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Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health): 12th March 2012

 

Report from the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April 2011 to 31st January 2012

 

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 January 2012 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 Peoples Services - The projected overspend position for this service is £1.25m.  An analysis of this position is shown in the table below.  The main area of overspending is the Children's Placement budget.  Managers are currently reviewing the placements and considering the options for alternative provision both in the short and long term.  This overspend can be offset by a Children’s Services provision of £210k resulting in a requirement to find £1.04m of savings by the service this financial year.

Area Of Spend

£000

Note

Children's 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 Children's 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.  Existing Community Care packages are being examined in order to review the level of packages and their associated costs and the method of service delivery.  Managers are also currently assessing all areas of the service to identify where further savings can be made.  This overspend can be offset by an Adult Services provision of £465k, resulting in a requirement to find £1.86m of savings 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 (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 (equivalent to £1.007m in a full year) 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.  Discussions are currently on going with the Welsh Government regarding the First Steps Initiative.  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 Plan is currently being refined so that it demonstrates a viable plan to bring spending back to the base budget.  This will take into consideration the 2012/13 budget proposals.  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.

Capital Programme 2011/2012

9.             Appendix 2 details financial progress on the Capital Programme as at 31st January 2012.

10.        For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers will be required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.

11.        Day Care Reconfiguration - Gardenhurst - refurbishment works at Gardenhurst have been carried out recently, including the reconfiguration of disabled toilets and installation of new shower facilities.  A bid for 2012/13 capital funding for further health & safety works required at the property, such as new fire alarm and safe egress for clients and staff alike, was successful and the sum of £100K was included in the Initial Capital Programme Proposals Cabinet report on 16th November 2011. In order to minimise the disruption to clients within the centre who have been moved out once for this year's works to proceed, it has been decided to bring the most invasive works scheduled for 2012/13 back into this year, to avoid transferring the clients out once again. Council on 7th March 2012 have been asked to approve the transfer of £50K from the 2012/13 budget into 2011/12 in order for these works to be funded. The sum of £50K remains in 2012/13 to cover works that do not require that clients be decanted in order to proceed. At the time of writing this report the outcome of that request is not known so Appendix 2 has not been amended to reflect this transfer as yet.

12.        Day Care Reconfiguration, Hen Goleg - various refurbishment works have been on-going but additional works have been incurred due to the need to replace the contractor for the scheme before completion of the scheme and some changes in the agreed original specification for the scheme. The revised final cost anticipated for this scheme is £138K. The additional cost of £31K will be funded from existing resources and Cabinet have been requested to increase the current budget by £31K, to £138K.

13.        Appendix 3 provides non-financial information on capital schemes with a budget of over £100,000.   Where a budget shown in Appendix 2 is more than £100,000 but is made up of several schemes that individually are less than £100,000, the scheme is not included in Appendix 3.

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

14.        As detailed in the body of the report.

Legal Implications (to Include Human Rights Implications)

15.        None

Crime and Disorder Implications

16.        There are no crime and disorder implications

Equal Opportunities Implications (to include Welsh Language issues)

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

Corporate/Service Objectives

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.        Report is in accordance with the Policy Framework and Budget

Consultation (including Ward Member Consultation)

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

Background Papers

21.        None

Contact Officer

Carolyn Michael

 

Officers Consulted

Director for Social Services

 

Responsible Officer:

Phil Evans Director for Social Services

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