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Agenda Item No. 6

 

The Vale of Glamorgan Council

   

Scrutiny Committee (Social Care and Health): 13th July 2015

 

Report of the Director of Social Services

 

Closure of Accounts 2014/15

 

Purpose of the Report

1.         The accounts are complete and this report is to inform Scrutiny Committee of the provisional financial position for the Directorate for the 2014/15 financial year.

Recommendations

It is recommended that:-

 

1.         Scrutiny Committee note the report and the financial measures taken and proposed.

Reasons for the Recommendations

1.         To note the report and the financial measures taken and proposed.

Background

2.         Following the end of the financial year, Scrutiny Committee are provided with provisional outturn figures. The Statement of Accounts will be approved by Council before 30th September, which will normally follow the audit.

Relevant Issues and Options

Revenue

3.         The Council on the 5th March 2014 (minute no.884) agreed the Authority’s budget requirement for 2014/15.

4.         Appendix 1 amends the revised budgets to take account of the following adjustments. There is no overall effect on this Committee.

IAS 19 Retirement Benefits -The purpose of this Standard is to ensure that the operating costs of providing retirement benefits to employees are recognised in the accounting period in which they are earned by the employees. Figures provided by the actuary differ from that estimated and the movements need to be incorporated into the accounts.

Asset Rents - This charge can vary each year due to an increase / decrease in the valuation of assets. The movements need to be incorporated into the accounts.

Recharges - These relate to movements in charges between internal Council services.

Carbon Reduction Commitment Scheme - The scheme requires the Authority to report on carbon dioxide emissions associated with the use of electricity and gas within its buildings. Payment is then made to the Environment Agency to cover the charge in respect of those emissions. The original budget to cover the estimated cost was included in Policy; however it has now been re distributed to the relevant services.

5.         Set out below is a table comparing the amended budget and the actual expenditure for this Committee:

 

Service

 

Year - 2014/15

Amended Revenue Budget

Total Provisional Actual

Variance +Favourable  () Adverse

 

       £’000

          £’000

             £’000

 

 

 

 

Children and Young People

14,358

14,343

+15

Adult Services

36,830

36,864

(34)

Business Mgt & Innovation

308

300

+8

 

 

 

 

COMMITTEE TOTAL

51,496

51,507

(11)

 

 

6.         The main reasons for the variances are set out in the following paragraphs. 

7.         Children and Young Peoples Services – Favourable Variance of £15k

There was a favourable variance relating to the Joint Budget with Education for Children's Placement of £4k and an adverse variance of £24k for other Children’s Placements. 

There were favourable variances of £119k on staffing due to vacancies within the Social Work teams and Admin team budgets.  There were further favourable variances of £95k due to additional adoption income and £160k for alternative means of provision and accommodation costs required for the current cohort of children.  Underspends were achieved on transport of £35k and supplies and services of £96k.  Other favourable variances total £64k.

There have been transfers to reserves of £245k to fund future high cost residential placements and £289k towards the cost implications of legislative changes.

8.         Adult Services – Adverse Variance of £34k

There was an adverse variance of £340k on community care packages.  This includes £147k for under recovery of income received under the Deferred Payment Scheme and the use of the Intermediate Care Fund grant to fund Community Care Packages via Accommodation Solutions and Reablement work stream to the value of £305k.  There was an adverse variance of £36k in respect of the Deprivation of Liberty Safeguard team.

There were favourable variances of £58k on staffing due to vacancies and £54k on Transport, £115k on supplies and services.  There was over-recovery of income for customers receipts resulting in a favourable variance of £63k and additional grant income of £144k.    

There was a transfer to reserves of £92k to contribute towards the cost implications of legislative changes

9.         Business Management and Innovation – Favourable of £8k

The majority of this budget is recharged to Children's and Adult Services. The position before recharges to services is a favourable variance of £44k. This is made up of £18k on transport, £16k on receipt of income and £10k on other small variances.  £24k was transferred to reserves to contribute towards the cost implications of legislative changes.   The favourable variance has meant that there has been a reduced internal recharge to Children's and Adults Services of £12k.

