Agenda pack
North Lanarkshire Council · 30 November 2022
Back to Finance and Resources Committee — 30 November 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 21 Nov 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 Meeting of the FINANCE AND RESOURCES COMMITTEE is to be held within the Council Chamber, Civic Centre, Motherwell on Wednesday, 30 November 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, A Bustard, J Cairns, A Campbell, 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 Keltie, J Linden, J Logue, H Loughran, F MacGregor, B McCluskey, B McCulloch, F McKay, R McKendrick, J McLaren, F McNally, M McPake, L Mitchell, L Roarty, D Robb, G Robinson, K Stevenson, A Stubbs, L Stubbs, R Sullivan, S Watson. Page 1 of 200
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Agenda (1) Declarations of Interest In Terms of the Ethical Standards In Public Life Etc. (Scotland) Act 2000 Minute (2) Minute of Meeting of the Joint Consultative Committee for Local Government Employees dated 26 October 2022 (page 7 - 10) Submit minute of meeting of the Joint Consultative Committee for Local Government Employees dated 26 October 2022 (copy herewith) Operational (3) PO48.1 - Active Participation Policy for North Lanarkshire Council (page 11 - 24) Submit report by the Head of Education (South) seeking approval for the Active Participation Policy which tries to reinforce the Council’s commitment to its volunteer workforce, formalising the support to be offered to ensure the volunteer relationship yields positive benefits for all (copy herewith) (4) Annual Freedom of Information Report Financial Year 2021/22 (page 25 - 34) Submit report by the Head of Legal and Democratic Solutions providing details of Freedom of Information and Environmental Information requests received by the Council during 2021/22 and providing further comparative and ancillary information (copy herewith) Finance (5) 2022 Review of Financial Regulations and Scheme of Financial Delegation (page 35 - 72) Submit report by the Head of Financial Solutions providing the outcome of the annual review of the Financial Regulations and Scheme of Financial Delegation (copy herewith) (6) Revenue and Benefits Update (page 73 - 80) Submit report by the Head of Financial Solutions providing an update on the performance within the Revenue and Benefits functions of Financial Solutions as at 30 September 2022 (copy herewith) Monitoring (7) Revenue Monitoring Report Council Summary 1 April 2022 to 18 September 2022 (page 81 - 92) 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 consolidating the budget monitoring position of all Services, highlighting and explaining major variances as per the Council’s approved Financial Regulations (copy herewith) Page 3 of 200
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2 (8) Revenue Budget Monitoring Report; Chief Executives and Other Corporate Services' 01.04.22 - 16.09.22 (Period 6) (page 93 - 104) Submit report by the Head of Financial Solutions summarising the Chief Executive and Other Corporate Services’ financial performance for the period 1 April 2022 to 19 September 2022 (Period 6) 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) (9) Chief Executive Service - Capital Monitoring Report 1 April to 16 September 2022 (Period 6) (page 105 - 110) 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 16 September 2022 (Period 6) (copy herewith) (10) Treasury Management Monitoring Report for Quarter Ended 30 September 2022 (page 111 - 122) Submit report by the Head of Financial Solutions informing of the quarterly Treasury Management activity for the period 1 July 2022 to 30 September 2022 and compliance with the mandatory treasury and prudential indicators (copy herewith) (11) Capital Programme 2022/23 Monitoring Report (page 123 - 132) 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 showing the 2022/23 projected outturn position and the resultant variances (copy herewith) (12) North Lanarkshire Properties LLP - Performance Indicators: 13 January 2022 - 27 July 2022 and Financial Performance as at 22 July 2022 (page 133 - 150) Submit report by the Head of Asset and Procurement Solutions providing details of North Lanarkshire Properties LLP’s performance from 13 January 2022 to 27 July 2022 and providing an update on significant events and service delivery highlights during the reporting period together with details of the financial performance for the period (copy herewith) Leases (13) Proposed Sub Station at Cliffvale Road, Chryston (page 151 - 156) Submit report by the Head of Asset and Procurement Solutions seeking approval for a lease for an electrical substation and associated servitude for cables, pedestrian and vehicular rights of access on land at Cliffvale Road, Chryston (copy herewith) (14) Proposed Sub Station at Netherton Road, Wishaw (page 157 - 162) Submit report by the Head of Asset and Procurement Solutions seeking approval for a lease for an electrical substation and associated servitude for cables, pedestrian and vehicular rights of access on land at Netherton Road, Wishaw (copy herewith) Page 4 of 200
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3 Property (15) Pavilion, Sports Pitch and Ancillary Ground at Deerdykes Place, Cumbernauld (page 163 - 170) Submit report by the Head of Asset & Procurement Solutions seeking consent to declare the pavilion, sports pitch and ancillary land at Deerdykes Place, Cumbernauld surplus to Council requirements (copy herewith) Contracts (16) Contract Award for BEMS (Building Energy Management System) Servicing & Maintenance 2023-2026 (page 171 - 180) Submit report by the Head of Asset and Procurement Solutions seeking approval for the award of a contract for Building Energy Management System Servicing and Maintenance 2023-2026 (copy herewith) (17) Contract Award Proposals for Repair and Maintenance of Catering Equipment (page 181 - 186) Submit report by the Head of Asset and Procurement Solutions seeking approval to award call-off contracts from the Scotland Excel Framework for Repair and Maintenance of Catering Equipment (copy herewith) (18) Contracts with Variations (page 187 - 192) Submit report by the Head of Asset and Procurement Solutions notifying the Committee of contracts completed between 1st April 2022 and 21st October 2022, where the expenditure levels have exceeded the contract award levels by greater than 5% or £25,000 (copy herewith) (19) Contracts Awarded Below Committee Approval Threshold (page 193 - 200) Submit report by the Head of Asset and Procurement Solutions notifying the Committee of the contracts awarded between 1 July 2022 to 30 September 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 8 & 9 of Part 1 of Schedule 7A of the Act." (20) Proposed Purchase of Houses at Torrance Park, Holytown (page 201 - 205) Submit report by the Head of Asset and Procurement Solutions seeking consent to acquire 6 terraced houses at Torrance Park, Holytown to support the Council’s new housing supply programme (copy herewith) Page 5 of 200
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 26 OCTOBER 2022 1 26 October 2022 at 10 am. A Meeting of the JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES PRESENT Councillor Boyd, Convener; Provost Duffy; Councillors Ballinger, Barclay, Currie and Jarvie. M. Quigley, Vice-Convener, Unison; A. Clark, J. Hannigan, W. Shearer, D. Watson, J. Watson, A. Whisker; D. Whelan and L. Stewart, GMB, and J. Rooney and V. Thomson, Unite (T & G). CHAIR Councillor Boyd (Convener) presided. IN ATTENDANCE The Head of People and Organisational Development; HR Business Partnership Manager; Employee Service Centre Manager; Occupational Safety and Wellbeing Manager; Senior Employee Relations Advisor, and Committee Officer. APOLOGIES Councillors Brannan-McVey, M. Coyle, Logue, MacGregor, McDade and Thomas; B. Rankin and H. Smith, GMB, and J. Baxter and G. Bryson, Unison. DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000 1. There were no declarations of interest. END OF YEAR ABSENCE STATISTICS 2021-22 2. There was submitted a report by the Head of People and Organisational Development (1) providing details of (a) the Council’s end of year absence position for 2021/22, excluding Covid-19 related absences, which were reported separately, and (b) Quarter 1 2022/23 – April to June 2022, and (2) detailing within the report, a summary of information and analysis regarding the year end outturn position at 2021/22; FTE days lost monthly performance and year end; top reasons for absence during 2021/22; Covid-19 sickness absence at year end 2021/22; year-to-date absence as at Quarter 1; FTE absence days lost as at Quarter 1, and actions taken to reduce sickness absence and improve health and wellbeing. Thereon, John Watson, Unison, intimated that a BBC Scotland report had advised that the uptake of the Covid and Flu booster from NHS and Social Care staff was very low, and currently stood at 18%, and enquired whether it would be possible to administer boosters in the workplace. The Senior Employee Relations Adviser advised that there was no capacity for the Council's occupational health provider to administer the boosters. The Head of People and Organisational Development intimated that she would raise the matter with Ross McGuffie, Chief Accountable Officer, Health and Social Care, and provide an update to the Trade AGENDA ITEM 2 Page 7 of 200
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 26 OCTOBER 2022 2 Union representatives. Victoria Thompson, Unite, (T & G) requested communication to school staff, particularly non-education staff, and asked if this could be done on an individual basis. The Head of People and Organisational Development intimated that future communications to schools would be in the form of All User e-mails, and, where applicable, information posters would be sent to each establishment. John Watson, Unison, advised that the Trade Union representatives would be happy to assist with the dissemination of this information. Donna Watson, Unison enquired whether the high absence statistics within the Enterprise and Communities Service were linked to hybrid working and smarter working applications. The Senior Employee Relations Adviser intimated that Employee Relations staff were currently looking at the data and once this had been completed, the Trade Union representatives would be notified accordingly. Decided: (1) that the sickness absence information for the year 2021/22, and for Quarter 1 2022/23 be noted; (2) that the Head of People and Organisational Development contact Ross McGuffie, Chief Accountable Officer, Health and Social Care to ascertain whether it would be possible to administer Covid and Flu boosters in the workplace; (3) that future communications to schools would be in the form of All User e-mails and, where applicable, information posters would be sent to each establishment, and (4) that the report be otherwise noted. COST OF LIVING CRISIS 3. With reference to paragraph 5 of the reconvened Policy and Strategy Committee held on 4 October 2022 when, inter alia, approval had been given (1) to increase the number of work locations available to all Council staff, and (2) for Council staff on the frontline, for these work locations to provide warm places for their break. The Employee Service Centre Manager advised that this support to Council staff would be introduced from 1 November 2022, and that there would be an interactive Google searchable map which would highlight the locations and the facilities, with some facilities having the provision of free tea and coffee. John Watson, Unison, advised there was an increasing number of employees with rent arrears and financial issues, and requested that the Financial Inclusion Team re-introduce face to face consultations. The Employee Service Centre Manager intimated that the Financial Inclusion Team currently undertook face to face consultations in various locations across the Council area. John Watson, Unison, enquired whether it would be possible for the Council to provide one hot meal to every school child per day. The Head of People and Organisational Development intimated that she would raise this matter with the Education Service, and an update would be provided to the Trade Union representatives. Decided: (1) that the Head of People and Organisational Development would ascertain from the Education Service whether it would be possible for the Council to provide one hot meal to every school Page 8 of 200
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 26 OCTOBER 2022 3 child per day, and an update on the discussion would be provided to the Trade Union representatives in due course, and (2) that the update be noted. EMPLOYEE MENTAL HEALTH AND WELLBEING UPDATE 4. There was submitted a report by the Head of People and Organisational Development (1) informing on proposals to further progress the Council’s Mental Health Strategy; (2) advising that it was the Council's intention to create (a) Service based groups to lead on mental health, and (b) a Council based group to progress the Council plans for mental health, and (3) highlighting within the report an up-to-date picture on activity being carried out on Employee Wellbeing. John Watson, Unison, enquired whether the high levels of absences in the Early Years Service were linked to work related stress, and as a result, leading to staff shortages. The Senior Employee Relations Adviser intimated that (1) discussions were ongoing with the Early Years Service and it was recognised that the model was still being integrated, and (2) there were retention issues with that particular service, and the Employee Relations Team would be providing support to Senior Managers where required. Thereon, Victoria Thompson, Unite (T & G) praised the positive recognition of the World Menopause Day, and requested that future events be extended to other locations across the Council area to enable more staff to attend. Decided: (1) that it was the intention to create (a) Service based groups to lead on mental health, and (b) a Council based group to progress the Council plans for Mental Health; (2) that options be explored to extend events linked to the World Menopause Day to other locations across the Council area to enable more staff to attend, and (3) that the report be otherwise noted. DISCIPLINARY, GRIEVANCE AND SUPPORTING ATTENDANCE POLICIES 5. The Senior Employee Relations Manager provided an overview and an update in respect of the Disciplinary, Grievance and Supporting Attendance policies and advised that (1) the Supporting Attendance Policy had been updated to include early intervention measures to ensure a tool kit, which included sample letters allowed a consistency of approach, and (2) Trade Union representatives had requested that bereavement leave and industrial injuries would not count towards the points trigger contained in the policy, and that it was her intention to discuss the request with Trade Union representatives in the coming weeks. The Senior Employee Relations Adviser acknowledged, in respect of the Disciplinary and Grievance policies, that there had been protracted delays with some investigations, which was due to a number of factors, including staffing issues, and the availability of Managers to undertake investigations. Donna Watson, Unison, advised that a number of cases could, and should, be dealt with in-house, which was acknowledged. John Watson, Unison, intimated that protracted investigations had an impact on Social Work staff and as the Scottish Social Services Council carried out an investigation at the same time, he requested Page 9 of 200
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 26 OCTOBER 2022 4 that in circumstances where an employee was suspended that this be reviewed, and that for all disciplinary and grievance meetings, employees be offered face to face meetings. The Senior Employee Relations Adviser agreed employees were offered face to face meetings in relation to disciplinary and grievance matters, and whilst the Employee Relations Team did not encourage the suspension of staff, this was at the discretion of each individual Service. She also advised that at the first investigation meeting, all Managers were encouraged to discuss and review the nature of the suspension whilst the investigation was ongoing. Willie Shearer, Unison suggested that it should be mandatory to review the suspension at the first interview stage, and that this discussion should also involve the Trade Union representatives, the Senior Employee Relations Adviser agreed that this would be looked at as part of the review. Decided: that the update be noted. I-TRENT OUTAGE 6. The Employee Service Centre Manager intimated that there had been a significant outage of the iTrent system on Friday, 11 September 2022 for a 36 hour period, and that there had been no access for Council staff during this period. She advised that in terms of contingency planning, staff had worked over that weekend to make sure that processes were in place to ensure that the payruns were on time. She further advised that the iTrent provider, Midland HR had carried out a review of the outage and were taking steps to mitigate further outages. Marie Quigley, Vice-Convener, enquired whether the iTrent system provided the Council with value for money. The Employee Service Centre Manager intimated that in terms of its functionality, the iTrent system did provide the Council with value for money. The Head of People and Organisational Development advised it was the intention to provide the Trade Union representatives with a copy of the report submitted to the Corporate Management Team on the Service Now system enhancements. Decided: (1) that Trade Union representatives would be provided with a copy of the report submitted to the Corporate Management Team on the Service Now system enhancements, and (2) that the update be noted. Page 10 of 200
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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 30/11/22 PO48.1 – Active Participation Policy for North Lanarkshire Council From Janie O’Neill, Head of Education (South) E-mail liddleh@northlan.gov.uk Telephone 07973726496 Executive Summary Before the impact of the pandemic, Volunteer Scotland estimated that over 48% of adults in Scotland – 2.17 million people – have participated in some form of formal or informal volunteering activity. This equates to 361 million hours of help, providing £5.5 billion to the Scottish economy. The impact of the pandemic increased volunteering activity to 74% in Scotland, and while these numbers have since diminished as people revert back to “normality” in their working lives, there remains increased participation in Scotland of around 59%. For many years, volunteers have undertaken a range of roles in North Lanarkshire Council, from parent helpers to sport coaches to event support. As we move more towards a model of engagement with our communities which reinforces the role of the public as an influencer and facilitator of service delivery, there is a growing interest from many people in volunteering to work alongside North Lanarkshire Council for the benefit of the whole community. The proposed policy seeks to reinforce the council’s commitment to our volunteer workforce, formalising the support we will offer to ensure the volunteer relationship yields positive benefits for all. Recommendations It is proposed that the Finance & Resources Committee: (1) Approve the proposed Active Participation Policy, attached at Appendix One. (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 3 Page 11 of 200
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1. Background 1.1 Development of the Active Participation Policy (Appendix One) was led by Active & Creative Communities with support from Service colleagues, People & Organisational Development and Legal Services. Feedback was received from the Trade Unions, as highlighted below, with supplementary feedback from Voluntary Action North Lanarkshire (VANL). 2. Report 2.1 People choose to get involved in volunteering for a range of reasons. Volunteering enables people to play an active role in their society and contribute to positive social change. Volunteering helps to break down social barriers and offer people an opportunity to socialise with people from different social and cultural backgrounds. For some, volunteering is a steppingstone in career development, for others simply an opportunity to give something back to their community. 2.2 The council already engages with a number of volunteers across various areas. For example, parent helpers at school events, Active Schools volunteers, one off support for community events, volunteers in libraries, museums and sports events. As our community becomes increasingly involved in the decisions around the delivery of our services, there is a growing interest from many areas from members of the public who would like to volunteer their time on a flexible basis. 2.3 While the Active Participation Policy is very clear that volunteers are not a replacement for paid staff, it is recognised that volunteering brings enormous benefits and it is critical that, as a key local engager of volunteers, that the council recognises and values the significant contribution that they make. 2.4 The Policy provides a clear statement on the following: • Our commitment to our volunteers • Induction/training • The volunteer agreement • Support and supervision • Problem solving • Disclosure Scotland • Child Protection • Expenses • Equality of opportunity 2.5 The policy was shared with trade unions – both teaching and single status, who welcomed this support to volunteers and their place within the organisation. 2.6 Additional feedback was received from Voluntary Action North Lanarkshire (VANL) – comments from VANL have been incorporated into the draft policy. 2.7 Subject to approval, the launch of the new policy will be managed alongside a range events to “recruit” volunteers across a range of service areas. Page 12 of 200
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3. Measures of success 3.1 A clear commitment to ensuring that volunteers enjoy the best possible experience whilst volunteering with us. The council seeks to ensure that volunteers feel fulfilled, valued and clear about the opportunities available to them. 4. Supporting Documentation Appendix 1 - Active Participation Volunteer Policy Janie O’Neill Head of Education (South) Page 13 of 200
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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 is a potential impact on service budgets from the payment of volunteer expenses. This has discussed with Financial Solutions. 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? Volunteers are not employees and are not subject to contractual terms and conditions, although it is recognised that volunteers will work alongside council employees. The policy was developed with the input of POD and shared with trade unions for comment. 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 14 of 200
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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? As appropriate, we will work with Corporate Communications to promote volunteering opportunities or highlight success. 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? Support to volunteers has been added to the ACC risk register and will be monitored and managed appropriately. Page 15 of 200
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NLC ACTIVE PARTICIPATION POLICY FOR VOLUNTEERING Page 16 of 200
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“Volunteering is a choice. A choice to give time or energy, a choice undertaken of one’s own free will and a choice not motivated for financial gain or for a wage or salary.” Scot Gov NLC’s Commitment to Volunteering Volunteers are trained, supported and empowered to fulfil a range of opportunities all with the common goal of improving the lives of residents across North Lanarkshire. We are committed to ensuring that volunteers enjoy the best possible experience whilst volunteering with us. We hope that volunteers feel fulfilled valued and clear about the opportunities available to them. Management will provide advice and guidance on best practice when working with volunteers and helps to ensure that volunteers are represented at every level. Each volunteer will have a volunteer supervisor allocated to them to ensure that they enjoy the best possible volunteering experience and as a source of information and guidance for the role This volunteer policy ensures fairness and consistency in our approach to volunteer recruitment, selection and supervision. It means that decisions are not made an ad-hoc and that all volunteers are treated fairly and equally. The policy is also important from the volunteers’ perspective as it ensures that they know how their volunteering contributes to the aims and objectives of the service in which they are based. Volunteers will know what they can expect from us and what we expect of them. Context & Definitions This policy is designed for volunteers who carry out an agreed opportunity within one of our venues within NLC. It outlines the principles on which the relationship between volunteers and organisation is based and provides basic information about volunteering with us. It is also to provide information and guidance to staff in the involvement and supervision of volunteers within their service area. The following definitions apply to opportunities described in this policy: • A Volunteer is anyone who, without payment, performs an activity at the direction of, and on behalf of, NLC • A Champion is the member of staff who supports and supervises the Volunteer • The council team will take responsibility for coordination of volunteer involving activity in their service area and will also be responsible for safeguarding • The Service Manager will take responsibility for the involvement of volunteers across all service areas. Role The role of Volunteers is to supplement, not replace staff or the duties normally done by them, and volunteers will only be asked to undertake tasks for which there is enough support / supervision. Page 17 of 200
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How do you become a volunteer NLC accepts volunteer applications from all communities. People volunteer for the widest possible reasons, bringing with them their experience, skills and dedication. All volunteers will be asked to complete a standard volunteer application form. Informal interviews are carried out to ensure that the person is suitable to become a volunteer. If a volunteer role involves working with or supporting children, young people, or vulnerable adults, that person will be required to undergo either a Disclosure Scotland check or obtain PVG membership (dependent on the role). Having a criminal record will not automatically prevent you from volunteering within the programme. The person responsible for safeguarding will discuss any convictions and a decision will be made as to whether or not you are suitable to volunteer. We have no upper age limit for volunteers. There is a minimum age restriction of 16 to ensure we do not put younger volunteers at unnecessary risk. Information will be provided regarding the service, the roles within and some of the work you will be involved in as a volunteer. However, what you will be doing can change from day to day as that’s what makes volunteering fun and interesting. Equal opportunities and diversity It is our policy to recruit the best people with the right skills, knowledge and experience and to provide equal opportunity for all. While recognising that some volunteer roles may require some necessary skills or ability, it is a key priority for the organisation not to discriminate against any person because of race, colour, national origin, gender, sexual orientation, religion or belief, marital status, disability or age. We will request you to provide one referee and we will ask them for a character reference as part of the volunteering application process. There is no obligation with volunteering and the volunteer arrangement can with withdrawn by either party at any time. Induction All Volunteers will receive a general induction covering housekeeping issues, health & safety, the nature and purpose of the organisation, and requirements of the volunteer activities. This will be tailored to the individual’s volunteering activity. Volunteer Agreement All Volunteers will be asked to sign an agreement between themselves and NLC. This is not a contract of employment but a list of responsibilities for both the volunteer and the volunteer’s Champion or supervisor and sets out both our commitment to and our expectations of volunteers. A copy of the signed agreement is then be uploaded to the Volunteer’s profile on our Volunteer Database by a member NLC staff. Page 18 of 200
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Support & Supervision NLC Volunteers will be directly supervised by one their designated volunteering supervisor In some services a Lead Volunteer will offer this support. Volunteers will receive regular support sessions and will also be invited to attend volunteer development sessions. The level of supervision and support will differ according to the volunteer role. NLC is committed to valuing Volunteer contributions and providing meaningful volunteering roles. Problem Solving The relationship between NLC and its volunteers is entirely voluntary and does not imply any contract. However, it is important that we are able to maintain our agreed standards of service to our customers. It is also important that volunteers enjoy their volunteering activity. All problems and complaints will be treated confidentially and will only be discussed with those directly involved in resolving them. We will deal with problems and complaints openly, fairly and quickly to protect volunteers and ensure minimal disruption to NLC services and customers. If a problem arises during the volunteer engagement, this is how it will be dealt with: We would discuss our concerns and if ongoing would remove you as a volunteer Training & Development Training will differ according to the volunteer role. We endeavor to provide full training so that volunteers feel happy and confident in their role. Besides core training for each role, there are ongoing eLearning modules, talks and training sessions for staff and volunteers to access should they wish. For some roles we expect volunteers to complete annual refresher training. The purpose of this is to ensure that all volunteers have up to date information and are providing a consistent service across Lanarkshire. NLC will discuss training and development needs appropriate to their role. Volunteer Responsibilities In order to meet our commitments to improve the lives of NL residents, we expect high standards from everyone involved in service delivery and support, whether they are paid staff or volunteers. In return we would ask volunteers to: • Always treat staff, customers and fellow volunteers with respect, consideration and appreciation • Act in a professional way when representing the organisation in public • Act in a way that doesn’t discriminate against or exclude anyone Page 19 of 200
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• Provide as much notice as possible if they are unable to fulfil their volunteering commitment, or if they no longer wish to be involved in the project • Adhere to the duties laid out in the volunteer role description • If volunteers don’t fully understand their role and responsibilities to ask a member of the project team for guidance Media Comment Any contact with volunteers from the media should be directed through to the NLC Corporate Communications Team. Social Media Volunteers must not mention that they volunteer for NLC on their own social media accounts Volunteers are expected to ensure that any information or opinions they share on social media platforms protect NLC’s ethos. Any offensive or derogatory comments about NLC, its staff or customers and service users via personal social networking pages are unacceptable and will terminate of the Volunteer Agreement. Identification Identity badges will be provided for Volunteers where appropriate for their role. These must be returned to NLC upon the termination of the Volunteer Agreement. Volunteers will be asked to provide us with an emergency contact, who we will contact in the unlikely event of an emergency. Health & Safety issues We are committed to looking after the health, safety and wellbeing of everyone who volunteers for us. Any activities carried out on a voluntary basis are covered by the same health and safety legislative requirements as those carried out by paid employees. It’s therefore important that volunteers understand and accept their personal responsibility towards promoting and maintaining health and safety standards in order to provide a safe working environment for all. It’s important that volunteers: • Carry out duties without endangering either their health and safety or that of colleagues, third parties and/or the general public • Comply with all relevant instructions and procedures relating to safety and follow guidance provided by NLC • Any adjustments or amendments required to allow you to carry out your role safely. • All tasks undertaken should comply with relevant Health and Safety procedures. Incident / Accident reporting Volunteers should always report any accident or incident to a member of staff to ensure that NLC procedures can be followed. Page 20 of 200
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Violence at work The Health and Safety definition of work related violence is:- “Any incident in which a person is abused, threatened or assaulted in circumstances relating to their work” Any incident of verbal and or physical abuse encountered by Volunteers while undertaking their role must be reported to a member of staff. Personal Safety All Volunteers are expected to be careful in relation to their own personal safety. Training and information on Personal Safety will be part of the induction training. Insurance Once the Volunteer agreement is signed, Volunteers are covered by NLC’s liability insurance policies including public and employer’s liability. This is on the basis that Volunteers are working under the appropriate staff member’s supervision and guidance and the tasks have been agreed. Disclosure Scotland: Membership of the Protection of Vulnerable Groups (PVG) Scheme Due to the nature of our work with young people and vulnerable adults, NLC may ask Volunteers to become members of the DSPS or have an update check done if already a member. NLC will cover the Volunteer expenses associated with joining the PVG scheme or having an update check done in volunteering posts where membership of the PVG scheme is required, Volunteers must not start their role until PVG scheme membership is confirmed by Disclosure Scotland. Child Protection Every volunteer will be briefed on child protection and what to do should you become concerned about a child’s welfare with a staff member who will follow the agreed Child Protection procedures. The work of Volunteers and staff within NLC is covered by the Company’s Child Protection policy and a copy should be downloaded and printed for each new Volunteer. This will be covered during the Volunteer Induction and a place on the company’s Child Protection training course should be organised, where appropriate, as soon as possible. Expenses Volunteers with NLC should not be out of pocket because of their volunteering. NLC is committed to offering inclusive opportunities for NL residents. Travel expenses, can with prior agreement with their volunteering supervisor, be accessed as this should not be a barrier to active participation. Tickets and receipts must be provided in order to reclaim this money. Page 21 of 200
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Equalities NLC will not to discriminate against any person because of race, colour, national origin, gender, sexual orientation, religion or belief, marital status, disability or age. This is a module covered in the Volunteering Core Training. NLC will try to do as much as it can to support people who may need extra help to be able to volunteer, or who may have additional requirements. Some examples might include a sign language interpreter for a deaf Volunteer, prayer room space and breast-feeding areas. Volunteers should let their supervisor know what they need so that they can do their best to help. Absence Should a Volunteer be unable to attend their volunteering opportunity on any day, they must let their lead volunteer, or a member of staff know as soon as possible so that they can arrange replacement cover. Ending a Volunteer Agreement Volunteers can stop volunteering at any time and should let their supervisor know as soon as possible. Identification badges and other equipment must be returned to a member of staff within 7days. Where a Volunteer was required to be a member of the PVG scheme the HR team must be informed that the Volunteer is no longer volunteering. Our volunteer roles are subject to review to ensure that the roles complement current work and support the needs of the organisation. Volunteer roles may be available for a defined period with the possibility of continuing them if mutually agreeable. We recognise that volunteers may wish to stop their role and that they can do so at any time. The reasons for standing down may be sought, usually through an exit interview, which will remain confidential. However, findings will help staff to reflect on and where necessary improve the volunteer experience. If appropriate the volunteer will be offered the opportunity to stay in touch with the project and the chance to be involved with NLC at another time in the future. If requested, a volunteer can obtain a written reference from their staff member after they have been involved as a volunteer for a minimum of four months. Page 22 of 200
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Circumstances may arise, such as illness or a personal or family event that mean it could be advisable to take a break from volunteering responsibilities. Please let the project team know if this arises and we will support you as best we can. When a volunteer leaves, we thank them for their contribution in our volunteer eNewsletter. Confidentiality Volunteers must maintain confidentiality during their time with the project. For this reason, volunteers are invited to sign a confidentiality agreement. This means that confidential information about people we support, volunteers, employees and our work is kept private, unless sharing this information is required by law. Any breach of confidentiality will be treated very seriously and in accordance with the volunteer problem solving procedure. In line with data protection rules, NLC Volunteers should not have access to client or customers’ details, unless where it is appropriate for their role. Where this is the case, Volunteers are expected to keep all such information confidential in line with data protection legislation. Any breach in this confidentiality will be treated very seriously and in line with our volunteer problem solving procedure Boundaries Clear boundaries are important for staff, volunteers and service users. They enable us to carry out a service according to agreed expectations and ensure that everyone receives the same quality of service. We realise that staff and volunteers may sometimes have contact with clients in a personal capacity – as friends, family or colleagues. In this situation, please take care avoid discussing the volunteering activity and to maintain confidentiality where appropriate. If you have any concerns at all, please speak to a member of staff as soon as possible. Page 23 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref NM/EH Date 30/11/22 Annual Freedom of Information Report Financial Year 2021/22 From Archie Aitken, Head of Legal and Democratic Solutions E-mail aitkena@northlan.gov.uk Telephone 07939 280102 Executive Summary This report provides details of Freedom of Information (FOI) and Environmental Information (EIR) requests received by the Council during 2021/22 and provides further comparative and ancillary information. Recommendations It is recommended that the Finance and Resources Committee review the report. The Plan for North Lanarkshire Priority Enhance participation, capacity, and empowerment across our communities Ambition statement (20) Improve the involvement of communities in the decisions, and development of services and supports, that affect them AGENDA ITEM 4 Page 25 of 200
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1. Background 1.1 The Freedom of Information (Scotland) Act 2002 and the Environmental Information (Scotland) Regulations 2004, both of which came into force in January 2005, provide rights to the public to ask for and be provided with recorded information held by public authorities. By way of further explanation, the Environmental Information (Scotland) Regulations 2004, sit alongside the FOI Act and govern access to environmental information such as planning information, contaminated land, emissions etc. Once a request is received, the Council has in most cases, 20 working days to provide the information asked for, or explain why it cannot be provided. If the Council does not respond, or the requester is unhappy with the response, the requester can ask for an internal review. If the requester is still dissatisfied following the internal review they can then appeal to the Scottish Information Commissioner. This report provides a breakdown of the requests, internal reviews and appeals to the Scottish Information Commissioner processed by the Council in 2021/22. 2. Report 2.1 In financial year 2021/22 North Lanarkshire Council received 1,412 requests for information. This consisted of 1,129 FOI requests and 283 EIR requests. 2.2 The 2021/22 total of 1,412 requests is a 13% increase on the 2020/21 total of 1,245 and a 8% decrease on the 2019/20 total of 1,536. As outlined in last year's report, the Covid pandemic caused a reduction in the typical number of requests received by the Council in a year. This year's total indicates that request volumes are returning to the levels seen before the pandemic. 2.3 Regarding the source of requests for information, most were recorded as being from "public and other" which are members of the public and those who have no identifiable affiliation to a particular organisation, group or company. 43% of requests were received in this category. The other significant categories of requesters was businesses and commercial enterprises (17%), media (12%), elected representatives (10%) and solicitors (8%). While this year's figures show an increase in requests received from the media and decreases in the numbers received from solicitors and elected representatives, these proportions are broadly similar to those seen in previous years. 2.4 25 requests for internal review of the original decision were received in 2021/22. This compares with 22 requests for review received in 2020/21 and reflects the increase in the number of requests received in 2021/22. 2.5 Of the 25 internal reviews, in 18 of the cases the original decision was either wholly or partially upheld or deemed compliant. In 3 cases the original decision was overturned and received a fresh decision at review. 2 reviews were undertaken because there was no response to the original request and 2 cases were withdrawn by the requester during the review process. 2.6 Following internal review, one case has been appealed by the requester to the Scottish Information Commissioner. The Commissioner is still investigating this appeal and the outcome will be provided in next year's report. 2.7 Of the 1,412 requests received in 2021/22, 34 were not fully progressed due to factors such as the clarification required to progress the request not being received or the requester withdrawing their request. Of the remaining 1,378 requests that were fully Page 26 of 200
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progressed, 1,358 requests (98.5%) were responded to within the statutory deadline. This compares with a compliance rate of 95.3% in 2020/21 and 97.8% in 2019/20. The 2021/22 compliance rate broken down by quarter is as follows:- Quarter 1 – 98.3% Quarter 2 – 98.2% Quarter 3 – 98.6% Quarter 4 – 99% 3. Measures of success 3.1 The Scottish Information Commissioner's self-assessment toolkit for public authorities on responding to requests on time, considers a response rate to requests of 96-100% as excellent, 85-95% as good, 80-84% as adequate and less than 80% as unsatisfactory. 4. Supporting documentation Appendix 1 – total number of requests received under either the Freedom of Information (Scotland) Act 2002 or the Environmental Information (Scotland) Regulations 2004, broken down by month. Appendix 2 – an indication of the category of applicant. Appendix 3 – details of cases submitted for internal review. Head of Legal and Democratic Solutions Page 27 of 200
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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 28 of 200
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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 29 of 200
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Appendix 1 NORTH LANARKSHIRE COUNCIL REQUESTS RECEIVED UNDER THE FREEDOM OF INFORMATION (SCOTLAND) ACT 2002/ENVIRONMENTAL INFORMATION (SCOTLAND) REGULATIONS 2004 Applications Received 2021/2022 Month Ending 31 March 2022 Apr May Jun Jul Aug Sep Oct Nov Dec 2021 Jan 2022 Feb Mar Total FOI Requests 71 111 107 96 94 84 100 124 57 85 104 96 1129 EIR Requests 20 27 24 25 26 21 29 42 10 22 17 20 283 TOTAL – 2021/2022 91 138 131 121 120 105 129 166 67 107 121 116 1412 Applications Received 2005/2006 – 2020/2021 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total TOTAL – 2020/2021 66 74 117 143 107 108 107 154 90 86 102 91 1245 TOTAL – 2019/2020 146 141 126 150 138 116 127 146 83 138 131 94 1536 TOTAL – 2018/2019 125 109 132 154 133 138 170 143 91 195 125 137 1652 TOTAL – 2017/2018 111 101 122 128 145 92 163 167 79 137 155 134 1534 TOTAL – 2016/2017 119 127 105 128 113 120 110 142 99 148 131 151 1493 TOTAL – 2015/2016 111 94 124 109 102 107 133 127 58 119 135 126 1345 TOTAL – 2014/2015 117 112 93 150 120 91 125 113 93 145 103 126 1388 TOTAL – 2013/2014 86 87 88 125 97 79 91 77 71 159 101 108 1169 TOTAL – 2012/2013 84 96 85 114 86 89 167 113 74 124 105 103 1240 TOTAL – 2011/2012 66 75 100 127 89 96 98 107 79 132 139 118 1226 TOTAL – 2010/2011 66 67 97 102 62 88 223 91 77 107 86 82 1148 TOTAL – 2009/2010 63 65 71 100 69 76 82 89 50 105 74 106 950 TOTAL – 2008/2009 76 65 43 93 43 89 103 67 49 92 75 74 869 TOTAL – 2007/2008 36 34 41 67 61 39 41 43 33 64 83 78 620 TOTAL – 2006/2007 35 77 39 38 41 34 61 57 45 64 58 56 605 TOTAL – 2005/2006 34 34 34 34 88 39 39 42 30 41 85 63 563 Page 30 of 200
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Appendix 2 FREEDOM OF INFORMATION (SCOTLAND) ACT 2002 ENVIRONMENTAL INFORMATION (SCOTLAND) REGULATIONS 2004 Requests by type of Requestor - 2021/2022 Media Solicitor (on behalf of client) Commercial /Private Enterprise Voluntary / Campaign Organisation Elected Representative (MP, MSP, MEP, Councillor) Trade Union Academic / Student Public & Other Total April 12 5 14 6 1 1 3 49 91 May 13 20 32 10 0 0 2 61 138 June 15 10 12 4 19 2 8 61 131 July 10 11 20 10 11 1 1 57 121 August 10 7 22 5 16 2 3 55 120 September 18 5 12 5 14 1 0 50 105 October 8 17 20 4 26 0 2 52 129 November 22 11 51 6 11 0 2 63 166 Dec – 21 6 4 5 5 6 5 4 32 67 Jan – 22 15 6 22 5 11 1 2 45 107 February 24 8 21 7 14 1 5 41 121 March 16 13 15 12 9 1 3 47 116 Total 169 117 246 79 138 15 35 613 1412 Page 31 of 200
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Requests by type of Requestor - 2014/2015 – 2020/2021 Media Solicitor (on behalf of client) Commercial /Private Enterprise Voluntary / Campaign Organisation Elected Representative (MP, MSP, MEP, Councillor) Trade Union Academic / Student Public & Other Total 2020/2021 119 143 212 62 165 8 19 517 1245 2019/2020 277 110 278 75 149 29 42 576 1536 2018/2019 334 137 277 93 147 34 27 603 1652 2017/2018 260 131 268 86 192 36 25 536 1534 2016/2017 227 181 223 68 187 24 19 564 1493 2015/2016 217 193 192 54 168 14 19 488 1345 2014/2015 264 164 211 56 115 17 28 533 1388 Page 32 of 200
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Appendix 3 Freedom Of Information (Scotland) Act 2002 Environmental Information (Scotland) Regulations 2004 2021/22 - Requests for Review of Original Decision. Received Expiry Response Subject Decision 13/05/2021 11/06/2021 11/06/2021 Council Tax Arrears Upheld (Partially) 01/06/2021 29/06/2021 23/06/2021 Registered Deaths Overturned 02/06/2021 30/06/2021 30/06/2021 Old Edinburgh Road Compliant with EIR 11/06/2021 09/07/2021 07/07/2021 Trees in Kilsyth Compliant with EIR 17/06/2021 15/07/2021 Withdrawn Core paths Withdrawn 24/06/2021 22/07/2021 20/07/2021 Mental Health Officers Upheld (Wholly) 28/07/2021 26/08/2021 26/08/2021 Certificate of lawfulness Compliant with EIR 02/08/2021 30/08/2021 30/08/2021 Millcroft Road Compliant with EIR 28/07/2021 26/08/2021 19/08/2021 Planning Applications Compliant with EIR 18/08/2021 15/09/2021 30/09/2021 Compulsory Purchase Order Upheld Wholly 09/09/2021 07/10/2021 Withdrawn Municipal Bank Withdrawn 09/09/2021 07/10/2021 07/10/2021 Print and Post Upheld (Partially) 13/10/2021 10/11/2021 22/11/2021 Library Services Overturned 04/11/2021 03/12/2021 03/12/2021 ASNA provision Overturned Page 33 of 200
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18/11/2021 17/12/2021 17/12/2021 Shotts Town Centre Compliant with EIR 09/12/2021 12/01/2022 05/01/2022 School Guidance Document Upheld (Wholly) 22/12/2021 25/01/2022 25/01/2022 Community Renewal Fund Upheld (Wholly) 31/12/2021 01/02/2022 01/02/2022 St. Enoch’s Clock Upheld (Wholly) 14/01/2022 11/02/2022 26/01/2022 Bullying 1st time decision 17/01/2022 14/02/2022 14/02/2022 Stepps Primary School Upheld (Wholly) 14/03/2022 11/04/2022 11/04/2022 Landlord Register Upheld (Wholly 22/03/2022 20/04/2022 20/04/2022 Allotments Upheld (Wholly) 07/04/2022 09/05/2022 09/05/2022 Clyde FC Upheld (Wholly) 10/04/2022 10/05/2022 10/05/2022 Covid Grants 1st time decision 17/04/2022 16/05/2022 16/05/2022 Clyde FC Upheld (Partially) Page 34 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/KS Date 30/11/22 2022 Review of Financial Regulations and Scheme of Financial Delegation From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 Executive Summary This report provides Committee with the outcome of the annual review of the Financial Regulations and Scheme of Financial Delegation. Full consideration continues to be given to the collective responsibility for the long-term financial sustainability of the Council and how the Council’s financial governance arrangements including the Financial Regulations and Scheme of Financial Delegation can further support this. A number of minor amendments have been made, which are summarised at Appendix 1, with a full amended version of the documents provided at appendix 2 and 3. Recommendations It is recommended that Finance and Resources Committee: (1) Acknowledge the revisions made to the Council’s Financial Regulations and Scheme of Financial Delegation. 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 5 Page 35 of 200
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1. Background 2. Report 2.1 The annual review ensures that both the Financial Regulations and Scheme of Financial Delegation remain appropriate for the effective stewardship of the Council’s financial resources. 3. Measures of success 3.1. The Council continues to operate within approved budgeted resources. 4. Supporting documents Elaine Kemp Head of Financial Solutions 1.1. This report advises Committee of the outcome of the annual review of the Council’s Financial Regulations and Scheme of Financial Delegation, noting the main amendments. 2.2 A number of minor amendments were made to the Financial Regulations and the Scheme of Financial Delegation which are summarised within appendix 1. Appendix 1 2022 Financial Regulations and Scheme of Financial Delegation Amendments Appendix 2 Financial Regulations Appendix 3 Scheme of Financial Delegation Page 36 of 200
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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 37 of 200
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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 38 of 200
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Appendix 1 2022 Financial Regulations and Scheme of Financial Delegation Amendments 2021 Financial Regulations 2022 Financial Regulations Section Section Rationale 2.4 The IJB approved its Financial Regulations on the 13th September 2016 2.4 As per the approved IJB Financial Regulations… Remove reference to when first approved and change wording to ensure consistency of context. 4.3 Enterprise and Growth Committee, Environment and Transportation Committee, and Finance and Resources Committee 4.3 Enterprise and Fair Work Committee, Environment and Climate Change Committee, Housing Committee, Regulatory Committee, and Finance and Resources Committee Update for relevant Committees 2021 Scheme of Financial Delegation 2022 Scheme of Financial Delegation Section Section Rationale Ne reference 2.8 Revenues and Benefits Under the remit of the Section 95 officer the Revenue and Benefits teams have the responsibility for the effective control of administering, processing and maintaining revenue and benefit transactions and systems. This includes for example Council Tax, Non Domestic Rates, Housing Benefits, Council Tax Reduction Scheme To recognise all aspect of financial control under S95 officer remit. Page 39 of 200
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NORTH LANARKSHIRE COUNCIL FINANCIAL REGULATIONS APPROVED – 23 May 2018 Updated May 2019 Updated November 2020 Updated November 2021 Updated November 2022 Page 40 of 200
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NORTH LANARKSHIRE COUNCIL FINANCIAL REGULATIONS INDEX Section Topic Page 1 Introduction 2 2 Responsibilities 2 3 Definitions 3 4 Responsibility for Financial Administration 5 5 Policies and Strategies 7 6 Capital Expenditure 8 7 Revenue Expenditure 10 8 Budgetary Control 11 9 Legality of Expenditure 13 10 Income 14 11 Treasury Management 15 12 Banking 15 13 Payroll 16 14 Payment of Creditors 17 15 Contracts 19 16 Security 20 17 Stores and Inventories 20 18 Insurance 21 19 Accounting Procedures 22 20 Cash Advances – General and Imprest 23 21 Audit 24 22 Members’ Remuneration and Expenses 24 23 Financial Regulations 25 Page 41 of 200
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1. INTRODUCTION 1.1 Financial Regulations are an integral part of the Council’s framework of internal financial controls, which are designed to ensure the effective stewardship of North Lanarkshire Council funds. Compliance with these regulations will ensure that public money is safeguarded and properly accounted for, and all Council financial transactions undertaken in a manner which demonstrates openness, transparency and integrity. 1.2 The Financial Regulations forms a key part of the overarching Financial Strategy and the corporate governance arrangements of the Council. 1.3 Any breach or non-compliance with these Regulations must be reported immediately to the Head of Financial Solutions who may consult the Chief Executive and/or the appropriate Service Chief Officer in order to determine the proper action to be taken. Failure to comply with the Financial Regulations may result in an investigation and disciplinary action under the Council’s Discipline Policy 2. RESPONSIBILITIES 2.1 Financial Regulations are the responsibility of all Council employees and should be distributed annually by the Chief Executive, Chief Officer/Head of Service and the Head of Financial Solutions, highlighting the importance of complying with the regulations and the Council’s proper financial management. It is the responsibility of each Chief Officer/Head of Service to ensure all staff have read and understood the Financial Regulations. 2.2 In addition, Executive Directors/Heads of Service have a responsibility to consult with the Section 95 officer on any matter affecting their Service which is liable to materially impact the finances of the Council before making any commitment. In fulfilling this responsibility, Executive Directors must consider spending within the context of the Council’s overall financial position. Appropriate mutual discussions and collective decisions at Corporate Management Team (CMT) level are required to manage the overall financial stewardship of the organisation, and should not focus on an individual Service, Division or Function’s financial requirements. 2.3 All officers employed by the Council must ensure that all financial transactions are Intra Vires and in line with these regulations. 2.4 Adult Health and Social Care – as a result of the Health and Social Care Integration legislation which came into force on the 1st April 2016, the Council is jointly responsible with the NHS for the Adult Health and Social Care of service users within North Lanarkshire. The legislation saw the creation of the North Lanarkshire Integration Joint Board (IJB), responsible for directing health and social care expenditure within the partnership area. North Lanarkshire Integrated Joint Board Members include North Lanarkshire councillors, senior officers in NHS Lanarkshire and stakeholder representatives from across the health and social care sector. As per the approved IJB Financial Regulations, the Council Section 95 Officer retains the duty to monitor and regulate the financial performance of the Council’s share of available Board resources. As such, the Section 95 Officer retains the right to comment and make recommendations to the Board on the suitability of the IJB’s Financial Regulations. 2.5 Priority will be given to the IJB’s Financial Regulations first and foremost however where a situation arises that is not covered within those regulations, employees/members shall refer to the Council’s Financial Regulations, or where required, obtain guidance from the Council’s Section 95 Officer to ensure proper financial management. 2.6 At the time of update, consultation is ongoing in respect of Social Care reforms over the implementation of recommendations made by the Independent Review of Adult Social Care and the establishment of a National Care Service. The impact arising from the outcome of the consultation exercise and any subsequent reforms implemented will be considered as Page 42 of 200
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part of future reviews of the Financial Regulations however until such time paragraph 2.5 remains relevant. 2.7 Arm’s Length External Organisations (ALEOs) are used as an alternative way of delivering vital council services. This delivery involves the use of public funds therefore the Council has a statutory duty to demonstrate openness, transparency and accountability regarding the monies spent through these Arms-length bodies. These financial regulations are not applicable to arms-length bodies, which are separate legal entities with responsibility for their own stewardship and governance arrangements. However, to enable the Council to satisfy its public accountability duties, services must adhere to the Corporate Guidance on Arms-length bodies, and must ensure all Council relationships with such bodies properly comply with the principles contained within the Code of Guidance on Following the Public Pound. It is expected that due cognisance is given to the Council’s approved Financial Regulations by respective ALEO Board/Management Teams, however it is their responsibility to ensure proper financial management and the development of appropriate Financial Regulations. The Section 95 Officer reserves the right to comment on the appropriateness of ALEO financial management and regulations to the respective Board/Management Team, as well as the Enterprise and Communities Committee. 2.8 Community Boards and Participatory Budgeting. A Framework for Working with Communities was approved by Policy and Strategy Committee in March 2020 which included the establishment of 9 Community Boards. It is intended that these boards will drive and support locality engagement and planning which will partly be achieved through optimising funding and resource opportunities to deliver and improve services in addition to supporting the development and implementation of Participatory Budgeting (PB). This will allow the community a voice in the decision making process of how money is spent. These financial regulations set out remain applicable in these arrangements. 2.9 Where potential ambiguity in the Financial Regulations arises, advice should be sought from the Council’s Section 95 Officer. The Head of Financial Solutions will provide advice to ensure the aims of the guidance is met and that the Council is in full compliance with financial management requirements. 3. DEFINITIONS 3.1 The following expressions are used throughout the Regulations with the following meanings: 3.1.1 Chief Officer The Chief Executive, Chief Officer or Head of Service, regardless of specific title. This includes the Chief Officer’s/Head of Service authorised substitute(s), except in cases where it is stated that substitutes may not act. A Chief Officer/Head of Service may have different authorised substitutes, depending on the topic. 3.1.2 As delegated Any grant of delegated powers by the Council to such persons as may be specified from time to time. 3.1.3 By the Section 95 Officer By the Section 95 Officer, or under arrangements made by/ or approved by the Section 95 Officer, the Chief Executive, an Chief Officer/Head of Service or an external agency. 3.1.4 Records All or any records, forms, books, documents, certificates, tickets or correspondence, whether on paper, on film, on computer file or any other medium. Page 43 of 200
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3.1.5 Authorised signatories The Chief Executive and each Chief Officer/Head of Service may authorise officers within his service to commit the Council to obtaining goods, services and other items in respect of which expenditure may competently be incurred. These officers are known as Authorised Signatories. The Section 95 Officer will require the Chief Executive and Chief Officer/Head of Service to confirm their lists annually. The list shall include specimen signatures, and where appropriate, specimen initials, persons whose authorisation is applied by some means other than manuscript, and the manner of their personal authorisation, and also specify the items which each officer is authorised to sign, and the financial limit on any one item. Any proposed amendment of the list must be notified immediately to the Section 95 Officer. 3.1.6 Emergency An actual or potential emergency or disaster involving or likely to involve any or all of the following: i) Danger to life or health ii) Serious damage to or destruction of property iii) Major financial penalties. 3.1.7 Service In addition to each recognised Council Service, “Service” includes those limited companies or other organisations which are wholly owned or controlled by the Council, and which have adopted the Council’s financial regulations for their own use. 3.1.8 Capital Expenditure Expenditure on the acquisition, creation or enhancement of fixed assets, provided it yields benefit to the Council for more than one year (reference CIPFA/LASAAC Code of Practice on Local Authority Accounting and Scottish Government Finance Circular No. 3/2018). It is the responsibility of officers to ensure expenditure in the capital programme is ‘capital’ as per proper accounting practices required by the Local Government Scotland Act 2003. The Council has set a de-minimis, for materiality, whereby no individual item of less than £10,000 will be regarded as Capital. However due notice should be given to groups of items which fall below the de-minimis as a single unit but should collectively be capitalised i.e. laptop refresh programme. It should be noted that items above the de-minimis are not necessarily capital and officers should refer to relevant Financial Solutions staff for guidance. 3.1.9 Revenue Expenditure All expenditure which is not Capital. 3.1.10 Virement A transfer of money between budget headings. Authorisation levels are outlined in the Financial Regulations. Virements shall not be used to: • Mask overspend and underspend issues; • Apply underspends and over-recoveries of income without approval by the SCDG and Committee in line with authorisation levels; or • Reverse any decision made by the Council during its budget process unless subsequently approved by Council. Page 44 of 200
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3.1.11 Contracts As defined within the General Contract Standing Orders (effective from 1 January 2020) 3.1.12 Statutory Officer Officers designated for particular statutory purposes as set out in legislation: • Section 95 Officer, Head of Financial Solutions • Chief Social Worker, Head of Children, Families & Justice Social Work Services; and • Monitoring Officer, Head of Legal and Democratic Solutions 3.1.13 Recovery Plan Robust, affordable and sustainable plans to mitigate known financials burdens either, on a one-off or a recurring basis, presented to and agree by Corporate Management Team. 4. RESPONSIBILITY FOR FINANCIAL ADMINISTRATION 4.1 Council Ultimate authority over decision-making. 4.2 Finance and Resources Committee responsible for financial decision-making. 4.3 Enterprise and Fair Work Committee, Environment and Climate Change Committee, Housing Committee, Regulatory Committee, and Finance and Resources Committee Joint responsibility depending on service nature for the monitoring of specific ALEOs’ financial, service and operational performance including risk management and to ensure effective governance is in place within the ALEOs. 4.4 Section 95 Officer (Head of Financial Solutions) To administer the financial affairs of the authority, as the proper officer for the purposes of Section 95 of the Local Government (Scotland) Act 1973, and in accordance with part 7 of the Local Government in Scotland Act 2003. To ensure the Council has put in place suitable arrangements to ensure compliance with the CIPFA Statement on the role of the Chief Financial Officer (CFO) in Local Government. To ensure the Council’s financial management arrangements are in line with the Council’s strategic policies, plans and objectives. To ensure all staff involved in financial management across the Council maintain professional accounting standards and comply with expected standards of conduct and integrity. To provide financial advice to the Council and its Committees, and monitor overall compliance with these Regulations. To obtain assurance regarding the financial governance arrangements of subsidiary companies, associate companies and partnerships which the Council is able to control or influence. Page 45 of 200
