Agenda pack
North Lanarkshire Council · 24 May 2023
Back to Finance and Resources Committee — 24 May 2023 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 11 May 2023 Members of the Finance and Resources Committee Chief Executive’s Office Archie Aitken Chief Officer (Legal and Democratic) 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, 24 May 2023 at 10:00 am which you are requested to attend. The agenda of business is attached. Chief Officer (Legal and Democratic) Members : Councillors: A Beveridge, A Bustard, J Cairns, A Campbell, T Carragher, C Costello, S Coyle, G Currie, K Duffy, H Dunbar, T Fisher, F Fotheringham, J Hume, D Johnston, T Johnston, J Jones, P Kelly, J Keltie, J Logue, H Loughran, F MacGregor, 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 150
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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 21 March 2023 (page 7 - 10) Submit minute of meeting of the Joint Consultative Committee held on 21 March 2023 for approval (copy herewith) Financial (3) North Lanarkshire Properties: Re-Financing October 2023 (page 11 - 18) Submit report by the Chief Officer (Finance) (1) providing an update on on the route to refinancing, and (2) seeking approval for the Chief Officer (Finance) to be given delegated authority to approve the finalised terms of NLP’s borrowing on behalf of the Council, given the deadline of 31 October 2023, by which the loan agreement and funds must be in place (copy herewith) Monitoring (4) Revenue Monitoring Report Council Summary 1 April 2022 to 3 March 2023 (page 19 - 30) Submit report by the Chief Officer (Finance) (1) 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; (2) consolidating the budget monitoring position of all Services, and (3) highlighting and explaining major variances as per the Council’s approved Financial Regulations (copy herewith) (5) Revenue Budget Monitoring Report; Chief Executives and Other Corporate Services' 1 May 2022 to 3 March 2023 (Period 12) (page 31 - 42) Submit report by the Chief Officer (Finance) (1) providing a summary of the Chief Executive's and other corporate services' financial performance for the period 1 April 2022 to 3 March 2023 (Period 12), and (2) 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) (6) Chief Executive Service - Capital Monitoring Report 1 April to 3 March 2023 (Period 12) (page 43 - 48) Submit report by the Chief Officer (Finance) highlighting the financial performance and provisional outturn of the 2022/23 Chief Executive capital programme for the period ended 3 March 2023 (Period 12) (copy herewith) (7) Capital Programme 2022/23 Monitoring Report (page 49 - 58) Submit report by the Chief Officer (Finance) (1) providing an update on the 2022/23 resources and expenditure for the Council's Strategic Capital Investment Programme, and (2) detailing the 2022/23 projected outturn position and the resultant variances (copy herewith) Page 3 of 150
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2 (8) Treasury Management Monitoring Report for Quarter Ended 31 March 2023 (page 59 - 70) Submit report by the Chief Officer (Finance) informing on the quarterly Treasury Management activity for the period 1 January to 31 March 2023 and compliance with the mandatory treasury and prudential indicators (copy herewith) Performance (9) Revenues and Benefits Update (page 71 - 78) Submit report by the Chief Officer (Finance) providing an update on the performance within the Revenues and Benefits functions of Financial Solutions as at 31 March 2023 (copy herewith) (10) North Lanarkshire Properties LLP - Performance Indicators: 28 July 2022 to 11 January 2023 and Financial Performance as at 6 January 2023 (page 79 - 94) Submit report by the Chief Officer (Assets and Procurement) (1) providing details of North Lanarkshire Properties LLP’s performance from 28 July 2022 to 11 January 2023; (2) reporting on significant events and service delivery highlights during the reporting period, and (3) detailing the financial performance for the period from 1 April 2022 to 6 January 2023 (copy herewith) Property (11) Amenity Land Sales Policy Update 2023 (page 95 - 108) Submit report by the Chief Officer (Assets and Procurement) (1) advising of proposed changes to the Amenity Land Sales Policy, together with the applicable sales rates, and (2) seeking approval for the updated policy (copy herewith) (12) Lease of Former Whifflet Park Bowling Club, 11 Bute Street, Coatbridge, ML5 4HF (page 109 - 114) Submit report by the Chief Officer (Assets and Procurement) seeking approval for a 40-year lease to Burnbank Football Club for refurbishment works of the former pavilion and conversion of the bowling greens into football pitches (copy herewith) (13) Proposed Sale of Amenity Land to the Rear of 15 Stuart Quadrant, Wishaw (page 115 - 122) Submit report by the Chief Officer (Assets and Procurement) seeking consent to dispose of the land as detailed in the report to the owner of the adjacent property at 15 Stuart Quadrant, Wishaw (copy herewith) Contracts (14) Contract Award for Progress Licence and Software Maintenance (page 123 - 128) Submit report by the Chief Officer (Business & Digital) asking the Committee to acknowledge the award of a contract for Progress Licence and Software Maintenance (copy herewith) Page 4 of 150
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3 (15) Enterprise Project - Contract Award for Technical and Commercial Advisory Services (page 129 - 136) Submit report by the Chief Officer (Assets and Procurement) asking Committee to acknowledge the award of a contract for technical and commercial advisory services (copy herewith) (16) Contract Awards for Supply and Distribution of: Fresh Meats; Cooked Meats; and Fresh Fish (page 137 - 142) Submit report by the Chief Officer (Assets and Procurement) seeking approval to award three individual call-off contracts for Lot 1 Fresh Meat, Lot 2 Cooked Meats, and Lot 4 Specialised Products (copy herewith) (17) Contracts Awarded Below Committee Approval Threshold (page 143 - 150) Submit report by the Chief Officer (Assets and Procurement) notifying committee of the contracts awarded between 1 January and 31 March 2023 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." (18) Proposed Purchase of Additional Houses at Bertramfarm, Shotts (page 151 - 156) Submit report by the Chief Officer (Assets and Procurement) seeking consent to acquire an additional 2 houses at Bertramfarm, Shotts to support the Council’s new housing supply programme (copy herewith) (19) Acquisition of 55-57 Main Street, Coatbridge, ML5 3BA (page 157 - 162) Submit report by the Chief Officer (Assets and Procurement) (1) advising of the outcome of recently negotiated agreed terms for the acquisition of a retail property at 55-57 Main Street, Coatbridge, ML5 3BA, and (2) seeking approval to purchase on this basis (copy herewith) (20) Proposed Purchase of Houses at Johnston Road, Gartcosh (page 163 - 168) Submit report by the Chief Officer (Assets and Procurement) seeking consent to acquire 12 residential properties at Johnston Road, Gartcosh to support the Council’s new housing supply programme (copy herewith) (21) Proposed Sale of Land at Garrell Road, Kilsyth, G65 9JX (page 169 - 174) Submit report by the Chief Officer (Assets and Procurement) (1) advising of the outcome of recently negotiated agreed terms of sale for an industrial site at Garrell Road, Kilsyth, G65 9JX, and (2) seeking approval to sell on this basis (copy herewith) Page 5 of 150
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4 (22) Sale of Land at Limekilns Road, Blairlinn Industrial Estate, Cumbernauld (page 175 - 180) Submit report by the Chief Officer (Assets and Procurement) seeking consent to sell land of approximately 6,600 sq. m. (1.63 acres,) or thereby, for the purposes of the expansion of a business (copy herewith) (23) Option and Lease of Land at Barblues Bing, Harthill (page 181 - 186) Submit report by the Chief Officer (Assets and Procurement) seeking consent to grant an option to lease and approve the terms of the lease for an area of land at Barblues Bing, Harthill (copy herewith) Page 6 of 150
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 21 MARCH 2023 1 21 March 2023 at 2 pm. A Meeting of the JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES PRESENT Councillor Boyd, Vice-Convener; Councillors Ballinger, Currie, Duffy, Jarvie, Logue, and Smith. M. Quigley, Unison, Convener; A. Clark and W. Shearer, Unison; D. Whelan, GMB and J. Rooney, Unite (T & G). CHAIR M. Quigley (Convener) presided. IN ATTENDANCE The Chief Officer (People Resources); Development Officer (Equalities); Employment and Policy Officer and Principal Democratic Officer. ALSO IN ATTENDANCE J. Baxter, Unison and B. Rankin, GMB. APOLOGIES Councillors Barclay, Brannan-McVey, M. Coyle and MacGregor; J. Hannigan, Unison, and V. Thomson, Unite (T & G). DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000 1. There were no declarations of interest. ELECTION OF CONVENER AND VICE-CONVENER 2. In terms of the Constitution of the Joint Consultative Committee for Local Government Employees, nominations were sought for the Convener and Vice-Convener of the Committee. Decided: that Marie Quigley, Unison, be elected Convener, and Councillor Boyd be elected Vice-Convener of the Joint Consultative Committee for Local Government Employees for a 12 month period. NORTH LANARKSHIRE COUNCIL FAIR WORK FIRST STATEMENT 3. There was submitted a report by the Chief Officer (People Resources) (1) providing details of the contents of the Council's Fair Work First Statement, which required to be published in 2023 to enable AGENDA ITEM 2 Page 7 of 150
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 21 MARCH 2023 2 the Council to access future Scottish Government grants; (2) setting out the action taken by the Council to ensure that it meets the Fair Work First criteria; (3) advising that the Council was encouraging Fair Work practices across the North Lanarkshire business community via the North Lanarkshire Employer Charter, and (4) seeking endorsement of the Council’s Fair Work First Statement from the Joint Trade Unions. Decided: (1) that the Council's Fair Work First Statement be endorsed by the Joint Trade Unions; (2) that the Council's Fair Work First Statement be published on the Council's website, and (3) that the report be otherwise noted. ADVANCING RACE EQUALITY IN THE COUNCIL'S WORKFORCE 4. With reference to paragraph 21 of the Minute of the meeting of North Lanarkshire Council held on 13 August 2020, when inter alia, approval had been given to establish a cross party working group to look at how the Council and its partners could work to ensure that all residents were able to live their lives free from racism or discrimination of any form, there was submitted a report by the Chief Officer (People Resources) (1) providing details of the ongoing work and plans to advance race equality within the workforce; (2) detailing, within the report, the outcome of (a) an employment information gathering exercise which took place in 2021, and (b) the Black, Asian and Minority Ethnic (BAME) employee survey; (3) intimating that the information gathered in the Advancing Race Equality and Workforce Action Plan set out a clear path for the advancement of equality for BAME employees in the work place; (4) setting out details of (a) the BAME Probationer Teacher Project; (b) the review of information on Myjobscotland and on the Council's website, and (c) the Plan for Change in the teaching workforce; (5) advising that the Action Plan for Advancing Equality in the Workforce, which had been the subject of a consultation with the Council's BAME employees, would continue to be monitored by the same group of employees and would also be reviewed by the Council’s Equality Board, and (6) informing that the Action Plan would be subject to an annual report to the Wellbeing and Tackling Poverty Committee. Decided: that the report be noted. EMPLOYMENT POLICY ISSUES - DISCIPLINE POLICY AND SMARTER WORKING POLICY 5. With reference to paragraph 5 of the Minute of the meeting of this Committee held on 26 October, there was submitted a report by the Chief Officer (People Resources) (1) highlighting measures set out to address issues previously raised by Trade Union representatives, with regard to (a) the Smarter Working Policy, and (b) the length of time that disciplinary investigations were taking to conclude; (2) outlining the background to the Smarter Working Policy including the appeals process; (3) intimating that there was a perception that some Services were not applying the Smarter Working Policy fairly and consistently; (4) advising (a) that, in respect of the Discipline Policy, every effort was being made to ensure that investigations were carried out timeously, but certain factors could prevent this including the availability of investigating officers, unforeseen sickness absence, annual leave of those involved and the accessibility of witnesses and Trade Unions representatives, and (b) that the Council would continue to work with Trade Union representatives to address these issues; (5) indicating that Trade Union representatives had asked that employees be supported throughout the period of their suspension and provided with regular updates on the progress of the investigation, and (6) informing that the Council would be reviewing the Discipline Policy and that the Trade Unions would be invited to be part of the review process. Page 8 of 150
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 21 MARCH 2023 3 Decided: that the report be noted. Page 9 of 150
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref EK/CB Date 24/05/23 North Lanarkshire Properties: Re-Financing October 2023 From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 Executive Summary North Lanarkshire Properties LLP (NLP) financing agreement with its current lender, Barclays Bank, ceases in October 2023 and a new arrangement requires to be put in place to fund the remaining balance of £33m. The ALEO service review in 2017/18, revisited in 2019, identified that retaining NLP as an externalised service delivery vehicle represented best value for the Council. The company has procured external specialist financial and legal advisers to provide professional expertise, including negotiation on NLP’s behalf with the banking sector and financial modelling of the refinancing terms duly offered to enable NLP to make a fully informed decision and achieve best value for the company in terms of its future borrowing requirements. A funding proposal was prepared and submitted to six prospective lenders. Three lenders have provided provisional loan terms and work is underway on financial modelling and evaluation of these terms with a view to identifying a preferred lender to progress a formalised loan offer. This report provides an update on the route to refinancing and seeks approval for the Chief Officer (Finance) to be given delegated authority to approve the finalised terms of NLP’s borrowing on behalf of the Council given the deadline of 31 October 2023 by which the loan agreement and funds must be in place. Recommendations It is recommended that the Finance and Resources Committee: 1. Acknowledges the requirement for NLP to progress a re-financing arrangement with an external lender for £33m; 2. Acknowledges the review work undertaken in 2017/18, and revisited in 2019, which identified that retaining NLP as an ALEO represented best value for the Council; 3. Acknowledges the ongoing evaluation of the provisional loan terms received; and, 4. Agrees that authority be delegated to the Chief Officer (Finance) to approve NLP’s future borrowing on behalf of the Council, including the appointment of the successful lender and finalised loan agreement terms. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (3) Maximise the use of our marketable land and assets through improved development in business and industrial infrastructure AGENDA ITEM 3 Page 11 of 150
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1. Background 1.1. Following the decision by North Lanarkshire Council in June 2012 to externalise its commercial property portfolio, North Lanarkshire Properties (NLP) LLP became operational from October 2013 with responsibility for marketing, leasing and managing the Council’s commercial properties. 1.2. NLP acquired the Council’s commercial properties in October 2013 by entering into a £45m loan agreement with Barclays Bank plc to finance the property transfer. The loan facility agreement was agreed for an initial 10-year period and is subject to an 80% guarantee being provided by the Council. The loan agreement generated a capital receipt for the Council and 968 properties transferred from the Council’s commercial property portfolio to the new company. 1.3. In April 2018 the former Infrastructure Committee considered and approved the findings from the 2017/18 ALEO Service Review of NLP which confirmed that the company was performing well against its Service Level Agreement and meeting the Council’s expectations. 1.4. Members of this Committee were advised in March 2023 that this initial 10-year loan facility agreement between NLP and the current lender will terminate on 31 October 2023 and as such the company must now refinance its remaining borrowing requirements, with all contractual agreements between NLP and the lender executed and the funds in place by this date. The Finance and Resources Committee noted the strengthened negotiating position provided through the Council’s 80% loan guarantee and agreed that this provision should continue, thereby enabling NLP to achieve best value in securing its borrowing requirements. 1.5 A project team comprising NLP staff and Council representatives from Enterprise & Communities, Finance, Legal & Democratic and Business & Digital was established in 2022 to support NLP in progressing the refinancing of the outstanding loan. Towards the end of 2022 NLP undertook a procurement exercise to engage financial advisers specialising in this type of transaction. Azets were awarded the contract with their role being to assist the project team in preparing a funding proposal to be issued to prospective lenders, to review offers submitted by lenders and ultimately assist with brokering the new loan arrangements. Shepherd and Wedderburn LLP were appointed by NLP to work in conjunction with Azets and provide legal advice in the negotiation and execution of the new loan facility agreement and security documentation. 2. Report 2023 Refinancing Proposals 2.1 The Loan facility agreed with Barclays Bank plc in 2013 will end on 31st October 2023, at which point the outstanding balance will be approximately £33m. 2.2 Previously in 2017/18, revisited in 2019, the ALEO service review of NLP had confirmed that the company was generally performing well and the externalised service delivery model had fulfilled the Council’s original expectations whilst providing flexible and responsive property services and contributing to the Council’s business plan. The review concluded that the externalised service delivery model should continue and the Improvement Plan, produced as part of the review’s overall recommendations, identified that preparatory work linked to the 2023 refinancing requirement would commence in 2020/21. Page 12 of 150
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2.3 Following approval of The Plan for North Lanarkshire in early 2019 and given the relevance of NLP’s strategic objectives to the shared ambitions, particularly those linked to economic opportunities and improving North Lanarkshire’s resource base, further work was undertaken in the autumn of 2019 to revisit whether delivery of the Council’s commercial property functions through NLP remained the best option for service delivery. A series of potential options were considered including early or term settlement of NLP’s existing Loan Facility Agreement, subsequent dissolution of the company and transfer of the properties back to Council ownership and management. Further options included NLP retaining ownership of the properties however operational management would transfer to the proposed Enterprise Strategic Partnership which was in the early planning stages at that time and the Council buying back targeted properties to support The Plan for North Lanarkshire’s shared ambitions. 2.4 Continuing with the status quo and ensuring that NLP’s Management Committee should seek to secure the most advantageous borrowing terms at the time of refinancing in 2023 was assessed as remaining the best option for the Council and the company. Progress Update and Route to Market 2.5 Good progress is being made by the NLP Management Committee and its external financial and legal advisers in engaging with the financial sector and working towards the timeline referenced at 1.4 above. A funding proposal was prepared which outlined the investment opportunity and provided prospective lenders with a suite of information on the background of the company, the property portfolio and details of the financial performance, both historic and projected. This was issued to six banks, including the current lender, with a return date for outline terms set at 31st March 2023. Three of the financial institutions advised that they would not be submitting a return, however, the remaining three banks have engaged and Azets, acting on behalf of NLP, are in direct contact with each of these to ensure that all options are explored to achieve the most advantageous offer for NLP. 2.6 The responses received are exceptionally detailed and Azets are working with the project team to extract all relevant details to allow a comparison of offers to be made. Further clarity is being sought on a number of points and robust financial modelling will require to be completed on the proposals submitted to long term financial sustainability and affordability for NLP. The details currently being reviewed include: • The loan term being offered and the length of the repayment profile; • Margins being offered; • Fees; • Security requirements attached to the proposals; • Interest rates; and, • Covenants being applied. 2.7 From the proposals received the detailed evaluation will focus on 3 key risks: • The impact of fixed versus floating rates, • The covenant conditions, • The security package being requested by the lenders. Decision Making, Authorisation and Governance 2.8 Once the financial modelling is complete and the full evaluation has been undertaken, the external specialist advisers and project team members will be in a position to Page 13 of 150
