This section provides the opportunity to use the 'toolkit' to assess how your own council is meeting the criteria for good financial planning and budget management.
There are two subsections:
Key Questions for Councillors and Managers
Key Questions for Councillors and Managers
Below are a set of questions for you to consider which are then linked to the appropriate sections of this financial planning and budget management module. This will help you to navigate through the system to those topics which are of special interest to you. However, you are strongly advised to consider all of the questions which are linked to the different sections of the module, if you are to develop a comprehensive understanding of this key module.
Councillors and Managers
Key Questions | Where to go for more information |
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Why is budget management so complex in social services? |
Go to: Overview |
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Are you clear about the staff skills required to deliver effective budget management? |
Go to: Strategic financial planning |
What are the various sources of funding to support the delivery of social services in your council? |
Go to: Strategic financial planning |
Why is longer- term financial planning important for the delivery of effective Social Services? |
Go to: The budget setting process |
Do you understand why financial, service and human resources planning systems need to be integrated? |
Go to: The budget setting process |
Have you got good links in place between the annual budget setting process and your council's financial planning processes? |
Go to: Managing budgets |
Do you understand the relationship between budget allocations and service activity levels and how much your services cost? |
Go to: Management accountability |
Is your council clear about the respective roles of budget managers and finance and support staff in the budget setting and management processes? | |
Is your budget structure in line with operational responsibilities? | |
What arrangements are in place for investigating poor budget management and holding budget managers accountable? | Go to: Section Closing the accounts |
Do you understand the problems of comparing the cost of the services provided by your council with other councils, or between different approaches to service delivery? | Go to: Section Unit Costs |
Does your council have a strategic approach in setting charging policies and levels of charge for social services? | |
Are regular reports produced regarding debt management? | Go to: Section Debt Management |
There are two self-assessment tools which are included to help you to:
- Assess how your council measures up against the criteria which will lead to sound financial planning and budget management outlined in this module, and your own understanding of your council's position; and
- Understand the importance of matching finance and activity data to develop reliable unit cost information which will allow you to compare the cost of different services and to compare with other authorities.
How does your council shape up?
This tool is designed to allow users to assess the current position in their authority against the components of this module. For each critical success factor score yourself in the column that most reflects your current circumstances. To download an Excel version of this questionnaire click here.
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CRITICAL SUCCESS FACTOR 1 The council has established an appropriate corporate context for social services financial planning and budget management |
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| Attributes of a best practice authority | This Authority meets the attributes of a best practice authority | This Authority exhibits some of the attributes of a best practice authority | This Authority exhibits none of the attributes of a best practice authority |
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Score 4 |
Score 2 |
Score 0 |
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There is a transparent corporate framework for financial planning and budget management |
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Local rules reflect the complexity of managing social services budgets |
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Corporate arrangements are in place to monitor the performance of social services |
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The cost of providing social care services is monitored at a strategic level |
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Total score for this CSF |
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CRITICAL SUCCESS FACTOR 2 The council has ensured that there is consistency between the financial management arrangements and the underpinning culture of the organisation | |||
Attributes of a best practice authority | This Authority meets the attributes of a best practice authority | This Authority exhibits some of the attributes of a best practice authority | This Authority exhibits none of the attributes of a best practice authority |
Score 4 | Score 2 | Score 0 | |
The social services financial management function is appropriately organised and managed |
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The approach to managing budgets, and the scheme of delegation to support this, reflects the culture of the organisation and arrangements for making service decisions |
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There is clarity about which budgets and service activity levels managers are responsible for |
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The roles of finance, other support staff and budget managers are complementary |
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Total score for this CSF |
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CRITICAL SUCCESS FACTOR 3 There are skilled and competent staff at all levels in the social services organisation | |||
Attributes of a best practice authority | This Authority meets the attributes of a best practice authority | This Authority exhibits some of the attributes of a best practice authority | This Authority exhibits none of the attributes of a best practice authority |
Score 4 | Score 2 | Score 0 | |
Job specifications are precise about budget management accountabilities of managers and finance support staff |
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Specifications and competencies of finance staff and social services managers complement each other |
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Training plans address the financial management training needs of staff |
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Effectiveness of staff is monitored through a performance appraisal system and development needs linked back to the training plan |
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Total score for this CSF |
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CRITICAL SUCCESS FACTOR 4 The social services strategic financial planning is full integrated with service plans, those plans are produced for the longer-term, and service plans drive the planning system | |||
Attributes of a best practice authority | This Authority meets the attributes of a best practice authority | This Authority exhibits some of the attributes of a best practice authority | This Authority exhibits none of the attributes of a best practice authority |
Score 4 | Score 2 | Score 0 | |
National developments are reflected in strategic financial plans |
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Budget allocations are set which allow the longer-term planning of service developments or service reductions |
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The financial impact of trends in service demands, known and unavoidable commitments and the impact of demographic change are estimated |
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Pump-priming funds are made available and any payback arrangements identified |
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Costs of the HR implications of the programme are built into the financial plan |
