Revenue and Capital Budget Monitoring Report- Adult Social Care Period 6 01-04-22 to 16-09-22
North Lanarkshire Council · 15 November 2022
Back to Adult Care and Social Work Committee — 15 November 2022 and its agenda
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North Lanarkshire Council Report Adult Care and Social Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref RM/MD/NL/LH Date 15/11/22 Revenue & Capital Budget Monitoring Report: Adult Social Care Period 6: 01/04/2022 to 16/09/2022 From Morag Dendy, Head of Planning, Performance and Quality Assurance E-mail LynchN@northlan.gov.uk Telephone Nicola Lynch, Business Finance Manager, 07581007187 Executive Summary This report provides a summary of the revenue financial performance of the Health & Social Care Partnership (H&SCP) – North Lanarkshire (Adult Social Care & Housing) and the financial performance of the Social Work capital programme. The report incorporates the period 1 April 2022 to 16 September 2022 (Period 6) and includes projected outturn forecasts for the financial year ended 31 March 2023, with major outturn variances highlighted and explained per the approved Financial Regulations. H&SCP – North Lanarkshire (Adult Social Care & Housing) has a gross revenue expenditure budget of £244.192m and is currently projecting an underspend of £8.624m. This represents a movement of £3.790m from the position reported to Committee on the 6 September (Period 4). This movement is mainly in relation to an increase in the projected underspend within employee costs, which is the result of slippage in the recruitment of posts against the winter planning business case. The other significant movement is within payments to other bodies, the increased underspend is related to the Care at Home budget, which is linked to the difficulty in recruiting posts across the sector, leading to delays in care plans being implemented. The Social Work capital programme has a total budget of £2.504m and is currently projecting an underspend of £0.239m. Recommendations It is recommended that the Adult Care and Social Work Committee: (1) Acknowledge the revenue financial outturn position, (2) Acknowledge the capital financial outturn position. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
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1. Background 1.1 The Council approved its General Revenue Fund Budget on 17 February 2022, and the Integration Joint Board (IJB) approved its Financial Plan on 23 March 2022. The approved Gross Expenditure Budget for the H&SCP – NL (Adult Social Care and Housing) is £244.192m. 1.2 2022/23 is the second year of the Council’s five-year capital investment programme. The programme approved funding of £2.200m for Social Work for the current year. Net reprofiling of £0.304m, from 2021/22, has resulted in a revised budget of £2.504m, as demonstrated by Appendix 6. 2. Report Revenue: Analysis of Significant Variances 2.1 Within Employee costs, the Service currently anticipates an underspend of £5.126m. This primarily relates to slippage in relation to the recruitment of posts linked to the “Winter Planning and Enhanced Supports” business case and also delays in recruiting posts against funding received for additional social workers. 2.2 Within Transport costs, the Service is currently anticipating an underspend of £0.132m, mainly due to less than anticipated mileage and vehicle contract hire costs. 2.3 Within Admin costs, the Service is currently anticipating an underspend of £1.329m, mainly as a result of less than anticipated spend within Carers budgets. 2.4 Payments to Other Bodies are detailed in Appendix 2. This expenditure accounts for £144.893m of the annual budget and is forecast to have an in-year underspend of £1.962m. This is primarily in relation to staff shortages within the Care at Home sector who provide services to individuals via the SDS commissioning framework. It is anticipated that this is an in-year underspend and these budgets will be required in full in 2023/24. 2.5 The Service anticipates an over recovery of income of £0.151m. This is a result of unbudgeted contributions from NHS Lanarkshire towards SDS care packages, partially offset by lower than anticipated income from charges for Community Alarms and Integrated Day Services. Revenue: Earmarked Reserves 2.6 The Integration Joint Board have set aside reserves totalling £31.919m for specific Adult Social Care commitments. A report will be presented to the IJB in December providing full details of all the reserves with proposals on how these will be utilised. If approved, it is anticipated that £13.930m of the earmarked reserves will be used during 2022/23, with £15.302m being carried forward to 2023/24, as highlighted in Appendix 3. All expenditure to be met from reserves are excluded from this outturn position. Revenue: 2022/23 Savings 2.7 The Integration Joint Board approved gross savings within the Adult Social Care service of £2.025m. The Service uses a variety of information, records, and processes to monitor achievement of its approved budget savings and as at Period 6 the Service anticipates £0.653m (32%) will be delivered by the financial year-end. 2.8 Appendix 4 provides further analysis of the savings. The budget gap of £1.372m will be funded by IJB reserves.
