Revenue and Capital Budget Monitoring Report- Adult Social Care Period 12- 11-04-2022 to 03-03-2023
North Lanarkshire Council · 16 May 2023
Back to Adult Care and Social Work Committee — 16 May 2023 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 16/05/23 Revenue & Capital Budget Monitoring Report: Adult Social Care Period 12: 01/04/2022 to 03/03/2023 From Morag Dendy, Head of Planning, Performance and Quality Assurance E-mail LynchN@northlan.gov.uk Telephone Nicola Lynch, Business Finance Manager, 07581007187 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 £244.178m. 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 3 March 2023 (Period 12) 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 £244.178m and is currently projecting an underspend of £9.327m. The Social Work capital programme has a total budget of £2.254m and is currently projecting an underspend of £0.053m. 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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1.2 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, as well as an adjustment following an update to the Strategic Capital Investment Programme (P&S December 2022 Committee) has resulted in a revised budget of £2.254m, as demonstrated by Appendix 6. 2. Report Revenue: Analysis of Significant Variances 2.1 Within Employee costs, the Service currently anticipates an underspend of £4.735m. 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. This is partially offset by costs associated with the 2022/23 pay agreement. 2.2 Property costs are currently anticipating an overspend of £0.259m, mainly due to utilities and one-off property repair costs. 2.3 Supplies and Services are expected to be overspent by £0.781m. This is mainly in relation to higher than anticipated spend in equipment and adaptations, uniforms and protective clothing for home support workers. 2.4 Within Transport costs, the Service is currently anticipating an overspend of £0.111m, mainly due to an overspend in staff mileage and fuel from internal hires partially offset by lower than anticipated vehicle contract hire costs. 2.5 Within Admin costs, the Service is currently anticipating an underspend of £1.940m, mainly as a result of less than anticipated spend within Carers budgets. 2.6 Payments to Other Bodies are detailed in Appendix 2. This expenditure accounts for £144.876m of the annual budget and is forecast to have an in-year underspend of £3.129m. 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. 2.7 The Service anticipates an over recovery of income of £0.663m. 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 2.8 The Integration Joint Board have set aside reserves totalling £31.919m for specific Adult Social Care commitments. It is anticipated that £6.375m of the earmarked reserves will be used during 2022/23, with £25.543m being carried forward to 2023/24, as highlighted in Appendix 3. All expenditure to be met from reserves are excluded from the outturn position.
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Revenue: 2022/23 Savings 2.9 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 10 the Service anticipates £0.653m (32%) will be delivered by the financial year-end. 2.10 Appendix 4 provides further analysis of the savings. The budget gap of £1.372m will be funded by IJB reserves. Revenue: Covid – 19 2.11 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 £1.200m which is fully offset by income received. Appendix 5 provides further analysis of the Covid Costs and funding. Capital: Analysis of Significant Variances 2.12 The Integrated Equipment and Adaptation (IEAS) capital programme budget for 2022/23, is currently forecasting an underspend of £0.053m. 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. 2.13 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. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.
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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 80,825,935 76,454,633 4,371,303 FAV 87,969,739 83,234,161 4,735,578 FAV 5.4% Slippage in relation to the recruitment of posts generally and also those linked to the Business Case, partially offset by costs associated with the 2022/23 pay agreement PROPERTY COSTS 2,364,657 2,604,408 (239,751) ADV 2,515,508 2,775,238 (259,730) ADV -10.3% Expenditure in relation to utilities and one-off property repairs SUPPLIES & SERVICES 4,404,564 5,126,176 (721,612) ADV 4,771,427 5,553,173 (781,746) ADV -16.4% Higher than anticipated spend in relation to the Equipment & Adaptations service, uniforms and protective clothing for home support workers TRANSPORT & PLANT 1,021,402 1,123,866 (102,464) ADV 1,690,897 1,801,900 (111,003) ADV -6.6% Lower than anticipated vehicle contract hire costs, partially offset by projected overspend in staff mileage and fuel from internal hires ADMINISTRATION COSTS 1,997,595 206,241 1,791,354 FAV 2,325,542 384,908 1,940,634 FAV 83.4% Lower than anticipated spend in relation to Carers budgets PAYMENTS TO OTHER BODIES 120,656,017 117,767,378 2,888,639 FAV 144,876,741 141,747,382 3,129,359 FAV 2.2% Please refer to Appendix 2 for analysis OTHER EXPENDITURE 22,023 11,947 10,076 FAV 28,858 17,943 10,915 FAV 37.8% Minor underspend in "other expenditure" 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 211,292,193 203,294,649 7,997,545 FAV 244,178,712 235,514,705 8,664,007 FAV 3.5% NLC CONTRIBUTION 171,473,976 171,473,976 0 185,758,836 185,758,836 0 0.0% NLC CONTRIBUTION - HOUSING 1,766,906 1,766,906 