1.1 At the Adult Social Care PRC 20 January 2006 Adult Services were projecting a forecast overspend of £4million after planned management saving actions based on data as at 31 October 2005. The budget monitoring and PRC reports identified Older Persons purchased domiciliary care, direct payments and nursing care as the core service areas responsible with a forecast gross overspend of £5.1m. The key reasons cited were:

· Continued growth in the number of nursing care placements, direct payment recipients and people in receipt of domiciliary care that were not allowed for in the budget

· Demographic changes with significant increases primarily in the over 65 year (and particularly the over 85 years) categories impacting on demand and need

1.2 Management actions were put in place to try to mitigate the impact, but the effect of this has not been significant enough to offset the overspend.

1.3 In early February 2006 when papers were sent out for 9 February Adult Services DMT the forecast, using data to 31 December 2005, had moved to indicate an overspend of £11m in the current financial year 2005/06. Subsequently the forward impact for 2006/07 was identified as being at least £20m, assuming repayment of the 2005/06 overspend.

1.4 Within Adult Services a team are working to formulate a recovery plan that will enable actions to be put in place as immediate measures to contain the position as much as possible.

1.5 A need was identified to set up a team independent of the Adult Services department to understand why the department finds itself in this position, verify any findings from the in-house teams, and to explore further measures to improve management information, systems and the ability to deliver on planned savings actions.

1.6 The independent team is also tasked with checking that eligibility criteria are being applied as rigorously as possible and to look at radical savings options.

1.7 Given the breadth of services delivered within the Adult Services department this project initiation document will identify how these actions will be planned to be met, and most importantly where work will be focussed to ensure management assurance can be given within set timelines. This is particularly important given the high profile of this work, the wide scope of the department as a whole and the finite resources available.

3 Aims and objectives

3.1 Project aims

This work will be constructed in two distinct phases.

Phase 1: to report to the Chief Executive as soon as possible in advance of 29 March Adult Social Care PRC

To establish the facts giving rise to the current budget projection and why it was not predicted with a reasonable degree of accuracy.

Phase 2: Follows on from Phase 1, timelines to be agreed

Much detail here will be derived from phase 1, but in essence it will:

Explore and report on detailed findings for specific service areas of concern within Older People and People with Learning Disabilities, and identify areas for potential improvement that will help to put Adult Services spending on a sounder financial footing in the short and medium terms.

Phase 3: to start in parallel with phase 2, timescales and resources to be agreed - Chief Executive to indicate reporting routes

Scope and plan the resources and activities required to carry out and monitor the improvement plan within Adult Services.

3.2 Project objectives

Phase 1: To validate and challenge as appropriate:

1. where the budgetary pressures have arisen from

2. the sequence of events leading up to the February 2006 budget position (as at 31 December 2005)

3. management actions taken, by whom and when, regarding the financial position

4. follow on actions required

Phase 2: To:

1. validate and challenge as appropriate the findings of the Adult Services in-house team who are currently formulating the recovery plan

2. identify and verify specific projects that need to be investigated in detail, including:

· analysis of the single assessment process, information available and used in the decision making process and application of eligibility criteria for Older Persons to assess how they are applied within the statutory constraints in order to minimise spending (working with the Service Manager, Older People, Basingstoke identified to help support this review)

· analysis of unit/comparative costs of in-house and external services so that an overview can be taken of the options for changing the balance (data to be provided by the DFU)

· examine the budget monitoring and management reporting processes

· examine the system related issues between SWIFT and SAP, linking in with the planned Internal Audit in this area

3. develop an improvement plan including allocation of resources, bringing together actions from the project work, looking at both the short and medium term

Phase 3:

1. That resources and inter-dependencies are identified, and timescales agreed that will enable each project to be complete in line with the improvement plan timeline

3.3 Links to Corporate Objectives

· Achieving economic prosperity

· Improving services

· Developing councillors and staff

3.4 Value for money

To make recommendations that recognise the balance that needs to be struck between providing an affordable service and one which operates within statutory guidelines and provides a level of service which meets users needs

4 Scope

4.1 Inclusions

Phase 1 will be limited to analysis giving rise to the current budget projection

Phase 2 will be targeted at specific areas of overspend within Adult Services, primarily within Older Persons but also physical and learning disabilities

Phase 3 will be limited to identifying resources, inter-dependencies and timescales to deliver and processes to monitor the projects identified within the improvement plan

4.2 Exclusions

Examining the whole of Adult Services in detail due to finite availability of resources and time

5 Deliverables

Phase 1

A report for the Chief Executive to review with the Executive Member prior to taking to the Adult Social Care PRC 29 March 2006, and subsequently for formal review with the Executive Member for 31 March 2006. The exact date this will be required for will need to be agreed

Phase 2

A report outlining findings and including the improvement plan. As projects are identified resources will be allocated to deliver those, along with agreed reporting timelines.

