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Agenda Item No.

 

 

THE VALE OF GLAMORGAN COUNCIL

 

CABINET: 17TH NOVEMBER, 2014

 

REFERENCE FROM SCRUTINY COMMITTEE (SOCIAL CARE AND HEALTH): 6TH OCTOBER, 2014

 

 

475    REVENUE AND CAPITAL MONITORING FOR THE PERIOD 1ST APRIL 2014 TO 31ST AUGUST 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 August 2014. 

 

Revenue

 

The current year end forecast for the Social Services budget was an overspend of £700k.  In addition to increased demand for services, there was pressure on the Directorate to achieve its savings targets for 2014/15 onwards.

 

A table and graph setting out the variance between profiled budget and actual expenditure to date and the projected position at year end were attached at Appendix 1 to the report. 

 

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 £900k over budget at year end.  This was due to a projected overspend on Community Care Packages of £1.1m as a result of increased demand for services, particularly for frail older clients.  This was a slight improvement on the previous month's position.  The service would strive to manage demand, not only to avoid a further increase in the overspend, but also to reduce it.  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 August 2014 income received to date was on target.  The year end projection had now been amended from a £150k under-recovery, as reported last month, to a £100k under-recovery.  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

 

Appendix 2 to the report detailed financial progress on the Capital Programme as at 31st August 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.

 

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 and were now set as £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.

 

A Committee Member requested an update in respect of the regional fostering marketing initiative that was relayed to the Committee in a previous meeting.  In response the Director of Social Services advised that a business case was being developed within the South East Wales Improvement Collaborative (SEWIC) and that he was currently the lead for this project that encompassed 10 Local Authorities and that an update report would be provided by the end of the year. 

 

Having considered the report, the Committee

 

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 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): 6th October, 2014

 

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