Revenue and Capital Budget Monitoring Report
Renfrewshire Council · 3 April 2025
Back to Finance, Resources and Customer Services Policy Board — 3 April 2025 and its agenda
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___________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 3 April 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring 2024/25 at 7 January 2025 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 10 on 7 January 2025, 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 £1.610m (1.7%) 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 45,647 45,533 114 0.2% Environment, Housing and Infrastructure 24,251 25,592 (1,341) (5.5%) Chief Executive's Service (Estates) 387 550 (163) (42.1%) Miscellaneous 22,012 19,012 3,000 13.6% Total 92,297 90,687 1,610 1.7% Capital Finance, Resources and Customer Services Policy Board 7,175 7,175 0 0%
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2. Recommendations 2.1 Members are requested to: a) Note the projected Revenue outturn underspend position of £1.610m; 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 £1.610m 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. This is the last Budget monitoring report until the outturn position is presented to the Council in June. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis – Significant Variances 4.1 Finance and Resources - £0.114m underspend This forecast position mainly reflects the minor staffing underspend in Internal Audit. 4.2 Environment, Housing and Infrastructure - £1.341m overspend Within Public Building Repairs, there is an anticipated overspend of £1.300m. 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 continues to be closely monitored, and mitigating actions are being taken by management where appropriate. Soft Facilities Management is forecasting an overspend of £0.041m. This is mainly due to the cost of provisions which is continually increasing due to inflationary pressures and as a result, an overspend is expected. However, this overspend is being offset by a projected underspend in employee costs due to the level of vacancies within the service. 4.3 Chief Executive’s Service (Estates) - £0.163m 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.
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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 forecast to bring an additional £3.000m of investment income to General Services. 5. Subjective Analysis – Significant Variances 5.1 Employee Costs - £1.339m underspend Environment, Housing and Infrastructure is projecting an underspend of £1.523m, which reflects current high staff turnover and recruitment challenges. This is partly offset by projected overspend in Finance and Resources (£0.184m) mainly due to lower than expected levels of staff turnover. This position is being managed and will continue to be monitored for the remainder of the year. 5.2 Premises Related - £1.990m 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 present. The position continues to be closely monitored. 5.3 Supplies and Services - £0.786m overspend This projected overspend predominantly sits within Environment, Housing & Infrastructure on work by contractors within Property Services, and provisions within Soft FM. Within Building Services, the costs of work by contractors are recovered through recharge income. Included here is the £0.347m recharge of Building Services’ materials noted in the previous reported position. 5.4 Income - £3.119m 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.
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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 key 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 (5.342) Pay award funding for 24/25 Miscellaneous Premises (0.743) Realignment of non-domestic rates budgets Finance & Resources Employees 1.339 Pay award funding for 24/25 Finance & Resources Support Services 0.088 Additional funding for Scottish Welfare Fund administration costs Environment, Housing & Infrastructure Employees 1.041 Pay award funding for 24/25 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. The Finance, Resources and Customer Services approved capital spend for 2024/25 was £9.269m. 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 £2.094m have taken place to reflect re-profiling of budget from 2024/25 to 2025/26 due to expected cash flow timings. The revised capital spend for 2024/25 is £7.175m, and details of the adjustments are as follows: Capital Budget Adjustments Project Amount (£m) Reason ICT Infrastructure Maintenance & Renewal Programme (0.051) Reflecting expected timing of HQ audio video equipment refresh in 2025/26. Lifecycle Capital Maintenance Fund (2.043) Largely as a result of timing of deliveries for Kitchen Refurbishments for expansion of free school meals,
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Capital Budget Adjustments Project Amount (£m) Reason and upgrades of various school properties, into summer 2025. Total (2.094) Implications of the Report 1. Financial The projected budget outturn position for Finance, Resources and Customer Services’ Revenue budget is an underspend of £1.610m (1.7%) 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 are being 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. 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
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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. 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
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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