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identify the preferred lender and associated loan agreement terms and present their findings to the NLP Management Committee for consideration, enabling the company representatives to make a fully informed decision. 2.9 The terms of the Partnership Agreement in place between the Council and NLP stipulate that the company must obtain written authority from the Council for important management decisions and borrowing at this level and duration, notwithstanding the Council’s previously approved position as guarantor, falls within this defined requirement. While every effort has been made to align the refinancing timeline with scheduled NLP Management Committee meetings and the Council’s cycle of scheduled meetings, the financial and legal advisers have intimated that it is unlikely that consideration of NLP’s borrowing by this Committee at its meeting on 13 September 2023 will leave sufficient time thereafter to conclude and execute all contractual and security agreements. As such it is requested that the Chief Officer (Finance) is given delegated authority under the Scheme of Delegation to approve NLP’s final loan agreement terms on behalf of the Council, and to reaffirm the Council’s previously approved position as guarantor, once all financial modelling is complete and a preferred, favourable lender is identified. Thereafter a report will be presented to Committee at the appropriate cycle providing details on the outcome including approved lender and loan terms. 3. Measures of success 3.1 Sourcing the required funds at the most advantageous terms to finance North Lanarkshire Properties LLP’s borrowing requirements for the remainder of the loan requirement. 4. Supporting documentation N/A Elaine Kemp Chief Officer (Finance) Page 14 of 150
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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 Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? There are no direct revenue financial impacts for the Council since the loan repayments are made by NLP and the most advantageous loan terms will be accepted to keep these payments manageable within current trading conditions. The Council’s Finance and Resources Committee previously agreed at its meeting on 1 March 2023, however, to continue to provide security for NLP’s borrowing at the level of 80%. This would represent a risk to the Council of £26.4m over the remainder of the loan agreement, although the forecast trading position of the company and the reserves position, coupled with robust financial oversight and monitoring by the Council’s Finance team under their Service Level Agreement with NLP mitigate the potential likelihood of the risk materialising. (Link to minute extract from Finance and Resources Committee meeting of 1 March 2023) https://mars.northlanarkshire.gov.uk/egenda/images/att100469.pdf 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 Resources? 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? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? A Project Group and Project Board are in place for this task which includes representatives from Legal Services therefore they have been involved since the inception of the project. The main legal impact sits with North Lanarkshire Properties however NLC are the guarantor. External legal advisers have also recently been appointed to assist with the completion of the loan documents. Page 15 of 150
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5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, 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 financial transactions have an element of risk however these are mitigated by NLP’s ability to continue to meet its loan commitments without any ongoing financial support from the Council. A project risk register is in place and managed by the Project Team and Chief Officer (Assets and Procurement) in his role as Project Lead Officer. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ Page 16 of 150
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If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 17 of 150
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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 24/05/23 Revenue Monitoring Report Council Summary 1 April 2022 to 3 March 2023 From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 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 £889.122m. The Council is currently projecting a surplus of £22.350m which will be available to support future budget pressures, resulting in a reported break-even position. It should be noted that this position reflects a net £4.993m overspend attributable to inflationary pressures experienced across services. Resources totalling £10.147m have been provided through a combination of corporate budgetary provision and use of reserves to help manage these increased costs, which offset the forecast overspends, leaving a balance of £5.154m to support any further pressures not yet realised. However, 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 £5.225m of the current year target (73%) 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 4 Page 19 of 150
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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 and additional DHP funding, offset by a reallocation of Scottish Child Payments Grant to agency managed grants, resulting in an overall total budget of £889.122m. 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 surplus of £22.350m available for future budget pressures: Annual Budget (£m) Projected Outturn (£m) P12 Variance (£m) P10 Variance (£m) P10 to P12 Movement (£m) Expenditure Total Expenditure 889.122 866.772 22.350 11.937 10.413 Income Aggregate External Finance 725.072 725.072 - - - Local Tax Collection 158.050 158.050 - - - Use of Balance 6.000 6.000 - - - Total Income 889.122 889.122 - - - Projected variance: (Surplus)/Deficit at 31 March 2023 - (22.350) 22.350 11.937 10.413 Earmarked for future budget pressures - 22.350 (22.350) (11.937) (10.413) Surplus/(Deficit) at 31 March 2023 Post Reserve Allocation - - - - - Table 1 Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning Page 20 of 150
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2.2. Analysis of Significant Variations 2.2.1. Table 2 below analyses the projected outturn financial position across services: Service P12 Outturn (£m) P10 Outturn (£m) P10 to P12 Movement (£m) Education Children and Families (2.613) Overspend (3.563) Overspend 0.950 Enterprise and Communities (2.379) Overspend (3.341) Overspend 0.962 Chief Executives and Other Corporate Services 4.963 Underspend 1.171 Underspend 3.792 Social Work (Non-Integrated) - On Budget - On Budget - Executive Services Total (0.029) Overspend (5.733) Overspend 5.704 Financing Costs 11.057 Underspend 7.000 Underspend 4.057 Budget Assumptions 9.256 Underspend 8.066 Underspend 1.190 Use of Reserves (inflation) 2.066 Over Recovery 2.604 Over Recovery (0.538) Total Projected Surplus/(Deficit) 22.350 Underspend 11.937 Underspend 6.052 Earmarked for future budget pressures (22.350) Overspend (11.937) Overspend (10.413) Total 0.000 On Budget 0.000 On Budget 0.000 Table 2 2.2.2. Education, Children and Families is reporting a projected overspend of £2.613m, which is £0.950m less than previously reported, mainly as a result of an increased underspend in employee costs. The overall position is largely due to a projected overspend in property costs of £5.646m due to anticipated increased utilities/energy costs arising from inflationary pressures (£5.293m) and other overspends (£0.353m), a projected overspend in transport costs of £5.490m largely due to ongoing demand pressures within ASN transport (£2.678m) and increased mainstream transport contract rates (£2.861m). There is also a projected increase in cost for ASN placements £0.652m and family placements £0.448m associated with external fostering and kinship care, and a projected under recovery in income of £1.282m due to reduced membership and visitor fees for Active and Creative Communities. These are partially offset by a projected reduction in employee costs of £7.664m, largely due to delays in recruitment and establishment of staffing models, an anticipated underspend of £0.433m in relation to children’s support services and clothing grants, projected underspends in other expenditure of £0.826m, supplies and services of £1.925m and administration costs of £0.102m, predominately due to management action and curtailment of non-essential expenditure. Page 21 of 150
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2.2.3. Enterprise and Communities is projecting an overspend of £2.379m, which is £0.962m less than previously reported, mainly as a result of an increased underspend in employee costs. The overall reported position is largely due to inflationary pressures of £2.625m in relation to the cost of utilities, food, fuel, materials and waste tonnage, offset by an overall non-inflationary underspend across a number of budgeted areas of £0.246m. There are forecast increased costs of £5.043m mainly due to delay in the achievement of office rationalisation savings (£0.667m), increased use of agency staff to support waste collection due to ongoing recruitment difficulties (£0.485), increased vehicle leasing and hire costs (£0.638m) and vehicle parts (£0.119m), increase in costs in charging of electric vehicles (£0.600m), an overspend in the in essential repairs and road projects (£0.492m), an overspend in consultancy costs (£0.819m) and payments to other bodies (£0.247m), and a number of other expenditure cost pressures (£0.976m). These overspends are offset by a £3.791m underspend in employee costs due to vacancies across the services and an over recovery in income of £1.498m in relation to Planning fee income (£0.484m), Building Warrants (£0.496m), road occupation and construction consents (£0.298m) and other chargeable fees. 2.2.4. Chief Executives and Other Corporate Services are projecting an underspend of £4.963m, which is a £3.792m increase on the previously reported position, largely relating to an increased over recovery of income (£1.885m), a further reduction in forecast cloud consumption costs (£0.870m) and an increased underspend in employee costs (£0.981m). The overall reported position is primarily due to lower than budgeted contract costs as a result of a delay in transferring to a cloud environment, resulting in an underspend in forecast cloud consumption costs by £2.117m, an over recovery in income of £1.334m largely in relation to PPP contributions (volume discount MEARS) and Rent Allowance/Rebate recovery, offset by an under recovery in income in the areas of licencing (liquor and taxi) and internal recharges, an underspend in employee costs of £1.383m mainly due to vacancies savings. 2.2.5. There is an underspend in Financing costs of £11.057m due to prudent management of the Council’s borrowing and cashflow position, as well as the latest forecast expenditure on the capital programme, and an over recovery in respect of interest earned on revenue balances due to higher than budgeted interest rates. This is an increased underspend of £4.057m from the previously reported position due to a net increase on interest on revenue balances (£2.092m) and an increased reduction in loan charge costs (£1.965m). In addition, members continue to be advised that consideration is currently being given to the implementation of the option of a loan debt holiday, which is one of the fiscal flexibilities introduced by the Scottish Government, initially to support the cost of COVID. If implemented this will generate a further one- off saving in 2022/23. However, it should be noted that this does not change the overall debt to be repaid and any benefit generated will need to be repaid within the shorter of either the remaining period of the loans fund advance or twenty years. The decision on this will be reviewed as part of the year end closedown. 2.2.6. Within the services’ financial positions shown above, inflationary pressures totalling £11.419m are reported. However, Corporate 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. A total of £6.426m of these pressures are being managed within the services budgets, resulting in a £4.993m draw on corporate resources to manage the position overall. Therefore, there is a balance of £5.154m remaining to support any further pressures not yet realised. However, given the current economic volatility, government policy announcements and market conditions, it is very difficult to accurately assess the impact of inflation across the Council. Therefore, 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 Page 22 of 150
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services curtail all non-essential expenditure to support the Council’s overall management of this significant risk. 2.2.7. An underlying reported underspend of £9.256m is also reported within budget assumptions, which reflects the release of resources held in relation to budget assumptions now not anticipated to be realised. This includes resources held for inflation noted in 2.2.6 above along with a £1.411m underspend in relation to the reversal of the social care levy (increased employer national insurance contributions) from November 2022, and £1.847m saving in relation to the teacher strike action (24 Nov/ 7 Dec/ 10, 11 & 19 Jan). 2.2.8. It should also be noted that as at period 12 the Council Tax Product remains under review. This includes consideration of Council Tax collection, Council Tax Reduction Scheme up take and household numbers. In addition, the Council Tax Product will then be assessed for Expected Credit losses as part of the year end process. It is currently anticipated there will be no material variance overall. 2.2.9. In addition, Scottish Government provided additional £7.726m of Capital Grant that can be used flexibly to support the cost of the 2022/23 Pay Award agreement. The application of this flexibility will result in a transfer of surplus from HRA as part of the year end close down. This will partly offset the cost incurred for pay in 2022/23, along with other existing General Fund budgets. 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 £5.225m of savings (73%) will be achieved in the current year. It is anticipated that the remaining in year gap of £1.887m 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 £170.444m earmarked for specific future commitments including £31.054m 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 £28.396m of unallocated balances. 2.4.2. A total of £103.122m of earmarked reserves are profiled for use in 2022/23 with a further £67.332m profiled for use in future years. It is currently projected that £84.696m of the 2022/23 earmarked reserves will be spent during this financial year with £17.397m anticipated to be required in future years and reserves of £1.029m deemed no longer required. A summary position in respect of the above is shown in Appendix 2. 2.4.3. The unallocated reserves will change depending on overall financial performance year on year, unexpected commitments and to account for future drawdowns from the capital fund. Therefore, reflecting the current year forecast position, commitments during the year of £0.819m, earmarked reserves no longer required of £1.029m and Page 23 of 150
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the capital fund drawdown of £0.396m, the unallocated General Fund balance is currently forecast to reach £30.360m by the financial year end. Appendix 3 summarises this position. However, it should also be noted that the overall reported position reflects assumptions around approval to earmark additional funds as part of the year-end review arrangements. 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 an underspend of £1.067m for the financial year. This is due to the following variations against budget. There is an underspend in employee costs of £1.400m largely due to vacancy savings in conjunction with the reversal to increased national insurance rates, an underspend in financing costs of £1.634m due to proactive treasury management activity, an anticipated underspend in expenditure relating to ambitions funding of £1.107m and a smaller underspend within administrative costs of £0.180m. These are offset by an overspend in property costs of £2.607m mainly in relation to an increase in repairs and utilities costs, an under recovery of income of £0.647m relating to rental income, laundry, and court fees. 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 £9.327m. This position is primarily due to a projected underspend in employee cost of £4.735m 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 £3.130m as a result of staff shortages within the care at home sector SDS commissioning framework, a projected underspend in administration costs of £1.940m due to lower than anticipated Carers costs offset by an overspend in Supplies and Services of £0.782m due to higher than anticipated costs in the areas of Equipment and Adaptation services, uniforms and protective clothing and several other smaller compensating 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 Chief Officer (Finance) Page 24 of 150
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Page 25 of 150
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Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☐ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 26 of 150
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LINE SERVICE ACCOUNT BUDGET ACTUAL VARIANCE ANNUAL PROJECTED NO. TO DATE TO DATE TO DATE BUDGET OUTTURN (1) (2) (3) (4) (5) (6) (7) £ £ £ £ £ £ 1 Education & Families 369,831,571 371,098,440 (1,266,869 ) 466,619,888 469,232,577 (2,612,689 ) 2 Early Years 31,110,808 31,110,808 - 31,920,353 31,920,353 - 3 Primary Schools 123,260,986 123,260,986 - 137,042,002 137,042,002 - 4 Secondary Schools 120,361,343 120,361,343 - 128,673,940 128,673,940 - 5 Special Schools 18,768,485 18,768,485 - 20,762,878 20,762,878 - 6 Education & Families Service Delivery 19,764,164 20,357,849 (593,685 ) 73,536,780 75,191,566 (1,654,786 ) 7 Childrens Services Social Work 34,548,073 34,539,828 8,245 38,918,528 38,898,332 20,196 8 Justice Services 19,551 (143,498 ) 163,049 73,431 (122,883 ) 196,314 9 Active and Creative Communities 8,819,026 9,920,766 (1,101,740 ) 25,037,035 26,567,127 (1,530,092 ) 10 Employability 6,831,349 6,789,772 41,577 3,906,759 3,864,032 42,727 11 Community Learning 4,074,867 3,861,356 213,511 4,765,748 4,457,875 307,873 12 Welfare 2,272,919 2,270,745 2,174 1,982,434 1,977,355 5,079 13 Strategy for Young People - - - - - - 14 Enterprise & Communities 119,940,440 118,864,981 1,075,459 144,395,656 146,775,214 (2,379,558 ) 15 Environmental Assets 30,942,888 31,295,083 (352,195 ) 47,197,455 47,037,677 159,778 16 Regulatory Services & Waste Solutions 30,733,429 33,112,775 (2,379,346 ) 37,123,707 38,904,984 (1,781,277 ) 17 Assets & Procurement 40,500,583 39,284,305 1,216,278 38,298,520 40,170,814 (1,872,294 ) 18 Planning & Regeneration 5,167,223 3,480,069 1,687,154 9,545,283 8,391,185 1,154,098 20 Housing Solutions 6,089,044 5,261,520 827,524 5,330,715 5,069,488 261,227 22 Business, Housing Property & Projects 7,258,980 7,071,096 187,884 7,495,518 7,796,608 (301,090 ) 23 Trading Accounts (751,707 ) (639,867 ) (111,840 ) (595,542 ) (595,542 ) - 24 Chief Executives & Other Corporate Services 67,212,259 64,385,276 2,826,983 98,482,701 93,519,535 4,963,166 25 Directorate & Support 763,688 745,422 18,266 874,841 846,630 28,211 26 Fiancial Solutions 20,199,393 19,998,965 200,428 46,397,878 45,545,357 852,521 27 Audit & Risk 512,789 489,153 23,636 579,364 546,727 32,637 28 Legal & Democratic Solutions 2,230,979 2,431,918 (200,939 ) 2,155,475 2,426,881 (271,406 ) 29 Business & Digital 15,535,999 13,831,503 1,704,496 17,404,666 15,537,150 1,867,516 30 People & Organisational Development 7,744,173 7,319,123 425,050 8,142,731 7,688,558 454,173 31 Strategic Communication 5,144,888 4,871,802 273,086 5,156,219 4,874,607 281,612 32 Other Corporate Services 2,649,861 2,266,901 382,960 3,684,556 1,966,654 1,717,902 33 Joint Boards 12,430,489 12,430,489 - 14,086,971 14,086,971 - 34 Social Work (non Integrated) 187,964,805 187,964,805 - 188,700,126 188,700,126 - 35 GENERAL FUND SERVICES 744,949,075 742,313,502 2,635,573 898,198,371 898,227,452 (29,081 ) 36 FINANCING COSTS 20,692,563 10,486,437 10,206,126 (40,569,875 ) (51,626,511 ) 11,056,636 37 Reversal of Capital Charge (67,430,807 ) (67,430,807 ) - (73,050,041 ) (73,050,041 ) - 38 Loan Charges and Interest on Revenue Balances 29,981,692 19,775,566 10,206,126 32,480,166 21,423,530 11,056,636 39 OTHER BUDGETARY ISSUES 29,070,839 29,070,839 - 31,493,409 20,171,000 11,322,409 40 Assumptions not yet Realised 29,070,839 29,070,839 - 31,493,409 22,237,000 9,256,409 41 Drawdown from Reserves - - - - (2,066,000 ) 2,066,000 42 TOTAL EXPENDITURE 794,712,477 781,870,778 12,841,699 889,121,905 866,771,941 22,349,964 43 SOURCES OF FUNDING 820,727,912 820,727,912 - 889,121,905 889,121,905 - 44 Aggregate External Finance 669,297,637 669,297,637 - 725,072,440 725,072,440 - 45 Council Tax 145,891,814 145,891,814 - 158,049,465 158,049,465 - 46 Use of balances 5,538,462 5,538,462 6,000,000 6,000,000 47 (SURPLUS) / DEFICIT (26,015,435 ) (38,857,134 ) (12,841,699 ) - (22,349,964 ) 22,349,964 48 Earmarked for Future Budget Pressures - - - - 22,349,964 (22,349,964 ) 49 (SURPLUS) / DEFICIT (26,015,435 ) (38,857,134 ) (12,841,699 ) - - - 50 HOUSING REVENUE ACCOUNT (SURPLUS) / DEFICIT (33,116,747 ) (33,363,585 ) 246,838 - (1,067,000 ) 1,067,000 51 ADULT HEALTH AND SOCIAL CARE (SURPLUS) /DEFICIT (17,393,115 ) (26,003,049 ) 8,609,934 - (9,327,429 ) 9,327,429 NORTH LANARKSHIRE COUNCIL SUMMARY BY DIVISION FOR PERIOD ENDING 3 March 2023 (PERIOD 12) PROVISIONAL VARIANCES Page 27 of 150
