How can we help you...

Issue - meetings

Medium Term Financial Framework (MTFF) - HSCP.21.025

Meeting: 23/03/2021 - Integration Joint Board (Item 11)

11 Medium Term Financial Framework (MTFF) - HSCP.21.025 pdf icon PDF 480 KB

Additional documents:

Decision:

(i)            to note the anticipated financial out-turn for 2020/21 and the impact on the Reserves position of the IJB;

(ii)          to note the financial allocations proposed to be allocated by the partner organisations;

(iii)         to approve the 2021/22 budget and the Aberdeen City IJB Medium Term Financial Framework included as appendix 1 of this report;

(iv)         to note the intention to earmark £2.5 million in a risk fund at the end of the financial year;

(v)          to approve the Bon Accord Contract level for 2021/22 of £30,304,000 and budget assumptions noted in sections 3.17 and 3.18;

(vi)         to instruct the Chief Finance Officer to uplift the direct payments for clients with a staffing element included in their payment by 2.2% from the 1 May 2021 to cover the increase in the Scottish Living Wage;

(vii)        to instruct the Chief Finance Officer to negotiate uplifts for those Social Care providers not covered by the National Care Home contract;

(viii)       to instruct the Chief Finance officer to apply a higher uplift should a higher national inflationary rate be agreed for direct payments and contracts not covered by the National Care Home Contract, on the proviso that additional funding is provided to cover any shortfall; and

(ix)         to make the budget directions contained in appendix 2 of this report and instruct the Chief Finance Officer to issue these directions to the constituent authorities.

Minutes:

The Board had before it the report from the Chief Finance Officer, ACHSCP which presented the Medium-Term Financial Framework (MTFF), developed after the final levels of funding delegated by Aberdeen City Council and NHS Grampian for health and social care activities in 2021/22 had been approved.

 

Members were reminded of previous MTFF report formats and to a recent workshop on the topic.

 

Members heard that regular financial information had been presented to the IJB  throughout the financial year, and additional costs associated with the continuing pandemic had been closely tracked and covered in the budgets. The financial implications of these additional costs were being covered by additional funding obtained from Scottish Government through the Local Mobilisation Plan, who to date, had delivered on this promised funding.

 

Members were advised that whilst the CFO had a better understanding of the costs, it remained unclear which of these costs would be recurrent and what could be done to manage them within any future system. As the social care system is in a transitional state and shifts between potentially two models and that some of that shift reflected the priorities of the IJB.

 

Members heard that whilst there remained a predicted deficit of between £5-£6 million annually within the forecasted 5-year plan, there remained some uncertainty and thus a risk around future funding levels.

 

The report recommended :-

that the Board -

a)            note the anticipated financial out-turn for 2020/21 and the impact on the Reserves position of the IJB;

b)            note the financial allocations proposed to be allocated by the partner organisations;

c)            approve the 2021/22 budget and the Aberdeen City IJB Medium Term Financial Framework included as appendix 1 of this report;

d)            note the intention to earmark £2.5 million in a risk fund at the end of the financial year;

e)            approve the Bon Accord Contract level for 2021/22 of £30,304,000 and budget assumptions noted in sections 3.17 and 3.18;

f)             instruct the Chief Finance Officer to uplift the direct payments for clients with a staffing element included in their payment by 2.2% from 1 May 2021 to cover the increase in the Scottish Living Wage;

g)            instruct the Chief Finance Officer to negotiate uplifts for those Social Care providers not covered by the National Care Home contract;

h)            instruct the Chief Finance Officer to apply a higher uplift should a higher national inflationary rate be agreed for direct payments and contracts not covered by the National Care Home Contract, on the proviso that additional funding is provided to cover any shortfall; and

i)             make the budget directions contained in appendix 2 of this report and instruct the Chief Finance Officer to issue these directions to the constituent authorities.

 

The Board resolved :-

to approve the recommendations.