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER 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 Finance and Resources 44,195 1,452 45,647 45,533 114 0.2% 72 42 Environment, Housing and Infrastructure 23,210 1,041 24,251 25,592 (1,341) (5.5%) (867) (474) Chief Executive's Service (Estates) 273 114 387 550 (163) (42.1%) (152) (11) Miscellaneous 28,197 (6,185) 22,012 19,012 3,000 13.6% 3,000 0 NET EXPENDITURE 95,875 (3,578) 92,297 90,687 1,610 1.7% 2,053 (443) 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 88,435 (3,024) 85,411 84,072 1,339 1.6% 1,074 265 Premises Related 14,083 (573) 13,510 15,500 (1,990) (14.7%) (1,136) (854) Transport Related 2,238 (150) 2,088 2,229 (141) (6.8%) (101) (40) Supplies and Services 26,641 8 26,649 27,435 (786) (2.9%) (612) (174) Third Party Payments 2,590 0 2,590 2,567 24 0.9% 23 1 Transfer Payments 46,841 71 46,911 46,854 58 0.1% 6 52 Support Services 749 90 839 851 (12) (1.4%) (34) 22 Depreciation and Impairment Losses 9,182 0 9,182 9,182 0 0.0% 0 0 GROSS EXPENDITURE 190,759 (3,579) 187,180 188,689 (1,509) (0.8%) (781) (729) Income (94,884) 1 (94,883) (98,002) 3,119 3.3% 2,834 286 NET EXPENDITURE 95,875 (3,578) 92,297 90,687 1,610 1.7% 2,053 (443)
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER 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 Finance and Resources Directorate (864) 18 (846) (908) 62 7.3% 68 (6) Audit Services 610 21 631 548 83 13.2% 70 13 Corporate Governance 3,027 98 3,125 3,033 92 2.9% 48 44 Digital, Transformation & Customer Services 23,352 688 24,040 24,100 (60) (0.2%) (41) (19) Finance and Procurement 4,746 122 4,868 4,838 30 0.6% 8 22 Business Services 8,475 430 8,905 8,905 0 0.0% 0 0 Housing Benefits 1,895 1 1,896 1,895 1 0.1% 2 (1) People & Organisational Development 2,136 72 2,208 2,284 (76) (3.4%) (68) (8) Social care (non-delegated) 818 2 820 838 (18) (2.2%) (15) (3) NET EXPENDITURE 44,195 1,452 45,647 45,533 114 0.2% 72 42
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES - FINANCE & RESOURCES 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 33,858 1,342 35,200 35,384 (184) (0.5%) (185) 1 Premises Related 2,590 2 2,592 2,562 30 1.2% 63 (33) Transport Related 259 0 259 239 20 7.7% 20 0 Supplies and Services 11,750 0 11,750 11,733 17 0.1% 18 (1) Third Party Payments 1,883 0 1,883 1,860 24 1.2% 23 1 Transfer Payments 46,441 18 46,458 46,398 61 0.1% (7) 67 Support Services 486 90 576 561 15 2.6% 6 9 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 97,267 1,452 98,718 98,736 (18) 0.0% (62) 44 Income (53,072) 1 (53,071) (53,203) 132 0.2% 134 (2) NET EXPENDITURE 44,195 1,452 45,647 45,533 114 0.2% 72 42
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES - ENVIRONMENT, HOUSING AND INFRASTRUCTURE 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 Building Services 109 0 109 109 0 0.0% 0 0 Public Building Repairs 4,066 74 4,140 5,440 (1,300) (31.4%) (739) (561) Soft Facilities Management Services 18,972 899 19,871 19,912 (41) (0.2%) (128) 87 Property Services 63 68 131 131 0 0.0% 0 0 NET EXPENDITURE 23,210 1,041 24,251 25,592 (1,341) (5.5%) (867) (474) 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 31,392 976 32,368 30,845 1,523 4.7% 1,259 264 Premises Related 3,765 54 3,819 5,756 (1,937) (50.7%) (1,112) (825) Transport Related 1,579 0 1,579 1,740 (161) (10.2%) (121) (40) Supplies and Services 12,638 8 12,646 13,449 (803) (6.3%) (630) (173) Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 155 3 158 130 28 17.7% 28 0 Support Services 1,222 0 1,222 1,249 (27) (2.2%) (40) 13 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 50,751 1,041 51,792 53,169 (1,377) (2.7%) (616) (761) Income (27,541) 0 (27,541) (27,577) 36 0.1% (251) 287 NET EXPENDITURE 23,210 1,041 24,251 25,592 (1,341) (5.5%) (867) (474)
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES - CHIEF EXECUTIVE'S SERVICE (ESTATES) 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 0 0 0 0 0 0.0% 0 0 Premises Related 1,128 114 1,242 1,325 (83) (6.7%) (87) 4 Supplies and Services 4 0 4 4 0 0.0% 0 0 Transfer Payments 66 0 66 97 (31) (47.0%) (16) (15) Support Services 441 0 441 441 0 0.0% 0 0 GROSS EXPENDITURE 1,639 114 1,753 1,867 (114) (6.5%) (103) (11) Income (1,366) 0 (1,366) (1,317) (49) (3.6%) (49) 0 NET EXPENDITURE 273 114 387 550 (163) (42.1%) (152) (11)
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES - MISCELLANEOUS 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 23,185 (5,342) 17,843 17,843 0 0.0% 0 0 Premises Related 6,600 (743) 5,857 5,857 0 0.0% 0 0 Transport Related 400 (150) 250 250 0 0.0% 0 0 Supplies and Services 2,249 0 2,249 2,249 0 0.0% 0 0 Third Party Payments 707 0 707 707 0 0.0% 0 0 Transfer Payments 179 50 229 229 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 41,102 (6,185) 34,917 34,917 0 0.0% 0 0 Income (12,905) 0 (12,905) (15,905) 3,000 23.2% 3,000 0 NET EXPENDITURE 28,197 (6,185) 22,012 19,012 3,000 13.6% 3,000 0
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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 (51) 1,196 1,196 0 0% 3,369 3,369 0 0% Lifecycle Capital Maintenance (LCM) Fund 0 6,438 (2,043) 4,395 4,395 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 0 126 0 126 126 0 0% 126 126 0 0% Retail Improvement Fund 76 74 0 74 74 0 0% 150 150 0 0% TOTAL FINANCE, RESOURCES & CUSTOMER SERVICES BOARD 3,993 9,269 (2,094) 7,175 7,175 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. RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 7th January 2025 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES Current Year 2024-25 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable