3 - Revenue Budget Monitoring to June 2024
North Ayrshire Council · 27 August 2024
Back to Cabinet — 27 August 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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NORTH AYRSHIRE COUNCIL 27 August 2024 Cabinet Title: Revenue Budget 2024/25 : Financial Performance to 30 June 2024 Purpose: To advise Cabinet of the financial performance for the Council at 30 June 2024. Recommendation: That Cabinet agrees to: (a) note the information and financial projections outlined in the report; (b) note the latest financial projection for the Health and Social Care Partnership highlighted at 2.6; and (c) approve the virements detailed in Appendix 8. 1. Executive Summary 1.1 The General Services Revenue Estimates for 2024/25 were approved by Council on 28 February 2024. The Housing Revenue Account (HRA) Revenue Budget for 2024/25 was approved by Council on 14 February 2024. 1.2 As part of the monitoring procedures to keep the Cabinet informed of the financial performance of the Council, financial performance reports are presented on a regular basis. This is the first report for 2024/25 and covers the period to the end of June 2024 (Period 3). Projections have been made to the year-end. 1.3 At Period 3 the General Fund is forecasting a net in-year overspend of £2.009m, (0.5%), after transferring resources to/from earmarked reserves. 1.4 The Housing Revenue Account is forecasting a net in-year underspend of (£0.266m), (0.4%). 1.5 The Health and Social Care Partnership is projecting a year-end overspend of £6.555m, (2.0%), for 2024/25. The Council services element is reporting a projected overspend of £5.969m and the Health services element is reporting a projected overspend of £0.586m. However, previously identified financial recovery actions have reduced the projected overspend to £3.143m, £2.938m for Council Services and £0.205m for Health services.
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1.6 Significant risks to the reported position have been identified arising from ongoing 2024/25 pay negotiations. Current projections are based on a pay settlement in line with budgeted provision. Any additional unfunded pay awards will negatively impact on the projected outturn position. Further risks have been identified in relation to the reported HSCP position which requires measures to be put in place by the HSCP to address these risks. However, this position could have an impact on the level of financial contributions from the funding parties. 2. Background General Fund 2.1 The Council set a breakeven budget for 2024/25. In addition to the budget approved on 28 February 2024, earmarked funds of £84.940m were carried forward from 2023/24 for service expenditure in 2024/25 and beyond. These funds are reflected in the figures within the 2024/25 financial performance reports as they are drawn down. 2.2 Current financial projections indicate that a net in-year overspend of £2.009m, (0.5%), net of transfers to/from reserves, is anticipated for the year to 31 March 2025. The forecast position will continue to be monitored throughout the year. However, any final overspend will require the utilisation of Council reserves and may negatively impact on future budget gaps in the medium term. 2.3 Details of the current financial projections are summarised in the following table: Service Expenditure Appendix Number Annual Budget £ million Projection to 31 March 2025 £ million Projected Variance for year (Fav)/Adv £ million Note Corporate Services 1 18.420 18.368 (0.052) Education 2 171.747 174.750 3.003 (i) Place 3 52.699 53.655 0.956 (ii) Communities & Housing 4 13.669 13.716 0.047 Other Corporate Items 5 30.322 28.658 (1.664) (iii) Sub Total 286.857 289.147 2.290 Health and Social Care Partnership 9 131.545 131.545 0.000 Balance for Services 418.402 420.692 2.290 Financing Charges 6 15.885 15.885 0.000 Contribution to Loans Fund Reserve 6 6.781 6.781 0.000 Total Planned Expenditure 441.068 443.358 2.290 Aggregate External Finance 6 (369.870) (369.870) 0.000 Council Tax 6 (65.681) (65.962) (0.281) (iv) Use of Earmarked Funds 6 (5.517) (5.517) 0.000 Total Planned Income (441.068) (441.349) (0.281) Net Expenditure/ (Income) 0.000 2.009 2.009
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2.4 The reported Planned Income includes a number of adjustments to Scottish Government funding from that included in the approved budget, as detailed in the following table: Movements on Planned Income General Revenue Grant £ million Non Domestic Rates £ million Specific Grants £ million TOTAL AEF £ million Approved Budget 28 Feb 2024 (309.479) (40.021) (6.917) (356.417) Settlement Adjustment 0.274 (0.135) 0.000 0.139 ELC Provider Pay (0.394) 0.000 0.000 (0.394) Music Tuition Funding (0.014) 0.000 0.000 (0.014) School Clothing Grants Inflation (0.045) 0.000 0.000 (0.045) Child Poverty Coordinators (0.019) 0.000 0.000 (0.019) Additional General Revenue Grant (1.682) 0.000 0.000 (1.682) Islands Cost Crisis Emergency (0.228) 0.000 0.000 (0.228) HSCP Children’s Social Care Pay (0.569) 0.000 0.000 (0.569) HSCP Adult Social Care (6.477) 0.000 0.000 (6.477) HSCP Scottish Disability Assist. (0.134) 0.000 0.000 (0.134) HSCP CJSW 0.000 0.000 (0.053) (0.053) DHP Allocation (2.898) 0.000 0.000 (2.898) PEF carry forward 2023/24 (0.028) 0.000 (0.196) (0.224) Teacher Induction Adjustment 0.000 0.000 0.302 0.302 NDR Empty Property Relief Adj. 0.000 (1.157) 0.000 (1.157) Revised Planned Income (321.693) (41.313) (6.864) (369.870) 2.5 Commentary on Significant Movements from the Approved Budget The Council's overall financial forecast against the approved budget is a net overspend position. This includes a number of movements at a service level. A brief explanation of the significant movements from the approved budgets are outlined as follows: (i) Education – overspend of £3.003m The overspends are primarily related to: • A projected overspend on teacher cover costs related to maternity and sickness absence across establishments, £2.022m; • Residential childcare and external day placements, £1.853m and • A projected under recovery of teacher induction grant funding linked to a reduction in the number of probationary teachers from 51 to 34, £0.302m. These have been partly offset by: • Reduced numbers of NAC children accessing placements in other local authorities, combined with increased numbers of children from other local authorities accessing placements within NAC establishments, (£0.242m);
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• Employee costs underspends within Facilities Management linked to recruitment challenges, (£0.136m); • Reduced Supplies & Services costs within Facilities Management linked to reduced Early Years attendance rates, (£0.268m); and • An over-recovery of school meal income due to increased uptake, (£0.388m). Virements in relation to the realignment of Facilities Management budgets and additional Youth Music grant income have been included within Appendix 8. (ii) Place – overspend of £0.956m The overspend is primarily related to: • Additional operating costs within Waste Services related to additional service demands and the impact of high staff absence levels, partly offset by lower than anticipated recyclates contract costs, £0.350m; • Increased transport costs linked to increased numbers requiring pupil transport, £0.225m; • A projected under-recovery income across services, £0.090m; and • Additional costs of remedial works in relation to RAAC, £0.100m. Virements in relation to additional income received in relation to Employability and Roads have been included within Appendix 8. (iii) Communities and Housing – overspend of £0.047m The projected overspend is primarily related to: • The under recovery of income within Building Services due to a reduction in the volume of kitchens and bathrooms required under the HRA Capital Programme, £0.168m; and • Revised implementation programme for approved savings, £0.076m. These have been partly offset by: • A reduction in the planned expenditure on Supplies and Services to support the kitchen and bathroom programme, (£0.141m); and • An increase in Planning Fee income, (£0.094m). Virements in relation to additional income received in relation to Other Housing, Information and Culture and the Community development Multiply Programme have been included within Appendix 8.
