Agenda pack
North Lanarkshire Council · 14 September 2022
Back to Finance and Resources Committee — 14 September 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Our Ref: Your Ref: Contact: Tel: Fax: E-Mail: Date: Andrew Rose 07951 409714 rosean@northlan.gov.uk 5 Sep 2022 Members of the Finance and Resources Committee Chief Executive’s Office Archie Aitken Head of Legal & Democratic Solutions Civic Centre, Windmillhill Street Motherwell ML1 1AB DX 571701, Motherwell 2 www.northlanarkshire.gov.uk Notice is given that a Hybrid Meeting of the FINANCE AND RESOURCES COMMITTEE is to be held within the Civic Centre, Windmillhill Street, Motherwell on Wednesday, 14 September 2022 at 10:00 am which you are requested to attend. The agenda of business is attached. Head of Legal and Democratic Solutions Members : Councillors: A Beveridge, G Brennan, A Bustard, A Campbell, T Carragher, C Costello, S Coyle, D Crichton, G Currie, P Di Mascio, K Duffy, H Dunbar, T Fisher, F Fotheringham, W Goldie, J Hume, D Johnston, T Johnston, J Jones, P Kelly, J Linden, J Logue, H Loughran, F MacGregor, A Magowan, B McCluskey, B McCulloch, F McKay, R McKendrick, J McLaren, F McNally, M McPake, L Roarty, D Robb, G Robinson, K Stevenson, A Stubbs, L Stubbs, R Sullivan, S Watson. Page 1 of 274
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Agenda (1) Declarations of Interest In Terms of the Ethical Standards In Public Life Etc. (Scotland) Act 2000 Minutes (2) Minute of Meeting of the Joint Consultative Committee (JCC) For Local Government Employees held on 29 March 2022 (page 9 - 10) Submit minute of the meeting of the Joint Consultative Committee (JCC) for Local Government Employees held on 29 March 2022 (copy herewith) Operational (3) Local Public Holidays for Factories and Businesses 2023 (page 11 - 14) Submit report by the Head of Legal and Democratic Solutions detailing local public holidays in calendar year 2023 for factories and businesses in North Lanarkshire (copy herewith) (4) P002.1: Corporate Asset Management Plan (CAMP) 2021-2026 (page 15 - 50) Submit report by the Head of Asset & Procurement Solutions seeking approval of the Corporate Asset Management Plan (CAMP) which provides an overview of how the Council is managing its assets to align to the Council’s Ambition Programme for 2021-2026 (copy herewith) (5) Active NL Staff Membership (page 51 - 56) Submit report by the Head of Education (South) setting out a proposal to introduce a new, reduced, membership rate for North Lanarkshire Council employees to access health and fitness services under Active NL (copy herewith) Financial (6) General Debtors Write-Off 2022/23 (page 57 - 62) Submit report by the Head of Financial Solutions providing a summary of outstanding debtor accounts which are deemed uncollectable following all attempts at recovery or are not economically viable to pursue (copy herewith) (7) Annual Accounts Outturn (page 63 - 68) Submit report by the Head of Financial Solutions advising that that the annual statutory accounts of the Council for the year ended 31 March 2022 were submitted to the Council’s External Auditors, Audit Scotland, by the statutory date of 30 June, and subsequently reported to the Audit and Scrutiny Panel (copy herewith) (8) POW 11 - Review of 2022/23 Budget Savings (page 69 - 74) Submit report by the Head of Financial Solutions providing an update on the achievement of the approved net savings for financial years 2022/23 of £10.484m (copy herewith) Page 3 of 274
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2 (9) Treasury Management Annual Activity Report - 2021/2022 (page 75 - 98) Submit report by the Head of Financial Solutions fulfilling the key requirements of the Council’s reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities (copy herewith) (10) Revenues and Benefits Update (page 99 - 106) Submit report by the Head of Financial Solutions providing an update on performance within the Revenues and Benefits functions of Financial Solutions as at 31 July 2022 (copy herewith) Monitoring (11) Revenue Budget Monitoring Report; Chief Executive's and Other Corporate Services 1 April - 22 July 2022 (Period 4) (page 107 - 118) Submit report by Head of Financial Services providing a summary of the Chief Executive and other corporate services financial performance for the period 1 April 2022 to 22 July 2022 (Period 4) and illustrating the provisional outturn as at 31 March 2023, with major outturn variances highlighted and explained per the Council’s approved Financial Regulations (copy herewith) (12) Revenue Monitoring Report Council Summary 1 April 2022 to 22 July 2022 (page 119 - 128) Submit report by the Head of Financial Solutions providing an update on the overall position for the General Fund Account, Housing Revenue Account and Adult Health and Social Care, for the financial year to 31 March 2023 and consolidates the budget monitoring position of all Services, highlighting and explaining major variances as per the Council’s approved Financial Regulations (copy herewith) (13) Capital Programme 2022/23 Monitoring Report (page 129 - 138) Submit report by the Head of Financial Solutions providing an update on the 2022/23 resources and expenditure for the Council's Strategic Capital Investment Programme and the 2022/23 projected outturn position and the resultant variances (copy herewith) (14) Chief Executive Service - Capital Monitoring Report 1 April to 22nd July 2022 (Period 4) (page 139 - 144) Submit report by the Head of Financial Solutions highlighting the financial performance and provisional outturn of 2022/23 Chief Executive capital programme for the period ended 22 July 2022 (Period 4) (copy herewith) (15) Treasury Management Monitoring Report for Quarter Ended 30 June 2022 (page 145 - 154) Submit report by the Head of Financial Solutions which fulfils the key requirements of the Council’s reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities and informs on the quarterly Treasury Management activity for the period 1 April to 30 June 2022 and compliance with the mandatory treasury and prudential indicators (copy herewith) Page 4 of 274
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3 Remits (16) Housing Committee - General Debtors Write-Off 2022 (page 155 - 160) Submit report remitted by the Housing Committee at its meeting held on 31 August 2022 seeking approval by the Finance and Resources Committee to write off the items (copy herewith) (17) Adult Social Work, Care and Wellbeing Committee - General Debtors Write-Off 2022 (page 161 - 166) Submit report remitted by the Adult Social Work, Care and Wellbeing Committee at its meeting held on 6 September 2022 seeking approval by the Finance and Resources Committee to write off the items (copy herewith) (18) Education, Children and Families Committee - Annual Bad Debt Write Off (page 167 - 172) Submit report remitted by the Education, Children and Families Committee at its meeting held on 13 September 2022 seeking approval by the Finance and Resources Committee to write off the items (copy herewith) Procurement (19) PO59: Procurement Strategy 2023 - 2024 (page 173 - 192) Submit report by the Head of Asset & Procurement Solutions seeking approval for Procurement Strategy which is required to be reviewed annually by the Council with the latest update being the fifth undertaken since the Strategy was first introduced in 2017 and covers the period 1 April 2023 to 31 March 2024 (copy herewith) (20) PO59: Annual Procurement Report 2021-22 (page 193 - 230) Submit report by the Head of Asset and Procurement Solutions providing an annual report on its regulated procurement activities (copy herewith) Property (21) Proposed Sub Station at Paddock Street, Carnbroe (page 231 - 236) Submit report by the Head of Asset and Procurement Solutions seeking homologation of the decision taken by the Executive Director of Education and Families in consultation with the Convener of the Finance and Resources Committee for a 175 year lease for an electrical substation and associated servitude for cables, pedestrian and vehicular rights of access on land at the site of the proposed Carnbroe Community Hub at Paddock Street, Carnbroe (copy herewith) Contracts (22) Contract Awards for Cashless Catering Solution and Online School Payments (page 237 - 242) Submit report by the Head of Asset and Procurement Solutions advising of a contract award for a ‘Cashless Catering Solution’ for the Schools estate (copy herewith) Page 5 of 274
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4 (23) Contract Award for Supply & Distribution of Frozen Foods 2022-2026 (page 243 - 248) Submit report by the Head of Asset and Procurement Solutions advising of the contract award for the Supply & Distribution of Frozen Foods (copy herewith) (24) Contract Award for the Supply and Distribution of Milk 2022-2026 (page 249 - 254) Submit report by the Head of Asset and Procurement Solutions advising of the contract award for the Supply and Distribution of Milk (copy herewith) (25) Contract Award for Provision of Occupational Health Services and Employee Assistance Programme (page 255 - 266) Submit report by the Head of People and Organisational Development advising of the award of a contract for the provision of the Council’s Occupational Health Services and Employee Assistance Programme (copy herewith) (26) Contracts Awarded Below Committee Approval Threshold (page 267 - 274) Submit report by the Head of Asset and Procurement Solutions notifying the Committee of contracts awarded between 1 January 2022 to 30 June 2022 with a value below the financial threshold requiring Committee approval (copy herewith) EXCLUSION OF PUBLIC The Committee is asked to consider passing the following resolution: "That under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in paragraphs 6, 8 and 9 of Part 1 of Schedule 7A of the Act." (27) Sale of Land at Abernethyn Road, Newmains, Wishaw ML2 7EU (page 275 - 282) Submit report by the Head of Asset and Procurement Solutions seeking consent to sell land at Abernethyn Road, Newmains, Wishaw (copy herewith) (28) P021: City Deal - Proposed land transactions at Windmillhill Street, Motherwell (page 283 - 292) Submit report by the Head of Asset and Procurement Solutions seeking consent for several linked transactions required to secure land for the development of the Glasgow City Region City Deal Ravenscraig Access Infrastructure Roads project (copy herewith) (29) Proposed Purchase of flats at Dowanfield Road, Cumbernauld (page 293 - 298) Submit report by the Head of Asset and Procurement Solutions seeking consent to acquire 24 flats at Dowanfield Road, Cumbernauld to support the Council’s new housing supply programme (copy herewith) Page 6 of 274
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5 (30) Disposal of Kilbowie Stable Block, Gallanach Road, Oban PA34 4PD (page 299 - 308) Submit report by the Head of Asset and Procurement Solutions seeking consent to sell Kilbowie Stable Block, Gallanach Road, Oban to the highest bidder at a closing date following a marketing campaign (copy herewith) (31) Proposed Sale of Former Westfield Recycling Centre, Deerdykes Place, Cumbernauld, G68 9HE (page 309 - 314) Submit report by the Head of Asset and Procurement advising of the results of a recent open market tender exercise, and recommending the sale of the former Westfield Recycling Centre at Deerdykes Place, Cumbernauld (copy herewith) (32) Proposed Purchase of Houses at Gartferry Road, Moodiesburn (page 315 - 320) Submit report by the Head of Asset and Procurement Solutions seek consent to acquire 12 residential properties at Gartferry Road, Moodiesburn to support the Council’s new housing supply programme (copy herewith) (33) Proposed Purchase of Houses at Lorne Place, Coatbridge (page 321 - 326) Submit report by the Head of Asset and Procurement Solutions seeking consent to acquire 24 residential properties at Lorne Place, Coatbridge to support the Council’s new housing supply programme (copy herewith) (34) Proposed Purchase of land at Thorn Road, Bellshill (page 327 - 332) Submit report by the Head of Asset and Procurement Solutions seeking consent to acquire land at Thorn Road, Bellshill to support the Council’s new housing supply programme (copy herewith) (35) Office Rationalisation - Fleming House, Cumbernauld (page 333 - 341) Submit report by the Head of Asset and Procurement Solutions seeking authority for the Head of Asset & Procurement Solutions to meet the relocation costs to remove telecommunications apparatus from Fleming House (copy herewith) Page 7 of 274
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 29 MARCH 2022 1 29 March 2022 at 2 pm. A Remote Meeting of the JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES PRESENT Councillors D. Ashraf, Barclay, Brannan-McVey, M. Coyle, Douglas, Peter Kelly and Stocks. M. Quigley, Vice-Convener, UNISON; W. Shearer and J. Watson, UNISON, and J. Rooney, Unite (T & G). CHAIR M. Quigley, Vice-Convener, presided. IN ATTENDANCE Head of People and Organisational Development; Senior Employee Relations Adviser; Committee Officer, and Administrative Officer. APOLOGIES Councillors Duffy, Fisher and Paul Kelly, D. Whelan and S. Traynor, GMB, and A. Clark, UNISON. DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000 1. There were no declarations of interest. INTRODUCTION OF BREASTFEEDING POLICY 2. With reference to (1) paragraph 15 of the Minute of the meeting of the former Policy and Resources Committee held on 6 December 2018, when it had been agreed that options regarding the Council’s commitment to support awareness and engagement for breastfeeding be explored, and (2) paragraph 5 of the Finance and Resources Committee held on 10 March 2022, when it had been agreed that the Breastfeeding Policy be implemented from 4 April 2022, there was submitted a report by the Head of People and Organisational Development (a) advising that the new Breastfeeding Policy which would (A) enhance the current provisions presently in place within the Council, and (B) allow working mothers to continue to breastfeed on their return to work from maternity leave; (b) intimating that the aim of the Policy was to encourage employees returning to work from maternity leave to continue to breastfeed through the provision of appropriate facilities, and access to flexible working arrangements, in line with the Council's Smarter Working Policy; (c) highlighting the roles and responsibilities for managers and employees, and those issues managers need to consider in terms of practical arrangements which should be put in place, and (d) indicating that, where possible, requests would be accommodated for breastfeeding mothers with regards to flexible working; suitable facilities for breastfeeding, or expressing milk, and storage facilities for breast milk. Decided: (1) that the work undertaken to support the introduction of a formal Breastfeeding Policy, with the enhanced arrangements to be introduced from 4 April 2022, be noted, and (2) that the report be otherwise noted. AGENDA ITEM 2 Page 9 of 274
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 29 MARCH 2022 2 INTRODUCTION OF AN ELECTRIC CAR SALARY SACRIFICE SCHEME 3. With reference to paragraph 4 of the Finance and Resources Committee held on 10 March 2022 when, inter alia, it had been agreed that the Electric Car Salary Sacrifice Scheme be launched early 2023, there was submitted a report by the Head of People and Organisational Development (1) outlining the background to the employee benefits package, which would help the Council to attract, retain, and engage staff, and was also aligned to the Council's ambition and priorities, workforce policies and management practices; (2) informing that the Scheme was aligned to national policy drivers, and the Council Climate Plan; (3) indicating that the introduction of a salary sacrifice benefit for employees to participate in an Electric Car Salary Sacrifice Scheme would support colleagues to access the latest green energy car, in line with the Council's Net Zero ambitions while maximising their income, and (4) detailing within the report, and the Appendices to the report, all key considerations for employees, the Council as an employer, and the next steps in the process. Decided: (1) that the work undertaken to ensure that the employee reward package continued to align to the Council's business strategy and priorities, as well as the future workplace ambitions, be noted; (2) that the introduction of the Electric Car Salary Sacrifice Scheme and the link with the ambitions set out in the Climate Plan: ACT 2030 be noted; (3) that it be noted that (a) a robust procurement exercise would be carried out to identify a suitable provider to offer the car scheme benefit, and in line with other salary sacrifice benefits, with all associated risks being managed within the contract; (b) financial elements of the Scheme would be clarified; (c) Trade Unions would be engaged around the enhancements to the overall reward package, and (d) the Council would work towards the launch of the Scheme in early 2023, and (4) that the report be otherwise noted. REVISION OF LEARNING AND DEVELOPMENT POLICY 4. The Head of People and Organisational Development provided a verbal update on the revision of the Learning and Development Policy, which would include, and extend access to, the Council’s frontline staff, in line with the Council’s Skills Pledge. Thereon, Marie Quigley, UNISON, advised that, subject to the meeting to be held this week between Council Officers and Trade Union representatives, it was the intention of the joint Trade Unions to sign the “Trade Union Learning Agreement”. Decided: that the report be noted. Page 10 of 274
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North Lanarkshire Council Report Finance and Resources Does this report require to be approved? ☒ Yes ☐ No Ref AA/AR/GG Date 14/09/22 Local Public Holidays for Factories and Businesses 2023 From Archie Aitken, Head of Legal and Democratic Solutions E-mail RoseAn@northlan.gov.uk Telephone 07951 409714 1. Background 1.1 The Council requires to determine, annually, the dates to be set for local public holidays for factories and businesses. 2. Report 2.1 It is proposed that local public holidays for factories and businesses in 2023 be as follows:- Monday, 2 January and Tuesday, 3 January 2023 Friday, 7 April 2023 Monday, 1 May 2023 Monday, 29 May 2023 Monday, 17 July 2023 Monday, 26 September 2023 Monday, 25 December and Tuesday, 26 December 2023 Executive Summary The purpose of the report is to submit for consideration local public holidays in calendar year 2023 for factories and businesses in North Lanarkshire. Recommendations The Committee is asked to agree local public holidays in calendar year 2023 for factories and businesses in North Lanarkshire. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (15) Encourage the health and wellbeing of people through a range of social, cultural, and leisure activities AGENDA ITEM 3 Page 11 of 274
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3. Measures of success 3.1 Confirmation of local public holidays for factories and businesses in North Lanarkshire. 4. Supporting documentation 4.1 N/A Archie Aitken Head of Legal and Democratic Solutions Page 12 of 274
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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? 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 ☐ Page 13 of 274
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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 ☒ 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? Page 14 of 274
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North Lanarkshire Council Report Finance & Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref DB/JMcK/LS Date 14/09/22 P002.1: Corporate Asset Management Plan (CAMP) 2021-2026 From James McKinstry, Head of Asset & Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone 07939 281102 Executive Summary The Corporate Asset Management Plan (CAMP) provides an overview of how the Council is managing its assets to align to the Council’s Ambition Programme for 2021-2026 and seeks committee approval to adopt the plan. The CAMP presents an overview of how the asset base is being managed and how it is aligned to the strategic direction of the Organisation to both deliver and sustain an asset base that will meet the Council’s current and future requirements. The CAMP is one of the tools used to manage our asset base which will guide our activities during this period and links into the on-going review and development of the 5 year Capital Plan: • Maintain; • Rationalise; • Invest; and • Dis-invest. Recommendations It is recommended that the Finance & Resources Committee: (1) approve the Corporate Asset Management Plan covering the period 2021-2026. The Plan for North Lanarkshire Priority All priorities Ambition statement (22) Facilitate a North Lanarkshire wide approach to asset rationalisation, including with communities and partners AGENDA ITEM 4 Page 15 of 274
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1. Background 1.1 The Council is committed to preparing a Corporate Asset Management Plan, which sets out the strategic management of our assets and aligns with the Plan for North Lanarkshire. This assists in ensuring any investment is aligned to the strategic direction of the Council within the five year capital investment programme directly associated with our assets. 2. Report 2.1 The overall aim of Asset Management is to maintain and improve the condition suitability and utilisation of assets in terms of service delivery and best value. 2.2 The CAMP details the strategic objectives and how we manage our asset base and ensure our assets meet current and future operational needs and aspirations of the Council. 2.3 The CAMP is a council wide document that supports the development and implementation of a number of programmes of work across the Council. 2.4 The asset base and landscape of the Organisation is constantly evolving however the CAMP clearly outlines the directional change required within our assets to ensure we have a stable estate with the required infrastructure to deliver on both our operational requirements whilst shaping the Council’s future. 3. Measures of success 3.1 Services will evidence through their Programme of Work. 4. Supporting documentation Appendix 1- Corporate Asset Management Plan. James McKinstry Head of Asset & Procurement Solutions Page 16 of 274
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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? The CAMP links into the delivery of the Council’s 5 year Capital Investment Programme. 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? Any changes to assets that affect staff work locations are discussed with the relevant Head of Service. 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 Page 17 of 274
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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 ☐ If Yes, please provide a brief summary of the impact? The CAMP links into the delivery of the DigitalNL agenda across North Lanarkshire. 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? Good management of our assets has and will continue to deliver a reduction in our carbon footprint. 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? Individual risk registers exist in respective Project Boards to ensure that we manage our asset work programmes effectively. Page 18 of 274
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CORPORATE ASSET MANAGEMENT PLAN 2021-2026 (AUGUST 2022) Page 19 of 274
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Document Control Title Owner Contact Governance Group Author Contact Revision History Number Originator Date Review Commenced Revision description / record of change Document approvals Number Governance Group Date approval granted Date approval to be requested (If document still draft) Consultation Record (for most recent update) Status of document consulted upon Stakeholders consulted / date Strategic Alignment Next review date Review date Page 20 of 274
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3 Corporate Asset Management 2022 Contents page Foreword 04 Executive Summary 05 Corporate Property Estate 06 Investment Strategy 07 Strategic Objectives 08 Property Asset Management 10 Property Asset Valuations 11 Data Management 11 Low Carbon Agenda 12 Future Service Operations 13 One Campus 13 Town & Community Hubs 14 Office Rationalisation 16 Learning Estate 16 Private Public Partnership 17 Culture Estate 17 Leisure Estate 18 Community Estate 18 page Health & Social 19 Depot Estate 19 Commercial Estate - North Lanarkshire Properties (NLP) 20 Commercial Estate - North Lanarkshire Council (NLC) 21 Community Asset Transfer 22 Housing Assets 23 Fleet Assets 25 Road Assets 26 Tree Assets 27 ICT Assets 28 Conclusion 28 Appendix 1 North Lanarkshire Council Composite Capital Plan 2021-2026 29-30 Page 21 of 274
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4 Corporate Asset Management 2022 Foreword In North Lanarkshire we have a shared ambition. We want to be the place to Live, Learn, Work, Invest and Visit. This updated CAMP which covers the period of the existing 5 year capital plan, aligns with CIPFA best practice and with the Council’s assets having the second highest cost to the authority in relation to revenue expenditure, it is important that they are well managed, maintained and fit for our current and future purposes. Our updated CAMP covers assets over a breadth of functions including: y Office; y Culture; y Leisure; y Community Centres; y Education Facilities (Town & Community Hubs); y Support; y Depots; and y Commercial Properties. Where appropriate, we also look to work with other public sector organisations to share the use of our facilities to enhance integrated service delivery. As we move forward in developing our Town & Community Hub principles we would expect to see further service delivery improvements. Our Digital NL programme along with our office/agile working model, including the development of a “One Shared Campus” approach continues to have a significant impact on how we deliver services now and in the future and it is important that our asset planning strategy aligns fully with these work programmes. In managing our assets we have six overarching objectives: 1. Work towards the vision and ambitions of The Plan for North Lanarkshire; 2. Rationalise our asset base to better meet our current and future business needs; 3. Carry out tactical improvements to our retained assets; 4. Ensure that our retained assets are as carbon efficient as possible; 5. Continue to develop innovative methods of providing new facilities and only provide these where there is a compelling business need to do so; and 6. Demonstrate the requirements for any future capital investment to be directed towards meeting the above objectives. As we continue to develop our service operational models our assets are kept under constant review. As part of our CAMP we actively encourage Community Asset Transfer requests and this is an area we expect to grow further over the period of this plan. Tom Fisher Convener of Economy, Finance & Resources Page 22 of 274
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5 Corporate Asset Management 2022 Executive Summary North Lanarkshire is the place to Live, Learn, Work, Invest and Visit. This is our vision. This is the Council’s third Corporate Asset Management Plan aligned to best practice as per “A Guide to Asset Management and Capital Planning,” published by the Chartered Institute of Public Finance and Accountancy (CIPFA). The plan also aims to address the principles set out in PASS 55:2008, the revised default standard for asset management which set outs the generic framework for effective asset management planning. After staffing costs, the Council’s assets are the second highest cost to the authority. They play a pivotal role in the support of a wide range of diverse services to our residents. The quality of our assets has a direct relationship with the success of the services they support. Asset & Procurement Solutions has strategic responsibility to ensure all assets remain fit for purpose, are continuously improved and increasingly innovative and modern ways are found to manage and maintain them. The investment we place in our assets is reflective of the value we place on delivering services to our residents. North Lanarkshire is Scotland’s fourth largest local authority and Scotland’s largest social rented landlord with 36,000 council houses. The total resident population is 341,400 people and covers 47,648 hectares (181 sq miles) of land stretching from Kilsyth to Shotts. It is ideally situated in the heart of Scotland with first-rate connectivity to the rest of Scotland, the UK and the World. As the fifth most densely populated council area in Scotland, North Lanarkshire is divided into 21 wards which are represented by 77 elected members serving 9 community boards and has a property asset value exceeding £2.6billion. At January 2022 there were around 1000 operational assets totalling approximately £1.2b including Town & Community Campuses, Care Homes, operational depots and offices; along with non-operational assets such as surplus land and property. Across the council area, the roads infrastructure includes 1575 km of carriageway, 199 traffic management systems/pedestrian crossings, 2902 km of footpaths/footways, 542 of bridge structures and over 61,241 street lighting columns. The council’s leisure, cultural and community facilities range from indoor and outdoor sports facilities, community centres, museums, libraries, and theatres. The council’s technology infrastructure plays a significant role in the development of service delivery, and the technology assets include circa 28,000 laptops, 14,500 desktops, 600 servers, 7,800 mobile devices, 11,800 tablets and 1,320 desktop applications. Through effective governance, linked to the council’s Plan for North Lanarkshire, Asset & Procurement Solutions lead on an integrated approach to Strategic Asset Management Planning. This supports the delivery of the council’s ambitions and strengthen already established and effective working relationships across the council with our public sector partners. Page 23 of 274
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6 Corporate Asset Management 2022 NLC Estate SupportOffice LeisureCulture Community Centres Education Depots PPP/NLP/ Commercial Estates Corporate Property Estate This plan sets out the Council’s plans for the management, investment and disinvestment of our assets for the period 2021-2026. The management of our property assets involves a number of significant elements including the day to day operations of their use and maintenance, to significant renovation and the development of new buildings in line with the Council’s ambition for the ‘The Place, The Vision’ whilst developing disposal and regeneration strategies for surplus assets to tie in within the council’s overall Ambition Programme. The Plan for North Lanarkshire, which is kept under review, sets out clear ambition for future inclusive growth and development through investment in Towns and Communities. It outlines the changes that are required in order to deliver better services, address challenges and manage the reduction in public spending. It also recognises the importance of close partnership working with other agencies, communities and local people. Our property asset base is very diverse and occupied by various services and external agencies with individual service identities. As Hub operating models mobilise across the estate, this will strengthen an already strong and effective working relationship across the council and with our public sector partners form an operational estate accessible by our communities, our agile workforce and partners. During 2021, culture, leisure and the community estate was reintegrated to the Council with the strategic responsibility for North Lanarkshire Properties also being incorporated within Asset & Procurement Solutions thus providing the authority with the required strategic overview to ensure the asset base is aligned to The Plan for North Lanarkshire and create the one asset base to form a new and developing North Lanarkshire Estate. At present, the estate consists of 10 historical identities, however the future ambition is to make our properties one estate with plans to introduce a corporate landlord model to provide consistency in the operations of our building management and ensure the strategic direction and operations align with the wider strategic objectives of the authority in relation to our asset base and future operating models. Page 24 of 274
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7 Corporate Asset Management 2022 Investment Strategy Investment 2021-2026 The Council recognises the requirement for ongoing investment across its property estate and has identified investment of £327,576m in its property estate over the 2021 - 2026 period. This is an increase from the previous capital allocation recognising the requirement to invest not only in the future but the current estate. It has been identified through the capital bidding process that whilst new provision is a necessity, elements of the ageing estate requires to continue to be maintained and invested in as the delivery of the ambition of The Place, The Vision is progressed in-line with the long-term strategy of the council. Short- and medium-term strategic Investment in the current estate requires to continue during the transitional period. Alignment of investment is required to meet the required low carbon agenda and the need for investment in elements of the estate that are in the latter stages of modernisation programmes. Areas of investment are prioritised across the capital programme based on condition, utilisation and suitability. Page 25 of 274
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8 Corporate Asset Management 2022 Strategic Objectives In managing our assets across the council, it is important that these align closely with the overall plan for North Lanarkshire which sets out 25 clear ambition statements with property assets bridging all priorities and having a direct association with all key ambition statements. AMBITION STATEMENTS 25 high level ambition statements collectively support the shared ambition. These are aligned to the five priorities. Improve economic opportunities and outcomes Support all children and young people to realise their full potential Improve the health and wellbeing of our communities Enhance participation, capacity and empowerment across our communities Improve North Lanarkshire’s resource base 1. Ensure a housing mix that supports social inclusion and economic growth. 2. Refocus our town centres and communities to be multi-functional connected places which maximise social, economic and environmental opportunities. 3. Maximise the use of our marketable land and assets through improved development in business and industrial infrastructure. 4. Market and promote North Lanarkshire as the place to live, learn, work, invest, and visit. 5. Grow and improve the sustainability and diversity of North Lanarkshire’s economy. 6. Raise attainment and skills for learning, life, and work to enhance opportunities and choices. 7. Enhance collaborative working to maximise support and ensure all our children and young people are included, supported, and safe. 8. Engage children and families in early learning and childcare programmes and making positive transitions to school. 9. Invest in early interventions, positive transitions, and preventative approaches to improve outcomes for children and young people. 10. Engage with children, young people, parents, carers, and families to help all children and young people reach their full potential. 11. Increase economic opportunities for adults by understanding, identifying and addressing the causes of poverty and deprivation, and the barriers to financial inclusion. 12. Ensure our residents are able to achieve, maintain and recover their independence through appropriate supports at home and in their communities. 13. Improve preventative approaches including self- management and giving people information and choice over supports and services. 14. Ensure the highest standards of public protection. 15. Encourage the health and wellbeing of people through a range of social, cultural, and leisure activities. 16. Transform our natural environment to support wellbeing and inward investment and enhance it for current and future generations. 17. Ensure we keep our environment clean, safe and attractive. 18. Ensure our digital transformation is responsive to all people’s needs and enables access to the services they need. 19. Improve engagement with communities and develop their capacity to help themselves. 20. Improve the involvement of communities in the decisions, and development of services and supports, that affect them. 21. Continue to identify and access opportunities to leverage additional resources to support our ambition. 22. Facilitate a North Lanarkshire-wide approach to asset rationalisation, including with communities and partners. 23. Build a workforce for the future capable of delivering on our priorities and shared ambition. 24. Review and design services around people, communities, and shared resources. 25. Ensure intelligent use of data and information to support fully evidence based decision making and future planning. Page 26 of 274
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9 Corporate Asset Management 2022 The Corporate Asset Management Plan for 2021-2026 contributes to the achievement of the Council’s vision and ensures our property assets continue to play an active role in the delivery of services within facilities suitable to deliver current and future operating models. The new landscape of the corporate estate will fully align to the DigitalNL transformation programme which has seen investment in new technologies to create a more collaborative way of working and delivery of services that meets the needs and expectations of our communities in an agile and responsive manner. A new building operating model has been mobilised to maximise and fully utilise the office space available within our remaining estate. This will be further supported by provision created across our campuses to support agile working which will help prepare staff transition to the One Shared Campus aligned with the council’s ambition to operate from a single civic base. To deliver on the Council’s ambition, our future asset management prioritises six overarching objectives: 7. Work towards the vision and ambitions of The Plan for North Lanarkshire; 8. Rationalise our asset base to better meet our current and future business needs; 9. Carry out tactical improvements to our retained assets; 10.Ensure that our retained assets are as carbon efficient as possible; 11.Continue to develop innovative methods of providing new facilities and only provide these where there is a compelling business need to do so; and 12.Demonstrate the requirements for any future capital investment to be directed towards meeting the above objectives. Page 27 of 274
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10 Corporate Asset Management 2022 Property Asset Management Property assets are essential to the services delivered by North Lanarkshire Council. Managing these assets is a structured process that seeks to ensure best value; continuous improvement in performance; achievement of our corporate priorities; and service modernisation. It is recognised that: y Managing property assets effectively is a key element of supporting service delivery; y Property assets are a key driver of service transformation and modernisation; y The value of property assets both owned and leased by the council is significant; and y Properties are at the centre of public perception of our local authority. The property portfolio consists of two distinct types of property operations: Operational properties Those that are used to directly support Council service delivery such as schools, partnership centres and depots together with those operated by partner organisations. Outsourced and non-operational properties These properties include those used to enable the council to support local business space and economic development, indirectly support corporate or community planning objectives (i.e., third sector accommodation) via North Lanarkshire Properties providing a revenue and investment stream to assist further regeneration decisions. This category also includes surplus assets for disposal to support capital programmes and strategic land development. Influencing factors The management of our Asset Management objectives is influenced by a variety of factors, summarised as follows: y The Covid-19 pandemic and the restrictions this has placed on the use of buildings; y Regulatory and statutory changes at both UK and Scottish Government level occurring throughout the life of this plan. These will be responded to and may affect how we manage and improve our property assets; y Best practice guidance issued by professional organisations or other relevant bodies; y Costs for energy, construction materials and professional advice will vary during the plan period with generally upward inflation pressures and therefore need to be considered on an ongoing basis; y Community Empowerment and in particular asset transfer is encouraged particularly where communities take responsibility for the management of local assets; y Services modernise in line with The One Plan to deliver the Town & Community Hubs ambition; y Services evolve to new ways of working to align with Hub modelling; y Services support the delivery of the office rationalisation programme; y Efficiencies in resource usage will require to be achieved to reduce long term operating costs; and y The council is committed to reducing carbon and improving the energy efficiency of our buildings. This will influence planned improvement and construction of new assets with renewable energy sources. Page 28 of 274
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11 Corporate Asset Management 2022 Property Asset Valuations There is a statutory requirement to value all property assets annually with properties surveyed on a 5-year rolling programme in line with RICS good practice. Non-domestic properties have seen the asset value of the portfolio increase from £1b to £1.2b over the last 3 years. Domestic properties have also seen an asset valuation increase from £900m to over £1b over the last 5 years with housing stock increasing slightly due in part to the cessation of the right to buy scheme in 2016, the introduction of council buy-back scheme and the new supply programme. The new supply programme and the Scottish Government Incentive schemes to purchase properties in the open market has seen the housing stock increased to nearly 37,000 with an ambition to achieve 5000 new houses by 2035. Data Management Assets have historically been aligned to a primary service area however the Organisation has undergone various re-structures with a number of property assets being aligned to new service identities. Our estate identity has evolved in recent years and it is now the case that all our property assets are held on a corporate basis to promote shared utilisation, economy and effectiveness. This coupled with the recent integration of the Culture and Leisure estate provides a more One Council approach to Asset Management. Page 29 of 274
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12 Corporate Asset Management 2022 Low Carbon Agenda Since 2015/16 the council has developed a well-focussed approach to reducing its carbon emissions, building on previous years. This has seen improvements in areas such as governance, leadership and performance. A separate Climate Action Plan oversees this work and the work contained within the council’s capital programme with buildings being our largest carbon emitter. The Corporate Asset Management Plan provides significant input to reductions in the carbon emissions which the council makes. A Scottish target of net zero emissions of all greenhouse gas has been set for 2045. However, in recognition of the importance of climate change, the council declared a climate emergency in 2019, committing it to reduce council carbon emissions to zero by 2030. New legislation across a number of sectors including transportation and housing will inform the way we design new buildings and the refurbishment of our existing stock towards zero carbon through legislative and policy requirement. The council has made good progress in its climate journey and this is supported in the 56,714 carbon tonnes equivalent (tco2e) reduction of its reported footprint (Figure 1) which is nearly half of emissions reported in its baseline year of 2015/16. There has been steady project delivery via the Non-Domestic Energy Efficiency Framework as well as the street light conversion programme. Internal policies have impacted on the annual footprint such as the ‘bin amnesty’ in 2017/18 and the increase in miles to be reported due to changes to business mileage in 2021. The council has benefited from the Clyde Valley Residual Waste Project in that Municipal Waste to Landfill emissions has been reduced by 77.24%. There are other influences which enhance our progress such as the decarbonisation of the electricity grid that has resulted in a 49.4% reduction in the emissions generated by 1 kilowatt. This combined with a 24.88% reduction in electricity consumption has resulted in an overall reduction of 61.99% in electricity related emissions. The two examples highlighted account for 44.71% reductions in the emissions from the baseline. 60,361 TCO2E 8.1% 20.1% 71.8% Buildings and Facilities Transport Waste Source: Public Sector Climate Change Duties Report Page 30 of 274
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13 Corporate Asset Management 2022 Future Service Operations One Campus The Council’s ambition is to transfer its Civic operations to a new campus shared with other public sector agencies. The office rationalisation programme is progressing to deliver immediate efficiency savings and prepare for this transition. The strategic ambition of a proposed Shared Campus is a partnering arrangement with other public service providers engaging and sharing knowledge and resources along with providing staff with an improved resource base to deliver public services. The operations of council services within the One Campus will be supported by the ongoing development of Town and Community Hubs to ensure council services continue to be provided to the community, within the Communities. It is anticipated that future proposals for a One Campus location will presented to Council late 2022 / early 2023 following a completed option appraisal following engagement with the commercial marketplace. Page 31 of 274
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14 Corporate Asset Management 2022 Town & Community Hubs As part of the Council’s Ambition Programme there is a well-established Town & Community Hub programme with strong governance through a Project Board and reporting to committee. This area of the programme of work is responsible for developing short, medium and long term strategies for improving and replacing pre-1996 assets. Guiding Principles Hubs represents the biggest investment in infrastructure across North Lanarkshire. They are also at the heart of towns and communities. Given the ambition to replace every school not replaced or remodelled since 1996, our vision is to make these places for the wider community to utilise rather than only the school community. Town and Community Hubs will be co-located or combined and integrated with other community and partnership assets with all post construction 1996 assets being utilised to support the HUB programme and operating model. The design model uses six guiding principles: y Inclusive, universal provision; y Sense of community ownership; y Maximum availability usage; y Designed with the community; y Tailored, bespoke, representative; and y Maximise services on offer. Prioritisation Matrix This work includes determining how each individual project can be scored, and therefore compared, to other potential projects. This list was compiled with an initial focus on the highest weighing factor in the matrix – that of ‘socio-economic and wellbeing’. Further work is carried out on the list of potential projects, to further refine the list, using five further prioritisation inputs. These assessments include: 1. Assessment on deliverability of projects; 2. Ability to consolidate older assets into the new hub; 3. Fit with other strategic programmes such as town centre visions, parks, or housebuilding programme; 4. Review of school core facts: Condition, Occupancy, Suitability; and 5. Potential external funding – i.e. through LEIP. Details of the prioritisation matrix were reported to Committee in September 2021. Delivery Programme Policy and Strategy Committee approved the strategy, guiding principles, and prioritisation matrix linked to the Town and Community Hub Programme. In line with programme of work, updates regarding this programme are progressed through two strands: activity related to the strategy is progressed via the Policy and Strategy Committee; and activity related to hub delivery projects is progressed via Education and Families Committee. Integrated Hubs A set of guiding principles was designed and early hub adopters were identified. These are now in operation and are used to further develop the design proposals for hubs to be integrated. 3 locations across the authority were initially identified for mobilisation: y Calderhead High School, Shotts; y St Andrews High School, Coatbridge; and y Cumbernauld High School, Cumbernauld. Page 32 of 274
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15 Corporate Asset Management 2022 A further 3 early adopters are scheduled to be mobilised throughout 2022. y Broadwood Sports Facility, Cumbernauld; y Caldervale High School, Airdrie; and y Clyde Valley High School, Wishaw. Hub Delivery Programme Phase 1 This phase of the programme is now complete with projects within phase 2 now at the delivery stage following the completion of the required statutory obligations and consultations. Phase 2: Town & Community Hub Projects Project Contract Stage Contract Construction / Programme dates Key Activities in period / planned next Town & Community hub programme Newmains Community Hub – Procured via Hub South West Construction stage Target date for handover: Dec 22 Works started on site in July 2021. Chryston Community Hub and Muirhead Health Clinic- Procured via Hub South West Construction stage Target date for handover: Aug 23 Works started on site in February 2022. Riverbank Community Hub, Coatbridge - Procured via Hub South West Construction stage Target date for handover: Aug 23 Works started on site in January 2022. Orbiston Community Hub, Bellshill – Procured via Hub Pre- construction phase 1 Tier 1 contractor appointment – February 22 Hub Stage 1 complete Abronhill Community Hub Intelligent brief finalising Design Team appointment: December 21 Due to the complex nature of the site, several workstreams will run in parallel to determine optimum solution for the new community hub. The intelligent brief process will therefore include: Engagement with community groups; site surveys; design option appraisals; and phasing considerations. St Kevin’s Community Hub: Incorporating St Kevin’s PS (Coatbridge) Intelligent briefing Pre- Construction phase 1 Hub stage 1 started: Expected construction site start Phase 3: Town & Community Hub Projects Project Description Status Gartcosh Community Hub: Incorporating Gartcosh PS (Northern Corridor) ongoing site issues continue to be investigated. Ravenscraig Community Hub: Incorporating two new primary schools within Ravenscraig (Motherwell) Statutory Consultation completed and approved. Town Hub sites Public briefings carried out in each community board area across North Lanarkshire and reported to Committee. Page 33 of 274
