Agenda Document Pack - Finance and Resources Committee - 22/11/2023
North Lanarkshire Council · 22 November 2023
Back to Finance and Resources Committee — 22 November 2023 and its agenda
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13 November 2023 Members of the Finance and Resources Committee Chief Executive’s Office Archie Aitken Chief Officer (Legal & Democratic) Civic Centre, Windmillhill Street, Motherwell ML1 1AB www.northlanarkshire.gov.uk Notice is given that a Meeting of the Finance and Resources Committee is to be held in the Council Chamber, Civic Centre, Windmillhill Street, Motherwell, ML1 1AB on Wednesday, 22 November 2023 at 10:00 AM which you are requested to attend. The agenda of business is attached. Archie Aitken Chief Officer (Legal & Democratic) Members : Clerk Name: Andrew Rose Clerk Telephone: 07951 409714 Clerk Email: rosean@northlan.gov.uk T Fisher, A Duffy-Lawson, C Barclay, A Beveridge, M Boyd, G Brennan, A Bustard, A Campbell, T Carragher, C Costello, S Coyle, D Crichton, G Currie, K Duffy, H Dunbar, F Fotheringham, J Hume, L Jarvie, D Johnston, T Johnston, J Jones, P Kelly, G Lennon, J Logue, H Loughran, F MacGregor, A Masterton, P McDade, R McKendrick, J McLaren, M McPake, L Mitchell, L Nolan, P Patton, L Roarty, D Robb, G Robinson, R Sullivan, A Thomas, S Watson. Page 1 of 220
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Agenda 1 Declarations of Interest In Terms of the Ethical Standards In Public Life Etc. (Scotland) Act 2000 2 Minutes 2 (a) Minute of Meeting of the Joint Consultative Committee (JCC) Held on 3 October 2023 Submit minute of meeting of the Joint Consultative Committee (JCC) for Local Government Employees held 3 October 2023 on for approval. 7 - 10 2 (b) Minute of Meeting of the Employee Appeals Sub- Committee Held on 10 October 2023 Submit minute of meeting of the Employee Appeals Sub- Committee held on 10 October 2023 for approval. 11 - 12 Operational 3 Introduction of Sexual Harassment Policy, Menopause and Hormonal Change Policy and update to Acceptable Use of ICT Submit report by the Chief Officer (People Resources) (1) providing information on the proposal to introduce two new policies to enable employees to continue to receive the support they need to allow them to work in a safe and healthy environment whilst aiming to promote North Lanarkshire Council as an employer of choice, and (2) providing an update to the existing Acceptable Use of ICT Policy which is reviewed every two years to ensure it remains fit for purpose. 13 - 66 4 Annual Freedom of Information Report Financial Year 2022/23 Submit report by the Chief Officer (Legal and Democratic) providing details of Freedom of Information and Environmental Information requests received by the Council during 2022/23 and providing further comparative and ancillary information. 67 - 76 5 Local Public Holidays for Factories and Businesses 2023 Submit report by the Chief Officer (Legal and Democratic) seeking approval for local public holidays in calendar year 2024 for factories and businesses in North Lanarkshire. 77 - 80 Page 3 of 220
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Financial 6 2023 Review of Financial Regulations and Scheme of Financial Delegation Submit report by the Chief Officer (Finance) providing the outcome of the annual review of the Financial Regulations and Scheme of Financial Delegation. 81 - 118 7 North Lanarkshire Properties (NLP) Refinancing Update Submit report by the Chief Officer (Finance) providing details of the final loan terms and the conclusion of the refinancing arrangement for NL Properties LLP. 119 - 124 8 Revenue Monitoring Report Council Summary 1 April - 15 September 2023 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 2024; (2) consolidating the budget monitoring position of all Services, and (3) highlighting and explaining major variances as per the Council’s approved Financial Regulations. 125 - 134 9 Capital Programme 2023/24 Monitoring Report Submit report by the Chief Officer (Finance) (1) providing an update on the 2023/24 resources and expenditure for the Council's Strategic Capital Investment Programme, and (2) detailing the 2023/24 projected outturn position and the resultant variances. 135 - 146 10 Revenue Budget Monitoring Report; Chief Executive’s Service 01.04.23 – 15.09.23 (Period 6) Submit report by the Chief Officer (Finance) (1) providing a summary of the Chief Executive’s Service financial performance for the period 1 April to 15 September 2023 (Period 6), and (2) illustrating the provisional outturn as at 31 March 2024, with major outturn variances highlighted and explained per the Council’s approved Financial Regulations. 147 - 158 11 Chief Executive Service – Capital Monitoring Report 1 April to 15 September 2023 (Period 6) Submit report by the Chief Officer (Finance) highlighting the financial performance and projected outturn of the 2023/24 Chief Executive capital programme for the period ended 15 September 2023 (Period 6). 159 - 166 Page 4 of 220
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12 Treasury Management Monitoring Report for Quarter Ended 30 September 2023 Submit report by the Chief Officer (Finance) (1) fulfilling 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, and (2) informing on the quarterly Treasury Management activity for the period 1 July to 30 September 2023 and compliance with the mandatory treasury and prudential indicators. 167 - 182 13 Revenues and Benefits Update Submit report by the Chief Officer (Finance) providing an update on the performance within the Revenues and Benefits functions of Finance as at 30 September 2023. 183 - 190 Performance 14 North Lanarkshire Properties LLP – Performance Indicators 12 January 2023 to 3 August 2023 and Financial Performance as at 21 July Submit report by the Chief Officer (Assets and Procurement) (1) providing details of North Lanarkshire Properties LLP’s performance from 12 January to 3 August 2023; (2) providing an update on significant events and service delivery highlights during the reporting period, and (3) detailing the financial performance for the period from 1 April to 21 July 2023. 191 - 208 Contracts 15 Contracts Awarded Below Committee Approval Threshold Submit report by the Chief Officer (Assets and Procurement) presenting a summary of contracts awarded since the last meeting of the Committee which do not reach the financial threshold requiring Committee approval. 209 - 220 EXCLUSION OF PUBLIC The Sub-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 paragraph 9 of Part 1 of Schedule 7A of the Act". Property Page 5 of 220
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16 Proposed Purchase of Affordable Houses at Gartferry Road, Chryston Submit report by the Chief Officer (Assets and Procurement) informing the Committee of an increase in the price for the proposed acquisition of 22 new houses at Gartferry Road, Chryston to support the Council’s new housing supply programme. Page 6 of 220
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 3 OCTOBER 2023 1 3 October 2023 at 2 pm. A Meeting of the JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES PRESENT Councillor Boyd, Vice-Convener; Councillors Ballinger, Currie, Hume, Jarvie, and D. Johnston. M. Quigley, Convener, Unison; A. Clark, J. Hannigan, W. Shearer, J. Struthers and J. Watson, Unison; D. Whelan, GMB, and J. Rooney, Unite (T & G). CHAIR M. Quigley (Convener) presided. IN ATTENDANCE Chief Officer (People Resources); Employee Service Centre Manager; Employment and Policy Manager; Lead and Talent Development Manager; HR Transformation and Engagement Manager; Workforce Resourcing Manager; Senior Safety and Wellbeing Adviser; Senior Adviser - Process Re-Engineering, and Administrative Officer. APOLOGIES Provost Duffy; Councillors Brannan-McVey, Carragher and Logue. H. Smith, GMB and V. Thompson, 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. ABSENCE REPORT - QUARTER 1 2022/2023 AND JUNE 2023 2. There was submitted a report by the Chief Officer (People Resources) (1) providing the sickness absence position for each Council Service, and the Council overall, for Quarter 1 2022/2023 and June 2023, together with comparative data for the previous year; (2) advising that all Services saw an increase in absence levels from May to June 2023; (3) setting out within the report (a) sickness absence targets for 2023/24, and (b) that in June 2023 there was an increase in Mental Health related absences; (4) intimating that managing absence levels was a high priority for the Council and managers were required to ensure that absence levels were discussed at management meetings, with all areas of concern fully discussed and appropriate actions taken, from both a holistic approach and individual case management and (5) providing details of the Health and Wellbeing activity which had been undertaken. Decided: (1) that the sickness absence information for Quarter 1 2022/2023 and June 2023 be noted, and (2) that the report be otherwise noted. Item 2 (a) Page 7 of 220
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 3 OCTOBER 2023 2 FIRE SERVICE OPERATING CHANGES/COUNCIL MENTAL HEALTH GROUPS 3. There was submitted a report by the Chief Officer (People Resources) (1) detailing within the report the changes to the operational procedures for the Scottish Fire and Rescue Service, which came into effect on 1 July 2023 and which had significant implications for the Council's fire safety arrangements; (2) advising that a short life working group had been established with representatives from Services of the Council, and the Trade Unions, and the group had agreed guidelines for an interim position for (a) working hours, which involved staff evacuating buildings in the event of an alarm, and (b) out-of- hours alarm activations; (3) advising that to ensure the appropriate reviews have been undertaken, a Health and Safety Alert was issued to Chief Officers on 4 September 2023, requesting that all managers with responsibility for fire safety in a property contact their fire risk assessor to confirm that a review had been completed, and (4) providing an update on progress of the Council's Mental Health Strategy, in particular the Service based groups and the overall Council group. The Trade Union representatives enquired whether the fire evacuation wardens receive a payment, and in response, the Chief Officer (People Resources) advised that this would be discussed at the short term working group, and the outcome reported in due course. Decided: (1) that the report be noted, and (2) that the Chief Officer (People Resources) provide an update to a future meeting of the Committee on the discussions regarding the payment of fire evacuation wardens. MYNL PORTAL 4. The HR Transformation and Engagement Manager and the Senior Adviser – Process Re-Engineering provided an overview of the new MyNL Portal which highlighted the benefits for employees and managers of using the portal including a Chat Functionality, a Track and Monitor case management system, and Better Two-Way Communication. Following discussion it was agreed that the presentation be sent to Members of the Committee. Decided: that the terms of the presentation be noted, and issued to members of the Committee. CARE ACADEMY PROPOSALS 5. The Lead and Talent Development Manager provided a short presentation on the Care Academy Proposals and advised that:- • Health and Social Care was the largest employment sector within North Lanarkshire and had experienced significant increases in demand and ongoing workforce challenges; • the Council had secured £88,000 from the UK Shared Prosperity Fund to develop the skills of the workforce within Adult Health and Social Care, • three projects would be delivered to develop namely - Project 1 – Trainee Social Worker Scheme; Project 2 – Upskilling for Homecare Workers, and Project 3 – Homecare Support Officers; • the monies from the UK Shared Prosperity Fund would allow the Council to expediate access to qualifications in a Service where it was difficult to recruit and retain staff, and would help to promote a sense of commitment to the development of staff. Page 8 of 220
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JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES - 3 OCTOBER 2023 3 Following discussion it was agreed that the presentation be sent to Members of the Committee. Decided: that the terms of the presentation be noted, and issued to members of the Committee. RECRUITMENT – TRANSIT TIME 6. The Employee Service Centre Manager (1) advised that the recruitment team had experienced significant challenges over the last year due to a high volume within Education and Families, First Stop Shops and Active and Creative Communities; (2) set out statistics in relation to the recruitment process; (3) informed of the challenges following the introduction of the new iTrent recruitment system in February 2023; (4) indicated that the team was working hard to progress posts as quickly as possible and had been working with HR Business Partners, Service Managers, and local representatives on particular challenging cases, and (5) intimated that progress was being made with the review processes and the new system. Decided: that the update on the recruitment process and timescales involved be noted. UPDATE REGARDING RAAC CONCRETE ISSUES 7. The Chief Officer (People Resources) (1) intimated (a) that all buildings had been checked by the Assets and Procurement Service, and advised that it was considered that there was no danger to staff, and (b) that an update report would be submitted to the relevant Committee in due course, and (2) informed that a risk assessment for Active and Creative Communities was being compiled at present. The Trade Union representatives enquired whether staff who could no longer work on front of desk at the Motherwell Concert Hall would be placed on a supply list. The Chief Officer (People Resources) advised that she would take this request forward and report back in due course. Decided: (1) that the update information be noted, and (2) that the Chief Officer (People Resources) provide an update to a future meeting of the Committee on the position of the front of desk staff at the Motherwell Concert Hall. Page 9 of 220
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EMPLOYEE APPEALS SUB - 10 OCTOBER 2023 1 10 October 2023 at 2 pm. A Meeting of the EMPLOYEE APPEALS SUB-COMMITTEE PRESENT Councillor Reddin, Convener; Councillor B. McCulloch, Vice-Convener; Councillors Ballinger, Barclay, Boyd, Cairns, Currie, Hume, Roarty and Woods. CHAIR Councillor Reddin (Convener) presided. IN ATTENDANCE Employment and Policy Manager and Democratic Services Manager. ALSO IN ATTENDANCE Senior Education and Families Manager and Employment and Policy Officer; M. Quigley, Unison and Appellant 1/2023. APOLOGIES Councillor Beveridge and Masterton. DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000 1. The meeting noted that there were no declarations of interest. It was agreed in terms of Section 50A(4) of the Local Government (Scotland) Act 1973, that the public be excluded from the meeting for the following item on the grounds that the business involved the likely disclosure of exempt information as defined in paragraph 1 of Part 1 of Schedule 7A of the Act. EDUCATION, CHILDREN AND FAMILIES SERVICE - APPEAL AGAINST DISMISSAL - 1/2023 2. There was submitted intimation of an appeal against dismissal by Appellant 1/2023, together with a report by the Senior Education and Families Manager in explanation of the circumstances leading to the dismissal. The Sub-Committee then heard representations and submissions from the Senior Education and Families Manager on behalf of the Service and representations and submissions from M. Quigley, Unison, on behalf of Appellant 1/2023. Thereafter, both parties withdrew from the meeting. Both parties were then re-admitted to the meeting. Decided: that the grounds of the appeal had not been substantiated and the appeal be not upheld. Item 2 (b) Page 11 of 220
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref FW/LC Date 22/11/23 Introduction of Sexual Harassment Policy, Menopause and Hormonal Change Policy and update to Acceptable Use of ICT Policy From Fiona Whittaker, Chief Officer (People Resources) E-mail whittakerf@northlan.gov.uk Telephone 07973 728628 Executive Summary The purpose of this report is to provide the committee with information on the proposal to introduce two new policies that will enable employees to continue to receive the support they need to allow them to work in a safe and healthy environment whilst aiming to promote North Lanarkshire Council as an employer of choice. Also within the report is a brief update to the existing Acceptable Use of ICT Policy which is reviewed every two years to ensure it remains fit for purpose. As with all policy reviews and implementations, working groups consisting of stakeholders were formed to consider each of the policies outlined above and officers worked closely with the trade unions to ensure the appropriate consultation process was followed. The remainder of this report outlines the main purpose and contents of the proposed policies as detailed above, all of which have been subject to the appropriate consultation process and seeks the approval of Committee to introduce and update these policies. It should be noted that all policies discussed within this report will be applicable and available to all employees of the Council. Recommendations It is recommended that the Finance and Resources Committee: (1) Agree to the introduction of a Sexual Harassment Policy and Menopause and Hormonal Change Policy. (Copies attached as appendices to this report). (2) Agree to the changes detailed within the revised Acceptable Use of IT Policy following the biennial review. (Copy attached as an appendix to this report). The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (23) Build a workforce for the future capable of delivering on our priorities and shared ambition Programme of Work Resilient People Item 3 Page 13 of 220
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1. Background Sexual Harassment Policy 1.1 Sexual Harassment is unwanted behaviour of a sexual nature and whilst there have been very few cases reported within the Council, it is recognised that there is a limited focus on this particular form of harassment with concerns that both managers and employees are unclear about reporting incidents and/or dealing with them. 1.2 Although, sexual harassment is explicitly explained within the Council’s Dignity at Work Policy, a more focused approach is favoured to promote the Council’s zero-tolerance to this inappropriate and unwelcomed behaviour. 1.3 In addition, the Worker Protection (Amendment of Equality Bill 2010) Bill, which has been working its way through parliament, is designed to encourage employers to prevent sexual harassment in the workplace by introducing a new duty on employers to take all reasonable steps to prevent sexual harassment of their employees in the course of their employment. 1.4 Therefore, as part of an ongoing review of our policies and accreditations, it was determined that the creation of a standalone Sexual Harassment Policy was required to ensure that both employees, customers and external bodies understand the importance of a zero-tolerance approach towards any form of sexual harassment in the workplace or in the course of undertaking duties for the Council. 1.5 Lastly, to ensure that we can continue to maintain and improve on our current bronze accreditation with Equally Safe at Work, a requirement of the Silver Award is to introduce a Sexual Harassment Policy. Menopause and Hormonal Change Policy 1.6 Over the last few years, there has been a national focus on the menopause and the impact this has on employee’s health and wellbeing in the workplace and whilst in recent years the Council has been proactive in promoting support for those experiencing the menopause, a specific policy has never been introduced. 1.7 Whilst the menopause is not a specific protected characteristic under the Equality Act 2010, if an employee or worker is put at a disadvantage and treated less favourably because of their menopause symptoms, this could be discrimination if related to a protected characteristic, such as age, disability, gender reassignment or sex. 1.8 It is therefore important to ensure that as a Council, we have the correct procedures and support in place to help staff affected by the menopause or any form of hormonal change and the most practical way of doing this is to introduce a policy which clearly sets out for both managers and employees the supports available. Acceptable Use of ICT Policy 1.9 As part of the Council's data protection, security and governance arrangements, and also to comply with Information Commissioner's Office (ICO) audit recommendations, the Council is required to regularly review corporate data handling and security policies. These reviews take place at least every 2 years or more regularly should there be a significant change which affects them. 1.10 This review cycle is monitored by the Data Governance Board (DGB), which is the corporate working group formed to oversee the Council's data governance arrangements. This group is chaired by the Chief Officer of Business and Digital Page 14 of 220
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Solutions as the Council's Senior Information Risk Owner and all business data owners are represented. 1.11 The current version of the Acceptable Use of ICT Policy was approved by Committee on 11 March 2021 and whilst there have been some changes to the ICT environment which required to be updated, consideration had also to be given to the impact that has come about due to the pandemic and the introduction of hybrid working. 1.12 A further consideration is the introduction of the Digital North Lanarkshire programme of work which forms the basis of the Council’s ambitions and future operating model and is underpinned by the increased use of ICT in both the workplace, home environment and community. 1.13 The policy has been reviewed for accuracy and updated to reflect the council’s strategic vision. This review was carried out by members of the Data Governance Board (DGB) and the Data Management Team (DMT) with advice and guidance from the Council’s subject matter experts. 1.14 Finally, the decision has been taken to transfer some of the contents of the Acceptable Use of ICT Policy to the guidance note, with the aim of producing a shorter, sharper policy that is supported by an easy-to-follow guidance note which should enable and support staff to achieve policy compliance more readily. The report outlines the required changes to the policy. 2. Report 2.1 Sexual Harassment Policy 2.1.1 As outlined above, the Council does not tolerate or condone any form of sexual harassment and currently the Dignity at Work Policy provides both employees and managers with the framework in which the Council addresses complaints of this nature. 2.1.2 However, as sexual harassment like others forms of harassment is unlawful but is often not recognised or reported, the Council has taken the decision to introduce a standalone policy, that will enhance the current provisions available and further help to protect employees from unwanted sexual advances and inappropriate conduct. 2.1.3 As part of the introduction, a review of the current monitoring of these cases will be undertaken with a view to having a more robust and transparent reporting and monitoring process in place. 2.1.4 The policy aims to: • Explain the definition and meaning of sexual harassment and provide some examples. • Outline the process for reporting sexual harassment, including how to make a complaint, and who to contact to make a complaint. • Provide employees with an easy-to-understand mechanism for reporting sexual harassment which gives them the confidence to report any acts of this nature. • Encourage employees to report incidents of sexual harassment promptly. • Detail how the complaint will be addressed. • Support available for all parties involved. • Inform employees that disciplinary action may be taken against them if they violate the policy. 2.1.5 The policy will be applicable and available to all employees within North Lanarkshire Council. As part of the consultation process, the policy has been considered by all Page 15 of 220
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recognised trade unions and has been presented to the Council’s Equality Groups for comment before the final version has been developed. 2.1.6 Currently the Council holds the bronze accreditation for Equally Safe at Work which supports employers to advance gender equality and prevent violence against women. In our efforts to secure the silver award, part of the requirements is the development of a separate Sexual Harassment Policy. Although supporting our accreditation application, it is also seen as a positive step for the Council in terms of the equality’s agenda. 2.1.7 To support the implementation of the policy, e-learning modules will be developed for both managers and employees emphasising the Council’s zero tolerance towards this type of behaviour and our expectations in regard to employee’s conduct. There will also be a communications campaign signposting employees to the policy on MyNL. 2.2 Menopause and Hormonal Change Policy 2.2.1 As outlined above, currently the Council does not have a separate policy covering the menopause or hormonal changes, but there is a suite of documentation available on MyNL and Workwell NL aimed at supporting both employees and managers to address this often difficult and uncomfortable time in a person’s life. The Supporting Attendance Policy, Special Leave Policy and Reasonable Adjustments Protocol all provide forms of support to employees at significant periods in their life, but a more focused policy is deemed necessary. 2.2.2 It is anticipated that by introducing a separate policy, it will ensure that both employees and managers are fully supported during this potentially stressful and difficult phase in an individual’s life, and that employee’s will be treated with dignity and respect whilst preventing unnecessary or unfair treatment. 2.2.3 The policy clearly outlines how employees will be supported in the workplace and provides managers with guidance on how to have open discussions about individual concerns, signs and symptoms. The aim is to create an environment where menopause and hormonal change issues can be talked about easily and openly and support is provided where and when it is needed to prevent employees leaving the workplace or having long term absence issues. 2.2.4 Although not directly covered by the Equality Act 2010, the menopause and other hormonal changes are covered under the three protected characteristics of age, sex and disability discrimination. The Health and Safety at Work Act 1974 also provides for safe working, which extends to the working conditions when experiencing menopausal symptoms. Therefore, it is imperative that as an organisation, managers and employees are educated in the signs and symptoms, the impact these can have on an individual and the support that can be applied. 2.2.5 The policy is focused on four main areas as outlined below: • Legislation and associated policies that protect and support employees. • Roles and responsibilities of managers and employees. • Potential signs and symptoms of the menopause and hormonal changes. • Support mechanisms for both employees and managers. 2.2.6 Once the policy has been approved, a communications campaign will ensure that it is well publicised across all areas of the workforce with various initiatives relating to the menopause and other hormonal change conditions being promoted as appropriate. Page 16 of 220
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2.3 Acceptable Use of ICT Policy 2.3.1 As outlined earlier in this report, the Acceptable Use of ICT Policy is reviewed every two years to ensure it remains fit for purpose. The revised version has been updated to reflect changes to terminology and links have been updated or added to ensure that the correct and up-to-date information is being provided. 2.3.2 The policy also now refers to assisted technologies and information has been added to provide managers and employees with information on how to access assisted technologies where required. 2.3.3 Finally, the policy has also been shortened with more detailed information being transferred to a guidance note with the aim of ensuring that employees and managers fully understand the compliance requirements around ICT but can also find information more readily when required. 2.4 Next Steps 2.4.1 Once the policies have been approved by Committee and Council, appropriate communications will be issued to ensure all staff are aware of the new and revised policies. Where appropriate, training and toolkits will also be developed to support staff and managers. 2.4.2 These policies will remain under review every two years however if there are legislative or organisational changes that impact on them outwith this review period, they will be updated and or amended as necessary. 3. Measures of success 3.1 Employees feel safe in the workplace knowing that there are policies and procedures in place to protect them from unwanted behaviours or discrimination. 3.2 Employees feel comfortable having discussions about their health and wellbeing and managers have the skills and knowledge to apply the correct level of support and assistance. 3.3 Employees fully understand the Acceptable Use of ICT Policy and comply with the requirements of the policy. 3.4 Overall, employees of North Lanarkshire Council feel valued, supported and confident in their employer. 4. Supporting documentation Appendix 1 Sexual Harassment Policy Appendix 2 Menopause and Hormonal Change Policy Appendix 3 Acceptable Use of ICT Policy Fiona Whittaker Chief Officer (People Resources) Page 17 of 220
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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? 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? The introduction of the two new policies should ensure all employees feel safe and supported in the workplace. It will be important to ensure that these policies are publicised and made accessible to all employees and managers and where necessary or appropriate, training is provided. In terms of the review of the Acceptable Use of ICT Policy, this should ensure that all employees of the Council understand their responsibilities and are compliant with the contents. 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? The introduction of the new policies should reduce the Council’s risk of claims of discrimination and unfair dismissal which can be costly if supported by the employment tribunal. 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 18 of 220
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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? It provides guidance to staff to ensure compliance with appropriate council standards and legislation. 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. 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 ☐ Page 19 of 220
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Appendix 1 Sexual Harassment Policy Version 1.0, 11 October 2023 Page 20 of 220
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Sexual Harassment Policy v1.0 Document control Title Sexual Harassment Policy Governance group Finance and Resources Committee Owner Fiona Whittaker, Chief Officer of People Resources Contact whittakerf@northlan.gov.uk Author Lindsay Millar, Employment and Policy Officer Contact millarl@northlan.gov.uk Revision history Version Originator Review start date Revision description and record of change Document approvals Version Governance group Date approved Date approval to be requested (if document still in draft) 1.0 Finance and Resources Committee 22 November 2023 Consultation record (for most recent update) Consultation status Stakeholders consulted Stakeholders consulted and dates CE SMT People Resources Team Equality Team and Equality Forum Joint Trade Unions 17 October 2023 10 May 2023 10 May 2023 10 May 2023 Strategic alignment Plan for North Lanarkshire Priority - Improve North Lanarkshire's resource base Ambition statement - Build a workforce for the future capable of delivering on our priorities and shared ambition. Programme of Work Statutory / corporate / service requirement Next review date Review Date 2 years from date of committee approval Page 21 of 220
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Sexual Harassment Policy v1.0 1. Contents 2. Introduction ...................................................................................................................................... 1 3. Purpose ............................................................................................................................................. 1 4. Legislation ......................................................................................................................................... 2 5. Scope.................................................................................................................................................. 2 6. What is sexual harassment? ........................................................................................................... 2 7. Examples of sexual harassment .................................................................................................... 4 8. Third Party Harassment .................................................................................................................. 6 9. Procedure .......................................................................................................................................... 6 10. Investigation ..................................................................................................................................... 7 11. Outcome ............................................................................................................................................ 8 12. Right of appeal ................................................................................................................................. 8 13. Protection and Support Mechanisms ........................................................................................... 9 14. Confidentiality and Record keeping .............................................................................................. 9 15. Monitoring and Review ................................................................................................................. 10 Page 22 of 220
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Sexual Harassment Policy v1.0 1 2. Introduction The Council recognises that, both as an employer and service provider, it has a duty to ensure there is an open and honest working environment free from harassment where everyone is treated with dignity and respect. To reinforce this, the Council has established a set of organisational values which all employees are expected to follow. All employees should also be aware of the Council’s Employee Code of Conduct and familiarise themselves with the contents of this. The organisational values are: - • respect – we will be open and honest in our dealings, involving and listening to others, demonstrating respect for our citizens, our partners and each other. • commitment – we are committed to our citizens and our colleagues, seeking to understand needs, and delivering a quality service. • pride in the job – we take pride in the job we do for the people and communities of North Lanarkshire. • listening and learning – we will continually learn, transforming our organisation through the knowledge, capability, and initiative of our workforce. 3. Purpose 2.1 This Sexual Harassment Policy sets out a framework to deal with harassment that occurs by staff (which may include consultants, contractors, and agency workers) and also by third parties such as customers, suppliers, or members of the public. This Sexual Harassment Policy aims to protect employees, officers, consultants, self- employed contractors, casual workers, agency workers, volunteers and job applicants from unwanted sexual advances and give them guidelines to report incidents. The policy also outlines how we manage claims, deal with sexual harassment, and help victims recover. Page 23 of 220
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Sexual Harassment Policy v1.0 2 The Council does not tolerate sexual harassment in the workplace in any shape or form. Our culture is based on mutual respect and collaboration. Sexual harassment is a serious violation of those principles and will not be accepted. 2.2 Employees should be aware of the following employment policies/guidance which may be considered in conjunction with this Sexual Harassment Policy: - • Equality and Diversity in Employment Policy • Gender Based Violence Policy • Dignity at Work Policy • Grievance Policy • Discipline Policy • Data Protection Guidance • Acceptable Use of ICT Policy and Guidance • Employee Code of Conduct • Whistleblowing Procedure • Other relevant Professional Codes of Conduct 4. Legislation 3.1 The Equality Act 2010 is the principal piece of legislation that supports this policy. 3.2 The Equality Act 2010 protects people against sexual harassment and harassment related to 'protected characteristics', for example a person's sex. 3.3 Sexual harassment is different to harassment related to a person's protected characteristic, for example sexual orientation or gender reassignment. Someone could experience both types of harassment at the same time, or separately. 5. Scope This policy applies to every person in the Council regardless of their sex, sexual orientation, level, function, seniority, status, or other protected characteristics. The Council does not and will not tolerate sexual harassment from inside or outside of the organisation. 6. What is sexual harassment? 5.1 Sexual harassment is any unwanted physical, verbal, or non-verbal conduct that has the purpose or effect of violating a person’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment for them. A single incident can amount to harassment. It also includes treating someone less favourably because they have submitted or refused to submit to such behaviour in the past. Sexual harassment has many forms of variable seriousness. Examples of sexual harassment include: Page 24 of 220
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Sexual Harassment Policy v1.0 3 • Unwanted physical conduct or “horseplay,” including touching, pinching, pushing, and grabbing. • Continued suggestions for social activity after it has been made clear that such suggestions are unwelcome. • Unwelcome sexual advances or suggestive behaviour (which the harasser may perceive as harmless). • Insinuate, propose, or demand sexual favours of any kind. • Invade another person’s personal space making them feel uncomfortable or uneasy. • Stalk, intimidate, coerce, or threaten another person to get them to engage in sexual acts. • Sending or displaying material that is pornographic or that some people may find offensive (including emails, text messages, video clips and images sent by mobile phone or posted on the internet). • Comment on someone’s looks, dress, sexuality, or gender in a derogatory or objectifying manner or a manner that makes them uncomfortable. • Make obscene comments, jokes or gestures that humiliate or offend someone. • Pursue or flirt with another person persistently without the other person’s willing participation. Also, flirting with someone at an inappropriate time (e.g., in a team meeting) is considered sexual harassment, even when these advances would have been welcome in a different setting. This is because such actions can harm a person’s professional reputation and expose them to further harassment. 5.2 The most extreme form of sexual harassment is rape and sexual assault, and employees are encouraged to report any acts of this nature to the police. 5.3 The Council’s rules on sexual harassment are outlined as follows: • The Council will not tolerate sexual harassment from inside or outside the organisation. Employees, officers, consultants, self-employed contractors, casual workers, agency workers, volunteers and/or job applicants and everyone interacting with the Council are covered by this policy. • Any employee in the Council who is found guilty of serious harassment will be dealt with in line with the Council’s Discipline Policy. • Sexual harassment is never too minor to be dealt with. Any kind of harassment can wear down employees and create a hostile workplace. We will hear every claim and discipline offenders appropriately. • Sexual harassment is about how we make others feel. Many do not consider behaviours like flirting or sexual comments to be sexual harassment, thinking they are too innocent to be labelled that way. But, if something you do makes your colleagues uncomfortable, or makes them feel unsafe, you must stop. • The Council will assume every sexual harassment claim is legitimate. If you have experienced any form of sexual harassment, the Council will ensure this matter is addressed appropriately. Occasional false reports do not undermine this principle, although false allegations will also be taken very seriously, and appropriate action taken. • The Council will not allow further victimisation of harassed employees and will fully support employees who were sexually harassed and will not take any Page 25 of 220
