Scottish Welfare Fund Finance Briefing Session

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Scottish Welfare FundFinance Briefing Session

• Douglas Proudfoot

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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

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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

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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 28th Feb
• Genuine partnership with Scottish Government

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

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Terminology

• Programme Funding
• Admin Costs
• Set up costs
• Budget
• Virement
• Budget to date
• Profiling

• Actual spend
• Coding
• Cost centres
• Subjective codes
• Priority
• Carry forward

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Simple Financial Ledger Extract
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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

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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

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Individual Components

• Establishing a budgetary profile - DWP
  localisation data http//www.dwp.gov.uk/local-auth
  ority-staff/social-fund-reform/localisation-data/
• VAT and delivery mechanisms
• Coding of expenditure (including goods)

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Simple Financial Ledger Extract
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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.

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How might the budget for the SWF be managed?

• Fixed sum, new scheme, demand high in first
  instance? LAs 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.

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Thank-you Questions