Agenda Document Pack - Finance and Corporate Resources Committee - 30/10/2024
South Lanarkshire Council · 30 October 2024
Back to Finance and Corporate Resources Committee — 30 October 2024 and its agenda
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Council Offices, Almada Street Hamilton, ML3 0AA Tuesday, 22 October 2024 Dear Councillor Finance and Corporate Resources Committee The Members listed below are requested to attend a meeting of the above Committee to be held as follows:- Date: Wednesday, 30 October 2024 Time: 14:00 Venue: Hybrid - Committee Room 1, Council Offices, Almada Street, Hamilton, ML3 0AA The business to be considered at the meeting is listed overleaf. Yours sincerely Paul Manning Chief Executive Members Lesley McDonald (Chair), Walter Brogan (Depute Chair), Celine Handibode (Depute Chair), Joe Fagan (ex officio), Alex Allison, Mathew Buchanan, Andy Carmichael, Maureen Chalmers, Margaret Cooper, Andrea Cowan, Maureen Devlin, Mary Donnelly, Grant Ferguson, Gladys Ferguson-Miller, Graeme Horne, Martin Hose, Katy Loudon, Hugh Macdonald, Catherine McClymont, Elaine McDougall, Mark McGeever, Richard Nelson, Mo Razzaq, John Ross, Graham Scott, Kirsty Williams Substitutes John Bradley, Archie Buchanan, Colin Dewar, Ross Gowland, Gavin Keatt, Susan Kerr, Ross Lambie, Martin Lennon, Richard Lockhart, Carol Nugent, Norman Rae, David Watson 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of the meeting of the Finance and Corporate Resources held on 21 August 2024 submitted for approval as a correct record. (Copy attached) 5 - 14 Monitoring Item(s) 3 Revenue Budget Monitoring 2024/2025 - Finance and Corporate Resources Report dated 2 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 15 - 26 4 Capital Budget Monitoring 2024/2025 - Finance and Corporate Resources Report dated 2 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 27 - 30 5 Finance and Corporate Resources – Workforce Monitoring – July to September 2024 Report dated 10 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 31 - 38 6 Council-wide Workforce Monitoring – July to September 2024 Report dated 10 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 39 - 60 7 Treasury Management Activity – 2024/2025 Second Quarter Review Report dated 3 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 61 - 68 Item(s) for Decision 8 Prudential Indicators Treasury Management Activity and Annual Investment Report 2023/2024 Report dated 8 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 69 - 88 9 Scottish Public Pensions Agency Consultation on the Scottish Teachers Pension Scheme Report dated 10 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 89 - 98 10 Revenue Collection and Approval for Write Offs Report dated 30 September 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 99 - 104 Item(s) for Noting 11 Reserves Strategy Report dated 2 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 105 - 112 2
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12 Annual Procurement Report – 2023/2024 Report dated 9 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 113 - 170 13 Update of the Finance and Corporate Resources Risk Register and Risk Control Plan Report dated 8 October 2024 by the Executive Director (Finance and Corporate Resources). (Copy attached) 171 - 188 Urgent Business 14 Urgent Business Any other items of business which the Chair decides are urgent. For further information, please contact:- Clerk Name: Carol Lyon Clerk Telephone: 07385370065 Clerk Email: carol.lyon@southlanarkshire.gov.uk 3
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FINANCE AND CORPORATE RESOURCES COMMITTEE Minutes of meeting held via Confero and in Committee Room 1, Council Offices, Almada Street, Hamilton on 21 August 2024 Chair: Councillor Lesley McDonald Councillors Present: Councillor Alex Allison, Councillor Walter Brogan (Depute), Councillor Mathew Buchanan, Councillor Andy Carmichael, Councillor Maureen Chalmers, Councillor Margaret Cooper, Councillor Andrea Cowan, Councillor Maureen Devlin, Councillor Mary Donnelly, Councillor Grant Ferguson, Councillor Gladys Ferguson-Miller, Councillor Ross Gowland (substitute for Councillor Mo Razzaq), Councillor Celine Handibode (Depute), Councillor Graeme Horne, Councillor Martin Hose, Councillor Katy Loudon, Councillor Hugh Macdonald, Councillor Catherine McClymont, Councillor Elaine McDougall, Councillor Richard Nelson, Councillor John Ross, Councillor Graham Scott, Councillor Kirsty Williams Councillors' Apologies: Councillor Joe Fagan (ex officio), Councillor Mark McGeever, Councillor Mo Razzaq Finance and Corporate Resources J Taylor, Executive Director; C Fergusson, Head of Finance (Transactions); M Husband, Head of IT Services; S Jessup, Administration Assistant; T Little, Head of Communications and Strategy; C Lyon, Administration Officer; E Maxwell, HR Business Manager; L O’Hagan, Head of Finance (Strategy); I Strachan, Head of Administration and Legal Services 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Finance and Corporate Resources Committee held on 22 May 2024 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 3 Minutes of the Appeals Panel The minutes of the meeting of the Appeals Panel held on 30 May 2024 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 4 Minutes of Recruitment Committee The minutes of the meetings of the Recruitment Committee held on 4 and 21 June 2024 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 2 5
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5 Revenue Budget Monitoring 2023/2024 – Finance and Corporate Resources A report dated 9 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted comparing the actual expenditure for the period 1 April 2023 to 31 March 2024 against budgeted expenditure for 2023/2024 for Finance and Corporate Resources. As at 31 March 2024, there was an overspend of £0.165 million, as detailed in Appendix A to the report. This was a favourable movement of £0.051 million from the probable outturn position reported in May which was an overspend of £0.216 million. Virements were proposed to realign budgets and those movements were detailed in the appendices to the report The Committee decided: (1) that the final outturn position as at 31 March 2024 of an overspend of £0.165 million, as detailed in Appendix A of the report, be noted; and (2) that the proposed budget virements, as detailed in the appendices to the report, be approved. [Reference: Minutes of 22 May 2024 (Paragraph 5)] 6 Revenue Budget Monitoring 2024/2025 - Finance and Corporate Resources A report dated 29 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted comparing the actual expenditure for the period 1 April to 14 June 2024 and providing a forecast for the year to 31 March 2025 for Finance and Corporate Resources. A Service Analysis Statement, which outlined key highlights by Service for the Resource, was provided at Appendix A to the report. The detailed financial position, with variance explanations by budget category, was provided at Appendix B to the report. As at 14 June 2024, the projected outturn position for the Resource was a breakeven position. Virements were proposed to realign budgets and those movements were detailed in the appendices to the report. Officers responded to a member’s question on the report. The Committee decided: (1) that the forecast to 31 March 2025 of a breakeven position, as detailed in Appendix B of the report, be noted; and (2) that the proposed budget virements, as detailed in the appendices to the report, be approved. 7 Capital Budget Monitoring 2023/2024 - Finance and Corporate Resources A report dated 31 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted advising of progress on Finance and Corporate Resources’ capital programme for 2023/2024 and summarising the expenditure at 31 March 2024. 6
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The budget for 2023/2024 was £5.333 million. Total expenditure to 31 March 2024 was £4.649 million. The final outturn position of £4.649 million was an underspend of £0.684 million in comparison to the programme of £5.333 million. The underspend reflected the level of capital spend achieved on IT Infrastructure and was mainly due to in-house staff costs for the Oracle Fusion Project being managed through the Finance and Corporate Resources’ revenue budget rather than through capital programme. Funding for those projects would continue into the next financial year, including the approved budget to facilitate the completion of the Oracle Fusion project. The Committee decided: that the Finance and Corporate Resources’ capital programme of £5.333 million, and expenditure for the year of £4.649 million, be noted. [Reference: Minutes of 22 May 2024 (Paragraph 6) and Minutes of the Executive Committee of 26 June 2024 (Paragraph 5)] 8 Capital Budget Monitoring 2024/2025 - Finance and Corporate Resources A report dated 31 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted advising of progress on Finance and Corporate Resources’ capital programme for 2024/2025 and summarising the expenditure position at 14 June 2024. The revised capital programme for 2024/2025 was £3.086 million, as approved by the Executive Committee on 7 August 2024. The forecast for the financial year was £3.086 million and spend to date was £0.815 million. The Committee decided: that the Finance and Corporate Resources’ capital programme of £3.086 million, and expenditure to date of £0.815 million, be noted. [Reference: Minutes of South Lanarkshire Council of 21 February 2024 (Paragraph 4) and Minutes of the Executive Committee of 7 August 2024 (Paragraph 4)] 9 Finance and Corporate Resources - Workforce Monitoring – April to June 2024 A report dated 24 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted on the following employee information for Finance and Corporate Resources for the period April to June 2024:- attendance statistics occupational health statistics accident/incident statistics disciplinary hearings, grievances and Dignity at Work cases analysis of leavers and exit interviews staffing watch as at 11 June 2024 The Committee decided: that the report be noted [Reference: Minutes of 22 May 2024 (Paragraph 7)] 7
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10 Council-wide Workforce Monitoring – April to June 2024 A report dated 11 April 2024 by the Executive Director (Finance and Corporate Resources) was submitted on the following Council-wide employee information for the period April to June 2024:- attendance statistics occupational health statistics accident/incident statistics disciplinary hearings, grievances and Dignity at Work cases analysis of leavers and exit interviews recruitment monitoring staffing watch as at 11 June 2024 Officers responded to members’ questions on various aspects of the report. The Committee decided: that the report be noted. [Reference: Minutes of 22 May 2024 (Paragraph 8)] Councillor Horne joined the meeting during consideration of the above item of business 11 Treasury Management Activity - 2024/2025 First Quarter Review A report dated 1 August 2024 by the Executive Director (Finance and Corporate Resources) was submitted on the first quarter review of Treasury Management activity for 2024/2025. Details were given on:- market performance management of risk debt management and borrowing strategy next quarter investment plans investment activity treasury management indicators The Committee decided: that the report be noted. [Reference: Minutes of South Lanarkshire Council of 21 February 2024 (Paragraph 5)] 12 Finance and Corporate Resource Plan – Quarter 4 Progress Report 2023/2024 A report dated 8 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted on the Finance and Corporate Resource Plan Quarter 4 Progress Report for 2023/2024 for the period 1 April 2023 to 31 March 2024. The Resource Plan measures were rated using a traffic light system of red, amber or green as well as blue (BRAG) which indicated that an action had been completed. Details were provided on:- progress made in implementing the priority projects identified in the Resource Plan 2023/2024, as detailed in the Quarter 4 Progress Report, attached as Appendix 2 to the report key achievements made by the Resource to date, as detailed in Section 5.3 of the report measures which had changed from Quarter 2 to Quarter 4, as detailed in Appendix 3 to the report Officers responded to a member’s question on the report. 8
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The Committee decided: (1) that the Finance and Corporate Resource Plan Quarter 4 Progress Report 2023/2024, as summarised in paragraph 5.2. and attached as Appendix 2 of the report, be noted; (2) that the key achievements made by the Resource for the year, as detailed in paragraph 5.3. of the report, be noted; (3) that it be noted that there were no areas for improvement, as detailed in paragraph 5.4. of the report; and (4) that the additional scrutiny of changes in measure status between Quarter 2 and Quarter 4, as summarised at paragraph 5.5. and detailed at Appendix 3 of the report, be noted. [Reference: Minutes of 27 September 2023 (Paragraph 13)] Councillor McClymont left the meeting during consideration of the above item of business 13 Revenue Collection and Approval for Write-Offs A report dated 1 August 2024 by the Executive Director (Finance and Corporate Resources) was submitted on:- collection performance for the financial year 2024/2025 to 30 June 2024 on revenue income which comprised Council Tax, non-domestic rates, sundry debts and arrears performance in the Business Rates Incentivisation Scheme (BRIS) the write-off of irrecoverable Council Tax, non-domestic rates, Business Improvement District (BID) levy, sundry debt and Housing Rent and associated charges Details were provided on current collection targets. The Council was ahead of both target and comparable performance from 2023/2024 in respect of Council Tax. In respect of Sundry Debt, the Council was equal to target from 2023/2024. In respect of non-domestic rates, the Council was ahead of target and behind to comparable performance from 2023/2024. In terms of arrears collection targets, the Council was ahead of both target and comparable performance from 2023/2024 in respect of Council Tax. In relation to sundry debt, the Council was behind target and also comparable performance for 2023/2024. In respect of non-domestic rates, the Council was ahead of target but behind comparable performance for 2023/2024. The Non Domestic Rates Incentivisation Scheme (NDRIS), formerly known as the Business Rates Incentivisation Scheme (BRIS), was a Scottish Government initiative to incentivise growth of the local business tax base, with a view to increasing NDR income yields. The Scottish Government set annual targets for growth (buoyancy) and Councils which achieved their target retained 50% of the additional income generated above the target. The provisional annual buoyancy target for South Lanarkshire Council in 2024/2025 had been set by the Scottish Government at 0.9%. Performance against the NDRIS target would be reported to Committee on a quarterly basis. Buoyancy for the first quarter, to the end of June 2024, was 0.42%. The tax base required to achieve growth of more than 0.48% during the remaining 3 quarters of the financial year to secure additional income under the scheme. 9
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It was proposed that the following debts be written off:- irrecoverable Council Tax accounts from 1993/1994 to 2024/2025 to the value of £1,756,955.85 relating primarily to prescribed debt, sequestrations and estates of the deceased irrecoverable non-domestic rates from 2022/2023 to 2024/2025 to the value of £217,621.86 relating primarily to debtors in liquidation, those who had ceased trading or had been sequestrated BID levies totalling £979.56 administered by the Council on behalf of Hamilton, Carluke and Lanark BID companies sundry debts to a value of £168,847.89 former tenant rent arrears totalling £1,455,866.27 (including bulk write-off for 2020/2021 and 2021/2022 for temporary accommodation), factoring arrears of £681.89 and housing benefit overpayments of £9,620.25 The Committee decided: (1) that the Council’s performance in the collection of revenues be noted; (2) that the current position in respect of the Business Rates Incentivisation Scheme be noted; and (3) that the write-off of the following irrecoverable debts be approved:- Council Tax debt from 1993/1994 to 2023/2024 to the value of £1,756,955.85 Non Domestic Rates from 2022/2023 to 2023/2024 totalling £217,621.86 BID levies totalling £979.56 sundry debts to a value of £168,847.89 house rent and associated charges totalling £1,466,168.41 [Reference: Minutes of 22 May 2024 (Paragraph 9)] Councillor Nelson left the meeting during consideration of the above item of business 14 Money Matters Advice Service – Annual Report 2023/2024 A report dated 29 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted on the Money Matters Advice Service Annual Report for 2023/2024. The Money Matters Advice Service (MMAS) was currently being assessed for accreditation under the Scottish National Standards for Advice and Information Providers (SNAIP), by the Scottish Legal Aid Board (SLAB). The SNAIP was a quality assurance scheme run by the Scottish Government and administered by the SLAB for advice agencies that provided money, housing, and welfare rights advice. There were 2 key elements of the assessment process:- review of casework to determine if the quality of advice was of an appropriate standard review of policies and practices to ensure the service was being appropriately managed. Accreditation provided assurance to clients and other stakeholders on the quality of the service and advice provided. 10
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Standard 2.5 of SNAIP required all services to regularly review their work against the aims and objectives for their service and make the results of those reviews available in a publicly accessible format at least once a year. An annual report was considered the most appropriate format to do this. The Annual Report consisted of 11 chapters and provided an overview of the role that MMAS performed for the Council and the residents of South Lanarkshire. It also provided a summary of key statistics showing the demand on MMAS in the financial year 2023/2024 and the performance of the service by functional team, along with key statistics from the client satisfaction surveys that were carried out monthly. The Annual Report also included key demographic information about the clients that used the service and also provided an analysis of who accessed the service using data zones from the Scottish Index of Multiple Deprivation and by Electoral Ward. It also contained several case studies that illustrated the work of the various teams with the Service. The key highlights of the Annual Report were detailed in Section 5 of the report, with the Annual Report 2023/2024 attached at Appendix 1 to the report. Officers responded to a member’s question on the report. The Committee decided: [ (1) that the Money Matters Advice Service Annual Report be noted; and (2) that the Annual Report 2023/2024 be published on the Council’s website. 15 Common Good Update Report A report dated 24 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted on:- the Common Good Accounts for the year ended 31 March 2024 the cyclical spend committed against the Common Good repairs and maintenance budgets for Lanark and Hamilton requests for funding from Lanark Common Good that could not be met from the repairs and maintenance budgets the outcome of a review of the titles to Biggar Public Park and Golf Course undertaken in respect of Common Good land The Common Good funds held within South Lanarkshire Council were Lanark, Biggar, Hamilton and Rutherglen. Accounts were prepared on an annual basis, as part of the Council’s year end process. The position for the year was detailed in Section 4 of the report and the unaudited accounts attached at Appendix 1 to the report. The Common Good accounts in Lanark and Hamilton held a number of properties. On 2 October 2013, this Committee had approved an annual cyclical maintenance plan of £15,000 for both Lanark and Hamilton Common good properties. If inspections highlighted requirements to undertake investment which would be beyond routine maintenance, this would be considered separately for approval and would be the subject of a report to this Committee. Cyclical spend committed against the Common Good repairs and maintenance budgets for Lanark and Hamilton was detailed in Sections 5 and 6 of the report. 11
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A number of requests for funding had been received for Lanark Common Good that were either not for repairs and maintenance or which could not be approved under delegated authority due to the expected costs, and those were detailed in Section 7 to the report. A report had been presented to the Community and Enterprise Resources Committee on 18 June 2024 providing an update on work undertaken to secure arrangements for the long-term financial stability of Biggar Park and Golf Course. The report noted that a review of the titles was being undertaken in respect of Common Good land. The review had now concluded that the majority of the title to Biggar Public Park and Golf Course should now be treated as “inalienable” Common Good. As detailed in Section 8 of the report, this meant that law relating to Common Good would apply to this area, including that if the Council was considering any proposed changes of use or disposals, it would need to undertake a community consultation as required under the relevant legislation. The Committee decided: cs] (1) that the accounts for Common Good for the year ended 31 March 2024 be noted; (2) that the cyclical spend committed against the Common Good repairs and maintenance budgets for Lanark and Hamilton be noted; (3) that projects that would require funding from Lanark Common Good that could not be met from the repairs and maintenance budgets be approved; and (4) that the outcome of a review of the titles to Biggar Public Park and Golf Course undertaken in respect of Common Good land be noted. [Reference: Minutes of 22 May 2024 (Paragraph 12) and Minutes of the Community and Enterprise Resources Committee of 18 June 2024 (Paragraph 14)] In terms of Standing Order No 14, the Chair adjourned the meeting after this item of business at 3.00pm and reconvened at 3.05pm. Councillor Ross was not present when the meeting reconvened 16 Framework for the Use and Management of Common Good Assets A report dated 24 July 2024 by the Executive Director (Finance and Corporate Resources) was submitted on a proposed framework for the use and management of Common Good Assets. The Common Good was a fund of money/assets and was administered by a Scottish local authority in respect of each former burgh within the area of the local authority. Common good property was administered separately from other local authority assets for accounting purposes. What the authority could do with assets was subject to a system of statutory control. This control had the potential to limit the extent to which the authority could dispose of or deal with the asset and on what terms. The Common Good funds held within South Lanarkshire Council were Lanark, Biggar, Hamilton and Rutherglen. The Inner House of the Court of Session ruled in a case against Angus Council, that assets which had been built by the General Fund of a local authority were part of the applicable Common Good Fund and had been since being built. 12
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In recognition of that decision, it was considered appropriate that a framework was established that provided clarity on the management arrangements between the General Fund and the Common Good Funds of the Council, particularly with respect to buildings. In establishing a framework, there were some key principles that should be considered, as detailed in Section 4 of the report. 3 scenarios of interaction between the General Fund and Common Good Funds in relation to the use of assets and buildings, in particular, were detailed in Section 5 of the report. A list of current Common Good Assets was detailed in Appendix 1 to the report. The proposed framework should not result in any significant change in the financial position of either the Common Good Fund or the General Fund. Officers responded to members’ questions on various aspects of the report. The Committee decided: that the framework for the use and management of assets, as detailed in the 3 Scenarios presented in Section 5 of the report, be approved. [Reference: Minutes of 22 May 2024 (Paragraph 12)] Councillor Cooper, having experienced IT issues, joined the meeting during consideration of the above item of business 17 Urgent Business There were no items of urgent business. 13
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Revenue Budget Monitoring 2024/2025 - Finance and Corporate Resources 1. Purpose of Report 1.1. The purpose of the report is to:- [p advise Committee of the forecast for the year to 31 March 2025 for Finance and Corporate Resources, and the actual spend position for the period 1 April 2024 to 9 August 2024 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the projected breakeven position on the 2024/2025 revenue budget for Finance and Corporate Resources, as detailed in Appendix B of the report, be noted; and (2) that the proposed budget virements be approved. 3. Background 3.1. This is the second revenue budget monitoring report presented to the Finance and Corporate Resources Committee for the financial year 2024/2025. 3.2. The report details the financial position for Finance and Corporate Resources. Appendix A provides the service analysis statement, outlining key highlights by Service for the Resource and Appendix B provides the detailed financial position with variance explanations by budget category. Any variance explanations and proposed budget virements are shown, where relevant, in Appendices C to I. 3.3. This report reflects the actual spend to 9 August 2024 within the Resource budget and the expected outturn forecast on expenditure and income at this date. 4. Employee Implications 4.1. None. 5. Financial Implications 5.1. Appendix A is the service analysis statement and will outline the key projected outturn variances by Service for the Resource. 5.2. As at 9 August 2024, the Resource’s projected outturn position for 2024/2025 is breakeven (Appendix B). 3 15
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5.3. Virements are proposed to realign budgets across budget categories and with other Resources. These movements have been detailed in Appendices C-I, where relevant. 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability, or the environment in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Council’s Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget management applied across the Resources. The risk is managed through four weekly Budget Monitoring Meetings at which any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function, or strategy and therefore no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Executive Director (Finance and Corporate Resources) 2 October 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References None List of Background Papers Financial ledger and budget monitoring results to 9 August 2024. Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Head of Finance (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 16
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Appendix A SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Revenue Budget Monitoring Report – Service Analysis Service Analysis Revised Annual Budget (£000) Projected Outturn (£000) Projected Outturn Variance (£000) % YTD Actual (£000) Strategy 1,851 1,767 84 4.54% 2,397 Transactions 16,775 16,804 (29) (0.17%) 5,041 Audit 318 303 15 4.72% 189 Information Technology 6,852 6,852 0 0.00% 7,278 Communications and Strategy 2,560 2,584 (24) (0.94%) 1,381 Administration, Legal, Licensing and Registration 4,048 4,039 9 0.22% 1,958 Personnel 6,328 6,383 (55) (0.87%) 2,387 Net Controllable Exp. 38,732 38,732 0 0.00% 20,631 Service Heading Explanation for significant projected outturn variances Strategy There is an anticipated underspend in Employee Costs due to the level of turnover during the financial year. This is partially offset by an anticipated overspend in Payments to Other Bodies reflecting the uplift in the External Audit fee. (See Appendix C). Transactions There is an anticipated overspend in Administration Costs due to higher than budgeted postage costs for Council Tax billing. (See Appendix D). Audit No significant year end outturn variances to report. (See Appendix E). Information Technology There is an anticipated underspend in Employee Costs due to the level of turnover during the financial year. This is offset by an anticipated overspend in Supplies and Services due to greater than budgeted IT costs. (See Appendix F). Communications and Strategy There is an anticipated overspend in Employee Costs due to a lower than budgeted level of turnover during the financial year. (See Appendix G). Administration, Legal, Licensing and Registration There is an anticipated underspend in Payments to Other Bodies reflecting the demand for Administration Grants. This is offset by an anticipated overspend in Employee Costs due to a lower than budgeted level of turnover during the financial year. (See Appendix H). Personnel There is an anticipated overspend in Payments to Other Bodies relating to medical costs due to demand. (See Appendix I). 17