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16 Corporate Asset Management 2022 Office Rationalisation The Council decision to commence rationalistion of its estate in 2017 has seen a 15% reduction in its office base and increased utilsation of the remaining buildings by 40%. The process has delivered over £2m in efficency savings from this period with future savings of £800k included in the 2022/23 Financial year budget. The office rationalistion programme has provided opportunity for sites to be redeveloped for social rented housing across a number of our former and future office sites assiting with the council’s ambition to delvier on an additional 5000 social rented houses by 2035. The impact of Covid-19 created opportunity and accelerated the councils reduction of its office footprint with the introduction of agile working reducing the overall office space requirement further. It is expected that as we embed the new Hub operating model accross our post 1996 estate and the mobilisation of digitalised services, this will further reduce the need for front line servcies to be provided in its natural form with limited face to face interaction with service users and the hub operating model delivering council services across its communities. Learning Estate The education estate operates under the umbrella of 2 operating models, 155 campuses are managed fully by the council and 23 campuses are managed through a private public partnership arrangement. Given the ambition to replace every school not replaced or remodelled since 1996, our vision is to develop all campuses for the whole community rather than only the school community. On an annual basis all councils must produce core fact data about the condition, utilisation and suitability of schools. Page 34 of 274
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17 Corporate Asset Management 2022 Private Public Partnership A modernising estate programme was carried out creating 23 campuses which have a contracted maintenance term alongside other contractual terms. This area of the estate forms part of the foundation in supporting the ambition of The Vision, The Place as their design and infrastructure will also support the future operating models across the authority and will be early adopters of the hub operating model that is being mobilised across our estate as they are facilities designed and built for the future. Physical adjustments will be undertaken to deliver on the operational requirements with, for example, current sports and leisure facilities supporting local community activity. Culture Estate The Culture estate supports creative arts across North Lanarkshire and has seen considerable investment including the Lantern House which opened in the new Cumbernauld Campus in 2021. A community partnership was formed to manage the provision. Over the period of this plan, in conjunction with all other assets, future operating models and an assessment of community need will require to be carried out. All facilities will require to be reviewed to ensure provision is both suitable and fit for purpose to serve community requirements. The Civic Theatre is directly associated with Motherwell Civic Centre and will require to be included in any option appraisal for future use/service delivery following the development of the One Campus should there be an outcome to relocate from this site. Page 35 of 274
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18 Corporate Asset Management 2022 Leisure Estate The leisure estate operates across the localities and includes sports centres, leisure centres, pavilions, swimming pools and outdoor play areas. As the new hub operating model develops these facilities may be integrated to hub projects whilst allowing access for community use Community Estate Community assets have differing operating models, utilisation levels and opening times. Future operating models are under review to help ensure that all assets can be fully and strategically utilised by the community. Page 36 of 274
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19 Corporate Asset Management 2022 Health & Social Care This element of the estate primarily supports the wider social work activities including integrated day centres, residential care and adult services. Whilst there is an aspiration to integrate an element of this service area within the community hub operating model, there are a number of specialisms within this field of work that require to be isolated to ensure the appropriate care and support is provided. However, this does not restrict a future review of the asset base and current utilisation of the facilities. Similar to all other service areas, service redesign and reconfiguration of operations continue during the period of this plan to deliver efficiency savings identified within the operational asset base. Depot Estate The depot estate has reduced its asset base by over 50% in the last 5 years through the depot rationalisation programme with integration opportunities identified ensuring the remaining site location meets the geographical requirements of operations. Investment within the 2021 -2026 capital programme has been identified to rationalise and modernise the depot estate further to fulfil the future operational needs. Moving forward, the estate will require to be aligned to create a centralised depot provision to meet the future operational needs of an electric fleet and the operations of both labour workforces within waste management and land services. Page 37 of 274
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20 Corporate Asset Management 2022 Commercial Estate - North Lanarkshire Properties (NLP) This area of the estate is manged by an Arm’s Length External Organisation (ALEO) of the Council with an asset valuation of £65m. Whilst North Lanarkshire Properties are within sole ownership of the council, they operate independently and are governed by a board which has elected member representation. The estate is predominantly associated with industrial units, retail and business centres generating over £6.3m of rental income per year with an asset value of £65m and a debt provision of £36m as at April 2021. Whilst there has been regular investment within the estate over the last 5 years, 12% of its stock is not in operational use due to capital investment requirements. Partnership working with NLC continues to develop similar ambition and strategic direction to deliver on both organisations ambition to make North Lanarkshire the place to Live, Work, Invest and Visit. Over the last 3 years, the partnership has delivered additional industrial premises to support new business start-ups with further developments scheduled for 2023. The rationalisation of the estate has further supported town centre regeneration with the disposal of properties prominently sited within town centres. The commercial activity across this section of the estate has been challenging during the Covid 19 pandemic due to its diverse client base. Whilst the industry has seen growth within the industrial sector, the hospitality and retail sector have presented numerous challenges across the business area to sustain their tenancies. However, through successful negotiations and support from NLPs primary lender, NLP has successfully fulfilled its financial obligations to its current lenders. The ALEO enters its 10th year anniversary and requires to re-finance its loan arrangement in October 2023. A Project Team has been formed to ensure appropriate governance is in place and obtain the required funds to manage its current loan requirement. Page 38 of 274
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21 Corporate Asset Management 2022 Commercial Estate - North Lanarkshire Council (NLC) The council has retained an element of the commercial estate that is mixed with legacy issues from former authorities. Lease arrangements with various external agencies and community groups require to be aligned with current market conditions. A review on the status of this section of the estate will be carried out to ensure the appropriate support is in place to sustain these historical lease arrangements where peppercorn rents were previously agreed. The estate has seen limited investment by its current tenant base and whilst it historically supports community activity, the sustainability of these groups requires to be realigned with the council’s ambitions within our future operating estate and whether other assets would be better placed to support the group. Page 39 of 274
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22 Corporate Asset Management 2022 Community Asset Transfer As the Council continues to rationalise its estate and modernise service delivery through the digitisation agenda and deliver on efficiency savings, the increasing need for third sector groups, legislation allows for community formed groups to adopt and manage any government building to deliver services. Whilst the rationalisation process of our estate is not necessarily cessation of service delivery, it is evident that many groups prefer single use facilities however this is not within the council future operating model. The majority of the school estate is under- utilised due to historical operating models. The hub operating model will create increasing opportunity for groups, to make better use of these facilities to support community activity. Whilst numerous community groups reference community asset transfer as a preferred option to closure of community, leisure and culture facilities, the reality of groups having the financial ability and expertise for a property asset to transfer to a group has a low success rate. As such there is a need to review our focus in community engagement to work with community groups to develop better utilisation of our Town & Community Campuses. Through our community partnership teams, our policies on lease and transfer arrangements of property assets to community groups continues to be reviewed alongside Community engagement policies to ensure close alignment with the Plan for North Lanarkshire. Page 40 of 274
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23 Corporate Asset Management 2022 Housing Assets Guided by the Scottish Housing Regulator’s ‘recommended practice’ on strategic asset management, the cross-service Housing Asset Management Working Group began to review its strategic housing asset management approach in late 2019. This work culminated in the development of a high level plan reported to council committee which sets out the Council’s ambitions and the key actions which will be delivered over the next five years. Inspired by the recent centenary of Council housing in North Lanarkshire, the vision set out in the Housing Asset Management Plan, of ‘homes fit for the future’, articulates our ambitions to modern day challenges and embrace technological change. This Housing Asset Management Plan is realised by delivering on five key priorities: y We help deliver the homes North Lanarkshire needs to grow; y We provide high-quality, well-maintained homes; y We tackle climate change and fuel poverty; y We improve our systems and our use of data; and y We will deliver homes for the future. The Housing Asset Management Plan contains 43 separate actions, delivering on 15 individual milestones. These are a mix of actions which have previously been committed to, with the Housing Asset Management Plan providing a framework for strategic review and reporting, and new ones identified during the development of the Plan. The Housing Asset Management Plan has been endorsed by the North Lanarkshire Federation of Tenants’ and Residents’ Association and is governed by Council Committee. The plan for managing our housing assets over the five years between 2021 and 2026, aligns with both our Corporate Asset Management Plan and The Plan for North Lanarkshire and other key strategies, policies and plans. Together this strategic policy framework ensures that work is aligned with our priorities and enables the required resources and working practices needed to facilitate delivery of the shared ambition. Since its inception more than a century ago, the primary role of Council housing has been to meet the needs of households and communities in housing need. Today, 36,000 homes – housing almost three in every ten (29.3%) households in North Lanarkshire - are owned and managed by the Council, with nearly 8,000 more households on the waiting list for social rented housing in the area. This changing demographic profile will have significant implications for housing and for care in the area - with increasing need and demand for smaller, accessible, and digitally connected homes. At the same time, analysis of the waiting list finds that demand for flatted accommodation, particularly in tower blocks, continues to decline. The Council is responding to these trends in a number of ways. This includes through our NL Homes Programme, which aims to deliver 5,000 new affordable homes by 2035. The Programme began in 2010, when 20 new homes were delivered at Main Street and Spruce Way in Holytown, the first new Council houses in a generation. The programme accelerated from 2016 with the Council making a significant contribution to national targets for new social and affordable homes. In total, we have built or bought around 1,200 homes and we will continue to deliver new homes at pace, at least 10% of which will be built to ‘wheelchair standard’. Page 41 of 274
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24 Corporate Asset Management 2022 Plans for the next 5 years include for 132 new homes on the site of the former St Columba’s school in Coatbridge, 100 homes to help regenerate the Gowkthrapple area in Wishaw and new developments in towns the length and breadth of North Lanarkshire - from Stepps in the west to Shotts in the east. Performance The Council provides high quality, well-maintained homes and has a legal duty to repair and maintain our homes, to meet obligations set out in tenancy agreements and statute, and our tenants rightly also expect timely maintenance and responsive repairs services. This is reflected in the importance given to maintenance and repair matters in the Annual Return on the Charter. (ARC), a yearly exercise coordinated by the Scottish Housing Regulator to assess social landlords. Landlords must report on 32 separate performance indicators, many of which directly relate to the condition of homes and how they are managed. Key indicators include the: Average length of time taken to complete non-emergency repairs; Percentage of reactive repairs carried out during the last year which were completed right first time; Number of failures to meet annual requirement to carry out a gas safety check, where required; and Percentage of tenants satisfied with the repairs and maintenance service which they have received. Investment Investment work is delivered as part of the capital investment programme which directs millions of pounds each year into improving Council homes. Over the past five years this includes nearly £69m on new bathrooms, £56m on new windows and doors and more than £45m on new kitchens. We expect to deliver £295m investment over the next five year period, with a particular focus on replacement roofs and render, new heating systems and ensuring our homes are fire safe. During this period, we will also re-clad a number of our tower blocks and upgrade all of our sheltered plus complexes With some limited exceptions (where properties are exempt or in ‘abeyance’), all of our homes meet the Energy Efficiency Standard for Social Housing (EESSH). We will bring these properties up to as high an energy performance standard as we can and ensure that our remaining homes meet the standard. Initial estimates suggest that it will cost £225m to do so with measures ranging from the installation of low-energy lighting to maximise insulation levels in our homes and installing low carbon and renewables technologies. TABLE 1: ARC PERFORMANCE FOR SELECTED INDICATORS, 2019/20 Indicator NLC Average Difference SHQS compliance 98.8% 94.4% +3.6% Repairs right first time 98.3% 92.4% +6.1% Satisfaction with repairs and maintenance service 97% 91.3% +5.7% Page 42 of 274
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25 Corporate Asset Management 2022 Appendix 1 – North Lanarkshire Council Composite Capital Plan 2021-2026 Fleet Assets The Council has a vehicle replacement programme in place for all light commercial vehicles which will see a gradual move to an entire electric fleet by 2027/28. The graph below provides an indication as to the way in which this will be achieved. 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 CARS & LIGHT COMMERCIAL VEHICLES Diesel Electric 58 316 55 312 62 286 39 273 82 231 231 62 312 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 HGV Diesel Electric 92 85 83 83 83 83 4 13 32 47 79 70 51 36 2028/29 2029/30 2030/31 The move towards replacement of the heavy goods vehicles (HGV) in the Council fleet will be somewhat slower. There are several reasons for this, price, technology, along with the current debate between electric and hydrogen. The graph below provides an indication as to where the HGV fleet will be positioned up until 2030/31. The development of depots will also include future proofing the facilities to ensure they are able to accommodate the current and future plans of the Council to move towards an electric / low emission fleet in line with Government guidance and to assist in delivery of the Council’s ambition to achieve net zero emissions by 2030. Page 43 of 274
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26 Corporate Asset Management 2022 Road Assets The Road Asset Management Plan (RAMP) records the Council’s plans for the maintenance of the Road infrastructure. The purpose of the RAMP is to formalise strategies for investment in road asset groups, define service standards and to improve how the road asset is managed, thereby enabling a better value for money road service to be delivered. The public road network in North Lanarkshire is the largest and one of the most visible community assets for which the council is responsible with a gross replacement cost in excess of £2.6 billion. The Council’s Road assets are: Carriageways - 1575 Km Footways - 2,282 Km Footpaths - 620 Km Structures - Bridges - 542 Street Lighting - 61,241 Traffic Management Systems - 56 Junctions and 143 Pedestrian Crossings. The asset grows each year due to the adoption of new roads and construction of new Road links. Over the last 5 years the following additional assets have been adopted by the council: Carriageways 35 km Footways 60 km Street Lighting 3,500 New assets create the need for maintenance, management and associated funding in future years as these additional assets age. Carriageway Condition The carriageway condition is measured by the road Condition Indicator. This is a machine survey carried out nationally through a collaborative Contract. North Lanarkshire’s Performance over the period is as detailed below: The percentage of the road network that should be considered for maintenance treatment overall is the annual summation of the red and amber figures. Page 44 of 274
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27 Corporate Asset Management 2022 Tree Assets North Lanarkshire Council has a significant tree resource, much of which is mature or over mature. Across the Council the full extent and condition of the asset is entirely unknown and not under any proactive management. Tree failure has been identified as a risk in Environmental Assets Risk Register and undoubtedly exists as an issue across any tree asset owner, as significant tree assets also sit within other Council services such as Housing and Education. The establishment and implementation of a centralised co-ordinated and managed tree asset management strategy will address this and serve to minimise the liability to the Council. The Council will use the QTRA system to deliver its strategy. QTRA is a commonly used industry standard tool which assists tree safety inspections and management and has been adopted by many local authorities in the UK. The system applies established and accepted risk management principles to tree safety management. An initial desktop GIS analysis identified areas of Council tree assets. Following this a zoning exercise was carried out, with survey areas categorised into high, medium and low risk zones based on site usage and non- motorised access this contributes to a cost-effective approach to tree survey assessment. Risk Categories Risk Category Risk Criteria Potential Target Zones Frequency of Inspections High High volumes of vehicle traffic Areas of high public non motorised use Occupied buildings A roads, dual carriage way Railway lines School grounds Town & Country Parks (roads and core paths, other paths with high footfall) Residential/Commercial buildings Every 3 years Medium Moderate volumes of traffic Areas of moderate public use B roads Cemeteries Local Nature Reserves & other greenspaces (paths) Car Parks Every 5 years Low Low volumes of traffic Areas of low public use Rural roads Rural Footpaths Reactive Page 45 of 274
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28 Corporate Asset Management 2022 ICT Assets All of the Council’s hardware has asset tags applied at time of deployment with the exception of mobile phones. A CMDB (Configuration Management Data Base) is held within the Council’s IT Service Management tool which stores information on hardware used within the organisation. This includes information on end user devices (laptops and desktops), servers, network switches and firewalls. Assets are added to the CMDB as part of the deployment process and are removed from CMDB as part of the disposal process. Further to this, the Mobile Device Management solutions used within the environment (Microsoft Intune for Corporate and MobileIron for Education) holds information for the mobile device estate (mobile phones, Samsung Tablets & iPads). Conclusion In developing the updated 5-year Corporate Asset Management Plan covering the areas of: Corporate Property; Housing Assets; Fleet Assets; Environmental Assets; and ICT it is important to recognise that although The Plan covers a 5-year period, this is an evolving document and it is important to review and monitor it on an ongoing basis. The Council’s Ambition Plan has a key impact on the use of our assets going forward with fundamental changes in service delivery required to be implemented. As well as delivering on this Ambition, the Corporate Asset Management Plan provides a clear steer as to how we manage our assets both effectively and efficiently. The Corporate Asset Management Plan will be reviewed on an annual basis with updates provided on key areas to Council committee on a regular basis. Page 46 of 274
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29 Corporate Asset Management 2022 Project / Theme 2021/22 £000 2022/23 £000 2023/24 £000 2024/25 £000 2025/26 £000 Total £000 Asset and Procurement Solutions Maintaining Existing Assets - windows, re-roofing, re-wiring and condition survey works for the Council’s building assets 5,486 8,200 6,463 7,603 5,917 33,669 Carbon Management 240 1,600 500 2,686 2,686 7,712 Office Rationalisation 134 0 2,758 0 0 2,892 Shared Campus 0 0 0 9,000 0 9,000 Leisure Development 402 1,286 767 500 84 3,039 Health & wellbeing and digital classrooms 269 460 351 0 0 1,081 Rationalisation including ASN & Social Work 1,082 3,653 2,933 0 0 7,669 Curriculum Development 72 801 400 296 0 1,569 Sustainable Estate 1,080 1,333 1,510 1,205 600 5,728 Outdoor Education and Outdoor Spaces 585 267 390 135 0 1,377 Future Capital Receipts Investment 532 670 370 320 220 2,112 Design Fees 1,493 1,533 1,563 1,594 1,625 7,809 1140 Early Learning and Childcare Expansion 7,406 39 39 39 39 7,561 Demolitions 131 1,005 180 1,538 100 2,954 Sub-Total Asset and Procurement Solutions 18,912 20,847 18,225 24,916 11,271 94,171 Town and Community Hubs Town and Community Hubs - development of campus sites across North Lanarkshire in consultation with local communities 15,504 60,999 71,337 88,495 4,874 241,209 Total Town and Community Hubs 15,504 60,999 71,337 88,495 4,874 241,209 Page 47 of 274
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30 Corporate Asset Management 2022 Project / Theme 2021/22 £000 2022/23 £000 2023/24 £000 2024/25 £000 2025/26 £000 Total £000 Environmental Assets Infrastructure and Transportation improvements, major maintenance and development including traffic signals, pedestrian crossings, active travel, bridge, drainage and flood risk management 8,551 4,215 3,489 2,427 2,491 21,174 Cemeteries Infrastructure 388 3,071 1,000 955 205 5,618 Road Asset Management including street lighting, road improvements and gateway signage 9,563 13,848 8,321 4,059 4,059 39,850 Drumbreak Marsh River Restoration Project (SEPA Funding) 3,425 0 0 0 0 3,425 Play area equipment and surface renewal 474 150 150 150 150 1,074 Bin rationalisation project and replacement 850 25 25 25 25 950 Environmental Assets replacement of plant and machinery 791 482 765 467 442 2,947 Parks Masterplan 1,008 1,094 1,663 1,873 1,445 7,084 Sub-Total Environmental Assets 25,050 22,885 15,413 9,956 8,817 82,122 Regulatory Services and Waste Solutions Contaminated land and pollution control 295 349 360 372 384 1,760 Vehicle replacement programme 1,988 1,369 3,842 5,861 1,774 14,834 Depot rationalisation and investment 226 3,727 3,399 0 0 7,352 HWRC equipment 786 177 25 25 25 1,038 Landfill Provision 52 0 0 0 0 52 Sub-Total Regulatory Services and Waste Solutions 3,346 5,622 7,626 6,258 2,183 25,036 Planning and Regeneration Economic Regeneration 8,791 17,673 4,865 2,460 1,360 35,148 City Deal Programme 10,504 24,176 22,039 43,171 65,334 165,224 City Deal - East Airdrie Link Road (NLC-funded increase) 0 1,500 0 0 7,500 9,000 City Deal - Ravenscraig Infrastructure Access (NLC-funded increase) 0 3,350 0 0 14,250 17,600 Antonine Wall Project 15 15 0 0 0 30 Sub-Total Planning and Regeneration 19,309 46,714 26,904 45,631 88,444 227,002 Communities Community Board Project Investment Fund 1,752 2,341 1,500 1,500 1,500 8,593 Sub-Total Communities 1,752 2,341 1,500 1,500 1,500 8,593 Page 48 of 274
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31 Corporate Asset Management 2022 Project / Theme 2021/22 £000 2022/23 £000 2023/24 £000 2024/25 £000 2025/26 £000 Total £000 Housing Property and Projects (Non-HRA) Water Quality Management 100 100 100 100 100 500 Sub-Total Housing Property and Projects 100 100 100 100 100 500 Total Enterprise and Communities 83,974 159,508 141,105 176,856 117,190 678,633 Adult Social Care Equipment and Adaptations 2,020 2,600 2,400 2,420 2,200 11,640 Total Adult Social Care 2,020 2,600 2,400 2,420 2,200 11,640 Chief Executive’s - Business Solutions Line of Business (LOB) System Portfolio 427 2,963 780 583 140 4,893 End User Device (EUD) Refresh 345 1,538 1,649 1,110 600 5,243 Digitisation & Innovation 4,852 10,509 4,791 1,276 736 22,163 Total Chief Executive’s - Business Solutions 5,624 15,011 7,219 2,969 1,476 32,299 Corporate Contingency 0 0 2,363 0 418 2,781 TOTAL GENERAL SERVICES CAPITAL PROGRAMME 91,618 177,119 153,088 182,244 121,284 725,354 HRA Mainstream Investment Programme (indicative for Years 3 - 5) 54,585 60,745 66,453 66,453 66,454 314,690 HRA New Supply (based on 2020/21 investment levels) 40,633 40,633 40,633 40,633 40,633 203,165 TOTAL COMMUNITY INVESTMENT 186,836 278,497 260,174 289,330 228,371 1,243,209 Page 49 of 274
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This document can be made available in a range of languages and formats, including large print, braille, audio, electronic and accessible formats. To make a request, please contact Corporate Communications at: corporatecommunications@northlan.gov.uk ’S urrainn dhuinn an sgrìobhaidh seo a chur ann an diofar chànanan agus chruthan, a’ gabhail a-steach clò mòr, braille, cruth claisneachd agus cruthan dealanach agus ruigsinneach. Gus iarrtas a dhèanamh, cuir fios gu Conaltradh Corporra aig: corporatecommunications@northlan.gov.uk Niniejszy dokument można otrzymać w wielu różnych językach i formatach, w tym również dużym drukiem, alfabetem Braille’a, w wersji dźwiękowej, elektronicznej i w innych dostępnych formatach. Prośby należy składać na ręce zespołu ds. komunikacji drogą elektroniczną na adres: corporatecommunications@northlan.gov.uk 此文件可以多种不同语言和格式提供，包括大字体、点字、音频、电子和易读格式。 如想提出请求，请联系企业传讯部：corporatecommunications@northlan.gov.uk ۔ ہے سکتا جا ایکیا ہمار فر � یمیں ںتورصو ئیسار بل�قا روا فر�ار ٹ یلیکٹرا ،وی�ڈآ ، ی�ربل� ،فوحر ےرٹبل� لبشمو ںتورصو روا ںنوابل�ز مختلف کو رفری�وستاد سا corporatecommunications@northlan.gov.uk : ی ئیں �مار فر � بطہار پر سا سے رفر�فر�ش�ی�کی�فر�و یکمیو ٹ ی�رپورکا یلیے کے تستاخورد مکر ہاربل� CC_2022_00162 Produced by NORTH LANARKSHIRE COUNCIL Asset & Procurement Solutions Ground Floor Civic Centre Windmillhill Street Motherwell ML1 1AB e. sullivanc@northlan.gov.uk NORTHLANARKSHIRE.GOV.UK Page 50 of 274
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North Lanarkshire Council Report Finance & Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref JO’N/HL Date 14/09/22 Active & Creative Communities – ActiveNL Staff Memberships From Janie O’Neill, Head of Education (South) E-mail liddleh@northlan.gov.uk Telephone 07973726496 Executive Summary This report sets out a proposal to introduce a new, reduced, membership rate for North Lanarkshire Council employees to access health and fitness services under Active NL, Active & Creative Communities and within the overall Workwell NL programme. The report highlights the financial implications, updates on discussion with trade unions and proposals for implementation. Recommendations It is proposed that the Finance & Resources Committee: (1) Approve the proposed new membership rate as set out in paragraph 2.2. (2) otherwise, endorse the contents of the report. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (15) Encourage the health and wellbeing of people through a range of social, cultural, and leisure activities AGENDA ITEM 5 Page 51 of 274
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1. Background 1.1 As Committee are aware, following the insourcing of the former Culture & Leisure NL (CLNL), 661 FTE transferred to North Lanarkshire Council on 1 April 2021. Under the terms of the Transfer of Undertakings (Protection of Employment) Regulations 2006, these employees transferred on their existing terms and conditions of employment. 2. Report 2.1 Employees of North Lanarkshire Council currently enjoy a discounted rate for membership of Active NL – the gym and leisure facilities provided by Active & Creative Communities (ACC). Those employees holding an NLC contract of employment currently pay £28.99 per month against a standard membership rate of £34.99 per month. Employees previously on a North Lanarkshire Leisure (NLL) contract pay £10 per month. Former NLL employees were granted “discounted membership” under the terms of the previously agreed Reward and Recognition Policy which remains in place for the majority of transferring employees who remain on their substantive contract of employment. While the policy does not reflect a contractual entitlement and is not covered by TUPE, it is a staff benefit that has been in place for some time. 2.2 As part of ongoing discussions with colleagues in Financial Solutions around the future financial strategy for ACC, the service continues to consider the potential impact of increasing members (and income) by reducing overall membership rates for the public. It is recognised that this brings significant financial risk. As a test of change, which can be managed financially from core budgets and supports the council’s commitment to its employees, it is proposed to introduce a single staff membership rate of £15 per month for all employees, including those still on an NLL contract. This will allow the service to consider the potential impact on membership to arise from a more economically advantageous offer, 2.3 Current staff membership numbers are detailed below. Details of numbers in each programme and the current disparity in rates is shown below: Current Members Current Rate 833 £10 755 £28.99 1588 2.4 The new proposed rate for employees is based on a review of similar offers in leisure trusts across Scotland, where the staff rate varies from £15-£20. Discounted membership of Active NL gyms is not considered a term and condition of employment. However, under the Reward & Recognition Policy staff are offered “a discounted gym membership” – the £15 rate still amounts to a 57% saving on standard costs. Although not a contractual entitlement, discussions have taken place with the trade unions. Union colleagues were very supportive of the new approach and while they have made it clear that they will not stand in the way of the council moving ahead with this proposal, subject to agreement, it has raised further questions around the subject of potential harmonisation of terms and conditions. To ease the transition to the increased rate for those employees still on NLL conditions, current rates will be held until 1 January 2023. Page 52 of 274
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2.5 Subject to agreement, a campaign to launch this new offer will be developed with Corporate Communications and in conjunction with People & Organisational Development as part of the Workwell NL offer. 3. Measures of success 3.1 Continued commitment to supporting our employees, particularly during the current cost of living crisis. 3.2 Widening accessibility of services to all groups through the availability of a more affordable health and fitness option, encouraging a healthy workforce and supporting the ambition of Workwell NL to provide access to health and wellbeing resources. Janie O’Neill Head of Education (South) Page 53 of 274
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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? Financial Solutions are aware of the proposal and are comfortable with the risk and resource solutions required if necessary. 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? The proposal affects an existing staff benefit (not T&C) and will require discussion with the trade unions. 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? Page 54 of 274
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Yes ☐ No ☒ 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? If agreed, we will work with Corporate Communications on the promotion of this new offer. 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? Membership income forms part of the ACC risk register and is appropriately managed on a regular basis. Page 55 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref EK/NL Date 14/09/22 General Debtors Write-Off 2022/23 From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 1. Background 1.1 The Council issues invoices annually with an approximate value of £115m. Of this approximately £5m relates to Financial Solutions, which mainly consists of: - • Strategy & Corporate Resources; • Home Insurance; and • Housing Benefits Overpayments 1.2 There continues to be an appraisal of the outstanding balances to assess those which are deemed uncollectible. This annual process conforms to Best Practice and is underpinned by a systematic approach to recovery and a realistic assessment of the expected collection of outstanding balances. Executive Summary The purpose of this report is to present to Committee a summary of outstanding debtor accounts which are deemed uncollectable following all attempts at recovery or are not economically viable to pursue. In accordance with financial guidelines a bad debt provision has previously been established for the outstanding accounts highlighted in the report. Recommendations It is recommended that Committee: (1) Note the decision of the Head of Financial Solutions, under delegated responsibilities, to write-off £9,490.11 for debts under £500. (2) Approve the write-off of £83,001.57, which includes debts greater than £500. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions AGENDA ITEM 6 Page 57 of 274
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2. Report 2.1 An analysis of the outstanding balances has been conducted and £92,491.68 has been identified as uncollectible. The write-off can be analysed and compared to the prior year as shown in the table below: 2021/22 2020/21 Benefit Overpayment £92,491.68 £294,803.93 Other Services £0.00 £0.00 Total £92,491.68 £294,803.93 2.2 The reduction in the debt proposed for write-off for 2021/22 compared to prior years is reflective of reduced debt recovery activity during the height of the Council’s Covid response. This had a particular impact on the work done on benefit overpayments as the Council focussed on supporting business grants, creditors payments to businesses and administering individual supports such as the Self Isolation Support Grant. It is anticipated that the value proposed for write-off will increase in future years as recovery action has returned to normal levels. 2.3 In accordance with the Council’s approved Financial Regulations, the Head of Financial Solutions has exercised powers to write-off those balances which are under £500, which represents £9,490.11 of the sum identified in paragraph 2.1. 2.4 An analysis of the total write-off proposed is included in Appendix 1. There are a number of reasons why the outstanding balances are being written off and these are summarised below: • Deceased. The debtor is deceased and there have been insufficient funds within the estate to meet the sum due. • Liquidation/Sequestration. The debtor/business has been liquidated/sequestrated etc., and there is no prospect of recovery of funds. • No Trace/Gone Away. The debtor has been unable to be located and there is no prospect of recovery of funds. • Small Balances/Uneconomical to pursue. There are insufficient funds or no realisable assets that are available to meet the debt and it is uneconomical to continue to seek recovery of the sum due. • Recovery Exhausted. There are insufficient funds or no realisable assets that are available to meet the debt and all appropriate recovery opportunities have been exhausted. 2.5 Whilst approval is sought to write-off the sums within our financial systems the Council will continue to monitor the situation and if circumstances change then recovery of the sums due will be reassessed. 3. Measures of success 3.1 Debt recovery will remain a priority for the service however where necessary adequate provisions will be made for uncollectable debt to ensure there is no budgetary impact. Page 58 of 274
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4. Supporting documentation Appendix 1 Debt Write Off Summary Elaine Kemp Head of Financial Solutions Page 59 of 274
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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? All have been agreed Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? There are no additional financial implications for the current year because a corresponding bad debt provision has been included in previous year’s accounts. 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? 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 ☐ Page 60 of 274
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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 ☒ 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? Page 61 of 274
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Appendix 1 Debt Write Off Summary Cause Analysis £ Deceased 614.61 Liquidation/Sequestration etc. 81,940.24 Gone Away/No Trace 1,976.49 Small Balance/Uneconomic to pursue 229.99 Recovery Exhausted 7,730.35 Total 92,491.68 Value Analysis £ < £500 9,490.11 >£500 83,001.57 Total 92,491.68 Page 62 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/KS/VR/SD Date 14/09/22 Annual Accounts Outturn From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280601 1. Background 1.1. The Annual Accounts demonstrate the Council’s stewardship of the public funds with which it is entrusted. The Annual Accounts are prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom. The Local Authority Accounts (Scotland) Regulations, require the Council to submit a set of unaudited accounts to its external auditors, Audit Scotland, by 30 June following the end of the financial year. 1.2. In addition, the Council’s approved Financial Regulations require Council Services to remain within the approved budgetary provision, and to report all significant deviations within their budget monitoring reports. Executive Summary The purpose of this report is to inform Committee that the annual statutory accounts of the council for the year ended 31 March 2022 were submitted to the Council’s External Auditors, Audit Scotland, by the statutory date of 30 June, and subsequently reported to the Audit and Scrutiny Panel at its meeting of 8 September. This report also updates Committee on the overall position for the General Fund Account and explains any major variations against the Council’s annual budget for the year 2021/22. An overall summary on the Housing Revenue Account is also provided. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge 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 AGENDA ITEM 7 Page 63 of 274
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2. Report 2.1 General Fund 2.1.1 Committee should be aware that the General Fund surplus brought forward from 2020/21 has been restated from £116.751m to £162.181m to reflect the change in presentation in respect of the balances held for future contractual obligations of PPP Schools, as discussed and agreed with Audit Scotland. The overall surplus to be carried forward into 2022/23 is £239.229m recognising an in year surplus of £77.048m. 2.1.2 As outlined in table 1 below, the cumulative General Fund Surplus at 31 March 2022 is £239.229m, represented by £30.551m of COVID-19 earmarked funding and a further £138.536m of earmarked funds for specific future commitments. A balance of £8m is maintained as the approved contingency reserve level, with £29.424m contributing to the Change Management Fund to provide for the anticipated one off costs of approved savings. This leaves an unallocated balance of £32.718m. 2022/23 Earmarked Funds £m £m COVID-19 Directed Funding 6.896 COVID-19 General Funding 20.655 COVID-19 Recovery General Fund Contribution 3.000 30.551 Change Management Fund 29.424 Schools Future Contractual Obligations 54.175 Early Years & Childcare Expansion 14.249 Strategic Workforce Planning 13.000 Temporary Accommodation 9.288 Energy costs and Other Non Pay Inflation 7.220 2022/23 Budget One-off Investment 6.000 Pupil Equity Fund 5.122 Balances held by Schools under Devolved School Management 3.652 Digitisation 2.498 Active & Creative Communities 2.000 Enterprise Contract 1.687 Schools ICT Orders/Refresh & FMS Project Development 1.680 Business Gateway and Business Recovery 1.700 Youth Guarantee Funding 2.367 Winter Reserve 1.500 E&C 21/22 One Off Investment 1.146 Rapid Rehousing 1.159 Other Earmarked Funds 10.093 138.536 Contingency Reserve 8.000 Unallocated Balance 32.718 General Fund Surplus as at 31 March 2022 239.229 Table 1 2.2 Budget Outturn Position 2021/22 2.2.1 The last reported position to the Corporate Management Team indicated a General Fund forecast surplus of £27.628m, compared with a final outturn surplus of £69.092m, which is a movement of £41.464m. This is largely represented by the use of 2021/22 earmarked reserves (£36.505m), offset by approved earmarked reserves for use in Page 64 of 274
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future years (£34.544m). Further to this, the surplus increased due to additional new service requests (£39.813m) including late redeterminations from the Scottish Government, the transfer of HRA reserve for Temporary Accommodation and donation received as a result of the CLNL transfer earmarked for investment as part of the 2022/23 budget setting report. Once these are all taken into account, there is a small movement from provisional outturn position of £3.612m which is mainly in relation to an increased underspend in relation to Newly Qualified Teachers which was previously anticipated to be funded through NLC core funding, but this was not required due to managing excess covid grant funding not utilised. 2.3 Housing Revenue Account 2.3.1 The Housing Revenue Account (HRA) reported a £2.262m surplus position at provisional outturn, however this position differs from the final outturn of £7.957m deficit after recognising the transfer of the Temporary Accommodation earmarked reserve to General Fund. The deficit has reduced the balance brought forward resulting in a cumulative surplus of £19.496m. Of this surplus, some £12.871m has already been approved for specific purposes including Council Ambition (£5.054m) housing repairs (£2.500m) and HRA capital energy efficiency programme (£2.500m). Adjusting for the £1.470m contingency reserves, leaves a current unallocated balance of £5.155m. 2.4 Other Matters 2.4.1 The Council has a controlling interest in a number of bodies that have been incorporated into the Group Accounts. After consolidation, the Group balance sheet shows net assets of £2,457.608m, an increase on the single entity position of £184.528m. 2.4.2 The accounting position in relation to the Council’s pension arrangements highlights a headline net liability based on the standard IAS19 calculation of £156.156m, which is based on the latest triennial review assumptions that took place at March 2020. This position is a snapshot valuation as at 31 March 2022 and can vary from year to year. However the position will be made good by contributions over the remaining working life of employees, as assessed by the scheme actuary. 2.4.3 The 2021/22 position includes a net usable donation in relation to the insourcing of Culture Leisure North Lanarkshire of £6.486m. 3. Measures of success 3.1 The Council continues to operate within approved budgeted resources. 4. Supporting documentation 4.1 No Appendices Elaine Kemp Head of Financial Solutions Page 65 of 274
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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? 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? Page 66 of 274
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Yes ☐ No ☒ 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? Page 67 of 274
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North Lanarkshire Council Report Finance & Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/KS/VR/SD Date 14/09/22 POW 11 – Review of 2022/23 Budget Savings From Elaine Kemp, Head of Financial Solutions E-mail KempE@northlan.gov.uk Telephone 07939280601 1. Background 1.1 At its meeting of 17 February 2022, the Council approved a General Fund Revenue Budget of £887.270m. This included spend which is offset by ring fenced grants of £50.126m resulting in an opening budget position for Net Service Expenditure of £837.143m. Additional funding has since been confirmed as part of the Scottish Government budget setting, including additional directed funding to the Adult Health and Social Care, Free School Meal Expansion monies increasing the budget to £875.141m. Net savings totalling £10.484m were incorporated into the budget set on 17 February 2022. However, £2.000m of one-off resources has been set aside from General Fund reserves to manage the financial impact of the delayed implementation of the Active in Creative Communities saving of £3.058m, and £1.372m has been earmarked from the IJB reserves in respect of the delayed closure of the Muirpark f facility. These actions reduce the overall savings requirement in 2022/23 to £7.112m. Executive Summary This report provides the Corporate Management Team with an update on the achievement of the approved net savings for financial years 2022/23 of £10.484m. The council set aside one-off resources of £3.372m to manage anticipated delays in delivering savings in respect of Active & Creative Communities and the closure of the Muirpark facility, reducing the 2022/23 target to £7.112m. It is currently forecast that £5.222m (73%) of the savings will be delivered in year with the remaining balance to be delivered in future years. Recommendations It is recommended that the Committee: (1) Acknowledge the contents of this 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 AGENDA ITEM 8 Page 69 of 274
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1.2 Services are required to monitor the delivery of their target savings to ensure they remain within their approved budgets and provide periodic progress updates within individual Service revenue monitoring reports, identifying alternative solutions to any in-year shortfall envisaged. In addition, Services are required to monitor whether the original approved saving has been implemented and if not, provide an explanation along with alternative action required to ensure the recurring financial saving will be achieved going forward. 1.3 This report summarises the progress in achieving the approved savings for 2022/23. 2 Report 2.1 Approved 2022/23 Savings 2.1.1 A summary of the approved savings for 2022/23 by Service is provided at appendix 1, along with the current forecast savings achievable for the year. It is currently anticipated that £5.222m (50%) of the net approved saving will be achieved in the current financial year, leaving an in-year savings gap of £5.262m. However, as indicated above one-off resources totalling £3.372m has been approved to fund the financial impact in relation to delayed implementation of savings. Thus, reducing the current year target and in-year savings gap to £7.112m and £1.890m (26.6%), respectively. This remaining gap will be managed by alternative solutions in the year with all of these savings anticipated to be in place for the beginning of the new financial year. Therefore, there is no anticipated recurring budget impact. 2.1.2 Appendix 2 summaries the savings that will not be achieved within 2022/23, generally due to a delay in implementation. 2.2 Prior Year Unachieved Savings 2.2.1 In addition to the current year savings position, it has been acknowledged that there are ongoing challenges in delivering prior year savings. It is expected that Services continue to keep previously unachievable savings under review and identify alternative action to manage both the in-year impact and potential recurring impact. 3. Measures of success 3.1 The Council continues to operate within approved budgeted resources. 4. Supporting documentation Appendix 1 Total 2022/23 Savings by Service Appendix 2 Budget Savings by Exception 2022/23 Elaine Kemp Head of Financial Solutions Page 70 of 274
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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? 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 ☒ If Yes, please provide a brief summary of the impact? Page 71 of 274
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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? Page 72 of 274
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Appendix 1 Service Approved Saving £m Agreed Solutions £m Revised Savings Target £m Projected Savings £m In-year Savings Gap £m Recurring Gap £m Adult Social Care 2.024 1.372 0.652 0.652 0.000 0.000 Chief Executive's 0.361 0.000 0.361 0.163 0.198 0.000 Enterprise & Communities 1.270 0.000 1.270 0.797 0.474 0.000 Education & Families 6.829 2.000 4.829 3.611 1.218 0.000 Total Service Savings 10.484 3.372 7.112 5.222 1.890 0.000 North Lanarkshire Council Revenue Budget 2022/23 Service Savings Monitoring 2022/23 Page 73 of 274
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Service Division Saving Detail Savings Ref Approved Saving £m Projected Savings £m In Year Savings Gap £m Recurring Gap £m CEX Business Solutions DigitalNL CE05 0.198 0.000 0.198 0.000 E&C Assets & Procurement Asset Management Rationalisation/Office Dis-investment. EC10 (Part 1) 0.800 0.327 0.474 0.000 E&F Education Merger/Rezoning School Catchments EF18 0.675 0.175 0.500 0.000 E&F Education Residential/Family Placements/Throughcare EF08 0.600 0.000 0.600 0.000 E&F Education Librarians EF19 0.238 0.120 0.118 0.000 Total Savings 2.511 0.622 1.890 0.000 2022/23 Review of Budget Savings by Exception 2022/23 Appendix 2 Page 74 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/KS/RMcN Date 14/09/22 Treasury Management Annual Activity Report – 2021/2022 From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 1. Background 1.1 The Council is required to meet a number of key reporting requirements for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. 1.2 This report fulfils one of these requirements, outlining the treasury management activity undertaken during 2021/2022 and the resulting impact on the Council’s borrowing and Executive Summary This report fulfils the key requirements of the Council’s reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities in that it: • Outlines the treasury management activity undertaken during 2021/2022 and the resulting impact on the Council’s borrowing and investment strategy. • Reports on the Council’s performance in complying with the mandatory prudential indicators. • Provides a detailed summary of the Council’s performance, making reference to those targets and prudential indicators set at the start of the year within the approved strategy. Recommendations It is recommended that the Finance and Resources Committee: (1) acknowledges the Treasury Management Activity undertaken during 2021/2022 and its resulting impact on the Council’s borrowing and investment strategy set out within Appendix 1 to this report. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 9 Page 75 of 274
