Agenda Item No.
THE VALE OF GLAMORGAN COUNCIL
CABINET: 8TH APRIL, 2013
REFERENCE FROM SCRUTINY COMMITTEE (SOCIAL CARE AND HEALTH): 11TH MARCH, 2013
“ REVENUE AND CAPITAL MONITORING FOR THE PERIOD 1ST APRIL, 2012 TO 31ST JANUARY, 2013 AND UPDATE ON THE SOCIAL SERVICES BUDGET PROGRAMME (DSS) –
Committee received a report which:
· brought to its attention the position in respect of revenue and capital expenditure for the period 1st April, 2012 to 31st January, 2013 regarding those revenue and capital budgets within the Committee's remit
· provided an update on the progress made in delivering the Social Services Budget Programme.
The current forecast for Social Services at year end was an underspend of £956,000. This was partly as a result of the savings identified for the year and anticipated to be achieved being £403,000 in excess of the actual savings required for the year, set as part of the Social Services Budget Programme. There were also other areas of the service where previous overspends had reduced and where underspends had developed as detailed below.
Children and Young Peoples Services - the predicted outturn for this service area was an overspend of £19,000 which was an improvement of £104,000. There had been a reduction of £44,000 in the overspend on the Children's Placements budget which now stood at £200,000 over, and the cost of an expensive post adoption package had been reduced by £60,000 from the value previously predicted earlier in the year following a review. There were still continuing pressures on this service, particularly in respect of accommodation costs for homeless young people.
Adult Services - the predicted outturn for this service was an underspend of £975,000 which was an improvement of £449,000. An over recovery of £212,000 from the income received under the Deferred Payments Scheme was predicted for the year. This scheme allowed for the Council to pay for the cost of residential care and take a legal charge on a client's home, allowing income to be received at a later date. It was also predicted that the income received as a contribution towards the cost of non-residential care would be over recovered by around £237,000. There was continuing pressure on the Community Care Packages budget, which was extremely volatile, and the 2012/13 fee set in respect of personal care costs for residents placed by the Council in residential and nursing homes provided by the independent sector had not yet been agreed.
Business Management and Innovation - the year end projected outturn was an underspend of £189,000. However, as this would be recharged to other areas of Social Services and had been included in the projected figures shown for the services above, it was being shown as a break-even position under this heading. The reason for the underspend was mainly due to staff vacancies being held under the Protection and Policy heading pending a review of service provision. The budget shown was a net budget after recharges had been deducted.
It was noted that the underspends from savings made in advance were short term gains as the total savings target for the whole of the Budget Programme over the four year period, had not yet been finalised. The over recovery of deferred income was a one off which did not follow a pattern and so it was difficult to predict.
Appendix 2 to the report detailed financial progress from the Capital Programme as at 31st January, 2013.
With regard to the Social Services Budget Programme Update, the Directorate was currently required to find savings totalling £8.5m by the end of 2015/16. Progress in identifying these savings had been made and the following table showed the current position. Sufficient savings had been identified to meet the targets for 2012/13 and 2013/14 but there still remained £3.9m to be identified for 2014/15 and 2015/16. In addition, Directors had been requested to formulate additional options for savings for future years.
The Social Services Directorate was committed to achieving a balanced budget. A Corporate Programme Board and Project Teams overseeing the Plan would continue to develop it further and ensure delivery and progress. Progress updates would be reported on a monthly basis as part of the overall financial monitoring report for the Directorate.
In considering the Budget Reduction Programme, in particular Appendix 4, item C6 “Reduction in Contract Spend” whereby it had been proposed that funding to third sector organisations be reduced by £60,000, it was felt that Committee should have a detailed report outlining the likely outcome of the reduction in spend.
(1) T H A T the position with regard to the 2012/13 Revenue and Capital Monitoring be noted.
(2) T H A T the progress made on the Social Services Budget Programme be endorsed and referred to Cabinet for information.
(3) T H A T the May meeting of the Committee receive a detailed report outlining the likely outcome of the reduction in Contract Spend outlined in point C6 of Appendix 4 to the report.
Reasons for recommendations
(1) That Scrutiny Members are aware of the position with regard to the 2012/13 Revenue and Capital Monitoring.
(2) That Scrutiny and Cabinet Members are aware of the progress made to date on the Social Services Budget Programme.
(3) To inform Committee.”
Attached as Appendix - Report to Scrutiny Committee (Social Care and Health): 11th March 2013