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(iv) Other Corporate Items – underspend of (£1.664m) The underspend is primarily related to centrally held inflationary cost provisions which are being applied to offset the pressures reported across other services (£0.513m), additional income from employee benefit schemes (£0.319m) lower than anticipated joint board precepts (£0.140m) and additional Scottish Government grant income not required in year (£0.758m). (v) Council Tax – over recovery of (£0.281m) The projected over recovery of Council Tax income reflects in year growth in the Council Tax base, (£0.701m), partly offset by increased CTR claims and prior year adjustments, £0.420m. Health and Social Care Partnership 2.6 A copy of the HSCP financial performance report as at the end of June 2024 is attached at Appendix 9. The report highlights the key challenges and variances for the Partnership. The key points for Cabinet to note are summarised below: • The projected outturn is a year-end overspend of £6.555m for 2024/25, however, this has been reduced to £3.143m due to previously identified financial recovery actions. • The projected overspend on the Council Services element is £5.969m over the same period, reduced to £2.938m following the identified financial recovery actions; • The most significant areas of overspend include care at home, residential placements for children, physical and learning disability care packages, supplementary staff in wards, staff costs in Montrose House and unplanned activities within the lead partnership for mental health. Further detail is included in the report at Appendix 9. The main areas of risk identified include: • The recent announcement by Scottish Government in relation to public sector finances may impact on current and future funding, including for 2024-25 pay awards, which have not yet been settled for local government or NHS; • Continued growing demand for services; • Staff recruitment and retention challenges across a number of service areas; • The provider market and the ongoing ability to source packages of care for service users; • The expectation that performance will continue to be maintained or improved despite the significant resource challenges, for example the joint mission for delayed discharge improvement; • Ongoing delivery costs of Scottish Government policy directives, particularly where these are not fully funded or inflation proofed; • The ongoing review of the Integration Scheme; • Progress with the work to develop set aside arrangements and the risk sharing arrangements agreed as part of this;
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• The wider system financial challenges, especially the financial position of NHS Ayrshire and Arran Health Board, their financial deficit and the risks around further escalation in the national framework for financial escalation. North Ayrshire IJB have already discussed our position in relation to the request for payment for delayed discharges last financial year; • The underlying levels of overspend which are recurring into 2024-25 and may impact on the Partnership’s ability to continue to sustain service levels in the future; • The IJB free general fund reserves are estimated to be fully utilised during this financial year, leading to an increased risk of requiring additional in-year financial contributions from NHS Ayrshire and Arran and North Ayrshire Council to break- even; • High risk areas of low volume / high-cost services areas e.g. Children’s residential placements, Learning Disability care packages and complex care packages; • Lead / hosted service arrangements, including managing pressures and reporting this across the 3 IJBs; • The impact on Lead Partnership and acute services from decisions taken by other Ayrshire areas; • The use of supplementary staffing for enhanced observations across a number of service areas; • The use of high-cost agency staff to support frontline service delivery in areas where there are recruitment challenges; • Agenda for change Pay Reform programme – including Nursing Band 5-6 re-grade, protected learning time and reduction to the working week. These risks will continue to be monitored during 2024-25. Risks 2.7 Negotiations in relation to the 2024/25 pay settlement for non-teaching staff are currently ongoing. All projections are based on a final pay settlement in line with budgeted provision. However, the impact of any award in excess of available funding may require the utilisation of Council reserves, with a knock-on effect on future budget gaps. The current projected financial position for 2024/25 will require further recovery measures to be identified in order to address the anticipated overspend. Work will continue across each Directorate throughout the year. 2.8 Under the terms of the Health and Social Care Integration Scheme, a recovery plan must be agreed to address the projected overspend. There is a risk that, if the recovery plan is not successful, this could have an impact on the level of financial contributions from the funding parties. Although there would be an expectation that any additional contributions would be repaid, this could have a knock on effect on the level of reserves available to address future Council budget gaps as provision would be required for the potential non-recovery of these funds within a reasonable timeframe.
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Housing Revenue Account 2.9 The Housing Revenue Account budgeted for a breakeven position in 2024/25 and an in-year underspend of (£0.266m), (0.4%), is currently anticipated for the year to 31 March 2025. The projected position is summarised in the following table with further details provided in Appendix 7. Housing Revenue Account Annual Budget £ million Projection to 31 March 2025 £ million Projected Variance for year (Fav)/Adv £ million Note Employee Costs 5.118 5.118 0.000 Property Costs 22.694 23.534 0.840 (i) Supplies and Services 2.353 2.348 (0.005) Transport and Plant Costs 0.021 0.021 0.000 Administration Costs 1.756 1.762 0.006 Third Party Payments 3.752 3.800 0.048 Transfer Payments 0.163 0.163 0.000 Other Expenditure 0.490 0.503 0.013 Capital Financing 26.526 24.715 (1.811) (ii) Gross Expenditure 62.873 61.964 (0.909) Income (62.873) (62.230) 0.643 (iii) Net Expenditure 0.000 (0.266) (0.266) 2.10 Commentary on Significant Movements from the Approved Budget A brief explanation of the significant movements from the previous forecasts is outlined as follows: (i) Property Costs – overspend of £0.840m The projected overspend primarily relates to additional storm damage resulting from adverse weather conditions, £0.220m, increased costs in relation to timber and damp works, £0.209m, increased volume and scope of works in relation to response repairs, £0.230m, and increased expenditure on void repairs, £0.093m. (ii) Capital Financing – underspend of (£1.811m) The projected underspend reflects the current treasury strategy of delaying external borrowing through the utilisation of cash balances, combined with adjustments to profiling within the HRA Capital programme. These funds will be required to support the HRA capital programme in future years. (iii) Income – under recovery of £0.643m The projected under recovery reflects an under recovery of Other Rents following a review of overpayments, £0.407m, and an under recovery of recharges for sheltered housing hub costs, £0.179m.
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3. Proposals 3.1 It is proposed that Cabinet agrees to: (a) note the information and financial projections outlined in the report; (b) note the latest financial projection for the Health and Social Care Partnership highlighted at 2.6; and (c) approve the virements detailed in Appendix 8. 4. Implications/Socio-economic Duty Financial 4.1 General Services The net projection for the year as at 30 June 2024 is a net overspend of £2.009m. Further in-year measures will require to be put in place across Directorates to address this. Housing Revenue Account The net projection for the year as at 30 June 2024 is a net underspend of (£0.266m). Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Environmental and Sustainability 4.5 None. Key Priorities 4.6 This report directly supports the Council Plan 2023 to 2028 by maximising financial flexibility to support the delivery of our priorities. Community Wealth Building 4.7 None.
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5. Consultation 5.1 Progress as outlined in this report has been approved by Executive Directors. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551. Background Papers General Services Revenue Estimates 2024/25 to 2026/27 - Council 28 February 2024 Housing Revenue Account (HRA) Capital Investment Plan, Revenue Budget and Rent Levels for 2024/25 – Council 14 February 2024
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Appendix 1 CHIEF EXECUTIVES BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Chief Executive Chief Executive 137 142 5 4% Total for Chief Executive 137 142 5 4% Financial Services Change Programme 57 57 - 0% Audit, Fraud, Safety & Insurance 622 622 - 0% Corporate Procurement 893 845 (48) (5%) Financial Services 1,342 1,342 - 0% Revenues (644) (644) - 0% Transformation 669 669 - 0% Total for Financial Services 2,939 2,891 (48) (2%) People & ICT Employee Services 793 793 - 0% HR & Organisational Development 1,036 1,048 12 1% ICT 4,869 4,869 - 0% Business Support 1,107 1,107 - 0% Customer Services 3,803 3,803 - 0% Total for People & ICT 11,608 11,620 12 0% Democratic Services Legal & Licensing 406 406 - 0% Policy, Performance & Elections 542 516 (26) (5%) Communications 446 446 - 0% Civil Contingencies 60 60 - 0% Committee Services 413 413 - 0% Member Services 1,339 1,344 5 0% Ayrshire Support Service 478 478 - 0% Information Governance 52 52 - 0% Total for Democratic Services 3,736 3,715 (21) (1%) Totals 18,420 18,368 (52) (0%)
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Appendix 1 Subjective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance £000 £000 £000 Employee Costs 15,673 15,610 (63) (0%) Property Costs 68 68 - 0% Supplies and Services 2,985 2,984 (1) (0%) Transport and Plant Costs 23 23 - 0% Administration Costs 1,360 1,360 - 0% Other Agencies & Bodies 1,934 1,934 - 0% Transfer Payments 852 852 - 0% Other Expenditure - - - - Capital Financing - - - - Gross Expenditure 22,895 22,831 (64) (0%) Income (4,475) (4,463) 12 (0%) Net Expenditure 18,420 18,368 (52) (0%)
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Appendix 2 EDUCATION BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Early Years Education 19,674 19,580 (94) (0%) 1 Primary Education 49,822 50,119 297 1% 2 Secondary Education 62,989 62,788 (201) (0%) 3 Additional Support Needs 15,141 16,665 1,524 10% 4 Central Education 2,982 5,205 2,223 75% 5 Pupil Equity Fund 4,367 4,367 - 0% Facilities Management 16,772 16,026 (746) (4%) 6 Net Total 171,747 174,750 3,003 2% Subjective Summary Annual Budget Final Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs - Teachers 97,605 99,553 1,948 2% Employee Costs - Non Teachers 45,069 45,127 58 0% Property Costs 1,082 1,073 (9) (1%) Supplies and Services 25,914 25,691 (223) (1%) Transport and Plant Costs 121 125 4 3% Administration Costs 400 409 9 2% Other Agencies & Bodies 8,655 10,378 1,723 20% Transfer Payments 580 580 - 0% Other Expenditure - - - Capital Financing 71 71 - 0% Gross Expenditure 179,497 183,007 3,510 2% Income (7,750) (8,257) (507) 7% Net Expenditure 171,747 174,750 3,003 2%