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investment strategy and the Council’s performance in complying with the mandatory treasury and prudential indicators. 2. Report 2.1 The Treasury Management Strategy Statement 2021/2022 approved by Committee on 11 March 2021, set out the Treasury Management policies, practices and activities to be undertaken by the Treasury Management function during 2021/2022 2.2 Appendix 1 provides a detailed summary of the Council’s performance, referencing those targets and prudential indicators set at the start of the year within the approved strategy. 2.3 It focuses on the key areas of Treasury Management activity during 2021/2022 including: • External Borrowing • Interest Rates & Payments • Debt Maturity Profile • Investment Performance • Sources of Borrowing • Leasing • Regulatory Framework, Risk and Performance 2.4 The Council’s Treasury Management activity continued to be managed in the light of the market conditions, to take advantage of lower interest rates for borrowing, while minimising the level of investment balances held, with the Council’s average loans pool rate falling from 3.03% to 2.55%. 3. Measures of success 3.1 Overall the approach adopted by the Council’s Treasury Management team met the key requirements of the 2021/2022 Treasury Management Strategy. 4. Supporting documentation 4.1 Appendix 1: Treasury Management Annual Activity Report 2021/2022 Elaine Kemp Head of Financial Solutions Page 76 of 274
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5. Impacts 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 ☐ The financial impact is outlined within the report. 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? 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 ☒ If Yes, please provide a brief summary of the impact? Page 77 of 274
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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 ☐ Treasury Management activity by its very nature has a number of inherent risks including interest rate, liquidity and refinancing risks. To minimise risk for its treasury management activities the Council adopts and operates in accordance with the guidelines for best practice prescribed within the CIPFA “Treasury Management in the Public Services” Code of Practice and the CIPFA Prudential Code for Capital Finance in Local Authorities. Page 78 of 274
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Appendix 1 Treasury Management Annual Activity Report 2021/2022 Page 79 of 274
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Appendix 1 Index 1. Introduction 2. Background 3. Borrowing Requirement 2021/2022 4. Economic Background & Interest Rates 2021/2022 5. Interest Payments 2021/2022 6. Debt Maturity Profile 7. Sources of Borrowing 8. Debt Rescheduling 9. The Prudential Code for Capital Finance 10. Temporary Funds Investment Performance 11. Leasing 12. Soft Loans 13. Financial Guarantee 14. Treasury Management Advisory Service 15. Policy on Repayment of Loans Fund Advances 2021/2022 16. Regulatory Framework, Risk and Performance Page 80 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 1. Introduction 1.1 Treasury Management deals with the borrowing and investment activity of the Council and is an integral part of the Council’s Financial Strategy. It seeks to ensure that both capital borrowing requirements and day to day revenue transactions are fully funded. Its importance has increased as a result of the additional freedoms provided by the Prudential Code. 1.2 The Council’s treasury activities are strictly regulated by statutory requirements and a professional code of practice. Revised editions of the CIPFA Prudential Code and CIPFA Treasury Management Code of Practice were issued in December 2017 and December 2021. In accordance with the Council’s financial regulations, the Council adopts the fully revised CIPFA “Treasury Management in the Public Services” Code of Practice (the Code) including the key principles and the Treasury Management Policy statement. 1.3 Within the Council, the Audit and Scrutiny Panel ensures the effective scrutiny of the treasury management strategy and policies, while the Finance and Resources Committee remains responsible for the development of the Strategy, its implementation and monitoring. The Council also promotes members’ responsibility in this area, requiring greater member scrutiny of treasury management activity. 1.4 The Code of Practice requires the Council to produce reports on its Treasury Management policies, practices and activities, including, as a minimum, an annual strategic plan at the beginning of the financial year, a mid-year review, followed by an annual report on the measurement of success at the year-end. To ensure compliance with the Code of Practice, Treasury Management procedures are continually reviewed with any amendments reported to Committee as appropriate. Prudential arrangements and treasury management performance information is submitted to Committee on a quarterly basis. 2. Background 2.1 The Council has adopted the CIPFA Code of Practice in Treasury Management and operates its treasury services to mitigate the effect of possible risk in this function, while undertaking borrowing and investment activities that are prudent, affordable and sustainable. 2.2 As noted in 1.4 above, the Code of Practice requires the Council to produce reports on its Treasury Management policies, practices and activities on a regular and ongoing basis. This includes the preparation of an annual activity report providing a detailed summary of the Council’s performance, making reference to those targets, limits and indicators set at the start of the year within the approved strategy. 2.3 In accordance with the Council’s Treasury Management policy, the report focuses on activities undertaken during the year in the following key areas:- 3. Borrowing Requirement 2021/2022 Capital Borrowing Requirement 3.1 The Strategy Statement for 2021/2022, approved by the Finance & Resources Committee on 11 March 2021, indicated a capital programme of £209.2m. The capital expenditure programme was budgeted to be funded by external grants & contributions of £41.6m and capital contributions from revenue of £27.1m, resulting in a projected increase in the capital financing requirement of £140.5m. • External Borrowing • Interest Rates • Interest Payments • Debt Maturity Profile • Sources of Borrowing • Debt Rescheduling • Temporary Investments • Leasing • Compliance with the Prudential Code • Regulatory Framework, Risk and Performance Page 81 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 3.2 The actual total investment in council assets during 2021/2022, amounted to £170.3m, which was partially funded by grants and receipts of £98.1m, resulting in a capital financing requirement totalling £72.2m to support this capital investment, which is £68.3m less than the initial estimate and £32.3m less than the revised estimate. 3.3 This reduction in capital expenditure and reduced capital financing requirement is primarily a result of the Council experiencing challenges in delivering the Strategic Capital Investment Programme in light of a number of external factors affecting the wider economy including external labour supply, materials shortages and the on-going impact of both Brexit and Covid- 19. As a result, decisions were taken by the Policy & Strategy Committee on 30th September 2021 and Strategic Capital Delivery Group (SCDG) at its meeting on the 8 December 2021, to re-profile the capital programme to reflect revised delivery timescales. 3.4 The revised estimates contained within this report when compared to the initial estimates reflect the impact of Policy & Strategy and SCDG decisions and were approved within the Treasury Management Strategy 2022/2023 and Prudential Indicators 2022/23 to 2024/2025, approved by the Finance & Resources Committee on the 10 March 2022. For comparison of the estimate to actual outturn, unless otherwise stated, the comparator adopted within this report is the actual outturn to the revised estimate. 3.5 Members have received reports throughout the year advising them of anticipated variations to the capital expenditure programmes and resource levels. 3.6 As highlighted in Table 3 included within Section 9 which outlines the Prudential Code for Capital Finance requirements, the resource mix to finance the 2021/2022 capital expenditure programme varied from the original estimate, primarily due to an increase in net capital grants and external contributions available of £21.2m, CFCR contributions of £7.2m and Capital receipts of £0.1m. Capital Financing Requirement 2021/2022 3.7 The 2021/2022 capital financing requirement of £72.2m was funded primarily by a combination of internal balances/reserves and short-term borrowing(<1year) with no additional long-term borrowing from the Public Works Loan Board (PWLB). A full summary is provided within Section 7 Sources of Borrowing. 4. Economic Background & Interest Rates 2021/2022 4.1 The continuing economic recovery from coronavirus pandemic, together with the war in Ukraine, higher inflation, and higher interest rates were major issues over the period. 4.2 Bank Rate was 0.1% at the beginning of the reporting period. April and May saw the economy gathering momentum as the shackles of the pandemic restrictions were eased. Despite the improving outlook, market expectations were that the Bank of England would delay rate rises until 2022. Rising, persistent inflation changed that. 4.3 UK CPI was 0.7% in March 2021 but thereafter began to steadily increase. Initially driven by energy price effects and by inflation in sectors such as retail and hospitality which were re- opening after the pandemic lockdowns, inflation then was believed to be temporary. Thereafter price rises slowly became more widespread, as a combination of rising global costs and strong demand was exacerbated by supply shortages and transport dislocations. The surge in wholesale gas and electricity prices led to elevated inflation expectations. CPI for February 2022 registered 6.2% year on year. 4.4 The government’s jobs furlough scheme insulated the labour market from the worst effects of the pandemic. The labour market began to tighten and demand for workers grew strongly as employers found it increasingly difficult to find workers to fill vacant jobs. Having peaked at 5.2% in December 2020, unemployment continued to fall and the most recent labour market data for the three months to January 2022 showed the unemployment rate at 3.9% while the employment rate rose to 75.6%. Average annual growth rate for wages were 4.8% for total pay and 3.8% for regular pay. In real terms, after adjusting for inflation, total pay growth was up 0.1% while regular pay fell by 1.0%. Page 82 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 4.5 Having increased Bank Rate from 0.10% to 0.25% in December, the Bank of England hiked it further to 0.50% in February and 0.75% in March. At the meeting in February 2022, the Monetary Policy Committee (MPC) voted unanimously to start reducing the stock of its asset purchase scheme by ceasing to reinvest the proceeds from maturing bonds as well as starting a programme of selling its corporate bonds. 4.6 In its March 2022 interest rate announcement, the MPC noted that the invasion of Ukraine had caused further large increases in energy and other commodity prices, with the expectation that the conflict will worsen supply chain disruptions around the world and push CPI inflation to around 8% later in 2022, even higher than forecast only a month before in the February Monetary Policy Report. The Committee also noted that although GDP in January was stronger than expected with business confidence holding up and the labour market remaining robust, consumer confidence had fallen due to the squeeze in real household incomes 4.7 Reflecting the impact of the economic volatility throughout 2021/22, the graph below confirms for the period April to September the lending interest rates were relatively stable, remaining at historically low levels, before starting to rise from September anticipating and reflecting Bank of England base rate increases announced in December, February and March to stand at 0.75% in March 2022. The fluctuation in the short-term borrowing rates payable by the Council for temporary funds (less than 1 year) is influenced by the prevailing market lending rates, the margin representing the relative supply and demand on any given day for local authority to local authority borrowing, and the term of borrowing profiled to the Council’s cashflow requirements. 4.8 The change in the perception as to how the economy is progressing is more readily explained by an analysis of the fluctuations in the PWLB medium to long term rates. See graph below. 4.9 Bond yields were similarly volatile as the tension between higher inflation and flight to quality from the war pushed and pulled yields, but with a general upward trend from higher interest rates dominating as yields generally climbed. The 5-year UK benchmark gilt yield began the quarter at 0.82% before rising to 1.41%. Over the same period the 10-year gilt yield rose from 0.97% to 1.61% and the 20-year yield from 1.20% to 1.82. 0.000 0.250 0.500 0.750 1.000 1.250 1.500 1.750 2.000 Interest Rate % 2021/2022 Monthly Average market lending rates for 7 day, 3 months, and 12 months Base rate 7 day 3 Mths 12 Mths Page 83 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 4.10 The spread between the highest and lowest daily interest rates payable for PWLB 10, 25 and 50 year borrowing periods throughout 2021/2022 were almost 1.13% for the 10 year range, 1.08% for 25 year range with greatest volatility of 1.24% for the 50 year range. 5. Interest Payments 2021/2022 5.1 The Council made interest payments in 2021/22 of £22.3m (£25.4m in 2020/2021). This includes both the external and internal elements of interest payable and the annual write-off associated with premiums and discounts. This decrease of £3.1m from 2020/2021 levels represents the saving from using primarily a combination of internal balances/reserves and short-term borrowing(<1yr) which was sourced at historically low interest rates, to meet the in- year capital financing requirement and the refinancing of long-term debt maturing, in lieu of future long-term borrowing. This reflecting the borrowing strategy adopted in 2021/2022, which is complimented by efficient cashflow management and balance sheet analysis and ensures the nature and timing of new borrowing remains efficient and effective, achieving value for money. 5.2 The Council’s average cost of servicing its debt and investment portfolio has fallen consistently over the last ten years with the weighted average loans fund pool rate for 2021/2022 being 2.55%, a decrease of 0.48% when compared to the average rate of 3.03% for 2020/2021. 5.3 Given the term structure of interest rates prevailing throughout the year, the borrowing strategy adopted minimised carrying costs (see paragraph 9.14 below), whilst managing liquidity. It is pleasing to report a continuing downward movement in the weighted average loans fund pool rate of the Council’s loan portfolio, manifesting itself in debt costs being retained at prudent levels despite the significant increase in prudential borrowing in recent years. 0.000 0.500 1.000 1.500 2.000 2.500 3.000 Interest Rate % 2021/2022 Monthly Average PWLB rates or periods up to 10, 25 and 50 years up to 10 years up to 25 years up to 50 years Page 84 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 6. Debt Maturity Profile 6.1 Debt maturity profiles are continually monitored in the management of Treasury Management risk and in particular refinancing, liquidity and interest rate risk. 6.2 A summary of the current debt maturity profile is contained in Table 1 below. Maturity Profile 2021/2022 2020/2021 £m % £m % Temporary Borrowing < 1yr 193.1 28.24% 218.9 29.30% Long term borrowing: Maturing in less than 1 Year 50.6 7.40% 37.4 5.00% Maturing in 1 - 2 Years 26.6 3.89% 50.9 6.81% Maturing in 2 - 5 Years 56.5 8.27% 61.0 8.16% Maturing in 5 - 10 Years 54.5 7.97% 67.8 9.08% Maturing in 10 - 20 Years 106.7 15.61% 115.3 15.44% Maturing in 20 - 40 Years 169.9 24.85% 169.9 22.75% Maturing in more than 40 Years 25.8 3.77% 25.8 3.46% 683.7 100.00% 747.0 100.00% Table 1 6.3 A graphical presentation of the current debt maturity profile on an annual basis is shown below. 5 10 15 20 25 30 35 40 45 50 55 Millions FINANCIAL YEAR Forecast Long term Debt Maturity Profile as at 31 March 2022 Public Works Loan Board (PWLB) Market Loans Page 85 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 6.4 It should be noted that the maturity profile includes variable rate debt which can be repaid in whole or part at any time up until the maturity date without penalty, further increasing the flexibility within the repayment profile. It is currently assumed this debt will be held to maturity, subject to certain conditions. 6.5 The graph highlights that for the period 2028/2029 until 2031/2032, the average debt maturing is lower than earlier years, and after these periods and in a number of later years there is little or no debt due to be repaid. This may offer opportunities for sourcing debt within this maturity spectrum as part of future capital financing or debt restructuring/replacement strategies, dependent upon interest rates and in compliance with the overall Treasury Management strategy. 6.6 The graphical presentation of the debt maturity profile excludes short-term borrowing which was originally sourced to be repaid within 12 months (temporary borrowing < 1 year) per Table 1 above. It also includes principal outstanding for LOBO (Lender’s Option Borrower’s Option) loans based on their maturity date as opposed to the potential maturity date in the year where options or calls exist. A LOBO is called when the lender exercises its right to amend the interest rate on the loan at which point the Council can accept the revised terms or reject them and repay the loan. 6.7 At 31 March 2022 the Council had an exposure of £13.0m to LOBO loans, all of which have call dates falling within less than one year, with interest rates payable ranging from 6.4% to 10.937%. With £10.0m of these loans having an average interest rate of 6.40% with the remaining balance of £3.0m, taken out in the mid 1980’s to early 1990’s, having average interest rates of 10.73%. Based on the current and the forecast interest rates the likelihood of these loans being called has been assessed as minimal. In the event that the call option were to be exercised, the default position will be the repayment of the LOBO without penalty with the associated treasury management risks (refinancing/interest rate/liquidity) managed in line with the borrowing strategy for other maturing debt. 6.8 The graphical presentation below provides a further analysis of the average annual rate of interest payable on maturing long-term debt. This analysis highlighting opportunities for savings in interest costs over the coming years, as the refinancing strategy adopted, will look to replace these loans at lower average interest rates than the historic interest rates currently being paid on the respective debt reaching maturity. In the years where no loans fall due for repayment this shows as 0.00% within the graph below. 0.00% 2.00% 4.00% 6.00% 8.00% Average Interest Rate of Interest Payable on Maturing Long term Debt Page 86 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 7. Sources of Borrowing 7.1 At the 31 March 2022 the Council’s total external debt, defined as actual gross borrowing (excluding interest accrued) plus obligations outstanding in respect of finance leases and PPP liabilities had fallen from £928.2m to £857.7m, a decrease of £70.5m as shown in Table 2 below. Sources of Finance 2021/2022 2020/2021 £m % £m % Public Works Loan Board 407.4 59.6% 434.6 58.2% Money Market Loans 67.0 9.8% 77.0 10.3% Other Local Authorities 15.0 2.2% 15.0 2.0% Temporary Borrowing 174.0 25.4% 197.0 26.4% Energy Efficiency Loan – Salix 1.2 0.2% 1.5 0.2% Municipal Bank 19.1 2.8% 21.9 2.9% Total Debt Outstanding 683.7 100.0% 747.0 100.0% Finance Lease Liabilities 1.7 1.0% 1.9 1.1% PPP Liabilities 172.3 99.0% 179.3 98.9% Total Long-term Liabilities 174.0 100.0% 181.2 100.0% Total External Debt 857.7 928.2 Annual Movement (70.5) Table 2 7.2 The decrease in external debt of £70.5m is primarily due to movements in the total debt outstanding with repayments of principal for PWLB of £27.2m falling due for repayment in 2021/2022 per the terms of the original loan agreements, a decrease of £23.0m in temporary borrowing with transactional activity in terms of temporary borrowing being £375.5m in total, comprising £176.0m of cash received and £199.0m of cash being repaid during 2021/2022, repayments of market loans of £10.0m and repayments of £0.3m in respect of energy efficiency loans from Salix. 7.3 During the year the municipal bank balances available to the Council on a temporary borrowing basis decreased by £2.8m due to the public announcement in October 2021 that the municipal bank would close in September 2022 and customers had started to transfer their accounts to other banking providers by the end of the financial year. 7.4 In 2021/22 there was a decrease total in long term liabilities of £7.2m which was due to principal repayments in respect of the finance lease liabilities for buildings, vehicles, plant and equipment and PPP liabilities. 7.5 The above approach to borrowing in 2021/2022 was underpinned by: • interest rate expectations; • the management of carrying costs; • the spend profile of the Capital Programme; and • managing reserves and balances at prudent levels in lieu of external borrowing. 8. Debt Rescheduling 8.1 Debt rescheduling is defined as the reorganisation of existing debt in such a way as to amend the debt repayment profile of the authority, reduce the principal sum borrowed, alter the degree of volatility of the debt or vary the interest charge payable. Page 87 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 8.2 During 2021/2022, the economic climate in relation to our financial targets and Treasury Management strategy was monitored. The interest rates prevailing throughout the period resulted in no beneficial opportunities for debt restructuring/rescheduling of the PWLB debt portfolio. 8.3 A decision taken by the PWLB in October 2010 to increase interest rates, by an average of 0.90% above UK Government gilts, across the whole maturity spectrum for new PWLB fixed and variable rate loans from 1 year up to 50 years continues to significantly limit opportunities.. 9. The Prudential Code for Capital Finance Prudential Indicators 9.1 Following the introduction of the Local Government in Scotland Act 2003 and the Prudential Code for Capital Finance in Local Authorities, the Treasury Management Strategy Statement 2021/2022 detailed the mandatory prudential indicators, essential for ensuring that the Council's capital programmes were affordable, prudent and sustainable. 9.2 The Council approved a variety of indicators, including revised estimates for the financial years 2021/2022 through to 2024/2025. The total capital investment in 2021/2022 was £170.3m. A summary as to how this was financed is provided in Table 3 below. Table 3 9.3 The Capital Financing Requirement (CFR) which is a measure of the Council’s underlying borrowing need, comprising borrowing and credit arrangements, was £32.4m less than anticipated as at 31 March 2022, compared to the revised estimate as shown in Table 4. The CFR is split between General Services and HRA which reflects actual debt outstanding as at 31 March 2022. Capital Financing Requirement 31 March 2022 Initial Estimate (£m) 31 March 2022 Revised Estimate (£m) 31 March 2022 Actual (£m) Variance (£m) General Services 736.8 722.2 714.4 (7.8) HRA 414.4 415.8 391.2 (24.6) Total CFR 1,151.3 1,138.0 1,105.6 (32.4) Table 4 9.4 This 2021/2022 decreased borrowing requirement (CFR) of £32.4m per Table 4 above comprises the reduced borrowing for capital expenditure on assets. Capital Expenditure 2021/2022 Initial Estimate (£m) 2021/2022 Revised Estimate (£m) 2021/2022 Actual (£m) Variance (£m) Expenditure on assets 209.2 189.7 170.3 19.4 Credit Arrangements - - - - Total Capital Investment 209.2 189.7 170.3 19.4 Financed by Borrowing 140.5 104.5 72.2 (32.3) Capital receipts - 1.0 1.0 - Grants & External Contributions 41.6 56.0 62.8 6.8 CFCR 27.1 28.2 34.3 6.1 Credit Arrangements - - - - Page 88 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 9.5 Per Table 5 below, the external debt position of the Council at the 31 March 2022 was £115.5m less than expected compared to the revised estimate. The total debt outstanding was £115.6m lower than anticipated as planned. Healthy cash balances resulted in a reduced requirement for temporary borrowing of £36.0m, with an additional £2.8m reduction in relation to municipal bank balances available for use, to meet daily cashflow requirements and manage liquidity risks. 9.6 This reduction in debt outstanding was partially offset by total long-term liabilities being £0.1m higher than the revised estimate. The actual outturn reflecting the incorporation of lease liabilities due to the consolidation of CLNL within the Council. Sources of Finance 31 March 2022 Initial Estimate 31 March 2022 Revised Estimate 31 March 2022 Actual Variance £m £m £m £m Public Works Loan Board 588.3 484.2 407.4 (76.8) Money Market Loans 62.0 67.0 67.0 - Other Local Authority 15.0 15.0 15.0 - Energy Efficiency Loan –Salix 1.2 1.2 1.2 - Municipal Bank 21.1 21.9 19.1 (2.8) Temporary Borrowing 199.6 210.0 174.0 (36.0) Total Debt Outstanding 887.3 799.3 683.7 (115.6) Finance Lease Liabilities 1.7 1.7 1.7 - PPP Liabilities 171.0 172.2 172.3 0.1 Total Long-term Liabilities 172.7 173.9 174.0 0.1 Total External Debt 1060.0 973.2 857.7 (115.5) Table 5 9.7 As a result of the movements in the capital financing requirement and the external debt position described above, there is a healthy prudential margin of £248.0m (the need to borrow versus actual borrowing) at the end of 2021/2022, as shown in Table 6 below. This is consistent with the Council approach to use internal reserves and balances to fund the cumulative capital financing position at the 31 March 2022 as an alternative to undertaking additional external borrowing. 31 March 2022 Initial Estimate (£m) 31 March 2022 Revised Estimate (£m) 31 March 2022 Actual (£m) Total CFR 1,151.3 1,138.0 1,105.6 Total External Debt 1,060.0 973.2 857.6 Prudential Margin 91.3 164.8 248.0 Table 6 9.8 Table 7 below shows the ratio of capital financing costs to total income for General Services and HRA were lower than anticipated due to the profile for interest and principal repayments on borrowings and long-term liabilities being lower than anticipated. The significant reduction is primarily a result of the revised loans fund repayment policy implemented in 2021/22 outlined within Section 15 below, whilst it also reflects the efficient management of investment and borrowing activity demonstrated throughout this report. Page 89 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 Proportion of Financing Costs/Income 31 March 2022 Initial Estimate 31 March 2022 Actual General Services 7.04% 5.03% HRA 16.03% 12.79% Table 7 9.9 The Authorised Limit is the ‘Affordable Borrowing Limit’ required by S35 of the Local Government Act 2003. The Council does not have the power to borrow above this level. The Operational Boundary is the expected borrowing position of the Council during the year. Periods where the actual position is either below or above the Operational Boundary are acceptable subject to the Authorised Limit not being breached. 9.10 Table 8 below shows in 2021/2022 the Council has maintained its gross borrowing and its long-term liabilities within the Authorised Limit and Operational Boundary. Approved Limit 2021/2022 (£M) Maximum held per 2021/2022 Activity (£M) Limit Breached (Yes/No) Authorised Limit : Borrowing 1,040.0 751.3 No : Long-term Liabilities 190.0 179.3 No Operational Boundary : Borrowing 1,035.0 751.3 No : Long-term Liabilities 190.0 179.3 No Total Gross Borrowing at 31.03.2022 683.7 Total Long term Liabilities at 31.03.2022 174.0 External Debt at 31.03.2022 857.7 Table 8 9.11 The external debt includes both the actual gross borrowing and long-term liabilities held at a specific point in time (i.e. 31 March 2022). Treasury Management Indicators 9.12 The Council approved a variety of Treasury Management indicators for the financial years 2021/2022 through to 2023/2024. Tables 9 and 10 below provide a comparison of the estimated and actual 2021/2022 Treasury Management indicators. Interest Category Estimate 2021/2022 (£m) Actual 2021/2022 (£m) Variance (£m) % Interest payable on Fixed Rate Debt 22.5 19.1 (3.4) 15.1% Interest payable on Variable Rate Debt 1.4 1.2 (0.2) 14.3% Total External Interest Payments 23.9 20.3 (3.6) 15.0% Interest Receivable Funds Invested (0.1) (0.2) 0.1 100% Net Loan External Interest Charges 23.8 20.1 (3.5) 14.7% Table 9 9.13 Table 9 above provides prudential information in respect of external payments due and income receivable only as these are under the direct control of the Treasury Management section. In 2021/2022 there was a one-off reduction of £3.5m in net loan external interest payments Page 90 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 compared to initial estimates for 2021/2022. This favourable variance was achieved due to the borrowing strategy adopted to meet the General Services and HRA Capital Programme. 9.14 This interest saving representing the difference between the estimated cost of new long term and temporary borrowing based on an interest rate of 2.75% and 0.75% respectively compared to the actual average interest rates of approximately of 0.28% for temporary undertaken throughout 2021/2022. This being further supported by the level of long-term borrowing being significantly less than expected as no long-term borrowing was undertaken compared to an anticipated initial estimate of £174.0m, this being due to cash balances and reserves, in line with TM Strategy, being utilised in lieu of future long-term borrowing and the impact of the challenges to the Capital Programme due to external supply, Brexit and Covid19. 9.15 Table 10 below provides a summary of the Capital Financing charges for both General Fund and HRA in respect of the loans fund which includes; • external payments due and income receivable per Table 9 above • the annual premium/discount written off for historic rescheduling/refinancing • the internal interest payable on revenue balances • the capital advance repayments made in the year Capital Financing Charges Initial Estimate 2021/2022 (£m) Final Outturn 2021/2022 (£m) Variance (£m) % Loans Fund Interest Payments 27.1 22.2 4.9 18.08% Loans Fund Expenses 0.4 0.3 0.1 25.0% Total Loans Interest Payments & Expenses 27.5 22.5 5.0 18.18% Loans Funds Investment Income (0.1) (0.2) 0.1 100.0% Total Loans Fund Interest Payments Investment Income & Expenses 27.4 22.3 5.1 18.61% Loans Fund Advances Repayments 20.2 16.5 3.7 18.32% Capital Budget Reprofiling 2.9 - 2.9 100.00% Total Loans Fund Charges 50.5 38.8 11.7 23.17% Table 10 9.16 The table above highlights a loan charge saving of £11.7m compared to the prudential estimates for 2021/2022 taking into account the treasury management activity, the loans fund advances repayment policy adopted in 2021/22 and the decisions of the P&S Committee, on 30 September 2021, to reprofile the capital programme in response to the significant Covid-19 and Brexit related challenges. 9.17 Overall a treasury management saving of £5.1m was achieved reflecting the cashflow management techniques adopted, directing the timing of new borrowing, managing investment security, liquidity and interest rate risk and the identification of short-term borrowing opportunities. This resulting in reduced loans fund interest payments and expenses. 9.18 The reduction in the Loans Fund advance repayments of £3.7m is primarily the result the Council benefiting from, in 2021/22, the revised loans fund advance repayment policy approved at the Finance and Resources Committee on the 26 November 2020, whereby the Council continues to use the annuity model, apply a fixed average life to the loans fund advances, and apply a prudent annuity rate. 9.19 The Council has also accrued an additional net saving of £2.9m in loan charges in relation to the Ambition projects reflecting resources being put in place ahead of expenditure commitments. These resources set-aside to provide funding assistance to this programme going forward, as opposed to increasing the 2021/22 one off resources available for consideration, as part of the budget setting process. Page 91 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 9.20 The Council sets interest rate exposure limits to manage the Council’s exposure to the effects of interest rate changes by limiting the amount of total loans whose interest rate is not fixed. Table 11 shows the interest exposure at 31 March 2022. During 2021/2022 at no point were the limits breached with the average levels being below the limits for fixed rate exposure. Maturity Structure of Borrowing <12m 12m to 2yrs 2 to 5yrs 5 to 10yrs 10 to 20yrs 20 to 40yrs >40 yrs Upper Limit on Fixed Rate debt 20.0% 15.0% 25.0% 30.0% 35.0% 45.0% 30.0% Lower Limit on Fixed Rate debt 0.0% 0.0% 5.0% 5.0% 5.0% 10.0% 10.0% 2021/2022 Average Profile 8.3% 7.6% 11.9% 11.4% 21.9% 33.8% 5.1% Maturity Structure at 31/03/2022 10.3% 5.4% 11.4% 11.1% 21.8% 34.7% 5.3% Table 11 10. Temporary Funds Investment Performance 10.1 During 2021/2022 the primary principle governing Council investment criteria was the security of the investment. After this, the Council ensured that it held sufficient liquidity in its investments, carefully selecting the maximum periods for which funds could prudently be committed whilst also applying the Council’s prudential and treasury management indicators covering the maximum principal sums invested. 10.2 The Council complied fully with the ratings criteria outlined within the 2021/2022 Treasury Management Strategy, minimising risk in this area by adopting a Lowest Common Denominator (LCD) approach having a criteria-based counterparty list. This restricted the Council to only using those counterparties that met a pre-determined credit-rating level, to which monetary limits were applied. This meant that the counterparty had to meet all the relevant rating requirements being assessed by its weakest set of ratings, rather than the strongest. 10.3 Throughout 2021/2022 the Council continued to utilise the research of the world’s foremost providers of independent credit ratings (Fitch, Moodys and Standard & Poors). The ratings provided by these bodies define the likelihood of an investor such as the Council receiving their money back on the terms in which it was invested. 10.4 The credit ratings of counterparties were monitored regularly. The Council receives credit rating information from Arlingclose (the Council’s advisors) as and when ratings change and the counterparties are checked promptly. If a ratings change results in a counterparty failing to meet the Council’s strict criteria they are removed immediately from the list. Similarly if a counterparty rating is updated and they meet the Council’s strict criteria they would be added to the list. 10.5 To supplement credit rating information the Council used other operational market information in line with good practice identified within the Code of Practice this includes: • Credit Default swap prices • Quality financial press • Share prices • Government support status • Annual Reports • Statements to the market 10.6 In 2021/2022 the Council’s borrowing strategy assisted in minimising counterparty exposure to the financial markets, the Council strategically deciding the timing of temporary borrowing and the postponement of longer term borrowing, taking into account the levels of liquidity in conjunction with efficient cashflow management techniques and balance sheet analysis. 10.7 The approved 2021/2022 Treasury Management Strategy enabled investment activity for a period up to a maximum limit of 364 days and for certain types of investment up to 30 years, for permitted investments per the investment strategy. In ‘normal’ market circumstances the Council, would identify its liquidity requirements and the core funds within its daily balances that could be locked in over a longer period, thus achieving the optimum performance, Page 92 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 spreading investment periods and security of return, subject to the overriding credit counterparty security. 10.8 During 2021/2022, the Council, restricted its maximum investment periods to approximately three months, with in reality this period being even shorter. In terms of investment types the Council primarily deposited funds in call, instant access accounts and money market funds, dealing directly with approved UK financial institutions. These accounts offered greater liquidity whereby the Council is allowed instant access whilst still being offered relatively attractive interest rates compared to sector averages. 10.9 A comparison of North Lanarkshire Council investment performance for the period April 2021 to March 2022 is shown in the graph below. 10.10 As shown in the graph above, despite the overnight market bid rates remaining in negative territory during the majority of 2021/22, the Council still managed to achieve a positive return on its investments, although returns remain at historically low levels as a result of the on- going challenges due to the economic volatility, Brexit and the Covid 19 pandemic. With security and liquidity factors considered when determining cash-flow requirements and investment opportunities, the Council only utilised overnight investment options during 2021/22 using its approved counterparties. Despite this, the Council continued to demonstrate good performance levels in investment activity when compared to these reliable benchmarks for assessing performance on temporary investments. 10.11 During 2021/2022, positive cashflows enabled short-term investments in total of £843.7m to be undertaken whilst during the same period, £842.5m of short-term investments matured representing over £1.686 billion in investment activity. 10.12 The graph below shows the average level of investment balances held throughout 2021/2022, managed on a weekly basis in accordance with the investment strategy, adhering to the underlying principle of security liquidity and yield supported by robust cashflow management. -0.15% -0.05% 0.05% 0.15% 0.25% 0.35% 0.45% 0.55% 0.65% Interest Rate 2021/22 Comparison of NLC Average Interest Rates to the average Overnight, and 7 Day Bid rates NLC Interest Rate Overnight Bid rate 7 Day Bid Rate Page 93 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 10.13 Investment balance levels, forming part of the cash and cash equivalents, are influenced by a number of factors. Liquidity is monitored in conjunction with the Councils cashflow management reporting system, to manage and forecast future cash balances available to support the investment and borrowing strategy. 10.14 The Council prides itself on its cashflow management approach with receipts and payments data recorded daily with forecasts of cash balances readily available. The cashflow incorporating actual and estimated diary entries for a number of variables including: 10.15 At 31 March 2022, the total balance of cash and cash equivalents amounted to approximately £114.3m, an increase of £3.5m from last year’s position. A detailed breakdown is provided below in Table 12, elements of which have been referenced throughout this report. Cash and Cash Equivalents at 31/03/2021 £110.8m 2021/2022 Borrowing for Capital Expenditure purposes (£72.2m) Cash Outflow Repayments of Maturing Long-term debt (£37.5m) Cash Outflow Finance Lease Principal repayments (£7.2m) Cash Outflow Scheduled principal repayments from service departments £23.8m Cash Inflow New Long-term borrowing £0.0m Cash Inflow Decrease in Temporary borrowing (<1yr) (£25.8m) Cash Outflow Increase in Revenue Reserves & Cash Balances £122.4m Cash Inflow Cash and Cash Equivalents at 31/03/2022 £114.3m Movement in year +£3.5m Table 12 £0 £20,000,000 £40,000,000 £60,000,000 £80,000,000 £100,000,000 £120,000,000 1 5 9 13 17 21 25 29 33 37 41 45 49 Weeks 1 - 52 Average Weekly Investment Balances held during 2021/2022 • Payments to Suppliers • Precept Payments • House Rents • Staff Salaries & Wages • Loan Repayments and Interest • Council Tax • General Government Grants • Sales Fees & Charges • DWP Payments Page 94 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 10.16 Cash and cash equivalents are represented by cash in hand and deposits held with financial institutions repayable without penalty on notice of not more than 24 hours including call accounts and money market funds. This also includes investments that mature in three months or less from the date of acquisition provided they are assessed as readily convertible to known amounts of cash with an insignificant risk of a change in value. The Council’s bank overdraft is also included as this is treated as an integral part of the council’s day to day cash management procedures. 11. Leasing 11.1 During 2021/22 the Council used external borrowing to fund its vehicle requirements with no vehicles plant and equipment being acquired under operational leasing agreements in 2021/22. 11.2 At 31 March 2022, the Council is committed to making minimum lease payments of approximately £2.3m under finance leases with £0.3m due in the next 12 months. These payments comprise settlement of the long-term liability for the interest in the asset and the finance costs that will be payable by the Council in future years while the liability remains outstanding. 11.3 During the year, the Council, for the remaining operating leases for vehicles and equipment, made actual payments of £3.5m, met from the revenue budget. 12. Soft Loans 12.1 Within the Council’s 2021/2022 annual accounts, the Council has recorded a net amount receivable of £2.365m from service users receiving Social Care for which a charging order has been placed on the recipient’s property as a method of recovering the debt. 12.2 For these amounts payable the Council is charging interest at less than the market rate applicable for similar advances and as such these balances are notionally recognised as soft loans. However, on grounds of materiality, no adjustment for loss of interest has been made to the balances reported within the annual accounts. 13. Financial Guarantee 13.1 In 2013/2014 the Council agreed to provide North Lanarkshire Properties LLP (NLP LLP) with a financial guarantee, underwriting the debt service costs of the NLP LLP loan of £45.0m to the lender, up to a limit of 80% of the total debt service costs. The Council considers the likelihood of the guarantee being called as minimal. However, the Council, in recognition of this financial guarantee made an initial provision of £1.1m which is assessed annually with a prudent provision being £0.152m at 31 March 2022. 13.2 The financial impact upon the Council of providing this guarantee is negated as the Council has agreed with the NLP LLP that a premium is payable to the Council for providing this guarantee, paid in annual instalments, on a fair value basis, over the term of the loan. The Council has therefore included a long-term debtor of £0.055m and a short-term debtor of £0.097m totalling £0.152m within the Balance Sheet to reflect this arrangement. 14. Treasury Management Advisory Service 14.1 During 2021/2022 the Council in line with the recommendations of the CIPFA Code of Practice for Treasury Management continued to use Arlingclose Ltd to provide, as required, additional specialist skills and resources in managing the Council’s loan debt and investment portfolio including strategic, economic advice and assistance with the investment policy. The current contract due to run until 1 July 2023 with the option of a one-year extension. Page 95 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 15. Policy on Repayment of Loans Fund Advances 2021/2022 15.1 The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 within Regulation 13 require the Council to make a loans fund advance equal to the amount of capital expenditure that the Council has determined will be financed by borrowing. The timing of the borrowing being in accordance with treasury management principles with the timing not informing when a loans funds advance has been made. The Capital Expenditure definition being that adopted by proper accounting practice, the statutory control framework and the Prudential Code. 15.2 The statutory guidance requires the Council to approve a policy on loans fund repayments each year. After carrying out an in-house review, of the existing Loans Fund Advance Repayment Policy, in light of the legislation, towards the end of the financial year 2019/2020, it was decided that to support this exercise that the Council appoint Link Asset Services (LAS) to carry-out a fuller review of the Council’s loan fund repayment model in 2020/21. LAS having specific expertise in this area and have carried out similar process for a number of other Scottish Local Authorities. 15.3 The main objective of the review was to explore options to re-profile loans fund repayments in order to assist with a prudent, sustainable and deliverable medium-term financial plan, whilst ensuring that the provision remains prudent and appropriate to the benefits that accrue to the community from the associated expenditure and is consistent with the prudential framework. 15.4 Following the review exercise being completed, a revised approach was recommended which was approved at the Finance and Resources Committee on the 26 November 2020 with further updates provided within the Treasury Management Strategy 2022/23 and Prudential Indicators 2022/2023 to 2024/2025 report approved at the Finance and Resources Committee on the 10 March 2022. 15.5 The revised approach adopting provisions within the 2016 Regulations which allow a local authority to subsequently vary either the period or the amount of the repayment (or both) if it considers it prudent to do so. 15.6 As a result of the revised policy loans fund advance repayment policy, the repayments of loans fund advances in 2021/22 were £2.3m and £148m less for the General Fund and Housing Revenue Account respectively, than they would have been adopting the previous methodology. 16. Regulatory Framework, Risk and Performance 16.1 The Council’s treasury management activities are regulated by a variety of professional codes and statutes and guidance. 16.2 The Local Government in Scotland Act 2003 (the Act) provides the powers to borrow and invest as well as providing controls and limits on this activity. The Act permits Scottish Ministers to set limits either on the Council or nationally on all local authorities restricting the amount of borrowing which may be undertaken (although no restrictions were made in 2021/2022). 16.3 Statutory Instrument (SSI) 29 2003 develops the controls and powers within the Act. The SSI requires the Council to undertake any borrowing activity with regard to the CIPFA Prudential Code for Capital Finance in Local Authorities. It also requires the Council to operate the overall treasury function with regard to the CIPFA Code of Practice for Treasury Management in the Public Services. 16.4 The Council continues to meet the conditions to opt up to professional status and has done so in order to maintain this MiFID II status. The Council’s ability to opt up is due to it having an investment balance of at least £10 million and the person(s) authorised to make investment decisions on behalf of the authority have at least a year’s relevant professional experience and the expertise, experience and knowledge to make investment decisions and understand the risks involved. This status allows the Authority to access a greater range of products including money market funds, pooled funds, treasury bills, bonds and shares. Page 96 of 274
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Treasury Management Annual Activity Report 2021/2022 Appendix 1 16.5 The Council has complied with all of the above relevant statutory and regulatory requirements. This limits the levels of risk associated with its treasury management activities. In particular, its adoption and implementation of both the Prudential Code and the Code of Practice for Treasury Management means that its capital expenditure is prudent, affordable and sustainable and its treasury practices demonstrate a low risk approach. 16.6 The Council is aware of the risks of passive management of the treasury portfolio and has proactively managed its treasury management position. The Council has continued to monitor movements in interest rates and has complied with its internal and external procedural requirements. There is little risk of volatility of costs in the current debt portfolio as the interest rates are mainly fixed. Shorter-term rates and likely future movements in these rates predominantly determine the Council’s investment return. Since these returns can be volatile, accurately forecasting future returns can be difficult and the treasury management section monitor and manage the surplus balances available for investment by efficient cashflow and liquidity management. 16.7 Overall the approach adopted by the Council’s Treasury Management section throughout the year under review met the key requirements of the 2021/2022 Treasury Management Strategy with the performance and results described above demonstrating the effectiveness of the Council’s Treasury Management activity. Page 97 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK / GT Date 14/09/22 Revenues and Benefits Update From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280601 1. Background 1.1 Financial Solutions is responsible for the administration and collection of all local taxation in North Lanarkshire in the form of Council Tax and Non Domestic Rates. 1.2 In addition, the service administers a number of Benefits for residents of North Lanarkshire including Housing Benefit, Council Tax Reduction, Scottish Welfare Fund, Discretionary Housing Payment, Free School Meals and Clothing Grants. Executive Summary This report provides an update on the performance within the Revenues and Benefits functions of Financial Solutions as at 31 July 2022. Key points to note include: • As at 31 July 2022, 42.3% of Council Tax due for 2022/23 had been collected. This is an increase of 4.7% on the same period last financial year but is largely attributable to cash received from the Scottish Government in respect of the Cost- of-Living Award. • Non-Domestic Rates collection has shown a year-on-year improvement from 21.5% to 31 July 2021 to 26.7% to 31 July 2022. • The service continues to meet statutory timescales for administering benefits applications and changes of circumstance. Recommendations It is recommended that Committee: (1) Acknowledges the content of the report. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions AGENDA ITEM 10 Page 99 of 274
