Revenue Budget 2024-25 - Financial Performance to 30 November 2024
North Ayrshire Council · 21 January 2025
Back to Cabinet — 21 January 2025 and its agenda
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NORTH AYRSHIRE COUNCIL 21 January 2025 Cabinet Title: Revenue Budget 2024/25: Financial Performance to 30 November 2024 Purpose: To advise Cabinet of the financial performance for the Council at 30 November 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 third report for 2024/25 and covers the period to the end of November 2024 (Period 8). Projections have been made to the year-end. 1.3 At Period 8 the General Fund is forecasting a net in-year overspend of £0.689m, (0.2%), after transferring resources to/from earmarked reserves. This is an improvement of (£0.568m) from that reported at Period 5. 1.4 The main cost pressures highlighted within the appendices continue to be experienced in relation to teacher absence and mandatory cover arrangements; external residential placement for children and employee absence and cover arrangements within Waste Services. However, employee absence performance has improved across both services as a result of management action. 1.5 The Housing Revenue Account is forecasting a net breakeven position, which is consistent with previous reports.
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1.6 The Health and Social Care Partnership is projecting a year-end overspend of £6.190m, (1.9%), for 2024/25. The Council services element is reporting a projected overspend of £4.902m and the Health services element is reporting a projected overspend of £1.288m. However, previously identified financial recovery actions have reduced the projected overspend to £3.613m, £2.548m for Council Services, which is an increase of £0.041m from the previously reported overspend, and £1.065m for Health services, which is a £0.577m increase to the previously reported overspend. 1.7 Significant risks to the reported position 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 may have an impact on the level of financial contributions from the funding parties. This presents a material risk to the financial sustainability of the Council. The Integration Joint Board has submitted written requests for additional financial support to both the Council and NHS Ayrshire & Arran. Proposals for additional assistance will be developed and submitted for consideration by Cabinet before the end of the financial year. 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 £0.689m, (0.2%), 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.
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2.3 Details of the current financial projections are summarised in the following table: Service Expenditure App No. Annual Budget £ million Projection to 31 March 2025 £ million Projected Variance for year (Fav)/Adv £ million Projected Variance at P5 (Fav)/Adv £ million Movement Note Corporate Services 1 18.596 18.171 (0.425) (0.122) (0.303) (i) Education 2 176.042 178.519 2.477 2.821 (0.344) (ii) Place 3 53.341 54.833 1.492 0.861 0.631 (iii) Communities & Housing 4 13.776 13.699 (0.077) 0.000 (0.077) (iv) Other Corporate Items 5 29.118 26.829 (2.289) (2.039) (0.250) (v) Sub Total 290.873 292.051 1.178 1.521 (0.343) Health and Social Care Partnership 9 131.241 131.241 0.000 0.000 0.000 Balance for Services 422.114 423.292 1.178 1.521 (0.343) Financing Charges 6 15.223 15.223 0.000 0.000 0.000 Contribution to Loans Fund Reserve 6 7.672 7.672 0.000 0.000 0.000 Total Planned Expenditure 445.009 446.187 1.178 1.521 (0.343) Aggregate External Finance 6 (370.154) (370.154) 0.000 0.000 0.000 Council Tax 6 (65.681) (66.170) (0.489) (0.264) (0.225) (vi) Use of Earmarked Funds 6 (9.174) (9.174) 0.000 0.000 0.000 Total Planned Income (445.009) (445.498) (0.489) (0.264) (0.225) Net Expenditure/ (Income) 0.000 0.689 0.689 1.257 (0.568) 2.4 The reported Planned Income includes a number of adjustments to Scottish Government funding from that reported at Period 5, as detailed in the following table: Movements on Planned Income General Revenue Grant £ million Non Domestic Rates £ million Specific Grants £ million TOTAL AEF £ million Revised Budget at P5 (321.693) (41.313) (6.864) (369.870) Ukrainian resettlement (0.075) 0.000 0.000 (0.075) Temporary accommodation (0.015) 0.000 0.000 (0.015) Teacher induction adjustment 0.108 0.000 (0.302) (0.194) Revised Planned Income (321.675) (41.313) (7.166) (370.154)
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2.5 Commentary on Significant Movements from Period 5 The Council's overall financial forecast against the revised budget is an improvement of (£0.568m) from the previously reported position. A brief explanation of the significant movements at service level are outlined as follows: (i) Corporate Services – underspend of (£0.425m), an improvement of (£0.303m) from the previously reported underspend The movements are primarily related to: • Vacancy management activity across all services, (£0.117m), and • Lower than anticipated ICT expenditure on software licences and support costs, (£0.190m). (ii) Education – overspend of £2.477m, an improvement of (£0.344m) from the previously reported overspend The movements are primarily related to: • A net reduction in Employee Costs arising from vacancy management across the service, (£0.346m); • Revised grant income in relation to probationary teachers, (£0.194m); and • Increase income from PPP contract deductions and rebates, (£0.091m). These has been partly offset by: • Increased external day and residential placement costs, £0.198m; and • Revised projections for food costs and school meals income, £0.107m. (iii) Place – overspend of £1.492m, an increase of £0.631m from the previously reported overspend The movement is primarily related to: • Increased Employee Costs expenditure arising from the 24/25 pay settlement within Waste Services, £0.251m; • Residual RAAC cost projections at Ardrossan Academy and Mid Dykes Depot, £0.245m; • Reduced recyclates income reflecting reduced market prices, £0.203m; and • Essential reactive property maintenance costs, £0.150m. These have been partly offset by: • Drawdown of additional external funding to support Employability services, (£0.148m); and • Reduced expenditure on kerbside recycling contracts, (£0.112m). (iv) Communities & Housing – underspend of (£0.077m), an improvement of (£0.077m) from the previously reported breakeven position The movement is primarily related to: • A projected over recovery of house and hostel rents, (£0.081m); • Vacancy management within Other Housing, (£0.057m); and • A reduction in projected void rent losses, (£0.051m).
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These have been partly offset by increased bad debt provision, £0.117m. (v) Other Corporate Items – underspend of (£2.289m), an improvement of (£0.250m) from the previously reported underspend The movement is primarily related to a projected underspend on the Housing Benefit subsidy based on the latest claim data, (£0.250m). (vi) Council Tax Income – overrecovery of (£0.489m), an improvement of (£0.225m) from the previously reported overrecovery The movement is primarily related a reduction in CTR claims, £0.130m, and improved prior year collection forecasts, £0.062m. Health and Social Care Partnership 2.6 A copy of the HSCP financial performance report as at the end of October 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 £6.190m for 2024/25. However, this has been reduced to £3.613m due to previously identified financial recovery actions. This is an increase of £0.618m since the previous reporting period; • The projected overspend on the Council Services element is £4.902m over the same period, reduced to £2.548m following the identified financial recovery actions. This is an increase of £0.041m from the previous reporting period; • 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 (UnPACs) 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 announcements by Scottish Government in relation to public sector finances and in-year spending reductions will impact on current and future funding, including for 2024-25 pay awards, which have recently been settled for local government and NHS but the funding position is not yet clear; • 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;
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• 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; • The recurring underlying levels of overspend which 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 used 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. Non-recurring funding has been provided to meet costs associated with this but it is unclear whether this will be sufficient; • Scot Excel inflationary increases for children’s service are significantly higher than assumed; • There is a risk in relation to recovering recharge income in relation to the LD Assessment and Treatment patients from outwith Ayrshire. These risks and progress against the financial recovery plan will continue to be monitored during 2024-25. Risks 2.7 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. In accordance with the Integration Scheme, the Integration Joint Board has submitted written requests for additional financial support to both the Council and NHS Ayrshire & Arran and proposals for additional assistance will be developed and submitted for consideration by Cabinet before the end of the financial year. 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. This position presents a material risk to the financial sustainability of the Council.