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4.5 Chief Officer/Head of Service To assist the Council and the Chief Executive at all times in achieving Best Value in the conduct of their service activities. Chief Officer’s/Head of Service’s are fully accountable for the financial performance of their service area, and must manage, monitor and control Service budgets in line with the Code of Practice on Local Authority Accounting and agreed timescales, ensuring compliance with Contract Standing Orders and Financial Regulations regarding their service activities. Except in an emergency, or as Delegated, to consult with the Section 95 Officer or relevant Business Finance Manager on any matter affecting their services which is liable to affect materially the finances of the Council before making any commitment, and before reporting thereon to a Committee. To maintain effective stewardship of their Services’ funds, ensuring that all financial transactions undertaken are within their powers. To ensure appropriate management of risks associated with the delivery of effective financial management inherent in providing their service activities. To ensure the relevant Business Finance Manager (or their assigned deputy) is part of the Service’s Senior Management Team (SMT) and provide them with the opportunity to attend all meetings. To liaise with the Head of Financial Solutions or the nominated representative, regarding any appointments to or changes to the financial management establishment supporting their service activity. 4.6 Statutory Officers The Financial Regulations should be strictly adhered to ensuring all expenditure incurred is within approved budgets. These regulations still apply when making professional judgements while carrying out a role. However in the instance that a statutory officer’s judgement may lead to a breach in the Financial Regulations, the Section 95 Officer must be notified in the first instance and the level of breach reported to CMT thereafter with a Service Recovery plan to manage the additional spend. Page 46 of 200
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4.7 Partner Organisations Reflecting the nature of partnership arrangements and the drive towards Shared Services and possibly pooled budgets, elements of Council budgets may be delegated or shared with external organisations. Following approval from the Head of Financial Solutions, the Chief Executive or Chief Officer can delegate budget to an external organisation, providing the Section 95 Officer is satisfied that governance arrangements and responsibilities are clearly defined and that appropriate management controls regarding usage and monitoring of budget are in place. Executive Directors/Head of Service’s must ensure that all relevant staff are aware of and adhere to the Corporate Guidance on Arms-length, thereby ensuring the Council’s relationships with ALEOs comply with the principles contained within the Code of Guidance on Following the Public Pound. This responsibility includes ensuring that the Council is clear as to the purpose of any financial support provided, that the funding is used in a manner consistent with good governance principles and that the Council can demonstrate that the organisation’s achievements provide best value for that funding support. 4.8 All Officers and employees All officers employed by the Council, or by an organisation. Associated with the Council, whether or not their financial statements are consolidated in the Group Accounts of North Lanarkshire Council, must ensure that all financial transactions are Intra Vires and are in line with Financial Regulations. 5. POLICY AND STRATEGIES There are some areas that require more detailed guidance or procedures. Although the specific detail is not included within these Financial Regulations, the expectation is that officers and Elected Members adhere to the requirements of these additional documents. 5.1 Financial Strategy Financial Strategy sets out the overarching framework for financial governance, planning and management. The aim is to ensure robust, affordable, sustainable and best value financial plans are developed to support decision making and prioritise the use of available resources. 5.2 Revenue Resources Budget Strategy The key principles of the Revenue Resources Budget Strategy were approved by Policy and Strategy Committee in June 2019 and have been subject to annual review. The strategy sets out the Council’s approach to budgeting and the identification of future saving ensuring the financial sustainability of the Council and the safeguarding of public funds. The strategy is underpinned by the financial regulations and its principles should be considered in conjunction with these where appropriate. Page 47 of 200
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5.3 Reserves Policy In January 2020, Policy and Strategy Committee approved the Council’s Reserves Policy which sets out the types of reserves held by the Council and their purpose; establishes procedures for governance of the reserves; outlines the circumstances for the utilisation of reserve balances; and outlines the approach taken to determine the appropriate reserve levels held by the Council. 5.4 Capital Strategy The Prudential Code for Capital Finance in Local Authorities and good financial management practice requires Councils to produce a Capital Strategy. The Capital Strategy ensures the Council takes capital expenditure and investment decisions in line with the Council’s priorities, service objectives and properly takes account of stewardship, value for money, prudence, sustainability and affordability. 5.5 Treasury Management Strategy The Treasury Management in the Public Services Code of Practice requires the Council to produce and report Treasury Management policies, practices and activities on a regular and ongoing basis. This encompasses the preparation and approval of an Annual Strategic Plan, which defines the arrangements for managing the Treasury Management function. The Strategy covers the Council’s debt and investment projections; expected movement in interest rates; borrowing and investment strategies; Treasury Management performance indicators; and sets specific limits for treasury management activities. 6. CAPITAL EXPENDITURE 6.1 Capital Programmes The Head of Financial Solutions and the Chief Officer (Enterprise and Communities) will co-ordinate the Composite and Housing Capital Programmes respectively in accordance with any Government requirements as to timescale and the format, for presentation to the Policy and Strategy Committee, and Council thereafter for approval. 6.2 Capital Estimates Once the programmes are approved, and provided that ministers do not use the powers available to them under s36 of the Local Government in Scotland Act 2003 to control capital expenditure limits, the figures for the first year of the Programmes become the official Capital Estimates for that year, reflecting committed projects and approved new projects. They will also include any preliminary expenses, design costs and land purchases, which are necessary prerequisites to projects included in year two of the Programmes. Page 48 of 200
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6.3 Preparation With respect to the Composite Programme, the Strategic Capital Delivery Group (SCDG) shall provide all the information, in accordance with a timetable set by, and in a form determined by, the Head of Financial Solutions when developing the Council’s Capital Programme. Development of the programme is devolved to the Strategic Capital Delivery Group, in line with its Terms of Reference. Approval of the programme is required from the Council’s Section 95 Officer prior to consideration by Council. 6.4 Right to proceed After Council approval, subject to any further consents required, and subject to all other requirements of the Financial Regulations and Contract Standing Orders, Chief Officer’s/Head of Service’s may proceed with projects contained in the Estimates, unless: (i) the tender cost or revised estimate exceeds the provision in the estimate, or (ii) the nature of the project has changed substantially from that originally envisaged. In either case, approval must be sought from the SCDG, and will be granted only if the expenditure can be contained within the overall programme. Approval for adjustments in respect of the above must be reported to individual Service Committees and the Policy & Strategy Committee, subject to the approved limits set out in the SCDG Terms of Reference. 6.5 Acceleration Projects contained within years 2-5 of the Plan can be introduced into the current year if they can be contained within the total resources only on the recommendation of the SCDG, in line with their Terms of Reference. 6.6 Additional Projects Additional projects that are over and above the allocations approved in the Council’s five year capital programme require specific consent in the first instance from the Head of Financial Solutions and approval by the Policy and Strategy Committee. 6.6 Duty regarding Approvals The spending Chief Officer/Head of Service (the Budget Holder) must ensure that all necessary approvals have been obtained before commencing any project. 6.7 Revenue Effects Each Chief Officer/Head of Service, when making proposals on any capital project shall include a report, agreed with the Head of Financial Solutions, showing details of the revenue consequences (costs or savings) in the current and subsequent years, ensuring they are managed. 6.8 Deviations Each Chief Officer/Head of Service (Budget Holder) must draw to the attention of the SCDG and the Spending Committee, in consultation with the Section 95 Officer any circumstance that may lead to a significant deviation from the approved Capital Estimates, either in expenditure or in income. In this context significant means £100,000 or 5%, whichever is the higher, of the Policy & Resources approved programme expenditure. The SCDG should authorise action designed to rectify the situation, and if they are unable to do so, the Head of Financial Solutions must report the facts to the Spending Committee and the Finance and Resources Committee for consideration. Page 49 of 200
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6.9 Agents Where an agent of any service, including a contractor, Council- controlled Company or Trust, identifies the probability of a significant deviation occurring, the agent is required to report the fact, including reasons for this deviation, to the appropriate Chief Officer/Head of Service (Budget Holder) immediately. 7. REVENUE EXPENDITURE 7.1 Policy Guidelines The Section 95 Officer will advise the Chief Executive and Executive Directors/Heads of Service of the Guidelines and timetable for preparing the annual revenue budget estimates. 7.2 Budget Estimates The Head of Financial Solutions will co-ordinate the preparation of the annual Estimates of Income and Expenditure in accordance with the Guidelines, ensuring compliance with the Council’s priorities and targets within that planning time frame. 7.3 Preparation Chief Officer/Head of Service will supply all necessary information to the Head of Financial Solutions, in accordance with a timetable set by and in a form determined by the Section 95 Officer, regarding the requirements of their services. Where relevant, such information will be supported by equality impact assessments. 7.4 Authorisation The Revenue Budget Estimates will be submitted to Council for approval, together with recommendations as to the levels of Council Tax for the coming year. 7.5 Right to Proceed After the Revenue Budget Estimates are approved, Chief Officer/Head of Service may proceed to incur that expenditure, subject to the contractual provisions of the Standing Orders and Financial Regulations and any other legal requirements in respect of contracts, except where any item has been specifically identified as requiring further Committee consideration and approval. 7.6 Further approval Any proposals requiring Committee approval must include a report from the Chief Executive or spending Chief Officer/Head of Service, agreed by the Head of Financial Solutions, stating whether there is adequate provision in the Revenue Budget Estimates or not. 7.7 Additional Items Expenditure not included in, or in excess of, the Revenue Budget Estimates, or income reduced from that included in the Revenue Budget Estimates, may be authorised in the following circumstances only:- (i) Where a Supplementary Estimate/budget has been approved by both the Spending Committee and Finance and Resources Committee, on receipt of a report from the Head of Financial Solutions including details of any implications for policy or future years' spending; or (ii) In an emergency, where powers have been specifically delegated to officers for Building Control or Environmental Health (Food Safety) purposes, or with the approval of the Spending Committee and the Finance and Resources Committee as soon as possible thereafter, or (iii) Where adjustments to the budget have been approved in accordance with the provisions of these Regulations. Page 50 of 200
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7.8 Contingency Sum Where a Contingency Sum has been included in the Revenue Estimates, draws on the Contingency must be authorised by the Finance and Resource Committee, on the recommendation of the Section 95 Officer, except in an emergency situation when they may be authorised by the Head of Financial Solutions in consultation with the Convenor of the Finance and Resources Committee. The facts are to be reported to the Finance and Resources Committee as soon as possible thereafter. 8. BUDGETARY CONTROL 8.1 Information The Section 95 Officer will establish a reporting template which each Chief Officer/Head of Service shall use to compile both their Capital and Revenue Budget Monitoring reports. The reports will detail actual and projected expenditure and income against year to date and annual budgets. The contents of the report must be confirmed by the Head of Financial Solutions and submitted to the appropriate committee at each cycle. The Section 95 Officer will also present an overall summary of the council’s budgetary position regarding Capital and Revenue expenditure to the Finance and Resources Committee. 8.2 Control Each Chief Officer/Head of Service must ensure that sums provided in the budget, whether revenue or capital, are not exceeded, and that all expenditure conforms to requirements of the Standing Orders and of these Regulations. No Chief Officer/Head of Service or official may incur expenditure unless: (a) It is a capital expense approved in line with the SCDG Terms of Reference; (b) It is a revenue expense approved as part of the revenue budget under 5.4 of these Regulations; (c) The expense has been authorised as supplementary through one of the mechanisms outlined in paragraph 5.7 of these Regulations. Any official proposing to incur revenue or capital spending which is not included within approved budgets must seek approval for a supplementary budget before incurring such expenditure. 8.3 Deviations Each Chief Officer/Head of Service (Budget Holder) must draw to the attention of the Spending Committee, in consultation with the Head of Financial Solutions, any circumstance that may lead to a significant deviation from the agreed subjective headings used for budget monitoring purposes, either in expenditure or in income. In this context significant means £100,000 or 5%, whichever is the higher, at divisional summary subjective account code level. Services must clearly outline the action required to rectify significant deviations and where relevant, must also highlight the impact this has on other budget headings. The Committee must authorise action designed to rectify the matter, and if they are unable to do so the Section 95 Officer must report the facts to the Finance and Resource Committee for consideration. Page 51 of 200
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8.4 Virement An Chief Officer/Head of Service may transfer money between approved Capital & Revenue expenditure budgets, but must ensure the nature of such transfers is clearly outlined in monitoring and committee reports, where applicable. The rules for virement of Revenue budgets apply to transfers at divisional summary subjective account code level e.g. Environment & Estates division property costs. The rules are as follows: 8.4a Revenue Virement Must comply with the definition of a virement as per Section 3.1.10. i) Up to £50,000 in consultation & agreement with both the Chief Officer/Head of Service and Section 95 Officer; ii) £50,001-£100,000 following consultation & agreement with the appropriate Convenor and thereafter with the agreement of the Section 95 Officer; iii) Over £100,000 on the recommendation of the Spending Committee, and following notification to the Section 95 Officer, either in the form of a specific report to that Committee or requested within Budget Monitoring reports; iv) For Educational Establishments under Devolved School Management, the notes for virement are laid down in their schemes of delegation; v) The Chief Officer (Enterprise and Communities) may transfer either £100,000 or up to 20% (whichever is higher) of the total Repairs Budget between Repairs Budget headings without recourse to Committee; vi) Regardless of purpose, budget transfers which impact a future year or years require the approval of the Policy and Strategy Committee. 8.4b Capital Virement Capital Virements will be made in line with the SCDG Terms of Reference, in conjunction with the Head of Financial Solutions. Where this ceases to be the case, capital virements should match the requirements outlined in Section 8.4a (Revenue Virement). Virements will be classed as those reported at project level, as outlined in the Councils Composite 5 Year Capital Programme approved at Policy and Strategy Committee on the 21st March 2019 (updated for Committee annually). 8.5 Inter-Service Recharges (Revenue) Clear documentary justification should be available to the budget holder to support and substantiate any service recharges. Inter-Service Recharges should not be treated as External Income and should utilise a relevant Internal Recharge code. Where required, guidance should be sought from Financial Solutions staff. 8.6 Inter-Service Recharges (Capital) Clear documentary justification should be available to the budget holder to support and substantiate any service recharges. Chief Officer/Head of Service must also ensure that any recharges to capital are in line with capital guidance/code as outlined in these Financial Regulations. Where Inter-service recharges to capital do not meet the definition of capital these must be funded through revenue sources. Page 52 of 200
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9. LEGALITY OF EXPENDITURE 9.1 Legality of Expenditure Heads of Service, and ultimately Chief Officer’s and the Chief Executive must ensure that any proposed expenditure is within the legal powers of the Council. If in doubt, the Monitoring Officer – Head of Legal and Democratic Solutions – should be consulted. 10. INCOME 10.1 Setting of Charges With the exception of charges imposed by Law and those which are deemed the responsibility of the Council’s Charitable Trusts, all alterations to charges require advance approval of the relevant Committee. 10.2 Review of Charges All Executive Directors/Head of Services shall review their service charges annually in the light of inflation and report the outcome of the review to the Chief Executive and the Section 95 Officer. In line with the principles of the Revenue Budget Strategy, where possible Executive Directors/Heads of Service should aim for full cost recovery. 10.3 Debtors Control Each Chief Officer/Head of Service shall make arrangements for the issue and follow-up of accounts and the collection, control and banking of all monies due to the Council. 10.4 Notification of Income Executive Directors/Head of Services will provide prompt and full particulars of charges made for work, supplies, goods or services, or other sums due to the Council to, and in a form approved by, the Head of Financial Solutions, to ensure the proper recording and prompt collection by him, or under arrangements approved by him, of all monies due. 10.5 Write-offs Any proposal to write off sums due to the Council requires the following approvals: (i) For individual sums of less than £500, the relevant Chief Officer/Head of Service and the Head of Financial Solutions, with an annual report to the Finance and Resources Committee for information; (ii) For individual sums of £500 or over, the Spending Committee and the Finance and Resources Committee. 10.6 Money Collection All monies collected in any service must be recorded and deposited, without delay, with the Section 95 Officer or in a Bank in accordance with his instructions. No deductions may be made from income without the specific authorisation of the Head of Financial Solutions. 10.7 Personal cheques Personal cheques will not be cashed out of monies held on behalf of the Council. Page 53 of 200
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10.8 Grants Where appropriate, the Section 95 Officer shall be advised of all relevant information necessary to allow the submission of all applications for Grants due to the Council. Where applications are submitted directly by the Chief Executive, Executive Directors or Heads of Services, they shall be responsible for their timeous and accurate submission. Where Executive Directors/Head of Services, and those with devolved responsibility, are responsible for grant submissions, they are required to advise and provide evidence to relevant Financial Solutions staff of the grant application. 10.9 Controlled Stationery All receipt forms, books, tickets and other such items shall be ordered and supplied to services by the Section 95 Officer, or by arrangements approved by them. 10.10 Transfer of Money All such transfers between staff will be evidenced in the records of the Services concerned by the signature of the receiving officer. 11. TREASURY MANAGEMENT 11.1 CIPFA Code of Practice The Section 95 Officer – Head of Financial Solutions - to ensure the Council adopts the key clauses within Section 5 of CIPFA’s “Treasury Management in the Public Services” Code of Practice (the Code) and most up to date revisions to the Code. 11.2 Treasury Management Policy Statement and Practices The Section 95 Officer must arrange for the creation and maintenance of a Treasury Management Policy Statement and Treasury Management Practices, which identify the manner in which the Council shall manage and control its Treasury Management activities. 11.3 Prudential Code for Capital Finance in Local Authorities The Head of Financial Solutions is responsible for establishing a control framework that complies with the requirements of the Prudential Code for Capital Finance in Local Authorities, and for regular monitoring of prudential indicators during the financial year. 11.4 Investment Strategy In accordance with the Local Government Investments (Scotland) Regulations 2010, the Section 95 Officer must arrange for the creation and maintenance of an Annual Investment Strategy and Annual Investment Report. Council funds shall be invested in accordance with the approved annual investment strategy and shall be held in the name of the Council. 11.5 Borrowing and Investment All borrowing, investment and leasing including that related to Trust and Charitable Funds, will be under the control of the Head of Financial Solutions in accordance with the provisions of the aforementioned Code of Practice on Treasury Management, Prudential Code for Capital Finance in Local Authorities, Treasury Policy Statement and Treasury Management Practices, all of which have been adopted by the Council. Page 54 of 200
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11.6 Leasing Services must obtain the approval of the Head of Financial Solutions before entering into any leasing agreements (operational and finance) with a finance company. Leases affected must be in the Council’s name. Leases must be reviewed with Financial Solutions staff and reported to the Capital, Treasury and Systems team to ensure compliance with proper accounting practices (IFRS 16). Where guidance is required, Financial Solutions staff and the Capital, Treasury and Systems team will provide support. 12. BANKING 12.1 Bank Accounts All arrangements with the Council's Bankers shall be made by the Head of Financial Solutions, who shall be authorised to open such bank accounts as he may consider necessary. 12.2 Cheques All cheques required to support the banking arrangements of Council-operated Services shall be ordered only on the authority of the Section 95 Officer, who shall make proper arrangements for their safe custody. 12.3 Signatures With reference to 12.2 above, all cheques, excluding those required by Charitable Trusts, shall be signed by the Head of Financial Solutions; manual cheques may be signed by other responsible persons, per the Councils bank mandate, specified by the Section 95 Officer, on her behalf. 12.4 Petty cash There are separate arrangements for the operation of petty cash Accounts. These are described in Regulation 20. 12.5 Credit Cards Any requests for a corporate credit card must be made in accordance with the Councils Corporate Credit Card Policy with all aspects of the policy properly adhered to. 12.6 Purchase Cards Purchase cards will be issued only where there is a clear business benefit or need. Their issue will be approved by service managers and the cardholders will need to agree to the terms of their use. Restrictions on their use will normally be applied and will be coded into the card itself. Misuse of purchase cards will result in action under the Council’s disciplinary procedures. The Head of Financial Solutions is responsible for overseeing the issue and use of cards as well as associated VAT compliance. 12.7 Direct Debits/Standing Orders All direct debit instructions and standing orders approved for payment by Services must be authorised by the Head of Financial Solutions. 12.8 Banking Contract All services provided by the bank in relation to the management of the Council’s bank accounts and the issue of cheques shall be renewed periodically by a competitive tendering process. 13. PAYROLL 13.1 Payment Payment of all wages, salaries, travelling and subsistence expenses and other Payroll items will be made by the Head of Page 55 of 200
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People and Organisational Development, with delegated authority from the Section 95 officer. 13.2 Information The Chief Executive, Executive Directors, Head of Services or other officer where appropriate, will provide to the Section 95 officer, delegated to the Head of People and Organisational Development, in accordance with a timetable laid down by, and in a form approved by him, information regarding appointments, resignations, dismissals, promotions, increments, pay awards, hours worked, overtime, sickness, travel and subsistence and any other items affecting the remuneration of employees, or essential to maintain records regarding Tax, National Insurance and Superannuation. 13.3 Certification All payroll information must be supplied by Authorised Signatories. Signatories are certifying that the information is accurate and that any overtime and expenses relate directly and exclusively to the Council's business. 13.4 Payment method The normal method of payment shall be by the Bankers Automated Clearing System (BACS). Where this is not possible, payment will be made by cheque or under special circumstances by prior agreement with the Capital, Treasury and Systems team using online banking payment services e.g. faster payment, CHAPS. 14. PAYMENT OF CREDITORS In conjunction with Internal Audit, a number of interim arrangements have been put in place to allow the continuation of payments to creditors whilst a large proportion of staff work from home. The key principles set out in these regulations stand however where a working from home arrangement is in place this will be displayed in italics. 14.1 Ordering Chief Officers/Head of Services are responsible for ordering goods and / or services for their Services, which shall be carried out in accordance with the Council’s contract standing orders, approved procurement strategy and guidance notes. 14.2 Electronic Purchase Order Processing Where available, Services shall use PECOS or other approved electronic procurement systems for all purchases. Services using electronic procurement systems must use electronic order forms for all purchases, which require to be authorised electronically by an authorised signatory. Where an urgent order is made by letter or on the telephone, an electronic order form must subsequently be sent in confirmation within a day of the request 14.3 Manual Purchase Order Processing Manual purchase orders should only be used where Services do not have access to PECOS or other approved electronic procurement systems. Official Order Forms will be used for all purchases and must be signed by Authorised Signatories. Where an urgent order is made by letter or on the telephone, an official order form must subsequently be sent in confirmation within a day of the request. Page 56 of 200
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14.4 Certification Executive Directors/Head of Services will arrange for the certification of invoices and other equivalent payment vouchers received from suppliers, contractors, or generated from Service systems, and remit them, physically or electronically, to the Head of Financial Solutions for payment. In making these arrangements, Executive Directors/Head of Services must have regard to the need for Internal Check (19.3 below). Authorised Signatories are certifying that: • the goods or services included are as ordered, • the payment is properly due under the terms of any contract, and that the prices and all arithmetical details are correct, and • the expenditure has been properly incurred. In addition, they are also confirming that they have delegated authority to certify payment to the value of each individual invoice or equivalent payment voucher enclosed in the batch. The Head of Financial Solutions is responsible for overseeing the compliance of creditors payments certification with any issues reported to the Section 95 Officer where appropriate. Arrangements have been put in place to facilitate the authorisation of invoices whilst staff work from home. This process requires dual authorisation through email with the following certification statement: Certification Statement I confirm that I am certifying payment of the enclosed invoices or other equivalent payment vouchers in accordance with North Lanarkshire Council’s current Financial Regulations and that: (a) The goods or services included are as ordered; (b) The payment is properly due under the terms of any contract and that the prices and all arithmetic details are correct; and (c) The expenditure has been properly incurred. I also confirm that I have delegated authority to certify payment to the value of each individual invoice or equivalent payment voucher enclosed in this batch. Total Count of invoices or other equivalent payment vouchers being certified: ____________ Total Gross Value of invoices or other equivalent payment vouchers being certified: ___________ Certified by: _______________________ (print name) _______________ (date) Page 57 of 200