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Appendix 2a EDUCATION BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Early Years Education 14,312 (94) -1% Employee Costs : Overall an estimated underspend of £0.094m. - Teachers:- projected underspend of £0.013m due to absence. - Non Teachers:- projected underspend of £0.164m as a result of vacancy management offset by a budgeted turnover target of £0.084m resulting in a net underspend of £0.080m A reduction to the budget of £1.198m in 23/24 necessitated a drawdown from Education earmarked funds of £0.507m pending permanent savings to be implemented for 24/25. The Service redesign has been developed and will be implemented by August 2024. The position will be further reviewed from August onwards to assess costs associated with the new model. (94) Note 2 Primary Education 47,595 241 1% Employee Costs : Overall an estimated overspend of £0.241m. - Teachers:- projected underspend of £0.268m offset by a budgeted turnover target of £0.493m resulting in a net overspend of £0.225m - Non Teachers:- projected underspend of £0.241m offset by a budgeted turnover target of £0.256m resulting in a net overspend of £0.016m. 62 55 89% Income: projected under-recovery of income due to reduced demand for commercial school lets post pandemic. 296 Note 3 Secondary Education 47,265 (241) -1% Employee Costs : Overall an estimated underspend of £0.241m. - Teachers:- projected underspend of £0.767m offset by a budgeted turnover target of £0.535m resulting in a net underspend of £0.232m - Non Teachers:- projected underspend of £0.196m offset by a budgeted turnover target of £0.187m resulting in a net underspend of £0.009m 40 Other minor movements (201) Note 4 ASN 13,169 (87) -1% Employee Costs : Overall an estimated underspend of £0.087m. - Teachers:- projected underspend of £0.156m offset by a budgeted turnover target of £0.073m resulting in a net underspend of £0.083m - Non Teachers:- projected underspend of £0.161m offset by a budgeted turnover target of £0.157m resulting in a net underspend of £0.004m 355 (122) -34% There is a forecasted underspend of £0.122m on payments to Other Local Authorities due to a reduction in the number of NAC children accessing placements in their establishments. 1,010 421 42% There is a projected overspend of £0.421m on external day placements as a result of additional children requiring this level of support and an increase in rates from these establishments. Currently there are 28 children in, or expected in, day placement provision. A further review of the process for authorising placements will be carried out by the service. 543 1,432 264% There is a projected overspend of £1.432m on external specialist residential placements. Currently there are 15 children in, or expected in, accommodation. Increased pressures on internal care settings as well as changing needs of children and young people have resulted in an increase in the need for external residential settings. Joint working is ongoing with HSCP to ensure that all options are fully explored to ensure that all options are considered to retain young people within their local community where possible. Where this is not possible, a forum has been set up to further discuss those young people who will require care and education provision to support them appropriately. Any future additional children who enter Residential Accommodation will increase the future projected overspend. (264) (120) There is a projected over recovery of £0.120m in Other Local Authorities income due to the number of other authority children accessing a place in NAC establishments. 1,524
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Appendix 2a Budget £000 Projected Variance £000 Variance as % of budget Section Note 5 Central Education 4,364 2,022 46% Employee costs: mainly as a result of significant increase in costs associated with mandatory cover for teacher maternity cover and sickness absence. There are currently 32 Teachers (27.4 FTE) on maternity leave as well as 7 Early Years Practitioners and 4 Classroom Assistants. Absence levels are subject to regular review across the service and appropriate actions are taken to maximise attendance. Average days lost per FTE is 3.3 for the period April-June. Average days lost last year was 11 related to the whole service. 734 302 41% There is a projected under recovery of teacher induction grant funding linked to a reduction in the number of probationary teachers allocated to North Ayrshire by the Scottish Government. Core placement allocations have been reduced from 51 FTE to 34 FTE resulting in a £0.302m reduction in anticipated grant funding. 1,731 (103) -6% Income: PPP insurance rebate £0.065m and PPP deductions of £0.038m in excess of budget 2 Other minor movements. 2,223 Note 6 Facilities Management 12,687 (136) -1% Employee Costs: There is an underspend of £0.459m primarily due to recruitment challenges and a targeted reduction of overtime and casual costs offset by a budgeted turnover target of £0.323m resulting in a net underspend of £0.136m 6,041 (268) -4% Supplies and services: There is a projected underspend in food costs due to lower than anticipated attendance rates within Early Years. (2,952) (342) 12% Income: There is a projected over-recovery of school meal income of £0.388m due to increased uptake. This is partly offset by an under-recovery in commercial income of £0.027m and cleaning/janitorial income of £0.019m. (746)
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Appendix 3 PLACE BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 184 184 - 0% Neighbourhood Services Roads 7,066 7,066 - 0% Streetscene 4,840 4,840 - 0% Waste Resources 9,321 9,671 350 4% 1 Municipalisation Advertising (123) (73) 50 (41%) 2 Total for Neighbourhood Services 21,104 21,504 400 2% Economic Development, Growth and Investment Economic Policy 264 264 - 0% Employability & Skills 1,746 1,746 - 0% Regeneration 855 855 - 0% Business 820 820 - 0% Growth & Investment 247 247 - 0% Total for Economic Development, Growth and Investment 3,932 3,932 - 0% Sustainability, Transport and Corporate Property Property Management & Investment 1,409 1,462 53 4% 3 Housing Assets & Investment (1) (1) - 0% Property Maintenance 3,662 3,762 100 3% 4 Property Running Costs 4,880 4,972 92 2% 5 Energy and Sustainability 7,258 7,258 - 0% Internal Transport 10,271 10,582 311 3% 6 Total for Sustainability, Transport and Corporate Property 27,479 28,035 556 2% Net Total 52,699 53,655 956 2%
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Appendix 3 Subjective Summary Annual Budget Projected Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 27,325 27,747 422 2% Property Costs 21,639 21,818 179 1% Supplies and Services 4,481 4,502 21 0% Transport and Plant Costs 7,032 7,396 364 5% Administration Costs 556 558 2 0% Other Agencies & Bodies 14,921 14,825 (96) (1%) Transfer Payments - - - 0% Other Expenditure 78 67 (11) (14%) Capital Financing - - - Gross Expenditure 76,032 76,913 881 1% Income (23,333) (23,258) 75 (0%) Net Expenditure 52,699 53,655 956 2%
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Appendix 3a PLACE BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Waste Services 4,916 422 9% Employee Costs: The overspend includes the temporary additional resources required to address the significant and challenging sickness absence rates and the additional resource requirement during the implementation phase of revised waste collection schedules. The statutory nature of the service requires additional resources to cover unforeseen absences. A robust absence monitoring process is in place and dedicated resource is being recruited to monitor and review the absence management process in Waste. An overall review of the Waste service in light of legislative changes and current service demands is ongoing. This will also take account of waste compositional analysis. 214 68 32% Transport Costs: Additional temporary vehicles are in place during the implementation phase of revised waste collection schedules. 6,788 (114) (2%) Third Party: Underspends from the kerbside recyclate contracts of £0.066m and £0.049m from organics contract. (26) Other minor movements. 350 Note 2 Municipalisation Advertising (123) 50 (41%) Income: An under recovery of £0.050m primarily due to lead in time for vehicle advertising and unfavourable market conditions. 50 Note 3 Property Management and Investment (1,263) 40 (3%) Income: There is a projected under-recovery of fee income of £0.040m. 13 Other minor movements 53 Note 4 Property Maintenance Costs 7,024 100 1% Property costs: There is a projected overspend of £0.100m for RAAC remedial works. 100 Note 5 Property Running Costs 6,667 83 1% Property Costs: There is a £0.083m projected overspend for statutory compliance repair obligations across the commercial estate. 9 Other minor movements 92 Note 6 Internal Transport 1,670 55 3% Employee Costs: There is a projected overspend of £0.055m due to unachieved turnover. 4,682 225 5% Transport Provision Costs: There is a projected overspend of £0.225m due to a higher number of pupils requiring transport. 1,876 (71) (4%) Fuel: There is a projected underspend in fuel of £0.071m due to a decrease in fuel prices. 1,228 50 4% Repairs & Maintenance: There is a projected overspend of £0.050m in repairs and maintenance as a result of price increases and maximising the life of assets due to replacement vehicle lead times. 52 Other minor movements 311
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Appendix 4 COMMUNITIES AND HOUSING BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 117 117 - 0% Housing and Public Protection Building Services (2,798) (2,798) - 0% 1 Property Governance 249 249 - 0% Planning Services 283 189 (94) (33%) 2 Protective Services 1,616 1,616 - 0% Other Housing 2,548 2,613 65 3% 3 Total for Housing and Public Protection 1,898 1,869 (29) (2%) Connected Communities 11,654 11,730 76 1% 4 Net Total 13,669 13,716 47 0% Subjective Summary Annual Budget Projected Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 26,347 26,391 44 0% Property Costs 2,905 2,920 15 1% Supplies and Services 6,692 6,721 29 0% Transport and Plant Costs 1,027 1,028 1 0% Administration Costs 292 292 - 0% Other Agencies & Bodies 11,524 11,531 7 0% Transfer Payments - - - 0% Other Expenditure 104 144 40 38% Capital Financing - - - Gross Expenditure 48,891 49,027 136 0% Income (35,222) (35,311) (89) 0% Net Expenditure 13,669 13,716 47 0%
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Appendix 4a COMMUNITIES AND HOUSING BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Building Services 5,641 (141) (2%) Supplies & Services: An underspend of £0.141m in supplies and services. This is primarily due to an underspend in materials as a result of a reduction in void kitchen and bathroom works. (23,408) 168 (1%) Income: A projected under recovery in income of £0.168m due to a reduction in the volume of void kitchens and bathrooms offset by increased damp works and residual storm damage works from 23/24. (27) Other minor movements - Note 2 Planning Services (584) (94) 16% Income: Forecasted over recovery of £0.094m due to additional planning fee application income. (94) Note 3 Other Housing 104 40 38% Other Expenditure: There is a forecasted additional bad debt provision of £0.040m. 25 Other minor movements 65 Note 4 Connected Communities 6,008 76 1% Employee Costs: Overspend of £0.076m is a result of revised programming of implementation of the approved saving to reduce library opening hours by 20%. 76
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Appendix 5 OTHER CORPORATE ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Strathclyde Passenger Transport 2,331 2,232 (99) (4%) SPT Concessionary Fares 286 286 - 0% Ayrshire Joint Valuation Board 973 932 (41) (4%) 3,590 3,450 (140) (4%) 1 Other Corporate Costs Pension Costs 1,895 1,895 - 0% Central Telephones 350 350 - 0% Other Corporate Items (incl Transformation Costs, Bad Debt Provision, External Audit fees and other centrally held funding.) 24,538 22,948 (1,590) (6%) 2 Housing Benefits -51 15 66 -129% 3 30,322 28,658 (1,664) (5%)
