Budget Equity

The Department is committed to the principle that services should not be dependent on where an individual lives.

To assist in achieving this, over the last five years the Department's traditional budget allocation has been reviewed and steps taken to allocate on a more equitable basis.

Derbyshire use the Government's Formula Spending Share, (FSS) (formally known as Standard Spending Assessment) for the basis of equity.

The FSS takes account of factors that will impact on social services delivery (such as deprivation factors, age groups, sparsity) and is split into Children's, Older People and Other Adults . Derbyshire's total FSS for Social Services is built up from the eight district and borough council's data collected via the Census (subject to Government update year on year). This allows them to split the FSS into district area and arrive at what percentage of resources should be allocated to that district by client group.

The council can therefore arrive at what percentage of the overall budget should be allocated in each management area and then compare to actual budgets allocated to that area.

Finance and activity management information systems

Robust finance and activity data is needed in Social Services to make decisions about the care that will be delivered to meet the assessed needs of individuals as well as planning for care that should be commissioned to meet future needs. However, using a mixture of manual and computerised systems, many authorities struggle to provide reliable finance and activity data. Further, the opportunity of computerised business process management is generally not realised in Social Services.

Hertfordshire have a clear focus on developing electronic business processes and information systems to support the delivery of social services while providing finance and activity information for managers both for current budget management and planning future service commissioning. Electronic information is recorded from the care manager interface (tailoring individual packages of care) through to generating and using aggregate financial and management information about the range of care being provided across the County.

A core element of the new information system is a comprehensive electronic commissioning system:

• This allows frontline staff to pick from a full list of contracted suppliers and tailor a care package to meet an individuals needs. The process involves selecting care elements from a menu (schedule of rates) with known prices, so each care package is 'costed' as it is assembled. Depending on the nature and cost of individual care packages the system provides for delegated approval at the appropriate managerial level.
  
• Once approved, the system automatically produces the relevant commissioning documentation while simultaneously recording the financial information associated with each care package.
  
• This recorded information is then viewable at the individual client, care team and total budget levels and analysable in terms of all the component funding contributing to it.
  
• The system also provides supplier invoice reconciliation and integration into the general ledger and also integrated financial assessments for clients leading to associated invoicing.

Enabling the recording and management of the care process and placing service commissioning with associated financial information lies at the heart of this system. It provides accurate and timely information on demand and supply, and on associated budgetary implications (and at many levels of detail). Budgetary considerations have become transparent and a responsibility of staff at all levels of the organisation.

The technological platform upon which the system is built will facilitate continued and increasing opportunity for electronic business-to-business links through the supply chain into the future. It also provides the opportunity to develop web-based self-service solutions both for clients, carers and partner agencies in relation to service commissioning, service quality monitoring, and charging.

The system is being further developed to support Single Assessment. It has the potential for Health partners to access the system and to package care and commit resources in accordance with delegated approval from the County. The County will retain overall control and have routine information available to monitor the delegated spending.

Further enhancements to the system are planned. For example, the system has the potential to categorise need over Single Assessment domains and it can also record desired outcomes and the services being put in place to meet them. By analysing aggregate information it should be possible to tailor future commissioning decisions so that the services proved to meet desired outcomes are the ones that get selected.

Medium-term financial strategy

Stockport is one of the ten Greater Manchester councils and covers an area of 48 square miles. The IPFA comparator group is Bath and North East Somerset, Bolton, Bury, Calderdale, Darlington, Dudley, Kirklees, Solihull, South Gloucestershire, Tameside, Trafford, Wakefield, Walsall, Warrington and York. The Census population figure in 2001 was 284,544, of which 22% are aged 60 and over.

Stockport Metropolitan Borough council has completed detailed work on planning their budget to meet current and future demand. This work includes:

• Background information on the budget for Stockport Social Services with respect to Standard Spending Assessment and an outline of their increased reliance on specific grants
  
• A breakdown of the range of grants that are now integral to Social Services and the current allocation for this financial year
  
• An outline of the wider budget pressures impacting on the service
  
• Sections on each service user group in detail
  
• A brief outline of staffing numbers
  
• Summary and conclusion.

In preparing this strategy use has been made of a range of data sources, primarily:

• Performance Assessment Framework (PAF) data from the last four years
  
• PSS (Personal Social Services) (EX1) returns, with particular reference to the 2001/2 returns as this is the last available set of returns thatallow cross-authority reference and benchmarking
  
• HH1 returns which record one week's home care activity in a sample week in September
  
• Key Statistical Data which links certain activity and financial data
  
• RAP (Referrals, Assessments, Packages of Care) returns which measure activity around the assessment and care management processes in adult services
  
• Population data where available, especially with respect to children and older people where some work around commissioning strategies has already been undertaken
  
• Children in Need Audit (CiN): a similar exercise to the HH1 exercise completed in adult services, this exercise measures all activity with respect to children in need undertaken in a sample week.

