ECSPB 13.03.2025 - Revenue and Capital Budget Monitoring as at 7 January 2025
Renfrewshire Council · 13 March 2025
Back to Education and Children's Services Policy Board — 13 March 2025 and its agenda
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To: Education and Children’s Services Policy Board On: 13 March 2025 Report by: Director of Finance and Resources and Director of Children’s Services Heading: Revenue and Capital Budget Monitoring as at 7 January 2025 1. Summary of Financial Position 1.1. The projected Revenue outturn at 31 March 2025 for Children’s Services is an overspend of £1.059m (0.4%) 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 264.803 265.862 (1.059) (0.4%) 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 £1.059m by 31 March 2025 3.1. The Revenue Budget Monitoring report at Appendix 1 identifies a projected annual overspend of £1.059m (0.4% 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. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis - Significant Variances 4.1. Early Learning & Childcare - £0.787m underspend Employee costs are currently projected to underspend, mainly due to vacancies. This is under review with management. 4.2. Primary Schools - £0.038m overspend Premises costs, Transport costs and Supplies and Services are projected to overspend and are partly offset by a projected underspend in Employee costs, which arises mainly within teachers’ salaries. The movement since last period’s forecast is due mainly to the in-year realignment of underspent teachers’ salary budgets into Secondary and ASN Schools. This is reflected in paragraph 6.3. 4.3. Secondary Schools - £0.149m overspend Premises costs and Transport costs are currently projected to overspend and are partly offset by a projected underspend in Employee costs, mainly within teachers’ salaries. The overspend in Premises costs is mainly due to refuse collection costs; the Transport costs overspend is partly due to the SPT school transport contract being greater than available budget, and partly due to the costs of transporting pupils from Castlehead High School to the Lagoon Leisure Centre for PE earlier in the year whilst remedial works relating to RAAC (reinforced autoclaved aerated concrete) were being carried out. The movement since last period’s forecast is due to the in-year realignment of underspent teachers’ salary budgets from the Primary Schools division. This is reflected in paragraph 6.3. 4.4. ASN Schools - £0.047m overspend Premises costs are currently projected to overspend and are partly offset by an underspend in Employee costs. The overspend in Premises costs is due to requirement for janitorial costs and water charges being greater than available budget, and the underspend in Employee Costs arises mainly within teachers’ salaries. The movement since last period’s forecast is due to the in-year realignment of underspent teachers’ salary budgets from the Primary Schools division. This is reflected in paragraph 6.3.
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4.5. Additional Support for Learning - £0.526m 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, predominantly caused by price inflation and, to a lesser extent, by an increasing number of children requiring transport. 4.6. Facilities Management - £0.058m underspend Premises costs and Supplies and Services are projected to underspend and are partly offset by a small projected overspend in Employee costs. The 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 - £1.109m overspend Supplies and Services 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 relates mainly to demand for both Care at Home for children with additional support needs, and payments to care leavers. The overspend in Transfer payments relates to Section 22 payments across localities. 5. Subjective Analysis - Significant Variances 5.1. Employees - £0.874m underspend Underspends are projected in both teaching and non-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 - £0.295m 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 - £0.414m overspend The overspend in Transport costs is due to SPT contracts for both mainstream school transport and ASN transport being higher than available budget, predominantly caused by price inflation and, to a lesser extent, by an increasing number of children requiring transport.
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5.4. Supplies & Services - £0.593m 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 - £0.252m overspend The projected overspend in Third Party payments relates mainly to services related to Children with Disabilities, particularly within placement costs. 5.6. Transfer Payments - £0.761m overspend The projected overspend in Transfer payments relates mainly to Children & Families, in particular Direct Payments and Section 22 payments. 5.7. Income - £0.370m 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 (0.040) Corporate Landlord transfers to Environment, Housing and Infrastructure relating to small repair projects Children’s Services Primary division Employee Costs – teaching staff (1.983) Realignment of teaching staff budgets across three service divisions in line with need, as discussed at previous Policy Board Children’s Services Secondary division Employee Costs – teaching staff 1.480 Children’s Services ASN Schools Employee Costs – teaching staff 0.503
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6.4. The following budget adjustments are in line with the earmarking of funds set aside in budget motion and the allocation of centrally-held budgets, and are therefore for noting only: Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Children’s Services Employee Costs 5.826 Agreed pay awards for non-teaching employees from 1 April 2024 and for teaching staff from 1 August 2024 Children’s Services Premises Costs 0.597 Realignment of non- domestic rates budgets Children’s Services Employee Costs 0.939 Realignment of Scottish Government funding to support newly qualified teachers 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. 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. There have been no budget adjustments since the previous Policy Board.
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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 £1.059m. 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. 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 7 January 2025 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 180,132 6,758 186,890 186,016 874 0.5% 1,197 (323) Premises Related 9,100 605 9,705 10,000 (295) (3.0%) (289) (6) Transport Related 6,499 0 6,499 6,913 (414) (6.4%) (291) (123) Supplies and Services 31,554 355 31,909 32,502 (593) (1.9%) (762) 169 Third Party Payments 18,918 0 18,918 19,170 (252) (1.3%) (606) 354 Transfer Payments 16,432 737 17,169 17,930 (761) (4.4%) (803) 42 Support Services 941 1 942 930 12 1.3% 11 1 GROSS EXPENDITURE 263,576 8,456 272,032 273,461 (1,429) (0.5%) (1,543) 114 Income (5,991) (1,238) (7,229) (7,599) 370 5.1% 642 (272) NET EXPENDITURE 257,585 7,218 264,803 265,862 (1,059) (0.4%) (901) (158)
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 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 1,284 6 1,290 1,326 (36) (2.8%) (19) (17) Early learning and childcare 33,659 919 34,578 33,791 787 2.3% 551 236 Primary 65,476 2,921 68,397 68,435 (38) (0.1%) 1,833 (1,871) Secondary 90,442 1,860 92,302 92,451 (149) (0.2%) (734) 585 ASN Schools 7,302 180 7,482 7,529 (47) (0.6%) (490) 443 Additional support for learning (ASL) 17,964 812 18,776 19,302 (526) (2.8%) (623) 97 Psychological services 1,280 46 1,326 1,326 0 0.0% 0 0 Education development 2,457 (13) 2,444 2,444 0 0.0% 0 0 Attainment Challenge (800) (32) (832) (832) 0 0.0% 0 0 Facilities management 528 (5) 523 465 58 11.1% 82 (24) Children & Families 37,993 523 38,516 39,625 (1,109) (2.9%) (1,501) 392 NET EXPENDITURE 257,585 7,218 264,803 265,862 (1,059) (0.4%) (901) (158)
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Appendix 3 Prior Years Approved Budget Revised Projected Total Approved Projected Expenditure Budget Adjustments Budget Outturn Budget Outurn to 31/03/2024 2024-25 since previous 2024-25 2024-25 to 31-Mar-29 to 31-Mar-29 Project Title Board report £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 79 150 0 150 150 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 0 425 0 425 425 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 88 0 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 30,286 0 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. RENFREWSHIRE COUNCIL 1st April to 7th January 2025 POLICY BOARD: EDUCATION & CHILDEN'S SERVICES Budget Variance (Adverse) or Favourable CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES Current Year 2024-25 Full Programme - All years Budget Variance (Adverse) or Favourable