Agenda item

The Board had before it a report by Alex Stephen (Chief Finance Officer, ACHSCP) which updated the Board on the funding delegated by Aberdeen City Council and NHS Grampian for health and social care activities in 2017-18 and advised on budget pressure facing the IJB in 2017-18 and budget savings identified by officers to close the funding gap. The report highlighted the position with regard to the Board’s reserves and future year budget projections along with budget risks and assumptions underpinning the budget and sought approval of a budget protocol to be used in future financial years for the creation and approval of the IJB budget.

The report recommended:-

That the Board –

(a)       Agree the budget savings identified in Appendix A of this report;

(b)       Agree the use of integration and change funds amounting to £2,241,000 to close the budget gap;

(c)       Agree the Bon Accord contract level for 2017-18 of £26,289,000 and budget assumptions noted in section 2.7;

(d)       Agree the 2017-18 provisional IJB budget in Appendix B;

(e)       Agree the earmarking of £2.5million of 2016-17 underspend into a risk provision and £500,000 for replacement of essential equipment;

(f)        Agree the Budget Protocol in Appendix E;

(g)       Agree the directions to Aberdeen City Council and NHS Grampian contained in Appendices F and G; and

(h)       Request that a report be brought back to the IJB on 28 March 2017 with a proposal to distribute additional funding for the Living Wage and sleepovers.

Alex Stephen spoke to the report and explained that revisions requested at the Board’s previous meeting on 31 January 2017 had been actioned. He highlighted that pressures within the prescribing budget were less than originally estimated and variances within the mainstream budget now stood at £2.241million. He noted that the Executive Team aspired to use Transformation Funding to cover budget variances on a one off basis but this would be dependent on whether the level of public sector efficiencies continued throughout future years. He added that the Executive Team was committed to recovering the £2.241million through identification of further efficiency savings where possible. 

Mr Stephen informed the Board that Aberdeen City Council and NHS Grampian had both agreed their contributions to the IJB on the basis of the Scottish Government’s Grant Settlement. He added that the report provided further detail on transformation activity that was taking place within mainstream budgets and cited work related to delayed discharges and the implementation of an integrated management structure as examples of transformation which delivered outcomes as set out within the Strategic Plan.

Thereafter there was discussion on the funding allocated to support the delivery of the Carers (Scotland) Act 2016 and Kevin Toshney (Acting Head of Strategy and Transformation, ACHSCP) advised that the Partnership’s Carers Strategy would be presented to the Board in the second half of 2017. There were additional questions on the use of transformation funding to cover variances in mainstream budgets; and resource implications for providing training and overtime to staff.

The Board resolved:-

(i)            to agree the budget savings identified in Appendix A of this report;

(ii)          to agree the use of integration and change funds amounting to £2,241,000 to close the budget gap;

(iii)         to agree the Bon Accord contract level for 2017-18 of £26,289,000 and budget assumptions noted in section 2.7;

(iv)         to agree the 2017-18 provisional IJB budget in Appendix B;

(v)          to agree the earmarking of £2.5million of 2016-17 underspend into a risk provision and £500,000 for replacement of essential equipment;

(vi)         to agree the Budget Protocol in Appendix E;

(vii)        to request that a workshop session on the Budget Protocol be added to the Developmental Timetable;

(viii)      to agree the directions to Aberdeen City Council and NHS Grampian contained in Appendices F and G;

(ix)         to request that a report be brought back to the IJB on 28 March 2017 with a proposal to distribute additional funding for the Living Wage and sleepovers; and

(x)          to thank the IJB’s parent bodies and previous members of the Transitional Leadership Group and shadow IJB for supporting the Board’s development to such an extent that an integrated budget could be agreed by consensus in such a coherent manner.