Money makes my world go round

Gina Hagan SOLFrances Brown Inclusion Glasgow

Sam smith C-Change

• Began in 1996Began in 1996

• Supported LivingSupported Living

• PartnershipPartnership

•Individualised Individualised ServicesServices

•Control over moneyControl over money

Mirror direct payments

£38K X first 20 people

£42K X next 10 people

Start Up £12 K

Non Recurring £10 K

Making it work for same as group costs

•Flat Management Structures Flat Management Structures

•Recruit staff around the personRecruit staff around the person

•Contract staff to the personContract staff to the person

•Decision making beside people Decision making beside people and familiesand families

•Annual budgeter to plan spendAnnual budgeter to plan spend

•Quarterly feedback on budget Quarterly feedback on budget

H – career, education and politics

C- Career, community and moving on

Support for Ordinary Living

Individual Budgets

the story so far

Citizenship for all

The History of SOL

foundation discussions 1997

incorporation February 1998

contract awarded May 1998

in business July 1998

providing services January 1999

0

80

Growth

1998 2010

133.796 5.2 million

270

2

Before Individual Budgets• From July 1998 until December 2005 all of

SOL’s income was collated together and used to pay all of the direct support costs and overheads as they arose.

• Our income consisted of support cost income and an element of core income from the local authority.

• This culminated in one total surplus or deficit for the organisation as a whole.

• There was no way for us to distinguish whether a particular service was in a surplus or deficit situation.

Local Authority Funding

Support Staff Wages

Managers Wages

Directors Admin / Finance

Development

Training and Development

All other overheads

SOL Surplus /

Deficit SOL RESERVES

Before Individual Budgets

+ -

Introduction of Individual

Budgets• From January 2006 to March 2006 we put

into place a pilot for individual budgets.• This was for two teams for each manager

in the organisation.• This allowed us to get managers ready

and to highlight any problem areas before the implementation date of 1st April 2006.

• From 1st April 2006 we implemented our new individual budget system.

Introduction of Individual

Budgets• In our new system, each service user had a

department where all income and direct support costs are posted to. (We have 90 live budgets running).

• A percentage of our total income was set aside to cover core costs, management costs, training costs and a contingency fund for any unseen emergencies.

• The percentage attributed to core costs was added to our core income from the local authority to cover these overheads.

Current Individual Budgets

• We entered into lengthy discussions during 2007 with North Lanarkshire Council to try and create a sound financial framework that would enable us to meet our target growth to 80 services.

• This has resulted in 5 bands of income which each of our service users will be allocated to and the elimination of core income payments.

Employment

Personal careRisks

Friendships

Community

Budgeting

1

2

3

4

5

Local authority fundingLevel 1-5

Central Fund12.5%

Contingency Fund

1%

Training Fund2.2%

ISF 76Departments

RestrictedSurplus

OrganisationalSurplus or deficit

All other overheads and

management costs

Training and Consultancy

costs

Unforeseen/additional costs

Support costs•Wages•Mobiles•Travel

Local Authority income

Income allocated to specific income

Costs associated specific budgets

Unrestricted funds

Restricted Funds

Current Individual Budgets

Current Individual Budgets

• Our managers are charged with the task of ensuring the costs do not go over budget.

• Our finance department then allocates sufficient income to ensure each department remains at least in break even or in surplus.

• The balance of income is be distributed to cover all central costs, training costs and 1% is kept for contingency purposes.

• We will now be starting to provide qualitative as well as quantitative information to managers within their reports.

Conclusions

• At 31st March 2009 we have been using our individual budget system for three years

• A Resource Allocation System (RAS) exercise has been carried out with North Lanarkshire Council. The outcome of this exercise will be used to inform our future funding

• With the preparation work and three years of live data, SOL is now well prepared and will be taking on In-Control work from the Council, individuals & families

• Our experience to date is now allowing us to look at more qualitative aspects to the individual budget

reporting through the use of variance reports

Each month Dianne will collect all the costs for Marys care. These costs are Direct Support (or staff

wages) Annual Leave, Sick Leave, Travel Expenses, Staff Expenses, Holiday Expenses. She

will get this information from Joyce who works in payroll and Lee our Accounts Assistant.

Her next step would be to take all the information about Marys service and enter it onto a spreadsheet

on my computer.

When she has finished Marys spreadsheet she will then make a graph of this information to make it

more accessible. Dianne will email it to SOL Support Managers and Practice Development Managers

0. 00

5, 000. 00

10, 000. 00

15, 000. 00

20, 000. 00

25, 000. 00

30, 000. 00

35, 000. 00

40, 000. 00

Support Staff

Wages

Sick Leave Mobiles

Budget to Date

Actual to Date

This is Mary who is supported by Support for Ordinary Living or (SOL)

INDIVIDUAL BUDGETS – THE PROCESS EXPLAINED …….

CONTINUED …….

AND FINALLY …...

A demonstration project is underway here at SOL to make this process and all financial inforamtion more

accessible for the men and women we support.

If managers need more information about Mary’s costs they will speak to Dianne the ISF Co-

ordinator.

INDIVIDUAL BUDGETS – THE PROCESS EXPLAINED …….