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Sexual Harassment Policy v1.0 4 adverse action against them. For example, we will not move them to positions with worse pay or benefits, or to a different location without their agreement or allow others to retaliate against them. • Those who support or overlook sexual harassment are as much at fault as offenders. Managers are especially obliged to prevent sexual harassment and act when they have suspicions or receive reports. Letting this behaviour go on or encouraging it will bring about disciplinary action. Anyone who witnesses an incident of sexual harassment or has other kinds of proof should report to this to their manager or the Employment and Policy Team. 7. Examples of sexual harassment The following examples are intended to provide illustrations of the types of behaviours that will constitute sexual harassment. They are not exhaustive and there are many more examples of such behaviour. Importantly, sexual harassment can arise in various forms and to different degrees. As part of the review process for this policy, the Council will ensure that the specific examples given in this policy are updated so as to reflect the specific work environment in which our staff operate taking account of the composition of our workforce and the types of work undertaken. Certain types of harassment may be linked to more than one aspect of the recipient’s identity. This is intersectional harassment. Examples that illustrate this are included here, but this policy is not fully intersectional and must be read with the Dignity at Work Policy for further guidance on other forms of discrimination. 7.1. Some forms of sexual harassment are clear violations of a person’s dignity: Example One A black female worker overhears two colleagues discussing whether she would be willing to have sex with them. They express the view that she would be “really easy to get into bed” because “black women love sex.” 7.2. Sexual harassment does not have to be targeted at one individual: Example Two A music promoter adds a link to their email signature to a promotional video for a rock band. In the video, scenes of a sexual nature are portrayed by actors. Every time they send an email to their colleagues and to their contacts outside the organisation, this link is received. 7.3. Sexual harassment does not have to be intentional: Page 26 of 220
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Sexual Harassment Policy v1.0 5 Example Three A male worker believes that his female colleague uses the fact he is in a wheelchair as an excuse to make physical contact with him. He feels the situation is complicated by the practicalities and power dynamics of needing support from others with certain tasks. He wants to report the issue but thinks she may not realise she has been doing this. 7.4. It is not necessary for the recipient to say that they object to the behaviour for it to be unwanted: Example Four A young woman’s body is repeatedly referred to by two of her colleagues. These comments are made in front of her over several months. She does not voice any objection to the comments, sometimes laughing at them and, on one occasion, she responds by making equally offensive comments about one of her colleagues. 7.5. There may be circumstances in which a course of conduct is not unwanted in the earlier stages, but at some point ‘oversteps the mark’ and becomes unwanted. Example Five Two work colleagues become friendly, often having lunch together and occasionally meeting up outside of work. One Friday night, after a few drinks at the pub, they kiss and agree to meet again the following weekend. On the Monday morning, one takes the other to one side and explains that they regret what happened and would like to keep their relationship professional. The employee who wishes to keep the relationship going, texts and emails the other employee several times a day over the next week, expressing their affection and upset at the ‘change of heart’ and repeatedly asking to meet up outside of work despite this request being repeatedly refused. 7.6. There may be circumstances where behaviour feels appropriate to those involved but causes concerns for others who may see or overhear it, even if nothing is targeted at them. This could still amount to sexual harassment in breach of this policy. Example Six A group of employees are chatting in the office about the finale of a TV show that they have all been watching. The TV show is popular though it is renowned for being sexist and sexually explicit at times. Those engaged in the conversation are all comfortable talking about the show and the sexual content, focussing on scenes depicting lesbian Page 27 of 220
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Sexual Harassment Policy v1.0 6 Example Six activity. However, others who sit in the open plan office feel uncomfortable. They are worried that the group may try to involve them in the conversation as they do not want to talk about a show that they find misogynist, homophobic and degrading to women. They do not think anyone needs to be discussing it at work. They are also worried that if they voice that view, they will be judged by the group who like the show 8. Third Party Harassment 7.1 The sexual harassment of employees will not be tolerated, whether caused by those that work for the Council or third parties including customers, suppliers, clients, or members of the public. 7.2 Where the complaint is about someone other than an employee, the Council will consider what action is appropriate to protect the individual raising the concern and anyone involved pending the outcome of the investigation, bearing in mind the reasonable needs of the Council and the rights of that person. Where appropriate, the Council will attempt to discuss the matter with the third party. 7.3 Any instance of work-related sexual harassment should be reported in line with this policy, regardless of who the alleged perpetrator is. The Council will act in accordance with the Equality and Human Rights Commission Guidance on third party sexual harassment and employer’s liability available here: Sexual Harassment and Harassment at Work 9. Procedure 8.1 If someone covered by the scope of this policy feels that they are being sexually harassed (or suspect another person is being harassed), they should consider whether they feel able to raise the problem with the person responsible. It should be explained that their behaviour is not welcome and makes the employee feel uncomfortable. 8.2 If this is too difficult, employees should speak to their manager in the first instance who can provide advice and assistance in resolving the issue formally or informally. 8.3 If the employee feels unable to speak to their manager because the complaint involves them, the employee should speak to the Employment and Policy Team. The Council acknowledges it is often hard to come forward about these issues, but need employees and managers help to build a fair and safe workplace for all employees. 8.2 Individuals making a report of sexual harassment can do this by either asking for a meeting with their line manager and/or the Employment and Policy Team or sending the complaint via email to their line manager and/or Employment and Policy Team. 8.3 The written complaint should set out full details of the conduct in question, including the name of the harasser, the nature of the harassment, the date(s) and time(s) at which it occurred, the names of any witnesses and any action that has been taken so far to prevent it from occurring. Employees should provide any evidence or Page 28 of 220
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Sexual Harassment Policy v1.0 7 information that they can which can be used in the investigation. As a general principle, the decision to progress a complaint is up to the individual. However, the Council has a duty to protect all staff and may pursue the matter independently if, in all the circumstances, it is appropriate to do so. 8.3 Individuals may also feel that they want to report the assault to the police, and if they do the Council will provide any possible support until the matter is resolved. Employees should advise their manager or the Employment & Policy Team of this if appropriate. In any case, we will ensure that employees are not victimised and have access to relevant evidence admissible in court, like security video footage or emails. 8.4 Following submission of a complaint, appropriate officers will be appointed to conduct a thorough and impartial investigation in a timely, respectful, and confidential manner. Individuals not involved in the compliant or the investigations should not be told about it. The outcome of the investigation may result in action, including possible disciplinary action, being taken against the employee who is the subject of the complaint. In all cases, the individuals concerned will be treated sensitively, with confidentiality being maintained at all times. 10. Investigation 9.1 Where an investigation is undertaken using this policy, the investigating panel will comprise a minimum of two people, one of whom should be a representative from the Employment and Policy Team. Consideration should always be given to the composition of the panel in light of the circumstances of the investigation so it may be appropriate to have a woman only or men only panel depending on the nature and sensitivity of the case. The investigating officer will be drawn from outwith the immediate section of the person(s) involved. 9.2 An investigation into a formal complaint through the Sexual Harassment Policy should normally be completed within 12 weeks, where possible and reasonable. Completion within this timescale will be dependent on the extent and complexity of the investigation and the sensitivity of the matter being investigated. At the start of the investigation, both parties will be advised how long the investigation is likely to take and the name of the Lead Investigation Officer undertaking the investigation. The Lead Investigation Officer will keep both parties informed if the indicative timescale will not be met, advising both parties of an anticipated revised completion date, giving reasons for the revised timescale. 9.3 The Council will seriously consider any request made for changes to working arrangements during the investigation. For example, an employee may ask for changes to duties or working hours to avoid or minimise contact with the alleged harasser. It may be necessary to interview witnesses to any of the incidents mentioned and, if so, the importance of confidentiality will be emphasised to them. 9.4 The investigation report will be submitted to the nominated Senior Officer who will meet with the employee to discuss the outcome and what action, if any, should be Page 29 of 220
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Sexual Harassment Policy v1.0 8 taken. A copy of the report will be provided, and the Senior Officer’s findings will be provided to the employee and to the alleged harasser. The Employment and Policy Team have a responsibility for assisting managers and supervisors to carry out recommendations arising from investigations, as appropriate. 11. Outcome 10.1 The appropriate action taken in any case will be dependent on all of the circumstances of the case and the individuals involved. An objective decision should be made on whether sexual harassment has taken place having considered the findings of the investigation panel. It is not possible to provide the definitive course of action to be adopted in each case. If the Senior Officer considers that harassment has occurred, prompt action will be taken to address it. 10.2 Where the harasser is an employee of the Council, the matter will be dealt with as a case of misconduct or gross misconduct under the Discipline Policy. If the harasser is a third part such as a customer or other visitor, consideration will be given to what action would be appropriate to deal with the problem. 10.3 Whether or not a complaint is upheld, consideration will be given to how best to manage the ongoing working relationship. It may be appropriate to arrange some form or mediation and/or counselling or to change the duties, working location or reporting lines of one or both parties. 10.4 Any staff member who deliberately provides false information or otherwise acts in bad faith as part of an investigation may be subject to action under the Discipline Policy. 12. Right of appeal 11.1 If, following the investigation, the complainant is unhappy with the decision of the nominated Senior Officer not to uphold a formal complaint, or uphold it only in part, they will have the opportunity to exercise their one right of appeal against the decision, which will be considered at Service level. 11.2 In such circumstances the employee must write to the Chief Officer of People Resources within 14 days of receiving the decision of the nominated Senior Officer, detailing the reasons why they are dissatisfied. In general, an appeal may be submitted where: • The complainant has not received enough information about the findings of the investigation. • The complainant disagrees with the actions/findings of the investigation and/or the nominated Senior Officer’s actions/findings. • The complainant feels that procedural errors occurred in the investigation. 11.3 The Chief Officer of People Resources will acknowledge receipt of the appeal letter, in writing, within 7 days of receiving it. 11.4 The appeal process will not re-investigate the original complaint. The appeal will consider whether the outcome of the original investigation was conducted in a Page 30 of 220
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Sexual Harassment Policy v1.0 9 comprehensive and thorough manner, and the conclusions reached were logical and based on all available evidence. The appeal will consider: • Were the findings appropriate and based on evidence? Was any evidence missed? Is there fresh evidence now available? • Was the information supplied to the employee sufficient to allow them to understand the outcome and the reasons why? 11.5 When an appeal letter has been received, the Chief Officer of People Resources will inform all parties involved in the investigation that an appeal has been received and will nominate a Senior Officer to conduct an appeal hearing, with a representative from the Employment and Policy Team. The appeal will normally be undertaken within a further 21 days. 11.2 The nominated Senior Officer will then confirm in writing to the complainant the outcome of the appeal within 7 days and will also confirm that there is no further right of appeal. 13. Protection and Support Mechanisms 12.1 Staff who make complaints or who participate in good faith in any investigation must not suffer any form of retaliation or victimisation as a result. Anyone found to have retaliated against or victimised someone in this way will be subject to disciplinary action under our Discipline Policy. If an employee believes that they have suffered such treatment, they should inform their line manager. If the matter is not remedied, they should raise it formally using the Dignity at Work Policy. 12.2 Counselling can be a useful support mechanism when dealing with complaints of sexual harassment. This service is available to both the complainant and the employee who is the subject of the complaint during any stage of the process and on completion of the process. Further information on employee counselling can be accessed on Mil. 12.3 Support Officers – Dignity at Work, Trades Union representatives, members of the Employee Equality Forum, Line Managers and Employment and Policy Team representatives can also offer support and advice to both parties, both during and after the process. Further information is available on MyNL. 12.4 Further information is available from the Employment and Policy Team. 14. Confidentiality and Record keeping 13.1 Confidentiality is an important part of the procedures involved under this policy. Details of the investigation and the names of the person making the complaint and the person accused must be disclosed on a “need to know basis.” Breach of confidentiality may give rise to disciplinary action under the Discipline Policy. 13.2 Information about a complaint by or about an employee may be placed on the employee’s personnel file, along with a record of the outcome and of any notes or any Page 31 of 220
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Sexual Harassment Policy v1.0 10 other documents compiled during the process. These will be processed in accordance with our Data Protection Policy. 15. Monitoring and Review The Finance and Resources Committee has approval authority for, and oversight of, this policy. The Employment and Policy Team – as key stakeholders – oversee its review and consider its contents before referring it on for approval. The Chief Officer of People Resources – is accountable for its governance. The Employment and Policy Team is responsible for the following activities. 1. Produce, publish, and promote this policy. a. Write it in a way that is easy to read and understand. b. Consult with relevant stakeholders on its content and implications. c. Make sure all users can access it. 2. Give guidance on how to apply and comply with this policy through standards, toolkits and guidance, legislation and regulations and other related policies and procedures – see here for toolkits and other sources of information. 3. Review and report on this policy. a. Review every two years, with other reviews when needed. For example, following new legislation, new external or internal strategies/plans, to align with best practice. b. Report to management teams, governance and working groups, committees, and scrutiny panels. Page 32 of 220
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Appendix 2 Menopause & Hormonal Changes Policy Version 1.0, 11/10/2023 Page 33 of 220
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Menopause & Hormonal Changes Policy 2 Document control Title Menopause & Hormonal Changes Policy Governance group Finance and Resources Committee Owner Fiona Whittaker, Chief Officer – People Resources Contact whittakerf@northlan.gov.uk Author Tracy Simpson, Employment & Policy Officer Contact simpsontr@northlan.gov.uk Revision history Version Originator Review start date Revision description and record of change Document approvals Version Governance group Date approved Date approval to be requested (if document still in draft) 1.0 Finance and Resources Committee 22 November 2023 Consultation record Consultation status Stakeholders consulted Stakeholders consulted and dates CE SMT Joint Trade Unions People Resources Employee Equality Forum Employment and Policy Team NHS Lanarkshire TBC 10 May 2023 10 May 2023 10 May 2023 10 May 2023 10 May 2023 Strategic alignment Plan for North Lanarkshire Priority - Improve North Lanarkshire's resource base Ambition statement - Build a workforce for the future capable of delivering on our priorities and shared ambition Programme of Work Statutory / corporate / service requirement Next review date Review Date 2 years from date of committee approval Page 34 of 220
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Menopause & Hormonal Changes Policy 3 Contents 1. Introduction ...............................................................................................4 2. Purpose ......................................................................................................5 3. Scope and exclusions...............................................................................5 4. Associated Policies and Legislation ........................................................5 5. Roles and Responsibilities ......................................................................6 6. Support Mechanisms ...............................................................................8 7. Types of Menopause and Hormonal Changes ....................................8 8. Potential Signs and Symptoms of Menopause and Hormonal Changes ........................................................................................................ 11 9. Practical Arrangements ........................................................................ 13 10. Toolkits and Further Sources of Information ................................. 15 11. Monitoring and Review ...................................................................... 15 Appendix 1 Examples of Reasonable Adjustments ............................. 17 Appendix 2 Glossary of Terms ................................................................ 21 Page 35 of 220
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Menopause & Hormonal Changes Policy 4 1. Introduction The Council is committed to providing an inclusive and supportive working environment for all our employees and appreciates that the effects of menopausal, or significant hormonal changes, can have an impact on employees both directly and/or indirectly. This policy is predominantly aimed at women; however it also provides for men, Trans*, non-gender and cis-gender people and whilst not everyone experiences these symptoms, it is considered a wider organisational concern which may affect anyone in our workforce. Menopause and hormonal changes can impact on a person’s emotional wellbeing and exacerbate life stressors, caring responsibilities, and work life balance. Without appropriate support employees can be left feeling vulnerable and this can impact negatively on their work and their role within the Council. As a Council, we support an inclusive organisational culture and are committed to working towards removing all barriers and breaking down the stigma of this topic within our places of work so that more employees can feel confident and comfortable, to talk openly about menopause and other hormonal changes, and can get the support they may need. The Scottish Government (SG) launched the Women’s Health Plan in 2021 which can be accessed here. Its aim is to improve health outcomes and health services for all women and girls in Scotland. The North Lanarkshire Council Menopause and Hormonal Changes Policy will ensure that the Council is adopting best practice and providing our workforce with access to the wealth of resources and support that has been developed as part of the Women’s Health Plan. Page 36 of 220
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Menopause & Hormonal Changes Policy 5 2. Purpose This council recognises that there is no ‘one-size-fits-all” solution and therefore this policy will act as a support guide for all employees and line Managers and Line Managers. The main aim of the policy is:- To support our employees to be empowered to instigate conversations openly and comfortably or engage in discussions about menopause and any other hormonal change signs and symptoms which are impacting on a person’s working day. To help support employees to remain at work and to be able to effectively function in their role to their fullest potential. To educate and inform all employees about the potential indicators, how to support employees, appreciate and understand the challenges people may be experiencing and where information, advice and support is available within the Council. 3. Scope and exclusions In scope: This policy applies to all employees of the Council regardless of gender, sexual orientation, level, function, seniority, status, or other protected characteristics. 4. Associated Policies and Legislation Council Policies Managers, Line Managers and Employees should be aware of the following employment policies which may be considered in conjunction with the Menopause and Hormonal Changes Policy:- • Smarter Working Policy • Special Leave Policy • F7 Leave of Absence for Teachers and Associated Professionals • Supporting Attendance Policy and Procedures • Managing Attendance for Teachers and Associated Professionals Page 37 of 220
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Menopause & Hormonal Changes Policy 6 • Sexual Harassment Policy • Dignity At Work Policy Legislation Equality Act 2010 o Under the Equality Act (2010) menopause is largely covered under three protected characteristics: age, sex, and disability discrimination. This act protects people from discrimination in the workplace, which includes direct and indirect discrimination and harassment. The Health and Safety at Work Act 1974 o This Act provides for safe working, which extends to the working conditions when experiencing menopausal signs and symptoms. The Workplace (Health, Safety and Welfare) Regulations 1992 Management of Health and Safety at Work Regulations/Workplace (Health, Safety and Welfare) Regulations 1992. 5. Roles and Responsibilities Chief Officers Ensure the development, implementation and communication of the policy and supporting frameworks and to promote a healthy working environment. Ensure that this policy is shared with all Managers within their service areas and that a fair and equal working environment is promoted. Create and facilitate an environment that encourages Managers and Line Managers to approach conversations with employees in a supportive and positive manner, treating everyone with dignity and respect. Managers and Line Managers Ensure they familiarise themselves with this policy and any associated guidance. Ensure all employees are made aware of this policy, through internal communications and training, to increase their understanding and awareness of menopause and hormonal changes and the impact this can have on a person either directly or indirectly in their working environment. Page 38 of 220
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Menopause & Hormonal Changes Policy 7 Offer employees support when issues relating to menopause, or hormonal changes, are raised by keeping lines of communication open. Approach conversations respectfully and supportively with positive commitment to understanding people’s specific needs. Take time to understand any potential barriers for the person and what support they could benefit from to help them maintain their full potential. Undertake a risk assessment and continue to review regularly to make sure employees’s working environments remain safe and healthy. Consider any reasonable adjustment requests received which would help and support employees within their working environment. Ensure on-going communication and, if required, agree a plan for review. Where a member of employees reports on-going difficulties, or concerns, about their wellbeing at work a line manager must consider a referral to Occupational Health for further advice and support. Employees Employees should familiarise themselves with this policy in order to increase their understanding and awareness of menopause and hormonal changes and the impact this can have on a person either directly or indirectly in their working environment. Take responsibility for their own wellbeing and take reasonable steps to look after both their physical and mental health. This includes seeking medical advice and treatment as and when required. The Council recognises that obtaining medical advice and treatment can be a lengthy and stressful process and additional support is available through our organisation. Where appropriate, take responsibility to communicate any health issues or concerns which may impact on their performance or attendance at work. If they feel unable to speak to their line manager, they can also speak to members of the Employment and Policy team, Union Representatives, Dignity at Work Officer, or a colleague where appropriate. Work with their line manager to consider and discuss solutions to help improve their situation, especially if they feel their performance is being impacted. Treat everyone with dignity and respect. People Resources Page 39 of 220
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Menopause & Hormonal Changes Policy 8 Provide advice and support to employees and line Managers and Line Managers on the content and application of this policy. Promote awareness including training and education for employees and Managers and Line Managers regarding menopause and hormonal change situations. Provide information on when to refer employees to Occupational Health. Provide support and advice to employees, line Managers and Line Managers in relation to reasonable workplace adjustments, if required. Signpost appropriate sources regarding health-related issues because of menopause and hormonal changes. 6. Support Mechanisms This policy will be supported by guidance and information toolkits for Managers and Line Managers and employees. The Council will ensure that employees that do not have ready access to online resources will still be able to access the toolkits by other means. See Section? for links to toolkits and further sources of internal and external information 7. Types of Menopause and Hormonal Changes 7.1 Natural Menopause A natural ageing process for women, cisgender*, Trans* men and non-binary* people. Signs and symptoms are caused by oestrogen fluctuations and ultimate decline of this hormone in the body. Natural Menopause is when menstruation has ceased for twelve consecutive months and the ovaries have stopped producing eggs and hormones, notably testosterone, oestrogen, and progesterone, fall below a certain level. Studies show that menopause usually occurs between the ages of 45 and 55, however it can happen much earlier, for example, through primary ovarian insufficiency. Research states that there can be a variation between different ethnic backgrounds in the average age menopause can take place. *The definition of these terms is contained in Appendix 2 Page 40 of 220
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Menopause & Hormonal Changes Policy 9 7.2 Medical or Surgical Menopause This can occur at any age when the ovaries are damaged by medical treatments, for example chemotherapy, radiotherapy, or they have been removed as part of a hysterectomy. Although natural menopause can involve a gradual change, the changes through medical or surgical menopause can be more sudden. 7.3 Peri-Menopausal This is the period of hormonal changes which takes place leading up to natural menopause. During this time, a person can start to experience symptoms and they can often last anywhere from a few months to five years. This period can also be referred to as the menopausal transition phase and climacteric stage, which refers to the transition from the reproductive to the non-reproductive period in a person’s life. 7.4 Premature Menopause Approximately one in every 100 cisgender women may experience a premature natural menopause, before the age of 40; as estimated by NHS. 7.5 Premenstrual Syndrome (PMS) Changes in a person’s body hormone levels before a period can cause physical and emotional changes. This is also known as Premenstrual Tension (PMT). Potential signs and symptoms are listed in section 10.0 of this policy. People can experience heavy periods throughout their menstrual cycle. They can sometimes be heavy at various times which can include after pregnancy, during menopause or if a person is feeling stressed. Some medicines and treatments, including anticoagulant medicines and chemotherapy medicines can have a significant impact on a person. There are some conditions which can affect a person’s womb, ovaries, or hormones, such as: Page 41 of 220
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Menopause & Hormonal Changes Policy 10 • Endometriosis • Fibroids • Pelvic Inflammatory Disease • Polycystic Ovary Syndrome • Womb Cancer 7.6 Hormonal Changes People undertaking hormone therapy will generally remain on this throughout their lives. However, if hormone therapy is interrupted, or levels are unstable, they can experience similar menopausal indicators. Hormonal changes can be experienced by people going through several types of treatment, for example cancer treatments and chemotherapy. The treatment can cause an imbalance in a person’s previous hormonal levels causing them to experience signs and symptoms like the menopause. 7.7 Hormone Therapy for a Trans* Person The aim of hormone therapy is to make a person more comfortable with themselves, both in terms of physical appearance and how they feel. The therapy will usually need to be taken for the rest of their lives, even after gender surgery. The common risks or side effects of having hormone therapy can include the following (this is not an exhaustive list): Blood clots Gallstones Weight gain Acne Hair loss or balding Infertility Developing deep vein thrombosis and pulmonary embolism Abnormal liver function 7.8 Menopause in people who were not born with a Uterus, also known as Andropause. It is where the production of testosterone and other hormones declines gradually over a period of many years. Indicators may vary from person to person however the common signs can be like those of a person going through the menopause. Please refer to section 10.3.3. Page 42 of 220
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Menopause & Hormonal Changes Policy 11 7.9 Post Menopause and Post Hormonal Changes This is the time following menopause. Although signs and symptoms are known to subside, they can continue for approximately four to twelve years. 8. Potential Signs and Symptoms of Menopause and Hormonal Changes The severity of these may vary for individuals, which may differ from mild to significant and the signs and symptoms can change, and new ones can develop over time. Menopausal and hormonal changes can also aggravate pre-existing health conditions. In some cases, signs and symptoms can be exacerbated by the work environment, for example, workplace environment temperature may have an impact on the frequency of a person’s hot flushes. The most common reported signs and symptoms are contained in the tables below (these lists are not exhaustive) Menopause and Peri-Menopausal Changes to regular menstrual cycles, becoming irregular, heavier, longer Dental and oral health changes Hair changes, including loss and thinning Eye and skin irritation, dryness to skin and chronic adult acne Fatigue Increased body fat Genito-Urinary issues (incontinence, increased UTI, vaginal discomfort) Insomnia and sleep disturbances Headaches Joint aches Hot flushes and palpitations Lack of libido Lack of enthusiasm, energy, or motivation Night sweats (increased sweating may also be experienced throughout the day) Page 43 of 220
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Menopause & Hormonal Changes Policy 12 Poor concentration Reduced confidence levels Imbalanced Hormone Levels Chronic adult acne Confidence level changes Fertility issues Headaches Insomnia and poor-quality sleep Mood swings Joint aches Unexplained weight gain Andropause Chronic adult acne Late-onset hypogonadism Difficulty sleeping or increased tiredness Mood swings and irritability Erectile dysfunction Loss of muscle mass and reduced ability to exercise Fat redistribution, such as developing a large belly or enlarged chest Poor concentration and short-term memory General lack of enthusiasm or energy Reduced confidence Premenstrual Syndrome/ Premenstrual Tension Breast tenderness Feeling bloated Changes in appetite Feeling irritable Changes to skin appearance and hair Headaches Mood swings Tiredness or trouble sleeping Associated psychological signs (this is not an exhaustive list) Anxiety Cognitive challenges including memory issues, brain fog, poorer concentration Depression Feelings of loss and grief Irritability, sudden onset of anger Loss of confidence Mood swings Panic attacks Problems with memory Stress Page 44 of 220
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Menopause & Hormonal Changes Policy 13 9. Practical Arrangements 9.1 Line Manager Support Line Managers and Line Managers are normally the first point of contact a employees member will have to discuss their health concerns with or to raise a request for reasonable adjustments to their working environment. For some people going through these biological, psychological, and social changes it can be uneventful but for others it will have an impact on their working day, which could affect their ability to function at their optimal level. A person going through these changes may experience a negative impact on their performance and have a greater susceptibility to fatigue and stress at work. They may also experience a change in their confidence levels. The signs and symptoms that a person is experiencing may also impact on various aspects of their working conditions and environment. For example, lack of temperature control or ventilation of a person’s workplace, material or fit of uniforms, accessibility to toilet facilities and/or access to cold drinking water. The support an employee receives has a significant impact and influences their experience at work. Employees should feel able to openly discuss this subject and managers should therefore ensure Menopause, and Hormonal Changes and the impact that these may have on employees are also openly discussed at team/service meetings. Open cultures need to be created where people feel comfortable to say if they are struggling. 9.2 Starting the Conversation A person may find starting the conversation slightly awkward and feel reluctant to talk about sensitive and personal issues and the impact they may have on them at work. Take time to listen and approach conversations with empathy, use open non- judgemental questions and take care not to make thoughtless comments and assumptions. Page 45 of 220
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Menopause & Hormonal Changes Policy 14 It is important to set the right tone when opening a conversation about any sensitive issues. Avoid interruptions, switch off phones, ensure other colleagues cannot walk in and interrupt. Give the employee a chance to explain the situation in their own words and encourage them to talk by speaking calmly. Do not make judgements based on personal or previous experience, every case will be different and must be treated as such. Any conversations a member of employees have with you should be kept strictly confidential, and information should only be shared with the Occupational Health & Wellbeing service when consent has been provided by the employees member concerned. 9.3 Risk Assessment Whilst menopause itself is not considered a disability in accordance with the Equality Act 2010, the symptoms and impact of these on a person’s day to day live may well be. Therefore Managers and Line Managers should ensure that they take all reasonable steps to ensure that a member of employees’s symptoms are not being exacerbated by their job or working environment. A risk assessment will help to identify specific needs. Often, making simple changes can help to alleviate the impact of some signs and symptoms. A template risk assessment can be found here. Reasonable adjustments can include minor changes, or a person being offered more flexible working arrangements. Practical steps to support employees can help minimise some of the most common signs and symptoms. The Council will carefully consider any reasonable adjustments in consultation with the individual and Occupational Health/Employment and Policy team. However, the Council does have the right to decline any requests which are not deemed reasonable, suitable, or likely to be effective. If a person’s performance is being impacted by signs and symptoms of menopausal or hormonal changes it is important to address the root cause, as it is in the best interest of the employee, the team, and the Council. Once a risk assessment has been completed it should be continued to be reviewed frequently. If any reasonable adjustments are identified, advice may be sought from Occupational Health and the Employment and Policy team. Page 46 of 220
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Menopause & Hormonal Changes Policy 15 Appendix 1 provides examples of adjustments which may be helpful for various indicators, please note that this is only for guidance. 9.4 Supporting Attendance Everyone may be affected differently to menopause or hormonal changes and how these impact on their ability to be at work or their performance whilst at work. The Council will treat employees with menopausal and hormonal changes the same as anyone else with long-term fluctuating health conditions, including considering reasonable adjustment requests in accordance with Equality Act 2010. Managers and Line Managers should adhere to the relevant Supporting Attendance and Managing Absence Policies where an employee is absent due to the impact of menopause or hormonal changes. 10. Toolkits and Further Sources of Information In order to support this policy, and provide Managers and Line Managers and employees with the relevant resources, toolkits for Managers/Line Managers and employees are available below along with links to other sources of information Will have links here to Toolkits and other information resources for Managers and Line Managers and Employees. In these will be Information Leaflets, Practical Self Help Guides, links to podcasts, webinars etc and any template documentation such as risk assessment 11. Monitoring and Review The Finance and Resources Committee has approval authority for, and oversight of, this policy. The Employment and Policy Team – as key stakeholders – oversee its review and consider its contents before referring it on for approval. The Chief Officer of People Resources – is accountable for its governance. The Employment and Policy Team is responsible for the following activities. Page 47 of 220
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Menopause & Hormonal Changes Policy 16 1. Produce, publish, and promote this policy. a. Write it in a way that is easy to read and understand. b. Consult with relevant stakeholders on its content and implications. c. Make sure all users can access it. 2. Give guidance on how to apply and comply with this policy through standards, toolkits and guidance, legislation and regulations and other related policies and procedures – see here for toolkits and other sources of information. 3. Review and report on this policy. a. Review every two years, with other reviews when needed. For example, following new legislation, new external or internal strategies/plans, to align with best practice. b. Report to management teams, governance and working groups, committees, and scrutiny panels. Page 48 of 220