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Housing Revenue Account 2.8 The Housing Revenue Account budgeted for a breakeven position in 2024/25 and is currently projecting to outturn in line with this. This is in line with the previously reported position. 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 Projected Variance at P5 (Fav)/Adv £ million Movement Note Employee Costs 5.118 4.977 (0.141) 0.000 (0.141) (i) Property Costs 21.816 23.443 1.627 1.523 0.104 (ii) Supplies and Services 2.297 2.071 (0.226) (0.002) (0.224) (iii) Transport and Plant Costs 0.021 0.021 0.000 0.000 0.000 Administration Costs 1.756 1.776 0.020 0.014 0.006 Third Party Payments 3.877 3.938 0.061 0.049 0.012 Transfer Payments 0.163 0.163 0.000 0.000 0.000 Other Expenditure 0.490 0.490 0.000 0.013 (0.013) Capital Financing 26.525 24.607 (1.918) (1.970) 0.052 (iv) Gross Expenditure 62.063 61.486 (0.577) (0.373) (0.204) Income (62.063) (61.486) 0.577 0.373 0.204 (v) Net Expenditure 0.000 0.000 0.000 0.000 0.000 2.9 Commentary on Significant Movements from Period 5 A brief explanation of the significant movements is outlined as follows: (i) Employee Costs – underspend of (£0.141m), an increase of (£0.141m) from the previously reported breakeven position The movement reflects vacancy management activity across the service. (ii) Property Costs – overspend of £1.627m, an increase of £0.104m from the previously reported overspend The movement reflects increased expenditure Planned and Cyclical Maintenance £0.111m, and Other Property Costs £0.099m. This has been partly offset by a reduction in Void Repair Costs, (£0.075m) (iii) Supplies and Services – underspend of (£0.226m), an increase of (£0.224m) from the previously reported underspend The movement reflects a projected underspend on landscaping costs.
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(iv) Capital Financing – underspend of (£1.918m), a reduction of £0.052m from the previously reported underspend The movement reflects adjustments to profiling within the HRA Capital programme. (v) Income – under recovery of £0.577m, an increase of £0.204m from the previously reported under recovery The movement is primarily related to an increased under recovery of Other Rents following a review of overpayments. 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 November 2024 is a net overspend of £0.689m. 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 November 2024 is a net breakeven position. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Environmental and Sustainability 4.5 None.
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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. 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 Revenue Budget 2024/25: Financial Performance to 31 August 2024 – Cabinet 29 October 2024
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Appendix 1 CHIEF EXECUTIVES BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Chief Executive Chief Executive 137 143 6 4% Total for Chief Executive 137 143 6 4% Financial Services Change Programme 180 180 - 0% Audit, Fraud, Safety & Insurance 630 622 (8) (1%) Corporate Procurement 893 828 (65) (7%) 1 Financial Services 1,363 1,363 - 0% Revenues (610) (630) (20) 3% Transformation 669 643 (26) (4%) 2 Total for Financial Services 3,125 3,006 (119) (4%) People & ICT Employee Services 816 816 - 0% HR & Organisational Development 1,061 1,073 12 1% ICT 4,885 4,695 (190) (4%) 3 Business Support 1,044 1,068 24 2% Customer Services 3,876 3,852 (24) (1%) Total for People & ICT 11,682 11,504 (178) (2%) Democratic Services Legal & Licensing 407 357 (50) (12%) 4 Policy, Performance & Elections 487 419 (68) (14%) 5 Communications 447 457 10 2% Civil Contingencies 60 60 - 0% Committee Services 409 409 - 0% Member Services 1,311 1,309 (2) (0%) Ayrshire Support Service 479 469 (10) (2%) Information Governance 52 38 (14) (27%) Total for Democratic Services 3,652 3,518 (134) (4%) Totals 18,596 18,171 (425) (2%)
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Appendix 1 Subjective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance £000 £000 £000 Employee Costs 15,912 15,678 (234) (1%) Property Costs 68 70 2 3% Supplies and Services 3,033 2,847 (186) (6%) Transport and Plant Costs 22 22 - 0% Administration Costs 1,360 1,356 (4) (0%) Other Agencies & Bodies 1,937 1,937 - 0% Transfer Payments 853 853 - 0% Other Expenditure - - - - Capital Financing - - - - Gross Expenditure 23,185 22,763 (422) (2%) Income (4,589) (4,592) (3) 0% Net Expenditure 18,596 18,171 (425) (2%)
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Appendix 1a CHIEF EXECUTIVES BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Finance - Corporate Procurement Movement - No significant movement since the previous period. 925 (66) -7% Employee costs - There is a projected underspend of £0.066m due to vacancy management. (66) Note 2 Finance - Transformation Movement - There has been a favourable movement of (£0.026m) since P5 due to a Government grant covering staffing costs. 671 (26) -4% Employee costs - Underspend of £0.026m due to a Government grant being received to cover staff costs in relation to certain projects. (26) Note 3 People & ICT - ICT Movement - There has been a favourable movement of (£0.190m) since period 5 due to lower supplies and services costs than anticipated. 2,156 (190) -9% Supplies & Services - There is a projected underspend of £0.190m due to £0.095m underspend in software licenses and support due to costs not as high as expected, £0.038m underspend in LAN, £0.027m underspend in WAN and £0.030m underspend in server support this is due to costs less than anticipated. (190) Note 4 Democratic Services - Legal & Licensing Movement - There has been a favourable movement of (£0.050m) due to difficulties in recruiting for a vacant post. 1,085 (50) -5% Employee Costs - There is a projected underspend of £0.050m due to vacancy management and staff movement. (50) Note 5 Democratic Services - Policy, Performance & Elections Movement - No significant movement since the previous period. 464 (68) -15% Employee costs - There is a projected underspend of £0.068m due to vacancy management. (68)
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Appendix 2 EDUCATION BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Early Years Education 22,148 21,852 (296) (1%) 1 Primary Education 49,525 50,140 615 1% 2 Secondary Education 63,684 63,589 (95) (0%) 3 Additional Support Needs 15,010 16,427 1,417 9% 4 Central Education 3,455 5,445 1,990 58% 5 Pupil Equity Fund 4,367 4,367 - 0% Facilities Management 17,732 16,578 (1,154) (7%) 6 Net Total 176,042 178,519 2,477 1% Subjective Summary Annual Budget Final Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs - Teachers 98,504 100,734 2,230 2% Employee Costs - Non Teachers 48,632 47,772 (860) (2%) Property Costs 1,336 1,478 142 11% Supplies and Services 25,060 24,585 (475) (2%) Transport and Plant Costs 125 138 13 10% Administration Costs 439 469 30 7% Other Agencies & Bodies 8,702 10,651 1,949 22% Transfer Payments 580 580 - 0% Other Expenditure - - - Capital Financing 71 71 - 0% Gross Expenditure 183,449 186,478 3,029 2% Income (7,407) (7,959) (552) Net Expenditure 176,042 178,519 2,477 1%
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Appendix 2a EDUCATION BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Early Years Education Movement: There has been an favourable movement of (£0.158m) compared to P5 due to increased underspends of £0.148m in employee costs. 16,751 (286) -2% Employee Costs: Overall an estimated underspend of £0.286m. - Teachers:- no projected variance. - Non Teachers:- projected underspend of £0.370m as a result of vacancy management offset by a budgeted turnover target of £0.084m resulting in a net underspend of £0.286m. 5,122 - 0% Third Party Payments: projected overspend of £0.171m in payments to funded providers due to a 13.9% increase in hours being accessed, and a forecasted overspend of £0.142m on payments to Other Local Authorities as more children taking up Early Years places outwith North Ayrshire than children coming into NAC Early Years establishments. (10) Other minor movements. 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 was implemented by August 2024. (296) Note 2 Primary Education Movement: There has been an unfavourable movement of £0.064m compared to P5 due to a projected unachieved turnover in employee costs. 47,158 590 1% Employee Costs : Overall an estimated overspend of £0.590m. - Teachers:- projected breakeven position together with a budgeted turnover target of £0.493m resulting in a net overspend of £0.493m - Non Teachers:- projected underspend of £0.159m offset by a budgeted turnover target of £0.256m and temporary additionality to support specific ASN in the early stages of P1, resulting in a net overspend of £0.097m. 25 Other minor movements 615 Note 3 Secondary Education Movement: There has been an unfavourable movement of £0.207m compared to P5 due to a projected increase in teacher costs of £0.216m. This is due to the anticipated turnover not being as high as previously expected. 47,990 (100) 0% Employee Costs : Overall an estimated underspend of £0.100m. - Teachers:- projected underspend of £0.630m offset by a budgeted turnover target of £0.535m resulting in a net underspend of £0.095m - Non Teachers:- projected underspend of £0.192m offset by a budgeted turnover target of £0.187m resulting in a net underspend of £0.005m 5 Other minor movements (95)
