Agenda item

Financial Monitoring Report Quarter 3 2018/19


Matthew Gotts, Principal Accountant introduced the report of the Director of Finance and Investment (S151) that set out the financial monitoring information for the Adult Care and Health Overview and Scrutiny Committee. The report provided Members with detail to scrutinise budget performance for this area of activity. The financial information covered the period as at the close of Quarter 3 2018/19.


The report had been drawn from the relevant sections of the most recent Cabinet financial monitoring reports and had been combined with additional service information to produce a bespoke report on areas falling under the responsibility of the Overview and Scrutiny Committee. The report included information on performance against the revenue budget (including savings, and performance against the capital budget.


The Principal Accountant apprised Members of key points in relation to the budget, namely:


  • Adult Health and Care is still forecast to balance its budget by year-end, with no significant changes to the forecast position from Quarter 2;


  • Additional financial pressures on the service anticipated at £2.5 million, comprised of two elements:


(i)  £0.7 million part-year effect of increased demand for services in 2018/19 – to be fully mitigated through continued delivery of the agreed savings plan; and


(ii)  £1.8 million additional demand anticipated over the winter period – predominantly in the home care market. This will be mitigated by Wirral’s allocation of the Chancellor’s announced £650 million extra funding for social care in 2019/20, of which £240 million is specifically ring-fenced for adult social care.


  • Pooled funding – of which Adult Health and Care is a contributor, was currently forecasting a deficit position due to increased demand for services. Work is ongoing between the Council and Wirral CCG to manage this, including income generation and cost reduction. However, there was potential risk that a pooled fund deficit at year end could result in a liability to the Council of £0.5 million.


Overall, the Principal Accountant further highlighted that the cost pressures associated with fee rate increases, demographic growth, pre-agreed savings and the loss of Adult Social Care Grant and reduced ILF Grant had resulted in a predicted net budget gap of £5 million (equivalent to 3%-5% of the overall budget). He informed that Members and Officers were looking at this significant challenge, and that £3 million savings had already been identified with a further £2 million expected in consequential / follow on savings.


Members questioned the Principal Accountant on matters relating to the budget pressures, the management of pooled funding and requested that a summary report on the year-end figures be brought back to the Committee in June.


The Principal Accountant and the Director of Adult Care and Health responded, detailing the arrangements for pooled funding (as covered under a Section 75 agreement) and how the Council was working to help individuals become more independent, by the delivery of appropriate care packages. The Director of Adult Care and Health informed that in this fashion savings could be made without impacting on individuals care. He added that it was incumbent on the Council to provide appropriate care first, and the overall budget (although extensively planned for) was demand-led. 


Resolved – That the report and appendices be noted.

Supporting documents: