1 - Revenue and Capital Budget Monitoring Report
Renfrewshire Council · 14 September 2023
Back to Finance, Resources and Customer Services Policy Board — 14 September 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: 14 September 2023 Report by: Director of Finance and Resources Heading: Revenue and Capital Budget Monitoring as at 23 June 2023 1. Summary of Financial Position 1.1. The projected revenue outturn at 31 March 2024 for those services reporting to the Finance, Resources and Customer Services Policy Board is an overspend position of £1.055m (1.1%) against the revised budget for the year. 1.2. The projected capital outturn at 31 March 2024 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 44,031 44,031 0 0.0% Environment, Housing and Infrastructure 21,260 22,315 (1,055) 5.0% Miscellaneous Services 33,208 33,208 0 0.0% Total 98,499 99,554 (1,055) 1.1%
Page 2
Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Finance, Resources and Customer Services 10,339 10,339 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 £1.055m (1.1% 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 £0.833m have been processed since the budget was approved in March 2023, with the main reasons as follows: + £0.120m added to Finance and Resources from Fairer Renfrewshire balances to fund new Customer Services Advice Works income advisers; +£0.112m transferred into Finance and Resources from other services to Digital, Transformation and Customer Services, for various ICT support services; and +£142k transferred into Public Building Repairs (Environment, Housing and Infrastructure) from other services for work on various properties.
Page 3
+£0.460m transferred into Miscellaneous Services relating to Marketing and Communications Right for Renfrewshire savings; and +£0.634m transferred into Miscellaneous Services from Finance and Resources relating to Right for Renfrewshire savings. 5. Capital 5.1. The Capital Investment Programme 2023/24 to 2027/28 was approved by the Council on 2 March 2023. For Finance, Resources and Customer Services the revised capital spend for 2023/24 is £10.339m (£9.982m approved). 5.2. The budget movement primarily results from reprofiling in the approved capital programme for the year, and grant awarded 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 £0.357m have arisen, which reflect the following: Budget carried forward from 2022/23 to 2023/24 (£3.007m): o ICT Infrastructure and Renewal (£0.186m); o Energy Efficiency Programme (£0.066m) o Lifecycle Capital Maintenance Fund (£1.290m); o Artificial Pitch Upgrades (£0.459m) o Digital Infrastructure Provision (£0.032m) o Community Empowerment Fund (£0.552m); o Villages Improvement Fund (£0.297m) o Retail Improvement Fund (£0.127m). Budget Reallocation 2023/24 (-£0.300m): o Strategic Asset Management Fund (-£0.300m); Budget decreases in 2023/24 (-£2.352m): o Reduction in capital grant in relation to free school meals expansion. This was included in the capital grant awarded in the original Finance Circular on which the 2023/24 budget was based; however, in the revised circular (3/2023) it was moved into funds still to be distributed, with confirmation awaited on the timing and value of the Council’s allocation.