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1.3 During the course of the Covid-19 health pandemic and with the current cost of living crisis, the Service has supported thousands of North Lanarkshire’s residents with support payments for schemes such as Self Isolation Support Grant, Winter Hardship Payment, and the North Lanarkshire Child Payment. 2. Report Council Tax 2.1 The graph below shows the cash collected at 31 July for each financial year. It is worth noting that cash is allocated to specific Council Tax years so the graph represents cash received against the initial billing year (i.e. billed and received in 2021/22) and does not include cash collected in subsequent years (i.e. billed in 2021/22 but received in 2022/23). This ensures a like for like comparison. 2.2 The collection figure for the current financial year of 42.3% is 4.7% higher than the same period last financial year. However, the current year collection figure has benefited from the impact of the Scottish Government’s Cost of Living Award. Total cash received from the Scottish Government of £18.6m has been allocated to 2022/23 which is inflating the overall collection figure. 2.3 Members will recall that this one-off £150 credit to Council Tax accounts for eligible households will reduce Council Tax bills throughout the financial year so it is expected that over the remainder of the financial year the cash collected will trend towards historic rates. 2.4 It should be noted that in year collection of Council Tax is a Statutory Performance Indicator. However, it does not reflect the overall collection rate of Council Tax which includes collection of prior year arrears. This latter measure has a greater bearing on the Council’s finances and is reflected in the regular budget monitoring reports. Non-Domestic Rates 2.5 The following graph shows the cash collected at 31 July for each financial year. 33 34 35 36 37 38 39 40 41 42 43 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23Percentage of annual billing collected (%) Financial Year Council Tax Collection Rate at 31 July Page 100 of 274
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2.6 The collection figure for 2022/23 at 31 July is 26.7%; 5.2% higher than the same period last financial year. The improvement during the current financial year is reflective of the impact of Covid restrictions and reliefs applicable during 2021/22. Current year collection is slightly lower than the last pre-Covid financial year in 2019/20 (27.9%). 2.7 The Scottish Government has now ended the 100% rates relief for the retail, hospitality, and leisure sectors for the 2022/23 financial year. In a change from the previous scheme, 50% relief is awarded to one property for the period 1 April to 30 June 2022. 2.8 The revised recovery processes for Non-Domestic Rates have been implemented during 2022/23 which has led to earlier recovery action commencing in May 2022. It is hoped that early engagement with businesses will improve the overall collection rates. Housing Benefits 2.9 The data below highlights the Statutory Performance Indicators measuring the speed of processing for new Housing Benefit claims and for changes in circumstances. The table shows the cumulative figures for the year to 31 July 2022. The Scottish average comparator is based on the latest information published by DWP at Q4 2021/22. Days to Process 2021/22 2022/23 Quarter 4 2021/22 Scotland Average New Claims 13 13 17 Change of Circumstances 6 6 3 2.10 The service continues to perform well in the speed of processing for new claims compared to the previous financial year and the most recent Scottish average. The service also continues to meet statutory requirements for the speed of processing changes of circumstance. Council Tax Reduction Scheme 2.11 As at 31 July 2022 a total of £24.513m in Council Tax Reduction has been awarded for the 2022/23 financial year. This compares to £24.630m to the same period during 2021/22, representing a small decrease of £0.475m. 0 5 10 15 20 25 30 35 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23Percentage of annual billing collected (%) Financial Year Non Domestic Rates Collection Rate at 31 July Page 101 of 274
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2.12 The service received 2,299 applications between 1 April and 31 July 2022 compared with 2,259 during the same period during 2021/22, representing an increase of 1.8%. 2.13 The service continues to see a downward trend in the volume of changes in circumstances requests. From 1 April to 31 July a total of 37,882 changes were processed compared to 45,893 the previous financial year; a decrease of 17.4%. Discretionary Housing Payments 2.14 From 1 April 2017 funding for DHP has been devolved to Scottish Government. This funding is made up from both the Scottish Government’s commitment to fully fund the implications of the Bedroom Tax and an additional sum available for other reasons such as the Benefit cap and the restrictions on Local Housing Allowance rates. 2.15 As at 31 July 2022 the total paid in respect of Bedroom Tax was £5.039m. In comparison this sum was £5.105m as at the same point in 2021. 2.16 In addition the Council also receives £0.603m in respect of non-bedroom tax related issues. In June 2022, the Scottish Government provided an additional £0.131m of funding. This increased the annual budget to £0.734m. As at 31 July 2022 £0.338m (46%) has been paid or committed from the fund. 2.17 The Service will continue to liaise with colleagues in Housing Solutions and Housing Associations to encourage applications to the fund. Scottish Welfare Fund 2.18 The Council has administered the Scottish Government’s Scottish Welfare Fund (SWF) since 1 April 2016. 2.19 The Scottish Government provides an annual award budget of £2.760m to North Lanarkshire Council. In recognising the current cost of living crisis, the Council’s Investment Budget for 2022/23 allocated an additional £0.500m on a one-off basis. In addition, the Council allocated £1.142m on a one-off basis from the Scottish Government’s Financial Insecurity Fund to support the maintenance of Scottish Welfare Fund at Medium priority during 2022/23. Therefore, the total award budget for 2022/23 is £4.402m. 2.20 There are two grant schemes and their relative performance to date during 2022/23 and prior year comparison is as follows: 2022/23 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 5,211 4,139 1,072 79.4% Community Care Grants 1,113 857 256 77.0% Total 6,324 4,996 1,328 79.0% 2021/22 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 5,259 3,859 1,400 73.4% Community Care Grants 1,623 1,375 248 84.7% Total 6,882 5,234 1,648 76.1% Page 102 of 274
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2.21 As at 31 July 2022, the total financial value of grants paid from the Scottish Welfare Fund amounted to £1.003m which represents 22.8% of the annual budget. 2.22 The service currently has a reducing backlog of Community Care Grant applications and resources have been realigned to improve performance. Self-Isolation Support Grant 2.23 On 12 October 2020, Scottish Government introduced a self-isolation support grant. The grant was initially intended to provide a £500 payment to those employed or self- employed on a qualifying benefit who will lose earnings as a result of being required to self-isolate and are unable to work from home. This scheme is being administered as a crisis grant. 2.24 The scheme was revised on 1 May to reflect changes in the public health advice relating to Covid-19 with the removal of asymptomatic testing on 18 April 2022 and symptomatic testing on 30 April. Eligible applicants are now entitled to an award of £225 with it now being linked to the Real Living Wage. In addition, the Scottish Government introduced a three claim cap in a 12 month period. 2.25 The legislation supporting the grant award expires on 31 October 2022 and the service is awaiting confirmation from the Scottish Government on the timing and communication of cessation of the grant availability. 2.26 During 2022/23 to date, the Council has received 1,167 applications and awarded a total of 553 with a combined value of £0.214m. 3. Measures of success 3.1 Continuous improvement in processing and collection rates. 4. Supporting documentation None Elaine Kemp Head of Financial Solutions Page 103 of 274
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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? 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 ☒ Page 104 of 274
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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? Page 105 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref NL/PF Date 14/09/22 Revenue Budget Monitoring Report; Chief Executives & Other Corporate Services 01.04.22 – 22.07.22 (Period 4) From Elaine Kemp, Head of Financial Solutions Email kempe@northlan.gov.uk Telephone 07939 280 601 Executive Summary This report provides a summary of the Chief Executive & Other Corporate Services financial performance for the period 1 April 2022 to 22 July 2022 (Period 4). The report illustrates the provisional outturn as at 31 March 2023, with major outturn variances highlighted and explained per the Council’s approved Financial Regulations. The Council approved its General Fund Revenue Budget on 17 February 2022, of which £93.763m currently represents the Net Revenue Budget for the Chief Executive & Other Corporate Services. The Service is currently projecting breakeven position for the financial year which includes £2.171m of approved COVID funding. In addition, the 2022/23 budget incorporates £3.290m savings in relation to Digital NL (2022/23 approved saving of £0.198m plus 2021/22 unachieved saving of £3.092m from 2021/22). In recognition of the challenges facing the implementation of this saving, Business and Digital were awarded £1.000m through the Ear Marked Reserve process resulting in a reduced savings target of £2.290m for 2022/23. However, Business and Digital will require to achieve the approved saving balance of £1.000m in 2023/24. The 2022/23 budget incorporates a further £0.163m of savings previously approved by Council. The Service is currently reviewing progress on achievement of all savings and will present an updated position in subsequent reports. The Service is currently reviewing progress on achievement and will present an updated position in subsequent reports. Recommendations It is recommended that Finance and Resources Committee: (1) acknowledge the financial position of the 2022/23 Chief Executive & Other Corporate Services revenue budget. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 11 Page 107 of 274
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1. Background 1.1 The Council’s approved Financial Regulations require the Chief Executive to remain within the approved budgetary provision, and to report all significant deviations - defined as the higher of £100,000 or 5% - within budget monitoring reports. Where significant deviations are identified, the Chief Executive 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 The Council approved its General Fund Revenue Budget on 17 February 2022, of which £93.565m (10.55%) represented the approved Revenue Budget for the Chief Executive & Other Corporate Services. Incorporation of the COVID Recovery budget of £2.171m and the realignment of Communities budgets have been included. Subsequent budget realignments in relation to the approved transfer of Services from Enterprise & Communities to Chief Executives of £0.198m has resulted in a revised budget of £93.763m. 2.1.2 The overall projected outturn position of the Service is a break-even position. Appendices one to five provide further information in respect of this position. 2.1.3 In light of the ongoing impact of COVID-19 and other financial pressures, Services have been requested to continue to implement mitigating actions to ensure the position is managed and the Council remains financially sustainable. The mitigating action includes a Council wide recruitment freeze and the curtailment of non-essential expenditure. 2.1.4 The 2022/23 budget incorporates £3.290m savings in relation to Digital NL (2022/23 approved saving of £0.198m plus 2021/22 unachieved saving of £3.092m from 2021/22). In recognition of the challenges facing the implementation of this saving, Business and Digital were awarded £1.000m through the Ear Marked Reserve process resulting in a reduced savings target of £2.290m for 2022/23. However, Business and Digital will require to achieve the approved saving balance of £1.000m in 2023/24. The 2022/23 budget incorporates a further £0.163m of savings previously approved by Council. The Service is currently reviewing progress on achievement of all savings and will present an updated position in subsequent reports. The Service is currently reviewing progress on achievement and will present an updated position in subsequent reports. Further information regarding savings is included in Appendix 5. 2.2 Analysis of Significant Variances 2.2.1 Employee costs are anticipated to be overspent by £1.000m as a result in the delay in Digital NL savings. In year management action has been taken by Business and Digital to support this overspend. 2.2.2 Supplies & Services are currently projected to be underspent by £1.000m due to management action taken by Business & Digital to support the delay in Digital NL savings. 2.3 Earmarked and One-Off Resources 2.3.1 In finalising the Council’s draft accounts to 31 March 2022, the service was given approval to earmark £5.519m of resources to fund key projects and initiatives profiled Page 108 of 274
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over a number of years. It is anticipated that £5.206m of the reserves balances will be utilised in 2022/23. A total of £0.312m of the remaining balance will be required for future years. Details of the Service’s earmarked funds are provided in Appendix 4. 2.3.2 It should be noted that the cost profiling for the DigitalNL approved £2.499m earmarked reserve has still to be completed and an updated position will be presented in subsequent reports. 2.3.3 Details of the Service’s earmarked funds are provided in Appendix 4. 2.3.4 The Service has not yet incurred any VRS costs relating to savings/restructures. There is therefore no requirement to utilise any of the Corporate Change Management fund at this time. Costs arising from 2022/23 savings/restructures will be reported in future reports as they are incurred 2.3.5 These costs are not included in the Service outturn position. 2.4 2022/23 Budget Savings 2.4.1 The Council approved savings of £3.290m savings in relation to Digital NL (2022/23 approved saving of £0.198m plus 2021/22 unachieved saving of £3.092m from 2021/22). In recognition of the challenges facing the implementation of this saving, Business and Digital were awarded £1.000m through the Ear Marked Reserve process resulting in a reduced savings target of £2.290m for 2022/23. However, Business and Digital will require to achieve the approved saving balance of £1.000m in 2023/24. The 2022/23 budget incorporates a further £0.163m of savings previously approved by Council. The Service is currently reviewing progress on achievement and will present an updated position in subsequent reports. 2.4.2 Appendix 5 provides a summary of the savings, including commentary in relation to challenging savings and any actions taken to address the funding gap which has arisen. 2.5 COVID-19 Costs 2.5.1 The approved COVID Recovery Budget has been incorporated with an additional net expenditure budget of £2.171m provided. This reflects anticipated increased costs of £1.982m, Lost income of £0.060m and additional investment of £0.129m. Details of the Service’s COVID Budget are provided in Appendix 6. 2.6 Management Actions 2.6.1 The Service is being pro-active to ensure expenditure is contained within its approved 2022/23 budget. 3. Measures of success 3.1 The Service continues to operate within approved budget resources. 4. Supporting documentation Appendix 1 Objective Summary Appendix 2 Subjective Summary Appendix 3 Payments to Other Bodies Appendix 4 Earmarked Reserves Appendix 5 Budget Savings Appendix 6 COVID Recovery Budget Page 109 of 274
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Elaine Kemp Head of Financial Solutions Page 110 of 274
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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? The Service is being pro-active to ensure expenditure is contained within its approved 2022/23 budget. 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? 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 ☐ Page 111 of 274
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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 ☒ 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? All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services manage these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. Reflecting the risk analysis matrix included within the Risk Management Strategy, the Service considers delays or amendments to savings proposals could present an ongoing risk to the financial outturn for 2022/23. To minimise risk this report has been prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations. Page 112 of 274
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APPENDIX 1 [1] [2] [3] [5] [6] [8] [9] [10] DIRECTORATE & SUPPORT 221,147 221,147 0 876,892 876,892 0 0.0% 0 FINANCIAL SOLUTIONS 10,488,528 10,488,528 0 47,932,562 47,932,562 0 0.0% 0 AUDIT & RISK 155,450 155,450 0 581,134 581,134 0 0.0% 0 LEGAL & DEMOCRATIC SOLUTIONS 783,192 783,192 0 2,261,626 2,261,626 0 0.0% 0 BUSINESS & DIGITAL 6,287,124 6,287,125 0 12,564,934 12,564,934 0 0.0% 0 PEOPLE & ORGANISATIONAL DEVELOPMENT 2,350,147 2,350,146 0 8,063,406 8,063,406 0 0.0% 0 STRATEGIC COMMUNICATIONS 1,387,067 1,387,066 0 5,160,273 5,160,273 0 0.0% 0 OTHER CORPORATE SERVICES 1,102,353 1,102,353 0 3,684,556 3,684,556 0 0.0% 0 JOINT BOARDS 4,352,955 4,352,955 0 12,637,971 12,637,971 0 0.0% 0 NET EXPENDITURE 27,127,962 27,127,962 0 93,763,354 93,763,355 0 0.0% 0 FAV = Favourable Variation, underspend etc ADV = Adverse Variation, overspend etc [4] [7] PROJECTED OUT-TURN VARIANCE PROJECTED OUT-TURN % PERIOD MOVEMENT ANALYSISDIVISION OF SERVICE BUDGET TO DATE ACTUAL TO DATE YEAR TO DATE VARIANCE ANNUAL BUDGET NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Objective Analysis Period 04 (01 April 2022 - 22 July 2022) A - Chief Executive's Page 113 of 274
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APPENDIX 2 [1] [2] [3] [5] [6] [8] [9] [10] EMPLOYEE COSTS 8,012,544 9,012,544 (1,000,000) ADV 35,593,687 36,593,688 (1,000,000) ADV (2.8%) (1,000,000) Digital NL - delay in sprint releases offset by underspend within contract lines PROPERTY COSTS 922,906 922,906 0 2,262,784 2,262,784 0 0.0% 0 SUPPLIES & SERVICES 5,941,853 4,941,853 1,000,000 FAV 10,181,662 9,181,662 1,000,000 FAV 9.8% 1,000,000 Digital NL - management action within B&D to offset delay in sprint releases associated with saving TRANSPORT & PLANT 20,087 20,087 0 162,939 162,939 0 0.0% 0 ADMINISTRATION COSTS 1,488,306 1,488,306 0 7,971,307 7,971,308 0 0.0% 0 PAYMENTS TO OTHER BODIES 4,132,997 4,132,997 0 20,145,033 20,145,033 0 0.0% 0 TRANSFER PAYMENTS 22,758,331 22,758,331 0 121,872,879 121,872,879 0 0.0% 0 CAPITAL FINANCING COSTS 0 0 0 4,072,342 4,072,342 0 0.0% 0 REVENUE FINANCING COSTS 0 0 0 0 0 0 0.0% 0 OTHER EXPENDITURE 2,034,340 2,034,340 0 3,847,047 3,847,047 0 0.0% 0 TOTAL EXPENDITURE 45,311,365 45,311,365 0 206,109,680 206,109,680 0 0.0% 0 INCOME (18,183,402) (18,183,402) 0 (112,346,326) (112,346,326) 0 0.0% 0 NET EXPENDITURE 27,127,962 27,127,963 0 93,763,354 93,763,354 0 0.0% 0 FAV = Favourable Variation, underspend etc ADV = Adverse Variation, overspend etc [4] [7] PROJECTED OUT-TURN VARIANCE PROJECTED OUT-TURN % PERIOD MOVEMENT ANALYSISCATEGORY BUDGET TO DATE ACTUAL TO DATE YEAR TO DATE VARIANCE ANNUAL BUDGET NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Subjective Analysis Period 04 (01 April 2022 - 22 July 2022) A - Chief Executive's Page 114 of 274
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APPENDIX 3 [1] [2] [3] [5] [6] [8] [9] [10] PAYMENTS TO OTHER BODIES GENERAL 1,905 1,905 0 4,570,782 4,570,782 0 0.0% 0 MEDICAL FEES 278 278 0 9,637 9,637 0 0.0% 0 AGENCY FEES 3,306 3,306 0 81,542 81,542 0 0.0% 0 TOWN TWINNING 0 0 0 3,533 3,533 0 0.0% 0 CHILDRENS PANEL 1,919 1,919 0 25,035 25,035 0 0.0% 0 COSLA ANNUAL LEVY 0 0 0 195,000 195,000 0 0.0% 0 COMMUNITY COUNCIL GRANTS 18,897 18,897 0 158,629 158,629 0 0.0% 0 GRANTS TO ORGANISATIONS 561,507 561,507 0 1,285,191 1,285,191 0 0.0% 0 EXTERNAL AUDIT FEE 0 0 0 529,389 529,389 0 0.0% 0 ELECTION PROVISION 0 0 0 0 0 0 0.0% 0 TOURISM - VISIT NORTH LANARKSHIRE 0 0 0 37,000 37,000 0 0.0% 0 SCOTTISH WELFARE FUND 845,803 845,803 0 2,759,844 2,759,844 0 0.0% 0 SUB-CONTRACTOR PAYMENTS 0 0 0 1,869 1,869 0 0.0% 0 LOCAL TAX PAYPOINT COMMISSION 2,427 2,427 0 35,000 35,000 0 0.0% 0 COSLA MIGRATION SCOTLAND 150,000 150,000 0 150,000 150,000 0 0.0% 0 LANDS VALUATION CONTRIBUTION 525,750 525,750 0 2,105,910 2,105,910 0 0.0% 0 SPT CONTRIBUTION 1,356,228 1,356,228 0 5,453,118 5,453,118 0 0.0% 0 SPT CONCESSIONARY FARES CONTRIBUTION 142,977 142,977 0 572,943 572,943 0 0.0% 0 CUSTOMER FIRST CONTRIBUTION 522,000 522,000 0 2,700,000 2,700,000 0 0.0% 0 TOTAL EXPENDITURE 4,132,998 4,132,998 0 20,674,422 20,674,422 0 0.0% 0 FAV = Favourable Variation, underspend etc ADV = Adverse Variation, overspend etc [4] [7] PROJECTED OUT-TURN VARIANCE PROJECTED OUT-TURN % PERIOD MOVEMENT ANALYSISCATEGORY BUDGET TO DATE ACTUAL TO DATE YEAR TO DATE VARIANCE ANNUAL BUDGET NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Payments to Other Bodies Period 04 (01 April 2022 - 22 July 2022) A - Chief Executive's Page 115 of 274
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APPENDIX 4 Value % Service Specific Earmarked Reserves: Support Plan for North Lanarkshire L&D 100 0 100 0 100 100.0% 0 100 Digitisation Reserve B&D 2,499 (180) 2,319 404 2,319 100.0% 0 2,319 Budget required in 2023/24 per original phasing Digital Savings B&D 1,000 0 1,000 1,000 1,000 100.0% 0 1,000 Family Firm POD 173 0 173 10 173 100.0% 0 173 Creation of Learning Academy POD 100 0 100 0 100 100.0% 0 100 Creation of Construction Academy POD 300 0 300 0 300 100.0% 0 300 Customer Services Hub SC 262 (132) 130 33 130 100.0% 0 130 Delay in appointment of staff, balance of EMR required in 2023/24 Cumbernauld Theatre SC 35 0 35 0 35 100.0% 0 35 VANL (New) SC 60 0 60 0 60 100.0% 0 60 LDP Prog Play Areas and additional projects SC 500 0 500 0 500 100.0% 0 500 Recover NL - grant award prog SC 172 0 172 0 172 100.0% 0 172 Ukraine Humanitarian Appeal MM 15 0 15 15 15 100.0% 0 15 Change Management / Non-Service Specific: CLNL Insourcing POD / B&D 168 0 168 37 168 100.0% 0 168 CLNL ICT Development 135 0 135 0 135 100.0% 0 135 TOTAL 5,519 (312) 5,206 1,499 5,206 100.0% 0 5,206 Reserves No Longer Required Reserves Required In Year Commentary Regards Usage NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Status of Earmarked Reserves Period 04 (01 April 2022 - 22 July 2022) A - Chief Executive's FINANCIAL YEAR - 2022/23 DESCRIPTION OF EARMARKED RESOURCE DIVISION Reserve Allocation Adjustments In Year Approved Reserve Total Spend to Date Projected Spend Page 116 of 274
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APPENDIX 5 £000 £000 £000 £000 £000 Digital NL B&D 198 0 198 Management action taken within other budgets in current year 198 0 Reduction of ESC Admin posts POD 163 163 0 0 0 TOTAL 361 163 198 198 0 CommentaryDESCRIPTION OF APPROVED SAVING DIVISION Target Value Value Deliverable Saving Gap APPROVED SAVINGS REPLACEMENT SAVING / FUNDING DESCRIPTION Value BUDGET GAP NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Savings Period 04 (01 April 2022 - 22 July 2022) A - Chief Executive's Page 117 of 274
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APPENDIX 6 £000 £000 £000 £000 Costs: Increased Costs 1,982 1,982 0 0 Reduced Costs 0 0 0 0 Lost Income 60 60 0 0 Income Over-Recovery 0 0 0 0 Delay in Achievement of Savings 0 0 0 0 Unavoidable Investment Commitments 0 0 0 0 Other 0 0 0 0 Investment Proposals Agreed 129 129 0 0 Contingencies 0 0 0 0 Service Costs Total 2,171 2,171 0 0 Income: Earmarked COVID Funding (2,171) (2,171) 0 0 Service Contributions 0 0 0 0 NLC Use of Reserves 0 0 0 0 21/22 COVID Funding - GRG 0 0 0 0 21/22 COVID Funding - RF 0 0 0 0 Service Income Total (2,171) (2,171) 0 0 TOTAL NET COSTS (0) (0) 0 0 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Forecast COVID-19 Costs Period 03 (01 April 2022 - 24 June 2022) A - Chief Executive's CommentaryDESCRIPTION OF COVID-19 COSTS BUDGET PROJECTED OUT-TURN PROJECTED OUT-TURN VARIANCE PERIOD MOVEMENT Page 118 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/KS/VR/SD Date 14/09/22 Revenue Monitoring Report Council Summary 1 April 2022 to 22 July 2022 From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 Executive Summary This report updates the Finance and Resources Committee on the overall position for the General Fund Account, Housing Revenue Account and Adult Health and Social Care, for the financial year to 31 March 2023. The report consolidates the budget monitoring position of all Services, highlighting and explaining major variances as per the Council’s approved Financial Regulations. The Council approved its General Fund Revenue Budget on 17 February 2022. Following notification from Scottish Government of further funding made available to local authorities the budget has been revised to £875.141m. The Council is currently projecting a small surplus of £0.158m against this budget. The 2022/23 budget incorporates £10.484m of net savings with resources of £3.372m set aside to manage the impact of delayed implementation, reducing the current year target to £7.112m. It is projected that £5.222m of the approved savings (50%) will be delivered within the financial year (73% of the in year reduced target), with replacement savings identified to fully address the shortfall. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the financial position of the 2022/23 revenue budget; (2) Otherwise endorse the contents of this 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 AGENDA ITEM 12 Page 119 of 274
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1. Background 1.1. The 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 General Fund Financial Position 2.1.1. At its meeting of 17 February 2022, the Council approved a General Fund Revenue Budget of £887.270m. This included spend which is offset by ring fenced grants of £50.126m resulting in an opening budget position for Net Service Expenditure of £837.144m. Additional funding has since been confirmed as part of the Scottish Government budget setting, including additional directed funding to the Adult Health and Social Care, Free School Meal Expansion monies increasing the budget to £875.141m. 2.1.2. Following the budget setting in February the Council has an approved savings target £10.484m for 2022/23. However, £2.000m of one-off resources has been set aside from General Fund reserves to manage the financial impact of the delayed implementation of the Active in Creative Communities saving of £3.058m, and £1.372m has been earmarked from the IJB reserves in respect of the delayed closure of the Muirpark facility. These actions reduce the overall savings requirement in 2022/23 to £7.112m. Further detail can be found in Section 2.3 below. 2.1.3. Table 1 below summarises the projected income and expenditure position, which illustrates a small surplus of £0.158m is currently envisaged at this early stage in the financial year. Annual Budget (£m) Projected Outturn (£m) P4 Variance (£m) Expenditure Net Service Expenditure 893.683 893.535 0.158 Financing Costs (40.730) (40.730) - Other Budgetary Issues 22.188 22.188 - Total Expenditure 875.141 875.041 0.158 Income Aggregate External Finance 711.092 711.092 - Local Tax Collection 158.049 158.049 - Use of Balance 6.000 6.000 - Total Income 875.141 875.141 - Projected variance: Surplus/(Deficit) at 31 March 2023 - 0.158 0.158 Table 1 Page 120 of 274
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2.2. Analysis of Significant Variations 2.2.1. Table 2 below illustrates Services’ projected outturn financial positions, which illustrates a small underspend in the Education and Families Service. Service P4 Outturn (£m) Education and Families 0.158 Underspend Enterprise and Communities - On Budget Chief Executives and Other Corporate Services - On Budget Social Work (Non-Integrated) - On Budget Executive Services Total 0.158 Underspend Financing Costs - On Budget Budget Assumptions - On Budget Total 0.158 Underspend Table 2 2.2.2. Education and Families is reporting a small projected underspend of £0.158m. This position is represented by a projected underspend in employee costs £3.659m largely due to delays in recruitment, predominantly offset by overspends in relation to ASN transport (£1.385m) and mainstream contract inflation (£0.615m), in addition to increased payments for ASN placements (£0.700m) and Family Placements (£0.800m), due to cost pressures associated with External Fostering and Kinship Care Placements. 2.2.3. Enterprise and Communities are reporting a breakeven position, with property costs projected to be over budget by £0.153m due to a delay in delivering office accommodation savings, which is largely offset by underspends in catering supplies through lower than anticipate volume of food purchases of £0.137m, and other minor budget savings. 2.2.4. Chief Executives and Other Corporate Services are also projecting a breakeven position. However, this reflects an estimated £1.000m overspend in respect of a delay in achievement of previously approved Digital NL savings, which at this stage is expected to be managed through lower than budgeted contract costs, mainly due to a delay in transferring to a cloud environment, thus reducing the forecast cloud consumption costs. 2.3. 2022/23 Budget Savings 2.3.1. As outlined in paragraph 2.1.2 above, the Council has approved net savings of £10.484m for 2022/23. After taking account of the £3.372m one-off resources set aside to manage the delayed implementation of savings, the overall savings target is £7.112m. Each Service reports on the achievement of their savings within the relevant Page 121 of 274
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Services’ monitoring report. It is projected that £5.222m (50%) of the original approved saving will be achieved (73% of the current year target). It is anticipated that the remaining in year gap of £1.890m will be fully mitigated by replacement savings during the year, and implemented in future years. 2.4. Earmarked Reserves and Change Management Fund 2.4.1. The Council’s draft annual accounts currently highlight a General Fund reserve balance of £239.229m. This balance includes £8.000m for the Contingency Reserve. There is also a total of £169.086m earmarked for specific future commitments including £30.551m in relation to COVID and £54.175m to support the future contractual obligations in respect of PPP schools, following a change in presentation in respect of such balances, as discussed and agreed with Audit Scotland. A further £29.424m has been allocated to the Change Management Fund to support future budget pressures, one-off costs of existing approved savings and to ensure the Council has a resilient and sustainable strategic financial plan. This leaves £32.718m of unallocated balances. 2.4.2. A total of £103.172m of earmarked reserves are profiled for use in 2022/23 with a further £65.915m profiled for use in future years. It is currently projected that 2022/23 earmarked reserves will be fully spent during the financial year 2022/23. A summary position in respect of the above is shown in Appendix 2. 2.4.3. The unallocated reserves will change depending on overall financial performance year on year, unexpected commitments and to account for future drawdowns from the capital fund. Therefore, reflecting the forecast in year surplus £0.158m and the capital fund drawdown of £0.396m, the unallocated General Fund balance is currently forecast to reach £33.272m by the financial year end. Appendix 3 summarises this position. 2.5. Risks and Uncertainty 2.5.1. All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services manage these as part of their overall corporate and service planning processes. The current economic climate such as the rising forecast of pay and non-pay inflation, on-going COVID impact, the cost of living crisis and other external factors, have the potential to impact upon the Council’s ability to provide quality services within approved budget levels. 2.6. Housing Revenue Account 2.6.1. The Housing Revenue Account is currently projecting a breakeven position for the financial year and anticipate that £1.849m of savings (100%) will be delivered by the year end. 2.7. Adult Health and Social Care 2.7.1. Council Adult Health and Social Care provision to the Integration Joint Board (IJB) is projecting an underspend of £4.834m. This position is primarily due to a projected underspend in employee cost of £3.018m as a result of slippage in recruitment of posts relating to “Winter Planning and Enhanced Support”, a projected under spend in payments to other bodies of £1.241m as a result of staff shortages within the care at home sector SDS commissioning framework and a projected underspend in administration costs of £0.920m due to lower than anticipated Carers costs. This is partially offset by a projected under recovery in income of £0.368m mostly due to committed income from NHSL in relation to the Integrated Equipment and Adaptations services being lower than budgeted historic levels coupled with lower than anticipated receipts from charges Community Alarms and Integrated Day Services. Page 122 of 274
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3. Measures of success 3.1. The Council continues to operate within approved budgeted resources. 4. Supporting documents Appendix 1 Summary by Division Appendix 2 Anticipated Commitments – Earmarked Reserves Appendix 3 Availability of One-Off Funds – Change Management Fund Elaine Kemp Head of Financial Solutions 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? 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? Page 123 of 274
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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 ☒ 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? Page 124 of 274
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LINE SERVICE ACCOUNT BUDGET ACTUAL VARIANCE ANNUAL PROJECTED NO. TO DATE TO DATE TO DATE BUDGET OUTTURN (1) (2) (3) (4) (5) (6) (7) £ £ £ £ £ £ 1 Education & Families 116,363,387 116,363,387 - 465,090,462 464,931,737 158,725 2 Early Years 8,648,190 8,648,190 - 31,788,724 31,788,724 - 3 Primary Schools 28,436,794 28,436,794 - 128,030,242 128,030,242 - 4 Secondary Schools 29,425,763 29,425,763 - 127,090,309 127,090,309 - 5 Special Schools 5,103,569 5,103,569 - 20,176,565 20,176,565 - 6 Education & Families Service Delivery 28,547,607 28,547,607 - 81,760,326 81,801,601 (41,275 ) 7 Childrens Services Social Work 9,109,475 9,109,475 - 36,734,528 36,534,528 200,000 8 Justice Services 649,363 649,363 - 73,431 73,431 - 9 Active and Creative Communities 1,397,568 1,397,568 - 25,074,035 25,074,035 - 10 Employability 2,160,605 2,160,605 - 3,913,759 3,913,759 - 11 Community Learning 1,568,294 1,568,294 - 5,236,818 5,236,818 - 12 Welfare 827,057 827,057 - 2,072,882 2,072,882 - 13 Strategy for Young People 489,102 489,102 - 3,138,843 3,138,843 - 14 Enterprise & Communities 36,068,884 34,575,628 1,493,256 146,129,308 146,129,308 - 15 Environmental Assets 7,154,070 6,968,695 185,375 47,859,081 47,859,081 - 16 Regulatory Services & Waste Solutions 10,672,899 11,100,512 (427,613 ) 37,381,082 37,381,082 - 17 Assets & Procurement 12,039,834 12,085,555 (45,721 ) 38,737,052 38,737,052 - 18 Planning & Regeneration 2,447,827 1,117,330 1,330,497 9,764,279 9,764,279 - 19 Communities - - - - - - 20 Housing Solutions 1,393,518 958,407 435,111 5,380,338 5,380,338 - 21 Directorate & Support - - - - - - 22 Business, Housing Property & Projects 2,151,102 2,197,582 (46,480 ) 7,603,018 7,603,018 - 23 Trading Accounts 209,634 147,547 62,087 (595,542 ) (595,542 ) - 24 Chief Executives & Other Corporate Services 27,127,963 27,127,963 - 93,763,354 93,763,354 - 25 Directorate & Support 221,147 221,147 - 876,892 876,892 - 26 Fiancial Solutions 10,488,528 10,488,528 - 47,932,562 47,932,562 - 27 Audit & Risk 155,450 155,450 - 581,134 581,134 - 28 Legal & Democratic Solutions 783,192 783,192 - 2,261,626 2,261,626 - 29 Business & Digital 6,287,124 6,287,124 - 12,564,934 12,564,934 - 30 People & Organisational Development 2,350,147 2,350,147 - 8,063,406 8,063,406 - 31 Strategic Communication 1,387,067 1,387,067 - 5,160,273 5,160,273 - 32 Other Corporate Services 1,102,353 1,102,353 - 3,684,556 3,684,556 - 33 Joint Boards 4,352,955 4,352,955 - 12,637,971 12,637,971 - 34 Social Work (non Integrated) 186,494,159 186,494,159 - 188,700,126 188,700,126 - 35 GENERAL FUND SERVICES 366,054,393 364,561,137 1,493,256 893,683,250 893,524,525 158,725 (158,725 ) 36 FINANCING COSTS 1,121,940 1,121,940 - (40,729,875 ) (40,729,875 ) - 37 Reversal of Capital Charge (22,476,936 ) (22,476,936 ) - (73,050,041 ) (73,050,041 ) - 38 Loan Charges 10,175,436 10,175,436 - 33,070,166 33,070,166 - 39 Intrest on Revenue Balances (230,769 ) (230,769 ) - (750,000 ) (750,000 ) - 40 OTHER BUDGETARY ISSUES 6,827,105 6,827,105 - 22,188,090 22,188,090 - 41 Assumptions not yet Realised 6,827,105 6,827,105 - 22,188,090 22,188,090 - 42 TOTAL EXPENDITURE 374,003,438 372,510,182 1,493,256 875,141,465 874,982,740 158,725 43 SOURCES OF FUNDING 269,274,297 269,274,297 - 875,141,465 875,141,465 - 44 Aggregate External Finance 218,797,538 218,797,538 - 711,092,000 711,092,000 - 45 Council Tax 48,630,605 48,630,605 - 158,049,465 158,049,465 - 46 Use of balances 1,846,154 1,846,154 6,000,000 6,000,000 47 SURPLUS / (DEFICIT) (104,729,141 ) (103,235,885 ) (1,493,256 ) - (158,725 ) 158,725 48 HOUSING REVENUE ACCOUNT SURPLUS / (DEFICIT) (14,118,217 ) (14,249,952 ) 131,735 - - - 49 ADULT HEALTH AND SOCIAL CARE SURPLUS / (DEFICIT) (21,186,923 ) (22,674,405 ) 1,487,482 - (4,834,316 ) 4,834,316 Appendix 1 NORTH LANARKSHIRE COUNCIL SUMMARY BY DIVISION FOR PERIOD ENDING 22 July 2022 (PERIOD 4) PROVISIONAL VARIANCES Page 125 of 274
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Appendix 2 Total Total Reserve Balances 2022/23 Revised Earmarked Reserve 22/23 Projected Spend Anticipated Year End Balance Anticipated Future Year Use No Longer Required Profiled for Future Years Anticipated Future Year Use No Longer Required No Longer Required £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Change Management Fund 29,424 29,424 1,624 27,800 - - 27,800 27,800 - - Earmarked & One Off Resources Schools Future Contractual Obligations 54,175 - - - 54,175 - 54,175 54,175 - - COVID-19 Directed Funding 6,392 6,392 6,392 - - - - - - - COVID-19 General Funding 21,159 19,397 19,397 - 1,762 - 1,762 1,762 - - Covid Recovery (From Core) 3,000 3,000 3,000 - - - - - - - Early Learning and Childcare 14,249 7,490 7,490 - 6,759 - 6,759 6,759 - - Strategice Workforce Planning 13,000 13,000 13,000 - - - - - - - Temporary Accomodation 9,288 9,288 9,288 - - - - - - - 2022/23 Budget One-off Investment 6,000 6,000 6,000 - - - - - - - DSM Balances 5,332 5,332 5,332 - - - - - - - Winter Reserve 1,500 1,500 1,500 - - - - - - - Youth Guarantee Funding 2,367 2,367 2,367 - - - - - - - Pupil Equity Fund 5,122 5,122 5,122 - - - - - - - Energy Costs and Other Non Pay Inflation 7,220 7,220 7,220 - - - - - - - Digitisation 2,499 2,319 2,319 - 180 - 180 180 - - Enterprise Contract 1,686 1,000 1,000 - 686 - 686 686 - - Business Gateway & Business Recovery 1,700 801 801 - 899 - 899 899 - - Active and Creative Communitites 2,000 2,000 2,000 - - - - - - - Rapid Rehousing (Non-COVID) 1,159 500 500 - 659 - 659 659 - - Other Earmarked Funds 11,239 10,444 10,444 - 795 - 794 794 - - Earmarked & One Off Resources Total 169,087 103,172 103,172 - 65,915 - 65,914 65,914 - - Total Reserves 198,511 132,596 104,796 27,800 65,915 - 93,714 93,714 - - Contingency Reserve 8,000 Unallocated Balance 32,718 General Fund Surplus at 31 March 2019 239,229 NORTH LANARKSHIRE COUNCIL ANTICIPATED COMMITMENTS AGAINST EARMARKED RESERVES AS AT 22 July 2022 (PERIOD 4) 2022/23 Future Years Page 126 of 274
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Appendix 3 £000 £000 Total Balance B/f per 2021/22 Unaudited Accounts 29,424 32,718 Period 4 reported underspend 158 Total Balance 2022/23 before commitments 29,424 32,876 Known Commitments :- Revised one - off costs of approved savings (1,624) Draw down from Capital Fund 396 Total Balance 2022/23 27,800 33,272 Estimated future Commitments to 2026/27 (27,800) Estimated future Capital Fund Drawdown to 2023/24 1,000 Forecast Balance 0 34,272 NORTH LANARKSHIRE COUNCIL AVAILABILITY OF GENERAL FUND BALANCES AS AT 22 July 2022 (PERIOD 4) Change Management Fund Unallocated General Fund Page 127 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/RMcN Date 14/09/22 Capital Programme 2022/23 Monitoring Report From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 1. Background 1.1 The Strategic Capital Investment Programme 2021/22 to 2025/26 was originally approved at Policy and Strategy Committee in March 2021, with an updated programme profile for 2022/2023 to 2025/2026 approved in March 2022 and represents the total Community Investment Programme incorporating the General Services Capital Programme and HRA Capital Programmes. The programme was developed in conjunction with Services and led by the Strategic Capital Delivery Group (SCDG) using the principles established by the Council’s Capital Strategy. 1.2 The General Services Capital Programme supported by General Services resources demonstrates to communities that the place making visions for towns remains a priority, and that the Council considers the approved 5-year capital investment plan to be a major boost to assist the recovery of the local economy. It is also a clear statement that the Council is planning beyond the pandemic to deliver on the long-term needs and aspirations of communities. The programme includes additional investment in Town and Community Hubs, the City Deal programme, and external grant funding. 1.3 In addition, the Housing Revenue Account (HRA) resources support several HRA Capital Investment Programmes including Mainstream, Ambition, New Build and Council Buy Back scheme. Executive Summary The purpose of the report is to provide an update on the 2022/23 resources and expenditure for the Council's Strategic Capital Investment Programme. The report also shows the 2022/23 projected outturn position and the resultant variances. Recommendations It is recommended that the Committee: (1) Acknowledges the financial position of the Council’s Strategic Capital Investment Programme as at 22 July 2022. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 13 Page 129 of 274
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1.4 The 2022/2023 General Services Capital Programme is £199.005m with a £103.358m investment programme in relation to the Housing Revenue Account. The budget reflects the approved budget in March 2022 at Policy and Strategy Committee and subsequent decisions made at the Strategic Capital Delivery Group (SCDG) in accordance with the SCDG terms of reference and where appropriate either by the individual service committees, Finance and Resources Committee or the Policy and Strategy Committee per the Scheme of Administration. Appendix 1 provides a breakdown of the overall 2022/23 budget by Service Programme and associated approved budget movements. 2. Report 2.1 Overall Council Strategic Capital Investment Programme 2.1.1 The overall Council Strategic Capital Investment programme for 2022/23 and the projected outturn to the 31 March 2023 is summarised in Table 1 below: Table 1 Community Capital Investment Programme Summary 2022/23 Current Programme £000s Projected Outturn £000s Outturn Variance £000s Enterprise & Communities 178,647 178,647 0 Chief Executives 17,854 17,854 0 Adult Health & Social Care 2,504 2,504 0 General Services: Total Capital Investment 199,005 199,005 0 General Services Resources: Net External Grants & Contributions 68,370 68,370 0 Capital Receipts 1,000 4,521 3,521 Capital Receipts -Transfer to Capital Fund 0 (3,521) (3,521) CFCR 3,849 3,849 0 General Services: Total Resources 73,219 73,219 0 General Services : Borrowing Requirement 125,786 125,786 0 HRA : Total Capital Investment 103,358 103,358 0 HRA Resources: Net External Grants & Contributions 17,122 17,122 0 Capital Receipts 0 2 2 CFCR 27,146 27,146 0 HRA : Total Resources 44,268 44,270 2 HRA : Borrowing Requirement 59,090 59,088 (2) Summary Total Council : Capital Investment 302,363 302,363 0 Total Council : Resources 117,487 117,489 2 Total Council : Borrowing Requirement 184,876 184,874 (2) Page 130 of 274
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2.1.2 On a budgeted programme of £302.363m expenditure is on budget at this early stage of the financial year. Further financial performance information regarding each of the programmes is discussed in section 2.2 and 2.3 below. 2.2 General Services Capital Programme and Projected Outturn by Service/ Programme 2.2.1 The financial performance of the overall General Services Investment programme at 31 March 2023 is detailed in Appendix 2 and summarised below. General Services Total Resources 2.2.2 The revised programme approved by the SCDG is £199.005m with total resources available to meet the current programme forecast to be £73.219m, resulting in a borrowing requirement of £125.786m. 2.2.3 In 2022/23 net external grants and contributions of £68.370m will be utilised. This capital resource primarily includes the Scottish Government (SG) General Capital Grants receivable of £23.681m and other specific SG Grants including City Deal £20.532m, the Place Based Investment Programme (PBIP) £2.436m, Vacant and Derelict Land Fund (VDLF) £2.058m, Regeneration Capital Grant Fund (RCGF) £3.221m, Active Travel £2.184m, Strathclyde Passenger Transport (SPT) £1.725m and Nature Restoration Fund £0.274m. In addition, capital grants received in 2021/22 have been added to the programme including £2.912m for VDLF, £1.315m for PBIP, £1.170m for RCGF, £0.324m for Play Parks, £0.321m for CO2 monitors and £0.272m for Early Years Expansion grant, these applied in the current year to match expenditure as it is incurred, and grant conditions met. Whilst at Period 4 it is anticipated that all capital grant funding will be utilised in 2022/23 this will be monitored closely as the year progresses. 2.2.4 Receipts from the sale of assets are projected to be £4.521m, which is £3.521m greater than the budget of £1.000m. In accordance with the approach agreed within the Strategic Capital Investment Programme 2021/22 to 2025/26, capital receipts above the budgeted level of £3.521m will be transferred to the Capital Fund and drawn down to support the Council’s Change Management Fund requirements. General Services Total Expenditure 2.2.5 As indicated in Table 1 the General Services investment programme is £199.005m. At Period 4, the final outturn spend is anticipated to be on budget. However, the investment programme continues to face a number of risks and challenges associated with programme delivery including inflationary pressures as contractors continue to face issues with the supply of both labour, equipment and materials. The Council’s SCDG continues to monitor the situation closely. Further analysis by service/ programme is outlined below and summarised within Appendix 2. 2.2.6 Enterprise and Communities are projecting outturn expenditure of £178.647m, which is on budget. Committed expenditure of £78.561m is currently reported, which represents 43.98% of the targeted expenditure, and actual expenditure is £21.740m. 2.2.7 Chief Executives are projecting total expenditure of £17.854m, which is on budget. Committed expenditure of £2.778m is currently reported, which represents 15.56% of the targeted expenditure, and actual expenditure is £2.778m. 2.2.8 Adult Health & Social Care projected outturn expenditure is £2.504m, which is on budget. Committed expenditure of £0.216m is currently reported, which represents 8.63% of the targeted expenditure, and actual expenditure is £0.216m. Page 131 of 274
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2.3 HRA Capital Investment 2.3.1 The financial performance of the HRA Capital Programme is reported in detail to the Housing and Regeneration Committee. A summary of performance as at 22 July 2022 is provided at Appendix 3. Total expenditure of £103.358m is forecast for 2022/23 which is on budget. Committed expenditure of £94.169m is currently reported, which represents 91.06% of the targeted expenditure, and actual expenditure is £23.016m. 3. Measures of success 3.1 N/A 4. Supporting documentation 4.1 Appendix 1: Strategic Capital Investment Programme 2022/23 budget movements Appendix 2: General Services Capital Investment Programme Summary 2022/23 Appendix 3: HRA Capital Investment Programme Summary 2022/23 Elaine Kemp Head of Financial Solutions Page 132 of 274
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5. Impacts 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 ☐ The financial impact is outlined within the report. 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? 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 ☒ If Yes, please provide a brief summary of the impact? Page 133 of 274
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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 ☐ Despite the updated programme phasing approved at Policy and Strategy Committee on 17 March 2022 the capital programme continues to face ongoing delivery risks and challenges. These are currently being managed by services and Project Boards associated with specific programme delivery and will continue to be monitored throughout the year in accordance with the SCDG Terms of Reference. Page 134 of 274
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2022/23 Strategic Capital Investment Programme – budget movements Appendix 1 Enterprise & Communities Chief Executives Adult Health &Social Care Corporate Total General Services Investment Programme Total HRA Investment Programme Total Community Investment Programme £000s £000s £000s £000s £000s £000s £000s 22/23 Opening programme approved Policy& Strategy Committee 17 March '22 157,167 17,352 2,600 0 177,119 103,358 280,477 21/22 Overs/Unders Carry Forward 5,796 178 (96) 0 5,878 0 5,878 22/23 Budget adjustments approved by SCDG 0 0 0 0 0 0 0 22/23 Policy & Strategy Committee reprofiling 0 0 0 0 0 0 0 Increase/(Decrease) in Externally Funded Projects 11,835 324 0 0 12,159 0 12,159 CFCR 3,849 0 0 0 3,849 0 3,849 22/23 re-profiling of projects to future years 0 0 0 0 0 0 0 Revised Capital Programme 2022/23 178,647 17,854 2,504 0 199,005 103,358 302,363 Page 135 of 274
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General Services Capital Investment Programme Summary 2022/23 - as at 31 March 2023 Appendix 2 Investment Current Programme 2022/23 £000s Projected Outturn 2022/23 £000s Outturn Variance 2022/23 £000s Committed Expenditure @ P4 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P4 £000s Enterprise & Communities 178,647 178,647 0 78,561 43.98% 21,740 Chief Executives 17,854 17,854 0 2,778 15.56% 2,778 Adult Health & Social Care 2,504 2,504 0 216 8.63% 216 Total General Services Investment 199,005 199,005 0 81,555 40.98% 24,734 General Services Resources; External Grants & Contributions 2022/23 61,246 61,246 0 External Grants & Contributions b/f 2021/22 7,124 7,124 0 External Grants & Contributions Unapplied cfwd to 2022/23 0 0 0 Net External Grants & Contributions 68,370 68,370 0 CFCR 3,849 3,849 0 Capital Receipts 1,000 4,521 3,521 Capital Receipts - Transfer to Capital Fund 0 (3,521) (3,521) Total Resources 73,219 73,219 0 Borrowing Requirement: General Services 125,786 125,786 0 Total General Services Borrowing Requirement 125,786 125,786 0 Total Resources incl Borrowing Requirement 199,005 199,005 0 Page 136 of 274