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Revenue: Covid – 19 2.9 During 2022/23 the Scottish Government was in regular discussions with H&SCP’s with respect to in-year IJB Covid costs. The latest forecast included in this report is for in- year gross Covid costs of approximately £2.106m which is fully offset by income received. Appendix 5 provides further analysis of the Covid Costs and funding. Revenue: Provider Uplift 2.10 Funding has been provided by the Scottish Government (£200m nationally) for additional investment in Health & Social Care, including a Scottish Living Wage increase up to £10.50 per hour effective from April 2022. The Scottish Government indicated that if part of the funding was not required to meet the cost of the pay uplift the remainder be retained by the HSCP with no ring-fenced conditions applied. 2.11 In September, Committee were advised that there was capacity within the funding allocated to North to recognise the range of additional cost pressures experienced by independent sector providers and therefore work was undertaken to scope an inflationary uplift for independent sector partners to address funding pressures beyond the hourly rate increase to frontline staff. 2.12 These uplifts are currently being rolled out across the partners; due to the timing of this exercise an in-year underspend may be reported at a future period. At Period 6, however, full spend is projected. Capital: Analysis of Significant Variances 2.13 The Integrated Equipment and Adaptation (IEAS) capital programme budget for 2022/23, is currently forecasting an underspend of £0.239m. This is due to demand levels not returning to pre-pandemic levels. Following on from the pandemic, there are, however, heightened uncertainties in respect of demand and complexity of need. 2.14 Appendices 7 and 8 outline the Service’s total capital budget, outturn position and current contractual commitments. 3. Measures of success 3.1 The Service operates within approved budget resources. 4. Supporting documentation Appendix 1 Revenue – Subjective Analysis Appendix 2 Revenue – Payments to Other Bodies Analysis Appendix 3 Revenue - Earmarked Reserves Analysis Appendix 4 Revenue - 2022/23 Savings Monitoring Report Appendix 5 Revenue - COVID 19 Costs Appendix 6 Capital – Budget Movements 2022/23 Appendix 7 Capital – Summary Expenditure by Thematic Appendix 8 Capital – Summary Expenditure by Division Morag Dendy Head of Planning, Performance and Quality Assurance
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Adult Social Care management team will continue to review and implement management action and initiatives, with the aim of remaining within approved budget resources. This action will include vacancy management, curtailment of non-essential expenditure, and maximising income. This report has been prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services manage these as part of their overall corporate and service planning processes. The demands and restrictions resulting from Covid and the current economic climate has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. The Service continues to face increasing demand pressures for provision within the home support, self-directed support and independent care home arenas. To mitigate these pressures the Service reviews and considers data and trends in relation to current and anticipated demand on an ongoing basis to underpin projections of need and cost, and to agree appropriate operational and management action
