Agenda item

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 October, 2011. 

It was reported that the forecast for the financial year 2011/12 was an underspend of £100,000 against an approved net revenue budget of £76.725M.

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 due to high dependency levels and cover for vacancies and long term sickness within older people inhouse residential care

·        an overall forecast overspend on Direct Payments across all client groups due to increase in demand was being reduced by savings on independent and voluntary sector contracts as clients in those schemes moved to Direct Payments

·        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

·        Slippage on developing 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 including voluntary early retirements

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

·        Slippage on recruitment to vacant posts within Older People’s Assessment and Care Management Teams

·        Underspend on Older People’s Day Care due to slippage on vacant posts plus additional grant income

·        Slippage on developing support services for carers

·        Underspend on preserved rights clients within residential care and nursing care

Total expenditure on Agency staff for Adult Services so far was £244,178 compared with an actual cost of £240,864 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 have a significant impact on residential and domiciliary care budgets across Adult Social Care.

Discussion ensued with the following issues raised/clarified:-

-        Council-wide moratorium on non-essential spend - Health and Social Care was classed as essential spend

-        Close working relationship with CQC

-        The budget factored in an element for winter pressures

-        The current budgetary position was as a result of implementation of planned initiatives

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