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HRA Capital Investment Programme Summary 2022/23 - as at 31 March 2023 Appendix 3 Investment Current Programme 2022/23 £000s Projected Outturn 2022/23 £000s Outturn Variance 2022/23 £000s Committed Expenditure @ P4 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P4 £000s Mainstream Programme 52,950 52,950 0 52,950 100.00% 14,007 New Build Programme 39,436 39,436 0 39,436 100.00% 8,653 Council Buy Back Scheme 10,972 10,972 0 1,783 16.98% 356 Total HRA Investment 103,358 103,358 0 94,169 91.06% 23,016 HRA Capital Resources; External Grants & Contributions 17,122 17,122 0 External Grants & Contributions Unapplied 0 0 0 Net External Grants & Contributions 17,122 17,122 0 CFCR 27,146 27,146 0 Capital Receipts 0 2 2 Total Resources 44,268 44,270 2 Borrowing Requirement: HRA - Mainstream 30,474 30,472 (2) HRA - New Build 21,788 21,788 0 HRA - Buyback Scheme 6,828 6,828 0 Total Borrowing Requirement 59,090 59,088 (2) Total Resources incl Borrowing Requirement 103,358 103,358 0 Page 137 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/PF/SW Date 14/09/22 Chief Executive Service – Capital Monitoring Report 1 April to 22nd July 2022 (Period 4) From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 1. Background 1.1 This report provides a summary of the Chief Executive financial performance for the period 1 April 2022 to 22 July 2022 (Period 4). The report illustrates the provisional outturn as at 31 March 2023, with major outturn variances highlighted and explained per the Council’s approved Financial Regulations. 1.2 The Council approved its Capital 5-year programme at Policy and Strategy Committee on 18 March 2021 with an allocated budget of £13.036m for the current year. During 2021/22 budget realignments to future years of the programme were approved resulting in £4.316m being realigned to 2022/23. In addition, external funding of £0.324m plus carry forwards of the preceding capital programme of £0.178m have been added to the current year budget. This has resulted in a revised Capital Programme of £17.854m, for the 2022/23 Financial Year as detailed in Appendix 1 of this report. Executive Summary This report highlights the financial performance and provisional outturn of 2022/23 Chief Executive capital programme for the period ended 22 July 2022 (Period 4). In summary the Service has a total capital budget of £17.854m. The Service is projecting a break-even position at this stage of the financial year. Further explanation of project variances and management action taken by the Service is included within the main report and attached appendices. Recommendations It is recommended that the Finance and Resources Committee: (1) Considers the financial position of the 2022/23 Chief Executive capital programme. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 14 Page 139 of 274
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1.3 The Council’s approved Financial Regulations require the Chief Executive to remain within approved budgetary provision, and to report all significant deviations – defined as the higher of £0.100m or 5% - within their budget monitoring reports. Where significant deviations were identified, budget holders 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 The Service is projecting break-even for the financial year 2022/23 of the Capital Programme. Capital budgets and expenditure are detailed in Appendix A of this report. 2.2 Management Actions The Service will continue to review phasing of associated programmes with updates being provided to the SCDG and Committee. 3. Measures of success 3.1 The Service aim is to operate within approved budget resources over the term of the capital programme. 4. Supporting documentation 4.1 Appendix A Summary Expenditure by Project/Theme Elaine Kemp Head of Financial Solutions Page 140 of 274
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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? The Service aims to operate within approved funding levels and utilise budget virements to support emerging issues and mitigate variances across budget heads. 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? 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 Page 141 of 274
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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 ☒ 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? 5.9.1 All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services managed these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. 5.9.2 To minimise risk this report was prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations. Page 142 of 274
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Appendix 1 Chief Executives Capital Programme 2022/23 Thematic Expenditure Summary 1st April 2022 - 22nd July 2022 (PERIOD 4) Theme Budget £ Actual £ Committed £ Uncommitted £ Projected Outturn £ Outturn variance £ Digitisation & Innovation 10,111,492 2,563,881 2,563,881 0 10,111,492 0 LAN Refresh 0 0 0 0 0 0 Communication & Digital 0 0 0 0 0 0 Line of Business (LOB) System Portfolio 3,096,606 17,901 17,901 0 3,096,606 0 End User Device (EUD) Refresh 1,685,246 26,740 26,740 0 1,685,246 0 TOTAL COMMUNITIES 14,893,344 2,608,522 2,608,522 0 14,893,344 0 COMMUNITIES Community Board Project Investment Fund 2,960,346 169,496 169,496 0 2,960,346 0 TOTAL COMMUNITIES 2,960,346 169,496 169,496 0 2,960,346 0 TOTAL CHIEF EXECUTIVES 17,853,690 2,778,018 2,778,018 0 17,853,690 0 YTD OUTTURN Page 143 of 274
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North Lanarkshire Council Report Finance & Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/KS/RM/GM Date 14/09/22 Treasury Management Monitoring Report for quarter ended 30 June 2022 From Elaine Kemp, Head of Financial Solutions E-mail mcnameer@northlan.gov.uk Telephone Ryan McNamee, Finance Manager 1. Background 1.1 The Council manages its treasury activities in line with the CIPFA Code ‘‘Treasury Management in the Public Services’. The Code requires the Council to produce reports on its Treasury Management policies, practices and activities on a regular and ongoing basis. The Council fulfils these obligations, in part, by the preparation of this Treasury Management Monitoring report produced on a quarterly basis, encompassing a review of performance. 1.2 The Treasury activity undertaken in the first quarter of 2022/23 reflects the key requirements of the Council’s 2022/23 Treasury Management Strategy, with the Public Works Loan Board (PWLB) and Long-term Money Market being the prime source of long- term funds. In terms of investment activity, this is conducted in accordance with the approved 2022/23 investment strategy. Executive Summary This report fulfils the key requirements of the Council’s reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. It informs on the quarterly Treasury Management activity for the period 1 April 2022 to 30 June 2022 and compliance with the mandatory treasury and prudential indicators. Recommendations It is recommended that Committee note the Treasury Management Activity for the quarter ended 30 June 2022 including the positive performance against the key treasury and prudential indicators. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 15 Page 145 of 274
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2. Report 2.1 Summary Position 2.1.1 The net overall borrowing position to 30 June 2022 is £766.1m, this is an increase of £16.5m from the position at the 31 March 2022 with a detailed breakdown of the net cash movement shown in column (6) within Appendix 1. 2.2 Borrowing 2.2.1 At the end of the quarter, total external debt amounted to £813.1m which represented a reduction of £44.5m. This was mainly due to a net reduction in temporary borrowing activity of £17.0m as the £40.0m falling due for repayment was offset by £23.0m of new temporary borrowing, and there was also a decrease of £9.9m in the municipal bank balances available to the Council as customers began to withdraw monies following public announcement of the impending closure of the bank on 30th September 2022. In addition, net long-term borrowing reduced by £15.8m due to a net reduction in PWLB borrowing of £0.7m and £15.0m reduction in market loans. Lease payments under existing finance lease and PPP obligations of £1.8m also fell due for repayment during the quarter. 2.2.2 The reduction in temporary borrowing has been due to a combination of grant income profiles returning to normal intervals and associated expenditure gradually recovering to pre-pandemic activity levels. This continues to be managed in line with the approved TM Investment Strategy. 2.2.3 The approach to borrowing is in line with the approved strategy, with the Council sourcing long-term borrowing, taking advantage of temporary (short-term) borrowing at attractive rates and use of internal cash balances to meet the principal repayments, daily revenue account requirements and the capital financing requirement in lieu of future borrowing for capital purposes. The strategy adopted reflects interest rate forecasts, the management of carrying costs and the retention of cash balances at appropriate levels whilst managing the associated investment, interest, and liquidity risk. 2.2.4 The Council made a successful application to the PWLB to access the certainty rate which allows a 20 basis point (bps) (0.20%) discount on loans from the PWLB under the prudential borrowing regime. This will continue to provide the Council with an opportunity to borrow from the PWLB at more beneficial rates until 31 March 2023 and beyond subject to a further successful application. 2.3 Debt Restructuring 2.3.1 During the quarter under review, in conjunction with our Treasury advisors, we monitored the economic climate in relation to our financial targets and Treasury Management strategy. The interest rates prevailing throughout the period resulted in no beneficial opportunities for debt restructuring /rescheduling of the existing PWLB debt portfolio arising. 2.3.2 The Council continued to hold £13.0m of LOBO (Lender’s Option Borrower’s Option) loans where the lender has the option to propose an increase in the interest rate at set dates, following which the Authority has the option to either accept the new rate or to repay the loan at no additional cost. No banks exercised their option during the quarter. However, on assessment of the LOBO portfolio by our treasury advisor, Arlingclose, loans from some banks presented restructuring opportunities. Therefore, a full options appraisal exercise was undertaken to assess the risks and benefits, including reducing the exposure to medium/long-term optionality and potential restructuring savings. As a result, a £10.0m LOBO loan has been repaid. Page 146 of 274
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2.3.3 Arlingclose, were instructed to act on the Councils behalf to arrange and negotiate terms for early redemption. The financial appraisal undertaken detailed the total redemption cost, replacement loan options and financial benefits. Successful discussions resulted in an agreed exit on 6th April 2022, with beneficial redemption terms offered by the lender. The agreement reached results in estimated net financial savings to the Council of £2.4m on a Net Present Value basis, when assessed over the remaining loan period of the original loan i.e. to 2060. Therefore, it was deemed prudent to redeem the loan and replace with new funding, which was secured from PWLB. 2.3.4 Further reports regarding future activity will be presented to Committee as appropriate. 2.4 Investments 2.4.1 At the end of the first quarter of 2022/23, there was a net decrease of £61.0m in cash and cash equivalents mainly due to a £60.2m decrease in short-term investments and an increase in the bank overdraft including cash in transit of £0.8m, as shown within column 6 of the attached Appendix 1. 2.4.2 The decrease in short term investments reflects repayment of maturing temporary borrowing of approximately £395.8m and undertaking new short-term investments of £335.6m. 2.4.3 At quarter end, the bank overdraft including cash in transit was £13.6m an increase of £0.8m on the net overdrawn position at the end of the previous quarter of £12.8m. The negative net cash movement reflects BACS payroll and creditor payment runs which fell due for clearance at the quarter end date. The balance at 30 June 2022 comprises of £13.6m net BACS payments outstanding due for clearance within 3 days of the quarter end date, cheques unpresented of £0.3m partially, offset by a balance of £0.4m of cash in transit. 2.4.4 In line with the approved strategy to manage liquidity, the Council maintained a minimum balance of £3.0m available on an overnight basis (instant access), ensuring a prudent level of funds is maintained to meet all service requirements. 2.4.5 On 4 May 2022, the Bank of England Base Rate was increased from 0.75% to 1.00% and then by a further 0.25% to 1.25% on 15 June 2022, to mitigate the economic impact of the pandemic recovery, Brexit and the war in Ukraine. Despite the increases, investments also continue to offer historically low returns. On 1 January 2022 SONIA (Sterling Overnight Index Average replaced LIBID (London Inter-bank Bid Rate)) as the new interest rate benchmark. There is no noticeable difference between the 7 day and 1-month SONIA bid rates and generally available investment rates offered by financial institutions and money market funds. Despite this, the Council will endeavour to achieve good performance levels in investment activity. 2.4.6 Overall the Treasury Management team continues to take a prudent approach to investing surplus funds in line with the approved 2022/23 Investment Strategy. Security of investment followed by ensuring sufficient liquidity are key investment criteria governing Council investment decisions. This approach is aligned to the prudent management of liquidity to meet current commitments and future cash demands based on the latest cashflow projections. Page 147 of 274
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Non Treasury Management Investments 2.4.7 During the quarter, there were no repayments made in respect of third-party advances in connection with the Cumbernauld Academy DBFM and Greenfaulds DBFM. 2.5 Interest Rate Movements 2.5.1 Having increased interest rates by 0.25% in May, the Bank of England’s Monetary Policy Committee on the 15th of June 2022 voted 6-3 to increase the official Bank Rate by a further 0.25% to 1.25%. Rises in the input and output producer price measures suggest further inflationary pressure is in the pipeline. The Bank of England is therefore unlikely to become complacent, so further rate rises look likely in the near term. Subsequently in August, the Bank of England announced a further increase of 0.5% increasing the base rate to 1.75%, with market forecasts of further increases later in the year. 2.5.2 Following Russia’s invasion of Ukraine in February, global inflationary pressures have intensified sharply, leading to a sizeable deterioration in the outlook for world and UK growth The economic backdrop in the April-June quarter was characterised by higher oil, gas and commodity prices, fears of rising and persistent inflation and its damaging impact on consumers’ cost of living, little indication of an imminent end to Russia-Ukraine hostilities and supply chain bottlenecks exacerbated by war in Ukraine and lockdowns in China. In the UK inflation remained elevated. Ofgem, the energy regulator, increased the energy price cap by 54% in April, equivalent to around £700 for a household with average energy consumption. May data showed CPI edging higher to 9.1% while the core CPI rate, which removes energy, fuel and food was 5.9%. RPI rose to 11.7% Unsurprisingly, with disposable income squeezed and another energy cap increase due in October, consumer confidence plummeted to the level last seen during the 2008/09 financial crisis. Quarterly GDP growth was 0.8% in the January- March quarter and the Bank of England now expects a decline of 0.3% in Q2 2022. 2.5.3 Following the increases in the base rate in April and June, short-term borrowing interest rates increased between 0.5% and 0.9%. These rates are still at historically relatively low levels, with the short term 7-day offer rate around the 1.33% level. Despite the increase in rates, during the quarter the Authority considered it to be more cost effective in the near term to either use internal resources or to borrow rolling temporary / short-term loans instead. This will manifest itself in increased temporary borrowing costs for the Council partially offset by increased investment income earned on surplus balances and within budgetary forecasts. 2.5.4 Heightened uncertainty characterised financial market sentiment, and bond yields were similarly volatile but with a general upward trend, as concern over higher inflation and higher interest rates dominated. Over the quarter the 5-year UK benchmark gilt yield rose from 1.41% to 1.89%, the 10-year gilt yield rose from 1.61% to 2.35% and the 20-year yield from 1.82% to 2.60%. This resulted in the PWLB 10 year borrowing rate increasing from 2.69% at the start of the quarter to 3.38% at the end of the quarter, showing a spread of 1.05% between the highest and lowest interest rate which were 3.61% and 2.56% respectively, averaging 3.04%. 2.5.5 The Treasury Management Section will continue to monitor financial and economic policy and their impact upon the Council’s investment and borrowing activity. Page 148 of 274
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2.6 The Prudential Code for Capital Finance in Local Authorities 2.6.1 The Local Government in Scotland Act 2003 requires the Council to undertake its Treasury activities in line with the Prudential Code for Capital Finance in Local Authorities. 2.6.2 Committee, at its meeting on 10 March 2022, approved a report titled, “Treasury Management Strategy 2022/2023 and Treasury and Prudential Indicators 2022/2023 to 2024/2025”. This report detailed a variety of mandatory and local indicators aimed at assisting members to determine that proposed capital investment levels and treasury management decisions satisfied the key requirements of affordability, prudence and sustainability. Performance against key prudential indicators for 2022/23 to date is detailed within Appendix 2. 2.6.3 Committee will wish to note the following salient points:- (i) Indicator 1(a) illustrates that investment on capital expenditure is higher than anticipated by £5.5m. In summary there has been a net increase of £32.7m in the General Fund capital investment and a decrease of £27.2m related to Brexit/Covid challenges for the HRA Mainstream and New Build programmes. For further information, this is monitored in detail as part of the Council's capital programme reporting mechanisms which will provide spend details including any revisions to the estimates approved in 2022/23. (ii) The changes to the mix of resources used to finance the capital expenditure in 2022/23 reflect the updates to the planned capital investment outlined in the previous paragraph. The level of in-year borrowing is anticipated to be lower by £22.4m due to a £24.2m reduction in HRA projects offset by a £1.8m increase for the General Fund programme. The forecast level of borrowing also reflects a net increase in capital grants and external contributions of £24.0m, with a £3.0m reduction for HRA projects offset by an additional £27.0m available for the General Fund programme. An additional £3.9m of CFCR is also available for the General Fund programme. (iii) As a result of accounting issues arising from the pandemic recovery, the implementation of IFRS 16 Lease Accounting has been delayed yet again. Therefore, a restatement of existing liabilities for operating leases to the credit arrangement category will not be applied in 2022/23, therefore the spend and associated financing under credit arrangements will be £3.5m lower than anticipated. (iv) The Prudential Code requires the Council’s capital investment to be affordable and prudent. To demonstrate this, a Prudential Margin (the need to borrow versus actual borrowing) is calculated. Indicator 1(b) demonstrates a healthy prudential margin at the 30 June 2022. The timing and profile of external borrowing to replenish cash reserves and balances are being managed, giving full consideration to liquidity, interest rate and refinancing risk whilst minimising the potential carrying costs. (v) Indicator 2 illustrates that both the overall authorised and operational borrowing limits for borrowing and long-term liabilities have not been exceeded, with the maximum borrowing undertaken within the period being well below the approved boundaries. (vi) Indicator 3(a) highlights the proportion of external interest payable by the Council which is fixed and external interest payable which may vary over the term of the Page 149 of 274
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borrowing and which exposes the Council to the effects of interest rate changes. At the 30 June 2022 the level of borrowing subject to variability is deemed to be within acceptable levels. (vii) Indicator 3(b) highlights a projected loan charge underspend of £1.2m compared to the prudential estimates for 2022/23. This projection takes into account the treasury management activity, the loans fund advances repayment policy adopted in 2021/22 and the decisions of the P&S Committee on 30 September 2021, to reprofile the capital programme in response to the significant Covid-19 and Brexit related challenges. This loan charge underspend is made up of: • A treasury management saving of £0.8m is projected, £0.1m for General Fund and £0.7m for HRA. This saving reflects the cashflow management techniques adopted, directing the timing of new borrowing, managing investment security, liquidity and interest rate risk. This resulted in reduced loans fund interest payments and expenses. During the quarter short-term borrowing and investment rates have risen as detailed above and incorporates prudent forecasts of further increases in borrowing rates for the remainder of the financial year. Depending on actual market rates as the financial year progresses which may accrue the Council further net treasury savings or costs and will be continually monitored throughout the year. • In 2022/23 it is anticipated there will be reduction in anticipated loans fund advance repayments of £0.1m and £0.3m for the General Fund and HRA respectively. This primarily due to the Council benefiting from the revised loans fund advance repayment policy approved at the Finance and Resources Committee on the 26 November 2020, whereby the Council continues to use the annuity model, apply a fixed average life to the loans fund advances, and apply a prudent annuity rate. (viii) Indicator 3(c) relates to the level of fixed debt due to mature within time periods. The level of debt maturing remains within the upper limits set for each category at the beginning of the financial year. 3.1 Overall the approach adopted by the Council’s Treasury Management team during the quarter under review met the key requirements of the 2022/23 Treasury Management Strategy. Prudential indicators have remained in accordance with those approved by Committee on 10 March 2022. The projected final outturn illustrates a healthy prudential margin and borrowing levels that are below sustainable limits, ensuring that the projected capital investment levels remain affordable and sustainable. 4. Supporting documents 4.1 Appendix 1: Loans, Long term Liabilities & Investments as at 30 June 2022 Appendix 2: Summary of Treasury and Prudential Indicators as at quarter ended 30 June 2022 Elaine Kemp Head of Financial Solutions Page 150 of 274
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5. Impacts 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? 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 ☒ Page 151 of 274
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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 ☐ Treasury Management activity by its very nature has a number of inherent risks including interest rate, liquidity and refinancing risks. To minimise risk for its treasury management activities the Council adopts and operates in accordance with the guidelines for best practice prescribed within the CIPFA “Treasury Management in the Public Services” Code of Practice and the CIPFA Prudential Code for Capital Finance in Local Authorities. Page 152 of 274
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LOANS , LONG TERM LIABILITIES & INVESTMENTS AS AT 30 JUNE 2022 Appendix 1 DEBT RESTRUCTURING BALANCE 1-April-22 EARLY REDEMPTION REFINANCING NEW BORROWING / LONG-TERM LIABILITIES PRINCIPAL REPAYMENTS NET CASH MOVEMENTS BALANCE 30-June-22 (1) (2) (3) (4) (5) (6) (7) LONG-TERM LOANS PWLB 407,349,082 0 17,375,141 0 (18,087,186) (712,045) 406,637,037 MONEY MARKET LOANS 82,000,000 (10,000,000) 0 0 (5,000,000) (15,000,000) 67,000,000 ENERGY EFFICIENCY LOAN 1,225,694 0 0 0 (98,006) (98,006) 1,127,687 490,574,775 (10,000,000) 17,375,141 0 (23,185,192) (15,810,051) 474,764,724 SHORT-TERM LOANS TEMPORARY 174,000,000 0 0 23,000,000 (40,000,000) (17,000,000) 157,000,000 MUNICIPAL BANK 19,021,861 0 0 0 (9,924,043) (9,924,043) 9,097,818 INTERNAL LOANS 6,280 0 0 0 0 0 6,280 193,028,141 0 0 23,000,000 (49,924,043) (26,924,043) 166,104,098 LONG -TERM LIABILITIES FINANCE LEASE OBLIGATIONS 1,764,119 0 0 0 (207,897) (207,897) 1,556,222 LONG TERM LIABILITY 172,194,200 0 0 0 (1,553,058) (1,553,058) 170,641,142 173,958,320 0 0 0 (1,760,955) (1,760,955) 172,197,365 TOTAL EXTERNAL DEBT 857,561,236 (10,000,000) 17,375,141 23,000,000 (74,870,191) (44,495,050) 813,066,187 INVESTMENTS THIRD PARTY ADVANCES 1,196,671 0 0 0 0 0 1,196,671 BANKS & OTHER FINANCIAL INSTITUTIONS 119,543,138.82 0 0 0 0 (60,236,963) 59,306,175.77 BANK OVERDRAFT INCL CASH IN TRANSIT (12,766,267) 0 0 0 0 (775,470) (13,541,737) CASH & CASH EQUIVALENTS 107,973,543 0 0 0 0 (61,012,433) 46,961,110 NET BORROWING 749,587,693 (10,000,000) 17,375,141 23,000,000 74,870,191 16,517,384 766,105,077 Page 153 of 274
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Summary of Treasury and Prudential Indicators as at quarter ended 30 June 2022 Appendix 2 1. Capital Expenditure, Capital Financing Requirement and Prudential Margin (a) Capital Expenditure Initial Estimate 2022/2023 (£m) Projected Outturn 2022/2023 (£m) Total spend : Capital Expenditure 296.5 302.0 Total Capital Investment 296.5 302.0 Financed By: Borrowing 207.2 184.8 Capital receipts 1.0 4.5 Capital receipts transfer to Capital Fund 0.0 -3.5 Capital Grants & Other External Contributions 61.2 85.2 Capital from Current Revenue 27.1 31.0 (b) Prudential Margin Calculation Initial Estimate 2022/2023 (£m) Projected Outturn 2022/2023 (£m) Capital Financing Requirement 1,321.8 1,264.9 Gross Borrowing 1,194.3 968.7 Prudential Margin 127.5 296.3 2. Authorised Limit and Operational Boundary Initial Authorised Limit 2022/2023 (£m) Initial Operational Boundary 2022/2023 (£m) Maximum Borrowing Level Q1 2022/2023 (£m) Borrowing 1,215.0 1,240.0 683.6 Other Long-term Liabilities 185.0 185.0 170.6 Totals 1,400.0 1,425.0 854.2 3. Treasury Management Indicators a) Interest Rate Exposures on External Interest Payments Position as at 30/06/2022 (£m) % External Interest Payable on Fixed Rate Loan Debt 25.95 93.0% External Interest Payable on Variable Rate Loan Debt 0.41 7.0% b) Loans Fund Revenue Account Initial Estimate 2022/2023 (£m) Projected Outturn 2022/2023 (£m) Variance £m) %age Loans Fund Interest Payments 30.0 29.6 0.4 1.3% Loans Fund Expenses 0.4 0.4 0.0 7.0% Total Loans Interest Payments & Expenses 30.4 30.0 0.4 1.4% Loans Funds Investment Income -0.2 -0.6 0.4 -200.0% Total Loans Fund Interest Payments Investment Income & Expenses 30.2 29.4 0.8 2.7% Allocated as follows : Loans Fund Interest Payments Investment Income & Expenses:General Fund 17.6 17.5 0.1 0.4% Loans Fund Interest Payments Investment Income & Expenses:HRA 12.6 11.9 0.7 5.2% Capital Advances Repayments - General Fund 8.8 8.7 0.1 1.1% Capital Advances Repayments - HRA 10.1 9.8 0.3 3.3% Total Capital Advances 18.9 18.5 0.4 2.2% Total Loan Charges 49.1 47.9 1.2 2.5% c) Maturity Structure of Borrowing <12months 12 months to 2 years 2 to 5 years 5 to 10 years 10 to 20 years 20 to 40 years >40 years Upper Limit maturing :Fixed & Variable Rate Debt 15.0% 15.0% 25.0% 30.0% 35.0% 45.0% 30.0% Lower Limit maturing :Fixed & Variable Rate Debt 0.0% 0.0% 5.0% 5.0% 5.0% 10.0% 5.0% Maturity structure at the start of Q1 8.1% 7.7% 11.5% 11.1% 21.7% 34.6% 5.3% Maturity structure at the end of Q1 6.8% 5.0% 12.0% 13.2% 21.1% 36.5% 5.4% Page 154 of 274
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref SL/GT/WO22 Date 31/08/22 General Debtors Write-Off 2022 From Stephen Llewellyn, Head of Housing Solutions E-mail telferg@northlan.gov.uk Telephone 07583 010692 1. Background 1.1 During 2021/22, the Council issued invoices with an approximate value of £115m. 1.2 Within Enterprise and Communities there are a number of chargeable services including: • Building cleaning • Fleet Executive Summary This report presents a summary of outstanding debtor accounts which are deemed uncollectable following all attempts at recovery or are considered uneconomically viable to continue pursuing. In accordance with financial guidelines a provision for expected credit losses has previously been established for the outstanding accounts. The total recommended for write-off for 2022/23 is £462,352.29. Recommendations It is recommended that Committee: (1) Acknowledges the decision of the Chief Executive and the Head of Financial Solutions to write-off debts under £500, totalling a new figure of £168,652.09 under delegated responsibility; (2) Approves the write-off of all items over £500 to the value of £293,699.20; and (3) Remits this report to the Finance and Resources Committee. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions AGENDA ITEM 16 Page 155 of 274
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• Waste collection and disposal • Burials • Land rental charges • Rechargeable property repairs, and • Owner/occupier recharges 1.3 The value of Enterprise and Communities invoices raised during 2021/22 financial year was approximately £34m. In conjunction with the corporate debt recovery team, every effort is made to recover any unpaid debt including reminder letters, the use of collection agents and legal action. 1.4 However, despite these steps there are a number of debts that are deemed uncollectible or are considered not economically viable to engage further collection activities and costs. This annual process of assessing the likelihood of debt non- recovery conforms to accepted best accounting practice and is a reasonable assessment of expected income. 1.5 The Council will continue to seek collection of the outstanding balance if the circumstances of the debtor alter and recovery is deemed practical. 2. Report 2.1 Analysis of the outstanding balances has been conducted and £462,352.29 has been identified as uncollectable. 2.2 There are a number of reasons why the outstanding balances are being written off and these are summarised below:- a) Deceased. The debtor is deceased and there have been insufficient funds within the estate to meet the sum due. b) Liquidation/Sequestration. The debtor/business has been liquidated/sequestrated etc, and there is no prospect of recovery of funds. c) No Trace/Gone Away. The debtor has been unable to be located and there is no prospect of recovery of funds. d) Small Balances/Uneconomic to Pursue. There are insufficient funds or no realisable assets that are available to meet the debt and it is uneconomic to continue to seek recovery of the sum due. 2.3 The following tables categorise the value of debt recommended for write off by cause and value: Page 156 of 274
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Cause Analysis Total Number of accounts £ Deceased 77,940.22 90 Liquidations/Sequestrations etc 10,514.75 12 Gone Away/No Trace 137,650.99 193 Small Balances/Uneconomic to Pursue 121,746.82 850 Recovery Exhausted 114,499.51 495 Total 462,352.29 1,640 Value Analysis £ < £500 168,653.09 1,404 > £500 293,699.20 236 Total 462,352.29 1,640 2.4 The value of accounts identified for write-off represents a small proportion of the accounts raised annually by Enterprise and Communities (around 1.36%). This is reflective of a number of strategies adopted by the service including payment in advance for services where possible, withdrawal of services for non-paying debtors, facilitating payment by direct debit and, where appropriate, payment arrangements. 2.5 For comparison purposes, the total write-offs approved for Enterprise and Communities over the last three years were £238,396.96 for 2019 and £173,976.02 for 2020 and £282,580.61 for 2021. The increase in the current write-off proposals can be largely attributable to an increased write-off for owner-occupier repairs that coincided with the Council’s increased capital investment programme for housing to improve the quality of housing for tenants. 3. Measures of success 3.1 The Service continues to engage in a number of activities aimed at improving collection rates, reducing debt arising and streamlining the recovery process. These include: • Application of the approved Debtors Policy and associated debt recovery procedures • Performance management reports • Payment arrangements • Payment by direct debit • Payment in advance • Cessation of service provision Page 157 of 274
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3.2 The Council will continue to seek collection of the outstanding balance if the circumstances of the debtor alter and recovery is deemed practical. 4. Supporting documentation 4.1 Not applicable Stephen Llewellyn Head of Housing Solutions Page 158 of 274
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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? There are no additional financial implications linked to this report for the current financial year because a corresponding provision for expected credit losses has been included in the previous year’s annual accounts. 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? 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 ☐ Page 159 of 274
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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 ☒ 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? Page 160 of 274
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North Lanarkshire Council Report Adult Social Work, Care and Wellbeing Committee Does this report require to be approved? ☒ Yes ☐ No Ref PMcA/AB/DF Date 06/09/22 Sundry Debt Write Off 2022 From Diane Fraser, Head of Adult Social Work, Health & Social Care E-mail fraserdi@northlan.gov.uk Telephone 01698 332001 Executive Summary The purpose of this report is to present to Committee a summary of outstanding debtor accounts which are deemed uncollectable following all attempts at recovery or are considered uneconomically viable to continue pursuing. In accordance with financial guidelines a bad debt provision has previously been established for the outstanding accounts highlighted below. Recommendations It is recommended that Committee: (1) Notes the decision of the Chief Accountable Officer and the Head of Financial Solutions under delegated responsibilities to write off £13,702.54 for debts under £500. (2) Approve the write off of £35,851.67 which includes debts greater than £500. (3) Remit this report to Finance & Resources Committee. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition Statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions AGENDA ITEM 17 Page 161 of 274
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1. Background 1.1 During 2021/22 the Council issued invoices with an approximate value of £114m. 1.2 Within Adult Health & Social Care there are a number of chargeable services mainly in the following areas: • Home Care Charges • Nursing Home and Residential Home Accommodation Charges • Community Alarms • As well as chargeable services, invoices are raised to other local authorities, health, and universities. 1.3 The value of Adult Health & Social Care invoices raised during 2021/22 was £72m. This figure includes invoices raised to other local authorities, health, and universities (£65m). 1.4 In conjunction with the corporate debt recovery team, every effort is made to recover any unpaid debt including reminder letters, the use of collection agents and legal action. However, despite these steps there are a number of debts that are deemed uncollectible or are considered not economically viable to engage further collection activities and costs. This annual process of assessing the likelihood of debt non- recovery conforms to accepted best accounting practice and is a realistic assessment of expected income. 1.5 The Council will continue to seek collection of the outstanding balance if the circumstances of the debtor alter, and recovery is deemed practical. 2. Report 2.1 Analysis of the outstanding balances has been conducted and £49,554.21 has been identified as uncollectable. 2.2 There are a number of reasons why the outstanding balances are being written off and these are summarised below: (a) Deceased. The debtor is deceased and there have been insufficient funds within the estate to meet the sum due. (b) Small Balances/Uneconomic to Pursue. There are insufficient funds or no realisable assets that are available to meet the debt and it is uneconomic to continue to seek recovery of the sum due. (c) Gone Away. The debtor has moved address and cannot be located. (d) Recovery exhausted. Despite all efforts the service has now been informed that these accounts will not be recovered. Page 162 of 274
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2.3 The following tables categorise the value of debt recommended for write off by cause and value: Cause Analysis No of accounts £ Deceased 28 11,817.95 Small Balances/Uneconomic to Pursue 3 7.5 Gone Away 0 0.0 Recovery Exhausted 153 37,728.76 Total 184 49,554.21 Value Analysis < £500 155 13,702.54 > £500 29 35,851.67 Total 184 49,554.21 The value of accounts identified for write off represents a very small proportion of the accounts raised annually by Adult Health & Social Care. This is reflective of a number of activities aimed at improving collection rates, reducing debt arising and streamlining the recovery process. 3. Measures of success 3.1 The Service continues to engage in a number of activities aimed at improving collection rates, reducing debt arising and streaming the recovery process. These include: • Implementation of Debt Recovery Procedures • Performance Management Reports • Payment Arrangements • Payment by Direct Debit The Council will continue to seek collection of the outstanding balance if the circumstances of the debtor alter, and recovery is deemed practical. 4. Supporting documentation 4.1 No appendices Diane Fraser Head of Adult Social Work Service Page 163 of 274
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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? 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 ☒ If Yes, please provide a brief summary of the impact? Page 164 of 274
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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? Page 165 of 274
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North Lanarkshire Council Report Education, Children and Families Committee Does this report require to be approved? ☐ Yes ☒ No Ref: DB Date 13/09/22 Annual Bad Debt Write Off Exercise From Derek Brown E-mail BrownD@northlan.gov.uk Telephone 01698302517 1. Background 1.1 The Education, Children and Families Service provide a range of chargeable activities predominantly in the following areas: • Additional nursery hours • Music tuition • Education Leadership Courses • Active and Creative Communities Facility Charges Executive Summary This report provides a summary of outstanding debtor accounts relating to previous financial years which are deemed uncollectible following all attempts at recovery or are not economically viable to continue pursuing. In accordance with financial guidelines a bad debt provision has previously been established for the outstanding accounts highlighted in this report. Recommendations It is recommended that the Education, Children and Families Committee:- (1) Review the decision of the Executive Director (Education, Children and Families) and the Head of Financial Solutions under delegated responsibilities to write off a total of £37,100.83 for debts under £500 and £12,614.07 for debts greater then £500. (2) Remit this report to Finance and Resources Committee. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (24) Review and design services around people, communities, and shared resources AGENDA ITEM 18 Page 167 of 274
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1.2 By way of context the Education, Children and Families Service raised 2,023 invoices during 2021/22 which had an aggregate total value of £4.408m. In conjunction with the Corporate Debt Recovery Team every effort is made by the Service to recover any unpaid debt including reminder letters, the use of collection agents and legal action. 1.3 Despite these steps there are a number of debts that are deemed uncollectible or are considered not economically viable to engage further collection activities and costs. This annual process of assessing the likelihood of debt non-recovery conforms to accepted best accounting practice and is a realistic assessment of expected income. 1.4 The value of accounts identified for write-off represents a small proportion (1.13%) of the accounts raised annually by the Education, Children and Families Service. 1.5 Following the approved in sourcing the 2022 Service write off request includes activity previously associated with Active and Creative Communities (CLNL). 2. Report 2.1 The tables below categorise the value of debt recommended for write off by cause and value. Cause Analysis £ Number of Accounts Recovery Exhausted 20,541.24 99 Uneconomical to Pursue 29,173.66 895 Total 49,714.90 994 Value Analysis £ Number of Accounts < £500 37,100.83 981 > £500 12,614.07 13 Total 49,714.90 994 2.2 The Education, Children and Families Service will continue to review the possibility of recovering these outstanding debts, for example, if staff are notified of a change in circumstances relating to a debtor. 3. Next Steps 3.1 There are no actions required per the Fairer Scotland duties included in this report. 3.2 There are no Equality Impact Assessments required per the content of this report. Page 168 of 274
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4. Measures of success 4.1 There are no additional financial implications linked to this report for the current financial year because a corresponding bad debt provision has been included in previous year’s annual accounts. 5. Supporting documents 5.1 Council Financial Regulations. Derek Brown Deputy Chief Executive Page 169 of 274
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6. Impacts ( http://connect/report-template-guidance ) 6.1 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 ☐ 6.2 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? There are no proposed changes to existing post grades. 6.3 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. 6.4 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? 6.5 Data protection impact Page 170 of 274
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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 ☐ 6.6 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 ☒ 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 ☐ 6.7 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? 6.8 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? 6.9 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? Page 171 of 274
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North Lanarkshire Council Report Finance & Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref: CG/JMcK Date: 14 September 2022 PO59: Procurement Strategy 2023 – 2024 From James McKinstry, Head of Asset & Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone James McKinstry 07939 281102 Executive Summary This document updates the Council’s current procurement strategy (the ‘Strategy’) which was first published in September 2017. The Council is required to review the Strategy annually and make changes to it where appropriate, this update is the outcome of the fifth review undertaken since the Strategy was first introduced in 2017. The latest Strategy sets out how the Council plans to carry out its procurements from 01 April 2023 until 31 March 2024. The broad principles and policies described in the September 2017 Strategy remain relevant and are expected to do so for the foreseeable future, and so, with some minor adjustments that provide additional focus on some of those policies that the Council aims to support through procurement, it is proposed to extend the period covered by the Strategy until at least March 2024. Continuing to review our Procurement Strategy on an annual basis is particularly important in light of current economic conditions. Recommendations It is recommended that the Finance & Resources Committee: - approve the Strategy for the period 01 April 2023 to 31 March 2024. The Plan for North Lanarkshire Priority All priorities Ambition Statement All ambition statements AGENDA ITEM 19 Page 173 of 274
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1. Background 1.1 The Council spends circa £520m externally each year on supplies, services and works, representing over 46% of the Council’s net expenditure. 1.2 The vast majority of the services that the Council provides to our communities is underpinned to a large extent by supplies, services and works facilitated by public procurement. Some of these procurements becoming increasingly more challenging as we explore new and innovative solutions for projects supporting delivery of the Plan for North Lanarkshire, such as the “Enterprise Project” contract, Digital NL, and the new build housing programme. 1.3 The Strategy reflects the Council’s priorities and incorporates the legislative requirements of the Procurement Reform (Scotland) Act 2014 and associated statutory guidance and best practice. 1.4 In accordance with the legislation, the Council published its first strategy in September 2017, this update is the outcome of the fifth annual review of the Strategy undertaken and sets out how the Council plans to undertake procurements from 01 April 2023 to 31 March 2024. 2. Report 2.1 Good procurement acts as a vehicle to deliver a wide range of benefits to support the local economy and to deliver improvements for the people and communities of North Lanarkshire. 2.2 These benefits range from helping the Council to deliver efficient and effective service targets to the less tangible but equally important non-financial benefits that can be delivered from Council contracts. These include benefits to the local economy through contracts with local businesses and the third sector, community benefits such as employment and training opportunities, environmental benefits and use of procurement to promote sustainability and fair work practices. 2.3 Legislation governs how Scottish public bodies buy their goods, services or works. The legislation requires the Council to publish a procurement strategy, or to review an existing one setting out how the Council plans to undertake regulated procurements for a set period. Regulated procurements are contracts of values of £50,000 and above for goods and services and of £2,000,000 and above for works. 2.4 The Strategy must include statements about how the Council’s procurements contribute to the following themes: • the delivery of value for money; and • how our procurements will be undertaken in accordance with our general duties which include the sustainable procurement duty. These statements are located within Part 7 of the Strategy. 2.5 The Strategy must also include statements about the Council’s general policy on: • community benefit requirements; • consulting and engaging with those affected by Council procurements; • the payment of the ‘real’ Living Wage to people involved in the delivery of Council contracts; Page 174 of 274
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• how the Council will promote compliance by contractors and subcontractors with the Health and Safety at Work etc. Act 1974; • the procurement of fairly and ethically traded goods and services; • how Council procurements, involving the provision of food, will improve the health, wellbeing and education of communities and promote the highest standards of animal welfare; and • paying valid invoices to contractors and subcontractors in 30 days or less. 2.6 The review of the Strategy confirmed that the broad principles and policies described in the September 2017 Strategy remain relevant. However, following the end of the Brexit transition period in December 2020, a number of amendments were made within the Strategy to remove references to the European Procurement Directives as these were superseded with appropriate UK and Scottish regulatory alternatives. 2.7 The general policy statements in Part 8 of the Strategy continue to reflect current and emerging procurement best practice for the Council to attain for. 2.8 Procurement performance will continue to be monitored against a suite of performance indicators; procurement performance will be reported in the annual procurement report. Additionally, the Council is obligated to participate in the national Procurement and Commercial Improvement Plan (PCIP) assessment. The PCIP is an assessment undertaken by all Scottish public sector bodies and assesses policies and procedures driving procurement performance and the results they deliver for their organisation. In the 2019 PCIP assessment, the Council achieved a score of 70% which was an increase of 14% from the score achieved in 2017 (56%). Due to the Covid-19 pandemic, the 2021 PCIP assessment was postponed, and it is anticipated that this will be undertaken during the period the latest Strategy covers. By continuing to follow the statements detailed within Parts 7 and 8 of the Strategy, it should provide the Council with a platform to further increase its PCIP score in the next assessment. 2.9 The Strategy is provided as an Appendix to this report. 3. Measures of success 3.1 Contracts support the delivery of Council priorities. 3.2 Contracts awarded by the Council are compliant with the Council’s internal procurement procedural rules and procurement legislation. 3.3 Efficient Procurement contributes to the Council achieving budgeted savings targets whilst delivering Best Value. 3.4 Procurement delivers a range of benefits, these include benefits to the local economy through contracts with local businesses and the third sector, community benefits such as employment and training opportunities, environmental benefits and use of procurement to promote sustainability and fair work practices. 3.5 Procurement performance is monitored and reported against a suite of performance indicators. 3.6 Maintaining or Improving the PCIP assessment score indicating improved procurement and commercial capabilities and standards 4. Supporting documents Page 175 of 274
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Appendix 1 Procurement Strategy 2023 – 2024 James McKinstry Head of Asset & Procurement Solutions Page 176 of 274
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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? Section 8.8 of the Strategy proposes methods for the Council’s supply chain to operate fair working practices within the organisation whilst also encouraging the supply chain to pay staff a minimum of the Scottish Living Wage. This is in line with the Scottish Government’s “Fair Work First” initiative. Fair Work First practices are considered in individual contract strategies and implemented into procurement procedures and contracts. 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? The Strategy proposes methods of maximising the delivery of procurement benefits that could bring improved financial return to the Council and the areas wider economy. These will be monitored on a project-by-project basis. 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? 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? Page 177 of 274
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Contracts awarded by the Council must be compliant with procurement legislation, statutory guidance and the Council’s internal procurement procedural rules (General Contract Standing Orders). The Strategy reflects how procurement legislation is now driving a number of benefits that can be realised through good procurement practice. These include legislative requirements in relation to; • procurement strategies and annual reports; • advertising contract opportunities; • a Sustainable Procurement Duty; • community benefits; • fair work first; • notification of the outcome of contract award procedures; and • consultation with those affected by Council procurements. 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 ☒ 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? Environmental / Carbon Impacts are considered in individual contract strategies and implemented into procurement procedures and contracts. This includes energy efficient and environmentally friendly specifications. 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? Page 178 of 274
