Agenda item

Mark Scarrott, Service Accountant, to report.

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 July, 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 and additional income from property charges

·        Underspend on employee costs within Transport Unit plus income from increased activity

·        Forecast underspend within Learning Disabilities residential and nursing care due to slippage on transitions from Children’s Services and additional income from health

·        Slippage on developing on  Supported Living Schemes within Physical and Sensory Disabilities

·        Review of care packages within Learning Disabilities Supported Living resulting in efficiency savings with external providers and additional funding from health

·        One off slippage on vacant posts as part of restructure/reviews and voluntary early retirements

·        Forecast underspend within Mental Health in respect of slippage in a number of Service Level Agreements with external providers as clients moved to Direct Payments therefore reducing the overall pressure on Direct Payments budgets

·        Underspend on Rothercare Direct due to slippage on vacant posts and a reduction in expenditure on equipment including leasing costs

Total expenditure on Agency staff for Adult Services so far was £152,117 compared with an actual cost of £144,080 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.

Careful scrutiny of expenditure and income together with close budget monitoring remained essential to ensure equity of service provision for adults across the Borough within existing budgets.  Any future reductions in continuing health care funding would had a significant impact on residential and domiciliary care budgets across Adult Social Care.

Discussion ensued on the report with the following issues raised:-

-        Were community groups receiving the correct support?

-        Overspend on Older People’s Home Care Service – continual pressure

-        Increase in the number of older people going into residential care

-        More people aged over 85 years presented at hospital with high level support needs

Resolved:-  (1)  That the latest financial projection against budget for the year based on actual income and expenditure to the end of July, 2011 for Adult Services be noted.

(2)  That the Director of Health and Wellbeing raise with the Director for Commissioning, Policy and Partnerships the issue of support being given to community groups to enable them to coincide with Council priorities and maximise their influence.