1 - Revenue and Capital Budget Monitoring Report as at 11 November 2022
Renfrewshire Council · 9 February 2023
Back to Finance, Resources and Customer Services Policy Board — 9 February 2023 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: 9 February 2023 Report by: Director of Finance and Resources Heading: Revenue and Capital Budget Monitoring as at 11 November 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 £1.103m (1.0%) 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. Table 1: Revenue Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Finance and Resources 42,165 42,518 (353) (0.8%) Environment and Infrastructure 20,154 20,904 (750) (3.7%) Miscellaneous 45,871 45,871 0 0% Total 108,190 109,293 (1,103) (1.0%)
Page 2
Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Finance, Resources and Customer Services 9,595 9,595 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 £1.103m (1.0% 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 £4.738m have been processed since the last report at Period 3, with the main reasons as follows: + £4.646m drawdown of funding into Miscellaneous Services to fund the 2022/23 Local Government pay award; and + £0.177m transfer of Non-Domestic Rates budgets from Children’s Services into Miscellaneous Services.
Page 3
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 £9.595m (£9.107m approved Capital Plan). 5.2. The budget movement primarily results from reprofiling in the approved capital programme for the year, and grant awarded for kitchen refurbishment for the expansion of school meals. Further detail can be found at Appendix 2. 6. Capital Budget Adjustments 6.1. Since the last report, budget changes totalling £0.437m have arisen, which reflect the following: Budget carried forward into 2023/24 from 2022/23 (£0.592m): o ICT Infrastructure and Renewal Programme (£0.592m) to reflect expected delivery dates in early 2023/24; Budget increases in 2022/23 +£0.876m: o Lifecycle Capital Maintenance Fund (£0.876m) for grant awarded by Scottish Government to refurbish kitchen equipment for the provision of school meals. Budget transfers in 2022/23 +£0.153m: o Village Improvement Fund (£0.200m) transfer in from Town Centre Capital Fund as approved by Council in March 2022. o Lifecycle Capital Maintenance Fund (£0.047m) transfer out to the Community Halls Projects as per the Leadership Board, to provide funding to increase scope of external work at Bargarran Community Nursery.
Page 4
_______________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for Finance, Resources and Customer Services’ Revenue budget is an overspend of £1.103m. 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. 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.
Page 5
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 2022/23, Council 3 March 2022. The Capital Investment Programme 2022/23 to 2026/27, Council 3 March 2022 __________________________________________________________________ Authors: Valerie Howie / Lisa Dickie / Kevin Festorazzi / Geoff Borland
Page 6
APPENDIX 2 Objective Summary Approved Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Finance and Resources 42,861 (696) 42,165 42,518 (353) (0.8%) (353) 0 Environment and Infrastructure 20,112 42 20,154 20,904 (750) (3.7%) (541) (209) Miscellaneous 40,479 5,392 45,871 45,871 0 0.0% 0 0 NET EXPENDITURE 103,452 4,738 108,190 109,293 (1,103) (1.0%) (894) (209) Subjective Summary Approved Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 97,905 4,060 101,965 101,826 139 0.1% 27 112 Premises Related 8,764 1 8,765 9,542 (777) (8.9%) (420) (357) Transport Related 1,682 0 1,682 1,722 (40) (2.4%) 23 (63) Supplies and Services 22,053 (140) 21,913 22,193 (280) (1.3%) (337) 57 Third Party Payments 2,078 0 2,078 2,054 24 1.2% 24 0 Transfer Payments 57,954 913 58,867 58,647 220 0.4% 0 220 Support Services 2,740 0 2,740 2,691 49 1.8% 52 (3) Depreciation and Impairment Losses 7,177 0 7,177 7,177 0 0.0% 0 0 GROSS EXPENDITURE 200,353 4,834 205,187 205,852 (665) (0.3%) (631) (34) Income (96,901) (96) (96,997) (96,559) (438) (0.5%) (263) (175) NET EXPENDITURE 103,452 4,738 108,190 109,293 (1,103) (1.0%) (894) (209) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 11 November 2022 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable
Page 7
APPENDIX 2 Objective Summary Approved Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Finance and Resources Directorate (353) 0 (353) (352) (1) (0.3%) 13 (14) Audit Services 601 0 601 604 (3) (0.5%) 1 (4) Corporate Governance 3,207 0 3,207 3,129 78 2.4% 69 9 Digital, Transformation & Customer Services 21,218 (339) 20,879 20,981 (102) (0.5%) (119) 17 Finance and Business Services 11,301 (267) 11,034 10,966 68 0.6% 68 0 Housing Benefits 4,043 0 4,043 4,046 (3) (0.1%) 0 (3) People & Organisational Development 2,463 0 2,463 2,495 (32) (1.3%) (32) 0 Property Services (437) (90) (527) (436) (91) (17.3%) (93) 2 Social care (non‐delegated) 818 0 818 1,085 (267) (32.6%) (260) (7) NET EXPENDITURE 42,861 (696) 42,165 42,518 (353) (0.8%) (353) 0 Objective Heading Digital, Transformation & Customer Services Property Services Social care (non‐delegated) The projected overspend reflects the one off costs of migration for the Council's telephony system over the course of the current financial year. POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES Key Reasons for Significant Projected Variances An overspend in Premises Costs is projected. This is due to an expected increase in energy costs across operational Council properties. An overspend in Premises Costs is projected. This is due to an expected increase in energy costs across Health and Social Care properties Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 11 November 2022
Page 8
APPENDIX 2 Subjective Summary Approved Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 34,474 (577) 33,897 33,839 58 0.2% 63 (5) Premises Related 2,728 0 2,728 3,071 (343) (12.6%) (353) 10 Transport Related 76 0 76 54 22 28.9% 23 (1) Supplies and Services 9,525 (200) 9,325 9,498 (173) (1.9%) (194) 21 Third Party Payments 1,745 0 1,745 1,721 24 1.4% 24 0 Transfer Payments 55,157 (1) 55,156 55,155 1 0.0% 0 1 Support Services 694 0 694 644 50 7.2% 52 (2) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 104,399 (778) 103,621 103,982 (361) 23.2% (385) 24 Income (61,538) 82 (61,456) (61,464) 8 0.0% 32 (24) NET EXPENDITURE 42,861 (696) 42,165 42,518 (353) (0.8%) (353) 0 Budget Variance (Adverse) or Favourable POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ FINANCE & RESOURCES RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 11 November 2022
Page 9
APPENDIX 2 Objective Summary Approved Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Building Services (241) 1 (240) (240) 0 0.0% (1) 1 Street Lighting Maintenance Work 376 0 376 528 (152) (40.4%) (178) 26 Public Building Repairs 3,822 44 3,866 3,866 0 0.0% (1) 1 Soft Facilities Management Services 16,155 (3) 16,152 16,750 (598) (3.7%) (361) (237) NET EXPENDITURE 20,112 42 20,154 20,904 (750) (3.7%) (541) (209) Objective Heading Building Services Soft Facilities Management Services Street Lighting Maintenance Work RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 Budget Variance (Adverse) or Favourable 1 April 2022 to 11 November 2022 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ ENVIRONMENT AND INFRASTRUCTURE Key Reasons for Significant Projected Variances 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 There is an anticipated under‐recovery of income, which is offset by some vacancies and an underspend in supplies and services across the service, and this will continue to be closely monitored throughout the financial year. Further detailed analysis has been completed on the outturn for the service and as a result an increase in the projected overspend is being reported as at period 8. There is a projected overspend on repairs and maintenance of street lighting columns due to increased costs of materials, which will be closely monitored during the financial year
Page 10
APPENDIX 2 Subjective Summary Approved Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 26,552 178 26,730 26,650 80 0.3% (36) 116 Premises Related 3,196 43 3,239 3,453 (214) (6.6%) (67) (147) Transport Related 1,594 0 1,594 1,656 (62) (3.9%) 0 (62) Supplies and Services 10,120 (1) 10,119 10,226 (107) (1.1%) (143) 36 Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 43 0 43 43 0 0.0% 0 0 Support Services 1,082 0 1,082 1,082 0 0.0% 0 0 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 42,587 220 42,807 43,110 (303) (0.7%) (246) (57) Income (22,475) (178) (22,653) (22,205) (448) (2.0%) (295) (153) NET EXPENDITURE 20,112 42 20,154 20,904 (750) (3.7%) (541) (210) Budget Variance (Adverse) or Favourable POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ ENVIRONMENT AND INFRASTRUCTURE RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 11 November 2022
Page 11
APPENDIX 2 Subjective Summary Approved Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 36,878 4,460 41,338 41,338 0 0.0% 0 0 Premises Related 2,841 177 3,018 3,018 0 0.0% 0 0 Transport Related 12 0 12 12 0 0.0% 0 0 Supplies and Services 2,409 60 2,469 2,469 0 0.0% 0 0 Third Party Payments 333 0 333 333 0 0.0% 0 0 Transfer Payments 2,754 695 3,449 3,449 0 0.0% 0 0 Support Services 965 0 965 965 0 0.0% 0 0 Depreciation and Impairment Losses 7,177 0 7,177 7,177 0 0.0% 0 0 GROSS EXPENDITURE 53,369 5,392 58,761 58,761 0 0.0% 0 0 Income (12,890) 0 (12,890) (12,890) 0 0.0% 0 0 NET EXPENDITURE 40,479 5,392 45,871 45,871 0 0.0% 0 0 Subjective Heading Budget Adjustments Key Reasons for Significant Projected Variances The budget transfer relates principally to the receipt of funding for the 2022/23 local government pay award, as well as the transfer Non‐Domestic Rates budgets from Children's Services. Budget Variance (Adverse) or Favourable POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ MISCELLANEOUS RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 11 November 2022
Page 12
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 1,585 150 1,735 1,735 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 (257) 4,833 4,833 0 0% 12,456 12,456 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 349 293 309 602 602 0 0% 951 951 0 0% Greenspaces and Parks 946 237 (237) 0 0 0 0% 936 936 0 0% Villages Improvement Fund 0 0 350 350 350 0 0% 350 350 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 2,841 9,107 488 9,595 9,595 0 0% 22,241 22,241 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 11th November 2022 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES Current Year 2022‐23 Full Programme ‐ All years