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 £1.055m (1.1%). 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. 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 noted in this report 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 - None directly arising from this report. 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. __________________________________________________________________
Page 5
List of Background Papers Revenue Budget and Council Tax 2023/24, Council 2 March 2023 The Capital Investment Programme 2023/24 to 2027/28, Council 2 March 2023 __________________________________________________________________ Authors: Valerie Howie / Lisa Dickie / Alison Burns / Linsey McGregor
Page 6
APPENDIX 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Finance and Resources 44,425 (394) 44,031 44,031 0 0.0% Environment, Housing and Infrastructure 21,121 139 21,260 22,315 (1,055) (5.0%) Miscellaneous 32,120 1,088 33,208 33,208 0 0.0% NET EXPENDITURE 97,666 833 98,499 99,554 (1,055) (1.1%) Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 101,328 (18,214) 83,114 83,876 (762) (0.9%) Premises Related 11,660 252 11,912 12,234 (322) (2.7%) Transport Related 2,127 0 2,127 2,410 (283) (13.3%) Supplies and Services 23,811 5,311 29,122 30,842 (1,720) (5.9%) Third Party Payments 1,970 0 1,970 1,948 22 1.1% Transfer Payments 41,569 16,444 58,013 58,029 (16) 0.0% Support Services 2,829 (2,762) 67 19 48 71.6% Depreciation and Impairment Losses 7,957 0 7,957 7,957 0 0.0% GROSS EXPENDITURE 193,251 1,031 194,282 197,315 (3,033) (1.6%) Income (95,585) (198) (95,783) (97,761) 1,978 2.1% NET EXPENDITURE 97,666 833 98,499 99,554 (1,055) (1.1%) POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 23 June 2023
Page 7
APPENDIX 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Finance and Resources Directorate (924) 0 (924) (966) 42 4.5% Audit Services 630 0 630 626 4 0.6% Corporate Governance 3,421 (210) 3,211 3,166 45 1.4% Digital, Transformation & Customer Services 22,233 (119) 22,114 22,150 (36) (0.2%) Finance and Procurement 5,715 (1) 5,714 5,776 (62) (1.1%) Business Services 8,692 (66) 8,626 8,604 22 0.3% Housing Benefits 1,226 0 1,226 1,223 3 0.2% People & Organisational Development 2,580 0 2,580 2,600 (20) (0.8%) Property Services 34 2 36 36 0 0.0% Social care (non‐delegated) 818 0 818 816 2 0.2% NET EXPENDITURE 44,425 (394) 44,031 44,031 0 0.0% Objective Heading Finance and Resources Budget Variance (Adverse) or Favourable Key Reasons for Significant Projected Variances While there are some variances projected within the service, Finance and Resources overall is forecast to break‐even by the end of the financial year. Any changes to this position will be updated in future board reports. 1 April 2023 to 23 June 2023 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES
Page 8
APPENDIX 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 37,411 (72) 37,339 37,651 (312) (0.8%) Premises Related 2,177 358 2,535 2,575 (40) (1.6%) Transport Related 137 0 137 113 24 17.5% Supplies and Services 10,440 (85) 10,355 10,414 (59) (0.6%) Third Party Payments 1,875 0 1,875 1,853 22 1.2% Transfer Payments 52,200 0 52,200 52,218 (18) 0.0% Support Services 894 (397) 497 447 50 10.1% Depreciation and Impairment Losses 0 0 0 0 0 0.0% GROSS EXPENDITURE 105,134 (196) 104,938 105,271 (333) 25.8% Income (60,709) (198) (60,907) (61,240) 333 0.5% NET EXPENDITURE 44,425 (394) 44,031 44,031 0 0.0% RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 23 June 2023 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ FINANCE & RESOURCES Budget Variance (Adverse) or Favourable
Page 9
APPENDIX 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Building Services (472) 0 (472) (472) 0 0.0% Street Lighting Maintenance Work 382 0 382 522 (140) (36.6%) Public Building Repairs 3,851 142 3,993 3,993 0 0.0% Soft Facilities Management Services 17,360 (3) 17,357 18,272 (915) (5.3%) NET EXPENDITURE 21,121 139 21,260 22,315 (1,055) (5.0%) Objective Heading Building Services Street Lighting Maintenance Work Public Building Repairs Soft Facilities Management Services There is an anticipated overspend forecast for the service. This is largely due to an under‐ recovery of income, inflationary pressure on the cost of provisions and cleaning materials, which