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Appendix 3 £000 £000 Total Balance B/f per 2021/22 Annual Accounts 29,424 29,755 Approved commitments (819) 29,424 28,936 Period 10 reported variance 0 Earmarked Reserves no longer required 1,029 Total Balance 2022/23 before commitments 29,424 29,965 Known Commitments :- Revised one - off costs of approved savings (1,624) Draw down from Capital Fund 396 Total Balance 2022/23 27,800 30,361 Estimated future Capital Fund Drawdown to 2023/24 1,000 Forecast Balance 27,800 31,361 NORTH LANARKSHIRE COUNCIL AVAILABILITY OF GENERAL FUND BALANCES AS AT 3 March 2023 (PERIOD 12) Change Management Fund Unallocated General Fund Page 29 of 150
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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 24/05/23 Revenue Budget Monitoring Report; Chief Executives & Other Corporate Services 01.04.22 –03.03.23 (Period 12) From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 Executive Summary This report provides a summary of the Chief Executive & Other Corporate Services financial performance for the period 1 April 2022 to 3 March 2023 (Period 12). 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 £98.483m currently represents the Net Revenue Budget for the Chief Executive & Other Corporate Services. The Service is currently projecting a favourable position of £4.963m for the financial year which includes £2.171m of approved COVID funding. This is a £3.792m movement from the previous committee report which includes increased underspends in employee costs and contract costs along with over-recoveries in income relating to PPP contributions, rent allowances and rent rebates overpayments. 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 5 Page 31 of 150
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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. Following a number of budget realignments throughout the year there is a revised budget for the service of £98.483m. 2.1.2 The overall projected outturn position of the Service is a favourable position of £4.963m. This is a favourable movement of £3.792m since the previous report to Committee which includes increased underspends in employee costs and contract costs along with over-recoveries in income relating to PPP contributions, rent allowances and rent rebates overpayments. 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 vacancy management and the curtailment of non-essential expenditure. 2.1.4 The 2022/23 budget incorporates a revised savings value of £0.361m previously approved by Council. 2.1.5 The Service is currently anticipating increased costs as a result of inflationary pressures within ICT contracts of £0.088m in the current year, however these costs can be managed within the current budget envelope. Future year increases will be addressed as part of the Budget Setting process. 2.2 Analysis of Significant Variances 2.2.1 Employee costs are anticipated to result in a year end net underspend of £1.383m, primarily as a result of vacancies, underspends in relation to the Cost of Living Grant and pensions charges. 2.2.2 Supplies & Services are projected to be underspent by £2.117m due to continuing review of contracts across the service along with an in year saving due to the timing of the transition to Cloud based solutions across the council. 2.2.3 Transport costs are anticipated to be underspent by £0.080m primarily as a result of decreased staff travel following the change to Hybrid working. 2.2.4 Admin Costs are projected to be underspent by £0.095m due to underspends within the MA programme / Workforce for the Future, printing, photocopying, training and Page 32 of 150
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project budgets partially offset by an overspend within Liability Insurance and expected credit losses. 2.2.5 The service is currently projecting an underspend within Payments to Other Bodies of £0.132m due to decreased spend for by-elections, the Grant Award Programme and Children’s Panel Training offset by HRMC tax invoice relating to medical fees. 2.2.6 As at period 12 the position on Council Tax Reduction Scheme remains under review along with other elements of the Council Tax Product including household numbers and council tax collection for the year. The Council Tax Product will then be assessed for expected credit losses as part of the year end process. It is currently anticipated there will be no material variance overall. 2.2.7 Within Other Expenditure the service is currently projecting an overspend of £0.118m due to increased costs for the Modern Apprenticeship Levy. 2.2.8 Income is currently projecting to over-recover by £1.334m. This is due to an over- recovery of income in relation to PPP Contributions, rent allowances / rent rebates overpayments, recharges from building cleaning and trade waste, grant income relating to the modern apprentice programme and blue badges. This is partially offset by under- recoveries within licencing (liquor and taxi) due to the continuing impact of Covid-19 and under-recoveries in recharges for areas such as printing and insurance and the Learning Centre. 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. Following several realignments during the year, along with identifying £1.870m to be deferred to future years there is a revised balance of £3.403m within the Chief Executive’s service. It is anticipated that £2.635m of the reserve balances will be utilised in 2022/23 with a total £0.768m 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 incurred £0.107m of VRS costs relating to savings/restructures. Therefore, there is currently a requirement to utilise 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 The Service has not fully implemented the approved 2022/23 savings however there has been management action taken to offset these in the current year: • Business and Digital – there has been a planned reduction of spend within Contract lines to support savings target of £0.198m, • POD – there has been a proactive approach to vacancy management to support the savings target of £0.163m in the current financial year. 2.4.3 Appendix 5 provides a summary of the savings, including commentary in relation to challenging savings and any actions taken to address the funding gap which has arisen. Page 33 of 150
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2.5 Covid-19 Costs 2.5.1 The approved COVID Recovery Budget has been incorporated with an additional net expenditure budget of £3.088m provided. This reflects anticipated increased costs of £2.289m, and additional investment of £0.799m. The Service is currently projecting slippage of £0.847m to 2023/24 due to delays in recruitment of staff and has identified £0.019m of funding no longer required. Details of the Service’s COVID Budget are provided in Appendix 6. 2.6 Management Actions 2.6.1 The Service is being pro-active to ensure expenditure is contained within its approved 2022/23 budget. 3. Measures of success 3.1 The Service continues to operate within approved budget resources. 4. Supporting documentation Appendix 1 Objective Summary Appendix 2 Subjective Summary Appendix 3 Payments to Other Bodies Appendix 4 Earmarked Reserves Appendix 5 Budget Savings Appendix 6 COVID Recovery Budget Elaine Kemp Chief Officer (Finance) Page 34 of 150
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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 Finance? 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 Resources? 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? 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 35 of 150
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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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 36 of 150
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APPENDIX 1 [1] [2] [3] [5] [6] [8] [9] [10] DIRECTORATE & SUPPORT 763,688 745,422 18,266 FAV 874,841 846,630 28,211 FAV 3.2% 6,174 FINANCIAL SOLUTIONS 20,545,213 19,998,965 546,248 FAV 46,397,878 45,545,357 852,521 FAV 1.8% 837,181 Underspends in employee costs (cost of living and vacancies) and agency fees plus over-recovery of rent allowances / rent rebates overpayments, blue badge income are offset by overspends within property and liability insurance claims and expected credit losses. AUDIT & RISK 512,789 489,153 23,636 FAV 579,364 546,727 32,637 FAV 5.6% (1,442) Vacancies partially offset by turnover. LEGAL & DEMOCRATIC SOLUTIONS 2,230,979 2,431,918 (200,939) ADV 2,155,474 2,426,881 (271,407) ADV (12.6%) (32,196) Under recovery in postage and printing income, legal insurance fee and registrars partially offset by underspend within printing and postage expenditure. BUSINESS & DIGITAL 15,535,999 13,831,503 1,704,496 FAV 17,404,666 15,537,150 1,867,516 FAV 10.7% 1,260,025 Underspends within various contracts across the service including the in-year underspend specific to the timing of cloud migration. There is also a net underspend within employee costs due to vacancies. PEOPLE & ORGANISATIONAL DEVELOPMENT 7,744,173 7,319,123 425,050 FAV 8,142,731 7,688,558 454,173 FAV 5.6% 208,281 Underspends due to vacancies, timing of the implementation of the Workforce for the Future programme plus receipt of Young Persons Guarantee Grant income within MA programme resulting in increased underspend within the core programme. STRATEGIC COMMUNICATIONS 5,144,888 4,871,802 273,086 FAV 5,156,219 4,874,607 281,612 FAV 5.5% 150,442 Underspends predominately due to vacancies, advertising, printing, promotions, Queen's Jubilee, Grants Award Programme partially offset by an under- recovery in income from the Learning Centre OTHER CORPORATE SERVICES 2,649,861 2,266,901 382,960 FAV 3,684,556 1,966,654 1,717,902 FAV 46.6% 1,363,556 Over-recovery in income in relation to PPP contributions, recharges from building cleaning and trade waste plus transitional relief no longer applied to previous CLNL properties, along with other minor underspends across the service which are partially offset by overspends within Elected Members expenditure and MA levy costs. JOINT BOARDS 12,430,489 12,430,489 0 14,086,971 14,086,971 0 0.0% 0 NET EXPENDITURE 67,558,079 64,385,276 3,172,804 FAV 98,482,700 93,519,536 4,963,165 FAV 5.0% 3,792,021 FAV = Favourable Variation, underspend etc ADV = Adverse Variation, overspend etc [4] [7] PROJECTED OUT-TURN VARIANCE PROJECTED OUT-TURN % PERIOD MOVEMENT ANALYSIS NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Objective Analysis Period 12 (01 April 2022 - 03 March 2023) A - Chief Executive's DIVISION OF SERVICE BUDGET TO DATE ACTUAL TO DATE YEAR TO DATE VARIANCE ANNUAL BUDGET Page 37 of 150
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APPENDIX 2 [1] [2] [3] [5] [6] [8] [9] [10] EMPLOYEE COSTS 34,780,269 33,496,165 1,284,104 FAV 38,730,869 37,346,880 1,383,989 FAV 3.6% 981,174 Underspend due to vacancies and cost of living grant across all services. PROPERTY COSTS 1,873,294 1,916,714 (43,420) ADV 2,267,111 2,334,206 (67,096) ADV (3.0%) (3,531) SUPPLIES & SERVICES 11,017,842 9,073,657 1,944,185 FAV 10,405,943 8,289,213 2,116,729 FAV 20.3% 868,746 Underspend primarily within Business and Digital due to in year savings on contracts, mainly those relating to the cloud based solutions. TRANSPORT & PLANT 136,531 65,142 71,389 FAV 164,630 84,421 80,209 FAV 48.7% 37,893 Decreased staff travel across all areas and spend within school holiday club transport. ADMINISTRATION COSTS 4,784,114 4,649,286 134,828 FAV 6,060,838 5,965,991 94,847 FAV 1.6% 51,123 Underspends within MA Programme, printing, photocopying, postages, training and project budgets partially offset by overspends within Liability Insurance and Expected Credit Losses. PAYMENTS TO OTHER BODIES 17,810,449 17,680,978 129,471 FAV 19,349,545 19,217,189 132,355 FAV 0.7% 38,731 Decreased spend relating to by-elections, Grant Award Programme, Children's Panel (Training and TRANSFER PAYMENTS 71,748,569 71,748,569 0 111,662,988 111,654,288 8,700 FAV 0.0% 0 CAPITAL FINANCING COSTS 400,000 403,353 (3,353) ADV 4,072,342 4,075,695 (3,353) ADV (0.1%) (3,353) REVENUE FINANCING COSTS 0 0 0 0 0 0 0.0% 0 OTHER EXPENDITURE 3,036,743 3,152,484 (115,741) ADV 4,764,583 4,882,155 (117,572) ADV (2.5%) (34,762) Projected overspend in relation to MA Levy partially offset by historic underspends within miscellaneous costs. TOTAL EXPENDITURE 145,587,811 142,186,347 3,401,464 FAV 197,478,849 193,850,040 3,628,810 FAV 1.8% 1,936,021 INCOME (78,029,732) (77,801,072) (228,660) ADV (98,996,150) (100,330,503) 1,334,353 FAV (1.4%) 1,855,998 Over-recovery in relation to PPP Contributions, rent allowances / rent rebates overpayments, recharges from building cleaning and trade waste, receipt of Young Persons Guarantee Grant (MA programme) plus other minor over-recoveries partially offset by under recovery in L&D postage and printing income, legal insurance fee and registrars, Learning Centre income. NET EXPENDITURE 67,558,079 64,385,276 3,172,804 FAV 98,482,699 93,519,537 4,963,163 FAV 5.0% 3,792,019 FAV = Favourable Variation, underspend etc ADV = Adverse Variation, overspend etc [4] [7] PROJECTED OUT-TURN VARIANCE PROJECTED OUT-TURN % PERIOD MOVEMENT ANALYSIS NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Subjective Analysis Period 12 (01 April 2022 - 03 March 2023) A - Chief Executive's CATEGORY BUDGET TO DATE ACTUAL TO DATE YEAR TO DATE VARIANCE ANNUAL BUDGET Page 38 of 150
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APPENDIX 3 [1] [2] [3] [5] [6] [8] [9] [10] PAYMENTS TO OTHER BODIES GENERAL 464,452 412,897 51,555 FAV 581,180 515,180 66,000 FAV 11.4% (15,000) Underspend in relation to by-election costs MEDICAL FEES 8,640 39,114 (30,474) ADV 9,359 57,582 (48,223) ADV (515.3%) (48,223) Higher than anticipated medical fees / HMRC invoice AGENCY FEES 64,177 24,446 39,731 FAV 81,542 41,542 40,000 FAV 49.1% 40,000 Underspend based on historic spend patterns TOWN TWINNING 2,350 1,683 667 FAV 3,533 2,790 743 FAV 21.0% 743 CHILDRENS PANEL 21,512 10,754 10,758 FAV 25,035 12,984 12,051 FAV 48.1% 12,051 Decreased uptake in Training and Safeguarding costs COSLA ANNUAL LEVY 195,000 192,376 2,624 FAV 195,000 192,376 2,624 FAV 1.4% 0 COMMUNITY COUNCIL GRANTS 82,319 77,704 4,616 FAV 158,629 153,629 5,000 FAV 3.2% (5,000) GRANTS TO ORGANISATIONS 1,046,620 996,626 49,994 FAV 1,207,773 1,153,613 54,160 FAV 4.5% 54,160 EXTERNAL AUDIT FEE (2,000) 86 (2,086) ADV 529,389 540,526 (11,137) ADV (2.1%) 0 ELECTION PROVISION 0 0 0 0 0 0 0.0% 0 TOURISM - VISIT NORTH LANARKSHIRE 36,458 36,458 0 72,145 72,145 0 0.0% 0 SCOTTISH WELFARE FUND 4,006,923 4,006,922 0 4,596,509 4,596,509 0 0.0% 0 SUB-CONTRACTOR PAYMENTS 0 0 0 1,869 1,869 0 0.0% 0 LOCAL TAX PAYPOINT COMMISSION 18,509 18,509 0 35,000 35,000 0 0.0% 0 COSLA MIGRATION SCOTLAND 150,000 150,000 0 150,000 150,000 0 0.0% 0 LANDS VALUATION CONTRIBUTION 1,927,670 1,927,670 0 2,105,910 2,105,910 0 0.0% 0 SPT CONTRIBUTION 5,424,912 5,424,912 0 5,453,118 5,453,118 0 0.0% 0 SPT CONCESSIONARY FARES CONTRIBUTION 571,907 571,907 0 572,943 572,943 0 0.0% 0 CUSTOMER FIRST CONTRIBUTION 3,789,000 3,789,000 0 4,100,000 4,100,000 0 0.0% 0 TOTAL EXPENDITURE 17,808,449 17,681,065 127,385 FAV 19,878,934 19,757,715 121,218 FAV 0.6% 38,731 FAV = Favourable Variation, underspend etc ADV = Adverse Variation, overspend etc [4] [7] PROJECTED OUT-TURN VARIANCE PROJECTED OUT-TURN % PERIOD MOVEMENT ANALYSIS NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Payments to Other Bodies Period 12 (01 April 2022 - 03 March 2023) A - Chief Executive's CATEGORY BUDGET TO DATE ACTUAL TO DATE YEAR TO DATE VARIANCE ANNUAL BUDGET Page 39 of 150
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APPENDIX 4 Value % Service Specific Earmarked Reserves: PWC VAT FS 27 0 27 27 27 100.0% 0 27 Support Plan for North Lanarkshire L&D 100 (100) 0 0 0 0.0% 0 0 Digital Savings L&D 45 0 45 45 45 100.0% 0 45 Digitisation Reserve B&D 2,499 (777) 1,722 845 965 56.0% 757 965 £777k has been identified as being needed within 2023/24 and £757k is no longer required. Digital Savings B&D 1,000 (1,000) 0 0 0 0.0% 0 0 Family Firm POD 173 (173) 0 0 0 0.0% 0 0 Creation of Learning Academy POD 100 (100) 0 0 0 0.0% 0 0 Creation of Construction Academy POD 300 (300) 0 0 0 0.0% 0 0 ESC Resources Reserve POD 154 (61) 93 81 93 100.0% 0 93 Digital NL Post POD 36 0 36 33 36 100.0% 0 36 Customer Services Hub SC 212 (82) 130 124 130 100.0% 0 130 Customer Services Hub SC 50 (50) 0 0 0 0.0% 0 0 Cumbernauld Theatre SC 35 0 35 0 35 100.0% 0 35 VANL (New) SC 60 0 60 49 49 81.7% 11 49 £11k is no longer required. LDP Prog Play Areas and additional projects SC 500 0 500 500 500 100.0% 0 500 Recover NL - grant award prog SC 172 (172) 0 0 0 100.0% 0 0 Cost of Living EMR SC 0 430 430 385 430 100.0% 0 430 Cost of Living EMR (comms) SC 0 15 15 4 15 100.0% 0 15 Ukraine Humanitarian Appeal MM 15 0 15 15 15 100.0% 0 15 Pakistan Flood Appeal MM 15 0 15 15 15 100.0% 0 15 Change Management / Non-Service Specific: CLNL Insourcing POD / B&D 168 62 230 201 230 100.0% 0 230 CLNL ICT Development B&D 135 (84) 50 0 50 100.0% 0 50 TOTAL 5,796 (2,393) 3,403 2,324 2,635 77.4% 768 2,635 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 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Status of Earmarked Reserves A - Chief Executive's FINANCIAL YEAR - 2022/23 Period 12 (01 April 2022 - 03 March 2023) Page 40 of 150
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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 198 0 Reduction of ESC Admin posts POD 163 0 163 Management action taken 163 0 TOTAL 361 0 361 361 0 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Savings Period 12 (01 April 2022 - 03 March 2023) A - Chief Executive's APPROVED SAVINGS REPLACEMENT SAVING / FUNDING DESCRIPTION Value BUDGET GAP CommentaryDESCRIPTION OF APPROVED SAVING DIVISION Target Value Value Deliverable Saving Gap Page 41 of 150
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APPENDIX 6 £000 £000 £000 £000 Costs: Increased Costs 2,289 2,047 242 12 £0.019m no longer required therefore the balance of £0.233m to be carried over to 2023/24 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 799 175 624 75 Customer Service Hubs - Extension of Recover NL staff to 31/08/2023 plus additional funding approved by CMT 08/11/22 funding required in 2023/24. Contingencies 0 0 0 0 Service Costs Total 3,088 2,222 866 87 Income: Earmarked COVID Funding (3,088) (2,222) (866) (87) 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 (3,088) (2,222) (866) (87) TOTAL NET COSTS 0 0 0 0 CommentaryDESCRIPTION OF COVID-19 COSTS BUDGET PROJECTED OUT-TURN PROJECTED OUT-TURN VARIANCE PERIOD MOVEMENT NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Forecast COVID-19 Costs Period 12 (01 April 2022 - 03 March 2023) A - Chief Executive's Page 42 of 150
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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 24/05/23 Chief Executive Service – Capital Monitoring Report 1 April to 3 March 2023 (Period 12) From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 Executive Summary This report highlights the financial performance and provisional outturn for 2022/23 Chief Executive’s Service capital programme for the period ended 3 March 2023 (Period 12). In summary the Service has a total capital budget of £10.660m, comprising of £9.470m within Business and Digital and £1.190m within Communities. This budget reflects that approved by the Policy and Strategy Committee in March 2022 and the subsequent decisions made at the Strategic Capital Delivery Group (SCDG) in relation to reprofiling associated with the Capital Investment Programme Review. The Service is currently projecting year end variance of £0.746m. 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 6 Page 43 of 150
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1. Background 1.1 This report provides a summary of the Chief Executive Service financial performance for the period 1 April 2022 to 3 March 2023 (Period 12). 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 17 March 2022 with an allocated budget of £17.352m for the current year. Following a number of realignments, the allocation of growth funding and reprofiling budgets to future years the revised Capital Programme is £10.660m 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 this approved budgetary provision, and to report all significant deviations – defined as the higher of £0.100m or 5% - within their budget monitoring reports. Where significant deviations were identified, explanatory commentary must be provided to 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 Service is currently projecting an underspend of £0.746m within the current financial year due to ongoing challenges in obtaining tenders and contactors’ ability to undertake projects within previously anticipated timescales. Actual budget movements are explained in more detail in Section 2.2 below. In addition, capital budgets and expenditure are detailed in Appendix 1. 2.2 Analysis of Significant Variances 2.2.1 A explanation of variances within Business and Digital is detailed below: • Digitisation & Innovation The budget for this theme is £7.222m with a projected underspend of £0.213m. This revised position relates to suppliers now being unable to deliver services in several work streams prior to 31 March 2023. The current year spend to date per the ledger is £6.668m which is around 92% of the allocated budget. • Line of Business (LOB) This theme’s budget is £1.044m with a projected underspend of £0.204m as a result of delays in delivery and recruitment coupled with savings in procurement. Current spend is £0.443m with the service anticipating spend of £0.841m before the end of the financial year end. • End User Device (EUD) The budget for this theme is £1.204m and is projecting a minor overspend of £0.001m. There is current year to date spend of £0.072m, however there is an overall committed spend of £1.205m. There are two large commitments that are being delivered before the 31st of March which accounts for the low year to date current spend. 2.2.2 An explanation of variances within Communities is detailed below: Page 44 of 150
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The last report to committee at Period 10 presented a projected outturn underspend of £2.629m. During period 11 a reprofiling exercise was completed to reflect the approved realignments from the capital investment programme review. As at P12 the Service is projecting spend at year end of £0.860m resulting in a year end variance of £0.330m. This is due to ongoing challenges which the Service is facing in relation to contactors’ ability to undertake projects within previously anticipated timescales. 2.3 Management Actions 2.3.1 The Service has faced challenges throughout the financial year in respect of lengthy contract delivery times, difficulties in obtaining tenders for projects and competing resources resulting in the reprofiling of resources to better reflect the likely phasing of project costs. Activity, risks and challenges are actively managed by the Service to ensure delivery of projects with phasing of associated programmes regularly reviewed and updates being provided to the SCDG, DigitalNL Board and Committee accordingly. 3. Measures of success 3.1 The Service aim is to operate within approved budget resources over the term of the capital programme. 4. Supporting documentation 4.1 Appendix A Summary Expenditure by Project / Theme Elaine Kemp Chief Officer (Finance) Page 45 of 150
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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 Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Service aims to operate within approved funding levels across the term of the programme and utilise budget virements to support emerging issues. 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 Resources? 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? 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 46 of 150
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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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 47 of 150
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Appendix 1 Chief Executives Capital Programme 2022/23 Thematic Expenditure Summary 1st April 2022 - 3rd March 2023 (Period 12) Theme Budget £ Actual £ Committed £ Uncommitted £ Projected Outturn £ Outturn variance £ Digitisation & Innovation 7,221,528 6,667,838 7,008,718 0 7,008,718 212,810 Line of Business (LOB) System Portfolio 1,044,287 442,846 838,930 1,785 840,715 203,572 End User Device (EUD) Refresh 1,203,902 72,309 1,204,950 0 1,204,949 -1,047 TOTAL BUSINESS and DIGITAL 9,469,717 7,182,992 9,052,598 1,785 9,054,382 415,335 COMMUNITIES Community Board Project Investment Fund 1,189,915 721,748 859,487 0 859,487 330,428 TOTAL COMMUNITIES 1,189,915 721,748 859,487 0 859,487 330,428 TOTAL CHIEF EXECUTIVES 10,659,632 7,904,741 9,912,085 1,785 9,913,869 745,763 YTD OUTTURN Page 48 of 150
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/GT/RMcN Date 24/05/23 Capital Programme 2022/23 Monitoring Report From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 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. The Strategic Capital Delivery Group (SCDG) met to agree reprofiling requests in February 2023. However, challenges remain and as a result, it is currently anticipated that the General Fund programme will underspend during 2022/23 by £15.733m. The largest element relates to the timing of the acquisition of The Centre Cumbernauld which will be concluded in 2023/24. Requests will be made to the SCDG for permission to carry forward the unused expenditure to the 2023/24 year of the programme. Similarly, with 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 but this has been offset by increases in build costs for both the New Build and Mainstream programmes together with the purchase of land and “off the shelf” developments earlier than anticipated; resulting in an overspend of £5.081m. Recommendations It is recommended that the Committee: (1) Acknowledges the financial position of the Council’s Strategic Capital Investment Programme as at 3 March 2023. 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 7 Page 49 of 150
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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 £146.724m with a £110.358m 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 Annual Update was presented to Policy and Strategy Committee on 29 September 2022. The report highlighted a reduction in projected resources as a result of higher borrowing costs and lower than anticipated Council Tax growth. Consequently, there was a requirement to reduce the current 5-year capital investment programme by £22.076m. The budget reductions were approved at Policy and Strategy Committee on 1 December 2022. On 7 February 2023, the SCDG considered the profile of these budget reductions, including any impact on 2022/23 and these were reflected in the revised Strategic Capital Investment Programme approved at Policy and Strategy Committee on 16 March 2023. 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 50 of 150
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Table 1 2.1.2 On a budgeted programme of £257.082m expenditure is anticipated to be £10.652m 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. Community Capital Investment Programme Summary 2022/23 Current Programme £000s Projected Outturn £000s Outturn Variance £000s Enterprise & Communities 133,810 118,876 14,934 Chief Executives 10,660 9,914 746 Adult Health & Social Care 2,254 2,201 53 General Services: Total Capital Investment 146,724 130,991 15,733 General Services Resources: General Fund External Grants & Contributions 2021/22 58,748 58,748 0 External Grants & Contributions b/f 2020/21 7,124 7,124 0 External Grants & Contributions Unapplied (11,253) (11,253) 0 Net External Grants & Contributions 54,619 54,619 0 Capital Receipts 1,000 2,468 1,468 Capital Receipts -Transfer to Capital Fund 0 (1,468) (1,468) CFCR 10,520 10,520 0 General Services: Total Resources 66,139 66,139 0 General Services : Borrowing Requirement 80,585 64,852 (15,733) HRA : Total Capital Investment 110,358 115,439 (5,081) HRA Resources: Net External Grants & Contributions 24,122 26,444 2,322 Capital Receipts 0 8 8 CFCR 27,146 27,146 0 HRA : Total Resources 51,268 53,598 2,330 HRA : Borrowing Requirement 59,090 61,841 2,751 Summary Total Council : Capital Investment 257,082 246,430 10,652 Total Council : Resources 117,407 119,737 2,330 Total Council : Borrowing Requirement 139,675 126,693 (12,982) Page 51 of 150
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General Services Total Resources 2.2.2 The revised programme approved by the SCDG is £146.724m with total resources available to meet the current programme forecast to be £66.139m, resulting in a borrowing requirement of £80.585m. 2.2.3 In 2022/23 net external grants and contributions of £54.619m 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, £1.905m Free School Meals, Strathclyde Passenger Transport (SPT) £1.725m, Nature Restoration Fund £0.305m and Play Parks £0.319m. 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. This has been offset by £11.253m of external grant and contributions which will not be applied in 2022/23, including £3.443m for VDLF, £3.036m for RCGF £2.001m for PBIP, £1.905m for Free School Meals, £0.319m for Play Parks, £0.270m for Nature Restoration Fund and £0.230m for VDLIP, in respect of projects which will not now be completed until 2023/24. 2.2.4 Receipts from the sale of assets are projected to be £2.468m, which is £1.468m 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 future revenue budget strategy. General Services Total Expenditure 2.2.5 As indicated in Table 1 the General Services investment programme is £146.724m. At Period 12, the final outturn spend is anticipated to be £15.733m under budget. This is primarily due the acquisition of The Centre Cumbernauld being concluded in 2023/24. In addition, the investment programme continues to face uncertainty with contractor cashflows meaning that even at this late stage of the financial year there will be programme expenditure completed in 2023/24. 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 £118.876m, which is £14.934m under budget. This is primarily attributable to attributable to finalisation of asset and property management arrangements resulting from the purchase of The Centre Cumbernauld not concluding until the 2023/24 financial year (£9.745m). In addition, across the service there continue to be uncertainties in programme phasing and delivery linked to contractor cashflow estimates including with the Town and Community Hub projects (£1.601m), Street Lighting replacement (£1.766m) and footpath works Cambusnethan Cemetery (£0.888m). These are partially offset by accelerated expenditure on the Bellshill Depot programme (£0.713m). Elsewhere there is also programme slippage linked to weather delays in re-roofing projects (£0.410m) and due to contractor delays for the provision of temporary modular accommodation at Taylor High School (£0.406m). There are a number of additional more minor variances reported as standard through the service monitoring report. A request will be made to the next meeting of the SCDG for permission to carry forward the net underspend of £14.934m to the 2023/24 financial year. Committed expenditure of £115.668m is currently reported, which represents 97.30% of the targeted expenditure, and actual expenditure is £92.653m. Page 52 of 150
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2.2.7 Chief Executive’s projects total expenditure of £9.914m, which is £0.746m under budget. This is mainly attributable to challenges faced in obtaining bids for projects subject to tender and contractors being unable to deliver projects within previously agreed timelines. Committed expenditure of £9.912m is currently reported, which represents 99.98% of the targeted expenditure, and actual expenditure is £7.905m. 2.2.8 Adult Health & Social Care project outturn expenditure of £2.201m, which is £0.053m under budget. This is attributable to heightened uncertainties in respect of demand and complexity of need as a result of the pandemic. The in-year variance will be re-profiled across the remainder of the 5-year capital investment programme. Committed expenditure of £1.947m is currently reported, which represents 88.46% of the targeted expenditure, and actual expenditure is £1.706m. 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 3 March 2023 is provided at Appendix 3. Total expenditure of £115.439m is forecast for 2022/23 which is £5.081m over budget, attributable to increased material and contractor costs of £2.881m for the Mainstream Programme and £5.604m for the New Build Programme, due to opportunities presented to buy land and “off the shelf” developments earlier than anticipated, partially offset by lower than budgeted purchases through the Council’s Buy Back Schemes of £3.404m. Committed expenditure of £110.609m is currently reported, which represents 95.77% of the targeted expenditure, and actual expenditure is £85.848m. 2.4 Service Re-profiling Requests 2.4.1 As indicated in paragraph 2.2.6, to ensure available resources more closely reflect operational activity across themes, final outturn positions for service areas will be assessed and requests to re-profile budget to future years of the programme may be required and these will be presented for approval at future meetings of the 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 Chief Officer (Finance) Page 53 of 150
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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 Finance? 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 Resources? 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? 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 54 of 150
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Where the impact identifies a requirement for significant technology change, 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. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 55 of 150
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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 (699) (1,206) (250) 0 (2,155) 0 (2,155) 22/23 Policy & Strategy Committee reprofiling (23) 0 0 0 (23) 0 (23) Increase/(Decrease) in Externally Funded Projects (1,602) 364 0 0 (1,238) 7,000 5,762 CFCR 10,020 500 0 0 10,520 0 10,520 22/23 Acceleration of projects from future years approved by SCDG 827 0 0 0 827 0 827 22/23 Re-profiling of projects to future years approved by SCDG (37,676) (6,528) 0 0 (44,204) 0 (44,204) Revised Capital Programme 2022/23 133,810 10,660 2,254 0 146,724 110,358 257,082 Page 56 of 150
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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 @ P12 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P12 £000s Enterprise & Communities 133,810 118,876 14,934 115,668 97.30% 92,653 Chief Executives 10,660 9,914 746 9,912 99.98% 7,905 Adult Health & Social Care 2,254 2,201 53 1,947 88.46% 1,706 Total General Services Investment 146,724 130,991 15,733 127,527 97.36% 102,264 General Services Resources; External Grants & Contributions 2022/23 58,748 58,748 0 External Grants & Contributions b/f 2021/22 7,124 7,124 0 External Grants & Contributions Unapplied cfwd to 2022/23 (11,253) (11,253) 0 Net External Grants & Contributions 54,619 54,619 0 CFCR 10,520 10,520 0 Capital Receipts 1,000 2,468 1,468 Capital Receipts - Transfer to Capital Fund 0 (1,468) (1,468) Total Resources 66,139 66,139 0 Borrowing Requirement: General Services 80,585 64,852 (15,733) Total General Services Borrowing Requirement 80,585 64,852 (15,733) Total Resources incl Borrowing Requirement 146,724 130,991 (15,733) Page 57 of 150
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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 @ P12 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P12 £000s Mainstream Programme 59,950 62,831 (2,881) 62,830 100.00% 48,116 New Build Programme 39,436 45,040 (5,604) 45,040 100.00% 31,917 Council Buy Back Scheme 10,972 7,568 3,404 2,739 36.92% 5,815 Total HRA Investment 110,358 115,439 (5,081) 110,609 95.77% 85,848 HRA Capital Resources; External Grants & Contributions 24,122 26,444 2,322 External Grants & Contributions Unapplied 0 0 0 Net External Grants & Contributions 24,122 26,444 2,322 CFCR 27,146 27,146 0 Capital Receipts 0 8 8 Total Resources 51,268 53,598 2,330 Borrowing Requirement: HRA - Mainstream 30,474 31,865 1,391 HRA - New Build 21,788 25,354 3,566 HRA - Buyback Scheme 6,828 4,622 (2,206) Total Borrowing Requirement 59,090 61,841 2,751 Total Resources incl Borrowing Requirement 110,358 115,439 5,081 Page 58 of 150
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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 24/05/23 Treasury Management Monitoring Report for quarter ended 31 March 2023 From Elaine Kemp, Chief Officer (Finance) E-mail mcnameer@northlan.gov.uk Telephone Ryan McNamee, Finance Manager 1. Background 1.1 The Council manages its treasury activities in line with the CIPFA Code ‘‘Treasury Management in the Public Services’. The Code requires the Council to produce reports on its Treasury Management policies, practices and activities on a regular and ongoing basis. The Council fulfils these obligations, in part, by the preparation of this Treasury Management Monitoring report produced on a quarterly basis, encompassing a review of performance. 1.2 The Treasury activity undertaken in the final quarter of 2022/23 reflects the key requirements of the Council’s 2022/23 Treasury Management Strategy, with the Public Works Loan Board (PWLB) and Long-term Money Market being the prime source of long- term funds. In terms of investment activity, this is conducted in accordance with the approved 2022/23 investment strategy. Executive Summary This report fulfils the key requirements of the Council’s reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. It informs on the quarterly Treasury Management activity for the period 1 January 2023 to 31 March 2023 and compliance with the mandatory treasury and prudential indicators. Recommendations It is recommended that Committee note the Treasury Management Activity for the quarter ended 31 March 2023 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 8 Page 59 of 150
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2. Report 2.1 Summary Position 2.1.1 The net overall borrowing position to 31 March 2023 is £838.2m, which is an increase of £40.6m from the position at the 31 December 2022. A detailed breakdown of the net cash movement is shown in column (6) within Appendix 1. 2.2 Borrowing 2.2.1 At the end of the quarter, total external debt amounted to £915.9m which represented an increase of £63.5m. This was primarily due to additional net longer term borrowing of £37.1m being undertaken, comprising new PWLB borrowing of £60.0m partially offset by £12.9m of PWLB debt and £10.0m of market loans falling due for repayment. 2.2.2 The Council sourced £20.0m of PWLB loans on 21st February 2023 at 4.25% over 15 years, £20.0m sourced on 17th March 2023 at 4.40% over 14 years and a further £20.0m sourced on 28th March 2023 at 4.03% over 13 years, all on an equal instalment payment (EIP) basis. The EIP terms provide a smoother debt maturity profile spreading the refinancing risk. The interest rates achieved are within anticipated budgeted levels. 2.2.3 In addition, there was a net increase in temporary borrowing activity of £28.0m, with £78.0m of new borrowing being offset by £50.0m falling due for repayment, and lease payments under existing finance lease and PPP obligations of £1.6m falling due for repayment. 2.2.4 The approach to borrowing is in line with the approved strategy, the Council sourcing long-term borrowing and whenever possible, taking advantage of temporary (short-term) borrowing at attractive rates and use of internal cash balances to meet the principal repayments, daily revenue account requirements and the capital financing requirement in lieu of future borrowing for capital purposes. The strategy adopted considers 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. 2.2.5 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 30 April 2023 and beyond, subject to a further successful application for 2023/2024 during April 2023. 2.3 Debt Restructuring 2.3.1 During the quarter under review, in conjunction with our Treasury advisors, we monitored the economic climate in relation to our financial targets and Treasury Management strategy. The interest rates prevailing throughout the period resulted in no beneficial opportunities for debt restructuring /rescheduling of the existing PWLB debt portfolio arising. 2.3.2 The Council continued to hold £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. Page 60 of 150
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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 final quarter of 2022/23, the Council held total investments of £77.7m, which is a net increase of £22.9m in cash and cash equivalents, mainly due to a £30.8m increase in short-term investments, partly offset by an increase in the bank overdraft including cash in transit of £7.9m, 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 £415.2m and undertaking new short-term investments of £446.0m. 2.4.3 At quarter end, the bank overdraft including cash in transit was £7.5m which is a net overdrawn position compared to the net cash position of £0.5m at the end of the previous quarter. The negative net cash movement reflects BACS payroll and creditor payment runs which fell due for clearance at the end of the quarter. The bank overdraft primarily represents amounts drawn on the account at the 31 March 2023 comprising £7.6m of net BACS payments outstanding due for clearance within 3 days of the quarter end date, cheques unpresented of £0.2m, partly offset by a balance of £0.3m 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 1 February 2023, the Bank of England Base Rate was increased from 3.50% to 4.00% and then by a further 0.25% to 4.25% on 22 March 2023, to help combat ongoing high inflation, fuelled by high energy and commodity prices and its impact on consumers cost of living as well as the low likelihood that the Russia-Ukraine hostilities will end any time soon with associated impact on supply chains. The increases in the Bank of England Base Rate over the period under review, resulted in short-dated cash rates ranging between 0.7% - 1.5% at the beginning of April, rising by around 3.5% 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 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, no repayments 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 Forecasters advise that the ongoing conflict in Ukraine continued to keep global inflation above central bank targets and the economic outlook for UK remains relatively weak with the chance of a mild recession. The economic backdrop during Page 61 of 150
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the January to March period continued to be characterised by high energy and commodity prices, high inflation, and the associated impact on household budgets and spending. The Bank of England, Federal Reserve and the European Central Bank all increased interest rates over the period and committed to combatting inflation, even in the face of potential recession. 2.5.2 As outlined above, the Bank of England increased the official Bank Rate to 4.25% over the period. The Monetary Policy Committee (MPC) has approved rises at every meeting this year, with most recent rises of 0.50% in February and 0.25% in March. The MPC in March again noted that domestic inflationary pressures remain elevated with growth stronger than was originally forecast in February’s MPC report. 2.5.3 UK inflation remained extremely high but there are tentative signs it may have peaked. Annual headline CPI reduced from 10.5% in December to 10.1% in January, before unexpectedly rising again to 10.4% in February with a further slight reduction to 10.1% in March. This was a lower reduction in March than envisaged, which may push the Bank of England to increase the Base Rate further in May. RPI remained steady at 13.4% in January, rising to 13.8% in February and falling slightly to 13.5% in March. This following the decision by the UK government under Rishi Sunak and Jeremy Hunt to reverse some of the support to household energy bills announced under Liz Truss, further support in the form of a cap on what energy suppliers could charge household was announced in the March Budget to run from April until the end of June 2023. Before the announcement, typical household bills had been due to rise to £3,000 a year from April. 2.5.4 The labour market remained tight through the period but there was some on-going evidence of potential softening demand for new labour at the end of the period. The unemployment rate for April 2022 of 3.8%, declined to 3.6% in July and picked up again to 3.7% in December and increased to 3.8% in March. Pay growth in March was 5.9% for total pay (including bonuses) and 6.6% for regular pay. However, once adjusted for inflation, both measures were negative and have been so throughout the year. 2.5.5 Uncertainty continued to be a key driver of financial market sentiment and bond yields remained relatively volatile due to concerns over elevated inflation and higher interest rates, as well as the likelihood of the UK entering a recession and for how long the Bank of England would continue to tighten monetary policy. Towards the end of the period, fears around the health of the banking system following the collapse of Silicon Valley Bank in the US and purchase of Credit Suisse by UBS caused further volatility. 2.5.6 Over the period the 5-year UK benchmark gilt yield rose from 1.41% to peak at 4.7% in September before ending the financial year at 3.36%. Over the same timeframe, the 10-year gilt yield rose from 1.61% to peak at 4.51% before falling back to 3.49%, whilst the 20-year yield rose from 1.82% to 4.96% and then reduced to 3.82%. This resulted in the PWLB 10 year borrowing rate reducing from 4.79% at the start of the quarter to 4.53% at the end of the quarter, showing a spread of 0.75% between the highest and lowest interest rate which were 4.87% and 4.12% respectively, averaging 4.51%. 2.5.7 A new HRA PWLB rate of gilt yield plus 0.4% (0.4% below the currently available certainty rate) was announced on 15th March 2023. This discounted rate is to support local authorities borrowing for Housing Revenue Accounts and the delivery of social housing and is expected to be available from June 2023, initially for a Page 62 of 150
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period of one year. A detailed review will be undertaken in conjunction with our treasury management advisors to establish if this is a borrowing opportunity that the Council can access. 2.5.8 Following the increases in the base rate in February and March, short-term borrowing interest rates increased with the short term 7-day offer rate ranging between 3.55% and 4.31% 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 where possible rather 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. 2.5.9 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 £50.1m. This reflects decrease of £35.1m in the General Fund capital investment and £15.0m for the HRA Mainstream and New Build programmes. This is primarily due to the investment programmes 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, and lower than budgeted purchases through the Council’s Buy Back Schemes. 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 £80.5m due to a reduction in HRA and General Fund programmes of £59.1m and £21.4m respectively. The forecast level of borrowing also reflects a net increase in capital grants and external contributions of £19.9m with additional funds available to the General Fund and HRA programmes of £13.4m and £6.5m respectively. An additional £10.6m 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. Page 63 of 150
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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 will be accounted for in future years. (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 £246.2m as at 31 March 2023. 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 31 March 2023 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 £0.1m 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. This current loan charge underspend is made up of: • A net treasury management overspend of £0.3m is projected (£0.5m General Fund overspend offset by underspend of £0.2m 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. • In 2022/23 it is anticipated there will be reduction in anticipated loans fund advance repayments of £0.4m (£0.1m and £0.3m for the General Fund and HRA respectively). This is primarily due to the Council benefiting from the revised loans fund advance repayment policy approved at the Finance and Resources Committee on the 26 November 2020, whereby the Council continues to use the annuity model, apply a fixed average life to the loans fund advances, and apply a prudent annuity rate. (viii) Indicator 3(c) relates to the level of fixed debt due to mature within time periods. The level of debt maturing remains within the upper limits set for each category at the beginning of the financial year. 3.1 Measures of Success 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 Page 64 of 150
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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 31 March 2023 Appendix 2: Summary of Treasury and Prudential Indicators as at quarter ended 31 March 2023 Elaine Kemp Chief Officer (Finance) Page 65 of 150
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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 Finance? 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 Resources? 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? 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 66 of 150
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Where the impact identifies a requirement for significant technology change, 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. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 67 of 150
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LOANS, LONG TERM LIABILITIES & INVESTMENTS AS AT 31 MARCH 2023 Appendix 1 DEBT RESTRUCTURING BALANCE 1-January-23 EARLY REDEMPTION REFINANCING NEW BORROWING / LONG-TERM LIABILITIES PRINCIPAL REPAYMENTS NET CASH MOVEMENTS BALANCE 31-March-23 (1) (2) (3) (4) (5) (6) (7) LONG-TERM LOANS PWLB 402,123,229 0 0 60,000,000 (12,889,924) 47,110,076 449,233,305 MONEY MARKET LOANS 67,000,000 0 0 0 (10,000,000) (10,000,000) 57,000,000 ENERGY EFFICIENCY LOAN 1,003,658 0 0 0 (26,023) (26,023) 977,636 470,126,888 0 0 60,000,000 (22,915,947) 37,084,053 507,210,940.58 SHORT-TERM LOANS TEMPORARY 214,000,000 0 0 78,000,000 (50,000,000) 28,000,000 242,000,000 MUNICIPAL BANK 0 0 0 0 0 0 0 INTERNAL LOANS 6,280 0 0 0 0 0 6,280 214,006,280 0 0 78,000,000 (50,000,000) 28,000,000 242,006,280 LONG -TERM LIABILITIES FINANCE LEASE OBLIGATIONS 1,547,311 0 0 0 (4,503) (4,503) 1,542,808 LONG TERM LIABILITY 166,679,105 0 0 0 (1,553,058) (1,553,058) 165,126,047 168,226,416 0 0 0 (1,557,561) (1,557,561) 166,668,855 TOTAL EXTERNAL DEBT 852,359,583 0 0 138,000,000 (74,473,508) 63,526,492 915,886,075 INVESTMENTS THIRD PARTY ADVANCES 1,178,234 0 0 0 0 0 1,178,234 BANKS & OTHER FINANCIAL INSTITUTIONS 53,107,371.11 0 0 0 0 30,834,099 83,941,470 BANK OVERDRAFT INCL CASH IN TRANSIT 506,208 0 0 0 0 (7,959,069) (7,452,861) CASH & CASH EQUIVALENTS 54,791,813 0 0 0 0 22,875,030 77,666,843 NET BORROWING 797,567,770 0 0 138,000,000 74,473,508 40,651,462 838,219,232 Page 68 of 150
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Summary of Treasury and Prudential Indicators as at quarter ended 31 March 2023 Appendix 2 1. Capital Expenditure, Capital Financing Requirement and Prudential Margin (a) Capital Expenditure Initial Estimate 2022/2023 (£m) Projected Outturn 2022/2023 (£m) Variance 2022/2023 (£m) Total spend : Capital Expenditure 296.5 246.4 50.1 Total spend : Credit Arrangement 0.0 0.0 0.0 Total Capital Investment 296.5 246.4 50.1 Financed By: Borrowing 207.2 126.7 80.5 Capital receipts 1.0 2.5 (1.5) Capital receipts transfer to Capital Fund 0.0 (1.5) 1.5 Capital Grants & Other External Contributions 61.2 81.1 (19.9) Capital from Current Revenue 27.1 37.7 (10.6) (b) Prudential Margin Calculation Initial Estimate 2022/2023 (£m) Projected Outturn 2022/2023 (£m) Variance 2022/2023 (£m) Capital Financing Requirement 1,321.8 1,207.3 114.5 Gross Borrowing 1,194.3 961.1 233.2 Prudential Margin 127.5 246.2 (118.7) 2. Authorised Limit and Operational Boundary Initial Authorised Limit 2022/2023 (£m) Initial Operational Boundary 2022/2023 (£m) Maximum Borrowing Level Q4 2022/2023 (£m) Borrowing 1,215.0 1,240.0 749.2 Other Long-term Liabilities 185.0 185.0 165.1 Totals 1,400.0 1,425.0 914.3 3. Treasury Management Indicators a) Interest Rate Exposures on External Interest Payments Position as at 31/03/2023 (£m) % External Interest Payable on Fixed Rate Loan Debt 22.8 98.1% External Interest Payable on Variable Rate Loan Debt 0.4 1.9% b) Loans Fund Revenue Account Initial Estimate 2022/2023 (£m) Projected Outturn 2022/2023 (£m) Variance £m) %age Loans Fund Interest Payments 30.0 30.8 (0.8) -2.7% Loans Fund Expenses 0.4 0.4 0.0 0.0% Total Loans Interest Payments & Expenses 30.4 31.2 (0.8) -2.7% Loans Funds Investment Income (0.2) (0.7) 0.5 -250.0% Total Loans Fund Interest Payments Investment Income & Expenses 30.2 30.5 (0.3) -1.0% Allocated as follows : Loans Fund Interest Payments Investment Income & Expenses:General Fund 17.6 18.1 (0.5) -2.9% Loans Fund Interest Payments Investment Income & Expenses:HRA 12.6 12.4 0.2 1.5% Capital Advances Repayments - General Fund 8.8 8.7 0.1 1.2% Capital Advances Repayments - HRA 10.1 9.8 0.3 3.4% Total Capital Advances 18.9 18.5 0.4 2.4% Total Loan Charges 49.1 49.0 0.1 0.3% 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 Q4 8.8% 4.7% 11.9% 11.9% 20.4% 36.8% 5.5% Maturity structure at the end of Q4 6.1% 4.1% 13.6% 15.3% 21.7% 34.1% 5.1% Page 69 of 150
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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 24/05/23 Revenues and Benefits Update From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 Executive Summary This report provides an update on the performance within the Revenues and Benefits functions of Financial Solutions as at 31 March 2023. Key points to note include: • As at 31 March 2023, 94.89% of Council Tax due for 2022/23 had been collected. This is an increase of 0.28% on the same period last financial year. • Non-Domestic Rates collection has shown a year-on-year increase from 93.68% to 31 March 2022 to 94.43% to 31 March 2023 • The service continues to meet statutory timescales for administering benefits applications and changes of circumstance. • The service continues to support the administration of Cost-of-Living support measures. 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 9 Page 71 of 150
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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, Fuel Hardship Payment, Pensioner Fuel Grant and the North Lanarkshire Child Payment. 2. Report Council Tax 2.1 The graph below shows the cash collected at 31 March 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 94.89% is 0.28% 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 may be improving Council Tax collection figures for 2022/23. 2.3 Members will recall that this one-off £150 credit to Council Tax accounts for eligible households will reduce Council Tax bills throughout 2022/23. 2.4 It should be noted that in-year collection of Council Tax is a Statutory Performance Indicator. However, it does not reflect the overall collection rate of Council Tax which includes collection of prior year arrears. This latter measure has a greater bearing on the Council’s finances and is reflected in the regular budget monitoring reports to Committee. 90 91 92 93 94 95 96 97 98 99 100 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Percentage of annual billing collected (%) Financial Year Council Tax Collection Rate at 31 March Page 72 of 150
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Non-Domestic Rates 2.5 The following graph shows the cash collected at 31 March for each financial year. 2.6 The collection figure for 2022/23 at 31 March is 94.43%; 0.75% higher lower than the same period last financial year; demonstrating greater in year collection for NDR during 2022/23. Revised recovery processes for Non-Domestic Rates were implemented during 2022/23 which has led to earlier recovery action in the financial year. This earlier engagement with businesses has improved overall collection rates, 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. Housing Benefits 2.8 The data below highlights the Statutory Performance Indicators measuring the speed of processing for new Housing Benefit claims and for changes in circumstances. The table shows the cumulative figures for the year to 31 March 2023. The Scottish average comparator is based on the latest information published by DWP at Q4 2021/22. Days to Process 2021/22 2022/23 Quarter 4 2021/22 Scotland Average New Claims 13 15 17 Change of Circumstances 7 8 3 2.9 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 2.10 As at 31 March 2023 a total of £24.383m in Council Tax Reduction has been awarded for the 2022/23 financial year. This compares to £23.989m to the same period during 2021/22, representing a small increase of £0.394m (1.6%). 90 91 92 93 94 95 96 97 98 99 100 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 31 March Page 73 of 150
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2.11 The service received 6,685 applications between 1 April 2022 and 31 March 2023 compared with 6,623 during the same period during 2021/22, representing a small increase of 0.9%. 2.12 The service continues to see a downward trend in the volume of changes in circumstances requests. From 1 April 2022 to 31 March 2023 a total of 92,711 changes were processed compared to 133,403 the previous financial year; a decrease of 30.5%. Discretionary Housing Payments 2.13 From 1 April 2017 funding for DHP has been devolved to Scottish Government. This funding supports 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. 2.14 From 1 January 2023 the Scottish Government is fully funding the implications of the benefit cap as per the Scottish Ministers wishing to see the benefit cap mitigated as far as possible within devolved powers. This was announced as part of the tackling child poverty delivery plan; Best Start, Bright Futures in March 2022. Local authority Leaders have agreed to fuller benefit cap mitigation through the DHP scheme from 1st January 2023. The Scottish Government is adding funds to the 2022/23 DHP budget to cover the cost of claimants’ benefits removed by the cap between the periods 1st January to 31st March 2023. 2.15 As at 31 March 2023 the total paid in respect of Bedroom Tax was £5.374m. In comparison this sum was £5.351m as at the same point in 2022. 2.16 In addition the Council also receives £0.603m in respect of non-bedroom tax related issues. The Scottish Government also provided an additional £0.131m of an underspend funding distribution. Then late into 2022/23, an additional £0.146m was provided as part of an overall allocation of £2.5m across Scottish local authorities, which part of could be carried forward to be used in 2023/24 if not fully spent. This increased the annual budget to £0.881m. As at 31 March 2023 £0.759m (86%) has been paid or committed from the fund; the remaining £0.122m (14%) will be carried forward for use in 2023/24. 2.17 The Service will continue to liaise with colleagues in Housing Solutions and Housing Associations to encourage applications to the fund. Scottish Welfare Fund 2.18 The Council has administered the Scottish Government’s Scottish Welfare Fund (SWF) since 1 April 2016. 2.19 The Scottish Government provides an annual award budget of £2.760m to North Lanarkshire Council. In recognising the current cost of living crisis, the Council’s Investment Budget for 2022/23 allocated an additional £0.500m on a one-off basis. In addition, the Council allocated £1.142m on a one-off basis from the Scottish Government’s Financial Insecurity Fund to support the maintenance of Scottish Welfare Fund at Medium priority during 2022/23. In addition, additional Scottish Government funding of £0.195m was received late in the financial year in recognition of the continuing impacts of the cost-of -living crisis. Therefore, the total award budget for 2022/23 was £4.597m. 2.20 There are two grant schemes and their relative performance during 2022/23 and prior year comparison is as follows: Page 74 of 150
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2022/23 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 20,876 15,942 4,934 76.4% Community Care Grants 6,246 4,533 1,713 72.6% Total 27,122 20,475 6,647 75.5% 2021/22 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 18,258 13,557 4,701 74.2% Community Care Grants 6,472 4,965 1,507 76.7% Total 24,730 18,552 6,208 75.0% 2.21 As at 31 March 2023, the total financial value of grants paid from the Scottish Welfare Fund amounted to £4.807m which represents 104% of the total budget for the current financial year. The year end overspend of £0.210m is reflective of the increased demand for grants with an increase in awards for Crisis Grant of 17.6% in 2022/23 compared to 2021/22. In addition, the average value of awards has increased during 2022/23; with a 6.5% increase in average award for Crisis Grants and 11.1% increase in average award for Community Care Grant. 2.22 The overspend on Scottish Welfare Fund is fully offset by additional administration grants received by the service to support UK Government and Scottish Government grant schemes. 2.23 Despite fluctuating demand, the Service continues to assess applications within the timescales outlined within Scottish Government guidance. Crisis applications are assessed within the two working day time limit and Community Care Grants within the fifteen working day limit recommended by the Scottish Government. 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 was 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 were then 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 In late December 2022 the Scottish Government confirmed the closure of the scheme to new applicants on 5 January 2023. Anyone who had booked a PCR test through the scheme portal on or before this date can apply for the grant up to 28 days from their positive PCR test result. 2.27 As at 31 March 2023, for the 2022/23 financial year the Council received 1,366 applications and awarded a total of 676 with a combined value of £0.246m. Page 75 of 150
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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 can support a maximum of 14,000 payments. 2.30 As at 16 April 2023, the Council had received 6,189 applications for the Fuel Hardship Payment. A total of 3,572 (57.7%) have been awarded totalling £0.536m and 2,606 have been rejected because the applicant was ineligible (42.1%),the service was awaiting additional information on 11 further applications. 2.31 The Pensioner Fuel Grant was initiated in November 2022 with the Council writing to 8,560 eligible households to provide bank details to ensure the £100 grant payment can be made directly to their bank accounts. 2.32 As at 16 April 2023, 7,886 payments have been made to eligible households (92%). A total of 515 (6%) eligible pensioners have not responded or died prior to returning a bank mandate. The service is currently dealing with 146 cases where additional information is required. 2.33 Finally, the North Lanarkshire Child Payment was processed in late 2022 for the parents / guardians of 12,487 eligible children. 2.34 Lower than anticipated demand for some of these schemes, particularly the Fuel Hardship Payment, has meant there was a year end underspend at 31 March 2023. This was considered at the Wellbeing and Tackling Poverty Committee on 5 May 2023 and agreed that £1.487m of residual resources would be transferred to the Scottish Welfare Fund to allow for priority levels to be maintained at ‘Medium’ level during 2023/24. 3. Measures of success 3.1 Continuous improvement in processing and collection rates. 4. Supporting documentation None Elaine Kemp Chief Officer (Finance) Page 76 of 150