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Legislation requires that the Strategy is published on the Internet. Publication of the Strategy also supports the Council’s commitment to transparency within its procurement activity. 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? Adopting the Strategy and continuing to develop and deliver a procurement improvement plan, will improve controls, increase compliance, improve governance, build capacity and capability, introduce a commercial focus and will deliver better outcomes from the Council’s procurement activity. Page 179 of 274
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Appendix 1 – Procurement Strategy 2023 – 2024 1. Introduction 1.1 This document updates the Council’s current procurement strategy which was first published in September 2017 and has been updated to cover the period April 2023 to March 2024. 1.2 The Council and its partners priorities are set out in the ‘’We aspire - A Shared Ambition for North Lanarkshire’’ programme, the Plan for North Lanarkshire and the supporting Programme of Work which collectively support and underpin the intentions of ‘’We aspire’’, the shared ambition for inclusive growth and prosperity for the people and communities of North Lanarkshire. 1.3 We will design our Commissioning and Procurement approach to contribute to these priorities as far as is practical, in a way that achieves value for money, secures economic, social and environmental benefits and makes contracts accessible to businesses (especially SMEs), the Third Sector and Supported Businesses. 1.4 We are seeking to maximise outcomes and Best Value from the Supplies, Works and Services that we buy. We will focus our resources on areas which are most likely to lead to benefits such as financial savings, jobs, training and reduced carbon emission and waste, while encouraging innovation. 1.5 Our strategy is centred on a Category Management and a more commercially focused approach, with clear accountabilities, openness and transparency. 1.6 The strategy seeks to build on progress to date, capture and build upon expertise and examples of best practice which are available within the Council, locally and nationally; from the public, private and third sectors. 1.7 Brexit, the COVID-19 pandemic and the conflict in Ukraine has, of course, had a huge impact on our procurement activity, and has presented a number of new and unexpected challenges to the Council and its supply chain. The three points detailed above are likely to affect the global economy and financial markets for many years to come. We will continue to work closely with our supply chains to ensure vital front-line services are continued to be delivered. 1.8 We will continue to review this strategy at least once every year, make changes to it if these are needed, and publish any new versions online, and we will publish in an annual report our performance in delivering against our strategy. 2. Background 2.1 The Council is a Unitary Authority, the fourth largest in Scotland, and is responsible for the delivery of a wide and diverse range of statutory and discretionary public services. 2.2 We deliver our services through a mixed economy acting as both a provider, through direct provision of services using our own workforce and assets, and an enabler with services delivered through private Providers, the Third Sector and Supported Businesses. 2.3 We spend around £520 million externally each year, across both revenue and capital investment projects. 2.4 The Council procures a wide and diverse range of Supplies, Works and Services using a variety of contracts, from simple purchase orders to long-term complex partnership Page 180 of 274
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agreements. Some contracts are with a single Provider, others are frameworks with multiple Providers. 2.5 In local government, Procurement is currently governed by a legislative framework which includes; • Regulations; and • Case law The legislation is encapsulated in our internal rules for Procurement and supporting documents and toolkits. 2.6 Because we have a significant level of external spend, national legislation requires us to prepare and publish a procurement strategy, regularly review the strategy and prepare and publish an annual procurement report. 3. Strategic Aims and Objectives The overarching purpose of this strategy is: 3.1 to provide an efficient and effective procurement service that delivers Best Value from Procurement activity and where possible cashable financial savings; 3.2 to provide quality advice and contracts which deliver quality products and services that help us provide excellent public services; and 3.3 to procure the Supplies, Works and Services that we need in a lawful and ethical manner which encourages participation and supports sustainable economic growth for our communities and Scotland as a nation. 4. Our Ambition 4.1 At the heart of the strategy sits our ambition to deliver the best Commissioning and Procurement in the country, where: • we achieve Best Value for the communities and people we serve; • we support the wider ambitions of the Council and its partners; • we keep to our general and sustainable procurement duties; • we support the delivery of quality outcomes for service users; • we have sufficient procurement capacity and capability to support the successful delivery of this strategy, and • we are recognised nationally as a centre of procurement excellence 5. Our Strategy 5.1 Our Procurement activity will be discharged in accordance with the applicable procurement legislation, the Councils internal rules on procurement and where appropriate following any best practice guidance issued by the Scottish Government. 5.2 We will take advantage of aspects of the Procurement legislation that provide procurement with greater flexibility and scope to deliver Best Value from Procurement activity. 5.3 Our approach to how we buy Supplies, Services and Works incorporates our priorities and the Scottish Model of Procurement. This ‘risk and opportunity’ based approach allows us to focus our resources on areas which are most likely to lead to benefits such as financial savings, job creation, training and reduced carbon emissions and waste, while encouraging innovation. Page 181 of 274
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5.4 We will adopt a Category Management approach, where related Purchasing is grouped together to take advantage of better intelligence of our Buying needs and of what Providers have to offer, and to support Bulk Buying where appropriate, in order to improve quality, savings and efficiency. 5.5 All categories will work to common principles and rules, but outputs will be tailored to meet the needs of the specific category, reflecting the service area, stakeholder needs and the marketplace, to ensure quality outcomes and Best Value are achieved. 5.6 We will investigate a Whole Lifecycle approach, which starts from assessing needs and analysing options, through preparation and Procurement, to mobilisation, Contract Management and contract exit, to ensure quality outcomes and Best Value are achieved. 5.7 We will demonstrate clear ownership and accountability within our Procurement activities, with structured governance and assurance, to ensure clear, timely and auditable decision making. 5.8 We will build on expertise within service areas and provide appropriate central support and challenge, ensuring lessons are learned and shared, in order to ensure continuous improvement in our Procurement activities. 5.9 We will be open and transparent, with a visible and accessible contracts register and forward Procurement Plans, robust management information and clear tender processes and documentation, to ensure a positive and professional relationship between us and our procurement partners and confidence in our approach from the people we serve. 5.10 Where appropriate we will consult and engage with stakeholders throughout the Procurement lifecycle, to ensure our procurements properly reflect need and opportunity and take account of the wider context, including the Council’s plans and strategies, locality working and collaboration with others. 5.11 We will invest in our Procurement organisational structure and develop the Procurement skills and capacity of our people, to ensure we deliver an efficient and effective service. 5.12 We will maximise the use of technology to underpin and simplify our core processes for both staff and providers. 5.13 We will create and share information to allow effective performance management and decision making. 6. Who We Will Work With 6.1 Our refreshed approach to Procurement highlights the importance of engagement with elected members, staff, service users and providers throughout the Procurement lifecycle. 6.2 Categories will be managed, and Procurements delivered through a team approach, combining the skills and capacities of directorate commissioners and service managers, with appropriate inputs from the corporate procurement team, legal, commercial, business and project management staff, alongside other specialists as appropriate. 6.3 The balance of inputs will be flexible to reflect different service areas needs at different times and will be proportionate to the value, risk and complexity of the specific category or Procurement. 6.4 We will maintain and continue to develop relationships with Commissioning and Procurement colleagues from other public bodies at a local, regional and national level, Page 182 of 274
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particularly to identify opportunities for collaborative procurement and lessons learned from elsewhere. This will include elements of joint Commissioning and shared approaches where this improves outcomes and offers Best Value. 6.5 We will continue to develop relationships with organisations representing the private sector and the Third Sector, particularly to identify and resolve any continuing barriers to effective partnership working. 6.6 We will continue to support and proactively participate in the Supplier Development Programme which provides free expert advice, training and support to local businesses interested in working with the public sector to help win work and grow their business. 7. What We Will Achieve, the Actions We Need to Take and How We Will Measure Success 7.1.1 In delivering our ambition we will seek to realise a wide range of benefits and will undertake a range of activities to deliver these. We will seek improved outcomes, improved value for money and savings, improved governance and assurance, improved engagement and transparency and improved support for the Council’s wider ambitions. 7.1.2 In order to allow us to have a clear understanding of the Council’s Procurement activity and performance, we will develop and maintain a suite of performance measures and management reports. This will help us to measure and evaluate if the actions set out in this strategy have made a difference and to benchmark our performance against others. Our performance against the suite of performance measures will be included in our annual procurement report which will be publicly available from our website. 7.2 How Our Procurement Activity Contributes to Value for Money 7.2.1 We will secure Best Value by planning ahead and understanding the required outcomes, the risks and benefits and the budget, ‘market place’ and cost drivers of our categories and Procurements. 7.2.2 We will consider value for money throughout the Procurement lifecycle and will support resource allocation which is proportionate to the value, risk and complexity of the relevant issue or task. 7.2.3 We recognise that Best Value is rarely achieved by simply accepting the lowest priced bid, which is why we will award the vast majority of contracts on the basis of the tender representing the best price quality ratio taking into account sustainability and quality criteria. Contracts will only be awarded on the basis of price only where the contract is low value and / or in exceptional circumstances. 7.2.4 Through our budget processes we will set targets for cashable savings. 7.2.5 We will put robust Contract Management arrangements in place and work with our Providers to keep existing contracts under review, identifying opportunities for cashable savings and other efficiencies and to ensure appropriate performance management of our contracts. 7.2.6 We will also seek non-cashable savings, or opportunities for cost avoidance, where we avoid or minimise a price increase, or where we receive more from a contract without an increase in cost. These savings are not usually ‘cashable’ from a budget perspective, nevertheless they do improve value for money and are important in supporting the Council’s overall budget strategy and priority plans. Page 183 of 274
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7.2.7 We will ensure that ‘off-contract spend’, where due to a variety of factors we place orders outside agreed contracts, is kept within an acceptable level. Similarly, we will also ensure that our ‘non-contract spend’, where due to a variety of factors we place orders where there is no formally tendered contract in place is also kept within an acceptable level. 7.3 Fulfilling Our General and Sustainable Procurement Duties 7.3.1 We aim to fully keep our legal obligations and to treat all Providers fairly, equally and without discrimination. To help achieve this only staff with appropriate training and experience will oversee Procurements. 7.3.2 We are committed to making our Procurements open and accessible to businesses of all sizes and from all sectors, especially SMEs, the Third Sector and Supported Businesses. We currently advertise our contract opportunities on Public Contracts Scotland portal. All contract opportunities above the relevant thresholds will automatically be forwarded to the Find a Tender portal when registered on the Public Contract Scotland website. We also publish our contract register on the Public Contracts Scotland portal. 7.3.3 We will design, whenever we can, each Procurement in a way that encourages participation from SMEs, the Third Sector and Supported Businesses and encourages innovation adopting this approach will help develop our local communities social, environmental and economic wellbeing. 7.3.4 For each Significant Procurement we will develop an individual sourcing strategy. Where appropriate, consideration is given in the sourcing strategy to early market engagement, dividing procurements in to lots, reserving contracts for Supported Businesses, securing savings, Community Benefits, Fair Work practices, include energy efficient and environmentally friendly specifications. 7.3.5 We will continue to work with representatives from the Third Sector and private sector, including SMEs to identify further options for improvement and will work with regional and national colleagues to streamline pre-qualification and procurement processes and documentation. 7.4 Delivering Quality Outcomes 7.4.1 We will secure positive outcomes from the Supplies, Works and Services that we procure by clearly identifying those outcomes and including appropriate provisions in improved procurement, contract and Contract Management documents and processes. 7.4.2 We will undertake appropriate contract and procurement risk management and assurance throughout the procurement lifecycle, to ensure that desired outcomes are achieved, to reduce the probability and impact of challenge and to ensure that we are not exposed to unexpected costs or other unintended consequences from Procurement. 7.4.3 We will communicate, consult and engage as appropriate throughout the Procurement lifecycle with all key stakeholders relevant to the category or Procurement, including end users, Providers and our staff. 7.4.4 We will consider equality and diversity as an integral element of each of our categories and Procurements, in line with our general policy on equality and diversity. 7.5 Wider Ambitions 7.5.1 Our Procurement activities will support the Council’s priorities and values, ensure that public money is spent wisely but also working as a team for North Lanarkshire, being open, honest and trusted, working with communities and treating people fairly. Page 184 of 274
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7.5.2 We will improve the consistency and transparency of our requirements for ‘added value’ from our procurement activity, by supporting clear consideration of the Council’s wider ambitions when undertaking Procurements and including appropriate provisions in improved tender, contract and Contract Management documents. Supporting economic, social and environmental wellbeing includes, for example, requirements on employment and skills opportunities and other aspects of Social Value. 7.5.3 This procurement strategy is aligned with and supports other Council policies and procedures particularly with respect to governance, risk management, community engagement, financial procedures and our approach to project management. 7.6 Procurement Capacity and Capability 7.6.1 To deliver this strategy and an effective procurement service, requires an appropriately resourced procurement structure and skilled and experienced staff. 7.6.2 Each internal service area is accountable for the procurements that they need to deliver the Services and secure the outcomes that they are responsible for, including in some cases joint procurement with partners such as the Health Service and increasingly for areas of common interest, procurement on behalf of other service areas. The service area owns the preparation of the specification and the evaluation criteria and takes all decisions in relation to the Procurement including the proportion of the budget to be allocated to the contract, the decision to commence a Procurement and the recommendation as to which organisation to award the contract to. The service area is then accountable for mobilising, Contract Management and exiting the contract. 7.6.3 The Corporate Procurement Team will continue to develop as a centre of excellence and is accountable for providing a central source of expertise, advice and support, providing checks and challenge as appropriate. At a more detailed level, the Corporate Procurement Team will work with colleagues in service areas through the use of category teams, to ensure consistency of approach and advice and to ensure that procurement staff have appropriate knowledge and experience in respect of the relevant category of spend. Each category team will include specialist staff with high levels of expertise who can provide support to service areas in developing strategic approaches and in delivering the more complex or sensitive procurements, in addition to staff who can support a few of the more straightforward procurements. The category teams will have access to specialist in-house commercial expertise (legal, financial and technical). 7.6.4 The Corporate Procurement Team will act as a central source of management information for the Council with respect to the Council’s procurement activity and for reporting performance. It will be responsible for maintaining the Council’s electronic tender system, electronic ordering system and for publishing a register of contracts awarded and forward Procurement Plans. 7.6.5 The Corporate Procurement Team will continue to develop and maintain the Council’s internal rules on procurement together with best practice documents and toolkits. It will facilitate cross-Council discussions relating to Procurement, particularly lessons learned, best practice and innovations and will facilitate access to appropriate training 7.6.6 We will support the training and development of our staff to maintain and raise standards across the profession. This will include informal coaching and training and where appropriate more formal training and professional qualification through the Chartered Institute of Purchasing and Supply (the professional body for procurement). 7.6.7 We will participate in the national Procurement People of Today and Leaders of Tomorrow programme which aims to improve procurement and commercial skills by working across Page 185 of 274
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the Scottish public sector to support a joined-up approach to developing procurement professionals and existing and future talent through identified career paths. 7.6.8 We will make use of the national procurement competency framework which will help key members of staff to identify opportunities for continuous professional development. 7.6.9 Our Procurement and Commissioning staff will also continue to share issues, lessons, best practice and innovations. 7.6.10 We will proactively take part in the national Procurement and Commercial Improvement Programme (PCIP). This will help us to measure and report on our level of procurement performance. We will use the outcome from the PCIP assessment to help develop an action plan to drive continuous improvement in our procurement capacity and capability. 7.7 Recognised Nationally 7.7.1 A strong national reputation can help the Council and its partners to build confidence amongst potential Providers, Providers and the communities that we serve. This strategy and supporting documents, procedures and toolkits seeks to capture best practice and should see the Council at the forefront in public procurement in Scotland. 7.7.2 In light of continued constraints in public funding a range of commercial responses are emerging to look at where contractual risks and the cost of those risks, is best held, this includes alternative models of delivery and new forms of contracts and funding based on payment by results. Our procurement strategy will continue to keep these areas under review and will provide advice and guidance on these matters. 7.7.3 The strategy is outward looking and uses information and intelligence to shape the approach to each category and to individual procurements. 8. General Principles 8.1 The circa £520 million that we spend Buying Supplies, Services and Works each year is a significant sum. It is right that people expect this money to be spent in a way which delivers the maximum possible benefit for our communities and Scottish society as a whole. 8.2 Our aim is to make sure that this happens, while also carrying out procurement that is legal, transparent and fair and that we design our procurement policies with that aim in mind. 8.3 In this section, we set out our general policies on a number of key areas, together with a statement on how we will monitor these over the life of this strategy. 8.4 Our Policy on Ensuring Our Regulated Procurements are Carried Out in a Transparent and Proportionate Manner 8.4.1 We are committed to acting and undertaking our procurements in a transparent and proportionate manner, accordingly we; • where appropriate, engage in early market engagement prior to the publication of a contract notice on PCS portal; • carry out our procurements transparently in compliance with legislation and statutory guidance, for example; • publishing contract notices and contract award notices on PCS, providing clear documentation and specifications, setting out minimum requirements, evaluation criteria and methodologies; and • provide tenderers with a written debrief on their tender submissions. • use electronic communication for the majority of our procurement activity; and Page 186 of 274
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• place the minimum possible qualification requirements on potential Providers to be able to bid for our contracts. 8.4.2 Our annual report on this strategy will include a statement about the effectiveness of our approach. 8.5 Our Policy on How We Intend To Ensure Our Regulated Procurements Ensuring Our Procurements Are Carried Out In Compliance With The Sustainable Procurement Duty 8.5.1 In line with the legislative framework for sustainable public procurement in Scotland; • we have incorporated sustainable procurement objectives within this strategy (section 7.3); • we have updated our internal procurement rules, documents and toolkits to reflect the new legislation; and • we will embed the use of sustainability tools within our procurement processes (e.g. the sustainability test, the prioritisation tool and the flexible framework). 8.5.2 Our annual report on this strategy will include a statement about the effectiveness of our approach. 8.6 Our Policy on Applying Community Benefit Requirements in Our Contracts 8.6.1 We believe that our contracts can help realise a wide range of social, economic and environmental benefits, including better employment opportunities. Community benefits delivered by our contracts have been shown to contribute to local and national outcomes relating to employability, skills development and local regeneration. 8.6.2 If there is an opportunity to benefit the community, we will include appropriate requirements in our contracts in accordance with relevant legislation, statutory guidance and best practice. 8.6.3 If a contract includes a commitment relating to community benefits, the terms of the contract will record what the Provider has to deliver. Overseeing delivery will be made part of our Contract Management arrangements and we will keep a record of the benefits delivered. 8.6.4 We will collect information about delivered benefits and we will report on this in our annual report. 8.7 Our Policy on Consulting and Involving Those Affected by Our Procurements 8.7.1 We recognise that it is important to consult and engage with those affected by our procurements and where relevant and proportionate allow the views of those affected to be taken into account. 8.7.2 We continue to engage with our stakeholders in a number of ways, including our Comments, Compliments and Complaints procedure, surveys and public consultations. 8.7.3 Where appropriate, we work with users, potential Providers and others to help us design procurements and determine the route each procurement will take. This may vary from ‘light touch’ market research to ‘engagement days’ for Providers, or the design and piloting of services. 8.7.4 We will record any complaints about failure to consult, and our report on our performance will look at these. The report will include information about any conclusions we reach, and any measures taken in response to complaints. Page 187 of 274
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8.8 Our Policy on Paying The Living Wage To People Involved In Delivering Our Contracts 8.8.1 The Council has adopted the Scottish Government’s “Fair Work First” initiative and strongly believes that the payment of the Living Wage can have a positive effect on people’s lives and can help to create a fairer and more equal society. 8.8.2 Our policy on paying the Living Wage to those who deliver our public contracts is influenced by our belief that those organisations which adopt fair work practices, including the Living Wage (for example those which have a diverse workforce and whose staff are well rewarded, well-motivated, well led and who have appropriate opportunities for training and skills development), are likely to deliver a higher quality of service. A positive approach to fair work practices can have a positive effect on the quality of the services, supplies and work delivered on our contracts. We also believe that if an employer pays the Living Wage, they are more likely to be committed to fair work practices. 8.8.3 As a result, the default position in our procurements is to assess and score (where appropriate) the extent to which potential Providers commit to engaging in fair work practices in delivering contracts and seeking information on the potential Providers commitment to paying the Living Wage. 8.8.4 We are an accredited Living Wage employer; this is a clear commitment to pay at least the Living Wage for all staff we directly employ and for those who work on our contracts by actively encouraging employers to pay the Living Wage as part of a package of fair work practice in all relevant contracts. 8.8.5 If a commitment has been made in a tender to pay the Living Wage this will form part of the contract, and we will monitor it through our Contract Management arrangements. 8.8.6 Our annual report on this strategy will include a statement about the effectiveness of our approach. 8.9 Our Policy on Making Sure Our Providers and Sub Providers Keep To The Health and Safety At Work Act 1974 8.9.1 We are committed to ensuring that nothing purchased by us is at the expense of the health and safety of those who are involved in delivering our contracts whether directly or as part of the supply chain. 8.9.2 It is important that those bidding for our contracts are able to demonstrate that they are responsible Providers who keep to their legal duties, including duties relating to health and safety. 8.9.3 It is a standard condition of our contracts that the Provider must keep to all laws that apply, the requirements of regulatory organisations, and good industry practice. This includes any relevant health and safety law. Health and safety criterion forms part of the evaluation for all relevant contracts. 8.9.4 Whenever Providers’ staff are on our premises, under the terms of our standard contracts they must keep to our own health and safety requirements. 8.9.5 We will revise our standard Contract Management arrangements to make sure that we include information about health and safety incidents relating to delivering our contracts and any measures we take to put things right. 8.10 Our Policy on Procuring Fairly and Ethically Traded Supplies and Services Page 188 of 274
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8.10.1 We will take a robust approach in our procurement processes and work with our partners to tackle criminal activity, including human trafficking and exploitation, modern slavery, corruption and fraud and to promote positive employment practices. 8.10.2 Our standard procurement procedures for contracts involve assessing a potential Providers suitability to be awarded the contract. This process includes considering whether the potential Provider has been convicted of certain offences or committed any acts of professional misconduct while running their business. 8.10.3 Our standard terms and conditions of contract allow us to end a contract if the Provider or sub-provider fails to keep to their legal duties in the areas of environmental, social or employment law when carrying out that contract. 8.10.4 We have been awarded “Fairtrade Zone Status” in recognition of the support and awareness the local schools, churches, businesses and communities have given to Fairtrade products. This a clear commitment to consider the relevant and proportionate application of fair and ethical principles in our procurement activities. 8.10.5 If fairly traded supplies and services are available to meet our requirements, we will consider how best to promote them. 8.10.6 We will keep a central record of the value of fairly traded products bought from contracts under our direct control. Our annual report on this strategy will include a statement about the effectiveness of our selection procedures. 8.11 Our Policy on Using Contracts Involving Food to Improve the Health, Wellbeing and Education of Communities in Scotland and Promote the Highest Standards of Animal Welfare 8.11.1 We recognise food and drink as a key industry sector where major sustainability wins can be achieved. The procurement of food and catering services is a high-ranking area because there are major social, economic and environmental impacts. It can have benefits on community health, wellbeing and social justice through access to good nutrition including fresh and seasonal produce. 8.11.2 Our approach to our contracts involving food, which are under our direct control, is to make sure that it keeps to all relevant Government policies on healthy eating and nutrition, promoting fresh and seasonal and local produce, and on fairly traded produce. These standards take account of a range of factors, including production, traceability, authenticity, origin, ethical trading, animal welfare, environmental standards, and health and waste. 8.11.3 We are working to increase the range and volume of Scottish products that we source through initiatives such as the Red Tractor assurance scheme and through engagement with the Food for Life programme we aim to increase the amount of locally sourced and produced food for our schools. 8.11.4 Keeping to our policy commitment is part of our Contract Management arrangements for all food contracts. 8.12 Our Policy on Paying Invoices in 30 Days or Less to Our Providers and Sub-Providers. 8.12.1 We are committed to ensuring that our Providers and sub-providers are paid on time and in accordance with late payment legislation. 8.12.2 It is a standard term of our contracts that we will pay valid invoices within 30 days and, any subcontract must contain a clause which says that sub-providers are also paid within 30 Page 189 of 274
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days, and that this clause should apply through the supply chain. Our annual report on this strategy will include a statement about the effectiveness of our policy. 8.12.3 In addition, SPPN 2/2022 - Prompt Payment in the Supply Chain provides details of how public bodies are to embed prompt payment performance in the supply chain through procurement processes. Key Points: • suppliers are asked to adopt the elements of Fair Work First as detailed in SPPN 6/2021 when bidding for public contracts. It is important for suppliers to be paid on time to deliver against these elements. • we will ensure contracts are awarded to bidders who have good payment performance history and have systems in place so that their full supply chain is paid on time and in accordance with the terms of the contract. Mechanisms should be put in place to assess and monitor payment performance of the supply chain throughout the lifetime of the contract. • we will encourage the supply chain to share this SPPN with relevant members of their supply chains including trade bodies and procurement forums. 8.12.4 Through our Contract Management arrangements we will monitor the extent to which invoices are paid within 30 days and act if appropriate. 9. Procedures and Tools 9.1 Our internal procurement rules apply to all contracts made by or on behalf of the Council for the execution of Works, the supply of Supplies and the provision of Services. 9.2 Our internal procurement rules are currently subject to the overriding provisions of the United Kingdom (UK) and Scottish legislation. They are also subject to any UK Government and Scottish Government guidance on public procurement that may be issued from time to time. 9.3 We have embedded various tools within our procurement process, the key tools are; • our internal procurement rules; • procurement toolkit (the Council’s version of the Scottish Government procurement journey); • procurement journey; • Scottish Government sustainable tools; • contract management tools; • e-Procurement tools; and • electronic survey tools. 10. Implementation 10.1 Adherence to the practices set out in this strategy are under constant review. This ensures that the anticipated improvements in planning and delivery are embedded in day-to-day working practices and ensure that we have the capacity and capability to deliver excellent Procurement. 10.2 There will be continued engagement with key stakeholders and access to appropriate accredited training for relevant staff. 10.3 Independent audit and assurance will be sought to challenge and test on a sample basis both the system as a whole and compliance with it, in order to identify (and correct) any identified weaknesses. Page 190 of 274
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10.4 Legislation requires us to prepare a procurement report each year. We will prepare our annual report as soon as reasonably practicable after 31 March of each year and aim to publish the report online no later than September of each year. 11. Strategy Ownership 11.1 The owner of this strategy on behalf of North Lanarkshire Council is Mr James McKinstry our Head of Asset and Procurement Solutions. 11.2 The strategy covers the period 01 April 2023 to 31 March 2024. We will publish any new versions on our website. 12. How to do Business with North Lanarkshire 12.1 We are pleased to hear from new and existing providers who are interested in tendering for our business. Any company interested in conducting business with the Council must be registered with PCS and be in a position to submit their tender responses by electronic means via PCS. 12.2 If you would like to read more about our procurement activity, please visit our website http://www. northlanarkshire.gov.uk 13. Glossary Best Value – overall value, including price and quality considerations and including economic, environmental and social value; the Council’s duty to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. Buying – placing orders under relevant contracts, use of purchasing cards and purchase-to-pay systems, receipting, making payments and associated transactions. This is also sometimes called Purchasing. Category Plan – strategic planning of the category, at a category or sub-category level, including review of the current position, constraints and opportunities, desired outcomes, options and actions. Category Management – best practice approach to managing and organising procurement spend and resources; a structured framework of activities designed to deliver better procurement outcomes through a holistic approach which focuses on the interrelated needs of buyers and providers; managing buying activity by grouping together related supplies, works and services across the Council and mapping them onto the provider market, to improve quality, savings and efficiency across the Council as a whole. Commissioning – the entire cycle of assessing the needs of people in a local area, designing and putting into place supplies, works and services to meet those needs, and monitoring and evaluating the outcomes. In a commissioning approach, the Council seeks to secure the best outcomes for local communities by making use of all available resources, whether the resources are provided in- house, externally or through various forms of partnership. This activity continues throughout the whole lifecycle. Contract Management – the tasks and activities which seek to ensure we receive what we have contracted to receive, at the price we contracted to receive it, taking account of agreed change and continuous improvement. Activity is focused from prior to the contract starting though to contract expiry and de-commissioning. It includes provider relationship management and also ensures that we meet our obligations under the contract. Page 191 of 274
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Find a Tender – means the UK e-notification Service. PCS – means the national public procurement portal, Public Contract Scotland portal, on which contract opportunities with the Scottish public sector are advertised. Procurement – the tasks and decisions which secure an external provider to provide what we want, at a price that we can afford. Activity is focused on the period from prior to advertising a tender to signing the contract. It includes both competitive tenders and circumstances where we negotiate with a single provider. Procurement Plan – practical planning of the procurement, or group of similar procurements, including approach, resourcing and timetable. Provider – any organisation that provides supplies, works or services to the Council or on behalf of the Council. Purchasing – placing orders under relevant contracts, use of purchase-to-pay cards and systems, receipting, making payment, and associated transactions. Services – services that we buy include specialist support for vulnerable children and adults, and also repairs and maintenance services, financial advice, designs and surveys for new building works. Significant Procurement – a Procurement over a certain financial value (£50,000 for Supplies and Services, (£500,000 for Works contracts), SME or Small and Medium Enterprises – firms that employ 9 or fewer staff (micro), and firms that employ 50 or fewer staff (small), and firms that employ 250 or fewer staff (medium). Social Value – the additional economic, social and environmental benefits that a contract achieves. Supplies – things that we buy, such as pens and paper, or plants and seeds, or fruit and vegetables. Supported Business – an establishment where more than 50% of the workers are disabled persons who by reason of the nature or severity of their disability are unable to take up work in the open labour market. Third Sector – the group name for a range of organisations including community groups, charities, voluntary organisations, faith groups, social enterprises, community interest companies. Third sector organisations may be registered charities and may be registered companies. They include small, local groups and large multinational operations, and everything in between. Whole Lifecycle – the whole cycle of assessing needs, analysing options, preparation, procurement, mobilisation, Contract Management and exit. Works – construction works that we buy, including construction of new buildings, or extensions, and also creation and improvements to roads and bridges and open spaces. Page 192 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref JMcK/CG Date 14/09/22 PO59: Annual Procurement Report 2021-22 From James McKinstry, Head of Asset and Procurement Solutions Email mckinstryj@northlan.gov.uk Telephone James McKinstry 07939281102 Executive Summary The Council’s Procurement Strategy 2022-23 was approved by Committee on 25 November 2021. The Annual Procurement Report provides the Committee with an update on the activity and outcomes that have been delivered through the Procurement Strategy from 1 April 2021 to 31 March 2022. This report discharges the Council’s duties in terms of the Procurement Reform (Scotland) Act 2014, to prepare an annual report on its regulated procurement activities. Recommendations It is recommended that the Finance & Resources Committee: • approve the content of this report and the publication of the Annual Procurement Report 2021-22; and • is advised that the Procurement Strategy is reviewed on an annual basis as set out at paragraph 2.4 of this report. The Plan for North Lanarkshire Priority All priorities Ambition Statement All ambition statements AGENDA ITEM 20 Page 193 of 274
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1. Background 1.1 The Council is obliged, under Section 18 of the Procurement Reform (Scotland) Act 2014, to prepare an annual procurement report on its regulated procurement activities as soon as reasonably practicable after the end of each financial year. 1.2 The monitoring and reporting requirements for this annual procurement report follow the guidance provided by the Scottish Government, which includes a requirement to capture data which will support its overarching report on public procurement activity across Scotland. 1.3 In terms of this guidance, the Council’s Annual Procurement Report must, as a minimum, include: • a summary of all regulated procurements completed during the year; • a review of whether those procurements complied with the public bodies’ procurement strategy; • where any procurements did not comply a statement of how the public body intends to ensure future regulated procurements do comply; • a summary of community benefits that were fulfilled during the year; • a summary of any steps taken to facilitate involvement of supported businesses; • a summary of regulated procurements the public body expects to commence in the next two years; and • such other information as the Scottish Ministers may by order specify. 1.4 The Annual Procurement Report must be published and available on the internet and details of the publication of the Annual Procurement Report must be provided to the Scottish Government. 1.5 COVID-19 continues to have a significant impact on the Council’s procurement activity during the reporting period and has presented a number of challenges to the Council and its suppliers. 1.6 With the pandemic and the on-going conflict in Ukraine affecting the global economy and financial markets, many procurement projects were impacted to some degree. The Corporate Procurement Team worked closely with all service areas as part of the Councils coordinated response to this, and to support suppliers, to ensure vital front- line services could continue to be delivered. 2. Report 2.1 This is the Council’s fifth Annual Procurement Report and covers the period 1 April 2021 to 31 March 2022. The Annual Procurement Report evaluates the extent to which regulated procurement activity was undertaken in accordance with Council’s published Procurement Strategy. Regulated procurement refers to any procurement above £50,000 for supplies and services and £2,000,000 for works in accordance with the terminology and thresholds as set by the relevant Scottish procurement regulations. 2.2 The Annual Procurement Report addresses the Councils statutory duties and its compliance with the objectives contained in its Procurement Strategy. An assessment of the extent to which the objectives have been met, reporting highlights, areas for further improvement and related performance measures are set out in the Annual Procurement Report which is provided as an appendix to this report. Page 194 of 274
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2.3 The Council’s previous Procurement Strategy was approved by Committee on 25 November 2021 and covers the period from 1 April 2022 until 31 March 2023. The Council is required to review its Procurement Strategy annually and make changes to it where appropriate. This forms a separate report to this Committee today. 2.4 The Procurement Strategy is reviewed on an annual basis to reflect any changes arising from the Scottish Governments review of the regulatory framework governing Public Sector Procurement activity and any substantive change to the Procurement Strategy is reported to Council Committee on an annual basis. 3. Measures of success 3.1 The Procurement Strategy supports the delivery of Council service priorities and wider social, economic, and financial policy objectives. 4. Supporting documents 4.1 Appendix 1 – Annual Procurement Report 2021-22. James McKinstry Head of Asset and Procurement Solutions Page 195 of 274
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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? Fair Work First practices are considered in individual contract strategies and implemented into procurement procedures and contracts. 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? There is no direct financial impact from the noting of this report. 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? 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? Regulated Contracts awarded by the Council must be compliant with procurement legislation, statutory guidance and the Council’s internal procurement procedural rules (General Contract Standing Orders). 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ Page 196 of 274
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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 ☒ 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? Environmental / Carbon Impacts are considered in individual contract strategies and implemented into procurement procedures and contracts. This includes energy efficient and environmentally friendly specifications. 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? Legislation requires that the Annual Procurement Report is published on the internet. Publication of the Annual Procurement Report also supports the Council’s commitment to transparency within its procurement activity. 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? Adopting the Annual Procurement Report and continuing to develop and deliver a procurement improvement plan, will improve controls, increase compliance, improve governance, build capacity and capability, introduce a commercial focus and will deliver better outcomes from the Council’s regulated procurement activity. Page 197 of 274
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North Lanarkshire Council Annual Procurement Report 1 APRIL 2021 – 31 MARCH 2022 Page 198 of 274
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2 | P a g e Contents 1 Introduction 3 2 Reporting Period Highlights 4 3 Summary of Regulated Procurement Activity 5 4 Review of Regulated Procurement Compliance 5 5 Community Benefit Summary 7 6 Supported Business Summary 8 7 Future Regulated Procurement Summary 9 Appendix 1 List of Regulated Procurements 10 Appendix 2 Regulated Procurement Compliance – Performance Indicators 16 Appendix 3 Wider Strategic Performance Indicators 18 Appendix 4 Community Benefits Outcomes 20 Appendix 5 Future Regulated Procurements 21 Appendix 6 Glossary 31 Page 199 of 274
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3 | P a g e 1. Introduction 1.1 North Lanarkshire Council (the Council) is a unitary authority, the fourth largest in Scotland, and is responsible for the delivery of a wide and diverse range of statutory and discretionary public services. 1.2 We deliver our services through a mixed economy acting as both a provider, through direct provision of services using our own workforce and assets, and an enabler with services delivered through private Providers, the Third Sector and Supported Businesses. 1.3 The Procurement Reform (Scotland) Act 2014 (the ‘Act’) requires us to prepare an annual procurement report on our Regulated Procurement activities as soon as reasonably practicable after the end of each financial year. 1.4 Accordingly, we are pleased to publish our fourth annual procurement report covering the period 1 April 2021 to 31 March 2022. As required under the Act, the content of this report includes; • a summary of all Regulated Procurements completed; • a review of whether those Regulated Procurements complied with our published Procurement Strategy and where Procurements did not comply a statement on how we intend to ensure future compliance; • a summary of any Community Benefit requirements incorporated as part of a Regulated Procurement that were fulfilled; • a summary of the steps we have taken to facilitate the involvement of Supported Businesses; and • a summary of Regulated Procurements we expect to commence in the next two financial years. 1.5 The COVID-19 pandemic and the conflict in Ukraine continues to have a huge impact on our procurement activity, and has presented a number of new and unexpected challenges to the Council and its supply chain. 1.6 With these points affecting the global economy and financial markets, many procurement projects were delayed to some degree. The Corporate Procurement Team worked closely with all service areas as part of the Councils coordinated response to this, and to support Providers, to ensure vital front-line services could continue to be delivered, often needing the Council to urgently purchase Supplies and Services not previously envisaged given the rapidly changing operational environment. 1.7 Our Procurement Strategy can be found at; Procurement Strategy 1.8 You can find out more about our procurement approach at; Procurement Information 1.9 The owner of our annual procurement report is Mr James McKinstry, Head of Asset and Procurement Solutions McKinstryJ@northlan.gov.uk Page 200 of 274
