Revenue and Capital Budget Monitoring Overview Report as at 10 November 2023
Renfrewshire Council · 21 February 2024
Back to Leadership Board — 21 February 2024 and its agenda
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To: Leadership Board On: 21 February 2024 Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP Heading: Revenue and Capital Budget Monitoring as at 10 November 2023 1. Summary of Financial Position 1.1. The projected revenue outturn at 10 November 2023 for those services reporting to the Leadership Board is an overspend of £1.542m. 1.2. The projected capital outturn at 10 November 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 99,048 (1,548) (1.6%) Chief Executives 19,172 19,166 6 0% Total 116,672 118,214 (1,542) (1.3%) 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 1,086 1,086 0 0% Total 51,959 51,959 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 overspend of £1.542m by 31 March 2024 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. There have been no budget adjustments since the last report to Committee (Period 6 as at 15 September). 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 £1.086m. 5.3. Further details can be found in Appendix 3. 6. Capital Budget Adjustments 6.1. For 2023/24, the current revised programme totals £51.959m which is a decrease of £1.000m since the last report. This is due to budget adjustments for Leisure Service, as follows: Lagoon Internal Play Centre: Budget carried forward from 2023/24 into 2024/25 (£1.000m) as a result of planned work delayed to 2024/25 due to the hall being used as a temporary gym for Castlehead High School.
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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 overspend of £1.542m. 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. 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.
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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 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Adult Services 97,500 (0) 97,500 99,048 (1,548) (1.6%) (3,925) 2,377 Chief Executive's Service 19,172 0 19,172 19,166 6 0.0% 8 (2) NET EXPENDITURE 116,672 (0) 116,672 118,214 (1,542) (1.3%) (3,917) 2,375 Subjective Summary 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 43,508 3 43,511 43,302 209 0.5% (511) 720 Premises Related 885 0 885 968 (83) (9.4%) (62) (21) Transport Related 819 0 819 604 215 26.3% 255 (40) Supplies and Services 17,658 69 17,727 17,908 (181) (1.0%) (178) (3) Third Party Payments 80,148 83 80,231 82,334 (2,103) (2.6%) (3,689) 1,586 Transfer Payments 4,694 0 4,694 4,536 158 3.4% 166 (8) Support Services 74 0 74 59 15 20.3% 14 1 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 147,786 155 147,941 149,711 (1,770) (1.2%) (4,005) 2,235 Income (31,114) (155) (31,269) (31,497) 228 0.7% 88 140 NET EXPENDITURE 116,672 0 116,672 118,214 (1,542) (1.3%) (3,917) 2,375 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 10 November 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 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Older People 61,970 3 61,973 64,009 (2,036) (3.3%) (3,945) 1,910 Physical or Sensory Difficulties 7,866 (3) 7,863 7,959 (96) (1.2%) 80 (176) Learning Difficulties 23,007 (1) 23,006 22,941 65 0.3% (455) 520 Mental Health Needs 3,990 0 3,990 3,514 476 11.9% 350 126 Addiction Services 667 0 667 625 42 6.3% 46 (4) NET EXPENDITURE 97,500 (0) 97,500 99,048 (1,548) (1.6%) (3,925) 2,377 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 The overspend care at home and our three HSCP care homes reflects increased demand and increased patient acuity of discharges from hospitals with more complex needs and more intensive care packages. The current increased dependencies of clients supported within our care homes reflects the impact of COVID and the level of increased staffing put in place to manage levels of need due to our inability at that point to move residents on to nursing care when required (previously funded by Scottish Government from 2020/21 to mid 2022/23). However, a number of clients admitted during COVID are still within the care homes requiring increased support reflective of their higher‐than‐normal care requirements. To date £1.968m has been drawn down from winter pressure reserves, accounting for the movement from Period 6. This is assisting to temporarily mitigate the overspend within these areas. Overspend reflective of the current client profile and associated costs within adult care placements. RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 10 November 2023 Budget Variance (Adverse) or Favourable 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 reflective of current client profile within adult care placements and 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 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 39,794 3 39,797 39,614 183 0.5% (515) 698 Premises Related 462 0 462 558 (96) (20.8%) (75) (21) Transport Related 818 0 818 603 215 26.3% 255 (40) Supplies and Services 3,599 69 3,668 3,833 (166) (4.5%) (181) 16 Third Party Payments 80,148 83 80,231 82,334 (2,103) (2.6%) (3,689) 1,586 Transfer Payments 2,977 1 2,978 2,815 163 5.5% 166 (3) Support Services 70 0 70 55 15 21.4% 14 1 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 127,868 155 128,023 129,812 (1,789) (1.4%) (4,025) 2,236 Income (30,368) (155) (30,523) (30,764) 241 0.8% 100 141 NET EXPENDITURE 97,500 0 97,500 99,048 (1,548) (1.6%) (3,925) 2,377 POLICY BOARD : LEADERSHIP BOARD ‐ ADULT SERVICES 1 April 2023 to 10 November 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 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Chief Executive and Management 282 0 282 280 2 0.7% 3 (1) Policy and Commissioning 3,073 0 3,073 3,073 0 0.0% 0 0 Marketing and Communications 3,198 0 3,198 3,194 4 0.1% 5 (1) 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 19,172 0 19,172 19,166 6 0.0% 8 (2) 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 10 November 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 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 3,714 1 3,715 3,688 27 0.7% 4 23 Premises Related 423 0 423 410 13 3.1% 13 0 Transport Related 1 0 1 1 0 0.0% 0 0 Supplies and Services 14,059 1 14,060 14,075 (16) (0.1%) 3 (19) Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 1,717 (1) 1,716 1,721 (5) (0.3%) 0 (5) 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 19,918 0 19,918 19,899 19 0.1% 20 (1) Income (746) 0 (746) (733) (13) (1.7%) (12) (1) NET EXPENDITURE 19,172 0 19,172 19,166 6 0.0% 8 (2) REVENUE BUDGET MONITORING STATEMENT 2023/24 Budget Variance (Adverse) or Favourable POLICY BOARD : LEADERSHIP BOARD ‐ CHIEF EXECUTIVE'S SERVICE 1 April 2023 to 10 November 2023 RENFREWSHIRE COUNCIL
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Appendix 3 Prior Years Budget Budget Revised Projected Expenditure at P6 Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023‐24 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 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 (1,000) 0 0 0 0% 1,000 1,000 0 0% Total Leisure Services 2,548 2,086 (1,000) 1,086 1,086 0 0% 4,633 4,633 0 0% CHIEF EXECUTIVES City Deal Projects Glasgow Airport Investment Area 40,616 372 0 372 372 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 1,735 0 1,735 1,735 0 0% 43,625 43,625 0 0% Total Chief Executives 111,559 50,873 0 50,873 50,873 0 0% 361,691 361,691 0 0% TOTAL LEADERSHIP BOARD 114,107 52,959 (1,000) 51,959 51,959 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 10th November 2023 POLICY BOARD: LEADERSHIP Current Year 2023‐24 Full Programme ‐ All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable