Agenda Item No 6

The Vale of Glamorgan Council

Healthy Living and Social Care Scrutiny Committee: 13th  March 2017

Report of the Director of Social Services

Revenue and Capital Monitoring for the period 1st April 2016 to 31st January 2017

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 2016 to 31st January 2017 regarding those revenue and capital budgets which form this Committee's remit.

Recommendations

It is recommended that:-

1. The position with regard to the 2016/17 revenue and capital monitoring is noted.
2. The progress made in delivering the Social Services Budget Programme is noted.

Reasons for the Recommendations

1. That Members are aware of the position with regard to the 2016/17 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

2. Cabinet on 14th November 2016 (minute no C3362 and C3363 respectively) approved the revised Revenue and Capital Budgets for 2016/17. Reports monitoring expenditure are brought to this Committee on a regular basis.
3. In setting the Social Services budget for 2016/17, the use of £970k from the Social Services Fund was approved.

Relevant Issues and Options

Social Services Revenue

4. The projected outturn for the Social Services Directorate is an adverse variance of £300k when compared to the amended budget.
5. 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.
6. Children and Young People's Services - It is projected that this service will outturn with an underspend of £400k.  Work has been ongoing to ensure that children are placed in the most appropriate and cost effective placements.  This has included our success in significantly reducing the number of children placed in residential care, from an average of 23 in 2014/15 to a current average of 10.  It should however be noted that the number of Looked After Children has increased during the course of the year, placing considerable pressure on our in-house fostering resources and increasing our reliance on independent fostering placements.  Given this pressure and the complexity of some of these children, the outturn position could fluctuate with a change in the number of Looked After Children and/or their need for independent fostering or residential placements.
7. Adult Services - It is projected that the service will outturn with a £700k overspend at year end. The Community Care Package budget could outturn with a variance of up to £900k by year end. The final outturn is difficult to predict due to a number of factors, however as at 31st January 2017, deferred income received had exceeded the annual budget for 2016/17 and therefore a favourable variance of £200k has been included as part of the Community Care package heading. It should be noted that this is one off funding and is not guaranteed in future years. It is also anticipated that there will be a £200k underspend elsewhere in the budget due to early implementation of Reshaping Services savings and also by maximising the use of the Intermediate Care Fund (ICF) grant.
8. The service will strive to manage growing demand and try to mitigate this position and some initiatives may be funded via regional grants in the current financial year. It is proposed that any shortfall at year end is funded from the Social Services Legislative Changes fund.

Leisure Services Revenue

9. Leisure Services - This budget is currently breaking even and this is also the anticipated position at year end.

Savings Programme

10. In relation to the Social Services Programme, the Directorate is currently required to find savings totalling £2.257m 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.

11. Appendix 2 provides an update on the individual areas of saving within the Social Services Budget Programme.
12. Within Adult Services, £100k of the full year saving generated from the Hafod homes transfer has been offset against the £300k saving for Residential Services. Currently, there are no other approved plans in place to find the remaining £200k of this saving. Further consideration will have to be given to the way in which the saving can be fully achieved. With regard to the Care Package Budget Reduction, while there is significant pressure on this budget, schemes have been put in place to deliver savings in this area by transferring domiciliary care clients to direct payments, by putting in place additional reablement capacity and by establishing a review team.
13. 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. Cabinet 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. Included in Appendix 2, the Reshaping Services logo has been shown against specific projects which have a specific alignment with the objectives of the Reshaping Services strategy. The whole of the Social Services Budget Programme reports into the Reshaping Services governance arrangements.
14. The Corporate Programme Board and project teams overseeing the Plan will continue to monitor and ensure its delivery. As in previous years, ongoing progress updates will to be reported to Committee as part of the overall financial monitoring report for the Directorate.

Capital

15. Appendix 3 details financial progress on the Capital Programme as at 31st January 2017.
16. Rhoose Road Health & Safety Works - The allocation of £24k will no longer be required for this scheme and it has been requested that £24k is carried forward to 2017/18 and is utilised for further Fire Precaution works across Social Services homes.
17. Romilly Mess Room - It has been requested that £65k is carried forward into 2017/18. The scheme has been delayed due to on-going negotiations with Welsh Water and Planning to redesign the foul water system from the original design. Preparatory works will be completed this financial year.
18. Barry and Penarth Leisure Centre Upgrade Changing Rooms - It has been requested that £104k is carried forward into 2017/18. The process of appointing consultants to undertake this scheme is underway and design work is due to commence imminently, with a planned on site start date of November 2017.
19. Colcot Pitches - It has been requested that £307k is carried forward into 2017/18. Work has commenced on site, however, the scheme is not expected to be completed until May 2017 and the progress of works will be subject to weather conditions.
20. Parks and Grounds Maintenance Asset Renewal - A scheme within the Parks and Ground Maintenance Asset Renewal budget, namely Alexandra Park / Windsor Gardens New Entrances, requires further investment than originally planned. It has therefore been requested to slip the £14k budget into 2017/18 in order to use it as match funding for a Heritage Lottery Funding bid, which will enable the full scheme to be completed.
21. Appendix 4 provides non-financial information on capital construction schemes. From this Appendix, it can be seen that most of the schemes are now complete.

Resource Implications (Financial and Employment)

22. 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

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

Legal Implications (to Include Human Rights Implications)

24. There are no legal implications.

Crime and Disorder Implications

25. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

26. There are no equal opportunity implications.

Corporate/Service Objectives

27. 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

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

Consultation (including Ward Member Consultation)

29. 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

Officers Consulted

Director of Social Services

Responsible Officer

Phil Evans, Director of Social Services