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Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health) 16th January 2012

 

Report from the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April 2011 to 30th November 2011

 

Purpose of the Report

1.             To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April 2011 to 30th November 2011 regarding those revenue and capital budgets, which form this Committee’s remit.

Recommendations

It is recommended that:

1.             The Scrutiny Committee note the position with regard to the 2011/12 revenue and capital monitoring.

2.             The Director of Social Services take the necessary action to bring expenditure in line with the base budget.

Reasons for the Recommendations

1.             That Members are aware of the position with regard to the 2011/12 revenue and capital monitoring relevant to this scrutiny committee.

2.             To bring Social Services expenditure in line with the base budget.

Background

2.             On 16th November 2011, Cabinet approved the amended revenue budget for 2011/12 (min no c1511).  Reports monitoring expenditure are brought to this committee on a regular basis.

Relevant Issues and Options

3.             The Revenue Budget and projected outturn for 2011/2012 are shown at Appendix 1.

4.             Children and Young People's Services - The projected overspend position for this service is £1.26m.  An analysis of this position is shown in the table below.  This overspend can be offset by a Children’s Services provision of £210k resulting in £1.05m of savings to be found by the service this financial year.

Area Of Spend

£000

Note

Childrens Placement

1,119

There is an increased number of high cost placements

Foster Carers

157

Increased payments to Foster Carers due to the introduction of the National Minimum Allowance for Foster Carers by the Welsh Government, which came into force from April 2011

Reduced Recharge from Service Strategy

(50)

An underspend on Service Strategy will result in a reduced recharge to Childrens Services

Overspends within Childrens Services

35

 

GROSS DEFICIT

1,261

 

Use of Provisions

(210)

 

NET DEFICIT

1,051

 

 

5.             Adult Services - The projected overspend position for this service is £2.56m.  An analysis of this position is shown in the table below.  This overspend can be offset by an Adult Services provision of £465k, resulting in £2.1m of savings to be found by the service this financial year.

Area Of Spend

£000

Note

Care Home Fees

506

An increase in fees required to pay Care Homes over and above the 2% inflation already included in the budget

2011/12 Savings

447

Savings identified for the year but not being achieved (see table below)

Community Care Packages

1,875

As a result of increased demand.

First Steps

634

Due to the introduction by the Welsh Government of the First Steps Improvement Package Initiative which introduced a £50 per week charge cap for non residential services.  This is the difference between the loss calculated to the authority from the sample week (£1.007m) and the transfer into the RSG (£373k)

Temporary underspends within Adult Services budget

 

(487)

This includes staff vacancies which will be filled or used as cost savings in 2012/13 and the estimated April 2011 pay award for employees earning less than £21,000 which did not materialise 

Continuous underspends within Adult Services budget

(310)

This includes staff vacancies and other underspends that can be retained

Reduced Recharge from Service Strategy

(103)

An underspend on Service Strategy will result in a reduced recharge to Adults Services

GROSS DEFICIT

2,562

 

Use of Provisions

(465)

 

NET DEFICIT

2,097

 

 

6.             Service Strategy – This budget is anticipated to outturn on target.

7.             Some of the savings approved for 2011/12 will not be achieved this year.  The table below identifies the original and projected value of these savings that will not be achieved.

Description

Target Saving

 £000

Projected Saving Not Achieved

£000

Comments

Review and reorganise Adults Services senior management and professional posts

135

77

OM left at end of November 2011.  Hospital Social Work post will be vacated from January 2012

Reconfigure staffing structure in residential homes

180

121

Full reorganisation has not yet been implemented

Stop transport to day services for clients who are in receipt of DLA mobility allowance

130

130

Welsh Government will not allow this change

Relocate day services from Woodlands to Gardenhurst

55

41

Move will take place at the beginning of 2012

Review high cost Learning Disability packages and renegotiate fees

78

78

Current packages are already at a competitive rate

TOTAL

578

447

 

 

8.          Overall, it is projected that the Social Services budget as a whole could overspend by £3.8m this year.  There are provisions available to offset this position to the value of £675k resulting in a net overspend of £3.1m.  There are considerable pressures on both Children's and Adult Services from increasing demand, new requirements from the Welsh Government for which adequate funding has not been received and the need to achieve budget savings.  However, it should be noted that the overspend on Community Care packages could increase further by year end if the value of additional packages approved exceed the value of packages that reduce.  The Directorate is committed to reducing this overspend and a Budget Action Recovery Plan has been presented to Cabinet and Scrutiny Committee.   A multi-disciplinary project team and project board have been set up to facilitate the delivery of the plan.  Regular progress reports will be presented to Cabinet and Committee.

Capital Programme 2011/2012

9.          Appendix 2 details financial progress on the Capital Programme as at 30th November 2011.

10.        Appendix 3 provides non-financial information on capital schemes.

Resource Implications (Financial and Employment and Climate Change, if appropriate)

11.        As detailed in the body of the report.

Legal Implications (to Include Human Rights Implications)

12.        None.

Crime and Disorder Implications

13.        There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

14.        Good budget monitoring information assists managers in ensuring that available funds are target at those in greatest need.

Corporate/Service Objectives

15.        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

16.        Report is in accordance with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

17.        The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.

Background Papers

None.

 

Contact Officer

Carolyn Michael (Senior Group Accountant) (01446 709778)

 

Officers Consulted

Director of Social Services.

 

Responsible Officer:

Phil Evans, Director of Social Services