Revenue Budget Monitoring Report

North Lanarkshire Council · 13 September 2022
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North Lanarkshire Council
Report
Education, Children and Families Committee
Does this report require to be approved? ☐ Yes ☒ No
Ref: DB/TO’H Date 13/09/22
Revenue Budget Monitoring Report
From Derek Brown / Thomas O’Hagan
E-mail BrownD@northlan.gov.uk Telephone 01698 302 517
Executive Summary
This report provides a summary of the financial performance of the Education, Children
and Families Service for the period 1 April 2022 to 22 July 2022 (Period 4). The report
illustrates the projected outturn position as at 31 March 2023, with major outturn variances
highlighted and explained per North Lanarkshire Council’s approved Financial Regulations.
North Lanarkshire Council approved its General Fund Revenue Budget on 17 February
2022, of which £465.120m (52.4%) represented the Net Revenue Budget for Education,
Children and Families.
Included in the Revenue Budget are approved savings totalling £6.830m. It is currently
anticipated that £3.611m (53%) of these savings will be realised in the current financial
year.
The Service is currently forecasting an underspend of £0.158m to the end of the financial
year.
Recommendations
It is recommended that the Education, Children and Families Committee:-
(1) Review the financial position of the Education, Children and Families revenue budget.
(2) Review the contents of the report.
The Plan for North Lanarkshire
Priority All priorities
Ambition statement (25) Ensure intelligent use of data and information to support fully
evidence based decision making and future planning

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1. Background
1.1 North Lanarkshire Council’s approved Financial Regulations require Executive
Directors to remain within their approved budgetary provision, and to report all
significant deviations - defined as the higher of £100,000 or 5% - within their budget
monitoring reports. Where significant deviations are identified, Executive Directors
must provide explanatory commentary, outline the action required to rectify such
deviations and where relevant, must also highlight the impact this has on other budget
headings.
2. Report
2.1 Summary of Financial Position
2.1.1 North Lanarkshire Council approved its General Fund Revenue Budget on 17 February
2022 of which £465.120m (52.4%) represented the approved Net Revenue Budget for
Education, Children and Families. Following service budget realignments of £0.029m,
the revised 2022/23 net Revenue Budget for the Service is £465.090m.
2.1.2 The Service is forecasting a net underspend of £0.158m to the end of the financial year.
2.1.3 The current 2022/23 budget incorporates £6.830m of savings previously approved by
the Council on 17 February 2022. Further information regarding particularly
challenging savings, along with associated management actions and replacement in-
year savings, are included within this report at Appendix 5.
2.2 Analysis of Significant Variations
2.2.1 The Service has a total employee budget of £345.538m and currently anticipates a
projected underspend of £3.659m. Establishment staffing budgets will be further
realigned when the August pupil rolls are confirmed. Further contributors to the
underspend include the roll out of a finalised Early Years operating model, actual and
projected vacancies, coupled with the roll out of confirmed HQ and cluster staffing
structures.
2.2.2 Service employee budgets are partly devolved to establishments per the Devolved
School Management (DSM) scheme, with the remaining budgets held at HQ level.
2.2.3 The devolved teacher budget is £194.203m. Under the DSM scheme, the budget for
teaching posts within schools is delegated to Headteacher management.
2.2.4 Schools also receive a non-teaching devolved staffing budget of £59.705m. School
support staff are allocated to establishments on the basis of agreed formulas and
individual pupil needs. Within the DSM scheme, these budgets are delegated to
Headteacher management.
2.2.5 Non-School staffing budgets of £91.630m include HQ functions, as well as temporary
grant funded posts in areas such as Scottish Attainment Challenge (SAC) programmes,
along with Scottish Government and Covid grant received for the recruitment of
additional teachers.
2.2.6 The Service is anticipating an overspend of £2.000m within Transport and Plant which
reflects ongoing demand pressures within ASN transport (£1.385m), and increases to
mainstream transport contract rates (£0.615m).
2.2.7 The Service is anticipating an overspend of £1.500m within Payments to Other Bodies
primarily in relation to external placements within ASN service provision (£0.700m) and

