Agenda item

To receive the Financial (budget) Monitoring paper as received by Cabinet on 18 November 2014.

Received the report of the Assistant Director of Finance, Kevin Bartle, setting out the Council’s financial position as at September 2014, included in the agenda pack.

Noted

a.         Mr Bartle highlighted the main elements of the current position including that the revenue position was a forecast £2.168 million overspend.  The key areas of overspend were in Children’s and Adults Services.

b.         In response to questioning about how the Council would deal with the overspend  Beverley Tarka, Interim Director of Adult Services, highlighted some positive aspects including that people with high level disabilities were being more supported in the community, which placed additional pressure on Council services. Budget pressures included adults under the age of 65 who were living longer after strokes and cardiac arrests and older people being offered reablement support, which was a free 6 week period of intervention to help them develop independent life skills and reduce the need for long term, high quality care. Reablement literature would be circulated to the Committee.

Action: Beverley Tarka

The Council had set a robust management plan to deal with the overspend.  Panels monitored care packages, which were reviewed annually or before if it was felt a service user was able to move to a reduced care packages.  Packages were scrutinised to ensure value for money; a number of staffing vacancies had not been filled to offset some of the overspend; business analysts ensured accurate projections; managers had detailed action plan targets and reported fortnightly to the Chief Executive.

c.         In response to various questions Jon Abbey, Interim Director of Children’s Services reported that the main areas of overspend were the First Response Team, Looked After Children, ‘No Recourse to Public Funds’ and Homelessness.  A management plan was in place and weekly  resource panel meetings took place, high cost placements were reviewed and various panels held heads of services and team leaders to account for their expenditure.  Management action had seen some progress as a result of the resource panels. 

d.         The Committee was reassured that the management action plans were not to the detriment of service users but to ensure robust and efficient processes and value for money and quality outcomes at a reasonable cost.

e.         In response to comments that there would continue to be increased pressure on services, Ms Tarka recognised the need to transform the way adult social care was delivered.  Adults Services had an increased focus on reablement, closer working with health and housing, 6 current supported living projects to allow people to be maintained in the community reducing the need for residential care.

f.          The Children’s Services transformation programme would focus on early help  and more emphasis on universal systems such as schools and children’s centres so that fewer unnecessary referrals were made to social services. Early intervention and directly supporting families to get better outcomes at earlier stages would drive costs down.  Some investment would be required and improving the flexibility of the workforce.

g.         Cllr Connor was concerned about the burden of two sets of costs for Adult Services: acute care and reablement programmes and asked a number of questions, the responses to which are noted below:

·         Adult services employed 3 business support officers (to be reviewed after 12 months) to reduce anomalies in the system and to ensure accurate financial forecasting working alongside social workers (where social workers were previously expected to do this). 

·         Increased Adult Care costs were acknowledged and there was provision in the Better Care Fund to support some of the costs including investment in community services; £5m in the first year and £22m in the second year.  There was money within the Better Care Fund to assist with the implementation of the Care Act although it was unknown what the cost of implementing the Care Act would be, however, Haringey was on track in its planning.

·         As part of the Care Act, the Care Cap will come into effect in 2016 and whilst it was a consideration the Council did not expect costs to take effect until 18/19. The immediate pressure for next year would be Self Funders who would be seeking advice or assessments so that their care could start counting towards the cap.  Government Grant funding was available for this and the costs would be for assessment and advice staff.

·         There were still difficulties recruiting social workers and a regional workforce plan was in place.  Not all assessment work needed to be conducted by a qualified social worker and there would be a drive for self assessment with voluntary sector support and using staff flexibly.

h.         In response to questioning about budget consultation, it was confirmed that budget documents would be published on Monday, conversations would be held with staff and the Workforce Plan publicised, consultation would begin after December’s Cabinet meeting.  The Council was engaging with Barnet, Enfield and Haringey Mental Health Trust, Middlesex Hospital Whittington Health and other bodies. A small consultation team was in place to support the process.

i.          In response to Member questioning it was acknowledged that the required savings for this financial year had not been achieved.  The pressure was the number of looked after children which had been expected to decrease but had increased to 509; the London average was 400 per Borough.

j.          Members would be presented with regular updates as part of the budget consultation plan.

Officers were thanked for their attendance and the report was noted.