Scottish Welfare Fund Finance Briefing Session Douglas Proudfoot

What we will cover Background Financial Management Section of the National Guidance (SWFG Section 4) What is the overarching aim of what we are trying to do in financial management terms? Break down individual components Look at how the budget for the SWF might be managed

Background COSLA Leaders agreed to deliver the SWF in Feb 2012 –Concerns around financial risk –Ring fenced funding –Further assurances around funding of scheme Scottish Ministers £9.2m top up of grant funding Distribution arrangements

Background Funding letters sent out to councils end of January 3 elements of cost heading (programme, administration and set-up) Concern around administration costs SG sighted on this aspect and underscored at joint ministerial on 28 th Feb Genuine partnership with Scottish Government

You need to be speaking with your own Financial Management section within your authority.

Terminology Programme Funding Admin Costs Set up costs Budget Virement Budget to date Profiling Actual spend Coding Cost centres Subjective codes Priority Carry forward

Simple Financial Ledger Extract

Financial Management Section of Guidance Consistency and similar principles Establish and monitor 2 budget headings CCG & CG Programme funding, virement and “Scottish Welfare Fund level” Envisaged budget holders assess priority monthly (SWFG 4.6) Augmenting the fund – separate coding / analysis Carry forward – within context of own arrangements

Overarching Aim £9.2m added to fund Expected to manage funds over the course of year through regular monitoring and determining priority If there remains an issue when all controls are being taken i.e. priority is at high and remains at high but spend is exceeding budget (informing the future): –Problem with not enough resources across Scotland –Problem with distribution between authorities –Problem with applying guidance

Individual Components Establishing a budgetary profile - DWP localisation data staff/social-fund-reform/localisation-data/ staff/social-fund-reform/localisation-data/ VAT and delivery mechanisms Coding of expenditure (including goods)

Simple Financial Ledger Extract

Financial Reporting Depend on your own IT systems (SWF & Gen Ledger) Model reports provided during development work Financial monitoring info included and sent to SG along with other information.

How might the budget for the SWF be managed? Fixed sum, new scheme, demand high in first instance? – LA’s may decide to meet high priority in the first instance Assess demand pattern of actual activity against profiled budgeted spend on a monthly basis and make a monthly decision on priority of awards Decisions in principle Regular feedback on position to SG and COSLA such that any issues emerging can be addressed.

Thank-you – Questions