Report FSD19021

The Committee considered a report providing the budget monitoring position for 2018/19 based on activity up to the end of December 2018.

The Committee noted that there was a projected underspend of £13,000 on the controllable budget.  Full year effect cost pressures of £2,064,000 in 2019/20 were also noted.  Members further noted the request for the drawdown of funding Central Contingency in respect of the Adult Social Care Support Grant (£744,000) and the Winter Pressures Grant (£1,190,000).

A Member suggested that in order to enable the Committee to better understand the figures, in future it would be helpful more detailed information surrounding the services being provided within the available budget.

A Member expressed concerns surrounding the possible reduction in the availability of day center services.  The Interim Chief Executive responded by highlighting that direct payments provided the flexibility for clients to decide on their own care package and it was for clients to decide on the services on which they wanted to use their direct payment.  Members noted that the increasing cost of transport and day centers may act as a disincentive for many of the current services users.  This would lead to an unsustainable decline in demand with the services no longer being financially viable.  As this would ultimately limit the choice available to the few who did want to use day centers it could be argued that there was a role for the Local Authority to play in ensuring that the market was sustainable.  The Interim Chief Executive confirmed that through the Commissioning process the Local Authority sought to sustain and develop the market.  Officers were looking at ways to encourage the development of the private market through the provision of advice around key actions that could be taken.  The Interim Chief Executive agreed to provide further information about the work being done around the development of the market following the meeting.

Citing the example of ‘Planned LD savings from management action’, a Member expressed concern about planned savings from management action being included in the budget monitoring figures as such savings may not be delivered.  The Head of Adult Social Care, Health and Housing Finance confirmed that some of the savings had been achieved and it was acknowledged that whilst a plan was in place for the delivery of the savings there did remain some uncertainty.  The Interim Director of Adult Social Care confirmed that work was ongoing to ensure that savings identified through management action were realistic and deliverable.  Members requested that the Financial Outturn Report provided detail of the financial effect of any management action taken in the 2018/19 financial year as it was important for Members to know and understand the impact of any action that was taken, both on the budget and on service users.

The Chairman requested that the Committee be provided with the information it had previously requested about the financial modelling tool as it was important for Members to receive this feedback.

A Member queried the £31,000 credit relating to Day Centre rent income and the Head of Adult Social Care, Health and Housing Finance agreed to provide clarification following the meeting.

The Committee congratulated the Interim Chief Executive and the staff within Adult Social Care and Health on the projected £13,000 underspend on the controllable budget.

RESOLVED: That the Portfolio Holder be recommended to:

1. Note the projected underspend of £13,000 on the controllable budget, based on information as at December 2018; and

2. Agree to the request for funding from Central Contingency, as set out in section 3.6 of the report, and refer to the Executive for approval.