Agenda item

10.20 am

Mark Scarrott, Finance Manager (Adult Services) presented the submitted report which provided information to members in respect of the 2008/09 outturn position plus the latest performance and monitoring against the 2009/10 revenue budget as part of the first stage of the budget setting process for 2010/11.

The 2008/09 approved cash limited budget of £69,738,124 included an additional one-off budget allocation approved by Cabinet, of which £997,000 was to address service pressures reported earlier in the financial year.

The net Outturn for the service for 2008/09 was £69,697, 361, an overall net underspend of £40,763 or -0.06%.

The main variations from budget were:-

• Overall overspend within Home care services due to delays in the implementation of shifting the balance of provision to the independent sector to 65%.  As at 31^st March the market share in the independent sector was 58%.
• Overspend on Direct Payments within Physical and Sensory Disabilities and Mental Health
• Underspend within Extra Care Housing including a review of existing resources
• Underspend on Intermediate Care pooled budget.
• Additional income from continuing health care income and delays in the start up of supported living schemes within Learning Disability Services.

The latest budget monitoring report for Adult Services showed some underlying pressures of £1.1m, however assuming the achievement of management actions it was currently forecast that there would be an overspend of £128k by the end of the financial year.  The Directorate Management Team were still seeking additional efficiency measures to bring the year end position into balance.

The latest year end forecast showed there were underlying  budget pressures on Home Care due to delays in shifting the balance of provision to the independent sector.  There had been a significant increase in clients receiving a Direct Payment within Physical and Sensory Disabilities and Older Peoples Services.

Additional one-off expenditure was being incurred in respect of the costs of boarding up, removal of utilities and security costs at the former residential care homes prior to them transferring to the Council’s property bank.  Other budget pressures were due to delays in the implementation of budget savings agreed as part of the budget setting process for 2009/10 in respect of meals on wheels and laundry and the bathing service.

There were a number of underlying demographic and existing budget pressures within the service including delays in achieving a number of savings options approved as part of the 2009/10 budget setting process.  These continue to be monitored and reviewed on a monthly basis including the development of management actions in order to reduce the projected overspend with the aim of containing expenditure within approved budget.

There were currently a number of cross cutting Value for Money Service Reviews as part of the budget setting process which may also impact on Adult Services.

The Council had an overall funding gap of £11.5m for 2010/11 in its Medium Term Financial Strategy, which included a number of investments and demographic pressures totalling £2.9m and savings of £680k for Adult Services.  In addition further investments had been identified through the Joint Strategic Needs Assessment (JSNA) of £2m.

A question and answer session ensued and the following issues were raised:-

• Was the council any closer to meeting the 65% shift in the balance towards the independent sector?  It was confirmed that 65% was reached in June and had increased further to 70% in July.
• Reference was made to the £128k overspend and it was confirmed that measures were being taken to identify efficiencies to bring this figure down in order to achieve a balanced budget.  However next year there would be a further £5m of budget pressures which would require more efficiencies to be found.
• Whether the quality of services delivered in home care services was being monitored.  It was confirmed that the CQC had recognised that we were using national information to compare the quality of care delivered.  In addition contracting teams visit independent establishments to ensure that the quality is of the standard expected.

Resolved:- That the report be received and noted.