Common use of RISK AND BENEFIT SHARE ARRANGEMENTS Clause in Contracts

RISK AND BENEFIT SHARE ARRANGEMENTS. This Agreement covers areas of children’s services, which potentially have related financial and resource risks. These risks are mainly an increase in demand for services, where the agreed aligned budget at the time of budget setting can sometimes become insufficient during the financial year to meet the increased demand. In practice, all placements services within the S75 agreement are demand led, and this has the potential to bring about under spends or overspends against the aligned budget. The S75 Agreement is clear about how projected overspends or under spends on the pooled budget should be managed (see Clauses 12.2-12.6) with a report with recommended options being brought to JSCG, but the underlying principle is that they should both be assigned to the each party to this Agreement (the Council and the BLMK ICB) in the same proportion as the contributions made by both parties to this Agreement. The Council, as the Lead Commissioner, must notify the BLMK ICB as soon as a projected tolerance level of 5% below the budget is identified, and that no overspends on the pooled budget are allowed without the prior agreement of the BLMK ICB. In practical terms, this means that the BLMK ICB and the Council will be requested to increase their contributions to the pooled budget in the same proportions as the initial allocations, in order to reduce the likelihood of a year-end negative balance. The highest risk area within the aligned budget are the services provided to children with complex or continuing health care needs. The initial budgets are based on current expected numbers of children and young people; however, due to the low volume and associated high costs, the demand for services in inherently volatile. To mitigate this risk, cases will be reviewed through allocation panels, at which commissioners and providers can discuss provision according to need, identify changes in care packages and forecast future demand. Cases are discussed by the panel against a set of agreed criteria. The panels include: • Children with Complex Needs Panel (to include mental health complex needs) • Care Management Resource Panel for Children and Young People If funding is agreed that would potentially take the aligned budget into an overspend position, the Council’s Population Wellbeing Department Finance Business Partner will inform the BLMK ICB Associate Director of Finance (Reporting & Contracting), as part of quarterly budget monitoring reporting. BLMK ICB. In addition, the overall quarterly budget position is also reported at the next meeting of the JSCG.

RISK AND BENEFIT SHARE ARRANGEMENTS. This Agreement covers areas of children’s services, which potentially have related financial and resource risks. These risks are mainly an increase in demand for services, where with the agreed aligned pooled budget at the time of budget setting can sometimes become becoming insufficient during the financial year to meet the increased demanddemand increase. In practice, all placements services within the S75 agreement are demand led, and this has the potential to bring about under spends or overspends against the aligned pooled budget. The S75 Agreement is clear about how projected overspends or under spends on the pooled budget should be managed (see Clauses 12.2-12.6) with a report with recommended options being brought to JSCG, but the underlying principle is that they should both be assigned to the each party to this Agreement (the Council and the BLMK ICBCCG) in the same proportion as the contributions made by both parties to this Agreement. The Council, as the Lead Commissioner, must notify the BLMK ICB CCG as soon as a projected tolerance level of 5% below the budget is identified, and that no overspends on the pooled budget are allowed without the prior agreement of the BLMK ICBCCG. In practical terms, this means that the BLMK ICB CCG and the Council will be requested to increase their contributions to the pooled budget in the same proportions as the initial allocations, in order to reduce the likelihood of a year-end negative balance. The highest risk area within the aligned pooled budget are the services provided to children with complex or continuing health care needs. The initial budgets are based on current expected numbers of children and young people; however, due to the low volume and associated high costs, the demand for services in inherently volatile. To mitigate this risk, cases will be reviewed through allocation panels, at which commissioners and providers can discuss provision according to need, identify changes in care packages and forecast future demand. Cases are discussed by the panel against a set of agreed criteria. The panels include: • Children with Complex Needs Panel (to include mental health complex needs) • Care Management Resource Panel for Children and Young People If funding is agreed that would potentially take the aligned pooled budget into an overspend position, the Council’s Population Wellbeing People Department Finance Business Partner Manager will inform the BLMK ICB Associate Director of CCG’s Finance (Reporting & Contracting), as part of quarterly budget monitoring reporting. BLMK ICBManager. In addition, the overall quarterly budget position is also will be reported at the next meeting of the JSCG.