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Appendix B SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Finance & Corporate Resources Summary Budget Category Revised Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual Note £000 £000 £000 £000 Employee Costs 32,156 32,102 54 under 0.17% 10,854 Property Costs 3,866 3,866 0 - 0.00% 506 Supplies & Services 7,452 7,494 (42) over (0.56%) 4,726 Transport & Plant 33 33 0 - 0.00% 2 Administration Costs 8,662 8,691 (29) over (0.33%) 2,902 Payments to Other Bodies 4,022 4,007 15 under 0.37% 2,206 Payments to Contractors 277 277 0 - 0.00% 81 Transfer Payments 65,288 65,288 0 - 0.00% 17,971 Financing Charges 1,214 1,224 (10) over (0.82%) 906 Total Controllable Exp. 122,970 122,982 (12) over (0.01%) 40,154 Total Controllable Inc. (84,238) (84,250) 12 over recovered (0.01%) (19,523) Net Controllable Exp. 38,732 38,732 0 - 0.00% 20,631 Variance Explanations Variance explanations are shown in Appendices C to I as appropriate. Budget Virements Budget Virements are noted in Appendices C to I as appropriate. 18
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Appendix C South Lanarkshire Council Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Finance – Strategy Services Budget Category Revised Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual Note £000 £000 £000 £000 Employee Costs 2,729 2,593 136 under 4.98% 1,151 1 Property Costs 0 0 0 - 0.00% 0 Supplies & Services 9 9 0 - 0.00% 6 Transport & Plant 0 0 0 - 0.00% 0 Administration Costs 114 114 0 - 0.00% 2 Payments to Other Bodies 600 672 (72) over (12.00%) 146 2 Payments to Contractors 22 22 0 - 0.00% 0 Transfer Payments 0 0 0 - 0.00% 0 Financing Charges 20 20 0 - 0.00% 2 Total Controllable Exp. 3,494 3,430 64 under 1.83% 1,307 Total Controllable Inc. (1,643) (1,663) 20 over recovered (1.22%) 1,090 3 Net Controllable Exp. 1,851 1,767 84 under 4.54% 2,397 Variance Explanations 1. The underspend in Employee Costs is due to the anticipated level of turnover during the year. 2. The overspend on Payments to Other Bodies is due to the expected uplift in the External Audit Fee. 3. The over-recovery of income reflects a higher than budgeted recharge to Funds reflecting the level of employee costs and overheads incurred. Budget Virements None. 19
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Appendix D South Lanarkshire Council Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Finance – Transactions Services Budget Category Revised Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual Note £000 £000 £000 £000 Employee Costs 11,993 11,975 18 under 0.15% 3,884 Property Costs 3,860 3,860 0 - 0.00% 500 Supplies & Services 478 487 (9) over (1.88%) 382 a Transport & Plant 4 4 0 - 0.00% 0 Administration Costs 2,291 2,319 (28) over (1.22%) 480 1 Payments to Other Bodies 1,500 1,500 0 - 0.00% 808 Payments to Contractors 255 255 0 - 0.00% 77 Transfer Payments 65,288 65,288 0 - 0.00% 17,971 Financing Charges 106 116 (10) over (9.43%) 4 Total Controllable Exp. 85,775 85,804 (29) over (0.03%) 24,106 Total Controllable Inc. (69,000) (69,000) 0 - 0.00% (19,065) Net Controllable Exp. 16,775 16,804 (29) over (0.17%) 5,041 Variance Explanations 1. The anticipated overspend in Administration Costs is due to higher than budgeted postage costs for Council Tax billing. Budget Virements a. Centralisation of IT Budgets. Net effect (£0.147m): Supplies and Services (£0.147m). 20
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Appendix E South Lanarkshire Council Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Audit Services Budget Category Revised Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual Note £000 £000 £000 £000 Employee Costs 469 458 11 under 2.35% 191 Property Costs 0 0 0 - 0.00% 0 Supplies & Services 7 2 5 under 71.43% 0 Transport & Plant 0 0 0 - 0.00% 0 Administration Costs 6 7 (1) over (16.67%) 0 Payments to Other Bodies 0 0 0 - 0.00% 0 Payments to Contractors 0 0 0 - 0.00% 0 Transfer Payments 0 0 0 - 0.00% 0 Financing Charges 4 4 0 - 0.00% 0 Total Controllable Exp. 486 471 15 under 3.09% 191 Total Controllable Inc. (168) (168) 0 - 0.00% (2) Net Controllable Exp. 318 303 15 under 4.72% 189 Variance Explanations None. Budget Virements None. 21
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Appendix F South Lanarkshire Council Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Information Technology Services Budget Category Revised Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual Note £000 £000 £000 £000 Employee Costs 5,023 4,993 30 under 0.60% 1,684 1 Property Costs 0 0 0 - 0.00% 0 Supplies & Services 6,052 6,082 (30) over (0.50%) 4,085 2, a Transport & Plant 4 4 0 - 0.00% 0 Administration Costs 1,593 1,593 0 - 0.00% 777 a Payments to Other Bodies 0 0 0 - 0.00% 0 Payments to Contractors 0 0 0 - 0.00% 0 Transfer Payments 0 0 0 - 0.00% 0 Financing Charges 631 631 0 - 0.00% 732 Total Controllable Exp. 13,303 13,303 0 - 0.00% 7,278 Total Controllable Inc. (6,451) (6,451) 0 - 0.00% 0 a Net Controllable Exp. 6,852 6,852 0 - 0.00% 7,278 Variance Explanations 1. The underspend in Employee Costs is due to the anticipated level of turnover during the year. 2. The anticipated overspend in Supplies and Services is due to greater than budgeted IT subscription costs. Budget Virements a. Centralisation of IT Budgets. Net effect £0.949m: Supplies and Services (£0.344m); Administration Costs (£0.013m); Income £1.306m. 22
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Appendix G South Lanarkshire Council Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Communications and Strategy Services Budget Category Revised Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual Note Employee Costs 2,131 2,157 (26) over (1.22%) 765 1 Property Costs 0 0 0 - 0.00% 1 Supplies & Services 659 659 0 - 0.00% 153 Transport & Plant 3 3 0 - 0.00% 1 Administration Costs 1,102 1,102 0 - 0.00% 342 Payments to Other Bodies 959 959 0 - 0.00% 756 a Payments to Contractors 0 0 0 - 0.00% 4 Transfer Payments 0 0 0 - 0.00% 0 Financing Charges 351 351 0 - 0.00% 160 Total Controllable Exp. 5,205 5,231 (26) over (0.50%) 2,182 Total Controllable Inc. (2,645) (2,647) 2 over recovered (0.08%) (801) Net Controllable Exp. 2,560 2,584 (24) over (0.94%) 1,381 Variance Explanations 1. The underspend in Employee Costs is due to the anticipated level of turnover during the year. Budget Virements a. Transfer from Reserves to fund spend on Community Wishlist and Can-Do activities. Net effect £0.188m: Payments to Other Bodies £0.188m. 23
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Appendix H South Lanarkshire Council Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Administration, Legal, Licensing and Registration Budget Category Revised Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual Note £000 £000 £000 £000 Employee Costs 3,321 3,436 (115) over (3.46%) 1,201 1 Property Costs 6 6 0 - 0.00% 3 Supplies & Services 143 151 (8) over (5.59%) 79 Transport & Plant 13 13 0 - 0.00% 1 Administration Costs 2,351 2,351 0 - 0.00% 953 Payments to Other Bodies 679 547 132 under 19.44% 285 2 Payments to Contractors 0 0 0 - 0.00% 0 Transfer Payments 0 0 0 - 0.00% 0 Financing Charges 65 65 0 - 0.00% 6 Total Controllable Exp. 6,578 6,569 9 under 0.14% 2,528 Total Controllable Inc. (2,530) (2,530) 0 - 0.00% (570) Net Controllable Exp. 4,048 4,039 9 under 0.22% 1,958 Variance Explanations 1. The overspend in Employee Costs is due to lower than anticipated turnover during the year 2. The underspend in Payments to Other Bodies reflects the anticipated demand for Administration Grants and will be considered as part of the overall review of grants moving forward. Budget Virements None. 24
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Appendix I South Lanarkshire Council Revenue Budget Monitoring Report Finance & Corporate Resources Committee: Period Ended 9 August 2024 (No. 5) Personnel Budget Category Revised Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual Note £000 £000 £000 £000 Employee Costs 6,490 6,490 0 - 0.00% 1,978 Property Costs 0 0 0 - 0.00% 2 Supplies & Services 104 104 0 - 0.00% 21 Transport & Plant 9 9 0 - 0.00% 0 Administration Costs 1,205 1,205 0 - 0.00% 348 Payments to Other Bodies 284 329 (45) over (15.85%) 211 1 Payments to Contractors 0 0 0 - 0.00% 0 Transfer Payments 0 0 0 - 0.00% 0 Financing Charges 37 37 0 - 0.00% 2 Total Controllable Exp. 8,129 8,174 (45) over (0.55%) 2,562 Total Controllable Inc. (1,801) (1,791) (10) under recovered 0.56% (175) Net Controllable Exp. 6,328 6,383 (55) over (0.87%) 2,387 Variance Explanations 1. The overspend in Payments to Other Bodies relates to greater than budgeted medical costs reflecting demand. Budget Virements None. 25
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Capital Budget Monitoring 2024/2025 - Finance and Corporate Resources 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide information on the progress of the capital programme for Finance and Corporate Resources for the period 1 April 2024 to 9 August 2024 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the Finance and Corporate Resources capital programme of £3.086 million, and forecast expenditure of £3.086 million, be noted. [1recs] 3. Background 3.1. This is the second capital monitoring report presented to the Finance and Corporate Resources Committee for the financial year 2024/2025. Further reports will follow throughout the year. 3.2. The budget of £3.086 million for Finance and Corporate Resources is based on the overall Capital Programme for 2024/2025, as approved by the Executive Committee on 26 June 2024. There has been no change to this budget since the last report to this Committee. 3.3. The report details the financial position for Finance and Corporate Resources in Appendix A. 4. Employee Implications 4.1. There are no employee implications as a result of this report. 5. Financial Implications 5.1. 2024/2025 Budget As detailed in Section 3.2, the revised capital programme for Finance and Corporate Resources for 2024/2025 is £3.086 million. 5.2. 2024/2025 Forecast Appendix A shows a forecast for the financial year of £3.086 million. For information, actual expenditure to 9 August 2024 is £1.073 million. 4 27
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6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Council’s Capital Programme is that there is an overspend. The risk has been assessed as low given the detailed project management plans prepared and monitored for each project. The risk of overspend is managed through four weekly Investment Management Meetings. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Executive Director (Finance and Corporate Resources) 2 October 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References Executive Committee, 2 October 2024 List of Background Papers Financial ledger to 9 August 2024 Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Graham Booth, Finance Manager (Strategy) Ext: 2699 (Tel: 01698 452699) E-mail: graham.booth@southlanarkshire.gov.uk 28
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Appendix A South Lanarkshire Council Capital Expenditure 2024-2025 Finance and Corporate Resources Programme For Period 1 April 2024 – 9 August 2024 Finance and Corporate Resources Total Original Budget £000 Budget Adjustments £000 Slippage £000 Total Budget £000 Forecast Spend £000 Forecast Variance £000 Actual Expenditure £000 Information Technology Services 3,086 - - 3,086 3,086 - 1,073 TOTAL 3,086 - - 3,086 3,086 - 1,073 29
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Finance and Corporate Resources – Workforce Monitoring – July to September 2024 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide employment information for July to September 2024 relating to Finance and Corporate Resources [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the following employment information for July to September 2024 relating to Finance and Corporate Resources be noted:- attendance statistics occupational health accident/incident statistics discipline, grievance and Dignity at Work cases analysis of leavers and exit interviews staffing watch as at 11 June 2024 [1recs] 3. Background 3.1. As part of the Council’s performance management arrangements, regular workforce monitoring reports are submitted to Committee. This report for Finance and Corporate Resources provides information on the position for July to September 2024. 4. Monitoring Statistics 4.1. Attendance Statistics (Appendix 1) Information on absence statistics is analysed for the month of September 2024 for Finance and Corporate Resources. The Resource absence figure for September 2024 was 3.2%, this figure has increased by 0.6% when compared to the previous month and is 2.9% lower than the Council-wide figure. Compared to September 2023, the Resource absence figure has decreased by 0.7%. Based on the absence figures at September 2024 and annual trends, the annual average absence for the Resource for 2024/2025 is 3.1%, compared to a Council- wide average figure of 5.6%. 5 31
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Managers follow the procedures outlined in the Maximising Attendance Policy to support employees to remain at work, or to return to work after a sickness absence. There are comprehensive employee supports in place and additionally, Personnel Services work in close partnership with line managers and Resource Management Teams on a case management basis to ensure that appropriate actions are taken. 4.2. Occupational Health (Appendix 2) In terms of referrals to occupational health, which include medical examinations and physiotherapy, overall, 38 referrals were made this period. This represents a decrease of 23 when compared with the same period last year. 4.3. Accident/Incident Statistics There were no accident/incidents recorded within the Resource this period. 4.4. Discipline, Grievance and Dignity at Work (Appendix 2) During the period, no disciplinary hearings were held within the Resource. This figure has decreased by 1 when compared to the same period last year. No appeals were heard by the Appeals Panel, this figure has also remained the same when compared to last year and no appeals panels were pending. No grievance or Dignity at Work complaints were raised within the Resource, these figures remain unchanged when compared to the same period last year. 4.5. Analysis of Leavers (Appendix 2a) There were 4 leavers within the Resource this period who were eligible for an exit interview, this is a decrease of 5 when compared with the same period last year. Given the transition to the new Fusion system, exit interview data is being collated for this period and an update will be reported to the next committee. 5. Staffing Watch 5.1. Appendix 3 provides the Staffing Watch and shows there has been a decrease of 44 in the number of employees in post from 9 March 2024 to 11 June 2024. 6. Employee Implications 6.1. There are no implications for employees arising from the information presented in this report. 7. Financial Implications 7.1. All financial implications are accommodated within existing budgets. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no Climate Change, Sustainability and Environmental Implications in terms of the information contained within this report. 9. Other Implications 9.1. There are no implications for sustainability or risk in terms of the information contained within this report. 10. Equality Impact Assessment and Consultation Arrangements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 32
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10.2. There was no requirement to undertake any consultation in terms of the information contained in this report. Jackie Taylor Executive Director (Finance and Corporate Resources) 10 October 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Fair, open and sustainable Ambitious, self aware and improving Excellent employer Focused on people and their needs Working with and respecting others Previous References Finance and Corporate Resources – 21 August 2024 List of Background Papers Monitoring information provided by Finance and Corporate Resources Contact for Further Information If you would like to inspect the background papers or want further information, please contact: - Eileen McPake, HR Business Manager Ext: 4647 (Tel: 01698 454647) E-mail: Eileen.McPake@southlanarkshire.gov.uk 33
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2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 % % % % % % % % % % % % April 2.8 3.6 2.8 April 0.0 0.0 0.0 April 2.8 3.6 2.8 April 5.6 5.1 5.2 May 3.2 3.9 3.2 May 0.0 0.0 0.0 May 3.2 3.9 3.2 May 5.4 5.1 5.3 June 4.0 4.2 3.2 June 0.0 0.0 0.0 June 4.0 4.2 3.2 June 5.3 4.7 5.2 July 3.9 3.5 3.5 July 0.0 0.0 0.0 July 3.9 3.5 3.5 July 4.6 3.8 4.1 August 4.1 3.8 2.6 August 0.0 0.0 0.0 August 4.1 3.8 2.6 August 4.4 4.1 4.7 September 3.6 3.9 3.2 September 0.0 0.0 0.0 September 3.6 3.9 3.2 September 5.4 5.3 6.1 October 3.8 3.2 October 0.0 0.0 October 3.8 3.2 October 5.8 5.1 November 3.4 3.5 November 0.0 0.0 November 3.4 3.5 November 6.5 6.2 December 4.3 3.3 December 0.0 0.0 December 4.3 3.3 December 7.0 6.6 January 4.3 2.8 January 0.0 0.0 January 4.3 2.8 January 5.8 6.1 February 3.8 3.5 February 0.0 0.0 February 3.8 3.5 February 5.9 6.4 March 3.8 2.6 March 0.0 0.0 March 3.8 2.6 March 6.4 6.3 Annual Average 3.8 3.5 3.1 Annual Average 0.0 0.0 0.0 Annual Average 3.8 3.5 3.1 Annual Average 5.7 5.4 5.6 Average Apr-Sep 3.6 3.8 3.1 Average Apr-Sep 0.0 0.0 0.0 Average Apr-Sep 3.6 3.8 3.1 Average Apr-Sep 5.1 4.7 5.1 826 0 826 15851 Resource Total No of Employees at 30 September 2024 Appendix 1 Absence Trends - 2022/2023, 2023/2024 & 2024/2025 Finance and Corporate Resources No of Employees at 30 September 2024 No of Employees at 30 September 2024 APT&C Council WideManual Workers No of Employees at 30 September 2024 34
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Jul - Sep Jul - Sep 2023 2024 MEDICAL EXAMINATIONS Number of Employees Attending EMPLOYEE COUNSELLING SERVICE Total Number of Referrals PHYSIOTHERAPY SERVICE Total Number of Referrals REFERRALS TO EMPLOYEE SUPPORT OFFICER 26 18 REFERRALS TO COGNITIVE BEHAVIOUR THERAPY 0 0 TOTAL 61 38 Jul - Sep Jul - Sep 2023 2024 Specified Injuries* 0 0 Over 7 day absences 0 0 Over 3 day absences** 0 0 Minor 1 0 Near Miss *** 0 0 Violent Incident: Physical**** 0 0 Violent Incident: Verbal***** 0 0 Total Accidents/Incidents 1 0 Jul - Sep Jul - Sep 2023 2024 Total Number of Hearings 1 0 Total Number of Appeals 0 0 Appeals Pending 0 0 Time Taken to Convene Hearing October - Jul to Sep 2024 0-3 Weeks 4-6 Weeks Over 6 Weeks 0 0 0 Jul - Sep Jul - Sep 2023 2024 Number of Grievances 0 0 Number Resolved at Stage 1 0 0 Number Resolved at Stage 2 0 0 Number Resolved at Stage 3 0 0 Still in Progress 0 0 Jul - Sep Jul - Sep 2023 2024 Number of Incidents 0 0 Number Resolved at Informal Stage 0 0 Number Resolved at Formal Stage 0 0 Number of Appeals 0 0 Appeals in Process 0 0 Still in Process 0 0 RECORD OF DIGNITY AT WORK ****Physical violent incidents are included in the "Specified" figures, where applicable, to provide the ****Physical violent incidents and ***** Verbal Violent Incidents are included in the "Over 3-day or Over 7- day" figures, where applicable, to provide the "Total Over 3-day or Over 7-day" figures. ****Physical Violent Incidents and ***** Verbal Violent Incidents are included in the "Minor" figures, where applicable, to provide the "Total Minor" figures. RECORD OF DISCIPLINARY HEARINGS RECORD OF GRIEVANCE HEARINGS ***Near Miss - Any unexpected, unplanned occurrence (except Dangerous Occurrences) that does not lead to injury of persons, damage to property, plant or equipment but may have done so in different Appendix 2 FINANCE AND CORPORATE RESOURCES 12 9 0 1 23 10 CAUSE OF ACCIDENTS/INCIDENTS *A Specified Injury is any fracture (other than to the fingers, thumbs or toes), amputation, loss of sight, serious burns, crushing injury, scalping, loss of consciousness caused by asphyxiation/ head injury, a chemical or hot metal burn to the eye or penetrating injury as defined by the HSE. **Over 3 day / over 7day absence is an injury sustained outwith specified injury category that results in a period of absence of absence as defined by the HSE. 35
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Jul - Sep Jul - Sep 2023 2024 Career Advancement 1 0 Child Caring / Caring Responsibilities 0 0 Disatisfaction with terms and conditions 1 0 Further Education 0 0 Moving outwith area 0 0 Personal Reasons 1 0 Poor relationship with managers / colleagues 0 0 Travelling difficulties 0 0 Other 0 0 Number of Exit Interviews conducted 3 0 Total Number of Leavers Eligible for Exit Interview 9 4 Percentage of interviews conducted 33% 0% ANALYSIS OF REASONS FOR LEAVING Appendix 2a FINANCE AND CORPORATE RESOURCES 36
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As at 11 June 2024 Total Number of Employees F/T P/T F/T P/T 183 14 364 211 Chief Officer Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher TOTAL 8.00 90.61 326.03 202.14 51.72 23.00 0.00 0.00 0.00 701.50 As at 9 March 2024 Total Number of Employees F/T P/T F/T P/T 192 15 387 222 Chief Officer Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher TOTAL 6.00 97.71 353.48 210.14 52.78 23.00 0.00 0.00 0.00 743.11 *Full - Time Equivalent No of Employees Salary Bands MALE FEMALE TOTAL 816 Appendix 3 JOINT STAFFING WATCH RETURN FINANCE AND CORPORATE RESOURCES *Full - Time Equivalent No of Employees Salary Bands 772 MALE FEMALE TOTAL 37
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Council-wide Workforce Monitoring – July to September 2024 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide employment information relating to the Council for the period July to September 2024 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the following employment information for the period July to September 2024 relating to the Council be noted:- attendance statistics occupational health accident/incident statistics discipline, grievance and Dignity at Work cases analysis of leavers and exit interviews recruitment monitoring staffing watch as at 11 June 2024 [1recs] 3. Background 3.1. As part of the Council’s performance management arrangements, regular workforce monitoring reports are submitted to the Committee. This report for the Council provides information on the position for the period July to September 2024. 4. Attendance Statistics 4.1. Information on absence statistics for the Council and each Resource, as analysed for September 2024, is provided in Appendices 1 to 8. Points to note are:- The Council’s absence rate for September 2024, shown in Appendix 1, is 6.1%, which represents an increase of 1.4% when compared with last month and the figure has increased by 0.8% when compared to September 2023. When compared to September 2023, the APT&C absence rate has increased by 1.0%, the teachers’ figure has increased by 0.6% and the manual workers’ figure has increased by 0.7%. Based on annual trends and the absence rate to September 2024, the average absence rate for the Council for the financial year 2024/2025 is 5.6%. 6 39
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In comparison to September 2023 (Appendix 8):- Psychological and musculoskeletal conditions are the main reasons for absence Total days lost due to psychological conditions have increased by 35 days Total days lost due to musculoskeletal conditions have increased by 637days Total days lost due to respiratory conditions have decreased by 242 days Total days lost due to stomach, bowel, blood and metabolic disorders have increased by 383 days Managers follow the procedures outlined in the Maximising Attendance Policy to support employees to remain at work, or to return to work after a sickness absence. There are comprehensive employee supports in place and additionally, Personnel Services work in close partnership with line managers and Resource Management Teams on a case management basis to ensure that appropriate actions are taken. 5. Occupational Health 5.1. Information on Occupational Health for the period July to September 2024 is provided in Appendix 9. during the period there were 318 employees referred for a medical examination, a decrease of 13 when compared to the same period last year. Both musculoskeletal and psychological conditions continue to be the main reason for medical referrals a total of 413 employees attended physiotherapy treatment, showing a decrease of 101 when compared to the same period last year. Of the 413 employees referred, 70% remained at work whilst undertaking treatment during this period 340 employees were referred to the Employee Support Officer, showing a decrease of 57 when compared with the same period last year. Of the referrals made this period, 87% related to personal reasons 158 employees were referred to the PAM Assist counselling service this period, showing an increase of 11 when compared with the same period last year. All the referrals made this period were made directly by employees. Personal reasons accounted for 28% of the referrals made, 22% were for work related reasons and 50% was for other reasons 21 employees were referred for Cognitive Behavioural Therapy this period, an increase of 18 when compared to the same period last year 6. Accidents/Incidents 6.1. The accident/incident reported for July to September 2024 is contained in Appendix 10. the number of accidents/incidents recorded was 305 of those, 130 have been investigated and categorised 175 are still in process of being investigated for categorisation and upload of those investigated, 3 specified injuries were recorded of those investigated there were 111 minor accidents/incidents of those investigated there were 3 accidents resulting in an absence lasting over 3 days during the period of those investigated there were 13 accidents resulting in an absence lasting over 7 days during the period 40
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7. Discipline, Grievance, Dignity at Work Hearings and Mediation Referrals 7.1. Information on Disciplinary, Grievance Hearings, Dignity at Work and Mediation Referrals for July to September 2024 is contained in Appendices 11, 12a and 12b. in total, 32 disciplinary hearings were held and concluded across Resources within the Council, this figure has increased by 4 when compared to the same period last year action was taken in 29 of these cases. Two appeals were raised against the outcomes, both of which were not upheld our target is to convene disciplinary hearings within 6 weeks, 53% of hearings met this target during the period, no appeals were heard by the Appeals Panel at the end of September, no Appeals Panels were pending during the period, 5 grievance cases were raised during the period, 10 Dignity at Work cases were raised during the period, 1 referral for mediation was submitted 8. Analysis of Leavers and Exit Interviews 8.1. Information on the number of leavers and exit interviews for the period July to September 2024 is contained in Appendix 13. Exit interviews are conducted with employees who leave voluntarily. Labour Turnover Using information compiled from Resources and Staffing Watch information as at 11 June 2024, the Council’s turnover figure for July to September 2024 is as follows:- 219 leavers eligible for exit interviews/15,033 employees in post = Labour Turnover of 1.5%. Based on the figure at September 2024, the annual labour turnover figure for the financial year 2024/2025 for the Council is 4.8%. 8.2. Analysis of Leavers and Exit Interviews:- there were a total of 219 employees leaving the Council that were eligible for an exit interview, an increase of 7 when compared with the same period last year. Given the transition to the new Fusion system, exit interview data is being collated for this period and an update will be reported to next Committee. 9. Recruitment Monitoring 9.1. Information on Recruitment Monitoring for July to September 2024 is contained within Appendix 14. From an analysis of Equal Opportunities Monitoring Forms, the main points to note are:- overall, 2048 applications and 2013 completed Equal Opportunities Monitoring Forms were received of those applicants who declared themselves as disabled (62), 20 were shortleeted for interview and 3 were appointed. of those applicants of a black/ethnic minority background (232), 41 were shortleeted for interview and 2 were appointed. 41
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of those applicants who are veterans (18), 4 were shortleeted for interview and 1 was appointed. 10. Staffing Watch 10.1 There has been an increase of 64 in the number of employees in post from 9 March 2024 to 11 June 2024. Details of the staffing watch are contained in Appendix 15. 11. Employee Implications 11.1. There are no implications for employees arising from the information presented in this report. 12. Financial Implications 12.1. All financial implications are accommodated within existing budgets. 13. Climate Change, Sustainability and Environmental Implications 13.1. There are no climate change, sustainability or environmental implications arising from the information presented in this report. 14. Other Implications 14.1. There are no implications for risk in terms of the information contained within this report. 15. Equality Impact Assessment and Consultation Arrangements 15.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 15.2. There was no requirement to undertake any consultation in terms of the information contained in this report. Jackie Taylor Executive Director (Finance and Corporate Resources) 10 October 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Fair, open and sustainable Ambitious, self-aware and improving Excellent employer Focused on people and their needs Working with and respecting others Previous References Finance and Corporate Resources Committee – 21 August 2024 List of Background Papers Monitoring information provided by Resources 42
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Contact for Further Information If you would like to inspect the background papers or want further information, please contact: - Elaine Maxwell, HR Business Manager Ext: 4647 (Tel: 01698 454647) E-mail: Elaine.Maxwell@southlanarkshire.gov.uk 43
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2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 % % % % % % % % % % % % April 5.2 5.2 5.2 April 2.7 2.8 2.9 April 8.8 7.0 7.3 April 5.6 5.1 5.2 May 5.0 5.1 5.4 May 3.6 3.2 3.0 May 7.6 6.2 7.1 May 5.4 5.1 5.3 June 5.0 4.9 5.3 June 2.6 2.2 2.8 June 8.1 6.5 7.2 June 5.3 4.7 5.2 July 4.5 4.0 4.3 July 1.4 1.1 1.0 July 7.4 5.8 6.3 July 4.6 3.8 4.1 August 4.3 4.2 4.6 August 1.4 1.3 1.9 August 7.4 6.2 7.5 August 4.4 4.1 4.7 September 5.2 5.2 6.2 September 2.8 2.9 3.5 September 8.0 7.6 8.3 September 5.4 5.3 6.1 October 5.7 5.2 October 3.4 2.7 October 8.1 7.1 October 5.8 5.1 November 6.3 6.1 November 4.7 4.3 November 8.6 8.1 November 6.5 6.2 December 6.7 6.7 December 5.3 4.8 December 8.9 7.8 December 7.0 6.6 January 5.2 5.8 January 4.3 4.8 January 8.0 7.8 January 5.8 6.1 February 5.7 6.3 February 4.1 4.9 February 7.9 8.0 February 5.9 6.4 March 6.2 6.3 March 4.6 4.1 March 8.3 8.1 March 6.4 6.3 Annual Average 5.4 5.4 5.6 Annual Average 3.4 3.3 3.4 Annual Average 8.1 7.2 7.6 Annual Average 5.7 5.4 5.6 Average Apr-Sep 4.9 4.8 5.2 Average Apr-Sep 2.4 2.3 2.5 Average Apr-Sep 7.9 6.6 7.3 Average Apr-Sep 5.1 4.7 5.1 7363 4036 4452 15851 Appendix 1 Absence Trends - 2022/2023, 2023/2024 & 2024/2025 Council Wide APT&C Teachers No of Employees at 30 September 2024 No of Employees at 30 September 2024 Manual Workers Council Wide No of Employees at 30 September 2024 No of Employees at 30 September 2024 44
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2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 % % % % % % % % % % % % April 4.4 3.6 3.2 April 7.3 6.3 6.8 April 6.9 6.0 6.3 April 5.6 5.1 5.2 May 3.9 3.7 3.1 May 6.8 6.3 6.3 May 6.3 5.9 5.9 May 5.4 5.1 5.3 June 3.5 4.3 4.1 June 7.2 5.9 6.4 June 6.7 5.7 6.0 June 5.3 4.7 5.2 July 3.9 2.3 3.8 July 5.9 4.6 4.5 July 5.6 4.3 4.4 July 4.6 3.8 4.1 August 3.4 3.0 3.4 August 6.6 5.2 6.2 August 6.1 4.9 5.7 August 4.4 4.1 4.7 September 3.1 2.5 3.8 September 7.9 7.1 7.5 September 7.1 6.4 6.9 September 5.4 5.3 6.1 October 5.1 2.0 October 7.5 7.0 October 7.1 6.3 October 5.8 5.1 November 4.2 2.6 November 8.3 8.1 November 7.7 7.3 November 6.5 6.2 December 3.7 3.0 December 8.8 7.5 December 8.0 6.8 December 7.0 6.6 January 2.6 3.6 January 7.4 7.4 January 6.7 6.9 January 5.8 6.1 February 3.6 4.0 February 7.4 7.8 February 6.9 7.2 February 5.9 6.4 March 3.9 3.2 March 7.9 7.9 March 7.3 7.2 March 6.4 6.3 Annual Average 3.8 3.2 3.3 Annual Average 7.4 6.8 7.0 Annual Average 6.9 6.2 6.4 Annual Average 5.7 5.4 5.6 Average Apr-Sep 3.7 3.2 3.6 Average Apr-Sep 7.0 5.9 6.3 Average Apr-Sep 6.5 5.5 5.9 Average Apr-Sep 5.1 4.7 5.1 585 2876 3461 15851 Appendix 2 Absence Trends - 2022/2023, 2023/2024 & 2024/2025 Community and Enterprise Resources APT&C Council WideManual Workers Resource Total No of Employees at 30 September 2024 No of Employees at 30 September 2024 No of Employees at 30 September 2024 No of Employees at 30 September 2024 45
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2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 % % % % % % % % % % % % April 5.5 5.0 5.4 April 2.7 2.8 2.9 April 4.0 3.8 4.0 April 5.6 5.1 5.2 May 5.5 5.4 6.0 May 3.6 3.2 3.0 May 4.5 4.2 4.4 May 5.4 5.1 5.3 June 5.1 4.8 5.5 June 2.6 2.2 2.8 June 3.7 3.4 4.1 June 5.3 4.7 5.2 July 3.8 3.4 3.2 July 1.4 1.1 1.0 July 2.5 2.2 2.0 July 4.6 3.8 4.1 August 3.6 4.0 3.9 August 1.4 1.3 1.9 August 2.4 2.5 2.8 August 4.4 4.1 4.7 September 5.8 5.9 6.6 September 2.8 2.9 3.5 September 4.1 4.3 4.9 September 5.4 5.3 6.1 October 6.5 5.5 October 3.4 2.7 October 4.8 4.0 October 5.8 5.1 November 7.9 7.1 November 4.7 4.3 November 6.2 5.6 November 6.5 6.2 December 8.5 8.1 December 5.3 4.8 December 6.8 6.3 December 7.0 6.6 January 6.1 6.6 January 4.3 4.8 January 5.1 5.6 January 5.8 6.1 February 6.8 7.2 February 4.1 4.9 February 5.4 6.0 February 5.9 6.4 March 7.0 7.5 March 4.6 4.1 March 5.7 5.7 March 6.4 6.3 Annual Average 6.0 5.9 6.1 Annual Average 3.4 3.3 3.4 Annual Average 4.6 4.5 4.6 Annual Average 5.7 5.4 5.6 Average Apr-Sep 4.9 4.8 5.1 Average Apr-Sep 2.4 2.3 2.5 Average Apr-Sep 3.5 3.4 3.7 Average Apr-Sep 5.1 4.7 5.1 3303 4036 7339 15851No of Employees at 30 September 2024 No of Employees at 30 September 2024 No of Employees at 30 September 2024 No of Employees at 30 September 2024 Appendix 3 Absence Trends - 2022/2023, 2023/2024 & 2024/2025 Education Resources Council WideAPT&C Teachers Resource Total 46
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2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 % % % % % % % % % % % % April 2.8 3.6 2.8 April 0.0 0.0 0.0 April 2.8 3.6 2.8 April 5.6 5.1 5.2 May 3.2 3.9 3.2 May 0.0 0.0 0.0 May 3.2 3.9 3.2 May 5.4 5.1 5.3 June 4.0 4.2 3.2 June 0.0 0.0 0.0 June 4.0 4.2 3.2 June 5.3 4.7 5.2 July 3.9 3.5 3.5 July 0.0 0.0 0.0 July 3.9 3.5 3.5 July 4.6 3.8 4.1 August 4.1 3.8 2.6 August 0.0 0.0 0.0 August 4.1 3.8 2.6 August 4.4 4.1 4.7 September 3.6 3.9 3.2 September 0.0 0.0 0.0 September 3.6 3.9 3.2 September 5.4 5.3 6.1 October 3.8 3.2 October 0.0 0.0 October 3.8 3.2 October 5.8 5.1 November 3.4 3.5 November 0.0 0.0 November 3.4 3.5 November 6.5 6.2 December 4.3 3.3 December 0.0 0.0 December 4.3 3.3 December 7.0 6.6 January 4.3 2.8 January 0.0 0.0 January 4.3 2.8 January 5.8 6.1 February 3.8 3.5 February 0.0 0.0 February 3.8 3.5 February 5.9 6.4 March 3.8 2.6 March 0.0 0.0 March 3.8 2.6 March 6.4 6.3 Annual Average 3.8 3.5 3.1 Annual Average 0.0 0.0 0.0 Annual Average 3.8 3.5 3.1 Annual Average 5.7 5.4 5.6 Average Apr-Sep 3.6 3.8 3.1 Average Apr-Sep 0.0 0.0 0.0 Average Apr-Sep 3.6 3.8 3.1 Average Apr-Sep 5.1 4.7 5.1 826 0 826 15851 Manual Workers No of Employees at 30 September 2024 Resource Total No of Employees at 30 September 2024 Appendix 4 Absence Trends - 2022/2023, 2023/2024 & 2024/2025 Finance and Corporate Resources No of Employees at 30 September 2024 No of Employees at 30 September 2024 APT&C Council Wide 47
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2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 % % % % % % % % % % % % April 5.5 5.7 5.3 April 10.6 6.9 7.2 April 7.6 6.2 6.1 April 5.6 5.1 5.2 May 4.5 4.9 5.2 May 8.1 6.1 8.1 May 6.0 5.4 6.4 May 5.4 5.1 5.3 June 4.9 5.4 5.7 June 8.5 6.8 8.4 June 6.4 6.0 6.8 June 5.3 4.7 5.2 July 5.5 5.0 5.3 July 8.9 8.1 8.6 July 6.9 6.2 6.7 July 4.6 3.8 4.1 August 4.7 5.1 5.5 August 7.1 8.5 8.8 August 5.7 6.4 6.9 August 4.4 4.1 4.7 September 4.5 4.7 7.5 September 6.3 7.8 7.4 September 5.2 6.0 7.5 September 5.4 5.3 6.1 October 4.3 4.9 October 7.8 5.2 October 5.8 5.0 October 5.8 5.1 November 4.6 4.8 November 7.8 6.7 November 5.9 5.6 November 6.5 6.2 December 4.4 5.1 December 7.2 7.4 December 5.6 6.0 December 7.0 6.6 January 4.5 4.4 January 5.5 6.0 January 4.9 5.0 January 5.8 6.1 February 4.4 5.2 February 6.2 6.3 February 5.1 5.6 February 5.9 6.4 March 5.3 5.3 March 6.8 7.2 March 5.9 6.1 March 6.4 6.3 Annual Average 4.8 5.0 5.4 Annual Average 7.6 6.9 7.3 Annual Average 5.9 5.8 6.1 Annual Average 5.7 5.4 5.6 Average Apr-Sep 4.9 5.1 5.8 Average Apr-Sep 8.3 7.4 8.1 Average Apr-Sep 6.3 6.0 6.7 Average Apr-Sep 5.1 4.7 5.1 858 555 1413 15851No of Employees at 30 September 2024No of Employees at 30 September 2024 No of Employees at 30 September 2024 No of Employees at 30 September 2024 Appendix 5 Housing & Technical Resources Resource Total Absence Trends - 2022/2023, 2023/2024 & 2024/2025 APT&C Manual Workers Council Wide 48
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2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 2022 / 2023 2023 / 2024 2024 / 2025 % % % % % % % % % % % % April 6.2 6.5 6.5 April 12.6 9.4 8.8 April 8.3 7.4 7.3 April 5.6 5.1 5.2 May 5.7 5.8 5.8 May 10.1 8.4 9.5 May 7.1 6.6 7.0 May 5.4 5.1 5.3 June 5.9 5.5 6.0 June 11.3 8.6 9.2 June 7.6 6.5 7.0 June 5.3 4.7 5.2 July 6.0 5.4 6.5 July 11.8 8.8 11.2 July 7.9 6.5 8.0 July 4.6 3.8 4.1 August 6.0 4.8 6.9 August 10.8 8.6 11.4 August 7.5 6.0 8.4 August 4.4 4.1 4.7 September 5.9 5.6 7.2 September 9.6 9.3 12.0 September 7.1 6.8 8.8 September 5.4 5.3 6.1 October 5.8 6.5 October 10.4 8.5 October 7.3 7.1 October 5.8 5.1 November 6.0 7.3 November 10.4 9.0 November 7.4 7.8 November 6.5 6.2 December 6.4 7.4 December 10.6 9.5 December 7.7 8.1 December 7.0 6.6 January 5.2 7.0 January 12.0 10.3 January 7.4 8.1 January 5.8 6.1 February 5.8 7.0 February 11.0 9.9 February 7.5 7.9 February 5.9 6.4 March 7.0 7.1 March 10.9 9.4 March 8.2 7.9 March 6.4 6.3 Annual Average 6.0 6.3 6.8 Annual Average 11.0 9.1 9.9 Annual Average 7.6 7.2 7.8 Annual Average 5.7 5.4 5.6 Average Apr-Sep 6.0 5.6 6.5 Average Apr-Sep 11.0 8.9 10.4 Average Apr-Sep 7.6 6.6 7.8 Average Apr-Sep 5.1 4.7 5.1 1791 1021 2812 15851No of Employees at 30 September 2024 No of Employees at 30 September 2024 No of Employees at 30 September 2024 No of Employees at 30 September 2024 Appendix 6 Absence Trends - 2022/2023, 2023/2024 & 2024/2025 Social Work Resources APT&C Council WideResource TotalManual Workers 49
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Appendix 7 Absence by long and short term From: 1 July 2024 to 30 September 2024 Community and Enterprise 3461 1.1 3.3 4.4 1.8 3.9 5.7 2.3 4.6 6.9 Education 7339 0.3 1.7 2.0 1.3 1.5 2.8 2.0 2.9 4.9 Finance and Corporate 826 1.4 2.1 3.5 0.7 1.9 2.6 0.8 2.4 3.2 Housing & Technical 1413 1.9 4.8 6.7 2.0 4.9 6.9 2.1 5.4 7.5 Social Work 2812 2.3 5.7 8.0 1.8 6.6 8.4 2.0 6.8 8.8 Council Overall for July 2024 to September 2024 15851 1.0 3.1 4.1 1.5 3.2 4.7 2.0 4.1 6.1 July 2024 Total Short Term % Total Long Term % Resource Total Absence % September 2024 Total Short Term % Total Long Term % Resource Total Absence % Resource No of employees Resource Total Absence % August 2024 Total Short Term % Total Long Term % 50
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From : 1 September 2024 - 30 September 2024 Total WDL % Total WDL % Total WDL % Total WDL % Total WDL % Musculoskeletal 1429 30 1122 17 66 14 626 32 899 21 4142 23 Psychological 1177 25 2222 33 147 31 590 30 1498 35 5634 31 Stomach, Bowel, Blood, Metabolic Disorders 543 11 677 10 39 8 220 11 526 12 2005 11 Respiratory 405 9 991 15 100 21 187 10 569 13 2252 12 Other Classification 1183 25 1718 26 122 26 331 17 743 18 4097 23 Total Days Lost By Resource 4737 100 6730 100 474 100 1954 100 4235 100 18130 100 Total Work Days Available From : 1 September 2023 - 30 September 2023 Total WDL % Total WDL % Total WDL % Total WDL % Total WDL % Musculoskeletal 1299 29 910 14 37 6 509 30 750 21 3505 21 Psychological 1385 31 2052 32 339 51 529 31 1294 37 5599 33 Stomach, Bowel, Blood, Metabolic Disorders 314 7 698 11 91 14 172 10 347 10 1622 10 Respiratory 559 12 1319 21 64 10 212 13 340 10 2494 15 Other Classification 954 21 1385 22 131 20 262 16 788 22 3520 21 Total Days Lost By Resource 4511 100 6364 100 662 100 1684 100 3519 100 16740 100 Total Work Days Available *WDL = Work Days Lost Finance and Corporate 26089 48396 Appendix 8 Attendance Monitoring Absence Classification Reasons Community and Enterprise Resources Social Work Resources Total WDL By Reason Percentage Housing and Technical Resources Education Resources PercentageTotal WDL By ReasonREASONS Community and Enterprise Resources Education Resources Finance and Corporate Housing and Technical Resources 69051 137247 14944 Social Work Resources 51869282921715414833270496 51
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Appendix 9 Teachers Others 70 26 48 9 61 104 93 23 34 12 68 101 Jul-Sep 2023 Jul-Sep 2024 Jul-Sep 2023 Jul-Sep 2024 Jul-Sep 2023 Jul-Sep 2024 152 125 96 58 0 1 59 47 144 115 1 0 95 72 26 18 0 0 23 10 27 43 0 0 65 46 104 106 Social Work 0 2 120 113 397 340 Not Disclosed 2 18 514 413 Total 3 21 M S M S M S M S M S M S Total (Jul-Sep 2024) 0 34 0 3 0 45 0 65 0 11 0 158 Total (Jul-Sep 2023) 32 0 0 0 92 0 1 0 22 0 147 0 Total 158 147 M = MANAGEMENT REFERRAL S = SELF REFERRAL Occupational Health Reports From: 1 July - 30 September 2024 comparison with 1 July - 30 September 2023 Medical Referrals Community and Enterprise Education Finance and Corporate Housing & Technical Social Work Totals Total (Jul-Sep 2024) 318 Total (Jul-Sep 2023) 331 No of Employees Referred For Physiotherapy No of Employees Referred To Employee Support Officer No of Employees Referred For Cognitive Behavioural Therapy Resource Resource Resource Community and Enterprise Community and Enterprise Community and Enterprise Education (Teachers) Education Education Education (Others) Finance and Corporate Finance and Corporate Total Finance and Corporate Housing and Technical Housing and Technical Housing and Technical Social Work Social Work Total Total Referrals (Jul-Sep 2024) Total Referrals (Jul-Sep 2023) Total Analysis of Counselling Referrals by Cause Reason Work Stress Addiction Personal Anxiety/ Depression Bereavement 52
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2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Specified Injury 0 2 1 0 0 0 0 0 0 0 1 2 Specified Injury (Violence) 0 0 0 1 0 0 0 0 0 0 0 1 Total Specified Injury* 0 2 1 1 0 0 0 0 0 0 1 3 Over 7 Day 7 9 1 0 0 0 2 2 2 2 12 13 Over 7 Day (Violence) 0 0 6 0 0 0 0 0 0 0 6 0 Total Over 7 Day** 7 9 7 0 0 0 2 2 2 2 18 13 Over 3 Day 0 1 1 0 0 0 1 0 3 2 5 3 Over 3 Day (Violence) 0 0 0 0 0 0 0 0 0 0 0 0 Total Over 3 Day** 0 1 1 0 0 0 1 0 3 2 5 3 Minor Injury 23 23 54 5 1 0 5 4 23 1 106 33 Near Miss 4 3 3 0 0 0 0 0 3 1 10 4 Violence (Physical) 15 5 334 52 0 0 1 0 21 3 371 60 Violence (Verbal) 4 2 22 10 0 0 3 0 9 2 38 14 Total Minor*** 46 33 413 67 1 0 9 4 56 7 525 111 Total Finalised 53 45 422 68 1 0 12 6 61 11 549 130 Accident 0 6 2 9 0 0 0 4 0 6 2 25 Incident 1 1 1 12 0 0 1 3 0 0 3 16 Violence (Physical) 0 0 2 114 0 0 1 0 0 4 3 118 Violence (Verbal) 0 1 0 11 0 0 0 0 0 2 0 14 Near Miss 0 1 0 1 0 0 0 0 0 0 0 2 Total to be investigated**** 1 9 5 147 0 0 2 7 0 12 8 175 Total Events/Month 54 54 427 215 1 0 14 13 61 23 557 305 Finance and Corporate Housing & Tech Social Work TOTAL **Over 3 Day /Over 7 Day absence relates to events outwith the specified injury category that resulted in an absence or inability to do normal work for more than 3/7 days (not including day of injury) ***A minor injury is an injury not covered by Over 7 day, Over 3 day or Specified ****In process relates to records not yet investigated/defined by managers *Specified Injury is any fracture (other than fingers/toes), amputation, loss or sight, serious burns, crushing injury, scalping, loss of consciousness caused by asphyxiation/head injury, a chemical or hot metal burn to the eye or penetrating injury as defined by the HSE Appendix 10 Analysis of Accidents / Incidents From: 1 July - 30 September 2024 comparison with 1 July - 30 September 2023 Accidents by Month of Occurrence Community and Enterprise Education 53
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APT&C Manual / Craft Teachers Total APT&C Manual / Craft Teachers Total Community and Enterprise 6 10 N/A 16 0 0 N/A 0 6 10 N/A 16 1 8 7 56% 16.56 Education 2 0 4 6 1 0 0 1 1 0 4 5 2 1 3 50% 6 Housing and Technical 5 2 N/A 7 2 0 N/A 2 3 2 N/A 5 2 3 2 71% 7 Social Work 2 1 N/A 3 0 0 N/A 0 2 1 N/A 3 0 0 3 0% 3 Total (Jul-Sep 2024) 15 13 4 32 3 0 0 3 12 13 4 29 5 12 15 53% 32 Total (Jul-Sep 2023) 2 25 1 28 1 4 0 5 1 21 1 23 18 6 4 39% 28 APT&C Manual/ Craft Teachers Total APT&C Manual/ Craft Teachers Total APT&C Manual/ Craft Teachers Total Total (Jul-Sep 2024) 0 2 0 2 0 0 0 0 0 0 0 0 0 2 0 2 0 Total (Jul-Sep 2023) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *Resources nil responses are not included in figures Appeal's Panel From: 1 July - 30 September 2024 Appeal's Panel Total 0 Not Upheld Total Appeals Pending 0 Withdrawn 0 Resource Resource Action Taken Upheld Upheld in Part Manual/ Craft Outcome of Disciplinary Hearings Manual/ Craft Upheld APT&C Upheld in Part Teachers % Held within 6 Weeks No of Appeals No Action APT&C 4-6 6+3Teachers Total No of Disciplinary Hearings 000 Appendix 11 Outcome of Appeals Not Upheld From: 1 July - 30 September 2024 comparison with 1 July - 30 September 2023 Appeals pending to date Record of Disciplinary Hearings No of weeks to convene Disciplinary Hearing Total 54
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Appendix 12a Record of Grievances From: 1 July - 30 September 2024 comparison with 1 July - 30 September 2023 Grievances No of Grievances No Resolved at Stage 1 No Resolved at Stage 2 No Resolved at Stage 3 Still in Process Total (Jul-Sep 2024) 5 0 2 0 3 Total (Jul-Sep 2023) 0 0 0 0 0 Dignity at Work From: 1 July - 30 September 2024 comparison with 1 July - 30 September 2023 Dignity at Work No of Incidents No Resolved at Informal Stage No Resolved at Formal Stage No of Appeals Appeals in Process Still in Process Total (Jul-Sep 2024) 10 0 1 0 0 9 Total (Jul-Sep 2023) 5 0 1 0 0 4 55
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Appendix 12b Referrals for Workplace Mediation As at September 2024 Workplace Mediation Jul-24 Aug-24 Sep-24 No of Referrals 0 1 0 *No of Successful Cases 0 0 0 *No of Unsuccessful Cases 0 0 0 No of cases unsuitable for mediation 0 0 1 Workplace Mediation Jul-23 Aug-23 Sep-23 No of Referrals 0 0 1 *No of Successful Cases 0 0 0 *No of Unsuccessful Cases 0 0 0 No of cases unsuitable for mediation 1 1 0 *successful/unsuccessful case outcomes may be shown outwith the month they were referred. 56
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Appendix 13 From 1 July - 30 September 2024 Reason for leaving Community and Enterprise Education Finance and Corporate Housing & Technical Social Work Total % Career Advancement 1 0 0 0 0 1 33% Moving outwith area 0 1 0 0 0 1 33% Other 1 0 0 0 0 1 33% Number of exit interviews conducted 2 1 0 0 0 3 Total no. of leavers per Resource eligible for an exit interview 68 107 4 18 22 219 % of leavers interviewed 3% 1% 0% 0% 0% 1% From 1 July - 30 September 2023 Number of exit interviews conducted 17 28 3 6 19 73 Total no. of leavers per Resource eligible for an exit interview 57 92 9 16 38 212 % of leavers interviewed 30% 30% 33% 38% 50% 34% * Note these totals include temporary employees Analysis of leavers and exit interviews 57
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Appendix 14 Applied Interviewed Appointed % of Applicants interviewed % of Applicants appointed % of Interviewees appointed 2013 567 152 28% 8% 27% 826 201 39 24% 5% 19% 1182 352 103 30% 9% 29% 62 20 3 32% 5% 15% 1684 436 104 26% 6% 24% 317 120 37 38% 12% 31% 1754 512 139 29% 8% 27% 232 41 2 18% 1% 5% 18 4 1 22% 6% 25% Applied Interviewed Appointed % of Applicants interviewed % of Applicants appointed % of Interviewees appointed 4364 1740 313 40% 7% 18% 1328 476 80 36% 6% 17% 3033 1048 187 35% 6% 18% 185 86 10 46% 5% 12% 3424 1282 212 37% 6% 17% 1314 376 64 29% 5% 17% 3750 1414 259 38% 7% 18% 572 258 10 45% 2% 4% 25 15 0 60% 0% 0% Recruitment Monitoring Analysis of Gender, Disability, Ethnicity and Age From : 1 July - 30 September 2024 Total Number of applications received: 2048 Total Number of Equal Opportunities Monitoring forms received: 2013 Total Number of posts recruited for: 268 Total Number of appointments: 167 Gender / Disability / Age Total EO Forms Received Total No of Male Applicants Total No of Female Applicants Total No of Disabled Applicants Total No of applicants aged under 50 Total No of applicants aged over 50 Total No of White applicants Total No of Black/Ethnic minority applicants* Total No of Veteran applicants *Black/Ethnic Minority applicants includes Mixed, Asian, Black and other backgrounds. From : 1 July - 30 September 2023 Total Number of applications received: 4694 Total No of applicants aged under 50 Total Number of Equal Opportunities Monitoring forms received: 4364 Total Number of posts recruited for: 524 Total Number of appointments: 361 Total No of applicants aged over 50 Total No of White applicants Total No of Black/Ethnic minority applicants* Total No of Veteran applicants *Black/Ethnic Minority applicants includes Mixed, Asian, Black and other backgrounds. Gender / Disability / Age Total EO Forms Received Total No of Male Applicants Total No of Female Applicants Total No of Disabled Applicants 58
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Resource Total F/T P/T F/T P/T Total Chief Officer Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher Community & Enterprise Resources 3173 1237 275 233 1428 2245.16 5.00 1531.38 382.28 258.25 46.55 16.70 0.00 5.00 0.00 Education - Others 3246 117 103 613 2413 2352.33 5.00 1089.86 999.77 134.44 46.00 10.00 0.00 62.46 4.80 Education - Teachers 3885 691 80 2189 925 3498.55 0.00 0.00 0.00 0.00 0.00 1.00 0.00 4.60 3492.95 Finance & Corporate Resources 772 183 14 364 211 701.50 8.00 90.61 326.03 202.14 51.72 23.00 0.00 0.00 0.00 Housing & Technical 1268 779 25 332 132 1208.19 3.00 193.51 631.52 341.56 29.60 9.00 0.00 0.00 0.00 Social Work Resources 2689 195 207 988 1299 2354.75 3.00 323.31 1441.76 494.47 59.30 32.91 0.00 0.00 0.00 8861.93 (excluding Teachers) Total All Staff 15033 3202 704 4719 6408 12360.48 24.00 3228.67 3781.36 1430.86 233.17 92.61 0.00 72.06 3497.75 Resource Total F/T P/T F/T P/T Total Chief Officer Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher Community & Enterprise Resources 2993 1112 273 198 1410 2074.37 5.00 1412.35 348.58 244.59 43.55 15.30 0.00 5.00 0.00 Education - Others 3311 128 101 661 2421 2416.57 5.00 1179.23 962.79 146.09 46.00 10.60 0.00 62.06 4.80 Education - Teachers 3880 696 80 2181 923 3492.85 0.00 0.00 0.00 0.00 0.00 1.00 0.00 6.60 3485.25 Finance & Corporate Resources 816 192 15 387 222 743.11 6.00 97.71 353.48 210.14 52.78 23.00 0.00 0.00 0.00 Housing & Technical 1273 787 24 330 132 1213.09 3.00 188.11 630.82 352.56 29.60 9.00 0.00 0.00 0.00 Social Work Resources 2696 202 203 994 1297 2359.33 3.00 327.92 1441.30 496.46 56.30 34.35 0.00 0.00 0.00 8806.47 (excluding Teachers) Total All Staff 14969 3117 696 4751 6405 12299.32 22.00 3205.32 3736.97 1449.84 228.23 93.25 0.00 73.66 3490.05 Male Female Salary Band Total Number of Employees Full-Time Equivalent Male Female Salary Band Analysis by Resource Quarterly Joint Staffing Watch Return : Number Employed On 11 June 2024 Analysis by Resource QUARTERLYJOINT STAFFING WATCH RETURN : NUMBER EMPLOYED ON 9 MARCH 2024 Appendix 15 Total Number of Employees Full-Time Equivalent 59
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Treasury Management Activity - 2024/2025 Second Quarter Review 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide a second quarter review of Treasury Management Activity for 2024/2025 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the contents of this report be noted. [1recs] 3. Background 3.1. In order to provide members with information on the Council’s Treasury Management activities, a quarterly report is presented to this Committee. This report covers the period 1 April 2024 to 30 September 2024. 4. Market Performance 4.1. At the time of writing the base rate was 5.00% and the Bank of England Asset Purchase Programme (commonly referred to as its policy of quantitative easing) was £659bn. The Council’s Treasury Management Advisers are predicting that the base rate will fall to 4.50% by December 2024 and to 4.00% by March 2025. 5. Debt Management and Borrowing Strategy 5.1. The Council began the year with debt of £1,034.532 million with fixed rate loans from the Public Works Loans Board (PWLB) making up 97.25% of the debt. 5.2. Table 1 shows the movement in borrowing from 1 April 2024 to 30 September 2024. Table 1 – Movement in Borrowing to 30 September 2024 Balance as at 01/04/2024 £m New Borrowing £m Debt Maturing £m Debt Repaid £m Balance as at 30/09/2024 £m Increase/ Decrease in Borrowing £m Short Term Borrowing 53.770 0.000 (46.486) 0.00 7.284 (46.486) Long Term Borrowing 980.762 0.000 0.00 0.00 980.762 0.000 TOTAL BORROWING 1,034.532 0.000 (46.486) 0.00 988.046 (46.486) 7 61
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5.3. Short term borrowing reflects borrowing which will mature in the coming year, or where the debt can be recalled in the coming year. 5.4. In 2012/2013, HM Treasury introduced a “certainty rate” to enable eligible local authorities to access cheaper PWLB funding, with a 20 basis point (0.20%) reduction on the standard rate. South Lanarkshire Council has access to this reduced rate. 5.5. The Council has an expected funding requirement of £163.849 million for 2024/2025. 5.6. The Executive Director (Finance and Corporate Resources), under delegated powers, will continue to take the most appropriate form of borrowing depending on the prevailing interest rates at the time, taking into consideration the differential between investment earnings and debt costs that remains high. 5.7. No borrowing has been taken so far in the current financial year. Instead, cash balances have been used to fund capital spend. Borrowing to replace these balances will be required going forward. 6. Investment Activity 6.1. On a daily basis, the Treasury Management section within Finance and Corporate Resources manages the Council’s cash balances. These balances can result from day-to-day cash flow situations where income has been received before expenditure has taken place, and from the balances held in earmarked reserves for use at a later date. It is the responsibility of the section to manage these funds. The primary consideration when making deposits is the security of funds. Secondary to this, consideration is given to ensuring we have access to funds when necessary, and that these funds are working as well as they can for the Council. 6.2. The Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy Report for 2024/2025 was approved by South Lanarkshire Council on 21 February 2024. This included details of permitted investments for the Council. 6.3. Prior to depositing funds with any bank or building society, checks are made with the Council’s treasury adviser, Link Asset Services, that the institution is considered safe and that any deposit conforms to their recommended time duration as determined by their Rating Methodology. This methodology uses credit ratings, rating watches and outlooks and credit default swap (CDS) prices to establish a suggested time duration for deposits. 6.4. Deposits made in the period 1 April 2024 to 30 September 2024 totalled £915.025 million. This is the cumulative deposits placed over this period. This is broken down per sector and institution in Table 2. 81.53% of these deposits were made with the UK Government through the Debt Management Office (DMO) deposit facility. 6.5. In order to manage their cash flow over the short term, local authorities, as part of normal treasury management activity, will place money on deposit with other local authorities. Deposits placed with other local authorities account for 12.57% of deposits. The remaining 5.90% was placed in instant access call accounts with Bank of Scotland. 62
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Table 2 – Investment Activity 1 April 2024 to 30 September 2024 Counterparty Deposit Totals (£m) % of Total Deposits Average Interest Rate Deposits in UK Government Debt Management Account Deposit Facility 746.050 81.53% 5.12% Total Deposits in UK Government 746.050 81.53% 5.12% Deposits in UK Local Authorities 115.000 12.57% 5.12% Deposits in UK Banks and Building Societies: Bank of Scotland 53.975 5.90% 5.13% Total Deposits in UK Banks and Building Societies 53.975 5.90% 5.13% Total Deposits 01/04/2024 to 30/09/2024 915.025 100.00% 5.12% 6.6. The average interest rates achieved from the deposits are also shown in Table 3. Interest rates achievable for deposits have been decreasing since the base rate was cut in August 2024. There is still a differential between these and the rates at which the Council can borrow. 6.7. Actual deposits as at 30 September 2024 totalled £85.350 million. 7. Management of Risk 7.1. It is recognised that no Treasury Management activity is without risk and practices are put in place in order to limit risk. As noted in section 6.2, the Treasury Management Strategy was approved in February 2024 and set a framework for Treasury Management activities in 2024/2025. It also set limits on debt and investments in order to mitigate risks. 7.2. The Annual Investment Strategy for 2024/2025, also approved in February 2024, included details on how risk would be managed for all permitted investments. This included criteria for placing deposits with the Debt Management Office (DMO), UK Local Authorities, Banks and Building Societies and Money Market Funds. 7.3. Part of the criteria for counterparties is meeting minimum credit ratings with the three main rating agencies. A credit rating evaluates the credit worthiness of an organisation. It is an evaluation made by a credit rating agency of the organisation’s ability to pay back the debt and the likelihood of default. 7.4. Tables 3 to 5 show a breakdown of deposits with details of the credit ratings of banks and building societies used from 1 April 2024 to 30 September 2024. Deposits with the DMO are with the UK Government and so have a rating equivalent to the UK’s sovereign rating. Deposits with local authorities are considered to be of very high credit quality. 63
