Revenue and Capital Budget Monitoring as at 21 June 2024
Renfrewshire Council · 18 September 2024
Back to Leadership Board — 18 September 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Some pages contain no extractable text. They may be blank, graphics or scanned pages. OCR has not been applied.
Page 1
___________________________________________________________________ To: Leadership Board On: 18 September 2024 ___________________________________________________________________ Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring as at 21 June 2024 ___________________________________________________________________ 1. Summary 1.1. At the close of reporting Period 3 on 21 June 2024, the projected revenue outturn at 31 March 2025 for those services reporting to the Leadership Board was an overspend position of £6.069m (4.8%) against the revised budget for the year. 1.2. The projected capital outturn at 21 June 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. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Adult Services 106,460 112,555 (6,095) (5.7%) Chief Executive’s Service 19,632 19,606 26 0.1% Total 126,092 132,161 (6,069) (4.8%) Capital 32,448 32,448 0 0.0%
Page 2
2. Recommendations 2.1. Members are requested to: a) Note the projected Revenue outturn overspend position of £6.069m; b) Note the projected Capital outturn break-even position; and c) Note the budget adjustments detailed at section 6.3. _________________________________________________________ 3. Revenue Budget Projection – overspend of £6.069m by 31 March 2025 3.1. The tables in Appendix 1 present the projected year-end position for all services reporting to this board, by both subjective analysis (what the budget is spent on) and objective analysis (which division is spending the budget). Significant variances affecting the projected position are analysed further below. 3.2. The approved Adult Services revenue budget for 2024/25 was a deficit position of £7.516m, meaning that there is an expectation that services will overspend to this level during the year, and that this would be funded from reserves. 3.3. It should be noted that the projected outturn position reported here is based on the latest information available, which is subject to change during the financial year. The impact of any change on this projection will be updated at each board cycle until the close of reporting Period 10. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis – Significant Variances 4.1. Adult Services - £6.095m overspend The overspend is mainly due to external care at home packages for both Older People and those with Physical or Sensory Difficulties. This results from increased acuity of patients discharged from hospital, with more complex needs, meaning more intensive Care at Home packages are required to support people to remain in their own homes. Note that these projections do not take into account the cost associated with the back pay in relation to care at home staff regrade, which is still to be fully agreed. 4.2. Chief Executive’s Services - £0.026m underspend There are no significant variances to report for those divisions of the Chief Executives Service reporting to this Policy Board.
Page 3
5. Subjective Analysis – Significant Variances 5.1. Employee Costs - £0.604m underspend This forecast underspend predominantly arises within Adult Services (£0.580m) due to the ongoing recruitment challenges and retention issues across all service areas due to the limited availability of the required skills mix. This projection does not take into account the cost associated with the back pay in relation to care at home staff regrade, which is still to be fully agreed. 5.2. Premises Related - £0.052m overspend This forecast overspend, mainly in Adult Services (£0.051m) relates to increased cleaning costs and repairs, including the purchase of track hoists. 5.3. Transport Related - £0.230m underspend This forecast underspend, mainly within Adult Services (£0.229m) relates to Older People Day Care operating at a reduced capacity. 5.4. Supplies and Services - £0.084m overspend This position mainly results from a £0.034m projected overspend on Supplies and Services within Adult Services due to the inflationary increases in the provision of community meals. 5.5. Third Party Payments - £6.842m overspend This forecast overspend relates fully to Adult Services and is mainly due to external care at home packages. This results from increased acuity of patients discharged from hospital, with more complex needs, meaning more intensive Care at Home packages are required to support people to remain in their own homes. Further overspends are forecast within adult supported living packages and carer's respite, reflective of client needs and demand for these services. The position is further impacted by anticipated inflationary increases as a result of the adult supported living framework renewal in October 2024. 5.6. Transfer Payments - £0.035m overspend This forecast overspend arises within Adult Services due to a projected increase to the provision for bad debts, based on current outstanding debt levels. 5.7. Income - £0.105m over-recovery Adult Services is currently reporting an expected £0.077m over-recovery on income from community alarms due to an increase in the number of service users; this offsets community alarm contractual increases. In addition, there is
