ECSPB 24.08.2023 - Revenue and Capital Budget Monitoring as at 23 June 2023
Renfrewshire Council · 24 August 2023
Back to Education and Children's Services Policy Board — 24 August 2023 and its agenda
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To: Education and Children’s Services Policy Board On: 24 August 2023 Report by: Director of Finance and Resources, Interim Chief Education Officer and Chief Social Work Officer Heading: Revenue and Capital Budget Monitoring as at 23 June 2023 1. Summary of Financial Position 1.1. The projected Revenue outturn at 31 March 2024 for Children’s Services is an overspend of £2.623m (1.1%) against the revised budget for the year. 1.2. The projected Capital outturn at 31 March 2024 for Children’s Services is an underspend of £0.143m (1.9%). 1.3. This is summarised over the relevant service in the table below and further analysis is provided in the Appendices. Table 1: Revenue Division Revised Annual Budget £m Projected Outturn £m Budget Variance £m Budget Variance % Children’s Services 245.352 247.975 (2.623) (1.1%) Table 2: Capital Division Revised Annual Budget £m Projected Outturn £m Budget Variance £m Budget Variance % Children’s Services 7.338 7.195 0.143 1.9% 2. Recommendations Members are requested to: 2.1. Note the projected Revenue outturn position for Children’s Services detailed in Table 1 above, and further note that the forecast position is based on best estimates and confirmed government support at this point in time;
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2.2. Note the projected Capital outturn position for Children’s Services detailed in Table 2 above; and 2.3. Note the budget adjustments detailed in sections 4 and 6. 3. Children’s Services Revenue 3.1. The Revenue Budget Monitoring report at Appendix 1 identifies a projected annual overspend of £2.623m (1.1% of total budget). Detailed service division reports can be found in Appendix 2, along with an explanation of each significant projected variance. 3.2. The main reasons for the projected outturn position are indicated below the table showing the objective analysis (which division is spending the budget). 3.3. A £2.651m overspend is anticipated within Children & Families related mainly to external specialised residential accommodation placements. An additional £2m was set aside in the 2023/24 budget, with an “expectation that up to a further £3m may be required to be funded from ringfenced balances in 2023/24”. This position will be closely monitored as the year progresses. 3.4. All external placements are held under continual review by the service to ensure they continue to meet the needs of the individual children and young people. Options to mitigate cost pressures continue to be examined. 3.5. Further overspends are anticipated in relation to contracted mainstream and additional support needs transport costs. 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that budget adjustments totalling £6.317m have been processed since the budget was approved. These adjustments relate almost entirely to the increase in budget arising from the teachers’ pay award, which had not been agreed at the time of the budget being approved in March 2023. 5. Children’s Services Capital 5.1. The Capital Investment Programme 2023/24 to 2027/28 was approved by the Council on 2 March 2023. 5.2. The Capital Monitoring report at Appendix 3 indicates changes totalling £1.567m in the approved capital programme for Education and Children’s Services. This largely relates to budget carried forward from 2022/23 to 2023/24 and budget carried from 2024/25 into 2023/24. 5.3. The projected Capital outturn at 31 March 2024 for Children’s Services is an underspend of £0.143m (1.9%). Further detail, including reasons for significant variances, can be found at Appendix 3.
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6. Capital Budget Adjustments 6.1. Since the last report there have been budget changes totalling £1.567m, comprising the following: Budget that had been carried back from 2023/24 to 2022/23 to reflect updated cash flows in respect of payments made prior to 1 April 2023: • Paisley Grammar School new campus £2.710m; • Thorn Primary School new build investigation work £0.013m; • ICT technology replacement strategy £0.074m; Budget that has been brought forward from 2022/23 to 2023/24 to reflect updated cash flows in respect of payments made after 31 March 2023: • Primary schools estate programme (SEMP) £0.203m; • Other schools investment programmes £1.027m. ___________________________________________________________________ Implications of this report 1. Financial The projected budget outturn position for Children’s Services’ Revenue budget is an overspend of £2.623m. Income and expenditure will continue to be monitored closely for the rest of the financial year and steps will be taken to mitigate any overspend, including applying flexibility within specific grant funding as permitted by the Scottish Government, and potential use of earmarked reserves. The projected outturn position for Children’s Services’ Capital budget is an underspend of £0.143m. The Capital programme will continue to be monitored closely for the rest of the financial year. 2. HR and Organisational Development None directly arising from this report. 3. Community/Council Planning None directly arising from this report. 4. Legal None directly arising from this report. 5. Property/Assets None directly arising from this report. 6. Information Technology None directly arising from this report.
