Agenda item

Mark Scarrott, Finance Manager (Adult Services) presented the submitted report in respect of the Adult Services Revenue Outturn Report 2009/10.

The 2009/10 approved cash limited budget was £72,692,857, and the net Outturn for the service for 2009/10 was £72,608,110.  This resulted in an overall net overspend of £84,747 (-0.12%).  This represents an increase in the underspend compared with the last budget monitoring report largely due to additional income from continuing health care and a further underspend on extra care housing.

The key variations within each service area are as follows:

Commissioning and Partnerships (+£96k)

There were a number of under and overspends within this service area, mainly around the income budget pressures in respect of performance and planning posts transferred from Neighbourhoods.  These were reduced by a number of management actions including, non-recruitment to vacant posts, a general moratorium on non pay budgets and maximising grant funding.

Assessment & Care Management

Older People (Independent) (-£386k)

The overall underspend within this service area was in respect of a number of vacant social work posts, an overall underspend on the Intermediate Care pooled budget (-£61k) and an underspend on independent sector residential and nursing care due to additional income from health and increased income from property charges (-£684k).  However, the underspend was reduced by an overspend on the independent sector Home Care budget (+£192k) due to increased demand together with an increase in demand for Direct Payments (+£195k).

Physical and Sensory Disabilities (+£146k)

The main pressures during the year were a continued increase in both number (1110 hours) and cost of independent home care placements (+£312k) together with a further increase in demand for direct payments (+£170k).  These overspends were reduced further by management actions including  the delayed implementation of new investments to establish residential and respite care services within the borough (-£314k)

Safeguarding (+£64k)

The overspend on this head of account was due to agency staff costs and a loss on income from NHSR.

Independent Living (-£61k)

The underspend within this head of account was a result of the reconfiguration of Rothercare Direct and a recurrent underspend on Extra Care Housing provision after a review of the service.

Health and Well Being

Older People (In-House) (+£653k)

The main overspend during the year was within In-House Home Care services (+£514k) due to the initial delays in the implementation of shifting provision to the independent sector including an overspend on employee costs due to contracted hours being greater than hours of service delivered.  There were further overspends within in-house residential care due to the additional costs incurred as part of the de-commissioning of a number of former homes (+£280k) plus the final costs of closure of the laundry (+£166k) and meals on wheels services (+£305k) agreed as part of the 2009/10 budget setting process.

These overspends were reduced by underspends within Extra Care Housing (-£360k), Day care (-£118k) and Transport (-£158k) due to the general moratorium on vacant posts plus a reduction in vehicle running and leasing costs.

Learning Disabilities (-£589k)

The overall underspend within the service was mainly as a result of delays in start up of new supported living schemes (-£195k), increased income from Continuing Health Care funding (-£233k) and underspends within day care (-£138k) as a result of a review of the service.

Mental Health Services

The main pressures during the year were within residential care due to an increased number of placements during the first six months of the year plus a continued increase in demand for direct payments over and above budget.

These pressures have been offset by non recruitment to vacant posts and the achievement of a number of efficiency savings after reviewing a number of service level agreements with independent and voluntary sector providers.

Management Actions

A total of £1.1m of management actions were identified earlier in the year tomitigate the then budget pressures, 93% of which were achieved by the end of the year.

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

• Concerns were raised about the overspend in respect of Safeguarding and that it was partly due to the loss of income from NHS Rotherham, who were not contributing to Safeguarding
• Reference was made to the 20% limit with respect to underspends that could be carried forward and a query was made as to who had made the decision to set this limit.  It was confirmed that this was agreed by Cabinet 2-3 years previously.
• Reference was made to decommissioning costs and it was queried what this related to.  It was confirmed that this was in respect of the withdrawal of meals on wheels and laundry service and costs associated with the closure of existing homes prior to the buildings being handed back to the council’s asset management function.
• It was noted that the underspend relating to older people (independent) was due to the number of vacant social work posts.  An explanation was sought as to the current position relating to this.  It was confirmed that the number of vacancies had previously been 22, but that it was currently only 4-5 which was considered to be due to normal staff turnover, and did not raise any concerns as far as service delivery was concerned.
• A comment was made about the overspend relating to direct payments and it was queried why this was occurring, if providing direct payments was meant to be cheaper than providing services directly.  It was confirmed that as service users were moving across to direct payments, Council services were reducing rather than ceasing completely, therefore meaning that they were dual running for a period of time.  This was therefore having a negative effect on the budget. 
• Reference was made to the outsourcing of home care and how successful it had been.  It was suggested and agreed that a comparison be made available in respect of in-house care and independent care and brought back to a future meeting of the Panel.

Resolved:- That the unaudited 2009/10 Revenue Outturn Report for Adult Services be received and noted.