Phase 3

A high level communication scoping each project identified within the improvement plan. It will need to be agreed who will be taking each of the projects forward beyond the end of phase 2.

6 Assumptions

That Older Persons is the key area of focus as it is the largest contributor to the overspend, although People with Learning Disabilities will also be examined

Examination of the application of the eligibility criteria will provide opportunities to address the overspend

That data provided is correct

That information provided to the independent team during the process is reliable

7 Risks

A risk is a possible problem that might threaten project success and needs to be monitored.

Risk No	Summary of Risk	Probability	Impact	Importance (P x I)	Containment
1	Availability of sufficient time within the allocated team to deliver the required output to the required timeline	M	H	H	To have a clearly defined scope for the work and keep in close contact and evaluate work loads in a pragmatic way. Regular communications with the identified corporate contact, with exception reporting to the Chief Executive as necessary
2	Availability and existence of information and data to the required standards of completeness and consistency required to substantiate the work	M	M	M	Evidenced based conclusions will be drawn where possible, but otherwise this will require clarity about assumptions and statements being made
3	Availability of and co-operation by the staff within Adult Services to enable the team to come to evidenced statements	M	H	H	Secure senior management endorsement of the process and their communication with all staff involved within Adult Services and appropriate Treasurer's staff, including the Devolved Finance Unit The team will take a collaborative approach, have transparency of the brief and avoid a blame culture

8 Issues

Due to the high sensitivity and political nature of this work the team must be aware of other interested parties, including County Council members and the media

9 Acceptance criteria

The detailed approach will emerge as the process unfolds

The Chief Executive will approve key documents, provide direction and review and approve deliverables

10 Method of approach

The initial approach for phase 1 will be:

· Identifying the budget position and the detailed financial information and reporting

· Reviewing Internal audit previous recommendations that have arisen as part of the Governance Audit and planned 2006/07 internal audits

· Reviewing any relevant Treasurer's Consultancy projects

· Reviewing what has come out of the Annual Performance Assessment from CSCI

· Identifying the background and latest position on the health contribution, linking with Kevin Gardiner, Head of Legal Practice

· Reviewing and understanding the senior management perspective in both Adult Services and Treasurer's

· Mapping the sequence of events and management actions leading to the budget position in February 2006 (which is as at 31 December 2005)

· Identifying what management information was provided, the decision making process and impact on front line service delivery leading up to the budget position in February 2006

· Interviews with Rea Mattocks, Director Adult Services and Adrian Thorne, Head of Adult Services Devolved Finance Unit (with effect from 1 March 2006) as required

To produce the report for phase 1 the findings from the above analysis will be coupled with further interviews and desk top work.

The detailed approach following the above work will be mapped out in preparation for phase 2.

11 Project organisation structure

11.1 Core project team:

Executive - Peter Robertson, Chief Executive

Senior User - Rea Mattocks, Director Adult Services and John Clifton, Deputy Director Adult Services

Senior Supplier - Paul Carey-Kent, Deputy County Treasurer

Project Manager - Head of Policy Unit, Chief Executive's

Project team - Jenny Heath, Chief Executive's

Gary Smith, Chief Executive's

Sharon Harding, Internal Audit

Lynn Mead, Treasurer's Consultancy

Adult Services Advisor Rosemary Gould, Service Manager, Older Persons, Basingstoke

11.2 Other interfaces and resources:

Adult Services staff

Treasurer's staff

12 Communication plan

Reporting to the Chief Executive as soon as possible prior to 29 March in order that the information can be reviewed with the Executive Member prior to the Adult Social Care PRC on 29 March

Other reporting requirements will be on an exceptions basis, unless otherwise specified

Reporting to officers and members as determined by the Chief Executive

Briefing and communicating to staff within Adult Services regarding this process will be the responsibility of the Director of Adult Services or delegated responsible officer

13 Project resources and costs

Days will be made available across the project team as required to complete the work. This work is being treated as a priority.

13.1 Sign off to proceed

I confirm that this project initiation document describes accurately the scope of the work proposed as at the current date and ask for the project to commence.

Any changes to the scope above will be subject to change control. This project initiation document is valid for one month after issue.

No work should proceed unless the project initiation document is approved.

1^st Authorising signatory - Project Executive [Peter Robertson]
Signature.....................................	Date: ...............

2nd Authorising signatory - Senior User [Rea Mattocks or John Clifton]
Signature.....................................	Date: ...............

3rd Authorising signatory - Senior Supplier [Jon Pittam or Paul Carey-Kent]
Signature.....................................	Date: ...............

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2 Background