1 - Revenue and Capital Budget Monitoring as at 6 January 2023
Renfrewshire Council · 30 March 2023
Back to Finance, Resources and Customer Services Policy Board — 30 March 2023 and its agenda
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To: Finance, Resources and Customer Services Policy Board On: 30 March 2023 Report by: Director of Finance and Resources Heading: Revenue and Capital Budget Monitoring as at 6 January 2023 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 £1.473m (1.5%) 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. Table 1: Revenue Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Finance and Resources 44,091 44,444 (353) (0.8%) Environment and Infrastructure 21,775 22,895 (1,120) (5.1%) Miscellaneous 30,730 30,730 0 0% Total 96,596 98,069 (1,473) (1.5%)
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Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Finance, Resources and Customer Services 6,884 6,884 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 £1.473m (1.5% 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 £11.594m have been processed since the last report, with the main reasons as follows: + £2.0m allocated to Finance and Resources, and £1.6m to Environment and Infrastructure, which mainly relates to non-teacher pay inflation - £5.9m transfer from Miscellaneous to earmarked reserves to support Fairer Renfrewshire and other programmes of work beyond 2023/24; - £9.2m budget realignment from Miscellaneous to other Council Services in respect of the non-teacher pay award.
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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 £6.884m (£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 £2.711m have arisen, which reflect the following: Budget carried forward into 2023/24 from 2022/23 (£2.711m): o ICT Infrastructure and Renewal Programme (£0.238m) to reflect expected delivery dates in early 2023/24; o Lifecycle Capital Maintenance Fund (£2.473m) to reflect timing of expected improvements across a range of properties.
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_______________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for Finance, Resources and Customer Services’ Revenue budget is an overspend of £1.473m. 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.
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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
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APPENDIX 2 Objective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Finance and Resources 42,165 1,926 44,091 44,444 (353) (0.8%) (353) 0 Environment and Infrastructure 20,154 1,621 21,775 22,895 (1,120) (5.1%) (750) (370) Miscellaneous 45,871 (15,141) 30,730 30,730 0 0.0% 0 0 NET EXPENDITURE 108,190 (11,594) 96,596 98,069 (1,473) (1.5%) (1,103) (370) Subjective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 101,966 (7,892) 94,074 93,138 936 1.0% 138 798 Premises Related 8,984 (107) 8,877 9,704 (827) (9.3%) (557) (270) Transport Related 1,682 0 1,682 1,962 (280) (16.6%) (40) (240) Supplies and Services 21,912 1,453 23,365 23,235 130 0.6% (280) 410 Third Party Payments 2,078 0 2,078 2,054 24 1.2% 24 0 Transfer Payments 58,648 (5,047) 53,601 53,600 1 0.0% 1 0 Support Services 2,740 1 2,741 2,724 17 0.6% 50 (33) Depreciation and Impairment Losses 7,177 0 7,177 7,177 0 0.0% 0 0 GROSS EXPENDITURE 205,187 (11,592) 193,595 193,594 1 0.0% (664) 665 Income (96,997) (2) (96,999) (95,525) (1,474) (1.5%) (440) (1,034) NET EXPENDITURE 108,190 (11,594) 96,596 98,069 (1,473) (1.5%) (1,104) (369) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 6 January 2023 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable
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APPENDIX 2 Objective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Finance and Resources Directorate (353) (190) (543) (542) (1) (0.2%) (1) 0 Audit Services 601 31 632 638 (6) (0.9%) (3) (3) Corporate Governance 3,207 137 3,344 3,249 95 2.8% 78 17 Digital, Transformation & Customer Services 20,879 1,113 21,992 22,101 (109) (0.5%) (102) (7) Finance and Business Services 11,034 626 11,660 11,588 72 0.6% 68 4 Housing Benefits 4,043 0 4,043 4,047 (4) (0.1%) (3) (1) People & Organisational Development 2,463 125 2,588 2,627 (39) (1.5%) (32) (7) Property Services (527) 84 (443) (352) (91) (20.5%) (91) 0 Social care (non‐delegated) 818 0 818 1,088 (270) (33.0%) (267) (3) NET EXPENDITURE 42,165 1,926 44,091 44,444 (353) (0.8%) (353) 0 Objective Heading Digital, Transformation & Customer Services Property Services Social care (non‐delegated) 1 April 2022 to 6 January 2023 Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 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 The projected overspend reflects the one off costs of migration for the Council's telephony system over the course of the current financial year.
