Agenda item

Mark Scarrott, Finance Manager (Adult Services) presented the submitted report which provided a financial forecast for the Adult Services Department within the Neighbourhoods and Adult Services Directorate to the end of March 2010 based on actual income and expenditure to the end of December 2009.

The approved net revenue budget for Adult Services for 2009/10 was £72.9m which included additional funding for demographic and existing budget pressures together with a number of new investments and efficiency savings identified through the 2009/10 budget setting process.

The latest budget monitoring report showed some underlying pressures of £2.1m.  However after taking account of a number of identified savings and management actions achieved to date these pressures were reduced and assuming the assuming the balance of management actions (£85K) were achieved there was a forecast overall net overspend of £69k by the end of the financial year.

The latest year end forecast showed the main budget pressures in the following areas:-

• Home Care as a result of delays in shifting the balance provision to the independent sector (+£612k).  The 70/30 split was achieved at the end of July 2009 and the balance had now moved beyond 70/30.
• Increase in residential and nursing care short stays over and above approved budget for clients with a physical and sensory disability (+£85k)
• Independent sector home care provision for Physical and Sensory Disability clients had increased by an additional 970 hours since April 2009, a further 38 clients were now receiving a service.  This was resulting in an overspend of £378k against the approved budget.
• A significant increase above approved budget in clients receiving a Direct Payment within Physical and Sensory Disabilities and Older People’s Services (+£405), reduced by Social Care Reform Grant Allocation of (-£100k).
• 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 (+£200k)
• Delays in the implementation of budget savings agreed as part of the budget setting process for 2009/10 in respect of meals on wheels (+£290k), laundry (+£141k) and the bathing service (+£40k)
• Continued pressure on the cost of external transport provision for Learning Disability Day care clients (+£82k).

These pressures have been reduced by:-

• Additional income from continuing health care funding from NHS Rotherham (-£222k)
• Delays in the implementation of new supported living schemes within Learning Disability services
• Savings within independent residential care due to an increase in income from property charges (-£668k) and slippage in intermediate care spot beds (-£40k)
• Savings on the reconfiguration of Extra Care housing (-£340k)
• Planned delay in developing rehabilitation and supported living facilities for clients with a physical and sensory disability (-£157k) plus agreed delay in developing respite care provision (-£157k)
• Slippage in recruitment to a number of new posts (-£74) where additional funding was agreed within the 2009/10 budget process.

The Directorate continued to identify additional management actions to mitigate the outstanding budget pressures above.  The majority (93%) of management actions had already been achieved (£1.054m) and were included in the financial forecasts.  These included additional savings on supported living, residential short stay placements, independent residential care costs within Older People services and savings from the decommissioning of in-house residential care.

Members had requested that all future reports included details of expenditure on Agency and Consultancy. This report detailed the monthly spend on Agency for Adult Services.  There was no expenditure on consultancy to date. Total Agency spend from April to November was £329,115.

To further mitigate the financial pressures within the service all vacancies continued to require the approval of the Directorate Leadership Team.

There was also a moratorium in place on uncommitted, non-essential non-pay expenditure.

Budget meetings with Service Directors and managers take place on a monthly basis to robustly monitor financial performance against approved budget including progress on delivering the proposed management actions and to consider all potential options for managing expenditure within the approved revenue budget.

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

• Reference was made to the delays in the implementation of the new supported living schemes within Learning Disability services and concerns expressed in respect of the unspent budget.  Confirmation was given that this was part of the base budget, not a grant and therefore would not be clawed back.
• Concern was raised about the slippage in recruitment and whether this would have an impact of the service provided.  It was confirmed that the posts in question were high level management posts, not front line care and domestic staff.
• It was noted that the current overspends were being offset by underspends which were due to delays in implementing services and funding received in respect of continuing healthcare.  This caused concern to members as once these services had been implemented, how would the overspend be managed.  

Councillor Doyle stated that the NAS management should be congratulated on the budget management and for achieving a successful outcome especially as the full savings from meals on wheels and laundry service had not been achieved in the year.

Resolved:- That the latest financial projection against budget for the year based on actual income and expenditure to the end of December 2009 for Adult Services be noted.