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14.5 Certification of Cheque request forms All payment / cheque requests must be made using the Standard Template and must be authorised by two different authorised signatories (i.e. officers with the appropriate level of delegated authority per the authorised signatory list). As with invoice certification, authorisation by email is acceptable. Once the Standard Template has been completed, it should be saved as a PDF (so that it cannot be amended) and sent to the first authorised signatory, with the email subject stating ‘Request for payment / cheque’. The first authorised signatory should check the form and be satisfied that it should be processed for payment. Once satisfied that the form should be processed for payment, the first authorised signatory should forward the email to the second authorised signatory for checking and agreement. Once agreed, the second authorised signatory should then forward the email to CreditorsDPMailbox@northlan.gov.uk for processing, ensuring that the email trail clearly indicates the dual authorisation process. As this is the authorisation process, any payment / cheque requests which do not follow this process and clearly show the dual authorisation process will not be processed for payment and will be returned to the sender’s mailbox. 14.6 Payment All invoices and other equivalent payment documents, with the exception of petty cash items, may only be paid by the Section 95 Officer who may carry out such additional checks as deemed necessary. Petty cash items are covered by Regulation 18. 14.7 Alterations In the unlikely event that a voucher has to be altered, this should be done by an Authorised Signatory, clearly, by stroking out and correcting in ink. Correcting fluid must not be used. Invoices must not be altered by staff, but must be sent back to the supplier for correction. 14.8 Payment method The normal method of payment shall be by the Bankers Automated Clearing System (BACS). Where this is not possible, payment will be made by cheque following written confirmation with the Creditors Section or under special circumstances by prior agreement with the Capital, Treasury and Systems team using online banking payment services e.g. faster payment, CHAPS. Note that arrangements for same day faster payments must be notified to the Capital, Treasury and Systems Team before 10am on the required day. Page 58 of 200
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14.9 Payment Timing Every effort will be made to adhere to any payment timetable stipulated in contracts (including Small, Medium Enterprises currently on 20-day terms), or otherwise within 30 days. Where special circumstances exist for a contract’s payment terms, these must be notified in writing to the Creditors Section by the appropriate authorised signatory. Chief Officer/Head of Service should pass certified invoices to Finance within 20 days of receipt. Financial Solutions should process properly certified invoices within 5 days of receipt. 15. CONTRACTS 15.1 Register Executive Directors/Head of Services shall maintain records of all contracts relevant to their Services and payments made. The Head of Financial Solutions shall have access to all such records. 15.2 Payments (re contracts) Payment Certificates to Contractors may be signed only by Authorised Signatories. 15.3 Variations Subject to the conditions of contract in each case, every variation shall be authorised in writing by the appropriate Chief Officer/Head of Service (Budget Holder) or private professional or consultant as appropriate, or by other officer nominated by them, or, in special circumstances, by other officer approved by the Section 95 Officer. 15.4 Significant Variations Any variations where the outturn/expected costs exceed the tendered contract price by the higher of £25,000 or 5%, or where the outputs/outcomes achieved by the expenditure differ significantly from those originally envisaged, shall be reported by the appropriate Chief Officer/Head of Service (Budget Holder) to the relevant Spending Committee at the earliest opportunity. 15.5 Time Delay Where completion is delayed beyond the agreed timescale, the Chief Officer/Head of Service (Budget Holder) shall, in consultation with the Monitoring Officer – Head of Legal and Democratic Solutions - take appropriate action in regard to liquidate ascertained or other damages. Page 59 of 200
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16. SECURITY 16.1 Responsibility All Executive Directors/Head of Services are responsible for maintaining proper security over all buildings, stores, furniture, equipment, cash, etc., under their control. Executive Directors/Head of Services will consult the Section 95 Officer when advice may be required, concerning existing or new situations. 16.2 Cash Holdings Executive Directors/Head of Service will agree limits for cash holdings on their premises with the Section 95 Officer. These may not be exceeded without the prior written agreement of the Head of Financial Solutions. 16.3 Key holders Chief Officer/Head of Service must ensure that keys for safes and similar receptacles for cash or other valuables are securely controlled by persons specified as key holders. Each Chief Officer/Head of Service will keep a register of key holders. Any loss of such keys must be reported to the Head of Financial Solutions immediately upon discovery of loss. 16.4 Controlled Stationery The Head of Financial Solutions shall ensure that secure arrangements are in place for the custody and issue of pre-printed/ pre-signed cheques, and any other stocks of stock certificates, bonds, and any other valuable financial documents. 16.5 Retention of Documents Executive Directors/Head of services are responsible for the safekeeping and control of all documents in their services. The Section 95 Officer in consultation with the Monitoring Officer will specify the retention period for documents of a financial nature, which is prescribed within the NLC Retention Schedule. 16.6 Data Protection Personal data (both manual and computerised) held by the Council may not be used for any purposes other than those which are registered by the Council under the Data Protection Act 1998. The Council has a duty to respond timeously, within 40 days, to requests for information (“Subject Access Requests”), provided that the conditions contained in the Data Protection Act 1998 are met. The Service receiving the request should deal with the subject access request and maintain a record of information provided in respect of all subject access requests, in accordance with the Council’s Data Protection Policy. The above applies with reference to subsequent amendments to the Data Protection Act 1998 to take account of General Data Protection Regulations. 17. STORES AND INVENTORIES 17.1 Storekeeping Executive Directors/Head of Services are responsible for the safe keeping and control of all stocks and stores in their Services, and must arrange for regular stocktaking. 17.2 Adjustments Where an Chief Officer/Head of Service has had to make adjustment for stock surpluses or deficiencies, a report must be submitted to the Spending Committee and the Finance and Resource Committee specifying the reasons for the adjustments and the amounts thereof. Page 60 of 200
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17.3 Disposal of equipment An Chief Officer/Head of Service who has equipment, furniture or stock surplus to requirements (excluding ICT equipment) should first offer it to other Executive Directors/Head of Services. Thereafter, Executive Directors/Head of Services wishing to dispose of surplus items shall do so by sale advertised in the press, either by sealed offer or by public auction. Any proposals for a different method of disposal must be approved by the Section 95 Officer. Assets which are obsolete or beyond economic repair, and whose individual estimated value at the date of disposal is less than £1,500, can be disposed of by the Service without prior approval by the Section 95 Officer provided that the disposal of each item has been authorised by the relevant Chief Officer or Head of Service. 17.4 Disposal of ICT equipment Where an Chief Officer/Head of Service has ICT equipment that is surplus to requirements, obsolete or beyond economic repair, their nominee shall contact the IT Service Desk to ensure that all data is safely removed and the equipment disposed of in accordance with the Council’s IT policies. 17.5 Stock Levels Stocks and stores must not be in excess of normal requirements. Executive Directors/Head of Services wishing to make exceptional arrangements must seek the authority of the appropriate spending Committee. 17.6 Inventories Executive Directors/Head of Services must maintain inventories, in a form specified by or approved by the Head of Financial Solutions and must have them checked annually. 17.7 Removal Council property, excluding portable devices (e.g. Laptops), may not be removed from Council premises without the written authority of the appropriate Chief Officer or Head of Service. Line management approval must be obtained prior to removing portable devices from Council premises. 17.8 Valuations Executive Directors/Head of Services shall supply to the Head of Financial Solutions annually, certified and dated copies of stock lists and inventories required for the closing of the Accounts. 18. INSURANCE 18.1 Insurance Where insurance is the chosen option, the Head of Business Solutions shall effect and maintain suitable cover, and will put in place suitable arrangements for the negotiation of any claims, in consultation with other Executive Directors/Head of Services. 18.2 New Risks The Chief Executive and Executive Directors or other Head of Services must immediately notify the Head of Business Solutions of: i) any new Service activities or practices which could have a significant effect on the potential liability of the Council to other parties so as to allow him to effect insurance arrangements; or ii) any changes to the Council’s asset portfolio which will affect the level of cover required for Council owned property i.e. significant additions or deletions of premises, so that the Page 61 of 200
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Head of Business Solutions can change the level of cover in place. 18.3 Insurance Risk Management The Head of Business Solutions shall, at not less than five-yearly intervals, submit to the Finance and Resources Committee an insurance risk management and funding strategy. 18.4 Losses The Chief Executive and Executive Directors/Head of Services must immediately notify the Section 95 Officer of any losses or other events likely to lead to a claim. The Head of Business Solutions is responsible for taking appropriate action after liaising with the Chief Executive, Executive Directors/Head of Service and the Section 95 Officer. 19. ACCOUNTING PROCEDURES 19.1 Systems and Records The Head of Financial Solutions shall specify or approve all accounting systems and records of the Council, wherever kept. 19.2 Principles All systems will be designed in accordance with best practice, and will incorporate internal controls to ensure that, as far as possible:- (i) all income of the Council is promptly and properly recorded and collected, (ii) all expenditure of the Council is properly incurred, authorised and duly paid, (iii) all cash, stores and other assets of the Council are safely kept and controlled, (iv) due cognisance of the Section 95 Officer’s requirements in respect of reconciliations, audit trails and control, and (v) Financial Solutions should be directly involved at the tender, implementation and post-implementation review of new internal control and recording systems to ensure they comply with the above requirements. 19.3 Internal check As far as possible, segregation of duties should occur among employees so that:- (i) the calculation, recording or certification of sums due to or by the Council should not be in the hands of one person, (ii) those who calculate, record or certify sums due to or by the Council should not be involved in the eventual receipt or payment of those sums, and (iii) those who examine or check cash transactions should not be directly involved in those transactions (iv) all checking and authorisation undertaken by officers must be evidenced by initials or signature. Where segregation of duties is not possible, direct line managers should be made aware and the associated risk included on the relevant Risk Register. Page 62 of 200
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19.4 Provision of Information Chief Officer/Head of Service will supply to the Section 95 Officer, in accordance with his timetable, all information necessary, including that relating to ALEOs, to enable him to close the Council's Accounts by the statutory date each year. The statutory date is currently 30 June. Final Audited Accounts of Council Subsidiary Companies should also be made available to allow the Council to comply with the statutory deadline of publishing those accounts on the Council website by 31 October each year as per the Local Authority Accounts (Scotland) Regulations 2014. 19.5 Statutory Accounts Audited Annual Accounts Deadlines The Head of Financial Solutions requires the attendance and signature of the following members and officers by the statutory completion date: Head of Financial Solutions; Chief Executive; and Council Leader. The Annual Accounts require the signature of the Leader of the Council and the Chief Executive directly following the approval at the Council’s Audit and Scrutiny Panel. Approval of the accounts for signature should be no later than 30 September unless special/temporary legislation states otherwise. 20. CASH ADVANCES – GENERAL AND IMPREST 20.1 Responsibility The Head of Financial Solutions shall provide cash advances to those who require them for the purpose of minor items of expenditure. The Advance for Officials Expenses form should be completed by the relevant officer and signed by their authorised Service Contact and countersigned by the relevant Financial Solutions accountant. Whilst working from home, this process can be completed through email authorisation with a clear trail shown between appropriate personnel. The completed form should be emailed to the “cash advances” mailbox ready for an officer to collect from their preferred First Stop Shop – Motherwell, Wishaw, Coatbridge or Kilsyth. All receipts to support the spend should be retained and returned with any cash remaining from the advance within 1 month of the cash advance being received. 20.2 System – Imprest The particular bookkeeping system in use for petty cash in all Services is the Imprest System, and those who have cash advances are referred to as imprest holders. 20.3 Rules – Imprest Imprest accounts will be operated to rules set by the Section 95 Officer. These will be notified to all imprest holders, and must be strictly adhered to. 20.4 Termination – Imprest Any imprest holder who leaves the Council's employment or through any other circumstances ceases to be entitled to be an Imprest Holder, must account to the Section 95 Officer for the amount of the advance. Page 63 of 200
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20.5 Payment Method – Imprest Imprest holders may make payments in cash or by cheque drawn by them on their respective Imprest Bank Accounts. 21. AUDIT 21.1 Responsibility The Section 95 Officer and Audit and Risk Manager shall ensure the adequacy and effectiveness of the Council’s internal controls including financial and operational controls, risk management systems and key governance processes are independently reviewed on a regular basis in accordance with the Public Sector Internal Audit Standards and associated Local Government Application Note. Internal Audit will operate in a manner consistent with the Internal Audit Charter which explains in more detail its purpose, authority and responsibilities. This document is reviewed annually and is approved by the Section 95 Officer, the Chief Executive and the Audit and Scrutiny Panel. 21.2 Access Internal Audit staff have authority to:- (i) enter all Council premises or land at all reasonable times, (ii) have access to all records, (iii) require and receive any explanations necessary concerning any matter under investigation, and (iv) require any employee to produce cash, stores or other property under that employee's control. 21.3 Value for Money Internal Audit staff will contribute in an appropriate manner to the achievement of value for money in Council services. 21.4 Irregularities Chief Officer/Head of Service must report any evident or suspected irregularity involving cash, stores, expenditure, income, contractual powers or any other item of a financial nature, immediately, to the Audit and Risk Manager. 21.5 Reporting The Audit and Risk Manager shall report on Audit activity to the Chief Executive, Section 95 Officer and the Audit and Scrutiny Panel. 21.6 External Audit External Audit staff must be given access by Services to all relevant records required to enable them to conduct the external audit of the Council in accordance with the Code of Practice issued by Audit Scotland. Where staff are unsure about providing access, advice should be sought from the Section 95 Officer. 22. MEMBERS’ REMUNERATION AND EXPENSES 22.1 Responsibility The Section 95 Officer shall be responsible for the administration of expenses and remuneration to members of the Council in accordance with Scottish Government Regulations. 22.2 Payment Payment to members, including co-opted members, will be made by the Head of Financial Solutions in accordance with the Regulations, upon receipt of the prescribed form duly completed, where appropriate. All claims for a financial year are to be submitted within one month after 31st March of that financial year. Working from home arrangements require claim forms to be received electronically. Page 64 of 200
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FINANCIAL REGULATIONS 23.1 Authority These Regulations were approved by the Committee in May 2018 and have been subject to annual review since. 23.2 Responsibilities The Chief Executive and Executive Directors/Head of Services are responsible for ensuring that all appropriate members of staff, and where appropriate, external consultants, contractors and relevant partner organisations, have access to the Council’s Financial Regulations and Contract Standing Orders. 23.3 Breach Any employee discovering a possible breach of these regulations must report the matter immediately to their Chief Officer or Head of Service, who must in turn immediately report it to the Section 95 Officer. Failure by any employee to comply with the Regulations, or, in the case of staff with appropriate supervisory responsibilities, failure to ensure the compliance of others, can be a serious offence which may give rise to action. 23.4 Special Provisions The Education and Families Committee may request amendments to these Regulations insofar as they apply to the devolved Management of Resources by educational establishments, in consultation with the Head of Financial Solutions, and reported to the Finance and Resource Committee. 23.5 Annual Review The Head of Financial Solutions will consider these Regulations annually, and having consulted the Chief Executive, Executive Directors and Chief Accountable Officer for Health and Social Care, will present proposals for revision of the Regulations, where appropriate, to the Finance and Resource Committee for approval. 23.6 Circulation Electronic copies of these Regulations are issued directly to the Chief Executive, Executive Directors and Heads of Service. In addition, the document can be accessed on the Council’s Intranet, or via the Council’s Minutes, Agenda and Reporting system – Finance and Resource Committee. 23.7 Advice Any queries regarding the Regulations or their interpretation should be made in the first instance to the Head of Financial Solutions, or your relevant Financial Solutions contact who can refer any queries on to the relevant officer for review. Page 65 of 200
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Appendix 3 FINANCIAL SOLUTIONS SCHEME OF DELEGATION FINANCIAL MANAGEMENT RESPONSIBILITIES 1. Section 95 Officer 1.1. The Council, in terms of Section 95 of the Local Government (Scotland) Act 1973, has designated the Head of Financial Solutions as the officer responsible for the proper administration of the Council’s financial affairs, and nothing in this Scheme alters that responsibility. However, to enable the Section 95 Officer to fulfil his/her responsibilities in the most effective manner and to ensure that there is no ambiguity in relation to accountability, it is necessary for each level of management to delegate formally, and to issue a clear statement detailing, operational responsibility. 1.2. The Head of Financial Solutions, as Section 95 Officer, has the following specific responsibilities: 1.2.1. To ensure the accurate and timeous preparation of the Council’s Revenue Estimates, Medium-term and Long-term Financial Plans as appropriate, Capital Programmes and Statutory Accounts; all in accordance with laid-down timetables and procedures. 1.2.2. To report the summary position for both revenue and capital budgets at each committee cycle, with the intervening reports being presented to the Corporate Management Team. 1.2.3. To ensure reports are prepared by Service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations and ensure they are presented to the relevant Committee of the Council. 1.2.4. To ensure that all government and other external reporting body returns (POBE, LFR’s, Whole of Government Accounts, Prudential Code Indicators, Capital Expenditure and Income Statistics etc.) and Grant claims are submitted to the appropriate body by the due dates. 1.2.5. To ensure the development of Financial Solutions’ response to Best Value as set out in the Local Government Act 2003. 1.2.6. To review government grant mechanisms, identifying areas of potential review, and research alternative methods of funding. 1.2.7. Ensure the development of financial and management systems. 1.2.8. Maintain, review and update financial policies to reflect the corporate priorities of the Council. 1.2.9. To ensure that the Council has an appropriate Treasury Management Strategy which complies with recommended best practice and accords with the CIPFA Code of Practice and Prudential Code for Capital Finance. 1.2.10. To ensure that the Council’s Loans Fund and day to day borrowing and investment arrangements are in line with the statutory Annual Investment Strategy, and to report the Council’s Treasury Management Performance to Committee as required. 1.2.11. To ensure that professional standards and staff performance are maintained by all staff delivering financial Services. Page 66 of 200
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1.2.12. To ensure that appropriate access to training needs is available to enable staff to achieve their potential. 1.2.13. To ensure that a library of standard financial and accounting procedures is maintained for each Service, Trading Activity, Trust and other body such as a Private Company, in which the Council has a financial interest. 1.3. The Head of Financial Solutions has delegated the areas of responsibility described in this Scheme of Delegation to specified officers of Financial Solutions. In fulfilling any responsibilities delegated to them, specified officers will: 1.3.1. Conform with professional guidelines and standards of competence; 1.3.2. Comply with recognised accounting codes of practice. 1.3.3. Act in a professional and competent manner. 1.3.4. Seek to ensure that members of their staff do the same. 1.4. Specified officers will not sub-delegate any of their delegated responsibilities without the written consent of the Head of Financial Solutions. Duties may be sub-delegated, but not responsibilities. 2. Specific Delegation to Officers 2.1. The items listed in Section 2 of this Scheme of Financial Delegation are not to be regarded as an exhaustive list of the responsibilities of the specified officers. The Scheme must be read in conjunction with the officer’s Contract of Employment, Job Description and Professional Codes of Conduct. 2.2. The Head of Financial Solutions has made the following specific delegations in respect of the provision of Financial Services. 2.3. Business Finance Manager 2.3.1. Develop strategic business plans and manage service delivery consistent with these plans and in line with national and council policies. 2.3.2. Ensure best value in the management and delivery of services under direct control, ensuring that all relevant legislative requirement and professional standards are fulfilled and the best available assistance and advice is provided to Executive Directors within a changing economic and legislative environment. 2.3.3. Monitor along with other members of the Management Team, the external environment to ensure continued strategic fit between organisational capabilities and the changing demands upon the service. 2.3.4. Identify and develop opportunities for service improvement through collaborative projects/joint ventures with partner agencies. 2.3.5. Represent the Service and Council as necessary, including attendance at all relevant committees of the Council, working groups, conferences, seminars and meetings. 2.3.6. Provide support to national activities, including COSLA and Scottish Government as required. 2.3.7. Provide performance information and the preparation of reports for Council Committees, Sub Committees and working groups as required. 2.3.8. Promote and develop the use of options appraisal and other business and analytical techniques in support of continuous improvement. Page 67 of 200
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2.3.9. Support Executive Directors to ensure the effective and efficient deployment of financial resources within Services. 2.3.10. Ensure employees adhere to the Council’s Financial Regulations and Scheme of Financial Delegation and ensure probity in the use of financial resources. 2.3.11. Manage the accounting and audit process, ensuring adherence to council financial policies and procedures, legislative requirement and professional standards. 2.3.12. Ensure effective operational financial management of revenue and capital budgets and establish and maintain systems whereby budget managers regularly account for the budgets under their control. 2.3.13. Provide financial management information and professional advice, direction and support to delegated budget holders on all financial matters. 2.3.14. Monitor, measure and report on financial performance according to agreed performance indicators and frameworks. 2.3.15. Maintain positive working relationships with other officers, elected members (individually and collectively at Committee/Working Groups etc) and Community Planning partners. This will involve working across all service groups and with chief officers to ensure a joined up approach to the delivery of such services. 2.3.16. Oversee the Council’s monitoring and maintenance of effective controls and reconciliations of data or cash controls as appropriate. 2.3.17. Ensure that statutory returns and grant claims are completed and returned within required deadlines. 2.3.18. Identify Key financial risks and address these as appropriate, in terms of internal controls, monitoring and planning arrangements. 2.3.19. Support the Council’s pursuit of an effective health and safety culture by using the policies, procedures, risk assessments and training provided to work safely, giving due regard to yourself, others you work with and those who may use council services. 2.3.20. Deputise for the Head of Financial Solutions as appropriate. 2.3.21. Coordinate and prepare the Council’s annual revenue and capital budgets providing advice on matter relating to financial strategy, funding resources and expenditure pressures. 2.3.22. Oversee the preparation of the Annual Accounts of the Council and associated bodies in accordance with legislative accounting requirements and professional standards. 2.3.23. Oversee the Council’s Treasury Management function ensuring the effectiveness of the Authority’s Treasury Management policy and borrowing strategy. 2.3.24. Oversee the Council’s financial monitoring and governance arrangements of our Arms Length External Organisations (ALEO’s). 2.3.25. Provide a comprehensive financial systems development, research and Taxation service. 2.3.26. Manage the rent accounting function, developing and maintaining a fair and effective differential rent structure. 2.3.27. Ensure that adequate systems are in place to collect and account for other sources of income. Page 68 of 200
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2.3.28. Consult with the Service Management Teams to assess how the existing financial management needs have been met and plan for future requirements. 2.3.29. Oversee the monitoring of the Councils Devolved School Management (DSM) scheme, ensuring adherence to the scheme and the effective use of budgets and recommending changes where appropriate. 2.3.30. Manage elements of the DSM scheme not directly within the Financial Solutions structure. 2.3.31. Consult with the Service Management Teams to assess how the existing financial management needs have been met and plan for future requirements. 2.4. Finance Manager 2.4.1. Manage all activities to ensure that appropriate professional advice and guidance is provided on all relevant financial issues within the scope of the Finance Manager’s responsibilities. 2.4.2. Ensure effective arrangements are implemented and adopted for providing prompt customer focussed service. Develop solutions to complex problems and respond to high level queries from senior managers, service managers, elected members and external bodies. 2.4.3. Ensure team members follow Council policies, procedures, legislative requirements and professional standards. 2.4.4. Provide the Financial Solutions Management Team and Council Services with professional advice on matters relating to the operation and development of the Services including: 2.4.4.1. Providing financial management, business planning and accounting services for a range of specified Council Services. 2.4.4.2. Ensuring financial support provided to Services is efficient, integrated and responsive to change. Support Services in the delivery of the transformational change by providing professional guidance and support on business planning and financial management. 2.4.4.3. Directing the activities of Accountants, Assistant Accountants and other support staff to ensure revenue and capital plans, budget monitoring and annual accounts arrangements are effectively in place across the Council. 2.4.4.4. Identifying key financial risks and addressing these as appropriate in terms of internal controls, monitoring and planning arrangements. 2.4.4.5. Reviewing and ensuring compliance with financial regulations including SORPs and CIPFA Codes of Practice and other financial controls. Act upon internal and external audit reports relevant to areas of responsibility. 2.4.4.6. Promoting best financial practice to ensure effective use of and accountability for revenue and capital resources. Develop and maintain effective procedures in line with the scheme of financial delegation. 2.4.4.7. Reviewing statutory and statistical returns and grant claims to ensure that the Council’s needs and resources are accurately identified. Ensure all grant claims and statutory returns are completed and submitted within required deadlines. 2.4.5. Manage and develop the staff in the group, ensuring the highest professional standards by setting objectives and performance standards, developing work Page 69 of 200
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plans identifying training requirements, reviewing performance and taking such remedial action as necessary to ensure that standards are maintained. 2.4.6. Develop and maintain good working arrangements with other Finance Managers, Service Managers, elected members, trusts and external organisations to ensure efficient, effective and corporate working. 2.4.7. Respond positively to changes affecting the service, advocate new practice and procedures and drive forward change processes. Ensure that the professional integrity of the service is maintained at all times. 2.4.8. Represent Financial Solutions where appropriate at e.g. national associations, professional working groups, Council meetings etc. 2.4.9. Ensure that income and expenditure are monitored against Service budgets and that variances are reported timeously. 2.4.10. Prepare reports to senior management and the Council, as required. 2.4.11. Support the Council’s pursuit of an effective health and safety culture by using the policies, procedures, risk assessments and training provided to work safely, giving due regard to yourself, others you work with and those who may use Council services. 2.4.12. Manage the preparation and production of the Council’s annual revenue and capital budgets and supporting strategies and plans. 2.4.13. Co-ordinate the preparation of the Annual Accounts and other statutory returns of the Council and associated bodies in accordance with legislative accounting requirements and professional standards. 2.4.14. Manage Council’s Treasury Management function ensuring the effectiveness of the Authority’s Treasury Management policy and Borrowing Strategy. 2.4.15. Manage the Council’s financial monitoring and governance arrangements of Arms Length Organisations (ALEO’s) 2.4.16. Assist in providing a comprehensive financial systems development, research and Taxation service. 2.4.17. Ensure effective ledger control. 2.5. Accountant 2.5.1. Manage all activities within the job remit ensuring professional advice and guidance is provided at all times. 2.5.2. Provide the Head of Financial Solutions, Business Finance Managers, Finance Managers, Council Services and ALEOs Management teams/boards with professional advice on all matters relating to the financial management of the Council including: 2.5.2.1. Taking a lead role in financial management, business planning and accounting services for a range of specified Council services/ALEOs, promoting best financial practice across the Council. 2.5.2.2. Providing financial support to service in an efficient, client-focussed and integrated manner. 2.5.2.3. Assisting senior management in the development and maintenance of effective financial controls across the Council/ALEOs, assessing potential for improvements to internal controls and monitoring processes. Page 70 of 200
