Education and Children Policy Board Period 3 2022-23
Renfrewshire Council · 18 August 2022
Back to Education and Children's Services Policy Board — 18 August 2022 and its agenda
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Page 1 of 4 To: Education and Children’s Services Policy Board On: 18 August 2022 Report by: Director of Finance and Resources and Director of Children’s Services Heading: Revenue and Capital Budget Monitoring as at 24 June 2022 1. Summary of Financial Position 1.1. The projected Revenue outturn at 31 March 2023 for Children’s Services is an overspend of £4.390m (2.0%) against the revised budget for the year. 1.2. The projected Capital outturn at 31 March 2023 for Children’s Services is an underspend of £0.100m (0.6%). 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 £000 Projected Outturn £000 Budget Variance £000 Budget Variance % Children’s Services £224.996 £229,386 (£4,390) (2.0%) Table 2: Capital Division Revised Annual Budget £000 Projected Outturn £000 Budget Variance £000 Budget Variance % Children’s Services £15,488 £15,388 £100 0.6% 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; forecasts are likely to be subject to fluctuation as the year progresses.
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Page 2 of 4 2.2. Note 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 £4.390m (2.0% of total budget). Detailed division service reports can be found in Appendix 2, along with an explanation of each significant projected variance. 3.2. The projected outturn is based on available information and assumptions made by service budget holders in June 2022. These assumptions will be refined during the year as more information becomes available. 3.3. The main reasons for the projected outturn position are indicated below the tables showing the objective analysis (which division is spending the budget). 3.4. In particular, a £4.884m overspend is anticipated within Children & Families relating to external Residential Accommodation placements, the number of which is currently around 80% higher than it had been around eighteen months ago in 2020-21. Due to the complexity of cases arising in recent months, the average weekly cost per external placement is expected to be around 5% higher during 2022-23 than it was in 2020-21 and, coupled with the additional number of placements required, this presents a significant cost pressure to the service. 3.5. The cost pressures relating to external Residential Accommodation placements have continued to build since the latter part of 2021-22, and in that financial year the impact was mitigated through the application of COVID-19 funding where appropriate. The service is currently reviewing the detail and purpose of all external placements in order to explore options to mitigate the ongoing cost pressure going forward. 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that budget adjustments totalling £4.278m have been processed since the budget was approved. These relate mainly to an adjustment to reflect the teachers’ pay award for 2021-22, which was agreed after the budget was approved, and the carry forward of budget from previous years for a number of service areas. 5. Children’s Services Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3rd March 2022. 5.2. The Capital Monitoring report at Appendix 3 indicates changes totalling £2.129m in the approved capital programme for Education and Children’s Services. This largely relates to budget carried forward from 2021-22 into
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Page 3 of 4 2022-23 and new budget awarded by Council on 3rd March 2022 from the Strategic Asset Management Fund. 5.3. Further detail, including reasons for significant variances, can be found at Appendix 3. 6. Capital Budget Adjustments 6.1. There have been budget changes totalling £2.129m since the last report: Budget brought forward from 2021-22 to 2022-23 (£1.494m): • Primary School Estate Programme (£0.233m) for timing of outstanding work to be completed and projected underspends; • Other Schools Investment Programmes (£1.261m): o To reflect timing of toilet upgrade projects including Trinity High School and Auchenlodment Primary School. Budget carried from 2022-23 into 2021-22 (£1.494m): • Paisley Grammar new Campus (£0.215m): o For updated cash flows for the project to reflect payments made in March 2022. Budget transfers in 2022-23 (£0.850m): • Other Schools Investment Programmes (£0.850m): o Budget transfer from Strategic Asset Management Fund of £0.650m as approved by Council on 4th March 2022 to support programme of improvements across schools and early years estate. o Budget transfer from Lifecycle Capital Maintenance of £0.200m to support fabric works at Bishopton Primary refurbishment following tender evaluations. ___________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for Children’s Services’ Revenue budget is an overspend of £4.390m. Income and expenditure will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any overspend including applying flexibility within specific grant funding as permitted by the Scottish Government. The projected outturn position for Children’s Services’ Capital budget is an underspend of £0,100m. The Capital programme will continue to be monitored closely for the rest of the financial year. Any changes to current projections in either Revenue or Capital budgets will be reported to the board as early as possible, along with an explanation for the movement.
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Page 4 of 4 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. 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, Extension 6133 Kevin Festorazzi, Extension 4885
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Appendix 1 Page 1 of 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Core Business Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 151,930 3,069 154,999 154,062 154,062 937 0.6% Premises Related 9,190 52 9,242 9,255 9,255 (13) (0.1%) Transport Related 4,425 176 4,601 5,308 5,308 (707) (15.4%) Supplies and Services 30,695 4,547 35,242 35,241 35,241 1 0.0% Third Party Payments 13,983 (832) 13,151 17,852 17,852 (4,701) (35.7%) Transfer Payments 11,983 2,190 14,173 14,152 14,152 21 0.1% Support Services 41 1 42 90 90 (48) (113.6%) Depreciation and Impairment Losses 0 0 0 0 0 0 0.0% GROSS EXPENDITURE 222,247 9,203 231,450 235,961 235,961 (4,511) (1.9%) Income (1,529) (4,925) (6,454) (6,575) (6,575) 121 1.9% NET EXPENDITURE 220,718 4,278 224,996 229,386 229,386 (4,390) (2.0%) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES
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Appendix 2 Page 1 of 1
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Appendix 3 Page 1 of 1 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2022* 2022-23 in 2022-23 2022-23 2022-23 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) 42,665 0 233 233 133 100 43% 42,898 42,798 100 0% Paisley Grammar New Campus 1,110 10,950 (215) 10,735 10,735 0 0% 41,250 41,250 0 0% Primary Schools Estate Programme(SEMP 2020) 0 0 0 0 0 0 0% 10,000 10,000 0 0% Other Schools Investment Programmes 22,057 2,009 2,111 4,120 4,120 0 0% 26,231 26,231 0 0% Technology Replacement Strategy ICT 0 400 0 400 400 0 0% 2,000 2,000 0 0% TOTAL EDUCATION & CHILDREN'S SERVICES BOARD 81,011 13,359 2,129 15,488 15,388 100 1% 137,558 137,458 100 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 24th June 2022 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 2022-23 Budget Variance (Adverse) or Favourable Full Programme - All years