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Menopause & Hormonal Changes Policy 17 Appendix 1 Examples of Reasonable Adjustments The table below provides some examples of adjustments that may be helpful for various symptoms. This is not an exhaustive list. Symptom Examples of Workplace factors which could worsen or interact with Symptoms Suggested adjustments Daytime sweats, hot flushes, palpitations. Unsuitable workplace temperatures and lack of ventilation. Ensure easy access to supply of cold drinking water and toilet facilities. Take account of shift or peripatetic workers schedules and allow them to access facilities during their working day. Carry out ‘thermal mapping’ to identify hot and cold spots in the workplace and review office seating plans to allow workspace to be positioned based on suitability/need. Look at ways to cool the working environment for those affected, for example fans at workstations, move desks nearer to windows, opening windows and adjust air conditioning. Unsuitable uniforms or workwear; unsuitable or ill- fitting personal protective equipment (PPE), for example, face masks/ visors and lead aprons may be uncomfortable if worn for long periods. Avoid nylon or close-fitting uniforms, provide alternatives made from natural fibres. Ensure all PPE is appropriate in terms of size and materials and that more suitable alternatives are offered if needed. ‘One size fit all’ blanket issue items are unlikely to be suitable for all members of the workforce. Lack of access to rest breaks or suitable break areas. Hot flushes and facial redness may cause women to feel self-conscious or the sensation may affect concentration or train of thought Be flexible about additional breaks. Allow time out and access to fresh air. Ensure a quiet area/room is available. Ensure cover is available so workers can leave their posts if needed. Night-time sweats and hot flushes. Insomnia or sleep disturbance. Rigid start/finish times and lack of flexible working options may increase fatigue at work due to lack of sleep (may be compounded if shift work is carried out). Consider temporary adjustment of shift patterns or hours to accommodate any difficulties. Allow flexible/home working. Provide the option of alternative tasks/duties. Make allowance for potential additional need for sickness absence. Reassure workers that they will not be penalised or suffer detriment if Page 49 of 220
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Menopause & Hormonal Changes Policy 18 they require adjustments to workload or performance management targets. Urinary problems, for example, increased frequency, urgency, and increased risk of urinary infections. Lack of access to adequate toilet facilities may increase the risk of infection and cause distress, embarrassment, and an increase in stress levels. Ensure easy access to toilet and washroom facilities. Allow for more frequent breaks in work to go to the toilet. Employees member may need to access toilet facilities more frequently; may need to drink more fluids, may feel unwell. Ensure easy access to supply of cold drinking water. Take account of peripatetic workers schedules and allow them to access facilities during their working day. Irregular and/or heavy periods. Lack of access to adequate toilet facilities may increase the risk of infection and cause distress, embarrassment, and an increase stress level. Employees member may need to access toilet and washroom facilities more frequently Ensure easy access to well-maintained toilet and washroom or shower facilities. Allow for more frequent breaks in work to go to the toilet/ washroom. Ensure sanitary products readily available. Take account of peripatetic workers schedules and allow them to access facilities during their working day. Ensure cover is available so employees can leave their posts if needed. Skin irritation, dryness or itching Unsuitable uniforms, workwear, PPE or workplace temperatures and humidity may increase skin irritation, dryness and itching, there may be discomfort and an increased risk of infection and a reduction in the barrier function of skin Avoid nylon uniforms. Provide alternatives made from natural fibres with options for layering that can be adjusted. Ensure comfortable working temperatures and humidity. Ensure easy access to well-maintained toilet and washroom or shower facilities. Allow for more frequent breaks in work to go to the toilet/ washroom. Muscular aches and bone and joint pains. Lifting, moving and manual handling as well as work involving repetitive movements or adopting static postures may be more uncomfortable and there may be an increased risk of injury Make any necessary adjustments through review of risk assessments and work schedules/tasks and keep under review. Consider providing alternative lower risk tasks. Follow HSE guidance and advice on manual handling and preventing MSDs (Musculoskeletal disease) Headaches Headaches may be triggered or worsened by many workplace factors such as artificial lighting, poor air quality, exposure to chemicals, screen work, workplace stress, poor posture/ unsuitable workstations, Ensure comfortable working temperatures, humidity, and good air quality. Ensure access to natural light and ability to adjust artificial light. Allow additional rest breaks. Ensure a quiet area/room is available. Conduct DSE and stress risk assessments. Page 50 of 220
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Menopause & Hormonal Changes Policy 19 unsuitable uniforms, or workplace temperatures Dry eyes. Unsuitable workplace temperatures/humidity, poor air quality and excessive screen work may increase dryness in the eyes, discomfort, eye strain and increase the risk of infection Ensure comfortable working temperatures, humidity, and good air quality. Allow additional breaks from screen-based work. Conduct DSE risk assessments. Psychological symptoms, for example: Depression Anxiety Panic Attacks Mood changes Loss of confidence Excessive workloads, unsupportive management and colleagues, perceived stigma around the menopause, bullying and harassment and any form of work-related stress may exacerbate symptoms. Stress can have wide ranging negative effects on mental and physical health and wellbeing. Performance and workplace relationships may be affected Conduct a stress risk assessment and address work related stress through implementation of the HSE’s management standards. Ensure that workers will not be penalised or suffer detriment if they require adjustments to workload, tasks, or performance management targets. Ensure that Managers and Line Managers understand the menopause and are prepared to discuss any concerns that employees may have in a supportive manner. Ensure Managers and Line Managers have a positive attitude and understand that they should offer adjustments to workload and tasks if needed. Allow flexible/home working where appropriate. Ensure that employees are trained in mental health awareness. Raise general awareness of issues around the menopause so colleagues are more likely to be supportive. Provide opportunities to network with colleagues experiencing similar issues (menopause action and support group). Ensure a quiet area/room is available. Provide access to counselling services. Psychological symptoms: Memory problems Difficulty concentrating Certain tasks may become more difficult to carry out temporarily for example learning new skills (may be compounded by lack of sleep and fatigue); performance may be affected; work-related stress may exacerbate these symptoms. Loss of confidence may result Conduct a stress risk assessment and address work related stress through implementation of the HSE’s management standards. Reassure workers that they will not be penalised or suffer detriment if they require adjustments to workload or performance management targets. Ensure that Managers and Line Managers understand the menopause and are prepared to discuss any concerns that employees may have in a supportive manner. Ensure Managers and Line Managers have a positive attitude and understand that they should offer adjustments to workload and tasks if needed. Reduce Page 51 of 220
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Menopause & Hormonal Changes Policy 20 demands if workload identified as an issue. Provide additional time to complete tasks if needed or consider substituting with alternative tasks. Offer and facilitate alternative methods of communicating tasks and planning of work to assist memory. Ensure a quiet area/room is available. Provide access to counselling services Page 52 of 220
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Menopause & Hormonal Changes Policy 21 Appendix 2 Glossary of Terms Definitions A full list of definitions regarding the distinct types of menopause and hormonal changes are listed in Section 9 of this policy. Hormonal Changes Hormonal imbalance happens when a person has too much or too little of one or more hormones within a person’s chemical balance. It is a broad term that can represent many different hormone-related conditions. Cisgender Denoting or relating to a person whose sense of personal identity and gender corresponds with their birth sex. Non-Binary A term that describes someone who does not identify exclusively as a man or a woman, or within a specific binary identity. The term can describe several different concepts, and people often use it interchangeably with terms such as agender, androgynous and genderqueer. Trans* Trans* is an umbrella term used to describe people whose gender is not the same as, or does not sit comfortably with, the sex they were assigned at birth. Page 53 of 220
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Appendix 3 This is a controlled document. The digital PDF file published on InsideNL is the control copy. Always access this document from the control location. When you open this document, your device may automatically download it. If it does, you should still open it from the control location in future. You can print this document, but a printed copy isn’t the control copy. Don’t save any digital copies of this document anywhere. This includes your device, USB flash drives, network drives, OneDrive, Teams/SharePoint, or any other digital storage device, system, service, or location. Acceptable Use of IT Policy Version 4.0, DD Month YYYY Page 54 of 220
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Acceptable Use of IT Policy v4.0 Document control Title Acceptable Use of IT Policy Governance group Policy and Strategy Committee Owner Katrina Hassell, Senior Information Risk Officer Contact hassellk@northlan.gov.uk Author Julie Irwine, Information Compliance Officer Contact irwinej@northlan.gov.uk Revision history Version Originator Review start date Revision description and record of change 4.0 Julie Irwine February 2022 Bi-annual review and plain English changes. 3.2 Rob Leitch June 2020 Updated link to home working guidance on MyNL. Document approvals Version Governance group Date approved Date approval to be requested (if document still in draft) 4.0 Finance and Resources Committee 22 November 2023 3.0 Finance and Resources Committee 3 June 2021 2.0 Finance and Resources Committee 11 June 2020 1.3 Policy and Resources Committee 21 June 2017 1.2 Policy and Resources Committee 16 September 2014 1.1 Policy and Resources Committee 14 March 2013 Consultation record (for most recent update) Consultation status Stakeholders consulted between 02 March 2023 and 10 May 2023. Stakeholders consulted and dates Business and Digital Management Team Corporate Communications Data Governance Board Data Management Team JNC for Teaching Staff Joint Trade Unions People Resources Technical Design Authority 21 March 2023 02 March 2023 29 March 2023 15 March 2023 30 March 2023 30 March 2023 15 March 2023 21 March 2023 Strategic alignment Plan for North Lanarkshire Improving the Council’s Resource Base – A Workforce Strategy that is built around the needs of the council (as a single resource base) to deliver the priority outcomes, ensuring future workforce requirements, new skills and innovative approaches, and succession planning are recognised. Digital and IT Strategy The Digital and IT Strategy brings together separate but related plans and policies that contribute to the development and delivery of our digital vision. The Acceptable Use of IT Policy is one of these. It supports the strategy by providing a safe framework for using IT assets without exposing the council or our IT users to risks. Next review date Review Date Page 55 of 220
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Acceptable Use of IT Policy v4.0 Contents 1. Introduction ...................................................................................................................................... 1 2. Purpose ............................................................................................................................................. 1 3. Scope and exclusions ...................................................................................................................... 1 4. Governance ....................................................................................................................................... 2 5. Policy compliance............................................................................................................................. 2 6. Acceptable use of IT assets ............................................................................................................. 3 6.1. IT authentication (password) and secure access .............................................................. 3 6.2. Protecting digital information .............................................................................................. 3 6.3. Managing digital information ............................................................................................... 4 6.4. Appropriate use of IT assets................................................................................................. 4 6.5. Using email ............................................................................................................................. 5 6.6. Using collaboration platforms ............................................................................................. 5 6.7. Using social media ................................................................................................................. 6 6.8. Personal use of council IT assets ......................................................................................... 6 6.9. Using personal devices, software and cloud accounts .................................................... 7 6.10. Reporting information security incidents........................................................................... 7 7. Monitoring......................................................................................................................................... 8 7.1. Monitoring activities and privacy ......................................................................................... 8 7.2. Types of monitoring .............................................................................................................. 8 7.3. Identifying and investigating potential misuse.................................................................. 9 8. Product set ........................................................................................................................................ 9 A note about plain English This document follows plain English guidance, in line with our corporate commitment to clear communications. In particular, it uses the following terms. ‘We’, ‘us’ and ‘our’ when referring to the council (as an organisation), our collective responsibilities (as authorised users of council IT assets), and when discussing specific activities. ‘You’ and ‘your’ when referring to the individual responsibilities and actions of authorised users of council IT assets. Page 56 of 220
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Acceptable Use of IT Policy v4.0 1 1. Introduction We use information technology (IT) to deliver our services, carry out our statutory duties, and support our internal business functions. It’s critical in helping us work flexibly and efficiently. This policy informs our IT users on how to use IT assets appropriately. We use the following three types of IT assets – see the Acceptable Use of IT Guidance for examples of each. 1. Computing devices (both business and personal) we use in council facilities and remotely to access information and do our jobs. 2. IT systems and services, both hosted within our own network and cloud-based, that we use to process and store information and deliver services. 3. Network infrastructure and services we use to access, store, manage and protect our systems. The council owns all information stored on council assets. 2. Purpose This Acceptable Use of IT Policy provides a safe framework for using IT assets without exposing the council or our IT users to risks. It is a control factor for the Information Security and Governance corporate risk and aligns with the following. Digital and IT Strategy – this brings together separate but related plans and policies – including this one – that contribute to our digital vision. Information governance policies – Data Protection, Information Security, Payment Card Data Security, Records and Information Management – that keep our IT assets safe and operational, and maintain the confidentiality, integrity and availability of our information. Codes of conduct that set out mandatory standards for Councillors and Employees. Related legislation. 3. Scope and exclusions In scope: This policy applies to our employees, councillors, contractors, consultants, third party service providers, temporary agency staff, modern apprentices, students, volunteers, and anyone else authorised to access or use our IT assets. Exclusions: There are separate policies for the schools’ network and public use of IT resources and the internet in libraries. Page 57 of 220
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Acceptable Use of IT Policy v4.0 2 4. Governance The Finance and Resources Committee has approval authority for, and oversight of, this policy. The Data Management Team then the Data Governance Board – as key stakeholders – oversee its review and consider its contents before referring it on for approval. The Chief Officer of Business and Digital – as the council’s Senior Information Risk Owner – is accountable for its governance. The Information Security and Risk team is responsible for the following activities. 1. Produce, publish and promote this policy. a. Write it in a way that’s easy to read and understand. b. Consult with relevant stakeholders on its content and implications. c. Make sure all users can access it. 2. Give guidance on how to apply and comply with this policy through standards, procedures and guidance notes – see product set for list and links. 3. Review and report on this policy. a. Review every two years, with other reviews when needed. For example, following a critical security incident, new legislation, a significant threat, an audit action. b. Report to management teams, governance and working groups, committees and scrutiny panels. 5. Policy compliance By using our IT assets, every user is agreeing to comply with this policy, and all policies, standards, procedures, and guidance it references. This includes following the acceptable use principles below, understanding that we monitor usage of all our IT assets, and consenting to this monitoring. Due to the importance of this policy and as a consistent reminder, our computers and laptops display an Acceptable Use of IT Policy statement that users must accept before they can log in to their device. We only use council managed devices to access council systems and conduct council business – subject to limited exceptions. We investigate any suspected breach of this policy, under the Discipline Policy and any other relevant policies. We refer any suspected unlawful acts to the appropriate authorities. This includes the police, and professional and regulatory bodies. Page 58 of 220
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Acceptable Use of IT Policy v4.0 3 6. Acceptable use of IT assets All users of our IT assets must: comply with this policy, in line with the acceptable use of IT principles below; and fulfil their role in assuring the security and integrity of council information and IT assets, as outlined in the user responsibilities below. Acceptable use of IT principles 1. IT authentication (password) and secure access 2. Protecting digital information 3. Managing digital information 4. Appropriate use of IT assets 5. Using email 6. Using collaboration platforms 7. Using social media 8. Personal use of council IT assets 9. Using personal devices, software and cloud accounts 10. Reporting information security incidents The user responsibilities for the acceptable use of IT assets – summarised below and detailed in the Acceptable Use of IT Guidance – instruct users on how to confidently and securely access and use council devices and information. The Information Security and Risk team can help with questions about this policy and associated guidance: Page 59 of 220
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Acceptable Use of IT Policy v4.0 4 User responsibilities for protecting digital information b. Never work on sensitive information where unauthorised people can see or hear it. c. Only print paper copies if there’s a business reason for not sharing digitally. d. Only use dictation and read aloud assistive technology in a secure location. e. Don’t access information unless you have a valid business reason to do so. f. Follow procedures for data protection subject access and freedom of information requests. g. Only give out information when authorised, it’s appropriate to do so, and the recipient’s identity is verified, where needed. h. Lock your device whenever you leave it for a short while but are still using it: Windows logo key +L. i. Log out of your device and close it down when you’re no longer using it. 6.3. Managing digital information User responsibilities for managing digital information 1. Make sure all information you create, use, process, store, share and dispose of is in line with business need and complies with our information governance policies. 2. Follow the rules set out in the Information Classification and Handling Standard and Information Classification and Handling Guidance. 3. See the Records Retention Schedule to decide how long to keep information and how to dispose of it. 4. Know where to store and publish digital information. This includes shared and personal storage areas, network drives, business systems, other file sharing platforms, internal communications platforms, and our websites. 6.4. Appropriate use of IT assets User responsibilities for the appropriate use of IT assets 1. Technical and systems administrators must have prior authorisation to give access to the systems and services they manage, in line with access control and code of connection procedures. 2. Use access rights appropriately – in line with job roles and responsibilities. 3. Stay safe online when using search engines, visiting websites and other internet-based services. The Get Safe Online website – a Cyber Scotland partner – provides advice. 4. Never create, store, view, download, or share (links and attachments) inappropriate content that do any of the following. a. Use unacceptable language. b. Insult, target or discriminate against people with protected characteristics. c. Could be interpreted as politically motivated, bullying, abusive, offensive, or illegal. d. Contain images, videos or written materials that are sexually explicit or exploitative, or promote discrimination, hate, violence, extremism or terrorism. Page 60 of 220
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Acceptable Use of IT Policy v4.0 5 User responsibilities for the appropriate use of IT assets e. Send or post unsolicited or fraudulent messages. This includes spam, phishing and assumed identity. f. Infringe copyright online, while acting on behalf of the council. g. Operate or promote any private businesses or commercial ventures. 5. If a user accidently breaks any of these rules, they must tell their manager straight away, and – if necessary – log an incident on the IT self-service portal. 6. Understand that we investigate all suspected inappropriate activity. 6.5. Using email User responsibilities for using email 1. Never use email or any other digital messaging facility to send or share inappropriate content or communications, as described in section 6.4 above. 2. Users must use the council email system for work-related activities. a. Use individual council email accounts for work and organisational activities. b. Use shared email accounts – where appropriate – to collectively manage team-level communications. 3. Users must not do any of the following. a. Send work related email or information to their own personal email address. b. Send work related email or information to any other personal or external email addresses – except when in line with points 2f and 2g of the protecting digital information guidance in section 6.2 above. c. Use a council email address to send or receive personal messages - except in emergencies as detailed in section 6.8 below. d. Use a non-council email address to send or receive work related messages – subject to authorised exceptions relating to third party users and IT system notifications. e. Edit the content of a third party’s message, unless authorised to do so. 4. Be vigilant! Malicious email – including scam and phishing attempts – is our biggest IT security threat. Follow email security guidance on spotting and reporting suspicious email. Users must phone the IT Service Desk straight away if they have opened an attachment or clicked on a link in a suspicious email. See reporting information security incidents in section 6.10 below for more details. 5. Read the Records Retention Schedule for information on retaining and disposing of email and Information Classification and Handling Guidance for rules on sharing email messages. 6.6. Using collaboration platforms User responsibilities for using collaboration platforms 1. We use Microsoft Teams and SharePoint to communicate, collaborate, chat, meet, share and store files, and access other IT products. Page 61 of 220
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Acceptable Use of IT Policy v4.0 6 User responsibilities for using collaboration platforms 2. Only access our collaboration platforms from council devices. Don’t use personal devices. 3. Don’t store personal files and media or copyrighted materials on our storage facilities. 4. Users can join collaborative sessions hosted by other organisations on other approved browser-based platforms. 5. Read the Information Classification and Handling Guidance for information on storing and posting content on collaboration platforms, and the Records Retention Schedule for guidance on retaining and disposing of it. 6.7. Using social media User responsibilities for using social media 1. Corporate Communications is responsible for our Corporate Communications Strategy and the supporting Guidance for using social media for work purposes. 2. The council owns all social media accounts that communicate and conduct business on its behalf. 3. The Corporate Communications team has authority over every council social media account – as detailed in and subject to the exceptions in the social media guidance note. 4. Owners and publishers of council social media accounts must only use council devices, follow the social media guidance, and never publish or share inappropriate content or communications as described in section 6.4 above. 5. All users with access to Viva Engage (also known as Yammer) – our private, internal social network – can post informal communications and comments. See user guidance. 6. See the Information Classification and Handling Guidance for rules on posting information on our social networking sites. 7. Read the Employee Code of Conduct for guidance on personal use of social media and your rights and responsibilities relating to expressing personal views about the council, maintaining confidentiality, and professional and ethical conduct. 6.8. Personal use of council IT assets User responsibilities for personal use of council IT assets 1. Council IT assets are primarily for business use, but we do allow appropriate personal use. For example: a. using council devices and systems to send or receive personal email messages or phone calls in an emergency, and b. general web browsing during breaks and lunch. 2. Users who choose to make use of this privilege, must follow these rules. a. Comply with all relevant council policies, including this one. b. Don’t use council IT assets for private business or commercial ventures. Page 62 of 220
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Acceptable Use of IT Policy v4.0 7 User responsibilities for personal use of council IT assets c. Don’t do it during work time. d. It must not interfere with normal business or negatively impact productivity. e. Don’t store personal files on any of our storage facilities. f. Understand that: we own all information stored on council IT assets – both business and personal; all personal use is subject to the same monitoring activities as business use; users are personally accountable for what they do with council IT assets, including online activity; and if a user abuses this privilege, we reserve the right to withdraw it, and will investigate their activity if we suspect potential misuse. 6.9. Using personal devices, software and cloud accounts User responsibilities for using personal devices, software and cloud accounts 1. We don’t allow personal devices access to the council network, or any systems or services hosted there. We also don’t generally allow personal devices access to our cloud hosted systems and services. However, there are exceptions to this. a. iTrent – staff can only manage their own mySelf personal records. b. Viva Engage – to allow staff to read and contribute to conversations. c. Public facing websites – users can view content on council websites. d. Social media platforms – viewing content on platforms where we have a presence. Users must not use a personal device when using social media for work purposes. e. Microsoft Authenticator – a free app users install on their personal device to authenticate onto the council network and M365 when working remotely. 2. Users must not use software, systems or services they have personally licensed, purchased, registered an account with, or subscribed to, for work purposes. This includes software on personal devices, and cloud-hosted systems and services accessed from any device. 3. We generally allow personal mobile devices in shared workplaces. a. For courtesy and privacy reasons, users should set sound mode to low volume and or vibrate and take calls where they won’t be overheard. b. In some work settings users may not be allowed to use personal mobile devices, have them visible or even on their person for privacy or health and safety reasons. Line managers can give more guidance on this. 6.10. Reporting information security incidents User responsibilities for reporting information security incidents 1. We must report information security incidents straight away to the Service Desk and or Data Protection Team and to line managers if: a. someone has logged on to a device or system using another person’s details; Page 63 of 220
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Acceptable Use of IT Policy v4.0 8 User responsibilities for reporting information security incidents b. a device is lost or stolen; and or c. there may be a system or data breach. 2. There may be other reporting requirements, depending on the type of incident. 3. For full details see the Information Security Incident Management Procedure and the Data Protection Breach and Incident Management Protocol. 7. Monitoring 7.1. Monitoring activities and privacy We carry out a range monitoring activities of our IT assets for compliance, security, operational, performance, and maintenance purposes. A note on respecting individual privacy. This policy aims to strike a balance between the following. 1. Respect for an individual’s privacy in accordance with the → Data Protection Act 2018, and → Human Rights Act 1998. 2. Our monitoring and scanning obligations under the → Regulation of Investigatory Powers Act 2000, and → Telecommunications (Lawful Business Practice) (Interception of Communications) Regulations 2000 Users can’t presume privacy when using council IT assets for business or personal reasons. By using our IT assets and agreeing to comply with this policy, they are consenting to our monitoring procedures. We: collect and record usage data to make sure our IT assets work correctly and securely; monitor information entering, leaving, or stored on our IT assets; and don’t routinely monitor individuals but may access personal information as part of our monitoring activities. 7.2. Types of monitoring There are two types of monitoring. 1. Usage logging: This is a standard data collection activity data – generally in system event logs. It does not log content, only information about user activity. We restrict and control access to logging information, as per the Access Control Standard. 2. Content inspection: That is, viewing the actual digital data, information and records within files and IT systems – both business and personal – that users create, modify, access, view and receive. Page 64 of 220
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Acceptable Use of IT Policy v4.0 9 7.3. Identifying and investigating potential misuse We reserve the right to monitor individual usage – under strict controls – to help identify and investigate potential prohibited use or misuse in breach of this policy and codes of conduct. Managers must have prior formal approval before they can access this information. See Discipline Policy and Discipline Policy Guidance Note for more information. Level 1 investigation: Inspecting user logs – to determine if there has been a breach; and or we have cause to investigate further. Formal approval authority → A Chief Officer must approve requests for employees within their service. → The Depute Chief Executive must approve requests for Chief Officers in Adult Health and Social Care, Education and Families, and Enterprise and Communities. → The Chief Executive must approve requests for Chief Executive’s Chief Officers, Depute Chief Executive or Councillors. → The Leader of the Council must approve request for the Chief Executive. Level 2 investigation: Inspecting content – where there is a need to investigate more thoroughly than inspecting user logs alone. For example, where we believe there is or has been a breach of this policy, to comply with the request of law enforcement officers, or where we believe an employee is or has been in breach of their employment contract Where an officer authorises a content inspection request, they must advise the following people before it starts and when it’s finished. 1. The Chief Executive or the Leader of the Council – as per the formal approval authority. 2. The individual concerned. However, there may be situations where we can’t inform them. For example, where there is reason to believe that this would prejudice or compromise an investigation. 8. Product set The table below lists documents in the acceptable use of IT product set and other related products. This may include links to other file types, websites and IT systems. → Those listed under policies, standards, procedures and guidance are the responsibility of the Information Security and Risk team. → Those listed under related products are the responsibility of other teams, services or agencies. Product type Product Policies Information Security Policy Payment Card Data Security Policy Standards Access Control Standard Information Classification and Handling Standard Page 65 of 220
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Acceptable Use of IT Policy v4.0 10 Product type Product Procedures Access control procedures Code of Connection procedures Information Security Incident Management Procedure Guidance Acceptable Use of IT Guidance Email security guidance IT Authentication (Password) and Secure Access User Guidance Information Classification and Handling Guidance Information Security and Risk on Viva Engage (aka Yammer) Related products Corporate Communication Strategy Cyber Scotland Data Protection Breach and Incident Management Protocol Data Protection Policy Data protection subject access requests Digital and IT Strategy Discipline Policy and Discipline Policy Guidance Note Employee Code of Conduct Freedom of information requests Get Safe Online Guidance on the use of social media for work purposes IT self-service portal Public use of IT resources and the internet in libraries Records and Information Management Policy Records Retention Schedule Schools’ policy documents on Glow Legislation, regulations, and government guidance Computer Misuse Act 1990 Copyright information: GOV.UK Councillors’ Code of Conduct Discrimination: your rights: GOV.UK Data Protection Act 2018 Ethical Standards in Public Life etc. (Scotland) Act 2000 Freedom of Information (Scotland) Act 2002 Human Rights Act 1998 Investigatory Powers (Interception by Businesses etc. for Monitoring and Record-keeping purposes) Regulations 2018 Public Records (Scotland) Act 2011 Regulation of Investigatory Powers Act 2000 Telecommunications (Lawful Business Practice) (Interception of Communications) Regulations 2000 The Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020 Page 66 of 220
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref NM/EH Date 22/11/23 Annual Freedom of Information Report Financial Year 2022/2023 From Archie Aitken, Chief Officer (Legal and Democratic) E-mail aitkena@northlan.gov.uk Telephone 07939 280102 Executive Summary This report provides details of Freedom of Information (FOI) and Environmental Information (EIR) requests received by the Council during 2022/23 and provides further comparative and ancillary information. Recommendations It is recommended that the Finance and Resources Committee: (1) Review the contents of the report. The Plan for North Lanarkshire Priority Enhance participation, capacity, and empowerment across our communities Ambition statement (20) Improve the involvement of communities in the decisions, and development of services and supports, that affect them Programme of Work Statutory / corporate / service requirement Item 4 Page 67 of 220
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1. Background 1.1 The Freedom of Information (Scotland) Act 2002 and the Environmental Information (Scotland) Regulations 2004, provide rights to the public to ask for and be provided with recorded information held by public authorities. By way of further explanation, the Environmental Information (Scotland) Regulations 2004, sit alongside the FOI legislation and govern access to environmental information such as planning matters. contaminated land, emissions etc. Once a FOI or EIR request is received, the Council has in most cases, 20 working days to provide the information asked for, or explain why it cannot be provided. If the Council does not respond, or the requester is unhappy with the response, the requester can ask for an internal review. If the requester is still dissatisfied following the internal review they can then appeal to the Scottish Information Commissioner. This report provides a breakdown of the requests, internal reviews and appeals to the Scottish Information Commissioner processed by the Council in 2022/23. 2. Report 2.1 In financial year 2022/23 the Council received 1,611 requests for information. This consisted of 1,328 FOI requests and 283 EIR requests. 2.2 The 2022/23 request total is a 14% increase on the 2021/22 total of 1,412 and is the highest number of requests received since the 2018/19 total of 1,652 requests. As outlined in previous reports the Covid pandemic led to a reduction in the typical volume of requests received by the Council and request volumes are now back to pre-pandemic levels. 2.3 Against this background of increasing request numbers, it should be noted that 2022/23 saw the launch of two consultations on proposals to reform FOI law in Scotland. One was a Private Members Bill consultation by Katy Clark MSP and the other a Scottish Government consultation. The Scottish Government issued an analysis of responses to their consultation in June 2023. It is anticipated that Katy Clark MSP will publish shortly, proposals for a Freedom of Information Reform (Scotland) Bill alongside a summary of consultation responses. Both consultations considered proposals to extend the scope of Freedom of Information to include other bodies that provide public services but, unlike local authorities, are not currently subject to FOI legislation. The consultations also sought views on other proposed legislative changes to improve the operation of FOI in Scotland. Any changes to the FOI legislation following these consultations will be reported to future meetings of the Finance and Resources Committee. 2.4 As in previous years, most FOI and EIR requests were recorded as being received from "Public and Other" (39%) which are requests from members of the public and requests that have no identifiable affiliation to a particular organisation, group or company. The next largest category of requests was those received from elected representatives ie. Councillors, MPs, MSPs and parliamentary researchers acting on their behalf (17%). 15% of requests were from businesses and commercial enterprises, 14% came from the media and 6% came from solicitors acting on behalf of a client. Compared to previous years, the 2022/23 figures demonstrate an increase in the proportion of requests received from elected representatives and the media and a decline in the proportion received by businesses and commercial enterprises and solicitors. 2.5 In 2022/23, 22 requests for internal review of the original decision were received. Despite the increase in requests this year, this total is less than the 25 requests for review received in 2021/22. Page 68 of 220
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2.6 Of the 22 internal reviews, in 16 cases the original decision was either wholly or partially upheld or deemed compliant. In 4 cases the original decision was overturned and received a fresh decision at review. 2 reviews were undertaken because there was no response to the original request. 2.7 One request received in 2022/23 was appealed by the requester to the Scottish Information Commissioner. This appeal was withdrawn by the requester during the appeal process. One case from 2021/22 that had been appealed was deemed by the Commissioner's Office to have been abandoned by the requester in 2022/23 and was closed. 2.8 Of the 1,611 requests received in 2022/23, 22 were not fully progressed due to factors such as clarification required to progress the request not being received or the requester withdrawing their request. Of the remaining 1,589 requests that were fully progressed, 1,569 (98.7%) were responded to within the statutory 20 working day deadline. This compares with a compliance rate of 98.5% in 2021/22 and 95.3% in 2020/21. The 2022/23 compliance rate broken down by quarter is as follows:- Quarter 1 - 98.4% Quarter 2 - 99.1% Quarter 3 - 98.4% Quarter 4 - 99% 3. Measures of success 3.1 The Scottish Information Commissioner's self-assessment toolkit for public authorities on responding to requests on time considers a response rate to requests of 96-100% as excellent, 85-95% as good, 80-84% as adequate and less than 80% as unsatisfactory. 4. Supporting documentation Appendix 1 Total number of requests received under either the Freedom of Information (Scotland) Act 2002 or the Environmental Information (Scotland) Regulations 2004 broken down by month. Appendix 2 An indication of the category of applicant. Appendix 3 Details of cases submitted for internal review. Archie Aitken Chief Officer (Legal and Democratic) Page 69 of 220
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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? 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 ☐ Page 70 of 220
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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? 5.10 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 ☐ Page 71 of 220
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NORTH LANARKSHIRE COUNCIL Appendix 1 REQUESTS RECEIVED UNDER THE FREEDOM OF INFORMATION (SCOTLAND) ACT 2002/ENVIRONMENTAL INFORMATION (SCOTLAND) REGULATIONS 2004 Applications Received 2022/2023 Month Ending 31 March 2023 Apr May Jun Jul Aug Sep Oct Nov Dec 2022 Jan 2023 Feb Mar Total FOI Requests 107 118 98 93 112 91 104 144 84 130 127 120 1328 EIR Requests 22 19 18 17 21 20 24 18 9 38 48 29 283 TOTAL – 2022/2023 129 137 116 110 133 111 128 162 93 168 175 149 1611 Applications Received 2011/2012 – 2021/2022 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total TOTAL – 2021/2022 91 138 131 121 120 105 129 166 67 107 121 116 1412 TOTAL – 2020/2021 66 74 117 143 107 108 107 154 90 86 102 91 1245 TOTAL – 2019/2020 146 141 126 150 138 116 127 146 83 138 131 94 1536 TOTAL – 2018/2019 125 109 132 154 133 138 170 143 91 195 125 137 1652 TOTAL – 2017/2018 111 101 122 128 145 92 163 167 79 137 155 134 1534 TOTAL – 2016/2017 119 127 105 128 113 120 110 142 99 148 131 151 1493 TOTAL – 2015/2016 111 94 124 109 102 107 133 127 58 119 135 126 1345 TOTAL – 2014/2015 117 112 93 150 120 91 125 113 93 145 103 126 1388 TOTAL – 2013/2014 86 87 88 125 97 79 91 77 71 159 101 108 1169 TOTAL – 2012/2013 84 96 85 114 86 89 167 113 74 124 105 103 1240 TOTAL – 2011/2012 66 75 100 127 89 96 98 107 79 132 139 118 1226 Page 72 of 220
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FREEDOM OF INFORMATION (SCOTLAND) ACT 2002 Appendix 2 ENVIRONMENTAL INFORMATION (SCOTLAND) REGULATIONS 2004 Requests by type of Requestor - 2022/2023 Media Solicitor (on behalf of client) Commercial /Private Enterprise Voluntary / Campaign Organisation Elected Representative (MP, MSP, MEP, Councillor) Trade Union Academic / Student Public & Other Total April 16 10 19 8 11 4 6 55 129 May 22 12 18 9 15 3 2 56 137 June 21 5 18 12 16 1 3 40 116 July 11 8 19 6 14 0 2 50 110 August 17 10 30 6 21 0 1 48 133 September 14 7 13 7 21 1 2 46 111 October 14 10 25 6 36 1 0 36 128 November 35 3 21 6 38 0 0 59 162 Dec – 22 8 6 10 9 18 0 4 38 93 Jan – 23 21 6 43 6 33 1 5 53 168 February 22 10 19 7 34 2 1 80 175 March 16 10 12 11 20 4 3 73 149 Total 217 97 247 93 277 17 29 634 1611 Page 73 of 220
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Requests by type of Requestor - 2014/2015 – 2021/2022 Media Solicitor (on behalf of client) Commercial /Private Enterprise Voluntary / Campaign Organisation Elected Representative (MP, MSP, MEP, Councillor) Trade Union Academic / Student Public & Other Total 2021/2022 169 117 246 79 138 15 35 613 1412 2020/2021 119 143 212 62 165 8 19 517 1245 2019/2020 277 110 278 75 149 29 42 576 1536 2018/2019 334 137 277 93 147 34 27 603 1652 2017/2018 260 131 268 86 192 36 25 536 1534 2016/2017 227 181 223 68 187 24 19 564 1493 2015/2016 217 193 192 54 168 14 19 488 1345 2014/2015 264 164 211 56 115 17 28 533 1388 Page 74 of 220
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Appendix 3 Freedom Of Information (Scotland) Act 2002 Environmental Information (Scotland) Regulations 2004 2022/23 - Requests for Review of Original Decision. Received Expiry Response Subject Decision 01/06/2022 01/07/2022 01/07/2022 Chryston Consultation Overturned 14/06/2022 12/07/2022 08/07/2022 Self-Directed Support 1st time decision 23/06/2022 21/07/2022 21/07/2022 Community Alarms Upheld (Wholly) 23/06/2022 21/07/2022 21/07/2022 Housing Notice Compliant with EIR 24/08/2022 22/09/2022 21/09/2022 Gullies Compliant with EIR 29/09/2022 27/10/2022 27/10/2022 Performance Management Upheld (Partial) 27/10/2022 25/11/2022 25/11/2022 Insurance Upheld (Wholly) 28/10/2022 28/11/2022 28/11/2022 Hornock Road, Coatbridge Compliant with EIR 27/10/2022 24/11/2022 24/11/2022 Award of a Contract 1st time decision 01/12/2022 04/01/2023 04/01/2023 Damage to a Wall Non-Compliant with EIR 28/11/2022 29/12/2022 22/12/2022 Deferred entry to P1 Upheld (Partial) 03/12/2022 05/01/2023 05/01/2023 School pupils Upheld (Wholly) 03/12/2022 05/01/2023 05/01/2023 School pupils Upheld (Wholly) 03/12/2022 05/01/2023 05/01/2023 School pupils Upheld (Wholly) 03/12/2022 05/01/2023 05/01/2023 School pupils Upheld (Wholly) 03/12/2022 05/01/2023 05/01/2023 School pupils Upheld (Wholly) 03/12/2022 05/01/2023 05/01/2023 School pupils Upheld (Wholly) 08/12/2022 11/01/2023 11/01/2023 Hornock Road, Coatbridge Compliant with EIR 13/01/2023 10/02/2023 10/02/2023 Council Staff Upheld (Wholly) 16/01/2023 13/02/2023 14/02/2023 Council Tax Records Upheld (Partial) 31/01/2023 28/02/2023 28/02/2023 Education provisions in Shotts Overturned 03/04/2023 3/05/2023 31/05/2023 Community Benefit Fund Overturned Page 75 of 220
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref AR/EH Date 22/11/23 Local Public Holidays for Factories and Businesses 2023 From Archie Aitken, Chief Officer (Legal and Democratic) E-mail RoseAn@northlan.gov.uk Telephone 07951 409714 1. Background 1.1 The Council requires to determine, annually, the dates to be set for local public holidays for factories and businesses. 2. Report 2.1 It is proposed that local public holidays for factories and businesses in 2024 be as follows:- Monday, 1 and Tuesday, 2 January 2024 Friday, 29 March 2024 Monday, 1 April 2024 Monday, 30 September 2024 Wednesday, 25 and Thursday, 26 December 2024 Executive Summary The purpose of the report is to submit for consideration local public holidays in calendar year 2024 for factories and businesses in North Lanarkshire. Recommendations It is recommended that the The Committee is asked to agree local public holidays in calendar year 2024 for factories and businesses in North Lanarkshire. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (15) Encourage the health and wellbeing of people through a range of social, cultural, and leisure activities Programme of Work Statutory / corporate / service requirement Item 5 Page 77 of 220
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3. Measures of success 3.1 Confirmation of local public holidays for factories and businesses in North Lanarkshire. 4. Supporting documentation N/A Archie Aitken Chief Officer (Legal and Democratic) Page 78 of 220
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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? 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 ☐ 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 79 of 220
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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. 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 ☐ Page 80 of 220
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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 23/11/23 2023 Review of Financial Regulations and Scheme of Financial Delegation From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 07939 280601 Executive Summary This report provides Committee with the outcome of the annual review of the Financial Regulations and Scheme of Financial Delegation. Full consideration continues to be given to the collective responsibility for the long-term financial sustainability of the Council and how the Council’s financial governance arrangements including the Financial Regulations and Scheme of Financial Delegation can further support this. A number of minor amendments have been made, which are summarised at Appendix 1, with a full amended version of the documents provided at appendix 2 and 3. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the revisions made to the Council’s Financial Regulations and Scheme of Financial Delegation. The Plan for North Lanarkshire Priority All priorities Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning Programme of Work Statutory / corporate / service requirement Item 6 Page 81 of 220
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1. Background 1.1. This report advises Committee of the outcome of the annual review of the Council’s Financial Regulations and Scheme of Financial Delegation, noting the main amendments. 2. Report 2.1. The annual review ensures that both the Financial Regulations and Scheme of Financial Delegation remain appropriate for the effective stewardship of the Council’s financial resources. 2.2. A number of minor amendments were made to the Financial Regulations and the Scheme of Financial Delegation which are summarised within appendix 1. 3. Measures of success 3.1. The Council continues to operate within approved budgeted resources. 4. Supporting documentation Elaine Kemp Chief Officer (Finance) Appendix 1 2023 Financial Regulations and Scheme of Financial Delegation Amendments Appendix 2 Financial Regulations Appendix 3 Scheme of Financial Delegation Page 82 of 220
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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? 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 ☐ Page 83 of 220
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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? 5.10 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 ☐ Page 84 of 220
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Appendix 1 2023 Financial Regulations Rationale Section Section Various Financial Solutions Various Finance To reflect most recent service name Various Various Job titles Various Chief Officer (as appropriate) To reflect most recent titles Various Chief Executive/ Chief Officer/ Head of Service Various Chief Officers Simplify and encompass all titles under Chief Officers Various Various Committees Various New Committees To reflect most recent committee names No reference 14.10 Certification of urgent payments To include certification process 2023 Scheme of Financial Delegation Rationale Section Section Various Financial Solutions Various Finance To reflect most recent service name Various Head of Financial Solutions Various Chief Officer (Finance) To reflect most recent title 2022 Financial Regulations 2022 Scheme of Financial Delegation Page 85 of 220
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Appendix 2 NORTH LANARKSHIRE COUNCIL FINANCIAL REGULATIONS APPROVED – 23 May 2018 Updated May 2019 Updated November 2020 Updated November 2021 Updated November 2022 Updated November 2023 Page 86 of 220
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NORTH LANARKSHIRE COUNCIL FINANCIAL REGULATIONS INDEX Section Topic Page 1 Introduction 2 2 Responsibilities 2 3 Definitions 3 4 Responsibility for Financial Administration 5 5 Policies and Strategies 7 6 Capital Expenditure 8 7 Revenue Expenditure 10 8 Budgetary Control 11 9 Legality of Expenditure 13 10 Income 13 11 Treasury Management 14 12 Banking 15 13 Payroll 15 14 Payment of Creditors 16 15 Contracts 19 16 Security 20 17 Stores and Inventories 20 18 Insurance 21 19 Accounting Procedures 22 20 Cash Advances – General and Imprest 23 21 Audit 24 22 Members’ Remuneration and Expenses 24 23 Financial Regulations 25 Page 87 of 220
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1. INTRODUCTION 1.1 Financial Regulations are an integral part of the Council’s framework of internal financial controls, which are designed to ensure the effective stewardship of North Lanarkshire Council funds. Compliance with these regulations will ensure that public money is safeguarded and properly accounted for, and all Council financial transactions undertaken in a manner which demonstrates openness, transparency and integrity. 1.2 The Financial Regulations forms a key part of the overarching Financial Strategy and the corporate governance arrangements of the Council. 1.3 Any breach or non-compliance with these Regulations must be reported immediately to the Chief Officer (Finance) who may consult the Chief Executive and/or the appropriate Service Chief Officer in order to determine the proper action to be taken. Failure to comply with the Financial Regulations may result in an investigation and disciplinary action under the Council’s Discipline Policy 2. RESPONSIBILITIES 2.1 Financial Regulations are the responsibility of all Council employees and should be distributed annually by the Chief Executive, Chief Officers and the Chief Officer (Finance), highlighting the importance of complying with the regulations and the Council’s proper financial management. It is the responsibility of each Chief Officer to ensure all staff have read and understood the Financial Regulations. 2.2 In addition, Chief Officers have a responsibility to consult with the Section 95 officer on any matter affecting their Service which is liable to materially impact the finances of the Council before making any commitment. In fulfilling this responsibility, Chief Officers must consider spending within the context of the Council’s overall financial position. Appropriate mutual discussions and collective decisions at Corporate Management Team (CMT) level are required to manage the overall financial stewardship of the organisation, and should not focus on an individual Service, Division or Function’s financial requirements. 2.3 All officers employed by the Council must ensure that all financial transactions are Intra Vires and in line with these regulations. 2.4 Adult Health and Social Care – as a result of the Health and Social Care Integration legislation which came into force on the 1st April 2016, the Council is jointly responsible with the NHS for the Adult Health and Social Care of service users within North Lanarkshire. The legislation saw the creation of the North Lanarkshire Integration Joint Board (IJB), responsible for directing health and social care expenditure within the partnership area. North Lanarkshire Integrated Joint Board Members include North Lanarkshire councillors, senior officers in NHS Lanarkshire and stakeholder representatives from across the health and social care sector. As per the approved IJB Financial Regulations, the Council Section 95 Officer retains the duty to monitor and regulate the financial performance of the Council’s share of available Board resources. As such, the Section 95 Officer retains the right to comment and make recommendations to the Board on the suitability of the IJB’s Financial Regulations. 2.5 Priority will be given to the IJB’s Financial Regulations first and foremost however where a situation arises that is not covered within those regulations, employees/members shall refer to the Council’s Financial Regulations, or where required, obtain guidance from the Council’s Section 95 Officer to ensure proper financial management. 2.6 At the time of update, consultation is ongoing in respect of Social Care reforms over the implementation of recommendations made by the Independent Review of Adult Social Care and the establishment of a National Care Service. The impact arising from the outcome of the consultation exercise and any subsequent reforms implemented will be considered as Page 88 of 220
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part of future reviews of the Financial Regulations however until such time paragraph 2.5 remains relevant. 2.7 Arm’s Length External Organisations (ALEOs) are used as an alternative way of delivering vital council services. This delivery involves the use of public funds therefore the Council has a statutory duty to demonstrate openness, transparency and accountability regarding the monies spent through these Arms-length bodies. These financial regulations are not applicable to arms-length bodies, which are separate legal entities with responsibility for their own stewardship and governance arrangements. However, to enable the Council to satisfy its public accountability duties, services must adhere to the Corporate Guidance on Arms-length bodies, and must ensure all Council relationships with such bodies properly comply with the principles contained within the Code of Guidance on Following the Public Pound. It is expected that due cognisance is given to the Council’s approved Financial Regulations by respective ALEO Board/Management Teams, however it is their responsibility to ensure proper financial management and the development of appropriate Financial Regulations. The Section 95 Officer reserves the right to comment on the appropriateness of ALEO financial management and regulations to the respective Board/Management Team, as well as the Enterprise and Communities Committee. 2.8 Community Boards and Participatory Budgeting. A Framework for Working with Communities was approved by Policy and Strategy Committee in March 2020 which included the establishment of 9 Community Boards. It is intended that these boards will drive and support locality engagement and planning which will partly be achieved through optimising funding and resource opportunities to deliver and improve services in addition to supporting the development and implementation of Participatory Budgeting (PB). This will allow the community a voice in the decision making process of how money is spent. These financial regulations set out remain applicable in these arrangements. 2.9 Where potential ambiguity in the Financial Regulations arises, advice should be sought from the Council’s Section 95 Officer. The Chief Officer (Finance) will provide advice to ensure the aims of the guidance is met and that the Council is in full compliance with financial management requirements. 3. DEFINITIONS 3.1 The following expressions are used throughout the Regulations with the following meanings: 3.1.1 Chief Officer The Chief Executive, Deputy Chief Executive or Chief Officer, regardless of specific title. This includes the Chief Officer’s authorised substitute(s), except in cases where it is stated that substitutes may not act. A Chief Officer may have different authorised substitutes, depending on the topic. 3.1.2 As delegated Any grant of delegated powers by the Council to such persons as may be specified from time to time. 3.1.3 By the Section 95 Officer By the Section 95 Officer, or under arrangements made by/ or approved by the Section 95 Officer, a Chief Officer or an external agency. 3.1.4 Records All or any records, forms, books, documents, certificates, tickets or correspondence, whether on paper, on film, on computer file or any other medium. Page 89 of 220
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3.1.5 Authorised signatories A Chief Officer may authorise officers within his service to commit the Council to obtaining goods, services and other items in respect of which expenditure may competently be incurred. These officers are known as Authorised Signatories. The Section 95 Officer will require the Chief Officers to confirm their lists annually. The list shall include specimen signatures, and where appropriate, specimen initials, persons whose authorisation is applied by some means other than manuscript, and the manner of their personal authorisation, and also specify the items which each officer is authorised to sign, and the financial limit on any one item. Any proposed amendment of the list must be notified immediately to the Section 95 Officer. 3.1.6 Emergency An actual or potential emergency or disaster involving or likely to involve any or all of the following: i) Danger to life or health ii) Serious damage to or destruction of property iii) Major financial penalties. 3.1.7 Service In addition to each recognised Council Service, “Service” includes those limited companies or other organisations which are wholly owned or controlled by the Council, and which have adopted the Council’s financial regulations for their own use. 3.1.8 Capital Expenditure Expenditure on the acquisition, creation or enhancement of fixed assets, provided it yields benefit to the Council for more than one year (reference CIPFA/LASAAC Code of Practice on Local Authority Accounting and Scottish Government Finance Circular No. 3/2018). It is the responsibility of officers to ensure expenditure in the capital programme is ‘capital’ as per proper accounting practices required by the Local Government Scotland Act 2003. The Council has set a de-minimis, for materiality, whereby no individual item of less than £10,000 will be regarded as Capital. However due notice should be given to groups of items which fall below the de-minimis as a single unit but should collectively be capitalised i.e. laptop refresh programme. It should be noted that items above the de-minimis are not necessarily capital and officers should refer to relevant Finance staff for guidance. 3.1.9 Revenue Expenditure All expenditure which is not Capital. 3.1.10 Virement A transfer of money between budget headings. Authorisation levels are outlined in the Financial Regulations. Virements shall not be used to: • Mask overspend and underspend issues; • Apply underspends and over-recoveries of income without approval by the SCDG and Committee in line with authorisation levels; or • Reverse any decision made by the Council during its budget process unless subsequently approved by Council. 3.1.11 Contracts As defined within the General Contract Standing Orders (effective from 1 January 2020) Page 90 of 220
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3.1.12 Statutory Officer Officers designated for particular statutory purposes as set out in legislation: • Section 95 Officer, Chief Officer (Finance) • Chief Social Worker, Chief Social Work Officer (Children, Families, Justice and Integrated Practice); and • Monitoring Officer, Chief Officer (Legal and Democratic) 3.1.13 Recovery Plan Robust, affordable and sustainable plans to mitigate known financials burdens either, on a one-off or a recurring basis, presented to and agree by Corporate Management Team. 4. RESPONSIBILITY FOR FINANCIAL ADMINISTRATION 4.1 Council Ultimate authority over decision-making. 4.2 Finance and Resources Committee responsible for financial decision-making. 4.3 Enterprise and Fair Work Committee, Environment and Climate Change Committee, Housing Committee, Regulatory Committee, and Finance and Resources Committee Responsibility depending on service nature for the monitoring of specific ALEOs’ financial, service and operational performance including risk management and to ensure effective governance is in place within the ALEOs. 4.4 Section 95 Officer (Chief Officer (Finance)) To administer the financial affairs of the authority, as the proper officer for the purposes of Section 95 of the Local Government (Scotland) Act 1973, and in accordance with part 7 of the Local Government in Scotland Act 2003. To ensure the Council has put in place suitable arrangements to ensure compliance with the CIPFA Statement on the role of the Chief Financial Officer (CFO) in Local Government. To ensure the Council’s financial management arrangements are in line with the Council’s strategic policies, plans and objectives. To ensure all staff involved in financial management across the Council maintain professional accounting standards and comply with expected standards of conduct and integrity. To provide financial advice to the Council and its Committees, and monitor overall compliance with these Regulations. To obtain assurance regarding the financial governance arrangements of subsidiary companies, associate companies and partnerships which the Council is able to control or influence. Page 91 of 220
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4.5 Chief Officers To assist the Council and the Chief Executive at all times in achieving Best Value in the conduct of their service activities. Chief Officers are fully accountable for the financial performance of their service area, and must manage, monitor and control Service budgets in line with the Code of Practice on Local Authority Accounting and agreed timescales, ensuring compliance with Contract Standing Orders and Financial Regulations regarding their service activities. Except in an emergency, or as Delegated, to consult with the Section 95 Officer or relevant Business Finance Manager on any matter affecting their services which is liable to affect materially the finances of the Council before making any commitment, and before reporting thereon to a Committee. To maintain effective stewardship of their Services’ funds, ensuring that all financial transactions undertaken are within their powers. To ensure appropriate management of risks associated with the delivery of effective financial management inherent in providing their service activities. To ensure the relevant Business Finance Manager (or their assigned deputy) is part of the Service’s Senior Management Team (SMT) and provide them with the opportunity to attend all meetings. To liaise with the Chief Officer (Finance) or the nominated representative, regarding any appointments to or changes to the financial management establishment supporting their service activity. 4.6 Statutory Officers The Financial Regulations should be strictly adhered to ensuring all expenditure incurred is within approved budgets. These regulations still apply when making professional judgements while carrying out a role. However in the instance that a statutory officer’s judgement may lead to a breach in the Financial Regulations, the Section 95 Officer must be notified in the first instance and the level of breach reported to CMT thereafter with a Service Recovery plan to manage the additional spend. Page 92 of 220
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4.7 Partner Organisations Reflecting the nature of partnership arrangements and the drive towards Shared Services and possibly pooled budgets, elements of Council budgets may be delegated or shared with external organisations. Following approval from the Chief Officer (Finance), the Chief Executive or Chief Officer can delegate budget to an external organisation, providing the Section 95 Officer is satisfied that governance arrangements and responsibilities are clearly defined and that appropriate management controls regarding usage and monitoring of budget are in place. Chief Officers must ensure that all relevant staff are aware of and adhere to the Corporate Guidance on Arms-length, thereby ensuring the Council’s relationships with ALEOs comply with the principles contained within the Code of Guidance on Following the Public Pound. This responsibility includes ensuring that the Council is clear as to the purpose of any financial support provided, that the funding is used in a manner consistent with good governance principles and that the Council can demonstrate that the organisation’s achievements provide best value for that funding support. 4.8 All Officers and employees All officers employed by the Council, or by an organisation associated with the Council, whether or not their financial statements are consolidated in the Group Accounts of North Lanarkshire Council, must ensure that all financial transactions are Intra Vires and are in line with Financial Regulations. 5. POLICY AND STRATEGIES There are some areas that require more detailed guidance or procedures. Although the specific detail is not included within these Financial Regulations, the expectation is that officers and Elected Members adhere to the requirements of these additional documents. 5.1 Financial Strategy 5.1 Financial Strategy sets out the overarching framework for financial governance, planning and management. The aim is to ensure robust, affordable, sustainable and best value financial plans are developed to support decision making and prioritise the use of available resources. 5.2 Revenue Resources Budget Strategy The key principles of the Revenue Resources Budget Strategy were approved by Policy and Strategy Committee in June 2019 and have been subject to annual review. The strategy sets out the Council’s approach to budgeting and the identification of future saving ensuring the financial sustainability of the Council and the safeguarding of public funds. The strategy is underpinned by the financial regulations and its principles should be considered in conjunction with these where appropriate. Page 93 of 220
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5.3 Reserves Policy In January 2020, Policy and Strategy Committee approved the Council’s Reserves Policy which sets out the types of reserves held by the Council and their purpose; establishes procedures for governance of the reserves; outlines the circumstances for the utilisation of reserve balances; and outlines the approach taken to determine the appropriate reserve levels held by the Council. 5.4 Capital Strategy The Prudential Code for Capital Finance in Local Authorities and good financial management practice requires Councils to produce a Capital Strategy. The Capital Strategy ensures the Council takes capital expenditure and investment decisions in line with the Council’s priorities, service objectives and properly takes account of stewardship, value for money, prudence, sustainability and affordability. 5.5 Treasury Management Strategy The Treasury Management in the Public Services Code of Practice requires the Council to produce and report Treasury Management policies, practices and activities on a regular and ongoing basis. This encompasses the preparation and approval of an Annual Strategic Plan, which defines the arrangements for managing the Treasury Management function. The Strategy covers the Council’s debt and investment projections; expected movement in interest rates; borrowing and investment strategies; Treasury Management performance indicators; and sets specific limits for treasury management activities. 6. CAPITAL EXPENDITURE 6.1 Capital Programmes The Chief Officer (Finance) and the Chief Officer (Enterprise and Communities) will co-ordinate the Composite and Housing Capital Programmes respectively in accordance with any Government requirements as to timescale and the format, for presentation to the Policy and Strategy Committee, and Council thereafter for approval. 6.2 Capital Estimates Once the programmes are approved, and provided that ministers do not use the powers available to them under s36 of the Local Government in Scotland Act 2003 to control capital expenditure limits, the figures for the first year of the Programmes become the official Capital Estimates for that year, reflecting committed projects and approved new projects. They will also include any preliminary expenses, design costs and land purchases, which are necessary prerequisites to projects included in year two of the Programmes. Page 94 of 220
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6.3 Preparation With respect to the Composite Programme, the Strategic Capital Delivery Group (SCDG) shall provide all the information, in accordance with a timetable set by, and in a form determined by, the Chief Officer (Finance) when developing the Council’s Capital Programme. Development of the programme is devolved to the Strategic Capital Delivery Group, in line with its Terms of Reference. Approval of the programme is required from the Council’s Section 95 Officer prior to consideration by Council. 6.4 Right to proceed After Council approval, subject to any further consents required, and subject to all other requirements of the Financial Regulations and Contract Standing Orders, Chief Officers may proceed with projects contained in the Estimates, unless: (i) the tender cost or revised estimate exceeds the provision in the estimate, or (ii) the nature of the project has changed substantially from that originally envisaged. In either case, approval must be sought from the SCDG, and will be granted only if the expenditure can be contained within the overall programme. Approval for adjustments in respect of the above must be reported to individual Service Committees and the Policy & Strategy Committee, subject to the approved limits set out in the SCDG Terms of Reference. 6.5 Acceleration Projects contained within years 2-5 of the Plan can be introduced into the current year if they can be contained within the total resources only on the recommendation of the SCDG, in line with their Terms of Reference. 6.6 Additional Projects Additional projects that are over and above the allocations approved in the Council’s five year capital programme require specific consent in the first instance from the Chief Officer (Finance) and approval by the Policy and Strategy Committee. 6.6 Duty regarding Approvals The spending Chief Officer (the Budget Holder) must ensure that all necessary approvals have been obtained before commencing any project. 6.7 Revenue Effects Each Chief Officer, when making proposals on any capital project shall include a report, agreed with the Chief Officer (Finance), showing details of the revenue consequences (costs or savings) in the current and subsequent years, ensuring they are managed. 6.8 Deviations Each Chief Officer (Budget Holder) must draw to the attention of the SCDG and the Spending Committee, in consultation with the Section 95 Officer any circumstance that may lead to a significant deviation from the approved Capital Estimates, either in expenditure or in income. In this context significant means £100,000 or 5%, whichever is the higher, of the Policy & Resources approved programme expenditure. The SCDG should authorise action designed to rectify the situation, and if they are unable to do so, the Chief Officer (Finance) must report the facts to the Spending Committee and the Finance and Resources Committee for consideration. Page 95 of 220
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6.9 Agents Where an agent of any service, including a contractor, Council- controlled Company or Trust, identifies the probability of a significant deviation occurring, the agent is required to report the fact, including reasons for this deviation, to the appropriate Chief Officer (Budget Holder) immediately. 7. REVENUE EXPENDITURE 7.1 Policy Guidelines The Section 95 Officer will advise the Chief Officers of the Guidelines and timetable for preparing the annual revenue budget estimates. 7.2 Budget Estimates The Chief Officer (Finance) Solutions will co-ordinate the preparation of the annual Estimates of Income and Expenditure in accordance with the Guidelines, ensuring compliance with the Council’s priorities and targets within that planning time frame. 7.3 Preparation Chief Officers will supply all necessary information to the Chief Officer (Finance), in accordance with a timetable set by and in a form determined by the Section 95 Officer, regarding the requirements of their services. Where relevant, such information will be supported by equality impact assessments. 7.4 Authorisation The Revenue Budget Estimates will be submitted to Council for approval, together with recommendations as to the levels of Council Tax for the coming year. 7.5 Right to Proceed After the Revenue Budget Estimates are approved, Chief Officers may proceed to incur that expenditure, subject to the contractual provisions of the Standing Orders and Financial Regulations and any other legal requirements in respect of contracts, except where any item has been specifically identified as requiring further Committee consideration and approval. 7.6 Further approval Any proposals requiring Committee approval must include a report from the Chief Executive or spending Chief Officers, agreed by the Chief Officer (Finance), stating whether there is adequate provision in the Revenue Budget Estimates or not. 7.7 Additional Items Expenditure not included in, or in excess of, the Revenue Budget Estimates, or income reduced from that included in the Revenue Budget Estimates, may be authorised in the following circumstances only:- (i) Where a Supplementary Estimate/budget has been approved by both the Spending Committee and Finance and Resources Committee, on receipt of a report from the Chief Officer (Finance) including details of any implications for policy or future years' spending; or (ii) In an emergency, where powers have been specifically delegated to officers for Building Control or Environmental Health (Food Safety) purposes, or with the approval of the Spending Committee and the Finance and Resources Committee as soon as possible thereafter, or (iii) Where adjustments to the budget have been approved in accordance with the provisions of these Regulations. Page 96 of 220
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7.8 Contingency Sum Where a Contingency Sum has been included in the Revenue Estimates, draws on the Contingency must be authorised by the Finance and Resource Committee, on the recommendation of the Section 95 Officer, except in an emergency situation when they may be authorised by the Chief Officer (Finance) in consultation with the Convenor of the Finance and Resources Committee. The facts are to be reported to the Finance and Resources Committee as soon as possible thereafter. 8. BUDGETARY CONTROL 8.1 Information The Section 95 Officer will establish a reporting template which each Chief Officer shall use to compile both their Capital and Revenue Budget Monitoring reports. The reports will detail actual and projected expenditure and income against year to date and annual budgets. The contents of the report must be confirmed by the Chief Officer (Finance) and submitted to the appropriate committee at each cycle. The Section 95 Officer will also present an overall summary of the council’s budgetary position regarding Capital and Revenue expenditure to the Finance and Resources Committee. 8.2 Control Each Chief Officer must ensure that sums provided in the budget, whether revenue or capital, are not exceeded, and that all expenditure conforms to requirements of the Standing Orders and of these Regulations. No Chief Officer or official may incur expenditure unless: (a) It is a capital expense approved in line with the SCDG Terms of Reference; (b) It is a revenue expense approved as part of the revenue budget under 5.4 of these Regulations; (c) The expense has been authorised as supplementary through one of the mechanisms outlined in paragraph 5.7 of these Regulations. Any official proposing to incur revenue or capital spending which is not included within approved budgets must seek approval for a supplementary budget before incurring such expenditure. 8.3 Deviations Each Chief Officer (Budget Holder) must draw to the attention of the Spending Committee, in consultation with the Chief Officer (Finance), any circumstance that may lead to a significant deviation from the agreed subjective headings used for budget monitoring purposes, either in expenditure or in income. In this context significant means £100,000 or 5%, whichever is the higher, at divisional summary subjective account code level. Services must clearly outline the action required to rectify significant deviations and where relevant, must also highlight the impact this has on other budget headings. The Committee must authorise action designed to rectify the matter, and if they are unable to do so the Section 95 Officer must report the facts to the Finance and Resource Committee for consideration. Page 97 of 220
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8.4 Virement A Chief Officer may transfer money between approved Capital & Revenue expenditure budgets, but must ensure the nature of such transfers is clearly outlined in monitoring and committee reports, where applicable. The rules for virement of Revenue budgets apply to transfers at divisional summary subjective account code level e.g. Environment & Estates division property costs. The rules are as follows: 8.4a Revenue Virement Must comply with the definition of a virement as per Section 3.1.10. i) Up to £50,000 in consultation & agreement with both the Chief Officer and Section 95 Officer; ii) £50,001-£100,000 following consultation & agreement with the appropriate Convenor and thereafter with the agreement of the Section 95 Officer; iii) Over £100,000 on the recommendation of the Spending Committee, and following notification to the Section 95 Officer, either in the form of a specific report to that Committee or requested within Budget Monitoring reports; iv) For Educational Establishments under Devolved School Management, the notes for virement are laid down in their schemes of delegation; v) The Chief Officer (Enterprise and Communities) may transfer either £100,000 or up to 20% (whichever is higher) of the total Repairs Budget between Repairs Budget headings without recourse to Committee; vi) Regardless of purpose, budget transfers which impact a future year or years require the approval of the Policy and Strategy Committee. 8.4b Capital Virement Capital Virements will be made in line with the SCDG Terms of Reference, in conjunction with the Chief Officer (Finance). Where this ceases to be the case, capital virements should match the requirements outlined in Section 8.4a (Revenue Virement). Virements will be classed as those reported at project level, as outlined in the Councils Composite 5 Year Capital Programme approved at Policy and Strategy Committee on the 21st March 2019 (updated for Committee annually). 8.5 Inter-Service Recharges (Revenue) Clear documentary justification should be available to the budget holder to support and substantiate any service recharges. Inter-Service Recharges should not be treated as External Income and should utilise a relevant Internal Recharge code. Where required, guidance should be sought from Finance staff. 8.6 Inter-Service Recharges (Capital) Clear documentary justification should be available to the budget holder to support and substantiate any service recharges. Chief Officers must also ensure that any recharges to capital are in line with capital guidance/code as outlined in these Financial Regulations. Where Inter-service recharges to capital do not meet the definition of capital these must be funded through revenue sources. Page 98 of 220
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9. LEGALITY OF EXPENDITURE 9.1 Legality of Expenditure Chief Officer must ensure that any proposed expenditure is within the legal powers of the Council. If in doubt, the Monitoring Officer – Chief Officer (Legal and Democratic) – should be consulted. 10. INCOME 10.1 Setting of Charges With the exception of charges imposed by Law and those which are deemed the responsibility of the Council’s Charitable Trusts, all alterations to charges require advance approval of the relevant Committee. 10.2 Review of Charges All Chief Officers shall review their service charges annually in the light of inflation and report the outcome of the review to the Chief Executive and the Section 95 Officer. In line with the principles of the Revenue Budget Strategy, where possible Chief Officers should aim for full cost recovery. 10.3 Debtors Control Each Chief Officer shall make arrangements for the issue and follow-up of accounts and the collection, control and banking of all monies due to the Council. 10.4 Notification of Income Chief Officers will provide prompt and full particulars of charges made for work, supplies, goods or services, or other sums due to the Council to, and in a form approved by, the Chief Officer (Finance), to ensure the proper recording and prompt collection by him, or under arrangements approved by him, of all monies due. 10.5 Write-offs Any proposal to write off sums due to the Council requires the following approvals: (i) For individual sums of less than £500, the relevant Chief Officers and the Chief Officer (Finance), with an annual report to the Finance and Resources Committee for information; (ii) For individual sums of £500 or over, the Spending Committee and the Finance and Resources Committee. 10.6 Money Collection All monies collected in any service must be recorded and deposited, without delay, with the Section 95 Officer or in a Bank in accordance with his instructions. No deductions may be made from income without the specific authorisation of the Chief Officer (Finance). 10.7 Personal cheques Personal cheques will not be cashed out of monies held on behalf of the Council. 10.8 Grants Where appropriate, the Section 95 Officer shall be advised of all relevant information necessary to allow the submission of all applications for Grants due to the Council. Where applications are submitted directly by the Chief Executive or Chief Officers, they shall be responsible for their timeous and accurate submission. Where Chief Officers, and those with devolved responsibility, are responsible for grant submissions, they are required to advise and provide evidence to relevant Finance staff of the grant application. Page 99 of 220
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10.9 Controlled Stationery All receipt forms, books, tickets and other such items shall be ordered and supplied to services by the Section 95 Officer, or by arrangements approved by them. 10.10 Transfer of Money All such transfers between staff will be evidenced in the records of the Services concerned by the signature of the receiving officer. 11. TREASURY MANAGEMENT 11.1 CIPFA Code of Practice The Section 95 Officer – Chief Officer (Finance) - to ensure the Council adopts the key clauses within Section 5 of CIPFA’s “Treasury Management in the Public Services” Code of Practice (the Code) and most up to date revisions to the Code. 11.2 Treasury Management Policy Statement and Practices The Section 95 Officer must arrange for the creation and maintenance of a Treasury Management Policy Statement and Treasury Management Practices, which identify the manner in which the Council shall manage and control its Treasury Management activities. 11.3 Prudential Code for Capital Finance in Local Authorities The Chief Officer (Finance) is responsible for establishing a control framework that complies with the requirements of the Prudential Code for Capital Finance in Local Authorities, and for regular monitoring of prudential indicators during the financial year. 11.4 Investment Strategy In accordance with the Local Government Investments (Scotland) Regulations 2010, the Section 95 Officer must arrange for the creation and maintenance of an Annual Investment Strategy and Annual Investment Report. Council funds shall be invested in accordance with the approved annual investment strategy and shall be held in the name of the Council. 11.5 Borrowing and Investment All borrowing, investment and leasing including that related to Trust and Charitable Funds, will be under the control of the Chief Officer (Finance) in accordance with the provisions of the aforementioned Code of Practice on Treasury Management, Prudential Code for Capital Finance in Local Authorities, Treasury Policy Statement and Treasury Management Practices, all of which have been adopted by the Council. 11.6 Leasing Services must obtain the approval of the Chief Officer (Finance) before entering into any leasing agreements (operational and finance) with a finance company. Leases affected must be in the Council’s name. Leases must be reviewed with Finance staff and reported to the Capital, Treasury and Systems team to ensure compliance with proper accounting practices (IFRS 16). Where guidance is required, Finance staff and the Capital, Treasury and Systems team will provide support. Page 100 of 220
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12. BANKING 12.1 Bank Accounts All arrangements with the Council's Bankers shall be made by the Chief Officer (Finance), who shall be authorised to open such bank accounts as he may consider necessary. 12.2 Cheques All cheques required to support the banking arrangements of Council-operated Services shall be ordered only on the authority of the Section 95 Officer, who shall make proper arrangements for their safe custody. 12.3 Signatures With reference to 12.2 above, all cheques, excluding those required by Charitable Trusts, shall be signed by the Chief Officer (Finance); manual cheques may be signed by other responsible persons, per the Councils bank mandate, specified by the Section 95 Officer, on her behalf. 12.4 Petty cash There are separate arrangements for the operation of petty cash Accounts. These are described in Regulation 20. 12.5 Credit Cards Any requests for a corporate credit card must be made in accordance with the Councils Corporate Credit Card Policy with all aspects of the policy properly adhered to. 12.6 Purchase Cards Purchase cards will be issued only where there is a clear business benefit or need. Their issue will be approved by service managers and the cardholders will need to agree to the terms of their use. Restrictions on their use will normally be applied and will be coded into the card itself. Misuse of purchase cards will result in action under the Council’s disciplinary procedures. The Chief Officer (Finance) is responsible for overseeing the issue and use of cards as well as associated VAT compliance. 12.7 Direct Debits/Standing Orders All direct debit instructions and standing orders approved for payment by Services must be authorised by the Chief Officer (Finance). 12.8 Banking Contract All services provided by the bank in relation to the management of the Council’s bank accounts and the issue of cheques shall be renewed periodically by a competitive tendering process. 13. PAYROLL 13.1 Payment Payment of all wages, salaries, travelling and subsistence expenses and other Payroll items will be made by the Chief Officer (People Resources), with delegated authority from the Section 95 officer. 13.2 Information The Chief Executive, Chief Officers, or other officer where appropriate, will provide to the Section 95 officer, delegated to the Chief Officer (People Resources), in accordance with a timetable laid down by, and in a form approved by him, information regarding appointments, resignations, dismissals, promotions, increments, pay awards, hours worked, overtime, sickness, travel and subsistence and any other items affecting the remuneration of employees, or essential to maintain records regarding Tax, National Insurance and Superannuation. Page 101 of 220
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13.3 Certification All payroll information must be supplied by Authorised Signatories. Signatories are certifying that the information is accurate and that any overtime and expenses relate directly and exclusively to the Council's business. 13.4 Payment method The normal method of payment shall be by the Bankers Automated Clearing System (BACS). Where this is not possible, payment will be made by cheque or under special circumstances by prior agreement with the Capital, Treasury and Systems team using online banking payment services e.g. faster payment, CHAPS. 14. PAYMENT OF CREDITORS In conjunction with Internal Audit, a number of interim arrangements have been put in place to allow the continuation of payments to creditors whilst a large proportion of staff work from home. The key principles set out in these regulations stand however where a working from home arrangement is in place this will be displayed in italics. 14.1 Ordering Chief Officers are responsible for ordering goods and / or services for their Services, which shall be carried out in accordance with the Council’s contract standing orders, approved procurement strategy and guidance notes. 14.2 Electronic Purchase Order Processing Where available, Services shall use PECOS or other approved electronic procurement systems for all purchases. Services using electronic procurement systems must use electronic order forms for all purchases, which require to be authorised electronically by an authorised signatory. Where an urgent order is made by letter or on the telephone, an electronic order form must subsequently be sent in confirmation within a day of the request 14.3 Manual Purchase Order Processing Manual purchase orders should only be used where Services do not have access to PECOS or other approved electronic procurement systems. Official Order Forms will be used for all purchases and must be signed by Authorised Signatories. Where an urgent order is made by letter or on the telephone, an official order form must subsequently be sent in confirmation within a day of the request. Page 102 of 220
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14.4 Certification Chief Officers will arrange for the certification of invoices and other equivalent payment vouchers received from suppliers, contractors, or generated from Service systems, and remit them, physically or electronically, to the Chief Officer (Finance) for payment. In making these arrangements, Chief Officers must have regard to the need for Internal Check (19.3 below). Authorised Signatories are certifying that: • the goods or services included are as ordered, • the payment is properly due under the terms of any contract, and that the prices and all arithmetical details are correct, and • the expenditure has been properly incurred. In addition, they are also confirming that they have delegated authority to certify payment to the value of each individual invoice or equivalent payment voucher enclosed in the batch. The Chief Officer (Finance) is responsible for overseeing the compliance of creditors payments certification with any issues reported to the Section 95 Officer where appropriate. Arrangements have been put in place to facilitate the authorisation of invoices whilst staff work from home. This process requires dual authorisation through email with the following certification statement: Certification Statement I confirm that I am certifying payment of the enclosed invoices or other equivalent payment vouchers in accordance with North Lanarkshire Council’s current Financial Regulations and that: (a) The goods or services included are as ordered; (b) The payment is properly due under the terms of any contract and that the prices and all arithmetic details are correct; and (c) The expenditure has been properly incurred. I also confirm that I have delegated authority to certify payment to the value of each individual invoice or equivalent payment voucher enclosed in this batch. Total Count of invoices or other equivalent payment vouchers being certified: ____________ Total Gross Value of invoices or other equivalent payment vouchers being certified: ___________ Certified by: _______________________ (print name) _______________ (date) Page 103 of 220
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14.5 Certification of Cheque request forms All payment / cheque requests must be made using the Standard Template and must be authorised by two different authorised signatories (i.e. officers with the appropriate level of delegated authority per the authorised signatory list). As with invoice certification, authorisation by email is acceptable. Once the Standard Template has been completed, it should be saved as a PDF (so that it cannot be amended) and sent to the first authorised signatory, with the email subject stating ‘Request for payment / cheque’. The first authorised signatory should check the form and be satisfied that it should be processed for payment. Once satisfied that the form should be processed for payment, the first authorised signatory should forward the email to the second authorised signatory for checking and agreement. Once agreed, the second authorised signatory should then forward the email to CreditorsDPMailbox@northlan.gov.uk for processing, ensuring that the email trail clearly indicates the dual authorisation process. As this is the authorisation process, any payment / cheque requests which do not follow this process and clearly show the dual authorisation process will not be processed for payment and will be returned to the sender’s mailbox. 14.6 Payment All invoices and other equivalent payment documents, with the exception of petty cash items, may only be paid by the Section 95 Officer who may carry out such additional checks as deemed necessary. Petty cash items are covered by Regulation 18. 14.7 Alterations In the unlikely event that a voucher has to be altered, this should be done by an Authorised Signatory, clearly, by stroking out and correcting in ink. Correcting fluid must not be used. Invoices must not be altered by staff, but must be sent back to the supplier for correction. 14.8 Payment method The normal method of payment shall be by the Bankers Automated Clearing System (BACS). Where this is not possible, payment will be made by cheque following written confirmation with the Creditors Section or under special circumstances by prior agreement with the Capital, Treasury and Systems team using online banking payment services e.g. faster payment, CHAPS. Note that arrangements for same day faster payments must be notified to the Capital, Treasury and Systems Team before 10am on the required day. 14.9 Payment Timing Every effort will be made to adhere to any payment timetable stipulated in contracts (including Small, Medium Enterprises currently on 20-day terms), or otherwise within 30 days. Where special circumstances exist for a contract’s payment terms, these must be notified in writing to the Creditors Section by the appropriate authorised signatory. Chief Officers should pass certified invoices to Finance within 20 days of receipt. Finance should process properly certified invoices within 5 days of receipt. Page 104 of 220
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14.10 Certification of urgent payments All invoices that are overdue and presented late to creditors should be submitted individually by email. If a service wishes these overdue invoices to be treated as urgent, the invoice certification checks and reviews should be carried out as usual, however, the authorisation for payment of these invoices must be submitted to creditors by email to ‘Data Processing Mailbox – Creditors’ by the Chief Officer responsible for that area of business directly, with the subject line ‘Urgent Payments – Invoices Overdue’. The following text must be added to the body of the email, “I authorise the attached batch containing xx invoices/documents to the value of £xx.xx to be processed for payment. These invoices are already overdue and should be treated as urgent because ………………………” 15. CONTRACTS 15.1 Register Chief Officers shall maintain records of all contracts relevant to their Services and payments made. The Chief Officer (Finance) shall have access to all such records. 15.2 Payments (re contracts) Payment Certificates to Contractors may be signed only by Authorised Signatories. 15.3 Variations Subject to the conditions of contract in each case, every variation shall be authorised in writing by the appropriate Chief Officer (Budget Holder) or private professional or consultant as appropriate, or by other officer nominated by them, or, in special circumstances, by other officer approved by the Section 95 Officer. 15.4 Significant Variations Any variations where the outturn/expected costs exceed the tendered contract price by the higher of £25,000 or 5%, or where the outputs/outcomes achieved by the expenditure differ significantly from those originally envisaged, shall be reported by the appropriate Chief Officer (Budget Holder) to the relevant Spending Committee at the earliest opportunity. 15.5 Time Delay Where completion is delayed beyond the agreed timescale, the Chief Officer (Budget Holder) shall, in consultation with the Monitoring Officer – Chief Officer (Legal and Democratic) - take appropriate action in regard to liquidate ascertained or other damages. Page 105 of 220
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16. SECURITY 16.1 Responsibility All Chief Officers are responsible for maintaining proper security over all buildings, stores, furniture, equipment, cash, etc., under their control. Chief Officers will consult the Section 95 Officer when advice may be required, concerning existing or new situations. 16.2 Cash Holdings Chief Officers will agree limits for cash holdings on their premises with the Section 95 Officer. These may not be exceeded without the prior written agreement of the Chief Officer (Finance). 16.3 Key holders Chief Officers must ensure that keys for safes and similar receptacles for cash or other valuables are securely controlled by persons specified as key holders. Each Chief Officer will keep a register of key holders. Any loss of such keys must be reported to the Chief Officer (Finance) immediately upon discovery of loss. 16.4 Controlled Stationery The Chief Officer (Finance) shall ensure that secure arrangements are in place for the custody and issue of pre-printed/ pre-signed cheques, and any other stocks of stock certificates, bonds, and any other valuable financial documents. 16.5 Retention of Documents Chief Officers are responsible for the safekeeping and control of all documents in their services. The Section 95 Officer in consultation with the Monitoring Officer will specify the retention period for documents of a financial nature, which is prescribed within the NLC Retention Schedule. 16.6 Data Protection Personal data (both manual and computerised) held by the Council may not be used for any purposes other than those which are registered by the Council under the Data Protection Act 1998. The Council has a duty to respond timeously, within 40 days, to requests for information (“Subject Access Requests”), provided that the conditions contained in the Data Protection Act 1998 are met. The Service receiving the request should deal with the subject access request and maintain a record of information provided in respect of all subject access requests, in accordance with the Council’s Data Protection Policy. The above applies with reference to subsequent amendments to the Data Protection Act 1998 to take account of General Data Protection Regulations. 17. STORES AND INVENTORIES 17.1 Storekeeping Chief Officers are responsible for the safe keeping and control of all stocks and stores in their Services, and must arrange for regular stocktaking. 17.2 Adjustments Where a Chief Officer has had to make adjustment for stock surpluses or deficiencies, a report must be submitted to the Spending Committee and the Finance and Resource Committee specifying the reasons for the adjustments and the amounts thereof. 17.3 Disposal of equipment A Chief Officer who has equipment, furniture or stock surplus to requirements (excluding ICT equipment) should first offer it to Page 106 of 220
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other Chief Officers. Thereafter, Chief Officers wishing to dispose of surplus items shall do so by sale advertised in the press, either by sealed offer or by public auction. Any proposals for a different method of disposal must be approved by the Section 95 Officer. Assets which are obsolete or beyond economic repair, and whose individual estimated value at the date of disposal is less than £1,500, can be disposed of by the Service without prior approval by the Section 95 Officer provided that the disposal of each item has been authorised by the relevant Chief Officer. 17.4 Disposal of ICT equipment Where a Chief Officer has ICT equipment that is surplus to requirements, obsolete or beyond economic repair, their nominee shall contact the IT Service Desk to ensure that all data is safely removed and the equipment disposed of in accordance with the Council’s IT policies. 17.5 Stock Levels Stocks and stores must not be in excess of normal requirements. Chief Officers wishing to make exceptional arrangements must seek the authority of the appropriate spending Committee. 17.6 Inventories Chief Officers must maintain inventories, in a form specified by or approved by the Chief Officer (Finance) and must have them checked annually. 17.7 Removal Council property, excluding portable devices (e.g. Laptops), may not be removed from Council premises without the written authority of the appropriate Chief Officer. Line management approval must be obtained prior to removing portable devices from Council premises. 17.8 Valuations Chief Officers shall supply to the Chief Officer (Finance) annually, certified and dated copies of stock lists and inventories required for the closing of the Accounts. 18. INSURANCE 18.1 Insurance Where insurance is the chosen option, the Chief Officer (Finance) shall effect and maintain suitable cover, and will put in place suitable arrangements for the negotiation of any claims, in consultation with other Chief Officers. 18.2 New Risks Chief Officers must immediately notify the Chief Officer (Finance) of: i) any new Service activities or practices which could have a significant effect on the potential liability of the Council to other parties so as to allow for effective insurance arrangements; or ii) any changes to the Council’s asset portfolio which will affect the level of cover required for Council owned property i.e. significant additions or deletions of premises, so that the Chief Officer (Finance) can change the level of cover in place. 18.3 Insurance Risk Management The Chief Officer (Fnance) shall, at not less than five-yearly intervals, submit to the Finance and Resources Committee an insurance risk management and funding strategy. Page 107 of 220
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18.4 Losses Chief Officers must immediately notify the Section 95 Officer of any losses or other events likely to lead to a claim, who is responsible for taking appropriate action after liaising with the relevant Chief Officer. 19. ACCOUNTING PROCEDURES 19.1 Systems and Records The Chief Officer (Finance) shall specify or approve all accounting systems and records of the Council, wherever kept. 19.2 Principles All systems will be designed in accordance with best practice, and will incorporate internal controls to ensure that, as far as possible:- (i) all income of the Council is promptly and properly recorded and collected, (ii) all expenditure of the Council is properly incurred, authorised and duly paid, (iii) all cash, stores and other assets of the Council are safely kept and controlled, (iv) due cognisance of the Section 95 Officer’s requirements in respect of reconciliations, audit trails and control, and (v) Finance should be directly involved at the tender, implementation and post-implementation review of new internal control and recording systems to ensure they comply with the above requirements. 19.3 Internal check As far as possible, segregation of duties should occur among employees so that:- (i) the calculation, recording or certification of sums due to or by the Council should not be in the hands of one person, (ii) those who calculate, record or certify sums due to or by the Council should not be involved in the eventual receipt or payment of those sums, and (iii) those who examine or check cash transactions should not be directly involved in those transactions (iv) all checking and authorisation undertaken by officers must be evidenced by initials or signature. Where segregation of duties is not possible, direct line managers should be made aware and the associated risk included on the relevant Risk Register. 19.4 Provision of Information Chief Officers will supply to the Section 95 Officer, in accordance with his timetable, all information necessary, including that relating to ALEOs, to enable him to close the Council's Accounts by the statutory date each year. The statutory date is currently 30 June. Final Audited Accounts of Council Subsidiary Companies should also be made available to allow the Council to comply with the statutory deadline of publishing those accounts on the Council website by 31 October each year as per the Local Authority Accounts (Scotland) Regulations 2014. Page 108 of 220
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19.5 Statutory Accounts Audited Annual Accounts Deadlines The Chief Officer (Finance) requires the attendance and signature of the following members and officers by the statutory completion date: Chief Officer (Finance); Chief Executive; and Council Leader. The Annual Accounts require the signature of the Leader of the Council and the Chief Executive directly following the approval at the Council’s Audit and Scrutiny Panel. Approval of the accounts for signature should be no later than 30 September unless special/temporary legislation states otherwise. 20. CASH ADVANCES – GENERAL AND IMPREST 20.1 Responsibility The Chief Officer (Finance) shall provide cash advances to those who require them for the purpose of minor items of expenditure. The Advance for Officials Expenses form should be completed by the relevant officer and signed by their authorised Service Contact and countersigned by the relevant Finance accountant. Whilst working from home, this process can be completed through email authorisation with a clear trail shown between appropriate personnel. The completed form should be emailed to the “cash advances” mailbox ready for an officer to collect from their preferred First Stop Shop – Motherwell, Wishaw, Coatbridge or Kilsyth. All receipts to support the spend should be retained and returned with any cash remaining from the advance within 1 month of the cash advance being received. 20.2 System – Imprest The particular bookkeeping system in use for petty cash in all Services is the Imprest System, and those who have cash advances are referred to as imprest holders. 20.3 Rules – Imprest Imprest accounts will be operated to rules set by the Section 95 Officer. These will be notified to all imprest holders, and must be strictly adhered to. 20.4 Termination – Imprest Any imprest holder who leaves the Council's employment or through any other circumstances ceases to be entitled to be an Imprest Holder, must account to the Section 95 Officer for the amount of the advance. 20.5 Payment Method – Imprest Imprest holders may make payments in cash or by cheque drawn by them on their respective Imprest Bank Accounts. Page 109 of 220
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21. AUDIT 21.1 Responsibility The Section 95 Officer and Chief Officer (Audit and Risk) shall ensure the adequacy and effectiveness of the Council’s internal controls including financial and operational controls, risk management systems and key governance processes are independently reviewed on a regular basis in accordance with the Public Sector Internal Audit Standards and associated Local Government Application Note. Internal Audit will operate in a manner consistent with the Internal Audit Charter which explains in more detail its purpose, authority and responsibilities. This document is reviewed annually and is approved by the Section 95 Officer, the Chief Executive and the Audit and Scrutiny Panel. 21.2 Access Internal Audit staff have authority to:- (i) enter all Council premises or land at all reasonable times, (ii) have access to all records, (iii) require and receive any explanations necessary concerning any matter under investigation, and (iv) require any employee to produce cash, stores or other property under that employee's control. 21.3 Value for Money Internal Audit staff will contribute in an appropriate manner to the achievement of value for money in Council services. 21.4 Irregularities Chief Officers must report any evident or suspected irregularity involving cash, stores, expenditure, income, contractual powers or any other item of a financial nature, immediately, to the Audit and Risk Manager. 21.5 Reporting The Chief Officer (Audit and Risk) shall report on Audit activity to the Chief Executive, Section 95 Officer and the Audit and Scrutiny Panel. 21.6 External Audit External Audit staff must be given access by Services to all relevant records required to enable them to conduct the external audit of the Council in accordance with the Code of Practice issued by Audit Scotland. Where staff are unsure about providing access, advice should be sought from the Section 95 Officer. 22. MEMBERS’ REMUNERATION AND EXPENSES 22.1 Responsibility The Section 95 Officer shall be responsible for the administration of expenses and remuneration to members of the Council in accordance with Scottish Government Regulations. 22.2 Payment Payment to members, including co-opted members, will be made by the Chief Officer (Finance) in accordance with the Regulations, upon receipt of the prescribed form duly completed, where appropriate. All claims for a financial year are to be submitted within one month after 31st March of that financial year. Working from home arrangements require claim forms to be received electronically. Page 110 of 220
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23. FINANCIAL REGULATIONS 23.1 Authority These Regulations were approved by the Committee in May 2018 and have been subject to annual review since. 23.2 Responsibilities Chief Officers are responsible for ensuring that all appropriate members of staff, and where appropriate, external consultants, contractors and relevant partner organisations, have access to the Council’s Financial Regulations and Contract Standing Orders. 23.3 Breach Any employee discovering a possible breach of these regulations must report the matter immediately to their Chief Officer, who must in turn immediately report it to the Section 95 Officer. Failure by any employee to comply with the Regulations, or, in the case of staff with appropriate supervisory responsibilities, failure to ensure the compliance of others, can be a serious offence which may give rise to action. 23.4 Special Provisions The Education, Children and Families Committee may request amendments to these Regulations insofar as they apply to the devolved Management of Resources by educational establishments, in consultation with the Chief Officer (Finance), and reported to the Finance and Resource Committee. 23.5 Annual Review The Chief Officer (Finance) will consider these Regulations annually, and having consulted the Chief Executive, Chief Officers and Chief Accountable Officer for Health and Social Care, will present proposals for revision of the Regulations, where appropriate, to the Finance and Resource Committee for approval. 23.6 Circulation Electronic copies of these Regulations are issued directly to the Chief Officers. In addition, the document can be accessed on the Council’s Intranet, or via the Council’s Minutes, Agenda and Reporting system – Finance and Resource Committee. 23.7 Advice Any queries regarding the Regulations or their interpretation should be made in the first instance to the Chief Officer (Finance), or your relevant Finance contact who can refer any queries on to the relevant officer for review. Page 111 of 220
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Appendix 3 FINANCE SCHEME OF DELEGATION FINANCIAL MANAGEMENT RESPONSIBILITIES 1. Section 95 Officer 1.1. The Council, in terms of Section 95 of the Local Government (Scotland) Act 1973, has designated the Chief Officer (Finance) as the officer responsible for the proper administration of the Council’s financial affairs, and nothing in this Scheme alters that responsibility. However, to enable the Section 95 Officer to fulfil his/her responsibilities in the most effective manner and to ensure that there is no ambiguity in relation to accountability, it is necessary for each level of management to delegate formally, and to issue a clear statement detailing, operational responsibility. 1.2. The Chief Officer (Finance), as Section 95 Officer, has the following specific responsibilities: 1.2.1. To ensure the accurate and timeous preparation of the Council’s Revenue Estimates, Medium-term and Long-term Financial Plans as appropriate, Capital Programmes and Statutory Accounts; all in accordance with laid-down timetables and procedures. 1.2.2. To report the summary position for both revenue and capital budgets at each committee cycle, with the intervening reports being presented to the Corporate Management Team. 1.2.3. To ensure reports are prepared by Service based Finance personnel in consultation with budget managers, in accordance with the Financial Regulations and ensure they are presented to the relevant Committee of the Council. 1.2.4. To ensure that all government and other external reporting body returns (POBE, LFR’s, Whole of Government Accounts, Prudential Code Indicators, Capital Expenditure and Income Statistics etc.) and Grant claims are submitted to the appropriate body by the due dates. 1.2.5. To ensure the development of Finance’s response to Best Value as set out in the Local Government Act 2003. 1.2.6. To review government grant mechanisms, identifying areas of potential review, and research alternative methods of funding. 1.2.7. Ensure the development of financial and management systems. 1.2.8. Maintain, review and update financial policies to reflect the corporate priorities of the Council. 1.2.9. To ensure that the Council has an appropriate Treasury Management Strategy which complies with recommended best practice and accords with the CIPFA Code of Practice and Prudential Code for Capital Finance. 1.2.10. To ensure that the Council’s Loans Fund and day to day borrowing and investment arrangements are in line with the statutory Annual Investment Strategy, and to report the Council’s Treasury Management Performance to Committee as required. 1.2.11. To ensure that professional standards and staff performance are maintained by all staff delivering financial services. Page 112 of 220
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1.2.12. To ensure that appropriate access to training needs is available to enable staff to achieve their potential. 1.2.13. To ensure that a library of standard financial and accounting procedures is maintained for each Service, Trading Activity, Trust and other body such as a Private Company, in which the Council has a financial interest. 1.3. The Chief Officer (Finance) has delegated the areas of responsibility described in this Scheme of Delegation to specified officers of Finance. In fulfilling any responsibilities delegated to them, specified officers will: 1.3.1. Conform with professional guidelines and standards of competence; 1.3.2. Comply with recognised accounting codes of practice. 1.3.3. Act in a professional and competent manner. 1.3.4. Seek to ensure that members of their staff do the same. 1.4. Specified officers will not sub-delegate any of their delegated responsibilities without the written consent of the Chief Officer (Finance). Duties may be sub-delegated, but not responsibilities. 2. Specific Delegation to Officers 2.1. The items listed in Section 2 of this Scheme of Financial Delegation are not to be regarded as an exhaustive list of the responsibilities of the specified officers. The Scheme must be read in conjunction with the officer’s Contract of Employment, Job Description and Professional Codes of Conduct. 2.2. The Chief Officer (Finance) has made the following specific delegations in respect of the provision of Finance. 2.3. Business Finance Manager 2.3.1. Develop strategic business plans and manage service delivery consistent with these plans and in line with national and council policies. 2.3.2. Ensure best value in the management and delivery of services under direct control, ensuring that all relevant legislative requirement and professional standards are fulfilled and the best available assistance and advice is provided to Executive Directors within a changing economic and legislative environment. 2.3.3. Monitor along with other members of the Management Team, the external environment to ensure continued strategic fit between organisational capabilities and the changing demands upon the service. 2.3.4. Identify and develop opportunities for service improvement through collaborative projects/joint ventures with partner agencies. 2.3.5. Represent the Service and Council as necessary, including attendance at all relevant committees of the Council, working groups, conferences, seminars and meetings. 2.3.6. Provide support to national activities, including COSLA and Scottish Government as required. 2.3.7. Provide performance information and the preparation of reports for Council Committees, Sub Committees and working groups as required. 2.3.8. Promote and develop the use of options appraisal and other business and analytical techniques in support of continuous improvement. Page 113 of 220
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2.3.9. Support Executive Directors to ensure the effective and efficient deployment of financial resources within Services. 2.3.10. Ensure employees adhere to the Council’s Financial Regulations and Scheme of Financial Delegation and ensure probity in the use of financial resources. 2.3.11. Manage the accounting and audit process, ensuring adherence to council financial policies and procedures, legislative requirement and professional standards. 2.3.12. Ensure effective operational financial management of revenue and capital budgets and establish and maintain systems whereby budget managers regularly account for the budgets under their control. 2.3.13. Provide financial management information and professional advice, direction and support to delegated budget holders on all financial matters. 2.3.14. Monitor, measure and report on financial performance according to agreed performance indicators and frameworks. 2.3.15. Maintain positive working relationships with other officers, elected members (individually and collectively at Committee/Working Groups etc) and Community Planning partners. This will involve working across all service groups and with chief officers to ensure a joined up approach to the delivery of such services. 2.3.16. Oversee the Council’s monitoring and maintenance of effective controls and reconciliations of data or cash controls as appropriate. 2.3.17. Ensure that statutory returns and grant claims are completed and returned within required deadlines. 2.3.18. Identify Key financial risks and address these as appropriate, in terms of internal controls, monitoring and planning arrangements. 2.3.19. Support the Council’s pursuit of an effective health and safety culture by using the policies, procedures, risk assessments and training provided to work safely, giving due regard to yourself, others you work with and those who may use council services. 2.3.20. Deputise for the Chief Officer (Finance) as appropriate. 2.3.21. Coordinate and prepare the Council’s annual revenue and capital budgets providing advice on matter relating to financial strategy, funding resources and expenditure pressures. 2.3.22. Oversee the preparation of the Annual Accounts of the Council and associated bodies in accordance with legislative accounting requirements and professional standards. 2.3.23. Oversee the Council’s Treasury Management function ensuring the effectiveness of the Authority’s Treasury Management policy and borrowing strategy. 2.3.24. Oversee the Council’s financial monitoring and governance arrangements of our Arms Length External Organisations (ALEO’s). 2.3.25. Provide a comprehensive financial systems development, research and Taxation service. 2.3.26. Manage the rent accounting function, developing and maintaining a fair and effective differential rent structure. 2.3.27. Ensure that adequate systems are in place to collect and account for other sources of income. Page 114 of 220
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2.3.28. Consult with the Service Management Teams to assess how the existing financial management needs have been met and plan for future requirements. 2.3.29. Oversee the monitoring of the Councils Devolved School Management (DSM) scheme, ensuring adherence to the scheme and the effective use of budgets and recommending changes where appropriate. 2.3.30. Manage elements of the DSM scheme not directly within the Finance structure. 2.3.31. Consult with the Service Management Teams to assess how the existing financial management needs have been met and plan for future requirements. 2.4. Finance Manager 2.4.1. Manage all activities to ensure that appropriate professional advice and guidance is provided on all relevant financial issues within the scope of the Finance Manager’s responsibilities. 2.4.2. Ensure effective arrangements are implemented and adopted for providing prompt customer focussed service. Develop solutions to complex problems and respond to high level queries from senior managers, service managers, elected members and external bodies. 2.4.3. Ensure team members follow Council policies, procedures, legislative requirements and professional standards. 2.4.4. Provide the Finance Management Team and Council Services with professional advice on matters relating to the operation and development of the Services including: 2.4.4.1. Providing financial management, business planning and accounting services for a range of specified Council Services. 2.4.4.2. Ensuring financial support provided to Services is efficient, integrated and responsive to change. Support Services in the delivery of the transformational change by providing professional guidance and support on business planning and financial management. 2.4.4.3. Directing the activities of Accountants, Assistant Accountants and other support staff to ensure revenue and capital plans, budget monitoring and annual accounts arrangements are effectively in place across the Council. 2.4.4.4. Identifying key financial risks and addressing these as appropriate in terms of internal controls, monitoring and planning arrangements. 2.4.4.5. Reviewing and ensuring compliance with financial regulations including SORPs and CIPFA Codes of Practice and other financial controls. Act upon internal and external audit reports relevant to areas of responsibility. 2.4.4.6. Promoting best financial practice to ensure effective use of and accountability for revenue and capital resources. Develop and maintain effective procedures in line with the scheme of financial delegation. 2.4.4.7. Reviewing statutory and statistical returns and grant claims to ensure that the Council’s needs and resources are accurately identified. Ensure all grant claims and statutory returns are completed and submitted within required deadlines. 2.4.5. Manage and develop the staff in the group, ensuring the highest professional standards by setting objectives and performance standards, developing work Page 115 of 220
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plans identifying training requirements, reviewing performance and taking such remedial action as necessary to ensure that standards are maintained. 2.4.6. Develop and maintain good working arrangements with other Finance Managers, Service Managers, elected members, trusts and external organisations to ensure efficient, effective and corporate working. 2.4.7. Respond positively to changes affecting the service, advocate new practice and procedures and drive forward change processes. Ensure that the professional integrity of the service is maintained at all times. 2.4.8. Represent Finance where appropriate at e.g. national associations, professional working groups, Council meetings etc. 2.4.9. Ensure that income and expenditure are monitored against Service budgets and that variances are reported timeously. 2.4.10. Prepare reports to senior management and the Council, as required. 2.4.11. Support the Council’s pursuit of an effective health and safety culture by using the policies, procedures, risk assessments and training provided to work safely, giving due regard to yourself, others you work with and those who may use Council services. 2.4.12. Manage the preparation and production of the Council’s annual revenue and capital budgets and supporting strategies and plans. 2.4.13. Co-ordinate the preparation of the Annual Accounts and other statutory returns of the Council and associated bodies in accordance with legislative accounting requirements and professional standards. 2.4.14. Manage Council’s Treasury Management function ensuring the effectiveness of the Authority’s Treasury Management policy and Borrowing Strategy. 2.4.15. Manage the Council’s financial monitoring and governance arrangements of Arms Length Organisations (ALEO’s) 2.4.16. Assist in providing a comprehensive financial systems development, research and Taxation service. 2.4.17. Ensure effective ledger control. 2.5. Accountant 2.5.1. Manage all activities within the job remit ensuring professional advice and guidance is provided at all times. 2.5.2. Provide the Chief Officer (Finance), Business Finance Managers, Finance Managers, Council Services and ALEOs Management teams/boards with professional advice on all matters relating to the financial management of the Council including: 2.5.2.1. Taking a lead role in financial management, business planning and accounting services for a range of specified Council services/ALEOs, promoting best financial practice across the Council. 2.5.2.2. Providing financial support to service in an efficient, client-focussed and integrated manner. 2.5.2.3. Assisting senior management in the development and maintenance of effective financial controls across the Council/ALEOs, assessing potential for improvements to internal controls and monitoring processes. Page 116 of 220
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2.5.2.4. Assisting senior management on the financial implications of the implementation of policy and legislative changes. 2.5.2.5. Provide financial advice and support to transformational projects as identified by the Transformation Committee. 2.5.2.6. Ensuring compliance with the Council’s Financial Regulations and proper accounting practice, including relevant Code of Practice on Local Authority Accounting and other relevant legislation and guidance. 2.5.2.7. Contributing to the provision of best value services within a changing and challenging environment. 2.5.2.8. Compiling statutory and statistical returns and grant claims to ensure that the client needs and financial resources are accurately identified. 2.5.3. Develop and maintain good working arrangements with service managers, senior staff and outside bodies to ensure efficient and effective corporate working. 2.5.4. Provide financial support to major projects, developments and initiatives including option appraisal techniques, financial analysis, affordability levels and methods of funding, representing the client as required on multi-disciplinary teams. 2.5.5. Represent senior management where appropriate at service and corporate working groups, project teams and national associations, etc. 2.5.6. Supervise and direct the activities of assistant accountants, administrative staff and Modern Apprentices, through preparation and monitoring of annual work plans/key objectives, managing performance to deliver effective outcomes and developing individual skills and expertise. 2.5.7. Prepare corporate and committee monitoring reports in the approved format. 2.5.8. Monitor the capital programme and prepare reports on capital expenditure patterns and the performance of the capital programme against approved plans. 2.5.9. Provide advice and guidance to managers and staff on budgetary control and financial information systems, ensuring robust, well-documented procedures are in place. 2.5.10. Prepare and provide formal training and guidance to Senior Managers and budget holders. 2.5.11. Working closely with the Finance Manager, prepare the Annual Statutory Accounts of the Council and related support documentation in accordance with accounting standards and legislative requirements. Liaise with controls and reconciliations staff on the effective reconciliation of all expenditure, revenue and suspense accounts. 2.5.12. Maintain awareness of and proactively report on issues which may impact on local government finances. 2.5.13. Undertake research into government grant funding mechanisms and other external sources. Prepare briefing papers and supporting analysis for the Chief Officer (Finance), senior officers of the Council and Elected Members to support decision making. 2.5.14. Provide a VAT service to the Council ensuring the proper treatment of VAT transactions and maintenance of VAT procedures and records. 2.5.15. Provide financial management and accounting support for council tax, general revenue grant, non-domestic rates and other corporate funds managed by Finance. Page 117 of 220
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2.5.16. Maintain and update the Service’s performance management framework including preparing, collating, and reporting performance and required actions against key indicators and service objectives. 2.5.17. Ensure ALEO’s compliance with the Council’s approved financial governance arrangements in accordance with our requirement to follow the public pound, reporting periodically to the Council. 2.5.18. Support Board Director or Council representative responsibilities through reviewing strategic and financial plans to ensure consistency with Council aims, objectives, budgetary provision and to ensure external bodies have robust and sustainable business plans. 2.5.19. Ensure accuracy of ALEOs statutory accounts, necessary for satisfying the Council’s statutory responsibility regarding entities’ financial statements in accordance with relevant timescales. 2.5.20. Appraise the financial performance of companies and other bodies who work to conduct business with the Council. 2.5.21. Prepare detailed corporate capital planning and expenditure programmes in conjunction with other senior officers in the Council and the strategic capital delivery group, policy priorities and available capital resources and in accordance with the capital investment strategy. 2.5.22. Manage the effective monitoring of capital programmes and prepare reports on capital expenditure patterns and the performance of programmes against approved plans. 2.5.23. Maintain the Council’s fixed asset register and capital accounting requirements. 2.6. Controls and Reconciliations 2.6.1. Ensure the effective on-going control and reconciliation of Council bank accounts and suspense accounts, Debtors, Creditors, and Payroll Systems, and ensure all payovers (PAYE etc.) and submission of returns are made within deadlines. 2.6.2. Oversee the daily control and reconciliation of all Council income and ensure robust procedures are in place for corporate Cash Receipting and the Municipal Bank. 2.7. Rent Income Team 2.7.1. Oversee the effective control of rent income including reconciliation of the bank account and direct debit compliance. 2.7.2. Plan and action rent assessments as part of the overall control of rent. 2.8. Revenues and Benefits 2.8.1. Under the remit of the Section 95 officer the Revenue and Benefits teams have the responsibility for the effective control of administering, processing and maintaining revenue and benefit transactions and systems. This includes for example Council Tax, Non Domestic Rates, Housing Benefits, Council Tax Reduction Scheme Page 118 of 220
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/NL Date 22/11/23 North Lanarkshire Properties LLP Refinancing – Update From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 Executive Summary North Lanarkshire Properties (NLP) LLP loan facility agreement with Barclays Bank ceased on 31 October 2023 and a new funding arrangement required to be put in place to fund the remaining balance of circa £33m. A report was presented to Finance and Resources Committee on 13th September 2023 confirming the appointment of Barclays Bank as the lender for the next 5 years, providing details of their original offer. Due to increasing interest rates, however, a briefing note was issued advising NLP Management Committee members of the terms of a subsequently re- modelled offer which had been negotiated given the rate increases. On 27th October 2023 the final loan terms were approved by NLP Management Committee and the loan documents were approved and signed on 31st October 2023 concluding the refinancing arrangement. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledges the loan terms as approved by NLP Management Committee; (2) Acknowledges the conclusion of the refinancing arrangement. 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 Programme of Work Statutory / corporate / service requirement Item 7 Page 119 of 220
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1. Background 1.1. Following the decision by the Council in June 2012 to externalise its commercial property portfolio, 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 commitment period, with a 25-year repayment profile. This agreement terminated on 31st October 2023 and as such NLP was required to refinance the residual balance of £33m. 1.2. In June 2023 NLP Management Committee considered an options appraisal report outlining the initial terms received from 3 prospective lenders and approved Barclays Bank as the preferred lender for the next 5 years. 1.3. Negotiations between NLP and Barclays Bank took place over the summer months and concluded in October 2023. 2. Report 2.1 Finance and Resources Committee were advised in September that as a result of increasing interest rates the NLP Management Committee had approved the use of up to £3.4m cash reserves to reduce the overall borrowing requirement. This ensured payments would remain affordable in terms of the company’s current trading position and ensure the covenants set by Barclays were met. 2.2 The final loan terms agreed are as follows: • A sum of £2.939m was paid to Barclays Bank as an up-front payment to reduce the loan value to £30m with a 25 year repayment profile. • £25m of this £30m committed to a fixed rate of 6.20% for a 5 year period. • The remaining £5m borrowing will attract a variable rate equal to the SONIA (Sterling Overnight Index Average) reference rate. • The loan repayments will include an annual capital reduction of £0.500m. 2.3 The 5-year fixed rate term includes the option to extend for 2 years. However, the 1- year extension must be agreed 12 months from the commencement date of the loan i.e 31st October 2024 and the 2nd year extension would require to be agreed by 31st October 2025. 2.4 In March 2023 this Committee approved the continuation of the 80% guarantee provided from North Lanarkshire Council to NLP. The formal approval for this was signed by the Chief Officer (Legal and Democratic). 2.5 The Facility Agreement and the Council Guarantee Confirmation were signed on 31st October 2023 which concluded the refinancing arrangement. 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. Page 120 of 220
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4. Supporting documentation N/A Elaine Kemp Chief Officer (Finance) Page 121 of 220
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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. The most advantageous loan terms have been accepted to ensure loan repayments remain affordable in light of current operating conditions. The 80% loan guarantee provided by the Council will continue. This would only be required if NLP were unable to meet a monthly repayment however the forecast trading and reserves positions of the company, coupled with robust financial oversight and monitoring by the council’s Finance team under their Service Level Agreement with NLP minimise the likelihood of this risk materialising. 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? There were legal considerations and obligations on NLP in finalising the terms of the loan agreement with Barclays Bank plc and NLP procured external legal advice from Shepherd and Wedderburn LLP to advise NLP during the final negotiations and execution of the loan agreement. Page 122 of 220
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The Council also procured external specialist legal advice to provide guidance as required in relation to its position as guarantor. 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)? 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 was in place for the refinancing activity 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 Page 123 of 220
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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 ☒ Page 124 of 220
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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 22/11/23 Revenue Monitoring Report Council Summary 1 April 2023 to 15 September 2023 From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 07939 280601 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 2024. 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 23 February 2023. Following notification from Scottish Government of further funding made available to local authorities the budget has been revised to £941.227m. A surplus of £13.167m against this budget is currently projected, which includes a net one-off financial benefit of £9.279m following a recent review of the medium-term forecast loan charges and interest on revenue balances to reflect the impact of capital programme profiles, higher interest rates, previous one-off debt re-profiling and forecast use of balances. However, this review also highlights a forecast net overspend of £5.221m and £4.509m for financial years 2025/26 and 2026/27, respectively. Therefore, it is proposed that the 2023/24 underspend of £9.279m is earmarked as a one-off solution, to help smooth the impact of such variances in the coming years. This position will be kept under review to assess if any further one-off or recurring budget solutions are required for this purpose, and an update will be provided in a future monitoring report or reflected in a future Medium Term Financial Plan. The resulting underlying surplus against budget is £3.888m. The 2023/24 budget incorporates £7.486m of net savings. It is projected that £7.418m of the savings (99%) will be delivered within the financial year, with replacement savings of £0.068m identified to fully address the shortfall. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the financial position of the 2023/24 revenue budget; and (2) Otherwise endorse the contents of this report. The Plan for North Lanarkshire Priority All priorities Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning Item 8 Page 125 of 220
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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 At its meeting of 23 February 2023, the Council approved a General Fund Revenue Budget of £978.624m which included spend offset by ring fenced grants of £50.586m and capital grant funding in lieu of pay award funding of £7.726m. Additional funding has since been confirmed as part of the Scottish Government budget setting, including additional directed funding for Pay Awards, resulting in an overall total budget of £941.227m. 2.2 Following the budget setting in February the Council has an approved savings target of £7.486m for 2023/24. Further detail can be found in Section 2.9 below. 2.3 Table 1 below summarises the projected income and expenditure position, which illustrates a projected surplus of £13.167m, £9.279m of which will be used to manage future loan charges budget pressures. Annual Budget (£m) Projected Outturn (£m) P6 Variance (£m) P5 Variance (£m) P5 to P6 Movement (£m) Expenditure Total Expenditure 941.227 928.060 13.167 10.809 2.358 Income Aggregate External Finance 756.703 756.703 - - - Local Tax Collection 166.849 166.849 - - - Use of Balance 17.675 17.675 - - - Total Income 941.227 941.227 - - - Projected variance: Surplus/(Deficit) at 31 March 2024 - 13.167 13.167 10.809 2.358 Earmarked for future budget pressures (loan charges/IORB) - 9.279 9.279 9.279 - Surplus/(Deficit) at 31 March 2024 Post Reserve Allocation - 3.888 3.888 1.530 2.358 Table 1 Programme of Work Statutory / corporate / service requirement Page 126 of 220
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Analysis of Significant Variations 2.4 Table 2 below illustrates the projected outturn financial position of services: Service P6 Outturn (£m) P5 Outturn (£m) P5 to P6 Movement (£m) Education, Children and Families - On Budget - On Budget - Enterprise and Communities 1.023 Underspend 0.855 Underspend 0.168 Chief Executives and Other Corporate Services 2.865 Underspend 0.675 Underspend 2.190 Social Work (Non-Integrated) - On Budget - On Budget - Executive Services Total 3.888 Underspend 1.530 Underspend 2.358 Financing Costs 9.279 Underspend 9.279 Underspend - Total Projected Surplus/(Deficit) 13.167 Underspend 10.809 Underspend 2.358 Earmarked for future budget pressures (9.279) Overspend (9.279) Overspend - Total 3.888 Underspend 1.530 Underspend 2.358 Table 2 2.5 Education Children and Families is reporting a breakeven position overall. However, Committee should note the service is forecasting an underspend in employee costs of £3.256m, largely due to vacancy management, an underspend in payments to other bodies of £0.094m mainly within fostering/adoptions fees and allowances, and minor underspends within supplies and services and administration costs of £0.284m and £0.269m respectively. This is offset by an overspend of £1.025m transport costs arising from ASN cost pressures and increased market prices together with under- recoveries in income in relation to membership fees and admissions charges within Active & Creative Communities (£2.263m), reduced cross-boundary ASN placements within NLC educational settings (£0.296m), and reduced income from leadership courses (£0.200m). The Motherwell Concert Hall and Theatre has a full year subsidy budget of £0.249m which incorporates ticket sales including the annual pantomime, bar sales and wider management of the facility. It is currently anticipated that closure of Motherwell Concert Hall and Theatre will result in an overspend of £0.219m, due to a projected loss in income of £1.012m partly offset by reduced expenditure of £0.793m. The final overspend will be subject to the development of service operational plans, including the move of the pantomime to Ravenscraig. 2.6 Enterprise and Communities is reporting a projected underspend of £1.023m. This is primarily as a result of employee vacancy savings across the service of £3.144m, together with savings in property costs of £0.412m due to lower than anticipated waste disposal costs. This is partially offset by increased administration costs of £0.651m primarily as a result of increased consultancy costs, an under-recovery in income of £0.979m mainly due to reduced capital recharges and school meal income, increased transport costs of £0.378m due to increased fleet material costs, and £0.481m increased supplies and services costs mainly due to increased Fleet external hire costs and agency costs within waste. Page 127 of 220
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2.7 Chief Executives and Other Corporate Services is reporting a projected underspend of £2.865m. This is largely due to a projected underspend of £1.765m within employee costs as a result of vacancies, £0.894m underspend within supplies and services mainly due lower than budgeted cloud consumption costs within Business and Digital, an net over-recovery in income of £0.487m due to higher than anticipated income in relation to rent allowances/rent rebates overpayments and the volume discount received through the Mears contract, partly offset by under-recoveries within legal insurance, licensing and registrars. There is also a forecast overspend of £0.279m due to increased costs for the modern apprenticeship levy. 2.8 Following a review of the medium term forecast on loan charges and interest on revenue balances, a net financial benefit of £9.279m is anticipated within the current year. Whilst the review also highlighted a relatively immaterial benefit in 2024/25, material overspends of £5.221m and £4.509m are forecast for financial years 2025/26 and 2026/27, respectively. The modelling also shows a forecast overspend against current planned budgets into 2027/28. This position is primarily due to a net increase in the cost of loan charges for capital expenditure, partially offset by an over recovery on interest earned on revenue balances. The forecast contains some complex and highly volatile variables, therefore there are a number of reasons for such material variances including the impact of; higher interest rates on the cost of new borrowings, previously approved one-off debt re-profiling savings, and the increased forecast cost of use of balances in lieu of borrowing. Due the variability in the forecast variances it is proposed that the 2023/24 underspend is earmarked as a one-off solution, to help smooth the impact of the variances over the coming years. This position will be kept under review to assess if any further one-off or recurring budget solutions are required, and an update will be provided in a future monitoring report or will be considered as part of a future Medium Term Financial Plan. 2023/24 Budget Savings 2.9 As outlined in paragraph 2.2 above, the Council has approved net savings of £7.486m for 2023/24. Each Service reports on the achievement of their savings within the relevant service monitoring report. It is projected that £7.418m of savings (99%) will be achieved in the current year, with the in-year gap of £0.068m being fully mitigated by replacement savings. Earmarked Reserves and Change Management Fund 2.10 The Council’s audited annual accounts highlight a General Fund reserve balance of £249.872m. This balance includes £8.000m for the Contingency Fund, with a further £202.845m earmarked for specific future commitments including £28.115m 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. The remaining £39.027m of funds represent balances that were unallocated as at 31 March 2023. A total of £0.422m has subsequently been allocated including £0.110m for five additional posts to facilitate the transition to iTrent recruitment and £0.312m to support the management and co-ordination of the Programme of Work Boards within Business and Digital, resulting in a revised earmarked reserve balance of £203.267m, and unallocated balances of £38.605m. 2.11 A total of £88.289m of earmarked reserves is profiled for use in 2023/24 with a further £114.978m profiled for use in future years. It is currently projected that £85.827m of the 2023/24 earmarked reserves will be spent during this financial year with £117.278m anticipated to be required in future years and reserves of £0.161m deemed no longer required. A summary position is shown in Appendix 2. Taking into account the Page 128 of 220
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projected surplus of £3.888m together with a drawdown from the Capital Fund of £2.608m and earmarked reserves no longer required noted above, it is expected that at the end of the financial year the General Fund will include unallocated balances of £45.262m as detailed in Appendix 3. Risks and Uncertainty 2.12 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 and pay and non-pay inflation continuing at historically high levels, are some of the key factors that have the potential to impact upon the Council’s ability to provide quality services within approved budget levels. Housing Revenue Account 2.13 The Housing Revenue Account is currently projecting an overspend of £3.805m for the financial year. This is primarily as a result of anticipated increased loan charge costs of £3.847m, reflecting the impact of higher interest rates, an overspend of £2.875m in property costs due to increasing costs associated with repairs, void rent loss and grounds maintenance, and a projected under-recovery of £0.090m in fees and charges due to reduced court dues/fines and the temporary removal of charges for laundry facilities. This is partially offset by an underspend in employee costs of £2.000m mainly due to vacancies, an underspend of £0.500m as a result of lower than anticipated IT recharges, an underspend of £0.125m within administration costs due to decreased legal activity, and an over-recovery in rents of £0.347m due to increased mainstream rental income. It is anticipated that £0.070m of savings (100%) will be delivered by the year end. Adult Health and Social Care 2.14 Council Adult Health and Social Care provision to the Integration Joint Board (IJB) is projecting an underspend of £3.989m. This position is primarily due to a projected underspend in employee costs of £4.447m as a result of slippage in recruitment, lower than anticipated spend in the carers costs (£0.649m), ICT and other general supplies costs of £0.112m. This is partly offset by a projected overspend of £1.029m in payments to other bodies and transfer payments primarily in relation to the care at home sector who provide services to individuals via the SDS commissioning framework and a higher than anticipated spend of £0.174m on care of gardens. 3. Measures of success 3.1 The Council continues to operate within approved budgeted resources. 4. Supporting documentation 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 129 of 220
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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? 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 ☐ Page 130 of 220
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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? 5.10 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 ☐ Page 131 of 220
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LINE SERVICE ACCOUNT ANNUAL PROVISIONAL NO. BUDGET OUTTURN (1) (2) (3) (4) £ £ £ 1 Education & Families 504,478,378 504,478,378 - 2 Early Years 34,801,353 34,801,353 - 3 Primary Schools 142,413,510 142,413,510 - 4 Secondary Schools 134,720,415 134,720,415 - 5 Special Schools 22,926,000 22,926,000 - 6 Education & Families Service Delivery 88,128,569 89,621,163 (1,492,594 ) 7 Childrens Services Social Work 41,207,975 39,475,407 1,732,568 8 Justice Services 97,399 (177,034 ) 274,433 9 Active and Creative Communities 27,861,906 28,933,151 (1,071,245 ) 10 Employability 4,957,328 4,377,880 579,448 11 Community Learning 5,407,040 5,299,607 107,433 12 Tackling Poverty 1,956,883 2,086,926 (130,043 ) 13 Enterprise & Communities 152,881,720 151,858,225 1,023,495 14 Assets & Procurement 41,694,381 41,413,625 280,756 15 Trading Accounts (462,202 ) (252,111 ) (210,091 ) 16 Community Operations 88,819,673 88,617,241 202,432 17 Housing Management 5,652,817 5,425,212 227,605 18 Housing Property Services 8,585,905 8,587,518 (1,613 ) 19 Place 8,591,146 8,066,740 524,406 20 Chief Executives & Other Corporate Services 93,435,993 90,571,027 2,864,966 21 Directorate & Support 412,144 348,180 63,964 22 Finance 45,118,514 44,586,645 531,869 23 Audit & Risk 614,959 581,812 33,147 24 Legal & Democratic 2,624,054 2,721,063 (97,009 ) 25 Business & Digital 22,301,722 20,970,712 1,331,010 26 People Resources 8,582,504 8,439,741 142,763 27 Strategic Communication and Engagement 5,342,667 5,199,892 142,775 28 Other Corporate Services (4,301,622 ) (5,018,069 ) 716,447 29 Joint Boards 12,741,051 12,741,051 - 30 Social Work (non Integrated) 193,862,112 193,862,112 - 31 GENERAL FUND SERVICES 944,658,203 940,769,742 3,888,461 32 FINANCING COSTS (44,490,145 ) (53,769,145 ) 9,279,000 33 Reversal of Capital Charge (77,069,073 ) (77,069,073 ) - 34 Loan Charges and Interest on Revenue Balances 32,578,928 23,299,928 9,279,000 35 OTHER BUDGETARY ISSUES 41,059,407 41,059,407 - 36 Assumptions not yet Realised 41,059,407 41,059,407 - 37 Drawdown from Reserves - - - 38 TOTAL EXPENDITURE 941,227,465 928,060,004 13,167,461 39 SOURCES OF FUNDING 941,227,465 941,227,465 - 40 Aggregate External Finance 756,703,000 756,703,000 - 41 Council Tax 166,849,465 166,849,465 - 42 Use of balances 17,675,000 17,675,000 - 43 (SURPLUS) / DEFICIT - (13,167,461 ) 13,167,461 44 Earmarked for Future Budget Pressures (loan charges/ IORB) - 9,279,000 (9,279,000 ) 45 (SURPLUS) / DEFICIT - (3,888,461 ) 3,888,461 46 HOUSING REVENUE ACCOUNT (SURPLUS) / DEFICIT - 3,805,000 (3,805,000 ) 47 ADULT HEALTH AND SOCIAL CARE (SURPLUS) /DEFICIT - (3,989,272 ) 3,989,272 Appendix 1 NORTH LANARKSHIRE COUNCIL SUMMARY BY DIVISION FOR PERIOD ENDING 15 September 2023 (PERIOD 6) PROVISIONAL VARIANCES Page 132 of 220
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Appendix 2 Total Total Opening Reserve Balances In-Year Adjustment Revised Reserve Balance 2023/24 Revised Earmarked Reserve 23/24 Projected Spend Anticipated Year End Balance Anticipated Future Year Use No Longer Required Profiled for Future Years Anticipated Future Year Use No Longer Required No Longer Required £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Change Management Fund 28,115 - 28,115 83 83 - - - 28,032 28,032 - - Earmarked & One Off Resources Schools Future Contractual Obligations 56,684 - 56,684 - - - - - 56,684 56,684 - - 2023/24 - 2024/25 Budget One-off Use of Balances 21,075 - 21,075 17,675 17,675 - - - 3,400 3,400 - - Strategic Workforce Planning 13,000 - 13,000 13,000 13,000 - - - - - - - Temporary Teachers 10,928 - 10,928 9,928 9,928 - - - 1,000 1,000 - - Temporary Accommodation 9,288 - 9,288 - - - - - 9,288 9,288 - - Early Years & Childcare Expansion 7,312 - 7,312 5,163 5,163 - - - 2,149 2,149 - - Refugee Resettlement Programmes 5,699 - 5,699 2,025 2,025 - - - 3,674 3,674 - - Loans Charges - one-off mitigation 5,000 - 5,000 - - - - - 5,000 5,000 - - Non-Pay Inflation Mitigation 4,902 - 4,902 4,902 4,902 - - - - - - - Unmanaged burdens within Education, Children & Families 4,755 - 4,755 4,201 4,201 - - - 554 554 - - Other E&C Service developments 4,184 - 4,184 3,484 2,000 1,484 1,484 - 700 700 - - Pupil Equity Fund 3,851 - 3,851 3,851 3,851 - - - - - - - Balances held by Schools under Devolved School Management 3,724 - 3,724 3,724 3,724 - - - - - - - Economic Recovery 3,554 - 3,554 3,554 3,554 - - - - - - - Whole Family Wellbeing 2,584 - 2,584 584 584 - - - 2,000 2,000 - - Winter Reserve 1,500 - 1,500 1,500 1,500 - - - - - - - Business Gateway and Business Recovery 1,379 - 1,379 899 899 - - - 480 480 - - Rapid Rehousing 1,081 - 1,081 1,081 1,081 - - - - - - - Other Earmarked Funds 14,230 422 14,652 12,635 11,657 978 816 161 2,017 2,017 - 161 Earmarked & One Off Resources Total 174,730 422 175,152 88,206 85,744 2,462 2,300 161 86,946 86,946 - 161 Total Reserves 202,845 422 203,267 88,289 85,827 2,462 2,300 161 114,978 114,978 - 161 Contingency Reserve 8,000 - 8,000 Unallocated Balance 39,027 422- 38,605 General Fund Surplus at 31 March 2023 249,872 - 249,872 NORTH LANARKSHIRE COUNCIL ANTICIPATED COMMITMENTS AGAINST EARMARKED RESERVES AS AT 15 September 2023 (PERIOD 6) 2023/24 Future Years Page 133 of 220
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Appendix 3 £000 £000 Total Balance B/f per 2022/23 Annual Accounts 28,115 39,027 Approved commitments (422) 28,115 38,605 Period 6 reported variance 3,888 Earmarked Reserves no longer required 161 Total Balance 2023/24 before commitments 28,115 42,654 Known Commitments :- Revised one - off costs of approved savings (83) Draw down from Capital Fund 2,608 Total Balance 2023/24 28,032 45,262 Known Commitments :- Revised one - off costs of approved savings (7,688) Estimated future Capital Fund Drawdown to 2024/25 3,364 Forecast Balance (7,688) 48,626 NORTH LANARKSHIRE COUNCIL AVAILABILITY OF GENERAL FUND BALANCES AS AT 15 September 2023 (PERIOD 6) Change Management Fund Unallocated General Fund Page 134 of 220
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/GT/RM Date 22/11/23 Capital Programme 2023/24 Monitoring Report From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 07989 280601 Executive Summary The purpose of the report is to provide an update on the 2023/24 resources and expenditure for the Council's Strategic Capital Investment Programme. The report also shows the 2023/24 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. It is currently anticipated that the General Fund programme will have a projected programme variance during 2023/24 of £15.499m as the expenditure profile has been reviewed across the multi-year programme for live projects, and also projects in development. With the HRA programme, it is currently anticipated that there will be a programme variance of £6.664m primarily due to acceleration of specific projects in the New Build programme previously scheduled to complete in 2024/25 and increase in the Buy Back programme as the service anticipates the purchase of additional properties in the current financial year and increased average property prices and associated repairs costs. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledges the financial position of the Council’s Strategic Capital Investment Programme as at 15 September 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 Programme of Work Statutory / corporate / service requirement Item 9 Page 135 of 220
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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 2023/2024 to 2025/2026 approved in March 2023 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 2023/2024 General Services Capital Programme is £171.960m with a £125.952m investment programme in relation to the Housing Revenue Account. The budget reflects the approved budget in March 2023 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 2023/24 budget by Service Programme and associated approved budget movements. 2. Report 2.1 Overall Council Strategic Capital Investment Programme 2.1.1 The overall Council Strategic Capital Investment programme for 2023/24 and the projected outturn to the 31 March 2024 is summarised in Table 1 as follows: Page 136 of 220
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2.1.2 On a budgeted programme of £297.912m expenditure is anticipated to be £8.835m lower than current programme 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 2024 is detailed in Appendix 2 and summarised below. Community Capital Investment Programme Summary 2023/24 Current Programme £000s Projected Outturn £000s Outturn Variance £000s Enterprise & Communities 154,265 140,634 13,631 Chief Executives 15,507 13,639 1,868 Adult Health & Social Care 2,188 2,188 0 General Services: Total Capital Investment 171,960 156,461 15,499 General Services Resources: General Fund External Grants & Contributions 2023/24 47,575 47,575 0 External Grants & Contributions b/f 2022/23 16,466 16,466 0 External Grants & Contributions Unapplied 0 0 0 Net External Grants & Contributions 64,041 64,041 0 Capital Receipts 1,000 4,364 3,364 Capital Receipts -Transfer to Capital Fund 0 (3,364) (3,364) CFCR 664 664 0 General Services: Total Resources 65,705 65,705 0 General Services : Borrowing Requirement 106,255 90,756 (15,499) HRA : Total Capital Investment 125,952 132,616 (6,664) HRA Resources: Net External Grants & Contributions 19,945 29,023 9,078 Capital Receipts 0 136 136 CFCR 27,146 19,427 (7,719) HRA : Total Resources 47,091 48,586 1,495 HRA : Borrowing Requirement 78,861 84,030 5,169 Summary Total Council : Capital Investment 297,912 289,077 8,835 Total Council : Resources 112,796 114,291 1,495 Total Council : Borrowing Requirement 185,116 174,786 (10,330) Page 137 of 220
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General Services Total Resources 2.2.2 The revised programme is £171.960m incorporating the recent decision of the Housing Committee to reprofile £55.049m to future years of the capital planning period. Total resources available to meet the current programme are forecast to be £65.705m, resulting in a borrowing requirement of £106.255m. 2.2.3 In 2023/24 net external grants and contributions of £64.041m will be utilised. This capital resource primarily includes the Scottish Government (SG) General Capital Grants receivable of £24.152m and other specific SG Grants including City Deal (£3.000m), Vacant and Derelict Land Fund (VDLF, £1.841m), the Place Based Investment Programme (PBIP, £1.698m), and Cycling, Walking and Safer Streets (CWSS, £2.180m) and also NHS developer contributions of £4.933m. In addition, capital grants received in 2022/23 have been added to the programme to match expenditure in 2023/24 including £8.730m for Levelling Up Fund (LUF), £3.291m for VDLF, £2.283m for PBIP, £1.235m for Regeneration Capital Grant Fund, £0.289m for Shared Prosperity Fund, £0.272m for CO2 Monitors and £0.230m for Vacant and Derelict Land Investment Programme. Whilst at Period 6 it is anticipated that all capital grant funding will be utilised in 2023/24, this will be monitored closely as the year progresses. 2.2.4 Receipts from the sale of assets are currently projected to be £4.364m, which is £3.364m 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 £171.960m. At Period 6, the outturn spend is anticipated to be £15.499m lower than current programme. This is primarily due to the outcome of updated programming projections which have affected several investment themes. 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 is projecting outturn expenditure of £140.634m, which is a £13.631m variance from current programme. Within Town and Community Hub theme there is further reprofiling of £4.347m for the St Kevins Hub project linked to additional site monitoring required in support of the site planning application. In addition, across the service there are a number of variances arising from the multi- year programme of activity across Assets and Procurement with Outdoor Education forecasting a variance of £2.939m as a result of site investigation and feasibility studies in respect of four pitch projects now expected to span into the 2024/25 financial year and ASN Rationalisation forecasting a variance of £2.802m with the Edward Lawson Centre project now likely to span into the 2024/25 financial year. Office Rationalisation is forecasting a variance of £2.223m where Civic Centre works are currently being reviewed and progress continues to be made on the closure of Fleming House and the 1140 Early Learning theme is forecasting a variance of £0.434m as the Services is experiencing difficulties with the current contractor and actively seeking a new solution to deliver the Heathery Park project. These are partially offset by in-year programme variances in Maintaining Existing Assets which is forecasting additional expenditure of £3.296m, mainly as a result of Page 138 of 220
