Revenue and Capital Budget Monitoring as at 10 November 2023
Renfrewshire Council · 18 January 2024
Back to Education and Children's Services Policy Board — 18 January 2024 and its agenda
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To: Education and Children’s Services Policy Board On: 18 January 2024 Report by: Director of Finance and Resources, Director of Children’s Services Heading: Revenue and Capital Budget Monitoring as at 10 November 2023 1. Summary of Financial Position 1.1. The projected Revenue outturn at 31 March 2024 for Children’s Services is an overspend of £2.074m (0.8%) 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 (2.3%). 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 246.964 249.038 (2.074) (0.8%) Table 2: Capital Division Revised Annual Budget £m Projected Outturn £m Budget Variance £m Budget Variance % Children’s Services 6.086 5.943 0.143 2.3% 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 £2.074m (0.8% 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 £2.505m overspend is anticipated within Children & Families mainly related to external specialised residential accommodation placements. An additional £2m was provided for 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”. 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. The financial position will be closely monitored and reported as the year progresses. 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 £1.506m have been processed since the previous report. These adjustments mainly relate to drawdowns from reserves for Attainment Challenge (£0.400m) and Ukrainian pupil support (£1.001m), and to transfers from other services in relation to the Renfrewshire Alcohol & Drugs Commission and Hearty Lives Renfrewshire (£0.115m) offset by budget transfers to other services (£0.050m). 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 a revised budget in the capital programme for Education and Children’s Services of £6.086m. 5.3. The projected Capital outturn at 31 March 2024 for Children’s Services is an underspend of £0.143m (2.3%). 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 of (£0.490m). This relates to the reprofiling of spend into 2024/25 for the Paisley Grammar School New Campus project. ___________________________________________________________________ Implications of this report 1. Financial The projected budget outturn position for Children’s Services’ Revenue budget is an overspend of £2.073m. 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. 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.
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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 Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 174,639 2,442 177,081 174,392 2,689 1.5% 2,630 59 Premises Related 8,897 (4) 8,893 9,395 (502) (5.6%) (478) (23) Transport Related 4,590 0 4,590 6,236 (1,646) (35.9%) (1,659) 13 Supplies and Services 31,882 (754) 31,128 31,021 107 0.3% 434 (327) Third Party Payments 15,198 0 15,198 18,665 (3,467) (22.8%) (4,012) 546 Transfer Payments 15,567 38 15,605 15,737 (132) (0.8%) (400) 268 Support Services 64 0 64 62 3 3.9% 11 (9) GROSS EXPENDITURE 250,837 1,722 252,559 255,507 (2,948) (1.2%) (3,474) 526 Income (5,379) (216) (5,595) (6,470) 875 15.6% 997 (122) NET EXPENDITURE 245,458 1,506 246,964 249,038 (2,074) (0.8%) (2,477) 404 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 10 November 2023
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Appendix 2 Objective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Directorate 480 0 480 395 85 17.6% 99 (14) Early learning and childcare 34,547 (37) 34,510 32,894 1,616 4.7% 1,345 271 Primary 63,785 172 63,957 63,920 37 0.1% 17 20 Secondary 86,780 621 87,401 87,992 (591) (0.7%) (546) (45) ASN (Special) Schools 7,016 (146) 6,870 6,799 71 1.0% 49 22 Additional support for learning (ASL) 16,254 638 16,892 17,642 (750) (4.4%) (750) (0) Psychological services 836 0 836 936 (100) (12.0%) (60) (40) Education development 2,254 (89) 2,165 2,165 0 0.0% 0 0 Attainment Challenge (1,182) 364 (818) (818) 0 0.0% 0 0 Facilities management 620 (16) 604 541 63 10.4% 6 57 Children & Families 34,068 (1) 34,067 36,572 (2,505) (7.4%) (2,637) 132 NET EXPENDITURE 245,458 1,506 246,964 249,038 (2,074) (0.8%) (2,477) 403 Objective Heading Early Learning and Childcare Secondary Schools Additional Support for Learning Children & Families An overspend in Third Party 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. The Third Party Payments projection also includes additional costs (net of associated grant income) resulting from the introduction by the Scottish Government of a national recommended maintenance allowance for foster carers and kinship carers. 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). 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. RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 10 November 2023 Budget Variance (Adverse) or Favourable Key Reasons for Projected Variance POLICY BOARD : EDUCATION & CHILDREN'S SERVICES
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Appendix 3 Prior Years Annual Budget Budget Revised Projected Expenditure at P6 Adjustments Budget Outturn Total Approved Projected to 31/03/2023 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 Early Years 1,140 Hours Expansion 0 0 0 0 0 0 0% 0 0 0 0% Primary Schools Estate Programme(SEMP) 10,421 203 0 203 60 143 70% 10,623 10,481 142 1% Paisley Grammar New Campus 4,819 2,290 (490) 1,800 1,800 0 0% 75,100 75,100 0 0% Thorn PS New Build 13 250 0 250 250 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 23,569 1,407 0 1,407 1,407 0 0% 25,101 25,101 0 0% Inspiring School Age Childcare Spaces Programme 0 100 0 100 100 0 0% 100 100 0 0% Technology Replacement Strategy ICT 0 326 0 326 326 0 0% 1,926 1,926 0 0% TOTAL EDUCATION & CHILDREN'S SERVICES BOARD 38,822 6,576 (490) 6,086 5,943 143 2% 124,850 124,708 142 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) RENFREWSHIRE COUNCIL 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 POLICY BOARD: EDUCATION & CHILDEN'S SERVICES CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 10th November 2023