Revenue and Capital Budget Monitoring Report- Adult Social Care Period 3 01-04-22 to 24-06-22
North Lanarkshire Council · 6 September 2022
Back to Adult Social Work, Care and Wellbeing Committee — 6 September 2022 and its agenda
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North Lanarkshire Council Report Adult Social Work, Care and Wellbeing Committee Does this report require to be approved? ☐ Yes ☒ No Ref RM/MD/NL/LH Date 06/09/22 Revenue & Capital Budget Monitoring Report: Adult Social Care Period 3: 01/04/2022 to 24/06/2022 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 24 June 2022 (Period 3) 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 £243.902m and is currently projecting an underspend of £4.510m. The Social Work capital programme has a total budget of £2.504m and is currently projecting a break-even position. Recommendations It is recommended that the Adult Social Work, Care and Wellbeing 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 £243.902m. 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. 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 £2.870m. This relates to slippage in relation to the recruitment of posts linked to the “Winter Planning and Enhanced Supports” business case. 2.2 Within Admin costs, the Service is currently anticipating an underspend of £0.908m, mainly as a result of less than anticipated spend within Carers budgets. 2.3 Payments to Other Bodies are detailed in Appendix 2. This expenditure accounts for £144.601m of the annual budget and is forecast to have an in-year underspend of £1.089m. 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 only and these budgets will be required in full in 2023/24. 2.4 The Service anticipates an under-recovery of income of £0.371m. This is a result of the committed income recovery from NHSL, in respect of the Integrated Equipment and Adaptations Service, being lower than the historic budget level; coupled with lower than budgeted receipts from charges for Community Alarms and the Integrated Day Services. Revenue: Earmarked Reserves 2.5 The Integration Joint Board have set aside reserves totalling £39.919m for specific Adult Social Care commitments. As expenditure within these areas is currently anticipated to be met from reserves, the totals shown within Appendix 3 are excluded from this outturn position. It is anticipated that £16.617m of the earmarked reserves will be utilised during 2022/23, with £15.302m being carried forward to 2023/24. Revenue: 2022/23 Savings 2.6 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 3 the Service anticipates £0.653m (32%) will be delivered by the financial year-end. 2.7 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 2.8 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 £2.838m which is fully offset by income received. Appendix 5 provides further analysis of the Covid Costs and funding. Revenue: Provider Uplift 2.9 Funding has been provided by the Scottish Government (£200M across Scotland) as additional investment in Health & Social Care (including Scottish Living Wage increase up to £10.50 per hour). Work is underway to ensure the uplift to the £10.50 is being implemented and a supplementary exercise is being undertaken to assess the uplift in light of other factors, including the increasing cost of living. Capital: Analysis of Significant Variances 2.10 The Integrated Equipment and Adaptation (IEAS) capital programme budget for 2022/23, is currently forecasting a break-even position. There are, however, heightened uncertainties in respect of demand and complexity of need. 2.11 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 % (1) (2) (3) (4) (5) (6) (7) (8) (9) EMPLOYEE COSTS 16,748,540 16,086,172 662,368 FAV 87,734,569 84,864,318 2,870,251 FAV 3.3% Slippage in relation to the recruitment of posts linked to the Business Case PROPERTY COSTS 1,955,569 1,955,559 10 FAV 2,515,508 2,515,465 43 FAV 0.0% SUPPLIES & SERVICES 949,645 947,973 1,672 FAV 4,771,427 4,764,182 7,245 FAV 0.2% TRANSPORT & PLANT 324,561 323,131 1,430 FAV 1,690,897 1,684,699 6,198 FAV 0.4% Lower than anticipated vehicle contract hires ADMINISTRATION COSTS 209,756 0 209,756 FAV 2,559,307 1,650,362 908,945 FAV 35.5% Lower than anticipated spend in relation to Carers budgets PAYMENTS TO OTHER BODIES 14,659,007 14,407,516 251,491 FAV 144,601,809 143,512,013 1,089,796 FAV 0.8% Please refer to Appendix 2 for analysis OTHER EXPENDITURE 1,057 1,057 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 34,848,135 33,721,408 1,126,727 FAV 243,902,375 239,019,897 4,882,478 FAV 2.0% NLC CONTRIBUTION 42,854,562 42,854,562 0 185,758,836 185,758,836 0 0.0% NLC CONTRIBUTION - HOUSING 1,870,010 1,870,010 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 2,943,152 2,913,761 (29,391) ADV 54,078,807 53,951,447 (127,360) ADV -0.2% Under-recovery of budgeted funding from NHSL, with regard to the Integrated Equipment & Adaptations Service, partially offset by contributions to SDS care packages FEES AND CHARGES 248,968 175,374 (73,594) ADV 1,438,167 1,119,263 (318,904) ADV -22.2% Lower than anticipated income in relation to charges for Integrated Day Services and also Community Alarms OTHER LOCAL AUTHORITIES 6,921 6,921 0 30,000 30,000 0 0.0% USE OF IJB RESERVES 0 0 0 0 0 0 0.0% OTHER INCOME 31,603 48,857 17,254 FAV 175,818 250,584 74,766 FAV 42.5% Overrecovery in relation to returned private sector housing grants TOTAL INCOME 48,124,674 48,038,943 (85,731) ADV 243,902,375 243,530,877 (371,498) ADV -0.2% NET EXPENDITURE (13,276,539) (14,317,535) 1,040,996 FAV 0 (4,510,980) 4,510,980 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 - 24 June 2022 Period 3
