Chief Executive Service - Capital Monitoring Report 1 April to 3 March 2023 (Period 12)
North Lanarkshire Council · 24 May 2023
Back to Finance and Resources Committee — 24 May 2023 and its agenda
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/NL/PF Date 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
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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:
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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)
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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 ☐
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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.
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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