Issue - meetings

Consideration was given to a report, presented by the Finance Manager (Adult Services), which provided a financial forecast for the Adult Services Department within the Neighbourhoods and Adult Services Directorate to the end of March, 2012 based on actual income and expenditure to the end of May, 2011. 

It was reported that the forecast for the financial year 2011/12 was a balanced budget against an approved net revenue budget of £77.6M.

It was explained that there were a number of underlying budget pressures which were at present being offset by a number of forecast underspends:-

The underlying budget pressures included:

·        an overall forecast overspend within Older Peoples’ Home Care Service mainly due to increased demand for maintenance care within the independent sector

·        pressure on independent home care within Physical and Sensory Disability Services due to continued increase in demand

·        shortfall in respect of income from charges within in-house residential care

·        additional employee costs to cover vacancies and sickness within older people inhouse residential care

·        an overall forecast overspend on Direct Payments mainly within Mental Health and Physical and Sensory Disability Services

·        recurrent budget pressure on Learning Disabilities Day Care transport including income from charges

These pressures had been offset by the following forecast underspends:-

• Forecast net underspend on Older People independent sector residential and nursing care due to an increase in the average client contribution, additional continuing health care funding and  income from property charges.
• Underspend on employee costs within Transport Unit plus  additional income from contracts.
• Forecast underspend within Learning Disabilities residential and nursing care due to slippage on transitions from Children’s Services.
• Additional Continuing Health Care Income plus a underspend on  Supported Living Schemes within Physical and Sensory Disabilities.
• One off slippage on vacant posts as part of restructure/reviews and voluntary early retirements.
• Additional income from health and reduction in care packages after reviews within supported living.
• Underspend on Rothercare Direct due to a reduction in leasing costs.

Total expenditure on Agency staff for Adult Services so far was £40,057 compared with an actual cost of £59,042 for the same period last year.  The main costs were in respect of residential care and assessment and care management staff to cover vacancies and sickness.  There had been no expenditure on consultancy to date.

Resolved:- That the latest financial projection against budget for the year based on actual income and expenditure to the end of May, 2011 for Adult Services be noted.