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Family Placements (£0.800m) linked to cost pressures within External Fostering and
Kinship Care.
2.3 Earmarked and One-off Resources
2.3.1 In finalising North Lanarkshire Council’s annual accounts to 31 March 2022, the
Education, Children and Families Service was given approval to earmark £104.499m
of resources represented by £85.217m (Non-Covid) and £19.282m (Covid) to fund key
projects and initiatives. The majority of this reserve (£54.175m) is earmarked for
existing school building contractual commitments. Other specific reserves include Pupil
Equity Fund (PEF) carry forwards, DSM carry forwards, and ring-fenced 1140 Hours
grant. Future monitoring reports will provide updates on use of these reserves during
2022/23 as outlined in Appendix 4.
2.4 2022/23 Budget Savings and Growth
2.4.1 The Council previously approved total savings of £16.484m during 2022/23. The initial
Education, Children and Families Service savings target for 2022/23 was £6.830m. The
Service uses a variety of information, records, and processes to monitor achievement
of its approved budget savings. As at Period 4, it is anticipated that £3.611m (53%) of
the approved savings target will be realised in the current financial year.
2.4.2 The unachieved savings of £3.219m have predominantly arisen due to temporary
operational timing delays, the phased introduction of new staffing structures,
consideration of the school academic calendar, and impact of Covid-19. In year
management action has been taken to address this savings gap during 2022/23 with
savings expected to be fully achieved during future financial years.
2.4.3 As part of the Council’s approved General Fund Revenue Budget for 2022/23, the
Education, Children & Families Service were allocated £3.470m (Appendix 6) towards
several one-off investments. Future monitoring reports will provide updates on use of
these one-off investment allocations during 2022/23.
2.5 Management Action
2.5.1 Management will continue to review and implement actions through to financial year
end with the aim of ensuring the Service operates within approved budget resources.
These actions will include:-
a) Vacancy management.
b) Creating efficiencies through use of grant/external funding.
c) Curtailment of non-essential expenditure.
d) Application of reserves and earmarked resources to offset one-off cost pressures.
3. Measures of success
3.1 The Service operates within approved budget resources.

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4. Supporting documents 
4.1 Appendix 1  Objective Analysis 
Appendix 2  Subjective Analysis  
Appendix 3  Payments to Other Bodies 
Appendix 4  Earmarked Reserves 
Appendix 5  Challenging Budget Savings
Appendix 6   One-off Investments 
Derek Brown
Deputy Chief Executive

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5. Impacts ( http://connect/report-template-guidance ) 
5.1 Public Sector Equality Duty and Fairer Scotland Duty
Does the report contain information that has an impact as a result of the Public
Sector Equality Duty and/or Fairer Scotland Duty?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
If Yes, has an assessment been carried out and published on the council’s website?
https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-
scotland-duty-impact-assessments
Yes ☐ No ☐
5.2 Financial impact
Does the report contain any financial impacts?
Yes ☐ No ☒
If Yes, have all relevant financial impacts have been discussed and agreed with
Financial Solutions?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact?   
5.3 HR policy impact 
Does the report contain any HR policy or procedure impacts?
Yes ☐ No ☒
If Yes, have all relevant HR impacts have been discussed and agreed with People
and Organisational Development?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact?
Relevant pro-forma to be submitted to future WSG. 
5.4 Legal impact
Does the report contain any legal impacts (such as general legal matters, statutory
considerations (including employment law considerations), or new legislation)?
Yes ☐ No ☒
If Yes, have all relevant legal impacts have been discussed and agreed with Legal
and Democratic Solutions?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact?
5.5 Data protection impact 
Does the report / project / practice contain or involve the processing of personal
data?  
Yes ☐ No ☒
If Yes, is the processing of this personal data likely to result in a high risk to the data
subject?
Yes ☐ No ☐
If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-
mailed to dataprotection@northlan.gov.uk 
Yes ☐ No ☐
5.6 Technology / Digital impact
Does the report contain information that has an impact on either technology, digital
transformation, service redesign / business change processes, data management, or
connectivity / broadband / Wi-Fi?
Yes ☐ No ☒

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If Yes, please provide a brief summary of the impact? 
Where the impact identifies a requirement for technology, has an assessment been
carried out (or scheduled) by the Enterprise Architecture Governance Group
(EAGG)? 
Yes ☐ No ☐
5.7 Environmental / Carbon impact
Does the report / project / practice contain information that has an impact on any
environmental or carbon matters?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.8 Communications impact
Does the report contain any information that has an impact on the council’s
communications activities?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.9 Risk impact
Is there a risk impact?
Yes ☒ No ☐
If Yes, please provide a brief summary of the key risks and potential impacts,
highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service
or Project Risk Registers), and how they are managed? 
The approach outlined in this report supports the Council’s actions in managing
financial sustainability and financial management risks. Financial pressures and risks
are reviewed on a regular basis by the Service Management Team, CMT and
Committee.