Page 4
a projected over-recovery of income based on new charging orders registered so far during 2024/25, and funds received to date. 6. Revenue Budget Virements 6.1. Under the Council’s financial regulations, Directors and their nominated officers, in consultation with the Director of Finance and Resources, have certain delegated authority to transfer sums between subjective budget headings within a service division to enable budget management throughout the financial year. This is known as budget virement. 6.2. Transfers between divisions of the same service / department in excess of £100,000, and transfers between services / departments must be authorised by the respective service Director and the Director of Finance and Resources for submission to the relevant policy board for approval. There are no such virements for this reporting period. 6.3. The following budget adjustments reflect allocations of agreed savings, pay settlements, changes to superannuation rates and non-domestic rates, and are therefore for noting only: Revenue Budget Adjustments Service Amount (£m) Reason Chief Executive’s Service (0.432) Right for Renfrewshire savings realised Chief Executive’s Service (0.369) Contribution to reserves re reduction in employers’ superannuation Chief Executive’s Service 0.618 Pay Award 2023/24 Chief Executive’s Service (0.009) Realignment of non-domestic rates 7. Capital Budget Projection - break even position by 31 March 2025 7.1. The Capital Investment Programme 2024/25 to 2028/29 was approved by the Council on 29 February 2024. The Leadership Board approved capital spend for 2024/25 is £27.780m. 7.2. The in-year Capital budget is forecast to break-even by 31 March 2025, however, this will be monitored as the projects progress. Further details of the programme can be found in the Capital Monitoring report at Appendix 2. 7.3. Budget adjustments totalling £4.668m have taken place between years to reflect revised programming of some capital projects. The revised capital spend for 2024/25 is £32.448m, details of these adjustments are as follows:
Page 5
Capital Budget Adjustments Project Amount (£m) Reason Community Halls Refurbishment 0.702 Budget carried forward into 2024/25 to reflect updated timing Linwood Running Track at On-X 0.350 Glasgow Airport Investment Area 0.150 GAIA Regeneration 3.391 AMIDS: Netherton Square 0.126 AMIDS: District Heating Network 0.311 Clyde Waterfront & Renfrew Riverside (0.030) Budget decrease due to Active Travel Transformation Fund grant reduction AMIDS: South (0.332) Budget accelerated back to 2023/24 Total 4.668 Implications of the Report 1. Financial The projected budget outturn position for the Leadership Revenue budget is an overspend of £6.069m (4.8%) at 31 March 2025. 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 by services to mitigate any overspend. The projected outturn position for the Leadership Capital budget is break-even, after the adjustments outlined at section 7. 2. HR & Organisational Development None directly arising from this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy and our future The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Building strong, safe and resilient communities
Page 6
Council Plan Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Ongoing revenue and capital budget monitoring is a tool to enable good financial management so that the Council has resources now and in the future for continued service delivery. Working together to improve outcomes 4. Legal There are no direct implications arising from the recommendations in this report. 5. Property/Assets The capital expenditure noted in this report will result in new assets (City Deal), regeneration (GAIA and AMIDS) and refurbishment and improvement of leisure and culture assets. 6. Information Technology While ICT assets and revenue costs are included within these reported budgets, there are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights While certain areas of spend may impact on particular groups, any such impact would be assessed prior to the spend being incurred, therefore there are no direct implications arising from the recommendations in this report. 8. Health & Safety The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets, which may in some cases rectify health and safety issues. 9. Procurement While Procurement is a key consideration prior to the Council incurring any revenue or capital spend, there are no direct implications arising from the recommendations in 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.
Page 7
11. Privacy Impact There are no direct implications arising from the recommendations in this report. 12. Cosla Policy Position There are no direct implications arising from the recommendations in this report. 13. Children’s Rights There are no direct implications arising from the recommendations in this report. 14. Climate Change The Council aims to reduce its carbon and other emissions to net zero by 2030, however there are no direct implications arising from the recommendations in this report. _________________________________________________________ List of Background Papers Revenue Budget and Council Tax 2024/25, Council, 29 February 2024. 2024-25 Delegated Health and Social Care Budget, Renfrewshire Integration Joint Board, 22 March 2024 Non-Housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2024/25 – 2028/29, Council, 29 February 2024. ___________________________________________________________________ Authors: Revenue - Valerie Howie, Finance Business Partner / Alison Burns, Corporate Finance Manager Capital – Linsey McGregor, Capital Accountant
Page 8
No embedded text on this page.
Page 9
Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 21 June 2024 POLICY BOARD: LEADERSHIP BOARD Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn Budget Variance (Adverse) or Favourable £000 £000 £000 £000 £000 % Adult Services 106,490 (30) 106,460 112,555 (6,095) (5.7%) Chief Executive's Service 19,859 (227) 19,632 19,606 26 0.1% NET EXPENDITURE 126,349 (257) 126,092 132,161 (6,069) (4.8%) Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn Budget Variance (Adverse) or Favourable £000 £000 £000 £000 £000 % Employees 42,603 (789) 41,814 41,210 604 1.4% Premises Related 796 (9) 787 839 (52) (6.6%) Transport Related 819 (5) 814 584 230 28.3% Supplies and Services 18,577 (93) 18,484 18,568 (84) (0.5%) Third Party Payments 76,563 10,121 86,684 93,526 (6,842) (7.9%) Transfer Payments 16,850 (9,127) 7,723 7,758 (35) (0.5%) Support Services 74 4 78 73 5 6.4% GROSS EXPENDITURE 156,282 102 156,384 162,558 (6,174) (3.9%) Income (29,933) (359) (30,292) (30,397) 105 0.3% NET EXPENDITURE 126,349 (257) 126,092 132,161 (6,069) (4.8%)
Page 10
No embedded text on this page.
Page 11
Appendix 2 Approved Budget Revised Projected Budget Adjustments Budget Outturn Total Approved Projected 2024-25 in 2024-25 2024-25 2024-25 Budget Outurn Project Title to 31-Mar-29 to 31-Mar-29 £000 £000 £000 £000 £000 £000 LEISURE SERVICES Artificial Pitches Fund 800 0 800 800 0 0% 800 800 0 0% Community Halls Refurbishment 130 702 832 832 0 0% 25,751 25,751 0 0% Linwood Running Track at On-X 0 350 350 350 0 0% 354 354 0 0% Lagoon Internal Play Centre 1,000 0 1,000 1,000 0 0% 1,000 1,000 0 0% Total Leisure Services 1,930 1,052 2,982 2,982 0 0% 27,905 27,905 0 0% CHIEF EXECUTIVES City Deal Projects Glasgow Airport Investment Area 2,065 150 2,215 2,215 0 0% 43,064 43,064 0 0% Clyde Waterfront & Renfrew Riverside 19,291 -30 19,261 19,261 0 0% 117,824 117,824 0 0% Airport Access 0 0 0 0 0 0% 141,992 141,992 0 0% Economic Development GAIA Regeneration 0 3,391 3,391 3,391 0 0% 3,391 3,391 0 0% AMIDS: Public Realm Phase 1 Netheron Square 0 126 126 126 0 0% 3,933 3,933 0 0% AMIDS: District Heating Network 0 311 311 311 0 0% 7,093 7,093 0 0% AMIDS: South 4,494 -332 4,162 4,162 0 0% 43,098 43,098 0 0% Total Chief Executives 25,850 3,616 29,466 29,466 0 0% 360,395 360,395 0 0% TOTAL LEADERSHIP BOARD 27,780 4,668 32,448 32,448 0 0% 388,300 388,300 0 0% Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 21st June 2024 POLICY BOARD: LEADERSHIP Current Year 2024-25 Full Programme - All years