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Agenda Item No.

 

 

THE VALE OF GLAMORGAN COUNCIL

 

CABINET: 6TH OCTOBER 2014

 

REFERENCE FROM SCRUTINY COMMITTEE (SOCIAL CARE AND HEALTH): 1ST SEPTEMBER 2014

 

 

REVENUE AND CAPITAL MONITORING FOR THE PERIOD 1ST APRIL 2014 TO 31ST JULY 2014 (DSS) –

 

The Operational Manager – Accountancy presented the report, the purpose of which was to advise Members of the position in respect of revenue and capital expenditure for the period 1st April to 31st July 2014.

 

Revenue

 

The current year end forecast for the Social Services budget was an overspend of £800k.  In addition to increased demand for services, there was pressure on the Directorate to achieve its savings targets for 2014/15 onwards. 

 

Children and Young People's Services – This service was currently anticipated to outturn £200k under budget at year end.  The major issue concerning this service continued to be the pressure on the children’s placements budget.  At present, it was currently projected that the Joint Budget for Residential Placements for Looked After Children would outturn within budget at year end.  However, it still remained early in the financial year and therefore this position would need to be monitored closely as any increase in the number of children becoming looked after by the Council over the remainder of the year could have a significant impact on the budget, particularly if they required high cost residential placements.  The areas of projected underspend in the budget were currently legal expenses, adoption income and reduced expenditure as a result of the current cohort of children. 

 

Adult Services – This service was currently anticipated to outturn £1m over budget at year end.  This was due to a projected overspend on Community Care Packages of £1.2m as a result of increased demand for services, particularly for frail older clients.  The service would strive to manage demand, not only to avoid a further increase in the overspend, but also to reduce the overspend.  Whilst every effort would be made to improve this position, it could not be guaranteed that this position would not deteriorate further by year end as this budget was extremely volatile and under great pressure.  The annual deferred income budget for 2014/15 had been set at £725k and at 31st July 2014 it was £58k behind target.  It was therefore being projected that this budget would underrecover by £150k at year end and this position was included as part of the projected overspend on the Community Care packages budget.  The areas of projected underspend in the budget were currently staffing and related travel costs and premises.

 

Capital

 

Attached at Appendix 2 to the report were details of financial progress on the Capital Programme as at 31st July 2014. 

 

For all schemes where it was evident that the full year’s budget would not be spent during the year, the relevant officers were required to provide an explanation for the shortfall and this should be taken to the earliest available Cabinet meeting. 

 

Appendix 3 to the report provided non-financial information on capital construction schemes. 

 

Social Services Budget Programme Update

 

On 5th March 2014, Council approved the savings targets for 2014/15 and the initial savings targets for 2015/16 and 2016/17. 

 

As part of the Medium Term Financial Plan, approved by Cabinet on 11th August 2014, it was agreed that the service remodelling savings, included in 2015/16 and 2016/17 would be rephased.  These savings were to be found through collaborative working and it was considered that a longer time frame would be required for these savings to materialise in cash terms and therefore the current savings target of £475k in 2015/16 and £495k in 2016/17 were to be re-profiled to £320k in 2017/18, £320k in 2018/19 and £330k in 2019/20.

 

The Directorate was currently required to find savings totalling £3.97m by the end of 2019/20.  The surplus shown was as a result of the foster carer recruitment project and could be used to mitigate any additional savings to be found in future years.

 

The following table shows the approved savings targets and the savings identified by year.  It includes the £293k identified in 2012/13 in excess of the saving target for that year.

 

Year

Savings Required

£000

Savings Identified

£000

In Year Surplus/ (Shortfall)

£000

Cumulative Surplus/   (Shortfall)

£000

Previously Identified Savings

 

293

293

293

2014/15

713

454

(259)

34

2015/16

1,125

1,201

76

110

2016/17

1,162

1,238

76

186

2017/18

320

320

0

186

2018/19

320

320

0

186

2019/20

330

330

0

186

TOTAL

3,970

4,156

 

 

 

Appendix 4 to the report detailed the latest progress for each savings project currently identified. 

 

Specific to the projected overspend within Adult Services, the Head of Adult Services advised the Committee that it was of some concern to be in this position at this current stage of the financial year.  There was a need to fully evaluate and understand the level of risk facing the service.  Budgetary pressures identified within Quarters 1 and 2 were similar to previous years and it had been identified that there was increased demand within older people’s services and for young people transitioning from Children’s to Adult Services.  There was a need for further detailed analysis of the demand for services, similarly to that which had been carried out previously.  Aspects which affected the budget included the £55 cap for the charging of services, the reorganisation within the Health Service and the changes by Health to continuing health care guidance.

 

A Committee Member enquired if there was any way to get the budget plans back on track.  In response the Head of Adult Services advised that this was a difficult undertaking but there was a need to review whether the service had over-provided care.  In response to a query regarding the arrangements regarding contracts for domiciliary care, the Committee was advised this would move away from spot purchase for domiciliary care support for adults in the community, the savings being realised in 2015/16. 

 

RECOMMENDED –

 

(1)       T H A T the position with regard to the 2014/15 revenue and capital monitoring be noted.

 

(2)       T H A T the progress made in delivering the Social Services Budget Programme be noted and referred to Cabinet for information.

 

Reasons for recommendations

 

(1)       That Members are aware of the position with regard to the 2014/15 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.

 

 

 

 

 

Attached as Appendix – Report to Scrutiny Committee (Social Care and Health): 1st September 2014

 

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