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APPENDIX 1
[1] [2] [3] [5] [6] [8] [9] [10]
Early Years 8,648,190 8,648,190 0 31,788,724 31,788,724 0 0.0%
Primary Schools 28,436,794 28,436,794 0 128,030,242 128,030,242 0 0.0%
Secondary Schools 29,425,763 29,425,763 0 127,090,309 127,090,309 0 0.0%
Special Schools 5,103,569 5,103,569 0 20,176,565 20,176,565 0 0.0%
Promoting Equity - Schools 0 (0) 0 0 0 0 0.0%
Education Service Delivery 28,547,607 28,547,607 0 81,760,326 81,801,601 (41,275) ADV (0.1%) Underspends contained within Divisional employee
costs budgets offset by overspends within
transportation costs linked to ASN service delivery
and contract inflation pressures.
Children & Families 9,109,475 9,109,475 0 36,734,528 36,534,528 200,000 FAV 0.5% Underspends contained with Divisional employee
cost budgets offset by overspends within Family
Placements, External Fostering & Kinship
Placements
Justice Services 649,363 649,363 0 73,431 73,431 0 0.0%
Active & Creative Communities 1,397,568 1,397,568 0 25,074,035 25,074,035 0 0.0%
Employability 2,160,605 2,160,605 0 3,913,759 3,913,759 0 0.0%
Community Learning 1,568,294 1,568,294 0 5,236,818 5,236,818 0 0.0%
Welfare 827,057 827,057 0 2,072,882 2,072,882 0 0.0%
Strategy for Young People 489,102 489,102 0 3,138,843 3,138,843 0 0.0%
NET EXPENDITURE 116,363,387 116,363,387 0 465,090,462 464,931,737 158,725 FAV 0.0% 0 As stated above
Education, Children & Families
[4] [7]
PROJECTED OUT-TURN
VARIANCE
NORTH LANARKSHIRE COUNCIL
Revenue Budget Monitoring Report - Objective Analysis
Period 04 (01 April 2022 - 22 July 2022)
DIVISION OF SERVICE BUDGET TO
DATE
ACTUAL TO
DATE YEAR TO DATE VARIANCE ANNUAL
BUDGET
PROJECTED
OUT-TURN % PERIOD
MOVEMENT ANALYSIS

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APPENDIX 2
[1] [2] [3] [5] [6] [8] [9] [10]
EMPLOYEE COSTS 91,888,700 91,888,700 0 345,537,916 341,879,191 3,658,725 FAV 1.1% £3.659m underspend primarily due to delays in
recruitment and establishment vacancies / turnover.
PROPERTY COSTS 12,602,386 12,602,386 0 65,517,002 65,517,002 0 0.0%
SUPPLIES & SERVICES 2,896,843 2,896,843 0 14,887,389 14,887,389 0 0.0%
TRANSPORT & PLANT 3,562,352 3,562,352 0 13,754,853 15,754,853 (2,000,000) ADV (14.5%) £1.385m overspend in relation to ongoing cost
pressures linked to ASN service delivery and
£0.615m in relation to observed market increases for
mainstream transport contracts.
ADMINISTRATION COSTS 1,408,610 1,408,610 0 5,706,502 5,706,502 0 0.0%
PAYMENTS TO OTHER BODIES 12,386,569 12,386,569 0 39,563,908 41,063,908 (1,500,000) ADV (3.8%) £0.700m overspend in relation to external ASN
placements and £0.800m overspend in relation to
external fostering / kinship placements.
TRANSFER PAYMENTS 543,374 543,374 0 4,259,240 4,259,240 0 0.0%
CAPITAL FINANCING COSTS 0 0 0 42,325,575 42,325,575 0 0.0%
REVENUE FINANCING COSTS 0 0 0 0 0 0 0.0%
OTHER EXPENDITURE 1,394,528 1,394,528 0 23,889,264 23,889,264 0 0.0%
TOTAL EXPENDITURE 126,683,362 126,683,362 0 555,441,649 555,282,924 158,725 FAV 0.0% 0 As stated above
INCOME (10,319,975) (10,319,975) 0 (90,351,187) (90,351,187) 0 0.0%
NET EXPENDITURE 116,363,387 116,363,387 0 465,090,462 464,931,737 158,725 FAV 0.0% 0 As stated above
[4] [7]
PROJECTED OUT-TURN
VARIANCE
NORTH LANARKSHIRE COUNCIL
Revenue Budget Monitoring Report - Subjective Analysis
Period 04 (01 April 2022 - 22 July 2022)
CATEGORY BUDGET TO
DATE
ACTUAL TO
DATE YEAR TO DATE VARIANCE ANNUAL
BUDGET
PROJECTED
OUT-TURN % PERIOD
MOVEMENT ANALYSIS
Education, Children & Families