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Table 3 – Fitch Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (AA-) 746.050m 81.53% Deposits with Local Authorities 115.000m 12.57% A+ F1 53.975m 5.90% Total 915.025m 100.00% Table 4 – Moody’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (Aa3) 746.050m 81.53% Deposits with Local Authorities 115.000m 12.57% A1 P-1 53.975m 5.90% Total 915.025m 100.00% Table 5 – Standard and Poor’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (AA) 746.050m 81.53% Deposits with Local Authorities 115.000m 12.57% A+ A-1 53.975m 5.90% Total 915.025m 100.00% 7.5. The tables above show that 94.10% of deposits were made with counterparties of very high credit quality (DMO/UK Government and other local authorities). The remaining 5.90% were deposits in instant access accounts with Bank of Scotland. 7.6. The graph at Appendix 1 shows the duration of deposits made from 1 April 2024 to 30 September 2024. The graph shows that, since 1 April 2024, all deposits have been made for 1 year or less. The maximum maturity period of 113 days was for a deposit of £10.000 million to a local authority. 8. Next Quarter Investment Plans 8.1. The current investment framework will be continued in the next quarter. Deposits will continue to be placed with the institutions where their ratings are consistent with the Council’s approved criteria. Deposits will also continue to be placed with the DMO and UK local authorities. 8.2. Treasury Bills will be used when they return a higher yield than deposits in the DMO for the same, very low risk. 8.3. We will continue to work with our Treasury Management Advisers, Link, to ensure we gain all information available on counterparties before any deposits are made. 64
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9. Treasury Management Indicators 9.1. The purpose of these indicators is to contain the activity of the treasury function within certain limits, thereby managing risk and reducing the impact of an adverse movement in interest rates. However, if these are set to restrictive limits, they will impair the opportunities to reduce costs/improve performance. The indicators are detailed in sections 9.2 to 9.5. 9.2. Limits for External Debt: The operational and authorised limits for external debt for 2024/2025 were set in the Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy 2024/2025 approved by South Lanarkshire Council on 21 February 2024. These are shown in Table 6, along with a column showing the difference between the actual debt level and the limits (headroom). Table 6 – Limits for External Debt Estimate as per 2024/25 Strategy Minimum Headroom to Limits in period Headroom as at 30/09/2024 £m £m £m Operational Limit for external debt 1,410.000 375.468 421.954 Authorised Limit for external debt 1,430.000 395.468 441.954 9.3. The indicator shows that we have not breached the operational and authorised limits to 30 September 2024. There has been a minimum level of headroom of £395.468m between actual and authorised level for external debt in the period to 30 September 2024. 9.4. Limits on Maturity Structure: By setting limits on the maturity structure of borrowing, the exposure to large concentrations of debt needing to be replaced at the same time in the future at currently unknown rates can be limited. This effectively places a limit on exposure to longer term interest rate movement. This is shown in Table 7. Table 7 – Limits on Maturity Structure Maturity Structure of Borrowing Upper Limit Lower Limit Maximum for period to 30/09/24 Actuals as at 30/09/24 Under 12 months 30% 0% 0.74% 0.74% 12 months and 24 months 40% 0% 12.11% 12.11% 24 months and 5 years 50% 0% 3.92% 3.92% 5 years and 10 years 60% 0% 21.41% 21.41% 10 years and 20 years 60% 0% 19.13% 19.13% 20 years and 30 years 70% 0% 15.36% 15.36% 30 years and 40 years 80% 0% 27.33% 27.33% 40 years and 50 years 90% 0% 0.00% 0.00% 50 years and above 90% 0% 0.00% 0.00% 9.5. The indicator shows that the upper limits for all maturity profiles have not been breached to 30 September 2024. 65
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10. Employee Implications 10.1. There are no employee implications. 11. Financial Implications 11.1. The current rate of interest receivable remains relatively low but has increased over recent months. Any deposit interest received offsets Loan Charges made to the Council’s Revenue budget. 11.2. The costs of borrowing for capital expenditure have been built into the long-term Revenue Budget Strategy. 12. Climate Change, Sustainability and Environmental Implications 12.1. There are no implications for climate change or sustainability in terms of the information contained in this report. 12.2. There is also no requirement to carry out an environmental impact assessment in terms of the information contained within this report. 13. Other Implications 13.1. Section 7 of this report provides details of how investment risk is managed. 14. Equality Impact Assessment and Consultation Arrangements 14.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 14.2. There is no requirement to carry out any consultation in terms of the information provided in this report. Jackie Taylor Executive Director (Finance and Corporate Resources) 3 October 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy 2024/2025, South Lanarkshire Council, 21 February 2024 Treasury Management Activity – 2024/2025 First Quarter Review, Finance and Corporate Resources Committee, 21 August 2024 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Head of Finance Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 66
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Appendix 1 67
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Prudential Indicators, Treasury Management Activity and Annual Investment Report 2023/2024 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide an overview of the Prudential Code Indicators and Treasury Management Activity for 2023/2024 allow Committee to scrutinise the Annual Investment Report for 2023/2024 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the Treasury Management Activity Report for 2023/2024 (Section 4 and Appendix 1), be noted; (2) that the 2023/2024 Treasury Management and Prudential Code Indicators (Section 5 and Appendix 2), be noted; (3) that the Treasury Management Activity Report (Appendix 1) and the Treasury Management and Prudential Indicators (Appendix 2) be referred to the Executive Committee for noting; (4) that the 2023/2024 Annual Investment Report (Appendix 3) be endorsed; and (5) that the 2023/2024 Annual Investment Report (Appendix 3) be referred to the Executive Committee prior to submission to the Council for formal approval in line with The Local Government Investments (Scotland) Regulations 2010. 3. Background 3.1. The Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice for Treasury Management requires councils to prepare an annual report on their Treasury Management Activities. The report covering the Council’s Treasury Management Activity during 2023/2024 is summarised in Section 4 of the report and provided in detail in Appendix 1. 3.2. The Council’s capital programme is partly funded by planned borrowing. The CIPFA Prudential Code provides a framework to assist the management of the financial implications of borrowing and helps to demonstrate that the borrowing is both affordable and prudent. The Code requires councils to prepare a series of financial indicators that demonstrate affordability, prudence and sustainability with regard to capital financing decisions. 8 69
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3.3. Estimates of these indicators are reported to the Finance and Corporate Resources Committee at the start of each year, with selected indicators then reported on an actual basis at the end of the year. The year end indicators for 2023/2024 are noted in Section 5 of the report (detail in Appendix 2). 3.4. The Local Government Investments (Scotland) Regulations 2010 require local authorities to prepare an Annual Investment Strategy before the start of the financial year and an Annual Investment Report after the financial year end. Both documents are required to be approved by full Council. 3.5. The Annual Investment Report for 2023/2024 is summarised in Section 6 of this report (detail in Appendix 3). 3.6. The Annual Investment Strategy for 2023/2024, approved in February 2023, recognised that any investment activity carries an element of risk. Appendix 4 details the investments that the Council were permitted to use in 2023/2024, the associated risks and the controls and limits that were put in place to mitigate these risks. 3.7. The figures contained within this report are taken or calculated from South Lanarkshire Council’s Annual Accounts for 2023/2024. 4. Treasury Management Activity 2023/2024 4.1. Appendix 1 details the Treasury Management Activity for 2023/2024. 4.2. The Council ended the year with borrowing of £1,034.532 million with fixed rate loans from the Public Works Loans Board (PWLB) making up 98.58% of the debt. Fixed rate loans help to build in certainty to the calculation of future loan charges which forms a significant element of the Council’s long term Revenue Budget Strategy. 4.3. The Council’s pooled interest rate for 2023/2024 was 4.12% (3.59% in 2022/2023), with an expenses rate of 0.07%. The overall cost of borrowing will increase as debt levels increase to fund the capital programme. 4.4. Total deposits at the end of the year totalled £13.475 million with the level varying throughout the year due to the timing of expenditure and receipts. 4.5. During 2023/2024, the Council placed £1,599.249 million of deposits on a cumulative basis. All deposits made by the Council were in line with approved lending limits and credit rating criteria. The level of investment return was £10.202 million. 5. Treasury Management and Prudential Code Indicators – 2023/2024 5.1. The Council is required by the Prudential Code to report the actual prudential indicators after the closure of the financial year. Appendix 2 details the indicators for 2023/2024. 5.2. The General Fund Capital Expenditure for 2023/2024 was £58.094 million which is £20.202 million less than estimated in the Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy report presented to South Lanarkshire Council in February 2024. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 26 June 2024. 70
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5.3. The Housing Revenue Account Capital Expenditure in 2023/2024 was £62.240 million which is £5.203 million less than the estimate reported to South Lanarkshire Council in February 2024. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 26 June 2024. 5.4. The Council’s gross borrowing position for 2023/2024 was £1,206.568 million. This consists of external borrowing of £1,034.532 million and the PPP Finance Lease Liability of £172.036 million. Gross borrowing is less than the capital financing requirement of £1,409.244 million due to the fact that no long-term borrowing was taken during 2023/2024. 5.5. The Council used its cash balances available in lieu of the remainder of its borrowing requirement for the year. Borrowing before cash was required would incur a cost of carry as the interest rates achievable on deposits continue to be less than the interest rates on borrowing. 5.6. By borrowing only £86.700 million, interest costs for 2023/2024 were reduced and savings from this used to support the Revenue Budget Strategy going forward. 5.7. The Capital Financing Requirement for the General Fund is £11.186 million lower than forecast and for HRA is £8.655 million lower than forecast. For both the General Fund and HRA this is due to changes in the borrowing required to fund the capital programmes reflecting the timing of expenditure and movements in other sources of funding. 5.8. One indicator covers borrowing and sets limits on the level of borrowing that the Council can have. The Operational Boundary is the expected borrowing position, but it can vary due to changes in the cash flow and temporary breaches are acceptable. In contrast, the Authorised Limit represents the maximum level of debt the Council can afford and should not be breached. The Council remained within both the Operational Boundary and Authorised Limit for gross debt during 2023/2024. 6. Annual Investment Report – 2023/2024 6.1. The Council is required by The Local Government Investments (Scotland) Regulations 2010 to prepare an Annual Investment Report after the financial year end. The Annual Investment Report for financial year 2023/2024 is detailed in Appendix 3 and summarised below. 6.2. During 2023/2024, the Council placed £1,599.249 million of deposits on a cumulative basis. All deposits made by the Council were in line with approved lending limits and credit rating criteria. £1,551.220 million (97.00%) of deposits were made with counterparties of very high credit quality (UK Government – Debt Management Account Deposit Facility (DMADF), and other local authorities). The remaining £48.029 million (3.00%) was deposited in instant access call accounts with Bank of Scotland and Royal Bank of Scotland. 6.3. In order to manage liquidity risk, the Council held an average of £5.215 million in bank accounts with instant access. 6.4. No borrowing in advance was taken during 2023/2024. 7. Employee Implications 7.1. None 71
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8. Financial Implications 8.1. The financial impact from treasury activity and borrowing for capital expenditure has been built into the long-term Revenue Budget Strategy. 8.2. In 2023/2024 the amounts charged to the General Fund in relation to debt (loan charges) totalled £41.750 million. HRA loan charges totalled £9.880 million. These costs were met from within approved Revenue Budgets. 9. Climate Change, Sustainability and Environmental Implications 9.1. There are no implications for climate change or sustainability in terms of the information contained in this report. 9.2. There is also no requirement to carry out an environmental impact assessment in terms of the information contained within this report. 10. Other Implications 10.1. South Lanarkshire Council recognises that any Treasury Management Activity will carry an element of risk. It is important that risk is identified and controls put in place to limit those risks. 10.2. The Council has complied with all of the relevant statutory and regulatory requirements which limit the levels of risk associated with its treasury management activities. In particular, its adoption and implementation of both the Prudential Code and the CIPFA Treasury Management Code of Practice means both that its capital expenditure is prudent, affordable and sustainable, and its treasury practices demonstrate a low-risk approach. 10.3. The CIPFA Treasury Management Code of Practice adopted by the Council, places Credit and Counterparty risk at the forefront of treasury risks. 10.4. South Lanarkshire Council recognises that any investment activity will carry an element of risk. It is important that risk is identified and controls put in place to limit and manage those risks. 10.5. Appendix 4 to this report details the investments that the Council was permitted to use in 2023/2024, the associated risks and the controls and limits that were put in place to mitigate these risks. 11. Equality Impact Assessment and Consultation Arrangements 11.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 11.2. There is no requirement to undertake an integrated impact assessment or any consultation in relation to the content of the report. Jackie Taylor Executive Director (Finance and Corporate Resources) 8 October 2024 Link(s) to Council Values/Priorities/Outcomes Value: Accountable, effective, efficient and transparent 72
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Previous References Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy 2023/2024, South Lanarkshire Council, 22 February 2023 Treasury Management Activity – 2022/2023 Third Quarter Review, Finance and Corporate Resources Committee, 15 February 2023 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Head of Finance (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 73
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Appendix 1 Treasury Management Activity Report 2023/2024 1. Background 1.1. The Annual Treasury Management Activity Report is a requirement of the Council’s reporting procedures and covers 2023/2024. The report also includes the Treasury Management Indicators for 2023/2024 in accordance with the requirements of the CIPFA Code of Practice for Treasury Management in the Public Sector and actual Prudential Indicators for 2023/2024 in accordance with the requirements of the Prudential Code. 2. Introduction 2.1. The Council’s treasury management activities are regulated by a variety of professional codes and statutes and guidance: 2.2. The Local Government in Scotland Act 2003 (the Act), which provides the powers to borrow and invest as well as providing controls and limits on this activity; The Act permits the Scottish Ministers to set limits either on the Council or nationally on all local authorities restricting the amount of borrowing which may be undertaken (although no restrictions were made in 2009/10); Statutory Instrument (SSI) 29 2004, requires the Council to undertake any borrowing activity with regard to the CIPFA Prudential Code for Capital Finance in Local Authorities, and therefore to operate the overall treasury function with regard to the CIPFA Code of Practice for Treasury Management in the Public Services; This Council has adopted the CIPFA Code of Practice for Treasury Management in the Public Sector and operates its treasury management service in compliance with this Code and the above requirements. These require that the prime objective of treasury management activity is the effective management of risk, and that its borrowing activities are undertaken in a prudent, affordable and sustainable basis. 2.3. The CIPFA Code of Practice requires reports to be made on its treasury management policies, practices and activities, including, as a minimum, an annual strategy and plan in advance of the year, a mid-year review and an annual report after its close. 2.4. This report will cover: A summary of the strategy agreed for 2023/2024; The Council’s treasury position at 31 March 2024; Economic Background for 2023/2024; Actual Performance During 2023/2024; Risk Management; and Treasury Management and Prudential Indicators (see Appendix 2) 3. The Strategy Agreed for 2023/2024 3.1. At the time of determining the strategy for 2023/2024, economic and interest rate forecasting remained difficult with many external influences weighing on the UK. 3.2. Public Works Loans Board (PWLB) rates and gilt yields were expected to remain volatile as markets reacted to emerging economic data, with the overall long-term trend being for them to decrease slightly during 2023/2024. 74
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3.3. The differential between investment earnings and debt costs was expected to remain high throughout 2023/2024. This “cost of carrying” would have to be considered if borrowing was taken before our cash flow required funds as returns on deposits were expected to remain lower than the rate paid on borrowing. 3.4. The borrowing strategy adopted was to monitor interest rates, undertake planned borrowing at the best time, while investigating opportunities where possible to improve the management of our existing loan portfolio. 3.5. The main consideration when investing surplus funds was to be the security of the transaction. Liquidity would then be considered, and investments would only be made for prudent time periods. Only after considering security and liquidity would the yield to be gained from the investment be considered. 3.6. The Executive Director of Finance and Corporate Resources would apply appropriate restrictions to the Council’s counterparty list to ensure the security of deposits. 4. Treasury Position at 31 March 2024 4.1. The Council began the year with debt of £1,036.302m of which 99.18% was fixed rate loans from the PWLB. By 31 March 2024, debt had decreased to £1,034.532m with fixed rate loans from the Public Works Loans Board (PWLB) making up 98.58% of the debt. 4.2. Table 1 below shows the movement in borrowing to 31 March 2024. Table 1 – Movement in Borrowing from 1 April 2023 to 31 March 2024. Balance as at 01/04/2023 £m New Borrowing £m Debt Maturing £m Debt Repaid £m Balance as at 31/03/2024 £m Increase/ Decrease in Borrowing £m Short Term Borrowing 21.770 20.000 (21.770) 0.000 20.000 (1.770) Long Term Borrowing 1,014.532 0.000 00000 0.000 1,014.532 0.000 TOTAL BORROWING 1,036.302 20.000 (21.770) 0.000 1,034.532 (1.770) 4.3. The Treasury Position at the 31 March 2024 compared with the previous year is shown in Table 2 overleaf: 75
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Table 2 – Treasury Position as at 31 March 2024 31 March 2024 31 March 2023 Principal Average Rate Principal Average Rate Fixed PWLB £1,006.032m 3.80% £1,027.802m 3.80% Total Fixed Rate Debt £1,006.032m 3.80% £1,027.802m 3.80% Market £8.500m 5.46% £8.500m 5.46% Temporary Borrowing £20.000m 7.20% £0.000m 0.00% Total Variable Rate Debt £28.500m 6.68% £8.500m 5.46% Total Debt £1,034.532m 3.88% £1,036.302m 3.81% Total Deposits £13.475m 5.19% £160.770m 3.96% 4.4. The gross debt position decreased by £1.770m from 31 March 2023, accounted for by repayments of PWLB (£21.770m) offset by new temporary borrowing (£20.000m) taken from a local authority for cashflow purposes on 25 March 2024. 4.5. The Council’s pooled cost of borrowing is measured on an equated debt basis which takes account of how the Council’s capital expenditure was funded throughout the year. The pooled interest cost together with the expenses rate for 2023/2024 and the previous two years is shown in Table 3 below: Table 3 – Pooled Cost of Borrowing Year Loans Fund Pooled Rate Loans Fund Expenses Rate 2023/24 4.12% 0.07% 2022/23 3.59% 0.07% 2021/22 3.54% 0.07% 5. Economic Background for 2023/2024 5.1. The base rate began the year at 4.25%, and following a series of increases by the Bank of England ended the year at 5.25%. 5.2. Gilt yields and PWLB rates were volatile throughout 2023/2024. The average PWLB rates at the start of 2023/2024 was 4.54%. This increased to a peak of 5.79% in October 2023 before falling back to 5.06% by the 31 March 2024. 5.3. Details of significant interest rates during 2023/2024 are shown in Table 4 below. Table 4 – Significant Interest Rates Borrowing Rates Bank Base Rate 1 Year PWLB 5 Year PWLB 10 Year PWLB 20 Year PWLB 30 Year PWLB 40 Year PWLB 50 Year PWLB High 5.25% 6.36% 5.93% 5.53% 5.94% 5.96% 5.94% 5.90% Average 5.03% 5.54% 4.99% 4.96% 5.32% 5.33% 5.30% 5.26% Low 4.25% 4.65% 4.13% 4.20% 4.58% 4.58% 4.53% 4.46% 76
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6. Actual Performance during 2023/2024 6.1. Capital expenditure for the year was £120.334m. During 2023/2024 no long term borrowing was taken. 6.2. The Council had a borrowing requirement of £222.676m for 2023/2024, including £166.307m carried over from previous years. 6.3. The report to South Lanarkshire Council on Service Concessions in January 2023 introduced a strategy that recognised the level of reserves and cash balances held by the council to reduce the need to borrow for this funding requirement. After taking these into account, the council had an expected borrowing requirement of £306.273m for 2023/24. 6.4. During 2023/2024, the Council placed £1,599.249 of deposits on a cumulative basis. All deposits made by the Council were in line with approved lending limits and credit rating criteria. The level of investment return was £10.202m. Further details on deposits are included in the annual investment report within this Committee paper. 7. Risk Management 7.1. The Council has complied with all of the relevant statutory and regulatory requirements which limit the levels of risk associated with its treasury management activities. In particular, its adoption and implementation of both the Prudential Code and the CIPFA Treasury Management Code of Practice means both that its capital expenditure is prudent, affordable and sustainable, and its treasury practices demonstrate a low risk approach. 7.2. Investment Risk The main consideration when investing surplus funds is the security of the transaction. Through adoption on the CIPFA Code of Practice and through the Councils Annual Investment Strategy the Council mitigates risks associated with all our permitted investments. 7.3. Interest Rate Risk The Council’s capital programme is funded in part by borrowing. Consideration has always been given to the optimum time to borrow funds to ensure cash flow is maintained, that any risks of increasing borrowing interest rates are minimised and that takes into account the level of cash balances available to the Council. 8. Treasury Management and Prudential Indicators 8.1. The Treasury Management and Prudential Indicators are detailed in Appendix 2 to this report. 77
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Appendix 2 Treasury Management and Prudential Indicators 2023/2024 1. Treasury Management Indicators 2023/2024 1.1. The Treasury Management Code includes Treasury Management Indicators which are to be reported alongside the Treasury Strategy. 1.2. The purpose of these is to contain the activity of the treasury function within certain limits, thereby managing risk and reducing the impact of an adverse movement in interest rates. The indicators are detailed below. 2. Maturity Structure of Borrowing 2.1. By setting limits on the maturity structure of borrowing, the exposure to large concentrations of fixed rate debt needing to be replaced at the same time in the future at currently unknown rates can be limited. This effectively places a limit on exposure to longer term interest rate movement. Maturity Structure of Borrowing Upper Limit Lower Limit Maximum for period to 31/03/24 Actuals as at 31/03/24 Under 12 months 30% 0% 2.10% 0.00% 12 months and 24 months 30% 0% 3.33% 3.33% 24 months and 5 years 50% 0% 25.66% 25.66% 5 years and 10 years 60% 0% 33.13% 33.13% 10 years and 20 years 60% 0% 4.29% 4.29% 20 years and 30 years 70% 0% 11.35% 11.35% 30 years and 40 years 80% 0% 22.24% 22.24% 40 years and 50 years 90% 0% 0.00% 0.00% 50 years and above 90% 0% 0.00% 0.00% 3. Total Principal Sums Invested for Greater Than 364 days 3.1. The investment regulations introduced by the Scottish Government allowed the Council to invest for periods in excess of 364 days. The Treasury Management Code requires local authorities to set an upper limit for each forward financial year period for investments longer than 364 days. The purpose is to contain the exposure to the possibility of loss that might arise as a result of having to seek early repayment of principal sums invested. 3.2. South Lanarkshire Council set a limit restricting investments for periods in excess of 364 days to no more than £10m and for no more than 5 years. 3.3. No investment was made during 2023/2024 for a period in excess of 364 days. 4. Statutory Repayment of Loans Fund Advances 4.1. The Scottish Government introduced The Local Authority (Capital Financing and Accounting) Scotland Regulations 2016 with effect from 1 April 2016. These regulations require the statutory loans fund to be administered in accordance with the 2016 Regulations, proper accounting practice and prudent financial management. 78