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accelerated re-roofing expenditure on sports centres and schools. Additional costs were incurred in removing asbestos from Tryst Sports Centre as well as other internal works. Re-wiring projects were also accelerated to minimise disruption within schools and maximise the holiday break to complete the works. Carbon Management is now forecasting a programme variance of £1.182m due the Council’s commitment to achieve net zero carbon emissions under the Non-Domestic Energy Efficiency (NDEE) project. Programme variances are also forecast for Leisure Development of £0.248m across a number of upgrades and Demolitions of £0.136m due to acceleration in order to dispose of surplus properties as efficiently as possible. Cemeteries are forecasting a variance of £4.163m mainly in relation to the replacement cemetery at Pather which is now anticipated to fall largely into the 2024/25 financial year. Parks Master Plan theme is also reporting a variance of £1.541m as a result of delays in the announcement from the Scottish Government for the Green Growth Accelerator project and it is now anticipated that the contingency element of the project will not be required until the 2024/25 financial year. To ensure available resources more closely reflect operational activity across themes, requests to reprofile budget to future years of the programme will be presented for approval at a future meeting of the SCDG and will be incorporated in future reports. Committed expenditure of £96.771m is currently reported, which represents 68.81% of the targeted expenditure, and actual expenditure is £56.218m. 2.2.7 Chief Executives is projecting total expenditure of £13.639m, which is a £1.868m variance from current programme. This is primarily attributable to the prioritisation of projects which will complete prior to 31 March 2024 within Digitisation & Innovation (£1.425m) and Strategic Communication and Engagement (£0.343m). Committed expenditure of £5.942m is currently reported, which represents 43.57% of the targeted expenditure, and actual expenditure is £3.113m. 2.2.8 Adult Health & Social Care is projecting outturn expenditure of £2.188m, which is on target with current programme. Committed expenditure of £0.861m is currently reported, which represents 39.35% of the targeted expenditure, and actual expenditure is £0.707m. 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 15 September 2023 is provided at Appendix 3. Total expenditure of £132.616m is forecast for 2023/24 which is an increase on programmed expenditure of £6.664m. This is due to a £2.253m acceleration in the New Build programme at Lorne Place, Coatbridge previously scheduled to complete in 2024/25 and a £4.553m increase in the Buy Back programme as the service anticipates the purchase of additional properties in the current financial year and increased average property prices and associated repairs costs. The in-year variance is supported by longer-term financial planning assumptions within the HRA. Committed expenditure of £130.688m is currently reported, which represents 98.50% of the targeted expenditure, and actual expenditure is £54.356m. 2.4 Service Re-profiling Requests 2.4.1 As mentioned in paragraph 2.2.6, to ensure available resources more closely reflect operational activity across themes, requests within the Enterprise and Communities service to reprofile budget to future years of the programme will be required and these Page 139 of 220
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will be presented for approval at a future meeting 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 2023/24 budget movements Appendix 2 General Services Capital Investment Programme Summary 2023/24 Appendix 3 HRA Capital Investment Programme Summary 2023/24 Elaine Kemp Chief Officer (Finance) Page 140 of 220
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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? 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 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 ☐ Page 141 of 220
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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? Despite the updated programme phasing approved at Policy and Strategy Committee on 16 March 2023 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 142 of 220
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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 ☐ Page 143 of 220
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2023/24 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 23/24 Opening programme approved Policy& Strategy Committee 16 March '23 190,795 14,346 2,200 0 207,341 130,990 338,331 22/23 Overs/Unders Carry Forward 20,366 616 (12) 0 20,970 (5,598) 15,372 23/24 Budget adjustments approved by SCDG 5,416 746 0 0 6,162 0 6,162 23/24 Budget adjustments approved by Housing Committee (54,849) (200) 0 0 (55,049) 0 (55,049) Increase/(Decrease) in Externally Funded Projects (4,518) (1) 0 0 (4,519) 560 (3,959) Increase/(Decrease) in Council Funded Projects (3,609) 0 0 0 (3,609) 0 (3,609) CFCR 664 0 0 0 664 0 664 Revised Capital Programme 2023/24 154,265 15,507 2,188 0 171,960 125,952 297,912 Page 144 of 220
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General Services Capital Investment Programme Summary 2023/24 - as at 31 March 2024 Appendix 2 Investment Current Programme 2023/24 £000s Projected Outturn 2023/24 £000s Outturn Variance 2023/24 £000s Committed Expenditure @ P6 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P6 £000s Enterprise & Communities 154,265 140,634 13,631 96,771 68.81% 56,218 Chief Executives 15,507 13,639 1,868 5,942 43.57% 3,113 Adult Health & Social Care 2,188 2,188 0 861 39.35% 707 Total General Services Investment 171,960 156,461 15,499 103,574 66.20% 60,038 General Services Resources; External Grants & Contributions 2023/24 47,575 47,575 0 External Grants & Contributions b/f 2022/23 16,466 16,466 0 External Grants & Contributions Unapplied cfwd to 2024/25 0 0 0 Net External Grants & Contributions 64,041 64,041 0 CFCR 664 664 0 Capital Receipts 1,000 4,364 3,364 Capital Receipts - Transfer to Capital Fund 0 (3,364) (3,364) Total Resources 65,705 65,705 0 Borrowing Requirement: General Services 106,255 90,756 (15,499) Total General Services Borrowing Requirement 106,255 90,756 (15,499) Total Resources incl Borrowing Requirement 171,960 156,461 (15,499) Page 145 of 220
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HRA Capital Investment Programme Summary 2023/24 - as at 31 March 2024 Appendix 3 Investment Current Programme 2023/24 £000s Projected Outturn 2023/24 £000s Outturn Variance 2023/24 £000s Committed Expenditure @ P6 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P6 £000s Mainstream Programme 55,907 55,765 142 55,650 99.79% 23,747 New Build Programme 59,995 62,248 (2,253) 62,248 100.00% 25,621 Council Buy Back Scheme 10,050 14,603 (4,553) 12,790 88.31% 4,988 Total HRA Investment 125,952 132,616 (6,664) 130,688 98.50% 54,356 HRA Capital Resources; External Grants & Contributions 19,945 29,023 9,078 External Grants & Contributions Unapplied 0 0 0 Net External Grants & Contributions 19,945 29,023 9,078 CFCR 27,146 19,427 (7,719) Capital Receipts 0 136 136 Total Resources 47,091 48,586 1,495 Borrowing Requirement: HRA - Mainstream 32,871 32,852 (19) HRA - New Build 40,236 41,966 1,730 HRA - Buyback Scheme 5,754 9,212 3,458 Total Borrowing Requirement 78,861 84,030 5,169 Total Resources incl Borrowing Requirement 125,952 132,616 6,664 Page 146 of 220
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North Lanarkshire Council Report Finance & Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref NL/PF Date 22/11/23 Revenue Budget Monitoring Report; Chief Executive’s Service 01.04.23 – 15.09.23 (Period 6) 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 15 September 2023 (Period 6). 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 Service is currently forecasting a year end underspend of £2.865m, predominately as a result of underspends within ICT contracts and employee vacancies coupled with an over recovery of income. 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 Programme of Work Statutory / corporate / service requirement Item 10 Page 147 of 220
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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. There has been an in-year transfer from Enterprise and Communities of £0.238m in relation to the Customer Service Hubs. Therefore, the revised budget for the Chief Executive’s is £93.436m. 2.1.2 The overall projected outturn is an underspend of £2.865m. As detailed in Appendix 2 there are projected underspends within employee costs and ICT contracts offset by overspends in relation to the Apprenticeship Levy and an under recovery of income. 2.1.3 As at Period 6 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. 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 £1.765m within Employee costs as a result of actual and projected vacancies. 2.2.2 An underspend of £0.894m is projected within supplies and services. Business and Digital are reporting a net underspend of £871K which represents the continued savings resulting from current usage levels of the cloud-based systems offsetting an approved overspend on the investment model spend. This net underspend is partially offset by overspends in various other lines across the service. 2.2.3 Transport & Plant is projected to underspend by £0.036m as a result of reduced travel claims following the implementation of hybrid working and within Taxi MOT/plating budgets. 2.2.4 An overspend of £0.279m is currently projected within Other Expenditure due to increased costs for the Apprenticeship Levy. 2.2.5 The projected outturn for income is an over-recovery of £0.487m due to higher than anticipated income in relation to rent allowances / rent rebates overpayments and increased income against budget on the volume discount received through the Mears Page 148 of 220
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contract, which is in line with previous years, offset by under-recoveries within legal insurance, licensing and registrars. 2.2.6 There are various minor variances across other budget areas resulting in the Service forecasting a favourable position of £2.865m 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. During the course of the year additional funding of £0.312m has been identified to support the management and co-ordination of the Programme of Work Boards within Business & Digital, resulting in a revised balance of £5.083m. This has been profiled as £4.744m required in 2023/24 with the balance of £0.339m in future years. 2.3.2 It is anticipated that £4.026m of the reserves balances will be utilised in 2023/24. A total of £0.566m will be required for future years with a balance of £0.151m of reserves to be returned. Details of the Service’s earmarked funds are provided in Appendix 4. 2.3.3 The Service has incurred £0.225m 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 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. 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) Page 149 of 220
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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 in 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 ☐ Page 150 of 220
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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 Finance 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 151 of 220
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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 ☐ Page 152 of 220
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APPENDIX 1 [1] [2] [3] [5] [6] [7] DIRECTORATE & SUPPORT 412,144 348,180 63,964 FAV 15.5% 0 Underspend in Employee costs primarily due to implementation of Support Services Review. FINANCIAL SOLUTIONS 45,118,514 44,586,645 531,869 FAV 1.2% 413,097 An over-recovery in income from Rent Allowances and Rent Rebate overpayments plus underspends associated with vacancies, ICT and travel offset by increased postages and agency fees. AUDIT & RISK 614,959 581,812 33,147 FAV 5.4% 0 Underspends within Employee costs as a result of vacancies. LEGAL & DEMOCRATIC SOLUTIONS 2,624,054 2,721,063 (97,009) ADV (3.7%) 61,283 An under-recovery in income in relation to insurance, licensing and registrars along with overspends within building and printing costs are offset by underspends within employee and admin costs. BUSINESS & DIGITAL 22,301,722 20,970,712 1,331,010 FAV 6.0% 808,801 Underspends within ICT contracts linked to the timing of costs associated with cloud based systems, vacancies and the over- recovery of income associated with the recycling of IT Equipment offset by costs in relation to the Investment Model and other services. PEOPLE RESOURCES 8,582,504 8,439,741 142,763 FAV 1.7% 126,602 Net underspend associated with MA programme plus underspends within Employee costs and an over-recovery of income for services provided to Midlothian Council. STRATEGIC COMMUNICATIONS 5,342,667 5,199,892 142,775 FAV 2.7% 63,344 Vacancies across the service, planned underspends within projects, advertising and Kings Coronation budgets. OTHER COPORATE SERVICES (4,301,622) (5,018,069) 716,447 FAV (16.7%) 716,447 Over-recovery of the Mears volume discount as well as trading surpluses within building cleaning offset by a projected net overspend relating to the Apprenticeship Levy. JOINT BOARDS 12,741,051 12,741,051 0 0.0% 0 NET EXPENDITURE 93,435,993 90,571,027 2,864,966 FAV 3.1% 2,189,574 [4] PERIOD MOVEMENT ANALYSIS NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Objective Analysis Period 06 (01 April 2023 - 15 September 2023) A - Chief Executives Service DIVISION OF SERVICE ANNUAL BUDGET PROJECTED OUT-TURN PROJECTED OUT- TURN VARIANCE % Page 153 of 220
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APPENDIX 2 [1] [2] [3] [5] [6] [7] EMPLOYEE COSTS 44,344,016 42,578,770 1,765,246 FAV 4.0% 1,180,289 Underspends due to vacancies and the associated savings in pension costs across all services. PROPERTY COSTS 2,159,347 2,198,206 (38,859) ADV (1.8%) 132 Minor variance SUPPLIES & SERVICES 10,731,942 9,838,281 893,661 FAV 8.3% 529,043 Underspend within B&D represents continued savings from current usage levels of cloud based systems offsetting an approved overspend on the investment model and various other lines across the service. TRANSPORT & PLANT 167,393 131,869 35,524 FAV 21.2% 33,123 Hybrid working has resulted in reduced travel claims plus underspends within Taxi MOT and plating ADMINISTRATION COSTS 6,816,405 6,845,213 (28,808) ADV (0.4%) 49,481 Minor variance PAYMENTS TO OTHER BODIES 17,076,930 17,046,811 30,119 FAV 0.2% 59,902 Minor variance 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 4,149,379 (279,085) ADV (7.2%) (245,730) Overspend in relation to the Apprenticeship Levy partially offset by historic underspends within miscellaneous costs. TOTAL EXPENDITURE 196,138,313 193,760,515 2,377,798 FAV 1.2% 1,606,241 INCOME (102,702,320) (103,189,488) 487,168 FAV (0.5%) 583,333 An over-recovery of £0.487m due to higher than anticipated income in realtion to rent allowances / rent rebates overpayments and increased income against budget on the volume discount received through the Mears contract, which is in line with previous years, offset by under- recoveries within legal insurance, licensing and registrars. NET EXPENDITURE 93,435,993 90,571,027 2,864,966 FAV 3.1% 2,189,574 Period 06 (01 April 2023 - 15 September 2023) A - Chief Executives Service CATEGORY ANNUAL BUDGET PROJECTED OUT-TURN PROJECTED OUT- TURN VARIANCE % [4] PERIOD MOVEMENT ANALYSIS Page 154 of 220
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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 9,859 8,629 1,230 FAV 12.5% 1,230 AGENCY FEES 81,542 95,086 (13,544) ADV (16.6%) 28,812 Recruitment agency costs which are being offset by vacancies within Employee Costs TOWN TWINNING 0 0 0 0.0% 0 CHILDRENS PANEL 25,035 17,035 8,000 FAV 32.0% 8,000 Lower than anticipated costs associated with training COSLA ANNUAL LEVY 195,000 193,434 1,566 FAV 0.8% 1,566 COMMUNITY COUNCIL GRANTS 158,629 158,629 0 0.0% 0 GRANTS TO ORGANISATIONS 787,505 769,637 17,868 FAV 2.3% 868 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 20,000 15,000 FAV 42.9% 15,000 Anticipated costs within Council Tax Collection lower than budget 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 17,606,319 17,576,200 30,120 FAV 0.2% 55,476 [4] PROJECTED OUT- TURN VARIANCE PROJECTED OUT- TURN % PERIOD MOVEMENT NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Payments to Other Bodies Period 06 (01 April 2023 - 15 September 2023) A - Chief Executives Service CATEGORY ANNUAL BUDGET ANALYSIS Page 155 of 220
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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 310,593 310,593 132,006 310,593 100.0% 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 86,000 (43,000) 43,000 0 21,500 50.0% 21,500 0 21,500 1fte successfully appointed from Summer intake, 3fte will be readvertised as part of the Winter intake. Scottish Welfare Fund 1,518,000 1,518,000 0 1,518,000 100.0% 0 0 1,518,000 Digitisation 771,381 0 771,381 223,030 771,381 100.0% 0 0 771,381 One-off resourcing following insourcing of CLNL 18,557 0 18,557 11,847 11,847 63.8% 0 6,710 11,847 Balance has been idenitifed as no longer being required as staff member has resigned from post. One-off resourcing following insourcing of CLNL (ICT Development) 84,704 0 84,704 24,997 24,997 29.5% 0 59,707 24,997 Balance no longer required as ICT Development has been completed B&D - NLC10 posts 99,132 0 99,132 32,942 80,456 81.2% 18,676 0 80,456 Balance required in 2024/25 to support ongoing commitments. B&D - NLC 12 post 312,055 (296,452) 15,603 0 15,603 100.0% 0 0 15,603 Funding approved at Sept WSCG, assume that post will be filled from January. Balance required in 2024/25 Learning Academy 100,000 0 100,000 0 100,000 100.0% 0 0 100,000 Construction Academy 300,000 0 300,000 0 300,000 100.0% 0 0 300,000 Resources 63,000 0 63,000 43,525 63,000 100.0% 0 0 63,000 One-off resourcing following insourcing of CLNL 109,608 0 109,608 41,021 109,608 100.0% 0 0 109,608 ESC Staffing 109,840 0 109,840 49,201 109,840 100.0% 0 0 109,840 CSH (NLC16 and NLC11 post) 141,616 0 141,616 55,642 137,600 97.2% 4,016 0 137,600 Recover NL - CSH extension of staff 172,521 0 172,521 76,470 76,092 44.1% 96,429 0 76,092 CSH Recover NL 2022/23 (Single Number) 489,218 0 489,218 30,038 63,430 13.0% 425,788 0 63,430 Cumbernauld Theatre 35,000 0 35,000 0 0 0.0% 0 35,000 0 The group had advised the service that this funding was not required. Recover NL Grants 172,294 0 172,294 0 172,294 100.0% 0 0 172,294 Cost of Living Grant 41,242 0 41,242 180 41,242 100.0% 0 0 41,242 Councillor Surgeries 50,000 0 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 5,083,321 (339,452) 4,743,869 819,459 4,026,043 84.9% 566,409 151,417 4,026,043 TOTAL 5,083,321 (339,452) 4,743,869 819,459 4,026,043 84.9% 566,409 151,417 4,026,043 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. Reprofile to Future Years No Longer Required Reserves Required In Year Commentary Regards Usage NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Status of Earmarked Reserves Period 06 (01 April 2023 - 15 September 2023) A - Chief Executives Service FINANCIAL YEAR - 2023/24 DESCRIPTION OF EARMARKED RESOURCE Reserve Allocation 2023/24 Profiled in Future Years Approved Reserve Total Spend to Date Projected Spend Page 156 of 220
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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 Period 06 (01 April 2023 - 15 September 2023) A - Chief Executives Service Page 157 of 220
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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 22/11/23 Chief Executive Service – Capital Monitoring Report 1 April to 15 September 2023 (Period 6) From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 Executive Summary This report highlights the financial performance and projected outturn of 2023/24 Chief Executive capital programme for the period ended 15 September 2023 (Period 6). In summary the Service has a total capital budget of £15.507m, comprising of £11.509m within Business and Digital and £3.998m within Strategic Communications and Engagement. This budget reflects the budget approved by the Policy and Strategy Committee in March 2023, balances carried forward from previous years and in-year adjustments. The Service is currently projecting an underspend of £1.868m at this stage of the financial year. Recommendations It is recommended that the Finance and Resources Committee: (1) Considers the financial position of the 2023/24 Chief Executive capital programme. 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 Programme of Work Statutory / corporate / service requirement Item 11 Page 159 of 220
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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 2023 to 15 September 2023 (Period 6). The report illustrates the projected outturn as at 31 March 2024, with major outturn variances highlighted and explained per the Council’s approved Financial Regulations. 1.2 The Council approved its Capital programme at Policy and Strategy Committee on 16 March 2023 with an allocated budget £14.345m for the current year. In addition, carry forwards from the previous year and in-year adjustments have resulted in a revised Capital Programme of £15.507m for the 2023/24 Financial Year as detailed in Appendix 1 of this report. 1.3 The Council’s approved Financial Regulations required the Chief Executive to remain within his 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, Executive Directors 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 Service is projecting an underspend of £1.868m for the financial year 2023/24 of the Capital Programme. Capital budgets and expenditure are summarised by Project/Theme in Appendix 1. 2.2 Analysis of Significant Variances 2.2.1 An explanation of variances within Business and Digital is detailed below: • Digitisation & Innovation The service is projecting an underspend of £1.425m as a result of prioritising projects which will complete prior to 31/03/2024. • End User Device (EUD) There are now delays associated with the Digital Classroom project due to building control issues resulting in a projected underspend of £0.100m. The service is also highlighting possible delays in the Interactive panels project due to late modifications to specification and will advise of changes in future reports. 2.2.2 Strategic Communications and Engagement are currently projecting an underspend of £0.343m due to prioritising projects which will be complete prior to 31/03/2023. The service has also highlighted that a number of tenders will be undertaken in the near future and members will be updated of any impact to the year-end position in future reports. 2.3 Management Action 2.3.1 The Service will closely monitor all activities to ensure available budgets are maximised whilst monitoring and actively managing the ongoing external challenges in delivery of projects. The Service will continue to review the programme with updates being provided to the SCDG and Committee. Page 160 of 220
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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 Appendix 1 Summary Expenditure by Project / Theme Elaine Kemp Chief Officer (Finance) Page 161 of 220
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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 ☐ Page 162 of 220
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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 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. 5.9.2 To minimise risk this report was prepared by Finance 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 163 of 220
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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 ☐ Page 164 of 220
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Appendix 1 Theme Budget £ Actual £ Committed £ Uncommitted £ Projected Outturn £ Outturn variance £ Digitisation & Innovation 7,820,059 2,527,152 4,055,473 2,339,586 6,395,059 1,425,000 Line of Business (LOB) System Portfolio 2,062,205 91,920 105,490 1,956,715 2,062,205 - End User Device (EUD) Refresh 1,627,007 - 106,105 1,420,902 1,527,007 100,000 TOTAL BUSINESS and DIGITAL 11,509,271 2,619,072 4,267,068 5,717,203 9,984,271 1,525,000 Community Board Project Investment Fund 3,998,054 493,555 1,295,761 2,359,500 3,655,261 342,793 TOTAL STRATEGIC COMMUNICATIONS and ENGAGEMENT 3,998,054 493,555 1,295,761 2,359,500 3,655,261 342,793 TOTAL CHIEF EXECUTIVES 15,507,325 3,112,628 5,562,829 8,076,703 13,639,532 1,867,793 YTD OUTTURN Chief Executives Capital Programme 2023/24 Summary Expenditure by Thematic Categories 1st April 2023 - 15th September 2023 (Period 6) Page 165 of 220
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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 22/11/23 Treasury Management Monitoring Report for quarter ended 30 September 2023 From Elaine Kemp, Chief Officer (Finance) E-mail mcnameer@northlan.gov.uk Telephone Ryan McNamee, Finance Manager 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 July 2023 to 30 September 2023 and compliance with the mandatory treasury and prudential indicators. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the Treasury Management Activity for the quarter ended 30 September 2023 including the 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 Programme of Work Statutory / corporate / service requirement Item 12 Page 167 of 220
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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 Council’s “Treasury Management Strategy 2023/2024 and Treasury and Prudential Indicators 2023/2024 to 2025/2026” was approved by Committee at its meeting on 1 March 2023. The Treasury activity undertaken in the second quarter of 2023/24 reflects the key requirements of the Council’s 2023/24 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 2023/24 investment strategy. 2. Report 2.1 Summary Position 2.1.1 The net overall borrowing position to 30 September 2023 is £855.6m, which is a decrease of £11.1m from the position at the 30 June 2023. 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 £893.5m, a reduction of £19.3m, which was primarily due to a repayment of PWLB debt of £14.3m, a reduction in lease payments under existing finance lease and PPP obligations of £2.0m falling due for repayment and a reduction in net temporary borrowing of £3.0m, due to £69.0m of new borrowing being offset by £72.0m falling due for repayment. 2.2.2 The Council’s approach to borrowing is in line with the approved strategy which aims to source long-term borrowing and take advantage of temporary (short-term) borrowing at attractive rates, where possible, as well as using 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. 2.2.3 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 2024. 2.2.4 The CIPFA Prudential Code stipulates that local authorities cannot borrow to invest primarily for financial return, deeming it imprudent to make investment or spending decisions which will increase the capital financing requirement resulting in new borrowing, unless it is directly and primarily related to the functions of the Council. The Council is compliant with this requirement. Members should note also that Page 168 of 220
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PWLB loans are no longer available to local authorities planning to buy investment assets primarily for yield. 2.2.5 Members will be aware interest rates have risen significantly over the past 2 years, increasing materially the cost of both short and long-term borrowing. In this quarter, the Bank of England base rate rose from 5.00% at the beginning of July to 5.25% at the end of the quarter, significantly higher than the 2.25% level at the end of September 2022. The rate was maintained following the September meeting of the Bank. It should be noted that the Council’s cost of short-term borrowing also continued to increase, with the rise in the base rate and short-dated market rates. The average rate on the Authority’s short-term loans at 30th September 2023 was 4.36%. 2.2.6 Gilt yields faced upward pressure since early April but fell towards the end of the period. On 30 September, the PWLB certainty rates for maturity loans were 5.26% for 10-year loans, 5.64% for 20-year loans and 5.43% for 50-year loans. The equivalent rates at 31st March 2023 were 4.33%, 4.70% and 4.41% respectively. 2.2.7 A new PWLB HRA rate, which is 0.4% below the certainty rate, has been made available from 15th June 2023. This is initially available for a period of one year, to borrow for Housing capital purposes or refinancing existing loans. In conjunction with our treasury advisors, we are continuing to review the requirements, to assess the borrowing opportunity for the Council. 2.3 Debt Restructuring 2.3.1 In conjunction with our Treasury advisors, we monitored the economic climate in relation to our financial targets and Treasury Management strategy, for the quarter under review. 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 continues 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. The rise in market interest rates increases the probability of LOBOs being called, however, no lender exercised their option during the quarter. 2.3.3 Further reports regarding future activity will be presented to Committee as appropriate. 2.4 Investments 2.4.1 Treasury management investments are those that arise from cash flows or treasury risk management activity, that results in balances that need to be invested, until the cash is required for use in the course of business. 2.4.2 At the end of the second quarter of 2023/24, the Council held total investments of £37.9m, which is a net decrease of £8.2m in cash and cash equivalents, primarily due to a £11.2m decrease in short-term investments, which reflects maturing temporary investments of approximately £397.8m and undertaking new short-term investments of £409.0m. See summary at Apprendix 1, column 6. Page 169 of 220
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2.4.3 At quarter end, the bank overdraft including cash in transit was £4.1m which is a net overdrawn position, a reduction of £3.0m compared to the position of £7.1m reported at the end of the previous quarter. The positive net cash movement primarily reflects a decrease in the value of BACS creditor payment runs compared with the previous period. The bank overdraft primarily represents amounts drawn on the account at the 30 September 2023 comprising £4.0m 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 £0.1m 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 2 August 2023, the Bank of England base rate increased from 5.00% to 5.25%. However, on 20 September the MPC voted, by a narrow margin, to maintain this rate with the reduction in the inflation rate, with core and services inflation figures playing a significant part in their decision. This stabilising of the rate over the period under review, resulted in short-dated cash rates rising commensurately, with rates ranging between 4.9% at the beginning of July to 5.2% at the end of September, a rise of 0.3% for overnight/7-day maturities. There is little noticeable difference between the 7 day and 1-month SONIA (Sterling Overnight Rate) 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 2023/24 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. 2.4.7 However, as demonstrated by the liability benchmark reported at (xi) below and Appendix 3 attached, it is anticipated the Council will be a long-term borrower and therefore new treasury investments are primarily made to manage day-to-day cash flows using short-term low risk instruments. The existing portfolio of strategic pooled funds will be maintained to diversify risk into different sectors and boost investment income. Non-Treasury Management Investments 2.4.8 During the quarter, no repayments were due 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 As advised by our treasury management advisors, UK inflation remained stubbornly high over much the period compared to the US and euro zone, keeping expectations elevated of how much further the Bank of England (BoE) would increase rates. However, inflation data published in the latter part of the period undershot expectations, causing financial markets to reassess the peak in BoE base rate. Financial market expectations moderated over the period as falling inflation and weakening data gave some indication that higher interest rates were working. Expectations fell from predicting a peak of over 6% in June to 5.5% just ahead of the September MPC meeting. This was followed very soon after by the Page 170 of 220
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BoE deciding to keep the base rate on hold at 5.25% in September, against expectation for another 0.25% rise. 2.5.2 The Bank of England’s Monetary Policy Committee (MPC) continued tightening monetary policy over most of the period, increasing the base rate as per para 2.4.5. Following the September MPC meeting, the Councils’ treasury adviser modestly revised its interest forecast to reflect the central view that 5.25% will now be the peak in the base rate. In the short term the risks are to the upside if inflation increases again, but over the remaining part of the forecast horizon the risks are to the downside from economic activity weakening more than expected. Whilst yields have risen since publication of September’s inflation figures, further rises in the base rate are unlikely given the expected fall in headline CPI for October due to household energy bills and the wider economic weakness. This does support the view that the base rate will remain at 5.25% for some time. 2.5.3 Inflation continued to fall from its peak as annual headline CPI declined to 6.7% in August 2023 from 6.8% in July against expectations for a tick back up to 7.0%. The largest downward contribution came from food prices. The core rate also surprised on the downside, falling to 6.2% in August from 6.9% compared to predictions for it to only edge down to 6.8%. In September, the headline CPI rate remained unchanged despite expectations for a small decrease. Core CPI decreased slightly to 6.1% but still above expectations. The stable headline CPI rate was not wholly unexpected, given the sharp rise in fuel prices in September. Whilst the core CPI rate eased a little, the slight rise in services inflation was disappointing, reigniting concerns that overall inflation may continue to be stickier than expected. 2.5.4 July data showed the unemployment rate 3month/year increased to 4.3%. Pay growth at July was 8.5% for total pay (including bonuses) and 7.8% for regular pay, which for the latter was the highest recorded annual growth rate. Adjusting for inflation, pay growth in real terms were positive at 1.2% and 0.6% for total pay and regular pay respectively. 2.5.5 The lagged effect of monetary policy together with the staggered fixed term mortgage maturities over the next 12-24 months means the full impact from base rate rises are still yet to be felt by many households. As such, while consumer confidence continued to improve over the period, it is likely this will reverse at some point. Higher rates will also impact business and recent survey data highlighted that the UK manufacturing and services sector contracted during the quarter. 2.5.6 Financial market sentiment and bond yields remained volatile, the latter generally trending downwards as there were signs inflation, whilst still high, was moderating and interest rates were at a peak. 2.5.7 Over the period gilt yields fell towards the end of the period. The 5-year UK benchmark gilt yield rose from 3.30% to peak at 4.91% in July before trending downwards to 4.29%. Over the same timeframe, the 10-year gilt yield rose from 3.43% to 4.75% in August before declining to 4.45%, and the 20-year yield rose from 3.75% to 4.97% in August and then fell back to 4.84%. The Sterling Overnight Rate (SONIA) averaged 4.73% over the period. This resulted in the standard PWLB 10 year borrowing rate increasing from 5.41% at the start of the quarter to 5.45% at the end of the quarter, showing a spread of 0.55% between the highest and lowest interest rate which were 5.71% and 5.16% respectively, averaging 5.43%. Page 171 of 220
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2.5.8 Following the increase in the base rate in August, short-term borrowing interest rates increased with the short term 7-day offer rate ranging between 5.06% and 5.50% 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 result in increased temporary borrowing costs for the Council partially offset by increased investment income earned on surplus balances. 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 1 March 2023, approved a report titled, “Treasury Management Strategy 2023/2024 and Treasury and Prudential Indicators 2023/2024 to 2025/2026”. 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 2023/24 to date is detailed within Appendix 2. (i) Indicator 1(a) illustrates planned investment on capital expenditure is forecast to be lower than initially anticipated by £9.3m in 2023/24. This reflects a reduction of £10.9m in the General Fund capital investment and an increase of £1.6m for the HRA Mainstream and New Build programmes, primarily due to opportunities presented to buy land and ‘off the shelf’ developments earlier than anticipated during 2023/24. 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 2023/24. (ii) The mix of resources used to finance the capital expenditure in 2023/24 reflect the updates to the forecast capital investment outlined above. Therefore, the level of in-year borrowing is anticipated to be lower by £21.8m due to a reduction in General Fund programme of £23.9m partly offset by an increase of £2.1m for HRA programme. This forecast level of borrowing also reflects a net increase in capital grants and external contributions of £19.4m with additional funds available to the General Fund and HRA programmes of £12.3m and £7.1m respectively. A reduction of £7.0m of CFCR is also anticipated, due to a decrease of £7.7m in HRA, and an increase of £0.7m in General Fund. (iii) As a result of accounting issues arising from the pandemic recovery, the implementation of IFRS 16 Lease Accounting has been further delayed. Therefore, a restatement of existing liabilities for operating leases to the credit arrangement category will be applied in 2024/25 with an estimated impact of £3.5m. In addition, implementation of the Service Concessions flexibility in 2023/24 on PPP liabilities, and subsequent impact of IFRS16 implementation in 2024/25, is estimated to result in capital investment of £67.9m being recognised in the period to 2025/26. It should be noted that this does not represent cash expenditure and is offset by recognition of associated credit arrangements financing. Page 172 of 220
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(iv) Indicator 1(b) – The Council’s cumulative outstanding amount of debt finance is measured by the capital financing requirement (CFR). The CFR is essentially a measure of Council’s underlying borrowing need i.e. capital expenditure which is not resourced by capital grants, receipts or CFCR - and any new borrowing will increase the CFR. The CFR is projected to rise to £1,420m as at 31 March 2024. (v) 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(c) demonstrates a healthy prudential margin of £292.9m as at 30 September 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. (vi) Indicator 1(d) illustrates that both the overall Authorised Limit and Operational Boundary 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. (vii) Indicator 1(e) illustrates the financing costs forecasts as at 30 September 2023 for both general fund and HRA as a proportion of net revenue stream. Although capital expenditure is not charged directly to revenue, interest payable on loans, and loan fund and long-term liability repayments are. The net annual charge is known as financing costs; this is compared to the net revenue stream i.e. the amount funded from Council Tax, NDR and government grants. (viii) Indicator 2(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 30 September 2023, the level of borrowing subject to variability is deemed to be within acceptable levels. (ix) Indicator 2(b) highlights a projected loan charge overspend of £8.7m compared to the initial prudential estimates for 2023/24. This projection takes into account treasury management activity, internal Interest on Revenue Balances (IORB) recharges due to increasing market interest rates, the loans fund holiday flexibility adopted in 2022/23 and decisions of the Policy and Strategy Committee and the Strategic Capital Delivery Group to reprofile the capital programme in response to the significant delivery related challenges. This current loan charge variance is made up of: • A net treasury management overspend of £9.4m is projected (£5.0m General Fund, HRA £4.3m), which is a primarily a reflection of increased internal IORB charges, and incorporates cashflow management techniques adopted, e.g. directing the timing of new borrowing, managing investment security, liquidity and interest rate risk. • In 2023/24 it is anticipated there will be reduction in anticipated loans fund advance repayments of £0.7m (£0.5m and £0.2m for the General Fund and HRA respectively). This is primarily due to lower final outturn capital borrowing in 2022/23 than previously forecast. Page 173 of 220
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(x) Indicator 2(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. (xi) The Liability Benchmark at Appendix 3 is a new indicator. The Treasury Management Code states that organisations should evaluate the amount, timing and maturities needed for new borrowing in relation to planned borrowing needs, in order to avoid borrowing too much, too little, too long or too short. The liability benchmark is an important tool to help establish whether the Council is likely to be a long-term borrower or long-term investor in the future, and so shapes its strategic focus and decision making. Essentially this benchmark identifies the projection of external debt/borrowing required over the long term to fund approved revenue & capital budgets, while keeping treasury investments at the minimum level required to manage day-to-day cash. (xii) This represents the comparison of the Council’s actual borrowing against an alternative strategy. This utilises the forecasts for Capital Financing Requirement, long-term liabilities, current external borrowing, balance sheet resources i.e. reserves, and that cash and investment balances are kept to a minimum of £30.0m at each year-end to maintain sufficient liquidity but minimise credit risk. (xiii) The Loans CFR (solid light blue) represents the total cost of the capital expenditure plans based on the current profile of the 5-year Capital Programme 2020/2021 to 2025/2026. This reduces over time as scheduled principal repayments are made to the loans fund. The Net Loans Requirement (dotted red line) represents the minimum external borrowing required to fund the current capital expenditure plans assuming all cash reserves and balances are utilised to offset borrowing requirements. The Liability Benchmark (solid red line) represents the estimated borrowing required, taken account of liquidity allowance required of £30.0m to be held to maintain liquidity and to manage day-to-day cashflows. (xiv) The solid grey section shows the maturity profile of current borrowing. The gap between the grey section and the liability benchmark line represents the estimated additional borrowing that is forecast will be required to fund the current capital expenditure plans, via long-term and short-term borrowing options. 3. Measures of success 3.1 Overall the approach adopted by the Council’s Treasury Management team during the quarter under review met the key requirements of the 2023/24 Treasury Management Strategy. Prudential indicators have remained in accordance with those approved by 31/3/23 Actual £m 31/3/24 Forecast £m 31/3/25 Forecast £m 31/3/26 Forecast £m Loans CFR 1,052.7 1,206.0 1,392.2 1,590.4 less Balance Sheet Resources (387.4) (330.3) (294.3) (280.9) Net Loans Requirement 665.3 875.7 1,097.9 1,309.5 plus: Liquidity Allowance 30.0 30.0 30.0 30.0 Liability Benchmark 695.3 905.7 1,127.9 1,339.5 Existing Borrowing 749.2 626.1 455.1 432.7 New Borrowing Required 0.0 279.5 672.8 906.8 Page 174 of 220
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Committee on 1 March 2023. The projected final outturn illustrates a healthy prudential margin and borrowing levels that are below sustainable limits, ensuring that the projected 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 documentation 4.1 Appendix 1 Loans, Long term Liabilities & Investments as at 30 September 2023 Appendix 2 Summary of Treasury and Prudential Indicators as at quarter ended 30 September 2023 Appendix 3 Liability Benchmark as at quarter ended 30 September 2023 Elaine Kemp Chief Officer (Finance) Page 175 of 220
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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? Financial impacts are 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 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 ☐ Page 176 of 220
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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? As the Council borrows and invests significant sums of money it is exposed to financial risks including the loss of invested funds and the revenue effect of changing interest rates. Therefore, successful identification, monitoring and control of risk remains central to the Council’s treasury management strategy. 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 177 of 220
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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 ☐ Page 178 of 220
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LOANS, LONG TERM LIABILITIES & INVESTMENTS AS AT 30 SEPTEMBER 2023 Appendix 1 DEBT RESTRUCTURING BALANCE 1-July-23 EARLY REDEMPTION REFINANCING NEW BORROWING / LONG-TERM LIABILITIES PRINCIPAL REPAYMENTS NET CASH MOVEMENTS BALANCE 30-September-23 (1) (2) (3) (4) (5) (6) (7) LONG-TERM LOANS PWLB 444,702,930 0 0 0 (14,234,284) (14,234,284) 430,468,647 MONEY MARKET LOANS 57,000,000 0 0 0 0 0 57,000,000 ENERGY EFFICIENCY LOAN 879,629 0 0 0 (26,023) (26,023) 853,606 502,582,559 0 0 0 (14,260,307) (14,260,307) 488,322,253 SHORT-TERM LOANS TEMPORARY 245,000,000 0 0 69,000,000 (72,000,000) (3,000,000) 242,000,000 INTERNAL LOANS 6,280 0 0 0 0 0 6,280 245,006,280 0 0 69,000,000 (72,000,000) (3,000,000) 242,006,280 LONG -TERM LIABILITIES FINANCE LEASE OBLIGATIONS 1,289,305 0 0 0 0 0 1,289,305 LONG TERM LIABILITY 163,867,687 0 0 0 (2,008,154) (2,008,154) 161,859,534 165,156,992 0 0 0 (2,008,154) (2,008,154) 163,148,838 TOTAL EXTERNAL DEBT 912,745,831 0 0 69,000,000 (88,268,460) (19,268,460) 893,477,371 INVESTMENTS THIRD PARTY ADVANCES 1,168,251 0 0 0 0 0 1,168,251 BANKS & OTHER FINANCIAL INSTITUTIONS 51,973,444 0 0 0 0 (11,179,184) 40,794,260 BANK OVERDRAFT INCL CASH IN TRANSIT (7,095,641) 0 0 0 0 2,987,652 (4,107,990) CASH & CASH EQUIVALENTS 46,046,053 0 0 0 0 (8,191,532) 37,854,520 NET BORROWING 866,699,778 0 0 69,000,000 88,268,460 (11,076,928) 855,622,851 Page 179 of 220
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Appendix 2 Summary of Treasury and Prudential Indicators as at quarter ended 30 September 2023 1. Prudential Indicators (a) Capital Expenditure Initial Estimate 2023/2024 (£m) Projected Outturn 2023/2024 (£m) Variance 2023/2024 (£m) Forecast 2024/2025 (£m) Forecast 2025/2026 (£m) Capital Expenditure: General Services 167.4 156.5 (10.9) 172.4 161.3 Capital Expenditure: HRA 131.0 132.6 1.6 140.2 153.8 Total spend : Capital Expenditure 298.4 289.1 (9.3) 312.6 315.1 Total spend : Credit Arrangement 49.3 49.3 0.0 13.0 9.1 Total Capital Investment 347.7 338.4 (9.3) 325.7 324.1 Financed By: Capital Grants & Other External Contributions 73.7 93.1 19.4 74.1 61.5 Capital from Current Revenue 27.1 20.1 (7.0) 27.1 27.1 Capital receipts 1.0 1.1 0.1 1.0 1.0 Capital receipts transfer to Capital Fund 0.0 0.0 0.0 0.0 0.0 CFR : Borrowing - General Services 114.7 90.8 (23.9) 119.9 121.9 CFR : Borrowing - HRA 81.9 84.0 2.1 90.5 103.6 Credit Arrangements 49.3 49.3 0.0 13.0 9.1 (b) Capital Financing Requirement (CFR) Initial Estimate 2023/2024 (£m) Projected Outturn 2023/2024 (£m) Variance 2023/2024 (£m) Forecast 2024/2025 (£m) Forecast 2025/2026 (£m) General Services 948.5 907.4 (41.1) 1,024.2 1,137.8 HRA 519.5 512.1 (7.4) 589.4 678.3 Total CFR 1,468.0 1,419.5 (48.5) 1,613.6 1,816.1 Movement in CFR 220.9 172.4 194.1 202.5 (c) Gross Debt and the Capital Financing Requirement Initial Estimate 2023/2024 (£m) Projected Outturn 2023/2024 (£m) Variance 2023/2024 (£m) Forecast 2024/2025 (£m) Forecast 2025/2026 (£m) Gross Borrowing : Loan Debt 961.5 913.1 (48.4) 1,135.6 1,346.8 Long-term Liabilites 213.5 213.4 (0.1) 221.4 225.6 Gross Debt 1,175.0 1,126.6 (48.4) 1,357.0 1,572.4 Capital Financing Requirement 1,468.0 1,419.5 (48.5) 1,613.6 1,816.1 Prudential Margin 293.0 292.9 (0.1) 256.6 243.7 (d) Authorised Limit and Operational Boundary Initial Authorised Limit 2023/2024 (£m) Initial Operational Boundary 2023/2024 (£m) Maximum Borrowing Level Q2 2023/2024 (£m) Borrowing 1,350.0 1,300.0 755.1 Other Long-term Liabilities 235.0 235.0 163.1 Total Debt 1,585.0 1,535.0 918.2 (e) Proportion of Financing Costs to Net Revenue Stream Initial Estimate 2023/2024 (£m) Projected Outturn 2023/2024 (£m) Variance 2023/2024 (£m) Forecast 2024/2025 (£m) Forecast 2025/2026 (£m) General Fund Loan Charges 34.5 39.0 4.5 46.7 52.7 General Fund Finance Lease/PPP Costs 18.0 17.9 (0.0) 16.3 15.3 General Fund : Capital Financing Costs 52.5 56.9 4.4 62.9 68.1 General Fund : Net Revenue Stream 896.2 896.2 0.0 896.2 896.2 Proportion of Financing Costs to Net Revenue Stream - GF 5.9% 6.4% 0.5% 7.0% 7.6% Proportion of Financing Costs to Net Revenue Stream Initial Estimate 2023/2024 (£m) Projected Outturn 2023/2024 (£m) Variance 2023/2024 (£m) Forecast 2024/2025 (£m) Forecast 2025/2026 (£m) HRA Loan Charges 28.0 32.2 4.2 38.9 43.7 HRA Finance Lease/PPP Costs 0.3 0.3 (0.0) 0.3 0.3 HRA : Capital Financing Costs 28.4 32.5 4.2 39.2 44.0 HRA : Net Revenue Stream 148.2 148.2 0.0 155.7 164.8 Proportion of Financing Costs to Net Revenue Stream - HRA 19.1% 22.0% 2.8% 25.2% 26.7% Page 180 of 220
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Appendix 2 (cont) Summary of Treasury and Prudential Indicators as at quarter ended 30 September 2023 2. Treasury Management Indicators a) Interest Rate Exposures on External Interest Payments Position as at 30/09/2023 (£m) % External Interest Payable on Fixed Rate Loan Debt 34.3 99.1% External Interest Payable on Variable Rate Loan Debt 0.3 0.9% b) Loans Fund Revenue Account Initial Estimate 2023/2024 (£m) Projected Outturn 2023/2024 (£m) Variance 2023/2024 (£m) %age Loans Fund Interest Payments 41.3 51.3 (10.0) (24.2%) Loans Fund Expenses 0.4 0.4 0.0 7.0% Total Loans Interest Payments & Expenses 41.7 51.7 (10.0) (23.9%) Loans Funds Investment Income (1.3) (1.9) 0.6 (46.2%) Total Loans Fund Interest Payments Investment Income & Expenses 40.4 49.8 (9.4) (23.1%) Allocated as follows : Loans Fund Interest Payments Investment Income & Expenses:General Fund 24.0 29.0 (5.0) (20.7%) Loans Fund Interest Payments Investment Income & Expenses:HRA 16.4 20.7 (4.3) (26.5%) Capital Advances Repayments - General Fund 10.5 10.0 0.5 4.7% Capital Advances Repayments - HRA 11.7 11.5 0.2 1.5% Total Capital Advances 22.2 21.5 0.7 3.0% Total Loan Charges 62.6 71.3 (8.7) (13.9%) 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% 10.0% Maturity structure at the start of Q2 5.6% 4.3% 13.6% 16.7% 20.3% 34.4% 5.1% Maturity structure at the end of Q2 5.2% 4.4% 13.1% 16.6% 19.9% 35.5% 5.3% Page 181 of 220
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Appendix 3 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 £m Liability Benchmark - North Lanarkshire Fixed rate loans LOBO loans Loans CFR Liability benchmark Net loans requirement Page 182 of 220
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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 22/11/23 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 Finance as at 30 September 2023. Key points to note include: • As at 30 September 2023, 28.89% of Council Tax due for 2023/24 had been collected. This is a decrease of 5.34% on the same period last financial year linked to the Cost of Living award of £150 received by many households during 2022/23. • Non-Domestic Rates collection has shown a year-on-year increase from 16.32% to 30 September 2022 to 20.65% to 30 September 2023. • The service continues to meet statutory timescales for administering benefits applications and changes of circumstance. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledges the content of the report. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions Programme of Work Statutory / corporate / service requirement Item 13 Page 183 of 220
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1. Background 1.1 The Finance service 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. 2. Report Council Tax 2.1 The graph below shows the cash collected at 30 September 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 2023/24) and does not include cash collected in subsequent years (i.e. billed in 2022/23 but received in 2023/24). This ensures a like for like comparison. 2.2 The collection figure for the current financial year of 55.29% is 3.71% lower than the same period last financial year. However, the prior year collection figure benefited from the impact of the Scottish Government’s Cost of Living Award of £150 for eligible households with total cash received of £18.6m improving the in year collection figure. A comparison with 2021/22 shows a marginal decrease of 0.14% with the current year collection rate trending above that seen in 2019/20 and 2020/21. 2.3 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. 50 55 60 2019/20 2020/21 2021/22 2022/23 2023/24 Percentage of annual billing collected (%) Financial Year Council Tax Collection Rate at 30 September Page 184 of 220
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Non-Domestic Rates 2.4 The following graph shows the cash collected at 30 September for each financial year: 2.5 The collection figure for 2023/24 at 30 September is 42.80%; 1.15% higher than the same period last financial year demonstrating greater in year collection for NDR during 2023/24. 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. Housing Benefits 2.6 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 30 September 2023. The Scottish average comparator is based on the latest information published by DWP at Q4 2022/23. Days to Process 2022/23 2023/24 Latest available Scottish average New Claims 15 16 19 Change of Circumstances 8 9 3 2.7 The service continues to perform well in the speed of processing for new claims compared to the most recent Scottish average. The service also continues to meet statutory requirements for the speed of processing changes of circumstance. Performance so far is the current financial year has been affected by both increasing demand and a number of staff vacancies. To further improve efficiency the service is progressing a number of digital related improvements such as development of the Landlord Portal and robotic process automation for a number of high-volume tasks. Once live it is anticipated that these actions will improve processing times. 30 35 40 45 50 55 60 2019/20 2020/21 2021/22 2022/23 2023/24 Percentage of annual billing collected (%) Financial Year Non Domestic Rates Collection Rate at 30 September Page 185 of 220
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Council Tax Reduction Scheme 2.8 As at 30 September 2023 a total of £25.980m in Council Tax Reduction has been awarded for the 2023/24 financial year. This compares to £24.623m to the same period during 2022/23, representing an increase of £1.357m (5.5%). 2.9 The service received 3,708 applications between 1 April and 30 September 2023 compared with 3,700 during the same period during 2022/23. 2.10 The service received an increased number of notifications for changes in circumstances. From 1 April to 30 September 2023 a total of 55,625 changes were processed compared to 47,488 during the same period in 2022/23; an increase of 17.1% albeit below historical levels. Discretionary Housing Payments (DHP) 2.11 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. 2.12 From 1 January 2023 the Scottish Government is fully funding the implications of mitigating the benefit cap. 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. For 2023/24 the Scottish Government has provided funding of £0.301m to mitigate the benefit cap. As at 30 September 2023 the amount paid and committed in respect of the benefit cap was £0.083m (28%). 2.13 As at 30 September 2023 the total paid in respect of Bedroom Tax was £5.462m. In comparison this sum was £5.042m as at the same point in 2022. 2.14 In addition the Council also receives £0.467m in respect of non-bedroom tax related issues. A further £0.122m has been carried forward from the previous financial year and an additional £0.109m has been received for 2023/24 bringing the total budget for the current financial year to £0.698m. As at 30 September 2023 £0.272m (39%) has been paid or committed from the fund. 2.15 The Service will continue to liaise with colleagues in Housing Operations and Housing Associations to encourage applications to the fund. Scottish Welfare Fund 2.16 The Council has administered the Scottish Government’s Scottish Welfare Fund (SWF) since 1 April 2016. 2.17 The Scottish Government provides an annual award budget of £2.760m to North Lanarkshire Council. A further £1.518m one-off funding has been allocated following a decision of the Wellbeing and Tackling Poverty Committee on 5 May 2023. Therefore, the total award budget for 2023/24 is £4.278m. It is hoped that this additional one-off allocation will allow the fund to remain at Medium priority level for much of 2023/24 but this will be kept under continual review. 2.18 There are two grant schemes and their relative performance during 2023/24 and prior year comparison is as follows: Page 186 of 220
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2023/24 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 10,259 7,811 2,448 76.1% Community Care Grants 2,827 2,322 505 82.1% Total 13,086 10,133 2,953 77.4% 2022/23 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 8,888 6,874 2,014 77.3% Community Care Grants 2,976 2,038 938 68.4% Total 11,864 8,912 2,952 75.1% 2.19 As at 30 September 2023, the total financial value of grants paid from the Scottish Welfare Fund amounted to £2.730m which represents 68% of the total budget for the current financial year. 2.20 During 2023/24, the Scottish Welfare Fund has seen a significant increase in demand with an increase of 15% in Crisis applications assessed to 30 September in the current financial year compared to the previous financial year. 2.21 Despite increasing 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. 3. Measures of success 3.1 Continuous improvement in processing and collection rates. 4. Supporting documentation None Elaine Kemp Chief Officer (Finance) Page 187 of 220
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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? 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 ☐ Page 188 of 220
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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? The Service has been liaising with Business and Digital on the Landlord Portal and RPA developments and these will be managed in line with Business and Digital’s available resources. 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. 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 ☐ Page 189 of 220
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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 22/11/23 North Lanarkshire Properties LLP – Performance Indicators: 12 January 2023 to 3 August 2023 and Financial Performance as at 21 July 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 12th January 2023 to 3rd August 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 1st April 2023 to 21st July 2023. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledges NLP LLP’s operational performance against its 2022/23 targets for the period 12th January 2023 to 3rd August 2023; (2) Acknowledges NLP LLP’s financial performance during the period from 1 April 2023 to 21st July 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 Programme of Work Transforming Places Item 14 Page 191 of 220
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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 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 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 Finance 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. Page 192 of 220
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2.2 2023/24 Performance indicators are listed at appendix 1 along with actual performance for the period 12th January 2023 to 3rd August 2023, which fulfil the reporting requirements 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 29 properties were let, renewed or assigned (12 Office; 9 Retail and 8 Industrial) and there were 20 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 13.62% in P10 2022/23 to 15.23% in P4 2023/24. This corresponds with annual trends for the same periods in previous years. Service Delivery Highlights 2.5 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 £6.5m. 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 capped at a maximum of £600,000. 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 contractor has now taken possession of the site. 2.6 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. Financial Impact 2.7 Public Accountability Obligations – Financial year 2023/24 2.7.1 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. 2.7.2 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 Finance to assess and report any financial risk likely to arise as a result of the Council using NLP LLP to deliver these services. 2.7.3 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. Page 193 of 220
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2.7.4 For financial year 2023/24, the Council’s approved revenue spend includes property management services (£0.198m) and rental charges for properties utilised by the Council. 2.8 Financial Outturn to 31 March 2023 2.8.1 The 2022/23 Annual Financial Statements approved by the Board at the AGM on 28 September 2023 reported an Accounting Profit for the year of £7.436m, which included a significant uplift in the annual revaluation of the property portfolio and FRS102 pension costs. The trading profit for the year was £1.600m against a budget of £1.031m resulting in a favourable variance of £0.569m to be added to reserves. This was due to over-recoveries in rental income and bank interest, decreased bad debt provision and minor underspends within other areas offset by increased repairs and utility charges. Further details on financial trading performance are given on Appendix 2. 2.8.2 Appendix 3 provides Balance Sheet balances at the 31 March 2023 along with the previous year’s comparative figures and commentary. Council representatives are asked to note: • Net assets totalling £47.704m are predominately due to the increase in property valuations and improved timing in payment of invoices and receipt of income. • Council representatives should be assured that the company is in a healthy position, and this has proven to be beneficial in the loan refinancing negotiations. 2.9 Financial Performance 1 April 2023 to 21 July 2023 2.9.1 Based on the financial performance to 21st July 2023 a projected transfer into reserves of £0.616m is reported to 31st March 2024 which is a favourable movement against a budgeted transfer out of reserves of £0.320m. The position is based on the loan refinancing proposal at the time of preparing the accounts and may be subject to change. As at period 4 the Projected Debt Service Covenant (PDSC) is 0.76:1 which is in excess of the revised ratio agreed with Barclays for of 0.5 to 1. However, members should note that this is anticipated to improve from Quarter 3, increasing to 1.42:1 which meets the proposed new covenant set by the preferred bidder of 1.1:1. Further details on financial performance are given in Appendix 4. 2.9.2 Appendix 5 provides Balance Sheet balances as at 21st July 2023 along with the comparative figures as at 31 March 2023. Council representatives are asked to note: • The company has net assets of £49.015m predominately due to realisation of year end prepaid income in the accounts and improved timing in payment of invoices and receipt of income offset by the outstanding loan balance. This is a favourable movement of £1.311m on the year-end position. • Members should be assured that the company has sufficient resources to meet its current obligations. 2.10 Projected Cashflow to July 2024 2.10.1 Appendix 6 provides the projected cashflow to 31 July 2024. The minimum balance of cash projected to be held was £3.937m in October 2023. The cashflow position is reflective of the current loan refinancing proposals and reflects a reduction in cash Page 194 of 220
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balances of £3.104m which forms part of the proposal submitted to the preferred bidder for consideration. This demonstrates that NLP will continue to hold sufficient levels of cash. 2.11 Bank Covenant 2.11.1 Barclays Bank consented to relax the bank covenant ratio from 1:1 to 0.5:1 to the end of current Facility Agreement (31 October 2023). The Bank Covenant ratio is being considered as part of the loan negotiations and is proposed at 1.1:1 Council Representatives will be advised in future reports of the updated position. 2.11.2 NLC continue to monitor NLP financial performance closely with updates provided to the Corporate Management Team. 2.12 Refinancing October 2023 2.12.1 NLP’s financial borrowing agreement with its current lender, Barclays Bank plc, ceases in October 2023 and a new funding arrangement requires to be put in place to fund the remaining balance. 2.12.2 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. 2.12.3 Members will recall an update report was presented to the Committee meeting on 13th September 2023 regarding the progress on securing a new loan agreement from October 2023. Members were asked to acknowledge: • The outcome of the options appraisal to accept a 25-year loan offer with the preferred bidder; • Approval given by Chief Officer (Finance) for NLP to enter into that borrowing arrangement from October 2023 to October 2028. • That a further report will be presented in Cycle 4 to the Finance and Resources Committee confirming the final terms of the borrowing arrangement. 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 current loan obligations. 3.2 A new funding arrangement for the remaining loan balance to be finalised with lenders. 3.2 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 Performance Update – 12th January 2023 to 3rd August 2023 Financial Performance to 31st March 2023 Page 195 of 220
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Appendix 3 Appendix 4 Appendix 5 Appendix 6 Overall Financial Standing – Balance Sheet as at 31st March 2023 Financial Performance – 1st April 2023 to 21st July 2023 Overall Financial Standing – Balance Sheet as at 21st July 2023 Cashflow Forecast to July 2024 James McKinstry Chief Officer (Assets and Procurement) Page 196 of 220
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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? The financial performance of NLP is closely monitored by the council’s Section 95 Officer and the financial performance from 1st April 2023 to 21st July 2023 along with other key financial information is detailed 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 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 ☐ Page 197 of 220
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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? 5.10 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 ☐ Page 198 of 220
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North Lanarkshire Properties LLP Appendix 3 Overall Financial Standing - Balance Sheet as at 31 March 2023 Balances/ Indicator As At 31 March 2023 As At 31 March 2022 Variance Commentary £m £m £m Fixed Assets 74.206 68.946 5.260 Surplus on property portfolio revaluation offset by sale of land at Fern Street Current Assets: Trade Debtors 0.730 1.113 (0.383) Improved timing re timing of payments Bad Debt Provision (0.222) (0.274) 0.052 Proactive approach with tenants resulting in reduced provision Prepayment and Other Debtors 0.000 0.000 0.000 Bank and short term investments 9.166 9.101 0.065 Minor movement 9.674 9.941 -0.266 Current Liabilities: Creditors (1.610) (2.610) 0.999 Improved timing re processing of invoices and creditors payment run Other Creditors inc. VAT & other taxes (0.879) (0.946) 0.067 Minor movement Loan payments due in <1 yr (33.686) (1.376) (32.311) Outstanding balance on current loan agreement payable 31/10/2023 (36.176) (4.932) (31.244) Net current Assets/(liabilities) (26.502) 5.009 (31.511) Loan repayments due in > 1 yr 0.000 (33.686) 33.686 Outstanding balance on current loan transferred to Current Liabilities Defined scheme pensions liabilities 0.000 0.000 0.000 Net Asset / (Liabilities) 47.704 40.268 7.436Page 204 of 220
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North Lanarkshire Properties LLP Appendix 4 Year to date 21 July 2023 Income & expenditure 2023/24 2023/24 Year to date 2023/24 2023/24 Commentary:- 2023/24 Annual Budget vrs 2023/24 Projected Outturn Annual Budget Budget Actual Variance Projected Outturn Variance £m £m £m £m £m £m Rental, SLA income and Insurance Income 6.404 1.984 2.210 0.226 6.637 0.233 Forecast rental income higher than anticipated at time of setting budget Investment and other income 0.005 0 0 0.029 0.030 0.025 Minor movement Total Income 6.409 1.985 2.240 0.255 6.667 0.258 Expenditure; Employee costs (0.710) (0.159) (0.140) 0.019 (0.599) 0.111 Underspend due to vacancies Property Costs (2.132) (0.325) (0.325) (0.000) (2.026) 0.106 Lower than anticipated rates costs due for vacant properties Supplies & Services & Admin Costs (0.694) (0.044) (0.044) 0.000 (0.684) 0.010 Minor variance Financing Costs (1.817) (0.420) (0.420) 0.000 (1.869) (0.053) Based on updated forecasts for loan repayments as part of the ongoing loan refinancing Total Expenditure (5.353) (0.948) (0.929) 0.019 (5.179) 0.174 Trading Profit 1.056 1.037 1.311 0.273 1.488 0.432 Loan Principal Repayments (1.376) (0.379) (0.379) 0.000 (0.872) 0.503 Based on updated forecasts for loan repayments as part of the ongoing loan refinancing Profit Transferred to/(out) Reserves (0.320) 0.658 0.932 0.273 0.616 0.936 Page 205 of 220
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North Lanarkshire Properties LLP Appendix 5 Overall Financial Standing - Balance Sheet as at 21 July 2023 Balances/ Indicator As at 21 July 2023 As At 31 March 2023 Variance Commentary £m £m £m Fixed Assets 74.206 74.206 0.000 Current Assets: Trade Debtors 0.530 0.730 (0.200) Improved timing re payments received Bad Debt Provision (0.222) (0.222) 0.000 Prepayment and Other Debtors 0.000 0.000 0.000 Bank and short term investments 9.048 9.166 (0.117) Increased rental income 9.357 9.674 (0.317) Current Liabilities: Creditors (1.077) (1.610) 0.533 Improved timing re processing of invoices Other Creditors inc. VAT & other taxes (0.164) (0.879) 0.715 Year end prepaid income adjustments now realised in the accounts Loan payments due in <1 yr (33.307) (33.686) 0.379 Per loan repayment schedule (34.548) (36.176) 1.628 Net current Assets/(liabilities) (25.191) (26.502) 1.311 Loan repayments due in > 1 yr 0.000 0.000 0.000 Defined scheme pensions liabilities 0.000 0.000 0.000 Net Asset / (Liabilities) 49.015 47.704 1.311 Page 206 of 220
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Appendix 6 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Balance -£m NLP Cash Flow Forecast to July 2024 Operating Accts Rental Acct Debt Service Reserve Acct Total Balances Short Term Investments Page 207 of 220
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref JMcK Date 22/11/23 Contracts awarded below Committee approval threshold From James McKinstry - Chief Officer (Assets and Procurement) E-mail mckinstryj@northlan.gov.uk Telephone 07939 281102 Executive Summary In accordance with the Council’s General Contract Standing Orders (“GCSOs”), GSCO 21.10 requires a summary report be presented to members with details of contracts awarded since last committee, specifically for the spend range: • over £50,000 but below £500,000 for supplies or services; and, • over £500,000 but below £2,000,000 for works. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the contract awards made since last committee reporting cycle. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 15 Page 209 of 220
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1. Background 1.1 The Local Government (Scotland) Act 1973 require local authorities to make standing orders with respect to the making of contracts for the supply of goods or materials or for the execution of works. 1.2 The Council’s General Contract Standing Orders (“GCSOs”) set out the council’s specific procurement procedures and responsibilities at all spend levels, and include the reporting requirements of procurement activity, including contracts awards, to committee for either approval or acknowledgement. 2. Report 2.1 In accordance with GSCO 21.10, this report summarises the contract awards since last committee, specifically for the spend range: • over £50,000 but below £500,000 for supplies or services; and, • over £500,000 but below £2,000,000 for works. 2.2 If you require further information regards the contract awards reported, please refer to the lead service area / chief officer detailed in the appendix. 3. Measures of success 3.1 All requirements contracted contribute to either the council’s programme of work and/or fulfil a statutory requirement. 3.2 All contract awards secure best value for the council in accordance with their evaluation criteria. 3.3 All necessary diligence has been undertaken in the evaluation and appointment of contractors. 3.4 All contract awards are logged in the council’s contract register. 4. Supporting documentation 4.1 Appendix 1 – Summary of contracts awarded. James McKinstry Chief Officer (Assets and Procurement) Page 210 of 220
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5. Impacts 5.1 Impacts considered as part of the contract award procedures are recorded in the individual contract award reports held by the lead service area. Page 211 of 220
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Appendix 1 – Summary of Contracts Awarded Contract Ref NLC-SLP-22-154 Title Tryst Sports Centre, Cumbernauld - Internal Refurbishment Works Classification Works Lead Service Area / Chief Officer Assets and Procurement / James McKinstry Competition Governance by Value Non Regulated, GCSOs Procurement Route Open No. of Expression of Interest 24 No. of Bids Received 5 Award Criteria Most Economically Advantageous Tender Evaluation Scores Successful 96.16% Others 88.40% - 62.92% Comments None Award Details Value £508,532 Contract Duration 4 months Contractor Name Clark Contracts Ltd Contractor Size Large Contractor Location Glasgow Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☒ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 212 of 220
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Contract Ref NLC-SLP-22-113 Title Riverbank & Chryston Hubs - Supply, Delivery & Installation of Audio-Visual Equipment Classification Supplies Lead Service Area / Chief Officer Assets and Procurement / James McKinstry Competition Governance by Value Lower Threshold Regulations Procurement Route Framework Call-off, Further Competition No. of Contractors invited 4 No. of Bids Received 2 Award Criteria Most Economically Advantageous Tender Evaluation Scores Successful 99.50% Others 95.39% Comments None Award Details Value £62,847 Contract Duration 3 months Contractor Name SSUK Contractor Size SME Contractor Location Glasgow Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☒ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 213 of 220
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Contract Ref NLC-SLP-22-153 Title Project Manager, Quantity Surveyor & Principal Designer Advisors for Gartcosh Community Hub Classification Services - Standard Lead Service Area / Chief Officer Assets and Procurement / James McKinstry Competition Governance by Value Higher Threshold Regulations Procurement Route Framework Call-off, Direct Award No. of Contractors invited 1 No. of Bids Received 1 Award Criteria Framework, Best Value Assessment Evaluation Scores Successful *Not Applicable Others *Not Applicable Comments *Primary contractor appointed, they utilise their pre-qualified supply chain to ensure best value Award Details Value £276,500 Contract Duration 3 years Contractor Name Hub South West Scotland Limited Contractor Size Large Contractor Location North Lanarkshire Status - Payment of Living Wage? Yes Status - Living Wage Accredited? Yes Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☒ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 214 of 220
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Contract Ref NLC-CPT-22-167 Title Provision of Winter Related Services - Education & Corporate Estate Classification Services - Standard Lead Service Area / Chief Officer Assets and Procurement / James McKinstry Competition Governance by Value Higher Threshold Regulations Procurement Route Open No. of Expression of Interest 9 No. of Bids Received 5 Award Criteria Most Economically Advantageous Tender Evaluation Scores Successful 100% Others 83.29% – 62.39% Comments None Award Details Value £400,000 Contract Duration 2 years Contractor Name Ground Control Limited Contractor Size Large Contractor Location Essex Status - Payment of Living Wage? Yes Status - Living Wage Accredited? Yes Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☒ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 215 of 220
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Contract Ref NLC-SLP-23-020 Title Rental of Co-Location Data Centre Services Classification Services - Standard Lead Service Area / Chief Officer Business and Digital / Katrina Hassell Competition Governance by Value Lower Threshold Regulations Procurement Route Framework Call-off, Direct Award No. of Framework Contractors 1 – Source is SVAR Single Contractor Framework No. of Bids Received 1 Award Criteria Framework, Best Value Assessment Evaluation Scores Successful *Not applicable Others *Not applicable Comments *Primary contractor appointed, they utilise their pre-qualified supply chain to ensure best value Award Details Value £171,000 Contract Duration 3 years Contractor Name Hfd Datavita Ltd Contractor Size SME Contractor Location North Lanarkshire Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☒ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☒ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 216 of 220
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Contract Ref NLC-SLP-23-021 Title Unix Oracle Support Hosted Services Classification Services - Standard Lead Service Area / Chief Officer Business and Digital / Katrina Hassell Competition Governance by Value Higher Threshold Regulations Procurement Route Framework Call-off, Direct Award No. of Framework Contract 1 – Source is SVAR Single Contractor Framework No. of Bids Received 1 Award Criteria Framework, Best Value Assessment Evaluation Scores Successful *Not Applicable Others *Not Applicable Comments *Primary contractor utilises their pre-qualified supply chain to ensure best value Award Details Value £284,784 Contract Duration 3 years Contractor Name Hfd Datavita Ltd Contractor Size SME Contractor Location North Lanarkshire Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☒ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☒ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 217 of 220
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Contract Ref NLC-SLP-23-042 Title Provision of Cloud Records Management - Avepoint Classification Services - Standard Lead Service Area / Chief Officer Business and Digital / Katrina Hassell Competition Governance by Value Lower Threshold Regulations Procurement Route Framework Call-off, Direct Award No. of Framework Contractors 1 – Source is SVAR Single Contractor Framework No. of Bids Received 1 Award Criteria Framework, Best Value Assessment Evaluation Scores Successful Not Applicable Others Not Applicable Comments *Primary contractor utilises their pre-qualified supply chain to ensure best value Award Details Value £86,195 Contract Duration 2 years Contractor Name Computacenter (Uk) Ltd Contractor Size Large Contractor Location Hatfield Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☒ HR Policy Impact ☐ Data Protection Impact ☒ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☒ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 218 of 220
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Contract Ref NLC-SLP-23-045 Title Commercial and Procurement Advisor Support Classification Services - Standard Lead Service Area / Chief Officer Assets and Procurement / James McKinstry Competition Governance by Value Higher Threshold Regulations Procurement Route Framework Call-off, Direct Award No. of Framework Contractors 1 – Source is Crown Commercial Services Management Consultancy Framework No. of Bids Received 1 Award Criteria Framework, Best Value Assessment Evaluation Scores Successful *Not Applicable Others *Not Applicable Comments *Continuation of existing services Award Details Value £450,000.00 Contract Duration 1 year Contractor Name Turner & Townsend Cost Management Ltd Contractor Size Large Contractor Location Leeds Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☒ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 219 of 220
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