10.      As part of the Social Services Budget Programme, £2.031m was utilised in year from the Social Services provision and £168k was utilised from the Social Services Plan reserve.   The Social Services provision has now been fully utilised, with the balance on the Social Services Plan reserve, as at 31st March 2015, standing at £4.025m. 

                       

Capital

11.      The overall outturn for this Committee is a variance of £274k and the statement at Appendix 2 details the outturn by scheme.  The main variance in 2014/15 related to the Flying Start Programme which requested slippage of £203k.  The main issue for the Ty Robin Goch scheme was that Action for Children continued to provide a full service to clients during the course of the building works and therefore restrictions were in place. The vulnerability of their clients resulted in this Service’s requirements of the building contractor evolving during the course of the works. These included the contractor being afforded limited hours during which they could work with a resultant knock-on effect on the planned programme. There was also a delay in obtaining planning approval.  For the Colcot scheme there were a number of planning applications required during the scheme development stage.  The initial solution of alterations to the existing school changed to a standalone building and objections were received from Welsh Water on proposals to address surface water issues. These adversely affected commencement of site works.  Welsh Government has agreed that £203k of grant funding can be carried forward to 2015/16.

Reserves

12.      A reserve is an appropriation from a revenue account and does not constitute a cost of service until the expenditure is eventually incurred. A reserve does not cover a present obligation or liability and is a voluntary means of setting aside monies for future requirements either capital or revenue.

13.      A provision is a charge to revenue and is included as part of the cost of the relevant service at the point the provision is created. A provision covers a present obligation or liability that has occurred to a past event and is compulsory under accounting regulations.

14.      It has been proposed that a new fund is established with a value of £500k for Social Services Buildings and this fund will be used to update Council premises to meet the future demands of the service

15.      Funds no longer required as reserves may be transferred to the Council Fund to be used for other purposes.

16.      Attached at Appendix 3 is a schedule showing the Committee's reserves as at 31st March 2015.

Resource Implications (Financial and Employment)

17.      As part of the Final Revenue Budget Proposals for 2014/15, a savings target of £713k was set for this Committee.  Progress on the achievement of these savings has been monitored and reported to Committee during the year.  Appendix 4 to this report confirms the final status of these savings at the end of 2014/15 and all savings have been achieved.  

18.      As a result of the capital underspend in 2014/15, an allocation of £269k has been approved via Managing Director's Emergency Powers on 16th June 2015, as slippage into 2015/16 for this Committee.  This will fund the completion of schemes as shown in Appendix 5

Sustainability and Climate Change Implications

19.      There are no Sustainability and Climate Change implications resulting from this report

Legal Implications (to Include Human Rights Implications)

20.      The provisional out turn figures for the Council has been used in the preparation of the Statements of Accounts, which under the Accounts and Audit Regulations, must be certified by the Section 151 Officer by the 30th June, 2015

Crime and Disorder Implications

21.      There are no crime and disorder implications resulting from this report

Equal Opportunities Implications (to include Welsh Language issues)

22.      There are no equality implications resulting from this report

Corporate/Service Objectives

23.      To provide sound financial and reliable advice in relation to all issues affecting the Council including the production of the statutory accounts.

Policy Framework and Budget

24.      Slippage has been approved via the use of Managing Director's emergency powers.

Consultation (including Ward Member Consultation)

25.      The appropriate Chief Officers have been consulted on this report. This report does not require Ward Member consultation.

Relevant Scrutiny Committee

26.      Corporate Resources.

Background Papers

None

 

Contact Officer

Carolyn Michael (Operational Manager - Accountancy) (01446 709778)

 

Officers Consulted

Not Applicable

 

Responsible Officer:

Phil Evans, Director of Social Services

 

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