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Appendix 5a OTHER CORPORATE ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Joint Boards 3,590 (140) -4% Projected underspend of (£0.140m) due confirmation of annual requisitions and applicable refunds. (140) Note 2 Other Corporate Items 24,538 (1,590) -6% The projected underspend is primarily related to centrally held inflationary cost provisions, which are being applied to offset pressures reported across other services (£0.513m), additional income from employee benefit schemes (£0.319m)and additional Scottish Government grant income not required in year (£0.758m). (1,590) Note 3 Housing Benefit (51) 66 -129% Projected overspend of £0.066m due to Housing Benefit Overpayment Recovery 66
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Appendix 6 MISCELLANEOUS ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % variance Note No £000 £000 £000 Financing Charges 12,947 12,947 - - Contribution to Loans Fund Reserve 5,699 5,699 - - Scottish Government Funding (369,870) (369,870) - - Council Tax (65,681) (65,962) (281) 0% 1 Use of Earmarked Funds (5,517) (5,517) - - Net Total (422,422) (422,703) (281) 0% Growth in the Council Tax base (£0.701m) has been partly offset by an increase in the value of CTR claims received, £0.347m, and adjustment for prior years, £0.073m. Reported collection rates have shown an initial improvement and are line with pre pandemic levels. Note 1 Council Tax
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Appendix 7 HOUSING REVENUE ACCOUNT BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £ £ £ Employee Costs 5,118 5,118 - 0% Property Costs Responsive Repairs 7,670 7,720 50 1% Void Repairs 4,192 4,285 93 2% Planned and Cyclical Maintenance 5,544 6,029 485 9% Aids and Adaptions 1,617 1,617 - 0% Other property costs 3,671 3,883 212 6% Total for Property Costs 22,694 23,534 840 4% 1 Supplies & Services 2,353 2,348 (5) (0%) Transport Costs 21 21 - 0% Administration Costs 1,756 1,762 6 0% Third Party Payments 3,752 3,800 48 1% Transfer Payments 163 163 - 0% Other Expenditure 490 503 13 3% Capital Financing Costs 26,526 24,715 (1,811) (7%) 2 Gross Expenditure 62,873 61,964 (909) (1%) Income Council House Rents (60,202) (60,145) 57 (0%) Other Rents (473) (66) 407 (86%) Recharges (1,082) (903) 179 (17%) Other Income (1,116) (1,116) - 0% Total Income (62,873) (62,230) 643 (1%) 3 Net Expenditure - (266) (266)
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Appendix 7a HRA BUDGETARY CONTROL 2024/25 REPORT FOR THE 3 MONTHS TO 30 JUNE 2024 Budget £000 Variance £000 Variance as % of budget Note 1 22,694 840 4% 840 Note 2 26,526 (1,811) -7% (1,811) Note 3 (62,873) 643 -1% 643 B/fwd from 2023/24 Transfer to / from Reserves Use of Earmarked sums Earmarking of in year surplus Funding of Capital Projects Projected Balance at 31/03/25 £m £m £m £m £m £m 11.590 - - 0.266 (0.544) 11.312 5.000 - - - - 5.000 2.000 - - - - 2.000 1.553 - - - - 1.553 0.300 - - - - 0.300 0.123 - - - - 0.123 20.566 - - 0.266 (0.544) 20.288 Council House Building Fund Sustainability Fund Software licences Transformation Programme Tenant led budget Unearmarked Section Income Property Costs There is a projected £0.485m overspend in relation to Planned and Cyclical Maintenance largely due to £0.220m costs in relation to storm damage works resulting from adverse weather conditions early in 2024 and £0.209m projected overspend due to increased costs in relation to timber and damp works. A projected overspend of £0.212m in other property costs, mainly relating to £0.230m of response repairs due to the volume and scope of the works. In addition there are projected overspends of £0.093m in Void Repairs. HRA reserves and balances An under recovery in income of £0.643m. This is due to an under recovery in Council House Rents of £0.057m, £0.407m in Other Rents, following a review of overpayments including external landlords and agencies and an under recovery of £0.179m primarily in relation to recharges for sheltered housing unit hub costs. Capital Financing Costs A projected underspend of £1.811m in capital financing costs reflects continuing strategy to delay new external borrowing by utilising cash balances, resulting in savings on external interest costs and changes in the profile of the capital programme.
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Appendix 8 Education YMI - Employee Costs T 0.092 YMI - Transport Costs T 0.002 YMI - Supplies & Services T 0.010 YMI - Third Party Payments T 0.086 YMI - Income T -0.190 FM - Employee Costs T 0.789 FM - Income T -0.101 FM - Supplies & Services T -0.688 0.000 Place Roads - Employee Costs P 0.120 Roads - Income P -0.120 Employability - Employee Costs T 0.829 Employability - Third Party Payments T 3.154 Employability - Supplies and Services T 0.050 Employability - Property Costs T 0.030 Employability - Income T -4.063 0.000 Communities & Housing Other Housing - Third Party Payments P 0.102 Other Housing - Income P -0.184 Other Housing - Property Costs P 0.082 Information and Culture - Employee Costs T 0.040 Information and Culture - Third Party Payments T 0.040 Information and Culture - Supplies and Services T 0.069 Information and Culture - Income T -0.149 Community Development Multiply Programme - Employee Costs T 0.231 Community Development Multiply Programme - Supplies and Services T 0.131 Community Development Multiply Programme - Third Party Payments T 0.060 Community Development Multiply Programme - Administration Costs T 0.031 Community Development Multiply Programme - Income T -0.453 0.000 0.000 Budget Management - 30 June 2024 Virement/Budget Adjustment Requests 2024/25 Perm (P) / Temp(T) Virement £m Directorate Total £m
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Integration Joint Board 22nd August 2024 Subject : 2024-25 – Month 3 Financial Performance Purpose : To provide an overview of the IJB’s financial performance as at month 3 (June). Recommendation : It is recommended that the IJB: (a) notes the overall integrated financial performance report for the financial year 2024-25 and the current overall projected year- end overspend of £6.555m, reduced to £3.143m through already identified financial recovery actions; (b) notes the progress with delivery of agreed savings; (c) notes the actions which are being taken to progress financial recovery and that a further recovery plan will be presented to the IJB in September; (d) notes the remaining financial risks for 2024-25; and (e) approves the budget reductions which are detailed at paragraph 2.10 (f) agrees the Terms of Reference for the Finance Working Group which are included at Appendix F. Direction Required to Council, Health Board or Both Direction to :- 1. No Direction Required X 2. North Ayrshire Council 3. NHS Ayrshire & Arran 4. North Ayrshire Council and NHS Ayrshire & Arran Glossary of Terms NHS AA NHS Ayrshire and Arran HSCP Health and Social Care Partnership MH Mental Health CAMHS Child & Adolescent Mental Health Services BRAG Blue, Red, Amber, Green UNPACS UNPACS, (UNPlanned Activities) – Extra Contractual Referrals NRAC NHS Resource Allocation Committee PAC Performance and Audit Committee MHOF Mental Health Outcome Framework
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1. EXECUTIVE SUMMARY 1.1 The report provides an overview of the financial position for the Partnership and outlines the projected year-end outturn position informed by the projected expenditure and income commitments; these have been prepared in conjunction with relevant budget holders and services. It should be noted that, although this report refers to the position at the end of June, further work is undertaken following the month end to finalise projections, therefore the projected outturn position is as current and up to date as can practicably be reported. 1.2 The projected outturn is a year-end overspend of £6.555m (2.0%) for 2024-25, reduced to £3.143m through already identified financial recovery actions. There is an increasing risk to achieving financial balance during 2024-25, the projected outturn position is summarised below with the residual risk following already identified financial improvement actions: TOTAL Health/NHS AA Social Care/NAC Projected Overspend @ mth3 £6.555m £0.586m £5.969m Financial Recovery Plan Projections £3.412m £0.381m £3.031m Residual Risk £3.143m £0.205m £2.938m 1.3 From the core projections, overall, the main areas of pressure are care at home, residential placements for children, physical and learning disability care packages, supplementary staff in wards, staff costs in Montrose House and Unplanned Activities (UnPACs) within the lead partnership for mental health. 1.4 The projected IJB outturn position has been adjusted to reflect the impact of Lead Partnership services. The underspend in relation to North Lead Partnership services for Mental Health is not fully attributed to the North HSCP as a share has been allocated to East and South HSCPs, similarly the impact of the outturn on East and South led services has been shared with North, both on an NRAC basis in line with the agreed risk sharing mechanism. 2. CURRENT POSITION 2.1 The report includes an overview of the financial position including commitments against the available resource, explanations for the main budget variances and an update on progress in terms of savings delivery. 2.2 FINANCIAL PERFORMANCE – AT MONTH 3 At month 3 against the full-year budget of £320.076m there is a projected year-end overspend of £6.555m (2.0%). The Integration Scheme outlines that there is an
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expectation that the IJB takes account of the totality of resources available to balance the budget in year. Following this approach, an integrated view of the financial position should be taken, however it is useful to note that this overall position consists of a projected overspend of £5.969m in social care services and a projected overspend of £0.586m in health services. Appendix A provides the financial overview of the Partnership position. The sections that follow outline the significant variances in service expenditure compared to the approved budgets. The projections for some areas will be subject to fluctuations as they depend on recruitment plans for new funding and also the capacity of providers to take on work. 2.3 Health and Community Care Services Against the full-year budget of £90.054m there is a projected overspend of £5.987m (6.6%) and the main variances are: a) Care home placements - the budgeted number of permanent placements was 765 and at month 3 there were 779 placements. The projected overspend is £0.551m on permanent placements and respite placements are projected to be £0.023m underspent. A plan is in place to manage down the number of permanent placements to reach the target. Income recovered from charging orders is projected to be £0.550m over recovered. This income is challenging to predict as it depends on the length of the legal process and time taken to sell the property that the charging order is registered to. b) Care at home (in house and purchased) is projected to be £3.254m overspent. The position reflects the cost of meeting the significant demand and level of provision for care at home support. These projections include the estimated cost of bringing the purchased services inhouse. The projection is complex due to services being brought in-house at different times, the number of posts and vacancies transferred, the estimated time to fill all of the posts and the costs of covering the required hours (plain time versus overtime) until the posts are filled. The projection is historically based on average costs to date but the data for month 1 – 3 is skewed because of the transfer of the purchased service at different points so this will be reviewed and refined in month 4 and 6 when there will be more representative data. c) Physical Disability Services – projected overspend of £0.652m split as follows: £0.966m over in residential placements, £0.042m over in direct payments and £0.356m under in community care packages.