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All possible sources of funding for social services have been identified and included in plans, with exit strategies for time-limited funding |
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Managers have flexibility to shape services to match available funding |
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Social services plans reflect broader corporate priorities |
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Joint commissioning budgets are identified in the longer-term financial plans of all partners |
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Total score for this CSF |
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CRITICAL SUCCESS FACTOR 5 Social services budget setting flows naturally from the council's longer-term financial plans | |||
Attributes of a best practice authority | This Authority meets the attributes of a best practice authority | This Authority exhibits some of the attributes of a best practice authority | This Authority exhibits none of the attributes of a best practice authority |
Score 4 | Score 2 | Score 0 | |
Budgets are set on a firm financial base which reflects service commitments, demands and priorities |
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Budgetholders at all levels in the organisation are engaged in the process of setting budgets |
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Appropriate and adequate arrangements exist for the setting of 'pooled' budgets |
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Total score for this CSF |
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CRITICAL SUCCESS FACTORS 6 Decision-making structures are clear | |||
Attributes of a best practice authority | This Authority meets the attributes of a best practice authority | This Authority exhibits some of the attributes of a best practice authority | This Authority exhibits none of the attributes of a best practice authority |
Score 4 | Score 2 | Score 0 | |
There is consistency between the organisation's management structures and culture |
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Budgets are delegated as close to the point of service delivery as possible |
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The decision-making approach is uniform throughout the organisation |
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Casework decisions are aligned with financial decision making |
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Staff and managers understand how much services cost and use Best Value in their decision making |
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Budget structures reflect the requirements of the Best Value Accounting Code of Practice |
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Budgets are structured to reflect the accountability framework in the scheme of delegation, which is regularly updated |
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Budgets can be used flexibly so that frontline staff are able to target resources where they are most needed |
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Total score for this CSF |
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CRITICAL SUCCESS FACTOR 7 Arrangements are in place to ensure effective monitoring and reporting of budgets | |||
Attributes of a best practice authority | This Authority meets the attributes of a best practice authority | This Authority exhibits some of the attributes of a best practice authority | This Authority exhibits none of the attributes of a best practice authority |
Score 4 | Score 2 | Score 0 | |
Timetables for budget monitoring are set and met, and reported at least monthly |
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There is active involvement by the Director of Social Services and councillors |
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Activity and expenditure information is integrated and the Authority has a clear view of the unit cost of all services and monitors changes on a regular basis |
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The Authority has a clear view of all of its current commitments and forecasts their impact accurately |
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The longer-term implications of in-year budget monitoring results are built into longer-term financial plans |
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Budget monitoring and management is supported by effective and integrated IT systems |
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Information gathered at the closure of accounts is used to review past performance and hold budget managers to account |
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Decisions are taken in year to address anticipated overspends and underspends |
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There are flexible arrangements in place to move money to meet service pressures within robust accountability frameworks |
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The approach to unit cost comparisons follows the Best Value Accounting Code of Practice and is based upon accurate finance/activity data |
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Total score for this CSF |
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CRITICAL SUCCESS FACTOR 8 The council reviews its performance in managing income | |||
Attributes of a best practice authority | This Authority meets the attributes of a best practice authority | This Authority exhibits some of the attributes of a best practice authority | This Authority exhibits none of the attributes of a best practice authority |
Score 4 | Score 2 | Score 0 | |
Charging for services is a strategic issue, and policies take account of broader corporate objectives and the impact on social care services |
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CIPFA guidance is followed when accounting for income |
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An effective debt management system is in place with all debts recorded |
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Procedures are in place to ensure that service users receive the welfare benefits to which they are entitled |
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Total score for this CSF |
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Self-assessment Questionnaire summary
| < Class=BoldParaWhite >Maximum score | Actual score | % |
The Council has established an appropriate corporate context for social services financial planning and budget management | 16 |
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The Council has ensured that there is consistency between the financial management arrangements and the underpinning culture of the organisation | 16 |
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There are skilled and competent staff at all levels in the social services organisation | 16 |
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The social services strategic financial planning is fully integrated with service plans, those plans are produced for the longer term, and service plans drive the planning system | 36 |
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Social services budget setting flows naturally from the Councils' longer-term financial plans | 12 |
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Decision making structures are clear | 24 |
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Arrangements are in place to ensure effective monitoring and reporting of budgets | 28 |
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The Council reviews its performance in managing income | 16 |
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| OVERALL TOTAL | 164 |
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Assessment tool: analysing finance and activity data
Analysing finance and activity data in Social Services - a model for use in budgeting and costing social care.
Introduction to the model
Joint Reviews ask authorities to provide detailed information about the level of expenditure, income and activity across client groups.
This data request has the potential for being used as a model within authorities to assist with budgeting and costing social care. The model requires three years' data: the last two years' actual and current year's estimates.
