Agenda Item No
The Vale of Glamorgan Council
Cabinet Meeting 3rd September 2012
Report of the Leader
Revenue Monitoring for the period 1st April 2012 to 31st July 2012
Purpose of the Report
1. To advise Cabinet of the progress of revenue expenditure for the period 1st April, 2012 to 31st, July, 2012 and future arrangements for budget monitoring.
1. That the position with regard to the Authority’s 2012/13 Revenue Budget be noted.
2. That the new budget monitoring arrangements be approved.
Reasons for the Recommendations
1. That the members are aware of the projected revenue outturn for 2012/13.
2. That the new budget monitoring arrangements are implemented.
2. Council on the 7th March 2012 (minute no 951 and 949 respectively) approved the Revenue Budget and Housing Revenue Account budget for 2012/13. The Budget information is subdivided by cabinet members’ portfolio within each Directorate.
Relevant Issues and Options
3. The Revenue Budget at Appendix '1' has been amended to take account of the restructured Directorates; there is no overall financial effect to the Authority
4. The projected out turn for the 2012/13 Revenue Budget is shown in comparison with the Revenue Budget at Appendix ‘1'. The forecast is for the Council to have a balanced Revenue Budget.
5. The forecast is for an estimated balanced budget on the Housing Revenue Account.
6. The current forecast for Social Services is a balanced budget.
7. Children and Young People's Services - There continues to be pressure on the Children’s placements budget. Any increase in the number of children becoming looked after by the Council over the year could significantly impact on the service
8. Adult Services - There is continuing pressure on the Community Care Packages budget. This budget is extremely volatile and can be adversely affected by outside influences such as last years introduction of the First Steps Initiative by the Welsh Government which capped charging for non residential services to £50 per week. It has previously been reported that the impact of the £50 cap was approximately £1.4m. The impact will continue to be monitored as the year progresses and discussions will continue with the Welsh Government regarding the issue. Another issue to affect the year end position will be the 2012/13 fee we set in respect of personal care costs for residents placed by the Council in residential and nursing homes provided by the independent sector. Currently, 2% is included in the budget.
9. The Social Services Directorate is committed to achieving a balanced budget in 2012/13. A report updating progress on the Social Services Budget Programme was presented to Cabinet on 30th July 2012 and Cabinet now requires monthly reports. The corporate programme board and project teams overseeing the plan will continue to develop it further and ensure delivery.
10. There is pressure on this budget from the Lifelong Learning Education and Training Services. The receipts from the Government Work Programme are not achieving the target to date and this is currently under review in order to achieve outturn within budget by year end.
11. All Other Services may come under financial pressure during the year, however at this time they are expected to out turn on target.
12. For the past number of years regular (approx. monthly) budget monitoring reports have been brought to Cabinet presenting the overall position. The majority of these are noted and no further recommendations made. Regular budget monitoring reports are also taken to Scrutiny Committees. It is proposed in the future that as scrutiny and overview is a key function of the Scrutiny Committees, regular budget monitoring reports are only taken to Scrutiny Committees. Corporate Resources would be the lead Committee and responsible for scrutiny of the overall position (as now). Any issues or concerns arising would be referred to Cabinet.
13. Individual Cabinet Members would continue to receive budget monitoring information on services within their portfolios and remain responsible for ensuring expenditure is contained within budget and cost effective services are delivered. Cabinet would also continue to receive a half yearly report on the budget position (based on spend to the end of September); the annual outturn report; and also the revised estimates report prepared at the same time as the initial budget proposals.
14. This change should strengthen the role of the scrutiny function with regards to financial control and clarify the respective responsibilities of the executive and scrutiny.
Resource Implications (Financial and Employment)
15. As detailed in the body of the report
Sustainability and Climate Change Implications
16. There are no direct implications arising from the report.
Legal Implications (to Include Human Rights Implications)
17. There are no legal implications
Crime and Disorder Implications
18. There are no crime and disorder implications
Equal Opportunities Implications (to include Welsh Language issues)
19. There are no equal opportunity implications
20. 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
21. This report is for executive decision by the Cabinet
Consultation (including Ward Member Consultation)
22. Each Scrutiny Committee will receive a monitoring report on their respective areas. This report does not require Ward Member consultation.
Relevant Scrutiny Committee
Robert Ingram (Principal Accountant) (01446 709252)
The Head of Strategic, Planning and Performance (Learning and Development), Directors of Visible Services and Housing, Development Service, Social Services and Resources have been consulted on the contents of this report
SIAN DAVIES DIRECTOR OF RESOURCES