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d) Integrated Island Services is projected to overspend by £0.686m. The most significant variance is a projected overspend at Montrose House of £0.582m which relates to the net overspend on agency staff (i.e. net of underspend on employee costs). e) Specialist Rehab wards – projected overspend of £0.135m (Redburn ward £0.148m overspend and Douglas Grant £0.013m underspend). The overspend is due to cover costs for vacancies as well as supplementary staffing for patients who require one to one support. f) Wards 1 and 2 – Projected overspend of £0.765m due to use of supplementary staffing. 2.4 Mental Health Services Against the full-year budget of £106.951m there is a projected overspend of £0.591m (0.6%) prior to the reallocation of the Lead Partnership variance to East and South HSCP. The main variances are: • Learning Disabilities are projected to overspend by £0.596m across community care packages, direct payments and residential placements. • Community Mental Health services are projected to underspend by £0.400m which is mainly due to a projected underspend of £0.528m in community packages and an overspend in residential placements of £0.134m and direct payments of £0.056m. The main reason for underspend is the availability and capacity of adult community providers to deliver new packages of care. • There is a projected underspend of £0.141m in relation to the cost of Hospital Based Complex Continuing Care (HBCCC), this reflects the impact of change in provision for these services. • The Lead Partnership for Mental Health is projected to be £0.521m overspent and the main variances are as follows: • Adult Inpatients – overspent by £0.384m due to overspends in supplementary staff for enhanced observations (1:1 and 2:1) and use of bank staff. • The UNPACS (Unplanned Activities) budget – projected overspend is £0.727m based on current placements and an allowance for one further placement. The actual cost of the future placements may be different from the estimated cost assumed in the projection. These placements are for individuals with very specific needs that require a higher level of security and/or care from a staff group with a particular skill set/competence. There are no local NHS secure facilities for women,
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people with a learning disability or people with neurodevelopmental disorder. This can necessitate an UNPACs placement with a specialist provider which can be out-of-area. The nature of mental health UNPACs spend is that it is almost exclusively on medium or long term complex secure residential placements which are very expensive so a small change in placements can have a high budgetary impact. Due to the complexity and risk involved, transitions between units or levels of security can take many months. Applications to approve a placement are made to the Associate Medical Director for Mental Health who needs to be satisfied that the placement is appropriate and unavoidable prior to this being agreed. A new group has been established to review the UnPACS budget and placements with a wider service representation. • Learning Disability Services – projected to underspend by £0.549m. This position is after recharging other areas on a cost basis for two outwith authority placements which have incurred additional costs in relation to usage of supplementary staffing due to sustained enhanced observations. There is a risk in relation to recovering this income as the two areas receiving the charges are currently refusing to pay and legal advice is being sought. • Elderly Inpatients – projected overspend of £0.411m due to the use of supplementary staffing. There are several patients who are on enhanced observations and bank costs remain high. • MH Pharmacy – is projected to overspend by £0.486m due to increased demand and cost of medicines. ▪ Innovation Fund – projected underspend of £0.112m due to slippage within some of the projects and not all of the funding has been allocated. ▪ Action 15 – projected online as any underspend will be carried forward for use in 25-26. • The turnover target for vacancy savings for the Lead Partnership is held within the Lead Partnership as this is a Pan-Ayrshire target. There is a projected over recovery of the vacancy savings target of £0.819m in 2024-25. Further information is included in the table below: Vacancy Savings Target (£1.116m) Projected to March 2025 £1.935m Over/(Under) Achievement £0.819m
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2.5 Children and Justice Services Children’s Services Against the full-year budget of £43.902m there is an overspend of £1.583m (3.6%) pre earmarking and the main variances are: a) Care Experienced Children and Young People is projected to overspend by £1.721m. The main areas within this are noted below: • Following budget investment of £4m the children’s residential placements are overspent by £2.041m based on 35 placements at month 3 and assuming that these placements will remain until the year end. There are a number of factors leading to this challenging position: • We have 32 places available in our internal children’s houses, due to demand these have been operating at 100% occupancy for some time, leading to increased use of external placements where residential care is required. • The requirement to support Unaccompanied Asylum-Seeking Children (UASC) under the National Transfer Scheme and to support trafficked young people who have been identified in North Ayrshire. • A number of young people in residential care have requested Continuing Care, whereby a young person can remain in their placement until age 21. • Where appropriate young people are placed to meet their educational needs, the cost of Residential School Placements in the most cases is shared 50/50 with Education services. Children’s Services are continuing to work with other services including Education and Housing to address the challenges through the work of the ‘Brighter Pathways’ Programme Board and associated workstreams. This forms part of the Transformation Plan which was approved at the March IJB. • Looked After and Accommodated Children (fostering, adoption, kinship etc) is projected to be £0.701m underspent. • Children with disabilities – there is a net projected overspend of £0.124m across residential placements, direct payments and community packages. • Residential respite – placements are overspent by £0.058m. These short- term placements are used to prevent an admission to full time care or to avoid placement breakdown. b) Head of Service – is projected to underspend by £0.471m. This is made up a projected overspend due to the planned saving of £0.233m in relation to the staff reconfiguration in the children’s houses which was not achieved in 23-
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24 and this is offset by the grant funding in relation to Unaccompanied Asylum-Seeking Children, which is projected to over-recover by £0.765m and which covers costs incurred across a number of C&F service areas. c) C&F Health Team – is projected to overspend by £0.261m mainly in relation to the Band 6 to 7 regrade for Health Visitors and the progression of posts up the Band 7 scale. 2.6 ALLIED HEALTH PROFESSIONALS (AHP) The non-employee costs element of the AHP services are projected to be on-line. All underspends in employee costs have contributed to payroll turnover. 2.7 CHIEF SOCIAL WORK OFFICER There is a projected underspend of £0.062m mainly due to a delay in spend in the Carers Strategy funding. 2.8 MANAGEMENT AND SUPPORT Management and Support Services are projected to underspend by £1.361m and the main areas of underspend are: • There is projected slippage on the LD and MH transition funding of £0.586m due to delays in children transitioning into adult services and actual costs being less than estimated. This involves complex planning by services with service users and families and can change over time based on assessed need when moving into adult services. • The 2024-25 budget included a budgeted deficit on the social care side of £0.437m which is offset by a budgeted surplus of £0.437m on the health side of the budget. The net impact is neutral, but Appendix A shows this position for each element. • An over-recovery of payroll turnover of £0.500m for social care services and an over-recovery of payroll turnover of £0.488m for health services as outlined in the table below. The turnover targets and achievement for the financial year for Health and Social Care services outwith the Lead Partnership is noted below: Social Care Health Vacancy Savings Target (3.301m) (1.522m) Achieved to March 2025 3.801m 2.010m Over/(Under) Achievement 0.500m 0.488m
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The areas contributing to the health and social care vacancy savings are spread across a wide range of services with vacancy savings being achieved in most areas. The partnership significantly over-achieved on turnover targets last financial year which helped greatly to support the overall financial position. The early projections for 24-25 indicate a reduction in the turnover being projected, which reflects a more optimistic position for recruitment and reduced vacancies but clearly has an impact on the ability to use this to offset overspends in other budget areas. As part of the recovery plan, the vacancy scrutiny group has been enhanced with the Heads of Service and professional leads attending. Each post is scrutinised and filled only where deemed necessary with a recruitment freeze now implemented for all non-essential posts. The turnover target for the North Lead Partnership for Mental Health services is detailed within the Lead Partnership information at section 2.4. 2.9 Savings Progress a) The approved 2024-25 budget included £10.290m of savings. BRAG Status Position at Budget Approval £m Position at Month 3 £m Red - - Amber 0.523 0.675 Green 9.767 0.600 Blue - 9.015 TOTAL 10.290 10.290 b) The main area to note is that the amber savings have increased as the care home budget is currently projecting an overspend but this will be managed into an online position. Appendix B provides an overview of those service changes which do have financial savings attached to them and the BRAG status around the deliverability of each saving. 2.10 Budget Changes The Integration Scheme states that “either party may increase it’s in year payment to the Integration Joint Board. Neither party may reduce the payment in-year to the Integration Joint Board nor Services managed on a Lead Partnership basis…. without the express consent of the Integration Joint Board.” Appendix C highlights the movement in the budget position following the initial approved budget.