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4.2. The Council’s capital programmes are partly funded by planned borrowing which is advanced from the Council’s Loans Fund. Repayment of these advances is made each year and forms part of the Council’s revenue expenditure. Borrowing to fund the capital programmes therefore creates a liability to repay those advances from future years’ budgets. The Council is required to report on the commitment to repay loans fund advances. 4.3. The General Fund had an opening balance of £843.397m advances from the Loans Fund. During 2023/2024 new advances of £18.919m were made to part fund the Capital Programme, while repayments of £3.268m were made from the Council’s revenue expenditure. This left a closing balance of £859.048m to be repaid over the next 50 years. 4.4. The HRA had an opening balance of £292.693m advances from the Loans Fund. During 2023/2024 new advances of £14.516m were made to part fund the HRA Capital Programme, while repayments of £0.005m were made from the HRA. This left a closing balance of £307.204m to be repaid over the next 40 years. 4.5. The tables below show the repayment profile of the outstanding loans fund advances for both General Fund and HRA as at 31 March 2024. The tables do not include any planned borrowing that may be taken in future years to fund the ongoing capital programmes. General Fund Opening Balance New Advances Repayments Closing Balance 2023/24 843.397 18.919 -3.268 859.048 2024/25 859.048 0.000 -3.730 855.318 2025/26 – 2028/29 855.318 0.000 -31.151 824.167 2029/30 – 2033/34 824.167 0.000 -41.439 782.728 2034/35 – 2038/39 782.728 0.000 -73.732 708.996 2039/40 – 2043/44 708.996 0.000 -100.508 608.488 2044/45 – 2048/49 608.488 0.000 -128.277 480.211 2049/50 – 2053/54 480.211 0.000 -163.718 316.493 2054/55 – 2058/59 316.493 0.000 -172.602 143.891 2059/60 – 2063/64 143.891 0.000 -107.295 36.596 2064/65 – 2068/69 36.596 0.000 -29.391 7.205 2069/70 – 2073/74 7.205 0.000 -7.205 0.000 Housing Revenue Account Opening Balance New Advances Repayments Closing Balance 2023/24 292.693 14.516 -0.005 307.204 2024/25 307.204 0 -0.005 307.199 2025/26 – 2028/29 307.199 0 -33.646 273.553 2029/30 – 2033/34 273.553 0 -51.281 222.272 2034/35 – 2038/39 222.272 0 -49.027 173.245 2039/40 – 2043/44 173.245 0 -42.395 130.85 2044/45 – 2048/49 130.85 0 -45.892 84.958 2049/50 – 2053/54 84.958 0 -41.469 43.489 2054/55 – 2058/59 43.489 0 -28.421 15.068 2059/60 – 2063/64 15.068 0 -15.068 0.000 79
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4.6. The Council’s strategy for managing debt includes the early repayment of some loans within the Loans Fund. These repayments result in reduced principal and interest payments in future years and are necessary to keep loan charges affordable. 5. Prudential Code Indicators 2023/2024 5.1. The Prudential Code enables Councils to take responsibility for deciding an affordable level of borrowing to fund capital expenditure. This moves away from the previous regime through which central government gave Councils consent to borrow defined amounts for capital expenditure. 5.2. To meet the objectives of the Code, the Council is required to report a number of indicators, use those to demonstrate the affordability and sustainability of our capital plans and to show that good treasury management practice is adhered to. 6. Capital Expenditure and Borrowing Requirement indicators 6.1. Capital Expenditure 6.1.1 This indicator shows the capital expenditure for 2023/2024. The 2023/2024 estimate is also shown. Actual £ m Estimate £ m Variance £ m General Fund Capital Expenditure 58.094 78.296 -20.202 Funded by: Borrowing 18.919 30.106 -11.187 Capital receipts and grants 38.599 46.730 -8.131 Revenue contributions 0.576 1.460 -0.884 Total Funding 58.094 78.296 -20.202 HRA Capital Expenditure 62.240 67.443 -5.203 Funded by: Borrowing 14.516 23.166 -8.650 Capital receipts and grants 27.678 17.115 10.563 Revenue contributions 20.046 27.162 -7.116 Total Funding 62.240 67.443 -5.203 6.1.2. The General Fund Capital Expenditure for 2023/2024 was £58.094m which is £20.202m less than estimated in the Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy report presented to South Lanarkshire Council in February 2024. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 26 June 2024. 6.1.3. The Housing Revenue Account Capital Expenditure in 2023/2024 was £62.240m which is £5.203m less than the estimate reported to South Lanarkshire Council in February 2024. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 26 June 2024. 6.2. Councils Borrowing Requirement (the Capital Financing Requirement) 6.2.1. The Council’s Capital Financing Requirement (CFR) is the total outstanding capital expenditure which has not yet been paid for from either revenue or capital resources. It is essentially a measure of the Council’s requirement to borrow for past and present capital expenditure and is comparable to the actual borrowing taken and finance lease liability. 80
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6.2.2. The Council is required to pay off an element of the accumulated balance of borrowing every year through a charge to the revenue account. 6.2.3. Over the medium-term borrowing should only be for a capital purpose. Gross borrowing should not, except in the short term, exceed the CFR for 2023/2024 plus any additional capital financing requirement over 2024/2025 and the following two financial years. 6.2.4. The table below demonstrates that the Council has complied with this requirement. The Capital Financing Requirement for the General Fund is £11.186m lower than forecast and for HRA is £8.655m lower than forecast. For both the General Fund and HRA, this is due to changes in the borrowing required to fund the capital programmes reflecting the timing of expenditure and movements in other sources of funding. 31 March 2024 Actual £ m 31 March 2024 Estimate £ m Variance General Fund Capital Financing Requirement 1,102.027 1,113.213 -11.186 HRA Capital Financing Requirement 307.217 315.872 -8.655 Total Capital Financing Requirement 1,409.244 1,429.085 -19.841 Treasury Position as at 31 March 2024 Borrowing 1,034.532 1,014.531 20.001 PPP Finance Lease Liability 172.036 172.036 0.000 Gross Debt 1,206.568 1,186.567 20.001 6.2.5. The Council’s gross borrowing position for 2023/2024 was £1,206.568. This consists of external borrowing of £1,034.532m and the PPP Finance Lease Liability of £172.036m. Gross borrowing is less than the capital financing requirement of £1,409.244m due to the fact that no long-term borrowing was taken during 2023/2024. 6.2.6. The Council used the significant cash balances it had available in lieu of the remainder of its borrowing requirement. Borrowing before cash was required would incur a cost of carry as the interest rates achievable on deposits continue to be less than the interest rates on borrowing. 6.2.7. By not taking any long term borrowing during 2023/2024, interest costs for 2023/2024 were reduced and savings from this used to support the Revenue Budget Strategy going forward. 6.3. Limits to Borrowing Activity 6.3.1. The Operational Boundary for external debt is based on the expected maximum external debt that could be faced in the course of the year. It is set to accommodate the borrowing requirements, and also includes sufficient scope to allow for changes to the capital programme throughout the year. This limit may be breached during the year, and this would be reported in this Prudential report presented to Committee. 6.3.2. The Authorised Limit for External Debt represents a limit beyond which external debt is prohibited. It represents the level of external debt which could be afforded in the very short-term, but is not sustainable in the longer term without consideration to 81
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revenue budgets. This limit would not be breached without the Finance and Corporate Resources Committee being advised. 2023/2024 £ m Operational Limit for External Debt 1,250.000 Authorised Limit for External Debt 1,270.000 Maximum Borrowing Position During the Period 1,036.302 Operational Limit for Other Liabilities (PPP/Finance Lease) 180.000 Authorised Limit for Other Liabilities (PPP/Finance Lease) 180.000 Maximum PPP/Finance Lease Liability 179.133 6.3.3. The table demonstrates that during 2023/2024 the Council maintained its borrowing and other liabilities within their Authorised Limits and Operational Boundaries. 7. Affordability Indicators 7.1. Ratio of Financing Costs to Net Revenue Stream 7.1.1. This indicator focuses on the extent to which the Council’s net revenue budget is used for servicing debt. This is shown for both General Fund and HRA. 2023/24 Actual £ m 2023/24 Estimate £ m General Fund Ratio of Financing Costs to Net Revenue Stream (expressed as %) 4.47% 4.96% HRA General Fund Ratio of Financing Costs to Net Revenue Stream (expressed as %) 13.98% 17.16% 7.1.2. For the General Fund, the ratio is less than forecast due to lower borrowing costs and the Net Revenue Stream being higher than forecast. 7.1.3. For the HRA, the ratio is also lower than forecast due to actual borrowing costs being lower than forecast and a slight increase in income. 82
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Appendix 3 Annual Investment Report 1. Permitted Investments 1.1. During 2023/2024 South Lanarkshire Council only used the following permitted investments Deposits with the Debt Management Account Deposit Facility Deposits with UK Local Authorities Deposits with Banks and Building Societies 1.2. Deposits made in the period 1 April 2023 to 31 March 2024 totalled £1,599.249m. This is broken down per sector and institution in the table below. 81.47% of these deposits were made in the UK Government through the Debt Management Account Deposit Facility (DMADF). Counterparty Deposit Totals (£m) % of Total Deposits Average Interest Rate Deposits in UK Government Debt Management Account Deposit Facility 1,302.920 81.47% 4.93% Total Deposits in UK Government 1,302.920 81.47% 4.93% Deposits in UK Local Authorities 248.300 15.53% 5.43% Deposits in UK Banks and Building Societies Bank of Scotland 45.729 2.86% 4.68% Royal Bank of Scotland 2.300 0.14% 1.00% Total Deposits in UK Banks 48.029 3.00% 4.50% Total Deposits 01/04/2023 to 31/03/2024 1,599.249 100.00% 4.99% 1.3. The average interest rates achieved from the deposits are shown in the table above. Interest rates achievable for deposits have been increasing, however there is still a differential between these and the rates at which the Council can borrow. 1.4. Actual deposits as at 31 March 2024 totalled £13.475m. 2. Risk Management 2.1. The following minimum thresholds were set in the strategy for all deposits with banks and building societies, including Certificate of Deposits. Rating Agency Long Term Rating Maximum Deposit Fitch A- £20m Moody’s A3 £20m Standard and Poors A- £20m 83
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2.2. Prior to depositing funds with any bank or building society, checks are made with the Council’s treasury adviser, Link Asset Services, that the institution is considered safe and that any deposit conforms to their recommended time duration as determined by their Rating Methodology. This methodology uses credit ratings, rating watches and outlooks and credit default swap (CDS) prices to establish a suggested time duration for deposits. 2.3. The tables below show a breakdown of deposits with details of the credit ratings of banks and building societies used from 1 April 2023 to 31 March 2024. Deposits with the DMADF are with the UK Government and so have a very high credit rating. Deposits with local authorities are considered to be of very high credit quality despite most local authorities not having formal credit ratings. Fitch Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO/UK Government (AA-) 1,302.920m 81.47% Deposits with Local Authorities 248.300m 15.53% A+ F1 48.029m 3.00% Total 1,599.249m 100.00% Moody’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (Aa3) 1,302.920m 81.47% Deposits with Local Authorities 248.300m 15.53% A1 P-1 48.029m 3.00% Total 1,599.249m 100.00% Standard and Poor’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (AA) 1,302.920m 81.47% Deposits with Local Authorities 248.300m 15.53% A+ A-1 45.729m 2.86% A A-1 2.300m 0.14% Total 1,599.249m 100.00% 2.4. The tables show that 97.00% of deposits were made with counterparties of very high credit quality (UK Government - DMADF and other local authorities). All deposits made by the Council were in line with approved lending limits and credit rating criteria. 2.5. In order to manage liquidity risk the Council held an average of £5.215m in bank accounts with instant access. 2.6. No deposits were placed for periods in excess of 364 days. 84
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3. Borrowing in Advance 3.1. No borrowing in advance was taken during 2023/2024. 85
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Appendix 4 Investment Treasury Risks Mitigating Controls Limits Deposits with the Debt Management Account Deposit Facility This is a deposit with the UK Government and so credit risk is very low. Liquidity risk has to be considered as deposits can only be broken with the agreement of the counterparty and penalties may apply. There is no market risk as the principal sum invested is not affected by market prices. There are no mitigating controls required. There is no maximum monetary limit. A maximum term of deposit of six months as set by the Debt Management Office. Deposits with UK Local Authorities and other bodies defined as local authorities in the Local Government Scotland Act 2003 (And Equivalent English Act) These are considered to be quasi UK Government investment and as such credit risk is very low. Liquidity risk has to be considered as deposits can only be broken with the agreement of the counterparty and penalties may apply. There is no market risk as the principal sum invested is not affected by market prices. There are no mitigating controls required. The maximum deposit with any local authority will be £20m for deposits less than one year. Deposits in excess of one year will be subject to a maximum term of deposit of three years and be limited to £10m. Deposits with Banks and Building Societies These tend to be low risk but credit risk will be higher than deposits placed with the DMO or UK local authorities. Liquidity risk has to be considered as deposits can only be broken with the agreement of the counterparty and penalties may apply. There is no market risk as the principal sum invested is not affected by market prices. The counterparty selection criteria restricts lending only to high quality counterparties, measured initially by credit ratings from Fitch, Moody’s and Standard and Poors. Additional indicators of creditworthiness will also be considered prior to placing any deposits. Liquidity risk can be controlled by the use of instant access call accounts. The maximum deposit with any bank or building society will be £20m. A maximum term of deposit of 364 days. 86
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Investment Treasury Risks Mitigating Controls Limits Certificates of Deposit with Banks and Building Societies These are short to medium term dated marketable securities issued by financial institutions. These tend to be low risk investments but credit risk will be higher than deposits placed with the DMO or UK local authorities. Liquidity risk is lower than placing a deposit with a Bank or Building Society as these can be sold on the market. There is a risk of capital loss arising from selling ahead of maturity. The counterparty selection criteria restricts lending only to high quality counterparties, measured initially by credit ratings from Fitch, Moody’s and Standard and Poor’s. Additional indicators of creditworthiness will also be considered prior to using this type of instrument. Market risk would be mitigated by holding the instrument to maturity. The maximum investment with any bank or building society will be £20m. A maximum period of investment of 364 days. UK Government Gilts and Treasury Bills These are marketable securities issued by the UK Government and as such credit risk is very low. Liquidity risk is very low as there is a huge market for Gilts and Treasury Bills There is a risk of capital loss arising from selling ahead of maturity. There are no mitigating controls required for credit risk as the investment is with the UK Government. Market risk would be mitigated by holding the instrument to maturity. There is no maximum limit to investments in UK Gilts or Treasury Bills for maturities less than one year and a limit of £10m for maturities greater than one year. The maximum period of investment will be five years. AAA Rated Bonds Issued by Multilateral Development Banks These are bonds issued by supranational bodies such as the European Investment Bank or World Bank and as a result are backed by several sovereign states and as such credit risk is very low. Liquidity risk is very low as there is a large market for Supranational Bonds. There is a risk of capital loss arising from selling ahead of maturity. As the investment is effectively spread across a number of sovereign states, the Council will mitigate the credit risk of holding such bonds by considering the sovereign rating of the underlying sovereign states and only holding bonds that have a AAA rating. Market risk would be mitigated by holding the instrument to maturity. The maximum amount that will be invested in AAA Rated Bonds issued by Multilateral Development Banks is £10m. The maximum period of investment will be five years. 87
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Investment Treasury Risks Mitigating Controls Limits AAA Rated Money Market Funds Money market funds are pooled funds that invest in short-term money market instruments and other debt instruments. The underlying investments are diversified and Credit risk, liquidity risk and market risk are all very low. Investments in these MMFs are highly liquid (same day liquidity). Money Market Funds will only be used where they have obtained a AAA rating from the credit rating agencies. In addition to the credit rating, Money Market Funds will also be assessed for suitability on fund size, the strength of the custodian and the stability of invested capital. Investments in Money Market Funds will be limited to 0.5% of the Money Market Fund Balance and to no more than £10m in any one Fund. Investments in Sterling Government Money Market Funds which only invest in Sterling denominated short term debt securities issued by the UK Government will be restricted to 2% of the Money Market Fund size and to no more than £10m in any individual Money Market Fund. Loans to Third Parties These are service investments which may exhibit credit risk and are likely to be highly illiquid. Any new types of loans to third parties should be approved by Members through the appropriate Committee with full consideration of the service rationale behind the loan and the likelihood of partial or full default and the impact that this will have on service budgets. 88
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Scottish Public Pensions Agency Consultation on the Scottish Teachers’ Pension Scheme 1. Purpose of Report 1.1. The purpose of this report is to:- provide an update on the Scottish Public Pensions Agency Consultation (SPPA) on the Scottish Teachers Pension Scheme (STPS) provide an update on the Council’s response on the proposals to prospectively amend the eligibility criteria for membership of the STPS with the aim of providing clarity on who can be a member of the scheme 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the content of the report and the consultation responses on the topics referred to in section 4.2 of the report and the consultation response detailed at Appendix 1 be noted; (2) that the proposed response, as detailed in Appendix 1, be approved for submission to the SPPA by 15 November 2024; and (3) that this report is remitted to the Education Resources Committee for noting. 3. Background 3.1. The Scottish Teachers’ Pension Scheme (STPS) continues to be an integral part of the remuneration package for teachers in Scotland. The Scheme offers the security of a guaranteed income in every year of retirement for all its members, on some of the most generous terms available from a pension scheme. 3.2. Membership of the scheme is provided for individuals who are employed by a participating employer, predominantly in a teaching role, and where they are between the ages of 16 and 75. Participating employers in the STPS include Local Authorities, Colleges, Universities, Independent and Special Schools. 3.3. The STPS regulations do not expressly define what a ‘teaching role’ is, however, traditionally it is expected to be frontline teaching and for timetabled classes or lectures to take up most of the role the individual performs. 3.4. There are circumstances where other individuals may be eligible for membership of the Scheme, without necessarily being directly engaged in a teaching role. In the legacy Scottish Teachers’ Superannuation Scheme (STSS) individuals were previously described as ‘organisers’ and ‘advisers’. The legacy STSS closed to active members on1 April 2022, however the STPS does not include the term ‘adviser’. This has led to uncertainty about who can be a member of the scheme. 9 89
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3.5. Whilst scheme eligibility is clear for the majority of scheme members there are a number of areas where clarity is required and others which could usefully be updated to make them relevant to the present-day education system. For example, currently, Executive Directors, Heads of Service, Chief Officers, Quality Improvement Managers, Music Instructors, who may have been in the STPS, must join the local government pension scheme when they change roles. It is primarily those working in a non-school environment, that are affected. 3.6. This consultation document seeks views on proposals to prospectively amend the eligibility criteria for membership of the STPS with the aim of providing clarity on who can be a member of the scheme. This consultation will run for a period of 12 weeks commencing on 23 August 2024 and ending on 15 November 2024. 4. Proposed South Lanarkshire Council Response 4.1. In preparing the response to the consultation, views were sought from across Personnel Services and Education Resources. 4.2. The Council’s full proposed response to each aspect of the consultation, is detailed in Appendix 1 and covers the key areas detailed below:- eligibility for the scheme for all posts detailed in the Scottish Negotiating Committee for Teachers (SNCT) handbook the extension of eligibility for those who move from a lecturing role (where they are a member of the scheme) to a research role in Higher Education Institutions and general scheme eligibility. to consider those on secondments for inclusion for STPS eligibility? to consider senior manager posts connected to the management or supervision of teachers for STPS eligibility? do the proposed draft amending regulations deliver the policy objectives? any other considerations or evidence that the Council think should be taken into account when assessing any equality issues arising as a result of the proposed changes 5. Next Steps 5.1. Subject to approval from the Finance and Corporate Resources Committee, the response will be submitted to Scottish Government on 15 November 2024. 5.2. The SPPA have advised that the consultation will aim to inform amendments to the scheme which will provide clarity on who can be a member of the scheme. 6. Employee implications 6.1. Employees will be able to retain their pension in the one scheme, should they move roles within Education during their careers. 7. Financial implications 7.1. There are no current financial implications associated with this report. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no climate change, sustainability or environment implications arising from this report. 90
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9. Other Implications 9.1. There are no other implications arising from this report, however the Council have sought clarity from the SPPA related to them specifically detailing named posts in any amendments and if clarification or discussions have taken place or agreements made with LGPS administrators on these changes. 10. Equalities Impact Assessments and Consultation Arrangements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, and therefore no impact assessment is required. 10.2. The trade unions have been advised of this consultation and provided input into the response. Jackie Taylor Executive Director (Finance and Corporate Resources) 10 October 2024 Links to Council Values/Priorities/Outcomes Excellent employer Accountable, effective, efficient and transparent Focused on people and their needs Working with and respecting others Previous References None List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Michelle Milne – Head of Personnel Services (Finance and Corporate Resources) Ext 4330 (Tel 01698 454330) Email: michelle.milne@southlanarkshire.gov.uk 91
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Appendix 1 South Lanarkshire Council full response to the SPPA consultation CONSULTATION RESPONSE FORM CONSULTATION on the Scottish Teachers’ Pension Scheme (STPS): Proposed Changes to Membership Eligibility Criteria 1. Name/Organisation Organisation Name South Lanarkshire Council Title HR Business Manager (Operations) Surname Lang Forename Danielle 2. Postal Address Council Offices Almada Street Hamilton Postcode ML30AA Phone 01698 454132 Email Danielle.lang@southlanarkshire.gov.uk 3. Permissions - I am responding as… (please complete either sections (a), (b) and (d) or sections (c) and (d): Individual or Group/Organisation (a) Do you agree to your response being made available to the public (in Scottish Government library and/or on the Scottish Government web site)? Please state yes or no: Yes (c) The name and address of your organisation will be made available to the public (in the Scottish Government library and/or on the Scottish Government web site). (b) Where confidentiality is not requested, we will make your responses available to the public on the following basis Are you content for your response to be made available? Please state yes to one of the following: Please state yes or no: …………… Yes, make my response, name and address all available .......... or Yes, make my response available, but not my name and address Yes or Yes, make my response and name available, but not my address ……… (d) We will share your response internally with other Scottish Government policy teams who may be addressing the issues you discuss. They may wish to contact you again in the future, but we require your permission to do so. Are you content for Scottish Government to contact you again in relation to this consultation exercise? Please state yes or no: ……Yes…………………………………. 92
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ABOUT YOU I am responding … as a scheme member on behalf of an Independent School on behalf of an Employer Organisation on behalf of a Trade Union/Staff Association other (please specify) What is your gender? I am female I am male What is your working pattern? I work part-time I work full- time Not applicable 93
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CONSULTATION COMMENTS Please use this space to provide any comments on the amendments. Question 1 - Do you agree or disagree with the proposal for all posts detailed in the SNCT Handbook to be eligible for membership of the STPS? If you disagree or don’t know how to answer, please explain why. Comments: Yes, we agree that all posts detailed in the SNCT handbook should be eligible for membership of the STPS. Question 2 - Do you agree or disagree with the proposal to extend eligibility for those who move from a lecturing role (where they are a member of the scheme) to a research role in Higher Education Institutions (HEI)? If you disagree or don’t know how to answer, please explain why. Comments: Yes, we agree that the proposal should be extended to include lecturers moving to research roles. 94
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Question 3 – Do you agree or disagree with the proposal to clarify that only Lecturers in Further Education Institutions should be included for STPS eligibility? If you disagree or don’t know how to answer, please explain why. Comments: Yes, we agree with the proposal to clarify that only further education lecturers are eligible for STPS membership Question 4 – Do you agree or disagree with the proposal for secondments of up to four years to be included for STPS eligibility? If you disagree or don’t know how to answer, please explain why. Comments: Yes, we agree in principle that members should retain their STPS membership in respect of secondments however are of the opinion that consideration should be given to a lesser duration for the reason stated below. Many employers will not approve a secondment in excess of 23 months as there is a risk of establishing permanency in the seconded role and the employee having the same redundancy rights as a permanent employee. (This point was raised previously by SPDS in their 2017 paper to the scheme advisory board) 95