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Appendix 2a Budget £000 Projected Variance £000 Variance as % of budget Section Note 4 ASN Movement: There has been an unfavourable movement of £0.016m compared to P5. This is mainly due to a £0.056m increase in day placement fees, with an additional three children accessing day placement provision, and a £0.142m increase in residential placement fees, which is mainly due to increased daily rates. This is partly offset with a £0.183m increase in employee costs underspends. 13,070 (413) -3% Employee Costs : Overall an estimated underspend of £0.413m. - Teachers:- projected underspend of £0.358m offset by a budgeted turnover target of £0.073m resulting in a net underspend of £0.285m - Non Teachers:- projected underspend of £0.296m offset by a budgeted turnover target of £0.168m resulting in a net underspend of £0.128m 400 (128) -32% There is a projected underspend of £0.128m on payments to Other Local Authorities, due to a reduction in the number of NAC children accessing placements in their establishments. 1,010 509 50% There is a projected overspend of £0.509m 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 32 children in, or expected in, day placement provision. A review of the process has taken place. 543 1,569 289% There is a projected overspend of £1.569m 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 anticipated number of other authority children accessing a place in NAC establishments, currently 11 pupils 1,417 Note 5 Central Education Movement: There has been a favourable movement of (£0.412m) compared to P5 mainly due to a projected increase in PPP deduction income (£0.091m), a reduction in the under recovery of teacher induction funding of (£0.194m) and a further reduction across HQ employee costs (£0.127m) 2,767 2,076 75% Employee costs: There is a projected overspend of £2.298m mainly as a result of significant increase in costs associated with mandatory cover for teacher maternity cover and sickness absence. There are currently 33 Teachers (29.4 FTE) on maternity leave as well as 11 Early Years Practitioners and 3 PSAs (10.5 FTE). Absence levels are subject to regular review across the service and appropriate actions are taken to maximise attendance. Average days lost per FTE is 5.74 for the period April-October compared to 4.75 days lost for same period last year. Average days lost last year was 11 related to the whole service compared to an estimated 13 days for this year. This is offset by projected underspend in Leadership & Music services of £0.222m - 108 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 £0.108m reduction in anticipated grant funding. (1,120) (197) 18% Income: PPP insurance rebate £0.065m and PPP deductions of £0.132m in excess of budget 3 Other minor movements. 1,990 Note 6 Facilities Management Movement: There has been an favourable movement of (£0.061m) compared to P5 mainly due to revised projections in food costs and school meals income based on actual data available 13,992 (607) -4% Employee Costs: There is a projected underspend of £0.607m primarily due to recruitment challenges and a targeted reduction of overtime and casual costs. £0.300m is related to newly created posts for the next phase of UFSM roll out, which have still to be recruited 1,192 142 12% Property Costs: There is a projected overspend of £0.142m mainly in washroom supplies 5,123 (503) -10% Supplies and services: There is a projected underspend of £0.164m in food costs which includes a projected underspend of £0.350m (£0.179m food/£0.179m kitchen equipment) that relates to unallocated UFSM monies (2,623) (234) 9% Income: There is a projected over-recovery of cleaning and janitorial income of £0.111m and a projected under- recovery of school meals income of £0.041m. Additional funding of £0.165m has been received by Scottish Govt in relation to school meal debt previously written off. - 48 Other minor movements within transport and admin costs (1,154) Note 7 General Management action to scrutinise all recruitment verification processes has now started in an attempt to reduce the overall overspend across all employee costs.
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Appendix 3 PLACE BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 207 212 5 2% Neighbourhood Services Roads 6,845 6,856 11 0% Streetscene 4,850 4,861 11 0% Waste Resources 9,104 10,006 902 10% 1 Municipalisation Advertising (123) (73) 50 (41%) 2 Total for Neighbourhood Services 20,676 21,650 974 5% Economic Development, Growth and Investment Economic Policy 264 264 - 0% Employability & Skills 1,799 1,638 (161) (9%) 3 Regeneration 892 892 - 0% Business 992 992 - 0% Growth & Investment 247 247 - 0% Total for Economic Development, Growth and Investment 4,194 4,033 (161) (4%) Sustainability, Transport and Corporate Property Property Management & Investment 1,412 1,442 30 2% 4 Housing Assets & Investment (1) (1) - 0% Property Maintenance 3,789 4,184 395 10% 5 Property Running Costs 5,534 5,534 - 0% Energy and Sustainability 7,260 7,260 - 0% Internal Transport 10,270 10,519 249 2% 6 Total for Sustainability, Transport and Corporate Property 28,264 28,938 674 2% Net Total 53,341 54,833 1,492 3%
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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 27,375 27,886 511 2% Property Costs 22,434 22,824 390 2% Supplies and Services 4,203 4,314 111 3% Transport and Plant Costs 9,441 9,876 435 5% Administration Costs 565 565 - 0% Other Agencies & Bodies 15,029 15,988 959 6% Transfer Payments - - - 0% Other Expenditure 78 67 (11) (14%) Capital Financing - - - Gross Expenditure 79,125 81,520 2,395 3% Income (25,784) (26,686) (902) 3% Net Expenditure 53,341 54,834 1,493 3%
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Appendix 3a PLACE BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Waste Services Movement: There has been an unfavourable movement of £0.389m since P5 due to an under recovery of income of £0.203m due to the purple bin contract income, a forecasted increase in employee costs of £0.251m, and transport costs of £0.035m, this has been partially offset by a favourable movement within Third Party Payments of £0.112m mainly due to decreased costs from kerbside recyclate contracts. 4,944 683 14% Employee costs: One off employee costs and back payments for overtime due to the pay award has impacted the budget position from period 5. Overtime and vehicle check assumptions have also been adjusted to reflect the position at period 8. There remains a challenging cumulative sickness absence rate of 18.8 days per employee from April 2024 to October 2024. A robust absence monitoring process is in place and a dedicated resource has been recruited to monitor and review the absence management process in Waste, through assisting supervisors with absence management meetings, referrals to occupational health etc and to support employees return to work. The statutory nature of the service requires additional resources and/or overtime to cover unforeseen absences resulting in additional costs. To help mitigate against this, resources out-with Waste Collections have received HGV training to help provide cover for collections. Weekly budget meetings are also being held between the Waste Ops Management Team and Finance. An overall review of the Waste service in light of legislative changes and current service demands is ongoing. 259 105 41% Transport Costs: Additional vehicles are in place to deal with ongoing pressures and demands, a reduction of 2 vehicles has been implemented from the end of November. Transport needs are continuously under review and flexed depending on the operational needs of the service. 6,743 (49) (1%) Third Party Payments: Underspends from the kerbside recyclate contracts of £0.136m and £0.051m from organics contract, partially offset by overspends in diverted waste of £0.106m and £0.041m in the Clyde Valley Contract. (3,857) 188 (5%) Income: A projected under-recovery in purple bin contract income of £0.271m due to reductions in recyclate market prices and increased contamination levels resulting in a lower rate per tonne. To counter this the Waste Awareness Team are promoting a Right Stuff Right Bin comms campaign, putting new stickers on bins to remind residents what each bin should be used for and operational staff are removing contaminants where possible to try and reduce contamination levels. This under-recovery is partially offset by forecasted over- recovery in the sale of other recyclates. (25) Other minor movements 902 Note 2 Municipalisation Advertising Movement: There has been no movement from P5. (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 Employability & Skills Movement: There has been a favourable movement of (£0.148m) since P5 due to the availability of external funding releasing core budget. 3,572 (150) (4%) Third Party Payments: Underspend of £0.150m as Employability are using all external funding available, resulting in an underspend in the core budget. It is anticipated that external funding will be reduced in 2025/26. (11) Other minor movements. (161) Note 4 Property Management and Investment Movement: There has been adverse movement of £0.039m since P5 due to an under-recovery of fee income. 2,433 (80) (3%) Employee Costs: There is a projected underspend of £0.080m due to vacancy management. (1,263) 90 (7%) Income: There is a projected under-recovery of fee income of £0.090m. 20 Other minor movements 30
