Appendix 1


Personal budget monitoring
Personal Budget Agreement To receive a Personal Budget as a cash payment (i.e. a Direct Payment), the individual must enter into a formal contractual agreement with Essex County Council or CCG. The contractual arrangements between the Council /CCG and the individual must be established in a formal, written Personal Budget Agreement.
Separate Bank Account All individuals receiving personal budgets as cash payments are required to set up a separate bank account for receipt and maintenance of these funds, unless the Council/CCG agrees to make an exception. Normally, the one exception the Council will make is where the individual opts to use a recognised payroll service that meets the Council’s/CCG’s monitoring requirements.
Records Individuals will be required to keep records of how they have spent their Personal Budget and submit these to the Council/CCG or agreed organisation for monitoring as required. Individuals receiving a high level of cash payments, or who are deemed to present a higher risk, may be subject to enhanced monitoring arrangements. Records may include bank statements, invoices and receipts, payroll records or any other relevant documents specified by the Council/CCG.
Financial Contributions For those over 18, payments will be made net of any financial contribution the individual is assessed as being required to make towards the cost of support for their assessed, eligible needs.
VAT Essex County Council/CCG is unable to recover VAT on goods and services which are purchased via personal budgets. Any goods and services purchased are regarded as being purchased directly by the individual, who is therefore liable for any VATincurred.
Contingency Up to four weeks’ funds may be set aside for use as a contingency fund. Individuals may also plan for savings to make larger one off purchases or to fund more expensive services, as long as this is planned and agreed in the support plan.
Treatment of surplus The Council/CCG may seek to recover money from the individual if they have a surplus of more than eight weeks’ funds in the direct payment bank account and this is not part of any contingency fund that has been agreed with us (see above).