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7. Equality and Human Rights The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report because for example it is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health and Safety None directly arising from this report. 9. Procurement None directly arising from this report. 10. Risk The potential risk that the Council will overspend its approved budgets for the year will be managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact None directly arising from this report. 12. 13. CoSLA Policy Position n/a Climate Risk None directly arising from this report. __________________________________________________________________ List of Background Papers: None __________________________________________________________________ Authors: Richard Conway, Finance Business Partner Geoff Borland, Finance Manager
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Appendix 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 166,164 5,040 171,204 169,371 1,833 1.1% Premises Related 9,041 (57) 8,984 9,464 (480) (5.3%) Transport Related 4,590 2 4,592 6,077 (1,485) (32.3%) Supplies and Services 31,776 582 32,358 32,071 287 0.9% Third Party Payments 15,198 0 15,198 18,150 (2,952) (19.4%) Transfer Payments 13,667 752 14,419 14,740 (321) (2.2%) Support Services 65 (1) 64 112 (48) (75.0%) Depreciation and Impairment Losses 0 0 0 0 0 0.0% GROSS EXPENDITURE 240,501 6,318 246,819 249,985 (3,166) (1.3%) Income (1,466) (1) (1,467) (2,010) 543 37.0% NET EXPENDITURE 239,035 6,317 245,352 247,975 (2,623) (1.1%) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 23 June 2023 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES
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Appendix 2 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Directorate 480 0 480 412 68 14.2% Early learning and childcare 34,532 (24) 34,508 33,235 1,273 3.7% Primary 60,666 2,918 63,584 63,520 64 0.1% Secondary 83,243 2,835 86,078 86,758 (680) (0.8%) ASN (Special) Schools 6,750 299 7,049 7,003 46 0.7% Additional support for learning (ASL) 16,238 223 16,461 17,161 (700) (4.3%) Psychological services 802 34 836 886 (50) (6.0%) Education development 1,710 16 1,726 1,726 0 0.0% Attainment Challenge 0 0 0 0 1 0.0% Facilities management 620 4 624 617 7 1.1% Children & Families 33,994 12 34,006 36,657 (2,651) (7.8%) NET EXPENDITURE 239,035 6,317 245,352 247,975 (2,623) (1.1%) Objective Heading Early Learning and Childcare Secondary Schools Additional Support for Learning Children & Families An underspend in Employee Costs is projected due to vacancies within the authority’s Early Learning & Childcare Centres. This underspend is offset by a projected overspend in Transfer Payments in relation to an increase in the rate paid to funded providers (private and voluntary sector nurseries and childminders). An overspend in Transfer Payments is projected, mainly in relation to external residential accommodation placements, where the number of complex, expensive packages has increased significantly. All external placements are held under continual review by the service, with options to mitigate cost pressure being examined on an ongoing basis. Overspends in Premises Costs and Transport Costs are projected. The overspend in Premises Costs is due to an expected increase in refuse collection and janitorial supplies costs. The overspend in Transport is due to an increase in the cost of the mainstream school transport contract. These overspends are partly offset by a projected underspend within Employee Costs mainly in relation to teachers’ salary costs. These will be kept under review during the year. An overspend in Transport Costs is projected. This is due to increases in the cost of transport contracts for pupils with additional support needs. POLICY BOARD : EDUCATION & CHILDREN'S SERVICES RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 23 June 2023 Budget Variance (Adverse) or Favourable Key Reasons for Projected Variance
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Appendix 3 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023-24 in 2023-24 2023-24 2023-24 Budget Outurn Project Title to 31-Mar-27 to 31-Mar-27 £000 £000 £000 £000 £000 £000 £000 EDUCATION & CHILDREN SERVICES Primary Schools Estate Programme(SEMP) 42,695 0 203 203 60 143 70% 42,898 42,755 143 0% Paisley Grammar New Campus 4,819 5,000 (2,710) 2,290 2,290 0 0% 75,100 75,100 0 0% Thorn PS New Build 13 1,000 (13) 987 987 0 0% 10,000 10,000 0 0% Dargavel Extension (Modular Units) 0 2,000 0 2,000 2,000 0 0% 2,000 2,000 0 0% Other Schools Investment Programmes 24,188 505 1,027 1,532 1,532 0 0% 25,720 25,720 0 0% Technology Replacement Strategy ICT 0 400 (74) 326 326 0 0% 1,926 1,926 0 0% PPP Lifecycle 0 0 0 0 0 0% 0 0 0% TOTAL EDUCATION & CHILDREN'S SERVICES BOARD 71,715 8,905 (1,567) 7,338 7,195 143 2% 157,644 157,501 143 0% *Rolling programmes have a prior year year expenditure of £0 as the expenditure is not directly linked from one year to the next as a singular project. Objective Heading Primary Schools Estate Programme(SEMP) Paisley Grammar New Campus Primary Schools Estate Programme(SEMP 2020) Other Schools Investment Programmes Technology Replacement Strategy ICT RENFREWSHIRE COUNCIL 1st April to 23rd June 2023 POLICY BOARD: EDUCATION & CHILDEN'S SERVICES CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES Key Reasons for Projected Variance Minor underspends relate to St Fergus new build and St Anthony refurbishment. Budget Variance (Adverse) or Favourable Current Year 2023-24 Budget Variance (Adverse) or Favourable Full Programme - All years