Agenda item

The Board gave consideration to a report of the Director of Finance, Oldham Council and the Chief Finance Officer, Oldham CCG which sought approval for the proposed use of funds held in reserves following increased flexibilities of S75 contributions within 2020/21.

The report provided the Board with an update on proposals to fund transformational activity, which would begin to address the c£90m recurrent system gap across the Oldham system.

During 2020/21 the Oldham Directors of Finance had worked together to set out the system-wide financial challenge being faced. Based on the financial plans developed by each organisation at the start of 2020/21 the underlying gap was £87.8m for the Oldham system, before savings plans and use of reserves. Whilst there had been some movement in the elements and drivers of this position due to Covid, the year-end position still showed an underlying financial gap of approximately £90m at the end of 2020/21.

The CCG had significant scope to contribute additional funds into the pooled budget and, at its meeting on 25^th March 2021, the Board agreed that these funds would be used to support the creation of a reserve totalling £10.3m in OMBC accounts, to support what would be an extremely challenging financial position in 2021/22 and subsequent years.

The report set out the following proposals for the use of reserves in 2021-2022:-

·         Funding additional capacity for the next 12 months to speed up work on children’s integration - £0.08m

·         Contribution towards the Delivering a Sustainable Future programme of transformational change - £0.15m

·         Additional contribution to the pool in response to the non-recurrent NHS system pressures as referenced in the paper of March 2021. - £5.0m with delegation, jointly, to the OMBC Director of Finance and the CCG Chief Finance Officer to finalise the technical requirements in order to utilise the funds and confirm phasing arrangements

It was proposed that a further £5.07m would remain available for future use as a Transformation Fund, to enable the requisite closing of the underlying gap within Oldham.

It was proposed that the use of the remaining £5.07m reserve be delegated to the new Oldham Health and Care System Board, with bids being reviewed and proposed by the Place Lead for Oldham, in consultation with the Chief Finance Officers of the CCG and the Council, to provide assurance as to the financial benefits and to ensure compliance with the Oldham System Financial Framework. The Board noted the use of the funds must align to the legislative and local financial frameworks applicable to Oldham Council, as the £5.07m was held in the accounts of the Council.

Options/alternatives

1.    Approve the proposals in full.

2.    Approve the proposals in part.

3.    Do not approve the proposals

RESOLVED- That:

1.    The strong history of joint working and funding arrangements in Health and Social Care in Oldham be noted.

2.    The request for use of funds in 2021/22 totalling £5.23m as detailed in the report be approved.

3.    Delegation jointly to the OMBC Director of Finance and the CCG Chief Finance Officer to finalise the technical requirements in order to utilise the £5m of the funds and confirm phasing arrangements be approved.

4.    That approval would also be sought for changes arising from this paper through Council governance routes regarding the Use of Reserves Policy be noted.