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 January 2010.

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 previous budget monitoring reports for Adult Services had identified  underlying pressures of £2.3m. However after taking account of a number of identified savings and management actions achieved these pressures had reduced and there was a forecast overall net overspend of £42k by the end of the financial year. 

The Directorate continued to review planned spend to identify any further potential opportunities to mitigate the remaining forecast overspend. 

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 of provision to the independent sector (+£623k). 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 (+£57k).
• Independent sector home care provision for Physical and Sensory Disability clients had increased by an additional 1110 hours since April 2009, a further 74 clients were now receiving a service. This was resulting in an overspend of £372k against the approved budget.
•  A significant increase above approved budget in clients receiving a Direct Payment within Physical and Sensory Disabilities and Older Peoples Services (+£473k), 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 (+£318k), laundry (+£160k) and the bathing service (+£40k).
• Increase in costs of Occupational Therapist contacts (+£120k).
• Continued pressure on the cost of day care  transport provision for Learning Disability Day care clients reduced by planned delays in recruitment to vacant posts (+£49k).

However, the above pressures had been reduced by :-

•  Additional income from continuing health care funding from NHS Rotherham (-£418k).

·        Overall underspend within Learning Disabilities Supported Living schemes mainly due to planned delays in the implementation of new schemes  (-£189k).

·        Savings within independent residential care due to an increase in income from property charges (-£709k) 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).

·        Underspend within In house Transport Unit due to a reduction in vehicle leasing costs and additional income (-£150k).

·        Slippage in recruitment to a number of new posts (-£76k) 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 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 2009 to January 2010 was £382,929.

Resolved:- That the latest financial projection against budget for the year based on actual income and expenditure to the end of January 2010 for Adult Services be noted.