Revenue Budget Monitoring Report; Chief Executive’s Service 1 April to 21 July 2023 (Period 4)
North Lanarkshire Council · 13 September 2023
Back to Finance and Resources Committee — 13 September 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 NL/PF Date 13/09/23 Revenue Budget Monitoring Report; Chief Executive’s Service 01.04.23 – 21.07.23 (Period 4) 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’s Service financial performance for the period 1 April 2023 to 21 July 2023 (Period 4). The report illustrates the provisional outturn as at 31 March 2024, with major outturn variances highlighted and explained per the Council’s approved Financial Regulations. The Council approved its General Fund Revenue Budget on 23 February 2023, of which £93.198m currently represents the Net Revenue Budget for the Chief Executive’s Service. The Service is currently projecting a favourable position of £0.147m for the financial year predominately due to underspends within employee costs and contract costs. In addition, the 2023/24 budget incorporates £0.127m savings approved by Council in relation to the Transitional Rates Relief budget, which has been fully achieved as at Period 4. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the financial position of the 2023/24 Chief Executive’s Service revenue budget. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
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1. Background 1.1 The Council’s approved Financial Regulations require the Chief Executive to remain within the approved budgetary provision, and to report all significant deviations - defined as the higher of £100,000 or 5% - within budget monitoring reports. Where significant deviations are identified, the Chief Executive must provide explanatory commentary, outline the action required to rectify such deviations and where relevant, must also highlight the impact this has on other budget headings. 2. Report 2.1 Summary of Financial Position 2.1.1 The Council approved its General Fund Revenue Budget on 23 February 2023, of which £93.198m (9.48%) represented the approved Revenue Budget for the Chief Executive’s Service. 2.1.2 The overall projected outturn is an underspend of £0.147m. As detailed in Appendix 2 there is a projected underspend in employee costs offset by minor overspends across other expenditure areas and an under recovery of income. 2.1.3 As at Period 4 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 as part of the year end process. It is currently anticipated there will be no material variance. 2.1.4 The 2023/24 budget incorporates £0.127m savings in relation to Transitional Rates Relief, which has been fully achieved as at Period 4. Further information regarding savings is included in Appendix 5. 2.2 Analysis of Significant Variances 2.2.1 The service currently anticipates a projected underspend of £0.423m within Employee costs as a result of actual and projected vacancies. 2.2.2 The projected outturn for income is an under-recovery of £0.107m within legal insurance, licensing and registrars partially offset by higher than anticipated income in relation to rent allowances / rent rebates overpayments. 2.2.3 There are various minor variances across other budget areas resulting in the Service forecasting a favourable position of £0.147m at 31 March 2024. 2.3 Earmarked and One-off Reserves 2.3.1 In finalising the Council’s draft accounts to 31 March 2023, the service was given approval to earmark £4.771m of resources to fund key projects and initiatives. This has been profiled as £4.728m required in 2023/24 with the balance of £0.043m in 2024/25. It is anticipated that £4.140m of the reserves balances will be utilised in 2023/24. A total of £0.535m will be required for future years with a balance of £0.053m of reserves to be returned. Details of the Service’s earmarked funds are provided in Appendix 4. 2.3.2 The Service has incurred £0.138m VRS costs relating to previous year savings/restructures. Therefore, there is a requirement to utilise the Corporate Change Management fund at this time. Any further costs arising will be reported in future
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reports as they are incurred. These costs are not included in the Service outturn position. 2.4 2023/24 Budget Savings 2.4.1 The Council approved savings of £0.127m savings in relation to Transitional Rates Relief, which has been fully achieved as at Period 4. Further information regarding savings is included in Appendix 5. 2.5 Management Actions 2.5.1 The Service is being pro-active to ensure expenditure is contained within its approved 2023/24 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 Elaine Kemp Chief Officer (Finance)
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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 been discussed and agreed with Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? As stated within the main body of 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 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 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? 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 2023/24. To minimise risk this report has been prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations.
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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. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐
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APPENDIX 1 [1] [2] [3] [5] [6] [7] DIRECTORATE & SUPPORT 412,144 412,144 0 0.0% 0 FINANCIAL SOLUTIONS 45,118,514 45,118,514 0 0.0% 0 AUDIT & RISK 614,959 581,813 33,146 FAV 5.4% 33,146 Underspends within Employee costs as a result of vacancies LEGAL & DEMOCRATIC SOLUTIONS 2,624,054 2,782,840 (158,786) ADV (6.1%) 9,571 Under-recovery in income within insurance, licensing and registrars plus charges in relation to building costs offset by underspends within employee costs BUSINESS & DIGITAL 22,301,722 22,029,513 272,209 FAV 1.2% 103,852 Underspends within Employee costs as a result of vacancies, ICT contracts and over-recovery of income associated with the recycling of IT equipment PEOPLE RESOURCES 8,582,504 8,582,504 0 0.0% 0 STRATEGIC COMMUNICATIONS 5,104,939 5,104,939 0 0.0% 0 OTHER COPORATE SERVICES (4,301,622) (4,301,622) 0 0.0% 0 JOINT BOARDS 12,741,051 12,741,051 0 0.0% 0 NET EXPENDITURE 93,198,265 93,051,696 146,569 FAV 0.2% 146,569 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Objective Analysis Chief Executives Service Period 04 (01 April 2023 - 21 July 2023) DIVISION OF SERVICE ANNUAL BUDGET PROJECTED OUT-TURN PROJECTED OUT- TURN VARIANCE % [4] PERIOD MOVEMENT ANALYSIS
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APPENDIX 2 [1] [2] [3] [5] [6] [7] EMPLOYEE COSTS 43,223,575 42,800,909 422,666 FAV 1.0% 195,993 Underspends relate to vacancies across all services PROPERTY COSTS 2,141,495 2,180,486 (38,991) ADV (1.8%) 1,009 SUPPLIES & SERVICES 10,787,850 10,791,504 (3,654) ADV (0.0%) (3,654) TRANSPORT & PLANT 164,093 161,693 2,400 FAV 1.5% 2,200 ADMINISTRATION COSTS 6,793,919 6,864,329 (70,410) ADV (1.0%) 387 PAYMENTS TO OTHER BODIES 17,111,430 17,136,786 (25,356) ADV (0.2%) 0 TRANSFER PAYMENTS 105,923,287 105,923,287 0 0.0% 0 CAPITAL FINANCING COSTS 5,048,700 5,048,700 0 0.0% 0 REVENUE FINANCING COSTS 0 0 0 0.0% 0 OTHER EXPENDITURE 3,870,294 3,903,649 (33,355) ADV (0.9%) 453 TOTAL EXPENDITURE 195,064,643 194,811,343 253,300 FAV 0.1% 196,388 INCOME (101,866,378) (101,759,647) (106,731) ADV 0.1% (49,819) Under-recovery in legal insurance, licensicng and registrar income offset by over-recoveries within Rent Allowances and Rent Rebates Overpayments NET EXPENDITURE 93,198,265 93,051,696 146,569 FAV 0.2% 146,569 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Subjective Analysis Chief Executives Service Period 04 (01 April 2023 - 21 July 2023) CATEGORY ANNUAL BUDGET PROJECTED OUT-TURN PROJECTED OUT- TURN VARIANCE % [4] PERIOD MOVEMENT ANALYSIS
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APPENDIX 3 [1] [2] [3] [5] [6] [7] PAYMENTS TO OTHER BODIES GENERAL 382,596 382,596 0 0.0% 0 MEDICAL FEES 9,359 9,359 0 0.0% 0 AGENCY FEES 81,542 123,898 (42,356) ADV (51.9%) 0 Recruitment agency costs which are being offset by vacancies within Employee Costs TOWN TWINNING 0 0 0 0.0% 0 CHILDRENS PANEL 25,035 25,035 0 0.0% 0 COSLA ANNUAL LEVY 195,000 195,000 0 0.0% 0 COMMUNITY COUNCIL GRANTS 158,629 158,629 0 0.0% 0 GRANTS TO ORGANISATIONS 822,505 805,505 17,000 FAV 2.1% 0 EXTERNAL AUDIT FEE 529,389 529,389 0 0.0% 0 ELECTION PROVISION 0 0 0 0.0% 0 TOURISM - VISIT NORTH LANARKSHIRE 37,000 37,000 0 0.0% 0 SCOTTISH WELFARE FUND 4,277,844 4,277,844 0 0.0% 0 SUB-CONTRACTOR PAYMENTS 1,869 1,869 0 0.0% 0 LOCAL TAX PAYPOINT COMMISSION 35,000 35,000 0 0.0% 0 COSLA MIGRATION SCOTLAND 150,000 150,000 0 0.0% 0 LANDS VALUATION CONTRIBUTION 2,105,910 2,105,910 0 0.0% 0 SPT CONTRIBUTION 5,556,198 5,556,198 0 0.0% 0 SPT CONCESSIONARY FARES CONTRIBUTION 572,943 572,943 0 0.0% 0 CUSTOMER FIRST CONTRIBUTION 2,700,000 2,700,000 0 0.0% 0 TOTAL EXPENDITURE 17,640,819 17,666,175 (25,356) ADV (0.1%) 0 [4] PROJECTED OUT-TURN VARIANCE PROJECTED OUT- TURN % PERIOD MOVEMENT ANALYSIS NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Payments to Other Bodies Chief Executives Service Period 04 (01 April 2023 - 21 July 2023) CATEGORY ANNUAL BUDGET