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Question 5 – Do you agree or disagree with the proposal for senior manager posts connected to the control or supervision of teachers to be included for STPS eligibility? If you disagree or don’t know how to answer, please explain why. Comments: Yes, we agree in principle with this proposal, however we are of the opinion that further clarity is required to confirm and refine the criteria mentioned in the consultation “for senior manager posts connected to the control or supervision of teachers”. For example, we are of the opinion that a defining list of job types/titles would assist with this intention such as Executive Directors, Heads of Service, Chief Officer, Quality Improvement Managers working in a non-school environment. This would ensure clarity and remove the risk of disparate employee groups becoming members of the STPS based on ad-hoc connections with managing employees within an education setting. A further point which requires clarity is around GTC registered Music Instructors, many of whom are currently members of the Local Government Pension Scheme. Further detail is required on this group, for instance, will they have the choice to enter either scheme? Or will it be mandatory that current LGPS members are required to transfer into the STPS based on the outcome of this consultation? Question 6 – Do you agree or disagree that the proposed draft amending regulations Deliver the policy objectives? If you disagree or don’t know how to answer, please explain why. Comments: We believe that the proposals go some way to delivering the policy objective however further clarity is required in respect of members who will be allowed to remain in STPS until they leave their current role, and we would assume that this would mean up to retirement if appropriate (mainly music instructors and quality improvement managers). Clarification is required on what discussions have taken place or agreements made with LGPS administrators on this point. 96
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Question 7 - Are there any other considerations or evidence that you think should be taken into account when assessing any equality issues arising as a result of the proposed changes? Comments: The proposals will not immediately impact those in roles which may not be eligible post implementation of the changes. However, upon leaving their current role, employees may be ineligible to remain in the scheme. As an example, a music instructor who is not GTC registered may face ejection from the scheme, whether they move roles or not. These roles have been the subject of much confusion over the years with the majority enrolled in the LGPS (due to changes in teachers’ scheme) and others in STSS, now STPS. Clarification as to any action to ‘move’ instructors into the ‘correct scheme’ would be useful especially given the majority are currently in the LGPS. Consideration could be given to extending the eligibility to include all music instructors as connected to teaching, whether GTC registered or not. There will be circumstances where a self-employed music instructor has become eligible for permanency and thus requires to be employed and enrolled in a suitable scheme. If they have been enrolled in STPS, confirmation is required on how this would be treated in the future. Please e-mail your response to SPPAPolicyConsultationResponses@gov.scot or send via mail to: STPS: Scheme Eligibility Consultation SPPA Policy 7 Tweedside Park Tweedbank Galashiels TD1 3TE The closing date for receipt of comments is 15 November 2024. 97
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Revenue Collection and Approval for Write Offs 1. Purpose of Report 1.1. The purpose of the report is to:- advise Committee of Revenue Collection performance for financial year 2024/2025 to 30 September 2024 advise Committee of the position regarding the Non-Domestic Rates Incentivisation Scheme (NDRIS) for financial year 2024/2025 seek approval for write offs 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that performance in the collection of revenue be noted; (2) that the current position in respect of NDRIS be noted; and (3) that write offs for the following be approved:- Council Tax £1,578,812.29 Non-Domestic Rates £481,405.04 BID Levy £2,859.91 Sundry Debt £26,631.90 Housing Rent and associated charges £1,281,346.90 3. Background 3.1. Responsibility for the collection of Council Tax, Non-Domestic Rates (NDR) and Sundry Debt is the responsibility of Finance and Corporate Resources. This report and the attached appendix provide information on collection performance and proposals for write off. 4. Current Collection Performance 4.1. The first table in Appendix 1 presents the collection performance for Council Tax, NDR and Sundry Debts for financial year 2024/2025. 4.2. The annual Council Tax collection target for 2024/2025 has been set at 95.5%. Council Tax collection is currently 60.19%, ahead of target by 0.06% and ahead of comparable performance in 2023/2024 by 0.07%. 4.3. Council Tax performance is reported nationally on a line by line basis, which adjusts for the impact of Scottish Water billing and collection. For information, the equivalent level of Council Tax collection at 30 September 2024 when Scottish Water debts are removed is 60.51%. 10 99
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4.4. A Non-Domestic Rates (NDR) collection target of 97.5% has been set for 2024/2025. NDR collection is currently 48.7%, equal to target and behind comparable performance in 2023/2024 by 0.2%. 4.5. The 2024/2025 annual target for Sundry Debt collection has been set at 97.5%. Sundry Debt collection to 30 September 2024 was 97.5%, equal to target and ahead of comparable performance in 2023/2024 by 0.2%. 5. Arrears Collection Performance 5.1. Arrears collection performance for Council Tax, Non-Domestic Rates and Sundry Debt is presented in the second table of Appendix 1. 5.2. The 2024/2025 arrears annual target for Council Tax has been set at £3.000 million, with collection to 30 September 2024 of £2.214 million, ahead of target by £0.293 million (9.8%) and ahead of comparable performance in 2023/2024 by £0.526 million. 5.3. The 2024/2025 arrears target for Non-Domestic Rates has been set at £2.000 million, with collection to 30 September 2024 of £2.938 million, ahead of target by £1.085 million (54.2%) and ahead of comparable performance in 2023/2024 by £1.131 million. 5.4. The 2024/2025 arrears target for Sundry Debt has been set at £10.153 million, with collection to 30 September 2024 of £6.051 million, behind target by 5.0% but behind comparable performance in 2023/2024 by 22.5%. 6. Non-Domestic Rates Incentivisation Scheme 6.1. The Non-Domestic Rates Incentivisation Scheme (NDRIS), formally known as the Business Rates Incentivisation Scheme is a Scottish Government initiative to incentivise growth of the local business tax base, with a view to increasing non- domestic rates income yields. 6.2. The Scottish Government sets annual targets for growth (buoyancy) and Councils who achieve their target retain 50% of the additional income generated above the target. The buoyancy target is a measure of the increase in the total rateable value of the non-domestic properties on the Valuation Roll (including certain categories of public undertakings). 6.3. The provisional annual buoyancy target for South Lanarkshire Council in 2024/2025 has been set by the Scottish Government at 0.9%. This is a measure of the increase in the total rateable value of the non-domestic properties on the Valuation Roll (including certain categories of public undertakings). 6.4. Performance against the NDRIS target will be reported to Committee on a quarterly basis. Buoyancy to the end of September 2024, was 0.65%. 6.5. The tax base must achieve further growth of more than 0.25% during the remaining two quarters of the financial year to secure additional income under the scheme. 7. Proposals for Write Off 7.1. Approval for write off of the following irrecoverable debts is requested from Committee. The Council has the power to write off accounts where the debtor is deceased, sequestrated, in liquidation or the debt is prescribed or where the debt is deemed uneconomical to pursue. 100
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7.2. The proposed write off of Council Tax accounts dating from 1993/1994 to 2024/2025 totals £1,578,812.29, relating mainly to prescribed debt, sequestrations and estates of the deceased. This includes the bulk write off of prescribed debt for financial year 2000/2001. 7.3. The value of accounts currently marked for write off in the Non-Domestic Rates system from rating years 2022/2023 to 2024/2025 totals £481,405.04. These debts are deemed to be irrecoverable because the debtor is in liquidation, has ceased trading or has been sequestrated. 7.4. Approval is sought for the write off of Business Improvement District (BID) Levies totalling £2,859.91, administered by the Council on behalf of the Hamilton, Carluke and Lanark BID companies. There is no financial impact on the Council for these write offs. 7.5. Following consultation and agreement with Resources, the proposed write off of Sundry Debt totals £26,631.90. Appendix 2 provides a breakdown of the proposed write-off over categories. 7.6. Approval is sought for the write off of former tenant rent arrears of £1,263,801.71 (including bulk write offs for financial years 2022/2023 and 2023/2024 for temporary accommodation), factoring arrears of £751.22 and Housing Benefit Overpayments of £16,793.97. 7.7. A full list of all debts proposed for write off is held by the Executive Director (Finance and Corporate Resources). 8. Employee Implications 8.1. None. 9. Financial Implications 9.1. Provision has been made for the financial impact of all write offs. 10. Climate Change, Sustainability and Environmental Implications 10.1. There are no direct climate change, sustainability and natural environment implications arising from this report. 11. Other Implications 11.1. The main risk associated with the Council’s revenue collection is a failure to monitor collection rates and take effective corrective action where required, resulting in a significant reduction in collection performance and Council funding. The risk is managed through monthly performance reporting and review of performance at monthly Senior Management Meetings. 11.2. There are no implications for sustainability in terms of the information contained in this report. 12. Equality Impact Assessment and Consultation Arrangements 12.1. There is no requirement to carry out an impact assessment in terms of the proposals within this report. 101
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12.2. There is no requirement to undertake any consultation in relation to the content of this report. Jackie Taylor Executive Director (Finance and Corporate Resources) 30 September 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Ambitious, self-aware and improving Previous References Finance and Corporate Resources Committee - 22 August 2024 List of Background Papers System Reports from Council Tax, Non-Domestic Rates, Sundry Debt and Academy Housing Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Craig Fergusson, Head of Finance (Transactions) Ext: 4951 (Tel: 01698 454951) E-mail: craig.fergusson@southlanarkshire.gov.uk 102
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Appendix 1 SOUTH LANARKSHIRE COUNCIL REVENUES COLLECTION FOR PERIOD ENDING 30 SEPTEMBER 2024 Annual Budget Cash Target Actual Variance % Variance Budget to 30/09/24 to 30/09/24 to 30/09/24 to Notes £000's £000's £000's £000's annual budget FINANCIAL YEAR 2024/2025 Council Tax 156,825 98,691 98,783 93 over 0.06% Non-Domestic Rates 387,069 193,336 193,241 (95) under 0.0% Sundry Debt 111,073 111,073 111,058 (15) under 0.0% ARREARS Council Tax 3,000 1,921 2,214 293 over 9.8% Non-Domestic Rates 2,000 1,853 2,938 1,085 over 54.2% Sundry Debt 10,153 6,559 6,051 (508) under -5.0% 103
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Appendix 2 BREAKDOWN OF PROPOSED SUNDRY DEBT WRITE-OFF Resource Service No. of Accounts Value (£) Housing & Technical Estates / Housing Support 20 12,813.02 Social Work Alert Community Alarm Service 141 6,509.82 Community and Enterprise Care of Gardens / Roads 20 5,129.17 Education Education General 3 938.80 Finance & Corporate Housing Benefit Overpayments 2 1,241.09 Total 186 26,631.90 104
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Reserves Strategy 1. Purpose of Report 1.1. The purpose of the report is to:- provide information on the Council’s Reserves Strategy, including their position as at the end of 2023/2024, and information on their planned use across the coming years 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the detail on the Reserves and their balance at the end of 2023/2024 (section 4), be noted; (2) that the Strategy proposed for each Reserve (section 5), be noted; and (3) that the planned use of Reserves across the coming years (section 6, Appendix 1), be noted. 3. Background 3.1. A report was presented to the Council’s Executive Committee on 26 June 2024 detailing the 2025/2026 to 2027/2028 Revenue Budget Strategy. 3.2. Section 7 of the June 2024 Revenue Budget Strategy report to Executive Committee (link above) noted that it is good practice to have a Reserves strategy. Councils can hold reserves for a number of reasons. Some reserves are earmarked for identified expenditure which will, or may occur, over the short, medium or longer term. In addition to these reserves, there are Uncommitted Reserves which help manage unforeseen circumstances. 3.3. Section 4 details the Council’s Reserves and their balance at the end of 2023/2024. The Council’s Reserves, their purpose, and also a proposed strategy is provided at section 5. 4. Reserves and their Position at end 2023/2024 4.1. It is the responsibility of the Executive Director (Finance and Corporate Resources) to advise the Council on the level of reserves it should hold and to ensure that there are clear protocols for their establishment and use. 11 105
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4.2. The Local Authority Accounting Panel (LAAP) provide guidance to the Council’s Section 95 Officer (the Executive Director of Finance and Corporate Resources), on the establishment and maintenance of local authority reserves and balances. The LAAP Bulletin 99 (Local Authority Balances and Reserves) does not prescribe a minimum level of reserves which should be held by a council. It is for the Council to consider an appropriate level of reserves taking cognisance of strategic, operational and financial risks facing the authority at a local level. It does, however, say that Reserves should not be held without a clear purpose. Audit Scotland have noted that the level of reserves that councils hold is a local decision. Section 5 of this paper will detail a Strategy for each of the Council’s Reserves. 4.3. The Council has a number of earmarked/specific reserves and one General Fund. This General Fund is split into 2 with an element being earmarked/committed (including that set aside for future budget strategies), and also an unearmarked element. Table 1 shows a summary of the Reserves position at the end of financial year 2023/2024. Table 1 – Reserves Analysis £m £000 Total Usable Reserves 133.689 Less: General Fund (earmarked/committed inc. Budget Strategies) 96.731 Repairs and Renewals 5.346 Insurance Fund 0.195 Capital Funds 5.153 Housing Revenue Account 13.221 Total Earmarked/Committed Usable Reserves 120.646 Uncommitted General Fund 13.043 4.4. Table 1 shows the level of Unearmarked/Uncommitted General Fund at £13.043 million at end financial year 2023/2024. These monies are for use in an emergency situation and are a cushion to contribute towards unanticipated pressures that the Council may face in year. The Council holds this to use in the event of unforeseen circumstances and is not available for routine operational activities. 4.5. Of this total Reserves balance, the Earmarked/Committed General Fund totals £96.731 million and this includes £69.097 million identified for use in the Council’s Revenue Budget Strategies. The Council’s Financial Strategy across 2025/2026 to 2027/2028 is predicated on the utilisation of Reserves across a number of years, with a view to managing the savings requirement in those years. The Reserves being used have either been:- budget underspends previously earmarked for use in the Budget Strategy the result of underspends generated from the Loans Fund Review as approved in June 2020 (final use in 2024/2025) reserves generated through the implementation of the Service Concession arrangements approved in November 2022 (final year 2025/2026) or the underspend generated by the reduced pension contributions during 2024/2025 and 2025/2026 as agreed at Executive Committee, November 2023 (final year of use being 2026/2027) 106
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4.6. The Other amounts within the overall total estimated Reserves at the end of 2023/2024 relate to specific Reserves such as the Housing Revenue Account, the Insurance Fund and Capital Funds. All other Reserves are held for specific purposes and the total balance of Reserves currently held is considered an appropriate level in relation to the Council’s financial position. 5. Reserves Position and Strategy 5.1. The position on each Reserve is taken in turn along with the proposed Strategy for each. 5.2. General Fund: Audit Scotland note that one of the key measures of the financial health of a body is the level of reserves held. The General Fund is the largest usable reserve and is used to fund the delivery of services. It provides a contingency fund to meet unexpected expenditure and a working balance to help cushion the impact of such expenditure. 5.3. LAAP Bulletin 99 notes that a well-managed authority, for example, with a prudent approach to budgeting should be able to operate with a level of general reserves appropriate for the risks (both internal and external) to which it is exposed. In assessing the appropriate level of reserves (Unearmarked/Uncommitted and Earmarked/Committed), a well-managed authority will ensure that the reserves are not only adequate but are also necessary. It also notes that there is a broad range within which authorities might reasonably operate depending on their particular circumstances. 5.4. In terms of financial management and sustainability, the recent Audit Scotland report for the Council noted that ‘While facing financial challenges through inflationary pressures on pay and non-pay costs as well as demand on services, the Council continues to demonstrate sound financial management maintaining general fund reserves in line with the long-term Revenue Financial Strategy’. They also note that they are ‘satisfied that reserves are being regularly reviewed to confirm that they remain at an appropriate level. However, there are ongoing sustainability challenges of using reserves to fund recurring expenditure. Difficult decisions will need to be taken in the future, with a clear plan and effective management of the Council’s reserves key to maintaining financial sustainability’. 5.5. The Council’s General Fund is split into 2 parts – Unearmarked/Uncommitted and Earmarked/Committed. Each is taken in turn along with the proposed plan to managing each Reserve. 5.6. Uncommitted General Fund: As at 31 March 2024, the Council’s uncommitted General Fund is £13.043 million. As noted in section 4.4, these monies are for use in an emergency situation and are a cushion to contribute towards unanticipated pressures that the Council may face in year. The Council holds this to use in the event of unforeseen circumstances and is not available for routine operational activities. Against an expenditure budget of £955 million for 2024/2025, this represents a 1.4% reserve. 107
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5.7. It is proposed that rather than suggesting that our Unearmarked/Uncommitted General Fund Reserve should be higher, we continue to adopt the approach suggested by the LAAP Guidance, and that a risk-based approach is applied. This would mean giving consideration to the level of the Unearmarked/Uncommitted General Fund Reserve on an annual basis, reflecting the Council’s planning and budget strategy position. The Council does not rely on Reserves to fund Revenue expenditure without a clear plan. 5.8. Earmarked General Fund: As at 31 March 2024, there are £96.731 million of earmarked general funds. Of this amount, £69.097 million has been earmarked for use in the Council’s medium term Budget Strategy (section 4.5). The remaining £27.633 million is earmarked for specific purposes including Early Learning and Childcare (£7.711 million) and multi-year Investments caried forward (£5.036 million). Other significant balances include multi-year project funding for employability (£3.499 million), Children and Family Pressures (£2.320 million), Homelessness (£1.575 million) and Ukraine Resettlement (£1.485 million). Future additions to the Reserve will be based on Resource requests to earmark funds and will be subject to Member approval (either in the Probable Outturn or the year-end report to the Council’s Executive Committee). A review will take place annually to consider the monies held in the Earmarked/Committed General Fund Reserve, alongside the Council’s revenue Budget Strategy and assessment of expenditure and funding risk areas. 5.9. Repairs and Renewals Fund: This fund has been established mainly through contributions from the revenue budget. As at 31 March 2024 the balance on this fund is £5.346 million. Contained within the overall heading of Repairs and Renewals is the Winter Maintenance Fund (£0.422 million at March 2024) and the Strategic Waste Fund, a sum of money to assist in managing the impact of uneven cash flows and contract cost increases in relation to the Council’s Waste Collection/Disposal contracts (£2.991 million). These funds have been set aside and earmarked for specific purposes. Any future additions would be based on Resource requests for specific projects and will be subject to Member approval (either in the Probable Outturn or the year-end report to the Council’s Executive Committee). 5.10. Insurance Fund: Council Resources contribute to the Insurance Fund. The fund meets the cost of premiums, paying uninsured excess settlements. The uninsured excesses on the Council’s main policies are significant meaning the vast majority of losses are self-insured with the cost of losses being met from the self-insurance fund, with insurers paying for costs above the excess on individual losses. 5.11. As at 31 March 2024, the balance on this fund is £0.195 million. The budget for insurance annually should cover costs each year, however due to the timing of claims and payments, the fund is used to manage the multiyear nature of spend and to carry forward balances. Further budget allocations have been made in future years including in the 2025/2026 to 2027/2028 Budget Strategy. 5.12. Capital Fund: The money held within the Capital Fund may be used to fund expenditure of a capital nature or to repay loan fund principal which allows flexibility in the Revenue Budget. At 31 March 2024 the balance on this fund is £5.153 million. Contained within the overall heading of the capital fund are specific funds including, IT Development Fund (£1.289 million), Education Capital Replacement Fund (£2.035 million) and the Usable Capital Receipts (£1.178 million). The Capital receipts are specifically earmarked to fund the capital programme. Any future additions to the IT Development Fund would be based on Resource requests for specific projects and will be subject to Member approval (either in the Probable Outturn or the year-end 108
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report to the Council’s Executive Committee). The Education Capital Replacement Fund is subject to the Devolved School Management arrangement for schools (these monies are specifically set aside by schools for specific spend items, from their devolved budget). 5.13. Housing Revenue Account Reserve: the balance on this fund as at 31 March 2024 is £13.221 million. These monies are ring fenced for the activities associated with the Council’s Housing stock. 6. Profiled Use of Reserves 6.1. Appendix 1 attached shows the Council’s Reserves at the end of 2023/2024, and a profile of anticipated use across the coming years. The main movements reflect the use of Reserves in the Council’s Revenue Budget Strategy, relating to the use of Reserves established following the implementation of the Service Concession arrangements and from the reduced pension contributions (as part of the Revenue Budget Strategy – Executive Committee, November 2023). 6.2. The table in Appendix 1 shows that all Reserves are committed, except the Unearmarked/Uncommitted General Fund Balance of £13.043 million. 7. Employee Implications 7.1. There are no direct employee implications from this report. 8. Financial Implications 8.1. The financial implications are summarised within the report. 9. Climate Change, Sustainability and Environmental Implications 9.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 9.2. Climate Change targets will have an impact on the Council’s future financial strategies. This will be included in future Budget Strategy papers as appropriate. 10. Other Implications 10.1. The review of reserves is a key part of understanding the Council’s level of financial resilience in light of the financial risks and challenges it faces. The financial strategy is the way in which the Council can manage a number of these key risks which directly impact on the money available to deliver Council outcomes. 10.2. We will continue to monitor and report on the reserves as appropriate. 11. Equality Impact Assessment and Consultation Arrangements 11.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 11.2. There is no requirement to undertake any consultation in terms of the information contained in this report. Jackie Taylor Executive Director (Finance and Corporate Resources) 2 October 2024 109
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Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References Executive Committee, 24 June 2024 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Jackie Taylor, Executive Director, Finance and Corporate Resources Ext: 4637 (Tel: 01698 454637) E-mail : jackie.taylor@southlanarkshire.gov.uk 110
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Appendix 1 Reserves and Their Estimated Use Across 2024/2025 to 2026/2027+ Balance at end 2023/2024 Estimated Use in 2024/2025 Estimated Transfer to Reserves in 2024/2025 Estimated Balance at end 2024/2025 Estimated Use in 2025/2026 Estimated Balance at end 2025/2026 Estimated Use in 2026/2027 and Beyond £m £m £m £m £m £m £m Earmarked / Committed Usable Reserves General Fund (earmarked/committed inc. Budget Strategies) 96.731 (54.705) 23.290 65.316 (50.261) 15.055 (15.055) Repairs and Renewals 5.346 (1.029) 0.000 4.317 (3.050) 1.267 (1.267) Insurance Fund 0.195 0.000 0.000 0.195 0.000 0.195 (0.195) Capital Funds 5.153 (3.075) 0.000 2.078 (0.279) 1.799 (1.799) Housing Revenue Account 13.221 (2.382) 0.000 10.839 (4.035) 6.804 (6.804) Total Committed Usable Reserves 120.646 (61.191) 23.290 82.745 (57.625) 25.120 (25.120) Unearmarked / Uncommitted General Fund 13.043 0.000 0.000 13.043 0.000 13.043 0.000 Total Reserves 133.689 (61.191) 23.290 95.788 (57.625) 38.163 (25.120) * Estimated use / transfers for 2024/2025 based on the Period 7 Monitoring reports and estimates for the remainder of the year. 111
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Annual Procurement Report – 2023/2024 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] present the Annual Procurement Report for 2023/2024 [1purpose] 2. Recommendation(s) 2.1. Committee is asked to approve the following recommendation(s):- [recs] (1) that the Annual Procurement Report for 2023/2024 be noted. [1recs] 3. Background 3.1. The Procurement (Scotland) Reform Act 2014 requires contracting authorities to prepare and publish an annual procurement report on its regulated procurement activities. 3.2. This report to Committee provides an overview of the annual report highlighting key content from each of the sections. The full annual report is provided as Appendix 1. 4. Annual reporting requirements 4.1. The Act states that the annual report must include:- Regulated procurement activity Procurement strategy Community Wealth Building and Community Benefits Sustainable Procurement and Supported Businesses Future planning Other information 4.2. Section 2: Regulated Procurement Activity 4.2.1. Regulated procurement is defined by the Procurement Reform (Scotland) Act 2014 as any procurement with an estimated value of over £50,000 for supplies or services or £2m for works contracts. The Council includes all awards over £50,000 in the Annual Report for transparency. 4.2.2. The Council’s contract awards in 2023/2024, as detailed in Appendix 1 of the annual report, totalled 196 contracts (over £50,000) with a total value of £315.8 million. This compares to 169 contracts for the same period in 2022/2023. 12 113