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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 Finance? 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 Resources? 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? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 77 of 150
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Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 78 of 150
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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 24/05/23 North Lanarkshire Properties LLP – Performance Indicators: 28 July 2022 to 11 January 2023 and Financial Performance as at 6 January 2023 From James McKinstry, Chief Officer (Assets and Procurement) 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 28 July 2022 to 11 January 2023 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 6 January 2023. 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 28 July 2022 to 11 January 2023; 2. Acknowledge NLP LLP’s financial performance during the period from 1 April 2022 to 6 January 2023; 3. Acknowledges 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 10 Page 79 of 150
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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 28 July 2022 to 11 January 2023 , which fulfil the reporting requirements Page 80 of 150
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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 20 properties were let, renewed or assigned (12 Office; 1 Retail and 7 Industrial) and there were 9 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 increased from 10.57% in P4 22/23 to 13.62% in P10 22/23. This corresponds with annual trends for the same periods in previous years. Service Delivery Highlights 2.5 NLP have concluded the refurbishment of 4 industrial units at Netherbank Road in Wishaw and are currently negotiating new lease terms with NLC for three of the available units. The successful re-letting of these long-term vacant premises underpins the prudent strategy for investment where allowable and illustrates that there continues to be demand for good quality property within this sector. 2.6 NLP have partnered with NLP Growth Team to develop the existing Braidhurst Industrial Site in Motherwell where the development value is estimated to be in the region of £6m. Funding of £1.8m has been secured from the Scottish Government Regeneration Capital Grant Fund (RCGF) and a further £1.3m from Place Based Investment Programme (PBIP) for the construction of around 10 incubator units to bring and support small to medium sized local businesses. The project is being jointly funded by NLC and NLP where NLP has committed to provide up to 10% of the project value estimated in the region of £600,000, subsequent to an increase in the projected project costs. NLC have also committed to provide £2.8m towards the project. 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. 2.7 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. 3. Financial Impact Public Accountability Obligations – Financial year 2022/23 3.1.1 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. 3.1.2 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. Page 81 of 150
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3.1.3 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. 3.1.4 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. Financial Performance 1 April 2022 to 6 January 2023 3.1.5 Based on the financial performance to 6 January 2023 a projected transfer into reserves of £0.114m is reported to 31 March 2023. This is a favourable movement of £0.458m against a budget transfer out of reserves of £0.344m. A Projected Debt Service Covenant (PDSC) of 1.02 to 1 is projected at 31 March 2023. This is in excess of the revised ratio agreed with Barclays Bank of 0.5 to 1. Further details on financial performance are given in Appendix 2. 3.1.6 Appendix 3 provides key Balance Sheet balances at 6 January 2023 along with the previous year’s comparative figures and commentary. Indicators worthy of note include: - • Current asset ratio of 2.62:1 at 6 January 2023 which indicates that the company continues to have positive liquidity under its continued operating trading. • Cash backed useable reserves are projected to increase from £5.565m at March 2022 to £6.065m at March 2023 as a result of income generated from the sale of land. Projected Cashflow to January 2024 3.1.7 Appendix 4 provides the projected cashflow to 31 January 2024. The minimum balance of cash projected to be held was £7.560m in September 2023. This demonstrates that in the short-term NLP will continue to hold sufficient levels of cash. Budget 2023/24 3.1.8 NLP continue to operate in a challenging environment as a result of the current cost of living crisis, the war in Ukraine and the previous Covid-19 pandemic. Therefore, a range of budget planning scenarios were considered during the budget setting process. The budget, approved by the Board in February 2023, is based on assumptions which are in line with those used in North Lanarkshire Council medium term financial plan. 3.1.9 The NLP Board approved a budget transfer of £0.320m out of reserves and reporting a Projected Debt Service Cover Ratio (PDSC) of 0.92:1. The budget incorporates anticipated increases in rental income due to ongoing rent reviews and increased expenditure in employee and property costs as a result of anticipated pay awards and increases in utility charges. Further details of the 2023/24 Budget are given at Appendix 5. Performance against approved budget will continue to be carefully monitored throughout the forthcoming year. Page 82 of 150
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Bank Covenant 3.1.10 In recognition of the current cost of living crisis a meeting was held with representatives of Barclays Bank and it was agreed to extend the realignment of reported covenants to a level of 0.5:1 until the end of the Facilities Agreement in October 2023. 3.1.11 NLC continue to monitor NLP financial performance closely with updates provided to the Corporate Management Team. Refinancing October 2023 3.1.12 NLP’s financial borrowing agreement with its current lender, Barclay’s Bank plc, ceases in October 2023 and a new funding arrangement requires to be put in place to fund the remaining balance. 3.1.13 External advisors, Azets, were appointed to support the internal project team in the preparation of documents outlining the borrowing requirements and terms for issue to lenders. 3.1.15 Progress of the project will continue to be reported to the Finance and Resources Committee at the appropriate timescales. 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 refurbishment of the units at Netherbank Road will bring previously unlettable units back into productive use and provide additional letting income for the company. 3.3 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 Performance Update – 28 July 2022 to 11 January 2023 Financial Performance to 6th January 2023 Overall Financial Standing – Balance Sheet as at 6th January 2023 NLP Cash Flow Forecast to January 2024 Approved Budget 23/24 JAMES MCKINSTRY Chief Officer (Assets and Procurement) Page 83 of 150
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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 Finance? 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 6 January 2023 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 Resources? 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? 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 84 of 150
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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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 85 of 150
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Appendix 2 North Lanarkshire Properties LLP Financial Performance to 6 January 2023 Income & expenditure 2022/23 2022/23 2022/23 Commentary Annual Budget Projected Outturn Variance £m £m £m Rental, SLA income and Insurance Income 6.104 6.477 0.373 Favourable variance due in relation to rental income and ongoing rent reviews Investment and other income 0.000 0.001 0.001 Minor favourable variance Total Income 6.104 6.478 0.374 Expenditure; Employee costs (0.662) (0.597) 0.065 Favourable variance due to vacancies Property Costs (1.905) (1.966) (0.061) Adverse variance due to increasing utility and security patrol costs offset by a reduction in property insurance charges. Supplies & Services & Admin Costs (0.689) (0.609) 0.080 Favourable variance due to underspends within marketing, IT maintenance costs and software licence fees. Financing Costs (1.817) (1.817) 0.000 Total Expenditure (5.073) (4.989) 0.084 Accounting Profit 1.031 1.489 0.458 Loan Principal Repayments (1.376) (1.376) 0.000 Profit Transferred to/(out) Reserves (0.344) 0.114 0.458 Covenant Ratio based on Cash Flow 0.91 1.02 Page 90 of 150
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Appendix 3 North Lanarkshire Properties LLP Overall Financial Standing - Balance Sheet as at 6 January 2023 Balances/ Indicator Balance as at 06 Jan 2023 Outturn 31 March 2022 Variance Commentary £m £m £m Fixed Assets 68.946 68.946 0.000 Current Assets: Trade Debtors 1.220 1.113 0.107 Variance mainly due to timing of rent runs and 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 9.211 9.101 0.110 Increase predominately as a result of higher interest rates 10.157 9.941 0.217 Current Liabilities: Creditors (2.158) (2.610) 0.452 Year end accountancy adjustments in predominately in relation to reserve projects. Other Creditors inc. VAT & other taxes (0.623) (0.946) 0.322 Year end accountancy adjustments Loan payments due in <1 yr (1.095) (1.376) 0.281 Loan Repayment Schedule agreed with bank (3.876) (4.932) 1.056 Net current Assets/(liabilities) 6.282 5.009 1.273 Loan repayments due in > 1 yr (32.591) (33.686) 1.096 Loan Repayment Schedule agreed with bank Defined scheme pensions liabilities 0.000 0.000 0.000 Net Asset / (Liabilities) 42.637 40.268 2.368 Current Ratio 2.62 2.02 A current ratio exceeding 1 indicates the company has sufficient resources to meet its current commitments. Cash Backed Reserves available for use Projected Balance at 31 Mar 2023 Actual Balance at 31 Mar 2022 £m £m Useable Reserves 2.865 2.865 0.000 Working Capital Reserve 2.700 2.700 0.000 Proceeds From Property Disposals 0.500 0.000 0.000 Proceeds from sale of land Total Available Cash Backed Reserves 6.065 5.565 0.500 Page 91 of 150
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Appendix 4 Page 92 of 150
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Appendix 5 North Lanarkshire Properties LLP Approved Budget - 23/24 Income & expenditure 2022/23 2023/24 Approved Commentary Annual Budget Annual Budget Movement £m £m £m Rental, SLA income and Insurance Income 6.109 6.409 (0.300) Budget increased as a result of ongoing rent reviews and proactive approach by NLP to let vacant properties Investment and other income 0.000 0.000 0.000 Total Income 6.109 6.409 (0.300) Expenditure; Employee costs (0.662) (0.710) 0.048 Budget increased to reflect actual pay increases arising from pay awards during 2022/23 and estimated additional pay awards for 2023/24. Property Costs (1.905) (2.132) 0.227 Budget increased to reflect increasing energy costs and estimated inflationary increases on contract cleaning, building management and security. Supplies & Services & Admin Costs (0.694) (0.694) 0.000 Financing Costs (1.817) (1.817) 0.000 Total Expenditure (5.078) (5.353) 0.275 Accounting Profit 1.031 1.056 (0.025) Loan Principal Repayments (1.376) (1.376) 0.000 Current loan ends on 31/10/23 and current refinancing negotiations are ongoing, therefore assumed same repayment will be required for 2023/24. Profit Transferred to/(out) Reserves (0.344) (0.320) (0.025) Projected Debt Service Cover Ratio (PDSC) 0.91 0.92 Page 93 of 150
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref IM/SD/PF Date 24/05/23 Amenity Land Sales Policy Update 2023 From James McKinstry, Chief Officer (Assets and Procurement) E-mail Martini@northlan.gov.uk Telephone Ian Martin 07966 397637 1. Background 1.1 A previous report relating to a review of processes and practices for Amenity Land Sales was approved by the Policy and Resources (Property) Sub-Committee in November 2010. This report included a review of the pricing structure and fees and became effective on 1st January 2011. 1.2 A further report titled “Asset Management Plan – Amenity Land Sales Policy 2011” which set out an updated policy incorporating the revised fees and pricing structure was approved at the Policy and Resources (Property) Sub-Committee in April 2011. Executive Summary The purpose of this report is to advise committee of proposed changes to the Amenity Land Sales Policy together with the applicable sales rates and to seek approval for the updated Policy. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledges the contents of this report. (2) Adopts the Policy “Amenity Land Sales”. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (4) Market and promote North Lanarkshire as the place to live, learn, work, invest, and visit AGENDA ITEM 11 Page 95 of 150
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1.2 Recognising the passage of time and the effect of inflation, it is proposed that we review our current practices for disposing of small areas of ground for the purpose of additional garden extensions referred to in the Report as “Amenity Land”. 1.3 The term “Amenity Land” includes the provision of ground for extensions to gardens, garages and driveways but excludes new separate dwellings. 1.4 The Review will include a revised pricing structure for the sale of Amenity Land in North Lanarkshire and a summary of the main changes are noted in Section 2 below. 2. Summary of main changes to Policy Document 2.1 The number relates to the corresponding Sections within the Policy document: 3.6 New paragraph explaining why the council requires a Standard Security where necessary. 3.7 New paragraph regarding flatted developments. 3.8 Applications for land which more naturally sits with neighbouring properties. 4.2 Estates team added to list of consultees. 5. Revised pricing framework for land value rates and fees (detailed below). 5.5 New paragraph on pricing and policy for servitude/common path amendments and delegated authority. 5.7 Land values to be reviewed annually reflecting the higher of Retail Price and Consumer Price Indices and applied to new applications received from 1st April each year. 5.8 New paragraph clarifying that where an application is refused, further applications for the same or similar land will not be accepted for a period of three years. 6.2 New paragraph regarding applications where an owner or resident has a disability meriting a sale at a nominal sum. Head of Property Services is now Chief Officer (Assets & Procurement) throughout the document. 2.2 Pricing 2.2.1 Existing Pricing With effect from 1 January 2011, the Council’s pricing policy for the sale of small areas of Amenity Land has been based on council tax banding. The current levels are noted in table 1 below. Page 96 of 150
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Table 1 Council Tax Band Rate per square metre A-C £20 D £30 E-G £40 2.2.2 Estates consulted several other councils about their pricing structure. Of the 7 councils who responded, most are charging between £10 per square metre and £55 per square metre for Amenity Land. It should be noted that most councils charge considerably more for extensions, driveways, garages etc. whilst some have these valued separately by their Estates Department. Many of the councils consulted advised that their prices have not been reviewed for several years and that they would be interested in the findings of our consultations. NLC prices for the proposed revised pricing includes extensions, driveways, garages etc. To simplify the process and negate the need for a valuation to be undertaken, we propose the figures outlined below in table 2 reflecting most proposed uses but expressly excluding a separate dwelling(s). The current minimum charge for all “Amenity Land” is £500 regardless of the area of land to be sold. The use of council tax banding has worked well and will be retained. 2.2.3 Proposed Pricing New levels proposed as part of this policy update reflect a 50% increase on existing values per table 2 below, which is less than the 52% annual Retail Price Index (RPI) inflation rate since January 2011. Table 2 Council Tax Band Rate per square metre A-C £30 D £45 E+ £60 2.2.4 The rates in table 2 will be applied to the area of land to be sold. To prevent the value of the revenue generated from Amenity Land sales being eroded by inflation, land sale rates will be reviewed annually by index linking to the higher of Retail Price Index (RPI) and Consumer Price Index (CPI) figures with the resultant revised rates becoming effective 1st April each year. The revised rates will be rounded upwards to the nearest pound rather than adopt pound and pence figures and will apply to new applications received from 1st April each year (excepting 2023 when the new rates will become effective 1st July). Page 97 of 150
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In addition, delegated authority to sell Amenity Land at these rates is granted to the Chief Officer (Assets & Procurement). The level of charges will be reviewed again in future as part of the ongoing schedule of policy reviews. The current £500 minimum charge will become £1,000 to reflect the rise in land values since the existing rates were set in January 2011 and to offset the inflationary erosion upon the value of money since then. 2.3 Applicants are responsible for the Council’s fees in connection with their application, the current charges from the 2011 policy are noted in table 3 below. Table 3 Fee Element Current Charge Legal Fees £330 Surveying & Administration Fee £275 Planning fee for change of use Statutory charge The new proposed fees as part of the proposed policy update are as follows: - Table 4 Fee Element Reviewed Charge Legal Fees From £330 however, can vary depending on complexities of individual cases Surveying & Administration Fee £450 + VAT Planning fee for change of use Statutory charge The Surveying and Administration Fee increase reflects the significant resource costs to the Council of administering the application process and the potential for further complexities to arise. The Council’s Surveying and Administration Fee includes the cost of surveying and preparing a suitable disposal plan. 2.4 Where a sale is not intended to be progressed in accordance with the pricing arrangements noted above, the case will require to be reported to the Chief Officer (Assets & Procurement) in the form of a delegated authority report. The report should detail why any variation from the standard pricing is being recommended. 2.5 Where a servitude route/right of access is to be amended on property titles, the pricing for this service starts at £1,000 whilst the Surveying & Administration Fee and legal fee will be borne by the owner/applicant wishing to make the change. The owner/applicant will further be liable for NLC’s legal costs incurred to amend the relevant property titles as required. A delegated authority report will be prepared with recommendations for the Chief Officer (Assets & Procurement) in such cases. Page 98 of 150
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2.6 From time to time the Estates team receives applications to purchase additional ground from the Council for garden purposes where an owner or resident of a property would potentially benefit from the ground to support an enhanced standard of living, or an adaptation to the property because of additional needs as a result of disability. In such instances, where they can provide suitable documentary evidence of the disability to the Estates team, it is proposed that the sale of ground should be assessed at a nominal value of £1 subject to the Council’s Surveying and Administration fees being met by applicants. 2.7 Implementation Date Current, ongoing cases and new applications received until 31 May 2023, will attract the current land rates and fees. The new policy will become effective 1st July 2023 to provide a clear cut off date for the existing arrangements. 3. Measures of success 3.1 The proposed changes will increase the revenue received by the Council from the sale of Amenity Land and will further offset the increased cost of the resources required to service the applications. 4. Supporting documentation Appendix 1 – Amenity Land Sales - 2023 JAMES MCKINSTRY Chief Officer (Assets and Procurement) Page 99 of 150
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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 Finance? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The proposed changes sale will generate extra revenue for 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 Resources? 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? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The Council will increase the rates at which Amenity Land can be sold for. 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 ☐ Page 100 of 150
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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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 101 of 150
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Appendix 1 – Amenity Land Sales – 2023 Page 102 of 150
