1 - Revenue and Capital Budget Monitoring as at 24 June 2022
Renfrewshire Council · 8 September 2022
Back to Finance, Resources and Customer Services Policy Board — 8 September 2022 and its agenda
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To: Finance, Resources and Customer Services Policy Board On: 8 September 2022 Report by: Director of Finance and Resources 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 those services reporting to the Finance, Resources and Customer Services Policy Board is an overspend position of £0.523m (0.5%) against the revised budget for the year. 1.2. The projected capital outturn at 31 March 2023 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 Appendices. Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Finance and Resources 42,694 42,694 0 0% Environment and Infrastructure 19,982 20,505 (523) 2.6% Miscellaneous 40,414 40.414 0 0% Total 103,090 103,613 (523) 0.5%
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Table 2: Capital Division Revised Annual Budget £000 Projected Outturn Core £000 Total Projected Outturn £000 Budget Variance £000 Budget Variance % Finance, Resources and Customer Services 9,425 9,425 9,425 0 0% 2. Recommendations Members are requested to: 2.1. Note the projected Revenue outturn position detailed in Table 1 above; 2.2. Note the projected Capital outturn position detailed in Table 2 above; and 2.3. Note the budget adjustments detailed at sections 4 and 6. 3. Revenue 3.1. The Revenue Budget Monitoring report at Appendix 1 identifies a projected annual overspend of £0.523m (0.5% of total budget) for all services reporting to this Policy Board. Detailed division service reports can be found at the end of this report, along with an explanation of any significant projected variances. 3.2. The projected outturn is based on information currently available, and assumptions made by service budget holders. Any changes to these projections will be detailed in future reports to this Board. 3.3. The main reasons for the projected outturn position are indicated below the tables showing both the subjective analysis (what the budget is spent on) and the objective analysis (which division is spending the budget). 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that budget adjustments totalling £3.450m have been processed since the Budget was approved on 3 March 2022, with significant movements as follows: + £4.882m Fairer Renfrewshire Programme – funded from a one-off use of reserves and one-off settlement funding from the Scottish Government, as reported to this Policy Board on 15 June 2022 o +£0.300m additional top-up funding for Discretionary Housing Payments (DHP) transferred into Finance and Resources; o +£0.500m additional top-up funding for the Scottish Welfare Fund transferred into Finance and Resources;
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o +£0.270m transferred into Miscellaneous Services to tackle financial insecurity and hardship; o +£3.812m transferred into Miscellaneous Services to deliver the Fairer Renfrewshire Programme. -£0.646m transferred from Miscellaneous Services to the Chief Executives Service to support delivery of the Future Paisley programme. -£0.667m transferred from Environment and Infrastructure relating to a reallocation of budget that was allocated to the service in error. A correction virement was action to allocate to the appropriate service. 5. Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3 March 2022. For Finance, Resources and Customer Services the approved capital spend for 2022/23 is £9.425m (9.107m approved Capital Plan). 5.2. The budget movement primarily results from reprofiling in the approved capital programme for Finance, Resources and Customer Services for the year and funding approved by Council for Artificial Pitch Upgrades. Further detail can be found at Appendix 2. 6. Capital Budget Adjustments 6.1. Since the last report, budget changes totalling £0.318m have arisen, which reflect the following: Budget brought forward from 2021/22 to 2022/23 (£1.824m): o ICT Infrastructure and Renewal (£0.744m); o Digital Infrastructure Provision (£0.390m); o Community Empowerment Fund (£0.309m); o Villages Improvement Fund (£0.150m) o Co2 Monitors (£0.233m). Budget carried into 2021/22 from 2022/23 (£0.807m): o Lifecycle Capital Maintenance Fund (£0.569m); o Greenspaces and Parks (£0.237m). Budget increases in 2022/23 (£0.800m): o Artificial Pitch Upgrades (£0.050m) as approved by Council on 3 March 2022.
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Net Budget transfers in 2022/23 (£1.500m): o Transfer Out Strategic Asset Management Fund (£1.800m) as per Council Motion on 3 March 2022; o Transfer Out Lifecycle Capital Maintenance Fund (£0.250m) to contribute to fabric works at Bishopton Primary School Refurbishment; o Transfer In Artificial Pitch Upgrades (£0.400m) as per Council Motion on 3 March 2022; o Transfer In Retail Improvement Fund (£0.150m) as per Council Motion on 3 March 2022. ___________________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for Finance, Resources and Customer Services’ Revenue budget is an overspend of £0.523m. 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 overspend. The projected outturn position for Finance, Resources and Customer Services’ Capital budget is break-even. The Capital programme will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any overspend. 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 - The Capital expenditure in this board will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets and infrastructure. 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.
