Revenue and Capital Budget Monitoring as at 6 January 2023
Renfrewshire Council · 26 April 2023
Back to Leadership Board — 26 April 2023 and its agenda
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To: Leadership Board On: 26 April 2023 Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP 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 Leadership Board is an underspend position of £0.004m. 1.2. The projected capital outturn at 31 March 2023 for projects reporting to the Leadership Board is a breakeven position against the revised budget for the year. 1.3. This is summarised 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 (Adv)/Fav £000 Budget Variance % Adult Services 93,607 92,765 842 0.9% Chief Executives 20,570 21,408 (838) (4.1%) Total 114,177 114,173 4 0.0% Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Chief Executives 38,926 38,926 0 0% Leisure Services 1,688 1,688 0 0% Total 40,614 40,614 0 0%
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2. Recommendations 2.1. Members are requested to: (a) Note the projected Revenue outturn position detailed in Table 1 above; (b) Note the projected Capital outturn position detailed in Table 2 above; and (c) 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 underspend of £0.004m for all services reporting to this Board. Detailed division reports can be found in Appendix 2, along with an explanation of each significant projected variance. 3.2. The projected outturn is based on information currently available, and assumptions made by service budget holders. 3.3. The main reasons for the projected outturn position are indicated in the appendices showing both the subjective analysis (what the budget is spent on) and the objective analysis (which division is spending the budget). 3.4. The most significant areas to bring to member’s attention are outlined below: • OneRen continues to experience increased cost and reduced revenue generation in the short to medium term as a result of both temporary and more permanent behavioural changes in recovery from COVID-19. In addition the level of pay award agreed for 2022/23 is in excess of the level of budgetary provision made, resulting in an increased forecast overspend. OneRen is also facing steeply increasing utilities costs which are currently being managed within existing resources through close financial management. The Board and management team of OneRen continue to put measures in place to mitigate the level of financial support required. • Within Adult Services, managed by Renfrewshire HSCP, the service continues activity in response to the pandemic, which includes providing support to external care providers in order to ensure their ongoing financial sustainability. At Period 10, the service estimates that costs of £2.419m will be incurred specifically in relation to COVID-19 Adult Social Care services by the end of the financial year; this includes costs related to financial sustainability payments to private adult and elderly care providers. The projected costs are however based on the current position and may change depending on any further impact of COVID on internal and externally provided services.
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The Scottish Government provided the HSCP with additional COVID-19 funding in the final quarter of 2021/22, and this was held as an earmarked reserve and utilised to fund COVID-19 costs incurred this financial year. In this context, additional costs specifically relating to the COVID-19 response are not therefore included within this report. The uncommitted proportion of this funding was returned to the Scottish Government in February 2023. 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that budget adjustments totalling £0.207 million have been processed since the previous report to board; this relates to the allocation of budget to fund the 2022/23 pay settlement. 5. Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3 March 2022. 5.2. For the Chief Executive’s Service, the approved capital spend for 2022/23 is £38.926m (£44.981m approved Capital Plan). For Leisure Services, the approved capital spend for 2022/23 is £1.688m (£0.754m approved Capital Plan). 5.3. Further details can be found in Appendix 3. 6. Capital Budget Adjustments 6.1. Since the 2022/23 budget was approved in March, budget adjustments totalling £5.121m have arisen. £6.580m of these adjustments have occurred since the previous board report as a result of: • Leisure Services Budget carried forward into 2023/24 from 2022/23 (£0.698m): o Community Halls Refurbishment: (£0.698m) to reflect expected timing of work at Steeple Hall and Bargarran. • Chief Executives Budget carried forward into 2023/24 from 2022/23 (£5.882m) based on updated cashflows for the following projects: o Glasgow Airport Investment Area: (£2.700m); o Clyde Waterfront and Renfrew Riverside: (£2.646m); o AIMIDS South: (£0.536m).
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___________________________________________________________________ Implications of this report 1. Financial The projected budget outturn position for the revenue budget reported to the Leadership Board is an underspend of £0.004m. Income and expenditure will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any overspend. The projected outturn position for capital budgets reported to the Leadership Board is breakeven. The Capital programme will continue to be monitored closely for the rest of the financial year. 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 Capital projects will result in new assets (City Deal) and refurbishment, and improvement to Cultural Infrastructure and Public Realm assets. 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 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 The Capital Investment Programme 2022/23 to 2026/27, approved by Council on 3 March 2022 __________________________________________________________________ Authors: Revenue - Valerie Howie, Finance Business Partner Capital - Geoff Borland, Finance Manager
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Appendix 1 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 Adult Services 93,607 0 93,607 92,765 842 0.9% 1,021 (179) Chief Executive's Service 20,363 207 20,570 21,408 (838) (4.1%) (835) (3) NET EXPENDITURE 113,970 207 114,177 114,173 4 0.0% 186 (182) 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 44,111 211 44,322 43,833 489 1.1% 682 (193) Premises Related 815 0 815 917 (102) (12.5%) (53) (49) Transport Related 837 0 837 475 362 43.2% 349 13 Supplies and Services 15,522 0 15,522 16,268 (746) (4.8%) (747) 1 Third Party Payments 76,446 487 76,933 77,461 (528) (0.7%) (727) 199 Transfer Payments 6,430 900 7,330 7,167 163 2.2% 332 (169) Support Services 91 0 91 74 17 18.7% 16 1 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 144,252 1,598 145,850 146,195 (345) (0.2%) (148) (197) Income (30,282) (1,391) (31,673) (32,022) 349 1.1% 334 15 NET EXPENDITURE 113,970 207 114,177 114,173 4 0.0% 186 (182) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 6 January 2023 Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable POLICY BOARD : LEADERSHIP BOARD
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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 Older People 60,147 0 60,147 60,920 (773) (1.3%) (846) 73 Physical or Sensory Difficulties 7,536 0 7,536 7,354 182 2.4% 198 (16) Learning Difficulties 21,251 0 21,251 20,200 1,051 4.9% 1,240 (189) Mental Health Needs 3,870 0 3,870 3,497 373 9.6% 437 (64) Addiction Services 803 0 803 794 9 1.1% (8) 17 NET EXPENDITURE 93,607 0 93,607 92,765 842 0.9% 1,021 (179) Objective Heading Older People Physical or Sensory Difficulties Learning Difficulties Mental Health Needs Key Reasons for Projected Variance POLICY BOARD : LEADERSHIP BOARD - ADULT SERVICES Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care. Further underspend within adult care placements reflective of the current client profile but subject to change depending on demand and the implementation of planned adult care placements over the financial year. Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care. Further underspend within adult care placements reflective of the current client profile but subject to change depending on demand and the implementation of planned adult care placements over the financial year. Spend within care at home continues to increase as the service continues to support delayed discharges and demand. Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care. 