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2.5.2.4. Assisting senior management on the financial implications of the implementation of policy and legislative changes. 2.5.2.5. Provide financial advice and support to transformational projects as identified by the Transformation Committee. 2.5.2.6. Ensuring compliance with the Council’s Financial Regulations and proper accounting practice, including relevant Code of Practice on Local Authority Accounting and other relevant legislation and guidance. 2.5.2.7. Contributing to the provision of best value services within a changing and challenging environment. 2.5.2.8. Compiling statutory and statistical returns and grant claims to ensure that the client needs and financial resources are accurately identified. 2.5.3. Develop and maintain good working arrangements with service managers, senior staff and outside bodies to ensure efficient and effective corporate working. 2.5.4. Provide financial support to major projects, developments and initiatives including option appraisal techniques, financial analysis, affordability levels and methods of funding, representing the client as required on multi-disciplinary teams. 2.5.5. Represent senior management where appropriate at service and corporate working groups, project teams and national associations, etc. 2.5.6. Supervise and direct the activities of assistant accountants, administrative staff and Modern Apprentices, through preparation and monitoring of annual work plans/key objectives, managing performance to deliver effective outcomes and developing individual skills and expertise. 2.5.7. Prepare corporate and committee monitoring reports in the approved format. 2.5.8. Monitor the capital programme and prepare reports on capital expenditure patterns and the performance of the capital programme against approved plans. 2.5.9. Provide advice and guidance to managers and staff on budgetary control and financial information systems, ensuring robust, well-documented procedures are in place. 2.5.10. Prepare and provide formal training and guidance to Senior Managers and budget holders. 2.5.11. Working closely with the Finance Manager, prepare the Annual Statutory Accounts of the Council and related support documentation in accordance with accounting standards and legislative requirements. Liaise with controls and reconciliations staff on the effective reconciliation of all expenditure, revenue and suspense accounts. 2.5.12. Maintain awareness of and proactively report on issues which may impact on local government finances. 2.5.13. Undertake research into government grant funding mechanisms and other external sources. Prepare briefing papers and supporting analysis for the Head of Financial Solutions, senior officers of the Council and Elected Members to support decision making. 2.5.14. Provide a VAT service to the Council ensuring the proper treatment of VAT transactions and maintenance of VAT procedures and records. 2.5.15. Provide financial management and accounting support for council tax, general revenue grant, non-domestic rates and other corporate funds managed by Financial Solutions. Page 71 of 200
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2.5.16. Maintain and update the Service’s performance management framework including preparing, collating, and reporting performance and required actions against key indicators and service objectives. 2.5.17. Ensure ALEO’s compliance with the Council’s approved financial governance arrangements in accordance with our requirement to follow the public pound, reporting periodically to the Council. 2.5.18. Support Board Director or Council representative responsibilities through reviewing strategic and financial plans to ensure consistency with Council aims, objectives, budgetary provision and to ensure external bodies have robust and sustainable business plans. 2.5.19. Ensure accuracy of ALEOs statutory accounts, necessary for satisfying the Council’s statutory responsibility regarding entities’ financial statements in accordance with relevant timescales. 2.5.20. Appraise the financial performance of companies and other bodies who work to conduct business with the Council. 2.5.21. Prepare detailed corporate capital planning and expenditure programmes in conjunction with other senior officers in the Council and the strategic capital delivery group, policy priorities and available capital resources and in accordance with the capital investment strategy. 2.5.22. Manage the effective monitoring of capital programmes and prepare reports on capital expenditure patterns and the performance of programmes against approved plans. 2.5.23. Maintain the Council’s fixed asset register and capital accounting requirements. 2.6. Controls and Reconciliations 2.6.1. Ensure the effective on-going control and reconciliation of Council bank accounts and suspense accounts, Debtors, Creditors, and Payroll Systems, and ensure all payovers (PAYE etc.) and submission of returns are made within deadlines. 2.6.2. Oversee the daily control and reconciliation of all Council income and ensure robust procedures are in place for corporate Cash Receipting and the Municipal Bank. 2.7. Rent Income Team 2.7.1. Oversee the effective control of rent income including reconciliation of the bank account and direct debit compliance. 2.7.2. Plan and action rent assessments as part of the overall control of rent. 2.8. Revenues and Benefits 2.8.1. Under the remit of the Section 95 officer the Revenue and Benefits teams have the responsibility for the effective control of administering, processing and maintaining revenue and benefit transactions and systems. This includes for example Council Tax, Non Domestic Rates, Housing Benefits, Council Tax Reduction Scheme Page 72 of 200
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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 30/11/22 Revenues and Benefits Update From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 Executive Summary This report provides an update on the performance within the Revenues and Benefits functions of Financial Solutions as at 30 September 2022. Key points to note include: • As at 30 September 2022, 59.0% of Council Tax due for 2022/23 had been collected. This is an increase of 3.6% 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 40.8% to 30 September 2021 to 41.7% to 30 September 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 6 Page 73 of 200
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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. 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 30 September 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 59.0% is 3.6% 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 33 38 43 48 53 58 63 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Percentage of annual billing collected (%) Financial Year Council Tax Collection Rate at 30 September Page 74 of 200
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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 30 September for each financial year. 2.6 The collection figure for 2022/23 at 30 September is 41.7%; 0.9% higher than the same period last financial year. These year-to-date figures can fluctuate significantly depending on the timing of payment from individual ratepayers i.e. a number of large ratepayers will pay in one instalment and the figures can be skewed depending on when that payment is made. 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. 2.9 From 1 April 2023 the determination of eligibility for Empty Property Relief (EPR) will be devolved to individual local authorities. This relief is currently mandatory and fully funded by the Scottish Government through the Local Government Settlement. The Local Government Settlement will be adjusted to reflect the devolution of EPR. Given the current economic climate and uncertainties for businesses, it appears at this stage that most local authorities will be seeking to mirror the current legislation relating to EPR in devolved policies. The Council is currently developing its own policy for EPR with the expectation that this will be presented to Committee early in 2023 for consideration. Housing Benefits 2.10 The data in the following table 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 30 September 2022. The Scottish average comparator is based on the latest information published by DWP at Q4 2021/22. 0 10 20 30 40 50 60 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Percentage of annual billing collected (%) Financial Year Non Domestic Rates Collection Rate at 30 September Page 75 of 200
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Days to Process 2021/22 2022/23 Quarter 4 2021/22 Scotland Average New Claims 13 13 17 Change of Circumstances 6 7 3 2.11 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 2.12 As at 30 September 2022 a total of £24.623m in Council Tax Reduction has been awarded for the 2022/23 financial year. This compares to £24.364m to the same period during 2021/22, representing a small increase of £0.259m (1%). 2.13 The service received 3,700 applications between 1 April and 30 September 2022 compared with 3,302 during the same period during 2021/22, representing an increase of 12%. 2.14 The service continues to see a downward trend in the volume of changes in circumstances requests. From 1 April to 30 September a total of 47,488 changes were processed compared to 62,601 the previous financial year; a decrease of 24.1%. Discretionary Housing Payments (DHP) 2.15 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. 2.16 As at 30 September 2022 the total paid in respect of Bedroom Tax was £5.042m. In comparison this sum was £5.223m as at the same point in 2021. 2.17 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 30 September 2022 £0.483m (66%) has been paid or committed from the fund. 2.18 The Service will continue to liaise with colleagues in Housing Solutions and Housing Associations to encourage applications to the fund. Scottish Welfare Fund 2.19 The Council has administered the Scottish Government’s Scottish Welfare Fund (SWF) since 1 April 2016. 2.20 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. Page 76 of 200
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2.21 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 8,888 6,874 2,014 77.3% Community Care Grants 2,976 2,038 938 68.4% Total 11,864 8,912 2,952 75.1% 2021/22 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 8,203 5,656 2,547 68.9% Community Care Grants 3,230 2,485 745 76.9% Total 11,433 8,141 3,292 71.2% 2.22 As at 30 September 2022, the total financial value of grants paid from the Scottish Welfare Fund amounted to £1.900m which represents 45% of the total budget for the current financial year. 2.23 The service is currently processing all applications within legislative timescales; within 48 hours for Crisis Grants and within 15 working days for Community Care Grants. Self-Isolation Support Grant 2.24 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. 2.25 The scheme was revised on 1 May 2022 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 2022. 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. 2.26 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, although there is a small cohort who will still be eligible to apply after this date which is still to be confirmed. 2.27 During 2022/23 to date, the Council has received 1,080 applications and awarded a total of 531 with a combined value of £0.179m. Cost-of Living Support 2.28 The Policy and Strategy Committee on 29 September 2022 considered three separate cost-of-living support payments for low-income households. These are being administered by Financial Solutions. 2.29 The Fuel Hardship Payment for working low-income households not in receipt of benefits or other government supports was launched in October. The funding available Page 77 of 200
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will support around 14,000 payments. The scheme is due to close to new applicants on 3 December 2022. 2.30 The Pensioner Fuel Grant was initiated in November 2022 with the Council writing to nearly 5,000 eligible households to request bank details to ensure the £100 grant payment can be made directly to their bank accounts. The Council had originally intended making two separate payments of £50 to each eligible household, however, this has been combined into one payment to ensure the full support gets to households as quickly as possible. 2.31 Finally, the North Lanarkshire Child Payment was processed in early November 2022 for the parents / guardians of around 14,000 eligible children. 3. Measures of success 3.1 Continuous improvement in processing and collection rates. 4. Supporting documentation None Elaine Kemp Head of Financial Solutions Page 78 of 200
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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 79 of 200
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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 80 of 200
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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 30/11/22 Revenue Monitoring Report Council Summary 1 April 2022 to 18 September 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 and the reallocation of Scottish Child Payments Grant as Agency managed grants the budget has been revised to £871.841m. The Council is currently projecting an overall overspend of £0.538m against budget. This position reflects a net £8.212m of forecast costs in excess of budgetary provision, attributable to inflationary pressures experienced across services in relation to utility costs, contract price increases and increased school meal food costs. Resources totalling £10.147m have been provided through a combination of corporate budgetary provision and use of reserves to help manage the increased costs arising from higher inflation rates. Therefore, there is an offsetting drawdown of £8.212m from such resources, leaving a balance of just £1.935m to support any further pressures not yet realised. It should also be noted that services are required to continue to take action to help manage the overall position including managing vacancies and curtailing non-essential expenditure. 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 £5.417m of the current year target (76%) will be delivered within the financial year, 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; and (2) Otherwise endorse the contents of this report. The Plan for North Lanarkshire Priority All priorities AGENDA ITEM 7 Page 81 of 200
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Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning Page 82 of 200
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1. Background 1.1. The Council’s approved Financial Regulations require services 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, services 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 for Adult Social Care, Free School Meal Expansion monies, Local Heat and Energy Efficiency Strategy funding offset by a reallocation of Scottish Child Payments Grant to agency managed grants resulting in an overall increased budget of £871.841m. 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 have been set aside from General Fund reserves to manage the financial impact of the delayed implementation of the Active and 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. The following table summarises the projected income and expenditure position, which illustrates a projected deficit of £0.538m position: Annual Budget (£m) Projected Outturn (£m) P6 Variance (£m) P4 Variance (£m) P4 to P6 Movement (£m) Expenditure Total Expenditure 871.841 872.379 (0.538) 0.158 (0.696) Income Aggregate External Finance 707.792 707.092 - - - Local Tax Collection 158.049 158.049 - - - Use of Balance 6.000 6.000 - - - Total Income 871.841 871.841 - - - Projected variance: Surplus/(Deficit) at 31 March 2023 - (0.538) (0.538) 0.158 (0.696) Table 1 Page 83 of 200
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2.2. Analysis of Significant Variations 2.2.1. Table 2 below illustrates the projected outturn financial position of services: Service P6 Outturn (£m) P4 Outturn (£m) P4 to P6 Movement (£m) Education Children and Families (5.144) Overspend 0.158 Underspend (5.302) Enterprise and Communities (3.959) Overspend - On Budget (3.959) Chief Executives and Other Corporate Services 0.353 Underspend - On Budget 0.353 Social Work (Non-Integrated) - On Budget - On Budget - Executive Services Total (8.750) Overspend 0.158 Underspend (8.908) Financing Costs - On Budget - On Budget - Budget Assumptions (inflation) 2.927 Underspend - On Budget 2.927 Use of Reserves (inflation) 5.285 Over Recovery - On Budget 5.285 Total (0.538) Overspend 0.158 Underspend (0.696) Table 2 2.2.2. Education, Children and Families is reporting a projected overspend of £5.144m. There is a projected overspend in Property costs of £5.608m largely due to an anticipated increase in utilities/energy costs due to inflationary pressures, a projected overspend in transport costs of £5.394m due to ongoing demand pressures within ASN transport and increases to mainstream transport contract rates. There is also a projected increase in payments for ASN placements of £0.743m and Family Placements of £0.303m, due to cost pressures associated with External Fostering and Kinship Care Placements and a projected under recovery in income of £1.784m due to reduced membership and visitor fees for Active and Creative Communities. These are partially offset by a projected reduction in employee costs of £4.855m, largely due to delays in recruitment and establishment of staffing models. In addition, there are projected underspends in other expenditure of £1.988m, supplies and services of £1.554m and administration costs of £0.370m predominately due to management action and curtailment of non-essential expenditure. 2.2.3. Enterprise and Communities is projecting an overspend of £3.959m, largely due to inflationary pressures of £3.068m in the relation to utilities, food, fuel, materials and waste tonnage. There are also forecast increased non-inflationary related costs of £2.396m due to a delay in the achievement of office rationalisation savings (£0.450m), increased use of agency staff to support waste collection due to ongoing recruitment difficulties, increased costs of street lighting and electric car charging (£0.536m), other Page 84 of 200
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expenditure pressures of £0.890m, and income under-recoveries (£0.365m) in relation to demand for paid school meals and special uplifts. These overspends are partially offset by a £1.184m underspend in employee costs due to vacancies across the service. 2.2.4. Chief Executives and Other Corporate Services are projecting an underspend of £0.353m, primarily due to lower than budgeted contract costs as a result of a delay in transferring to a cloud environment, thus reducing the forecast cloud consumption costs by £1.000m, and a £0.200m underspend in property costs in respect transitional rates relief. However, these overspends are partially offset by a net overspend in employee costs of £0.644m in relation to vacancy savings offset by a delay in achievement of digital savings, and a £0.283m under recovery in come. 2.2.5. Within the service’s reported position above, unbudgeted inflationary impacts totalling £8.212m have been reported. However, Corporate Management Team will recall resources totalling £10.147m have been provided through a combination of budgetary provision and use of reserves to help manage the increased costs arising from higher inflation rates. Therefore, there is an offsetting drawdown of £8.212m from such resources, leaving a balance of just £1.935m to support any further pressures not yet realised. 2.2.6. Given the volatility in the economy, Government policy announcements and market conditions, it is very difficult to accurately assess the impact of inflation across the Council. Whilst the Council has identified funds to assist with offsetting the impact of inflation within the current year, it continues to be vitally important that services curtail all non-essential expenditure to support the Council’s overall management of this significant risk. 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 Services’ monitoring report. It is projected that £5.417m of savings (76%) will be achieved in the current year. It is anticipated that the remaining in year gap of £1.695 will be fully mitigated by replacement savings and implemented in full in future years. 2.4. Earmarked Reserves and Change Management Fund 2.4.1. The Council’s audited annual accounts highlight a General Fund reserve balance of £236.264m. This balance includes £8.000m for the Contingency Reserve. There is also a total of £169.240m 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 £29.600m of unallocated balances. 2.4.2. A total of £103.096m of earmarked reserves are profiled for use in 2022/23 with a further £66.144m profiled for use in future years. It is currently projected that £102.096m of the 2022/23 earmarked reserves will be fully spent during this financial year. A summary position in respect of the above is shown in Appendix 2. Page 85 of 200
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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 current year forecast overspend of £0.538m and the capital fund drawdown of £0.396m, the unallocated General Fund balance is currently forecast to reach £29.458m 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 £8.624m. This position is primarily due to a projected underspend in employee cost of £5.126m 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 £1.961m as a result of staff shortages within the care at home sector SDS commissioning framework, a projected underspend in administration costs of £1.329m due to lower than anticipated Carers costs and numerous other smaller budget movements. 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 Page 86 of 200
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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 87 of 200
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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 88 of 200
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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 19,283 19,183 100 1,876 - 1,876 1,876 - - 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 11,392 10,482 10,482 - 910 - 910 910 - - Earmarked & One Off Resources Total 169,240 103,096 102,996 100 66,144 - 66,144 66,144 - - Total Reserves 198,664 132,520 104,620 27,900 66,144 - 93,944 93,944 - - Contingency Reserve 8,000 Unallocated Balance 29,600 General Fund Surplus at 31 March 2019 236,264 NORTH LANARKSHIRE COUNCIL ANTICIPATED COMMITMENTS AGAINST EARMARKED RESERVES AS AT 18 September 2022 (PERIOD 6) 2022/23 Future Years Page 90 of 200
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Appendix 3 £000 £000 Total Balance B/f per 2021/22 Unaudited Accounts 29,424 29,600 Period 5 reported overspend (538) Total Balance 2022/23 before commitments 29,424 29,062 Known Commitments :- Revised one - off costs of approved savings (1,624) Draw down from Capital Fund 396 Total Balance 2022/23 27,800 29,458 Estimated future Commitments to 2026/27 (27,800) Estimated future Capital Fund Drawdown to 2023/24 1,000 Forecast Balance 0 30,458 NORTH LANARKSHIRE COUNCIL AVAILABILITY OF GENERAL FUND BALANCES AS AT 18 September 2022 (PERIOD 6) Change Management Fund Unallocated General Fund Page 91 of 200
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North Lanarkshire Council Report Finance & Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref NL/PF Date 30/11/22 Revenue Budget Monitoring Report; Chief Executives & Other Corporate Services 01.04.22 – 16.09.22 (Period 6) 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 19 September 2022 (Period 6). 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 £95.732m currently represents the Net Revenue Budget for the Chief Executive & Other Corporate Services. The Service is currently projecting a favourable position of £1.033m for the financial year which includes £2.171m of approved COVID funding. In addition, the 2022/23 budget incorporates £3.453m of savings previously approved by Council. Of this, £3.290m relates to Digital Savings; in recognition of the challenges facing the implementation of this saving, Business and Digital were supported with £1.000m through an earmarked reserve resulting in a reduced savings target of £2.290m for 2022/23. Following a full review of the Digital NL savings and the earmarked reserve, remaining savings targets have been realigned to services. Recommendations It is recommended that the 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 8 Page 93 of 200
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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. The following budget realignments have since taken place resulting in a revised budget for the service of £93.732m: • the approved transfer of Services from Education & Families of £2.965m, • the realignment of the Digital NL saving to Services, (inclusive of those within Chief Executive’s Service) of £2.239m, • transfer from Enterprise & Communities of £0.198m, • the inclusion of funding for admin associated with Discretionary Housing Payments of £0.140m, and the Scottish Child Bridging Payment of £0.086m offset by the reclassification of the Scottish Child Bridging Payment Grant to suspense of £3.461m. 2.1.2 The overall projected outturn position of the Service is a favourable position of £0.353m. 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 freeze on non-essential recruitment and the curtailment of non- essential expenditure. 2.1.4 The 2022/23 budget incorporates £3.453m of savings previously approved by Council. Of this, £3.290m relates to Digital Savings; in recognition of the challenges facing the implementation of this saving, one-off funding of £1.000m was set aside to support the financial position resulting in a reduced savings target of £2.290m for the Service in 2022/23. 2.2 Analysis of Significant Variances 2.2.1 Employee costs are anticipated to be overspent (£0.644m), primarily as a result in delay in sprint release within Digital NL (£1.051m) offset by vacancies within Legal & Democratic of £0.263m, Financial Solutions of £0.072m, Strategic Communication of £0.041m and Audit & Risk of £0.031m. 2.2.2 There is a favourable projected outturn within Property Costs of £0.200m due to transitional relief on previous CLNL properties. 2.2.3 Supplies & Services are currently projected to be underspent by £1.000m within Business and Digital mainly due to advancement of budget to support the transition to Page 94 of 200
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Cloud based solutions in the current year coupled with management action within contract lines. 2.2.4 Transport costs are currently indicating a minor favourable variance of £0.004m as a result of current hybrid working by staff. 2.2.5 Administration Costs are expected to underspend by £0.075m due to reduced printing and postage costs of £0.060m within Legal & Democratic coupled with planned underspends of £0.015m within Strategic Communications. 2.2.6 Income is expected to under-recover by £0.283m due to a decrease in legal insurance charges, registrar fees and recharging for printing and postages within Legal & Democratic. 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 over a number of years. This was enhanced by a further £0.154m of resources resulting a revised balance of £5.673m. However, following approval of the realignment of Digital NL savings, it was agreed that the associated ear marked reserve of £1.000m would be realigned to Services resulting in a revised total of £4.673m. It is anticipated that £4.245m of reserve balances will be utilised in 2022/23. A total of £0.428m of the remaining balance will be required for future years with a further £0.757m of reserves identified as no longer required. 2.3.2 Details of the Service’s earmarked funds are provided in Appendix 4. 2.3.3 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 2.3.4 These costs are not included in the Service outturn position. 2.4 2022/23 Budget Savings 2.4.1 The 2022/23 budget incorporates £0.361m of savings approved by Council on 17 February 2022. 2.4.2 Management action is planned to offset these in the current year: • Business and Digital – planned reduction of spend within Contract lines to support savings target of £0.198m, • People and Organisational Development – planned vacancy management action to support savings target of £0.163m. 2.4.3 Appendix 5 provides a summary of approved savings, including commentary in relation to challenging savings and actions taken to address these challenges. 2.4.4 The 2022/23 budget also includes savings of £3.092m previously approved in relation to DigitalNL. Following a full review of the remaining Digital NL savings and the ear marked reserve, remaining savings targets have been religned to Services. 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 Page 95 of 200
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£1.895m, and additional investment of £0.276m. Details of the Service’s COVID Budget are provided in Appendix 6. 2.6 Management Actions 2.6.1 The Service will take the necessary action toensure 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 Elaine Kemp Head of Financial Solutions Page 96 of 200
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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 97 of 200
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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 98 of 200
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APPENDIX 1 [1] [2] [3] [5] [6] [8] [9] [10] DIRECTORATE & SUPPORT 345,901 345,901 0 876,892 876,892 0 0.0% 0 FINANCIAL SOLUTIONS 12,721,181 12,658,793 62,388 FAV 45,295,513 45,223,772 71,741 FAV 0.2% 0 Underspends in relation to vacancies partially offset by Turnover AUDIT & RISK 276,430 253,058 23,372 FAV 581,134 549,777 31,357 FAV 5.4% 0 Underspends in relation to vacancies partially offset by Turnover LEGAL & DEMOCRATIC SOLUTIONS 996,652 1,002,568 (5,917) ADV 2,210,700 2,220,636 (9,936) ADV (0.5%) 0 BUSINESS & DIGITAL 7,440,263 7,440,264 0 17,197,808 17,197,809 0 0.0% 0 PEOPLE & ORGANISATIONAL DEVELOPMENT 3,708,733 3,708,734 0 8,087,410 8,087,410 0 0.0% 0 STRATEGIC COMMUNICATIONS 2,433,673 2,377,265 56,408 FAV 5,160,273 5,100,754 59,519 FAV 1.2% 0 Underspends in relation to vacancies, admin costs and travel budgets partially offset by Turnover OTHER CORPORATE SERVICES 1,259,741 1,165,864 93,877 FAV 3,684,556 3,484,556 200,000 FAV 5.4% 0 Over-recovery in income in relation to Building / DSO contributions plus Transitional relief no longer applied to previous CLNL properties JOINT BOARDS 6,027,400 6,027,400 0 12,637,971 12,637,971 0 0.0% 0 NET EXPENDITURE 35,209,973 34,979,847 230,126 FAV 95,732,257 95,379,577 352,680 FAV 0.4% 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 06 (01 April 2022 - 16 September 2022) A - Chief Executive's Page 99 of 200
