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Agenda Item No 6

The Vale of Glamorgan Council

 

Healthy Living and Social Care Scrutiny Committee: 16th January 2017

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April to 30th November 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 30th November 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. The projected outturn for the Social Services Directorate is an adverse variance of £600k when compared to the amended budget.
  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's Services - It is projected that this service will outturn with an underspend of £400k.  Work has been ongoing to ensure that children are placed in the most appropriate and cost effective placements.  This has included our success in significantly reducing the number of children placed in residential care, from an average of 23 in 2014/15 to a current average of 10.  It should however be noted that the number of looked after children has increased during the course of the year, placing considerable pressure on our in-house fostering resources and increasing our reliance on independent fostering placements.  Given this pressure and the complexity of some of these children, the outturn position could fluctuate with a change in the number of looked after children and/or their need for independent fostering or residential placements.
  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 on the budget from demographic growth and clients having increasingly complex needs. The final outturn is, however, difficult to predict. The increase in fee levels is 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 30th November 2016, income received to date was £211k over-recovered. It is therefore being projected that this budget will outturn at £100k over-recovered 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 any shortfall at year end is funded 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 - It is anticipated that this service will achieve a breakeven position at year end. Employee costs within Grounds Maintenance are projected to be under budget due to vacant posts, however, this has been offset by increased supplies and services costs. Transport costs are projected to be £80k over budget due to high repair costs early in the financial year, however, Grounds Maintenance are currently reviewing the level of vehicles they require and have identified those that are surplus to requirements.

Savings Programme

  1. 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 2 provides an update on the individual areas of saving within the Social Services Budget Programme.
  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. 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.

Capital

  1. Appendix 3 details financial progress on the Capital Programme as at 30th November 2016.
  2. Community Centres Works - A net contribution of £7.5k was received from a Community Centre in order to facilitate works to a boiler system and it will therefore be requested that the capital programme is increased to reflect this.
  3. Leisure Centre - The Leisure centre floor replacement and changing room works are expected to commence in March 2016 and therefore, it will be requested that £134k is brought forward from the allocated 2017/18 capital programme budget of £1,912k to fund flooring works (£70k) and Changing Room works at Penarth Leisure Centre (£40k) and Barry Leisure Centre (£24k).
  4. Wordsworth Park - Local residents, school pupils and their parents, and others with an interest in the future of Wordsworth Park, were invited to have their say on the proposed improvements. A consultation ran from Monday 19 September until Monday 31 October 2016. The consultation results have been considered, and the Council's Principal Landscape Architect is now preparing a brief based upon the consultation responses and will shortly be undertaking a tendering exercise. It is likely that the chosen contractor will be appointed early next financial year. Improvements to the park will be implemented prior to September 2017 and therefore slippage of £70k will be requested.
  5. Parks and Grounds Maintenance Asset Renewal - A virement of £18k will be requested from a resulting underspend on the Barry Island Community Centre roof renewal scheme which is part of the Parks and Grounds Asset Renewal budget to the Community Centres Works scheme. This is in order to progress further Community Centre asset renewal projects in 2016/17.
  6. Parks and Ground Maintenance Asset Renewal - Following a review of expenditure within the asset renewal budget for Parks and Ground Maintenance, it is considered that expenditure on licences should be treated as revenue expenditure rather than capital. The Capital Programme will therefore be reduced by £12k and the costs be reported through revenue.
  7. Cemetery Approach - Slippage of £140k into 2017/18 will be requested for the community building element of this scheme, due to a minor delay in agreeing the fit out requirements and the need to tender this element separately.
  8. Appendix 4 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) (01446 709778)

Officers Consulted

Director of Social Services

Responsible Officer

Phil Evans, Director of Social Services

 

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