Chief Executive Service - Capital Monitoring Report 1 April to 16 September 2022 (Period 6)
North Lanarkshire Council · 30 November 2022
Back to Finance and Resources Committee — 30 November 2022 and its agenda
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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
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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
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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
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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
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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.
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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