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Agenda Item No. 5

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health): 6th October 2014

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April 2014 to 31st August 2014

 

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 to 31st August 2014 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 2014/15 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 2014/15 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.         On 5th March 2014, Council approved the Revenue and Capital Budgets for 2014/15 (minute nos. 884 and 883 respectively).  Reports monitoring expenditure are brought to this Committee on a regular basis.

4.         In setting the Social Services budget for 2014/15, the use of £2.199m from the Social Services Fund was also approved.

Relevant Issues and Options

Revenue

5.         The current year end forecast for the Social Services budget is an overspend of £700k.  In addition to increased demand for services, there is pressure on the Directorate to achieve its savings targets for 2014/15 onwards.

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

7.         Children and Young People's Services - This service is currently anticipated to outturn £200k under budget at year end.  The major issue concerning this service continues to be the pressure on the children’s placements budget.  At present, it is currently projected that the Joint Budget for Residential Placements for Looked After Children will outturn within budget at year end.  However, it still remains early in the financial year and therefore this position will need to be monitored closely as any increase in the number of children becoming looked after by the Council over the remainder of the year could have a significant impact on the budget, particularly if they require high cost residential placements.  The areas of projected underspend in the budget are currently legal expenses, adoption income and reduced expenditure as a result of the current cohort of children. 

8.         Adult Services - This service is currently anticipated to outturn £900k over budget at year end.  This is due to a projected overspend on Community Care Packages of £1.1m as a result of increased demand for services, particularly for frail older clients.  This is a slight improvement on the previous month's position.  The service will strive to manage demand, not only to avoid a further increase in the overspend, but also to reduce the overspend.  Whilst every effort will be made to improve this position, it cannot be guaranteed that this position will not deteriorate further by year end as this budget is extremely volatile and under great pressure.  The annual deferred income budget for 2014/15 has been set at £725k and at 31st August 2014 income received to date was on target.  The year end projection has now been amended from a £150k under-recovery, as reported last month, to a £100k under-recovery.  This position is included as part of the projected overspend on the Community Care packages budget.  The areas of projected underspend in the budget are currently staffing and related travel costs and premises.

9.         The Social Services Directorate is committed to achieving a balanced budget in 2014/15 while delivering the approved savings.

Capital

10.      Appendix 2 details financial progress on the Capital Programme as at 31st August 2014.

11.      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.

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

Social Services Budget Programme Update 

13.      On 5th March 2014, Council approved the savings targets for 2014/15 and the initial savings targets for 2015/16 and 2016/17. 

14.      As part of the Medium Term Financial Plan, approved by Cabinet on 11th August 2014, it was agreed that the service remodelling savings, included in 2015/16 and 2016/17 will be rephased and are now set as £320k in 2017/18, £320k in 2018/19 and £330k in 2019/20.

15.      The Directorate is currently required to find savings totalling £3.97m by the end of 2019/20.  The surplus shown is as a result of the foster carer recruitment project and can 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 £293,000 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

Previously Identified Savings

 

293

293

293

2014/15

713

454

(259)

34

2015/16

1,125

1,201

76

110

2016/17

1,162

1,238

76

186

2017/18

320

320

0

186

2018/19

320

320

0

186

2019/20

330

330

0

186

TOTAL

3,970

4,156

 

 

 

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

18.      The Social Services Directorate is committed to achieving a balanced budget.  The corporate budget programme board for social services 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, Operational Manager - Accountancy (01446-709778)

 

Officers Consulted

Director of Social Services

 

Responsible Officer

Phil Evans, Director of Social Services

 

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