required savings targets. This surplus can be used to mitigate any increase in savings to be found in future years.

Year

Savings Required

£000

Savings Identified

£000

In Year Surplus/ (Shortfall)

£000

Cumulative Surplus/ (Shortfall)

£000

Savings Brought Forward

 

110

110

110

2016/17

1,002

1,078

76

186

2017/18

605

605

0

186

2018/19

320

320

0

186

2019/20

330

330

0

186

TOTAL

2,257

2,443

   
         
  1. Appendix 2 provides an update on the individual areas of saving within the Social Services Budget Programme
  2. Within Adult Services, there is £100k of the full year saving generated from the Hafod homes transfer to offset against the £300k saving for Residential Services shown at A6. Currently, there are no other formalised plans in place to find the remaining £200k of this saving. Further consideration will have to be given to the way in which this saving can be fully achieved during the year. With regard to the Care Package Budget Reduction at A3, while there is significant pressure on this budget, schemes have been put in place to deliver savings in this area by transferring domiciliary care clients to direct payments, by putting in place additional reablement capacity and by establishing a review team.
  3. In order to respond to the level of savings required as a result of the projected reductions in funding from Welsh Government, the Council has instigated its Reshaping Services change programme. Cabinet acknowledged that the Social Services Directorate already has two major initiatives underway - the Collaborative Working Programme and the Budget Programme. These programmes already contain projects which are progressing the opportunities identified as part of the Reshaping Services Programme. Included in Appendix 2, the Reshaping Services logo has been shown against specific projects, which have a specific alignment with the objectives of the Reshaping Services strategy. The whole of the Social Services Budget Programme reports into the Reshaping Services governance arrangements.
  4. The Social Services Directorate remains committed to achieving a balanced budget. The corporate programme board and project teams overseeing the plan will continue to monitor and ensure its delivery. As in previous years, ongoing progress updates will to be reported to Committee as part of the overall financial monitoring report for the Directorate.
  5. Appendix 3 to the report details the savings required to be achieved this year in Leisure Services.

Capital

  1. Appendix 4 details financial progress on the Capital Programme as at 31st May 2016.
  2. Members should be aware that Appendix 4 does not include requests for unspent committed expenditure to be slipped from 2015/16 into 2016/17. A request for this slippage will be included in the Closure of Accounts report to be presented Cabinet.
  3. Cemetery Approach - Cabinet on 15th June 2015 approved this £500k scheme, funded by £250k from the Council and the other £250k from a contribution to be made by Barry Town Council. The Additional Highways/Environmental Improvement scheme is not fully committed and it has been requested that £100k is vired to this scheme to allow for new road resurfacing to be undertaken as part of the works. During 2015/16, expenditure of £45k was incurred on this scheme therefore the 2016/17 budget will be £555k following the virement.
  4. Appendix 5 provides non-financial information on capital construction schemes. From this appendix, it can be seen that most of the previous year's scheme have now commenced. Start dates have also been provided for new schemes for this financial year and these will be monitoring closely to identify if capital schemes start to slip and to identify if further action needs to be taken.

Resource Implications (Financial and Employment)

  1. As detailed in the body of the report. Changes in future service provision may have an impact upon staffing levels and due consideration will be given to the Council's employment policies and procedures.

Sustainability and Climate Change Implications

  1. There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

  1. There are no legal implications.

Crime and Disorder Implications

  1. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

  1. There are no equal opportunity implications.

Corporate/Service Objectives

  1. Effective monitoring assists in the provision of accurate and timely information to officers and members and, in particular, allows services to better manage their resources.

Policy Framework and Budget

  1. The report is in accordance with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

  1. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.

Background Papers

None

Contact Officer

Carolyn Michael (Operational Manager - Accountancy) (01446 709778)

Officers Consulted

Director of Social Services

Responsible Officer

Phil Evans, Director of Social Services