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APPENDIX 3
[1] [2] [3] [5] [6] [8] [9] [10]
GENERAL PTOBS 3,211,455 3,211,455 0 7,349,735 7,349,735 0 0.0%
ADDITIONAL SUPPORT NEEDS 809,544 809,544 0 6,928,240 6,928,240 0 0.0%
EARLY YEARS 5,035,199 5,035,199 0 13,894,454 13,894,454 0 0.0%
VOLUNTARY ORGANISATIONS 294,148 294,148 0 1,114,610 1,114,610 0 0.0%
FAMILY PLACEMENTS 3,017,279 3,017,279 0 10,054,583 11,554,583 (1,500,000) ADV (14.9%) £0.700m overspend in relation to external ASN
placements and £0.800m overspend in relation to
external fostering / kinship placements.
CHILDRENS SERVICES - GENERAL 18,944 18,944 0 222,286 222,286 0 0.0%
TOTAL EXPENDITURE 12,386,569 12,386,569 0 39,563,908 41,063,908 (1,500,000) ADV (3.8%) 0
[4] [7]
PROJECTED OUT-TURN
VARIANCE
NORTH LANARKSHIRE COUNCIL
Revenue Budget Monitoring Report - Payments to Other Bodies
Period 04 (01 April 2022 - 22 July 2022)
CATEGORY BUDGET TO
DATE
ACTUAL TO
DATE
YEAR TO DATE
VARIANCE
ANNUAL
BUDGET
PROJECTED
OUT-TURN % PERIOD
MOVEMENT ANALYSIS
Education, Children & Families

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APPENDIX 4
Value %
Service Specific Earmarked Reserves:
School Carry Forward / Support 5,331,815 0 5,331,815 5,331,815 100.0% 0 5,331,815
PEF Carry Forward 5,122,022 0 5,122,022 5,122,022 100.0% 0 5,122,022
Seemis Replacement Project 36,399 0 36,399 36,399 100.0% 0 36,399
Early Learning and Childcare 14,248,598 (6,759,000) 7,489,598 7,489,598 100.0% 0 7,489,598
CYPMHW Framework 18,881 0 18,881 18,881 100.0% 0 18,881
Shotts Prison 46,844 0 46,844 46,844 100.0% 0 46,844
School Contractual Obligations 54,174,844 (54,174,844) 0 0 0.0% 0 0
Asylum Seeker 32,333 0 32,333 32,333 100.0% 0 32,333
Whole Family Wellbeing 233,272 0 233,272 233,272 100.0% 0 233,272
Student Social Worker Resumption Funding from Universities 21,380 0 21,380 21,380 100.0% 0 21,380
ESF Match Funding - Pipeline 406,136 0 406,136 406,136 100.0% 0 406,136
Active & Creative Communities 2,568,303 0 2,568,303 2,568,303 100.0% 0 2,568,303
Youth Guarantee Funding 2,908,913 0 2,908,913 2,908,913 100.0% 0 2,908,913
Legacy Flexible Fund 67,157 0 67,157 67,157 100.0% 0 67,157
SUB-TOTAL (Non-Covid) 85,216,897 (60,933,844) 24,283,053 24,283,053 100.0% 0 24,283,053
Service Specific Earmarked Reserves (COVID-19):
Education Services Head Quarters 1,301,807 (134,000) 1,167,807 1,167,807 100.0% 0 1,167,807
Education Services Schools 12,075,284 (1,628,888) 10,446,396 10,446,396 100.0% 0 10,446,396
Social Work Services - Criminal Justice 57,341 0 57,341 57,341 100.0% 0 57,341
Active & Creative Communities 702,425 0 702,425 702,425 100.0% 0 702,425
Financial Insecurity / Welfare 4,645,208 0 4,645,208 4,645,208 100.0% 0 4,645,208
Community Renewal Fund 500,000 0 500,000 500,000 100.0% 0 500,000
SUB-TOTAL (Covid) 19,282,065 (1,762,888) 17,519,177 17,519,177 100.0% 0 17,519,177
TOTAL 104,498,962 (62,696,732) 41,802,230 41,802,230 100.0% 0 41,802,230
NORTH LANARKSHIRE COUNCIL
Revenue Budget Monitoring Report - Status of Earmarked Reserves
Period 04 (01 April 2022 - 22 July 2022)
Education, Children & Families
DESCRIPTION OF EARMARKED RESOURCE DIVISION Reserve
Allocation
Adjustments
In Year
Approved
Reserve
Total
Projected Spend Reserves No
Longer
Required
Reserves
Required In
Year
FINANCIAL YEAR - 2022/23
Commentary Regards Usage