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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 24/05/23 Lease of Former Whifflet Park Bowling Club, 11 Bute Street, Coatbridge, ML5 4HF From James McKinstry, Chief Officer (Assets & Procurement) 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 40-year lease to Burnbank Football Club for refurbishment works of the former pavilion and conversion of the bowling greens into football pitches. The Football Club, which has been in existence since the 1950s require a long-term lease to meet the criteria requirement for an application for grant funding to the Scottish Football Association to invest in improving the current bowling green into a training pitch. The grant funding will realise the Club’s aim of running a Football Academy for local young people and the wider community. Recommendations It is recommended that the Finance and Resources Committee: 1) Agrees to grant a 40-year lease to Burnbank Football Club on the terms detailed within this report; 2) Acknowledges the inclusion of the additional area of land to be incorporated within the extent of the area to be leased; and 3) All other terms and conditions to be adjusted by the Chief Officer (Assets & Procurement) The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (22) Facilitate a North Lanarkshire wide approach to asset rationalisation, including with communities and partners AGENDA ITEM 12 Page 109 of 150
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1. Background 1.1 The previous occupiers of the subjects, Whifflet Park Bowling Club, ceased operating on 31 March 2011. 1.2 The area in question was declared surplus on 14 August 2012 by the Policy & Resources (Regeneration & Infrastructure) Sub-committee. The subjects comprise two grass bowling greens and part of a pavilion with a net internal area of 79.72 square metres (858 square feet) or thereby. The existing area leased shown shaded on the attached plan located within Whifflet Public Park, extends to 6,443 square metres (1.59 acres) or thereby. 1.3 Burnbank Football Club has leased the former pavilion and bowling greens from North Lanarkshire Council since 2012 on a month-to-month full repairing and insuring (FRI) lease. 1.4 A part of the pavilion consists of changing rooms, toilets and showering facilities which will be retained by North Lanarkshire Council for community lets. 1.5 It is proposed that an additional area of land extending to 719 square metres (0.17 acre), shown hatched on the attached plan is incorporated within the existing leased area. 1.6 Legal opinion obtained following a review of the title deeds that this area of land falls under has confirmed that the land, which is currently unmaintained and unused, is not Common Good. 2. Report 2.1 A provisional agreement has been reached with the tenant on the following terms and conditions: - (i) Lease Term: 40 years. (ii) Proposed Rent: £2,000 per annum exclusive of VAT. (iii) Date of Entry: To be arranged between the parties. (iv) Rent Reviews: 5 yearly reviews. (v) Use: Sporting activities. (vi) Repairs & Insurance: The lease will be a full repairing and insuring lease. (vii) Service Charge: The tenant will pay an appropriate share of utility costs. (viii) Statutory Consents: The Tenant will be responsible for complying with all statutory requirements in relation to their occupation and use of the subjects and will relieve the Council of all such requirements. In particular, the Tenant will be responsible for obtaining the requisite Planning Permission and Building Control approvals for their use of the property. Page 110 of 150
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3. Measures of success 3.1 Committee approval for the 40-year lease to be granted to Burnbank Football Club will enable the club to apply for grant funding from the Scottish Football Association. If successful with their application. This funding will bring a community facility up to a modern standard and facilitate and encourage community involvement in sport. 4. Supporting documentation Appendix 1 – Location Plan JAMES MCKINSTRY Chief Officer (Assets & Procurement) Page 111 of 150
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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 Finance? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The council will receive a modest rental income through the lease of this property. 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 Resources? 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? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The council will be entering in to a lease agreement. 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 112 of 150
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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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 113 of 150
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref LY/IM/Ward21 Date 24/05/23 Proposed Sale of Amenity Land to the Rear of 15 Stuart Quadrant, Wishaw From James McKinstry, Chief Officer (Assets and Procurement) E-mail Martini@northlan.gov.uk Telephone 07966 397637 Executive Summary The purpose of this report is to seek consent to dispose of the land shown on the attached plan to the owner of the adjacent property at 15 Stuart Quadrant, Wishaw. Recommendations It is recommended that the Finance and Resources Committee: i) Approves the sale of land adjacent to 15 Stuart Quadrant, Wishaw on the terms detailed within this report. ii) All other terms and conditions to be adjusted by the Chief Officer (Assets and Procurement). The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (4) Market and promote North Lanarkshire as the place to live, learn, work, invest, and visit AGENDA ITEM 13 Page 115 of 150
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1. Background 1.1 In March 2022 the Council received an enquiry from the owner of the property at 15 Stuart Quadrant, Wishaw about purchasing the area of land shown highlighted on the plan attached at Appendix 1. The area extends to 14 square metres or thereby and forms part of an unallocated car space. 1.2 A previous application to buy this area of land was received from the owner of number 17 Stuart Quadrant in 2019. That application was refused on the basis of consultation responses received from the Roads Department and Local Housing Office. 1.3 The owner of 15 Stuart Quadrant has previously enquired about purchasing the car space in 2021, and that application was refused on the same grounds. 1.4 The current enquiry is again from the owner of 15 Stuart Quadrant and was initially refused. 2. Report 2.1 Description 2.1.1 The land shown highlighted on the plan attached at Appendix 1 extending to 14 square metres or thereby is currently part of an unallocated car space serving the properties in Stuart Quadrant. 2.1.2 The title plan from Registers of Scotland indicates that part of the parking bay is already included in the property boundary for 15 Stuart Quadrant, as shown on the plan attached at Appendix 2. 2.2 Consultations 2.2.1 On receipt of the most recent enquiry in March 2022 initial correspondence was issued to the applicant advising that the Council would not be able to progress her enquiry as she had previously been advised in 2021 of the objections raised by the Roads Department and the Local Housing Office. 2.2.2 Both the Roads Department and Local Housing Office confirmed they preferred the space to remain communal. Housing also commented that the space attached more naturally to the boundary of number 15’s property. Where an objection is received from any department the application cannot proceed. 2.2.3 Upon the refusal of the current request the applicant approached a Local Member for assistance. An approach was made by the Councillor to the Estates Team and on further consultation, objections were withdrawn. 2.2.4 Following the withdrawal of operational objections, Local Members were consulted, and an objection raised over concerns about the fairness of the process given that the first two applications to purchase this land were refused. The Local Member has raised 8 points in the objection as detailed below: 1. Has the owner of number 17 Stuart Quadrant been informed of the intentions to buy from the applicant at number 15? Page 116 of 150
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Response: Neighbour notifications are not part of the amenity land sales process. Estates would not have consulted with neighbours when number 17 applied to buy the space in 2019. As part of the disposal process, once an informal offer of sale has been issued applicants are required to obtain planning permission for a change of use. The planning application process involves a neighbour notification exercise and at that point objections are invited concerning material matters affecting planning policy. 2. The loss of a parking space in Stuart Quadrant, I doubt the applicant would allow anyone to use a space they have purchased. Response: Originally there were two parking bays for common use between the rear gardens of 15 and 17. The bay to the rear of number 17 was included in the original Council house sale and now forms part of their rear garden. Part of the remaining parking bay is already within the boundary of number 15’s property. See Appendix 2. A full parking bay can only be achieved by selling the land to the current owner of number 15. Should number 15 erect a fence to the full extent of their boundary, any car parked in the remainder of the bay would overhang the pavement. 3. Our Estates Officer refused the owner of number 17 the right to buy. Response: Applications from both 15 and 17 were refused on the same grounds. Only following further consultation were the objections withdrawn and the current application progressed. 4. Housing agreed that the bay would sit more naturally in the garden of number 15 but is also adjacent to number 17 but agreed with the Estates Officer that the space stays as a needed parking place. Response: The Local Housing Office and Roads have withdrawn their objections to the sale of the land. As noted above, part of the bay is already within the boundary of number 15’s property. Therefore, any sale of the 14m2 area would not create a full parking space. This could only be achieved if the land was sold to number 15. It must also be noted that the owner of number 15 takes access to her rear garden directly from the parking bay. There is no pavement space or other separation between the bay and number 15’s gate/fence. Sale of this piece of land to number 17 would block the access arrangements to number 15’s rear garden. 5. The space was designated to be communal, which it still is. Response: Similarly unallocated or communal spaces have been sold in the past where there is no operational objection. 6. Is it fair that a Councillor can get involved in this purchase and turn round a decision of our departments. Response: The object of consultation with internal departments and Local Members is to ensure interested parties have the opportunity to make comments on the proposal. Where agreement cannot be reached the case is brought before Committee for consideration. 7. Is it fair that the owner of number 17 Stuart Quadrant was not consulted and given the chance to purchase this space after all his was the first approach? Response: As outlined above, part of the space is already owned by number 15 and selling the remainder of the bay to number 17 would affect access to the rear garden Page 117 of 150
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of number 15. No consultation is undertaken with neighbours at initial application stage. Any offer of sale would be made subject to the granting of planning permission for a change of use. Neighbour notification is carried out as part of the planning application and objections are invited at that stage. 8. This parking space if sold will leave Stuart Quadrant minus a greatly needed space and two neighbours at loggerheads for the foreseeable future. Response: Sale of the land will regularise the boundary between the two properties and would end any dispute over who is entitled to use the land. 2.3 In view of the facts outlined above, it is recommended that the land is sold to the applicant/homeowner at 15 Stuart Quadrant in order to regularise the boundary between the two properties. 3. Measures of success 3.1 The sale of this land would result in a capital receipt to assist the council’s income. The alternative is that the land is retained in council ownership. 4. Supporting documentation 4.1 Appendix 1: Location plan 4.2 Appendix 2: Extent of 15 Stuart Quadrant’s ownership JAMES MCKINSTRY Chief Officer (Assets & Procurement) Page 118 of 150
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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 Finance? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The sale of this ground will generate a capital receipt for 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 Resources? 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? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The council will be entering into legally binding missives for sale of the land. 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 119 of 150
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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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 120 of 150
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Appendix 1: Location plan showing application area (outlined red) Page 121 of 150
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Appendix 2: Extent of 15 Stuart Quadrant’s ownership Page 122 of 150
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref: NLC-NTP-22-179 Date: 24 May 2023 Contract Award for Progress Licence and Software Maintenance From Chief Officer (Business & Digital) E-mail hassellk@northlan.gov.uk Telephone: 07903 096121 Executive Summary Finance & Resources Committee is asked to acknowledge the award of a contract for Progress Licence and Software Maintenance (the ‘Contract’) to Progress Software Ltd. The Contract is for an initial period of 24 months and commenced on 1 April 2023. The value of the Contract shall not exceed One hundred and eighty-four thousand Pounds Sterling (£184,000) exclusive of VAT. Recommendations It is recommended that Finance & Resources Committee acknowledges the award of the Contract to Progress Software Ltd at the maximum value of One Hundred and Eighty-Four Thousand Pounds. The contract award for Progress License and Software Maintenance was made using the Negotiated Tendering Procedure (NTP) outlined with section 9 of the GCSO, with advice sought from the Chief Officers of Asset & Procurement and Legal and Democratic, for the proposed use of the Negotiated Tendering Procedure to make the contract award to Progress Software. The contract is for a period of Twenty-Four months, and the value of the Contract shall not exceed One Hundred and Eighty-Four Thousand pounds sterling (£184,000) exclusive of VAT. The Plan for North Lanarkshire Priority All priorities Ambition Statement All ambition statements AGENDA ITEM 14 Page 123 of 150
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1. Background 1.1 The requirements within the Contract are currently under contract with Progress Software Ltd. This contract is due to expire on 1 April 2023 with the Contract detailed within this report superseding it. 1.2 This contract is for the Annual licence Maintenance and support for NLC Progress applications deployed on Unix servers. There are currently 6 Progress applications residing on the council’s Unix Solaris estate – all developed in-house over the last 20 years - namely: Building Cleaning Management System (BCMS) - provides work order and recharge facilities, for the maintenance of council facilities. Municipal Bank – manages the council’s bank (recently the bank service has stopped but the management of the legacy account information remains for a 6-year period). Home Insurance – manages council house insurance for tenants. Housing Services Management System (HSMS) – manages multiple Housing Service- related functions including Tenancy Management, Rent Accounting, Common Housing Register and Allocations, Homelessness, Arrears and Court Processing, Housing Support, Repairs and Maintenance, Gas Servicing, Property and Estate Management, Anti-Social Behaviour. Application Control System (ACS) – manages the batch processing for all Progress applications and databases. GIFT – file transfer management system for BACS, ledger, files etc. 1.3 All these applications, and the associated Unix platform on which they are currently hosted, are subject to review of potential replacement and/or decommissioning over the next 3 years. 1.4 The licences cover the application development tools, database and application server per user and CPU connections to the databases, and client access software components and are required to develop in-house application software by NLC staff rather than external vendors of software applications. 1.5 Progress Software is the sole supplier of their own technology platform software components that organisations choose to develop IT applications internally and licences are not available through resellers. 1.6 Initially it was intended to direct award this contract through the SVAR framework. However, this has been unsuccessful as the supplier Progress Software are unwilling to conform to the framework Terms and conditions. Further searches and confirmation from the supplier have confirmed that NLC cannot access this supplier on any framework, therefore the only option available for award is this NTP. 2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, discuss trading processes, market conditions and trends, ways to maximise community benefits and sustainability and to agree the procurement strategy that would deliver maximum benefit for the Council via the Contract. 2.2 The initial estimated value of the Contract dictated that the procurement procedure be undertaken in accordance with the Councils General Contract Standing Orders. 2.3 The procurement procedure was undertaken as a “Negotiated Tender Procedure” (NTP) in accordance with Regulation 9 of the Councils General Contract Standing Orders. Following advice from the Chief Officer (Asset and Procurement) and the Chief Officer (Legal and Page 124 of 150
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Democratic), the Chief Officer (Business and Digital) approved the progression of the NTP on 03 April 2023. 2.4 The Contract award recommendation is made on the basis of the justification detailed and appraised within the associated “NTP Strategy” document and following an assessment of the tender received by Progress Software Ltd to ensure it was complete and compliant with the Councils requirements. 2.5 Further details of the procurement procedure are provided in Appendix 1 and the SME status and location of the tenderer is located within Appendix 2. 2.6 The value of the Contract is One Hundred and Eighty-Four Thousand pounds sterling (£184,000) exclusive of VAT including any option to extend the Contract. 2.7 The costs associated with contract delivery will be contained within the Revenue budget for Business & Digital. Price Savings / Increases 2.8 The pre-tender whole life estimate for the Contract was £184,000. The cost has remained the same as previous years, with no excessive increases. Price Stability 2.9 The pricing is fixed for the duration of the contract. Community Benefits 2.10 The procurement did not include a community benefit requirement. Fair Work First 2.11 Within their tender submission, Progress Software Ltd. advised that they will commit to the Scottish Governments “Fair Work First” initiative: Contract Management 2.12 Officers from Business & Digital 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 Continued maintenance and support of the council’s Progress application systems hosted on Unix estate by Progress Software Ltd who licence the database and application services. Page 125 of 150
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4. Supporting documents Appendix 1 Summary of Procurement Process Appendix 2 SME Status and Location of All Tenderers Katrina Hassell Chief Officer (Business & Digital) Page 126 of 150
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Appendix 1 – Summary of Procurement Process Response CPT Contract Reference Allocated: NLC-NTP-22-179 Tender Platform Utilised: Other Procurement Procedure Utilised: Negotiated Tender Procedure (NTP) Governing Legislation / Regulations: Councils General Contract Standing Orders Date Contract Strategy / NTP Approved: 03 April 2023 Date Tender Documents Released: 03 April 2023 SME % of Expressions of Interest: 0 NLC Based % of Expressions of Interest: 0 Tender Return Deadline: 04 April 2023 Number of Tenders Received: 1 Tenders Received from SME’s: 0 Tenders Received from NLC Based Tenderers: 0 Number of Recommended Tenderers: 1 Assessment Team: John McBride, Heather Mooty Anticipated Contract Start Date: 01 April 2023 Total Contract Period (Months): 24 months Maximum Total Contract Value: £184,000 Page 127 of 150
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Appendix 2 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium, or Large) Location (Local Authority / Council Area) Progress Software Large USA Page 128 of 150
