ECSPB 16.01.2025 - Revenue and Capital Budget Monitoring as at 8 November 2024
Renfrewshire Council · 16 January 2025
Back to Education and Children's Services Policy Board — 16 January 2025 and its agenda
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To: Education and Children’s Services Policy Board On: 16 January 2025 Report by: Director of Finance and Resources and Director of Children’s Services Heading: Revenue and Capital Budget Monitoring as at 8 November 2024 1. Summary of Financial Position 1.1. The projected Revenue outturn at 31 March 2025 for Children’s Services is an overspend of £0.901m (0.3%) against the revised budget for the year. 1.2. The projected Capital outturn at 31 March 2025 for Children’s Services is a break-even position. 1.3. This is summarised 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 257.585 258.486 (0.901) (0.3%) Table 2: Capital Division Revised Annual Budget £m Projected Outturn £m Budget Variance £m Budget Variance % Children’s Services 30.286 30.286 0 0% 2. Recommendations Members are requested to: 2.1. Note the projected Revenue outturn position for Children’s Services detailed in Table 1 above; 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 6 and 7.
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3. Children’s Services Revenue Budget Projection - overspend of £0.901m by 31 March 2025 3.1. The Revenue Budget Monitoring report at Appendix 1 identifies a projected annual overspend of £0.901m (0.3% of total budget). 3.2. It should be noted that the projected outturn position reported here is based on the latest information available, which is subject to change during the financial year. The impact of any change on this projection will be updated at each board cycle until the close of reporting Period 10. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis - Significant Variances 4.1. Early Learning & Childcare - £0.551m underspend Employee costs are currently projected to underspend, mainly due to vacancies. This is under review with management. 4.2. Primary Schools - £1.833m underspend Employee costs are currently projected to underspend and this is partly offset by projected overspends in Premises costs and Transport costs. The projected underspend in Employee costs arises mainly within teachers’ salaries. The Premises costs overspend is largely due to increased refuse collection costs and demand for janitorial supplies, and the Transport costs overspend is due to the SPT school transport contract being greater than available budget. 4.3. Secondary Schools - £0.734m overspend Employee costs, Premises costs and Transport costs are currently projected to overspend. The overspend in Employee costs mainly arises within teachers’ salaries, the overspend in Premises costs is mainly due to refuse collection costs, and the Transport costs overspend is due to the SPT school transport contract being greater than available budget. 4.4. ASN Schools - £0.490m overspend Employee costs are currently projected to overspend, mainly arising within teachers’ salaries. This is due to historic budget levels not keeping pace with increasing pressure on ASN School provision and this will be kept under review. 4.5. Additional Support for Learning - £0.623m overspend Employee costs and Transport costs are currently projected to overspend. The overspend in Employee costs mainly arises due to an increase in demand for Additional Support Needs Assistants (ASNAs) within mainstream schools. The Transport costs overspend is due to the cost of ASN transport contracts being higher than available budget. 4.6. Facilities Management - £0.082m underspend Premises costs and Supplies and Services are projected to underspend and are partly offset by a small projected overspend in Employee costs. The
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Premises costs underspend may reduce during the year, as more of this budget is committed to small property repairs across the school estate. 4.7. Children & Families - £1.501m overspend Supplies and services, Third Party payments and Transfer payments are currently projected to overspend, partly offset by an underspend in Employee costs due to staffing turnover. The Supplies and Services projected overspend mainly relates to demand for both Care at Home for children with additional support needs, and payments to care leavers. The overspend in Third Party payments relates mainly to Fostering and Adoption services. The overspend in Transfer payments relates to Section 22 payments across localities. These areas will be kept under review. 5. Subjective Analysis - Significant Variances 5.1. Employees - £1.197m underspend A projected underspend in Primary teaching staffing is partly offset by projected overspends in Secondary and ASN teaching staffing. Projected underspends in non-teaching staffing in Children & Families and Early Learning & Childcare, arising mainly from staff turnover, are partly offset by an overspend in Additional Support for Learning due to the demand for Additional Support Needs Assistants (ASNAs). 5.2. Premises Related - £0.289m overspend The overspend in Premises costs is mainly due to increased janitorial costs and refuse collection costs across the school estate. 5.3. Transport Related - £0.291m overspend The overspend in Transport costs is due to SPT contracts for both mainstream school transport and ASN transport being higher than available budget. 5.4. Supplies & Services £0.762m overspend The overspend in Supplies & Services relates mainly to payments to care leavers and increased demand for Care at Home services for children with additional support needs. 5.5. Third Party Payments - £0.606m overspend The projected overspend in Third Party payments relates to Fostering and Adoption fees, following the implementation of the national rate for fostering allowances, and services related to Children with Disability, related to projected placement costs. 5.6. Transfer Payments - £0.803m overspend The projected overspend in Transfer payments relates mainly to Children & Families, in particular Direct Payments and Section 22 payments.
