Money makes my world go round Gina Hagan SOL Frances Brown Inclusion Glasgow Sam smith C-Change

Began in 1996 Began in 1996 Supported Living Supported Living Partnership Partnership Individualised Services Individualised Services Control over money 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 StructuresFlat Management Structures Recruit staff around the personRecruit staff around the person Contract staff to the personContract staff to the person Decision making beside peopleDecision making beside people and families Annual budgeter to plan spendAnnual budgeter to plan spend Quarterly feedback on budgetQuarterly 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 discussions1997 incorporationFebruary1998 contract awardedMay1998 in businessJuly 1998 providing servicesJanuary1999

0 80 Growth £133,796 £5.2 million 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.

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 1 st April From 1 st 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 care Risks Friendships Community Budgeting

Local authority funding Level 1-5 Central Fund 12.5% Contingency Fund 1% Training Fund 2.2% ISF 76 Departments Restricted Surplus Organisational Surplus 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

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 31 st 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