Revenue and Capital Budget Monitoring Overview Report as at 5 January 2024
Renfrewshire Council · 1 May 2024
Back to Leadership Board — 1 May 2024 and its agenda
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To: Leadership Board On: 1 May 2024 Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP Heading: Revenue and Capital Budget Monitoring as at 5 January 2024 1. Summary of Financial Position 1.1. The projected revenue outturn at 5 January 2024 for those services reporting to the Leadership Board is an overspend of £0.819m. 1.2. The projected capital outturn at 5 January 2024 for projects reporting to the Leadership Board is a break-even position against the revised budget for the year. 1.3. This is summarised in the tables 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 98,322 (822) (0.8%) Chief Executives 19,192 19,189 3 0% Total 116,692 117,511 (819) (0.8%) Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Chief Executives 48,706 48,706 0 0% Leisure Services 1,239 1,239 0 0% Total 49,945 49,945 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 £0.819m 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 £0.020m have been processed since the previous report to board. The adjustment reflects funding transferred to the Service in respect of non- domestic rates budgets allocated in-year. 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 £48.706m. For Leisure Services, the revised capital spend for 2023/24 is £1.239m. 5.3. Further details can be found in Appendix 3. 6. Capital Budget Adjustments 6.1. For 2023/24, the current revised programme totals £49.945m which is a decrease of £2.014m since the last report. This is due to budget adjustments as follows: Leisure Service £0.154m: Budget transfer from External Sports project for Linwood Running Track at On-X, as agreed by Council in December 2023.
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Chief Executive (£2.168m): o Budget carried forward (£2.437m) from 2023/24 into 2024/25 for Clyde Waterfront & Renfrew Riverside, due to timing of payment applications; and o Budget increase in 2023/24 of £0.269m for AMIDS: South reflecting a drawdown from the Investment Capital Fund. __________________________________________________________________ Implications of this report 1. Financial The projected budget outturn position for the revenue budget reported to the Leadership Board is an overspend of £0.819m. 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. 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.
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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 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 5 January 2024 POLICY BOARD : LEADERSHIP BOARD Objective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Adult Services 97,500 0 97,500 98,322 (822) (0.8%) (1,548) 726 Chief Executive's Service 19,172 20 19,192 19,189 3 0.0% 6 (3) NET EXPENDITURE 116,672 20 116,692 117,511 (819) (0.7%) (1,542) 723 Subjective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 43,511 1,479 44,990 44,382 608 1.4% 210 398 Premises Related 885 67 952 1,115 (163) (17.1%) (83) (80) Transport Related 819 0 819 604 215 26.3% 215 0 Supplies and Services 17,727 6 17,733 17,985 (253) (1.4%) (182) (71) Third Party Payments 80,231 890 81,121 82,361 (1,240) (1.5%) (2,103) 863 Transfer Payments 4,694 6 4,700 4,555 145 3.1% 158 (13) Support Services 74 0 74 60 14 18.9% 15 (1) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 147,941 2,447 150,388 151,062 (674) (0.4%) (1,770) 1,096 Income (31,269) (2,427) (33,696) (33,551) (145) (0.4%) 228 (373) NET EXPENDITURE 116,672 20 116,692 117,511 (819) (0.7%) (1,542) 723
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 5 January 2024 POLICY BOARD : LEADERSHIP BOARD ‐ ADULT SERVICES Objective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement (Adverse) or Favourable £000 £000 £000 £000 £000 % £000 £000 Older People 61,973 (123) 61,850 63,425 (1,575) (2.5%) (2,036) 461 Physical or Sensory Difficulties 7,863 (9) 7,854 7,630 224 2.9% (96) 320 Learning Difficulties 23,006 109 23,115 23,218 (103) (0.4%) 65 (168) Mental Health Needs 3,990 17 4,007 3,405 602 15.0% 476 126 Addiction Services 667 7 674 644 30 4.5% 42 (12) NET EXPENDITURE 97,500 0 97,500 98,322 (822) (0.8%) (1,548) 726
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Appendix 2 Objective Heading Key Reasons for Projected Variance Older People The projected overspend reflects increased demand, and increased patient acuity of discharges from hospitals with more complex needs, resulting in more intensive care packages. This has led to an overspend within care at home and our three HSCP care homes. 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 inability at that point to move residents on to nursing care when required, and a number of clients admitted during COVID are still within the care homes, with increased support reflective of their higher care requirements. The reduction in overspend within Older People since last period reflects a number of focused pieces of work and mitigating actions put in place by the Senior Management Team over the past few months, as well as the impact of non‐recurring monies, including £1.968m of winter pressure reserves. Physical or Sensory Difficulties The forecast underspend here reflects both changing client needs and some unavoidable delays due to the complexity of need and the availability of appropriate adult placements. Learning Difficulties This projected overspend is reflective of the current demand, client profile, and associated costs within adult care placements. Mental Health Needs The forecast underspend reflects both changing client needs and some unavoidable delays due to the complexity of need and the availability of appropriate adult placement. There are also 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. Addiction Services The projected underspend here reflects ongoing challenges in terms of recruitment and retention issues due to the limited availability of the skills mix required within the workforce market.
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 5 January 2024 POLICY BOARD : LEADERSHIP BOARD ‐ ADULT SERVICES Subjective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 39,797 1,478 41,275 40,678 597 1.4% 183 414 Premises Related 462 48 510 685 (175) (34.3%) (96) (79) Transport Related 818 0 818 603 215 26.3% 215 0 Supplies and Services 3,668 5 3,673 3,919 (247) (6.7%) (166) (81) Third Party Payments 80,231 890 81,121 82,361 (1,240) (1.5%) (2,103) 863 Transfer Payments 2,978 6 2,984 2,837 147 4.9% 163 (16) Support Services 70 0 70 56 14 20.0% 15 (1) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 128,023 2,427 130,450 131,139 (689) (0.5%) (1,789) 1,100 Income (30,523) (2,427) (32,950) (32,817) (133) (0.4%) 241 (374) NET EXPENDITURE 97,500 0 97,500 98,322 (822) (0.8%) (1,548) 726
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 5 January 2024 POLICY BOARD : LEADERSHIP BOARD ‐ CHIEF EXECUTIVE'S SERVICE Objective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Chief Executive and Management 282 0 282 280 2 0.7% 2 0 Policy and Commissioning 3,073 0 3,073 3,076 (3) (0.1%) 0 (3) Marketing and Communications 3,198 9 3,207 3,203 4 0.1% 4 0 City Deal & Infrastructure 0 0 0 0 0 0.0% 0 0 Leisure Services (incl Renfrewshire Leisure) 12,619 11 12,630 12,630 0 0.0% 0 0 NET EXPENDITURE 19,172 20 19,192 19,189 3 0.0% 6 (3) Objective Heading Key Reasons for Projected Variance Chief Executive and Management No significant projected year end variances to report. Policy and Commissioning No significant projected year end variances to report. Marketing and Communications No significant projected year end variances to report. City Deal & Infrastructure No significant projected year end variances to report. Leisure Services (incl Renfrewshire Leisure) No significant projected year end variances to report.
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 5 January 2024 POLICY BOARD : LEADERSHIP BOARD ‐ CHIEF EXECUTIVE'S SERVICE Subjective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 3,715 1 3,715 3,704 11 0.3% 27 (16) Premises Related 423 19 442 430 12 2.7% 13 (1) Transport Related 1 0 1 1 0 0.0% 0 0 Supplies and Services 14,060 1 14,060 14,066 (6) 0.0% (16) 10 Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 1,716 0 1,716 1,718 (2) (0.1%) (5) 3 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 20 19,938 19,923 15 0.1% 19 (4) Income (746) 0 (746) (734) (12) (1.6%) (13) 1 NET EXPENDITURE 19,172 20 19,192 19,189 3 0.0% 6 (3)
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Appendix 3 Prior Years Budget Budget Revised Projected Expenditure at P8 Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023/24 2023/24 2023/24 2023‐24 Budget Outturn Project Title to 31‐Mar‐27to 31‐Mar‐27 £000 £000 £000 £000 £000 £000 £000 LEISURE SERVICES Community Halls Refurbishment 24,736 885 0 885 885 0 0% 3,433 3,433 0 0% Linwood Running Track at On-X 0 200 154 354 354 0 0% 200 200 0 0% Lagoon Internal Play Centre 0 0 0 0 0 0 0% 1,000 1,000 0 0% Total Leisure Services 24,736 1,085 154 1,239 1,239 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 (2,437) 41,771 41,771 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 Netherton 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 1,735 269 2,004 2,004 0 0% 43,625 43,625 0 0% Total Chief Executives 111,559 50,874 (2,168) 48,706 48,706 0 0% 361,691 361,691 0 0% TOTAL LEADERSHIP BOARD 136,295 51,959 (2,014) 49,945 49,945 0 0% 366,324 366,324 0 0% *Rolling programmes have a prior 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 Budget Variance (Adverse) or RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY ‐ NON‐HOUSING SERVICES 1 April 2023 to 5 January 2024 POLICY BOARD: LEADERSHIP Current Year 2023‐24 Full Programme ‐ All years