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5.7. Income - £0.642m over-recovery A projected over-recovery of income is currently projected in Children & Families in relation to charges to other divisions of the service not reported to this Board. 6. Revenue Budget Adjustments 6.1. Under the Council’s financial regulations, Directors and their nominated officers, in consultation with the Director of Finance and Resources, have certain delegated authority to transfer sums between subjective budget headings within a service division to enable budget management throughout the financial year. This is known as ‘budget virement’. 6.2. Transfers between divisions of the same service / department in excess of £100,000, and transfers between services / departments must be authorised by the respective service Director and the Director of Finance and Resources for submission to the relevant policy board for approval. 6.3. The Director now seeks homologation from the Board for the following affected virements since the last report: Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Children’s Services Premises Related (0.067) Corporate Landlord transfers relating to small repair projects Environment, Housing & Infrastructure Premises Related 0.067 Corporate Landlord transfers relating to small repair projects 6.4. The following budget adjustment is in line with the earmarking of funds set aside in previous years, and is therefore for noting only: Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Children’s Services Various 0.955 Use of service reserves, including £0.935m drawdown of Whole Family Wellbeing Funding to match latest estimates of projected expenditure 7. Capital Budget Projection - break even position by 31 March 2025 7.1. The Capital Investment Programme 2024/25 to 2028/29 was approved by the Council on 29 February 2024. Education and Children’s Services revised Capital spend for 2024/25 is £30.286m.
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7.2. The in-year Capital budget is forecast to break-even by 31 March 2025, however, this will be monitored as the projects progress. Further details of the programme can be found in the Capital Monitoring report at Appendix 3. 7.3. A number of budget adjustments have taken place between years to reflect revised programming of some capital projects. Details of the adjustments made since the previous Board report, which amount to £1.337m, are as follows: Capital Budget Adjustments Project Amount (£m) Reason Thorn Primary School (new build) (0.850) Budget decelerated into 2025/26 Second Dargavel Primary School (new build) (0.575) Budget decelerated into 2025/26 Early Learning & Childcare adaptations 0.088 Budget increase for required work funded by Current Revenue and by contributions from the Lifecycle Capital Maintenance fund Total (1.337)
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___________________________________________________________________ Implications of this report 1. Financial The projected budget outturn position for Children’s Services’ Revenue budget is an overspend of £0.901m. 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 virement, 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 a break-even position, after the adjustments set out at section 7.3. The Capital programme will continue to be monitored closely for the rest of the financial year. 2. HR and Organisational Development While staffing budgets form a significant proportion of the Council’s revenue budgets, there are no direct implications arising from the recommendations in this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy and our future The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Building strong, safe and resilient communities Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Ongoing revenue and capital budget monitoring is a tool to enable good financial management so that the Council has resources now and in the future for continued service delivery. Working together to improve outcomes 4. Legal There are no direct implications arising from the recommendations in this report.