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4.3. Section 3: Regulated Procurement Compliance 4.3.1. This section sets out how procurements carried out demonstrated compliance with the Council’s Procurement Strategy and Procurement regulations. 4.3.2. The Procurement Strategy 2023 to 2028 was endorsed by FCR Committee on 3 May 2023 and approved by the Executive Committee on 17 May 2023. The Strategy is subject to annual review, including an action plan to ensure continuous improvement across procurement activity and an update on the Procurement Strategy action plan for 2023/2024 was reported to Finance and Corporate Resources Committee on 22 May 2024. The Annual Report highlights actions completed during 2023/2024, including improved levels of local spend, efficiencies delivered by the procured spend review and implementation of Community Benefit monitoring software. 4.3.3. The Annual Report also outlines the Council’s arrangements to ensure compliance, transparency and Value for Money. 4.4 Section 4: Community Wealth Building and Community Benefits 4.4.1. This section of the annual report has been developed to focus on procurement outcomes from the Community Wealth Building Strategy, including levels of local spend. Local spend improved from 18.0% in 2022/2023 to 19.5% in 2023/2024, representing £67 million of spend with local enterprises. 4.4.2. The Council’s approach to secure Community Benefits is outlined in the Annual Report. In 2023/2024, 240 Community Benefit commitments from 31 contracts are detailed, and case studies of appropriate projects are included, including contracts with Biffa and Lightways. 4.5. Section 5: Sustainable Procurement and Supported Businesses 4.5.1. This section of the report provides an update on the Council’s progress in embedding the Scottish Government’s sustainable procurement tools and examples of sustainable outcomes. Positive sustainable outcomes in procurement include compliance with Fair Work First guidance, provision of guidance to Resources for sustainability questions to support the mandated 30% sustainability score in tenders and use of the sustainability test to embed sustainability measures in the Care at Home contract. 4.5.2. The Council’s responsibility to facilitate the involvement of supported businesses in procurement is also outlined in this section. Supported businesses are enterprises whose main aim is to integrate disabled or disadvantaged people socially and professionally. Their workforce must be at least 30% disabled or disadvantaged, as specified in EU Directive 2014/24/EU. The Council’s contractual activity with supported businesses and social enterprises is noted, including Haven Products, Hey Girls and Scotland’s Bravest Manufacturing Company. 4.6. Section 6: Future Planning 4.6.1. A summary of the regulated procurements the authority expects to award in the next 2 years, including renewals and new contracts, is included in Appendix 3 of the report, which has been developed following procurement service planning consultation with Resources. 4.6.2. The procurement programme for 2024/2025 and 2025/2026 contains a significant volume of projects, including high value construction, IT and economic development projects and continuing phases of the various Education and Social Care long-term Procured Service Arrangements. 114
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4.7. Section 7: Further information 4.7.1. Information to be included in this section is not prescribed, however, the Council has highlighted several areas, including local and SME spend analysis and payables and e-invoicing performance information for 2023/2024. 4.7.2. As referenced at 4.4.1, spend in the South Lanarkshire area (for all contractors, including SMEs) increased to 19.5%, representing an increase of £4 million spent locally in 2023/2024 to £67 million. 4.7.3. A geographical analysis of spend is included in the annual procurement report and quantifies spend for the wider Lanarkshire area (31%), Glasgow City Region (45%) and across Scotland (68%): spend retained within Scotland having decreased slightly from 70% in 2022/2023. 4.7.4. The Procurement Service continue to work in partnership with the Economic Development Service and the Supplier Development Programme to improve the participation of local SMEs in Council contracts, an area of focus in the spend pillar of the Council’s Community Wealth Building strategy. 4.7.5. An analysis of the impact on local spend through collaborative arrangements is also included in the annual report, noting that £6.7 million (14%) of South Lanarkshire Council spend via Scotland Excel frameworks is with local enterprises, a decrease from £7.6 million in 2022/2023. In 2023/2024, £70 million of spend is directed to South Lanarkshire companies from Scotland Excel in total (by all local authorities), an increase from £62 million in 2022/2023. 4.7.6. Council spend with Hub South West totalled £10.6 million, of which £2.8 million (27%) was spent with South Lanarkshire based companies, with Hub South West’s total sub-contracted spend in South Lanarkshire being £4.1 million, confirming the wider economic benefits from collaboration 4.7.7 The Annual Procurement Report 2023/2024 is attached as an Appendix for noting and publication thereafter. 5. Employee Implications 5.1. The forward programme presents a significant number of projects for delivery by the Procurement Team, at a time when the recruitment of experienced procurement staff continues to be extremely challenging. The recruitment programme of procurement graduates supports the capacity of the team. 6. Financial Implications 6.1. The financial implications of procured spend is accounted for within Resource budgets. 7. Other Implications 7.1. Given the large volume of projects identified in the forward programme there is a risk that some procurement activity may be affected due to resourcing challenges. Projects will therefore continue to be prioritised and assessed to minimise the risk of disruption. 115
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8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. Jackie Taylor Executive Director (Finance and Corporate Resources) 9 October 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Ambitious, self-aware and improving Previous References Annual Procurement Report 2022/2023, Finance and Corporate Resources Committee, 27 September 2023 Procurement Strategy 2023 to 2028, Executive Committee, 17 May 2023 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Craig Fergusson, Head of Finance (Transactions) Ext: 4951 (Tel: 01698 454951) E-mail: craig.fergusson@southlanarkshire.gov.uk 116
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Finance and Corporate Resources Executive Director Jackie Taylor Annual Procurement Report 2023/2024 If you need this information in another language or format, please contact us to discuss how we can best meet your needs. Phone 0303 123 1015 or email equalities@southlanarkshire.gov.uk 12 117
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Contents 1. Introduction 2. Regulated Procurement Activity 3. Regulated Procurement Compliance 4. Community Wealth Building and Community Benefits 5. Sustainable Procurement and Supported Business 6. Future Regulated Procurements 7. Further Information Appendix 1: Regulated Procurements Appendix 2: Procurement Strategy Action Plan Appendix 3: Future Regulated Procurements 118
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1. Introduction South Lanarkshire Council’s Procurement Service supports the delivery of works, supplies and services across the Council and has a vital role in ensuring services operate efficiently and effectively. The report details the Council’s regulated procurement activity for the period 1 April 2023 to 31 March 2024, as required by the Procurement Reform (Scotland) Act 2014. During this period, the Council’s total procured spend was £385m. Our annual report will publish the Council’s performance in procurement activity by providing the following information: • a summary of regulated procurements, including all procurements over £50,000. • a review of whether those procurements complied with our published Procurement Strategy and where they did not, a statement on how we intend to achieve compliance. • a review of Community Wealth Building activity and summary of Community Benefits achieved. • a summary of progress in facilitating the involvement of Supported Businesses. • a summary of future regulated procurement, including all procurements over £50,000 expected to commence in the next two financial years. The Procurement Service continued to support Council services through challenging financial conditions while continuing to focus on the seven objectives of the Council’s Procurement Strategy: Compliance Value for Money Collaborate Contract and Supplier Management Fair Work First Sustainable and Ethical Community Wealth Building 119
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2. Regulated Procurement Activity A regulated procurement is defined by the Procurement Reform (Scotland) Act 2014 as any procurement with an estimated value of over £50,000 for supplies or services or over £2m for works contracts. A regulated procurement is complete when the contract award notice is published and can include new contracts and framework agreements. In addition, regulated procurements will be subject to the Public Contracts (Scotland) Regulations 2015 where they meet the appropriate thresholds. The Council must follow the relevant procurement rules in respect of planning through to contract award, as detailed in Section 3: Regulated Procurement Compliance. In total, the Council awarded 196 contracts over £50,000 in 2023/2024, with a total award value of £315.8m, as listed in Appendix 1. This includes both regulated and non-regulated contracts, with the Council publishing all awards over £50,000 in this Annual Procurement Report for transparency. 120
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3. Regulated Procurement Compliance The Procurement Reform (Scotland) Act 2014 requires all contracting authorities to publish a Procurement Strategy. 2023/2024 was the first year of our new Procurement Strategy 2023-2028, which aims to promote best practice across all procurement activity, while supporting the Council’s priorities set out in the strategic plan “Connect”. The strategy is supported by an Action Plan to ensure compliance for all procurement activity, including regulated procurements, and is subject to annual review to reflect new legislative requirements, innovation and updated priorities. A summary of the Council’s strategic procurement objectives is included in Appendix 2. Progress in achieving our Procurement Strategy action plan is monitored by the Council’s Corporate Management Team and Finance and Corporate Resources Committee. Key achievements in 2023/2024 included: • Completion of the Council’s two year Procured Spend Review project, with efficiencies of over £2m identified. • Increased level of spend with local enterprises from 18% to 19.5% in 2023/2024, representing £67m spent locally, of which £60m was with SMEs. • Delivery of payment of Living Wage in all Social Care contracts, uplifted in April 2023. • Implementation of the new Community Benefits monitoring software “Cenefits” for council contracts. • Development of a new harmonised Scheme of Delegation for Standing Orders on Contracts. Procurement Compliance and Transparency The Council’s procurement activity, including regulated procurements, is undertaken in accordance with a legal and procedural framework to ensure compliance. Legal requirements are underpinned by the Council’s Standing Orders on Contracts and procedural arrangements are as set out in the Scottish Government’s Procurement Journey. Additional governance and monitoring arrangements for regulated procurements ensure a robust structure is in place to ensure compliance. At a practical level this consists of the preparation and authorisation of sourcing strategies and tender documentation through to robust arrangements for authorisation of awards. To maintain the highest standards of transparency, the Council’s Standing Orders on Contracts mandate that all contract awards over £50,000 are reported to Committee, with all reports available in the public domain. The Council also maintains a publicly accessible online contracts register with access to all contract awards of all values and in 2023/2024 we updated the format of the register to ensure improved transparency. The Council also has a scrutiny review structure in place to review tendering and award arrangements for high-risk procurements. These arrangements provide 121
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assurance that all regulated procurements were materially compliant with the strategy. The Council monitors contractual compliance, with 97% of 2023/2024 spend over £50,000 with contracted suppliers. A quarterly review process is in place to identify and resolve spend with non-contracted suppliers. Value for Money Value for Money in contractual arrangements is a key strategic objective of the Procurement Service and a review of procured spend is one of the Council’s key efficiency review areas led by the Corporate Management Team. The review set ambitious targets to review procured spend across all Council areas and seek deliverable revenue efficiencies: either through review of existing contractual arrangements or by putting new contracts or collaborative agreements in place. In the previous two-year period, total efficiencies of £2m have been identified. Oracle Fusion The Council’s new financial management system, Oracle Fusion, went live in April 2024 and this was a significant project for the Council’s Procure to Pay functions during 2023/2024. The new system will contribute to improved procurement compliance through an integrated Contract Register with workflow authorisation for contract awards, with awards linked to contract spend. 122
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4. Community Wealth Building and Community Benefits Community Wealth Building The Council’s Community Wealth Building Strategy was approved by the Council in 2021 and sets out five strategic pillars to develop resilient local economies. The “spend” pillar seeks to use the purchasing power of the Council and other local anchor institutions to improve local spending and deliver positive impacts on employment opportunities: the Procurement Service and our colleagues in Economic Development are responsible for delivering the actions for this pillar. Key achievements for the Procurement Service in 2023/2024 included: ♦ £67m spent in the local economy, an increase from £63m in 2022/2023 and improving spend levels with local enterprises to 19.5% of core trade spend. ♦ Continuing to focus on the use of Quick Quote for Works up to £2m to improve the engagement of local enterprises in Council tenders, with 8 local awards totalling £1.8m through this route. ♦ Participation in local supplier engagement events with the Supplier Development Programme and participation in National Meet the Buyer events. ♦ Participation in the Build Lanarkshire events period including presentations on Quick Quotes, Community Benefits, Community wish lists and building new supplier relationships. ♦ Promotion of subcontracting opportunities for local enterprises with Scotland Excel framework opportunities and HubSW projects. Community Benefits Community Benefit clauses require contactors to deliver long term sustainable social and economic benefits to the South Lanarkshire community, while demonstrating Best Value in contract awards. The Procurement Reform (Scotland) Act 2014 requires the Council to consider Community Benefits for contract values over £4m, however, the Council will consider inclusion of Community Benefits in all regulated tenders (over £50,000), regardless of value, where appropriate to the supplier, value and duration of the contract. Consideration of Community Benefits is embedded in the Council’s Sourcing Strategy and clearly stated in the tender documents to ensure transparency and fairness in the evaluation process. The Council has a points-based system to target Community Benefits, with the number of points based on the value and duration of the contract. Suppliers select appropriate community benefits from the Council’s menu of deliverables, including employability through apprenticeships, work placements, local employment and engagement with local and SME subcontractors in the supply chain. Since 2023, the Council’s Community Benefit points menu includes commitments from the Community Wish List. In 2023/2024, the Council went live with a new monitoring system for Community Benefits called “Cenefits” which enables Community Benefit commitments to be monitored with contracted suppliers. A series of successful engagement events with 123
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Council suppliers were held with the Supplier Development Programme to launch the Cenefits system. Of the contracts awarded in 2023/2024, 31 had specific Community Benefit outcomes, with the benefits committed detailed below. Included in Community Benefit delivery this year was fulfilment of 21 wishes from the Council’s Community Wish List. Community Benefit 2023/2024 2022/2023 Targeted recruitment and training, including apprenticeships and work placements 47 31 Supply Chain Initiatives 3 15 Use of local SME 11 21 Use of social enterprise or supported business - 2 Community consultation 4 6 Poverty Initiatives - 12 Young Person engagement 2 11 Educational Career Development support 118 21 Community Endowment 8 8 Local Events 6 5 Physical infrastructure - 1 Local sponsorship 5 15 Mentoring 3 5 Financial donation 25 - Environmental support in Education 2 - Environmental improvements 2 - Other, including volunteering 4 8 Total 240 161 Community Benefit status Of the 240 Community Benefits committed in 2023/2024, the following diagram summarises the delivery status of each contract. 43 33 5 159 Community Benefit delivery 2023/2024 Complete In progress Overdue Due later in contract 124
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Community Benefit case studies Household Waste Recycling Centres: contractor Biffa Waste Services Contract duration: 7 years Contract value: £39m Community Benefit points: 560 Biffa Waste Services were awarded a seven-year contract by the Council in 2023/2024 to manage and operate South Lanarkshire’s Household Waste Recycling Centres. Due to the high value of this contract, 560 Community Benefits Points were allocated for delivery over the contract period. A range of Community Benefits for the communities of South Lanarkshire were committed including the employment of eleven local individuals across the Recycling Centres, engagement with eight local SMEs in the supply chain for this contract and support for environmental improvement projects across South Lanarkshire. Delivery of committed benefits is underway with the recruitment of all eleven new employment opportunities complete. This has provided a range of roles of varying skill levels across the Waste Recycling Centres for eleven individuals who live in South Lanarkshire. Biffa are also planning their environmental improvements projects through ongoing initiatives which will be rolled out in Locations across South Lanarkshire. Biffa work with charity “Paths for All” championing a happier, healthier and greener Scotland. In South Lanarkshire this will support the K-Woodlands adjacent to the East Kilbride Waste and Recycling Centre via regular litter picking events organised by Biffa and allowing access to their recycling centres to dispose of the waste. Community Groups in South Lanarkshire will also be able to access the Biffa Award Scheme, with funding available to local Community Groups that are generated via landfill tax credits. Groups can apply for funding via their local Waste Recycling Centre. Having access to additional funding sources for South Lanarkshire Community Organisation is vital, especially funding that supports environmental improvements in our communities. Biffa’s Community Benefits will have an on-going impact on South Lanarkshire’s local economy and communities throughout their contract period. The Community Benefits committed have delivered employment opportunities, supply chain opportunities and support for local communities to make environmental improvements across South Lanarkshire. Festive Lighting: contractor Lightways Contract duration: 4 years Contract value: £1.2m Community Benefit points: 100, delivered by: In 2023/2024, Lightways were awarded a four-year contract for maintenance, storage, erection and dismantling of Festive Lights for the Council and in fulfilment of their 125
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Community Benefits points, committed to making a financial donation to a local community project each year of the contract through the Council’s Community Wish List. Following review of the Wish List, Lightways choose to provide support to the Partnership Group for St. John’s Primary School in Blackwood. The Partnership Group were looking for support to reinstate the school garden, which had been a poor state of repair for some time. Pupils involved in the John Muir Award had cleared the garden but needed support to reinstate pathways which were unsafe and inaccessible for any users with mobility issues. Lightways were able to provide and lay new slabs to improve accessibility to the garden as well as lay aggregate chips to complete the bedding areas the pupils would like to build raised beds on. Having not only the donation of goods but also labour meant the project could progress faster than otherwise anticipated, carrying out task’s pupils could not complete themselves. A representative from the Partnership Group commented “Completion of these tasks will make a big difference to finishing work in the garden, we are extremely grateful to Lightways for their generosity.” Lightways support has been hugely impactful in the development of the school garden, making it accessible for all to enjoy and the Council will continue to work with the contractor over the next four years to deliver the remaining three donations, supporting more communities across South Lanarkshire. 126
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5. Sustainable Procurement and Supported Business Summary Sustainable Procurement One of the Council’s key strategic objectives is “Sustainable and Ethical” in recognition of our responsibility to secure wider social, economic and environmental benefits through contracts, as set out in the Sustainable Procurement Duty. The Council uses the Scottish Government’s Sustainable Flexible Framework to measure organisational progress in embedding sustainable outcomes: the framework measures performance across the following areas: ♦ People: training on sustainable procurement tools is progressing across the organisation (level 2 achieved) ♦ Objective, Strategy and Communications: sustainable procurement duty embedded in Procurement Strategy (level 4 achieved) ♦ Process: using prioritisation and sustainable toolkits to focus on outcomes at category and contract level and sustainability scoring improved (level 2 achieved) ♦ Stakeholders: improved engagement for stakeholders (level 2 achieved) ♦ Monitoring and Reporting: on sustainable procurement outcomes through procurement strategy and annual report (level 2 achieved) Prioritisation Tool The outcome from the Council’s Prioritisation analysis is detailed below: this identifies the categories of spend where the Council has scope to improve sustainable outcomes and the influence in the market to achieve this. This analysis will guide future procurement strategies, focusing on areas of climate impact such as Construction and Waste Management and those areas with social and economic impacts, including Social Care and Early Learning. ♦ Risk: relevance of overall sustainability risk/relevance (environmental, socio-economic and reputational) to procure- ment category 127
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♦ Scope: How much scope is there to improve the sustainability of procurement of this category ♦ Influence: level of influence your organisation might have over the market to improve sustainability outcomes Examples of good sustainable practice this year include: ♦ Continued focus on Fair Work First principles, using seven key priorities set out by Scottish Government ♦ Ensuring Real Living Wage paid in social care contracts, which accounts for £118m (34%) of council spend. All Adult Social Care providers are compliant with living wage levels. ♦ Continuing to embed the Sustainable Procurement Tools, focusing on the publication of guidance for sustainability questions to support our mandatory 30% sustainability score. ♦ Completion of the sustainability test to identify key sustainability measures in the Care at Home tender. Supported Business Engagement The involvement of Supported Businesses and Social Enterprises is included in the strategic objective of “Sustainable and Ethical” and engagement is considered in the Council’s Sourcing Strategy for new tenders. During 2023/2024, the Council’s spend with registered charities totalled £36m, a similar position to 2022/2023, and we continued to support Supported Business and Social Enterprises, including: Haven Products: Supported Business The Council has a two-year contract with Haven Products until December 2024 for production of Homecare uniforms, with an estimated value of £0.180m. Haven Products is a supported business, providing employment opportunities to disabled people. Royal British Legion: Supported Business The Council has a four-year contract in place with Scotland’s Bravest for signage manufacture until March 2026, with an estimated value of £0.130m. Scotland’s Bravest are a supported business supporting veterans with disabilities to develop new skills, regain independence and earn in a supportive commercial environment. Hey Girls Social Enterprise Hey Girls are based in Dunbar, founded by a mother and her two daughters to address period poverty through a “Buy One, Give One” social enterprise model. Hey Girls continue to be a key supplier in achieving the Scottish Government’s period poverty targets and the Council’s spend in 2023/2024 was £0.081m. 128
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6. Future Regulated Procurements The Council’s activity over the next two years in regulated procurement will include existing contracts which are due to be extended or re-let and new tenders. Appendix 3 provides a list of anticipated future procurements over £50,000 in value. The Council continues to develop the use of our long-term flexible framework model of Procured Service Arrangements for light touch services, including Social Care and Education. The Council is also extending the use of Dynamic Purchasing Systems and working closely with the Scottish Procurement Alliance, Procurement for Housing and Scotland Excel to identify future collaborative opportunities. The following provides some examples from the wide range of projects detailed in Appendix 3 that illustrate the diverse range of commodities and services being procured by the Council, including: • Adult and Children’s social care services ♦ Early Learning and childcare ♦ Construction and maintenance contracts for property and roads ♦ Purchase and maintenance of fleet and vehicles ♦ Waste recycling and disposal 129
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7. Further Information Procurement Performance information The Council reports on a range of performance indicators, including the level of procurement spend with local companies (based within the South Lanarkshire area) and SMEs (small and medium enterprises). The Council has a consistently high level of engagement with SMEs overall, with 68% of Council contracts awarded (above £50,000) to SMEs in 2023/2024. Local and SME spend The Council’s spend with South Lanarkshire enterprises (including SMEs) increased from 18% in 2022/2023 to 19.5% in 2023/2024, representing £67m of total spend within the local area. Spend with SMEs generally increased by 1% and was unchanged for South Lanarkshire based SMEs at 17%. Our actions around the Community Wealth Building Strategy aim to improve local spend levels in the future. Indicator 2021/2022 2022/2023 2023/2024 Total procured spend £384m £388m £385m Core Trade spend £345m £351m £346m Core spend in South Lanarkshire area 18% 18% 19.5% Core spend with South Lanarkshire SMEs 17% 17% 17% Core spend with SMEs 50% 49% 50% (Source: National Observatory) In addition to our direct spend with suppliers in the local area, we are also working towards identification of subcontracted local spend with our tier one contractors, particularly in major construction projects. Our spend with Hub South West in 2023/2024 totalled £10.6m, of which £2.8m (27%) was subcontracted to South Lanarkshire based enterprises. Hub South West’s sub-contracted spend to South Lanarkshire companies from all Hub projects totalled £4.1m: confirming the importance of encouraging our local enterprises to engage with wider sub- contracting opportunities across the public sector. Where we spend A geographical analysis of the Council’s core spend by area is provided below: although 19.5% of our spend is within South Lanarkshire, 31% of spend was within the wider Lanarkshire area and 45% in Glasgow City Region. 68% of our total spend is in Scotland, which is a slight decrease in comparison to 70% in 2022/2023. 130
