2024-25 P03 PACC PB Budget Monitoring Report
Renfrewshire Council · 27 August 2024
Back to Planning and Climate Change Policy Board — 27 August 2024 and its agenda
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___________________________________________________________________ To: Planning and Climate Change Policy Board On: 27 August 2024 ___________________________________________________________________ Report by: Chief Executive and Director of Finance and Resources ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring 2024/25 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 Planning and Climate Change Policy Board was an overspend position of £0.039m (6.7%) against the revised budget for the year. 1.2 There are no capital projects reporting to the Planning and Climate Change Policy Board. 1.3 This is summarised in the table below and further analysis is provided in the report and appendices. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Planning Services 584 623 (39) (6.7%) 2. Recommendations 2.1 Members are requested to: a) Note the projected Revenue outturn overspend position of £0.039m; and b) Note the budget adjustments detailed at section 6.
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3. Revenue Budget Projection – overspend of £0.039m 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 Development Management - £0.095m underspend This forecast position mainly reflects an anticipated over-recovery of income and the impact of vacancies within the team at the start of the financial year. Building Standards - £0.134m overspend This forecast position mainly reflects an anticipated under-recovery of income. The position will be closely monitored, taking into account the potential impact of the increase in Building Standards fees from 1 April 2024, with mitigating action being taken by management as required across the wider Economy and Development service. 5. Subjective Analysis – Significant Variances 5.1 Employees - £0.031m underspend by 31 March 2025 This projected underspend represents vacancies in the Development Management team at the start of the financial year. Recruitment to these posts is expected to complete over course of the next quarter. 5.2 Income - £0.070m overspend (under-recovery) by 31 March 2025 This projected under-recovery of income reflects the net impact of a projected under-recovery in Building Standards income of £0.138m (13.7%) and a £0.068m over-recovery in Planning income (10.9%). Due to the very demand-led nature of the income stream, which is impacted by the current economic and financial climate, the level of Planning and Building Standards income can vary over the course of the financial year, which can make it challenging to determine trends for income projection. The projections at the end of the first quarter reflect a reasonable forecast at this stage in the financial year.
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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’. 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/Chief Executive and the Director of Finance and Resources for submission to the relevant policy board for approval. Future reports may therefore ask the board to approve budget adjustments that are deemed necessary for good budget management. The following budget adjustment reflects changes to superannuation rates for employers and is therefore for noting only: Revenue Budget Adjustments Service Amount (£m) Reason Planning Services (0.174) Contribution to reserves re reduction in employers’ superannuation Implications of the Report 1. Financial The projected budget outturn position for the Planning and Climate Change Revenue budget is an overspend of £0.039m (6.7%) 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 to mitigate any overspend. 2. HR & Organisational Development While staffing budgets form a significant proportion of the Council’s revenue budgets, there are no direct implications arising from the recommendations in this report.
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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 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 There are no direct implications arising from the recommendations in this report. 6. Information Technology There are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights There are no direct implications arising from the recommendations in this report. 8. Health & Safety There are no direct implications arising from the recommendations in the report.
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9. Procurement While Procurement is an important 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 financial risk that the Council will overspend its approved revenue budgets for the year is 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 N/a 13. 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. 14. Children’s Rights 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 Author: Valerie Howie, Finance Business Partner
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 21 June 2024 POLICY BOARD: PLANNING SERVICES 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 % Planning Strategy & Place 597 (36) 561 561 0 0.0% Development Management 282 (69) 213 118 95 44.6% Building Standards (128) (62) (190) (56) (134) (70.5%) NET EXPENDITURE 751 (167) 584 623 (39) (6.7%) 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 1,765 (167) 1,598 1,567 31 1.9% Premises Related 1 0 1 1 0 0.0% Transport Related 15 0 15 15 0 0.0% Supplies and Services 180 0 180 180 0 0.0% Third Party Payments 0 0 0 0 0 0.0% Transfer Payments 103 0 103 103 0 0.0% Support Services 317 0 317 317 0 0.0% Depreciation and Impairment Losses 0 0 0 0 0 0.0% GROSS EXPENDITURE 2,381 (167) 2,214 2,183 31 1.4% Income (1,630) 0 (1,630) (1,560) (70) (4.3%) NET EXPENDITURE 751 (167) 584 623 (39) (6.7%)