Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Corporate Resources): 16th July 2013
Report of the Managing Director
Revenue Monitoring for the period 1st April 2013 to 31st May 2013
Purpose of the Report
1. To advise Scrutiny Committee of the progress of revenue expenditure for the period 1st April, 2013 to 31st May, 2013.
1. That the position with regard to the Authority’s 2013/14 Revenue Budget be noted.
Reason for the Recommendation
1. That the members are aware of the projected revenue outturn for 2013/14
2. Council on the 6th March 2013 (minute no 943 and 941 respectively) approved the Revenue Budget and Housing Revenue Account budget for 2013/14. 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 2013/14 Revenue Budget is shown in comparison with the Revenue Budget at Appendix '1'. The forecast is for the Council to have a balanced Revenue Budget.
4. The forecast is for an estimated balanced budget on the Housing Revenue Account.
Learning and Skills
5. Overall, the Education Budget is projected to balance as at the end of March 2014. Any savings identified between now and the end of the year will be available to re-direct into the School Investment Strategy or other reserves.
6. Access and Inclusion - While the budget is currently projected to outturn on target, a major ongoing issue is the continued pressure to manage the children’s placements budget. Cabinet on 17th June 2013 approved the proposal to set up a jointly funded budget for Residential Placements for Looked After Children. The costs incurred are currently funded by Education and Social Services, with contributions from Cardiff & Vale University Health Board (UHB) where Continuing Health Care is required. The process for determining the allocation of costs to each funder can be difficult and time consuming, so it was felt that a joint budget would be a more efficient and effective means of financial management. The budget for 2013/14 has been set at £3.150M, with a £2.830M (90%) contribution from Social Services and a £320k transfer from Education (10%). UHB contributions, via Continuing Health Care arrangements, will continue unchanged. The Access and Inclusion budget, shown in Appendix 1, includes a virement of £320k to reflect Education's contribution to the new jointly funded children’s placements budget. The total budget sits within Social Services. As previously stated, there will be great pressure on this budget as the year progresses; however, the current projected year end position for the joint budget is a breakeven position.
7. Provision has been made 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. Education is projecting to transfer £176k to reserves as part of the Voluntary Early Retirement and Redundancy scheme. This is made up of £273k received from schools to repay arrangements made in previous years and £97k required to finance new arrangements under the scheme.
9. Schools - The delegated budget relating to schools is expected to balance as any under/over spend is carried forward by schools
10. Libraries - There is currently a £4k favourable variance against the profiled budget and the service is anticipating to outturn on target at year end.
11. Lifelong Learning - The service is currently breaking even against the profiled budget and is anticipated to outturn on target at year end.
12. Youth Service - The service is currently breaking even against the profiled budget and is anticipated to outturn on target at year end.
13. Catering - There is currently a £8k favourable variance against the profiled budget. This service is anticipated to outturn on target, however the service can be affected by external factors such as snow closure and the requirement to meet WG nutritional guidelines. The budget will be closely monitored and any variation reported to a future meeting.
14. As it is very early in the financial year, the current forecast for Social Services is a balanced budget. In addition to increased demand for services, there is pressure on the Directorate to achieve its savings targets for 2013/14 onwards.
15. Children and Young People's Services - The major ongoing issue concerning this service is the continued pressure to manage the children’s placements budget. While the number of Looked After Children has been decreasing, the children have increasing complex needs and therefore can result in high cost placements being required. As previously stated, there will be great pressure on this budget as the year progresses, however, the current projected year end position for the joint budget is a breakeven position.
16. Adult Services - The major issue concerning this service is the continuing pressure on Community Care Packages, which is an extremely volatile budget. At present, the projected year end position is an overspend of £995k however this includes the savings target for the year of £685k. Work is ongoing to ensure that the savings are implemented and the shortfall is addressed. There is a projected increase in income received under the Deferred Payment Scheme which can partly offset this position. It is, therefore, considered that the eventual year end position will be a balanced budget.
Visible Services and Housing Services
17. The current overall forecast is for a balanced budget.
18. Highways Maintenance & Engineering Design & Procurement - There is currently a £9k favourable variance to the profiled budget. This is mainly due to vacant posts. The original budget for 2013/14 takes account of the savings required. The budget will be monitored closely to ensure these savings are achieved. The overall budget is currently expected to outturn on target.
19. Waste Management - There is currently a £37k favourable variance to the profiled budget. Again the saving is mainly linked to vacant posts within the service. The original budget for 2013/14 takes account of the savings required and good progress has already been made to achieve this. The budget is currently expected to out-turn on target.
20. Grounds Maintenance - There is currently a £11k favourable variance to the profiled budget due to lower than budgeted staff costs. The original budget for 2013/14 takes account of the savings required. The budget is currently expected to out-turn on target.
21. Support – There is currently a favourable variance of £18k to the profiled budget. This budget is to be held for any cost pressures within Visible Services that may arise throughout the financial year. Currently this budget is also projected to out-turn on target.
22. General Fund Housing - The Housing General Fund is currently showing a favourable variance of £62k. There are underspends of £17k on salaries and £45k on homeless emergency bed and breakfast placements. It is anticipated that the services will outturn on target.
23. Public Sector Housing (HRA) - The Housing Revenue account is currently showing a favourable variance of £167k. There are adverse variances on both income due to voids of £30k and Housing Responsive Repairs of £32k. These adverse variances are offset by favourable variance on salaries of £60k due to vacancies in the housing teams, Ty Iolo running costs of £18k, council temporary accommodation of £17k, Incentive to Move schemes of £16k, communal areas of £46k, Council Tax of £9k and other supplies and services of £63k. It is anticipated that the service will outturn on target.
24. The current overall forecast is for a balanced budget.
25. Planning and Transportation - There is currently a favourable variance of £74k to the profiled budget. This is predominately due to income for Highway Development S38 and S278 fees now being in advance of the profiled estimate. The budget is currently expected to out-turn on target.
26. Leisure - There is currently an adverse variance of £5k to the profiled budget. The budget is currently expected to out-turn on target, however there are continued pressures on the service which will be closely monitored.
27. Economic Development - There is currently a favourable variance of £5k to profiled budget. The budget is currently expected to out-turn on target.
Resource Implications (Financial and Employment)
28. As detailed in the body of the report
Sustainability and Climate Change Implications
29. As detailed in the body of the report
Legal Implications (to Include Human Rights Implications)
30. There are no legal implications
Crime and Disorder Implications
31. There are no crime and disorder implications
Equal Opportunities Implications (to include Welsh Language issues)
32. There are no equal opportunity implications
33. 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
34. This report is for executive decision by the Cabinet
Background Papers - None
Robert Ingram (Principal Accountant) (01446 709252)
Chief Learning and Skills officer, Directors of Social Services, Visible Services and Housing, Development Services and Resources.
Sian Davies Managing Director