Enterprise and Communities - Capital Monitoring
North Lanarkshire Council · 10 May 2023
Back to Housing Committee — 10 May 2023 and its agenda
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/JM Date 10/05/23 Enterprise and Communities – Capital Monitoring Report From Derek Brown, Depute Chief Executive E-mail telferg@northlan.gov.uk Telephone Greg Telfer, Business Finance Manager, 07583 010692 1. Background 1.1 Financial year 2022/23 is the second year of the 5 year capital programme which was initially approved by the Policy and Strategy Committee on 18 March 2021. 1.2 The Enterprise and Communities 2022/23 capital programme of £157.168m was approved by the Policy and Strategy Committee on 17 March 2022. The programme has since been increased by £5.796m relating to carry forwards from 2021/22 and was reduced by £14.505m reprofiling to 2023/24 approved at the Council’s Strategic Capital Executive Summary This report highlights the financial performance of 2022/23 Enterprise and Communities capital programme for the period ended 3 March 2023 (Period 12). In summary the Service has a total capital budget of £133.810m. At this stage in the financial year the service is currently reporting an in-year underspend of £14.934m which will be requested to carried forward to 2023/24 to reflect when the expenditure is now projected to be incurred. Further explanation of project variances and management action taken by the Service is included within the main report and attached appendices. Recommendations It is recommended that the Committee: (1) Acknowledges the financial position of the 2022/23 Enterprise and Communities capital programme. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
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Delivery Group (SCDG) on 15 September 2022. Following approval at Policy and Strategy Committee on 1 December 2022 £0.699m budget savings were identified for Enterprise and Communities and this reduction has now been applied to the current budget. Further reprofiling of £15.046m was presented and approved at SCDG on 2 February 2023. In addition, a further £1.096m has been received in external funding giving an overall working capital programme of £133.810m. 1.3 The Council’s approved Financial Regulations required services to remain within their 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, 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 Period 12 the service is reporting an in-year underspend of £14.934m which will be requested to carry forward to 2023/24 to reflect when the expenditure is now projected to be incurred. Capital budgets and expenditure are summarised into Project/Themes (see Appendix A) 2.2 Assets & Procurement Solutions (£2.768m Underspend) The division has a number of in year variances across programmed activity. The most significant variance relates to the profile of expenditure in the Community Hub projects (£1.601m). This includes the previously reported £1.500m for Chryston Community Hub based on updated contractor work programmes which indicate this spend will now be incurred next financial year. There is also £0.200m for works for the new site for Newmains/St Brigids Community Hub which has now been handed over, this variance is for final internal works not affecting the operational aspect of the site. There are also small compensating variances across other projects. There are underspends in the Maintaining Existing Assets category (£0.406m) across different themes. Re-roofing projects are expected to underspend (£0.410m) due to weather and access issues. Contractor operation issues means £0.387m will now be incurred in 2023/24 for the toilet upgrade programme Window projects also expecting to underspend (£0.078m) due to delays in completion of project at Langloan Primary School. These underspends are offset in part by an increased forecast for Re-Wiring projects (£0.251m) due to good progress being made by contractors. Works through Active & Creative are also expected to overspend (£0.171m) due to accelerated works on Time Capsule and Bellshill Cultural Centre. There are also various other minor underspends across other categories totalling £0.147m. Within Sustainable Estate an in-year underspend of £0.329m is anticipated. Despite now being in contract for the project at Taylor High School for temporary modular accommodation, a contract dispute with the successful party has delayed this project until next financial year. Within Demolitions there is a forecast underspend of £0.229m, this is due to the tender being returned for the demolition of the Bellshill Depot that has come in lower than anticipated. This project is also no longer anticipated to complete this financial year due to delays with disconnection of the substation.
