Top

Top

Agenda Item No. 4

The Vale of Glamorgan Council

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

Report of the Director of Social Services

Revenue and Capital Monitoring for the period 1st April to 31st  August 2015

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 2015 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 2015/16 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 2015/16 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

  1. On 4th March 2015, Council approved the Revenue and Capital Budgets for 2015/16 (minute no 941 and 940 respectively). Reports monitoring expenditure are brought to this committee on a regular basis.
  2. In setting the Social Services budget for 2015/16, the use of £2.075m from the Social Services Fund was also approved.

Relevant Issues and Options

Revenue

  1. The current forecast for Social Services is a balanced budget. In addition to increased demand for services, there is pressure on the Directorate to achieve its savings targets for 2015/16 onwards.
  2. 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.
  3. Children and Young People's Services - This service is anticipated to outturn £450k under budget at year end. The key issue for this service continues to be managing the demand for the Joint Budget for Residential Placements for Looked After Children, however, currently it is forecast to outturn with a £250,000 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 potential high cost of each placement, the outturn position could fluctuate with a change in the number of looked after children. There are potential underspends elsewhere in Children's Services of £65k on staffing budgets and £135k on alternative means of provision and accommodation costs required for the current cohort of children.  
  4. Adult Services - This service is currently anticipated to outturn £450k over budget at year end. This is due to a projected overspend on Community Care Packages of £450k as a result of increased demand for services, particularly for frail older clients. There is continued pressure on this area of the service 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 there is a continued increase in demand for services. The annual deferred income budget for 2015/16 has been set at £739k and as at 31st August 2015 income received to date was £35k under-recovered. As it is early in the financial year, the year-end projection is to breakeven against budget.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 31st August 2015.
  2. Southway Fire Works - This scheme is now complete however further works have been identified within the Southway and Cartref residential homes. It has therefore been requested that £7k is vired to the Southway and Cartref residential home upgrade scheme.
  3. Appendix 3 provides non-financial information on capital construction schemes
  4. 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.

2015/16 Budget Programme

  1. The Directorate is currently required to find savings totalling £3.568m by the end of 2019/20 and this target is analysed by year in the following table. The surplus shown and the savings brought forward figures are as a result of the foster carer recruitment project, which is being developed in addition to the required savings targets. This surplus can be used to mitigate any increase in savings to be found in future years.

Year

Savings Required

£000

Savings Identified

£000

In Year Surplus/ (Shortfall)

£000

Cumulative Surplus/ (Shortfall)

£000

Savings Brought Forward

 

34

34

34

2015/16

1,465

1,541

76

110

2016/17

1,133

1,209

76

186

2017/18

320

320

0

186

2018/19

320

320

0

186

2019/20

330

330

0

186

TOTAL

3,568

3,754

   
         
  1. Appendix 4 provides an update on the individual areas of saving.
  2. In order to respond to the level of savings required as a result of the projected reductions in funding from Welsh Government, the Council has instigated its Reshaping Services change programme. A report to Cabinet on 26th January 2015, acknowledged that the Social Services Directorate already has two major initiatives underway - the Collaborative Working Programme and the Budget Programme. These programmes already contain projects which are progressing the opportunities identified as part of the Reshaping Services Programme. The Reshaping Services logo has been shown against specific projects, included in Appendix 4, which have a specific alignment with the objectives of the Reshaping Services strategy. The whole of the Social Services Budget Programme will be reporting into the Reshaping Services governance arrangements.
  3. The Social Services Directorate remains committed to achieving a balanced budget. The corporate programme board and project teams overseeing the plan will continue to monitor and ensure its delivery. As in previous years, on-going progress updates will to be reported to Committee as part of the overall financial monitoring report for the Directorate

Resource Implications (Financial and Employment)

  1. 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

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

Legal Implications (to Include Human Rights Implications)

  1. There are no legal implications.

Crime and Disorder Implications

  1. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

  1. There are no equal opportunity implications.

Corporate/Service Objectives

  1. 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

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

Consultation (including Ward Member Consultation)

  1. 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

 

Share on facebook Like us on Facebook