Agenda item

Consideration was given to a report presented by Mark Scarrott, Finance Manager (Neighbourhoods and 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 December, 2013. 

It was reported that the forecast for the financial year 2013/14 was an overspend of £1.083M against an approved net revenue budget of £72.809M. However, compensatory forecast underspends within the remaining NAS Directorate was reducing the overall forecast overspend to £379,000.  The main budget pressures related to the delayed implementation of a number of budget savings targets including Continuing Health Care funding and implementing the review of In-house Residential Care.  

Management actions continued to be developed by budget managers to bring the forecast overspend in line with the approved cash limited budget.

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

Adults General

·         A slight underspend based on estimated charges including savings on training budgets

Older People

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

·         Recurrent budget pressures in Direct Payments, however, client numbers had reduced since April together with a reduction in the average cost of packages

·         Underspend on In House Transport

·         Forecast underspend on Enabling Care and Sitting Service, Community Mental Health, Carers’ Services, and planned delays on the recruitment to vacant posts within Assessment and Care Management and Community Support plus additional income from Health

·         Overspend on independent sector Home Care due to an increase in demand since April

·         Overspend on independent residential and nursing care due to an additional 73 clients receiving a service than forecast. Additional income from property charges was reducing the overall overspend

·         Forecast savings on in-house day care due to vacant posts and moratorium on non-pay budgets

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

·         Minor underspend in other non-pay budgets due to moratorium on non-essential spend

Learning Disabilities

·         Slight underspend on independent sector Residential Care budgets due to a reduction in placements.  Work was ongoing with regard to Continuing Health Care applications and an internal review of all high cost placements

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

·         Forecast overspend in independent sector Home Care due to increase in demand for Service

·         High cost placements in independent Day Care resulting in a forecast overspend.  Pressured reduced due to additional Continuing Health Care funding and 1 client moving out of the area

·         High cost Community Support placements resulting in forecast overspend

·         Delay in developing Supported Living Schemes plus additional funding from Health resulting in a forecast underspend

·         Efficiency savings on Service Level Agreements for Advice and Information and Client Support Services

·         Lower than expected increase in demand for Direct Payments

·         Additional staffing costs and essential repairs within In-House Residential Care offset by planned delays in recruiting to vacant posts within Assessment and Care Management

Mental Health

·         Projected overspend on Residential Care budget due to a slippage on budget savings target plan to move clients into Community Support Services offset by an underspend in Community Support budget

·         Budget pressure on Direct Payments but additional income recovery was reducing the overall pressure on budget

·         Overspends on employees’ budgets due to lower than staff turnover, additional overtime and agency cover

Physical and Sensory Disabilities

·         Continued pressure on Independent Sector Domiciliary Care due to an increase in demand

·         Further increase in demand for Direct Payments

·         Underspend on Community Support as clients moved to Direct Payments

·         Forecast underspend on Residential and Nursing Care due to planned slippage in developing alternatives to respite provision

·         Reduction in contract with independent sector Day Care provider

·         Underspend on equipment and minor adaptations budgets

·         Forecast efficiency savings on contracts with Voluntary Sector providers and higher than forecast staff turnover

Safeguarding

·         Overspend due to lower than expected staff turnover and use of agency support

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 December, 2013, was £263,206 (no off contract) compared with actual expenditure of £251,010 (no off contract) for the same period last year.  The main areas of spend were within Assessment and Care Management Teams, Residential Care and Safeguarding to cover front line vacancies and sickness.  There had been no expenditure on consultancy to date.

There had been £300,655 spent up to the end of December, 2013, on non-contractual overtime for Adult Services compared with expenditure of £290,284 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.

It was noted that the Winter Pressure funding would be factored into next month’s report.

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