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Appendix 3a Budget £000 Projected Variance £000 Variance as % of budget Section Note 5 Property Maintenance Costs Movement: There has been an adverse movement of £0.395m since P5 largely due to RAAC costs of £0.245m and reactive maintenance costs of £0.150m. 7,151 395 6% Property Costs: There is a projected £0.245m overspend largely due to the residual RAAC costs at Ardrossan Academy and projected RAAC costs at Mid Dykes Depot. In addition there is a further projected £0.150m overspend due to essential reactive maintenance. 395 Note 6 Internal Transport Movement: There has been a favourable movement of (£0.042m) since P5 which is primarily due to the over- recovery in hire of pool vehicles income. 4,682 276 6% Transport Provision Costs: There is a projected overspend of £0.276m due to a higher number of pupils requiring transport and an increase in tendered costs in private contracts for the provision. 1,787 (134) (7%) Fuel: There is a projected underspend in fuel of £0.134m due to a decrease in fuel prices. 1,228 81 7% Repairs & Maintenance: There is a projected overspend of £0.081m in repairs and maintenance as a result of price increases and maximising the life of assets due to replacement vehicle lead times. 457 78 17% External Hires: There is a projected overspend of £0.078m mainly due to hire of additional vehicles (pending delivery of replacements) and plant hire. (3,101) (65) 2% Income: There is a projected over-recovery of £0.050m in bus transport income and a projected over-recovery of £0.050m in hire of pool vehicle income which will support overspends in repairs and maintenance as end of life vehicles in pool are being retained for longer. These are offset with a projected under-recovery of £0.035m in Enterprise car income. 13 Other minor movements 249
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Appendix 4 COMMUNITIES AND HOUSING BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 94 94 - 0% Housing and Public Protection Building Services (2,548) (2,548) - 0% 1 Property Governance - - - Planning Services 283 140 (143) (51%) 2 Protective Services 1,616 1,616 - 0% Other Housing 2,549 2,523 (26) (1%) 3 Total for Housing and Public Protection 1,900 1,731 (169) (9%) Connected Communities 11,782 11,874 92 1% 4 Net Total 13,776 13,699 (77) (1%) Subjective Summary Annual Budget Projected Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 24,137 24,250 113 0% Property Costs 2,953 2,902 (51) (2%) Supplies and Services 7,107 7,102 (5) (0%) Transport and Plant Costs 973 976 3 0% Administration Costs 221 228 7 3% Other Agencies & Bodies 11,035 11,038 3 0% Transfer Payments - - - 0% Other Expenditure 104 221 117 113% Capital Financing - - - Gross Expenditure 46,530 46,717 187 0% Income (32,754) (33,018) (264) 1% Net Expenditure 13,776 13,699 (77) (1%)
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Appendix 4a COMMUNITIES AND HOUSING BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Building Services Movement: There has been no movement since period 5. 10,990 (74) (1%) Employees: An underspend of £0.074m in employee costs. This is due to vacancy management. 5,641 (182) (3%) Supplies & Services: An underspend of £0.182m 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. 3,194 195 6% Third Party Payments: An overspend in third party payments of £0.195m which mainly relates to additional subcontractor costs for timber and damp works, storm damage and infrastructure improvements. (23,408) 28 (0%) Income: A projected under recovery of £0.028m. This is mainly due to an under recovery in void income of £0.684m, which is primarily caused by reduced kitchen and bathroom works, and £0.300m in Non-Housing works. This is partially offset by increased volumes of work within responsive repairs of £0.431m, timber & damp works of £0.466m and wet room repairs of £0.071m. 33 Other minor movements - Note 2 Planning Services Movement: There has been no significant movement since period 5. (614) (143) 23% Income: This is primarily due to the forecasted over recovery of £0.130m for additional planning fee application income. (143) Note 3 Other Housing Movement: There has been a favourable movement of (£0.087m) since period 5 mainly due to a reduction of £0.057m in projected employee costs due to vacancy management, £0.081m increase in projected over- recovery of house & hostel rents, £0.051m increase in projected underspend in void rent loss offset by an overspend in bad debt provision of £0.117m. 2,473 (51) (2%) Property Costs: A projected underspend of £0.074m in void rent loss offset by an overspend in property rents of £0.023m. 104 117 113% Other Expenditure: A projected overspend of £0.117m in bad debt provision. (5,878) (87) 1% Income: This is mainly due to a projected over-recovery in house & hostel rents of £0.081m. (5) Other minor movements (26) Note 4 Connected Communities Movement: There has been no significant movement since period 5. 6,360 130 2% Employee Costs: Overspend of £0.113m is a result of revised programming of implementation of the approved savings for school libraries and to reduce public library opening hours by 20%. (1,480) (33) 2% Income: Projected over-recovery of room hire income of £0.033m due to hosting the banking hub in Kilwinning which is a temporary arrangement. (5) Other minor movements. 92
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Appendix 5 OTHER CORPORATE ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Strathclyde Passenger Transport 2,331 2,231 (100) (4%) SPT Concessionary Fares 286 286 - 0% Ayrshire Joint Valuation Board 973 932 (41) (4%) 3,590 3,449 (141) (4%) 1 Other Corporate Costs Pension Costs 1,981 1,981 - 0% Central Telephones 350 350 - 0% Other Corporate Items (incl Transformation Costs, Bad Debt Provision, External Audit fees and other centrally held funding.) 23,248 21,284 (1,964) (8%) 2 Housing Benefits (51) (235) (184) 361% 3 29,118 26,829 (2,289) (8%)
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Appendix 5a OTHER CORPORATE ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Joint Boards There has been no movement from Period 5 3,590 (141) -4% Projected underspend of (£0.141m) due confirmation of annual requisitions and applicable refunds. (141) Note 2 Other Corporate Items There has been no movement from Period 5 23,248 (1,964) -8% The projected underspend is primarily related to centrally held inflationary cost provisions, which are being applied to offset pressures reported across other services (£0.864m), additional income from employee benefit schemes (£0.342m)and additional Scottish Government grant income not required in year (£0.758m). (1,964) Note 3 Housing Benefit There has been a favourable movement of (£0.250m) from Period 5 due to updated Housing Benefit Subsidy data (51) (184) 361% Projected overspend of £0.184m due to Housing Benefit Subsidy and Overpayment Recovery (184)
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Appendix 6 MISCELLANEOUS ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % variance Note No £000 £000 £000 Financing Charges 15,885 15,885 - - Contribution to Loans Fund Reserve 7,010 7,010 - - Scottish Government Funding (370,262) (370,262) - - Council Tax (65,681) (66,170) (489) 1% 1 Use of Earmarked Funds (9,174) (9,174) - - Net Total (422,222) (422,711) (489) 0% Growth in the Council Tax base (£0.752m) has been partly offset by an increase in the value of CTR claims received, £0.144m, and increased Bad Debt Provision, £0.090m. Reported collection rates have shown an initial improvement but still lag behind pre pandemic levels. Note 1 Council Tax Movement: There has been a favourable movement of (£0.225m) since period 5, primarily related to adjustments to our Council Tax base, (£0.040m), a reduction in forecast CTR claims, (£0.130m) and improved prior year collection forecasts (£0.062m) .
