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Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health): 2nd September, 2013

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April 2013 to 31st July 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 July 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.

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 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.             The current forecast for Social Services is an overspend at year end of £673k. This is after deducting savings identified for the year of £2.04m.

7.             Children and Young People's Services - The major issue here is the need to manage continued pressure on the children’s placements budget.  The current projected outturn for the jointly funded Residential Placements budget for Looked After Children is an overspend of £232k, while the previously reported position at the end of May was breakeven.  The reason for this increase is that one young person moved from a foster placement into a residential placement (£129k) and one young person, who was previously supported at home, became looked after and was accommodated in a residential placement (£128k).  It is anticipated currently that this level of overspend can be offset by underspends elsewhere within Children's Services; therefore, a breakeven position is anticipated.

8.             Adult Services - The major issue is the continuing pressure on Community Care Packages, the Division's most volatile budget and the one most dependent upon levels of service demand which are not within the Council's direct control.  At present, the projected year end position is an overspend of £1.429m but this is after the reduction in budget to accommodate the savings target for the year of £685k.  Any additional funding received from Welsh Government for the implementation of the First Steps initiative, which resulted in the introduction of the £50 cap for non residential services, will reduce this overspend.  Actions are being taken to review all processes and to address this shortfall.  There are potential underspends elsewhere in Adult Services of around £463k which could be used to offset this position, resulting in an overall projected overspend at year end of £966k.

9.             Areas of savings have been identified this year which are £293k over the required target.  This can be used to offset the overspend on Adult Services, resulting in a projected overspend for Social Services at year end of £673k.

Capital

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

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

12.        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 has to be taken to the earliest available Cabinet.

Social Services Budget Programme Update

13.        On 15th July 2013, Scrutiny Committee received a progress update report on the Programme.

14.        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.

15.        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

 

 

 

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

17.        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 as part of the overall financial monitoring report for the Directorate.

Resource Implications (Financial and Employment)

18.        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

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

Legal Implications (to Include Human Rights Implications)

20.        There are no legal implications.

Crime and Disorder Implications

21.        There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

22.        There are no equal opportunity implications.

Corporate/Service Objectives

23.        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

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

Consultation (including Ward Member Consultation)

25.        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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