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APPENDIX 2 [1] [2] [3] [5] [6] [8] [9] [10] EMPLOYEE COSTS 13,716,767 14,354,350 (637,583) ADV 38,222,782 38,866,441 (643,659) ADV (1.7%) (643,659) Digital NL - overspend due to delay in sprint releases partially offset by vacancies underspend within Legal & Democratic, Financial Solutions, Strategic Communictions and Audit & Risk PROPERTY COSTS 1,793,980 1,698,706 95,275 FAV 2,264,527 2,064,527 200,000 FAV 8.8% 200,000 Underspend as a result of transitional relief no longer applied to previous CLNL properties SUPPLIES & SERVICES 6,978,199 5,978,199 1,000,000 FAV 10,592,751 9,592,750 1,000,000 FAV 9.4% 1,000,000 Digital NL - management action within B&D to offset delay in sprint releases associated with saving TRANSPORT & PLANT 29,965 26,966 2,999 FAV 165,779 161,441 4,338 FAV 2.6% 4,338 ADMINISTRATION COSTS 2,610,247 2,596,307 13,940 FAV 7,992,342 7,917,342 75,000 FAV 0.9% 75,000 PAYMENTS TO OTHER BODIES 6,589,476 6,589,476 0 17,828,032 17,828,032 0 0.0% 0 TRANSFER PAYMENTS 34,224,086 34,224,086 0 122,004,254 122,004,254 0 0.0% 0 CAPITAL FINANCING COSTS 500,000 500,000 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 2,412,937 2,412,937 0 3,847,047 3,847,047 0 0.0% 0 TOTAL EXPENDITURE 68,855,658 68,381,027 474,631 FAV 206,989,855 206,354,176 635,680 FAV 0.3% 635,679 INCOME (33,645,685) (33,401,180) (244,505) ADV (111,257,598) (110,974,598) (283,000) ADV 0.3% (283,000) Over-recovery within Buidling / DSO contribtuions partially offset by postage and printing income, legal insurance fee and registrars NET EXPENDITURE 35,209,973 34,979,847 230,126 FAV 95,732,257 95,379,578 352,680 FAV 0.4% 352,679 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 06 (01 April 2022 - 16 September 2022) A - Chief Executive's Page 100 of 200
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APPENDIX 3 [1] [2] [3] [5] [6] [8] [9] [10] PAYMENTS TO OTHER BODIES GENERAL 142,122 6,376 135,746 FAV 609,782 609,782 0 0.0% 0 MEDICAL FEES 2,994 506 2,488 FAV 9,637 9,637 0 0.0% 0 AGENCY FEES 33,085 11,969 21,117 FAV 81,542 81,542 0 0.0% 0 TOWN TWINNING 1,632 0 1,632 FAV 3,533 3,533 0 0.0% 0 CHILDRENS PANEL 1,061 2,693 (1,632) ADV 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 67,919 32,893 35,026 FAV 158,629 158,629 0 0.0% 0 GRANTS TO ORGANISATIONS 560,733 612,711 (51,978) ADV 1,286,919 1,286,919 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 1,391,511 1,541,851 (150,340) ADV 4,402,115 4,402,115 0 0.0% 0 SUB-CONTRACTOR PAYMENTS 864 0 864 FAV 1,869 1,869 0 0.0% 0 LOCAL TAX PAYPOINT COMMISSION 16,155 9,078 7,077 FAV 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 700,990 700,990 0 2,105,910 2,105,910 0 0.0% 0 SPT CONTRIBUTION 2,712,456 2,712,456 0 5,453,118 5,453,118 0 0.0% 0 SPT CONCESSIONARY FARES CONTRIBUTION 285,954 285,954 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 6,589,476 6,589,476 0 18,357,421 18,357,421 0 0.0% 0 FAV = Favourable Variation, underspend etc ADV = Adverse Variation, overspend etc NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Payments to Other Bodies Period 06 (01 April 2022 - 16 September 2022) A - Chief Executive's CATEGORY BUDGET TO DATE ACTUAL TO DATE YEAR TO DATE VARIANCE ANNUAL BUDGET [4] [7] PROJECTED OUT-TURN VARIANCE PROJECTED OUT-TURN % PERIOD MOVEMENT ANALYSIS Page 101 of 200
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APPENDIX 4 Value % Service Specific Earmarked Reserves: Support Plan for North Lanarkshire L&D 100 (46) 54 0 54 100.0% 0 54 Budget required in 2023/24 per original phasing Digitisation Reserve B&D 2,499 (180) 2,319 567 2,319 100.0% 757 1,562 Budget required in 2023/24 per original phasing Digital Savings B&D 1,000 (1,000) 0 0 0 0.0% 0 0 Digital NL savings and associated EMR realigned to Services per CMT report Family Firm POD 173 0 173 15 173 100.0% 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 ESC Resources Reserve POD 154 (50) 104 33 104 100.0% 0 104 Delay in appointment of staff, balance of EMR required in 2023/24 Customer Services Hub SC 212 (82) 130 53 130 100.0% 0 130 Delay in appointment of staff, balance of EMR required in 2023/24 Customer Services Hub SC 50 (50) 0 0 0 0.0% 0 0 Extension of Recover NL staff to 31/08/2023, funding 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 (20) 148 115 148 100.0% 0 148 Delay in appointment of staff, balance of EMR required in 2023/24 CLNL ICT Development 135 0 135 0 135 100.0% 0 135 TOTAL 5,673 (1,428) 4,245 798 4,245 100.0% 757 3,488 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Status of Earmarked Reserves Period 06 (01 April 2022 - 16 September 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 Reserves No Longer Required Reserves Required In Year Commentary Regards Usage Page 102 of 200
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APPENDIX 5 £000 £000 £000 £000 £000 Digital NL B&D 198 0 198 Management action taken within contract lines in current year. 173 25 Reduction of ESC Admin posts POD 163 0 163 Management action through holding vacancies 163 0 TOTAL 361 0 361 336 25 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 06 (01 April 2022 - 16 September 2022) A - Chief Executive's Page 103 of 200
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APPENDIX 6 £000 £000 £000 £000 Costs: Increased Costs 1,895 1,895 0 0 Reduced Costs 0 0 0 0 Lost Income 0 0 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 276 162 114 0 Extension of Recover NL staff to 31/08/2023, funding required in 2023/24 Contingencies 0 0 0 0 Service Costs Total 2,171 2,057 114 0 Income: Earmarked COVID Funding (2,171) (2,057) (114) 0 Extension of Recover NL staff to 31/08/2023, funding required in 2023/24 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) (2,057) (114) 0 TOTAL NET COSTS (0) 0 0 0 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Forecast COVID-19 Costs Period 06 (01 April 2022 - 16 September 2022) A - Chief Executive's CommentaryDESCRIPTION OF COVID-19 COSTS BUDGET PROJECTED OUT-TURN PROJECTED OUT-TURN VARIANCE PERIOD MOVEMENT Page 104 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/NL/PF Date 30/11/22 Chief Executive Service – Capital Monitoring Report 1 April to 16 September 2022 (Period 6) From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 Executive Summary This report highlights the financial performance and provisional outturn of 2022/23 Chief Executive capital programme for the period ended 16 September 2022 (Period 6). In summary the Service has a total capital budget of £18.354m, comprising of £14.893m within Business and Digital and £3.460m within Communities. 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 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 9 Page 105 of 200
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1. Background 1.1 This report provides a summary of financial performance for the period 1 April 2022 to 16 September 2022 (Period 6). 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 for Chief Executive’s Services 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, funding of £0.500m was allocated for Local Development Programmes’ play areas and other projects. Scottish Government funding of £0.324m and carry forwards from 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. 1.3 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 £0.100m or 5% - within budget monitoring reports. Where significant deviations were identified, explanatory commentary must be provided to outline action required to rectify deviations and, where relevant, must also highlight the impact this has on other budget headings. 2. Report 2.1 Summary of Financial Position Following approval of the re-profiled budget, the Service is projecting a break-even position for the financial year 2022/23. Budget movements are explained in more detail in Section 2.2 below with the detail of both capital budgets and expenditure in Appendix A. 2.2 Analysis of Significant Variances 2.2.1 Within Business and Digital, approved reprofiling of the budget will impact on the following areas. • Digitisation & Innovation Budget has been reprofiled to reflect projected spend, resulting in a reduction in the current year’s budget from £10.111m to £7.462m. Actual expenditure to date is £2.682m as a result of payments being realised on completion of milestones within each project. Committed expenditure at Period 6 is £3.811m with full spend against budget anticipated by 31 March 2023. • Line of Business Systems (LOB) As above, the budget has been reprofiled from £3.097m to £1.504m to reflect projected spend. Actual expenditure to date is £0.064m with further committed spend of £0.303m. Full spend of is anticipated against the reprofiled budget. • End User Devices (EUD) The revised budget position following reprofiling reflects a minor reduction in the the current year from £1.685m to £1.504m. Actual spend to date is £0.027m with committed expenditure at Period 6 of £0.030m. However, it should be noted that placing of orders for Corporate EUD Hardware upgrade (£0.422m) and Education Page 106 of 200
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EUD Hardware Upgrade (£0.700m) is imminent and therefore it is anticipated that the remainder of the budget with be spent by the end of the current financial year. 2.2.2 Communities Service is currently projecting a break-even position for financial year 2022/23 with a review of the review the phasing of programmes currently ongoing. 2.3 Management Actions The Service will continue to review phasings of associated programmes with further updates provided to the Strategic Capital Delivery Group, DigitalNL Board and Committee accordingly. In particular, challenges facing Business and Digital throughout financial year 2021/22 in respect of lengthy delivery times and competing resourcing have continued into 2022/23. Business and Digital therefore reviewed projections and requested £4.424m be reprofiled to future years of the capital programme, better reflecting the likely phasing of project costs. Work packages aligned to the DigitalNL programme continue to be closely monitored to ensure they remain within the available capital investment. 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 1 Summary Expenditure by Project/Theme Elaine Kemp Head of Financial Solutions Page 107 of 200
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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 108 of 200
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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 109 of 200
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Appendix 1 Chief Executives Capital Programme 2022/23 Thematic Expenditure Summary 1st April 2022 - 16 September 2022 (PERIOD 6) Division Lvl 7 Theme Budget £ Actual £ Committed £ Uncommitted £ Projected Outturn £ Outturn variance £ Business and Digital Business and Digital AX1A Digitisation & Innovation 10,111,492 2,682,177 3,810,775 3,618,540 7,461,528 2,649,964 Business and Digital AX1B LAN Refresh 0 0 0 0 0 0 Business and Digital AX1C Communication & Digital 0 0 0 0 0 0 Business and Digital AX1D Line of Business (LOB) System Portfolio 3,096,606 63,519 303,398 2,729,689 1,504,323 1,592,283 Business and Digital AX1E End User Device (EUD) Refresh 1,685,246 26,740 3,027 1,655,480 1,503,902 181,344 TOTAL BUSINESS and DIGITAL 14,893,344 2,772,436 4,117,199 8,003,709 10,469,753 4,423,591 Communities COMMUNITIES Communities AX2A Community Board Project Investment Fund 3,460,346 244,939 1,317,371 1,898,035 3,460,346 0 TOTAL COMMUNITIES 3,460,346 244,939 1,317,371 1,898,035 3,460,346 0 TOTAL CHIEF EXECUTIVES 18,353,690 3,017,375 5,434,570 9,901,745 13,930,099 4,423,591 YTD OUTTURN Page 110 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/KS/RM/GM Date 30/11/22 Treasury Management Monitoring Report for quarter ended 30 September 2022 From Elaine Kemp, Head of Financial Solutions E-mail mcnameer@northlan.gov.uk Telephone Ryan McNamee, Finance Manager 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 July 2022 to 30 September 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 September 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 10 Page 111 of 200
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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 second 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. 2. Report 2.1 Summary Position 2.1.1 The net overall borrowing position to 30 September 2022 is £744.2m, this is a decrease of £21.9m from the position at the 30 June 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 £807.7m which represented a reduction of £5.4m. This was mainly due to a net increase in temporary borrowing activity of £8.0m as £60.0m falling due for repayment was offset by £68.0m of new temporary borrowing, and there was also a decrease of £8.3m in the municipal bank balances available to the Council as customers continued to withdraw monies in the run up to the closure of the bank on 30th September 2022. In addition, net long-term borrowing reduced by £3.1m due to the repayment of existing PWLB borrowing. Lease payments under existing finance lease and PPP obligations of £12.0m also fell due for repayment during the quarter. 2.2.2 The approach to borrowing is in line with the approved strategy, which is to take 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 long-term 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. 2.2.3 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 Page 112 of 200
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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 £3.0m 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. 2.3.3 Further reports regarding future activity will be presented to Committee as appropriate. 2.4 Investments 2.4.1 At the end of the second quarter of 2022/23, the Council held total investments of £63.5m, which is a net increase of £16.5m in cash and cash equivalents, mainly due to an £8.7m increase in short-term investments and a reduction in the bank overdraft including cash in transit of £7.8m, as shown within column 6 of the attached Appendix 1. 2.4.2 The increase in short term investments reflects repayment of maturing temporary borrowing of approximately £345.3m and undertaking new short-term investments of £354.0m. 2.4.3 At quarter end, the bank overdraft including cash in transit was £5.7m a reduction of £7.8m on the net overdrawn position at the end of the previous quarter of £13.5m. The net cash movement reflects BACS payroll and creditor payment runs, which fell due for clearance at the quarter end date. The balance at 30 September 2022 comprises of £5.7m net BACS payments outstanding due for clearance within 3 days of the quarter end date, cheques unpresented of £0.4m 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 3 August 2022, the Bank of England Base Rate was increased from 1.25% to 1.75% and then by a further 0.50% to 2.25% on 21 September 2022, to help combat ongoing high inflation, fuelled by high energy costs and its impact on consumers cost of living due to the continuing war in Ukraine, and the associated impact on supply chains. The increases in the Bank of England Base Rate over the period under review, with the prospect of more increases to come, short-dated cash rates ranging between 0.7% - 1.5% at the end of March, rose by around 1.5% for overnight/7-day maturities. 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 Page 113 of 200
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prudent management of liquidity to meet current commitments and future cash demands based on the latest cashflow projections. Non Treasury Management Investments 2.4.7 During the quarter, repayments of £0.010m were made in respect of third-party advances in connection with the Cumbernauld Academy DBFM and Greenfaulds DBFM. 2.5 Interest Rate Movements & Other Economic Updates 2.5.1 The ongoing conflict in Ukraine has continued to put pressure on global inflation and the economic outlook for UK and world growth remains weak. The UK political situation towards the end of the period following the ‘fiscal event’ increased uncertainty further. The Bank of England, Federal Reserve and the European Central Bank all pushed up interest rates over the period and committed to fighting inflation, even when the consequences were, in all likelihood, recessions in those regions. 2.5.2 As outlined above, the Bank of England increased the official Bank Rate to 2.25% over the period. The Monetary Policy Committee (MPC) pushed through rises of 0.50% in August and in September. The MPC noted that domestic inflationary pressures are expected to remain strong. Therefore, given the strong rhetoric around tackling inflation, further Bank Rate rises are expected, with market forecasts of an additional increase of 1% to be announced in November. 2.5.3 UK inflation remained extremely high. Annual headline CPI hit 10.1% in July, the highest rate for 40 years, before falling modestly to 9.9% in August and increasing to 10.1% in September and is expected to rise further and peak at around 13% in Q4 this year. RPI registered 12.3% in both July and August and rose to 12.6% in September. The energy regulator, Ofgem, increased the energy price cap by 54% in April, while a further increase in the cap from October, which would have seen households with average energy consumption pay over £3,500 per annum, was dampened by the UK government stepping in to provide around £150 billion of support to limit bills to £2,500 annually until 2024. However, this support has been reduced to 6 months to April 2023 by the new Chancellor, pending review of future support. 2.5.4 The labour market remained tight through the period but there was some evidence of easing demand and falling supply. The unemployment rate for April fell to 3.8% and declined further to 3.6% in July and 3.5% in August. Although now back below pre-pandemic levels, the recent decline was driven by an increase in inactivity rather than demand for labour. Pay growth in July was 5.5% for total pay (including bonuses) and 5.2% for regular pay. 2.5.5 As a result of the ‘mini budget’ in September and little detail on how government borrowing would be returned to a sustainable path, financial markets reacted negatively. As a result, gilt yields rose dramatically by between 0.7% and 1% for all maturities. The swift rise in gilt yields left pension funds vulnerable and risked triggering large scale redemptions of assets across their portfolios. This resulted in the Bank of England intervening to help preserve market stability. However, uncertainty remained in control of financial market sentiment and bond yields remained volatile, continuing their general upward trend as concern over higher inflation and interest rates continued to dominate. Towards the end of September, Page 114 of 200
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volatility in financial markets was significantly exacerbated by the UK government’s fiscal plans, leading to an acceleration in the rate of the rise in gilt yields and decline in the value of sterling. 2.5.6 Over the period the 5-year UK benchmark gilt yield rose from 1.41% to 4.40%, the 10-year gilt yield rose from 1.61% to 4.15%, the 20-year yield from 1.82% to 4.13% and the 50-year yield from 1.56% to 3.25%. This resulted in the PWLB 10 year borrowing rate increasing from 3.38% at the start of the quarter to 5.15% at the end of the quarter, showing a spread of 2.77% between the highest and lowest interest rate which were 2.78% and 5.55% respectively, averaging 3.61%. 2.5.7 Following the increases in the base rate in August and September, short-term borrowing interest rates increased with the short term 7-day offer rate ranging between 1.35% and 2.75% over the period. Taking account of the increase in borrowing rates and advice from our treasury management advisors, it was considered more cost effective in the near term to use a combination of internal resources or to borrow rolling temporary / short-term loans, at lower interest rates than long term borrowing. This will manifest itself in increased temporary borrowing costs for the Council partially offset by increased investment income earned on surplus balances but remains within budgetary forecasts. 2.5.8 The Treasury Management Section will continue to monitor financial and economic policy and their impact upon the Council’s investment and borrowing activity. 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 forecast to be lower than anticipated by £19.5m. This reflects a net increase of £8.1m in the General Fund capital investment and a decrease of £27.6m 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 mix of resources used to finance the capital expenditure in 2022/23 reflect the updates to the forecast capital investment outlined above. Therefore, the level of in-year borrowing is anticipated to be lower by £46.6m due to a reduction in HRA and General Fund programmes, of £26.2m and £20.4m respectively. The forecast level of borrowing also reflects a net increase in capital grants and external contributions of £21.6m, with an additional £23.1m available for the General Fund programme offset by with a £1.5m reduction for HRA projects. An additional £5.5m Page 115 of 200
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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, with the spend and associated financing under credit arrangements estimated to 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 of £296.9m as at the 30 September 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 borrowing, and which exposes the Council to the effects of interest rate changes. At the 30 September 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 £1.8m 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 and the SCDG to reprofile the capital programme in response to the significant delivery related challenges. However, given the current economic and financial market volatility this will be kept under review. This current loan charge underspend is made up of: • A net treasury management saving of £1.4m is projected (£0.5m General Fund and £0.9m HRA), which is a reflection of the cashflow management techniques adopted, directing the timing of new borrowing, managing investment security, liquidity and interest rate risk. As a result, there is a net forecast reduction in loans fund interest payments and expenses. However, during the quarter short-term borrowing and investment rates have risen as detailed above therefore the forecast incorporates prudent further increases in borrowing rates for the remainder of the financial year. This will be kept under review as the financial year progresses and depending on how actual market rates perform, there may be further movements in borrowing costs compared with forecast. • 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. Page 116 of 200
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(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. Measures of success 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. However, the current financial volatility and increased borrowing costs has resulted in an assessment being undertaken of the potential impact on future years of the current capital programme. This will continue to be monitored to determine if any further review of the programme is required to ensure that it remains sustainably affordable. 4. Supporting documents 4.1 Appendix 1: Loans, Long term Liabilities & Investments as at 30 September 2022 Appendix 2: Summary of Treasury and Prudential Indicators as at quarter ended 30 September 2022 Elaine Kemp Head of Financial Solutions Page 117 of 200
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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 ☒ If Yes, please provide a brief summary of the impact? Page 118 of 200
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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 119 of 200
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LOANS , LONG TERM LIABILITIES & INVESTMENTS AS AT 30 SEPTEMBER 2022 Appendix 1 DEBT RESTRUCTURING BALANCE 1-July-22 EARLY REDEMPTION REFINANCING NEW BORROWING / LONG-TERM LIABILITIES PRINCIPAL REPAYMENTS NET CASH MOVEMENTS BALANCE 30-September-22 (1) (2) (3) (4) (5) (6) (7) LONG-TERM LOANS PWLB 406,637,037 0 0 0 (3,083,432) (3,083,432) 403,553,604.14 MONEY MARKET LOANS 67,000,000 0 0 0 0 0 67,000,000 ENERGY EFFICIENCY LOAN 1,127,687 0 0 0 (26,023) (26,023) 1,101,665 474,764,724 0 0 0 (3,109,455) (3,109,455) 471,655,269 SHORT-TERM LOANS TEMPORARY 157,000,000 0 0 68,000,000 (60,000,000) 8,000,000 165,000,000 MUNICIPAL BANK 9,097,818 0 0 0 (8,298,143) (8,298,143) 799,675 INTERNAL LOANS 6,280 0 0 0 0 0 6,280 166,104,098 0 0 68,000,000 (68,298,143) (298,143) 165,805,955 LONG -TERM LIABILITIES FINANCE LEASE OBLIGATIONS 1,556,222 0 0 0 (4,440) (4,440) 1,551,782 LONG TERM LIABILITY 170,641,142 0 0 0 (1,981,019) (1,981,019) 168,660,124 172,197,365 0 0 0 (1,985,459) (1,985,459) 170,211,906 TOTAL EXTERNAL DEBT 813,066,187 0 0 68,000,000 (73,393,057) (5,393,057) 807,673,129 INVESTMENTS THIRD PARTY ADVANCES 1,196,671 0 0 0 (9,016) (9,016) 1,187,655 BANKS & OTHER FINANCIAL INSTITUTIONS 59,306,175.77 0 0 0 0 8,685,017 67,991,192.28 BANK OVERDRAFT INCL CASH IN TRANSIT (13,541,737) 0 0 0 0 7,815,954 (5,725,783) CASH & CASH EQUIVALENTS 46,961,110 0 0 0 (9,016) 16,491,954 63,453,064 NET BORROWING 766,105,077 0 0 68,000,000 73,384,041 (21,885,012) 744,220,065 Page 120 of 200
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Summary of Treasury and Prudential Indicators as at quarter ended 30 September 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 296.5 277.0 Total spend : Credit Arrangement 0.0 0.0 Total Capital Investment 296.5 277.0 Financed By: Borrowing 207.2 160.6 Capital receipts 1.0 2.7 Capital receipts transfer to Capital Fund 0.0 -1.7 Capital Grants & Other External Contributions 61.2 82.8 Capital from Current Revenue 27.1 32.6 (b) Prudential Margin Calculation Initial Estimate 2022/2023 (£m) Projected Outturn 2022/2023 (£m) Capital Financing Requirement 1,321.8 1,241.2 Gross Borrowing 1,194.3 944.3 Prudential Margin 127.5 296.9 2. Authorised Limit and Operational Boundary Initial Authorised Limit 2022/2023 (£m) Initial Operational Boundary 2022/2023 (£m) Maximum Borrowing Level Q2 2022/2023 (£m) Borrowing 1,215.0 1,240.0 651.7 Other Long-term Liabilities 185.0 185.0 168.7 Totals 1,400.0 1,425.0 820.3 3. Treasury Management Indicators a) Interest Rate Exposures on External Interest Payments Position as at 30/09/2022 (£m) % External Interest Payable on Fixed Rate Loan Debt 25.42 98.3% External Interest Payable on Variable Rate Loan Debt 0.45 1.7% b) Loans Fund Revenue Account Initial Estimate 2022/2023 (£m) Projected Outturn 2022/2023 (£m) Variance £m) %age Loans Fund Interest Payments 30.0 29.1 0.9 3.0% Loans Fund Expenses 0.4 0.4 0.0 7.0% Total Loans Interest Payments & Expenses 30.4 29.5 0.9 3.0% Loans Funds Investment Income -0.2 -0.7 0.5 -250.0% Total Loans Fund Interest Payments Investment Income & Expenses 30.2 28.8 1.4 4.7% Allocated as follows : Loans Fund Interest Payments Investment Income & Expenses:General Fund 17.6 17.1 0.5 2.8% Loans Fund Interest Payments Investment Income & Expenses:HRA 12.6 11.7 0.9 7.1% Capital Advances Repayments - General Fund 8.8 8.7 0.1 1.1% Capital Advances Repayments - HRA 10.1 9.8 0.3 3.0% Total Capital Advances 18.9 18.5 0.4 2.1% Total Loan Charges 49.1 47.3 1.8 3.7% 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 Q2 6.8% 5.0% 12.0% 13.2% 21.1% 36.5% 5.4% Maturity structure at the end of Q2 8.7% 4.5% 12.0% 11.8% 20.5% 36.5% 5.4% Page 121 of 200
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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 30/11/22 Capital Programme 2022/23 Monitoring Report From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 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. The capital programme continues to face challenges in relation to the wider economic climate linked to availability of materials, contractors and inflationary pressures. As a result, it is currently anticipated that the General Fund programme will underspend during 2022/23 by £3.325m, with expenditure reprofiled to future years of the programme. Similarly, within the HRA programme, the current market for house sales has limited the Council’s ability to purchase the targeted number of houses through buy back schemes; resulting in slippage of £5.687m. Recommendations It is recommended that the Committee: (1) Acknowledges the financial position of the Council’s Strategic Capital Investment Programme as at 16 September 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 11 Page 123 of 200
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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. 1.4 The 2022/2023 General Services Capital Programme is £177.585m with a £108.358m 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. 1.5 Committee will be aware that the Community Investment Fund (CIF) Annual Update was presented to Policy and Strategy Committee on 29 September 2022. The report highlighted a reduction in projected CIF resources as a result of higher borrowing costs and lower than anticipated Council Tax growth. Consequently, there is a requirement to reduce the current 5-year capital investment programme by £22.076m. This has been considered by the Council’s SCDG and will be considered at Policy and Strategy Committee during Cycle 4. Once approved, SCDG will work with services to identify the profile of expenditure reductions across the remaining years of the capital programme which may have an impact on resources available during 2022/23. 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 as follows: Page 124 of 200
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Table 1 2.1.2 On a budgeted programme of £285.943m expenditure is anticipated to be £9.012m under budget at this 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 Community Capital Investment Programme Summary 2022/23 Current Programme £000s Projected Outturn £000s Outturn Variance £000s Enterprise & Communities 161,151 158,066 3,085 Chief Executives 13,930 13,930 0 Adult Health & Social Care 2,504 2,264 240 General Services: Total Capital Investment 177,585 174,260 3,325 General Services Resources: General Fund External Grants & Contributions 2021/22 57,182 57,182 0 External Grants & Contributions b/f 2020/21 7,124 7,124 0 External Grants & Contributions Unapplied 0 0 0 Net External Grants & Contributions 64,306 64,306 0 Capital Receipts 1,000 2,708 1,708 Capital Receipts -Transfer to Capital Fund 0 (1,708) (1,708) CFCR 5,422 5,422 0 General Services: Total Resources 70,728 70,728 0 General Services : Borrowing Requirement 106,857 103,532 (3,325) HRA : Total Capital Investment 108,358 102,671 5,687 HRA Resources: Net External Grants & Contributions 22,122 18,484 (3,638) Capital Receipts 0 3 3 CFCR 27,146 27,146 0 HRA : Total Resources 49,268 45,633 (3,635) HRA : Borrowing Requirement 59,090 57,038 (2,052) Summary Total Council : Capital Investment 285,943 276,931 9,012 Total Council : Resources 119,996 116,361 (3,635) Total Council : Borrowing Requirement 165,947 160,570 (5,377) Page 125 of 200
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2.2.2 The revised programme approved by the SCDG is £177.585m with total resources available to meet the current programme forecast to be £70.728m, resulting in a borrowing requirement of £106.857m. 2.2.3 In 2022/23 net external grants and contributions of £64.306m 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 £15.800m, the Place Based Investment Programme (PBIP) £2.358m, 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 £0.305m. 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 6 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 £2.708m, which is £1.708m 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 £1.000m 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 £177.585m. At Period 6, the final outturn spend is anticipated to be £3.325m under budget. This is primarily due to the investment programme continuing 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 projects outturn expenditure of £161.151m, which is £3.085m under budget. This is attributable to continuing difficulties in programme phasing and delivery timing in the Street Lighting and Parks Masterplan projects resulting in underspends of £1.469m and £0.469m respectively. Timing delays have also resulted in an underspend of £0.845m in the Network Rail project, part of the upgrading of the West Coast Main Line. Reviews are currently being carried out by the Service to identify whether existing in-year projects can be accelerated. Should this prove unsuccessful, requests to reprofile budget into 2023/24 will be made to a future meeting of the SCDG. Committed expenditure of £102.974m is currently reported, which represents 65.15% of the targeted expenditure, and actual expenditure is £36.945m. 2.2.7 Chief Executives projects total expenditure of £13.930m, which is on budget. Committed expenditure of £5.435m is currently reported, which represents 39.02% of the targeted expenditure, and actual expenditure is £3.017m. 2.2.8 Adult Health & Social Care projected outturn expenditure is £0.240m under budget. This is attributable to demand levels not returning to pre-pandemic levels and the in- year variance will be reprofiled across the remainder of the 5-year capital investment programme. Committed expenditure of £0.815m is currently reported, which represents 36.00% of the targeted expenditure, and actual expenditure is £0.693m. Page 126 of 200
