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Agenda Item No 6

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health): 13th January 2014

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April 2013 to 30th November 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 30th November 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 in delivering the Social Services Budget Programme is noted and be 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 Members are aware of the progress made to date on the Social Services Budget Programme. 

Background

3.         Cabinet on the 18th November 2013 (minute nos. C2076 and C2074 respectively) approved the amended 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.         It is currently projected that services under this Committee will outturn within target at year end.

6.         A table and graph setting out the variance between profiled budget and actual expenditure to date and the projected position at year end are attached at Appendix 1.  The appendix also includes a graph showing the trend in Adult Services expenditure to budget for the year to date.

7.         Children and Young People's Services - The major issue 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 £508k.  Any overspend at year end will be funded in proportion to the original contributions made to the joint budget i.e. £457k (90%) Social Services and £51k (10%) Education.  In addition to the joint budget, a high cost placement provision of £1.46m was established as part of the budget setting process for 2013/14.  To date, £223k of the provision has been committed, which is in addition to expenditure incurred within the joint budget.  There are potential underspends elsewhere in Children's Services of around £240k which could be used to offset this position.  The increase in expenditure on the joint residential budget has resulted in a reduction in expenditure of £71k on alternative means of provision and accommodation costs required for the current cohort of children.  In addition, other areas of underspend are £50k on the legal expenses budget, £65k additional adoption income and £20k on administrative staff.  The Business Management and Innovation division is anticipated to underspend and any variance is apportioned to the service areas, therefore £34k of the underspend will be allocated to Children's Services.  It is currently anticipated that there will be a £217k overspend.

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 entirely within the Council's direct control.  At present, the projected year end position is an overspend of £685k. Actions, therefore, still need to be taken to review all processes and to address this shortfall.   There are potential underspends elsewhere in Adult Services of around £609k which could be used to offset this position.  These areas are £230k following the closure of Bryneithin, £254k on staffing and £41k on Premises.  With the levels of savings required for 2014/15 and 2015/16, budgets are being re-examined during 2013/14 with a view to their possible realignment as part of the consideration of new models of service delivery .    Future savings are planned for these areas and some positions and premises costs are lower than expected as a result of the commencement of some of these plans ahead of schedule.  The Business Management and Innovation division is anticipated to underspend and any variance is apportioned to the service areas, therefore £84k of the underspend will be allocated to Adult Services.  This results in a currently anticipated overspend of £76k.

9.         Business Management and Innovation - The majority of this budget is recharged to Children's and Adult Services and is, therefore, showing a breakeven position at year end.  The position before recharges to services is an underspend of £118k.  This is made up of an underspend on staffing, mainly due to staff vacancies which were held prior to the introduction of the new staffing structure in the Protection and Policy section.  This underspend has meant that there has been a reduced internal recharge to Children's and Adult Services of £118k.

10.      Areas of savings have been identified this year which are £293k over the required target.  This can be used to offset the overspends identified above and a balanced budget is currently projected for year end.  A major issue which will affect the service between now and the end of the financial year is the impact of winter pressures.  This cannot yet be quantified but will be closely monitored and reported to future meetings.

Capital

11.      Appendix 2 details financial progress on the Capital Programme as at 30th November 2013.

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 has to be taken to the earliest available Cabinet.

Social Services Budget Programme Update 

14.      On 7th November 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.  The Children's Placement (£200k) and Adult Services Care Package (£685k) budget reductions are currently not being achieved as detailed above.

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 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

 

Responsible Officer

Phil Evans, Director of Social Services