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 for the period ending September, 2014. 

It was reported that the forecast for the financial year 2014/15 was an overspend of £900,000 against an approved net revenue budget of £69.267m, a reduction of £370,000 since the last report.  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 and increasing demand for Direct Payments.  There were also delays on achieving budget savings proposals within Learning Disability Services.

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 latest 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 an underspend due to higher than anticipated staff turnover within the Contract and Reviewing Officers Team and the impact of the moratorium on training budgets

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 together with an underspend within Independent Sector Home Care which had experienced a slight reduction 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 charges 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 underspend

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

·         Underspends in respect of vacancies within Community Support and Carers

·         The forecast included one-off Winter Pressures funding from the CCG to increase Social Worker capacity and prevent delayed discharges from hospital

Learning Disabilities

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

·         Forecast overspend within Day Care Services due to a recurrent budget pressure on external transport plus provision for 7 specialist transitional placements from 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 plus additional demand for Shared Lives was being offset by additional CHC and one-off funding resulting in an overall forecast underspend

·         Delays in meeting approved budget savings on Contracted Services for Employment and Leisure Services had increased the overspend due to extended consultation to the end of the financial year

·         Forecast pressure on changing the provision of residential care to delivering of Supported Living by RDaSH

·         Staff turnover lower than forecast within In-house Residential Care reduced by saving on RDaSH administration support

Mental Health

·         Projected underspend on Residential Care budget due to a reduction of 3 placements since April 2014 plus additional Public Health funding for substance misuse

·         Pressures on employee budgets due to lower than expected staff turnover together with review of night cover arrangements offset by underspend on Direct Payments due to a review of a number of care packages plus additional Public Health funding

Physical and Sensory Disabilities

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

·         Efficiency savings on contracts for Advice and Information

·         Underspend on independent sector homecare as clients migrated to Direct Payment scheme  

Safeguarding

·         Increase in demand for assessments under Deprivation of Liberty Safeguards

·         Offset by higher than anticipated staff turnover plus additional one-off income from Health

Supporting People

·         Efficiency savings on supplies and services budget

Total expenditure on Agency staff for Adult Services to the end of September, 2014, was £88,350 (no off contract), a significant reduction compared with actual expenditure of £238,867 (no off contract) for the same period last year.  The main areas of spend were within Residential Care and Assessment and Care Management Social Work Teams.  There had been no expenditure on consultancy to date.

There had been £92,945 spent up to the end of September, 2014, on non-contractual overtime for Adult Services compared with expenditure of £198,280 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.  Potential risks were the future number and cost of transitional placements from Children’s Services into Learning Disability Services, any future reductions in Continuing Health Care funding as well as the additional demand and cost of assessments under Deprivation of Liberty Safeguards.

Regional benchmarking within the Yorkshire and Humberside region for the third quarter of 2013/14, showed that Rotherham remained below average on spend per head in respect of Continuing Health Care.

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