Based on the Chartered Institute of Public Finance and Accountancy (CIPFA) Best Value Accounting Code of Practice (BVACOP) and the Service Expenditure Analysis (SEA) for Social Services this 'top-down' model is structured as shown in Exhibit 1.
| EXHIBIT 1 | Top-down |
Source: Joint Reviews
The CIPFA Best Value Accounting Code of Practice (BVACOP) has been adopted in defining the data requirement of the annual CIPFA/DoH PSS Ex1 Return - and so authorities should already have data available to input to the model.
The model can be used to test the extent to which authorities' data is available and reliable. In many cases the Joint Review Team found that authorities struggled to generate basic finance and activity data and when data was provided it was often unreliable. This means that authorities are unlikely to have reliable information about the cost of services for their own management and decision-making purposes, and will not be able to compare the cost of different service options or to effectively compare their own performance with other similar authorities.
The model also provides activity and staffing information which can help with workload management.
Click here to download spreadsheet tool
A series of spreadsheets linked to graphs that show trend
The model consists of a series of spreadsheets for the Department overall and the individual client groups as follows:
SUM: Summary analysis of income and expenditure, care management costs, staffing and activity and overall reconciliation to SSD net budget.
…and an analysis of Social Services Purchasing Budget for each client grouping:
CLA FSS: Children looked after and family support services
YJ OCFS: Youth justice & other children's and families services
EP: Services for older people (aged 65 or over) including older mentally ill
PSI: Services for adults under 65 with physical or sensory impairment
LD: Services for adults under 65 with learning disabilities
MH: Services for adults under 65 with mental health needs
AS OAS: Services for asylum seekers and other adult services
These individual spreadsheets can be accessed by clicking on the links above. The spreadsheets allow authorities to record data and automatically produce a graphical trend analysis of activity, unit costs and client's contributions to the cost of care.
| EXHIBIT 2 | Example of data output |
Source: Joint Reviews
Summary overall financial data
Various analyses are possible by each client group or in summary for social services. Exhibit 3 shows the trend in the components of income and expenditure as a percentage of gross spending over a three-year period.
| EXHIBIT 3 | Income and expenditure as a percentage of gross expenditure |
Source: Joint Reviews Finance and Activity Data
Care management activity and analysis of workload
The cost of care management (social work) is a significant element of gross spending for all social service authorities and it is important for authorities to be clear about the level of care management costs and trends in workload and performance. The model allows various comparisons to be made on an on individual client group basis or for the social services function overall. Exhibit 4 shows the trend in care management performance over a three year period based on the numbers of Referrals, Assessments and Reviews undertaken per care manager (CM) in the year.
| EXHIBIT 4 |
Source: Joint Reviews Finance and Activity Data
Data was not available for the third year - the current year's estimates - because it was not known what the level of client activity would be. However, the budgets were agreed for staff, and staff were in post. The challenge of adopting the model is to translate available intelligence into an estimate for the future. Based on current or expected workloads - given the number of staff in post - authorities should set targets for future performance.
Analysis of each service for each client group:
Trend in the volume of service between sectors
For each element of care for each client group (older people's residential care in Exhibit 5 below) the model produces a trend analysis in the level of activity over the three year period - split between in-house and independent sector provided care.
| EXHIBIT 5 | Number of weeks of residential care provided for older people |
Source: Joint Reviews Finance & Activity Data
Residential Activity Weeks | 1999/2000 | 2000/1 | 2001/2 |
Total units of activity | 24,332 | 24,456 | 24,139 |
Independent sector | 13,727 | 14,276 | 13,434 |
In-house | 10,605 | 10,180 | 10,705 |
While Exhibit 5 shows a steady state in volumes of care over the thee years, this is offset in planning documents by the increase in the number of older people at the 'residential care dependency level' by a corresponding level of diversion into care at home alternatives.
Trend in gross expenditure and unit costs
For each element of care for each client group (older people's residential care in Exhibit 6) the model produces a trend analysis in the level of unit costs over the three-year period - split between in-house and independent sector provided care.
| EXHIBIT 6 | Cost per week of residential care for older people |
Source: Joint Reviews Finance & Activity Data
| Residential Unit Costs | 1999/2000 | 2000/1 | 2001/2 |
Average unit cost | 327 | 342 | 358 |
Independent sector | 259 | 243 | 279 |
In-house | 414 | 481 | 456 |
Trend in income and unit income
For each element of care for each client group (older people's residential care in Exhibit 7) the model produces a trend analysis of the level of unit income received from client's contributions over the three-year period - split between in-house and independent sector provided care.
| EXHIBIT 7 | Income per week of residential care for older people |
Source: Joint Reviews Finance and Activity Data
Improvement opportunities
Experience of applying this model at various authorities has generally concluded that finance, information and operational staff:
- Need to work more closely together
- Need to ensure that finance and activity data is available, accurate and consistent
- Need to develop ongoing monitoring of activity and finance
- Need to develop better planning/forecasting of finance and activity
- Need more co-ordinated management and ownership of information.
If used and refined the model has the potential to help authorities target their resources in line with their priorities. It can also help in benchmarking their data with other authorities who adopt the approach.