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Reductions Requiring Approval: Ref Description Amount (£000) 1 * Pecos Nurse Post – spend to save initiative re wound management supplies (18) 2 * Script Switch To Pharmacy – contribution to increased contract costs for Script Switch (2) 3 Tier 3 Weight Management – North’s contribution to the project as per the 24/25 approved budget (99) 4 Training Grade Adjustment - June (54) 5 * Prescribing Saving – North elements (Ambush North Rx Cres) (1,477) 6 Office 365 - North’s contribution to the project as per the 24/25 approved budget (73) 7 Prison Pharmacy Contract- North’s contribution to the project as per the 24/25 approved budget (93) 8 GIRFEC – realign to the Connected Communities Team (73) 9 ICT transfers (6) *these budget adjustments relate to the prescribing budget, the budget is delegated to the IJB but the financial position/outturn on prescribing is not, therefore there is no impact on the IJB position from any budget adjustments relating to prescribing. In 2023-24 there was a pan-Ayrshire budget reduction of £0.243m in relation to the Ayrshire and Arran contribution to Foxgrove. This contribution required further due diligence with NHS Ayrshire and Arran and NSD. This figure should have been £0.060m and this is adjusted in the 2024/25 financial year, with the NHS AA Director of Finance confirming a rebate will be processed. 2.11 Pan Ayrshire Lead Partnership services and Large Hospital Set Aside Lead Partnerships: - The IJB position is adjusted to reflect the impact of Lead Partnership services. The outturn for all Lead Partnership services is shared across the 3 Partnerships on an NRAC basis. The outturn in relation to North Lead Partnership services is not fully attributed to the North IJB as a share is allocated to East and South Partnerships; similarly, the impact of the outturn on East and South led services is shared with North. At Month 3 the MH lead partnership is projected to overspend by £0.521m (£0.171m NRAC share for East and £0.149m for South). South HSCP – projected overspend of £0.551m of which £0.204m will be allocated to North. The variance is mainly due to an overspend of £0.512m in the community store. This includes the costs of replacing mattresses, repairs and maintenance contract and equipment costs. There is also a projected overspend of £0.069m in the continence service and an underspend £0.030m in the Family Nurse Partnership.
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East HSCP (note that this in month 2 projection info) – projected underspend of £0.032m in total (of which £0.012m will be allocated to North). This includes assumed future Scottish Government funding to offset projected expenditure on Covid-19 Therapeutics and Urgent Care Pathway within Primary Care. The main projected variances are as follows: Primary Care (including Dental) - The £0.112m projected overspend at month 2 largely relates to additional staffing costs in Ayrshire Urgent Care Services and Primary Medical Services, partially offset by recruitment slippage, mainly in Dental services. Prison and Police Healthcare - The £0.224m projected underspend at month 2 largely relates to recruitment slippage, with posts anticipated to be filled in the second half of the financial year. Allied Health Professions - The £0.172m projected underspend at month 2 largely relates to recruitment slippage. Other Lead Services - The £0.252m projected overspend at month 2 relates to additional staffing costs in Area Wide Evening Services. Set Aside: - Work has been undertaken with partnerships to progress and develop set aside arrangements to fully implement the legislative requirement. This includes arrangements in relation to the use of Directions, Joint Commissioning Plans and overall progression towards fair share allocations of resources. 1. Further work has been undertaken through the Ayrshire Finance Leads group to establish baseline resources for each partnership and how this compares to the NRAC “fair share” of resources. Ayrshire Finance Leads have now agreed a baseline methodology for set aside budgets which involves using the four full years prior to the pandemic, 2016/17 – 2019/20 inclusive. The 2023/24 usage is now available as is Q1 of 2024/25 and these will be presented to Ayrshire Finance Leads for validation. IJB Baseline at 2022/23 prices (£) East 26,215,888 North 35,007,962 South 28,371,789 Total 89,595,639 The annual budget for Acute Services is £430.6m. The directorate overspent by £8.2 million after 3 months. This was caused by overspends on agency medical and nursing staff, together with drug expenditure including the New Medicines Fund,
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equipment and supplies. These have been required due to the level of operational pressure being experienced, in common with many other areas in Scotland. 144 additional unfunded beds remained open across both main hospital sites during March. There is a material underlying deficit caused by: • Unachieved efficiency savings • Length of Stay (LoS) in NHS Ayrshire and Arran acute hospitals is above the Scottish average • High expenditure on medical and nursing agency staff, high rates of absence and vacancies causing service pressure. • Delayed transfers of care and high acuity of patients. The IJBs and the Health Board work closely in partnership to maintain service and improve performance. Initial work has commenced to develop a joint strategic commissioning plan for the provision of unscheduled care services, which will outline these services will be delivered over the medium-term using the set aside resources available. This will support a shift in the balance of care into the community and support a reduction in the number of acute beds. 2.12 FINANCIAL RISKS There are a number of financial risk areas that impact or may impact on the financial position. • The recent announcement by Scottish Government in relation to public sector finances may impact on current and future funding, including for 2024-25 pay awards, which have not yet been settled for local government or NHS. • Continued growing demand for services. • Staff recruitment and retention challenges across a number of service areas. • The provider market and the ongoing ability to source packages of care for service users. • The expectation that performance will continue to be maintained or improved despite the significant resource challenges, for example the joint mission for delayed discharge improvement. • Ongoing delivery costs of Scottish Government policy directives, particularly where these are not fully funded or inflation proofed. • The ongoing review of the Integration Scheme. • Progress with the work to develop set aside arrangements and the risk sharing arrangements agreed as part of this. • The wider system financial challenges, especially the financial position of NHS Ayrshire and Arran Health Board, their financial deficit and the risks around further escalation in the national framework for financial escalation. North Ayrshire IJB have already discussed our position in relation to the request for payment for delayed discharges last financial year.
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• The underlying levels of overspend which are recurring into 2024-25 and may impact on the Partnership’s ability to continue to sustain service levels in the future. • The IJB free general fund reserves are estimated to be fully utilised during this financial year, leading to an increased risk of requiring additional in-year financial contributions from NHS Ayrshire and Arran and North Ayrshire Council to break-even. • High risk areas of low volume / high-cost services areas e.g. Children’s residential placements, Learning Disability care packages and complex care packages; • Lead / hosted service arrangements, including managing pressures and reporting this across the 3 IJBs. • The impact on Lead Partnership and acute services from decisions taken by other Ayrshire areas. • The use of supplementary staffing for enhanced observations across a number of service areas. • The use of high-cost agency staff to support frontline service delivery in areas where there are recruitment challenges. • Agenda for change Pay Reform programme – including Nursing Band 5-6 re- grade, protected learning time and reduction to the working week. These risks will continue to be monitored during 2024-25. 2.13 RESERVES The IJB reserves position is summarised in the table below. The opening ‘free’ general fund balance of £0.357m is held as a contingency balance and does not meet the target range of 2%-4%. General Fund Reserve Earmarked Reserves Total Unearmarked External Funding HSCP £m £m £m £m Balance – 1 April 2024 0.357 3.379 1.774 5.510 The £1.774m HSCP earmarked reserve relates to the Service Redesign and Change Fund; of this total only £0.049m remains uncommitted with the balance being committed to investment in an early intervention approach within Children and Families social work and supporting the delivery of the transformation programme across 2024-25 and 2025-26. There is no flexibility to free up this resource as it is mostly funding additional posts with the HSCP. Further detail on the opening reserves is given in Appendix D.
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2.14 Financial Recovery Plan The IJB set a balanced budget for 2024/25 on 14th March 2024. This did not require any draw on reserves but did include the approval of £10.290m of savings to achieve financial balance. Following the finalisation of the 2023/24 outturn position, the IJB agreed some initial recovery actions at the meeting in June. In line with the requirements of the integration scheme, a more detailed financial recovery plan has now been developed and is presented for approval by the IJB; this is outlined in Appendix E. There has been progress towards some of the targets which were agreed in June, and these are already reflected in the current projected outturn of £6.555m overspend. Further work is required to deliver on the balance of these targets as well as the additional targets which have now been identified. Services will work towards implementing the recovery plan to deliver on these cost reduction targets while carefully managing the level of risk. This will include the preparation of equality impact assessments. It is recognised that there needs to be further savings identified to move towards a breakeven position. Any decisions to implement changes which have significant impact on service delivery and the wider system will be discussed at the Finance Working Group before being brought back to the IJB for further approval as part of the financial recovery plan. MANAGEMENT ACTIONS/CONTROLS: Other management actions which have been implemented include: • Review of expenditure authorisation levels across the Partnership and escalation of specific decisions to senior officers. In particular, a new governance group has been introduced, involving the Director and Heads of Service, to oversee the agreement of higher value packages of care (above £40,000 per annum). • Staff communication in relation to discretionary/non-essential spend. • Review of temporary posts and robust vacancy management/approval. The vacancy scrutiny group now has representation from all of the Heads of Service and a recruitment freeze will be implemented for all but essential frontline posts. • Ongoing review of future year savings or transformation programmes to identify scope for acceleration. • Maximise opportunities from the recently reopened Independent Living Fund (ILF) Scotland.
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GOVERNANCE: • In order to facilitate greater scrutiny of the financial position and the delivery of the financial recovery plan during 2024/25, the IJB agreed at the June meeting to establish a ‘Finance Working Group’, chaired by the IJB Vice Chair. The Director and Heads of Service will be members of the group. This will meet monthly to facilitate increased oversight and scrutiny of the financial position and transformation programme as well as detailed budget planning for future financial years. A ‘terms of reference’ document has been developed and is attached at Appendix F for IJB approval. Meetings have now been scheduled to the end of the year and expressions of interest will be sought from IJB members. • Strengthened support from Finance Team to front line services and increased engagement with Heads of Service and Senior Management Teams, including line by line reviews of all budget areas. Review and enhancement of frequency and level of financial information provided to support oversight and decision making in line with financial constraints, with an added focus on areas of underspend to maximise opportunities to delay or stop spend and contribute to the overall financial challenge. INTEGRATION SCHEME The Integration Scheme describes the required approach where there is a projected overspend: The Chief Officer will deliver the Outcomes within the total delegated resources (paid and Set Aside) and where there is a forecast overspend against an element of the operational budget, the Chief Officer, the Chief Finance Officer of the Integration Joint Board and the appropriate finance officers of the Parties must agree a recovery plan to balance the overspending budget, which recovery plan shall be subject to the approval of the Integration Joint Board. If the recovery plan is not successful the Parties will consider making interim funds available based on the agreed percentage contribution for joint responsibilities, as outlined above, with repayment in future years on the basis of a revised recovery plan agreed by the Parties and Integration Joint Board. There is an increasing risk to achieving financial balance during 2024-25, the projected outturn position is summarised below with the residual risk following already identified financial improvement actions and illustrates the current estimated risk exposure to the IJBs funding partners: TOTAL Health/NHS AA Social Care/NAC Projected Overspend @ mth3 £6.555m £0.586m £5.969m Financial Recovery Plan Projections £3.412m £0.381m £3.031m Residual Risk £3.143m £0.205m £2.938m
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3. PROPOSALS 3.1 Anticipated Outcomes Continuing to closely monitor the financial position will allow the IJB to take corrective action where required to deliver services in 2024-25 from within the available resource, thereby limiting the financial risk to the funding partners. The transformational change programme will have the greatest impact on the financial sustainability of the partnership, the IJB require to have a clear understanding of progress with the delivery of the transformation plan. 3.3 Measuring Impact Ongoing updates to the financial position will be reported to the IJB throughout 2024- 25. 4. IMPLICATIONS 4.1 Financial The outturn is an overall year-end overspend of £6.555m (2.0%). The report outlines the main variances for individual services. There IJBs unearmarked reserve balance is projected to be zero by the end of the financial year and there is an ongoing risk in relation to the £3.1m of the overspend where financial recovery improvement actions require to be identified. This current position poses a financial risk to North Ayrshire Council and NHS Ayrshire and Arran. 4.2 Human Resources The report highlights vacancy or turnover savings achieved during the year. Services will review any staffing establishment plans and recruitment in line with normal practice when implementing service change and reviews as per agreement with the IJB. Tight vacancy scrutiny management arrangements are in place for the HSCP. 4.3 Legal None. 4.4 Equality/Socio-Economic None. 4.5 Risk Para 2.12 highlights the financial risks. The report falls in line with the agreed risk appetite statement which is a low-risk appetite in respect to adherence to standing financial instructions, financial controls and financial statutory duties and a high-risk appetite in relation to finance and value for money. The ‘financial viability of the HSCP’ risk on our strategic risk register has increased the risk score to reflect the 23/24 outturn and current projected 24/25 overspend.
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4.6 Community Wealth Building None. 4.7 Key Priorities The ability to deliver on our strategic priorities may be compromised due to the greater financial risk faced in 2024-25 and the increased focus required on financial rather than service improvement. This will be kept under close scrutiny throughout 2024-25. If we are unable to successfully develop a financial recovery plan to achieve financial balance, consideration may be given to revising the strategic commissioning plan. 5. CONSULTATION 5.1 This report has been produced in consultation with relevant budget holders and the Partnership Senior Management Team. 5.2 The IJB financial monitoring report is shared with the NHS Ayrshire and Arran Director of Finance and North Ayrshire Council’s Head of Finance after the report has been finalised for the IJB. Caroline Cameron, Director Author – Paul Doak, Head of Finance and Transformation Eleanor Currie, Principal Manager Finance [pdoak@north-ayrshire.gov.uk/eleanorcurrie@north-ayrshire.gov.uk]-
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PUBLIC INFORMATION 2024-25 Budget Monitoring Report–Objective Summary as at 30th June 2024 Appendix A Budget Outturn Over/ (Under) Spend Variance Budget Outturn Over/ (Under) Spend Variance Budget Outturn Over/ (Under) Spend Variance £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 COMMUNITY CARE AND HEALTH 71,309 76,220 4,911 18,745 19,821 1,076 90,054 96,041 5,987 : Locality Services 30,401 31,150 749 5,356 5,402 46 35,757 36,552 795 : Community Care Service Delivery 35,946 39,393 3,447 0 0 0 35,946 39,393 3,447 : Rehabilitation and Reablement 2,099 2,134 35 0 0 0 2,099 2,134 35 : Long Term Conditions 987 1,001 14 9,399 10,312 913 10,386 11,313 927 : Community Link Workers 358 359 1 0 0 0 358 359 1 : Integrated Island Services 1,518 2,183 665 3,990 4,107 117 5,508 6,290 782 MENTAL HEALTH SERVICES 34,320 34,531 211 72,631 73,011 380 106,951 107,542 591 : Learning Disabilities 25,688 26,284 596 542 542 0 26,230 26,826 596 : Community Mental Health 6,591 6,191 (400) 1,729 1,729 0 8,320 7,920 (400) : Addictions 2,041 2,056 15 1,908 1,908 0 3,949 3,964 15 : HBCCC 0 0 0 353 212 (141) 353 212 (141) : Lead Partnership Mental Health NHS Area Wide 0 0 0 68,099 68,620 521 68,099 68,620 521 CHILDREN & JUSTICE SERVICES 38,986 40,276 1,290 4,916 5,209 293 43,902 45,485 1,583 : Irvine, Kilwinning and Three Towns 3,046 3,071 25 0 0 0 3,046 3,071 25 : Garnock Valley, North Coast and Arran 3,206 3,246 40 0 0 0 3,206 3,246 40 :Intervention Services 1,716 1,723 7 0 0 0 1,716 1,723 7 : Care Experienced Children & Young people 27,049 28,770 1,721 0 0 0 27,049 28,770 1,721 : Head of Service - Children & Families 1,082 611 (471) 0 0 0 1,082 611 (471) : Justice Services 2,472 2,472 0 0 0 0 2,472 2,472 0 : C&F Health Team 415 383 (32) 4,200 4,493 293 4,615 4,876 261 : Lead Partnership NHS Children's Services 0 0 0 716 716 0 716 716 0 CHIEF SOCIAL WORK OFFICER 1,561 1,499 (62) 0 0 0 1,561 1,499 (62) PRIMARY CARE 0 0 0 53,109 53,067 (42) 53,109 53,067 (42) ALLIED HEALTH PROFESSIONALS 0 0 0 10,329 10,329 0 10,329 10,329 0 MANAGEMENT AND SUPPORT COSTS 9,187 8,819 (368) 4,013 3,020 (993) 13,200 11,839 (1,361) FINANCIAL INCLUSION 970 957 (13) 0 0 0 970 957 (13) OUTTURN ON A MANAGED BASIS 156,333 162,302 5,969 163,743 164,457 714 320,076 326,759 6,683 TOTAL Partnership Budget - Objective Summary Council Health 2024/25 Budget
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PUBLIC INFORMATION Budget Outturn Over/ (Under) Spend Variance Budget Outturn Over/ (Under) Spend Variance Budget Outturn Over/ (Under) Spend Variance £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Return Hosted Over/Underspends East 0 0 0 0 (171) (171) 0 (171) (171) Return Hosted Over/Underspends South 0 0 0 0 (149) (149) 0 (149) (149) Receive Hosted Over/Underspends South 0 0 0 0 204 204 0 204 204 Receive Hosted Over/Underspends East 0 0 0 0 (12) (12) 0 (12) (12) OUTTURN ON AN IJB BASIS 156,333 162,302 5,969 163,743 164,329 586 320,076 326,631 6,555 Partnership Budget - Objective Summary 2024/25 Budget Council Health TOTAL
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PUBLIC INFORMATION 2024-25 Savings Tracker Appendix B Social Care: Description Deliverability Status at budget setting Deliverability Status at Month 3 2024/25 Saving Description of the Saving Children, Families & Criminal Justice Service redesign Amber Blue 0.123 Restructure areas of specialist service provision including substance use and corporate parenting, embedding the roles and functions of those teams within our locality-based early intervention approaches and strategic planning including engagement. Community Care & Health Review of Day Care provision Amber Blue 0.100 Carry out a review and streamline day care provision. Sensory Impairment Team Green Blue 0.062 Remove the dedicated management post and realign the team into core social work teams. Care Home places Green Amber 0.375 Reduce the number of funded care home places by 15, leaving budgetary provision for 765 places at average cost. Charging for community alarm provision to sheltered housing tenants Amber Amber 0.200 Introduce a charge for community alarm provision in council sheltered housing units to ensure an equitable approach across all housing tenures. Montrose House capacity Green Blue 0.111 Restrict the capacity at Montrose House care home to the current level of residency. Voluntary Early Release Green Blue 0.174 Recurring savings achieved by the release of back-office staff through the council's voluntary early release scheme. Carers Strategy funding Green Blue 0.384 Utilise the remaining Carer's Strategy funding to invest in respite provision and short breaks for carers and to support existing investments in services which support unpaid carers. Increase to charging Green Blue 0.131 Increase charges for non-residential care by 10% and charges for residential care by 5% Remove vacant posts Green Blue 0.280 Remove a number of vacant posts across support services. Employers' superannuation contributions Green Blue 7.238 Align the budget to the new employer superannuation contribution rates from 1st April 2024. Payroll Turnover Green Blue 0.077 Increase targets for payroll turnover through the recruitment process. TOTAL SOCIAL CARE SAVINGS 9.255 North Ayrshire Health and Social Care Partnership 2024/25 Savings Support Services and Partnership-wide savings
