Revenue and Capital Budget Monitoring as at 13 September 2024 Final
Renfrewshire Council · 4 December 2024
Back to Leadership Board — 4 December 2024 and its agenda
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___________________________________________________________________ To: Leadership Board On: 4 December 2024 ___________________________________________________________________ Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring as at 13 September 2024 ___________________________________________________________________ 1. Summary 1.1. At the close of reporting Period 6 on 13 September 2024, the projected revenue outturn at 31 March 2025 for those services reporting to the Leadership Board was an overspend position of £6.672m (5.3%) against the revised budget for the year. The projected overspend position relates to Adult Services and is tracking within the planned budgeted overspend of £7.516m set by the IJB as part of the 2024/25 budget. 1.2. The projected capital outturn at 13 September 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 106,460 113,160 (6,700) (6.3%) Chief Executive’s Service 20,119 20,091 28 0.1% Total 126,579 133,251 (6,672) (5.3%) Capital 30,699 30,699 0 0%
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2. Recommendations 2.1. Members are requested to: a) Note the projected Revenue outturn overspend position of £6.672m; b) Note the projected Capital outturn break-even position; c) Note the budget adjustments detailed at section 6.4 and 7.3; and d) Approve the budget adjustments proposed at section 6.3. _________________________________________________________ 3. Revenue Budget Projection – overspend of £6.672m 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. 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 - £6.700m overspend The overspend is mainly due to external care at home packages for Older People. 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. In addition, there is a projected overspend within aids and adaptations and carer's respite, reflective of demand for these services. In setting the 2024/25 budget, the IJB planned for Adult Services to overspend by £7.516m, which would be funded in year by a draw from available reserves. The projected year end position is therefore tracking within this planned service overspend and will result in a lower draw on reserves than previously anticipated. 4.2. Chief Executive’s Services - £0.028m underspend There are no significant variances to report for those divisions of the Chief Executives Service reporting to this Policy Board. ___________________________________________________________________
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5. Subjective Analysis – Significant Variances 5.1. Employee Costs - £0.537m underspend This forecast underspend predominantly arises within Adult Services (£0.504m) 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 - £0.065m overspend This forecast overspend, mainly in Adult Services (£0.064m) relates to increased cleaning costs and repairs, including the purchase of track hoists. 5.3. Transport Related - £0.289m underspend This forecast underspend, mainly within Adult Services (£0.288m) relates to Older People Day Care operating at a reduced capacity and changes in day centre provision within Renfrewshire Learning Disability Service. 5.4. Supplies and Services - £0.152m overspend This position mainly results from a £0.105m projected overspend within Adult Services due to the inflationary increases in the provision of community meals and the demand for aids and adaptations. 5.5. Third Party Payments - £7.248m 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 November 2024. 5.6. Transfer Payments - £0.092m overspend This forecast overspend mainly arises within Adult Services (£0.116m) due to a projected increase to the provision for bad debts, based on current outstanding debt levels. 5.7. Income - £0.056m over-recovery Adult Services is currently reporting an expected £0.037m over-recovery on income from community alarms due to an increase in the number of service
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users; this offsets community alarm contractual increases. The projected over- recovery also relates to 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. 6.3. Budget holders are obliged to seek mitigating action to minimise significant budget variances. The Board is therefore asked to approve the following virements, which are not currently applied to the budget: Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Adult Services Third Party Payments Transport 0.189 (0.189) Budget realignment in relation to day centre activity 6.4. The following budget adjustments reflect the realignment of funds within Adult Services and are therefore for noting only: Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Adult Services Transfer Payments Third Party Payments 17.927 (17.927) Budget realignment of care at home and adult supported living package budgets across the Self Directed Support options ___________________________________________________________________ 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 was £32.448m.
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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 £1.749m since Period 3 have taken place between years to reflect revised programming of some capital projects. The revised capital spend for 2024/25 is £30.699m, and details of these adjustments are as follows: Capital Budget Adjustments Project Amount (£m) Reason AMIDS: South (1.749) Reprofiled into 2025/26 to reflect updated cashflow profiles for the project. Total (1.749) Implications of the Report 1. Financial The projected budget outturn position for the Leadership Revenue budget is an overspend of £6.672m (5.3%) 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
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Council Plan Building strong, safe and resilient communities purpose and safe for the community, to maximise accessibility. 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.