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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 8,779,852 8,537,215 242,637 FAV 94,304,755 93,253,329 1,051,426 FAV 1.1% Demand led activity. Independent Care Homes 5,305,102 5,305,102 0 FAV 40,983,557 40,983,557 0 0.0% Demand led activity. Payments to NHS Lanarkshire 0 0 (0) ADV 1,462,489 1,462,489 0 0.0% Position reflects anticipated in year payments Non Traditional Respite 0 0 (0) ADV 335,283 335,283 0 0.0% Position reflects anticipated Locality demand Other Local Authorities - General 0 (0) 0 FAV 125,335 125,335 0 0.0% Position reflects anticipated in-year demand Voluntary Organisations 479,201 486,459 (7,258) ADV 4,370,126 4,401,573 (31,447) ADV -0.7% Position reflects anticipated in-year demand Payments to Other Bodies - General 16,111 (0) 16,111 FAV 857,820 788,003 69,817 FAV 8.1% Position reflects anticipated in-year demand Housing Support (RSL's) 43,051 43,051 0 FAV 669,363 669,363 0 0.0% Position reflects projected contract levels Locality Flexibility 34,450 34,450 0 FAV 218,068 218,068 0 0.0% Position reflects anticipated Locality demand Private Sector Housing Grants 0 0 (0) ADV 1,152,378 1,152,378 0 0.0% Position reflects level of demand for private sector adaptations Medical Fees 1,240 1,240 0 122,635 122,635 0 0.0% Position reflects Service's approach to absence management Other 0 0 0 0 0 0 0.0% TOTAL EXPENDITURE 14,659,007 14,407,516 251,491 FAV 144,601,809 143,512,013 1,089,796 FAV 0.8% 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 - 24 June 2022 Period 3 (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 3,420,209 1,732,270 1,687,939 3,420,209 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 13,940,548 5,500,000 8,440,548 13,940,548 Programmes for Change 1,565,356 1,492,805 72,551 1,565,356 Totals 31,919,370 16,617,615 15,301,755 0 31,919,370 ADULT SOCIAL CARE & HOUSING - INTEGRATED Revenue Budget Monitoring Report: PROPOSED Earmarked Reserves Analysis 2022/2023 Period 3
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Appendix 4 £000 £000 £000 £000 £000 ASC04 LA Service changes - Muirpark 1,372 0 1,372 Agreement to delay and fund from IJB reserves 1,372 0 ASC11 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 - 24 June 2022 Period 3 REPLACEMENT SAVING/FUNDING Description
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Appendix 5 Assumed Budget Projected Outturn Projected Outturn Variance COMMENT £'000 £'000 £'000 Increased Costs Personal Protection Equipment 0 396 (396) Partner Payments 0 2,106 (2,106) In line with Scottish Government guidance and principles regarding Occupancy and Sustainablity payments to partners Loss of Income - Integrated Day Services 0 250 (250) Expected underachievement of Savings 0 86 (86) Delay in property integration of the Integrated Day Service and Locality Support Service Service Costs Total 0 2,838 (2,838) Income Scottish Government Covid Funding for IJB's 0 (2,838) 2,838 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 - 24 June 2022 Period 3
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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 (95,808) Included in opening budget Social Work Key Ambition Integrated equipment & adaptations REVISED BUDGET TOTAL 2,504,192 Social Work Capital Programme Capital Budget Monitoring Report: Budget Movements 2022/23 01 April 2022 - 24 June 2022 Period 3
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Appendix 7 Thematic Category Budget £ Actual £ Actual % Committed £ Committed % Uncommitted £ Final Outturn £ Outturn variance £ Key Ambition 2,504,192 176,313 7.0% 176,313 7.0% 2,327,879 2,504,192 0 Total 2,504,192 176,313 7.04% 176,313 7.04% 2,327,879 2,504,192 0 YTD OUTTURN Social Work Capital Programme Capital Budget Monitoring Report: Summary Expenditure by Thematic Category 01 April 2022 - 24 June 2022 Period 3
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Appendix 8 Theme Budget £ Actual £ Committed £ Uncommitted £ Final Outturn £ Outturn variance £ SOCIAL WORK Integrated equipment & adaptations 2,504,192 176,313 176,313 2,327,879 2,504,192 0 TOTAL SOCIAL WORK 2,504,192 176,313 176,313 2,327,879 2,504,192 0 OUTTURN Social Work Capital Programme Capital Budget Monitoring Report: Summary Expenditure by Division 01 April 2022 - 24 June 2022 Period 3 YTD