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APPENDIX 2 Subjective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 33,897 2,142 36,039 35,984 55 0.2% 58 (3) Premises Related 2,728 (190) 2,538 2,881 (343) (13.5%) (343) 0 Transport Related 76 0 76 54 22 28.9% 22 0 Supplies and Services 9,325 (26) 9,299 9,479 (180) (1.9%) (173) (7) Third Party Payments 1,745 0 1,745 1,721 24 1.4% 24 0 Transfer Payments 55,156 0 55,156 55,155 1 0.0% 1 0 Support Services 694 0 694 652 42 6.1% 50 (8) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 103,621 1,926 105,547 105,926 (379) 21.2% (361) (18) Income (61,456) 0 (61,456) (61,482) 26 0.0% 8 18 NET EXPENDITURE 42,165 1,926 44,091 44,444 (353) (0.8%) (353) 0 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ FINANCE & RESOURCES RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 6 January 2023 Budget Variance (Adverse) or Favourable
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APPENDIX 2 Objective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Building Services (240) 0 (240) (240) 0 0.0% 0 0 Street Lighting Maintenance Work 376 6 382 554 (172) (45.0%) (152) (20) Public Building Repairs 3,866 77 3,943 4,281 (338) (8.6%) 0 (338) Soft Facilities Management Services 16,152 1,538 17,690 18,300 (610) (3.4%) (598) (12) NET EXPENDITURE 20,154 1,621 21,775 22,895 (1,120) (5.1%) (750) (370) Objective Heading Building Services Street Lighting Maintenance Work Public Building Repairs Soft Facilities Management Services The forecast projection arises from anticipated cost increases within Building Services being passed on to Public Building Repairs, owing to pay and materials inflationary pressures. There is a projected overspend on repairs and maintenance of street lighting columns due to increased costs of materials, which will be closely monitored for the rest of the financial year. RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 Budget Variance (Adverse) or Favourable 1 April 2022 to 6 January 2023 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. This will affect the Housing Revenue Account as Public Building Repairs as the two main recharges of Building Services costs. There is an anticipated under‐recovery of income, which is offset by some vacancies and an underspend in supplies and services across the service; this will continue to be closely monitored for the rest of the financial year.
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APPENDIX 2 Subjective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 26,730 1,581 28,311 27,430 881 3.1% 80 801 Premises Related 3,239 16 3,255 3,739 (484) (14.9%) (214) (270) Transport Related 1,594 0 1,594 1,896 (302) (18.9%) (62) (241) Supplies and Services 10,119 24 10,143 9,833 310 3.1% (107) 417 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 1,107 (25) (2.3%) 0 (25) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 42,807 1,621 44,428 44,048 380 0.9% (302) 682 Income (22,653) 0 (22,653) (21,153) (1,500) (6.6%) (448) (1,052) NET EXPENDITURE 20,154 1,621 21,775 22,895 (1,120) (5.1%) (750) (370) REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 6 January 2023 Budget Variance (Adverse) or Favourable POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ ENVIRONMENT AND INFRASTRUCTURE
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APPENDIX 2 Subjective Summary Approved Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 41,338 (11,614) 29,724 29,724 0 0.0% 0 0 Premises Related 3,018 66 3,084 3,084 0 0.0% 0 0 Transport Related 12 0 12 12 0 0.0% 0 0 Supplies and Services 2,469 1,454 3,923 3,923 0 0.0% 0 0 Third Party Payments 333 0 333 333 0 0.0% 0 0 Transfer Payments 3,449 (5,047) (1,598) (1,598) 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 58,761 (15,141) 43,620 43,620 0 0.0% 0 0 Income (12,890) 0 (12,890) (12,890) 0 0.0% 0 0 NET EXPENDITURE 45,871 (15,141) 30,730 30,730 0 0.0% 0 0 Subjective Heading Budget Adjustments Key Reasons for Significant Projected Variances The budget transfer relates to the allocation of budgets to other Council services for the 2022/23 local government pay award, as well as transfers to earmarked reserves. Budget Variance (Adverse) or Favourable POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ MISCELLANEOUS REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 6 January 2023
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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 Programm 0 1,585 (88) 1,497 1,497 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 (2,730) 2,360 2,360 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 (2,223) 6,884 6,884 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 6th January 2023 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES Current Year 2022‐23 Full Programme ‐ All years