1 - Revenue and Capital Budget Monitoring Report
Renfrewshire Council · 13 February 2025
Back to Finance, Resources and Customer Services Policy Board — 13 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
___________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 13 February 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring 2024/25 at 8 November 2024 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 8 on 8 November 2024, the projected revenue outturn at 31 March 2025 for those services reporting to the Finance, Resources and Customer Services Policy Board is an underspend position of £2.053m (2.1%) against the revised budget for the year. 1.2 The projected capital outturn at 31 March 2025 for projects reporting to the Finance, Resources and Customer Services Policy Board is a break-even position. 1.3 This is summarised over the relevant services in the table below and further analysis is provided in the report and appendices. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Finance and Resources 44,195 44,123 72 0.2% Environment, Housing and Infrastructure 23,210 24,077 (867) (3.7%) Chief Executive's Service (Estates) 273 425 (152) (55.7%) Miscellaneous 28,197 25,197 3,000 10.6% Total 95,875 93,822 2,053 2.1% Capital Finance, Resources and Customer Services Policy Board 9,269 9,269 0 0.0%
Page 2
2. Recommendations 2.1 Members are requested to: a) Note the projected Revenue outturn underspend position of £2.053m; b) Note the projected Capital outturn break-even position; and c) Note the budget adjustments detailed at sections 6 and 7. 3. Revenue Budget Projection – underspend of £2.053m by 31 March 2025 3.1 The tables in Appendix 1 present the projected year-end position for all services reporting to this Board, by both subjective analysis (what the budget is spent on) and objective analysis (which division is spending the budget). Significant variances affecting the projected position are analysed further below. 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 Finance and Resources - £0.072m underspend This forecast position mainly reflects the minor staffing underspend in Internal Audit. 4.2 Environment, Housing and Infrastructure - £0.867m overspend Within Public Building Repairs, there is an anticipated overspend of £0.739m. This is due to the continued inflationary and cost pressures that have been experienced by the service over the last few financial years. The position has improved since last year and continues to be closely monitored. Mitigating actions will be taken by management where appropriate. Soft Facilities Management is forecasting an in overspend of £0.128m. In the main, the cost of provisions are continually increasing due to inflationary pressures and are now expecting to overspend as a result. However, this overspend is being offset by a projected underspend in employee costs due to the level of vacancies within the service. In relation to income, the service is expecting an under-recovery as a result of a reduction in recharge income and HQ car park income, along with lower than budgeted school meal income expected in the final quarter of the financial year. This reduced
Page 3
income relates to the provision of free school meals to P6 and P7 pupils whose family receives the Scottish Child Payment. The position will be closely monitored throughout the year and any further updates provided to Board. Building Services indicates a break-even position, because its costs are fully recharged to the HRA and Public Building Repairs. Within these costs is a £0.347m recharge of materials, which arose due to a system error that resulted in materials issued from stock held in vans not being correctly allocated to jobs. This led to understated materials charges over a period from 2023/24. Improved processes and increased frequency of manual stock checks have now been implemented to ensure accurate stock recording and recharging going forward. The correction will be managed through the overhead recharge process within Building Services and recovered as income during 2024/25. 4.3 Chief Executive’s Service (Estates) - £0.152m overspend This forecast position mainly reflects an anticipated under-recovery in rental income as a result of a property at Houston Square held vacant as part of the delivery of the Johnstone Vision regeneration programme, together with costs to maintain surplus properties and progress them to sale. 4.4 Miscellaneous Services – £3.000m underspend As previously indicated to board, there is an anticipated over-recovery of investment interest income owing to interest rates remaining at a level higher than the established income budget, and this is now forecast to bring an additional £3.000m of investment income to General Services. 5. Subjective Analysis – Significant Variances 5.1 Employee Costs - £1.074m underspend Environment, Housing and Infrastructure is projecting an underspend of £1.259m, which reflects current high staff turnover and recruitment challenges. This is partly offset by projected overspend in Finance and Resources (£0.185m) mainly due to lower than expected levels of staff turnover at this stage in the financial year. This position is being managed and will continue to be closely monitored for the remainder of the year. 5.2 Premises Related - £1.136m overspend This projected overspend predominantly relates to repairs and maintenance in Public Building Repairs due the continued inflationary and cost pressures that have been experienced by the service over the last few financial years. It is partly offset by underspends and income elsewhere in the service at
