Revenue and Capital Budget Monitoring as at 16 September 2022 - Report
Renfrewshire Council · 30 November 2022
Back to Leadership Board — 30 November 2022 and its agenda
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To: Leadership Board On: 30 November 2022 Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP Heading: Revenue and Capital Budget Monitoring as at 16 September 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 £0.693m. 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 (Adv)/Fav £000 Budget Variance % Adult Services 93,607 92,636 971 1.0% Chief Executives 20,349 20,627 (278) (1.4%) Total 113,956 113,263 693 0.6% Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Chief Executives 50,823 50,823 0 0% Leisure Services 2,386 2,386 0 0% Total 53,209 53,209 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 underspend of £0.693m (0.6% 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. In line with previous reporting periods, 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, however significant pressure from energy costs will potentially increase this figure. 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 6, the service estimates that costs of £2.9m 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 any further impact of COVID on internal and externally provided services.
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• The Scottish Government provided the HSCP with additional COVID-19 funding in the final quarter of 2021/22, a proportion of which will require to be returned to the Scottish Government over the course of 2022/23. 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 £0.970m 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 asked to note from Appendix 1 that minor budget adjustments have been processed since the previous report to board. 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 revised capital programme for the Chief Executive’s Service since the approved budget of £5.842m, in line with the previous board report. 5.3. Appendix 3 also indicates movement in the revised capital programme for Leisure Services, since the approved budget, of £1.632m, of which £0.020m has changed since the previous board report. This movement is explained further below. 5.4. Further detail, including reasons for significant variances, can be found at Appendix 3. 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 reported, it is anticipated that consequential cost pressures arising from COVID-19 will require to be addressed from COVID-specific reserve balances.
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6. Capital Budget Adjustments 6.1. Since the 2022/23 budget was approved in March, budget adjustments totalling £7.474m have arisen. Within Leisure Services, £0.020m of these adjustments have occurred since the previous board report as a result of: Budget carried forward into 2023/24 from 2022/23 (£0.027m) as result of updated cash flows: o Communities Hall Refurbishment: (£0.027m). Budget increases in 2022/23: £0.047m o Communities Hall Refurbishment (£0.047m) as a result of a budget transfer from the Lifecycle Capital Maintenance Fund for Bargarran Community Centre ___________________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for the revenue budget reported to the Leadership Board is an underspend of £0.693m. 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.
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6. Information Technology None directly arising from this report. 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: Revenue - Valerie Howie, Finance Business Partner Capital - Geoff Borland, Finance Manager
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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 Adult Services 93,607 0 93,607 92,636 971 1.0% 2,065 (1,094) Chief Executive's Service 20,327 22 20,349 20,627 (278) (1.4%) (276) (2) NET EXPENDITURE 113,934 22 113,956 113,263 693 0.6% 1,789 (1,096) 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 41,256 809 42,065 43,009 (944) (2.2%) (9,048) 8,104 Premises Related 736 79 815 868 (53) (6.5%) (112) 59 Transport Related 841 (5) 836 465 371 44.4% 383 (12) Supplies and Services 15,215 218 15,433 15,719 (286) (1.9%) (219) (67) Third Party Payments 75,551 756 76,307 77,389 (1,082) (1.4%) 472 (1,554) Transfer Payments 8,477 (133) 8,344 7,088 1,256 15.1% 90 1,166 Support Services 74 2 76 73 3 3.9% 3 0 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 142,150 1,726 143,876 144,611 (735) (0.5%) (8,431) 7,696 Income (28,216) (1,704) (29,920) (31,348) 1,428 4.8% 10,220 (8,792) NET EXPENDITURE 113,934 22 113,956 113,263 693 0.6% 1,789 (1,096) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 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 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 60,831 (268) 60,563 61,084 (521) (0.9%) 1,292 (1,813) Physical or Sensory Difficulties 6,727 773 7,500 7,413 87 1.2% 202 (115) Learning Difficulties 22,673 (1,704) 20,969 19,820 1,149 5.5% 290 859 Mental Health Needs 2,726 1,099 3,825 3,570 255 6.7% 246 9 Addiction Services 650 100 750 749 1 0.1% 35 (34) NET EXPENDITURE 93,607 0 93,607 92,636 971 1.0% 2,065 (1,094) Objective Heading Older People Physical or Sensory Difficulties Learning Difficulties Mental Health Needs Addiction Services RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 Budget Variance (Adverse) or Favourable Key Reasons for Projected Variance 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. Overspends within third party payments due to demand and delayed discharges. Underspends in employee costs reflecting national recruitment issues facing all Health & Social Care.
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Appendix 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 36,239 748 36,987 38,003 (1,016) (2.7%) 1,231 (2,247) Premises Related 364 78 442 493 (51) (11.5%) (109) 58 Transport Related 840 (5) 835 464 371 44.4% 382 (11) Supplies and Services 1,965 166 2,131 2,058 73 3.4% 129 (56) Third Party Payments 75,425 756 76,181 77,263 (1,082) (1.4%) 472 (1,554) Transfer Payments 6,183 (71) 6,112 4,854 1,258 20.6% 93 1,165 Support Services 70 2 72 69 3 4.2% 3 0 Depreciation and Impairment Losses 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 121,086 1,674 122,760 123,204 (444) (0.4%) 2,201 (2,645) Income (27,479) (1,674) (29,153) (30,568) 1,415 4.9% (136) 1,551 NET EXPENDITURE 93,607 0 93,607 92,636 971 1.0% 2,065 (1,094) Budget Variance (Adverse) or Favourable 1 April 2022 to 16 September 2022 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 POLICY BOARD : LEADERSHIP BOARD - ADULT SERVICES
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Appendix 2 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 266 2 268 267 1 0.3% 2 (1) Policy and Commissioning 4,563 13 4,576 4,534 42 0.9% 32 10 Marketing and Communications 3,764 7 3,771 3,750 21 0.6% 31 (10) City Deal & Infrastructure 0 0 0 0 0 0.0% 0 0 Leisure Services (incl Renfrewshire Leisure) 11,734 0 11,734 12,076 (342) (2.9%) (341) (1) NET EXPENDITURE 20,327 22 20,349 20,627 (278) (1.4%) (276) (2) Objective Heading Chief Executive and Management Policy and Commissioning Marketing and Communications City Deal & Infrastructure Leisure Services (incl Renfrewshire Leisure) REVENUE BUDGET MONITORING STATEMENT 2022/23 Budget Variance (Adverse) or Favourable 1 April 2022 to 16 September 2022 RENFREWSHIRE COUNCIL POLICY BOARD : LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE No significant projected year end variances to report. The adverse variance reflects the projected costs of supporting Renfrewshire Leisure with a revised level of requisition as a result of the continued impact on service delivery of the recovery from the Covid pandemic. No significant projected year end variances to report. No significant projected year end variances to report. Key Reasons for Projected Variance No significant projected year end variances to report.
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Appendix 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 5,017 61 5,078 5,006 72 1.4% 65 7 Premises Related 372 1 373 375 (2) (0.5%) (3) 1 Transport Related 1 0 1 1 0 0.0% 1 (1) Supplies and Services 13,250 52 13,302 13,661 (359) (2.7%) (349) (10) Third Party Payments 126 0 126 126 0 0.0% 0 0 Transfer Payments 2,294 (62) 2,232 2,234 (2) (0.1%) (3) 1 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 21,064 52 21,116 21,407 (291) (1.4%) (289) -2 Income (737) (30) (767) (780) 13 1.7% 13 0 NET EXPENDITURE 20,327 22 20,349 20,627 (278) (1.4%) (276) (2) Budget Variance (Adverse) or Favourable 1 April 2022 to 16 September 2022 POLICY BOARD : LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23
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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 1,710 754 942 1,696 1,696 0 0% 3,433 3,433 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 1,632 2,386 2,386 0 0% 61,274 61,274 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 7,474 53,209 53,209 0 0% 422,920 422,920 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 16th September 2022 POLICY BOARD: LEADERSHIP Current Year 2022-23 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable