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Agenda Item No

 

 

The Vale of Glamorgan Council

 

Cabinet Meeting 18th January 2012

 

Report of the Leader

 

Revenue Monitoring for the period 1st April 2011 to 30th November 2011

 

Purpose of the Report

1.             To advise Cabinet of the progress of revenue expenditure for the period 1st April, 2011 to 30th, November, 2011.

Recommendations

1.             That the position with regard to the Authority’s 2011/12 amended Revenue Budget be noted. 

2.             The Director of Social Services take the necessary action to bring expenditure in line with the base budget.                                                                                                          

Reasons for the Recommendations

1.             That the members are aware of the projected revenue outturn for 2011/12.

2.             To bring Social Services expenditure in line with the base budget

Background

2.             Cabinet on the 16th November 2011 (minute no C1511 and C1512 respectively) approved the amended Revenue Budget and Housing Revenue Account budget for 2011/12. The Budget information is subdivided by cabinet members’ portfolio within each Directorate. Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

3.             The projected out turn for the 2011/12 Revenue Budget is shown in comparison with the amended Revenue Budget at Appendix ‘1'. The forecast is for a balanced Council Revenue Budget.

4.             The forecast is for an estimated balanced budget on the Housing Revenue Account.

5.             Education and Schools – there is an anticipated net overspend of £66k on this service attributable to Additional Learning needs, which will be met from Education reserves. In addition there is a projected overspend of £54k on Mainstream Education Transport shown against the Planning and Transportation budget (who manage the budget) which will be met by the Education service (as shown on appendix 1)

6.             Children and Young Peoples Services - The projected overspend position for this service is £1.26m.  An analysis of this position is shown in the table below.  This overspend can be offset by a Children’s Services provision of £210k resulting in £1.05m of savings to be found by the service this financial year.

Area Of Spend

£000

Note

Childrens Placement

1,119

There is an increased number of high cost placements

Foster Carers

157

Increased payments to Foster Carers due to the introduction of the National Minimum Allowance for Foster Carers by the Welsh Government, which came into force from April 2011

Reduced Recharge from Service Strategy

(50)

An underspend on Service Strategy will result in a reduced recharge to Childrens Services

Overspends within Childrens Services

35

 

GROSS DEFICIT

1,261

 

Use of Provisions

(210)

 

NET DEFICIT

1,051

 

 

 

 

7.             Adult Services - The projected overspend position for this service is £2.56m.  An analysis of this position is shown in the table below.  This overspend can be offset by an Adult Services provision of £465k, resulting in £2.1m of savings to be found by the service this financial year.

Area Of Spend

£000

Note

Care Home Fees

506

An increase in fees required to pay Care Homes over and above the 2% inflation already included in the budget

2011/12 Savings

447

Savings identified for the year but not being achieved (see table below)

Community Care Packages

1,875

As a result of increased demand.

First Steps

634

Due to the introduction by the Welsh Government of the First Steps Improvement Package Initiative which introduced a £50 per week charge cap for non residential services.  This is the difference between the loss calculated to the authority from the sample week (£1.007m) and the transfer into the RSG (£373k)

Temporary underspends within Adult Services budget

 

(487)

This includes staff vacancies which will be filled or used as cost savings in 2012/13 and the estimated April 2011 pay award for employees earning less than £21,000 which did not materialise 

Continuous underspends within Adult Services budget

(310)

This includes staff vacancies and other underspends that can be retained

Reduced Recharge from Service Strategy

(103)

An underspend on Service Strategy will result in a reduced recharge to Adults Services

GROSS DEFICIT

2,562

 

Use of Provisions

(465)

 

NET DEFICIT

2,097

 

 

8.             Service Strategy – This budget is anticipated to outturn on target.

9.             Some of the Social Services savings approved for 2011/12 will not be achieved this year.  The table below identifies the original and projected value of these savings that will not be achieved.

Description

Target Saving

 £000

Projected Saving Not Achieved

£000

Comments

Review & reorganise Adults Services senior management and professional posts

135

77

OM left at end of November 2011.  Hospital Social Work post will be vacated from January 2012

Reconfigure staffing structure in residential homes

180

121

Full reorganisation has not yet been implemented

Stop transport to day services for clients who are in receipt of DLA mobility allowance

130

130

Welsh Government will not allow this change

Relocate day services from Woodlands to Gardenhurst

55

41

Move will take place at the beginning of 2012

Review high cost Learning Disability packages & renegotiate fees

78

78

Current packages are already at a competitive rate

TOTAL

578

447

 

 

10.        Overall, it is projected that the Social Services budget as a whole could overspend by £3.8m this year.  There are provisions available to offset this position to the value of £675k resulting in a net overspend of £3.1m.  There are considerable pressures on both Children's and Adults Services from increasing demand, new requirements from the Welsh Government for which adequate funding has not been received and the need to achieve budget savings.  However, it should be noted that the overspend on Community Care packages could increase further by year end if the value of additional packages approved exceed the value of packages that reduce. 

11.        The Director of Social Services needs to take immediate action to curtail overspending within this Directorate.  The Directorate is committed to reducing this overspend and a Budget Action Recovery Plan has been presented to Cabinet.  It is essential that the Budget Action Recovery Plan is refined so that it demonstrates a viable plan to bring spending back to the base budget.  A multi-disciplinary project team and project board have been set up to further develop the plan and oversee and facilitate its delivery. Regular progress reports will be presented to Cabinet.

12.        Planning and Transportation – there is an anticipated overspend on the Mainstream Education Transport budget (managed by this division) of £54k which will be met from the Education budget. There continues to be cost pressures on the service but it is anticipated that any over spends will be met from existing estimates.

13.        Economic Development and Leisure – the anticipated overspend on the service as previously reported of £366k has increased to £420k due to continued cost pressures on the Leisure Centre budget. The additional overspend of £54k will be met from savings from the Visible Services budget.

14.        For Other Services, out turn will be as previously reported

Resource Implications (Financial and Employment and Climate Change, if appropriate)

15.        As detailed in the body of the report

Legal Implications (to Include Human Rights Implications)

16.        There are no legal implications

Crime and Disorder Implications

17.        There are no crime and disorder implications

Equal Opportunities Implications (to include Welsh Language issues)

18.        There are no equal opportunity implications

Corporate/Service Objectives

19.        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

20.        This report is for executive decision

Consultation (including Ward Member Consultation)

21.        Each Scrutiny Committee will receive a monitoring report on their respective areas. This report does not require Ward Member consultation.

Relevant Scrutiny Committee

22.        All

Background Papers

None

 

Contact Officer

Robert Ingram (Principal Accountant) (01446 709252)

 

Officers Consulted

The Directors of Learning and Development, Environment and Economic Regeneration and Legal, Public Protection and Housing Services and Social Services have been consulted on the contents of this report

 

Responsible Officer:

SIAN DAVIES DIRECTOR OF FINANCE, ICT AND PROPERTY