Agenda Item No.
THE VALE OF GLAMORGAN COUNCIL
CABINET: 13TH JANUARY, 2014
REFERENCE FROM SCRUTINY COMMITTEE (SOCIAL CARE AND HEALTH): 7TH OCTOBER, 2013
â€œ458 REVENUE AND CAPITAL MONITORING FOR THE PERIOD 1ST APRIL, 2013 TO 31ST AUGUST, 2013 (DSS) –
Committee received a report which advised of the position in respect of revenue and capital expenditure for the period 1st April, 2013 to 31st August, 2013 regarding those revenue and capital budgets which formed this Committee's remit. The Committee also received an update on the progress made in delivering the Social Services Budget Programme.
The current forecast was for an overspend at year end of £876,000. This was following the deduction of savings identified for the year of £2.04m.
Children and Young People Services - the major issue was the need to manage continued pressure on the Children's Placements Budget. The current projected outturn for the jointly funded Residential Placements Budget for Looked After Children was an overspend of £353,000. This was an increase of £121,000 from July's position, mainly due to one young person moving into a residential placement due to an adoption breakdown. It was currently anticipated that this level of overspend could be offset by underspends elsewhere within Children's Services and therefore, a break even position was anticipated.
Adult Services - the major issue was the continuing pressure on Community Care packages, the Division's most volatile budget and the one most dependent upon levels of service demand which were not within the Council's direct control. At present, the projected year end position was an overspend of £1.635m but this was after the reduction in budget to accommodate the savings target for the year of £685,000. A decision on the allocation of additional funding identified by Welsh Government for the First Steps initiative, which resulted in the introduction of the £50 cap for non-residential services had not yet been received but any grant received would reduce the overspend. Actions were being taken to review all processes and to address the shortfall. There were potential underspends elsewhere in Adult Services of around £466,000 which could be used to offset this position, resulting in an overall projected overspend at year end of £1,169,000.
Areas of savings had been identified this year which were £293,000 above the required target. This could be used to offset the overspend on Adult Services, resulting in a projected overspend for Social Services at year end of £876,000.
Scrutiny Committee (Corporate Resources) had requested a report on the current financial position and the steps which could be taken to mitigate further expenditure. Work was currently being undertaken to prepare this report and the final version would be brought to this Committee once complete.
Appendix 2 to the report detailed financial progress on the Capital Programme as of 31st August, 2013.
With regard to the Social Services Budget Programme Update, the Directorate was currently required to find savings totalling £6.0m by the end of 2016/17. Savings totalling £6.189m had currently been identified and the surplus would be used to mitigate any additional savings to be found in future years.
The Social Services Directorate was committed to achieving a balanced budget. The 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 as part of the overall financial monitoring report for the Directorate.
In referring to the reference to the Hen Goleg Boiler Replacement and Heating works as itemised on Appendix 3 to the report, Members asked for an explanation for the delay in commencing the scheme and were advised that there had been issues with the boiler replacement in that asbestos had been found. A solution to the funding issue was being considered.
Member referred to references within the report to areas of savings having been identified this year which were £293,000 above the required target and felt that Committee should be given details of where these savings originated.
Members noted that Scrutiny Committee (Corporate Resources) had requested a report on the current financial position and the steps which could be taken to mitigate further expenditure and requested that a copy of the report be brought before this Committee also.
In referring to the Medium Term Financial Plan, Members enquired as to the extent that discussions had taken place to achieve the requirements of the Plan and were advised that the Medium Term Financial Plan required a total of some £40m savings to be made across the Council's budget over the ensuing years. The Directorate was making every effort to achieve the required level of savings and the Medium Term Financial Plan required additional savings over and above those that had already been identified to date.
Achieving a balanced budget had been a managed process to date and efforts would have to be made to ensure that it continued that way.
(1) T H A T the position with regard to the 2013/14 Revenue and Capital Monitoring be noted.
(2) T H A T the progress made on the Social Services Budget Programme be noted and referred to Cabinet for information.
(3) T H A T future reports before this Committee provide details of underspends against the approved budget.
Reasons for recommendations
(1) That Members are aware of the position with regard to the 2013/14 Revenue and Capital Monitoring relevant to the Scrutiny Committee.
(2) That Scrutiny and Cabinet Members are aware of the progress made to date on the Social Services Budget Programme.
(3) For the information of the Members of the Scrutiny Committee.â€
Attached as Appendix – Report to Scrutiny Committee (Social Care and Health): 7th October, 2013