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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 Committee. A summary of performance as at 16 September 2022 is provided at Appendix 3. Total expenditure of £108.358m is forecast for 2022/23 which is £5.687m under budget, attributable to lower than budgeted purchases through the Council’s Buy Back Schemes. Committed expenditure of £100.986m is currently reported, which represents 98.31% of the targeted expenditure, and actual expenditure is £38.470m. 2.4 Service Re-profiling Requests 2.4.1 As highlighted in paragraph 2.2.6, to ensure available resources more closely reflect operational activity across themes, requests within the Enterprise & Communities service to reprofile budget to future years of the programme may be required and these will be presented for approval at SCDG and will be incorporated in future reports. 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 127 of 200
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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 128 of 200
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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 129 of 200
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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 7,772 324 0 0 8,096 5,000 13,096 CFCR 4,921 500 0 0 5,421 0 5,421 22/23 re-profiling of projects to future years (14,505) (4,424) 0 0 (18,929) 0 (18,929) Revised Capital Programme 2022/23 161,151 13,930 2,504 0 177,585 108,358 285,943 Page 130 of 200
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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 @ P6 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P6 £000s Enterprise & Communities 161,151 158,066 3,085 102,974 65.15% 36,945 Chief Executives 13,930 13,930 0 5,435 39.02% 3,017 Adult Health & Social Care 2,504 2,264 240 815 36.00% 693 Total General Services Investment 177,585 174,260 3,325 109,224 62.68% 40,655 General Services Resources; External Grants & Contributions 2022/23 57,182 57,182 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 64,306 64,306 0 CFCR 5,422 5,422 0 Capital Receipts 1,000 2,708 1,708 Capital Receipts - Transfer to Capital Fund 0 (1,708) (1,708) Total Resources 70,728 70,728 0 Borrowing Requirement: General Services 106,857 103,532 (3,325) Total General Services Borrowing Requirement 106,857 103,532 (3,325) Total Resources incl Borrowing Requirement 177,585 174,260 (3,325) Page 131 of 200
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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 @ P6 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P6 £000s Mainstream Programme 57,950 57,950 0 57,242 98.78% 23,772 New Build Programme 39,436 39,436 0 39,436 100.00% 14,214 Council Buy Back Scheme 10,972 5,285 5,687 4,308 82.24% 484 Total HRA Investment 108,358 102,671 5,687 100,986 98.31% 38,470 HRA Capital Resources; External Grants & Contributions 22,122 18,484 (3,638) External Grants & Contributions Unapplied 0 0 0 Net External Grants & Contributions 22,122 18,484 (3,638) CFCR 27,146 27,146 0 Capital Receipts 0 3 3 Total Resources 49,268 45,633 (3,635) Borrowing Requirement: HRA - Mainstream 30,474 30,196 (278) HRA - New Build 21,788 23,324 1,536 HRA - Buyback Scheme 6,828 3,518 (3,310) Total Borrowing Requirement 59,090 57,038 (2,052) Total Resources incl Borrowing Requirement 108,358 102,671 (5,687) Page 132 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref NLP/IM/JMcK Date 30/11/22 North Lanarkshire Properties LLP – Performance Indicators: 13 January 2022 – 27 July 2022 and Financial Performance as at 22 July 2022 From James McKinstry, Head of Asset and Procurement Solutions E-mail martini@northlan.gov.uk Telephone Ian Martin Tel: 07966 397637 Executive Summary This report provides details of North Lanarkshire Properties LLP’s (NLP LLP) performance from 13 January 2022 to 27 July 2022 and provides an update on significant events and service delivery highlights during the reporting period. The report also provides details of the financial performance for the period from 1 April 2022 to 22 July 2022. Recommendations It is recommended that the Finance and Resources Committee: 1. Acknowledge NLP LLP’s operational performance against its 2021/22 targets for the period 13 January 2022 to 27 July 2022; 2. Acknowledge NLP LLP’s financial performance during the period from 1 April 2022 to 22 July 2022; and 3. Acknowledge the Service delivery highlights detailed within the report; 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 12 Page 133 of 200
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1. Background 1.1 NLP LLP is a limited liability partnership established in 2013 between the Council and its wholly owned company, North Lanarkshire Property Investments Ltd. It undertakes the marketing, leasing and management of the Council’s commercial property portfolio (shop units, office accommodation, business centres, industrial yards and storage units) and, on behalf of the Council, manages legacy properties which remain in the Council’s investment property portfolio. It also delivers services in relation to externally owned properties that the Council leases for its own operational use and provides general advice on lease transactions. 1.2 Governance, strategic direction and oversight of the limited liability partnership is provided by the Management Committee which comprises four elected members and one senior Council officer appointed by the Council and one member appointed by the limited company, NL Property Investments Ltd. Members to the Board of Directors of the limited company, NL Property Investments Ltd, are also appointed by the Council with five elected members and one senior officer appointed. The Management Committee meets quarterly and is responsible for ensuring NLP LLP’s services are delivered in accordance with the approved Service Level Agreement and company objectives. 1.3 The Management Committee undertook a number of measures to implement recommendations from the ALEO review completed in 2018/19, most significantly, the establishment restructure and enhancement proposals approved in February 2019. 1.4 The Management Committee at its meeting on 3 September 2020 approved a formal Minute of Variation to the SLA which included details of the of the Strategic Business Manager Support Services provided by Asset and Procurement Solutions and the associated charge of £74,000. It was also agreed that a review of this service should be completed by 31 March 2021. 1.5 At its meeting on 11 February 2021 the management Committee agreed to continue with the support services up to 31 March 2024. The service delivery model will be reviewed annually or at the request of the Management Committee to ensure that it continues to meet NLP’s requirements. 2. Report Performance Indicators 2.1 Following changes to the council’s Scheme of Administration, responsibility for oversight of service delivery by arm’s length bodies now rests with the relevant service committee. The functions delivered by NLP LLP on behalf of the council fall within the Terms of Reference of this committee and a six monthly performance report is be submitted in line with the Strategic Performance Framework considered by members in November 2019. The report will confirm where NLP LLP is fulfilling its contractual obligations and meeting the council’s service delivery expectations, as well as providing information from Financial Solutions on financial performance and overall financial standing within the company. This information will help give early warning of any financial risks which may give rise to operational or reputational risks for the council. 2.2 2022/23 Performance indicators are listed at appendix 1 along with actual performance for the period 13 January 2022 to 27 July 2022, which fulfil the reporting requirements Page 134 of 200
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agreed between the organisation and the council and further demonstrate where NLP LLP is contributing to the council’s strategic priorities. 2.3 During the reporting period a total of 41 properties were let, renewed or assigned (19 Office; 3 Retail and 19 Industrial) and there were 14 lease terminations over the corresponding period. 2.4 The percentage of vacant properties across the NLP portfolio over the corresponding period are shown at Section 12 in Appendix 1. The vacancy rates have decreased slightly from 11.55% in P13 21/22 to 10.57% in P4 22/23. This demonstrates that vacancy rates remain relatively stable coming out of the COVID-19 pandemic and in light of the current economic challenges and the position will continue to be closely monitored. Service Delivery Highlights 2.5 NLP worked jointly with Housing Services on a project at Buchanan Street/Hallcraig Street, Airdrie to refurbish the building including two retail units on the ground floor and create flats on the upper floors. The project is now complete and NLP are currently marketing the remaining retail unit for lease after successfully re-locating the existing tenant to one of the newly refurbished units. This project was key in maintaining a presence within the town centre for the retail units and NLP are supporting the existing tenant within the property who has plans to expand his own business on the back of the relocation into one of the refurbished units. 2.6 NLP worked jointly with Housing to redevelop an existing prominent building on Graham Street within Airdrie Town Centre with the former restaurant on the upper floors of the building being converted to residential use by Housing and the refurbishment of the ground floor commercial units by NLP. The project commenced June 2020 and was due for completion in June 2021, however the extent of repairs required to the building exceeded the original scope of works and this necessitated a re-design of the project, this resulted in a delay to the project which concluded in March 2022, subject to final meter connections. As part of the redevelopment four new flats were created on the upper floors and NLP have been able to alter one of the ground floor units to provide additional space for an existing tenant and secure a new lease commitment as a result. The tenant’s former premises have also now been refurbished and is currently being marketed. 2.7 NLP have partnered with NLP Growth Team to develop the existing Braidhurst Industrial Site in Motherwell. Funding in the region of £1.8m has been secured from the Scottish Government Regeneration Capital Grant Fund (RCGF) for the construction of around 10 incubator units to bring and support small to medium sized local businesses. NLC and NLP will also contribute circa £980,000 and £250,000 respectively. The project will also include the upgrading to the existing industrial units within the site and forms part of a larger project with the formation of a transport link at nearby Newhut Road and Bellshill Road. The project is currently at the design stage with works proposed to commence in early 2023. 2.8 NLP is actively supporting the Council’s Ambition Plan for Town Centre regeneration. This has taken the form of identifying properties which could be converted to residential use in Motherwell and Airdrie and which can be sold to the Council to further its plans. Page 135 of 200
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Financial Impact 2.9 Public Accountability Obligations – Financial year 2022/23 2.9.1 To satisfy the Council’s duty to ensure the organisation delivering property management services on its behalf is financially sound, the Council’s Section 95 Officer maintains appropriate and proportionate processes and procedures for scrutinising NLP LLP’s financial performance. 2.9.2 The Council’s Legal Agreements with NLP LLP specify the financial information which NLP must submit to the Council including an annual business plan, quarterly management accounts, audited financial statements etc., to enable Financial Solutions to assess and report any financial risk likely to arise as a result of the Council using NLP LLP to deliver these services. 2.9.3 The Council expends revenue resources annually with NLP LLP to deliver services which assist the Council in achieving its priority outcomes. The Council has a duty to continue to ensure this money is being properly used to deliver both the Council’s and NLP LLP’s key objectives. 2.9.4 For financial year 2022/23, the Council’s approved revenue spend includes property management services (£0.198m) and rental charges for properties utilised by the Council. 2.10 Financial Outturn to 31 March 2022 2.10.1 The 2021/22 Annual Financial Statements approved by the Board at the AGM on 30 September 2022 reported an Accounting Profit for the year of £2.395m which was a favourable variance of £1.385m against a budget of £1.010m. This was a result of increase in the annual revaluation of the property portfolio, FRS102 pension costs, increased over-recoveries within rental and grant income coupled with underspends within Supplies & Services and Admin costs. However, this has been predominately offset by increased repair charges with further details on financial performance are given on Appendix 2. 2.10.2 Appendix 3 provides key Balance Sheet balances at the 31 March 2022 along with the previous year’s comparative figures and commentary. Indicators worthy of note include: - • Current asset ratio of 2.02:1 at 31 March 2022. Values less than 1 indicate a company may have difficulty meeting current obligations. Therefore, Council representatives should be assured the company has a positive liquidity position under a continued trading operation. • Cash backed useable reserves are reviewed on an ongoing basis. 2.11 Financial Performance 1 April 2022 to 22 July 2022 2.11.1 Based on the financial performance 22 July 2022 a projected transfer out of reserves of £0.652m is reported to 31 March 2023. This is a favourable movement of £0.036m against a budgeted transfer of £0.689m. A Projected Debt Service Covenant (PDSC) of 0.68 to 1 is projected at 31 March 2023. This is in excess of the revised ratio agreed with Barclays of 0.5 to 1. As detailed in section 2.13.1 discussions are underway with Barclays to review this. Further details on financial performance are given in Appendix 4. Page 136 of 200
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2.11.2 Appendix 5 provides key Balance Sheet balances at the 22 July 2022 along with the previous year’s comparative figures and commentary. Indicators worthy of note include: - • Current asset ratio of 2.57:1 at 22 July 2022 which indicates that the company continues to have positive liquidity under its continued operating trading. • As per 2.10.2 cash backed useable reserves are reviewed each period. 2.12 Projected Cashflow to July 2023 2.12.1 Appendix 6 provides the projected cashflow to 31 July 2023. The minimum balance of cash projected to be held was £6.464m in July 2022. This demonstrates that NLP will continue to hold sufficient levels of cash. 2.13 Bank Covenant 2.13.1 Barclays Bank consented to relax the bank covenant ratio from 1 to 1 to 0.5 to 1 until 30 September 2022. In recognition of the current cost of living crisis NLP are entering into discussions with Barclays Bank with a view to extend the reduction in the covenant to the end of the loan agreement. 2.13.2 NLC continue to monitor NLP financial performance closely with updates provided to the Corporate Management Team. 3. Measures of success 3.1 The financial position of the company is being monitored closely and the temporary reduction in the covenant ratio to the end of the loan agreement will ensure that NLP LLP will continue to meet its loan obligations. 3.2 The successful completion of the joint projects at Buchanan Street/Hallcraig Street, Airdrie and Graham Street, Airdrie provides new social housing and refurbished commercial space for rent. 3.2 The re-development of Braidhurst Industrial Estate will provide new and refurbished industrial units for let, supporting new and expanding business and contributing to the overall vision for the area. 4. Supporting documentation Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Performance Update – 13 January 2022 to 27 July 2022 Financial Outturn to 31 March 2021 Overall Financial Standing – Balance Sheet as at 31 March 2022 Financial Performance Year to Date 22nd July 2022 Overall Financial Standing – Balance Sheet as at 22nd July 2022 NLP Cash Flow Forecast to July 2023 Page 137 of 200
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James McKinstry Head of Asset and Procurement Solutions Page 138 of 200
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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 financial performance of NLP is closely monitored by the council’s Section 95 Officer and the financial performance from 1 April 2022 to 22 July 2022 along with other key financial information detailed within the report. As part of the audit process, NLC confirmed that they will provide additional financial support if required. 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 139 of 200
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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 140 of 200
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North Lanarkshire Properties LLP Appendix 2 Outturn to 31 March 2022 Income & expenditure 2022 2022 2022 Commentary Annual Budget Actual Outturn Variance £m £m £m Rental, SLA income and Insurance Income 6.215 6.349 0.134 Favourable variance due to proactive approach in relation to rental income Investment and other income (0.060) (0.106) (0.046) Adverse variance in relation to proceeds received from Motherwell Town Hall. Total Income 6.155 6.243 0.088 Expenditure; Employee costs (0.645) (0.666) (0.021) Minor adverse variance. Property Costs (1.926) (2.711) (0.784) Adverse variance primarily as a result of increased repairs charges. Supplies & Services & Admin Costs (0.677) (0.510) 0.168 Favourable variance is largely due to decrease in bad debt provision coupled with minor underspends within other budget headings. Financing Costs (1.896) (1.905) (0.008) Total Expenditure (5.145) (5.791) (0.646) Trading Profit 1.010 0.452 (0.558) Year end Accounting adjustments not included in budget (No Covenant impact): Grant Income 0.000 0.232 0.232 Grant Funding for construction of Orbiston Industrial Units FRS102 pension costs 0.000 0.567 0.567 Provided by Strathclyde Pension Office Unrealised gain/(loss) on investment portfolio 0.000 1.144 1.144 Accounting Profit 1.010 2.395 1.385 Loan Principal Repayments (1.258) (1.258) 0.000 Profit Transferred to/(out) Reserves (0.248) 1.137 1.385 Covenant Ratio based on Cash Flow 1.05 1.05 Page 145 of 200
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North Lanarkshire Properties LLP Appendix 3 Overall Financial Standing - Balance Sheet as at 31 March 2022 Balances/ Indicator As at 31 March 2022 As At 31 March 2021 Variance Commentary £m £m £m Fixed Assets 68.946 68.735 0.210 Cost of Construction offset by sales and revaluations Current Assets: Trade Debtors 1.113 1.120 (0.007) Decrease year on year due to timing of payments and COVID impact Bad Debt Provision (0.274) (0.401) 0.127 Decrease primarily relates to a reduced provision within COVID related debt Prepayment and Other Debtors 0.000 1.366 (1.366) 31 March 2021 balance contains COVID grant debtor £0.300m, Orbiston Grant Monies due £0.786m Bank and short term investments 9.101 7.133 1.968 Increased rental income as part of Covid recovery plan 9.941 9.218 0.933 Current Liabilities: Creditors (2.610) (2.276) (0.334) Increase in creditors balances at year end Other Creditors inc. VAT & other taxes (0.946) (1.035) 0.089 Decrease in VAT liability at year end offset by minor movements within Other Creditors Loan payments due in <1 yr (1.376) (1.258) (0.118) Loan Repayment Schedule agreed with bank (4.932) (4.568) (0.363) Net current Assets/(liabilities) 5.009 4.650 0.359 Loan repayments due in > 1 yr (33.686) (35.062) 1.376 Loan Repayment Schedule agreed with bank Defined scheme pensions liabilities 0.000 (0.449) 0.449 Per Strathclyde Pension Office Net Asset / (Liabilities) 40.268 37.874 2.394 Current Ratio 2.02 2.02 A current ratio exceeding 1 indicates the company has sufficient resources to meet its current commitments. Page 146 of 200
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North Lanarkshire Properties LLP Appendix 4 Year to date 22 July 2022 Income & expenditure 2022/23 2022/23 Year to date 2022/23 2022/23 Commentary:- 2022/23 Annual Budget vrs 2022/23 Projected Outturn Annual Budget Budget Actual Variance Projected Outturn Variance £m £m £m £m £m £m Rental, SLA income and Insurance Income 6.104 1.967 1.983 0.016 6.103 (0.001) Investment and other income 0.000 0 0 0.159 0.001 0.001 Total Income 6.104 1.967 2.142 0.174 6.104 0.000 Expenditure; Employee costs (0.662) (0.169) (0.167) 0.002 (0.626) 0.036 Favourable variance is short term vacancies Property Costs (1.905) (0.239) (0.431) (0.192) (1.905) 0.000 Supplies & Services & Admin Costs (0.689) (0.137) (0.121) 0.017 (0.689) 0.000 Financing Costs (1.817) (0.430) (0.421) 0.009 (1.817) 0.000 Total Expenditure (5.073) (0.975) (1.139) (0.164) (5.036) 0.036 Trading Profit 1.031 0.992 1.002 0.010 1.068 0.036 Loan Principal Repayments (1.720) (0.348) (0.348) 0.000 (1.720) 0.000 Profit Transferred to/(out) Reserves (0.689) 0.644 0.654 0.010 (0.652) 0.036 Covenant Ratio based on Cash Flow 0.68 0.68 Page 147 of 200
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North Lanarkshire Properties LLP Appendix 5 Overall Financial Standing - Balance Sheet as at 22 July 2022 Balances/ Indicator As at 22 July 2022 As At 31 March 2022 Variance Commentary £m £m £m Fixed Assets 68.946 68.946 0.000 Current Assets: Trade Debtors 1.020 1.113 (0.094) Timing of payments received Bad Debt Provision (0.274) (0.274) 0.000 Prepayment and Other Debtors 0.000 0.000 0.000 Bank and short term investments 8.482 9.101 (0.618) Timing differences 9.228 9.941 (0.712) Current Liabilities: Creditors (1.651) (2.610) 0.959 Part year charges Other Creditors inc. VAT & other taxes (0.539) (0.946) 0.407 Year end prepaid income adjustments now cleared Loan payments due in <1 yr (1.407) (1.376) (0.031) Loan Repayment Schedule agreed with bank (3.596) (4.932) 1.335 Net current Assets/(liabilities) 5.632 5.009 0.623 Loan repayments due in > 1 yr (33.307) (33.686) 0.379 Loan Repayment Schedule agreed with bank Defined scheme pensions liabilities 0.000 0.000 0.000 Net Asset / (Liabilities) 41.271 40.268 1.002 Current Ratio 2.57 2.02 A current ratio exceeding 1 indicates the company has sufficient resources to meet its current commitments. Page 148 of 200
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Appendix 6 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Balance -£m NLP Cash Flow Forecast to July 2023 Operating Accts Rental Acct Debt Service Reserve Acct Total Balances Short Term Investments Page 149 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref AK/IM/JM Date 30/11/22 Proposed Sub Station at Cliffvale Road, Chryston From James McKinstry, Head of Asset and Procurement Solutions E-mail martini@northlan.gov.uk Telephone Ian Martin 07966 397637 Executive Summary The purpose of this report is to seek Committee approval for a lease to SP Distribution PLC for an electrical substation and associated servitude for cables, pedestrian and vehicular rights of access on land at Cliffvale Road, Chryston. Recommendations It is recommended that the Finance and Resources Committee: (1) Agrees to grant a new lease to SP Distribution PLC or their nominees for a substation and associated servitude for cables, pedestrian and vehicular rights of access on land at Cliffvale Road, Chryston on the terms detailed within this report; and (2) All other terms and conditions 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 13 Page 151 of 200
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1. Background 1.1 An electrical substation is required to provide a sustainable electricity supply to the new Chryston Primary School, and Chryston Community Health Centre at Cliffvale Road, Chryston which is currently under construction. 1.2 Provisional agreement has been reached between North Lanarkshire Council and SP Distribution PLC for a 175 year lease. 2. Description 2.1 The substation is to be sited within an area of amenity land at Cliffvale Road as shown on the attached plan. 2.1.1 The proposed area to be leased extends to 25 square metres (269 sq.ft.) or thereby. 2.1.2 A servitude right of access for cables, pedestrian and vehicular access to the substation will be taken from Cliffvale Road. 2.2 Lease proposal A provisional agreement has been reached with SP Distribution PLC on the following terms and conditions: 2.2.1 Rent: £1 per annum (if asked). 2.2.2 Date of Entry: Upon conclusion of missives or as agreed between the parties. 2.2.3 Term: 175 years. 2.2.4 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 Chryston Primary School, and Chryston Community Health Centre. 4. Supporting documentation 4.1 Location Plan Appendix A James McKinstry Head of Asset and Procurement Solutions Page 152 of 200
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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? The lease is a legally binding contract between two parties under Scots Law. 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 153 of 200
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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? Page 154 of 200
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Appendix A Page 155 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref AM/IM Date 30/11/22 Proposed Sub Station at Netherton Road, Wishaw From James McKinstry, Head of Asset and Procurement Solutions E-mail martini@northlan.gov.uk Telephone Ian Martin 07966 397637 Executive Summary The purpose of this report is to seek Committee approval for a lease to SP Distribution PLC for an electrical substation and associated servitude for cables, pedestrian and vehicular rights of access on land at Netherton Road, Wishaw. Recommendations It is recommended that the Finance and Resources Committee: (1) Agrees to grant a new lease to SP Distribution PLC or their nominees for a substation and associated servitude for cables, pedestrian and vehicular rights of access on land at Netherton Road, Wishaw on the terms detailed within this report; and (2) All other terms and conditions 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 14 Page 157 of 200
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1. Background 1.1 The proposed new electrical substation is a replacement for an existing substation located nearby. Scottish Power have confirmed that the equipment within the existing substation is coming to the end of its economic lifespan. 1.2 The site at Netherton Road has been identified by Scottish Power as being suitable for the new substation to ensure a smooth transition of the electrical supply to residents and businesses within the Netherton area. 1.3 Provisional agreement has been reached between North Lanarkshire Council and SP Distribution PLC for a 175 year lease. 2. Report 2.1 The substation is to be sited within an area of amenity land at Netherton Road, as shown on the attached plan. 2.1.2 The proposed area to be leased extends to 25 square metres (269 sq. ft.) or thereby. 2.1.3 A servitude right of access for cables, pedestrian and vehicular access to the substation will be taken from Netherton Road. 2.2 Lease Proposal A provisional agreement has been reached with SP Distribution PLC on the following terms and conditions: 2.2.1 Rent: £150 per annum. 2.2.2 Date of Entry: Upon conclusion of missives or as agreed between the parties 2.2.3 Term: 175 years 2.2.4 Rent Review: Five yearly 2.2.5 Legal Costs: The tenant will meet the costs of both parties reasonably incurred legal fees. 3. Measures of success 3.1 Provision of a sustainable electrical supply to the residents and businesses within the Netherton area of Wishaw. 4. Supporting documentation Appendix 1 – Location Plan Page 158 of 200
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James McKinstry Head of Asset and Procurement Solutions Page 159 of 200
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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? It is considered good estate management practice to secure good tenants on long term leases and therefore this proposal is of benefit to the Council in revenue terms. 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 160 of 200
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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? Page 161 of 200
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Appendix 1 Page 162 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref IM/JMcK Date 30/11/22 Pavilion, Sports Pitch and Ancillary Ground at Deerdykes Place, Cumbernauld From James McKinstry, Head of Asset & Procurement Solutions E-mail martini@northlan.gov.uk Telephone Ian Martin 07966 397637 Executive Summary The purpose of this report is to seek consent to declare the pavilion, sports pitch and ancillary land at Deerdykes Place, Cumbernauld surplus to Council requirements. The ground occupied by the pavilion and sports pitch have been designated as “proposed business site” within the North Lanarkshire Local Development Plan, which was adopted on 6 July 2022. This ground could therefore be used for expansion of the existing adjacent industrial estate into this area, subject to relevant statutory consents being obtained. Recommendations It is recommended that the Finance and Resources Committee: (1) Consider the contents of this report. (2) Note that an objection been received from a Local Elected Member and a response is detailed in section 2.3.1. (3) Agree the proposal to declare the pavilion, sports pitch and ancillary land surplus to Council requirements and refer the matter to the Council’s Estates Team to determine the future use of the site. 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 15 Page 163 of 200
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1. Background 1.1 The sports pitch and adjacent land at Deerdykes Place, Cumbernauld occupy an area of land extending to 8.12 acres or thereby, identified on the plan at Appendix 1 in this report. 1.2 The pavilion is currently in a state of disrepair. The sports pitch is a blaes pitch and therefore does not meet current standards for sports pitch provision, per Sportscotland guidance. The blaes pitch has not been used through a formal booking in several years and was compromised to some extent by the widening of the M80 Motorway a number of years ago when some of the land to the eastern end of the pitch was acquired by Scottish Ministers for road upgrades. 1.3 The Council’s Estates team promoted re-designation of this unused site through the Call for Sites exercise as part the North Lanarkshire Local Development Plan process. The site was subsequently successfully designated as “proposed business site” within the new North Lanarkshire Local Development Plan which was adopted on 6 July 2022. It could therefore potentially allow expansion of the industrial estate into this area, subject to relevant planning and building consents being obtained. 1.4 Sale of the ground by the Council has the potential to realise a significant capital receipt and would result in investment and further employment opportunities in the Cumbernauld area. 1.5 A local business has already expressed an interest in acquisition of this site to allow expansion of their existing business, with the potential for job creation. 2. Report 2.1 The pavilion, sports pitches and adjacent ground are not considered to be of current or future use to Active & Creative Communities. They are therefore surplus to the requirements of Active & Creative Communities. 2.2 The Council’s Estates Team have received some initial interest in the ground being developed for expansion of the industrial estate. 2.3 Local Members within the Council Ward in which the land is located have been consulted on the proposal to declare the pavilion, pitch and ground surplus to the requirements of Active & Creative Communities. One local Member has objected to the proposal to declare the property and land surplus to requirements and therefore the matter requires to be remitted to the Council’s Finance & Resources Committee to determine whether to declare the land surplus to Council requirements or not. 2.3.1 A summary of the Member concerns and responses to these points are detailed below. • Loss of green space, suggestion to conserve the area and link it to Broadwood Loch. Loss of habitat for wildlife. A significant portion of the site is red blaes. The site is physically separated from Broadwood Loch by Westfield Industrial Estate and Westfield Road. It is acknowledged that there would be loss of open space if the site were to be developed. However, the Council’s Planning Service would consider this against the relevant planning policy and any loss of trees (for example) could be addressed by way of a scheme of compensatory planting on the remaining adjacent ground. Page 164 of 200
