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, 2014, based on actual income and expenditure to the end of May, 2013. 

It was reported that the forecast for the financial year 2013/14 was an overspend of £1.485 against an approved net revenue budget of £72.558M.   

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 slight overspend due to the cross cutting budgets (workforce planning and training and corporate charges) 

Older People

·         A forecast overspend on In-House Residential Care due to slippage on implementation of budget savings target and recurrent budget pressure on Part III income

·         Increase in Direct Payments over budget

·         Underspend on In House Transport. 

·         Forecast underspend on Enabling Care and Sitting Service, independent Residential and Nursing Care, Community Mental Health, Carers’ Services and slippage on the recruitment to vacant posts within Assessment and Care Management

·         Overspend on independent sector Home Care due to demand over the last 3 months

·         Overall underspend on Rothercare due to slippage in Service Review including options for replacement of alarms

Learning Disabilities

·         A forecast overspend on independent sector Residential Care budgets due to shortfall on Continuing Health Care income

·         Forecast overspend on Day Care due to slippage on implementation of Day Care Review including increase in fees and charges plus recurrent budget pressure on transport

·         Overspend in independent sector Home Care due to slippage on meeting budget savings and high cost placements in independent Day Care

·         High cost Community Support placements resulting in forecast overspend

·         Slippage on developing Supported Living Schemes plus additional funding from Health

·         Efficiency savings on Service Level Agreements for advice and information and Client Support Services

Mental Health

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

·         Minor 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 and increase in demand for Direct Payments

·         Underspend on community Support as clients were redirected to Direct Payments and underspend on Residential and Nursing Care due to slippage in developing alternatives to residential provision

·         Vacant posts within Resource Centre and Occupational Therapists

·         Underspend on equipment and minor adaptations

·         Forecast savings on contracts with Voluntary Sector providers

Safeguarding

·         Forecast balanced budget at present

Supporting People

·         Efficiency savings on subsidy contracts had already been identified against budget

Total expenditure on Agency staff for Adult Services to the end of May, 2013, was £106,930 (no off contract) compared with an actual cost of £40,376 (£1,974 off contract) 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 £59,115 spent up to the end of May, 2013, on non-contractual overtime for Adult Services compared with expenditure of £40,581 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.

Regional benchmarking within the Yorkshire and Humberside region for the final quarter of 2012/13, showed that Rotherham remained below average on spend per head in respect of Continuing Health Care.

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

-           Rothercare – Project plan was now in place and the procurement process commenced

-          Overriding pressure on Direct Payments

-          Review of Direct Payments – everyone who had expressed a wish for Direct Payments had been reviewed.  Quite a number had decided it was not the best option for them and had moved to a new provider

Resolved:-  That the latest financial projection against budget for 2013/14 be noted.