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4 | P a g e 2. Reporting Period Highlights 2.1 In the period 1 April 2021 to 31 March 2022, covered by this report; • our total third-party external spend was £520 million; • we completed 84 Regulated Procurements, the total value of the resultant contracts was £208,054,586.52, these contracts were awarded to 253 unique Providers; • 42% of the unique Providers awarded a contract are based in North Lanarkshire, the total value of the contracts awarded to those Providers was £110,064,790 (53% of the total value of the contracts awarded); • 84% of the unique Providers awarded a contract are SME’s, the total value of the contracts awarded to those Providers was £129,500,919 (62% of the total value of the contracts awarded); • we paid 84.2% of valid invoices within thirty days, getting cash into the economy as quickly as possible helping support COVID recovery; • 84% of the unique Providers awarded a contract are Scottish or have a base in Scotland; • we secured a range of Fair Work Practices across 100% of our contracts, improving pay and conditions for those working in our supply chain; • 94% of the unique Providers awarded a contract are committed to paying workers engaged in the delivery of these contracts the Real Living Wage; • 55% of the contracts we awarded are delivering Community Benefits; • we continued to deliver support to SMEs to access public sector opportunities in collaboration with the Supplier Development Programme by providing free training, information, virtual buyer events, webinars, toolkits and template documentation; • we supported the Councils response to COVID, securing vital Supplies and Services to help ensure the Council’s most vulnerable citizens could continue to receive vital services and do so in a way that kept both service users and Council staff safe; • we provided support to Providers and other organisations impacted by the pandemic; and • despite the impact of the COVID pandemic, 86.5% of our performance indicators contained in appendices 2 and 3, are maintained or show improvement when compared with our previous annual report. Page 201 of 274
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5 | P a g e 3. Summary of Regulated Procurement Activity 3.1 In total we completed 84 Regulated Procurements, the total value of the resultant contracts was £208,054,586.52. 253 unique Providers were awarded a contract. 3.2 Regulated Procurement refers to any Procurement above £50,000 for Supplies and Services and £2,000,000 for Works. A Regulated Procurement is completed when the contract award notice is published or where the contract award procedure otherwise comes to an end. Regulated Procurements can refer to new contracts and framework agreements but also to mini-competitions and call offs from existing framework agreements. 3.3 The Regulated Procurements we completed included projects supporting our ambitious capital investment programme of work, COVID 19 recovery and our business-as-usual activity. 3.4 A full list of the Regulated Procurements completed is provided as Appendix 1. 4. Review of Regulated Procurement Compliance 4.1 Our Procurement Strategy is published on our website, the Procurement Strategy is subject to regular review, the most recent review was approved by the Council in November 2021. Our Procurement Strategy details how we will take an innovative approach to Procurement and through our Procurement activity provide Social Value to local Communities and the wider Scottish economy. 4.2 Our Procurement Strategy also sets out how Regulated Procurement will be undertaken in compliance with the Act and in support of the Councils overall strategic priorities and ambitions. 4.3 Our Regulated Procurements are undertaken in accordance with a legal and procedural framework. Legal and procedural requirements are set out in our internal rules governing our procurement activity (General Contract Standing Orders) and supported by a comprehensive procurement toolkit containing templates and supporting documents which are aligned with the Scottish Government Procurement Journey. Our approach to Procurement requires that the entire Procurement process is documented and includes a number of review points. Procurement activity is also subject to internal and external audit. These combined processes ensure that Regulated Procurements are undertaken in compliance with our Procurement Strategy. 4.4 To allow us to have a clear understanding of our Procurement activity and performance against the objectives contained within our Procurement Strategy we have developed and report on performance measures. This will help us to measure and evaluate if the actions set out in our Procurement Strategy are being met, making a difference and to benchmark our procurement performance with others. 4.5 The impact of COVID-19 on the Council’s procurement activities has been significant and will continue to be so for the foreseeable future. As part of the Council’s response to the pandemic, much of the procurement focus has been on securing Supplies and Services, in extremely challenging market conditions, to ensure the delivery of essential services many of which are linked to the provision of services to our most vulnerable citizens. Because of the unexpected, but necessary, focus on supporting the Council’s COVID 19 response, a small number of the procurement performance measures contained in the annual procurement report have not followed the expected trend. It is anticipated that these measures will revert to the expected trend in the year ahead as focus returns to the delivery of the Procurement Strategy. Page 202 of 274
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6 | P a g e 4.6 Our performance in relation to our Regulated Procurements is provided in Appendix 2. Despite the impact of the COVID pandemic, 87% of these performance indicators have been maintained or show improvement when compared with the previous reporting period. 4.7 Our performance for the wider objectives set out in our Procurement Strategy is provided in Appendix 3. Despite the impact of the COVID pandemic, 86% of these performance indicators have been maintained or show improvement when compared with the previous reporting period. 4.8 To support the successful delivery of our Procurement Strategy and to further improve our procurement capacity and capability, we develop and implement a Procurement Improvement Plan. Delivery of the Procurement Improvement Plan is overseen by a governance group made up of senior Council officers. 4.9 Key benefits delivered include: • review of our Procurement Strategy; • ongoing updates to process and procedures to comply with the requirements of the new procurement rules and regulations and other best practice; • increasing the time spent on strategic aspects of Procurement activities. • supporting achievement of the Council’s overall savings targets; • embedding the Council’s approach to Community Benefits and Sustainable Procurement into all relevant Regulated Procurements, delivering Social Value across a wider range of commodities; • transitioning to the Scottish Government Procurement Journey which helped standardise our procurement processes and procedures, reducing risk and duplication; • introduction of a corporate approach to Contract Management to ensure that contracts deliver the expected outcomes and that supplier performance is monitored; and managed; • building a stronger relationship between Category Managers and procuring service areas to undertake category reviews, develop Procurement Plans and to further develop procurement capacity and capability; • continued investment in learning and development, supporting staff in the Corporate Procurement Team and wider procurement network to acquire relevant training and qualifications; • ensuring SMEs are provided targeted opportunities as standard within our competitive quotation procedure for lower value procurements; • the fulfilment of our Procurement Plans and the introduction of our new Commercial Pipeline approach; • an established procurement ‘benefits tracker’ to track both commercial and non-commercial benefits secured from our Procurement activity; • establishment of a senior governance group who set and oversee the strategic priorities for Procurement and the successful delivery of our Procurement Strategy and Procurement Improvement Plan; Page 203 of 274
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7 | P a g e • supporting the Council’s DigitaNL work programme and the ongoing digitisation of Council Services through the delivery of ‘purchase to pay’ automation and process efficiencies; • implementing improvements to the wider North Lanarkshire digital infrastructure by undertaking a planned rollout of the Digital Scotland Superfast Broadband: and 4.10 Our review of the Regulated Procurements completed, progress with the implementation of our Procurement Improvement Plan and our performance against the measures set out in this annual report has allowed us to identify a number of further areas of improvement; • continue to work with the procurement network to embed the agreed approach to Community Benefits, Sustainable Procurement, Social Value and Contract Management consistently across the organisation; • further refine our approach to tracking and reporting benefits delivered from our Procurement activity; • adopt a more focused approach to the provision of procurement training and development; • develop and implement a new streamlined and standardised Corporate contracting toolkit; • develop and implement a revised scheme of Delegated Procurement Authority, linked to a training and development programme; • further expand our use of technology to support the ‘purchase to pay’ process; and • target further improvement in our PCIP assessment score, consolidating our place in the top performance band for public procurement in Scotland. 4.11 Planned improvement actions are included in our 2021/23 Procurement Improvement Plan. 5. Community Benefit Summary 5.1 The Act requires that we must consider whether to incorporate Community Benefit requirements as part of the Procurement when the estimated contract value is greater than or equal to £4 million. Community Benefits are a key objective of our Procurement Strategy and as such our internal rules for Procurement stipulate that Community Benefits must be considered for inclusion in all Procurements with an estimated value greater than £1millon, a considerably lower financial threshold than required by the Act. 5.2 We awarded 14 Regulated Contracts with a value of £4million or greater of which 100% contained Community Benefits. 5.3 We awarded 13 Regulated Contracts with a value of between £1million and £4million of which 100% contained Community Benefits. 5.4 We have introduced internal processes to ensure that Community Benefits are considered for inclusion in Regulated Procurements in line with the requirements of the Act and our internal rules for Procurement. Not all contracts, by virtue of their subject matter, are suitable for the inclusion of Community Benefits and/or a Fair Work Practices requirement. Page 204 of 274
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8 | P a g e 5.5 Community Benefit outcomes are monitored through our approach to Contract Management and recorded in our procurement benefits tracker. 5.6 Community Benefits outcomes are classified and captured over five themes; • targeted recruitment and employment; • targeted skills and training; • vocational training and qualifications; • supply chain development; and • community engagement. 5.7 As is to be expected, community benefits delivered in the reporting period have been lower as a result of COVID 19 lockdowns, including construction site closures and restrictions limiting workplace activities. 5.8 Appendix 4 provides details of Community Benefits outcomes delivered. 6. Supported Businesses Summary 6.1 The Council recognises the important role of Supported Business that support social and professional integration of disabled or disadvantaged persons and has continued to reserve contracts where appropriate to ensure the stepping-stone into mainstream employment for disabled or disadvantaged persons provided by these businesses continues. 6.2 The Act requires us to include a summary of any steps taken to facilitate the involvement of Supported Businesses in Regulated Procurements during the period year by the report. 6.3 Our internal procurement rules require that consideration be given to inclusion of Supported Businesses in all Regulated Procurements. The Council continues to refer to the register of Supported Businesses supplied by the Scottish Government to identify opportunities to engage with Supported Businesses. 6.4 We own, operate and actively promote a Supported Business, North Lanarkshire Industries (NLI). We have a number of agreements in place with NLI for a range of services including the provision of furniture, furniture refurbishment, document storage and the servicing of fire equipment. The combined value of these arrangements was £878,530. 6.5 We made 7 further contract awards to the following Supported Businesses; Provider Total Contract Value Angela Harvey Salon Training and Education £277,777 Scotland's Bravest Manufacturing Company £7,042 Aqua Specialist Environmental Services £202,833 6.6 Although consideration is given to the involvement of Supported Businesses, the Supplies, Services or Works associated with many Regulated Procurements are not generally provided by Supported Businesses. This restricts our ability to make a significant number of contract awards to a Supported Business. Page 205 of 274
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9 | P a g e 6.7 We also purchase a range of Supplies from Providers who have supply chain arrangements with Supported Business, whilst we don’t contract with these Supported Business direct, they benefit from our Procurement activity. 7. Future Regulated Procurements Summary 7.1 The Act requires that our annual procurement report must include “a summary of the Regulated Procurements that we expect to commence in the next two financial years.” 7.2 Over the next two years the Council will have a mix of recurring requirements and one-off projects to take to the market. Significant Procurements will include projects directly linked to the successful delivery of the Plan for North Lanarkshire and include major initiatives such as the Enterprise Project and Digital NL. 7.3 We expect to commence 216 Regulated Procurements in the next two financial years, the total estimated value of these procurements is £2,350,918,238. 7.4 A summary of the Regulated Procurements anticipated in the next two years is provided in Appendix 5. Page 206 of 274
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Appendix 1 – List of Regulated Procurements 2021-22 Date of Award Contract - Subject Matter Name of the Supplier(s) Estimated Value of the Contract Contract Start Date Contract End Date Contract End Date incl Extension 08/04/2021 Design & Build of Roman Themed Play Area (Auchinstarry) Hawthorn Heights Ltd £184,910.00 31/05/2021 30/06/2021 30/06/2021 08/04/2021 Contract Progress Analyst/Programmer Services Harvey Nash £357,925.00 03/04/2021 02/04/2022 02/04/2023 08/04/2021 Leisure Data & Voice Network Services TalkTalk Business £90,000.00 01/04/2021 31/03/2022 31/03/2022 09/04/2021 Combined Consultancy Services Conversion of Kildonan Street Offices Collective Architecture £984,008.00 22/02/2021 21/02/2026 21/02/2026 30/04/2021 Supply & Delivery of Personal Protective Equipment (PPE) Lion Safety £904,590.13 30/04/2021 29/10/2021 29/10/2021 19/05/2021 Design & Construction of New Build Social Housing (Northburn Avenue) Hadden Group £5,796,444.50 12/07/2021 28/11/2022 28/11/2022 25/05/2021 Supply of Compostable Liners Cromwell Polythene Ltd £166,000.00 07/04/2020 06/04/2021 06/04/2021 26/05/2021 Supply & Build of a MUGA Complex (Saint Maurice's High School) Kompan Scotland Ltd £396,513.02 27/05/2021 13/08/2021 13/08/2021 27/05/2021 Design & Construction of New Build Social Housing (Dykehead Road, Holehills) CCG (Scotland) Ltd £26,996,624.87 18/10/2021 31/10/2022 31/10/2022 31/05/2021 Flexible Framework for Outdoor Education Centres Abernethy Trust; Active Outdoor Pursuits; Bendrigg Trust; Clyde Scouts; Field Studies Council; Lochranza Centre CIC; Scottish Outdoor Education Centres Ltd (Broomlee Outdoor Education Centre); Scottish Outdoor Education Centres Ltd (Dounans Outdoor Education Centre); Scottish Outdoor Education Centres Ltd (Belmont Outdoor Education Centre); Scouts Scotland; Scout Adventures (Fordell Firs); Scouts Scotland, Scout Adventures (Lochgoilhead); Sportscotland National Centre Inverclyde; Spotty Dog Adventures; SU Scotland (Gowanbank); SU Scotland (Lendrick Muir); The Actual Reality Trust; The Glencoe Trust Ltd; The Outward Bound Trust; Wiston Lodge Ltd £15,500,000.00 01/06/2021 31/05/2031 31/05/2031 04/06/2021 Professional Property Consultancy Services Avison Young (UK) Ltd; Colliers International Valuation UK LLP; Ryden LLP £175,000.00 07/06/2021 06/06/2023 06/06/2024 09/06/2021 ISO Certification Services SGS United Kingdom Ltd £67,000.00 01/06/2021 31/05/2024 31/05/2024 14/06/2021 Removal, Storage, Redistribution & Disposal Services Kelerbay Ltd t/a Doree Bonner International £480,000.00 21/06/2021 20/06/2023 20/06/2024 16/06/2021 MTC: Asbestos Surveying to Domestic & Asbestos Air Monitoring, Sampling & Life Environmental Services Ltd; Environmental Essentials Ltd £1,500,000.00 23/05/2022 24/01/2024 24/01/2025 Page 207 of 274
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11 | P a g e Surveying to Non-Domestic Properties 2021- 25 22/06/2021 Building Energy Management System (BEMS) - New Installations Laplace Solutions (South) Ltd £175,570.66 18/01/2021 17/01/2024 17/01/2025 22/06/2021 Lanarkshire Business Gateway Business Support & Expert Help Services GAP Communications; Intend Business Development Ltd; KL Business Consulting Ltd; CJM Project Financial Management Ltd; Amas Murrison Ltd; Secure Business Advisors Ltd; Complyport Ltd; French Duncan LLP; Connect Three Solutions Ltd; Enterprise North East Trust Limited t/a Elevator; UXL Ltd; SCMG Ltd; JI Management Ltd; Tinto Procurement; NSDesign Ltd; Genoa Black Ventures LLP; Bridgeall Ltd; Central Scotland Export Consultancy; Russell McLeod Ltd; Harper Macleod LLP; Vivolution Ltd; Stirton Consulting Ltd; Mabbett & Associates Ltd £690,625.00 01/07/2021 31/05/2023 31/05/2023 28/06/2021 Distress Brief Intervention Lifelink £211,250.00 01/04/2021 31/03/2022 31/03/2022 07/07/2021 Provision of Annual Support & Maintenance of Netcall Telephony Solution Netcall Technology Ltd £71,833.00 19/06/2021 18/06/2022 18/06/2022 08/07/2021 ICT Cabling Services Computer Links £644,000.00 12/07/2021 11/07/2023 11/07/2025 14/07/2021 Design of New Fleet Depot Faithful+Gould £384,388.00 01/09/2021 30/06/2023 30/06/2023 22/07/2021 Transport of Pupils with Additional Support Needs Q2 2021 A&D Travel; AA Mobility; Airdrie Taxis Ltd; Alan Thomson; Alexander Mackie; Alistair Carson; Anthony Ross Hamilton; Argyle Cars Ltd T/A Wellman Cars; Ask Taxis; B&D Cars; Brenda Brodie Taxi Operator; Central Cab Co (Cumbernauld) Ltd; Cumbernauld TOA; Daniel Phee; DanMac Travel; Derek Moss (Webwindow); Elizabeth MacGuire T/A A&D Travel Craig's Minibus; Elite4Travel (Bothwell) Ltd; Express Cars; Gary Walker T/A Seanic Taxis; GBT Ltd; James Canning; James Craig Donohoe T/A Craig's Taxi; James Cumming; James Galloway Taxi; James Reid; Jean Cox; Jim Bennett; Joe Welch; John Blair T/A JB Taxi Contracts; John Clark T/A Kilsyth Taxis; John Dalziel; John Hughes; John McGill, Kavanagh; Kenny Weir; Lanarkshire Private Hire Ltd T/A Penny Cars; Leeanne McGill; Lee's Taxis; Lynn Biggart; Lynn Robertson; Margaret Fleming; Mark Lyons; Matthew McLafferty; North Lanarkshire Private Hire (Bellshill) Ltd; Paul Dickson; Paul Hughes; Peter Grant; Redline Cabs; Robert Dornan; Robert Wilson Taxis; Scott McDougall; Scott Bryce; Scott Cadzow Private Hire; Scott Glendinning; John McCrone; Shields Taxis; Stephen Morrow; Tom McAdam; Tony's Private Hire Ltd; Town Taxis; United Maxis Taxis Wishaw Ltd; William Gray £3,307,682.25 01/08/2021 30/06/2022 30/06/2022 30/07/2021 East Airdrie Link Road Ground Investigation Soil Engineering Geoservices Ltd £2,019,734.95 30/08/2021 28/02/2022 28/02/2022 06/08/2021 Befriending Service for Children and Young People Community Volunteers Enabling You Ltd £361,602.00 27/08/2021 26/08/2023 26/08/2024 16/08/2021 MTC: Heating System Replacement (Gas, Electric & Renewable) 2021-26 Saltire Facilities Management Ltd £4,000,000.00 04/04/2022 21/01/2024 21/01/2026 Page 208 of 274
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12 | P a g e 18/08/2021 Direct Payment Support Service Glasgow Centre for Inclusive Living £411,673.05 01/10/2021 30/09/2023 30/09/2024 31/08/2021 Mobile Roll Packer Bergmann Direct Ltd £75,970.00 27/08/2021 30/11/2022 30/11/2022 08/09/2021 C02 Monitors YESSS Electrical Ltd £85,000.00 17/08/2021 27/08/2021 27/08/2021 10/09/2021 Replacement Refuse Collection Vehicles Western Automobile Company Ltd T/A Western Commercials £842,275.00 27/08/2021 30/11/2021 30/11/2021 13/09/2021 Flexible Framework for Vocational and Skills Based Interventions Angela Harvey Salon Training & Education; Lagta Group Training; Code Division; Enable Scotland; First Steps Future Training Ltd; GTG Training Ltd; Getting Better Together Ltd; HSC Futures Ltd; Impact Arts; KER Training Ltd; Lanarkshire Catering School; Next Generation Training Ltd; Outlet Play Resource; Playback ICE; Reeltime Music; Street League; Scottish Vocational Training Foundation C.I.C; Training Initiatives Ltd t/a TIGERS £5,000,000.00 13/09/2021 12/09/2025 12/09/2025 17/09/2021 MTC: Fire Alarm, Smoke Alarm & Protection Systems Servicing & Maintenance 2021-24 DM Integrated Ltd £175,000.00 01/11/2021 21/01/2024 21/01/2025 17/09/2021 Professional Services Bridge Inspections 2021-22 Stantec UK Ltd £74,000.00 17/09/2021 28/01/2022 28/01/2022 05/10/2021 MTC: Warden Calls at Sheltered Housing Complexes 2021-25 Legrand Electric Ltd £300,000.00 01/01/2022 21/01/2024 21/01/2025 05/10/2021 MTC: Water Quality Control (Risk Assessment, Monitoring Regime & Associated Remedial Works) 2021-24 SPIE Ltd £340,000.00 09/12/2021 21/01/2024 21/01/2025 08/10/2021 Design & Construction of New Build Social Housing (Community Road) CCG (Scotland) Ltd £5,613,736.73 18/10/2021 31/10/2022 31/10/2022 13/10/2021 Cash Collection Services 2021-22 Security Plus Ltd £137,241.00 01/10/2021 30/09/2022 30/09/2022 13/10/2021 Design, Supply & Installation of a Play Area (George Street Park) Sutcliffe Play Ltd £90,000.00 18/10/2021 31/01/2022 31/01/2022 21/10/2021 Adult Advocacy Services Equal Say Ltd, Equals Advocacy Ltd £1,375,000.00 01/11/2021 31/07/2024 31/07/2024 22/10/2021 Window & Glazing Cleaning 2022-25 J Kyle Cleaning Services; Maxim Facilities Management Ltd £225,232.00 03/01/2022 31/12/2024 31/12/2025 22/10/2021 Transport of Pupils with Additional Support Needs Q3 2021 Airdrie Taxis Ltd; Central Cab Co (Cumbernauld) Ltd; Elizabeth McGuire T/A A&D Travel Craig's Minibus; Frances Calderhead; Gary Walker T/A Seanic Taxis; GBT Ltd; John McLean; Kenny Weir; North Lanarkshire Private Hire (Bellshill) Ltd; Patrick Ferguson T/A Ferguson Minibus Hire; Peter Quinn; Redline Cabs; Town Taxis; United Maxis Taxis Wishaw Ltd; William Flanagan £692,216.00 22/10/2021 30/06/2022 30/06/2022 22/10/2021 Biomass Heating System Services and Supplies AMP Clean Energy Services Ltd £1,400,000.00 08/11/2021 07/05/2024 07/05/2025 Page 209 of 274
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13 | P a g e 27/10/2021 Insurance Services for Right to Buy Properties 2021-25 Zurich Municipal £1,284,774.27 15/05/2021 14/05/2024 14/05/2025 03/11/2021 Motherwell Station Active Travel Links Detailed Design & Tender Information Aecom Ltd £84,131.54 04/11/2021 31/05/2022 30/09/2022 03/11/2021 Utilities Monitoring and Targeting Database Inspired Energy Solutions Ltd £300,000.00 01/05/2022 30/04/2025 30/04/2027 10/11/2021 Landfill Leachate Removal Services Scottish Water Horizons Ltd £510,450.00 30/09/2021 29/09/2022 29/09/2024 18/11/2021 Insurance Services for the Council's Insurance Programme 2021-26 Risk Management Partners Ltd; Zurich Insurance plc (UK Branch) T/A Zurich Municipal; Maven Public Sector £11,795,000.00 01/10/2021 30/09/2024 30/09/2026 07/12/2021 Scheduled & Ad-hoc Taxi Services Airdrie Taxis Ltd; Central Cab Company; Lanarkshire Private Hire Ltd t/a Pennycars; Unitedmaxis Taxis Wishaw Ltd £3,200,000.00 01/02/2022 31/01/2026 31/01/2026 08/12/2021 Closed Circuit Television (CCTV) & Related Services 2022-24 SPIE Scotshield Ltd £5,800,000.00 17/01/2022 16/01/2024 16/01/2025 08/12/2021 Fuel Cards Shell UK £162,205.92 03/12/2021 21/03/2024 21/03/2024 09/12/2021 Flexible Framework for Provision of Non- Traditional Respite Services The No1 Care Agency; Seasoned Hands Care; Enable Scotland; Key Housing Association; Mears Ltd; Love @ Care; Alpha Care Management Services Ltd £4,000,000.00 01/12/2021 30/11/2031 30/11/2031 09/12/2021 Postal Services Royal Mail Group Ltd £475,000.00 01/01/2022 30/06/2022 30/06/2022 14/12/2021 Tenants Home Contents Insurance Scheme 2022-27 Thistle Insurance Services Ltd £2,200,000.00 01/04/2022 31/03/2025 31/03/2027 21/12/2021 Sheriff Officer Services Fraser Irvine Sheriff Officers LLP; Malcolm J Boyd Sheriff Officers £880,000.00 01/04/2022 01/04/2024 01/04/2026 21/12/2021 Ravenscraig Levelling Up Fund Civil Engineering Services Sweco UK Ltd £69,943.00 22/12/2021 31/03/2022 31/03/2022 22/12/2021 Mental Health Contracts SAMH £3,009,144.00 01/02/2022 31/01/2025 31/01/2025 23/12/2021 Club 365 Services Achieve More Scotland; Getting Better Together Ltd; MADE4UINML2; Motherwell FC Community Trust; Bellshill & Mossend YMCA £1,600,000.00 23/12/2021 22/12/2023 22/12/2025 23/12/2021 Housing Support Contracts Simon Community Scotland; Barnardo's; Blue Triangle (Glasgow) Housing Association Ltd £3,405,873.00 01/02/2022 31/01/2024 31/01/2025 23/12/2021 Environmental Assets Service Consultancy - Enterprise Project SOLACE in Business Ltd £150,000.00 17/01/2022 31/03/2023 31/03/2023 14/01/2022 Phase 2 Retrofit of Sprinklers & Associated Works (Five Tower Blocks) Harmony Fire Ltd £2,531,542.32 01/04/2022 01/06/2023 01/06/2023 19/01/2022 Fleet Management Solution Freeway Fleet Systems Ltd £217,750.00 01/04/2022 31/03/2025 31/03/2027 19/01/2022 Auchinlea Surface Water Management Consultancy Services RPS Consulting Services Ltd £101,259.83 17/01/2022 31/03/2023 31/03/2023 Page 210 of 274
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14 | P a g e 26/01/2022 Surface Water Management Plans & Flood Protection Studies 2022-23 Atkins Ltd £447,872.73 31/01/2022 31/03/2023 31/03/2023 31/01/2022 ServiceNow (SNOW) Licensing CDW Ltd £313,203.24 17/01/2022 16/01/2024 16/01/2025 02/02/2022 C02 Monitors YESSS Electrical Ltd £229,500.00 02/02/2022 26/02/2022 26/02/2022 02/02/2022 Payment Solution for Tower Laundries Electrolux Professional Services £93,210.00 01/02/2022 31/01/2025 31/01/2027 09/02/2022 Maintenance & Repair of Building Cleaning Equipment DMG Floorcare Ltd £260,000.00 01/02/2022 31/01/2026 31/01/2026 18/02/2022 Support & Maintenance Services (Leisure MRM System) Gladstone MRM Ltd £128,000.00 01/08/2021 31/07/2022 31/07/2022 21/02/2022 Online Payments & Cashless Catering Services 2021-22 Cash Registers (Buccleugh) Ltd T/A CRB Cunninghams £188,888.86 17/05/2021 31/03/2022 31/03/2022 23/02/2022 New Roof Structure & Finishing's, Insulated External Render & Associated Repairs to 54 Blackburn Type Houses, Coatbridge A.C. Whyte & Co Ltd £5,401,489.77 24/02/2022 09/11/2023 09/11/2023 01/03/2022 Industrial Development Opportunity, Jubilee Way, Bellshill Euromarques Motor Company Ltd £137,500.00 01/03/2022 28/02/2023 28/02/2023 07/03/2022 Electronic Programmable Signs 2022-24 Coeval Ltd £450,000.00 15/03/2022 31/03/2024 31/03/2024 09/03/2022 Civica 2022-2023 Licence, Support & Maintenance Services Civica UK Ltd £53,998.42 01/04/2022 31/03/2023 31/03/2023 09/03/2022 Carriageway and Car Park Resurfacing / Reconstruction & Minor Repairs 2022-26 Hillhouse Quarry Group Ltd T/A MacAsphalt; JH Civil Engineering Ltd; John McGeady Ltd; Luddon Construction Ltd; MacLay Civil Engineering Ltd; Newlay Civil Engineering Ltd; Tarmac Trading Ltd £20,000,000.00 01/04/2022 31/03/2025 31/03/2026 09/03/2022 Footway, Footpath and Paved Areas Resurfacing/Reconstruction & Minor Repairs 2022-26 Hillhouse Quarry Group Ltd T/A MacAsphalt; JH Civil Engineering Ltd; John McGeady Ltd; Luddon Construction Ltd; MacLay Civil Engineering Ltd; Newlay Civil Engineering Ltd £10,000,000.00 01/04/2022 31/03/2025 31/03/2026 11/03/2022 Occupational Health Services Health Management Ltd £250,000.00 01/10/2021 31/03/2022 31/03/2022 11/03/2022 MTC: Fire Alarms Smoke Alarms & Protection Systems - Servicing & Maintenance SPIE Scotshield Ltd £175,000.00 12/03/2022 30/11/2022 30/11/2022 18/03/2022 Postal Services Royal Mail Group Ltd £841,546.00 01/07/2022 30/06/2023 30/06/2023 18/03/2022 Justice Services - Creative Arts Project Street Cones £90,000.00 18/02/2022 31/03/2022 31/03/2022 23/03/2022 Supply & Delivery of Milk 2022-26 Muller UK and Ireland LLP T/A Muller Milk & Ingredients £2,431,836.00 28/03/2022 27/03/2026 27/09/2026 24/03/2022 MTC: Gas Heating System Replacements 2021-24 Gas Call Services Ltd; Saltire Facilities Management Ltd £24,000,000.00 04/04/2022 21/01/2024 21/01/2026 25/03/2022 Housing Sustainment Direct Support Simon Community Scotland £150,000.00 01/04/2022 31/03/2024 31/03/2025 Page 211 of 274
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15 | P a g e 28/03/2022 Online Learning Materials Learning Pool £70,000.00 28/03/2022 31/10/2022 31/10/2022 29/03/2022 MUGA Installation (Woodlands Primary School) Kompan Scotland Ltd £136,999.12 21/04/2022 31/07/2022 31/07/2022 30/03/2022 Online School Payments & Cashless Catering Services 2022 Cash Registers (Buccleugh) Ltd T/A CRB Cunninghams £125,423.34 01/04/2022 30/09/2022 30/09/2022 31/03/2022 Treatment & Disposal of Residual Waste from Household Waste Recycling Centres (HWRCs) Patersons of Greenoakhill Ltd £18,000,000.00 01/04/2022 31/03/2025 31/03/2027 Page 212 of 274
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Appendix 2 – Regulated Procurements Performance Indicators Ref Performance Measure 2018/19 Outcome 2019/20 Outcome 2020/21 Outcome 2021/22 Outcome Expected Trend 1. Percentage of Route 3 contract award procedures covered by a Sourcing Methodology 100% 100% 100% 100% Maintain 2. Percentage of Route 2 contract award procedures covered by a Sourcing Methodology 100% 100% 100% 100% Maintain 3. Percentage of Route 3 contracts under proactive contract management 95% 100% 100% 100% Maintain 4. Percentage of Route 2 contracts under proactive contract management 73% 100% 100% 100% Maintain 5. Percentage of Route 3 contracts awarded - contract award criteria MEAT 100% 100% 100% 100% Maintain 6. Percentage of Route 2 contracts awarded - contract award criteria MEAT 97% 97% 100% 100% Maintain 7. Number of contracts awarded from collaborative contracting arrangements (Third Party Frameworks) 43% 49% 44% 37% Increase 8. Number of contracts awarded from collaborative contracting arrangements (Third Party Frameworks) – Direct Award 44% 53% 80% 58% Manage 9. Number of contracts awarded from collaborative contracting arrangements (Third Party Frameworks) – Further Competition 56% 47% 20% 42% Manage 10. Percentage of contracts awarded that were advertised on the national procurement portal 100% 100% 100% 100% Maintain 11. Percentage of contracts awarded incorporating sustainability test 91% 98% 91% 100% Increase 12. Percentage of contracts awarded containing two or more lots 37% 24% 14% 30% Increase 13. Percentage of contracts awarded further to an advertised contract opportunity that resulted in only one bid being received 3% 9% 10% 0% Manage 14. Number of contracts awarded to Supported Businesses 1 2 4 8 Increase 15. Value of contracts awarded to Supported Businesses £1.36m £800k £976k £1.36m Increase 16. Percentage of contracts (number) awarded to SME's 49% 52% 61% 63% Increase 17. Percentage of contracts (number) awarded to local Providers 12% 17% 19% 21% Increase 18. Percentage of contracts (number) awarded to Third sector bodies 13% 5% 5% 7% Increase Page 213 of 274
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17 | P a g e 19. Percentage of contracts (number) awarded using the Negotiated Tendering Procedure 1% 7% 16% 18% Manage 20. Percentage of contracts awarded (number) that included pre-market engagement 0.07% 4% 8% 0.04% Increase 21. Percentage of contract award decisions (number) - successful legal challenge 0% 0% 0% 0% Maintain 22. Percentage of contract award procedures (number) - cancelled 11% 0.05% 2.4% 1.19% Manage 23. Percentage of contracts awarded (number) that included a scored Fair Work Practices criterion 84% 86% 100% 100% Maintain 24. Percentage of Providers awarded a contract who have committed to payment of the Real Living Wage to employees engaged on Council contracts 71% 85% 91% 94% Increase 25. Percentage of Providers awarded (number) a contract who are Real Living Wage accredited employers 15% 21% 10% 32% Increase 26. Percentage of Providers awarded (number) a contract who have signed up to the Scottish Business Pledge 0.06% 1% 1.9% 7.1% Increase 27. Percentage contracts awarded (number) with a value of £4 million or greater that contained a Community Benefits Requirement. 87% 83% 100% 100% Maintain 28. Percentage contracts awarded (number) with a value of between £1 million and £4 million that contained a Community Benefits Requirement. 67% 67% 100% 100% Maintain 29. Percentage of contracts awarded that complied with the organisational procurement strategy 88% 85% 100% 100% Maintain 30. Percentage of contracts undertaken (number) digitally - PCST 28% 37% 30% 44% Manage 31. Percentage of contracts undertaken (number) digitally – PCS mailbox 72% 63% 70% 56% Manage 32. Percentage of total "success measures" staying the same or improving (Appendix 2) 78% 78% 67% 87% Increase Page 214 of 274
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18 | P a g e Appendix 3 – Wider Strategic Performance Indicators Ref Performance Measure 2018/19 Outcome 2019/20 Outcome 2020/21 Outcome 2021/22 Outcome Expected Trend 1. Percentage of cashable savings target achieved 100% 100% 100% 100% Maintain 2. Procurement and Commercial Improvement Programme (PCIP) Score (biennial) 70% N/A N/A N/A Increase 3. Percentage of the total procurement spend with SMES 47% 47% 40% 40% Increase 4. Percentage of the total procurement spend with Third Sector bodies 16% 13% 13% 11% Increase 5. Percentage of the total procurement spend with Providers in North Lanarkshire 27% 28% 28% 27% Increase 6. Percentage of the total procurement spend with Supported Businesses 0.0209% 0.2029% 0.4376% 0.4971% Increase 7. Percentage of the total procurement spend from collaborative procurement arrangements 29% 34% 43% 30% Increase 8. Percentage of valid invoices paid in 30 days or less 90% 84% 82.5% 84.2% Increase 9. Percentage of total procurement spend with contracted Providers 90% 91% 91% 91% Increase 10. Forward procurement plans published on the internet Yes Yes Yes Yes Maintain 11. Contract register published on the internet Yes Yes Yes Yes Maintain 12. Annual Procurement Report published on the internet Yes Yes Yes Yes Maintain 13. Procurement Strategy reviewed and published on the internet Yes Yes Yes Yes Maintain 14. Number of business focussed engagement events supported 3 4 4 4 Maintain 15. Achieve and maintain Living Wage Employer accreditation Yes Yes Yes Yes Maintain 16. Percentage of procurement staff in the corporate procurement team - MCIPS qualified 25% 25% 33% 33% Increase 17. Percentage of procurement staff in the corporate team with appropriate CIPS qualification 100% 100% 100% 100% Maintain 18. Percentage of procurement staff in the corporate team working towards MCIPS qualification 36% 38% 38% 50% Maintain Page 215 of 274
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19 | P a g e 19. Percentage turnover of procurement staff in the corporate team 17% 21% 9% 0% Decrease 20. Number of hours of procurement related training delivered 494 hours 233 hours 255 hours 594 hours Increase 21. Number of FTE Procurement People of Tomorrow programme 1 1 1 1 Maintain 22. Percentage of total "success measures" staying the same or improving (Appendix 3) 90% 86% 90% 86% Maintain Page 216 of 274
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20 | P a g e Appendix 4 – Community Benefit Outcomes Theme Outcome Results Targeted Recruitment and Training New entrant - experience 7 posts New entrant – no relevant experience 36 posts New entrant – Modern Apprenticeship 15 posts New entrant - Graduate 4 posts Targeted Skills and Training Work experience placement (16yrs+) 48 work placements Work experience placement (14-16yrs) 20 work placements Work experience placement graduate 5 placements Careers event, Industry awareness events 72 events Site Visit 12 visits School mentoring or enterprise programme 59 sessions Vocational Training/qualifications Vocational Certification (Industry Certification) 5 certifications S/NVQ for apprentices to level 2 or above 15 S/NVQs Supply Chain Development Supply chain briefings (SME and Micro businesses) 32 events Business mentoring for an SME 51 opportunities Community Engagement Financial support for a community project £34,300 Non-Financial support for a community project 59 projects Page 217 of 274
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21 | P a g e Appendix 5 – Anticipated Future Regulated Procurements for Financial Year(s) 2022-23 and 2023-2024 Contract - Subject Matter (title) Type of Procurement Expected date of publication of Contract Notice Expected Date of Contract Award Expected Contract Start Date Est Contract Value Decriminalised Parking Enforcement Signing & Lining Maintenance Extension 05/08/2022 05/08/2022 06/08/2022 £159,674 Traffic Signal Maintenance Contract Extension 01/04/2022 01/06/2022 01/07/2022 £385,865 Stray Dog Kennelling Facility Extension 01/05/2022 01/08/2022 01/09/2022 £90,000 Online Knowledge Resource Library 2019-23 Extension 01/05/2022 30/07/2022 30/08/2022 £175,000 Provision of Winter Related Services Extension 01/07/2022 18/09/2022 18/10/2022 £770,000 Lanarkshire Business Gateway Services Extension 01/09/2022 01/02/2023 01/03/2023 £5,600,000 MTC: Roof & Render 2023-24 Extension 01/11/2022 05/03/2023 05/03/2023 £660,000 MTC: Roof & Render 2024-25 Extension 01/11/2023 05/03/2024 05/03/2024 £660,000 New Data Centre Extension 20/05/2023 20/06/2023 20/07/2023 £38,517.00 ICT Cabling & Asbestos Related Services Extension 12/05/2023 12/06/2023 12/07/2023 £161,000 Secure Web Gateway Extension 01/02/2024 01/03/2024 01/04/2024 £65,334 Mobile Voice & Data Services Extension 24/01/2023 24/02/2023 24/03/2023 £352,002 Service Now Licencing Extension 17/12/2023 17/12/2023 17/01/2024 £104,401 Banking Service Provision & Merchant Acquiring Solution Extension 01/02/2023 01/03/2023 01/04/2023 £180,000 St Stephen’s Community Hub New 01/11/2022 01/02/2023 01/03/2023 £15,500,000 Edward Lawson Centre/Bothwellpark New 01/02/2023 01/05/2023 01/06/2023 £2,400,000 Roof Works: Condorrat PS New 01/04/2022 01/09/2022 01/10/2022 £631,750 Rewire, Fire Stopping & Decoration: Aitkenhead PS New 01/04/2022 01/08/2022 01/09/2022 £500,000 Rewire, Fire Stopping & Decoration: St Helen's PS New 01/04/2022 01/08/2022 01/09/2022 £500,000.00 Page 218 of 274
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22 | P a g e Rewire, Fire Stopping & Decoration: Dalziel HS New 01/04/2022 01/10/2022 01/11/2022 £1,500,000 Demolition: Fleming House New 01/04/2022 01/08/2022 01/09/2022 £1,000,000 Rewire, Fire Stopping & Decoration Design Fees: Dalziel HS New 01/04/2022 01/05/2022 01/06/2022 £50,000 Design & Project Management: East Airdrie Link Road New 01/04/2022 01/07/2022 01/08/2022 £5,000,000 Cemetery Development: Pather Farm, Wishaw New 01/04/2022 01/06/2022 01/07/2022 £2,100,000 Newmains Improvement Works Packages New 01/04/2022 01/08/2022 01/09/2022 £1,000,000 FA: Greenspace Infrastructure New 01/04/2022 01/09/2022 01/10/2022 £2,500,000 Infrastructure Improvements: Braidhurst IE New 01/04/2022 01/05/2022 01/06/2022 £350,000 Longer Term Management Agreement: Cumbernauld Town Centre New 01/04/2022 01/12/2022 01/01/2023 £2,000,000 New Build Social Housing: Graham Street, Wishaw New 01/04/2022 01/07/2022 01/08/2022 £3,100,000 Business CRM System New 01/04/2022 01/09/2022 01/10/2022 £150,000 Construction Academy Options Appraisal New 01/04/2022 01/06/2022 01/07/2022 £50,000 Support for Businesses: Net Zero Carbon New 01/04/2022 01/06/2022 01/07/2022 £200,000 Support for Businesses: Skills & Training New 01/04/2022 01/06/2022 01/07/2022 £200,000 Disposal/Recycling of Inert/Rubble Materials from HWRC Sites New 01/04/2022 01/06/2022 01/07/2022 £264,000 Disposal/Recycling of Wood via HWRC Sites New 01/04/2022 01/06/2022 01/07/2022 £84,000 Disposal & Treatment of Engine Oil Collected from HWRC’s New 01/04/2022 01/06/2022 01/07/2022 £8,250 Disposal & Treatment of Gas Bottles Collected from HWRC’s New 01/04/2022 01/06/2022 01/07/2022 £100,000 Disposal & Treatment of Cardboard Collected from HWRC’s New 01/02/2022 01/06/2022 01/07/2022 £0 Disposal/Recycling of Scrap Metals via HWRC Sites New 01/04/2022 01/06/2022 01/07/2022 -£160,000 Bridge Inspection Assessments New 11/04/2022 13/05/2022 13/06/2022 £100,000 Transport Improvements: Glenboig & Gartcosh New 18/04/2022 18/04/2022 02/05/2022 £150,000 Part-Time 20mph Signs at Schools New 08/04/2022 08/07/2022 08/08/2022 £2,000,000 MTC: Water Pumps in Tower Blocks New 22/04/2022 01/06/2022 01/06/2022 £1,999,999 Page 219 of 274
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23 | P a g e Installation of Sprinklers to 4 Tower Blocks Phase 3 New 10/04/2022 10/09/2022 10/10/2022 £2,000,000 New Build Social Housing: Village Site, Glenmavis New 01/07/2022 01/10/2022 01/11/2022 £3,740,000 New Build Social Housing: Bank Street, Coatbridge New 01/05/2022 01/07/2022 01/08/2022 £4,000,000 New Build Social Housing: School Street, Former site of Columba HS New 01/05/2022 01/10/2022 01/11/2022 £27,200,000 New Build Social Housing: Caledonian Avenue, Wishaw (Former Methodist Church) New 01/05/2022 01/07/2022 01/08/2022 £2,100,000 New Build Social Housing: Calderigg Place, Airdrie New 01/05/2022 01/07/2022 01/08/2022 £8,810,000 New Build Social Housing: 303 Brandon Street, Motherwell New 01/05/2022 01/07/2022 01/08/2022 £8,330,000 Refurbishment & Conversion to Social Housing: Motherwell Town Hall New 01/04/2022 01/10/2022 01/11/2022 £4,000,000 Half Hourly Meter Operator & Data Collector for Electricity New 01/07/2022 01/12/2022 01/01/2023 £200,000 Skip Repairs New 01/05/2022 01/07/2022 01/08/2022 £100,000 Warden Call Digital Upgrade Phase 2 New 01/05/2022 10/06/2022 10/06/2022 £600,000 Pilot: Lanark County Council (Swedish Timber) New 05/05/2022 01/07/2022 01/08/2022 £500,000 Controlled Door Entry Installations New 18/05/2022 01/09/2022 01/10/2022 £1,995,000 Ecology, Nature Conservation & Biodiversity: South Cumbernauld (Palacerigg) New 30/05/2022 27/08/2022 27/09/2022 £60,000 Traffic Impact Assessment incl Traffic Counts & Modelling: South Cumbernauld (Palacerigg) New 30/05/2022 27/08/2022 27/09/2022 £80,000 Drainage Impact Assessment: South Cumbernauld (Palacerigg) New 30/05/2022 27/08/2022 27/09/2022 £80,000 Energy Performance Certification for Corporate Properties & School Estate New 01/06/2022 01/08/2022 01/09/2022 £100,000 Masonic Hall Works New 01/06/2022 01/07/2023 01/08/2023 £2,500,000 Various Cemetries: Pathworks & Drainage New 01/06/2022 01/07/2022 01/07/2022 £940,000 Water Tank Works & Airbles Tower: Water Cube New 08/06/2022 01/09/2022 01/09/2022 £1,000,000 Supply & Delivery of Heavy Vehicles New 01/07/2022 01/09/2022 01/09/2022 £8,251,004 Roads Distributor Network, SUDS & Drainage Design: South Cumbernauld (Palacerigg) New 31/07/2022 28/11/2022 28/12/2022 £50,000 Gartcosh Community Hub New 01/08/2022 01/07/2023 01/08/2023 £15,500,000 Page 220 of 274
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24 | P a g e Independent Tester: Gartcosh Community Hub New 01/08/2022 01/07/2023 01/08/2023 £80,000 New Build Social Housing: Coshneuk Road New 01/08/2022 01/01/2023 01/02/2023 £3,200,000 Refurbishment & Extension to Drummond Drive SHPC, Wishaw New 16/08/2022 09/12/2022 09/01/2023 £1,500,000 Supply of Vehicle Parts New 01/09/2022 01/04/2023 01/05/2023 £500,000 Installation of Sprinklers to 4 Tower Blocks Phase 5 New 06/09/2022 06/04/2024 06/05/2024 £2,000,000 Demolition: Allershaw Tower, Gowkthrapple New 14/09/2022 03/03/2023 03/04/2023 £1,600,000 Abronhill Community Hub New 01/10/2022 09/12/2023 09/01/2024 £40,000,000 Independent Tester: Abronhill Community Hub New 01/10/2022 09/12/2023 09/01/2024 £100,000 Bellshill Town Centre Works New 01/10/2022 01/01/2023 01/02/2023 £4,000,000 Bellshill Town Centre Consultancy New 01/10/2022 01/01/2023 01/02/2023 £300,000 New Build Social Housing: King Street, Wishaw New 01/10/2022 01/02/2023 01/03/2023 £2,720,000 Kings House, Wishaw New 01/10/2022 01/02/2023 01/03/2023 £3,400,000 Glenboig Existing Cottages: Conversion & New Build to Provide Wheelchair Properties New 01/10/2022 01/02/2023 01/03/2023 £1,000,000.00 Cumbernauld Village School: Conversion & New Build to Provide Social Housing New 01/10/2022 01/02/2023 01/03/2023 £1,000,000.00 Drive Through Vehicle Wash New 01/10/2022 15/11/2022 15/12/2022 £90,000 Redevelopment: Watersports Centre, Strathclyde Country Park - Design & Build from RIBA Stage 2 Onwards New 31/10/2022 15/12/2022 15/01/2023 £15,000,000 Palacerigg Play Delivery New 01/01/2023 01/03/2023 01/04/2023 £100,000 Replacement of Extract Fans New 28/03/2023 01/07/2023 01/08/2023 £1,200,000 IRS Replacement New 24/07/2023 01/10/2023 01/11/2023 £1,000,000 Works: Lanark County Council (Swedish Timber) New 07/11/2023 01/03/2024 01/04/2024 £5,000,000 Dualling: Airbles Road & Junction Improvement Works: Ravenscraig Access Infrastructure New 01/11/2022 01/12/2023 01/01/2024 £5,000,000 Dualling: A723 from Ravenscraig to M8 Works: Ravenscraig Access Infrastructure New 01/11/2022 01/12/2023 01/01/2024 £38,000,000 Page 221 of 274
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25 | P a g e Airdrie Town House Works New 01/11/2022 01/03/2023 01/04/2023 £2,200,000 Infrastructure Improvements: Braidhurst IE New 01/11/2022 01/01/2023 01/02/2023 £4,500,000 Refurbishment & Conversion to Social Housing: Kildonan Street, Coatbridge New 01/11/2022 01/06/2023 01/07/2023 £10,500,000 Consultancy Services: Muir Street/Merry Street New 01/12/2022 01/01/2023 01/02/2023 £200,000 Extension to Chryston HS New 01/02/2023 01/01/2024 01/02/2024 £28,500,000 Electric Heating within Towers New 02/02/2023 01/10/2023 01/11/2023 £5,000,000 Refurbishment Works: Whifflet & Calder New 10/02/2023 01/07/2023 01/08/2023 £18,000,000 Sherlocks Works Consultancy New 01/04/2023 01/05/2023 01/06/2023 £150,000 Maintenance: Local Nature Reserve: Gartcosh/Frankfiel New 01/05/2023 02/04/2023 02/05/2023 £80,000 Demolitions: Tower Blocks at Dunbeth - Jackson Court, High Coats & Dunbeth New 19/05/2023 18/09/2023 18/10/2023 £1,600,000 Works: Muir Street/Merry Street New 01/07/2023 01/09/2023 01/10/2023 £2,250,000 Sherlocks Works New 01/08/2023 01/09/2023 01/10/2023 £1,500,000 Refurbishment & Extension: Future SHPC - Phase 3 New 29/08/2023 22/12/2023 22/01/2024 £1,500,000 Installation: Sprinklers to 1 Tower Blocks Phase 4 New 01/11/2022 25/06/2023 25/07/2023 £750,000 Inspection & Maintenance of PE Equipment New 01/06/2022 01/07/2022 01/08/2022 £200,000 Housing Crisis Response Service New 01/06/2022 01/08/2022 01/09/2022 £200,000 Design & Build: Pump Track (Moor Park) New 01/06/2022 01/08/2022 01/09/2022 £100,000 Design & Build: Play Area (Dunalister Drive) New 01/06/2022 01/08/2022 01/09/2022 £220,000 Design & Build: 3 Play Areas (Lilac Crescent, Currieside Avenue & Attercliffe Avenue) New 01/06/2022 01/08/2022 01/09/2022 £130,000 Design & Build: Play Area (Gartlehill Play & Wheeled Sports Area) New 01/04/2023 01/07/2023 01/08/2023 £100,000 Design & Build: Play Area (Willow Dr, Craigneuk) New 01/04/2023 01/07/2023 01/08/2023 £170,000 Design & Build: Play Area (Scarhill Street) New 01/06/2022 01/08/2022 01/09/2022 £130,000 Design & Build: Play Area (Livingston Park) New 01/06/2022 01/08/2022 01/09/2022 £120,000 Design & Build: Play Area (The Loaning) New 01/06/2022 01/08/2022 01/09/2022 £110,000 Page 222 of 274
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26 | P a g e Design & Build: Wheeled Sports Area (Kelvin Drive) New 01/04/2023 01/07/2023 01/08/2023 £60,000 Design & Build: Play Area (Hartwood) New 01/06/2022 01/08/2022 01/09/2022 £55,000 Design & Build: Play Area (Cleland Public Park & Hareshaw) New 01/04/2023 01/07/2023 01/08/2023 £200,000 Design & Build: Play Area (King George V Wishaw) New 01/04/2023 01/07/2023 01/08/2023 £120,000 Design & Build: MUGA (Rennie Road) New 01/04/2023 01/07/2023 01/08/2023 £60,000 Design & Build: Play Area (Lyman Drive) New 01/04/2023 01/07/2023 01/08/2023 £100,000 Design & Build: (Play Area (Newmains) New 01/06/2022 01/08/2022 01/09/2022 £150,000 Missing Persons New 01/08/2022 31/03/2023 01/04/2023 £50,000 Library Books and Textbooks (Call-offs) New 01/06/2022 01/07/2022 01/08/2022 £2,800,000 Flexible Framework: Education Services (New Generation SAC & PEF) Re-Let 01/04/2022 11/11/2022 11/12/2022 £16,000,000 Till Catering System: Community Facilities New 01/06/2022 01/08/2022 01/09/2022 £85,000 Digital Telecare Solution New 01/08/2022 01/11/2022 01/12/2022 £2,000,000 Interactive Panel Refresh, Digital Technologies in Educational Establishments New 01/05/2022 01/11/2022 01/12/2022 £4,700,000 Provision of Unified Communications New 01/04/2022 15/07/2022 15/08/2022 £4,000,000 Public Library Management Solution 2022-25 New 01/06/2022 01/10/2022 01/11/2022 £77,000 Assistive Technology Services M365 Migration New 13/04/2022 13/05/2022 13/06/2022 £135,000 5G Enabled Immersive Experience Pods New 01/05/2022 05/08/2022 05/09/2022 £600,000 Corporate Telephony Solution New 01/09/2022 01/12/2022 01/01/2023 £424,100 IT Hardware (Call-offs) New 01/09/2022 01/12/2022 01/01/2023 £1,067,744 Network Hardware: Local Area Network Refresh New 01/10/2022 30/11/2022 31/12/2022 £2,979,000 Unix Support Services New 01/05/2022 01/06/2022 01/07/2022 £280,000 Personal Protective Equipment New 01/06/2022 01/09/2022 01/10/2022 £4,000,000 Electric Car Salary Sacrifice Scheme New 01/06/2022 01/09/2022 01/10/2022 £4,000,000 Advocacy Services for Adults Re-Let 01/09/2023 01/07/2024 01/08/2024 £1,800,000 Page 223 of 274
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27 | P a g e Making Life Easier North Lanarkshire Re-Let 16/04/2022 01/08/2022 01/09/2022 £110,000 Aids for Daily Living Re-Let 01/08/2022 01/09/2023 01/10/2023 £2,800,000 Supply, Installation & Servicing of Stairlifts & Hoists Re-Let 01/08/2022 01/09/2023 01/10/2023 £8,000,000 Repairs & Maintenance of Catering Equipment Re-Let 01/10/2022 01/09/2022 01/10/2022 £525,000 Commercial Catering Equipment Re-Let 01/11/2022 01/02/2023 01/03/2023 £1,200,000 Supply & Distribution of Frozen Foods Re-Let 01/05/2022 17/07/2022 17/08/2022 £6,000,000 Fresh Meats, Cooked Meats & Fresh Fish Re-Let 01/09/2022 01/10/2022 01/10/2022 £1,850,332 Advocacy Services for Children & Young People Re-Let 01/09/2023 01/07/2024 01/08/2024 £964,000 Motherwell Theatre Pantomimes Re-Let 01/05/2022 01/03/2023 01/04/2023 £2,400,000 Delivery of BA Childhood Practice Course Re-Let 30/04/2022 01/07/2022 01/08/2022 £180,000 Stairwell Cleaning Services Re-Let 01/04/2023 14/12/2023 14/01/2024 £1,600,000 Postal Services Interim Re-Let 01/07/2022 01/07/2022 01/07/2023 £850,000 Floorcare & Floor Cleaning Equipment Re-Let 01/02/2023 01/10/2023 01/11/2023 £300,000 Befriending Service Re-Let 01/02/2024 27/07/2024 27/08/2024 £200,000 Waste Management & Recycling Services for Bulky Waste Re-Let 01/05/2022 14/09/2022 14/10/2022 £4,000,000 Enterprise Project: Housing & Corporate Services Re-Let 02/05/2022 22/12/2023 22/01/2024 £1,500,000,000 Kitchens & Bathrooms Replacements Re-Let 21/07/2022 22/12/2023 22/01/2024 £5,000,000 FA: Lanarkshire Business Gateway Expert Help Services Re-Let 01/08/2022 01/05/2023 01/06/2023 £500,000 MTC: Fire Alarms, Smoke Alarms & Protection Systems, Services & Maintenance Re-Let 01/04/2022 01/04/2022 01/04/2022 £170,000 Enterprise Project: Roads & Winter Services Re-Let 26/09/2022 11/05/2024 11/06/2024 £300,000,000 Disposal & Treatment of Special Waste - Car Batteries Collected from HWRC’s Re-Let 01/04/2022 01/06/2022 01/07/2022 -£58,666 Pest Control Services: Domestic & Corporate Premises Re-Let 01/05/2022 01/12/2022 01/01/2023 £500,000 Street Sweeping Services Re-Let 01/06/2022 01/10/2022 01/11/2022 £325,000 Page 224 of 274