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APPENDIX 5
£000 £000 £000 £000 £000
Reconfiguration of Secondary School Week
to Facilitate Transformative Practice
626 626 0 0
Reconfiguration of Secondary Management
Structures
474 474 0 0
Management Models for Future Campuses 159 159 0 0
Realignment of Early Years Grant Cash Flow
to Match Expenditure
1,000 1,000 0 0
Residential / Family Placements /
Throughcare
600 0 600 Current level of service demand is in
excess of budgetary provision
Management Action within other
areas of the Service to offset savings
gap.
600 0
Merger / Rezoning School Catchments 675 175 500 Delay in the implementation of the
associated saving
Approval in place to rephase saving
and delay full-year implementation
until 2023/24.  In-year Management
Action within other areas of the
Service to offset savings gap.
500 0
Librarians 238 119 119 Delay in the implementation of the
associated saving
Management Action within other
areas of the Service to offset savings
gap.
119 0
Reduce management fees to Culture and Leis 3,058 1,058 2,000 Delay in the implementation of the
associated saving
In-year allocation of approved
Earmarked Reserve to manage delay
in the implementation of the
associated saving.
2,000 0
TOTAL 6,830 3,611 3,219 As stated above As stated above 3,219 0
52.87% 47.13% 47.13% 0.00%
Delivered Gap Replacement Revised-Gap
Education, Children & Families
Period 04 (01 April 2022 - 22 July 2022)
Revenue Budget Monitoring Report - Savings
NORTH LANARKSHIRE COUNCIL
Savings GapValue
Deliverable Commentary
Revised
Savings GapDESCRIPTION OF APPROVED SAVING Target Value DESCRIPTION Value
REPLACEMENT SAVING / FUNDINGAPPROVED SAVINGS
Reasons for Savings Gap

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APPENDIX 6
Value %
Recover NL One-Off Investments
Active & Creative
Communities
Culture, Leisure and
Sport Facility
Improvement Programme
Following the insourcing of culture, leisure and sport
services it is recognised that there is investment required to
ensure customers experience a positive and safe
environment from the Council's facilities which will, in turn,
support increased use of facilities and participation in active 
and creative activities.
1,000,000 1,000,000 100.0% 0 Usage in line with budget motion approval
Active & Creative
Communities
Active60 Pass Building on the success of the Council's Active65
membership pass at £50 for the year, continuation for one
more year and extending the scheme to over 60s.
550,000 550,000 100.0% 0 "
Active & Creative
Communities
Keeping the Promise Free provision of sport and leisure facilities for care
experienced children and young people to promote physical
and mental wellbeing. This would include AccessNL
memberships, family passes to Time  Capsule Waterpark
and nutritional wellbeing support for one year.
300,000 300,000 100.0% 0 "
Active & Creative
Communities
Active Teens Extending the successful Active Teen programme of free
gym memberships for 11-15 year olds during the working
week for one more year.
300,000 300,000 100.0% 0 "
Education, Children &
Families
Scottish Attainment
Challenge
Reinstate Scottish Attainment Challenge funding for one
year only.
1,020,000 1,020,000 100.0% 0 "
Education, Children &
Families
School and Early Years
Clothing Grants
Continuation of enhanced grant value for school aged pupils
and NLC scheme for early years children for one more year.
300,000 300,000 100.0% 0 "
TOTAL 3,470,000 0 3,470,000 100.0% 0
DIVISION PRIORITY AREA Commentary Regards UsageCOUNCIL MOTION AREA
Approved
Investment
Total
Spend to
Date
FINANCIAL YEAR - 2022/23
NORTH LANARKSHIRE COUNCIL
Revenue Budget Monitoring Report - Recover NL One-Off Investments
Period 04 (01 April 2022 - 22 July 2022)
Education, Children & Families
Projected Spend Projected
Spend
Variance