Revenue and Capital Budget Monitoring as at 15 September 2023
Renfrewshire Council · 6 December 2023
Back to Leadership Board — 6 December 2023 and its agenda
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To: Leadership Board On: 6 December 2023 Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP Heading: Revenue and Capital Budget Monitoring as at 15 September 2023 1. Summary of Financial Position 1.1. The projected revenue outturn at 15 September 2023 for those services reporting to the Leadership Board is an overspend of £3.917m. 1.2. The projected capital outturn at 15 September 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 97,500 101,425 (3,925) (4.0%) Chief Executives 19,172 19,164 8 0% Total 116,672 120,589 (3,917) (3.4%) Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Chief Executives 50,873 50,873 0 0% Leisure Services 2,086 2,086 0 0% Total 52,959 52,959 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 overspend of £3.917m for all services reporting to this Board. Detailed division reports can be found in Appendix 2, along with an explanation of any 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). 4. Revenue Budget Adjustments 4.1. Members are requested to note, from Appendix 1, that budget adjustments totalling £0.406 million have been processed since the budget was approved in March 2023. These relate principally to the transfer of Policy and Partnerships savings achieved under the Right for Renfrewshire programme to Miscellaneous Services. 5. Capital 5.1. The Capital Investment Programme 2023/24 to 2027/28 was approved by the Council on 2 March 2023. 5.2. For the Chief Executive’s Service, the revised capital spend for 2023/24 is £50.873m. For Leisure Services, the revised capital spend for 2023/24 is £2.086m. 5.3. Further details can be found in Appendix 3.
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6. Capital Budget Adjustments 6.1. For 2023/24, the current revised programme totals £52.959m which is a decrease of £15.277m since the last report. This is due to budget adjustments for Chief Executive Services, as follows: • Chief Executives Budget carried forward into 2024/25 from 2023/24 (-£15.277m) based on updated cashflows for the following projects: o Glasgow Airport Investment Area: (-£2.000m); o AIMIDS South: (-£13.277m). Implications of this report 1. Financial The projected budget outturn position for the revenue budget reported to the Leadership Board is an overspend of £3.917m. 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 None directly arising from this report.
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8. Health and Safety None directly arising from this report. 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 Revenue Budget and Council Tax 2023/24, Council 2 March 2023. Non Housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2023/24 – 2027/28, Council 2 March 2023 __________________________________________________________________ Authors: Revenue - Valerie Howie, Finance Business Partner / Alison Burns, Corporate Finance Manager Capital – Linsey McGregor, Capital Accountant
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Appendix 1 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Adult Services 97,537 (37) 97,500 101,425 (3,925) (4.0%) 0 (3,925) Chief Executive's Service 19,541 (369) 19,172 19,164 8 0.0% 8 0 NET EXPENDITURE 117,078 (406) 116,672 120,589 (3,917) (3.4%) 8 (3,925) Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 43,158 350 43,508 44,019 (511) (1.2%) 3 (514) Premises Related 777 108 885 947 (62) (7.0%) 0 (62) Transport Related 819 0 819 564 255 31.1% 0 255 Supplies and Services 17,575 83 17,658 17,836 (178) (1.0%) 3 (181) Third Party Payments 79,965 183 80,148 83,837 (3,689) (4.6%) 0 (3,689) Transfer Payments 4,802 (108) 4,694 4,528 166 3.5% 1 165 Support Services 74 0 74 60 14 18.9% 0 14 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 147,170 616 147,786 151,791 (4,005) (2.7%) 7 (4,012) Income (30,092) (1,022) (31,114) (31,202) 88 0.3% 1 87 NET EXPENDITURE 117,078 (406) 116,672 120,589 (3,917) (3.4%) 8 (3,925) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 15 September 2023 Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable POLICY BOARD : LEADERSHIP BOARD
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Appendix 2 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Older People 62,226 (256) 61,970 65,915 (3,945) (6.4%) 0 (3,945) Physical or Sensory Difficulties 7,866 0 7,866 7,786 80 1.0% 0 80 Learning Difficulties 22,937 70 23,007 23,462 (455) (2.0%) 0 (455) Mental Health Needs 3,842 148 3,990 3,640 350 8.8% 0 350 Addiction Services 666 1 667 621 46 6.9% 0 46 NET EXPENDITURE 97,537 (37) 97,500 101,425 (3,925) (4.0%) 0 (3,925) Objective Heading Older People Physical or Sensory Difficulties Learning Difficulties Mental Health Needs Addiction Services POLICY BOARD : LEADERSHIP BOARD - ADULT SERVICES Key Reasons for Projected Variance Overspend within care at home due to demand and delayed discharges. Ongoing difficulties recruiting to specialist posts across a number of areas. Where appropriate and where possible these are being covered through overtime and agency staff which is often at a higher cost. Underspend reflects ongoing challenges in terms of recruitment and retention issues across all service areas due to the limited availability of the skills mix required within the workforce market. RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 15 September 2023 Budget Variance (Adverse) or Favourable Overspend reflective of the current client profile and the implementation of future adult care placements including complex high- cost placements over the financial year. Underspend reflects ongoing challenges in terms of recruitment and retention issues across all service areas due to the limited availability of the skills mix required within the workforce market. Underspend reflects ongoing challenges in terms of recruitment and retention issues across all service areas due to the limited availability of the skills mix required within the workforce market.
