Top

Top

 

Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health) 6th February 2012

 

Report from the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April 2011 to 31st December 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 31st December 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 takes 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 Peoples Services - The projected overspend position for this service is £1.25m.  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 £1.04m of savings to be found by the service this financial year.

Area Of Spend

£000

Note

Childrens Placement

1,144

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

GROSS DEFICIT

1,251

 

Use of Provisions

(210)

 

NET DEFICIT

1,041

 

 

5.             Adult Services - The projected overspend position for this service is £2.32m.  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 £1.86m of savings to be found by the service this financial year.  The position has improved from the previous month as a result of savings being made from the continuing negotiations relating to the Learning Difficulties Supported Housing contracts and the receipt of increased income relating to Community Care packages.

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 (as detailed in November's monitoring report)

Community Care Packages

1,586

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

 

(401)

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

(342)

This includes staff vacancies and other underspends that can be retained

Reduced Recharge from Service Strategy

(106)

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

GROSS DEFICIT

2,324

 

Use of Provisions

(465)

 

NET DEFICIT

1,859

 

 

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

7.             Overall, it is projected that the Social Services budget as a whole could overspend by £3.57m this year. There are provisions available to offset this position to the value of £675k resulting in a net overspend of £2.9m. There are considerable pressures on both Children's and Adults 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.  While the position has improved this month by £248k, 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.

8.             The Director of Social Services is taking immediate action to curtail overspending within the Directorate.  The Directorate is committed to reducing this overspend and a Budget Action Recovery Plan has been presented to Cabinet.  The Budget Action Recovery Plan is currently being refined so that it demonstrates a viable plan to bring spending back to the base budget.  A multi-disciplinary project team and project board have been set up to further develop the plan and oversee and facilitate its delivery. Regular progress reports will be presented to Committee.

9.             Attached for information, at Appendix 2, is the Social Services Budget Programme Update for Elected Members paper which was issued to members during January 2012.

Capital Programme 2011/2012

10.        Appendix 3 details financial progress on the Capital Programme as at 31st December  2011.

11.        Appendix 4 provides non-financial information on capital schemes

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

12.        As detailed in the body of the report.

Legal Implications (to Include Human Rights Implications)

13.        None

Crime and Disorder Implications

14.        There are no crime and disorder implications

Equal Opportunities Implications (to include Welsh Language issues)

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

Corporate/Service Objectives

16.        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

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

Consultation (including Ward Member Consultation)

18.        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 for Social Services.

 

Responsible Officer:

Phil Evans Director for Social Services

Share on facebook Like us on Facebook