Revenue and Capital Budget Monitoring 2022-23 Period 6 Final ECSPB 27 10 22
Renfrewshire Council · 27 October 2022
Back to Education and Children's Services Policy Board — 27 October 2022 and its agenda
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Page 1 of 4 To: Education and Children’s Services Policy Board On: 27 October 2022 Report by: Director of Finance and Resources and Director of Children’s Services Heading: Revenue and Capital Budget Monitoring as at 16 September 2022 1. Summary of Financial Position 1.1. The projected Revenue outturn at 31 March 2023 for Children’s Services is an overspend of £5.434m (2.4%) 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 £m Projected Outturn £m Budget Variance £m Budget Variance % Children’s Services £225.967 £231.401 (£5.434) (2.4%) Table 2: Capital Division Revised Annual Budget £m Projected Outturn £m Budget Variance £m Budget Variance % Children’s Services £15.488 £15.388 £0.100 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
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Page 2 of 4 estimates and confirmed government support at this point in time; forecasts are likely to be subject to fluctuation as the year progresses; 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 £5.434m (2.4% 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 projected outturn is based on available information and assumptions made by service budget holders in September 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 table showing the objective analysis (which division is spending the budget). 3.4. A £4.454m overspend is anticipated within Children & Families related mainly to external residential accommodation placements. During the second year of the pandemic the service required to place a number of children and young people in external residential accommodation. These placements have resulted in overspend due to the cost of the specialised services required to meet the complex needs of the children and young people who have been accommodated. 3.5. 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. 3.6. The impact of rising energy costs across the various divisions of service is contributing a further £1.502m to the full-year projected overspend. This service is responsible for around 75% of the Council’s annual electricity and gas costs. 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that budget adjustments totalling £0.971m have been processed since the last report. These relate mainly to an adjustment reflecting the impact on employer National Insurance costs of the Health and Social Care Levy (£0.655m) and funding for additional support for learning services (£0.190m) in relation to a Getting it Right for Every Child lead officer post and summer activity camps. 5. Children’s Services Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3 March 2022.
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Page 3 of 4 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 2022/23 and new budget awarded by Council on 3 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 no Capital budget adjustments since the last report. ___________________________________________________________________ Implications of this report 1. Financial The projected budget outturn position for Children’s Services’ Revenue budget is an overspend of £5.434m. 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. 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.
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Page 4 of 4 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 7377 Kevin Festorazzi, Extension 4885
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Appendix 1 Page 1 of 1 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 154,999 933 155,932 155,197 735 0.5% 937 (202) Premises Related 9,242 (21) 9,221 10,863 (1,642) (17.8%) (13) (1,629) Transport Related 4,601 (3) 4,598 5,496 (898) (19.5%) (707) (191) Supplies and Services 35,242 (211) 35,031 34,252 779 2.2% 1 778 Third Party Payments 13,151 48 13,199 17,875 (4,676) (35.4%) (4,701) 25 Transfer Payments 14,173 221 14,394 14,650 (256) (1.8%) 21 (277) Support Services 42 4 46 38 8 17.6% (48) 56 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 231,450 971 232,421 238,372 (5,950) (2.6%) (4,511) (1,439) Income (6,454) 0 (6,454) (6,971) 517 8.0% 121 396 NET EXPENDITURE 224,996 971 225,967 231,400 (5,434) (2.4%) (4,390) (1,043) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES
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Appendix 2 Page 1 of 1 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Directorate 485 1 486 486 0 0.0% 0 0 Early learning and childcare 34,013 43 34,056 32,374 1,682 4.9% 1,235 447 Primary 56,474 305 56,779 57,892 (1,113) (2.0%) (134) (979) Secondary 78,189 312 78,501 79,236 (735) (0.9%) (142) (593) ASN (Special) Schools 6,361 36 6,397 6,484 (87) (1.4%) 95 (182) Additional support for learning (ASL) 15,295 146 15,441 16,129 (688) (4.5%) (416) (272) Psychological services 741 3 744 783 (39) (5.2%) (45) 6 Education development 1,845 (55) 1,790 1,790 0 0.0% (17) 17 Attainment Challenge 655 (20) 635 635 0 0.0% 17 (17) Facilities management 598 0 598 598 0 0.0% (99) 99 Child care 30,340 200 30,540 34,994 (4,454) (14.6%) (4,884) 430 NET EXPENDITURE 224,996 971 225,967 231,401 (5,434) (2.4%) (4,390) (1,044) Objective Heading Directorate Early Learning and Childcare Primary Schools Secondary Schools ASN Schools Additional Support for Learning Psychological Services Education Development Facilities Management Children & Families Key Reasons for Projected Variance No significant projected year end variances to report. A projected underspend in Employee Costs is due to vacancies within Early Learning & Childcare Centres, and is partly offset by a projected overspend in Premises Costs, resulting from an expected increase in energy costs. Overspends in Premises Costs and Transport Costs are projected. The overspend in Premises Costs is due an expected increase in energy and refuse collection costs. The overspend in Transport is due to an expected increase in the cost of the mainstream school transport contract. Overspends in Premises Costs and Transport Costs are projected. The overspend in Premises Costs is due an expected increase in energy and refuse collection costs. The overspend in Transport is due to an expected increase in the cost of the mainstream school transport contract. An overspend in Premises Costs is projected. This is due to an expected increase in energy costs. An overspend in Transport Costs is projected. This is due to increases in the cost of transport contracts for pupils with additional support needs. An overspend in Employee Costs is projected. No significant projected year end variances to report. No significant projected year end variances to report. An overspend in Transfer Payments is projected, mainly in relation to Residential Accommodation placements, where the number of complex, expensive packages has increased significantly. The service is currently reviewing all external placements in order to identify their purpose and to explore options for mitigation of cost pressure. RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 Budget Variance (Adverse) or Favourable POLICY BOARD : EDUCATION & CHILDREN'S SERVICES
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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 16th September 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