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APPENDIX 4 Value % Service Specific Earmarked Reserves: Administration of Covid and Cost of Living related support scheme 25,000 25,000 25,000 25,000 100.0% 0 0 25,000 Pensioners Fuel Grant Payment 38,247 38,247 38,247 38,247 100.0% 0 0 38,247 Cost of Living Grant 310,593 310,593 30,004 310,593 100.0% 0 0 310,593 DHP Additional Admin (Benefits Cap) 35,313 35,313 35,313 35,313 100.0% 0 0 35,313 Modern Apprentices 43,000 43,000 86,000 0 43,000 50.0% 0 0 43,000 Scottish Welfare Fund 1,518,000 1,518,000 0 1,518,000 100.0% 0 0 1,518,000 Digitisation 771,381 771,381 143,194 771,381 100.0% 0 0 771,381 One-off resourcing following insourcing of CLNL 18,557 18,557 11,847 15,795 85.1% 0 2,762 15,795 £2k has been idenitifed as no longer being required. One-off resourcing following insourcing of CLNL (ICT Development) 84,704 84,704 24,997 84,704 100.0% 0 0 84,704 B&D - NLC10 posts 99,132 99,132 15,772 80,456 81.2% 18,676 0 80,456 £18k is required in 2024/25 to support ongoing commitments. Learning Academy 100,000 100,000 0 100,000 100.0% 0 0 100,000 Construction Academy 300,000 300,000 0 300,000 100.0% 0 0 300,000 Resources 63,000 63,000 27,901 63,000 100.0% 0 0 63,000 One-off resourcing following insourcing of CLNL 109,608 109,608 19,719 109,608 100.0% 0 0 109,608 ESC Staffing 109,840 109,840 39,285 109,840 100.0% 0 0 109,840 CSH (NLC16 and NLC11 post) 141,616 141,616 34,581 137,572 97.1% 4,044 0 137,572 Delays in the implementation of the single number contact point in the Customer Service Hub has resulted in a requirement to reprofile this reserve to future years. Recover NL - CSH extension of staff 172,521 172,521 49,893 63,049 36.6% 109,472 0 63,049 Delays in the implementation of the single number contact point in the Customer Service Hub has resulted in a requirement to reprofile this reserve to future years. CSH Recover NL 2022/23 (Single Number) 489,218 489,218 50,168 85,945 17.6% 403,273 0 85,945 Delays in the implementation of the single number contact point in the Customer Service Hub has resulted in a requirement to reprofile this reserve to future years. Cumbernauld Theatre 35,000 35,000 0 35,000 100.0% 0 0 35,000 Recover NL Grants 172,294 172,294 0 172,294 100.0% 0 0 172,294 Cost of Living Grant 41,242 41,242 180 41,242 100.0% 0 0 41,242 Councillor Surgeries 50,000 50,000 0 0 0.0% 0 50,000 0 Council (Mar 2023) approved advertising of surgeries via the Council's exisiting social media channels and websites. SUB-TOTAL 4,728,266 43,000 4,771,266 546,101 4,140,039 86.8% 535,465 52,762 4,140,039 TOTAL 4,728,266 43,000 4,771,266 546,101 4,140,039 86.8% 535,465 52,762 4,140,039 No Longer Required Reserves Required In Year Commentary Regards Usage NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Status of Earmarked Reserves Chief Executives Service Period 04 (01 April 2023 - 21 July 2023) FINANCIAL YEAR - 2023/24 DESCRIPTION OF EARMARKED RESOURCE Reserve Allocation 2023/24 Profiled in Future Years Approved Reserve Total Spend to Date Projected Spend Reprofile to Future Years
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APPENDIX 5 £000 £000 £000 CEBB01 Removal of Residual Transitional Rates Relief Budget 127 127 0 TOTAL 127 127 0 APPROVED SAVINGS Ref. DESCRIPTION OF APPROVED SAVING Target Value Value Deliverable Savings Gap Reasons for Savings Gap NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Savings Chief Executives Service Period 04 (01 April 2023 - 21 July 2023)