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref: NLC-NTP-22-135 Date: 24 May 2023 Enterprise Project – Contract award for technical and commercial advisory services From James McKinstry, Chief Officer (Assets and Procurement) E-mail mckinstryj@northlan.gov.uk Telephone: via Microsoft Teams Executive Summary Committee is asked to acknowledge the award of a contract for technical and commercial advisory services to Optimum Professional Solutions Limited (the ‘Contract’). The Contract was awarded via a Negotiated Tendering Procedure in accordance with General Contract Standing Order 9 (GCSO 9), this report explains the circumstances justifying the use of GCSO 9. The Contract is for an initial period of 6 months and commenced February 2023. The Council reserves the right to extend the Contract for a further period or periods of up to 14 months. The maximum contract period being 20 months. The value of the Contract shall not exceed four hundred and forty thousand Pounds Sterling (£440,000) exclusive of VAT. Recommendations It is recommended that the Finance & Resources Committee: (1) acknowledge the award of the Contract to Optimum Professional Solutions Limited, following the completion of a Negotiated Tender Procedure in accordance with GCSO 9 at the maximum value of four hundred and forty thousand Pounds Sterling (£440,000) exclusive of VAT. The Plan for North Lanarkshire Priority All priorities Ambition Statement (24) Review and design services around people, communities, and shared resources AGENDA ITEM 15 Page 129 of 150
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1. Background 1.1 The Council’s existing strategic partnerships for Housing & Corporate Maintenance Services and Roads & Infrastructure Maintenance Services expire in January 2024 and June 2024 respectively. The delivery of the successor contracts are the principal components of the first phase of the Enterprise Project. 1.2 Optimum Professional Solutions Limited was commissioned in June 2022 to provide support to the procurement of the new Roads & Infrastructure Maintenance & Improvement Services contract, the estimated value of the commission was £50,000. It quickly became apparent that the level of support, in terms of scope and value, required from Optimum Professional Solutions Limited would exceed the original estimate. 1.3 The original contract value was reached in January 2023 and a range of technical and commercial supports from Optimum Professional Solutions Limited continue to be required to support the procurements for Roads & Infrastructure Maintenance & Improvement Services and Housing and Corporate Maintenance and Investment Services. 1.4 The Contract makes provision for: a. finalisation of the overall commercial strategy/tactics for the new service provision in terms of the desired commercial emphasis, approach to risk, pricing options/payment mechanisms and incentivisation (including the extension approach); b. developing the performance regime(s), including the drafting of a strategic maturity matrix (including pricing maturity) and appropriate KPIs; c. proposing a service credit (deductions) model(s); d. drafting the pricing and price evaluation models and associated pricing submission templates; e. appraising and proposing the inflationary indices/indexation approach(es) to be used; f. ensuring the selected approaches in bullet points a - e above, provide evidence to demonstrate VFM; and g. providing wider ad hoc advice and input including linking the commercial considerations into legal/contract advice provided by the other project advisors. 2. Report 2.1 The estimated value of the Contract dictated that the procurement procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. 2.2 The procurement procedure was undertaken as a “Negotiated Tender Procedure” (NTP) in accordance with GCSO 9 and Regulation 33 of the Public Contracts (Scotland) Regulations Page 130 of 150
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2015. Following advice provided by the Corporate Procurement Team on behalf of the Chief Officer (Assets and Procurement) and the Chief Officer (Legal & Democratic), the Chief Officer (Assets and Procurement) approved the progression of the NTP to directly award the Contract to Optimum Professional Solutions Limited on 18 January 2023. 2.3 Use of the Negotiated Tender Procedure in accordance with GCSO 9 is justified as: a) the Council requirements relate specifically to the technical and commercial expertise required to ensure successful outcomes for Enterprise Project related procurements. Availability of organisations with these skills are scarce in the marketplace and challenging to secure. Optimum Professional Solutions Limited has experience of providing similar services and delivering successful outcomes at other local authorities across the UK. The Project Team is not aware of any other organisation that can provide the requisite technical and commercial skills within the required timescales; and b) the service area and the Project Team share the view that it is in the Councils best interest to contract with Optimum Professional Solutions Limited and that no reasonable alternative exists. Should the Council decide not to contract with Optimum Professional Solutions Limited, this would create undesirable duplication of work and adversely impact on project timelines, ultimately putting the delivery of essential services at risk. 2.4 The total maximum value of the Contract is four hundred and forty thousand Pounds Sterling (£440,000) exclusive of VAT including any option to extend the Contract: a) costs associated with the provision of support for the Roads & Infrastructure Maintenance & Improvement Services contract are estimated as £260,000 (including the original £50,000 commission) and will be met from the existing service area budget; and b) costs associated with the provision of support for the Housing and Corporate Maintenance and Investment Services contract are estimated as £180,000 and will be met from the agreed Enterprise Project budget. 2.5 Further details of the procurement procedure is provided in Appendix 1 and the SME status and location of the service provider is located within Appendix 2. Price Savings / Increases 2.6 The day rates in the Contract are competitive when compared with other Enterprise Project commissions. The Contract does not facilitate financial savings nor make provision for price increases. Price Stability 2.7 The Contract is based on a number of day rates (excluding VAT and expenses) which are fixed for the duration of the Contract. Community Benefits 2.8 Given the nature of services required and the procurement procedure adopted, the procurement did not include a community benefit requirement. Page 131 of 150
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Fair Work First 2.9 The Contract will deliver against “Fair Work First” practices, including payment of the real Living Wage. Contract Management 2.10 Officers from the relevant service area will manage the aspects of the Contract relating to the Roads & Infrastructure Maintenance & Improvement Services procurement, the Core Project Team will manage aspects of the Contract relating to the Housing and Corporate Maintenance and Investment Services procurement. Management of the Contract will be undertaken in accordance with the Councils agreed approach to contract and supplier management. 3. Measures of success 3.1 The Contract will inform commercial and technical aspects of the new contracts for Roads & Infrastructure Maintenance & Improvement Services and Housing and Corporate Maintenance and Investment Services. 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 Chief Officer (Assets & Procurement) Page 132 of 150
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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 Finance? 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 Resources? 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? 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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Page 133 of 150
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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? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex-Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 134 of 150
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Appendix 1 – Summary of Procurement Process Response CPT Contract Reference Allocated: NLC-NTP-22-135 Tender Platform Utilised: Other Procurement Procedure Utilised: Negotiated Tender Procedure (NTP) Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy / NTP Approved: 18 January 2023 Date Tender Documents Released: N/A SME % of Expressions of Interest: N/A NLC Based % of Expressions of Interest: N/A Tender Return Deadline: N/A Number of Tenders Received: 1 Tenders Received from SME’s: 1 Tenders Received from NLC Based Tenderers: 0 Number of Recommended Tenderers: 1 Assessment Team: Enterprise Project Team Anticipated Contract Start Date: 01 February 2023 Total Contract Period (Months): Maximum of 20 months Maximum Total Contract Value: £440,000 Page 135 of 150
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Appendix 2 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Optimum Professional Solutions Limited Micro Preston City Council Page 136 of 150
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref: NLC-CPT-23-003 Date: 24 May 2023 Contract Awards for Supply and Distribution of: Fresh Meats; Cooked Meats; and Fresh Fish From James McKinstry E-mail McKinstryJ@northlan.gov.uk Telephone: 07939 281102 Executive Summary Scotland Excel’s Multi-lot Framework Agreement for Supply and Distribution of Fresh Meats, Cooked Meats and Fresh Fish 0322 (the “Framework”) is now live, established for the period 1 April 2023 until 31 March 2027. This Framework is available for use by participating members including the Council. The tender evaluation model used for each lot on the Framework produced a ranked list of Contractors, scored against each Council’s requirements. Approval is sought from Finance & Resources Committee to award three individual call-off contracts (“Contracts”) to the Contractors with the highest tender score (rank 1 position) for the Council’s requirements as follows: • From Lot 1 Fresh Meat – recommended Contractor is McLays Limited • From Lot 2 Cooked Meats – recommended Contractor is Brake Bros Limited • From Lot 4 Specialised Products - recommended Contractor is McLays Limited The duration of the Contracts would be aligned to the Framework. Based on previous usage and forecasting demand, the Council’s anticipated aggregate spend across these contracts would be two million, seven hundred and eighty-five thousand pounds sterling (£2,785,000) exclusive of VAT. Recommendations It is recommended that Finance & Resources committee approves the following Contract Awards: (1) from Lot 1 Fresh Meats to McLays Limited, estimate contract value £1,700,001 excl.VAT (2) from Lot 2 Cooked Meats to Brake Bros Limited, estimate contract value £963,996 excl. VAT (3) from Lot 4 Specialised Products to McLays Limited, estimate contract value £121,003 excl. VAT This recommendation follows the Framework evaluation scoring, where the Contractor recommended for award is in rank position 1, with their bid being the most economically advantageous tender in terms of cost and quality for the Council. AGENDA ITEM 16 Page 137 of 150
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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 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, including catering supplies. 1.2 The Council has participated with Scotland Excel in the establishment of the previous generations and now the latest, 4th generation, Multi-lot Framework Agreement for Supply and Distribution of Fresh Meats, Cooked Meats and Fresh Fish. 1.3 The Councils existing contracts for fresh meats, cooked meats and associated products were made from the third generation Framework. 2. Report 2.1 Facility Support Services (“FSS”) attended and participated in a user intelligence group (the ‘UIG’) of technical and procurement representatives set up by Scotland Excel 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 participating members via the Framework for Supply and Distribution of: Fresh Meats; Cooked Meats; and Fresh Fish. 2.2 The UIG also took cognisance of the demands for food associated to Scottish Government policies including: • Increased nursery hours to 1140, nursery pupils FSM • Free school meals to all pupils P1-P5 • Roll out of free school meals to P6 & P7 circa 2025-6 • Inclusion of all Community Facilities and Hospitality units • Development of the Good Food Nation improvement plan 2.3 Scotland Excel conducted the procurement in accordance with the Public Contracts (Scotland) Regulations 2015, using an Open procedure. 2.4 Tender evaluation model for all lots was based on 30% Quality, 70% Price and followed the most economically advantageous scoring model. 2.5 For each participating member, a ranked list of Contractors appointed to the Framework was produced. The below tables provide the Framework appointments to the relevant lots required by the Council. Lot 1 – Fresh Meat Page 138 of 150
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Contractor Framework Score Framework Rank McLays Limited 97.08 1 Campbells Prime Meat Limited 90.25 2 Thos A Shaw 68.44 3 Lot 2 – Cooked Meat Contractor Framework Score Framework Rank Brake Bros Limited 97.50 1 McLays Limited 91.61 2 BFS Group Limited 84.63 3 Campbells Prime Meat Limited 79.23 4 Lot 4 – Specialised Products Contractor Framework Score Framework Rank McLays Limited 98.25 1 Campbells Prime Meat Limited 75.44 2 Bernard Corrigan Limited 69.74 3 Thos A Shaw 61.46 4 2.6 The Framework call-off options include ‘Direct Award’, which allows the Council to award contracts based on the highest tender score and rank in each Lot. 2.7 FSS recommend that the Council use the direct award approach to award Contracts to the Contractors in Framework Rank position on the basis their tenders were identified in the Framework evaluation as the most economically advantageous bids for the Council requirements. 2.8 The value of the Contracts being awarded including any requirement to extend the Contracts: • from Lot 1 Fresh Meats to McLays Limited, estimate contract value £1,700,001 excl.VAT • from Lot 2 Cooked Meats to Brake Bros Limited, estimate contract value £963,996 excl. VAT • from Lot 4 Specialised Products to McLays Limited, estimate contract value £121,003 excl. VAT 2.9 The costs associated with contract delivery will be contained within the Revenue budget for FSS. Price Savings / Increases 2.10 The Council’s anticipated aggregate spend across these contracts is £2,785,000 exclusive of VAT. 2.11 There are no identified savings due to the cost-of-living increase and food inflation. Page 139 of 150
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Price Stability 2.12 The Framework applies 6 months fixed pricing to all Lots. Thereafter, all requests for price increases will be evaluated according to the terms and conditions of the Framework by Scotland Excel. Community Benefits 2.13 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. 2.14 Within their Tender for appointment to the Framework, McLays Limited & Brake Bros Limited both committed to deliver community benefits with the Council Spend equating to band 5 (£400k-£500k per annum) for McLays and band 3 (£200-300K per annum) for Brakes. This will earn the Council 200/100 community benefit points. The Council will liaise with the successful supplier on the specific Community Benefits to be delivered. Fair Work First 2.15 Within their tender submission, McLays Limited advised they’re an accredited supplier who pay the living wage. Brakes Bros Limited have indicated that staff in Scotland delivering the service through the Scotland Excel framework are paid above the real living wage. Contract Management 2.16 Officers from FSS will be responsible for managing the Contracts which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. 3. Measures of success The Contract will deliver the following outcomes; • Successful Supply and Distribution of Fresh Meats, Cooked Meats; and Specialised Products; throughout North Lanarkshire. • Compliance with Nutritional Requirements for Food & Drink in Schools (Scotland) Regulations 2020. 3.1 Through six monthly management meetings items such as prices/spend/invoices/response times/ new products/complaints will be discussed. 4. Supporting documents n/a James McKinstry Chief Officer (Asset & Procurement Solutions) Page 140 of 150
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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 Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The value of the Contract is two million, seven hundred and eighty five thousand pounds Sterling (£2,785,000) exclusive of VAT including any option to extend the Contract. The Council does not warrant or guarantee the amount of the annual or total value of the Contract, these amounts are indicative only. The costs associated with contract delivery will be contained within the revenue budget for FSS. 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 Resources? 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? 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 Page 141 of 150
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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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? Both suppliers are committed to the reduction of packaging and plastic. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Delivery times are requested out with pupil arrival times and are typically delivered early in the mornings. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex-Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 142 of 150
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref AT/JMcK Date 24/05/23 Contracts awarded below Committee approval threshold From Chief Officer (Assets and Procurement) Email mckinstryj@northlan.gov.uk Telephone James McKinstry 07939 281102 Executive Summary This report notifies the Committee of the contracts awarded between 1 January 2023 to 31 March 2023. It sets out those contracts awarded with a value below the financial threshold requiring Committee approval. Recommendations The Finance and Resources Committee are: • advised of the Contracts awarded below Committee approval threshold between 1 January 2023 to 31 March 2023 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 (18) Ensure our digital transformation is responsive to all people's needs and enable access to the services they need AGENDA ITEM 17 Page 143 of 150
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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. 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 Chief Officer of Assets and Procurement award these contracts on behalf of the appropriate Chief Officer. 1.3 The Chief Officer of Assets and Procurement is required to notify Committee on a regular basis of any such contracts awarded on behalf of Procuring Service Areas. 2. Report 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 Chief Officer of Assets and Procurement on behalf of the appropriate Chief Officer. 2.3 The contracts awarded by the Chief Officer of Assets and Procurement that are under the £500,000 Committee financial approval threshold for Supplies and Services and £2,000,000 for Works in the period from 1 January 2023 to 31 March 2023 are detailed in Appendix 1. 3. Measures of success 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. Supporting documentation 4.1 Appendix 1 - Summary of contracts awarded. Page 144 of 150
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James McKinstry Chief Officer (Assets and Procurement) Page 145 of 150
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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 Finance? 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 Resources? 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? 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. Contracts awarded by the Council are compliant with GCSOs and procurement legislation. Page 146 of 150
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5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? All contracts listed have been assessed by the Enterprise Architecture Governance Group (EAGG). Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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 Page 147 of 150
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addressed in each specific Contract Strategy and incorporated into the project. Contract award procedures may be susceptible to legal challenge if they are not discharged in accordance with GCSO and procurement legislation. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex-Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. Page 148 of 150
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APPENDIX 1 – SUMMARY OF BELOW THRESHOLD CONTRACT AWARDS Contract Description Contract Award Date Contract Start Date Contract End Date Contract Extension Contract Value (inc extension) (£s) Successful Tenderer Supplies Services Works No of Tenders Received Route* Modular Units – Taylor High School 19/01/2023 03/04/2023 03/11/2023 N/A £730,860.00 Sibcas Limited Works 2 FMC3 Bottled Water Coolers & Associated Products 14/03/2023 10/03/2023 09/03/2027 09/03/2027 £136,000.00 Waterlogic GB Ltd Services 4 FMC3 ArcGIS Maintenance & Support 2023-24 10/03/2023 01/04/2023 31/03/2024 N/A £72,651.00 ESRI (UK) Ltd Services 1 *DAF3 Banking Services & Merchant Acquiring Solution - Lot 1 Banking Services & Lot 2 Merchant Acquiring 10/03/2023 01/04/2023 31/03/2024 N/A £221,000 RBS Scotland, Lloyds Cardnet Services 2 EXT Enterprise Project Options Revalidation 31/03/2023 21/02/2023 31/07/2023 N/A £225,391.00 Grant Thornton UK LLP Services 1 *DAF3 *Direct Awards to best value Providers from Crown Commercial Services (CCS) 3rd Party Frameworks Key – Procurement Route CO - Contract Open Procedure CR - Contract Restricted Procedure FO - Framework Open Procedure FR - Framework Restricted Procedure FMCC - Mini Comp Council Framework Page 149 of 150
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FMC3 - Mini Comp 3rd Party Framework DAFC - Direct Award Council Framework DAF3 - Direct Award 3rd Party Framework DAH&SC - Direct Award Health & Social Care Related Services N - Negotiated Contract EXT - Extension to Contract/Framework Page 150 of 150