5
The Chief Finance Officer submitted a report relative to the revenue and capital budget positions from 1 April to 24 July 2016 for Social Work and from 1 April to 31 July 2016 for the Health Board, as detailed in Appendix 1 to the report. The key pressures were highlighted in sections 4 and 5 of the report.
The report provided an update on the Health Board’s contribution to the IJB; the implementation of the Living Wage; financial planning proposals for budget setting; and Integrated Care Fund (ICF) proposed governance arrangements.
The overall revenue position for the HSCP at 31 July 2016 was an overspend of £457,000, as detailed in Appendix 1 to the report, with a projected year-end adverse variance of £1.378 million. Appendix 2 to the report provided a reconciliation of the main budget adjustments applied this current financial year to bring the HSCP to the net budget as reported.
It was proposed that, in future reports, all underspends and overspends be itemised together. This was agreed.
A copy of the NHS Greater Glasgow & Clyde (NHSGG&C) draft Financial Plan 2016/17 approved by the NHSGG&C Board on 28 June 2016 formed Appendix 3 to the report; details of the 2016/17 financial allocation to the HSCP formed Appendix 4 to the report; details of the 2016/17 notional set aside budgets by speciality formed Appendix 5 to the report; details of the methodology used to calculate the notional set aside budgets formed Appendix 6 to the report; and the terms of reference for the HSCP Finance and Planning Group formed Appendix 7 to the report.
Discussion took place relative to implementation of the Living Wage and the ongoing work being carried out by the HSCP with providers to deliver the Living Wage commitment by 1 October 2016 and the perception amongst service users that cuts were being proposed to those individuals with low and moderate needs in receipt of self-directed support. It was proposed that the Chief Finance Officer submit a report to a future meeting of this IJB relative to negotiations being carried out with providers to deliver the Living Wage commitment by 1 October 2016 and that the Head of Social Care (Paisley) contact service users as required to clarify the position in relation to those individuals with low and moderate needs in receipt of self-directed support. This was agreed.
DECIDED:
(a)That it be noted that the financial position to date was an overspend of £457,000 with a potential full year adverse variance of £1.378 million;
(b)That the NHSGG&C budget allocation for 2016/17 including the notional set aside budgets for 2016/17 be noted;
(c)That the due diligence work update on the Health Board contribution to the IJB, which had highlighted areas of financial risk to the health care budget allocation for 2016/17, be noted;
(d)That it be noted that at this point there were no approved plans in place to deliver against the health services savings gap of £1.378 million which accounted for the reported overspend position reported in the first quarter of this financial year and the potential full year adverse variance;
(e)That it be noted that the forecast progress for the remainder of the financial year assumed the overspend position would continue unless service changes and cost reductions were achieved;
(f)That it be noted that the NHS Board had identified that non-recurring funding was available to offset the in-year shortfall against savings targets and that discussions were underway to determine how non-recurring funding would be allocated to Partnerships within this financial year reducing the potential in-year overspend;
(g) That the progress of the Living Wage Implementation Project be noted;
(h) That the establishment of a HSCP strategic service and financial planning model be noted;
(i) That the proposed ICF governance arrangements be noted;
(j) That it be agreed that the cost savings options to restore recurring financial budget balance to the health budget in 2016/17 would be presented to the IJB for review in November 2016;
(k) That an additional one-off payment be requested from NHSGG&C to fund any identified shortfall due to the impact of unallocated savings;
(l) That the Director of Finance for NHSGG&C be requested to provide a written assurance that no future savings targets would be applied in respect of the 2015/16 unallocated savings of £7.8 million;
(m) That authority be delegated to the Chief Officer to issue updated Directions, as required;
(n) That, in future reports, all underspends and overspends be itemised together;
(o) That the Chief Finance Officer submit a report to a future meeting of the IJB relative to negotiations being carried out with providers to deliver the Living Wage commitment by 1 October 2016; and
(p) That the Head of Health and Social Care (Paisley) contact service users as required to clarify the position in relation to those individuals with low and moderate needs in receipt of self-directed support.