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11 July 2007: Trustees MeetingMinutes of the meeting of the Trustees of the Independent Living (Extension) Fund and the Independent Living (1993) Fund held on Wednesday, 11 July 2007. The meeting commenced at 10.30 am
Present: Stephen Jack (Chairman)
In attendance: Yogi Amin
None.
1.1 Declaration of possible Conflicts of Interest or Loyalty Nick Danagher declared a possible conflict of interest concerning the Extension Fund issues in paper 963 under Strategic Financial Planning 08/09. 2 Minutes of the meeting held 13 June 2007
The minutes of the last meeting held on 13 June 2007 were accepted 3 Matters Arising 3.1 Equality Statement A copy of an amended equality statement was circulated to Trustees. Trustees approved the statement. 3.2 Training The Chairman said that he was still working in conjunction with the Chief Executive on priority training needs and would present proposals at the next meeting. 3.3 Telephone Conference Calls The record of the decisions made during the telephone conference calls on 17 and 22 May outside of Trustees’ meetings, were circulated to all Trustees. 3.4 Equinox Lease The Chief Executive said that there had been further complications to the lease discussions as DWP Estates no longer wanted to act as intermediary and wanted ILF to deal with LST direct. This means that all the discussions on wording relating to role of DWP with LST needed to be changed. The Finance and Corporate Services Director said he had a meeting to discuss issues scheduled for later in the week. 3.5 Website The Chief Executive updated Trustees regarding the position with the website. She explained that DWP had indicated that the decision to say that we could not retain our own website was based on the fact that organisations fully funded by government were expected to lose their own website unless statutorily required to be an independent organisation. She explained that the “citizens” section of the ILF website i.e. for users would migrate to Direct.gov and the corporate section such as for Local Authorities to DWP.
The outcome would be that ILF would control content but the format would be that of Direct Gov. The closure programme would run to 2011 with decisions in the autumn 2007 on the roll out programme. Trustees expressed their disappointment on the lack of adequate DWP communication and loss of identity associated with the website but agreed with the Chief Executive that, pragmatically, the raising of a grievance against the decision was not an appropriate course of action. 3.6 User Personal Cases Committee The Chief Executive said that the first meeting was taking place this afternoon after the Trustees’ meeting. 3.7 Annual Review The Chief Executive said that a draft of the Annual Review was scheduled to be presented to Trustees at the meeting but this was running slightly behind expected and would be circulated outside the meeting for comment.
Separately, the Chief Executive outlined that the Annual Review for year end March 2006 had recently won the award of Best Annual Report organised by the Chartered Institute for Public Relations. 3.8 Trustees’ Minutes The Chief Executive said that she now had some information regarding how many hits the Trustees minutes had received on the website. In April 2007 there were 33 hits, May 90 and June 29. Outcome: Information 4 Outstanding Action Points The Chief Executive updated Trustees on the outstanding action points with the policy on administration now delayed to September 07 as part of the employer support costs project. Trustees accepted other delayed dates. All points regarding Finance would be cleared after today’s meeting. Outcome: Information 5 Chairman’s Issues The Chairman said that the half yearly SAO meeting had been arranged with Normal Cockett (DWP) after the meeting and an update would be provided at the September Trustees’ meeting. 6 Finance 6.1 Financial Management 07/08 (Grant in Aid and Benefit Forecast) The Finance and Corporate Services Director presented the report to Trustees. He asked Trustees to note the revision of the shortfall figure with a potential total need of £15.6 million. He explained that the forecast had been updated with data to 19 June 2007 and that the potential GB Funding Shortfall for 2007/08 has now risen to £10.6 million, this is due to unanticipated increased load and payment growth in the four week period ending 19 June 2007. To cope with future variations in expenditure there is a potential need for a further £2 million. The impact of Group 3 Candidates from the 2006 Trust could have another potential need of £3 million. Totalling £15.6 m. The Chairman said that Trustees had to make a decision today regarding the shortfall figure and it was important that there was a clear understanding of how the figures had been reached. The Finance and Corporate Services Director guided Trustees through the data in the report and answered Trustees queries. Outcome: Decision- £ 10.6 million baseline requirement for 2007/08 (see below) Margaret McGlade expressed her concern on when the growth might stop as significant increases had occurred in the last few months and concerns existed on how this had been factored into the estimates. The Chief Executive also commented on the need to factor in a sum to allow for further upward variation in applications from the new rate already being predicted in the forecast, as there was evidence of further likely growth. The ILF was already aware of two local authorities who have already said that they will be submitting a large number of applications from LSH cases. Equally there is evidence of an increase in local authorities employing ILF co-ordinators and where this had already taken place, application rates and average awards were higher than those LAs not employing ILF coordinators. The Finance and Services Director commented on the potential for future expenditure variation and brought Trustees’ attention to table 8 which focused on the GB 93 Fund Forecast against a range of load and payment trends and cost implications. He explained that it set out combinations of trend factors that could be managed within a £2 million provision and that he would be very surprised if the limits of the table were exceeded. Therefore it was suggested that a request is made of £2 million for future variations in expenditure. The Chairman said that this figure demonstrated good judgement and felt that this was enough based on the information provided. Trustees commented that they were only just comfortable with this amount of provision for future variations. Outcome: Decision - Further £ 2 million in addition to £ 10.6 million to be requested to reflect potential for future variations in expenditure. The Finance and Corporate Services Director said that there was £2.9 million available from administration budget reductions (£0.8 million) and cash management of £ 0.6 million from bank interest to reduce call on Grant in Aid £ 1.5 million from the expected cash position at year-end March 2008. He outlined cash carried forward on 1 April 2007 was £6.4 million. Due to 53 paydays in 07/08 this would be reduced by £3.9 million. If none of the cash was used to fund some of the shortfall there would be £2.5 million to carry forward, Trustees were asked to agree to use up £1.5 million of the projected cash to reduce the amount of further funding needed leaving £1 million as a safety margin. Trustees were concerned at running at this low cash level and discussions took place around this issue. The Chief Executive confirmed that going down to this level of cash meant that DWP must agree to pay the grant in aid needed for paydays 7 and 14 April early in 08/09 to ensure sufficient funding was available to meet those commitments. Norman Cockett (DWP) said that these projections provided confidence that this issue was being managed in a thoughtful way. Outcome: Decision- Trustees agreed to confirm the £ 2.9 million savings from administration budget reductions and cash management Outcome: The Chairman asked for comparative monthly cash balance analyses in future. Trustees were then asked to decide how the “savings” of £ 2.9 million should be spent. The Finance and Corporate Services Director commented on the options available for the £2.9 million which included
Using this sum to offset future variations in expenditure The Chairman commented that direction with regard to the position on the Review recommendations was needed from DWP to assist Trustees’ decision making. Norman Cockett (DWP) said that a meeting had been arranged with the Minister for Disabled People, Anne McGuire, on Monday 16 July to discuss the initial response to the review prior to her statement due before the Summer Recess. Outcome: Decision to defer use of £ 2.9 million until outcome on Review and request for additional funding was known in October. The Chairman said that Trustees’ responsibilities had always been in the Trust Deed however, it was important that Trustees understood their responsibilities. Norman Cockett (DWP) said that he appreciated the Trustees’ position and that DWP valued the work undertaken.
As the Minister had said she would not leave Trustees with insufficient funds to meet this year’s commitments and that a decision should be known by October to provide time to make other decisions if needed, If there is no decision or advance agreement given by DWP by the 10 October 2007 Trustees will be faced with some very difficult decisions on unpalatable options. The Chairman thanked the Chief Executive and her team for the excellent work carried out. In summary :Trustees’ Decisions: Confirmed £2.9 million savings proposed at the last meeting with cash balance figure of £1 million. Defer consideration of how the £2.9 million savings should be spent pending more information from DWP on Review recommendations. Estimation of £12.6 million to go to DWP, to address the shortfall for 07/08. Contingency planning to be continued if clear assurances are not provided by DWP by October 2007 Trustees’ meeting. No contingency measures be introduced at this stage due to the assurances made by the Minister. 6.2 Consideration of Group 3 Candidates within the 2006 Trust The Finance and Corporate Services Director said that the implementation of the new Trust Deed would mean potential extra costs for Group 3 candidates as the Deed stated that the ILF can make ‘run on’ payments up to 12 weeks after the end of normal entitlement to cushion the effect of loss of ILF income where there are remaining liabilities for care costs. It is estimated that the impact from October 07 to March 08 is approximately £3 million based on the current attrition rates. Outcome: Decision - interim policy not to make payments to Group 3 candidates from October 2007 save in exceptional circumstances pending further information on additional funding. 6.3 Strategic Financial Planning 2008-09 The Finance and Corporate Services Director presented the paper to Trustees which recommended steps to be taken to prepare for the funding needs and management in 2008/09. Planning for the next financial year was potentially problematic due to possible changes in forecasting methodology, the continuing increase of applications, review recommendations and the uncertainty on funding limits for the year. It was explained that there was a need to plan now and make the best assumptions we can about the shape of the ILF finances in coming years. We need to take forward discussions with Local Authorities and proposed a short consultation process with stakeholders. The Chief Executive said that discussions would need to take place with DWP as to their views on the funding position, as it may be that their view would be a narrowing rather than expansion of our client base to offset some of the increasing costs. Norman Cockett (DWP) commented that demand had increased considerably this year and it was likely that future funding would not be able to match the increasing application rate, therefore priorities must be considered. In addition Local Authorities must be made aware of the situation and, once the position on the funding was clear, decisions could be made. In answer to a question from the Chief Executive on the likely cap on percentage growth each year Norman Cockett (DWP) said he could not comment until he had talked to the Minister but average increases in the past could be used as a starting point. The Chief Executive commented on the issues in considering priority groups. She explained that wording in the Trust Deeds state that applicants who are young and in work should be given priority. However this could cover a broad spectrum of users in defining young. She explained that it was proposed to interpret groups broadly as areas of funding which would mean financial realignment between the ILF and LAs but this had not yet been discussed with DWP. However using the financial relationship with LAs to refocus the ILF target group interplays with several Review recommendations including raising the threshold sum which the DH does not support. The Chief Executive commented on the timetable for the consultation process, as it should ensure outcomes by November 2007 in time for completion of discussions with DWP on the funding for 2008/09. Although the 12 weeks outlined in Cabinet Office guidance would not be met due to time pressures. Norman Cockett said he would support the approach being taken. Norman Cockett agreed local authorities should be contacted and could be briefed that raising the £ 200 threshold sum was an option. The letter to local authorities might include an illustrative figure. Separately it was agreed that there was also a need to consider how priorities might be applied if there were funding difficulties in future years .Trustees discussed drivers for setting the revised target group. The Chairman suggested that Trustees meet to discuss the strategic/policy issues for the organisation separately, and hoped Trustees could meet on the Tuesday before the September Trustees meeting in Nottingham.
Outcome: Decision – Trustees agreed to take forward the consultation 6.4 Position on Accounts year end March 07
Mike Boyall, Chairman of the Audit Committee updated Trustees on the position of the Accounts which would now be presented at the September Trustees’ meeting after the parliamentary Summer Recess. Outcome: Information 7 Strategy 7.1 ILF Review and Issues Log The Chief Executive presented the report to Trustees. She explained that it showed the ILF’s initial response to the review recommendations. She commented on the meeting that took place with DWP/DH/ODI on 21 June, where 24 recommendations had been discussed in half a day and responses to the rest had been submitted in writing. She expressed the need for a sense of direction from DWP on the recommendations as Trustees needed to know what were priorities from the perspective of the Department. The Chairman commented that it would certainly help Trustees to see the Minister’s statement. DWP commented that they would be in discussions with the Minister on Monday regarding the proposed statement. Outcome: Decision - Trustees agreed to have a strategic discussion in September on the Recommendations 7.2 Developing User Consultation The Business Development presented the report to Trustees. He said that the report outlined plans to continue to develop consultation and inclusion activity in line with the Consultation and Inclusion Strategy. He said the main aim was to undertake 24 events throughout the year, 8 have already been carried out in the first quarter including a survey regarding the new literature to over 17,000 users, a user group meeting to discuss employer assistance policies and working with NCIL regarding the review of the complaints processes. He said that we needed to ensure that the Consultation and Inclusion activities were appropriate, adding value and deliverable within resource availability and four levels have been developed to assess this: -
Experiential – surveys in key points in processes Nick Danagher commented on needing a balance to ensure views of under represented groups were heard and would be beneficial to access as many as possible. He said it might be beneficial to look at existing structures and organisations to gain access to more users rather than starting afresh. The Business Development Director agreed that the advisory panel would need a clear remit and careful handling and the title of the group may need to be changed. The Business Development Director said it was proposed to publish agendas on the website and develop a Frequently Asked Questions section as this would generate topics for open meetings. Nick Danagher commented that we should include a disclaimer that responses were not guaranteed. The Business Development Director commented on proposals for an open ‘Trustees Meeting’ which also links with the Review recommendations. It was proposed it would take place during November 07 and be a facilitated day to discuss policies and processes and opportunities for questions with some of our users. Trustees agreed to this proposal.
He also commented on Trustees attending other consultation events. It was agreed that there was a balance between Trustees time already committed and the desire for maximising opportunities for involvement.
Outcome: Decision – Trustees agreed to the open meeting in November 2007 7.3 Employers Support Project The Chief Executive said that this paper had been delayed due to time constraints as it was a lengthy paper and needed separate discussions with Trustees. Outcome: For inclusion at September strategic discussion on Review recommendations 7.4 Report on Early Review Trial The Project Manager presented the report to Trustees. She gave an overview of the trial and the findings have shown that by visiting users six months into their award there are improvements in customer service, compliance with policy and overpayment prevention. She explained that trial users were very positive about the level of service provided by the ILF in particular the telephone service. Compliance issues were more readily resolved within the trial group as by visiting the user at six months the ILFA was able to ensure that where policy was not adhered to, rectification was within the early stages of the award. The trial group uncovered a large number of overpayments this mainly being due to full funding not being used - to date a total of £87K in unspent monies had been identified with £47K already recovered. The Project Manager said that to introduce an early review visit programme would mean extra staffing and would cost approximately £280K per year. However the overpayments and unspent monies recovered should ultimately recoup this cost. It was proposed to consult with DWP and other key stakeholders as this is linked to the Review recommendations and to consider within the priorities of 08/09 administration budget. Outcome: Decision - Trustees agreed the proposal in principle but to be considered further when administration budget for 08/09 is presented. 8 Performance 8.1 LSH and Campus Accommodation Policy Changes Update The Operations Director presented the report to Trustees. He explained that at this stage the number of applications received was still relatively low, however this may change as more of the Oxfordshire and Cornwall cases filter through. It has been confirmed that Cornwall have 120 cases and they will be submitting these in phases from September 2007. The Chief Executive confirmed that the figures presented in the paper did not include those in campus style accommodation and it was not known how many people were already living in the community having previously been a LSH patient. Outcome: Information 8.2 Evaluation of Regionalisation The Operations Director presented the report to Trustees. He commented that it was a positive report and was pleased with the efficiency savings. Outcome: Information 8.3 Annual Report on the Delivery of IT Strategy The Business Development Director presented the report to Trustees. He said that it provided assurance to Trustees on the delivery of the aims and objectives established by the ILFs IT Strategy. He said that overall system availability presently averaged 99.8% (24/7) during the whole business year. He explained that we are currently in a transition period with a new IT provider on technical support called Littlefish. In answer to a question from the Chairman the Chief Executive said that the Audit Committee had discussed the IT Security report at their meeting yesterday. She commented that 61% of the recommendations had been actioned with a report at each Audit Committee on the work to progress the remaining recommendations. 9 AOB 9.1 Date of Next Meeting The date of next meeting will be Wednesday 12 September 2007. Trustees to confirm availability for afternoon of 11 September in addition. There being no further business the meeting closed at 14:00 hrs. |
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