Revenue Budget Monitoring Report; Chief Executives and Other Corporate Services' 01.04.22 - 16.09.22 (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 & 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

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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

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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

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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

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5. Impacts ( http://connect/report-template-guidance ) 
5.1 Public Sector Equality Duty and Fairer Scotland Duty
Does the report contain information that has an impact as a result of the Public
Sector Equality Duty and/or Fairer Scotland Duty?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
If Yes, has an assessment been carried out and published on the council’s website?
https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-
scotland-duty-impact-assessments
Yes ☐ No ☐
5.2 Financial impact
Does the report contain any financial impacts?
Yes ☒ No ☐
If Yes, have all relevant financial impacts have been discussed and agreed with
Financial Solutions?
Yes ☒ No ☐
If Yes, please provide a brief summary of the impact? 
The Service is being pro-active to ensure expenditure is contained within its
approved 2022/23 budget. 
5.3 HR policy impact 
Does the report contain any HR policy or procedure impacts?
Yes ☐ No ☒
If Yes, have all relevant HR impacts have been discussed and agreed with People
and Organisational Development?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.4 Legal impact
Does the report contain any legal impacts (such as general legal matters, statutory
considerations (including employment law considerations), or new legislation)?
Yes ☐ No ☒
If Yes, have all relevant legal impacts have been discussed and agreed with Legal
and Democratic Solutions?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.5 Data protection impact 
Does the report / project / practice contain or involve the processing of personal
data?  
Yes ☐ No ☒
If Yes, is the processing of this personal data likely to result in a high risk to the data
subject?
Yes ☐ No ☐
If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-
mailed to dataprotection@northlan.gov.uk 
Yes ☐ No ☐

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5.6 Technology / Digital impact
Does the report contain information that has an impact on either technology, digital
transformation, service redesign / business change processes, data management, or
connectivity / broadband / Wi-Fi?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
Where the impact identifies a requirement for technology, has an assessment been
carried out (or scheduled) by the Enterprise Architecture Governance Group
(EAGG)? 
Yes ☐ No ☒
5.7 Environmental / Carbon impact
Does the report / project / practice contain information that has an impact on any
environmental or carbon matters?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.8 Communications impact
Does the report contain any information that has an impact on the council’s
communications activities?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.9 Risk impact
Is there a risk impact?
Yes ☒ No ☐
If Yes, please provide a brief summary of the key risks and potential impacts,
highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service
or Project Risk Registers), and how they are managed? 
All activities undertaken by the Council are subject to risk, and in acknowledging the
Council’s approved Risk Management Strategy, Services manage these as part of
their overall corporate and service planning processes. The current economic climate,
in particular, has the potential to impact upon the Council’s ability to provide quality
services within approved budget levels. 
Reflecting the risk analysis matrix included within the Risk Management Strategy, the
Service considers delays or amendments to savings proposals could present an
ongoing risk to the financial outturn for 2022/23. 
To minimise risk this report has been prepared by service based Financial Solutions
personnel in consultation with budget managers, in accordance with the Financial
Regulations.

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APPENDIX 1
[1] [2] [3] [5] [6] [8] [9] [10]
DIRECTORATE & SUPPORT 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

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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

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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

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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

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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 12

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