1. Financial Assessments

2. Overview of presentation
Income collection processes
Information for service users
Performance information
Main ‘non payment’ scenarios
Myth Busters
Social Care Worker’s role in income collection
Overview of successes from John Fisher working with us

3. Income Collection Processes
Reviewed end-to-end processes following initial ‘Bad Debtors’ meeting April 2012
FA income collection processes start from the visit – V/O:
Records details of NOK/Executor/Will information (MCA)
Encourages completion of direct debit form
Encourages DMBC Appointee nomination (permanent or temporary, eg, whilst third party applies for deputyship)
Refers third party to SAPAT for assistance with deputyship application if required
Discusses and arranges signing of DPA if appropriate
Explains importance of paying contribution and income collection procedures, and leaves a Fact Sheet on processes

4. Income Collection Processes
FA Processing Team record service user financial information on system including contribution details and, on receipt of voucher/schedule, arrange for issue of first bill
After four weeks, check carried out whether bill paid
If not paid, telephone call made to service user/person acting on their behalf (service user documented capacity assessment is vital at this point)
Question reasons for non payment
Encourage payment by debit card over the phone and setting up of direct debit instruction for future bills
Place charge on property if appropriate (Res Care after 12 weeks)

5. Income Collection Processes
Establish progress with 3rd party applications for deputyship, etc
Solicitors details if applicable
Proof of application
Refer to SAPAT for support if required
Agree timescales for application outcome and date payment can be expected – confirmed in writing
Refer to FA VO in first instance, or Social Care Worker (if particularly sensitive case, family dynamics, or possible safeguarding issues)
Liaise with SAPAT if Corporate Appointee/nomination of Corporate Bank Account procedures applied
Individual Debtor Action Plan created with agreed actions and timescales 5

6. Non Standard Income Collection Processes
OPG Register searches
Report concerns about mismanagement of finances by LPA/Deputy to OPG
For deceased service users: Will checks/checks for Letters of Administration/Probate searches
Referrals to Legal Services
Referrals to debt collection agencies (via Debtors Team)
Referrals for Safeguarding action, BID, possible Corporate Deputyship application
(This is ‘last resort’ action for Financial Assessments)

7. Information for service users
Financial Assessment forms – revised 2011 based on Counsel’s opinion obtained by Leicestershire CC
More information gathered about third party arrangements
Separate declaration for financial representative
Fairer Charging Policy on website
Various Fact Sheets including ‘‘Paying your Social Care Charges’ 7

8. Information for service users
Fact Sheet ‘Paying your Social Care Charges’
“By law, we can ask people that receive adult social care services to contribute to the cost of the services they receive”
Outlines various methods of payment but encourages DD
Encourages early contact with FA if having difficulties paying
Explains what happens if they do not pay: Legal action; Debt Collection Agency, etc and:
“Asking the Council’s Adult Services Department to investigate whether someone is spending your money inappropriately and not acting in your best interests. This is called financial abuse. The Council may also contact the Police in serious financial abuse cases.”

9. Performance Information
Financial year 2012/2013:
Total social care debt raised £17,519,062
Debt b/f from previous years £ 3,343,627
Income collected £18,160,239
In-year collection rate 87%
Write-offs £ ,151
Total debt o/s at year end £ *2,732,320
*£1,076,683 secured on properties

10. Main non payment scenarios
Capacitated service users who want to pay but need assistance
Visit from FA VO; liaison with Social Care Worker; referral to SAPAT for assistance/mentoring with money management
Capacitated service users who refuse to pay their assessed contribution
Visit from FA VO; liaison with Social Care Worker; referral to debt collection agency; referral to Legal services
Service users without capacity with no third party willing or able to assist
Application for Corporate Appointeeship; referral to SAPAT to consider assistance for third party/application for Deputyship

11. Main non payment scenarios
Service users without capacity with an appointee/Deputy but the service user’s contribution is not being paid
Visit from FAVO; referral to OPG; referral to Debt Collection Agency; Safeguarding alert; Referral to Legal Services
Service users without capacity with an ‘unofficial attorney’ who is accessing the service user’s income but not paying their contribution
As above but Safeguarding alert more likely
Service user dies and no one willing/able to apply for Probate/administer the estate
Referral to Legal Services to apply to courts to appoint a personal representative; apply for Letters of Administration

12. Main non payment scenarios
Service user dies leaving a Will but Executor refuses to pay outstanding charges
Referral to Legal Services for action against the Executor
Issues currently being progressed with Legal Services:
Use of attachments to private/occupational pensions
Use of ‘Legal’ correspondence
Increased action against ‘failing’ Executors – replaced by the Council, eg. to effect sale of a property
Council taking on Executor role where there is no existing Executor
More use of third party debt orders

13. Myth Busters! “FA should follow ‘normal’ debt recovery process”
There isn’t a ‘norm’!
Collecting Social Care charges only benefits the Council
Benefits all service users, the more income we collect, the more services we can provide
DMBC’s policy is to take a soft approach to income collection
FC Policy “The policy supports the view that a process of proactive income collection should be an integral part of the charging policy.”
FA can just get DWP to recover charges from benefit income
DWP rarely agree to this if there is AN Other 3rd party or the only issue is unpaid care charges

14. Myth Busters! A charge on a property secures the debt
If service user does not have capacity, there must be a third party with legal powers to sell or enter into DPA
Relatives refusing to apply for legal powers
Relatives moving into property
Relatives letting the property to tenants
Debt is only secured up to the point of sale
Legal Services exploring more use of forced sales
Wakefield is local demonstration project

15. Social Care Worker’s role
At the time care needs are being assessed:
Establish and record service user financial capacity
For service users without capacity, establish and record whether there is a third party with legal powers, what powers they have, and copy any legal documents
Discuss money management arrangements with third parties
For service users without capacity and no third party arrangements in place, carry out BID to determine who should apply for legal powers

16. Assessing capacity
Charging for Residential Accommodation Guidance (CRAG) update June 2013: Residents and Enduring Power of Attorney, Lasting Power of Attorney or Property and Affairs Deputyship etc In all cases, the LA should find out if a resident has any of the following: • Enduring Power of Attorney (EPA); • Lasting Power of Attorney (LPA) for Property and Affairs; • Property and Affairs Deputyship under the Court of Protection; or • any other dealings with the resident’s affairs (e.g. someone who has been given appointee-ship by the Department for Work and Pensions (DWP) for the purpose of Benefit payments).

17. Assessing capacity
CRAG update July 2013: Social work staff should establish at the time of the assessment of care needs whether a resident has the capacity to consent to the care plan and any following financial assessment. If a resident appears to lack the capacity to consent to their financial information being given to the LA, while all practicable steps have been taken to help the resident, the LA should make enquiries as to whether there is a registered EPA, or registered LPA for Property and Affairs, or a Property and Affairs Deputy to manage the person’s financial affairs, or an Appointee by the Secretary of State for Work and Pensions to manage the person’s benefits.

18. Social Care Worker’s role
Where care already started and safeguarding alert made:
Re-assess capacity if appropriate and carry out BID
At review:
Check with FA if social care charges are being paid
At transition for LD clients:
Discuss with parents/guardians money management arrangements once the LD client becomes entitled to benefits in their own right
Carry out specific MCA/BID if appropriate
In all cases:
Issue voucher/schedule as soon as care starts

19. John Fisher’s work Outcome from ‘Bad Debtors’ working group
John started working with FA September 2012
Dealt with 46 cases and collected over £162k
John’s successes include:
Assisting service user in Resi care to sell her property and pay her care charges plus improve her quality of life.
Assisting service user to transfer savings in several different banks so they were more manageable and set up direct debit.
Dealing with service users’ sons who were joint Attorneys and had been using their mothers money to keep a business afloat. John’s intervention resulted in payment of outstanding charges and one son being removed as Attorney.