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Appendix 2 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 39,104 690 39,794 40,309 (515) (1.3%) 0 (515) Premises Related 404 58 462 537 (75) (16.2%) 0 (75) Transport Related 818 0 818 563 255 31.2% 0 255 Supplies and Services 3,599 0 3,599 3,780 (181) (5.0%) 0 (181) Third Party Payments 79,965 183 80,148 83,837 (3,689) (4.6%) 0 (3,689) Transfer Payments 2,977 0 2,977 2,811 166 5.6% 0 166 Support Services 70 0 70 56 14 20.0% 0 14 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 126,937 931 127,868 131,893 (4,025) (3.1%) 0 (4,025) Income (29,400) (968) (30,368) (30,468) 100 0.3% 0 100 NET EXPENDITURE 97,537 (37) 97,500 101,425 (3,925) (4.0%) 0 (3,925) POLICY BOARD : LEADERSHIP BOARD - ADULT SERVICES 1 April 2023 to 15 September 2023 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 Budget Variance (Adverse) or Favourable
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Appendix 2 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Chief Executive and Management 282 0 282 279 3 1.1% 3 0 Policy and Commissioning 3,462 (389) 3,073 3,073 0 0.0% 3 (3) Marketing and Communications 3,178 20 3,198 3,193 5 0.2% 2 3 City Deal & Infrastructure 0 0 0 0 0 0.0% 0 0 Leisure Services (incl Renfrewshire Leisure) 12,619 0 12,619 12,619 0 0.0% 0 0 NET EXPENDITURE 19,541 (369) 19,172 19,164 8 0.0% 8 0 Objective Heading Chief Executive and Management Policy and Commissioning Marketing and Communications City Deal & Infrastructure Leisure Services (incl Renfrewshire Leisure) POLICY BOARD : LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE 1 April 2023 to 15 September 2023 Budget Variance (Adverse) or Favourable Key Reasons for Projected Variance No significant projected year end variances to report. REVENUE BUDGET MONITORING STATEMENT 2023/24 No significant projected year end variances to report. 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
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Appendix 2 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 4,054 (340) 3,714 3,710 4 0.1% 3 1 Premises Related 373 50 423 410 13 3.1% 0 13 Transport Related 1 0 1 1 0 0.0% 0 0 Supplies and Services 13,976 83 14,059 14,056 3 0.0% 3 0 Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 1,825 (108) 1,717 1,717 0 0.0% 1 (1) 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 20,233 (315) 19,918 19,898 20 0.1% 7 13 Income (692) (54) (746) (734) (12) (1.6%) 1 (13) NET EXPENDITURE 19,541 (369) 19,172 19,164 8 0.0% 8 0 REVENUE BUDGET MONITORING STATEMENT 2023/24 Budget Variance (Adverse) or Favourable POLICY BOARD : LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE 1 April 2023 to 15 September 2023 RENFREWSHIRE COUNCIL
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Appendix 3 Prior Years Budget Budget Revised Projected Expenditure at P3 Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023-24 0 2023-24 2023-24 Budget Outurn Project Title to 31-Mar-27 to 31-Mar-27 £000 £000 £000 £000 £000 £000 £000 LEISURE SERVICES Community Halls Refurbishment 2,548 886 0 886 886 0 0% 3,433 3,433 0 0% Linwood Running Track at On-X 0 200 0 200 200 0 0% 200 200 0 0% Lagoon Internal Play Centre 0 1,000 0 1,000 1,000 0 0% 1,000 1,000 0 0% Total Leisure Services 2,548 2,086 0 2,086 2,086 0 0% 4,633 4,633 0 0% CHIEF EXECUTIVES City Deal Projects Glasgow Airport Investment Area 40,616 2,372 (2,000) 372 372 0 0% 43,053 43,053 0 0% Clyde Waterfront & Renfrew Riverside 55,054 44,208 0 44,208 44,208 0 0% 118,604 118,604 0 0% Airport Access 2,934 0 0 0 0 0 0% 141,992 141,992 0 0% Economic Development GAIA Regeneration 0 3,391 0 3,391 3,391 0 0% 3,391 3,391 0 0% AMIDS: Public Realm Phase 1 Netheron Square 3,596 337 0 337 337 0 0% 3,933 3,933 0 0% AMIDS: District Heating Network 6,263 830 0 830 830 0 0% 7,093 7,093 0 0% AMIDS: South 3,096 15,012 (13,277) 1,735 1,735 0 0% 43,625 43,625 0 0% Total Chief Executives 111,559 66,150 (15,277) 50,873 50,873 0 0% 361,691 361,691 0 0% TOTAL LEADERSHIP BOARD 114,107 68,236 (15,277) 52,959 52,959 0 0% 366,324 366,324 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. RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 15th SEPTEMBER 2023 POLICY BOARD: LEADERSHIP Current Year 2023-24 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable