Revenue and Capital Budget Monitoring Report as at 24 June 2022
Renfrewshire Council · 14 September 2022
Back to Leadership Board — 14 September 2022 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: 14 September 2022 Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP Heading: Revenue and Capital Budget Monitoring as at 24 June 2022 1. Summary of Financial Position 1.1. The projected revenue outturn at 31 March 2023 for those services reporting to the Leadership Board is an underspend position of £1.789m. 1.2. The projected capital outturn at 31 March 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 £000 Budget Variance % Adult Services 93,607 91,542 2,065 2.2% Chief Executives 20,327 20,603 (276) (1.4%) Total 113,934 112,145 1,789 1.6% Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Chief Executives 50,823 50,823 0 0% Leisure Services 2,366 2,366 0 0% Total 53,189 53,189 0 0%
Page 2
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 underspend of £1.789m (1.6% of total budget) for all services reporting to this Board. Detailed division reports can be found in Appendix 2, along with an explanation of each 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). 3.4. The most significant areas to bring to member’s attention relate to the projected impact of the COVID-19 on both OneRen and Renfrewshire HSCP: OneRen is likely to continue to experience increased cost and reduced revenue generation in the short to medium term as a result of both temporary and more permanent behavioural changes as the recovery from COVID progresses. It is projected that the Council may require to provide OneRen with up to an additional £0.350 million of financial support over 2022/23. The Board and management team of OneRen will continue to put measures in place to mitigate the level of financial support required. Within Adult Services, managed by Renfrewshire HSCP, the service continues to take significant action in response to the pandemic, including providing substantial levels of support to external care providers in order to ensure their ongoing financial sustainability. At Period 3, the service estimates that costs of £9.9m will be incurred specifically in relation to COVID-19 Adult Social Care services by the end of the financial year; this includes costs related to financial sustainability payments to private adult and elderly care providers. The projected costs are however based on the current position and may change depending on the impact of COVID on both internal and externally provided services.
Page 3
The Scottish Government provided the HSCP with additional COVID-19 funding in the final quarter of 2021/22. This funding has been held as an earmarked reserve and will be utilised to fund COVID-19 costs incurred this financial year. In this context, additional costs specifically relating to the COVID-19 response are not therefore included within this report. Outwith COVID-19 specific costs, the service is current forecasting a £2.1m underspend on core service provision reflecting the significant an ongoing recruitment issues within the health and social care sector. 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that budget adjustments totalling £0.847m have been processed since the 2022/23 budget was approved in March. These relate to: Chief Executives o +£0.646m Future Paisley budget transferred from Miscellaneous services; o +£0.033m service realignment of budget for Corporate Procurement o +£0.200m drawn down from COVID-specific general reserves to replenish the Cultural Heritage & Events Fund (CHEF) Adult Services o -£0.022m transferred from Adult Services to Housing for Women’s Aid Uplift 4.16% for Living Wage. o -£0.010 transferred from Adult Services for 3.5% increase in Care and Repair Budget in Housing. 5. Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3 March 2022. 5.2. The Capital Monitoring report at Appendix 3 indicates movement in the approved capital programme for the Chief Executive’s Service for the year of £5.842m which is explained further below. 5.3. The Capital Monitoring report at Appendix 3 indicates movement in the approved capital programme for Leisure Services for the year of £1.612m. 5.4. Further detail, including reasons for significant variances, can be found at Appendix 3.
Page 4
5.5. It is anticipated that due to both the impact of COVID-19 on the construction industry through constrained supply chain capacity for all major building materials, coupled with heightened demand across the globe as economies emerge from pandemic lockdowns, there will be increasing financial pressures and potential time impacts in several of the Council’s capital building projects. In this context and as previously planned, it is anticipated that consequential cost pressures arising from COVID-19 will require to be addressed from COVID-specific reserve balances. Future reports will provide further detail as this issue develops more substantially over the coming weeks and months and such issues are progressed with individual contractors. 6. Capital Budget Adjustments 6.1. Since the 2022/23 budget was approved in March, budget adjustments totalling £7.454m have arisen as a result of the following: Net budget brought forward into 2021/22 from 2022/23 (£3.555m) as result of updated cash flows: Chief Executives o City Deal: Clyde Waterfront & Renfrew Riverside (£3.555m). Net budget carried forward into 2022/23 from 2021/22 (£5.903m) as result of updated cash flows: Chief Executives o City Deal: Glasgow Airport Investment Area (£1.934m); o GAIA Regeneration: (£1.891m); o AMIDS: Netherton Square (£0.012m); o AMIDS: District Heating Network (£1.204m). Leisure Services o Leisure Investment Programme (£0.321m); o Grass Pitches and Changing Facilities: (£0.369m); o Communities Hall Refurbishment (£0.172m). Budget brought forward from 2023/24 into 2022/23 for updated cash flows (£3.406m); Chief Executives AIMIDS South (£3.406m) to reflect expected timing of expenditure on White Cart Gateway. Budget increases in 2022/23 (£1.150m)
Page 5
Chief Executives o AMIDS: Netherton Square (£0.950m) as approved by Council on 30 June 2022. Leisure Services o Communities Hall Refurbishment (£0.200m) as approved by Council on 3 March 2022. Budget transfers in 2022/23 (£0.550m); Leisure Services o Community Hall Refurbishment (£0.550m) transfer from Strategic Asset Management Fund as approved by Council on 3 March 2022. ___________________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for the revenue budget reported to the Leadership Board is an underspend of £1.789m. 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. Any changes to current projections in either Revenue or Capital budgets will be reported to the board as early as possible, along with an explanation for the movement. 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.
Page 6
7. Equality and Human Rights The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report because for example it is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health and Safety None directly arising from this report. 9. Procurement None directly arising from 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. 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 The Capital Investment Programme 2022/23 to 2026/27 approved by the Council on 3 March 2022 __________________________________________________________________ Authors: Valerie Howie (Revenue) and Geoff Borland (Capital)
Page 7
Appendix 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Adult Services 93,639 (32) 93,607 91,542 91,542 2,065 2.2% Chief Executive's Service 19,448 879 20,327 20,603 20,603 (276) (1.4%) NET EXPENDITURE 113,087 847 113,934 112,145 112,145 1,789 1.6% Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 37,335 3,921 41,256 39,961 39,961 1,295 3.1% Premises Related 725 11 736 848 848 (112) (15.2%) Transport Related 841 0 841 458 458 383 45.5% Supplies and Services 14,979 236 15,215 15,434 15,434 (219) (1.4%) Third Party Payments 64,976 10,575 75,551 75,079 75,079 472 0.6% Transfer Payments 23,232 (14,755) 8,477 8,387 8,387 90 1.1% Support Services 74 0 74 71 71 3 4.1% Depreciation and Impairment Losses 0 0 0 0 0 0 0.0% GROSS EXPENDITURE 142,162 (12) 142,150 140,238 140,238 1,912 1.3% Income (29,075) 859 (28,216) (28,093) (28,093) (123) (0.4%) NET EXPENDITURE 113,087 847 113,934 112,145 112,145 1,789 1.6% RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable POLICY BOARD : LEADERSHIP BOARD
Page 8
No embedded text on this page.
Page 9
Appendix 2 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Older People 66,521 (5,690) 60,831 59,539 59,539 1,292 2.1% Physical or Sensory Difficulties 6,482 245 6,727 6,525 6,525 202 3.0% Learning Difficulties 17,062 5,611 22,673 22,383 22,383 290 1.3% Mental Health Needs 2,938 (212) 2,726 2,480 2,480 246 9.0% Addiction Services 636 14 650 615 615 35 5.4% NET EXPENDITURE 93,639 (32) 93,607 91,542 91,542 2,065 2.2% Objective Heading Older People Physical or Sensory Difficulties Learning Difficulties Mental Health Needs Addiction Services Key Reasons for Projected Variance RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 Budget Variance (Adverse) or Favourable POLICY BOARD : LEADERSHIP BOARD ‐ ADULT SERVICES Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care. Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care. Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care. Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care. Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care.
Page 10
Appendix 2 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 32,517 3,722 36,239 35,009 35,009 1,230 3.4% Premises Related 353 11 364 473 473 (109) (29.9%) Transport Related 840 0 840 458 458 382 45.5% Supplies and Services 1,730 235 1,965 1,835 1,835 130 6.6% Third Party Payments 64,850 10,575 75,425 74,953 74,953 472 0.6% Transfer Payments 21,783 (15,600) 6,183 6,090 6,090 93 1.5% Support Services 70 0 70 67 67 3 4.3% Depreciation and Impairment Losses 0 0 0 0 0 0 0.0% GROSS EXPENDITURE 122,143 (1,057) 121,086 118,885 118,885 2,201 1.8% Income (28,504) 1,025 (27,479) (27,343) (27,343) (136) (0.5%) NET EXPENDITURE 93,639 (32) 93,607 91,542 91,542 2,065 2.2% Budget Variance (Adverse) or Favourable 1 April 2022 to 24 June 2022 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 POLICY BOARD : LEADERSHIP BOARD ‐ ADULT SERVICES
Page 11
Appendix 2 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Chief Executive and Management 266 0 266 264 264 2 0.8% Policy and Commissioning 4,530 33 4,563 4,531 4,531 32 0.7% Marketing and Communications 2,918 846 3,764 3,733 3,733 31 0.8% City Deal & Infrastructure 0 0 0 0 0 0.0% Leisure Services (incl Renfrewshire Leisure) 11,734 0 11,734 12,075 12,075 (341) (2.9%) NET EXPENDITURE 19,448 879 20,327 20,603 20,603 (276) (1.4%) Objective Heading 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) REVENUE BUDGET MONITORING STATEMENT 2022/23 Budget Variance (Adverse) or Favourable 1 April 2022 to 24 June 2022 RENFREWSHIRE COUNCIL POLICY BOARD : LEADERSHIP BOARD ‐ CHIEF EXECUTIVE'S SERVICE Key Reasons for Projected Variance The adverse variance reflects the projected costs of supporting OneRen with a revised level of requisition as a result of the continued impact on service delivery of the recovery from the Covid pandemic.
Page 12
Appendix 2 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 4,818 199 5,017 4,952 4,952 65 1.3% Premises Related 372 0 372 375 375 (3) (0.8%) Transport Related 1 0 1 0 0 1 100.0% Supplies and Services 13,249 1 13,250 13,599 13,599 (349) (2.6%) Third Party Payments 126 0 126 126 126 0 0.0% Transfer Payments 1,449 845 2,294 2,297 2,297 (3) (0.1%) Support Services 4 0 4 4 4 0 0.0% Depreciation and Impairment Losses 0 0 0 0 0 0 0.0% GROSS EXPENDITURE 20,019 1,045 21,064 21,353 21,353 (289) (1.4%) Income (571) (166) (737) (750) (750) 13 1.8% NET EXPENDITURE 19,448 879 20,327 20,603 20,603 (276) (1.4%) Budget Variance (Adverse) or Favourable 1 April 2022 to 24 June 2022 POLICY BOARD : LEADERSHIP BOARD ‐ CHIEF EXECUTIVE'S SERVICE RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23
Page 13
Appendix 3 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2022* 2022‐23 in 2022‐23 2022‐23 2022‐23 Budget Outurn Project Title to 31‐Mar‐27 to 31‐Mar‐27 £000 £000 £000 £000 £000 £000 £000 LEISURE SERVICES Leisure Investment Programme 52,279 0 321 321 321 0 0% 52,600 52,600 0 0% Grass Pitches & Changing Facilities 3,872 0 369 369 369 0 0% 4,241 4,241 0 0% Community Halls Refurbishment 1,710 754 922 1,676 1,676 0 0% 3,386 3,386 0 0% Lagoon Internal Play Centre 0 0 0 0 0 0 0% 1,000 1,000 0 0% Total Leisure Services 57,861 754 1,612 2,366 2,366 0 0% 61,227 61,227 0 0% CHIEF EXECUTIVES City Deal Projects Glasgow Airport Investment Area 38,662 2,314 1,934 4,248 4,248 0 0% 43,053 43,053 0 0% Clyde Waterfront & Renfrew Riverside 21,821 37,714 ‐3,555 34,159 34,159 0 0% 117,748 117,748 0 0% Airport Access 2,934 0 0 0 0 0 0% 141,991 141,991 0 0% Economic Development GAIA Regeneration 2,109 0 1,891 1,891 1,891 0 0% 5,500 5,500 0 0% AMIDS: Public Realm Phase 1 Netheron Square 246 2,726 962 3,688 3,688 0 0% 3,933 3,933 0 0% AMIDS: District Heating Network 3,882 2,007 1,204 3,211 3,211 0 0% 7,093 7,093 0 0% AMIDS: South 415 220 3,406 3,626 3,626 0 0% 42,328 42,328 0 0% Total Chief Executives 70,069 44,981 5,842 50,823 50,823 0 0% 361,646 361,646 0 0% TOTAL LEADERSHIP BOARD 127,930 45,735 7,454 53,189 53,189 0 0% 422,873 422,873 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 24th June 2022 POLICY BOARD: LEADERSHIP Current Year 2022‐23 Full Programme ‐ All years