ECSPB 14.03.2024 - Revenue and Capital Budget Monitoring as at 5 January 2024
Renfrewshire Council · 14 March 2024
Back to Education and Children's Services Policy Board — 14 March 2024 and its agenda
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To: Education and Children’s Services Policy Board On: 14 March 2024 Report by: Director of Finance and Resources, Director of Children’s Services Heading: Revenue and Capital Budget Monitoring as at 5 January 2024 1. Summary of Financial Position 1.1. The projected Revenue outturn at 31 March 2024 for Children’s Services is an overspend of £1.888m (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 247.347 249.235 (1.888) (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 £1.888m (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 £2.858m 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. A report on children from Renfrewshire who are cared for outwith their birth family is presented as a later item on the agenda for Board today. 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 £0.383m have been processed since the previous report. These adjustments mainly relate to a realignment of non-domestic rates budgets (£0.426m) which was partly offset by transfers to the corporate landlord for property maintenance works (£0.043m). 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%). However, the full impact of inflation on capital costs on each project is not yet determined. This current forecast underspend will be reallocated within the Education capital investment programme. 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 no budget changes. ___________________________________________________________________ Implications of this report 1. Financial The projected budget outturn position for Children’s Services’ Revenue budget is an overspend of £1.888m. 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. 8. Health and Safety None directly arising from this report. 9. Procurement None directly arising from this report.
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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 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 5 January 2024 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES Subjective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 177,081 301 177,382 174,053 3,329 1.9% 2,688 641 Premises Related 8,893 428 9,321 9,829 (508) (5.5%) (502) (6) Transport Related 4,590 0 4,590 6,328 (1,738) (37.9%) (1,646) (92) Supplies and Services 31,128 451 31,579 31,758 (179) (0.6%) 107 (286) Third Party Payments 15,198 0 15,198 18,449 (3,251) (21.4%) (3,467) 216 Transfer Payments 15,605 0 15,605 15,863 (258) (1.7%) (132) (126) Support Services 64 0 64 64 (0) (0.6%) 3 (3) GROSS EXPENDITURE 252,559 1,180 253,739 256,345 (2,606) (1.0%) (2,949) 343 Income (5,595) (797) (6,392) (7,110) 718 11.2% 875 (157) NET EXPENDITURE 246,964 383 247,347 249,235 (1,888) (0.8%) (2,074) 186
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 5 January 2024 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES Objective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Directorate 480 0 480 397 83 17.3% 85 (2) Early learning and childcare 34,510 (11) 34,499 33,095 1,404 4.1% 1,616 (212) Primary 63,957 202 64,159 63,449 710 1.1% 37 673 Secondary 87,401 58 87,459 87,799 (340) (0.4%) (591) 251 ASN (Special) Schools 6,870 44 6,914 6,884 30 0.4% 71 (41) Additional support for learning (ASL) 16,892 242 17,134 17,934 (800) (4.7%) (750) (50) Psychological services 836 0 836 936 (100) (12.0%) (100) 0 Education development 2,165 (5) 2,160 2,235 (75) (3.4%) 0 (75) Attainment Challenge (818) 0 (818) (818) 0 0.0% 0 0 Facilities management 604 (11) 593 536 57 9.7% 63 (6) Children & Families 34,067 (136) 33,931 36,789 (2,858) (8.4%) (2,505) (353) NET EXPENDITURE 246,964 383 247,347 249,235 (1,888) (0.8%) (2,074) 186 Objective Heading Key Reasons for Projected Variance Early Learning and Childcare 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). Primary Schools An underspend in Employee Costs is projected in relation to Teachers' Salaries. This reflects the increase in projected Teacher Induction Scheme funding compared to previous assumptions.
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Appendix 2 Secondary Schools 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. Additional Support for Learning An overspend in Transport Costs is projected. This is due to increases in the cost of transport contracts for pupils with additional support needs. Psychological Services An overspend in Employee Costs is projected in relation to Educational Psychologists. This will be offset by underspends in other divisions. 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.
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Appendix 3 Prior Years Annual Budget Budget Revised Projected Expenditure at P8 Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023-24 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) 10,421 203 0 203 60 143 70% 10,623 10,480 143 1% Paisley Grammar New Campus 4,819 1,800 0 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 6,086 0 6,086 5,943 143 2% 124,850 124,707 143 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) 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 5th January 2024