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Agenda Item No. 5

 

The Vale of Glamorgan Council

 

Healthy Living and Social Care Scrutiny Committee: 12th September 2016

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April to 31st July 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 July 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. It is currently projected that the Social Services budget will outturn with an adverse variance of around £1 million.
  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 - It is projected that the Community Care Package budget could outturn with a variance of up to £1 million by year end. This budget is extremely volatile and has been adversely affected this year by the increase in the cost of packages commissioned as a result of the introduction of the National Living Wage, the continued pressure of the budget from demographic growth and clients having increasingly complex needs. The final outturn is, however, difficult to predict. Final negotiations regarding fee levels are being concluded with service providers but proposed increases are already above the level of inflation provided for within the budget.
  5. The annual deferred income budget for 2016/17 has been set at £747k and, as at 31st July 2016, income received to date was £145k over-recovered. It is currently being projected that this budget will outturn at £100k under budget by year-end and this favourable variance is included as part of the projected overspend for care packages.
  6. The service will strive to manage growing demand and try to mitigate this position and some initiatives may be funded via regional grants in the current financial year. It is proposed that up to £1 million is used this year from the Social Services Legislative Changes fund to cover the shortfall. Committee will be provided with further details during the course of the year.

Leisure Services Revenue

  1. Leisure Services - There is currently an adverse variance of £41k to the profiled budgets as a result of high repair costs for vehicles during the start of the Grounds Maintenance season. It is however anticipated that this will reduce over the winter months and therefore it is currently projected that the overall budget will outturn on target.

Savings Programme

  1. Appendix 2 to this report shows the projected outturn this year for the savings targets for this Committee.
  2. Within Adult Services, £100k of the full year saving generated from the Hafod homes transfer has been offset against the £300k saving for Residential Services. Currently, there are no other approved plans in place to find the remaining £200k of this saving. Further consideration will have to be given to the way in which the saving can be fully achieved during the year. With regard to the Care Package Budget Reduction, 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. Included as part of the Leisure Services target is a saving relating to transportation costs. As stated, repair costs to date have been higher than planned and therefore this saving may not be achieved in full. The situation will be monitored closely for the remainder of the year.
  4. In relation to the Social Services Programme, 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 3 provides an update on the individual areas of saving within the Social Services Budget Programme
  2. 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 3, 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.
  3. 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.

Capital

  1. Appendix 4 details financial progress on the Capital Programme as at 31st July 2016.
  2. A new capital scheme to the value of £219k has been approved from the Intermediate Care Fund (ICF) for two 'step-down' units as Longmeadow Court. It has been requested that the capital programme is increase accordingly.
  3. Parks and Grounds Asset Renewal - The Visible Services Asset Renewal budget was agreed by Cabinet on 22nd February 2016, minute number C3080.  Recommendation 3 stated "THAT delegated authority be granted to the Managing Director and the Head of Finance, in consultation with the Cabinet Member responsible for Finance, to make additions, deletions or transfers to or from the 2016/17 to 2020/21 Asset Renewal budgets as appropriate."  This delegated authority has been used to allocate the budget and £150k has been allocated to Parks and Grounds Maintenance.
  4. Asset Renewal - It has been requested that £50k is transferred from the Visible Services Reserve in order to fund works at the Salisbury Road Play Area, which are in line with the project brief and community expectations. This funding was set aside as part of the closing report in 2015/16. In addition, delegated authority has been used to apportion a further £20k for this scheme from the Barry Regeneration Project Development Fund as well as allocating £1k for the Alexandra Gardens Play Area.
  5. 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 and some are complete. 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)

Officers Consulted

Director of Social Services

Responsible Officer

Phil Evans, Director of Social Services