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 53,728,010 54,030,199 302,189 FAV 54,169,303 54,496,673 327,370 FAV 0.6% Over recovery in relation to contributions to SDS care packages from NHS Lanarkshire FEES AND CHARGES 1,299,838 1,038,636 (261,202) ADV 1,438,167 1,155,198 (282,969) ADV -19.7% Lower than anticipated income in relation to charges for Integrated Day Services and Community Alarms OTHER LOCAL AUTHORITIES 27,693 32,057 4,364 FAV 30,000 34,728 4,728 FAV 15.8% USE OF IJB RESERVES 0 0 0 0 0 0 0.0% OTHER INCOME 219,427 786,466 567,039 FAV 361,659 975,952 614,293 FAV 169.9% Overrecovery in relation to returned private sector housing grants, unbudgeted funding for fire safety equipment (EAS) and a recharges to NLC IT/Captial regarding analogue to digital. TOTAL INCOME 228,685,308 229,297,698 612,390 FAV 244,178,712 244,842,134 663,422 FAV 0.3% NET EXPENDITURE (17,393,115) (26,003,049) 8,609,935 FAV 0 (9,327,429) 9,327,429 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 - 03 March 2023 Period 12
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Appendix 2 DESCRIPTION BUDGET ACTUAL ANNUAL PROJECTED TO DATE TO DATE BUDGET OUTTURN % (1) (2) (3) (5) (6) (8) (9) SDS Framework 1 & 2 78,210,087 75,208,310 3,001,776 FAV 94,319,742 90,987,629 3,332,113 FAV 3.5% Demand led activity. Independent Care Homes 34,957,739 35,564,051 (606,312) ADV 40,983,557 41,640,395 (656,838) ADV -1.6% Demand led activity. Payments to NHS Lanarkshire 203,895 208,528 (4,633) ADV 1,462,489 1,467,507 (5,018) ADV -0.3% Position reflects anticipated in year payments Non Traditional Respite 277,784 58,477 219,306 FAV 335,283 97,701 237,582 FAV 70.9% Position reflects anticipated Locality demand Other Local Authorities - General 92,326 42,373 49,953 FAV 125,335 71,219 54,116 FAV 43.2% Position reflects anticipated in-year demand Voluntary Organisations 4,348,287 4,294,239 54,048 FAV 4,645,058 4,586,506 58,552 FAV 1.3% Position reflects anticipated in-year demand Payments to Other Bodies - General 747,209 607,065 140,144 FAV 857,820 705,997 151,823 FAV 17.7% Position reflects anticipated in-year demand Housing Support (RSL's) 538,477 604,019 (65,542) ADV 654,376 725,379 (71,003) ADV -10.9% Position reflects projected contract levels Locality Flexibility 187,909 176,780 11,129 FAV 218,068 206,011 12,057 FAV 5.5% Position reflects anticipated Locality demand Private Sector Housing Grants 1,011,647 818,233 193,414 FAV 1,152,378 942,846 209,532 FAV 18.2% Position reflects level of demand for private sector adaptations Medical Fees 80,658 38,436 42,222 FAV 122,635 76,894 45,741 FAV 37.3% Position reflects Service's approach to absence management Agency Fees 0 146,869 (146,869) ADV 0 239,297 (239,297) ADV 0.0% Position reflects anticipated in year payments Other 0 0 0 0 0 0 0.0% TOTAL EXPENDITURE 120,656,017 117,767,378 2,888,639 FAV 144,876,741 141,747,382 3,129,359 FAV 2.2% 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 - 03 March 2023 Period 12 (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 851,747 28,000 823,747 851,747 Winter Planning & Enhanced Support - Business Case 5,918,000 2,394,484 3,523,516 5,918,000 Unmet savings 3,058,534 1,952,541 1,105,993 3,058,534 Covid Support 3,000,000 1,050,502 1,949,498 3,000,000 Digital Improvements 5,826,144 202,484 5,623,660 5,826,144 Social Care Demand Risk 11,938,216 50,000 11,888,216 11,938,216 Programmes for Change 1,326,729 697,594 629,135 1,326,729 Totals 31,919,370 6,375,605 25,543,765 0 31,919,370 ADULT SOCIAL CARE & HOUSING - INTEGRATED Revenue Budget Monitoring Report: Earmarked Reserves Analysis 2022/2023 Period 12
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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 - 03 March 2023 Period 12 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 1,200 (1,200) In line with Scottish Government guidance and principles regarding Occupancy and Sustainablity payments to partners 0 0 0 Service Costs Total 0 1,200 (1,200) Income Scottish Government Covid Funding for IJB's 0 (1,200) 1,200 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 - 03 March 2023 Period 12
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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 Updated Strategic Capital Investment Prg (P&S December 2022 Committee) (250,000) actioned at Period 11 Social Work Key Ambition Integrated equipment & adaptations REVISED BUDGET TOTAL 2,254,000 Social Work Capital Programme Capital Budget Monitoring Report: Budget Movements 2022/23 01 April 2022 - 03 March 2023 Period 12
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Appendix 7 Thematic Category Budget £ Actual £ Actual % Committed £ Committed % Uncommitted £ Final Outturn £ Outturn variance £ Key Ambition 2,254,000 1,705,855 75.68% 1,947,152 86.39% 254,054 2,201,206 52,794 Total 2,254,000 1,705,855 75.68% 1,947,152 86.39% 254,054 2,201,206 52,794 YTD OUTTURN Social Work Capital Programme Capital Budget Monitoring Report: Summary Expenditure by Thematic Category 01 April 2022 - 03 March 2023 Period 12
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Appendix 8 Theme Budget £ Actual £ Committed £ Uncommitted £ Final Outturn £ Outturn variance £ SOCIAL WORK Integrated equipment & adaptations 2,254,000 1,705,855 1,947,152 254,054 2,201,206 52,794 TOTAL SOCIAL WORK 2,254,000 1,705,855 1,947,152 254,054 2,201,206 52,794 OUTTURN Social Work Capital Programme Capital Budget Monitoring Report: Summary Expenditure by Division 01 April 2022 - 03 March 2023 Period 12 YTD