Revenue Budget Monitoring Report; Chief Executive's and Other Corporate Services 1 April - 22 July 2022 (Period 4)

North Lanarkshire Council · 14 September 2022
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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

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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

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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

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Elaine Kemp
Head of Financial Solutions

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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 ☐

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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.

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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

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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

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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

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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

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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

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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