Enterprise and Communities - Capital Monitoring
North Lanarkshire Council · 16 November 2022
Back to Housing Committee — 16 November 2022 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 16/11/22 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 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 £14.505m reprofiling to 2023/24 was approved at SCDG on 15 September 2022. In Executive Summary This report highlights the financial performance of 2022/23 Enterprise and Communities capital programme for the period ended 16 September 2022 (Period 6). In summary the Service has a total capital budget of £161.151m. At this stage in the financial year the service is currently reporting an underspend of £3.085m. 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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addition, a further £12.692m has been received in external funding giving an overall working capital programme of £161.151m. 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 6 the service is reporting an underspend of £3.085m. Capital budgets and expenditure are summarised into Project/Themes (see Appendix A) 2.2 Assets and Procurement Solutions (On Target) There are a number of compensating variances across the Asset and Procurement Solutions division. Demolitions are forecast to underspend by £0.853m mainly in relation to the timing of Fleming House demotion which is now projected to be next financial year. This underspend is being managed by accelerating projects in Maintaining Existing Assets for health and safety works (£0.187m), major maintenance on the Time Capsule flooring (£0.300m) and Bellshill Cutural café works (£0.164m). There is also acceleration within Office Rationalisation (£0.367m) and Rationalisation of ASN (£0.135m). 2.3 Environmental Assets (£2.240m underspend) This underspend predominately sits within Roads Assets Management (£1.469m) and is in relation to the Street Lighting project. The procurement exercise to award this contract has only recently concluded so there is a timing delay on the physical works commencing on site. Works will now continue into the 2023/24 financial year. There is also an underspend within Infrastructure and Transportation improvements (£0.190m) as a result of maximising external funding and also vacancies in the Design Team. The Parks Masterplan is projected to underspend in the current financial year due to the timing of projects commencement and completion. In addition, the service has successfully bid for external funding which has created underspends within Greenspace Infrastructure and Health and Wellbeing. 2.4 Planning and Regeneration (£0.845m underspend) The division expects and underspend in the City Deal programme on Ravenscraig Infrastructure Access (£0.845m) in relation to the delayed Network Rail project delivery timescales for the completion of required work for the West Cost Main Line. This expenditure forecast now falls into the first quarter of 2023/24. 3. Measures of success 3.1 The Service aim is to be in a balanced budget position at financial year-end
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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 Financial Solutions? 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 and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐
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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 technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? 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.
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Appendix 1 Enterprise & Communities Capital Programme 2022/23 Theme Expenditure Summary 1st April 2022 - 16 September 2022 (PERIOD 6) Thematic Category Revised Budget £ Actual £ Committed £ Uncommitted £ Projected Outturn £ Outturn variance £ ASSET & PROCUREMENT SOLUTIONS Maintaining Existing Assets - windows, re-roofing, re-wiring and condition survey works for the Council's building assets 8,857,868 1,693,846 5,899,643 3,632,524 9,532,167 (674,299) Carbon Management 2,126,769 123,729 123,729 1,821,221 1,944,950 181,819 Office Rationalisation (16,849) 44,418 100,713 250,000 350,713 (367,562) Shared Campus 0 0 0 0 0 0 Leisure Development 1,311,349 931,488 1,164,475 218,946 1,383,421 (72,072) Health & Wellbeing & Digital Classrooms 411,693 124,520 124,520 287,173 411,693 0 Rationalisation including ASN & Social Work 3,599,432 382,851 673,970 3,060,889 3,734,859 (135,427) Curriculum Development 863,951 364,042 493,521 393,220 886,741 (22,790) Sustainable Estate 1,474,242 43,312 575,648 920,589 1,496,237 (21,995) Outdoor Education and Outdoor Spaces 343,176 89,902 434,222 0 434,222 (91,046) Future Capital Receipts Investments 985,791 0 236,281 493,719 730,000 255,791 Design Fees 1,525,383 433,195 1,469,356 0 1,469,356 56,027 1140 Early Learning and Childcare Expansion 2,191,802 739,062 954,343 1,198,995 2,153,338 38,464 Demolitions 1,010,383 20,998 77,293 80,000 157,293 853,090 TOTAL ASSET & PROCUREMENT SOLUTIONS 24,684,990 4,991,362 12,327,714 12,357,277 24,684,991 0 TOWN AND COMMUNITY HUBS Town and Community Hubs 49,860,100 18,036,257 45,359,544 4,500,556 49,860,100 0 TOTAL TOWN AND COMMUNITY HUBS 49,860,100 18,036,257 45,359,544 4,500,556 49,860,100 0 ENVIRONMENTAL ASSETS Infrastructure and Transportation Improvements 9,010,727 2,367,919 5,866,978 2,953,898 8,820,876 189,851 Greenspace infrastructure Health & Wellbeing 1,397,618 134,197 299,272 986,151 1,285,423 112,196 Parks Masterplans 2,906,584 664,767 1,497,382 939,742 2,437,123 469,460 Environmental Assets replacement of plant and machinery 666,997 140,318 605,823 61,174 666,997 0 Cemeteries/Tree Infrastructure 4,319,311 64,321 64,321 4,254,990 4,319,311 0 Road Asset Management including street lighting, road improvements and gateway signage 14,550,454 2,759,454 10,091,375 2,990,302 13,081,677 1,468,777 Bin rationalisation project and replacement 137,742 35,802 137,742 0 137,742 0 Play Area Equipment and surface renewal 213,145 95,288 213,145 0 213,145 0 TOTAL ENVIRONMENTAL ASSETS 33,202,578 6,262,065 18,776,039 12,186,254 30,962,294 2,240,284 REGULATORY SERVICES & WASTE SOLUTIONS Contaminated Land and Pollution Control 368,376 99,359 188,296 180,080 368,376 0 Vehicle Replacement Programme 1,448,444 45,000 45,000 1,403,444 1,448,444 0 Depot Rationalisation and Investment 3,509,776 3,771 3,509,776 0 3,509,776 0 HWRC Equipment 464,700 90,745 90,745 373,955 464,700 0 Landfill Provision (Aftercare) 0 0 0 0 0 0 TOTAL REGULATORY SERVICES & WASTE SOLUTIONS 5,791,296 238,875 3,833,817 1,957,479 5,791,296 0 PLANNING & REGENERATION Economic Regeneration 24,443,987 1,034,703 5,450,366 18,993,621 24,443,987 0 City Deal 19,479,365 5,236,288 15,917,048 2,709,159 18,626,207 853,158 Enterprise Projects 2,911,421 567,011 731,237 2,188,809 2,920,046 (8,625) Antonine Wall Project 215,013 82,258 82,258 132,755 215,013 0 TOTAL PLANNING & REGENERATION 47,049,786 6,920,260 22,180,909 24,024,344 46,205,253 844,533 HOUSING PROPERTY & PROJECTS Water Quailty / Ventilation 561,862 496,409 496,409 65,453 561,862 0 TOTAL HOUSING PROPERTY & PROJECTS 561,862 496,409 496,409 65,453 561,862 0 TOTAL ENTERPRISE & COMMUNITIES 161,150,612 36,945,228 102,974,430 55,091,364 158,065,794 3,084,817 YTD OUTTURN