To advise members of the financial position for the Adult Social Care budget within the Joint Commissioning Directorate, and the Strategic Housing budget within the Regeneration Directorate for the period to 31^st January 2010.  The report provides the variations against budget and a projected outturn for the year.

The Committee received a report on the financial position for Adult Social Care and Strategic Housing revenue budgets for the period to 31 January 2010.

The Principal Accountant reported that the overspend for social care currently stood at £2.2m, which was a decrease of £400k from the previous month.  To date, recovery action had achieved savings of £522k as a result of the recovery of £147k from Direct Payment surpluses, £164k from Daycare voids, the use of £196k of capital funding, £10k from a hold on spend and £4k from Independent Living Funding income. A further saving of £1,088k was likely to be achieved.  The total saving for 2009/10 was £1,610k.

She went on to outline changes that had occurred since the report had been written:

• The Interim Director of Integrated Commissioning had met care providers in order to agree the principles for the new standard rate for residential care.  This would see a significant increase in the base rate and would eliminate the requirement for discretionary top-ups.  The rate would be effective from 1 April 2010.  

• A review of the contract with Shaw Healthcare was underway in order to ensure that the existing contract was fit for purpose. This contract had the largest number of residential and daycare voids and it was anticipated that the review would generate efficiencies.

• Recent changes to the conditions for receiving Independent Living Funds.  From 1^st May it would only be possible to claim for those under 65 who were employed for more than 16 hours per week and had a package funded by the Council of over £340 per week. This would reduce the Council’s capacity to raise funds in the future. Existing claims would not be affected.

The Principal Accountant went on to report on changes within the budget setting process for 2010/11:

• All budgets would be split between block and spot contracts.  Service managers would ensure maximum use of block contracts prior to use of the spot market according to assessed needs of the client.

• Budgets would be set according to existing commitments.  This would mean that service managers would have adequate budgets to work with, and monitoring would allow the Council to identify overspends as a result of a lack of funding or increased pressure on clients coming into the service. This would allow for a `credit` budget being applied to each service area which would be the shortfall in funding under each client group for social care.

• Budgets have been set using zero based principles and vacancy factors had been incorporated at 4%.

·         The new virement policy would allow budget movements within set limits, and add justification to the impact of future funding commitments. 

The Associate Director of Integrated Commissioning added that the Supporting People underspend had occurred only because funds had not initially been allocated appropriately. The budget had been treated as outlined in the report in order to ensure that it would be ring fenced.

In reply to a question from a Member, the Associate Director went on to say that, in regard to the, Shaw Healthcare contract, there was an opportunity in November 2010 to negotiate changes as part of a corporate procurement review.  Voids were being followed on a weekly basis, and were running at approximately 43% in day care.  A report was still outstanding from Corporate Services that would allow her to undertake contract variation negotiations.

The Associate Director added that in June 2011 changes would take place regarding non residential care.  These would allow free personal care at home for those assessed with critical and substantial needs, after they had undergone a period of re-ablement. As a result new assessment models and services would have to be put together that would interface with the IT system.  The changes to residential care would not take place before 2014, and would only apply to those who had paid for care for two years.  It was unlikely that many elderly patients would qualify under these rules.

RESOLVED

That;

a)         the report be noted;

b)         the Committee commended the admirable efforts of the Directorate in attempting to reduce the budgetary overspend, but feel that severe budgetary pressure will continue without an increase in the base budget;

c)         the Committee noted with regret the decision to top slice the budget of this demand led service by 6%;

d)         The Committee noted once more the delay in the provision of suitable accounting mechanisms in the Frameworki package to accurately cost services and to closely monitor expenditure;

and;

e)         the Committee expressed concern at the delay within Corporate Services in producing a report by the end of the financial year 2009/10 which would facilitate contract negotiations with Shaw Healthcare.