Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Corporate Resources) : 13th September 2011
Report of the Director of Finance ICT and Property
Revenue Monitoring for the period 1st April 2011 to 31 July 2011
Purpose of the Report
1. To advise Scrutiny Committee of the progress of revenue expenditure for the period 1st April, 2011 to 31st, July, 2011.
1. That the position with regard to the Authority’s 2011/12 Revenue Budget be noted.
2. That the Director of Social Services take the necessary action to balance the overall budget by year end.
Reasons for the Recommendations
1. That the Members are aware of the projected revenue outturn for 2011/12.
2. To achieve a balanced budget.
2. Council on the 28th February 2011 (minute no 957 and 955 respectively) approved the 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 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 a projected overspend against the Additional Learning Needs (ALN) budget of £72,000.
6. The ALN overspend is made up of £56,000 of Redundancy costs incurred as a result of the implementing the ALN staffing savings for 2011/12 and 2012/13. The balance is as a result of reduced Cymorth and Families First funding for the Cowbridge Pupil Referral Unit. The ALN budget is a volatile budget that is demand led, the position will be monitored closely throughout the year. It is possible that the projected overspend may reduce due to increased recoupment income or reduced out of county expenditure.
7. An amount has been set aside within the budget for the annual cost of financing the School Investment Strategy of £600,000. This sum will be transferred to the School Investment Strategy Reserve.
8. The cost of the School’s ER/VR scheme of £329,000 will in the first instance be funded from Education reserves. This will be repaid by participating schools over 2012/13 and 2013/14.
9. It is anticipated that actions taken by the Directorate will bring overall expenditure on Education and Schools to within the budget by year end.
10. Children and Young People's Services - It is currently projected that this budget could overspend by £765,000 by year end. This is due to the Children's Placement budget being projected to overspend by £1m at year end, offset by use of a provision of £210,000. This budget is under considerable pressure due to a large number of high cost placements. All cases will be reviewed to try to improve this position.
11. Adult Services - It is currently projected that this budget could overspend by £189,000 by year end. A gross overspending of £654,000 has arisen from the need to increase fees payable to care homes by over the 2% inflation included in the 2011/12 budget, the continuing pressure on the Community Care Packages budget and the need to achieve the 2011/12 savings targets. The gross overspend can be partly funded by a specific provision of £465,000.
12. Social Services - The overall year end position for the directorate is an estimated overspend of £954,000. It is essential that the Directorate take the necessary remedial measures in order to fund this shortfall from within the existing budgets. This is particularly compelling as the use of provisions is a one off source of funding and is not a long term solution.
13. For Other Services expenditure is anticipated to be within budget.
Resource Implications (Financial and Employment and Climate Change, if appropriate)
14. There are no implications.
Legal Implications (to Include Human Rights Implications)
15. There are no legal implications.
Crime and Disorder Implications
16. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
17. There are no equal opportunity implications.
18. 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
19. This report is for Executive decision.
Consultation (including Ward Member Consultation)
20. Each Scrutiny Committee will receive a monitoring report on their respective areas. This report does not require Ward Member consultation.
Robert Ingram (Principal Accountant) (01446 709252)
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.
Sian Davies, Director of Finance, ICT and Property