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, 2013, based on actual income and expenditure to the end of December, 2012. 

It was reported that the forecast for the financial year 2012/13 was an underspend of £182,000 against an approved net revenue budget of £71.915M.  At the end of Quarter 3, the underspend represented -0.25% of the total budget available. 

The latest year end forecast showed a number of underlying budget pressures which were being offset by a number of forecast underspends:-

Adults General Management and Training

·         A forecast overspend mainly due to recurrent pressures on ICT budgets

Older People

·         A forecast overspend on In-House Residential Care, further increase in demand for Direct Payments and In House Transport

·         Offset by underspends within Enabling Care, Independent Sector Home Care, independent residential and nursing care, Community Mental Health, Carers’ Services and slippage on Assistive Technology and recruitment to vacant posts within Assessment and Care Management

·         Savings now being realised from the Review of Day Care Provision

·         Forecast shortfall in Rothercare income plus additional staffing costs

Learning Disabilities

·         A forecast overspend on independent sector Residential Care budgets due to increase in clients and average cost of care packages plus loss of income from Health

·         Underspends within Supported Living Schemes due to Continuing Health Care income, use of one-off grant funding and vacant posts

·         Recurrent budget pressure on Day Care Transport

·         Increase in demand for Direct Payment over and above budget

·         Forecast overspend in independent sector Home Care

·         3 new high cost placements in Independent Day Care

·         Increase in Community Support placements

·         Use of Health funding to support overspend on SYHA residential care costs

·         Saving on premises costs and slippage on vacant posts

Mental Health

·         Projected slight overspend on Residential Care budget and budget pressure on Direct Payments offset by savings on Community Support Services

·         Overspends on employees’ budgets due to unmet vacancy factor and use of agency staff

Physical and Sensory Disabilities

·         Continued pressure on Independent Sector Domiciliary Care, loss of Continuing Health Care funding for one client being challenged, increase in demand for Direct Payments and forecast overspend on Residential and Nursing Care offset by slippage in developing alternatives to residential provision

·         Offset by underspend on Crossroads as clients were redirected to Direct Payments

·         Vacant posts within Resource Centre and Occupational Therapists

·         Underspend on Equipment budget and savings due to vacant part-time post at Grafton House

·         Review of contracts with independent Day Care providers

·         Forecast savings on contracts with Voluntary Sector providers

Safeguarding

·         Underspend on employee budgets due to vacant post plus additional forecast income from Court of Protection fees

Supporting People

·         Efficiency savings on subsidy contracts offset against Commissioning savings targets not reported within Adult Services

Total expenditure on Agency staff for Adult Services so far was £254,984 compared with an actual cost of £255,383 for the same period last year.  The main costs were in respect of Residential and Assessment and Care Management staff to cover vacancies and sickness.  There had been no expenditure on consultancy to date.

There had been £290,284 spent up to the end of December, 2012, on non-contractual overtime for Adult Services compared with expenditure of £243,927 for the same period last year.

Careful scrutiny of expenditure and income and close budget monitoring remained essential to ensure equity of Service provision for adults across the Borough within existing budgets particularly where the demand and spend was difficult to predict in a volatile social care market.  A potential risk was the future number and cost of transitional placements from Children’s Services into Learning Disability Services together with any future reductions in Continuing Health Care funding.

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

·         Overspend in relation to Direct Payments;

·         Since the Quarter 2, there had been a reduction of £2.1 millions, due to the realignment of budgets for the former RBT ICT and Affordability budgets.

Resolved:-  That the latest financial projection against budget for 2012/13 be noted.