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Appendix 7 HOUSING REVENUE ACCOUNT BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % Variance Note No £ £ £ Employee Costs 5,118 4,977 (141) (3%) 1 Property Costs Responsive Repairs 7,361 7,755 394 5% Void Repairs 4,023 4,301 278 7% Planned and Cyclical Maintenance 5,201 5,944 743 14% Aids and Adaptions 1,552 1,545 (7) (0%) Other property costs 3,679 3,898 219 6% Total for Property Costs 21,816 23,443 1,627 7% 2 Supplies & Services 2,297 2,071 (226) (10%) 3 Transport Costs 21 21 - 0% Administration Costs 1,756 1,776 20 1% 4 Third Party Payments 3,877 3,938 61 2% 5 Transfer Payments 163 163 - 0% Other Expenditure 490 490 - 0% Capital Financing Costs 26,525 24,607 (1,918) (7%) 6 Gross Expenditure 62,063 61,486 (577) (1%) Income Council House Rents (60,201) (60,216) (15) 0% Other Rents (473) 100 573 (121%) Recharges (1,034) (1,027) 7 (1%) Other Income (355) (343) 12 (3%) Total Income (62,063) (61,486) 577 (1%) 7 Net Expenditure - - -
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Appendix 7a HRA BUDGETARY CONTROL 2024/25 REPORT FOR THE 8 MONTHS TO 30 NOVEMBER 2024 Budget £000 Variance £000 Variance as % of budget Note 1 5,118 (141) -3% (141) Note 2 21,816 1,627 7% 1,627 Note 3 2,297 (226) -10% (226) Note 4 3,877 61 2% 61 Note 5 26,525 (1,918) -7% (1,918) Note 6 (62,063) 577 -1% 577 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 - - - - 11.590 5.000 - - - (0.544) 4.456 2.000 - (0.059) - - 1.941 1.553 - - - - 1.553 0.300 - - - - 0.300 0.123 - - - - 0.123 20.566 - (0.059) - (0.544) 19.963 HRA reserves and balances There is a projected underspend of £0.226m in supplies and services. This is primarily due to an underspend of £0.218m in landscaping costs. Property Costs Movement - there has been an adverse movement of £0.104m since Period 5. This is largely due to an increase of £0.111m in Planned and Cyclical Maintenance and £0.099m in other property costs. This is offset by a reduction in Void repairs costs of £0.075m. There is a projected overspend of £0.394m in Responsive Repairs due to the volume and scope of the works. A projected £0.743m overspend in relation to Planned and Cyclical Maintenance, largely due to £0.230m costs in relation to storm damage works resulting from adverse weather conditions early in 2024, £0.458m projected overspend due to increased costs in relation to timber and damp works and a projected overspend of £0.100m in relation to asbestos management. A projected overspend of £0.219m in other property costs, largely relating to increased tenant charges of £0.126m and £0.050m in relation to maintenance of trees. In addition there are projected overspends of £0.278m in Void Repairs. Third Party Payments Movement - there has been an adverse movement of £0.012m since Period 5. There is a projected overspend of £0.061m largely due to a £0.029m greater ASB contribution than budgeted and a £0.021m overspend in relation to consultant fees. Section Supplies and Services Movement - there has been a favourable movement of £0.224m since Period 5 largely due to a projected underspend in landscaping costs. Employee costs Movement - there has been a favourable variance of £0.141m since Period 5 due to vacancy management. There is a projected underspend of £0.141m as a result of effective vacancy management. Council House Building Fund Sustainability Fund Software licences Transformation Programme Tenant led budget Unearmarked Capital Financing Costs Movement - there has been an adverse movement of £0.052m since Period 5 due to the reprofiling of the capital programme. A projected underspend of £1.918m 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. Income Movement - there has been an adverse movement of £0.204m since Period 5 primarily due to an increased under recovery in other rents following a review of overpayments. An under recovery in income of £0.577m. This is largely due to an under recovery of £0.573m in Other Rents.
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Appendix 8 1) Budget Virements Place Roads - Supplies and Services P 0.076 Roads - Income for DPE charges P -0.076 Roads - Third Party Payments T 1.109 Roads - Additional Income T -1.109 0.000 Communities & Housing Community Development - Employee Costs T 0.521 Community Development - Transport Costs T 0.005 Community Development - Supplies and Services T 0.053 Community Development - Administration Costs T 0.001 Community Development - Third Party Payments T 0.042 Community Development - Sportscotland Grant Income T -0.622 0.000 Education FM- Employee Costs- realignment of Facilities Management Budgets P 0.347 FM - Supplies and Services P -0.347 0.000 0.000 Budget Management - 30 November 2024 Virement/Budget Adjustment Requests 2024/25 Perm (P) / Temp(T) Virement £m Directorate Total £m
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APPENDIX 9 Integration Joint Board 12th December 2024 Subject : 2024-25 – Month 7 Financial Performance Purpose : To provide an overview of the IJB’s financial performance as at Month 7 (October). 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 £6.190m, reduced to £3.613m through already identified financial recovery actions; (b) notes the progress with delivery of agreed savings; (c) approves the actions which are being taken to progress financial recovery and that a further recovery plan will be presented to the next IJB; (d) notes the remaining financial risks for 2024-25; and (e) approves the budget reductions which are detailed at paragraph 2.10 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 MDT 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 MDT Multi-Disciplinary Team
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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 October 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 £6.190m (1.9%) for 2024-25, reduced to £3.613m through 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: Split TOTAL Health/ NHS AA Social Care/NAC Projected Overspend @ mth7 £6.190m £1.288m £4.902m Less Financial Recovery Plan Projections £2.577m £0.223m £2.354m Residual Risk £3.613m £1.065m £2.548m 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 Improvement: • Specialist Rehab Wards (Douglas Grant/Redburn) • UASC Grant Income • Transition slippage Deterioration: • Equipment and Adaptations • PD care packages • MH Lead partnership – including payroll turnover, LD in-patients but this was partially offset by improvements in Adult in-patients • Children with Disabilities • Looked after Children payments 1.5 The Integration Scheme describes the required approach where there is a projected overspend on the IJB integrated budget, which includes the requirement to agree a recovery plan to balance the overspending budget. Only if the recovery plan is unsuccessful will the Health Board and Council consider making available interim funds. NHS Ayrshire and Arran and North Ayrshire Council are not in a financial
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position to make interim funds readily available, therefore it is imperative that the IJB continues to support the process of development of the Financial Recovery Plan and the actions required to work towards financial balance by the year-end. 1.6 The projected IJB outturn position has been adjusted to reflect the impact of Lead Partnership services. The overspend 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. There is a requirement for the 3 IJBs to be aware of the position for Lead Partnership services and plans to deliver services from within allocated budget, on that basis further information will be brought forward with further detail on Lead Partnership services. 1.7 The 2024/25 financial position is being adversely impacted by several factors outwith the control of the IJB. • Formal confirmation by The Scottish Government of the 2024/25 funding for the Mental Health Outcome bundle saw a 3.5% reduction from 2023/24 which equates to £0.350m and the service are currently working through the implications of this reduction. It is expected that this can be managed within the carry forward reserves from 2023/24 so there is no impact on 2024/25 but the service is exploring the implications of bringing spend within budget in 2025/26. • Children’s residential placement contract inflation – Scotland Excel negotiate rates for several national framework contracts and the rates agreed to date are significantly higher than the 5.94% increase assumed as part of the Scottish Living Wage increase. Rates which are agreed to date are included in the projection and those still to be agreed are assumed to have an increase based on the average of rates agreed to date. Overall, the estimated impact is an increase to the projection of £0.486m. • Local Government and Health Pay Award Shortfall - it is unknown at this stage if this will be fully funded and the potential cost is not included in the month 7 projected outturn. • National Care Home Contract (NCHC)– the recent increase to the NCHC rate to reflect the impact of the nursing pay award resulted in an additional unfunded cost of £0.156m. 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.
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2.2 FINANCIAL PERFORMANCE – AT MONTH 7 At month 7 against the full-year budget of £324.231m there is a projected year-end overspend of £6.190m (1.9%). The Integration Scheme outlines that there is an 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 £4.902m in social care services and a projected overspend of £1.288m 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. Appendix F provides information on the costs of bank and agency staff as requested at the August IJB. 2.3 Health and Community Care Services Against the full-year budget of £90.803m there is a projected overspend of £6.235m (6.9%) (£0.092m adverse movement) and the main variances are: a) Care home placements – is overall projected to be £0.555m overspent. The budgeted number of permanent placements was 765 and at month 7 there were 790 placements. The projected overspend is £1.068m (£0.004m favourable) on permanent placements, £0.190m (£0.018m favourable) on interim placements and respite placements are projected to be online (no change). The plan to manage down the number of permanent placements to reach the target is challenging due to the need to minimise delayed discharge from hospital and to continue to support those in critical and substantial need in the community. The overspend is partially offset by income recovered from charging orders which is projected to be £0.703m over recovered (no movement). 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 is projected to be £2.710m overspent (net £0.038m adverse movement). The position reflects the cost of meeting the significant demand and level of provision for care at home support. The movement consists of a favourable movement of £0.073m in in-house services offset by an adverse movement of £0.111m relating to purchased care at home following the finalisation of all costs prior to the transfer of services to in house provision and
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the ongoing commitment of those service users that selected to continue with a purchased service under option 2. c) Physical Disability Services – projected overspend of £0.898m (£0.108m adverse) split as follows: £1.255m over in residential placements, £0.023m over in direct payments and £0.380m under in community care packages. d) Integrated Island Services is projected to overspend by £0.565m (£0.026m adverse movement). The most significant variance is a projected overspend at Montrose House of £0.422m (no movement) which relates to the net overspend on agency staff (i.e. net of underspend on employee costs). A new contract to procure agency nursing staff commenced in November which will reduce the hourly costs moving forward and this is reflected in the projection. e) Specialist Rehab wards – projected underspend of £0.014m (£0.140m favourable movement) (Redburn ward £0.093m overspend and Douglas Grant £0.107m 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 £0.786m (£0.026m adverse movement) due to use of supplementary staffing. g) District Nursing – projected to overspend by £0.071m mainly due to an overspend on nursing supplies. h) Equipment and Adaptions – projected overspend of £0.380m (£0.080m adverse movement) including an overspend on the supply of stairlifts. 2.4 Mental Health Services Against the full-year budget of £108.758m there is a projected overspend of £1.887m (1.7%) (adverse movement of £0.919m) prior to the re-allocation of the Lead Partnership variance to East and South HSCP. The main variances are: • Learning Disabilities are projected to overspend by £0.756m (£0.032m favourable movement) across community care packages, direct payments and residential placements. This improvement reflects the positive impact of assertive reviews of care packages. • Community Mental Health services are projected to underspend by £0.365m (£0.016m adverse) across community care packages, direct payments and residential placements. 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 £0.075m (£0.031m adverse movement) in relation to the cost of Hospital Based Complex Continuing Care (HBCCC), this reflects the impact of change in provision for these services.
