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Agenda Item No. 8

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health): 15th July 2013

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the Period 1st April 2013 to 31st May 2013

 

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 2013 to 31st May 2013 regarding those revenue and capital budgets, which form this Committee’s remit.

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 2013/14 revenue and capital monitoring is noted.

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

Reasons for the Recommendations

1.             That Members are aware of the position with regard to the 2013/14 revenue and capital monitoring relevant to this Scrutiny Committee.  

2.             That Scrutiny and Cabinet Members are aware of the progress made to date on the Social Services Budget Programme. 

Background

3.             Council on the 6th March 2013 (minute nos. 943 and 942 respectively) approved the Revenue and Capital Budgets for 2013/14.  Reports monitoring expenditure are brought to this Committee on a regular basis. 

4.             As part of the Final Revenue Budget Proposals for 2013/14, Council on 6th March 2013 approved the savings targets for 2013/14 onwards.  These savings will represent the minimum targets expected to be met by services.  In setting the Social Services budget for 2013/14, the use of £2.241m from the Social Services Fund was also approved.

Relevant Issues and Options

Revenue

5.             The Revenue Budget and projected outturn for 2013/14 are shown in Appendix 1.

6.             As it is very early in the financial year, the current forecast for Social Services is a balanced budget.  In addition to increased demand for services, there is pressure on the Directorate to achieve its savings targets for 2013/14 onwards.

7.             Children and Young People's Services - The major ongoing issue concerning this service is the continued pressure to manage the children’s placements budget.  While the number of Looked After Children has been decreasing, the children have increasing complex needs and therefore can result in high cost placements being required.

8.             Cabinet on 17th June 2013, approved the proposal to set up a jointly funded budget for Residential Placements for Looked After Children.  The costs incurred are currently funded by Education and Social Services, with contributions from Cardiff and Vale University Health Board (UHB) where Continuing Health Care is required.  The process for determining the allocation of costs to each funder can be difficult and time consuming, so it was felt that a joint budget would be a more efficient and effective means of financial management.  The budget for 2013/14 has been set at £3,150k, with a £2,830k (90%) contribution from Social Services and a £320k contribution from Education (10%).  The joint budget will be held by Social Services and therefore a virement of £320k from Education to Social Services has been actioned in Appendix 1.  UHB contributions, via Continuing Health Care arrangements, will continue unchanged.  As previously stated, there will be great pressure on this budget as the year progresses, however, the current projected year end position for the joint budget is a breakeven position.

9.             Adult Services - The major issue concerning this service is the continuing pressure on Community Care Packages, which is an extremely volatile budget.  At present, the projected year end position is an overspend of £995k however this includes the savings target for the year of £685k.  Work is ongoing to ensure that the savings are implemented and the shortfall is addressed.  There is a projected increase in income received under the Deferred Payment Scheme which can partly offset this position.  It is, therefore, considered that the eventual year end position will be a balanced budget.

Capital

10.        Appendix 2 details financial progress on the Capital Programme as at 31st May 2013.

11.        Members should be aware that Appendix 2 now includes approved slippage for unspent committed capital expenditure slipped from 2012/13 into 2013/14. This was approved by exercising the Managing Director's delegated emergency powers.

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

13.        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.

Social Services Budget Programme Update

14.        On 17th June 2013, Scrutiny Committee received a progress update report on the Programme.

15.        The Directorate is currently required to find savings totalling £6.0m by the end of 2016/17.  Savings totalling £6.189m have currently been identified.  The surplus will be used to mitigate any additional savings to be found in future years.

16.        The following table shows the approved savings targets and the savings identified by year.  It includes the £403,000 identified in 2012/13 in excess of the saving target for that year.

Year

Savings Required

£000

Savings Identified

£000

In Year Surplus/ (Shortfall)

£000

Cumulative Surplus/   (Shortfall)

£000

Additional 2012/13 savings

 -

403

403

403

2013/14

2,150

2,040

(110)

293

2014/15

838

579

(259)

34

2015/16

1,700

1,776

76

110

2016/17

1,315

1,391

76

186

TOTAL

6,003

6,189

 

 

 

17.        Appendix 4 details the latest progress for each project currently identified.

18.        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)

19.        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

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

Legal Implications (to Include Human Rights Implications)

21.        There are no legal implications.

Crime and Disorder Implications

22.        There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

23.        There are no equal opportunity implications.

Corporate/Service Objectives

24.        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

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

Consultation (including Ward Member Consultation)

26.        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

Operational Manager - Legal Services

 

Responsible Officer

Phil Evans, Director of Social Services

 

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