Councillors and committees

Agenda item

BUDGET UPDATE - JULY 2013

Purpose of the report:  Scrutiny of Budgets/Performance Management

 

This report provides an opportunity for the Committee to scrutinise the Adult Social Care budget.

Minutes:

Declarations of interest: None.

 

Witnesses: Paul Carey-Kent, Senior Finance Manager, Change & Efficiency

Neill Moore, Senior Principal Accountant

Sarah Mitchell, Strategic Director, Adult Social Care

 

Mel Few, Cabinet Member for Adult Social Care

 

Key points raised during the discussion:

 

1.    Officers outlined the financial position as of July 2013. The Committee was informed that the Adult Social Care budget was complex, due to it being demand driven and required to meet significant saving challenges. It was highlighted that savings of £24 million for 2013/14 were still to be met. Officers commented that the actions to meet these savings challenges would begin to take effect as of September 2013. The Directorate would then be able to make a judgement as to whether further action was required.

 

2.    The Committee asked for clarification regarding Whole Systems funding, it was explained that this was funding the NHS was required to pass onto the local authority.

 

3.    The Committee invited the Cabinet Member to comment on the decisions he had taken on 4 September 2013 in relation to the Invest to Save fund. The Committee was informed that the decision related to the development of an IT portal that would enable assessment teams to identify and access placements. It would also be linked to the Surrey Information Point, allowing a maximisation of the use of social capital and beds already available.

 

4.    Members asked for clarification on the individual actions that would account for the savings in relation to social capital being made. The Cabinet Member explained that social capital was making use of resources both in the voluntary sector and community to meet need, and that part of implementing this would be to embed it within the assessment process.

 

5.    The Committee was informed that work was being undertaken in conjunction with the community to identify where there were resources to meet people’s needs. Officers commented that user groups had initially identified social capital as a means of empowering them. It was recognised that there was risk attached to the savings being made through social capital.

 

6.     The Cabinet Member expressed the view that of the overall saving target of £46 million in 2013/14, £5 million was at risk of not being achievable. The Committee challenged this view as optimistic, and commented that the projected budget should reflect a more realistic outcome.

 

7.    Members queried whether £9.5 million overspend forecast in the Older People budget for 2013/14 was achievable given overspend was £6.1 million in the first financial quarter. Officers commented that the majority of savings connected to social capital were in the Older People budget, and that the implementation of this management action plan through the year would impact on the current rate of spend.

 

8.    The Committee expressed the view that the budget position of the Directorate was still of serious concern, and that there should be recognition of the need to prioritise the safeguarding of vulnerable adults and older people.

 

9.    Members asked for clarification around the reclaiming surplus balances for direct payments. The Committee was informed that the surplus balance was created as a result of service users spending less than the originally assessed amount identified. Officers expressed the view that this was due to service users being better at identifying their individual needs, and their decision-making often lead to a reduction in costs. It was clarified that direct payments were encouraged only where it was felt appropriate for a service user.

 

Recommendations:

 

·         That -- in light of the Committee’s serious concerns about the possibility of budget overspend -- the Adult Social Care budget for this year be reviewed again to reflect increased demand on the services.

 

Action by: Cabinet

 

Actions/further information to be provided:

 

None.

 

Committee Next Steps:

 

None.

 

Supporting documents: