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 31st March, 2015, based on actual income and expenditure to the end of May, 2014. 

It was reported that the forecast for the financial year 2014/15 was an overspend of £1.412m against an approved net revenue budget of £69.683m.  The main budget pressures related to budget savings from previous years not fully achieved in respect of additional Continuing Health Care Funding plus recurrent pressures on demand for Direct Payments.

Management actions were being developed with the aim of containing expenditure within the approved cash limited budget by the end of the financial year.

The first financial forecast showed there remained a number of underlying budget pressures. The main variations against approved budget for each Service area were as follows:-

Adults General

·         This area included the cross cutting budgets of Workforce planning and training and corporate charges and was forecasting a balanced budget at present

Older People

·         Recurrent budget pressure on Direct Payments over budget.  Client numbers had increased since April together with an increase in the amount of a number of care packages

·         Forecast underspend on Enabling Care and Sitting Service based on current level of Service was offsetting an overspend within Independent Sector Home Care which had experienced a slight increase in demand since April

·         Overspend on Independent Residential and Nursing Care due to delays in achieving the savings target for additional continuing health care (CHC) income.  Additional income from property changes was reducing the overall overspend

·         Planned delays on recruitment to vacant posts within Assessment and Care Management plus additional income from health resulting in an overall underspent

·         Overall underspend on Rothercare due to savings on maintenance contracts on the new community alarm units

·         Underspends in respect of vacancies within Community Support and Carers

Learning Disabilities

·         Independent sector Residential Care budgets forecasting an underspend due to additional Health funding.  Work continued on reviewing all CHC applications and high cost placements

·         Forecast overspend within Day Care Services due to recurrent budget pressure on external transport plus three transitional placements form Children’s Services.  This was being reduced slightly due to staff turnover higher than forecast

·         Overspend in Independent Sector Home Care due to increase in demand

·         New transitional placements from Children’s Services into Supported Living reduced by one-off grant income plus additional demand for Shared Lives resulting in an overall forecast overspend

·         Delays in meeting approved budget saving on Contracted Services for Employment and Leisure Services due to extended consultation

·         Staff turnover lower than forecast within In-house Residential Care

Mental Health

·         Projected underspend on Residential Care budget due to a reduction of three placements since April 2014

·         Underspend in Community Support due to delays in clients moving from residential care

·         Pressures on employee budgets due to lower than expected staff turnover plus review of night cover arrangements. Reduced by underspend on Direct Payments due to a review of a number of care packages

Physical and Sensory Disabilities

·         Further increase in demand for Direct Payments in addition to a recurrent budget pressure and forecasting an overspend

·         Additional CHC contributions and a reduction in average spend on Domiciliary Care resulting in a forecast underspend

·         Minor underspend on residential and nursing care due to a net reduction in placements since April 2014, plus minor savings on independent day care contract

Safeguarding

·         Including Safeguarding Assessment and Social Work Teams together with Domestic Violence and Court of Protection forecasting a balanced budget

Supporting People

·         Efficiency savings on supplies and services budget

Total expenditure on Agency staff for Adult Services to the end of May, 2014, was £5,544 (no off contract) compared with actual expenditure of £106,930 (no off contract) for the same period last year.  The main areas of spend were within Assessment and Care Management Social Work Teams.  There had been no expenditure on consultancy to date.

There had been £14,480 spent up to the end of May, 2014, on non-contractual overtime for Adult Services compared with expenditure of £59,115 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 took place on the budget pressures affecting direct payments and mental health services.

Resolved:- That the latest financial projection against budget for 2014/15, as now reported, be noted.