is all partially offset by vacancies across the service. A review of income is underway to ascertain the impact that service changes has had on the income budget and associated income recovery. An overspend is projected for this service, which is predominantly on the repairs and maintenance of lighting columns, due to the increased cost of materials. This will be closely monitored throughout the remainder of the financial year with mitigating actions by management where required. POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ ENVIRONMENT, HOUSING AND INFRASTRUCTURE REVENUE BUDGET MONITORING STATEMENT 2023/24 The service is currently forecast to breakeven this year however it is recognised that costs are under considerable pressure from supply price increases and contractor inflation. This position will be closely monitored through the year with mitigating actions by management where required. Any updates will be provided at future boards. 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 and Public Building Repairs as the two main recharges of Building Services costs. 1 April 2023 to 23 June 2023 RENFREWSHIRE COUNCIL Budget Variance (Adverse) or Favourable
Page 10
APPENDIX 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 27,943 0 27,943 28,393 (450) (1.6%) Premises Related 3,101 139 3,240 3,522 (282) (8.7%) Transport Related 1,590 0 1,590 1,897 (307) (19.3%) Supplies and Services 9,448 0 9,448 11,109 (1,661) (17.6%) Third Party Payments 0 0 0 0 0 0.0% Transfer Payments 110 0 110 108 2 1.8% Support Services 970 0 970 972 (2) (0.2%) Depreciation and Impairment Losses 0 0 0 0 0 0.0% GROSS EXPENDITURE 43,162 139 43,301 46,001 (2,700) (6.2%) Income (22,041) 0 (22,041) (23,686) 1,645 7.5% NET EXPENDITURE 21,121 139 21,260 22,315 (1,055) (5.0%) POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ ENVIRONMENT, HOUSING AND INFRASTRUCTURE RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 23 June 2023 Budget Variance (Adverse) or Favourable
Page 11
APPENDIX 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 35,974 (18,142) 17,832 17,832 0 0.0% Premises Related 6,382 (245) 6,137 6,137 0 0.0% Transport Related 400 0 400 400 0 0.0% Supplies and Services 3,923 5,396 9,319 9,319 0 0.0% Third Party Payments 95 0 95 95 0 0.0% Transfer Payments (10,741) 16,444 5,703 5,703 0 0.0% Support Services 965 (2,365) (1,400) (1,400) 0 0.0% Depreciation and Impairment Losses 7,957 0 7,957 7,957 0 0.0% GROSS EXPENDITURE 44,955 1,088 46,043 46,043 0 0.0% Income (12,835) 0 (12,835) (12,835) 0 0.0% NET EXPENDITURE 32,120 1,088 33,208 33,208 0 0.0% Subjective Heading Miscellaneous Services 1 April 2023 to 23 June 2023 RENFREWSHIRE COUNCIL Budget Variance (Adverse) or Favourable REVENUE BUDGET MONITORING STATEMENT 2023/24 The service is currently forecast to breakeven this year, this position will be closely monitored throughout the year with any updates provided at future boards. Budget adjustments between Employee Costs, Supplies and Services and Transfer Payments arose from a review of appropriate coding within the ledger. POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES ‐ MISCELLANEOUS Key Reasons for Significant Projected Variances
Page 12
APPENDIX 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023‐24 in 2023‐24 2023‐24 2023‐24 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 1,730 186 1,916 1,916 0 0% 3,516 3,516 0 0% Strategic Asset Management Fund 0 300 (300) 0 0 0 0% 0 0 0 0% Energy Efficiency Programme 0 0 66 66 66 0 0% 66 66 0 0% Lifecycle Capital Maintenance (LCM) Fund 0 7,352 (1,062) 6,290 6,290 0 0% 14,179 14,179 0 0% Artificial Pitch Upgrades 741 600 459 1,059 1,059 0 0% 1,800 1,800 0 0% Digital Infrastructure Provision 1,904 0 32 32 32 0 0% 1,936 1,936 0 0% Commnunity Empowerment Fund 399 0 552 552 552 0 0% 951 951 0 0% Greenspaces and Parks 1,223 0 0 0 0 0 0% 1,223 1,223 0 0% Villages Improvement Fund 53 0 297 297 297 0 0% 550 550 0 0% Retail Improvement Fund 23 0 127 127 127 0 0% 150 150 0 0% CO2 Monitors 233 0 0 0 0 0 0% 233 233 0 0% TOTAL FINANCE, RESOURCES & CUSTOMER SERVICES BOARD 4,576 9,982 357 10,339 10,339 0 0% 24,604 24,604 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 23rd June 2023 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES Current Year 2023‐24 Full Programme ‐ All years