Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Social Care and Health): 11th February 2013
Report of the Director of Social Services
Revenue and Capital Monitoring for the Period 1st April 2012 to 31st December 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 December 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.
It is recommended that:-
1. The position with regard to the 2012/13 revenue and capital monitoring is noted.
2. The proposed amendment to the Capital Programme to reduce the Extra Care/ Elderly Mental Infirm (EMI) Feasibility budget to nil, is endorsed and referred to Cabinet for approval.
3. The progress made on the Social Services Budget Programme is endorsed and referred to Corporate Resources Scrutiny for information.
Reasons for the Recommendations
1. That Scrutiny Members are aware of the position with regard to the 2012/13 revenue and capital monitoring.
2. That Cabinet approves the proposed amendment to the Capital Programme.
3. That Scrutiny and Cabinet Members are aware of the progress made to date on the Social Services Budget Programme.
3. Cabinet on 19th November 2012 (min no C1910 and C1911) approved the amended capital and revenue 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
5. The Revenue Budget and projected outturn for 2012/13 are shown in Appendix 1.
6. The current forecast for Social Services at year end still remains as an underspend of £403k. This is as a result of the savings identified for the year and anticipated to be achieved, being £403k in excess of the actual savings required for the year, set as part of the Social Services Budget Programme. While this is an achievement for the Directorate, it should be noted that this is only a short term gain as the total savings target for the whole of the Budget Programme, over the 4 year period, has not yet been finalised. The Directorate is still under considerable pressure from several areas which could affect the eventual year end outturn.
7. Children and Young People's Services - The year end projected outturn is an overspend of £123k. An underspend in the Social Services Business Management and Innovation Division will reduce the recharge to Children and Young Peoples Services and thus reduce the overspend. The service itself is actually projected to overspend by £177k. 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 and on the adoption budget due to a high cost post adoption support package. 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 - The year end projected outturn is an underspend of £526k. An underspend in the Social Services Business Management and Innovation Division will reduce the recharge to Adults Services and thus increase the underspend. The service itself is actually projected to underspend by £391k. There is continuing pressure on the Community Care Packages budget, which 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 however a higher increase is being sought by the sector. The remainder of the year could also be a testing time for this service, due to winter weather conditions and health related problems.
9. Business Management and Innovation - The year end projected outturn is an underspend of £189k however this will be recharged to other areas of Social Services showing a breakdown position under this heading. The reason for this underspend is mainly due to staff vacancies being held under the Protection and Policy heading pending a review of service provision. The budget shown is the net budget after recharges have been deducted.
10. Appendix 2 details financial progress on the Capital Programme as at 31st December 2012.
11. Extra Care/ Elderly Mental Infirm (EMI) Feasibility - Studies into a suitable site for the provision of a new EMI facility are on hold whilst an Older Peoples Accommodation Strategy is drafted, which will inform the future development requirements. As a result the current year allocation of £50k will no longer be required. It is proposed that some of the under spend on the EMI budget be used to fund the works at Rondel House, in place of a proposed revenue contribution from Social Services of £25k.
12. Appendix 3 provides non-financial information on all capital construction schemes.
Social Services Budget Programme Update
13. A report to Scrutiny Committee on 14th January 2013 updated progress on the Social Services Budget Programme.
14. The Directorate is currently required to find savings totalling £8.5m by the end of 2015/16. Progress in identifying these savings has been made and the following table 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. In addition, Directors have been requested to formulate additional options for savings for future years in light of a predicted worsening financial position for the Council.
In Year (Surplus)/Shortfall
15. Appendix 4 provides the latest details of progress for each project currently identified.
16. 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 be reported on a monthly basis as part of the overall financial monitoring report for the Directorate.
Resource Implications (Financial and Employment)
17. 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
18. There are no direct implications arising from this report.
Legal Implications (to Include Human Rights Implications)
19. There are no legal implications
Crime and Disorder Implications
20. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
21. There are no equal opportunity implications
22. 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
23. The report is in accordance with the Policy Framework and Budget
Consultation (including Ward Member Consultation)
24. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.
Carolyn Michael (Senior Group Accountant) (01446 709778)
Director of Social Services
Phil Evans, Director of Social Services