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Agenda Item No. 5

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Social Care and Health): 5th January 2015

 

Report of the Director of Social Services

 

Revenue and Capital Monitoring for the period 1st April 2014 to 30th November 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 30th November 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.         Cabinet on the 17th November 2014 (minute nos. C2533 and C2534 respectively) approved the amended Revenue and Capital Budgets for 2014/15.  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 £400k.  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 £400k under budget at year end.  The major issue concerning this service continues to be the pressure on the children’s placements budget.  However, it is currently projected that the Joint Budget for Residential Placements for Looked After Children could outturn with a £100k underspend at year end.  Work has been ongoing to ensure that children are placed in the most appropriate and cost effective placements, however, it should be noted that due to the high cost of such placements, the outturn  position could fluctuate.  There are potential underspends elsewhere in Children's Services relating to team budgets of £52k, £54k relating to administrative staff, £50k on legal expenses, £60k due to additional adoption income and £84k on alternative means of provision and accommodation costs required for the current cohort of children. 

8.         Adult Services - This service is currently anticipated to outturn £800k over budget at year end.  This is due to a projected overspend on Community Care Packages of £1.0m as a result of increased demand for services, particularly for frail older clients.  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 the impact of winter pressures will need to be assessed.  The annual deferred income budget for 2014/15 has been set at £725k and at 30th November 2014 income received to date is £24k under-recovered.  The year-end projection has been maintained at a £100k under-recovery.  This position is included as part of the projected overspend on the Community Care packages budget.  There are potential underspends elsewhere in Adults Services of around £200k which could be used to offset this position.  These areas are £114k on staffing, £19k on transport, £38k on premises and £29k on supplies and services.

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 30th November 2014.

11.      Bryneithin Marketing and Disposal - It has been requested that the 2014/15 Capital Programme is increased by £22k to fund costs associated with marketing and disposal of the former Bryneithin Site. This scheme will be funded via a contribution from Capital Receipts.

12.      Woodlands Demolition - It has been requested that £2.5k is carried forward into the  2015/16 Capital Programme for the release of retention in line with the contract.

13.      Castle Avenue External Structures Works - This budget will not be required for the Castle Avenue Scheme and it has therefore been requested that the budget of £1k is transferred to the Hen Goleg Boiler Replacement Scheme.

14.      Flying Start Grants - A grant award of £25k had been approved by Welsh Government for outside works at Alexander Community Centre.    Despite best efforts it has not been possible to address all of the difficulties presented by the outdoor space and therefore only indoor space will be provided at the Centre.  As a result, Welsh Government have been asked to vire this sum to the Colcot Scheme, which will allow further work to be undertaken such as the provision of a canopy, basic equipment and an internal folding door.  This will now bring the budget for the Colcot element of the scheme to £315k.

15.      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.

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

Social Services Budget Programme Update 

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

18.      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 re-phased and are now set as £320k in 2017/18, £320k in 2018/19 and £330k in 2019/20.

19.      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.

20.      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

 

 

 

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

22.      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)

23.      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

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

Legal Implications (to Include Human Rights Implications)

25.      There are no legal implications.

Crime and Disorder Implications

26.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

27.      There are no equal opportunity implications.

Corporate/Service Objectives

28.      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

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

Consultation (including Ward Member Consultation)

30.      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