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Curriculum Development is expected to underspend by £0.227m, this is due to mobilisation of contractor who will not take possession of site at St Maurice’s High School until early March 2023. Capital receipts initiative is also expected to underspend by £0.128m, this is due to a re-profile of programmed works between this financial year and next. Projects at Mid- Forrest, Palacerigg and Napier will bridge financial years. 2.3 Environmental Assets (£3.247m underspend) Within the Roads Asset Management Theme there is an underspend of £1.663m anticipated in this financial year. This mainly relates to Street Lighting replacement (£1.057m) and LED upgrades (£0.709m) where although committed the spend is now profiled into 2023/24. Carriageway replacement works have been accelerated to partially offset the in-year underspend. The Cemeteries/Tree Infrastructure theme is projecting an underspend of £0.888m which is largely linked to the footpath works at Cambusnethan which will be carried out early 2023/24. The Infrastructure and Transportation Improvements theme is forecasting an underspend of £0.282m. This is mainly as a result of maximising external funding in Traffic Signals and Pedestrian Crossings (£0.396m) and Drainage & Flood Risk Management (£0.146m). There is also an underspend in staffing costs (£0.076m) within this area due to recruitment issues which means there are a number of vacancies within the design team. These underspends will be used to partially offset additional costs within the Horsely Brae project of £0.357m. Within the Parks Master Plan £0.211m of works related to the reconstruction of Bothwellhaugh Cottage and £0.047m of pavilion roof works will now take place in early 2023/24. The Litter Bin Rationalisation is now expected to underspend of £0.102m. 2.4 Regulatory Services and Waste Solutions (£0.797m overspend) Within this projection there is an overspend / acceleration due to updated contractor cashflows for the new Bellshill Fleet Depot (£0.713m). A further £0.284m overspend relates to the purchasing of electric vehicles that were previously leased and have been deemed to still have a useful life as part of the ongoing review of fleet requirements. An underspend in HWRC Equipment (£0.247m) is partly due to delays in procurement for upgraded CCTV cameras. 2.5 Planning & Regeneration (£9.745m underspend) The Policy and Strategy committee on 16 March 23 agreed to proceed with the purchase of The Centre Cumbernauld. The sale however is now likely to conclude in the new financial year due to the timing of the finalisation of asset management and property management arrangements. This results in an in year underspend of £9.5m. There is also a further in year underspend of £0.137m as a result of maximising external funding these funds will carry forward and be utilised in 2023/24.
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3. Measures of success 3.1 The Service aim is to be in a balanced budget position at financial year-end 4. Supporting documentation 4.1 Appendix 1 Summary Expenditure by Project/Theme Derek Brown Depute Chief Executive
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Service aims to operate within approved funding levels and utilise budget virements to support emerging issues and mitigate variances across budget heads. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services managed these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. To minimise risk this report was prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.
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Appendix 1 Enterprise & Communities Capital Programme 2022/23 Theme Expenditure Summary 1st April 2022 - 3rd March 2023 (PERIOD 12) Lvl 7 Thematic Category Revised Budget £ Actual £ Committed £ Uncommitted £ Projected Outturn £ Outturn variance £ ASSET & PROCUREMENT SOLUTIONS CX2A Maintaining Existing Assets - windows, re-roofing, re-wiring and condition survey works for the Council's building assets 9,410,255 5,839,138 8,870,763 133,011 9,003,774 406,481 CX2B Carbon Management 516,562 422,270 422,270 116,472 538,742 (22,180) CX2C Office Rationalisation 437,811 274,502 347,285 93,286 440,571 (2,760) CX2D Shared Campus 0 0 0 0 0 0 CX2G Leisure Development 1,410,560 1,397,260 1,397,260 0 1,397,260 13,300 CX2H Health & Wellbeing & Digital Classrooms 411,693 274,633 425,580 35,126 460,705 (49,012) CX2I Rationalisation including ASN & Social Work 1,590,316 1,701,823 1,631,375 4,654 1,636,029 (45,713) CX2J Curriculum Development 863,951 494,565 637,101 0 637,101 226,850 CX2K Sustainable Estate 1,198,576 701,033 871,768 0 871,768 326,808 CX2L Outdoor Education and Outdoor Spaces 343,176 377,549 377,549 0 377,549 (34,373) CX2F Future Capital Receipts Investments 774,434 366,503 645,891 0 645,891 128,543 CX2M Design Fees 1,469,383 835,597 1,469,176 0 1,469,176 207 CX2O 1140 Early Learning and Childcare Expansion 1,970,737 1,303,697 1,393,446 587,626 1,981,072 (10,335) CX2E Demolitions 510,383 167,677 281,212 0 281,212 229,171 TOTAL ASSET & PROCUREMENT SOLUTIONS 20,907,837 14,156,248 18,770,675 970,174 19,740,850 1,166,987 TOWN AND COMMUNITY HUBS CX2N Town and Community Hubs 47,573,752 39,006,783 45,322,161 650,385 45,972,546 1,601,206 TOTAL TOWN AND COMMUNITY HUBS 47,573,752 39,006,783 45,322,161 650,385 45,972,546 1,601,206 ENVIRONMENTAL ASSETS CX9A Infrastructure and Transportation Improvements 8,485,014 6,466,952 8,088,778 114,671 8,203,450 281,564 CX10A Greenspace infrastructure Health & Wellbeing 1,005,630 267,258 961,181 15,289 976,470 29,161 CX11A Parks Masterplans 2,954,307 1,399,624 1,881,992 814,571 2,696,563 257,743 CX11B Environmental Assets replacement of plant and machinery 772,601 555,176 746,321 0 746,321 26,280 CX12A Cemeteries/Tree Infrastructure 1,608,030 208,494 608,762 111,675 720,437 887,593 CX13A Road Asset Management including street lighting, road improvements and gateway signage 11,901,142 6,831,863 10,231,864 6,321 10,238,185 1,662,957 CX13B Bin rationalisation project and replacement 137,742 35,787 35,787 0 35,787 101,955 CX13D Play Area Equipment and surface renewal 213,145 122,660 213,145 0 213,145 0 TOTAL ENVIRONMENTAL ASSETS 27,077,611 15,887,814 22,767,831 1,062,525 23,830,357 3,247,253 REGULATORY SERVICES & WASTE SOLUTIONS CX7D Contaminated Land and Pollution Control 368,376 396,197 416,109 0 416,109 (47,733) CX7A Vehicle Replacement Programme 49,040 254,431 332,631 0 332,631 (283,591) CX7F Depot Rationalisation and Investment 1,810,007 1,195,996 2,522,561 0 2,522,561 (712,554) CX7C HWRC Equipment 464,700 217,718 217,718 0 217,718 246,982 TOTAL REGULATORY SERVICES & WASTE SOLUTIONS 2,692,123 2,064,342 3,489,019 0 3,489,019 (796,896) PLANNING & REGENERATION CX1C Economic Regeneration 15,002,499 4,448,629 5,173,288 129,216 5,302,504 9,699,994 CX15A City Deal 17,238,178 15,185,991 17,084,111 143,045 17,227,156 11,022 CX15B Enterprise Projects 2,546,020 1,136,394 2,294,403 248,610 2,543,013 3,007 CX1B Antonine Wall Project 210,199 180,096 180,096 0 180,096 30,103 TOTAL PLANNING & REGENERATION 34,996,896 20,951,110 24,731,897 520,871 25,252,769 9,744,126 HOUSING PROPERTY & PROJECTS CX16A Water Quailty / Ventilation 561,862 586,258 586,258 4,515 590,773 (28,911) TOTAL HOUSING PROPERTY & PROJECTS 561,862 586,258 586,258 4,515 590,773 (28,911) TOTAL ENTERPRISE & COMMUNITIES 133,810,081 92,652,555 115,667,841 3,208,471 118,876,312 14,933,765 YTD OUTTURN