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28 | P a g e Disposal/Recycling of Kerbside Collected Dual Recycling Stream Lot 2 Glass/Metals/Plastics Re-Let 01/05/2022 01/09/2022 01/10/2022 £1,365,000 Maintenance of Air Monitoring Equipment Re-Let 01/06/2022 01/10/2022 01/11/2022 £150,000 Disposal/Recycling of Kerbside Collected Combined Food & Garden Re-Let 01/06/2022 01/09/2022 01/10/2022 £2,300,000 Landfill Consultancy Service Re-Let 15/06/2022 10/08/2022 10/09/2022 £255,004 Supply & Delivery of Cars Re-Let 01/07/2022 01/08/2022 01/09/2022 £681,340 Supply & Delivery of Light/Medium Vehicles Re-Let 01/07/2022 01/08/2022 01/09/2022 £3,659,356 MTC: Windows & Doors Re-Let 08/07/2022 09/12/2022 09/01/2023 £15,000,000 Metal Doors & Blacksmiths (Corporate Property) Re-Let 20/07/2022 20/12/2022 20/01/2023 £4,000,000 Purchase of Compostable Food Waste Liners Re-Let 01/08/2022 01/12/2022 01/01/2023 £664,000 Purchase of Dumpers Re-Let 01/10/2022 31/02/2023 31/03/2023 £107,400 Purchase of Tractors Re-Let 01/10/2022 31/02/2023 31/03/2023 £360,000 Manned Security Services Re-Let 01/10/2022 15/11/2022 15/12/2022 £180,000 MTC: Floor Coverings (Corporate Property) Re-Let 04/10/2022 24/04/2023 24/05/2023 £4,292,000 Asbestos Removal & Encapsulation Service - Lot 2 Domestic Re-Let 31/10/2022 14/08/2023 14/09/2023 £1,000,000 Winter Related Services: Education & Corporate Estate Re-Let 01/02/2023 18/09/2023 18/10/2023 £800,000 Pool Servicing & Maintenance Re-Let 28/03/2023 14/08/2023 14/09/2023 £150,000 Pool Materials Re-Let 28/03/2023 14/08/2023 14/09/2023 £50,000 MTC: Controlled Door Entry System Re-Let 29/03/2023 20/09/2023 20/10/2023 £1,050,000 BEMS (Corporate Property) Re-Let 12/07/2023 18/12/2023 18/01/2024 £1,000,000 Supply of Electricity Re-Let 01/04/2024 01/04/2024 01/04/2024 £40,000,000 Optimised Routing Software & In-Cab Technology Re-Let 01/04/2022 01/04/2022 01/05/2022 £225,000 Fleet Tracker System Re-Let 01/07/2022 01/08/2022 01/09/2022 £300,000 Digital Tachograph System Re-Let 01/07/2022 01/08/2022 01/09/2022 £108,000 Page 225 of 274
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29 | P a g e Personal Protective Equipment - One Stop Shop (FSS) Re-Let 01/06/2022 01/06/2022 01/07/2022 £350,000 Postal Services 2023-26 Re-Let 01/07/2022 01/06/2023 01/07/2023 £3,600,000 Recruitment Advertising & Public Information Notices Re-Let 01/01/2023 07/09/2023 07/10/2023 £700,000 Print & Associated Services (National) Re-Let 31/01/2023 01/01/2023 01/02/2023 £600,000 Print & Associated Services (Local) Re-Let 31/01/2023 01/01/2023 01/02/2023 £150,000 Office Equipment Re-Let 01/12/2022 01/03/2023 01/04/2023 £3,000,000 Provision of Electoral Services & Related Systems Re-Let 01/08/2022 01/11/2022 01/12/2022 £370.000 Webcasting of Council & Committee Meetings Re-Let 01/01/2023 01/04/2023 01/05/2023 £55,000 Housing Options Training Toolkit Re-Let 18/03/2023 18/11/2023 18/12/2023 £500,000 Learning Management Solution Re-Let 05/07/2023 05/12/2023 05/11/2023 £200,000 Hosted Job Manager & Dynamic Scheduling Software Solution Re-Let 01/07/2023 01/10/2023 01/11/2023 £900,000 Confirm Enterprise Solution Re-Let 09/06/2023 10/05/2023 10/06/2023 £320,000 Confirm Interim Housing Asset Management Repository Re-Let 22/11/2023 23/10/2023 23/11/2023 £180,000 Contract Progress Analyst Programmer Services Re-Let 02/04/2023 03/03/2023 03/04/2023 £180,000 Planning, Building Control & Property Systems Re-Let 31/03/2023 01/03/2023 01/04/2023 £300,000 Online School Payments Solution Re-Let 30/09/2022 01/09/2022 01/10/2022 £200,000 Cashless Catering Solution Re-Let 30/09/2022 01/09/2022 01/10/2022 £1,841,964 Network Hardware & Maintenance Re-Let 05/03/2023 06/02/2023 06/03/2023 £1,400,000 Netcall Telephony System Annual Maintenance 2022-24 Re-Let 18/06/2022 19/05/2022 19/06/2022 £157,604 Hosting, Support, Licencing of Gladstone MRM Leisure Management Solution Re-Let 31/07/2022 01/07/2022 01/08/2022 £690,000 Provision of Licence, Support & Maintenance for Civica IT Solution 2023-24 Re-Let 31/03/2023 01/03/2023 01/04/2023 £54,000 Siem Replacement Managed Services Re-Let 01/07/2022 30/08/2022 30/09/2022 £185,000 Backup Replacement Re-Let 01/07/2022 30/08/2022 30/09/2022 £116,302 Dell EMC Data Domain Maintenance Storage Re-Let 01/09/2022 01/12/2022 01/01/2023 £55,000 Page 226 of 274
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30 | P a g e Managed Operations Support Re-Let 18/10/2022 18/12/2022 18/01/2023 £210,592 ARC GIS Platform Maintenance Re-Let 01/02/2023 01/03/2023 01/04/2023 £61,000 Washroom Solution Services Re-Let 01/08/2022 01/11/2022 01/12/2022 £380,000 General Stationery & Office Paper Re-Let 01/06/2022 01/09/2022 01/10/2022 £1,400,000 IT Consumables Re-Let 01/06/2022 01/09/2022 01/10/2022 £200,000 Payment Processing Service & Payment Card Production Service Re-Let 01/06/2022 01/10/2022 01/11/2022 £900,000 Cash Collection Services 2022-24 Re-Let 01/08/2022 01/09/2022 01/10/2022 £300,000 Cycle to Work Salary Sacrifice Scheme Re-Let 01/12/2022 01/03/2023 01/04/2023 £160,000 Provision of Domestic & Soft Furnishings 2022-26 Re-Let 01/07/2022 01/10/2022 01/11/2022 £20,000,000 Banking Service Provision & Merchant Acquiring Solution Re-Let 01/07/2023 01/03/2024 01/04/2024 £900,000 Page 227 of 274
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31 | P a g e Appendix 6 – Glossary Commercial Pipeline – is an on-going record of current and programmed procurement requirements. Community Benefits – Community Benefits are requirements which deliver wider benefits in addition to the core purpose of a contract. These can relate to social, economic and environmental benefits. Contract Management – the tasks and activities which seek to ensure we receive what we have contracted to receive, at the price we contracted to receive it, taking account of agreed change and continuous improvement. Activity is focused from prior to the contract starting though to contract expiry and de-commissioning. It includes Provider relationship management and ensures that we meet our obligations under the contract. Delegated Procurement Authority – designation of officers who have the appropriate expertise and authority to procure Supplies, Works or Services on behalf of the Council. Fair Work Practices – is evaluation criteria within the Procurement that assesses tenderers approach to fair working practices, including paying the Real Living Wage, investment in workforce development, no inappropriate use of zero hours contracts, trade union membership and action to tackle the gender pay gap to create a more diverse and inclusive workplace. PCS – means the national public procurement portal, Public Contract Scotland portal, on which contract opportunities with the Scottish public sector are advertised. PCIP – is the Procurement & Commercial Improvement Programme (PCIP) assessment that provides a means of measuring and reporting on the procurement and commercial capability of public sector organisations through the provision of evidence, based around a series of set questions and other evaluation methods. Procurement – the tasks and decisions which secure an external Provider to provide what we want, at a price that we can afford. Activity is focused on the period from prior to advertising a tender to signing the contract. It includes both competitive tenders and circumstances where we negotiate with a single Provider. Procurement Plan – practical planning of the procurement, or group of similar procurements, including approach, resourcing and timetable. Provider – any organisation that provides Supplies, Works or Services to the Council or on behalf of the Council. Real Living Wage – The real Living Wage is an independently calculated rate based on the cost of living and is paid voluntarily by employers. The rate is currently £9.50 and is calculated each year in November by The Resolution Foundation on an analysis of the wage that employees need to earn in order to afford the basket of goods required for a decent standard of living. This basket of goods includes housing, childcare, transport and heating. The Real Living Wage is different to the UK government’s National Living Wage which is not calculated according to what employees need to live on. Living Wage accreditation formally recognises and celebrates employers who choose to go further than the government minimum, Page 228 of 274
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32 | P a g e recognising that a real Living Wage is good for business, good for workers and good for society The two key accreditation requirements are that all directly employed members of staff aged 18 and over must be paid at least the real Living Wage and, to the extent permitted by law, all regular contracted workers must be paid the real Living Wage. Regulated Procurements – Regulated Procurement refers to any Procurement above £50,000 for Supplies and Services and £2,000,000 for Works. Scottish Government Procurement Journey –provides guidance for public sector buyers who procure goods, services and care and support services. Services – services that we buy including specialist support for vulnerable children and adults, and also repairs and maintenance services, financial advice, designs and surveys for new building works. SME or Small and Medium Enterprises – firms that employ 9 or fewer staff (micro), and firms that employ 50 or fewer staff (small), and firms that employ 250 or fewer staff (medium). Social Value – the additional economic, social and environmental benefits that a contract achieves. Supplies – items that we buy, such as pens and paper, or plants and seeds, or fruit and vegetables. Sustainable Procurement – a process whereby organisations meet their needs for Supplies, Services and Works in a way that achieves value for money and generates benefits, not only for the organisation but also to wider society, the economy and the environment. Supplier Development Programme – a public sector organisation who offer expert training, support and information to helps Scottish based businesses develop and grow. Supported Business – an establishment where more than 50% of the workers are disabled persons who by reason of the nature or severity of their disability are unable to take up work in the open labour market. Third Sector – the group name for a range of organisations including community groups, charities, voluntary organisations, faith groups, social enterprises, community interest companies. Third sector organisations may be registered charities and may be registered companies. They include small, local groups and large multinational operations, and everything in between. Works – construction works that we buy, including construction of new buildings, or extensions, and creation and improvements to roads and bridges and open spaces. Page 229 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref DM/IM Date 14/09/22 Proposed Sub Station at Paddock Street, Carnbroe From James McKinstry, Head of Asset and Procurement Solutions E-mail maxwelld@northlan.gov.uk Telephone 07983 333 166 Executive Summary The purpose of this report is to seek homologation of the decision taken by the Executive Director of Education and Families in consultation with the Convener of the Finance and Resources Committee for a 175 year lease to SP Distribution PLC for an electrical substation and associated servitude for cables, pedestrian and vehicular rights of access on land at the site of the proposed Carnbroe Community Hub at Paddock Street, Carnbroe. Recommendations It is recommended that the Finance and Resources Committee: 1) Consider the content of this report. 2) Homologate the decision taken by the Executive Director of Education and Families in consultation with the Convener of the Finance and Resources Committee to approve the lease terms detailed at Sections 2.1 and 2.2 within this report. 3) All other terms and conditions are to be adjusted by the Head of Asset & Procurement Solutions. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (3) Maximise the use of our marketable land and assets through improved development in business and industrial infrastructure AGENDA ITEM 21 Page 231 of 274
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1. Background 1.1 An electrical substation is required to provide a sustainable electricity supply to the new Carnbroe Community Hub at Paddock Street, Carnbroe which is due to commence construction in 2022. 1.2 Provisional agreement has been reached between North Lanarkshire Council and SP Distribution PLC for a 175 year lease. 2. Report 2.1 Description 2.1.1 The substation is to be sited within an area of land at Paddock Street, Carnbroe. 2.1.2 The proposed area to be leased extends to 25 square metres (269 sq.ft.) or thereby, shown shaded on the plan attached at appendix A. 2.1.3 A servitude right for cables, pedestrian and vehicular access to the substation will be taken from Paddock Street, the route of which is shown hatched at appendix A. 2.2 Lease proposal 2.2.1 A provisional agreement has been reached with SP Distribution PLC on the following terms and conditions: I. Rent: £1 per annum (if asked). II. Date of Entry: Upon conclusion of missives or as agreed between the parties. III. Term: 175 years. IV. Legal Fees: Both parties shall bear their own legal fees relating to this transaction. 3. Measures of success 3.1 This transaction will enable SP Distribution PLC to erect a new substation to provide a sustainable electrical supply to the new Carnbroe Community Hub at Paddock Street, Carnbroe. 4. Supporting documentation 4.1 Location Plan Appendix A Page 232 of 274
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James McKinstry Head of Asset and Procurement Solutions Page 233 of 274
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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? 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? Formal lease and servitude for 175 years. 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 ☒ Page 234 of 274
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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? Page 235 of 274
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Appendix A – Location Plan Page 236 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref:JB/LB Date 14/09/22 Contract Awards for Cashless Catering Solution and Online School Payments From James McKinstry, Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone 07939 281102 Executive Summary In accordance with General Contract Standing Orders 21.3.2, Executive Director Approval was provided to expedite the contract award for a ‘Cashless Catering Solution’ (the “Contract”) for the Schools estate. The award was made to CRB Cunninghams. This is a long-term contract that will provide continuity for 5 years. Committee should note that prior to establishing the new Contract, two interim contracts were placed directly with the incumbent Contractor, necessary to ensure a bridge between old and new Contracts, ensuring maintenance, support and continuity of service during a period disrupted significantly by COVID 19. Recommendations Finance and Resources Committee are advised of: (1) Interim Contracts awarded directly to CRB Cunninghams for the provision of ‘Cashless Catering Maintenance’ and ‘Online School Payments’. These interim Contracts were awarded using a Negotiated Tendering Procedure (“NTP”) conducted in conformance with General Contract Standing Orders (“GCSOs”) and the relevant Procurement Regulations; (2) Long-term Contract awarded to CRB Cunninghams for the provision of Cashless Catering Solution. The Contract award followed a mini-competition of the Council’s requirements through a National Collaborative Framework. The resultant award is for 5 years. The fixed requirements of the new solution will cost £777,078 with an option to consider further spend should the opportunity arise to provide add-ons that could advance the solution during the contract period; and (3) A separate procurement is being undertaken to secure a long term solution for Online School Payments. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities AGENDA ITEM 22 Page 237 of 274
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Ambition statement (15) Encourage the health and wellbeing of people through a range of social, cultural, and leisure activities Page 238 of 274
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1 Background Previous Contracts 1.1 North Lanarkshire Council (“the Council”) has had a cashless catering solution deployed in every school across the estate since March 2017. In addition to this, an ‘Online School Payments’ facility has been in place since May 2018. 1.2 The solutions for these products and services are very bespoke, with a vast range of functionality to support operations and delivery of an effective schools meal service. 1.3 Both Contracts were held by the same Contractor, CRB Cunninghams. 1.4 The previous contract for the provision of a ‘Cashless Catering Solution’ was for the period 1 March 2017 to 28 February 2021 and that was reported to ‘Education Committee’ February 2017. 1.5 The previous contract for ‘Online School Payments’ was for the period 1 May 2018 to 30 April 2021 and that was reported to ‘Infrastructure Committee’ September 2018. 2 Report Interim Contracts 2.1 Prior to expiry of the previous contracts, it was anticipated that the Council would use a National Collaborative Framework to be established by Scotland Excel to source its longer term requirements. However, the framework agreement was delayed and did not become live until 01/09/2021. The delay was due to a number of factors, particularly the disruptions caused by COVID19 with the reprioritisation of Scotland Excel activities. 2.2 With the Council’s contract due to expire before the new framework would be in place, it was essential that the Council could continue to utilise existing systems, so it became necessary to place interim contracts with the incumbent Contractor, CRB Cunninghams. The interim contracts provided a bridge between the previous contracts and being able to use the National Collaborative Framework to tender for longer term requirements. 2.3 The interim Contracts were awarded using a Negotiated Tendering Procedure (“NTP”), which was conducted in conformance with General Contract Standing Orders (“GCSOs”) and the relevant Procurement Regulations. The interim contracts were: • 28/05/2021 – 31/03/2022 for a value of £188,886 • 01/04/2022 – 30/09/2022 for a value of £105,423 Longer-term Contracts 2.4 To start the process of procuring a contract for the longer term requirements, a working group of officers from Facility Support Services (“FSS”) and other Service Areas of the Council was formed. This group were responsible for review of: technical specifications; trading processes; assessessment of market conditions and trends. 2.5 The working group identified that the newly established National Collabortive Framework managed by Scotland Excel (“SE”), did not provide an option to combine Page 239 of 274
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‘Cashless Catering Solution’ and ‘Online School Payments’ within a single mini- competition, meaning that the requirements would have to be procured separately as individual contracts. 2.6 Lot 2 of the new framework was “Cashless Catering Services and Equipment”; four contractors were appointed to that lot. 2.7 The Council conducted a mini-competition inviting all 4 of the Lot 2 contractors to tender for the Council’s ‘Cashless Catering Solution’ requirements over a 5 year contract period. Only 1 contractor, CRB Cunninghams, responded with a proposal. The feedback provided from one of the Contractors was they couldn’t tender due to constraints on capacity and couldn’t meet the project timescales. 2.8 The proposal received was evaluated as meeting the Councils requirements and therefore recommended for award in May 2022. 2.9 Executive Director approval was sought in accordance with General Contract Standing Orders 21.3.2. to expedite the contract award process. 2.10 Due to advancements and upgrades over the previous solution, the Contract will be phased in with a small number of schools prior to full roll-out; this will ensure successful implementation. 2.11 Officers from Asset & Procurement Solutions will be responsible for managing the Contract which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. 3 Measures of success 3.1 Effective roll-out and implementation of the solution 3.2 Robust Contract and Supplier Management 4 Supporting documentation 4.1 Not applicable James McKinstry Head of Asset & Procurement Solutions Page 240 of 274
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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? The report is not about a key strategic decision and not subject to the Fairer Scotland Duty. 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? The fixed requirements of the new solution will cost £777,078 with an option to consider further spend should the opportunity arise to provide add-ons that could advance the solution during the contract period. The costs associated with contract delivery will be contained within both the capital and revenue budget. 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? 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? Page 241 of 274
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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 ☐ If Yes, please provide a brief summary of the impact? This solution will move in line with the Council’s Digital and ICT strategy vision to move to cloud hosted solutions. 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? Page 242 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref: JB/LB Date 14/09/22 Contract Award for Supply & Distribution of Frozen Foods 2022-2026 From James McKinstry, Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone 07939 281102 Executive Summary Executive Director Approval was provided (in accordance with General Contracts Standing Orders 21.3.2) to expedite the contract award for the Supply & Distribution of Frozen Foods to Brake Bros Ltd. The Contract was awarded for an initial period of 4 years with an option to extend for a period of 2 months. The contract award value is £8,340,000 exclusive of VAT. Recommendations Finance and Resources Committee are advised of: (1) the award of a Contract to Brake Bros Ltd for a period of 4 years with option to extend for a period of 2 months (2) Scotland Excel Supply & Distribution of Frozen Foods (1120) framework was used as the procurement route. A direct award, conducted in conformance with the framework conditions, was made to Brake Bros Ltd following evaluation of all framework contractors. (3) the contract with Brake Bros Ltd represented the best value proposal available to the Council in terms of the combined evaluation of price and quality criteria. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (5) Grow and improve the sustainability and diversity of North Lanarkshire's economy AGENDA ITEM 23 Page 243 of 274
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1. Background 1.1. The National Framework for Frozen Foods was established by Scotland Excel on behalf of member local authorities and went live 1 April 2022. 1.2. Contractors appointed to the framework indicated their ‘ability to serve’ the various geographic areas within Scotland; 3 contractors indicated the ability to serve North Lanarkshire. 1.3. The framework supports Scottish Government policies: • Increased nursery hours to 1140, nursery pupils free school meals • Free school meals to all pupils P1-P5. • Roll out of free school meals to P6 & P7 circa 2023. 2. Report 2.1. Facility Support Services (“FSS”) collaborated with Scotland Excel to establish the latest Frozen Foods framework. Officers supported review of technical specifications, trading processes, assessment of market conditions and trends. 2.2. The resultant framework was used by the Council to contract the Supply & Distribution of Frozen Foods. 2.3. In conformance with the framework conditions, a benchmarking exercise was conducted using the terms and rates submitted by the 3 contractors appointed to the framework that had the ability to serve North Lanarkshire. 2.4. Evaluation was completed in April 2022 identifying Brake Bros Ltd as the best value Contractor for the Council’s requirements. Executive Director approval was sought in accordance with General Contract Standing Orders 21.3.2. to expedite the contract award process. 2.5. The contract commenced 08/08/2022. 2.6. Officers from FSS will be responsible for managing the Contract which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. 2.7. The Council will liaise with Brake Bros Ltd to secure Community Benefits in line with the framework conditions. Fair Work First 2.8. Within the framework evaluation, Fair Work First questions were evaluated. Equalities 2.9. The original procurement procedure to establish the framework was setup to exclude any tenderer where a complaint had been upheld after investigation by the Equality and Human Rights commission or its predecessors and a failure to take remedial action. Page 244 of 274
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3. Measures of success 3.1 Successful Supply and Distribution of Frozen Foods throughout North Lanarkshire. 3.2 Compliance with Nutritional Requirements for Food & Drink in Schools (Scotland) Regulations 2020. 4. Supporting documentation N/A James McKinstry Head of Asset & Procurement Solutions Page 245 of 274
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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? The report is not about a key strategic decision and not subject to the Fairer Scotland Duty. 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? The value of the Contract is £8,340,000.00 exclusive of VAT including any option to extend the Contract. The Council does not warrant or guarantee the amount of the annual or total value of the Contract, these amounts are indicative only. The costs associated with contract delivery will be contained within the revenue budget for FSS. Price Savings / Increases Prices have increased by 0.043% from previous tender. However due to global factors price increases are expected. These are managed through Scotland Excel. Rebate applies if spend is above £500,000 per annum of 0.5%. The rebate does not apply to the first £500,000 spend. Price Stability The prices will remain fixed for the first 6 months of the contract per the framework conditions. 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? Page 246 of 274
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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 ☒ 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? Brakes Bros are committed to the reduction of packaging and plastic. 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? Mechanisms exist in the contract to allow for any ad-hoc price increases to be reviewed due to external market factors. Page 247 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref: JB/LB Date 14/09/22 Contract Award for the Supply and Distribution of Milk 2022-2026 From James McKinstry, Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone 07939 281102 Executive Summary Executive Director Approval was provided (in accordance with General Contracts Standing Orders 21.3.2) to expedite the contract award for the Supply and Distribution of Milk (the ‘Contract’) to Muller UK and Ireland Group LLP T/A Muller Milk & Ingredients. The Contract was awarded for an initial period of 4 years with an option to extend for a period of 6 months. The contract award value is £2,431,836 exclusive of VAT. Recommendations Finance and Resources Committee are advised of: (1) the award of a Contract to Muller Milk & Ingredients for a period of 4 years with an option to extend for a period of 6 months (2) Scotland Excels Supply & Distribution of Milk (Lot 1: Ref: 05/21) was used as the procurement route. A direct award, in conformance with the framework conditions, was made to Muller Milk & Ingredients. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (15) Encourage the health and wellbeing of people through a range of social, cultural, and leisure activities AGENDA ITEM 24 Page 249 of 274
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1 Background 1.1 The National Framework for Milk was established by Scotland Excel on behalf of member local authorities and went live 1st March 2022. 1.2 The framework supports Scottish Government policies: • Increased nursery hours to 1140 and introduction of Scottish Milk (Aug 21) and Healthy Snack scheme where all nursery pupils receive a free milk. • Proposal from Scottish Government to introduce free milk to all Primary pupils within same timeframe as P6 & P7 free schools meals roll out. 1.3 In determining the Council requirements for Milk, a volume of 5% has been added to estimated usage to account for supplies for Culture and Leisure hospitality who were not included in previous years figures. 2 Report 2.1 Facility Support Services (“FSS”) collaborated with Scotland Excel to establish the latest Milk framework. Officers supported a review of technical specifications, trading processes, assessment of market conditions and trends. 2.2 The resultant framework was used by the Council to contract the Supply and Distribution of Milk. 2.3 In conformance with the framework conditions, a direct award procedure was used. 2.4 Evaluation was completed in March 2022. Executive Director approval was sought in accordance with General Contract Standing Orders 21.3.2. to expedite the contract award process. 2.5 The contract commenced 28/03/2022. 2.6 Officers from FSS will be responsible for managing the Contract which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. 2.7 The Council will liaise with Muller Milk & Ingredients to secure Community Benefits in line with the framework conditions. Fair Work First 2.8 Within the framework evaluation, Fair Work First questions were evaluated. Equalities 2.9 The original procurement procedure to establish the framework was setup to exclude any tenderer where a complaint had been upheld after investigation by the Equality and Human Rights commission or its predecessors and a failure to take remedial action. Page 250 of 274
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3 Measures of success • Healthier alternative available to school pupils. • Successful supply and distribution of milk throughout North Lanarkshire. • Compliance with Scottish Milk and Healthy Snack Scheme (Scotland) Regulation 2021. • Compliance with Nutritional Requirements for Food & Drink in Schools (Scotland) Regulations 2020. 4 Supporting documentation N/A James McKinstry Head of Asset & Procurement Solutions Page 251 of 274
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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? The report is not about a key strategic decision and not subject to the Fairer Scotland Duty. 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? The value of the Contract is £2,431,836.00 exclusive of VAT including any option to extend the Contract. The Council does not warrant or guarantee the amount of the annual or total value of the Contract, these amounts are indicative only. The costs associated with contract delivery will be contained within the revenue budget for FSS. Price Savings / Increases Prices have increased by 2.02% from previous tender and the overall discount has reduced by 1% to 14%. Rebate applies if spend breaches £400,000 per annum of 0.25%. The rebate does not apply to the first £400,000 spend. Price Stability The prices will remain fixed for the first 12 months of the contract per the framework conditions. 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? Page 252 of 274
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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 ☒ 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? The 2 litre milk cartons are recyclable and should be picked up through trade waste. 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? Mechanisms exist in the contract to allow for any ad-hoc price increases to be reviewed due to external market factors. Page 253 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref NLC-CPT-21-077 FW/LC Date 14/09/22 Contract Award for Provision of Occupational Health Services & Employee Assistance Programme From Fiona Whittaker E-mail whittakerf@northlan.gov.uk Telephone 07973 728628 Executive Summary This report is to advise Committee of the decision taken in accordance with condition 21.3.2 of the Council’s General Contract Standing Orders (GCSO’s) where in the absence of Committee, the provision of the Council’s Occupational Health Services & Employee Assistance Programme (the ‘Contract’) was approved on 09 May 2022 by the Deputy Chief Executive to be awarded to Health Management Limited. Following successful conclusion of the required standstill period, the Contract was formally awarded on 25 May 2022. The Contract is for an initial period of 36 months and commenced on 1 June 2022 and will initially expire on 31 May 2025. The Council reserves the right to extend the Contract for 2 additional 12-month periods until 31 May 2027. The value of the Contract shall not exceed Two Million, Seven Hundred and Seventy Five Thousand Pounds Sterling (£2,775,000) exclusive of VAT. Recommendations It is recommended that Committee acknowledge the award of the Contract in accordance with GCSO 21.3.2 to Health Management Limited at the maximum value of Two Million, Seven Hundred and Seventy Five Thousand Pounds Sterling (£2,775,000) exclusive of VAT. This recommendation follows the completion of an approved procurement procedure, where the Tender recommended for award has been evaluated as providing the most economically advantageous Tender in terms of cost and quality for the Council. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (23) Build a workforce for the future capable of delivering on our priorities and shared ambition AGENDA ITEM 25 Page 255 of 274
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1. Background 1.1 The Council has had both an Occupational Health Service (including a physiotherapy service) and Employee Counselling provision for well over 10 years and both services play a crucial part in supporting the Councils ambition of building a workforce for the future, specifically improving the mental health & wellbeing of our employees, and the associated ongoing reduction in sickness absence levels. 1.2 The Occupational Health Service is also essential in ensuring the Council can adhere to the requirements of Health & Safety legislation regarding Statutory Health Surveillance, as well as providing the mechanism for employees to be assessed and granted ill health retirement in accordance with the relevant pension legislation. 1.3 The requirements within the Contract were previously provided by two suppliers Health Management Limited for the Occupational Health Services (including physiotherapy) and Therapeutic Counselling Services for Employee Counselling. Both of which were due to expire on 31 May 2022. 1.4 In developing this Contract, it was determined that combining the requirements for Occupational Health Services and Employee Assistance Programme into one Contract, and therefore one overarching Supplier would not only provide best value for the Council but allow for a more cohesive and collaborative approach to improving the mental health and wellbeing of our employees. 1.5 The Contract will not only continue to provide a comprehensive range of occupational health services to the Council, it will also allow us to work collaboratively with the Supplier to develop innovative solutions to improve the overall health & wellbeing of our employees and assist managers in maximising attendance, with a particular focus on our top two reasons for absence (Mental Health and Musculoskeletal). 1.6 The Contract will also assist the Council in delivering on the key priorities of our Mental Health & Wellbeing Strategy and provide tailored tools and resources that will support the strategy as well as other related areas of activity such as Stress at Work, Mental Health Awareness, and Suicide Prevention. 2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, discuss trading processes, market conditions and trends, ways to maximise community benefits and sustainability and to agree the procurement strategy that would deliver maximum benefit for the Council via the Contract. 2.2 The initial estimated value of the Contract dictated that the procurement procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. 2.3 The procurement procedure was undertaken as a “Mini Competition” from the Crown Commercial Services (CCS) framework agreement for “Occupational Health, Employee Assistance Programmes and Eye Care Services” (RM6182), Lot 1 - Occupational Health and Employee Assistance Programmes, Fully Managed. Page 256 of 274
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2.4 To ensure capability and capacity, the 6 Suppliers on Lot 1 were issued with an “Expression of Interest”. Only 3 Suppliers expressed an interest in being invited to tender. 2.5 The Contract award was made based on the tenderer who submitted the most economically advantageous tender and the tender submitted by Health Management Limited has been evaluated as representing the most economically advantageous for this Contract. 2.7 Appendix 1 confirms the scoring achieved by each tenderer, further details of the procurement procedure is provided in Appendix 2 and the SME status and location of all tenderers is located within Appendix 3. 2.8 The value of the Contract shall not exceed Seven Hundred and Seventy Five Thousand Pounds Sterling (£2,775,000) exclusive of VAT including any option to extend the Contract. 2.9 As has been the case with previous contracts, the costs associated with contract delivery are initially incurred by Employee Relations, and then re-charged to the services as there is no centralised budget provision for this contract. Price Savings / Increases 2.10 The current Contract value for Occupational Health Services is £500,000 per year and £50,000 for Employee Counselling Services. The overall value of this Contract has been increased by £5,000 per year to reflect inflation costs, the additional requirements sought in the contract specification, and to take account of the increased usage levels, and therefore spend, on employee counselling over the last 3 years (the spend on Employee Counselling over 3 years from October 2019 to March 2022 was an average of £51,438 per year). Price Stability 2.11 Prices shall be fixed and unchangeable for the duration of the Contract, this includes any extension years however this Call Off Contract allows for an initial price review in line with the CCS Framework Agreement which is 2 years from the commencement of this Call Off Contract. Any review will conform to the same standards and principles as set within CCS Framework. Community Benefits/Social Value 2.12 The Council is committed to maximising the delivery of community benefits and the CCS Framework is also committed to maximising social value. The procurement included a social value requirement, this approach is designed to deliver local community benefits where possible. Page 257 of 274
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2.13 Within their tender, Health Management Limited advised that they have committed and/or will commit to the following areas to deliver social value within the Contract where possible: • COVID 19 recovery - Employment, retraining, and other opportunities e.g. Apprenticeships/supporting the physical and mental health of those affected by COVID 19; • Delivering a diverse Supply Chain - commit to using SMEs and underrepresented businesses/ensuring prompt payments through their supply chain; • Safe & Secure Supply Chains: Addressing Modern Slavery and exploitation in their supply chain; • Environmental Sustainability: Promoting sustainable production and consumption and an improvement in environmental quality in support of the Government’s 25 Year Environment Plan; • Fair, inclusive and ethical employment practices & skills development - promote inclusivity through quarterly or annual reviews; • Ethical behaviour standards - including subcontractors; • Wellbeing & Community Benefits - financial support to local causes/staff volunteering days; and • Measurement and reporting - annual service review report. 2.14 The community benefits delivered as part of the Contract potentially include the creation of jobs or apprenticeships. Fair Work First 2.15 Within their tender submission, Health Management Limited advised that they have committed and/or will commit to the following areas of the Scottish Governments “Fair Work First” initiative: • Appropriate channels for effective voice; • Investment in workforce development; • No inappropriate use of zero hours Contracts; • Action to tackle the gender pay gap and create a more diverse and inclusive workforce • Confirming within their tender submission that they are an Accredited Living Wage Employer and provide rates of pay to their staff above the area’s minimum living wage requirement. They also ensure all subcontractors comply with the Real Living Wage; and • Oppose the use of fire and rehire practices. Contract Strategy 2.16 Officers from People and Organisational Development will be responsible for managing the Contract which will be undertaken in accordance with the Councils agreed approach to Contract and Supplier Management. Page 258 of 274
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3. Measures of success The Contract will deliver the following outcomes: 3.1 The appointment of a Supplier who has the experience and capability to deliver a high quality occupational health and employee assistance service that will deliver the minimum delivery targets within the Contract which will help the Council build a workforce for the future, improving the mental health & wellbeing of the employees and maximise attendance. 3.2 The Contract award procedure is compliant with the procurement legislation and internal procedures and secures a range of community benefits/social value as well as a number of “Fair Work First” initiatives. 3.5 That the Contract performance is proactively managed against service level performance measurements. 4. Supporting documentation Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process Appendix 3 SME Status and Location of All Tenderers Fiona Whittaker Head of People & Organisational Development Page 259 of 274
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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? As part of the suppliers submission they had to demonstrate their commitment to Fair Work practices as outlined at 2.12 above, in particular they are an accredited real living wage employer and also ensure that any sub contactors comply with the real living wage. The successful supplier also demonstrated their commitment to social value including active recruitment of priority groups and community benefits of the Contract. 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? As detailed at 2.8 above the Contract value is (£2,775,000) exclusive of VAT including any option to extend the Contract. There is no potential saving on this Contract and costs will be met from service areas revenue budgets. 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? Page 260 of 274
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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? The CCS framework contained a number of call of schedules that required consideration by colleagues in Legal Services to ensure they complied with Scottish Legislation and Council Policy. These included Data Protection, Scots Law and TUPE. 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 ☐ If Yes, please provide a brief summary of the impact? The Contract will include the provision of a web based portal, hosted in the cloud. This portal will be used to process sensitive data and will be accessed by managers, HR and employees. As part of the tender requirements the suppliers were asked to complete the Scottish Governments Cyber Security Procurement Assessment and the outcome of this be assessed by colleagues in the Information Security team to ensure compliance with the Councils’ security requirements. 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 ☒ Page 261 of 274
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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? In the originating framework submissions suppliers’ environmental criteria were assessed in the technical envelope. Suppliers were required to provide evidence of their commitment to Environmental sustainability as part of the Social Value requirement. The successful supplier has committed to promoting sustainable production and consumption and an improvement in environmental quality in support of the Government’s 25 Year Environment Plan; including a commitment to recycling 95% of recyclable waste in NLC, and providing clinics close to transport links. 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? Communication in the form of email will be required to promote the new Physiotherapy provider and Employee Assistance Programme. This will be developed by Employee Relations and supported by colleagues in Corporate Communications. Information will also need to be published on myNL. 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 Risk Assessment for Procurement (RAP) was carried out as part of the Call-off strategy document and the Contract Risk Register completed. The overall risk outcome for this Contract was low. A possible risk is if the procurement fails the impact this will have on provision of service, albeit the impact on the Council overall would be low. Page 262 of 274
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Health Management Limited 84.60 Y Page 263 of 274
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Mini Competition Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 09 March 2022 Number of Companies Invited to Take Part: Expression of Interest were sent to the 6 Suppliers on Lot 1; 3 wished to be invited to take part. Tender Return Deadline: 20 April 2022 Number of Tenders Received: 1 Where Only One Tender Is Received, Why?: Resource Tenders Received from SME’s: 0 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 1 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 60% Price: 40% Evaluation Team: Officers from People and Organisational Development Anticipated Contract Start Date: 01 June 2022 Total Contract Period (Months): 36 + 12 + 12 Maximum Total Contract Value: £2,775,000 Page 264 of 274
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Appendix 3 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Health Management Limited Large Leicester, England Page 265 of 274
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref CG/JMcK Date 14/09/22 Contracts awarded below Committee approval threshold From Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone James McKinstry 07939 281102 Executive Summary This report notifies the Committee of the contracts awarded between 1 January 2022 to 30 June 2022. It sets out those contracts awarded with a value below the financial threshold requiring Committee approval. Recommendations The Finance and Resources Committee are: • advised of the Contracts awarded below Committee approval threshold between 1 January 2022 to 30 June 2022 as per the process within the Council’s General Contract Standing Orders. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement All ambition statements AGENDA ITEM 26 Page 267 of 274
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1. Background 2. Report 3. Measures of success 4. Supporting documentation 1.1 The Councils General Contract Standing Orders (the ‘GCSOs’) outline financial approval thresholds for contracts for goods, works and services. Contract awards above £500,000 for Supplies and Services and above £2,000,000 for Works require approval by the Committee. These contract awards are considered by the Committee on a case-by-case basis. 1.2 Where the value of a contract award is between £50,000 and £500,000 for Supplies and Services and between £500,000 and £2,000,000 for Works, GCSOs require that the Head of Asset and Procurement Solutions award these contracts on behalf of the appropriate Chief Officer. 1.3 The Head of Asset and Procurement Solutions is required to notify Committee on a regular basis of any such contracts awarded on behalf of Procuring Service Areas. 2.1 The GCSOs require that contracts in excess of £500,000 for supplies and services and £2,000,000 for works are approved, on a case-by-case basis, by the Committee before award. 2.2 The GCSOs require that contracts with a value above £50,000 but less than £500,000 for Supplies and Services and above £500,000 but less than £2,000,000 for Works are awarded by the Head of Asset and Procurement Solutions on behalf of the appropriate Chief Officer. 2.3 The contracts awarded by the Head of Asset and Procurement Solutions that are under the £500,000 Committee financial approval threshold for Supplies and Services and £2,000,000 for Works in the period from 1 January 2022 to 30 June 2022 are detailed in Appendix 1. 3.1 Contracts support the delivery of Council and service priorities. 3.2 Appointment of contractors who have suitable experience and capability to deliver the required supplies, services or works. 3.3 Contracts awarded by the Council are compliant with GCSOs and procurement legislation. 3.4 The Council’s Contract Register is kept updated by services and management information is comprehensive and accurate. 3.5 Best Value is both demonstrable and achieved. 4.1 Appendix 1 - Summary of contracts awarded. Page 268 of 274
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James McKinstry Head of Asset and Procurement Solutions Page 269 of 274
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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? Where Financial impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. The Council’s Procurement Strategy proposes methods of maximising the delivery of procurement benefits that could bring improved financial return to the Council and the areas wider economy. Certain benefits have a monetary value attached and these will be monitored on a project-by-project basis. 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? Where HR impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. Contracts awarded by the Council are compliant with GCSOs and procurement legislation. 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? Where Legal impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. Page 270 of 274
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Contracts awarded by the Council are compliant with GCSOs and procurement legislation. 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 ☒ 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? Sustainable procurement is one of the key objectives of the Council’s Procurement Strategy and will have a positive impact, including, embedding sustainable procurement as business as usual and incorporating community benefits into the Councils contracts. Supporting local businesses and SMEs through closer working with colleagues in the Council’s Enterprise department and by making our processes more streamlined and accessible. Where Environmental/Carbon impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. 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? Where Risk impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. Page 271 of 274
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Contract award procedures may be susceptible to legal challenge if they are not discharged in accordance with GCSO and procurement legislation. Page 272 of 274
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Contract Description Contract Award Date Contract Start Date Contract End Date Contract Extension Contract Value (inc extension) (£s) Pre- Procurement Estimate (£’s) Successful Tenderer Supplies Services Works No of Tenders Received Route* Repair & Maintenance of Catering Equipment - Lot 1 Gas Catering Equip Lot 2 Electrical Catering Equip Lot 3 Refrigeration Equip 08/01/2022 08/01/2022 30/09/2022 N/A £131,250.00 £131,250.00 Fast Fixx Catering Engineers Ltd Services 1 EXT* Repair & Maintenance of Building Cleaning Equipment 09/02/2022 01/02/2022 31/10/2026 N/A £260,000.00 £260,000.00 DMG Floorcare Ltd Services 3 FMC3 Provision & Adaptations 1140 hours Nursery Provision, Heathery Park FLC 08/04/2022 09/05/2022 10/10/2022 N/A £741,578.11 £900,000.00 McTear Contracts Limited Works 7 CO *Contract extension to incumbent provider delivering best value. Provision for extension made in original contract award reported to previous Committee. Key – Procurement Route CO - Contract Open Procedure CR - Contract Restricted Procedure FO - Framework Open Procedure FR - Framework Restricted Procedure FMCC - Mini Comp Council Framework APPENDIX 1 – SUMMARY OF BELOW THRESHOLD CONTRACT AWARDS Page 273 of 274
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FMC3 - Mini Comp 3rd Party Framework DAFC - Direct Award Council Framework DAF3 - Direct Award 3rd Party Framework DAH&SC - Direct Award Health & Social Care Related Services N - Negotiated Contract EXT - Extension to Contract/Framework Page 274 of 274