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• Lack of quality play spaces for local children and potential for the site ground to be developed as a play area, rather than more industrial units. The Council’s Planning Service would have considered the amount of open space and play areas available in the locality when designating the site for business use in the Local Development Plan. • Availability of existing industrial units in the area which are not fully occupied, therefore why should more be built and take away green space. The industrial property market is currently buoyant, and availability of good industrial land for development is at a premium. A local company has already expressed interest in the site thereby promoting local business growth and potential employment in the town. However, this would be considered separately to this consultation process. • The pitch has been allowed to deteriorate over many years. Local amateur football clubs are struggling to find space for lets, could the Council partner with clubs to invest and bring it back into use? Being red blaes, the pitch was already infrequently used when the Scottish Ministers compulsorily acquired adjacent land from the Council to allow the A80/M80 upgrade in 2010, thereby reducing the circulation space around the Eastern edge of the pitch. It is understood that the pitch has been unused since. As noted at 2.1 above, the pavilion, sports pitch and adjacent ground are not considered to be of current or future use to Active & Creative Communities. • There are long waiting lists for allotments and the Scottish Government have an emphasis on the food growing strategy. Has any consideration has been given to the suitability of this land for community allotments? Since the site has been promoted as suitable for business use through the Local Development Plan, and successfully designated as such, the use of the site as allotments has not been considered. However, the officer who works on the Council’s food growing strategy is currently working with the Council’s property teams to identify a potentially suitable site within Cumbernauld for allotments to support the food growing strategy. 2.4 Comments and an objection to the surplus proposal were also received jointly from an MSP and MP. It should be noted that this is not as a result of consultation, since only Local Members are consulted as part of the surplus process. However, for transparency these concerns are detailed, along with responses and proposed mitigation where appropriate. • The land should not be used as Business Space. The sites were designated as suitable for Business Space in the new Local Development Plan, adopted in July 2022. As part of the LDP process, the council’s planning service undertook detailed and thorough consultations in relation to proposed uses. The sale of the land for a business use will enable and support business growth and expansion by way of investment in the local economy, with the potential to create additional jobs. Page 165 of 200
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• The land should be retained for leisure use, preferably allotments. Cumbernauld already offers allotments in Cumbernauld Village, at Cumbernauld Town Park and at Cumbernauld House. The council’s officer who works on the council’s food growing strategy is currently working with the council’s property teams to identify a potentially suitable site within Cumbernauld for allotments to support the food growing strategy. • Other leisure uses such as grass or astroturf pitch, or a community garden, should be considered. All of the above will require significant capital investment. Sale of the land will generate a capital receipt to the council. In determining the site as suitable for a business use, the council’s planning service will have considered existing levels of green space and pitch provision. 3. Measures of success 3.1 The future sale of the land by the Council with a view to expansion of the industrial estate in order to enable additional investment and employment opportunities in the Cumbernauld area, in addition to generating a capital receipt to the council. 4. Supporting documentation 4.1 Appendix 1 – Location Plan James McKinstry Head of Asset & Procurement Solutions Page 166 of 200
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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? If the land were to be sold this would generate a significant capital receipt to the council. 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 167 of 200
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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? Development of the site would result in some loss of open space and trees. The loss of trees could be addressed by way of a scheme of compensatory planting to enhance the biodiversity of the remaining adjacent land. 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 168 of 200
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Appendix 1 – Location Plan Page 169 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref: NLC-CPT-22-053 Date: 30 November 2022 Contract Award for BEMS (Building Energy Management System) Servicing & Maintenance 2023-2026 From James McKinstry, Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone Chris Sullivan (Strategic Asset Manager, 07939 280579 Executive Summary Committee is asked to approve the award of a contract for BEMS (Building Energy Management System) Servicing & Maintenance 2023-2026 (the ‘Contract’) to Chartwell Limited. The Contract is for an initial period of 24 months anticipated to commence on 23 January 2023. The Council reserves the right to extend the Contract for additional periods up to a maximum of a further 12 months. The value of the Contract shall not exceed Eight Hundred and Twenty-Five Thousand Pounds Sterling (£825,000) exclusive of VAT, including any extension periods. Recommendations It is recommended that Committee approves the award of the Contract to Chartwell Limited at the maximum value of Eight Hundred and Twenty-Five Thousand Pounds Sterling (£825,000) exclusive of VAT. This recommendation follows the completion of a 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 (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions AGENDA ITEM 16 Page 171 of 200
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1. Background 1.1 The requirements within the Contract were previously under contract with Trend Control Systems Limited. This contract was terminated early by Trend Control Systems Limited on 21 September 2022; under the terms of the contract 3 months’ notice was provided of this decision. The contractor is closing all their UK engineering offices by 31 December 2022 and will no longer be providing maintenance services. 1.2 The Contract detailed within this report is due to supersede it. Short-term alternative arrangements have been put in place to cover the period from when the previous contract ended, and for when the new Contract is due to commence. 1.3 The Council has a requirement to service and maintain its existing suite of Building Energy Management Systems (BEMS). BEMS is a computer-based system (linked to various pieces of hardware throughout a building) that controls and monitors mechanical and electrical equipment such as heating, ventilation, lighting, and power systems. 1.4 The work within the Contract includes the provision of servicing & maintenance support to cover the Council’s BEMS network, including Active & Creative Communities properties, to include the existing 156 systems that are currently in operation throughout various sites within the Council’s corporate portfolio, including schools, office accommodation, and community & leisure centres. 1.5 The requirement will also cover a proposal for six (6) systems that the Council intends to procure over the coming years, along with any other new installs within the Contract period as well as a phased programme of upgrading a number of the Councils older / outdated systems to more advanced current technology. Upgrades and maintenance of existing front- end software will be also required, including any future front-end software installations. 1.6 The Contract will also include scheduled on-site maintenance visits and 24/7 off-site response and support. 2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives from the Asset & Procurement Service 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. An advert for the contract opportunity was published on the Public Contracts Scotland and the UK Find a Tender (FTS) website. 2.3 The procurement procedure was undertaken as an “Open Procedure” Based on the evaluation criteria and scoring methodology set out in the invitation to tender package within the procurement procedure, an evaluation of tender responses was completed by members identified by the UIG. Selection stage responses were assessed first and compliant tenderers that satisfied / declared that they met the published minimum selection stage criteria progressed to the award stage evaluation. Following identification of the recommended Page 172 of 200
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tenderer(s), their selection stage responses were assessed in more detail to ensure they satisfied the minimum selection stage criteria applied 2.4 The Contract award recommendation is made on the basis of the tenderer who submitted the most economically advantageous tender. 2.5 The tender submitted by Chartwell Limited has been evaluated as representing the most economically advantageous tender for this Contract. 2.6 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. 2.7 The value of the Contract is Eight Hundred and Twenty Five Thousand Pounds Sterling (£825,000) exclusive of VAT including any option to extend the Contract. 2.8 The costs associated with contract delivery will be contained within the revenue and capital budgets for Asset and Procurement Solutions. Price Savings / Increases 2.9 When compared against historic contracts, there is a 2% increase on the rates provided for cyclical inspection, servicing, maintenance and reporting on an annual basis to all plant, equipment and components relating to the BEMS at various sites. Price Stability 2.10 The rates provided are fixed for the duration of the Contract. Community Benefits 2.11.1 The Council is committed to maximising the delivery of community benefits. The procurement included a community benefit requirement, this approach is designed to deliver local community benefits where possible. 2.11.2 Within their tender, Chartwell Limited committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed Educational Visits 4 Business Event / Briefing to promote supply chain opportunities 1 Fair Work First 2.12 Within their tender submission, Chartwell Limited advised that they will commit to the following areas of the Scottish Governments “Fair Work First” initiative: Page 173 of 200
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• No inappropriate use of zero hour contracts; • Payment of the real Living Wage; and • Investment in workforce development. Contract Strategy 2.13 Officers from Asset and Procurement Solutions will be responsible for managing the Contract which will be undertaken in accordance with the Councils agreed approach to contract and supplier management. 3. Measures of success The Contract will deliver the following outcomes; 3.1 the appointment of a service provider who has the experience and capability to deliver an innovative, high quality and responsive service; 3.2 the contract award procedure is compliant with the procurement legislation and internal procedures; 3.3 that best value is both demonstrable and achieved; 3.4 that the Contract secures a range of community benefits; 3.5 that the Contract supports payment of the living wage to staff employed in the delivery of the Contract; 3.6 that the Contract performance is proactively managed against a number of Key Performance Indicators; and 3.7 a collaborative approach to the procurement of the requirement, minimising the burden on internal resource and leveraging the economies of scale. 4. Supporting documents Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process Appendix 3 SME Status and Location of All Tenderers James McKinstry Head of Asset & Procurement Solutions Page 174 of 200
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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 maximum value of the Contract is £825,000.00 exclusive of VAT including any option to extend the Contract. The Council does not warrant or guarantee the amount of the total value of the Contract, this amount is indicative only. The costs associated with contract delivery will be contained within the revenue and capital budgets for Asset and Procurement Solutions. 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 ☒ Page 175 of 200
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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? This contract will ensure the installed heating control systems operate correctly and assist in reducing energy costs and consumption in operational buildings. 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ Page 176 of 200
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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? A contract specific risk register is contained within the Contract Strategy and will be managed by the service throughout the lifecycle of the Contract. Page 177 of 200
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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 Chartwell Limited 86.71% Y 2 ABEC Limited 84.80% N 3 Laplace Building Solutions (South) 84.48% N 4 E.ON Control Solutions Limited 83.14% N 5 Enterprise Controls Systems 82.66% N 6 Kendra Energy Solutions Limited 80.58% N Page 178 of 200
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 05 August 2022 Date Contract Notice Published: 05 August 2022 Total Expressions of Interest Received: 18 SME % of Expressions of Interest: 43.8% NLC Based % of Expressions of Interest: 0% Tender Return Deadline: 09 September 2022 Number of Tenders Received: 6 Tenders Received from SME’s: 6 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 6 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 60% Price: 40% Evaluation Team: Staff from Enterprise and Communities Anticipated Contract Start Date: 23 January 2023 Total Contract Period (Months): 36 Maximum Total Contract Value: £825,000 Page 179 of 200
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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) ABEC Limited SME Gloucestershire Chartwell Limited SME Kent E.ON Control Solutions Limited SME Glasgow Enterprise Controls Systems SME Glasgow Kendra Energy Solutions Limited SME Glasgow Laplace Building Solutions (South) SME Berkshire Page 180 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref: BF/JMcK Date: 30 November 2022 Contract Award Proposals for Repair and Maintenance of Catering Equipment From James McKinstry, Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone 07939 281102 Executive Summary Committee is asked to approve Facility Support Services to award call-off contracts from the Scotland Excel Framework for ‘Repair and Maintenance of Catering Equipment’. The new framework was established for the period 07/05/2022 until 30/04/2025, with an option to extend by twelve months until 30/04/2026. The Council’s anticipated spend over the maximum period of the Framework (30/04/2026) is: • Lot 1 Commercial Gas - £ 67,745 • Lot 2 Electrical - £750,650 • Lot 3 Refrigeration - £ 274,255 The total spend is £ 1,092,650 however the values are indicative only and actual spend will depend on the performance of the existing equipment. Recommendations It is recommended that Committee approves Facility Support Service’s proposals to call-off future requirements for Repair and Maintenance of Catering Equipment from the Scotland Excel framework. This recommendation is based on the framework being established as a National, collaboratively procured arrangement that was competitively tendered and setup to meet the requirements of the Council (and other Scotland Excel members). The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition Statement (22) Facilitate a North Lanarkshire wide approach to asset rationalisation, including with communities and partners AGENDA ITEM 17 Page 181 of 200
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1. Background 1.1. Scotland Excel has a delivery plan to lead a range of procurements that establish collaborative Framework Agreements that are relevant for use by the bulk of its members, particularly Scottish Local Authorities. The delivery plan includes multiple Framework Agreements for supplies and services that provide a compliant route to market for members to purchase the various requirements for the operation of their general business services. 1.2. The Council participated with Scotland Excel in the procurement activity to establish the collaborative Framework Agreement for ‘Repair and Maintenance of Catering Equipment ref. 1921’ (the “Framework”), which covers the period 07/05/2022 until 30/04/2025. Scotland Excel reserve the option to extend the Framework until 30/04/2026. 1.3. The Framework has three lots for repairs; 1. Commercial Gas, 2. Electric and 3. Refrigeration. 1.4. While ten Contractors were appointed to the Framework, one Contractor does not have the ability, due to location, to serve in North Lanarkshire. The Contractors who can serve North Lanarkshire are listed below in alphabetical order, with ‘Yes’ indicating the Lots that they are appointed to: Framework Contractor Lot 1 Lot 2 Lot 3 C & M Environmental Limited. No No Yes Catering Supplies & Repairs Company Limited Yes Yes Yes Fast Fixx Catering Engineers Limited Yes Yes Yes Fusion CLC Limited Yes Yes No ITW Limited Yes Yes Yes Lovat's Catering Engineering Services Limited Yes Yes Yes Merchant City Refrigeration (Scotland) Ltd No No Yes ScoMac Catering Equipment Limited Yes Yes Yes Scott Pollock t/a A1 Repairs Yes Yes Yes 1.5. Contractors have been ranked in the respective Lots by overall their tender score, which makes it easy for Council’s to identify the order of Contractors to use. 1.6. The Framework is now live and available for the Council to use for new requirements. 2. Report 2.1. The Council’s most recent call-off contracts for Repair and Maintenance of Catering Equipment ends 30/11/2022. 2.2. To maintain compliance with the Procurement Regulations and the Council’s General Contract Standing orders, approval is sought to call-off new requirements from the latest Scotland Excel Framework, with commencement date of 01/12/2022. 2.3. The Council’s anticipated spend over the maximum period of the Framework (30/04/2026) is: • Lot 1 Commercial Gas - £ 67,745 • Lot 2 Electrical - £750,650 • Lot 3 Refrigeration - £ 274,255 The total spend is £ 1,092,650 however the values are indicative only and actual spend will depend on the performance of the existing equipment. Page 182 of 200
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2.4. Call-off contracts would be made to the Contractors in each Lot that represent best value to the Council; initially this will made as direct awards to the Contractors who are ranked 1 on the respective Lots, subject to capacity and ability to serve. If necessary, the next ranked Contractor(s) may be used to ensure timely completion of repairs and minimise any service disruption and downtime. 2.5. All call-off contracts will be made under the terms, conditions and pricing set by the Framework Agreement. 2.6. The call-off contract spend with the various Framework Contractors will be published in the Council’s Annual Procurement Reports. Price Stability 2.7. The standard terms and conditions of frameworks established by Scotland Excel include provision for price reviews with Framework Contractors; this process is managed by Scotland Excel. Community Benefits 2.8. Provision of community benefits are built into the establishment of Scotland Excel frameworks and delivered at a national level. Contract Management 2.9. Officers from Facility Support Services will be responsible for managing the call-off contracts which will be undertaken in accordance with the requirements set out in General Contract Standing Orders. 3. Measures of success The Call-off Contracts will deliver the following outcomes: • Compliance with Procurement Regulations and General Contract Standing Orders • Best value for the Council, including competitive pricing for the various services 4. Supporting documents None. James McKinstry Head of Asset and Procurement Solutions Page 183 of 200
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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 estimated total value of all call-off contracts from 01/12/2022 until Framework end date 30/04/2026 is £1,092,650 exclusive of VAT. The Council does not warrant or guarantee the amount of the expenditure under the call-offs, the amounts are indicative only. The costs associated with contract delivery will be contained within the revenue budget for Facility Support Services. 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)? Page 184 of 200
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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? 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ Page 185 of 200
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If Yes, please provide a brief summary of the impact? 5.9 Risk Impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The terms and conditions of the Frameworks provide a facility for Framework Contractors to seek ‘price review’. Any applications for price increase are carefully managed by the Framework owner Scotland Excel and the Council (and other members) are notified on the outcomes of these. Page 186 of 200
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref JMcG/JMcK Date 30/11/22 Contracts with Variations From James McKinstry, Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone 07939281102 1. 2. 3. Executive Summary In accordance with the Council’s Financial Regulations, this report notifies the Committee of contracts completed between 1st April 2022 and 21st October 2022, where the expenditure levels have exceeded the contract award levels by greater than 5% or £25,000. Recommendations It is recommended that the Finance and Resources Committee: • acknowledges the content of this report and the accompanying appendix. 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 18 Page 187 of 200
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1. Background 1.1 The Councils General Contract Standing Orders (the ‘GCSOs’) outline financial approval thresholds for contracts for goods, works and services. This report details Works (construction contracts) for above £5,000 but less than £2,000,000 where funding has previously been approved in line with GCSO’s. 1.2 The Councils Financial Regulation, (13.4) Significant Variations, details the threshold of variances where reporting is required. 1.3 The Head of Asset and Procurement Solutions is required to notify Committee on a periodic basis of any such contracts containing variations as identified by the criteria in 1.1 above. 2. Report 2.1 The Councils Financial Regulation state, any variations where the outturn/expected costs exceed the tendered contract price by the higher of £25,000 or 5%, or where the outputs/outcomes achieved by the expenditure differ from those originally envisaged, shall be reported by the Executive Director or appropriate Officer to the relevant Spending Committee at the earliest opportunity. 2.2 Contracts awarded by the Head of Asset and Procurement Solutions under the £2,000,000 Committee financial approval threshold for works in the period 1st February 2021 and 31st March 2021 containing variations are detailed in Appendix.1. 2.3 Due to the nature of construction contracts a flexible approach is required to manage contract deliverables and desired outcomes and typically this is achieved by the inclusion of a contingency allowance to address unknown quantities or abnormalities. 2.4 Any construction works undertaken within the Council’s portfolio may encounter issues that can result in additional costs after work has commenced. The global pandemic resulted in additional costs associated with the nationwide restrictions on construction works, whilst the war in Ukraine drove up the cost of construction materials including the price of steel and timber; asbestos is problematic and costly to address, especially within the Council’s ageing property estate. The rerouting of service provisions is another contributing factor with other expenditure being attributed to health and safety issues including addressing fire stopping issues, rot treatment, contractual claims (exacerbated by COVID19). Additional client instructions being added to the contract following contract award will also increase the overall contract sum, but it should be noted that the scope of these instructions will be within the parameters of the original tender documents and; rates will be a direct drawdown from those already provided or a benchmarking exercise is undertaken to demonstrate value for money. 3. Measures of success 3.1 Contracts support the delivery of Council and service priorities. 3.2 Robust contract monitoring with detailed documentation outlining variance’s that is fully transparent and auditable. Page 188 of 200
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3.3 Contractors supplier management processes, fully aligned with the Councils Financial Regulation, GCSO and procurement legislation. 3.4 Contracts containing variances are managed by the Council and are compliant with Financial Regulations, GCSOs and procurement legislation. 3.5 The Council’s Contract Register and budgetary monitoring systems are kept updated by services and management information is comprehensive and accurate. 3.6 Best Value is both demonstrable and achieved. 4. Supporting documentation 4.1 Appendix 1 – Summary of construction contracts containing variations. James McKinstry Head of Asset and Procurement Solutions Page 189 of 200
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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? All variances will be managed from the current 5 year Capital Plan. 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 190 of 200
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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? Page 191 of 200
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Appendix 1 – Summary of construction contracts containing variations Project Title Final Out- turn Tender Amount Variation Reason Re-roofing - Muirhouse Primary School, Motherwell £504,657 £478,224 Additional essential works to roof finishes were required, including renewal of the existing fascia's and soffits and their underlaying support timbers. Motherwell, Our Lady High School - PE Changing Facilities, £504,292 £384,284 On-site investigations confirmed problems with the existing underground drainage system, resulting in unavoidable renewal and repair work to the affected system lines. Other additional works included installation of additional firestopping at wall heads and new structural bracing for internal walls at high level. Motherwell, Forgewood Bin Project £173,160 £132,726 Complex localised access issues resulted in payment of additional time charges. Additional works were also required to regrade kerb lines with existing road finishes. Motherwell Library - Electrical Rewire and Redecoration £479,407 £446,626 Price fluctuations for materials were agreed, mostly around copper prices which had spiked around this time. Additional Nursery Provision: 1140 Hours Programme -Shawhead Primary School, Coatbridge (LLEY17099) £613,000 £577,808 Extension of time required due to delays in sourcing products as a direct result of Covid and additional drainage requirement to address the increased capacity to school, Airdrie - Chapelhall FLC - New Build- (LLEY19049) £1,321,137 £1,259,221 Covid alterations and additional localised minor works required at the request of Care Commission including; screens to reception desks, Virgin media cabling & ducting, small power & data changes, addition of push plates to external gates. Airdrie - Petersburn FLC - New Build- (LLEY19045) £1,730,834 £1,705,039 Covid alterations and additional localised minor works required at the request of Care Commission including; screens to reception desks, Virgin media cabling & ducting, small power & data changes, addition of push plates to external gates. Motherwell - Netherton FLC - New Build- (LLEY19051) £1,337,147 £1,310,140 Covid alterations and additional localised minor works required at the request of Care Commission including; screens to reception desks, Virgin media cabling & ducting, small power & data changes, addition of push plates to external gates. Wishaw - Bonkle FLC - New Build- (LLEY19050) £1,986,793 £1,954,762 Covid alterations and additional localised minor works required at the request of Care Commission including; screens to reception desks, Virgin media cabling & ducting, small power & data changes, addition of push plates to external gates. Wishaw - Coltness FLC - New Build- (LLEY19046) £1,745,398 £1,685,320 Covid alterations and additional localised minor works required at the request of Care Commission including; screens to reception desks, Virgin media cabling & ducting, small power & data changes, addition of push plates to external gates. Clydeview School Relocation to Daisy Park Centre £721,174 £493,674 A post tender request was received and approved to broaden the scope of works to accommodate the ASN review and address capacity issues. The contract programme was also condensed to remain aligned with school term time resulting in additional out of hours payments. Page 192 of 200
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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 30/11/22 Contracts awarded below Committee approval threshold From Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone James McKinstry 07939281102 Executive Summary This report notifies the Committee of the contracts awarded between 1 July 2022 to 30 September 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 July 2022 to 30 September 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 19 Page 193 of 200
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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 July 2022 to 30 September 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 194 of 200
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James McKinstry Head of Asset and Procurement Solutions Page 195 of 200
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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 196 of 200
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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 197 of 200
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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 198 of 200
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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* Unix Support Services 2022-23 15/07/2022 01/08/2022 31/07/2023 N/A £148,185.00 £148,185.00 HFD Datavita Ltd Services 1 N* Provision of Winter Related Services Lots 1 & 2 21/07/2022 18/10/2022 17/10/2023 N/A £192,500.00 £192,500.00 Mitie Landscaping Ltd Services 1 EXT*** Provision of ServiceNow (SNOW Support) 08/08/2022 08/08/2022 07/08/2023 07/08/2024 £196,140.00 £200,000.00 Unifii Ltd Services 2 FMC3 Provision of Assistive Technology Services M365 Migration 17/08/2022 24/01/2022 31/12/2022 31/12/2022 £135,000.00 £135,000.00 David J Robertson T/A Access Technology Company Ltd Services 1 N** Roof Finish/Repair Works – St Maurice’s HS 30/08/2022 26/09/2022 13/02/2023 N/A £979,348.64 £900,000.00 Hugh LS McConnell Ltd Works 5 CO Rewire, Fire Stopping & Redecoration Works – Westfield PS 09/09/2022 05/10/2022 15/03/2023 N/A £781,012.96 £470,000.00 Maclin Electric Ltd Works 3 CR Provision of Pantheon Website Hosting 13/09/2022 10/09/2022 09/09/2025 N/A £104,865.00 £125,000.00 Agilisys Ltd Services 1 DAF3**** * Contract awarded via the use of the Negotiated Tendering Procedure to new provider who is currently contracted to deliver a related service to ensure continuity of service provision and to allow a review and consolidation of future requirements for both services. ** Contract awarded via the use of the Negotiated Tendering Procedure to incumbent provider to ensure continuity of service provision in the short term for officers who require Assistive Technology Services whilst a review and redesign of future requirements is undertaken for these services. ***Contract extension to incumbent provider delivering best value. Provision for extension made in original contract award reported to previous Committee. ****Direct Award from Crown Commercial Services Framework to best value provider. Key – Procurement Route APPENDIX 1 – SUMMARY OF BELOW THRESHOLD CONTRACT AWARDS Page 199 of 200
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CO - Contract Open Procedure CR - Contract Restricted Procedure FO - Framework Open Procedure FR - Framework Restricted Procedure FMCC - Mini Comp Council Framework 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 200 of 200