Page 4
present. The position has stabilised since last year and continues to be closely monitored. 5.3 Supplies and Services - £0.612m overspend This projected overspend predominantly sits within Environment, Housing & Infrastructure on work by contractors within Property Services, and provisions within Soft FM and Building Services, the costs of which are recovered through recharge income. Included here is the £0.347m recharge of Building Services’ materials noted in paragraph 4.2 above. 5.4 Income - £2.834m over-recovery The main factor in this forecast is the anticipated over-recovery in investment income, as noted in paragraph 4.4 above. 6. Revenue Budget Virements 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 following budget adjustments reflect allocations of funding to services, and are therefore for noting only: Revenue Budget Adjustments for noting Objective Heading Subjective Heading Amount (£m) Reason Miscellaneous Employees 2.566 Scottish Government funding allocation for pay award 2024/25 Miscellaneous Third Party Payments 0.692 Children Service’s Social Care Pay Uplift for Commissioned Services Miscellaneous Transfer Payments 0.377 Abbey House Property Review Savings Miscellaneous Finance & Resources Finance & Resources Employee Costs Transfer Payments Income (0.204) (0.521) 0.725 Housing Benefits and Overpayments realignment Miscellaneous Finance & Resources Transfer Payments Transfer Payments (0.200) 0.200 Scottish Welfare Fund top-up allocation
Page 5
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. Finance, Resources and Customer Services approved capital spend for 2024/25 is £9.259m. 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 2. 7.3 Budget adjustments totalling £0.010m have taken place to reflect budget transfers and increases on the programming of some capital projects. The revised capital spend for 2024/25 is £9.269m, and details of the adjustments are as follows: Capital Budget Adjustments Project Amount (£m) Reason Lifecycle Capital Maintenance Fund (0.046) Budget contribution to Early Learning and Childcare Adaptations Greenspaces and Parks 0.126 Budget increase via CFCR (contribution from current revenue) Retail Improvement Fund (0.070) Budget transferred to Retail Improvement Scheme within Economy and Regeneration Total 0.010 Implications of the Report 1. Financial The projected budget outturn position for Finance, Resources and Customer Services’ Revenue budget is an underspend of £2.053m (2.1%) at 31 March 2025. Income and expenditure will continue to be monitored closely for the rest of the financial year and as far as possible, steps will be taken to mitigate any overspends. The projected outturn position for Finance, Resources and Customer Services’ Capital budget is break-even, after the adjustments outlined at section 7.
Page 6
2. HR & 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. 5. Property/Assets The capital expenditure noted in this report will result mainly in lifecycle maintenance improvements to existing properties, replacement of ICT assets and infrastructure and replacement of artificial pitches. 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 & 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.
Page 7
8. Health & 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 financial risk that the Council will overspend its approved revenue budgets for the year is 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. Cosla Policy Position N/a 13. Children’s Rights There are no direct implications arising from the recommendations in this report. 14. Climate Change 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. List of Background Papers • Revenue Budget and Council Tax 2024/25, Council 29 February 2024 • The Capital Investment Programme 2024/25 to 2028/29, Council 29 February 2024 Author: Valerie Howie and Lisa Dickie, Finance Business Partners; Alison Burns, Corporate Finance Manager; and Geoff Borland, Finance Manager
Page 8
Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER 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 Finance and Resources 43,796 399 44,195 44,123 72 0.2% 67 5 Environment, Housing and Infrastructure 23,256 (46) 23,210 24,077 (867) (3.7%) (684) (183) Chief Executive's Service (Estates) 273 0 273 425 (152) (55.7%) (132) (20) Miscellaneous 25,009 3,188 28,197 25,197 3,000 10.6% 2,400 600 NET EXPENDITURE 92,334 3,541 95,875 93,822 2,053 2.1% 1,651 402 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 86,236 2,199 88,435 87,361 1,074 1.2% 804 270 Premises Related 13,934 149 14,083 15,219 (1,136) (8.1%) (888) (248) Transport Related 2,308 (70) 2,238 2,339 (101) (4.5%) (64) (37) Supplies and Services 26,650 (9) 26,641 27,253 (612) (2.3%) (558) (54) Third Party Payments 1,898 692 2,590 2,567 23 0.9% 24 (1) Transfer Payments 46,960 (120) 46,841 46,835 6 0.0% 23 (17) Support Services 749 0 749 783 (34) (19.1%) 11 (45) Depreciation and Impairment Losses 9,182 0 9,182 9,182 0 0.0% 0 0 GROSS EXPENDITURE 187,917 2,842 190,759 191,539 (780) (0.4%) (649) (132) Income (95,583) 700 (94,884) (97,717) 2,834 3.0% 2,300 534 NET EXPENDITURE 92,334 3,541 95,875 93,822 2,053 2.1% 1,651 402
Page 9
Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER 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 Finance and Resources Directorate (873) 9 (864) (932) 68 7.9% 70 (2) Audit Services 612 (2) 610 540 70 11.5% 68 2 Corporate Governance 3,027 0 3,027 2,979 48 1.6% 32 16 Digital, Transformation & Customer Services 23,357 (5) 23,352 23,393 (41) (0.2%) (40) (1) Finance and Procurement 4,747 (1) 4,746 4,738 8 0.2% 12 (4) Business Services 8,280 195 8,475 8,475 0 0.0% 0 0 Housing Benefits 1,691 204 1,895 1,893 2 0.1% (1) 3 People & Organisational Development 2,137 (1) 2,136 2,204 (68) (3.2%) (59) (9) Social care (non-delegated) 818 0 818 833 (15) (1.8%) (15) 0 NET EXPENDITURE 43,796 399 44,195 44,123 72 0.2% 67 5
Page 10
Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES - FINANCE & RESOURCES 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 33,848 10 33,858 34,043 (185) (0.5%) (201) 16 Premises Related 2,579 11 2,590 2,527 63 2.4% 62 1 Transport Related 259 0 259 239 20 7.7% 20 0 Supplies and Services 11,750 0 11,750 11,732 18 0.2% 20 (2) Third Party Payments 1,883 0 1,883 1,860 23 1.2% 24 (1) Transfer Payments 46,762 (322) 46,441 46,447 (7) 0.0% (7) 0 Support Services 486 0 486 480 6 1.2% 26 (20) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 97,567 (301) 97,267 97,328 (62) (0.1%) (56) (6) Income (53,771) 700 (53,072) (53,205) 134 0.3% 123 11 NET EXPENDITURE 43,796 399 44,195 44,123 72 0.2% 67 5
Page 11
Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES - ENVIRONMENT, HOUSING AND INFRASTRUCTURE 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 Building Services 109 0 109 109 0 0.0% 0 0 Public Building Repairs 3,947 119 4,066 4,805 (739) (18.2%) (440) (299) Soft Facilities Management Services 18,997 (25) 18,972 19,100 (128) (0.7%) (244) 116 Property Services 203 (140) 63 63 0 0.0% 0 0 NET EXPENDITURE 23,256 (46) 23,210 24,077 (867) (3.7%) (684) (183) 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 31,506 (114) 31,392 30,133 1,259 4.0% 1,005 254 Premises Related 3,627 138 3,765 4,877 (1,112) (29.5%) (867) (245) Transport Related 1,649 (70) 1,579 1,700 (121) (7.7%) (84) (37) Supplies and Services 12,638 0 12,638 13,268 (630) (5.0%) (578) (52) Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 155 0 155 127 28 18.1% 29 (1) Support Services 1,222 0 1,222 1,262 (40) (3.3%) (15) (25) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 50,797 (46) 50,751 51,367 (616) (1.2%) (510) (106) Income (27,541) 0 (27,541) (27,290) (251) 0.9% (174) (77) NET EXPENDITURE 23,256 (46) 23,210 24,077 (867) (3.7%) (684) (183)
Page 12
Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES - CHIEF EXECUTIVE'S SERVICE (ESTATES) 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 0 0 0 0 0 0.0% 0 0 Premises Related 1,128 0 1,128 1,215 (87) (7.7%) (83) (4) Supplies and Services 4 0 4 4 0 0.0% 0 0 Transfer Payments 66 0 66 82 (16) (24.2%) 0 (16) Support Services 441 0 441 441 0 0.0% 0 0 GROSS EXPENDITURE 1,639 0 1,639 1,742 (103) (6.3%) (83) (20) Income (1,366) 0 (1,366) (1,317) (49) (3.6%) (49) 0 NET EXPENDITURE 273 0 273 425 (152) (55.7%) (132) (20)
Page 13
Appendix 1 RENFREWSHIRE COUNCIL+D178:L194 REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES - MISCELLANEOUS 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 20,882 2,303 23,185 23,185 0 0.0% 0 0 Premises Related 6,600 0 6,600 6,600 0 0.0% 0 0 Transport Related 400 0 400 400 0 0.0% 0 0 Supplies and Services 2,258 (9) 2,249 2,249 0 0.0% 0 0 Third Party Payments 15 692 707 707 0 0.0% 0 0 Transfer Payments (23) 202 179 179 0 0.0% 0 0 Support Services (1,400) 0 (1,400) (1,400) 0 0.0% 0 0 Depreciation and Impairment Losses 9,182 0 9,182 9,182 0 0.0% 0 0 GROSS EXPENDITURE 37,914 3,188 41,102 41,102 0 0.0% 0 0 Income (12,905) 0 (12,905) (15,905) 3,000 23.2% 2,400 600 NET EXPENDITURE 25,009 3,188 28,197 25,197 3,000 10.6% 2,400 600
Page 14
Appendix 2 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 CORPORATE PROJECTS ICT Infrastructure Maintenance & Renewal Programme 0 1,247 0 1,247 1,247 0 0% 3,369 3,369 0 0% Lifecycle Capital Maintenance (LCM) Fund 0 6,484 (46) 6,438 6,438 0 0% 24,051 24,051 0 0% Artificial Pitch Upgrades 1,277 524 0 524 524 0 0% 1,801 1,801 0 0% Digital Infrastructure Provision 1,904 32 0 32 32 0 0% 1,936 1,936 0 0% Commnunity Empowerment Fund 462 552 0 552 552 0 0% 1,014 1,014 0 0% Villages Improvement Fund 274 276 0 276 276 0 0% 550 550 0 0% Greenspaces and Parks 0 0 126 126 126 0 0% 126 126 0 0% Retail Improvement Fund 76 144 (70) 74 74 0 0% 150 150 0 0% TOTAL FINANCE, RESOURCES & CUSTOMER SERVICES BOARD 3,993 9,259 10 9,269 9,269 0 0% 32,997 32,997 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. Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 8th November 2024 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES Current Year 2024-25 Full Programme - All years