Report by Chief Officer. (NOT AVAILABLE - COPY TO FOLLOW).
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The Chief Finance Officer submitted a report relative to the due diligence process undertaken to seek assurances that the budgets for 2016/17 being transferred from Renfrewshire Council and NHSGG&C were adequate and that the makeup of the budgets and any underlying risks and assumptions were mutually understood.
The report intimated that the due diligence process ensured a consistency in approach for Chief Officers and Chief Finance Officers in providing a transparent, evidence-based methodology to identify continuing pressures, demands and associated risks in relation to the delegated functions. This allowed the identification of any relevant and necessary management action to be taken including potential baseline funding adjustments.
A comprehensive financial due diligence process had been completed for the adult social care budget, being delegated by Renfrewshire Council to the IJB from 1 April 2016, which concluded that the 2016/17 budget was sufficient to deliver on the outcomes highlighted within the Strategic Plan subject to effective risk mitigation and the successful delivery of efficiency initiatives detailed with the report.
At this stage, the NHSGG&C budget for 2016/17 had not yet been formally set and the plans to meet the identified financial pressures were still being developed. The Chief Finance Officer was unable to complete her financial due diligence on the proposed NHS budget transfer until a budget had been set by NHSGG&C.
The Scottish Government issued guidance on financial resources for integration authorities on 14 March 2016 which highlighted the health board’s responsibilities in relation to confirming its final budget allocation to IJBs for 2016/17 and a copy of this letter formed Appendix 1 to the report. The Chief Executive, NHSGG&C issued a letter dated 14 March 2016 to the six NHSGG&C HSCP Chief Officers outlining its 2016/17 financial planning and budget setting process and provided an indicative allocation of uplift and cost pressures for each IJB and a copy of this letter formed Appendix 2 to the report.
The Chief Finance Officer’s report set out recommendations and advice to the IJB going into 2016/17 in light of the financial uncertainty and the key areas of risk this represented for the IJB.
DECIDED:
(a) That the financial due diligence work completed by the Chief Finance Officer in relation to the social care budget, being delegated from Renfrewshire Council to the IJB from 1 April 2016, be noted;
(b) That the Chief Finance Officer’s assurances in relation to the sufficiency of the social care budget to be delegated, subject to effective risk mitigation and the successful delivery of efficiency initiatives detailed in the report, be noted;
(c) That the current incomplete position with regards to the financial due diligence work undertaken by the Chief Finance Officer in relation to the health budget, being delegated from NHSGG&C to the IJB from 1 April 2016, be noted;
(d) That the terms of the letter from the Scottish Government dated 14 March 2016 in relation to financial resources for Integration Authorities, as detailed in Appendix 1 to the report, be noted;
(e) That the contents of the letter from the Chief Executive of NHSGG&C which outlined the health boards 2016/17 financial planning and budget setting process, as detailed in Appendix 2 to the report, be noted;
(f) That pending the final health budget being agreed by NHSGG&C, the advice from the Chief Finance Officer that the IJB should assume that the NHSGG&C Board would fund the full cost of delegated health functions from 1 April 2016, net of any agreed reductions, be approved. This should be treated as an interim position pending the NHSGG&C Board finalising its budget for 2016/17;
(g) That the IJB Chairman seek written confirmation from NHSGG&C, on behalf of the IJB, that they will fund this interim position based on the assumptions outlined in paragraph 6.7 of the report;
(h) That pending approval of the final 2016/17 health budget to be delegated by NHSGG&C, the IJB provide formal assurance to Renfrewshire Council that resources being transferred for delegated adult social care functions would not be utilised to offset any resource shortfall or unacceptable risk position identified through the due diligence process for the provision of delegated health services. This assurance would not preclude the IJB making any future service or resource changes where such decisions were in line with the direction of travel as set out in the IJB’s Strategic Plan;
(i) That the Chief Officer issue Interim Directions to the NHSGG&C Chief Executive, consistent with the assumed health service’s position as detailed in paragraph 6.7 of the report;
(j) That delegated authority be granted to the Chief Officer to issue Interim Directions to Renfrewshire Council’s Chief Executive, consistent with Renfrewshire Council’s position as detailed in paragraph 6.3 of the report;
(k) That the Chief Officer continue to work with the Health Board Corporate Management Team and others to identify savings schemes and changes on a NHSGG&C whole system basis that reflected viable cost reductions to support the Health Board achieve its budget position for 2016/17;
(l) That the Chief Officer advise the IJB of the operational implications of any viable and agreed savings and the impact to current service delivery and performance levels; and
(m) That the Chief Finance Officer submit a report to a future meeting of the IJB completing the financial due diligence process noting any risks and caveats identified and appropriate mitigation required and the final 2016/17 Financial Plan once NHSGG&C had agreed the final 2016/17 health budget to be delegated to the IJB.