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5. Property/Assets The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets and infrastructure. 6. Information Technology While ICT assets and revenue costs are included within these reported budgets, there are no direct implications arising from the recommendations in this report. 7. Equality and Human Rights While new areas of spend may impact on particular groups, any such impact would be assessed prior to the spend being incurred, therefore there are no direct implications arising from the recommendations in this report. 8. Health and Safety The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets, which may in some cases rectify health and safety issues. 9. Procurement While Procurement is an important consideration prior to the Council incurring any revenue or capital spend, there are no direct implications arising from the recommendations in 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 There are no direct implications arising from the recommendations in this report. 12. Children’s Rights There are no direct implications arising from the recommendations in this report. 13. Climate Risk The Council aims to reduce its carbon and other emissions to net zero by 2030, however there are no direct implications arising from the recommendations in this report. 14. CoSLA Policy Position n/a
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____________________________________________________________ List of Background Papers: • Revenue Budget and Council Tax 2024/25, Council 29 February 2024 • Capital Investment Programme 2023/24 to 2027/28, Council 29 February 2024 Authors: Richard Conway, Finance Business Partner Geoff Borland, Finance Manager
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES Subjective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 179,256 876 180,132 178,935 1,197 0.7% 1,267 (70) Premises Related 9,488 (388) 9,100 9,389 (289) (3.2%) (319) 30 Transport Related 5,997 502 6,499 6,790 (291) (4.5%) (750) 459 Supplies and Services 31,791 (237) 31,554 32,316 (762) (2.4%) 44 (806) Third Party Payments 18,918 0 18,918 19,524 (606) (3.2%) (743) 137 Transfer Payments 15,904 528 16,432 17,235 (803) (4.9%) (926) 123 Support Services 941 0 941 930 11 1.2% 16 (5) GROSS EXPENDITURE 262,295 1,281 263,576 265,119 (1,543) (0.6%) (1,411) (132) Income (5,299) (692) (5,991) (6,633) 642 10.7% 752 (110) NET EXPENDITURE 256,996 589 257,585 258,486 (901) (0.3%) (659) (242)
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES Objective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Directorate 1,284 0 1,284 1,303 (19) (1.5%) (8) (11) Early learning and childcare 33,748 (89) 33,659 33,108 551 1.6% 819 (268) Primary 65,126 350 65,476 63,643 1,833 2.8% 1,729 104 Secondary 90,625 (183) 90,442 91,176 (734) (0.8%) (677) (57) ASN Schools 7,302 0 7,302 7,792 (490) (6.7%) (481) (9) Additional support for learning (ASL) 17,712 252 17,964 18,587 (623) (3.5%) (900) 277 Psychological services 1,280 0 1,280 1,280 0 0.0% 0 0 Education development 2,458 (1) 2,457 2,457 0 0.0% 0 0 Attainment Challenge (484) (316) (800) (800) 0 0.0% 0 0 Facilities management 546 (18) 528 446 82 15.5% 108 (26) Children & Families 37,399 594 37,993 39,494 (1,501) (4.0%) (1,249) (252) NET EXPENDITURE 256,996 589 257,585 258,486 (901) (0.3%) (659) (242)
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Appendix 3 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2024 2024-25 since previous 2024-25 2024-25 Budget Outurn Project Title Board report to 31-Mar-29 to 31-Mar-29 £000 £000 £000 £000 £000 £000 £000 EDUCATION & CHILDREN SERVICES Primary Schools Estate Programme(SEMP) 10,422 202 0 202 202 0 0% 10,623 10,623 0 0% Paisley Grammar New Campus 6,707 27,138 0 27,138 27,138 0 0% 85,600 85,600 0 0% Thorn PS New Build 79 1,000 (850) 150 150 0 0% 14,000 14,000 0 0% Dargavel Extension (Modular Units) 2,133 117 0 117 117 0 0% 2,250 2,250 0 0% DPS2 New Build 0 1,000 (575) 425 425 0 0% 45,000 45,000 0 0% Other Schools Investment Programmes 0 213 0 213 213 0 0% 213 213 0 0% Total Schools Estate(inc Early Years) Programme 1,553 302 0 302 302 0 0% 1,855 1,855 0 0% PMHS Extension 0 1,000 0 1,000 1,000 0 0% 37,000 37,000 0 0% ELCC Improvements 0 0 88 88 88 0 0% 88 88 0 0% Technology Replacement Strategy ICT 0 651 0 651 651 0 0% 1,851 1,851 0 0% TOTAL EDUCATION & CHILDREN'S SERVICES BOARD 20,894 31,623 (1,337) 30,286 30,286 0 0% 198,480 198,480 0 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. CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES Budget Variance (Adverse) or Favourable Current Year 2024-25 Budget Variance (Adverse) or Favourable Full Programme - All years RENFREWSHIRE COUNCIL 1st April to 8th November 2024 POLICY BOARD: EDUCATION & CHILDEN'S SERVICES