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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. Cosla Policy Position - N/a. 13. Climate Risk - None directly arising from this report. __________________________________________________________________ List of Background Papers Revenue Budget and Council Tax 2021/22. Council, 3 March 2022. The Capital Investment Programme 2022/23 to 2026/27, Council 3 March 2022 __________________________________________________________________ Authors: Valerie Howie / Kevin Festorazzi / Geoff Borland
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APPENDIX 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Finance and Resources 39,708 2,986 42,694 42,694 42,694 0 0.0% Environment and Infrastructure 20,649 (667) 19,982 20,505 20,505 (523) (2.6%) Miscellaneous 39,283 1,131 40,414 40,414 40,414 0 0.0% NET EXPENDITURE 99,640 3,450 103,090 103,613 103,613 (523) (0.5%) Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 98,125 (512) 97,613 97,646 97,646 (33) 0.0% Premises Related 8,658 51 8,709 8,752 8,752 (43) (0.5%) Transport Related 2,021 (339) 1,682 1,661 1,661 21 1.2% Supplies and Services 20,675 1,378 22,053 22,274 22,274 (221) (1.0%) Third Party Payments 2,078 0 2,078 2,054 2,054 24 1.2% Transfer Payments 53,322 4,632 57,954 57,954 57,954 0 0.0% Support Services 2,722 18 2,740 2,726 2,726 14 0.5% Depreciation and Impairment Losses 7,162 0 7,162 7,162 7,162 0 0.0% GROSS EXPENDITURE 194,763 5,228 199,991 200,229 200,229 (238) (0.1%) Income (95,123) (1,778) (96,901) (96,616) (96,616) (285) (0.3%) NET EXPENDITURE 99,640 3,450 103,090 103,613 103,613 (523) (0.5%) POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES 1 April 2022 to 24 June 2022 REVENUE BUDGET MONITORING STATEMENT 2022/23 RENFREWSHIRE COUNCIL Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable
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APPENDIX 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Finance and Resources Directorate (357) 0 (357) (381) (381) 24 6.7% Audit Services 598 0 598 593 593 5 0.8% Corporate Governance 3,188 0 3,188 3,143 3,143 45 1.4% Digital, Transformation & Customer Services 21,155 2 21,157 21,294 21,294 (137) (0.6%) Finance and Business Services 9,286 1,953 11,239 11,171 11,171 68 0.6% Housing Benefits 3,753 290 4,043 4,043 4,043 0 0.0% People & Organisational Development 1,715 741 2,456 2,516 2,516 (60) (2.4%) Property Services (448) 0 (448) (448) (448) 0 0.0% Social care (non‐delegated) 818 0 818 763 763 55 6.7% NET EXPENDITURE 39,708 2,986 42,694 42,694 42,694 0 0.0% Objective Heading Finance and Resources Directorate Audit Services Corporate Governance Digital, Transformation & Customer Services Finance and Business Services Housing Benefits People & Organisational Development Property Services Social care (non‐delegated) No significant projected year end variances to report. No significant projected year end variances to report. Key Reasons for Significant Projected Variances No significant projected year end variances to report. No significant projected year end variances to report. No significant projected year end variances to report. RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 Budget Variance (Adverse) or Favourable POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES No significant projected year end variances to report. No significant projected year end variances to report. The projected overspend reflects the one‐off costs of migration for the Council's telephony system over the course of the current financial year. No significant projected year end variances to report.
