Money makes my world go round
Gina Hagan SOL
Frances Brown Inclusion Glasgow
Sam smith C-Change
•
Began in 1996
• Supported Living
• Partnership
•Individualised
Services
•Control 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
•Recruit staff around the person
•Contract staff to the person
•Decision making beside people
and families
•Annual budgeter to plan spend
•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
Growth
270
80
0
2
1998
133.796
2010
5.2 million
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.
Before Individual
Budgets
Local Authority
Funding
Support Staff
Wages
Directors
Admin / Finance
Development
Managers
Wages
Training and
Development
SOL
Surplus /
Deficit
+
All other
overheads
SOL
RESERVES
-
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
Friendships
1
Personal care
2
Risks
3
4
5
Budgeting
Community
Current Individual
Budgets
Local Authority income
Income allocated to
specific income
Costs associated
specific budgets
Local authority funding
Level 1-5
Unrestricted funds
Restricted Funds
ISF 76
Departments
Support costs
•Wages
•Mobiles
•Travel
Restricted
Surplus
Training Fund
2.2%
Training and
Consultancy
costs
Contingency
Fund
1%
Unforeseen/
additional costs
Central Fund
12.5%
All other overheads
and
management
costs
Organisational
Surplus or deficit
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 InControl 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
INDIVIDUAL BUDGETS – THE
PROCESS EXPLAINED …….
This is Mary who is supported by Support for
Ordinary Living or (SOL)
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.
40,000.00
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
35,000.00
30,000.00
25,000.00
20,000.00
B udget t o Dat e
15 , 0 0 0 . 0 0
10 , 0 0 0 . 0 0
A ct ual t o Dat e
5,000.00
0.00
S uppor t S t af f
Wages
CONTINUED …….
S ick Leave
M obiles
INDIVIDUAL BUDGETS – THE
PROCESS EXPLAINED …….
If managers need more information about Mary’s
costs they will speak to Dianne the ISF Coordinator.
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.