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 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 38,952 0 38,952 38,483 469 1.2% 661 (192) Premises Related 442 0 442 486 (44) (10.0%) (51) 7 Transport Related 836 0 836 474 362 43.3% 349 13 Supplies and Services 2,220 0 2,220 2,099 121 5.5% 120 1 Third Party Payments 76,320 487 76,807 77,335 (528) (0.7%) (727) 199 Transfer Payments 4,265 904 5,169 5,004 165 3.2% 332 (167) Support Services 87 0 87 70 17 19.5% 16 1 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 123,122 1,391 124,513 123,951 562 0.5% 700 (138) Income (29,515) (1,391) (30,906) (31,186) 280 0.9% 321 (41) NET EXPENDITURE 93,607 0 93,607 92,765 842 0.9% 1,021 (179) 1 April 2022 to 6 January 2023 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 POLICY BOARD : LEADERSHIP BOARD - ADULT SERVICES 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 Chief Executive and Management 299 (31) 268 265 3 1.1% 3 0 Policy and Commissioning 4,627 152 4,779 4,767 12 0.3% 11 1 Marketing and Communications 3,703 86 3,789 3,784 5 0.1% 9 (4) City Deal & Infrastructure 0 0 0 0 0 0.0% 0 0 Leisure Services (incl Renfrewshire Leisure) 11,734 0 11,734 12,592 (858) (7.3%) (858) 0 NET EXPENDITURE 20,363 207 20,570 21,408 (838) (4.1%) (835) (3) Objective Heading Chief Executive and Management Policy and Commissioning Marketing and Communications City Deal & Infrastructure Leisure Services (incl Renfrewshire Leisure) Key Reasons for Projected Variance No significant projected year end variances to report. REVENUE BUDGET MONITORING STATEMENT 2022/23 Budget Variance (Adverse) or Favourable 1 April 2022 to 6 January 2023 RENFREWSHIRE COUNCIL POLICY BOARD : LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE No significant projected year end variances to report. The projected overspend position reflects the significant challenges OneRen continues to face following the pandemic and its impact on commercial income, in addition to the higher level of pay award now agreed for 2022/23. No significant projected year end variances to report. No significant projected year end variances to report.
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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 5,159 211 5,370 5,350 20 0.4% 21 (1) Premises Related 373 0 373 431 (58) (15.5%) (2) (56) Transport Related 1 0 1 1 0 0.0% 0 0 Supplies and Services 13,302 0 13,302 14,169 (867) (6.5%) (867) 0 Third Party Payments 126 0 126 126 0 0.0% 0 0 Transfer Payments 2,165 (4) 2,161 2,163 (2) (0.1%) 0 (2) Support Services 4 0 4 4 0 0.0% 0 0 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 21,130 207 21,337 22,244 (907) (4.3%) (848) -59 Income (767) 0 (767) (836) 69 9.0% 13 56 NET EXPENDITURE 20,363 207 20,570 21,408 (838) (4.1%) (835) (3) Budget Variance (Adverse) or Favourable 1 April 2022 to 6 January 2023 POLICY BOARD : LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23
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Appendix 3 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 LEISURE SERVICES Leisure Investment Programme 52,279 0 321 321 321 0 0% 52,600 52,600 0 0% Grass Pitches & Changing Facilities 3,872 0 369 369 369 0 0% 4,241 4,241 0 0% Community Halls Refurbishment 1,710 754 244 998 998 0 0% 3,433 3,433 0 0% Lagoon Internal Play Centre 0 0 0 0 0 0 0% 1,000 1,000 0 0% Total Leisure Services 57,861 754 934 1,688 1,688 0 0% 61,274 61,274 0 0% CHIEF EXECUTIVES City Deal Projects Glasgow Airport Investment Area 38,662 2,314 -766 1,548 1,548 0 0% 43,053 43,053 0 0% Clyde Waterfront & Renfrew Riverside 21,821 37,714 -11,554 26,160 26,160 0 0% 117,748 117,748 0 0% Airport Access 2,934 0 0 0 0 0 0% 141,991 141,991 0 0% Economic Development GAIA Regeneration 2,109 0 1,891 1,891 1,891 0 0% 5,500 5,500 0 0% AMIDS: Public Realm Phase 1 Netheron Square 246 2,726 962 3,688 3,688 0 0% 3,933 3,933 0 0% AMIDS: District Heating Network 3,882 2,007 1,204 3,211 3,211 0 0% 7,093 7,093 0 0% AMIDS: South 415 220 2,208 2,428 2,428 0 0% 42,328 42,328 0 0% Total Chief Executives 70,069 44,981 (6,055) 38,926 38,926 0 0% 361,646 361,646 0 0% TOTAL LEADERSHIP BOARD 127,930 45,735 (5,121) 40,614 40,614 0 0% 422,920 422,920 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: LEADERSHIP Current Year 2022-23 Full Programme - All years