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Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health): 8th October 2012

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April 2012 to 31st August 2012 and Update on the Social Services Budget Programme

 

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 2012 to 31st August 2012 regarding those revenue and capital budgets within this Committee’s remit and to request a change to the Capital Programme.

2.             To update Scrutiny Committee on the progress made in delivering the Social Services Budget Programme.

Recommendations

It is recommended that:-

 

1.             The position with regard to the 2012/13 revenue and capital monitoring is noted and the proposed amendment to the Day Care Re-Configuration capital scheme at Rondel House to increase the budget by £50K (funded from a transfer of £25K from the Rhoose Road capital budget and a £25K contribution from revenue) is endorsed and referred to Cabinet for approval.

2.             The progress made on the Social Services Budget Programme is endorsed and referred to Cabinet for approval.

Reasons for the Recommendations

1.             That Scrutiny members are aware of the position with regard to the 2012/13 revenue and capital monitoring and Cabinet approves the proposed amendment to the Capital Programme.

2.             That Scrutiny and Cabinet members are aware of the progress made to date on the Social Services Budget Programme and endorse the proposed amendments.

Background

3.             Council on the 7th March 2012 (minute nos 951 and 950 respectively) approved the Revenue and Capital Budgets for 2012/13. Reports monitoring expenditure are brought to this committee on a regular basis.

4.             Cabinet on 30th July 2012 (minute no. C1790) endorsed the Social Service Budget Programme and requested that Cabinet and Scrutiny Committee receive monthly progress updates in order to exercise proper oversight and scrutiny.

Relevant Issues and Options

Revenue

5.             The Revenue Budget and projected outturn for 2012/13 are shown in Appendix 1.

6.             The current forecast for Social Services is a balanced budget.

7.             Children and Young People's Services - There continues to be pressure on the Children’s placements budget, specifically from children with especially complex needs. There is also pressure on the budget in respect of accommodation costs for homeless young people.  Any increase in the number of children becoming looked after by the Council over the year could have a significant impact on the service.

8.             Adult Services - There is continuing pressure on the Community Care Packages budget.  This budget is extremely volatile and can be adversely affected by outside influences such as last year's introduction of the First Steps Initiative by the Welsh Government which capped charging for non residential services to £50 per week. The impact of this change will continue to be monitored as the year progresses and discussions with the Welsh Government regarding the issue will continue.  Another issue to affect the year end position will be the 2012/13 fee we set in respect of personal care costs for residents placed by the Council in residential and nursing homes provided by the independent sector.  Currently, 2% is included in the budget.  Another pressure on the Service is the need to achieve the savings targets, set as part of the Social Services Budget Programme.  This is discussed later in this report. 

Capital

9.          Appendix 2 details financial progress on the Capital Programme as at 31st August 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 are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.

11.        Day Care Re-Configuration, Rondel House -Works are needed to transfer the servicing of the kitchens at Rondel House to a new electricity supply. Works are anticipated to cost £50K more than the existing budget (which was slipped from last year's budget to cover final costs on refurbishment works). It is proposed to fund £25K of the costs from a contribution from revenue budgets whilst it is proposed that the balance be transferred from the approved capital budget for the upgrade of Rhoose Road Residential Home, where it has been determined that it is not feasible to carry out the planned extension work within the budget available due to complications with drainage.   

12.        Gibbonsdown Community Centre - Under the Economy and Environment Scrutiny Committee's remit, there is a proposed capital scheme to refurbish the Gibbonsdown Childrens Centre.  It has been proposed that this scheme is funded partly from the Flying Start Capital grant and also from the Barry Regeneration Area (BRA) grant.  Neither grant offers have yet been formally received by the Council, though the BRA grant has initially been approved for the Gibbonsdown Childrens Centre, who originally applied for the grant.  When grant offers have formally been received Committee will be advised and an amendment to the capital programme will be requested.

13.        Appendix 3 provides non-financial information on all capital construction schemes.

Social Services Budget Programme Update

14.        A report updating progress on the Social Services Budget Programme was presented to Cabinet on 30th July 2012 and it was requested that further updates on progress should be reported on a monthly basis.

15.        In order to meet corporate savings targets and to bring the budget back in line following the overspend in 2012/13, the Directorate is currently required to find savings totalling £8.5m by the end of 2015/16. 

16.        Progress in identifying these savings has been made and the table below shows the current position.  Sufficient savings have been identified to meet the targets for 2012/13 and 2013/14.  However, there still remains £3.9m to be identified for 2014/15 and 2015/16. The Director of Social Services has been asked to finalise actions for these periods no later than January 2013.

 

 

 

 

 

Year

Savings Required

£000

Savings Identified

£000

In Year (Surplus)/Shortfall

£000

Cumulative (Surplus)/Shortfall

£000

2012/13

1,430

1,833

(403)

(403)

2013/14

2,150

2,040

110

(293)

2014/14

2,150

675

1,475

1,182

2015/16

2,757

25

2,732

3,914

TOTAL

8,487

4,573

3,914

 

  

17.        In the report to Cabinet dated 30th July 2012, a shortfall in savings of £4.5m was identified.  Since this date, further savings of £588k have been identified.  This has been achieved by reassessing saving targets for existing projects and by identifying new projects but, subject to approval, other projects will not be pursued.

18.        It is proposed that the following new projects are progressed.

Residential Care Provision Tender (£50k) - The Council will review the way in which it purchases residential provision for children and young people.

Supported Lodgings (£20k) - Arrangements for the provision of supported lodgings for young people will be reviewed.

Team Configuration (£20k) - Team budgets within the Childrens and Young People Service will be reviewed.

19.        It is proposed that the following projects are not progressed further.

Meals on Wheels (£10k) - The relatively small level of saving is not commensurate with the high level of resource required to realise the changes.

Learning Disabilities Day Services (£500k) - The initial report from an external review of this service identified limited potential to make savings.

Business Manager Local Safeguarding Childrens Board Council Funding (£27k) - This saving will be achieved as part of the Business Management & Innovation Managed Budget Reduction project and it has been transferred to that project.

20.        The table below shows the breakdown of the currently identified savings by Service area.

Service Area

2012/13

£000

2013/14

£000

2014/15

£000

2015/16

£000

TOTAL

£000

Childrens

460

490

150

0

1,100

Adults

1,188

1,450

525

25

3,188

Business Mgt & Innnovation

185

100

0

0

285

TOTAL

1,833

2,040

675

25

4,573

 

21.        Appendix 4 provides details of progress for each project currently identified.

22.        The Social Services Directorate is committed to achieving a balanced budget.  The corporate programme board and project teams overseeing the plan will continue to develop it further and ensure delivery and progress.  Progress updates will continue to be reported on a monthly basis as part of the overall financial monitoring report for the Directorate.

Resource Implications (Financial and Employment)

23.        As detailed in the body of the report.  Changes in future service provision may have an impact upon staffing levels and due consideration will be given to the Council's employment policies and procedures.

Sustainability and Climate Change Implications

24.        There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

25.        There are no legal implications

Crime and Disorder Implications

26.        There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

27.        There are no equal opportunity implications

Corporate/Service Objectives

28.        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

29.        The report is in accordance with the Policy Framework and Budget

Consultation (including Ward Member Consultation)

30.        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

 

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