On occasions the data is cross-referenced, analysed and general conclusions drawn. Where this is undertaken the rationale and reasoning behind any assumptions made is outlined, as it is important to recognise that the purpose of this strategy is to identify overall trends and patterns of budgets and expenditure with respect to social services in Stockport, not to 'drill down' into the budget areas to the tightest of detail. Data from some sources is difficult to relate to others when, for example, one set includes on-costs for services, where other data may not. Equally, work undertaken on a modest scale within Social Services over the last year, looking at a number of problematic indicators, has demonstrated the extent to which variation exists between authorities in how they collect and report information on activity and expenditure. Given the pressures on the social services budget, however, these caveats needed to be borne in mind but were not seen as sufficient reason to prevent work on and the production of a medium-term financial strategy.

When comparisons have been made with other authorities, it was considered most appropriate to use the group of comparator authorities identified by the Department of Health and the Audit Commission as our 'family group'.

A final point is that this strategy is not a complete one, but is rather the first phase of a wider process. In that sense recommendations and action plans are not included, as this document is intended as a basis for discussion within each of the service areas regarding future direction, and it is in those forums that the strategic objectives and related action plans can be constructed.

While this is intentionally a very inward-looking document seeking to reach conclusions about their budgets and how fit for purpose they are in meeting the social care needs of Stockport, there are also of course positives to be gained in sharing some of the information with key partners, especially other services of the Local Authority and with the PCT and NHS Trust.

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Social Services Assessment & Income Teams

Stockport is one of the ten Greater Manchester councils and covers an area of 48 square miles. The IPFA comparator group is Bath and North East Somerset, Bolton, Bury, Calderdale, Darlington, Dudley, Kirklees, Solihull, South Gloucestershire, Tameside, Trafford, Wakefield, Walsall, Warrington and York. The Census population figure in 2001 was 284,544, of which 22% are aged 60 and over.

Good Practice

Approximately 2,100 adults receive a chargeable non-residential service. Chargeable services include home care, day care, transport & community meals. The Social Services Assessment & Income Sections are responsible for completing charges assessments of service users' ability to pay towards the cost of residential and non-residential services, and to arrange for the collection of income.

Following a review of the council's Non-Residential Charging Policy in 1996, which ensured that charges passed the 'reasonable' test required by law and that income from non-residential services was increased to be more in line with central government expectations, the Assessment & Income Sections were developed to have the necessary systems and procedures in place. These arrangements have been developed since, so that the sections provide more than just a charges assessment and invoicing function, and link in with other corporate policies such as the council Plan and Anti-poverty Strategy.

• The Assessment & Income Sections provide a comprehensive support service to customers which includes telephone helplines, home visits, Social Security benefits checks and assistance with form completion as well as general advice.
  
• Charging leaflets are published which have achieved the Plain English Campaign 'Crystal Mark' for clarity. These can be downloaded: Paying for residential and nursing home care if you own property, Paying for residential and nursing home care and Paying for services provided in the community
• Customer comment forms are in operation to obtain feedback about service.
  
• Close working arrangements with the local Social Security agencies are well established, including links with the Pensions Service.
  
• Benefits advice training and support is provided via posts funded by Social Services within the council's Welfare Rights Unit, which includes a post dedicated to providing benefits advice and take up for non-residential service users. This ensures maximisation of service users' incomes and also charging income to the Council.
  
• Membership of the National Association of Financial Assessment Officers (NAFAO) is long established and via membership of the NAFAO Training Group the Team has direct input into the Association's good practice guides.

Income collection and debt recovery arrangements take account of the vulnerable nature of service users.

Benefits

Targets laid down in the Assessment & Income Section Business Plan were achieved as follows:

• 75% of all charges assessments were completed, benefit checked and service user sent written confirmation of charge within six weeks of notification to the Section.
  
• 75% of all requests for help in completing assessment forms were undertaken within ten working days.
  
• 95% of all requests for visits were completed within ten working days.
  
• 15% reduction in total debt.

Customer Feedback shows that 90% of service users consulted felt that the service provided by the Sections was good or very good.

Systems and procedures have been continually developed and consequently very few changes were required in order to implement the 'Fairer Charging' guidance in 2002/3 in relation to charges for non-residential services.

A recent Social Services Inspectorate report on care services for older people in Stockport praised the work of Assessment Officers in relation to information and advice on charges and financial issues.

Contact Steve Taylor, Assessment & Income Manager, 0161 474 4630, steve.taylor@stockport.gov.uk.

Implementation of the 'Fairer Charging' guidance for home care and other non-residential social services

Stockport is one of the ten Greater Manchester councils and covers an area of 48 square miles. The IPF comparator group is Bath and North East Somerset, Bolton, Bury, Calderdale, Darlington, Dudley, Kirklees, Solihull, South Gloucestershire, Tameside, Trafford, Wakefield, Walsall, Warrington and York. The Census population figure in 2001 was 284,544, of which 22% are aged 60 and over.

Good Practice

Approximately 2,100 adults receive a chargeable non-residential service. Chargeable services include home care, daycare, transport and community meals.

In November 2001, the Department of Health issued new guidance designed to ensure that charges for non-residential social services were reasonable and fair and that there is greater consistency between councils. The guidance was to be implemented in two phases to be completed by 31 March 2003.

Review of the existing charging policy and implementation of the Fairer Charging guidance was undertaken in line with tested project management principles. This involved appointing a project sponsor to be the link between the project team and senior management and a project manager whose role was to ensure that the review achieved its objectives and to draw up a project plan. A project plan was drawn up which outlined critical dates for achieving overall objectives and a number of subgroups were established to review specific areas such as charging and invoicing, benefits advice issues, information management, the consultation process and unit costing. A steering group was also set up to assess the progress of the review and act upon the findings and recommendations of the subgroups. The whole process culminated in a report to the Department's Senior Management Team and subsequently the council's Executive with proposals for a revised charging policy, which was accepted.

Benefits

The project management approach ensured that the 'Fairer Charging' guidance was implemented on time in accordance with the timescale requirements within the Guidance.

It also afforded an opportunity to:

• Review the existing charging policy, introduced in 1996
  
• Highlight areas of good practice and to standardise them wherever possible
  
• Ensure that the charging policy was understood and accepted by internal staff and external agencies
  
• Consult with service users, providers and external agencies in drawing up proposals for a revised charging policy
  
• Maintain income levels while ensuring that no service user's income was reduced below a minimum level due to charging, in accordance with the new guidance.

The main requirements of the Fairer Charging guidance are:

• Charges for different types of service should be considered together and not in isolation.
  
• Flat rate charges should only be applied in limited circumstances.
  
• Charges should not reduce users' net incomes below certain minimum levels.
  
• councils should consider and consult on the need to set a maximum charge.
  
• Disability-related expenditure should be assessed where income from disability benefits is taken into account in the charges assessment.
• Benefits advice should be an integral part of the charges assessment process.
  
• Savings limits used in assessments should as a minimum be the same as for residential care.
  
• councils should monitor the impact of charging policies on service users.

Stockport's current charging policy fully complies with the Fairer Charging guidance and, as many of the new requirements were already within the previous charging policy, relatively few changes were required.

For a copy of the proposals for a revised charging policy that were approved by the council's Executive click here

Contact Steve Taylor, Assessment & Income Manager, 0161 474 4630, steve.taylor@stockport.gov.uk.

Linking budgets to service priorities

Lincolnshire's Institute for Public Finance comparator group is Cornwall, Cumbria, Derbyshire, Devon, Gloucestershire, Norfolk, North Yorkshire, Northumberland, Nottinghamshire, Shropshire, Somerset, Suffolk, Warwickshire, Wiltshire, and Worcestershire.

Lincolnshire is a large, mainly rural, county with a widely dispersed population.

Linking budgets to service priorities

In Lincolnshire, the Council's corporate budget process demands that service directorates explicitly link spending proposals to CPA/PAF/other statutory measures of performance through the use of a standard proforma.

This includes the following key questions

• Is this identified as a high priority in the Council's performance and budget strategy?
  
• Is this budget addition likely to improve the Council's CPA score?
  
• Will it contribute directly to the achievement of PSA targets?
  
• Is this a specific, new statutory requirement?
  
• Is it a direct result of external factors e.g. loss of specific grant?
  
• Would the additional cost be incurred if there was no addition to the budget?
  
• How does this contribute to delivering the key service targets in the Performance Plan

Click here for full PDF version

Contact: Martin Jones, Financial Strategy Advisor, martin.jones@lincolnshire.gov.uk

Clarifying roles in financial management

Lincolnshire's Institute for Public Finance comparator group is Cornwall, Cumbria, Derbyshire, Devon, Gloucestershire, Norfolk, North Yorkshire, Northumberland, Nottinghamshire, Shropshire, Somerset, Suffolk, Warwickshire, Wiltshire, and Worcestershire.

Lincolnshire is a large, mainly rural, county with a widely dispersed population..

At the end of each accounting period, summary financial data is downloaded by Accountancy Services to a reporting database. The database's many tables provide the means for a range of management reports to be produced, tailored according the level of detail required and the position of the recipient in the Social Services Directorate. Reports range from detailed cost centre reports for individual budget holders to high level summary reports that are considered by the management team. All reports provide comparison of actual spend and commitments against budget.

The County Council's minimum standard is that all budget holders should input projections of outturn against each budget to the Council's ledger on a monthly basis. In Social Services, this is difficult to coordinate in order that monthly management reporting remains accurate and complete. (There are approximately eighty budget holders with different levels of responsibility within the Directorate's Financial Scheme of Delegation and over 8,000 individual budget lines.)

There are eight Resource Managers who provide localised financial support to operational managers / budget holders across the Social Services Directorate. Each month, the reporting database creates eight files corresponding with the service areas supported by Resource Managers. These reports are downloaded automatically to spreadsheet templates that are emailed to Resource Managers. The projections files that are created in this way contain a maximum of three projections lines for each cost centre: aggregate totals for each of employees costs, running expenses and income.

Resource managers are given two weeks to update projections that were entered in the previous months in the template spreadsheets and these are returned to the Accountancy Team. Although Resource Managers are responsible for ensuring that projections are completed to timescale, responsibility for the accuracy of projections lies with budget holders. The Accountancy Team coordinate this monthly activity and then upload projections to the Council's ledger using a batch load routine.

Through this process, each month's management reports that are produced also include projections of outturn made locally against budget across the Directorate's gross budget which stands in excess of £200 million. The same projections data is reported to individual budget holders, local management teams, the Directorate's Management Team and the Council's Executive.

This system of reporting provides all tiers of management with the financial information that is required to identify significant variances to plan and take remedial action as appropriate. The issue of local projections not matching those made by accountants is removed.

Future Improvements

Through improved training and better access to IT, it is hoped that individual budget holders will become empowered to input their own projections of spend against budget directly the Council's ledger.

Local forecasts of outturn are input to the ledger each month and available for analysis alongside budget and actual spend to date. This shifts the onus away from the Head of Finance explaining forecasts to DMT to that of a supportive and advisory role, ie budget responsibility and reporting is better aligned to operational management responsibilities.

Click here for scheme of delegation

Contact: Martin Jones, Financial Strategy Advisor, martin.jones@lincolnshire.gov.uk

A 'Co-Financing Organisation' for European Social Funding

Wiltshire County council (WCC) has a total population 431,000, with an estimated 11,200 disabled people claiming disability benefits of which 5,600 are in employment. In addition, there is an estimated 1,800 disabled people who want to work.

The initiative to become a 'Co-Financing Organisation' (CFO) was a response to the implementation of the Joint Investment Plan (JIP) - 'Welfare to Work'.

WCC has now become a CFO, which means that it has been given the status of being a 'broker' for European Social Funding. This was a new development for the County council and part of a wider corporate strategy to draw in external funding to support service delivery.

This represented a change in the system for accrediting CFOs in that local authorities have not previously achieved that status. WCC is one of very few local authorities which have applied for and received this status. The invitation to apply came from the Government Office of the South West, which administers European Social Funding (ESF) for the region. Previously most ESF was channelled through the Learning and Skills councils or voluntary organisations were able to apply direct. Now 80% of ESF is to be channelled through CFOs which was seen as a window of opportunity for the council. The opportunity for local authorities to apply to become CFOs has closed for the moment.

WCC will use its status of CFO to draw in approximately £3.5 million of ESF funding between 2003 and 2006, to help disabled people and carers move towards and into employment. WCC as a single organisation applies for the funding and distributes it to provider services, through a process of competitive bidding, to deliver a range of new initiatives which are outlined in the Co-Financing Plan. This was drawn up following consultations with all the relevant stakeholders. Outputs and outcomes required by ESF are then monitored by WCC.

The benefits from this arrangement are that WCC, as a single recipient of ESF, will be able to draw larger amounts of ESF than was likely through individual voluntary organisations applying direct. The system facilitates a cohesive strategy on employment for disabled people and carers, assisted by ESF, which will deliver on targets for employment required for all the key national policy drivers: the 'Valuing People' White Paper, the National Service Framework for Mental Health and the NHS Plan, as well as the JIP 'Welfare to Work'. There are also efficiency gains and savings through one organisation acting as 'broker' for the funding. It is expected that up to 2,000 disabled people and carers will be helped towards or into employment over the next four years.