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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. 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 – Geoff Borland, Finance Manager
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 13 September 2024 POLICY BOARD: LEADERSHIP BOARD Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Adult Services 106,460 0 106,460 113,160 (6,700) (6.3%) (6,095) (605) Chief Executive's Service 19,632 487 20,119 20,091 28 0.1% 26 2 NET EXPENDITURE 126,092 487 126,579 133,251 (6,672) (5.3%) (6,069) (603) Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 41,814 (150) 41,664 41,127 537 1.3% 604 (67) Premises Related 787 54 841 906 (65) (7.7%) (52) (13) Transport Related 814 0 814 525 289 35.5% 230 59 Supplies and Services 18,484 (120) 18,364 18,516 (152) (0.8%) (84) (68) Third Party Payments 86,684 (18,255) 68,429 75,677 (7,248) (10.6%) (6,842) (406) Transfer Payments 7,723 18,623 26,346 26,438 (92) (0.3%) (35) (57) Support Services 78 28 106 103 3 2.8% 5 (2) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 156,384 180 156,564 163,292 (6,728) (4.3%) (6,174) (554) Income (30,292) 307 (29,985) (30,041) 56 0.2% 105 (49) NET EXPENDITURE 126,092 487 126,579 133,251 (6,672) (5.3%) (6,069) (603)
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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 Older People 69,143 (9,743) 59,400 63,939 (4,539) (7.6%) (4,418) (121) Physical or Sensory Difficulties 7,714 6,633 14,347 14,917 (570) (4.0%) (906) 336 Learning Difficulties 25,480 1,480 26,960 27,861 (901) (3.3%) (538) (363) Mental Health Needs 3,486 1,613 5,099 5,847 (748) (14.7%) (296) (452) Addiction Services 637 17 654 596 58 8.9% 63 (5) NET EXPENDITURE 106,460 0 106,460 113,160 (6,700) (6.3%) (6,095) (605) 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 38,173 (166) 38,007 37,503 504 1.3% 580 (76) Premises Related 404 54 458 522 (64) (14.0%) (51) (13) Transport Related 813 0 813 525 288 35.4% 229 59 Supplies and Services 3,762 (122) 3,640 3,745 (105) (2.9%) (34) (71) Third Party Payments 86,684 (18,255) 68,429 75,677 (7,248) (10.6%) (6,842) (406) Transfer Payments 6,221 18,160 24,381 24,497 (116) (0.5%) (59) (57) Support Services 74 0 74 70 4 5.4% 5 (1) GROSS EXPENDITURE 136,131 (329) 135,802 142,539 (6,737) (5.0%) (6,172) (565) Income (29,671) 329 (29,342) (29,379) 37 0.1% 77 (40) NET EXPENDITURE 106,460 0 106,460 113,160 (6,700) (6.3%) (6,095) (605) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 13 September 2024 Budget Variance (Adverse) or Favourable POLICY BOARD: LEADERSHIP BOARD - ADULT SERVICES Budget Variance (Adverse) or Favourable
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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 Chief Executive and Management 268 0 268 266 2 0.7% 2 0 Policy and Commissioning 3,143 562 3,705 3,696 9 0.2% 6 3 Marketing and Communications 2,811 (100) 2,711 2,694 17 0.6% 19 (2) City Deal & Infrastructure 0 29 29 29 0 0.0% 0 0 Leisure Services (incl Renfrewshire Leisure) 13,410 (4) 13,406 13,406 0 0.0% (1) 1 NET EXPENDITURE 19,632 487 20,119 20,091 28 0.1% 26 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 3,641 16 3,657 3,624 33 0.9% 24 9 Premises Related 383 0 383 384 (1) (0.3%) (1) 0 Transport Related 1 0 1 0 1 100.0% 1 0 Supplies and Services 14,722 2 14,724 14,771 (47) (0.3%) (50) 3 Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 1,502 463 1,965 1,941 24 1.2% 24 0 Support Services 4 28 32 33 (1) (3.1%) 0 (1) Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 20,253 509 20,762 20,753 9 0.0% (2) 11 Income (621) (22) (643) (662) 19 3.0% 28 (9) NET EXPENDITURE 19,632 487 20,119 20,091 28 0.1% 26 2 Budget Variance (Adverse) or Favourable POLICY BOARD: LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE Budget Variance (Adverse) or Favourable REVENUE BUDGET MONITORING STATEMENT 2024/25 RENFREWSHIRE COUNCIL 1 April 2024 to 13 September 2024
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Appendix 2 Prior Years Budget Budget Revised Projected Expenditure at P3 Adjustments Budget Outturn Total Approved Projected to 31/03/2024 2024-25 since previous 2024-25 2024-25 Budget Outurn Project Title to 31-Mar-29 to 31-Mar-29 £000 £000 £000 £000 £000 £000 £000 LEISURE SERVICES Artificial Pitches Fund 0 800 0 800 800 0 0% 800 800 0 0% Community Halls Refurbishment 24,920 832 0 832 832 0 0% 25,751 25,751 0 0% Linwood Running Track at On-X 4 350 0 350 350 0 0% 354 354 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 24,924 2,982 0 2,982 2,982 0 0% 27,905 27,905 0 0% CHIEF EXECUTIVES City Deal Projects Glasgow Airport Investment Area 40,849 2,215 0 2,215 2,215 0 0% 43,064 43,064 0 0% Clyde Waterfront & Renfrew Riverside 98,513 19,261 0 19,261 19,261 0 0% 117,824 117,824 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 3,808 126 0 126 126 0 0% 3,933 3,933 0 0% AMIDS: District Heating Network 6,783 311 0 311 311 0 0% 7,093 7,093 0 0% AMIDS: South 5,432 4,162 (1,749) 2,413 2,413 0 0% 43,098 43,098 0 0% Total Chief Executives 158,319 29,466 (1,749) 27,717 27,717 0 0% 360,395 360,395 0 0% TOTAL LEADERSHIP BOARD 183,243 32,448 (1,749) 30,699 30,699 0 0% 388,300 388,300 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 13th September 2024 POLICY BOARD: LEADERSHIP Current Year 2024-25 Full Programme - All years