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• The Lead Partnership for Mental Health is projected to be £1.560m overspent (£0.902m adverse movement) and the main variances are as follows: • Adult Inpatients – overspent by £0.442m (£0.186m favourable) due to overspends in supplementary staff for enhanced observations (1:1 and 2:1) and use of bank staff. There is a favourable impact from the opening of the adult mental health assessment hub which has seen the adult inpatient areas with reduced occupancy. • The UNPACS (Unplanned Activities) budget – projected overspend is £0.739m (£0.060m adverse movement) based on current placements. 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, 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 £0.284m (£0.254m adverse movement). The adverse movement is due to an increased use of bank and agency staff in Ward 7A. 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. The projected income due from prior and the current year is £2.308m. • Elderly Inpatients – projected overspend of £0.528m (£0.113m adverse movement) due to the use of supplementary staffing. The elderly mental health wards continue to operate at full occupancy and at times
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with waiting lists, with several patients who are on enhanced observations and bank costs remain high. • Eating Disorders – projected to overspend by £0.104m (£0.104m adverse movement) due to the staffing level being higher than the funding allocation. This will be considered alongside the overall resource allocation for future years. • Psychiatry – is projected to overspend by £0.200m (£0.200m adverse movement) due to the use of agency staff. A mitigation plan is being developed. • MH Pharmacy – is projected to overspend by £0.661m (£0.076m adverse movement) due to increased demand and cost of medicines and in particular the cost of Buvidal. ▪ Innovation Fund – projected underspend of £0.112m due to slippage within some of the projects and not all of the funding has been allocated. • 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 £0.500m (£0.319m adverse movement) in 2024-25. Further information is included in the table below: Vacancy Savings Target (£1.116m) Projected to March 2025 £1.616m Over/(Under) Achievement £0.500m 2.5 Children and Justice Services Against the full-year budget of £43.958m there is a projected overspend of £1.758m (4%) (£0.070m adverse movement) and the main variances are: a) Care Experienced Children and Young People is projected to overspend by £2.313m (£0.262m adverse movement). Some of these costs are offset by the contribution from the Home Office for Unaccompanied Asylum-Seeking Children which is detailed below. The main areas within this are noted below: • Following budget investment of £4m the children’s residential placements are overspent by £1.988m (£0.090m adverse movement) based on 30 placements at month 7. This demonstrates a reduction of 7 places since the start of the financial year. There are a number of factors leading to this challenging position:
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• 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. • Contractual inflation has increased the projected costs of residential places which is outwith the control of the service. 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 £0.721m underspent (£0.040m adverse movement). • Children with disabilities – there is a net projected overspend of £0.641m (£0.059m adverse movement) across residential placements, direct payments and community packages. The adverse movement is due to the confirmed costs of a recent placement being higher than previously estimated. • Residential respite – placements are overspent by £0.135m (no movement). These short-term placements are used to prevent an admission to full time care or to avoid placement breakdown. • Employee costs – are projected to overspend by £0.200m (adverse movement of £0.028m), largely due to staffing levels in the children’s houses. b) Head of Service – is projected to underspend by £0.842m (£0.167m favourable movement). This consists of 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 23-24 and this is offset by the grant funding in relation to Unaccompanied Asylum-Seeking Children, which is projected to amount to £1.060m (£0.096m favourable movement) and which contributes to costs incurred across a number of C&F service areas.
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c) C&F Health Team – is projected to overspend by £0.232m (£0.014m favourable movement) 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 This is projected to be on-line. 2.8 MANAGEMENT AND SUPPORT Management and Support Services are projected to underspend by £2.958m (£0.092m favourable) and the main areas of underspend are: • There is projected slippage on the LD and MH transition funding of £0.880m (£0.097m favourable) 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. • Blue Badge income – a projected over recovery of £0.035m. • Software licences – a favourable movement of £0.031m (Carefirst) • Medical fees and other supplies– favourable movement of £0.034m • An over-recovery of payroll turnover of £1.686m for social care services and an over-recovery of payroll turnover of £0.317m 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) Projected to be achieved by March 2025 4.987m 1.839m Over/(Under) Achievement 1.686m 0.317m 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.
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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. This has led to a significant increase in the level of turnover when projected to the year end. The turnover target for the North Lead Partnership for Mental Health services is detailed separately 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 7 £m Red - 0.586 Amber 0.523 - Green 9.767 - Blue - 9.704 TOTAL 10.290 10.290 b) The main area to note is that the red savings have increased since month 6 as the saving in relation to care homes and recovery and rehab look unlikely to be achieved. 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. Reductions Requiring Approval: Ref Description Amount (£000) 1 Transfer to capital re West Road (281) 2 Training Grade adjustments (51) 3 Hollybush House contract – contract ceased and funding returned (1,424) 4 Pharmacy Tariff Reduction (31)
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5 Huntington’s funding – return to East HSCP (5) 6 Reduction in MDT funding from estimated (316) 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 7 the MH lead partnership is projected to overspend by £1.560m (£0.511m NRAC share for East and £0.446m for South). South HSCP (month 6 info) – projected overspend of £0.581m of which £0.215m 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 £0.074m in the continence service and an underspend £0.006m in the Family Nurse Partnership. East HSCP (month 7 info) - projected underspend of £0.200m (£0.160m adverse) in total (of which £0.074m will be allocated to North). The main variances are: Allied Health Professions (Lead Partnership) There is a projected underspend of £0.258m (£0.302m at month 6) on AHP services hosted by East Ayrshire for the current year, which mainly relates to staffing savings in Physiotherapy / MSK and Podiatry services and is partially offset by increased Orthotics costs. The projected outturn movement from month 6 relates to planned recruitment to vacant posts in the current financial year. Primary Care and Out of Hours Services (Lead Partnership) There is a small projected overspend of £0.044m (£0.064m projected underspend at month 6) on the Primary Care Lead Partnership budget, with additional costs in Out of Hours services £0.364m (£0.321m at month 6), with work ongoing to mitigate increased costs as far as possible over the course of the 2024/25 financial year and going forward, as well as additional Primary Care contracting and support costs £0.041m (£0.027m at month 6). These additional costs are largely offset by a projected underspend in Dental services totalling £0.346m (£0.344m at month 6), where staffing numbers are running at less than establishment. Recruitment over the remainder of the financial year has the potential to impact further on the projected outturn position.
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Prison and Police Healthcare (Lead Partnership) The £0.084m (£0.101m at month 6) projected underspend at month 7 is largely due reduced staffing costs (at month 7 average actual WTE 30.50 v budgeted WTE 35.15), partially offset by increased prescribing costs £0.293m, which includes more expensive opioid replacement therapy costs which is an unbudgeted cost in 2024/25. Other Services (Lead Partnership) The £0.098m (£0.106m at month 6) projected overspend is due to increased Area Wide Evening Services costs, mainly due to additional staffing costs including high use of bank staff. Work is ongoing to reduce costs as far as possible in the current financial year and going-forward. 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 these compare 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 HSCPs require to agree their final share of the baseline with each other, however the aggregate will remain unchanged. The table below shows the cost of the historic baseline at 2022/23 prices. 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 £452.0 million. The directorate overspent by £20.4 million after 7 months. This was caused by overspends on agency medical and nursing staff, together with drug expenditure including the New Medicines Fund, equipment and supplies. These have been required due to the level of operational pressure being experienced, in common with many other areas in Scotland. Whilst unfunded beds remained open across both main hospital sites during October, progress is now being made in reducing these with commensurate financial improvement expected to follow.
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There is a material underlying deficit caused by: • Unachieved efficiency savings • Length of Stay (LoS) and emergency admission rates in NHS Ayrshire and Arran acute hospitals are 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 announcements by Scottish Government in relation to public sector finances and in-year spending reductions will impact on current and future funding, including for 2024-25 pay awards, which have recently been settled for local government and NHS but the funding position is not yet clear. • 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. • The recurring underlying levels of overspend which may impact on the Partnership’s ability to continue to sustain service levels in the future.
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• The IJB free general fund reserves are estimated to be fully used 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. Non- recurring funding has been provided to meet costs associated with this but it is unclear whether this will be sufficient. • Scot Excel inflationary increases for children’s service are significantly higher than assumed. • There is a risk in relation to recovering recharge income in relation to the LD Assessment and Treatment patients from outwith Ayrshire. These risks will continue to be monitored during 2024-25. 2.13 RESERVES The IJB reserves position is summarised in the table below. 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 Anticipated Drawdown (0.357) (3.379) (1.202) (4.938) Balance – 31 March 2025 - - 0.572 0.572 The £1.774m HSCP earmarked reserve relates to the Service Redesign and Change Fund which is fully committed. Further detail on the 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, work has continued to develop the financial recovery plan and identify further targets for financial improvements. The current plan is outlined in full at Appendix E. There has been progress towards some of the targets, and these are already reflected in the current projected outturn of £6.190m 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. • Restrictions on all but essential overtime working. • 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. Meetings have now been scheduled to the end of the year. To date the Finance Working Group has met three times and covered care at home, care homes, charging income, financial inclusion, an overview of the budget and the Brighter Pathways project. The next meeting will review Complex Care, Addictions Prescribing and an update to the Medium-Term Financial Outlook. • 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:
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Split TOTAL Health/NHS AA Social Care/NAC Projected Overspend @ mth7 £6.190m £1.288m £4.902m Less Financial Recovery Plan Projections £2.577m £0.223m £2.354m Residual Risk £3.613m £1.065m £2.548m 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 £6.190m (1.9%). The report outlines the main variances for individual services. The IJB 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 £3.613m 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.
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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. 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 31st October 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 £'000 £'000 COMMUNITY CARE AND HEALTH 71,092 76,226 5,134 19,711 20,812 1,101 90,803 97,038 6,235 6,143 92 : Locality Services 30,262 31,787 1,525 5,628 5,699 71 35,890 37,486 1,596 1,541 55 : Community Care Service Delivery 36,761 39,548 2,787 0 36,761 39,548 2,787 2,805 (18) : Rehabilitation and Reablement 2,124 2,508 384 0 2,124 2,508 384 327 57 : Long Term Conditions 917 946 29 9,891 10,771 880 10,808 11,717 909 931 (22) : Community Link Workers 334 328 (6) 0 0 0 334 328 (6) 0 (6) : Integrated Island Services 694 1,109 415 4,192 4,342 150 4,886 5,451 565 539 26 MENTAL HEALTH SERVICES 34,128 34,530 402 74,630 76,115 1,485 108,758 110,645 1,887 968 919 : Learning Disabilities 25,690 26,446 756 555 555 0 26,245 27,001 756 787 (31) : Community Mental Health 6,416 6,051 (365) 1,794 1,794 0 8,210 7,845 (365) (381) 16 : Addictions 2,022 2,033 11 1,991 1,991 0 4,013 4,024 11 10 1 : HBCCC 0 0 0 353 278 (75) 353 278 (75) (106) 31 : Lead Partnership Mental Health NHS Area Wide 0 0 0 69,937 71,497 1,560 69,937 71,497 1,560 658 902 CHILDREN & JUSTICE SERVICES 38,783 40,309 1,526 5,175 5,407 232 43,958 45,716 1,758 1,688 70 : Irvine, Kilwinning and Three Towns 2,978 3,017 39 0 0 0 2,978 3,017 39 54 (15) : Garnock Valley, North Coast and Arran 3,097 3,134 37 0 0 0 3,097 3,134 37 31 6 :Intervention Services 1,622 1,622 0 0 0 0 1,622 1,622 0 4 (4) : Care Experienced Children & Young people 27,127 29,440 2,313 0 0 0 27,127 29,440 2,313 2,051 262 : Head of Service - Children & Families 1,074 232 (842) 0 0 0 1,074 232 (842) (675) (167) : Justice Services 2,472 2,472 0 0 0 0 2,472 2,472 0 0 0 : C&F Health Team 413 392 (21) 4,447 4,679 232 4,860 5,071 211 223 (12) : Lead Partnership NHS Children's Services 0 0 0 728 728 0 728 728 0 0 0 CHIEF SOCIAL WORK OFFICER 1,538 1,544 6 0 0 0 1,538 1,544 6 (1) 7 PRIMARY CARE 0 0 0 53,109 53,186 77 53,109 53,186 77 0 77 ALLIED HEALTH PROFESSIONALS 0 10,876 10,877 1 10,876 10,877 1 0 1 MANAGEMENT AND SUPPORT COSTS 10,620 8,454 (2,166) 4,569 3,777 (792) 15,189 12,231 (2,958) (2,866) (92) OUTTURN ON A MANAGED BASIS 156,161 161,063 4,902 168,070 170,174 2,104 324,231 331,237 7,006 5,932 1,074 Over/ (Under) Spend Variance at Period 6 Movement in variance from Period 6 TOTAL Partnership Budget - Objective Summary Council Health 2024/25 Budget
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PUBLIC INFORMATION TOTAL Budget Budget 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 £'000 £'000 Return Hosted Over/Underspends East 0 0 0 0 (511) (511) 0 (511) (511) (215) (296) Return Hosted Over/Underspends South 0 0 0 0 (446) (446) 0 (446) (446) (188) (258) Receive Hosted Over/Underspends South 0 0 0 0 215 215 0 215 215 215 0 Receive Hosted Over/Underspends East 0 0 0 0 (74) (74) 0 (74) (74) (133) 59 OUTTURN ON AN IJB BASIS 156,161 161,063 4,902 168,070 169,358 1,288 324,231 330,421 6,190 5,611 579 Over/ (Under) Spend Variance at Period 6 Movement in variance from Period 6 Partnership Budget - Objective Summary 2024/25 Budget Council Health
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PUBLIC INFORMATION 2024-25 Savings Tracker Appendix B Social Care: Description Deliverability Status at budget setting Deliverability Status at Month 7 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 Red 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 Blue 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 Red 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 7 2024/25 Saving Description of the Saving Hospital Based Complex Continuing Care (HBCCC) provision Green Blue 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 Red 0.100 Review and streamline a range of current provisions to remove duplication. Enhanced ICT Green Blue 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 24.919 Realign Girfec Team To Connected Communities1-3 P (0.073) ICT Budget Transfers 1-3 P (0.006) CJSW Funding 2425 1-3 T 0.053 Childrens Living Wage Allocation 1-3 T 0.525 ICT Budget Transfers 6 P -0.002 ICT Budget Transfers 6 P -0.003 Post Realigned from the Policy, Performance & Elections Team 6 P 0.059 Transfer to FM Services re Cleaning Services at West Road 6 P -0.01 Transfer to Capital re West Road 7 T -0.281 Transfer from NAC Commercial Waste 7 T 0.007 Roundings 7 -0.003 156.161 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 (24.919) North Superannuation 24/25 uplift 1 1.134 MH: ANTICIPATE HOLLYBUSH COMBAT STRESS 24/25 1 1.424 MH: ANTICIPATE DELIVERY OF VETERAN SPECIFIC 24/25 1 0.105 MH: ANTICIPATE PERINATAL MH, INFANT MH (INCL 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 Bwg Foxgrove North 2 0.033 24-25 E Bwp Breast Feeding - North 2 0.005 24-25 E Bwp Huntingtons North 2 0.005 24-25 E Bwp Nest North 2 0.066 Phlebotomy Admin Returned 2 0.005 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) Social Care Budget Reported at Month 7
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PUBLIC INFORMATION COUNCIL Period Permanent or Temporary £'m 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) Ambush North Rx 3 1.573 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 Reduction to the Working Week (mth 2 - 4) 4 0.105 Post to medical records 4 (0.037) HD107: breast Feeding project funds 4 0.056 BBV 4 0.280 Rww 1/2 Hour Overtime M5 5 0.006 Min Anp Allocation 5 0.020 Ml: Nr Prog - Mappa 5 0.004 Training Grade Adj - August 5 0.051 Training Grade Vac Adj - August 5 (0.025) MH: Return Hollybudh anticipated budget back to reserves 24/25 5 (1.424) HD271: Combat Stress Clinical services for Veterans 5 0.583 Reduction to the Working Week 1/2 Hour Overtime M6 6 0.002 Hd283 24-25 Pharmacy Tariff Red 6 (0.031) Reduction to the Working Week 1/2 Hour Overtime M7 7 0.003 Afc Partnership Pay Award 7 4.710 Training Grade Adj - October 7 (0.026) 24-25 E Bwp Huntington's North - Return To East 7 (0.005) Mh - Afc Reform Reduced Working Week 7 0.037 Pharmacy Tarrif reduction reinstated 7 0.031 Return Anticipated MDT 7 (0.316) MDT reduction by SG 7 0.179 Anticipated budgets assumed in the report but not yet allocated 7 1.628 Roundings 7 0.001 168.070 TOTAL COMBINED BUDGET 324.231 Health Budget Reported at Month 7
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PUBLIC INFORMATION 24-25 IJB Reserves Position Appendix D Area of Reserves Balance at 31 March 2024 2024-25 Anticipated Draw Downs Projected Balance at 31 March 2025 : Alcohol & Drug Partnership 641 (641) 0 : Mental Health Action 15 57 (57) 0 : Service Redesign / Challenge Fund 1,774 (1,202) 572 : Community Living Change Fund 377 (377) 0 : Family Wellbeing Fund 1,313 (1,313) 0 : Wellbeing Fund 50 (50) 0 : Breast Feeding Network 26 (26) 0 : MH Recovery and Renewal 546 (546) 0 : Buvidal 23 (23) 0 : Brooksby 5 (5) 0 : Cossette Funding 4 (4) 0 : Expansion of Primary Care Estates 55 (55) 0 : GP Premises Improvements - tranches 1 and 2 63 (63) 0 : Mental Health Wellbeing in Primary Care 81 (81) 0 : Dental Practice Improvement 29 (29) 0 :Appropriate Adult Scheme 2 (2) 0 :Adult Tier 3 Weight Management Service 19 (19) 0 : Phlebotomy 22 (22) 0 : LD Health Checks 66 (66) 0 Total Earmarked 5,153 (4,581) 572 Unallocated General Fund 357 (357) 0 General Fund 5,510 (4,938) 572 Earmarked Funds
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PUBLIC INFORMATION Financial Recovery Action Plan Appendix E FINANCIAL RECOVERY PLAN £m £m £m Projected Overspend at Month 7 6.190 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) 0.000 (0.700) June IJB Reduce CAH capacity/delay recruitment/in- house efficiencies (0.850) (0.655) (0.195) June IJB Community Wards - reduce supplementary staffing and review bed capacity (0.500) (0.361) (0.139) 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 (0.075) (0.075) 0.000 August IJB MH and LD (Lead Partnership) Ward staffing (adults/elderly inpatients) (0.300) (0.083) (0.217) 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%) (0.314) (0.230) (0.084) Children and Families Reduce children's external placements - early reduction from Brighter Pathways work (0.500) (0.500) 0.000 June IJB Additional target re-residential placements (0.500) (0.139) (0.361) August IJB Additional target re-residential placements (0.225) 0.000 (0.225) September IJB Reduce investment in C&F social work via service redesign fund (0.300) 0.000 (0.300) September IJB Cross Partnership Vacancy management and temporary posts (0.500) (0.500) 0.000 June IJB Use of remaining reserve balance (0.357) 0.000 (0.357) August IJB Review of earmarked reserves (0.216) 0.000 (0.216) September IJB Target Achieved Outstanding (5.037) (2.460) (2.577) Remaining projected overspend 3.613
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PUBLIC INFORMATION Bank and Agency Costs to Month 7 Appendix F 1) NHS 4863 (Registered) 4864 (Unregistered) 4853 (Registered) 4854 (Unregistered) 4865 (Agency Locum Consultant) 4867 (Agency Locum Spec Registrar) TOTAL NORTH CORE SLT ADULT 8,393 8,393 WARD 1 WOODLANDS VIEW 40,990 254,220 295,209 WARD 2 WOODLANDS VIEW 30,232 193,974 224,206 ACH REDBURN REHAB WARD NRS 7,073 67,488 74,561 ACH DOUGLAS GRANT REHAB WD NRS 8,659 39,873 530 709 49,771 WARD 3 WOODLANDS VIEW NURSING 27,404 209,737 1,589 185 238,916 WARD 4 WOODLANDS VIEW NURSING 31,764 176,007 207,771 NEW CLONBEITH NURSING(JURA) 79,693 65,452 145,144 WVIEW THE GLEN ECT - 1,989 1,989 WVIEW WARD 10 ACUTE MH NRS 35,517 43,731 79,249 WVIEW WARD 8 ACUTE MH NRS 23,146 466,912 251 490,308 WARD 5 WOODLANDS VIEW 19,514 19,267 38,781 WVIEW WARD 7B REHAB MH NRS 2,103 2,103 NEW DUNURE NURSING(CLONBEITH) 30,452 97,807 128,259 MH BED MANAGEMENT 972 972 TRINDLEMOSS 46,015 109,409 155,425 ARRAN HOSPITAL NURSING 18,485 22,467 13,091 54,044 CAMHS MANAGEMENT 1,943 1,943 CAMHS UNSCHEDULED CARE 4,681 4,681 EARLY YRS-C/F TEAM 2 290 290 IMMUNISATION NURSING 30,026 18,899 48,925 ARRAN HV 506 506 PACKAGE OF CARE (P) - CY - 17,794 17,794 PACKAGE OF CARE (P) - AMG - 44,441 44,441 PACKAGE OF CARE (P) - LMO 5,154 5,154 ARRAN DN 235 235 NC POC TEAM 2 529 529 NC POC TEAM 3 - 2,548 2,548 THREE TOWNS DN 9,906 161 10,068 IRVINE DN 15,398 15,398 NORTH WEST COAST DN 4,037 99 4,136 GARNOCK VALLEY DN 67,120 67,120 NORTH DN TEAM LEADERS 4,286 4,286 LADY MARGARET NURSING 10,957 5,351 16,307 PREVENTION + SERVICES SPT TEAM 1,481 1,481 MH UNPACS (PRIVATE) - - LD HEALTH CHECKS 85,491 85,491 NORTH CLDT 429 429 LDS MANAGEMENT 4,100 4,100 NORTH PARTNERSHIP ADMIN MH 13 13 MHS INPATIENT MGT 18,468 18,468 CMHT NURSING-NORTH AYRSHIRE - 8,439 8,439 WVIEW WARD 7C FORENSIC REHAB N 5,340 78,699 84,040 DAY ACTIVITIES TEAM 227 227 INTENSIVE COMMUNITY NURSING TEAM 21,003 21,003 ADULT MENTAL HEALTH LIASION TEAM 2,295 2,295 PCMHT NORTH 1,663 1,663 WVIEW WARD 6 LOW SECURE NRS 46,566 139,849 186,415 WARRIX AVE 13,994 23,125 37,119 ACTION 15 - ADULT LIAISON 8,815 8,815 NORTH CORE SLT PAEDS 1,483 1,483 FORENSIC PSYCHOLOGY 2,062 2,062 ICFN - COMMUNITY PHLEBOTOMY - 7,173 7,173 WVIEW WARD 7A LD A+T NRS 12,979 459,760 2,966 6,616 482,321 WVIEW WARD 9 ACUTE MH NRS 27,435 120,263 147,698 WVIEW WARD 11 ACUTE MH NRS 50,361 168,568 257 219,186 ADULT EAST 61,819 61,819 ADULT SOUTH 101,661 91,984 193,645 853,687 2,870,934 18,351 8,018 163,480 91,984 4,014,847 2) SOCIAL CARE Month 7 Agency Cost Montrose House 535,821 Children Acm - Irvine 1,188 Mh Acm 88,695 Ld Acm 20,550 TOTAL 646,253 Bank Agency