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PUBLIC INFORMATION Health: Description Deliverability Status at budget setting Deliverability Status at Month 3 2024/25 Saving Description of the Saving Hospital Based Complex Continuing Care (HBCCC) provision Green Green 0.500 Align the budget to the level of ongoing need for HBCCC provision. Increase recharge to East Ayrshire for beds at Woodland View Green Blue 0.021 Apply an inflationary increase to the recharge to East Ayrshire HSCP. Community Recovery and Rehab provision Amber Amber 0.100 Review and streamline a range of current provisions to remove duplication. Enhanced ICT Green Green 0.100 Carry out a review of the service delivery model and release recurring staffing savings. Payroll Turnover Green Blue 0.314 Increase targets for payroll turnover through the recruitment process. TOTAL HEALTH SAVINGS 1.035 TOTAL NORTH HSCP SAVINGS 10.290
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PUBLIC INFORMATION 2024-25 Budget Reconciliation Appendix C COUNCIL Period Permanent or Temporary £'m Initial Approved Budget 156.190 Adjustments to baseline (0.574) Less Resource Transfer 23/24 (24.640) Revised Budget 130.976 Resource Transfer 24/25 1-3 P 24.861 Realign Girfec Team To Connected Communities 1-3 P (0.073) ICT Budget Transfers 1-3 P (0.006) CJSW Funding 2425 1-3 T 0.053 Children’s Living Wage Allocation 1-3 T 0.525 Roundings 1-3 (0.003) Social Care Budget Reported at Month 3 156.333 HEALTH Period Permanent or Temporary £'m Initial Budget exc set aside 157.894 Add Resource Transfer 23/24 24.640 Month 10-12 Adjustments and adjusting for the full year impact of part years amounts and temporary funding. (0.033) Revised Budget P 182.501 Add resource Transfer 24/25 (24.861) North Superannuation 24/25 uplift 1 1.134 MH: Anticipate Hollybush Combat Stress 24/25 1 1.424 MH: Anticipate Delivery of Veteran Funding 24/25 1 0.105 MH: Anticipate Perinatal MH, Infant MH (inc MNPI) 24/25 1 0.750 Training grade ADJ - April 1 0.063 Pecos Nurse Post 1 (0.018) Script Switch To Pharmacy 1 (0.002) Breastfeeding Pay Award - South 2 0.005 Nest - South 2 0.066 24-25 Foxgrove North 2 0.033 24-25 Breast Feeding - North 2 0.005 24-25 Huntingtons North 2 0.005 24-25 NEST North 2 0.066 Phlebotomy Admin Returned 2 0.005
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PUBLIC INFORMATION 23-24 - 50% North Share to East - Tier 3 Weight Management 2 (0.077) 24-25 North Share to East - Tier 3 Weight Management 2 (0.022) Anticipate ADP Afc Pay Uplift 3 0.091 Anticipate ADP Drug Prevalence 3 0.084 Anticipate ADP Lived & Living Exp 3 0.013 Anticipate ADP Mat 3 0.250 Anticipate ADP National Mission 3 0.296 Anticipate ADP Residential Rehab 3 0.134 Anticipate ADP Whole Family Approach 3 0.094 Training Grade Adj - Jun 3 (0.054) Prescribing (Ambush) North Rx 3 1.573 Prescribing (Ambush) North Rx Cres 3 (1.477) 24-25 North Budget Paper - Office 365 (to East) 3 (0.073) 24-25 North Budget Paper - Prison Pharm Contract (to East) 3 (0.093) South Mat Funding - Psychiatrist 3 0.029 Hd198: Early Intervention In Psychosis/ Body Image And Social Media Resource 3 0.242 Hd203: Digital Mental Health Programme Licence & Support 3 0.005 Anticipated budgets assumed in the report but not yet allocated 1.449 Roundings 3 (0.002) Health Budget Reported at Month 3 163.743 TOTAL COMBINED BUDGET 320.076
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PUBLIC INFORMATION 24-25 Opening IJB Reserves Position Appendix D Area of Reserves Balance at 31 March 2024 Earmarked Funds : Alcohol & Drug Partnership 641 : Mental Health Action 15 57 : Service Redesign / Challenge Fund 1,774 : Community Living Change Fund 377 : Family Wellbeing Fund 1,313 : Wellbeing Fund 50 : Breast Feeding Network 26 : MH Recovery and Renewal 546 : Buvidal 23 : Brooksby 5 : Cossette Funding 4 : Expansion of Primary Care Estates 55 : GP Premises Improvements - tranches 1 and 2 63 : Mental Health Wellbeing in Primary Care 81 : Dental Practice Improvement 29 :Appropriate Adult Scheme 2 :Adult Tier 3 Weight Management Service 19 : Phlebotomy 22 : LD Health Checks 66 Total Earmarked 5,153 Unallocated General Fund 357 General Fund 5,510
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PUBLIC INFORMATION Financial Recovery Action Plan Appendix E FINANCIAL RECOVERY PLAN £m £m £m Projected Overspend at Month 3 6.555 SERVICE AREA Cost reduction target Achieved in projected outturn Still to be achieved Target set? Health and Community Care Reduce care home placements in line with budget saving (0.700) (0.149) (0.551) June IJB Reduce CAH capacity/delay recruitment/in- house efficiencies (1.000) 0.000 (1.000) June IJB Community Wards - reduce supplementary staffing and review bed capacity (0.500) (0.235) (0.265) June IJB MH and LD (North Ayrshire) Freeze adult community support approvals outwith transitions 0.000 0.000 0.000 June IJB Respite provision - ensure use of in-house capacity is maximised 0.000 0.000 0.000 June IJB HBCCC mitigation plan (0.150) (0.150) 0.000 August IJB MH and LD (Lead Partnership) Ward staffing (adults/elderly inpatients) (0.300) 0.000 (0.300) August IJB Psychiatry (use of agency) (0.312) (0.312) 0.000 August IJB CEDS/CAMHS (0.202) (0.202) 0.000 August IJB North Ayrshire share (38.6%) (0.116) Children and Families Reduce children's external placements - early reduction from Brighter Pathways work (0.500) (0.377) (0.123) June IJB Additional target re-placements and staffing (0.500) 0.000 (0.500) August IJB Cross Partnership Vacancy management and temporary posts (0.500) 0.000 (0.500) June IJB Use of remaining reserve balance (0.357) 0.000 (0.357) August IJB STILL TO BE ACHIEVED (3.412) Remaining projected overspend 3.143
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PUBLIC INFORMATION Appendix F - North Ayrshire Integration Joint Board Finance Working Group Terms of Reference 1 Introduction 1.1 The North Ayrshire Integration Joint Board agreed on 13th June 2024 to establish a Finance Working Group to provide enhanced scrutiny in relation to the IJB financial position and the delivery of a financial recovery plan. The Group will also provide a forum for further development of future year budget proposals. 2 Chair 2.1 The Finance Working Group will be chaired by the Vice Chair of the IJB. This will rotate in line with the rotation of the role of IJB Chair between the NHS Board and the Council. 3 Group Membership 3.1 The finance working group will consist of senior officers from the HSCP and members of the IJB. 3.2 The officer membership will be: • Director of Health and Social Care/IJB Chief Officer • Head of Service (Finance and Transformation)/Section 95 Officer • Head of Service (Health and Community Care) • Head of Service (Children, Families and Justice) • Head of Service (Mental Health) • Chief Social Work Officer • Principal Manager (Finance) • Senior Manager (Strategic Planning and Transformation) Other officers will also be invited to attend to provide further detail or information at the discretion of the Chair. 3.3 All IJB Members (voting and non-voting) will have the opportunity to participate in the working group, with membership finalised following an invitation for expressions of interest. 3.4 Members should send an appropriate deputy to cover their absence from any meetings of the working group. 4 Meeting Frequency 4.1 The group will meet monthly with meetings to be arranged by the Team Manager (Governance).
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PUBLIC INFORMATION 5 Remit 5.1 The group will have the following remit: • Detailed scrutiny of in-year financial projections ahead of regular reporting to the Integration Joint Board • Monitor the delivery of the financial recovery plan • Monitor the progress with delivery of the Transformation Plan • Review of the 3-year Medium-Term Financial Outlook • Detailed scrutiny of budget planning for the next financial year. 5.2 5.3 The Integration Joint Board will continue to receive financial monitoring reports throughout the financial year and will also receive 6 monthly updates on progress with the Transformation Plan with individual service transformational change programmes also reporting to IJB. The role of Performance and Audit Committee will be unaffected with the working group enhancing the scrutiny, governance and oversight of the financial position. 6 Authority 6.1 The Budget Working Group is not a decision-making group and all decisions in relation to the budget which require formal agreement will continue to be made by the Integration Joint Board. 7 Governance Map 7.1 The Finance Working Group will interact with other key governance groups as shown in the map below: These terms of reference were approved by North Ayrshire IJB on 22nd August 2024. Integration Joint Board (IJB) Finance Working Group Partnership Senior Management Team (PSMT) Transformation Board