1. Financial Reporting

All Corporate and County Council requirements achieved. Developed systems for revenue budget monitoring to improve efficiency and timeliness of review cycle.

A risk-based approach to budget monitoring focusing on the more volatile areas of the budget has been implemented.  These areas of high financial risk are monitored on a monthly basis to enable timely management action to be implemented.

Implementation of new CareFirst IT system will bring enhancements to quality and timeliness of information. A new 2003/04 timetable linked to performance monitoring will deliver this.

New budget monitoring timetable implemented, which has reduced the delay in detailed bi-monthly reporting of actual results by 4 weeks and instituted top-level reporting of high risk areas of the budget in every month.

Financial Performance Monitoring

Established a standard management process that links financial spending to performance monitoring and improvement as stated in the Medium Term Financial Plan.

• Support managers in understanding financial reporting process.
• Review timescales and process annually.
• Develop efficiencies of new system to allow greater scope for intelligent interpretation.
• Align reporting timescales to management groups. Develop joint and integrated financial and performance reports.

2. Financial planning

To assist in the implementation of the Directorate's Strategic Spending Plan intended to manage spending within agreed budget levels.

Spending pressures continued during 2003/04, but the containment plan was achieved and spending kept under control and managed across the Social Services Directorate.

The development of a 3-year financial plan to underpin the Strategic Programme. This should be in alignment with the Comprehensive Spending Review and should integrate service and financial planning.

Developed Medium Term Financial Strategy in response to modelling the implications of the Strategic Programme and the outcomes of best value reviews.

There is a rolling 3 year Medium Term Financial Plan that informs and sits alongside service plans. This is being reviewed annually and further developed and updated as part of the planning cycle.

• Develop the service-planning framework to inform financial spending.
• Ensure that there is a culture of cost consciousness within managers of all levels.
• Ensure high quality reporting to SMG and Client Divisional management boards.
• Explicit linking of financial investment to performance improvement at all times.
• Use the Medium Term Financial Plan to develop risk based approach to financial management alongside the Directorate Risk Management Action Plan."

3. Supporting the Modernisation Agenda

Further develop approach to identify opportunities for use of Health Act flexibilities, in particular to assist in development of integration of Mental Health, Learning Disability and Intermediate Care Services.

Some applications for Health Act flexibilities have been made to secure additional funding. Strategic agreements and protocols with partners continue to finalise arrangements.

Joint Equipment Store (JES) pooled budget arrangements established and operational from 1 Dec 2003.

Develop financial reporting and monitoring processes to support implementation of new and changing policy; In particular Supporting People, Fairer Charging, Direct Payments, investments in intermediate care, strokes and falls prevention and the associated expenditure reductions in other forms of care.

Specific financial reporting and monitoring requirements will be incorporated into the standard management reporting processes:

The broader objective is to link financial spending to performance monitoring to give a broad assessment of overall Directorate performance.

Develop systems to account for funding streams associated with free nursing care, both 1 Oct 2001 and 1 Apr 2002:

Funded Nursing Care now implemented with authority making payments on behalf of PCTs and recovering income. A contractual arrangement exists for this service.

Delayed Discharge Reimbursements: Establish process to ensure new requirements are met and managers are aware of financial implications.

Joint spending plans have now been developed and agreed between Social Services, PCTs and the Acute Trusts.  These are intended to facilitate discharge from hospital and minimise the risk of "fines".

• Support and learn from current developments.
• Ensure financial control around ad-hoc implementation of modernisation issues.
• Ensure sound financial evaluation of modernisation proposals.
• Ensure financial aspects of the new policy are considered alongside the service issues.