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APPENDIX 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 33,600 707 34,307 34,286 34,286 21 0.1% Premises Related 2,728 0 2,728 2,728 2,728 0 0.0% Transport Related 76 0 76 55 55 21 27.6% Supplies and Services 9,078 447 9,525 9,651 9,651 (126) (1.3%) Third Party Payments 1,745 0 1,745 1,721 1,721 24 1.4% Transfer Payments 53,516 1,641 55,157 55,157 55,157 0 0.0% Support Services 530 164 694 642 642 52 7.5% Depreciation and Impairment Losses 0 0 0 0 0 0 0.0% GROSS EXPENDITURE 101,273 2,959 104,232 104,240 104,240 (8) 35.3% Income (61,565) 27 (61,538) (61,546) (61,546) 8 0.0% NET EXPENDITURE 39,708 2,986 42,694 42,694 42,694 0 0.0% RENFREWSHIRE COUNCIL POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ FINANCE & RESOURCES 1 April 2022 to 24 June 2022 REVENUE BUDGET MONITORING STATEMENT 2022/23 Budget Variance (Adverse) or Favourable
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APPENDIX 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Building Services (272) (16) (288) (288) (288) 0 0.0% Street Lighting Maintenance Work 376 0 376 537 537 (161) (42.8%) Public Building Repairs 3,725 38 3,763 3,763 3,763 0 0.0% Soft Facilities Management Services 16,820 (689) 16,131 16,493 16,493 (362) (2.2%) NET EXPENDITURE 20,649 (667) 19,982 20,505 20,505 (523) (2.6%) Objective Heading Building Services Soft Facilities Management Services Street Lighting Maintenance Work There is an anticipated under‐recovery of catering income, which is offset by significant vacancies across the service, and this will continue to be closely monitored throughout the financial year. An overspend is projected largely on repairs and maintenance of street lighting columns, due to increased costs of materials; this will be closely monitored during the remainder of the financial year. The service is currently forecast to break even this year; however, it is recognised that costs are under considerable pressure from supply price increases. The position will continue to be closely monitored, with updates provided in future reports. Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ ENVIRONMENT AND INFRASTRUCTURE Key Reasons for Significant Projected Variances
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APPENDIX 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 26,066 411 26,477 26,532 26,532 (55) (0.2%) Premises Related 3,089 52 3,141 3,183 3,183 (42) (1.3%) Transport Related 1,933 (339) 1,594 1,594 1,594 0 0.0% Supplies and Services 9,161 959 10,120 10,214 10,214 (94) (0.9%) Third Party Payments 0 0 0 0 0 0 0.0% Transfer Payments 4 39 43 43 43 0 0.0% Support Services 1,064 18 1,082 1,119 1,119 (37) (3.4%) Depreciation and Impairment Losses 0 0 0 0 0 0.0% GROSS EXPENDITURE 41,317 1,140 42,457 42,685 42,685 (228) (0.5%) Income (20,668) (1,807) (22,475) (22,180) (22,180) (295) (1.3%) NET EXPENDITURE 20,649 (667) 19,982 20,505 20,505 (523) (2.6%) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ ENVIRONMENT AND INFRASTRUCTURE
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APPENDIX 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 38,459 (1,631) 36,828 36,828 36,828 0 0.0% Premises Related 2,841 0 2,841 2,841 2,841 0 0.0% Transport Related 12 0 12 12 12 0 0.0% Supplies and Services 2,436 (27) 2,409 2,409 2,409 0 0.0% Third Party Payments 333 0 333 333 333 0 0.0% Transfer Payments (198) 2,952 2,754 2,754 2,754 0 0.0% Support Services 1,128 (163) 965 965 965 0 0.0% Depreciation and Impairment Losses 7,162 0 7,162 7,162 7,162 0 0.0% GROSS EXPENDITURE 52,173 1,131 53,304 53,304 53,304 0 0.0% Income (12,890) 0 (12,890) (12,890) (12,890) 0 0.0% NET EXPENDITURE 39,283 1,131 40,414 40,414 40,414 0 0.0% Subjective Heading Budget Adjustments Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL Key Reasons for Significant Projected Variances Budget transfers include the permanent allocation of the full‐year impact of the 2021/22 pay award for Teachers to Children's Services, as well as establishment of the Council Motion budget for the Fairer Renfrewshire Programme. POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ MISCELLANEOUS 1 April 2022 to 24 June 2022 REVENUE BUDGET MONITORING STATEMENT 2022/23
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APPENDIX 2 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 CORPORATE PROJECTS ICT Infrastructure Maintenance & Renewal Programme 0 1,585 742 2,327 2,327 0 0% 3,927 3,927 0 0% Strategic Asset Management Fund 0 1,800 (1,800) 0 0 0 0% 0 0 0 0% Energy Efficiency Programme 0 102 0 102 102 0 0% 102 102 0 0% Lifecycle Capital Maintenance (LCM) Fund 0 5,090 (819) 4,271 4,271 0 0% 11,577 11,577 0 0% Artificial Pitch Upgrades 0 0 1,200 1,200 1,200 0 0% 1,200 1,200 0 0% Digital Infrastructure Provision 1,546 0 390 390 390 0 0% 1,936 1,936 0 0% Commnunity Empowerment Fund 0 293 309 602 602 0 0% 602 602 0 0% Greenspaces and Parks 946 237 (237) 0 0 0 0% 946 946 0 0% Villages Improvement Fund 0 0 150 150 150 0 0% 150 150 0 0% Retail Improvement Fund 0 0 150 150 150 0 0% 150 150 0 0% CO2 Monitors 0 0 233 233 233 0 0% 233 233 0 0% TOTAL FINANCE, RESOURCES & CUSTOMER SERVICES BOARD 2,492 9,107 318 9,425 9,425 0 0% 20,823 20,823 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 24th June 2022 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES Current Year 2022‐23 Full Programme ‐ All years