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Appendix 1 CATEGORY BUDGET ACTUAL YEAR TO DATE ANNUAL PROJECTED ANALYSIS TO DATE TO DATE VARIANCE BUDGET OUTTURN VARIANCE % EMPLOYEE COSTS 36,854,503 34,488,823 2,365,681 FAV 88,003,855 82,878,214 5,125,641 FAV 5.8% Slippage in relation to the recruitment of posts linked to the Business Case PROPERTY COSTS 1,220,439 1,239,845 (19,406) ADV 2,515,508 2,557,555 (42,047) ADV -1.7% SUPPLIES & SERVICES 2,162,615 2,155,327 7,288 FAV 4,771,427 4,755,637 15,790 FAV 0.3% TRANSPORT & PLANT 647,345 586,583 60,762 FAV 1,690,897 1,559,244 131,653 FAV 7.8% Lower than anticipated mileage and vehicle contract hire costs ADMINISTRATION COSTS 691,347 77,865 613,482 FAV 2,288,542 959,330 1,329,212 FAV 58.1% Lower than anticipated spend in relation to Carers budgets PAYMENTS TO OTHER BODIES 49,336,424 48,430,980 905,444 FAV 144,893,824 142,932,028 1,961,796 FAV 1.4% Please refer to Appendix 2 for analysis OTHER EXPENDITURE 1,707 1,707 0 28,858 28,858 0 0.0% APPORTIONED EXPENSES 0 0 0 0 0 0 0.0% CFCR 0 0 0 0 0 0 0.0% CAPITAL EXPENDITURE 0 0 0 0 0 0 0.0% TOTAL EXPENDITURE 90,914,380 86,981,130 3,933,251 FAV 244,192,911 235,670,866 8,522,045 FAV 3.5% NLC CONTRIBUTION 85,727,700 85,727,700 0 185,758,836 185,758,836 0 0.0% NLC CONTRIBUTION - HOUSING 883,388 883,388 0 1,870,010 1,870,010 0 0.0% NLC CONTRIBUTION - TRANSPORT 169,458 169,458 0 550,737 550,737 0 0.0% INCOME FROM HEALTH 29,325,827 29,472,044 146,217 FAV 54,191,628 54,508,431 316,803 FAV 0.6% Over recovery in relation to contributions to SDS care packages from NHS Lanarkshire FEES AND CHARGES 631,069 462,095 (168,974) ADV 1,438,167 1,072,056 (366,111) ADV -25.5% Lower than anticipated income in relation to charges for Integrated Day Services and also Community Alarms OTHER LOCAL AUTHORITIES 13,845 13,845 0 30,000 30,000 0 0.0% USE OF IJB RESERVES 0 0 0 0 0 0 0.0% OTHER INCOME 148,456 218,349 69,893 FAV 353,533 504,967 151,434 FAV 42.8% Overrecovery in relation to returned private sector housing grants TOTAL INCOME 116,899,743 116,946,879 47,136 FAV 244,192,911 244,295,037 102,126 FAV 0.0% NET EXPENDITURE (25,985,363) (29,965,749) 3,980,387 FAV 0 (8,624,171) 8,624,171 FAV FAV = Favourable variation, underspend etc ADV = Adverse variation, overspend, income under-recovery etc PROJECTED OUTTURN ADULT SOCIAL CARE & HOUSING - INTEGRATED Revenue Budget Monitoring Report: Subjective Analysis 01 April 2022 - 16 September 2022 Period 6
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Appendix 2 DESCRIPTION BUDGET ACTUAL ANNUAL PROJECTED TO DATE TO DATE BUDGET OUTTURN % (1) (2) (3) (5) (6) (8) (9) 1 SDS Framework 1 & 2 30,655,894 29,941,246 714,647 FAV 94,319,742 92,771,337 1,548,405 FAV 1.6% Demand led activity. 2 Independent Care Homes 15,857,800 15,858,250 (450) ADV 40,983,557 40,984,532 (975) ADV -0.0% Demand led activity. 3 Payments to NHS Lanarkshire 172,414 143,636 28,778 FAV 1,462,489 1,400,136 62,353 FAV 4.3% Position reflects anticipated in year payments 4 Non Traditional Respite 95,776 19,622 76,154 FAV 335,283 170,283 165,000 FAV 49.2% Position reflects anticipated Locality demand 5 Other Local Authorities - General 44,218 6,180 38,038 FAV 125,335 42,920 82,415 FAV 65.8% Position reflects anticipated in-year demand 6 Voluntary Organisations 1,932,596 1,928,143 4,452 FAV 4,662,141 4,652,495 9,646 FAV 0.2% Position reflects anticipated in-year demand 7 Payments to Other Bodies - General 64,219 20,395 43,824 FAV 857,820 762,868 94,952 FAV 11.1% Position reflects anticipated in-year demand 8 Housing Support (RSL's) 190,021 190,021 (0) ADV 654,376 654,376 0 0.0% Position reflects projected contract levels 9 Locality Flexibility 83,690 83,690 0 FAV 218,068 218,068 0 0.0% Position reflects anticipated Locality demand 10 Private Sector Housing Grants 229,849 229,849 0 FAV 1,152,378 1,152,378 0 0.0% Position reflects level of demand for private sector adaptations11 Medical Fees 9,947 9,947 0 FAV 122,635 122,635 0 0.0% Position reflects Service's approach to absence management12 Other 0 0 0 0 0 0 0.0% TOTAL EXPENDITURE 49,336,424 48,430,980 905,444 FAV 144,893,824 142,932,028 1,961,796 FAV 1.4% FAV = Favourable variation, underspend etc ADV = Adverse variation, overspend, income under-recovery etc ADULT SOCIAL CARE & HOUSING - INTEGRATED Revenue Budget Monitoring Report: PTOB Analysis 01 April 2022 - 16 September 2022 Period 6 (4) (7) ANALYSIS OF VARIATIONS YEAR TO DATE PROJECTED OUTTURN VARIANCES VARIANCE
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Appendix 3 Description of Earmarked Reserve 2022/23 Reserve Total 2022/23 2023/24 Balance no longer required Total Comments Carers Support 1,431,747 1,431,747 0 1,431,747 Winter Planning & Enhanced Support - Business Case 5,601,110 2,263,793 3,337,317 5,601,110 Unmet savings 3,543,717 1,732,270 1,811,447 3,543,717 Covid Support 3,000,000 3,000,000 0 3,000,000 Digital Improvements 2,960,400 1,197,000 1,763,400 2,960,400 Social Care Demand Risk 14,004,240 3,000,000 11,004,240 14,004,240 Programmes for Change 1,378,156 1,305,605 72,551 1,378,156 Totals 31,919,370 13,930,415 17,988,955 0 31,919,370 ADULT SOCIAL CARE & HOUSING - INTEGRATED Revenue Budget Monitoring Report: PROPOSED Earmarked Reserves Analysis 2022/2023 Period 6
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Appendix 4 £000 £000 £000 £000 £000 LA Service changes - Muirpark 1,372 0 1,372 Agreement to delay and fund from IJB reserves 1,372 0 Inflation increase from NHSL on Resource transfer and Social Care Funding 653 653 0 0 0 Totals 2,025 653 1,372 1,372 0 ADULT SOCIAL CARE & HOUSING - INTEGRATED Value CommentaryBudget GapTarget Value Value Deliverable APPROVED SAVINGS Saving Gap Revenue Budget Monitoring Report: 2022/23 Savings Monitoring Report Description of Approved Saving 01 April 2022 - 16 September 2022 Period 6 REPLACEMENT SAVING/FUNDING Description
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Appendix 5 Assumed Budget Projected Outturn Projected Outturn Variance COMMENT £'000 £'000 £'000 Increased Costs Partner Payments 0 2,106 (2,106) In line with Scottish Government guidance and principles regarding Occupancy and Sustainablity payments to partners 0 0 0 Service Costs Total 0 2,106 (2,106) Income Scottish Government Covid Funding for IJB's 0 (2,106) 2,106 deferred income via NHSL partner TOTAL NET COSTS 0 0 0 DESCRIPTION OF COVID-19 COSTS ADULT SOCIAL CARE & HOUSING - INTEGRATED Revenue Budget Monitoring Report: COVID-19 Costs 01 April 2022 - 16 September 2022 Period 6
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Appendix 6 APPROVED BUDGET 2,200,000 Movements to budget Period Division Thematic category Theme Reprofiling from 2021/22 400,000 Included in opening budget Social Work Key Ambition Integrated equipment & adaptations Acceleration in 2021/22 (96,000) Included in opening budget Social Work Key Ambition Integrated equipment & adaptations REVISED BUDGET TOTAL 2,504,000 Social Work Capital Programme Capital Budget Monitoring Report: Budget Movements 2022/23 01 April 2022 - 16 September 2022 Period 6
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Appendix 7 Thematic Category Budget £ Actual £ Actual % Committed £ Committed % Uncommitted £ Final Outturn £ Outturn variance £ Key Ambition 2,504,000 693,301 27.69% 815,090 32.55% 1,449,000 2,264,090 239,910 Total 2,504,000 693,301 27.69% 815,090 32.55% 1,449,000 2,264,090 239,910 YTD OUTTURN Social Work Capital Programme Capital Budget Monitoring Report: Summary Expenditure by Thematic Category 01 April 2022 - 16 September 2022 Period 6
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Appendix 8 Theme Budget £ Actual £ Committed £ Uncommitted £ Final Outturn £ Outturn variance £ SOCIAL WORK Integrated equipment & adaptations 2,504,000 693,301 815,090 1,449,000 2,264,090 239,910 TOTAL SOCIAL WORK 2,504,000 693,301 815,090 1,449,000 2,264,090 239,910 OUTTURN Social Work Capital Programme Capital Budget Monitoring Report: Summary Expenditure by Division 01 April 2022 - 16 September 2022 Period 6 YTD