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Collaborative contracts The Council continues to focus on a collaborative approach to procurement wherever possible and collaborative contracts accounted for 25% of Council spend in 2023/2024. This year, the Council’s spend through Scotland Excel frameworks totalled £48.4m, of which £6.7m (14%) was spent with local suppliers, a reduction of 2% in comparison to last year. However, these collaborative frameworks generated £70m of spend with South Lanarkshire based suppliers in total, including spend from other local authorities, of which 98% was with SMEs. Supplier payment performance and e-invoicing The Council continues to exceed the national target of 85% of invoices paid within 30 days of receipt, with 94% of invoices meeting this standard in 2023/2024. E-invoicing, which enables automated payment of invoices where they can be electronically matched to a purchase order, has been in place for the Council since 2017. During 2023/2024, 19% of invoices were paid using the e-invoicing solution. 131
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7.1. Appendix 1: Regulated Procurement Activity 2023/2024 Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 01/04/2023 Ordnance Survey Public Sector Geospatial Agreement (PSGA) 01/04/2023 31/03/2030 31/03/2030 421,900 01/04/2023 St Mary’s Kenmure, Kibble Education and Care Centre, The Good Shephard Centre, Rossie Young People’s Trust Secure Care Services 01/04/2023 31/03/2027 - 3,500,000 03/04/2023 GGR Group Ltd Supply and Delivery of Mini Crawler Crane 03/04/2023 29/09/2023 - 72,761 06/04/2023 Richard Aitken (Seedsman) Ltd and Origin Amenity Solutions Ltd The Supply and Delivery of Grounds Maintenance Materials 06/04/2023 31/03/2028 - 3,109,016 07/04/2023 Fujitsu Services ConSol Annual Maintenance and Technical Support 01/04/2023 31/03/2024 31/03/2025 411,509 11/04/2023 Ricardo-Aea Ltd Air Quality Monitoring Support Services 01/04/2023 01/04/2026 01/04/2028 130,640 11/04/2023 SPIE Scotshield Ltd Supply, Installation and Maintenance of a Secure Door Entry System in Council Offices 21/03/2023 19/03/2028 19/03/2031 133,531 12/04/2023 Metdesk Limited The West of Scotland Local Authorities Weather Forecast and Maintenance Partnership 16/05/2023 15/05/2028 15/05/2033 13,500,000 17/04/2023 Hillhouse Quarry Company Hamilton Area Roadstone - April 17/04/2023 21/04/2023 - 52,505 20/04/2023 Includem Structured Review Service 01/04/2022 30/06/2023 30/06/2024 100,000 20/04/2023 M Squared (Scotland) Ltd Patterson Drive Law - New Fencing 01/06/2023 01/09/2023 - 64,374 132
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 24/04/2023 Linets Legal Online Research Package - Annual Subscription 01/04/2023 31/03/2026 - 64,103 26/04/2023 Motus Commercials Supply and delivery of Heavy Vehicles - 18,000kg Whale Tanker 26/04/2023 31/07/2023 - 104,220 26/04/2023 SLR Consulting Waste Consultancy Services 26/04/2023 31/03/2025 31/03/2026 134,658 28/04/2023 Figtree Systems (Europe) Ltd Figtree Risk Management Information System 09/05/2023 08/05/2028 08/05/2033 335,689 28/04/2023 Scottish Borders Council The Supply and Application of Tanker Applied Road Surface Coatings 01/05/2023 30/04/2028 - 2,000,000 03/05/2023 Disclosure Scotland Disclosure Checks 01/05/2023 30/04/2033 - 825,000 08/05/2023 South Lanarkshire College Multiply Programme 08/05/2023 31/03/2025 31/03/2026 238,758 10/05/2023 Aecom Ltd Local Transport Strategy for South Lanarkshire Council 11/05/2023 31/01/2024 - 116,673 19/05/2023 Prime Build Solutions Ltd Biggar Corn Exchange - Roof Works 19/05/2023 18/02/2024 - 130,487 24/05/2023 Critiqom Ltd Provision of Volume Mailing and Associated Services (for outbound mail and digital communications) 01/06/2023 30/06/2025 - 3,643,014 24/05/2023 The Lowry Centre Limited Theatre Booking and Ticketing System 01/08/2023 31/07/2025 31/07/2026 120,770 26/05/2023 Id Computer Software Ltd Grantvisor and BizVisor Software 01/04/2023 31/03/2026 - 62,530 30/05/2023 Dennis Eagle Ltd Supply and delivery of Heavy Vehicles 30/05/2023 31/12/2023 - 1,130,022 31/05/2023 Various Suppliers Passenger Transport mini competition 1 16/08/2023 26/06/2024 26/06/2025 3,086,605 01/06/2023 Hillhouse Quarry Company Supply and delivery of roadstone 01/06/2023 30/06/2023 58,979 07/06/2023 Physicare Provision of Employee Physiotherapy Services 08/06/2023 07/06/2024 07/06/2025 420,000 08/06/2023 Certas Energy UK Ltd and Highland Fuels Ltd The Supply and Delivery of Liquid Fuels 17/05/2023 31/03/2025 - 7,135,604 133
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 08/06/2023 Aebi Schmidt UK Ltd Supply and delivery of Heavy Vehicles - Sweeper 08/06/2023 31/12/2023 - 87,626 09/06/2023 Various Suppliers Supply and Distribution of Fresh Meats, Cooked Meats and Fresh Fish 08/06/2023 31/03/2027 - 2,046,000 12/06/2023 Various Framework Agreement for Business Support and Expert Help Services 2023 - 2025 03/07/2023 31/03/2025 - 131,667 12/06/2023 Various Suppliers Passenger Transport mini competition 3 16/08/2023 26/06/2024 26/06/2025 575,319 14/06/2023 PDC Ltd Installation of Door and Door Entry Systems MTC 2023 - 2026 19/06/2023 26/06/2026 - 358,559 15/06/2023 Pam Wellbeing Ltd Occupational Health, Employee Assistance Programme and Eye Care Services Framework 01/07/2023 30/06/2026 - 811,504 19/06/2023 Various Suppliers Supply and delivery of Plant 19/06/2023 29/12/2023 - 646,060 19/06/2023 BCA Insulation Ltd Strutherhill Zone C - Cavity Wall Insulation 19/06/2023 18/03/2024 - 115,563 19/06/2023 Bustec Scotland Ltd, Riverside Truck Rental Ltd and Agmors Coachworks Ltd Framework for the Provision of Vehicle Body Repairs 19/06/2023 18/06/2027 - 980,000 19/06/2023 Hillhouse Quarry Company Supply and delivery of roadstone 19/06/2023 18/06/2023 - 191,699 19/06/2023 Motus Commercials Supply and delivery of Heavy Vehicles 19/06/2023 29/12/2023 - 388,815 19/06/2023 Various Suppliers Passenger Transport mini competition 3 16/08/2023 26/06/2024 26/06/2025 1,499,935 22/06/2023 Ailsa Building Contractors Ltd Strutherhill Zone C - Roughcast and Rendering 22/06/2023 21/03/2024 - 336,354 26/06/2023 Neighbourhood Networks In Scotland Ltd Neighbourhood Based Support for Vulnerable Individuals 01/05/2023 30/04/2024 30/04/2025 171,246 134
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 30/06/2023 Capita Business Services Ltd Integrated Housing and Property Management System (IHPMS) 01/07/2023 01/07/2030 - 2,163,904 01/07/2023 Hillhouse Quarry Company Supply and delivery of roadstone 01/07/2023 31/07/2023 - 57,053 01/07/2023 Hillhouse Quarry Company Supply and delivery of roadstone 01/07/2023 31/07/2023 - 72,240 01/07/2023 Hillhouse Quarry Company Supply and delivery of roadstone 01/07/2023 31/07/2023 - 56,681 04/07/2023 Affiniti Response Ltd Hawbank Roads Depot 04/07/2023 03/04/2024 - 224,578 05/07/2023 Cromwell Polythene Ltd Mini Competition for Supply and Delivery of Compostable Food Waste Liners 10/07/2023 09/07/2024 09/07/2025 95,976 07/07/2023 Randstad Solutions Ltd Social Care Agency Worker to support Large Scale Investigation 11/07/2023 10/01/2024 09/07/2024 132,044 10/07/2023 Capita Business Services Ltd Provision, Support and Maintenance of eLearning and Development Platform 01/08/2023 31/07/2024 31/07/2025 504,428 11/07/2023 Paper Shredding Services Ltd Secure Destruction of Confidential Waste 11/07/2023 10/07/2026 10/07/2028 50,575 14/07/2023 Various Suppliers Passenger Transport mini competition 4 16/08/2023 26/06/2024 26/06/2025 261,183 14/07/2023 Various Suppliers Passenger Transport mini competition 5 16/08/2023 26/06/2024 26/06/2025 342,114 19/07/2023 Loretto Care T/A Wheatley Care 1st Stop Accommodation 01/07/2023 30/06/2024 30/06/2025 201,494 19/07/2023 Loretto Care T/A Wheatley Care Outreach Support 01/07/2023 30/06/2024 30/06/2025 142,012 21/07/2023 Prime Build Solutions Ltd South Vennel Roof Repairs - Replacement 21/07/2023 20/04/2024 - 151,103 26/07/2023 Sovereign Group Ltd Supply and Delivery of Composite/UPVC Doors and UPVC Windows 01/08/2023 31/07/2024 - 1,000,000 135
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 28/07/2023 ADT Fire and Security Plc Maintenance of Fire and Intruder Alarms (ADT) 31/07/2023 30/07/2028 30/07/2031 646,853 31/07/2023 Maths Recovery Council UK Resources Maths Recovery Training Courses 01/09/2023 18/05/2024 - 140,000 01/08/2023 Hillhouse Quarry Company Supply and delivery of roadstone 01/08/2023 30/08/2023 - 52,296 02/08/2023 Intelligent Health Beat the Street 08/08/2023 07/08/2025 07/08/2027 494,237 03/08/2023 Kooth Digital Health Limited Provision of Online Mental Health and Wellbeing Support for Children and Young People 10/06/2023 09/06/2024 - 180,094 04/08/2023 Elveden Farms Ltd Supply and Delivery of Christmas Trees 2023 04/08/2023 31/12/2023 - 62,847 07/08/2023 Aon UK Ltd Tenants Contents Insurance 01/10/2023 30/09/2026 - 395,424 09/08/2023 Chargemaster Ltd Installation of Electric Vehicle Charging Points (various locations) 09/08/2023 29/02/2024 - 165,000 10/08/2023 Motus Commercials Supply and delivery of Heavy Vehicles 10/08/2023 31/03/2024 - 155,955 10/08/2023 Park's Of Hamilton (Townhead Garage) Ltd Supply and Delivery of Light Vehicles 10/08/2023 31/08/2023 - 90,195 10/08/2023 Training Initiatives Ltd GradU8 - Winter Leavers Construction Provision 29/08/2023 21/12/2023 - 63,000 14/08/2023 CRD Property Renovations and Reinstatement Hamilton Towers Strip Out Works 01/08/2023 30/11/2023 - 122,374 14/08/2023 Maclay Civil Engineering Ltd NEC3 Engineering and Construction Contract Option B for A72 / M74 Junction 7 Signalisation 14/08/2023 01/03/2024 - 1,539,675 16/08/2023 Hillhouse Quarry Company Supply and delivery of roadstone 16/08/2023 15/08/2023 - 74,473 17/08/2023 Joseph Leckie and Sons Contracts Ltd First Steps Nursery Extension - Groundworks and Brickwork 17/08/2023 02/05/2024 - 245,812 136
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 23/08/2023 Fleming Buildings Ltd First Steps Nursery - Timber Kit Package 23/08/2023 01/05/2024 - 134,304 24/08/2023 Various Suppliers Education Services PSA phase 2 new applicants 28/08/2023 19/12/2026 19/12/2033 42,500,000* 25/08/2023 Edenred (UK Group) Ltd Employee Discounts Scheme 01/10/2023 11/08/2027 - 178,471 25/08/2023 Edenred (UK Group) Ltd Reward and Recognition Scheme 12/08/2023 11/08/2027 - 168,000 25/08/2023 Gravitas Recruitment Group Ltd IT Services (Integrated Housing and Property Management System) 28/08/2023 27/12/2024 27/06/2025 203,125 28/08/2023 Affiniti Response Ltd Kyle Court, Cambuslang - Upgrade of Communal Areas 01/10/2023 05/04/2024 - 217,172 28/08/2023 Blantyre Park Services Ltd First Steps Nursery - Mechanical Package 28/08/2023 06/05/2024 - 178,807 28/08/2023 Sportex Group Ltd and Cia Fire and Security Limited Upgrade of Whitemoss Tennis Court, East Kilbride 07/09/2023 02/11/2023 - 92,814 30/08/2023 Abacus Lighting Ltd Douglas Primary School - Floodlighting Installation 30/08/2023 11/10/2023 - 78,679 31/08/2023 Blue Triangle Housing Asoc Ltd Family First Stop - Charles Brownlee 01/08/2023 31/03/2024 - 319,670 31/08/2023 Blue Triangle Housing Asoc Ltd Stop Supported Accommodation - Wide Close 01/08/2023 31/03/2024 - 174,282 31/08/2023 Blue Triangle Housing Asoc Ltd Supported Accommodation - Clydesdale Street 01/08/2023 31/03/2024 - 129,849 31/08/2023 Blue Triangle Housing Asoc Ltd Outreach - Prevent and Sustain 01/08/2023 31/03/2024 - 63,829 01/09/2023 GMG Contractors Ltd East Kilbride Package 98 External Fabric Upgrade Re-Tender 09/10/2023 06/05/2024 - 871,130 04/09/2023 Pilcher Consulting Services Ltd Oracle Fusion Project Management Resource 30/08/2023 31/05/2024 - 147,500 137
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 06/09/2023 Bryson Tractors Ltd Supply and Delivery of Compact Tractor Complete with Mounted Brushes, Lot 9 06/09/2023 30/09/2023 - 78,700 07/09/2023 British Telecommunications Plc Provision and Maintenance of CCTV Circuits 01/04/2023 31/03/2024 - 84,256 11/09/2023 Affiniti Response Ltd First Steps Nursery Joinerwork Package 01/01/2024 09/09/2024 - 121,253 14/09/2023 C and S Group Uddingston Library Refurbishment 14/09/2023 06/11/2023 - 56,379 14/09/2023 Inspirent Ltd South Lanarkshire Council Social Enterprise Business Accelerator 02/10/2023 31/03/2024 31/03/2025 163,400 18/09/2023 Lyreco UK Ltd General Stationery and Office Paper 01/07/2023 30/06/2027 30/06/2028 3,600,000 19/09/2023 Hillhouse Quarry Company Supply and delivery of roadstone 19/09/2023 18/09/2023 - 59,769 20/09/2023 Eden Springs (UK) Ltd Supply, Delivery, Installation and Maintenance of Bottled Water Coolers and Mains Fed Coolers 02/10/2023 30/09/2027 30/09/2027 220,000 22/09/2023 Aps Group (Scotland) Ltd Blue Badge Digital Service Blue Badge Printing and Fulfilment Services 05/02/2023 04/02/2026 - 75,000 26/09/2023 A M Phillip Trucktech Ltd Supply and delivery of Heavy Vehicles under Scotland Excel Heavy Vehicle Purchase Framework Agreement 03-21 26/09/2023 31/03/2024 - 197,987 26/09/2023 Parks Motor Group Supply and delivery of Heavy Vehicles 26/09/2023 31/03/2024 - 179,383 26/09/2023 Totalmobile Ltd Home Care Workforce Scheduling 16/10/2023 16/10/2026 16/10/2027 1,978,093 28/09/2023 A.M.1. Consulting Ltd Oracle Cloud Fusion Implementation Resources 01/10/2023 31/05/2024 - 486,178 28/09/2023 Randstad Solutions Ltd Social Care Agency Worker - Adult and Older People (East Kilbride) 01/10/2023 31/03/2024 30/09/2024 68,978 138
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 01/10/2023 Parks Of Hamilton Supply and Delivery of Light Vehicles 01/10/2023 31/03/2024 - 1,810,552 10/10/2023 Rsk Environmental Ltd Initial Appraisal and condition survey Duke Street Multi storey Car park Hamilton 10/10/2023 09/01/2023 - 58,720 11/10/2023 Training Initiatives Ltd YES Construction Tasters South Lan Wide 2023 31/10/2023 30/10/2024 - 57,600 13/10/2023 Carter Ceilings Ltd Our Lady of Lourdes Primary School Suspended Ceilings 13/10/2023 13/10/2024 - 76,915 13/10/2023 Kentallen Mechanical Services Ltd Our Lady of Lourdes Primary School - Mechanical 13/10/2023 12/10/2024 - 995,027 13/10/2023 Procladd (Scotland) Ltd Our Lady of Lourdes Primary School - Rainscreen Cladding 13/10/2023 12/10/2024 - 338,882 13/10/2023 Scottech Ltd Our Lady of Lourdes Primary School - Curtain Walling 13/10/2023 12/10/2024 - 225,340 17/10/2023 Burcot Grange and Lodge Provision of Free Personal Care, Burcot Grange Care Home 15/08/2023 14/08/2028 - 107,303 25/10/2023 The Nurture Group Network Ltd Supply of Nurture UK Emotional and Behavioural Interventions, Training and Resources 01/11/2023 31/10/2025 - 200,000 26/10/2023 Enhance Healthcare Clyde Valley Ltd, Real-Life Options and Garvald West Linton Ltd Care Homes for Adults with Learning Disabilities Including Autism 16/09/2023 15/09/2024 - 697,576 27/10/2023 CRD Property Renovations SLC Void Properties Reinstatements 27/10/2023 12/04/2024 - 500,000 29/10/2023 John McGeady Ltd Repairs to Roads within Larkhall, Priestfield and Philipshill Cemeteries 30/10/2023 21/11/2023 - 78,143 01/11/2023 EQUAL SAY LIMITED Adult Advocacy Services 01/11/2023 31/10/2026 - 2,282,274 139
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 03/11/2023 Sidey Solutions Ltd Supply and Install of Doors and Windows: Cambuslang, and Rutherglen 15/01/2024 01/07/2024 - 1,365,402 06/11/2023 Gravitas Recruitment Group Ltd IT Services (Integrated Housing and Property Management System) 13/12/2023 12/12/2024 12/06/2025 270,444 16/11/2023 Karing International Ltd Supply and Delivery of Hot and Cold Beverage Supplies, Equipment, and Machinery 01/12/2023 30/11/2028 - 189,233 20/11/2023 Fuellink Systems Ltd Repair and Maintenance of In-House Fuel Management System 01/12/2023 30/11/2028 30/11/2030 77,840 21/11/2023 Affiniti Response Ltd St. John The Baptist PS - Phase 1 Kitchen Extension and Roof Repairs: Joinerwork 21/11/2023 31/08/2024 - 75,684 21/11/2023 Kentallen Mechanical Services Ltd St. John The Baptist PS - PH1 Kitchen Extension and Roof Repairs: Mechanical 21/11/2023 31/08/2024 - 90,000 22/11/2023 Hawthorn Heights Ltd Muga Surface Upgrade 23-24 30/11/2023 01/04/2024 - 145,004 22/11/2023 Jewson Strutherhill Zone C - Roofing Materials 23/11/2023 23/11/2024 - 154,508 23/11/2023 Perfect Service Solutions Ltd Kitchen Canopy Cleaning 27/11/2023 26/11/2026 26/11/2028 181,550 26/11/2023 Gravitas Recruitment Group Ltd IT Services (Integrated Housing and Property Management System) 22/12/2023 12/12/2024 22/06/2025 155,250 28/11/2023 Parks Of Hamilton (Townhead Garage) Ltd Supply and Delivery of Light Vehicles 05/12/2023 05/06/2024 - 203,347 29/11/2023 Various Suppliers Adult Supported Living PSA phase 3 and 4 new applicants 15/11/2023 14/09/2035 - 242,837,766* 01/12/2023 Care and Repair In South Lanarkshire Assistive Technology Installation 01/12/2023 30/11/2024 30/11/2025 148,170 01/12/2023 SOFTCAT PLC Web Security Gateway Licences 01/10/2023 30/08/2024 - 70,513 140
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 07/12/2023 Q-Free (Bristol) Uk Ltd Supply, Installation and Maintenance of Cycle and Pedestrian Counting Equipment 22/12/2023 21/12/2028 20/12/2031 141,272 14/12/2023 The Salvation Army Trustee Company Interim Ukrainian Displaced Persons Accommodation Service 12/12/2023 01/11/2024 - 666,584 18/12/2023 Boyco (UK) Limited Our Lady of Lourdes Primary School - Fixed Furniture 18/12/2023 18/09/2024 - 80,045 18/12/2023 Ochil Tower School Residential Placement (AS) for Ochil Tower School 01/08/2023 31/07/2024 - 142,503 20/12/2023 Halfords Limited Cycle to Work Scheme 08/01/2024 08/02/2028 - 303,107 22/12/2023 Rm Education Ltd Supply and Support of Secure Broadband Connectivity Services 01/01/2024 30/06/2025 - 129,969 10/01/2024 Joseph Leckie and Sons Contracts Ltd Shawlands Crescent Play Area, Swinhill Travelling People Site 15/01/2024 08/04/2024 - 65,457 11/01/2024 Ailsa Building Contractors Ltd Internal Refurbishment and Utility Works, Travelling People Site, Larkhall 01/02/2024 31/05/2025 - 910,274 11/01/2024 Biffa Waste Services Ltd Management and Operation of Household Waste and Recycling Centres (HWRC) 01/04/2024 31/03/2031 31/03/2034 39,096,332 12/01/2024 AF Jamieson Provision of Piano Tuning, Maintenance and Repair Services 15/01/2024 14/01/2029 14/01/2030 234,123 12/01/2024 Computacenter (UK) Ltd Roads Asset Management System 22/01/2024 21/01/2031 21/01/2036 1,679,556 15/01/2024 Various Suppliers Maintenance Of Building Energy Management System Installations including Underfloor Heating 22/01/2024 21/01/2029 21/01/2031 1,380,475 16/01/2024 Zurich Insurance PLC Engineering and Inspection Insurance 01/04/2024 31/03/2027 31/03/2030 1,332,772 141
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 17/01/2024 Lightways (Contractors) Ltd Maintenance, Storage, Erection and Dismantling of Festive Lighting 07/01/2024 06/01/2028 06/01/2029 1,281,323 23/01/2024 Ayrshire Tree Surgeons Ltd Tree Surgeon works various locations 04/04/2024 03/05/2024 - 62,081 24/01/2024 Wellwood Communications Ltd Provision, Maintenance and Support of Telephony and Communication Services 01/02/2024 31/01/2027 31/01/2029 3,100,000 25/01/2024 BEMCO Ltd Supply and Delivery of Smoke Detectors 12/02/2024 11/02/2026 11/02/2028 1,455,405 25/01/2024 Chubb Fire and Security Ltd Maintenance of Fire and Intruder Alarms 01/09/2023 30/09/2024 30/09/2024 171,426 25/01/2024 Landcare Solutions (Scotland) Ltd Scottish Government Play Investment Programme - Larkhall Area 19/02/2024 05/04/2024 - 320,640 25/01/2024 Women's Aid South Lanarkshire Domestic Abuse and Refuge Services 01/01/2024 30/09/2024 - 626,999 26/01/2024 Ashbourne Lodge Care Home Provision of Free Personal Care, at Ashbourne Lodge Care Home 27/03/2024 26/03/2026 26/03/2029 113,916 26/01/2024 Dovestone Estates Limited Care Home- Wray Common 01/04/2023 01/04/2026 01/04/2029 105,744 26/01/2024 Excel Vending Limited Vending Machine services 26/01/2024 26/04/2024 - 65,440 31/01/2024 High Flyers In The Woods and Lindy Loo Childmining Early Learning and Childcare PSA phase 8 and 9 new applicants 31/01/2024 31/07/2030 - 143,500,000* 01/02/2024 Covey Befriending Child Poverty Practice Accelerator Fund (CPAF) 01/02/2024 31/01/2025 - 79,897 01/02/2024 Covey Befriending Child Poverty Practice Accelerator Fund (CPAF) 01/02/2024 31/01/2025 - 59,923 01/02/2024 Vodafone Ltd Mobile Voice and Data Services 03/02/2024 26/08/2026 26/02/2028 1,200,000 02/02/2024 Cr Smith Manufacturing Limited David Walker Gardens Roof Repairs 01/03/2024 31/05/2024 - 154,331 142
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 02/02/2024 RACAM Security and Communications Ltd CCTV Infrastructure Phase 1 - Supply, Install and Maintenance of Cameras 02/02/2024 31/03/2027 - 142,660 06/02/2024 BEMCO Ltd Light Fittings and Accessories - Our Lady of Lourdes Primary School 06/02/2024 06/05/2024 - 54,394 08/02/2024 Joseph Leckie and Sons Contracts Ltd Philipshill Cemetery Extension, East Kilbride 12/02/2024 06/05/2024 - 498,492 14/02/2024 Wolf Laundry Ltd Supply, Delivery, and Installation of Laundry Equipment, including Airwallets and Maintenance 04/03/2024 31/03/2029 - 216,285 15/02/2024 Tamaris Healthcare (England) Limited Hillside Lodge Care Home 01/04/2023 01/04/2026 01/04/2029 243,759 19/02/2024 Alliance Disposables Ltd The Supply and Delivery of Janitorial Products 19/02/2024 18/02/2028 - 5,320,000 20/02/2024 Edmundson Electrical Limited Supply and Delivery of PV Panels and Accessories, Shawlands Crescent, Larkhall 26/02/2024 31/08/2024 - 62,124 22/02/2024 Stepford Contracts Ltd Capital Footway Resurfacing Scheme- Milford, EK 04/03/2024 29/03/2024 - 50,484 23/02/2024 Ailsa Building Contractors Ltd Springhall Fabrics Phase 6 25/03/2024 01/11/2024 - 1,083,262 23/02/2024 Risk Management Partners Travel Insurance 01/04/2024 31/03/2027 31/03/2030 61,077 28/02/2024 Crown Paints Ltd Supply and Delivery of Paint, Paint Sundries and Paint Packs 04/03/2024 03/03/2025 03/03/2026 279,195 28/02/2024 MGM Timber (Scotland) Ltd Supply and Delivery of Timber Doors 04/03/2024 03/03/2026 03/03/2028 604,771 29/02/2024 Computacenter UK Ltd VMWare Workspace ONE Advanced Licences 2024-2025 29/01/2024 28/01/2025 - 115,255 143
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 05/03/2024 Turner and Townsend Country Parks Masterplan - Calderglen and Chatelherault 05/03/2024 24/09/2024 - 249,150 05/03/2024 Zurich Insurance Plc SLLC Insurance (Lot 10) 01/04/2024 31/03/2027 - 853,198 07/03/2024 GMG Contractors Ltd Springhall Fabrics Phase 5 01/04/2024 01/11/2024 - 1,008,042 08/03/2024 Greenleaf Estate Maintenance Ltd and Excel Environmental Services Pest Control and Other Environmental Services 01/04/2024 31/03/2026 - 4,000,000 13/03/2024 GMG Contractors Ltd St Leonards, East Kilbride – Re- Roofing and External Wall Insulation – Pilot Project 13/03/2024 13/12/2024 - 196,831 14/03/2024 Autopress Education Ltd Maths Recovery Supplies 01/08/2023 31/07/2025 31/07/2026 100,000 14/03/2024 Storm Environmental Ltd Supply and Delivery of Communal Recycling Bins 14/03/2024 30/09/2024 31/03/2025 167,250 19/03/2024 M Squared Ltd Woods Stock Fencing 01/04/2024 30/04/2024 - 96,387 19/03/2024 Sonova UK Ltd T/A Phonak UK Ltd Supply and Delivery of Phonak FM Systems 10/01/2024 09/02/2028 - 140,000 20/03/2024 Liebherr Great Britain Ltd Hire of a Material Handler 01/01/2024 30/06/2024 31/12/2024 75,060 22/03/2024 Azets Holdings Ltd SLLC Audit Services 22/03/2024 21/03/2025 21/03/2026 73,500 22/03/2024 Hillhouse Quarry Group Ltd T/A MacAsphalt Carriageway Resurfacing/Anti Skid/Lining - A73 near Hyndford Bridge, Lanark 22/03/2024 24/03/2024 - 62,682 26/03/2024 Datatank Ltd Council Tax Discount and Exemption Review 01/04/2024 31/03/2027 31/03/2029 247,825 26/03/2024 Risk Management Partners Property Insurance 01/04/2024 31/03/2027 31/03/2030 10,605,445 26/03/2024 Various Supply of orchestral and classroom musical instruments and accessories 14/03/2024 30/11/2025 - 610,000 27/03/2024 Oracle Corporation Uk Ltd Oracle - OCI IAM - Universal Credit Expansion 09/04/2024 17/05/2027 - 115,912 27/03/2024 Scottish Water Business Stream Ltd Provision of Water and Waste Services 01/04/2024 31/03/2027 31/03/2028 14,000,000 144
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Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 28/03/2024 Homecare Scotland Care Services Ltd Care at Home Services 20/02/2023 31/03/2025 30/09/2025 177,254 28/03/2024 Maven Public Sector Fidelity Insurance 01/04/2024 31/03/2027 31/03/2030 118,820 28/03/2024 Risk Management Partners Contractor All Risks Insurance 01/04/2024 31/03/2027 31/03/2030 89,532 28/03/2024 Risk Management Partners Combined Liability Insurance 01/04/2024 31/03/2027 31/03/2030 4,955,513 28/03/2024 Risk Management Partners Terrorism Insurance 01/04/2024 31/03/2027 31/03/2030 343,136 28/03/2024 Travelers Insurance Company Ltd Motor Insurance 01/04/2024 31/03/2027 31/03/2030 2,217,566 31/03/2024 Country Court Care Homes 3 Opco Ltd Provision of Free Personal Care, at Lakeview Lodge Care Home 01/04/2024 01/04/2026 - 105,744 31/03/2024 JC Peacock Bagged Salt 01/04/2024 31/03/2028 - 160,800 31/03/2024 Various Suppliers Children’s Residential Care 01/10/2022 30/09/2028 - 88,679,076 *represents the contract value over the life of the long term Procured Service Arrangement for all suppliers 145
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7.2. Appendix 2: Procurement Strategy 2023-2028 Strategic Objectives update Objective Aim Outcome Progress Compliance Ensure compliance with Procurement Regulations and the Council’s Standing Orders on Contracts Improve compliance and mitigate risk of contract challenge. Procurement continues to monitor compliance with regulations and Standing Orders on Contracts across the Council, as evidenced by • Review of procurement and purchasing arrange- ments in readiness for Oracle Fusion • Implementation of new Scheme of Delegation arrangements for Standing Orders on Contracts. Value for Money To secure Best Value, balancing cost and quality of service and support the Council in achieving budget savings Improved Value for Money in support of the Council's Financial Strategy We continue to work with Resources in recognising demand and cost drivers and identifying opportunities for efficiencies, as evidenced by: • Procured Spend review under Council’s Transforma- tional Review Programme, which achieved efficien- cies of £2m in the first two years. • Management of price increase requests given infla- tionary pressures in market Collaborative Identify and influence collaborative opportunities to work with public partners and drive value through the power of public sector procurement. Improved levels of collaborative activity and delivery of efficiencies We continue to engage with procurement partners to identify collaborative opportunities and influence development of collaborative working, as evidenced by: • 94% participation in Scotland Excel frameworks • Positive engagement with Scottish Procurement Alli- ance, Procurement for Housing and Hub South West Contract and Supplier Management Support Resources to take a proactive approach to contract and supplier management to achieve Ensure suppliers meet contractual obligations, drive improvements in supplier performance and achieve efficiency improvements. We can demonstrate an improved approach to contract and supplier management, as evidenced by: • Review of supplier base in anticipation of Oracle Fu- sion implementation 146
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innovation and value in contract delivery. • Improved levels of engagement with Social Care pro- viders • Development of new electronic performance appraisal arrangements in Oracle Fusion. Fair Work First Work with suppliers to implement Fair Work First standards, including payment of the Living Wage and compliance with Council Charters Improved Fair Work and Living Wage arrangements for those involved in delivery of Council contracts We continue to promote Fair Work First and payment of the Living Wage, as evidenced by: • Annual confirmation of payment of Living Wage in all Social Care contracts • Continued focus on Fair Work First recommendations from Scottish Government included in all appropriate tenders. Sustainable and Ethical Secure wider social, economic and environmental benefits through contracts as set out in the Sustainable Procurement Duty Meet the Sustainable Procurement Duty Procurement continues to self-assess progress using the Scottish Government’s Flexible Framework to assess the organisational approach to sustainable procurement. • Review of sustainability scoring recommendations to allocate 30% of technical envelope to sustainable procurement outcomes, including a specific score for climate outcomes for the first time. Community Wealth Building Support and encourage the local economy to grow sustainably through the effective use of procurement to develop local communities and maximise use of Community Benefits Ensure the spending power of the Council and Community Benefits contribute towards Community Wealth and achieve National Outcomes Procurement contributes to the local spend pillar under the Community Wealth Building Strategy, as evidenced by: • Delivering an increase in local spend from 18% to 19.5%, representing £67m spend locally, £60m of which was with SMEs. • Implementation of the new community benefits moni- toring software “Cenefits”. 147
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7.3. Appendix 3: Planned Future Regulated Procurements 2024/2025 and 2025/2026 Contract Description Expected Award Date Estimated Value (£) Water Quality Management Services (Including Legionella) 01/04/2024 300,000 Supply, Delivery and Installation of Washing Machines - Towers 01/04/2024 200,000 Fuel Cards and Associated Services 01/04/2024 3,300,000 Utilities - Supply of Electricity 01/04/2024 14,000,000 Provision of Water and Waste Services 01/08/2024 14,000,000 Supply and Delivery of Bagged Salt for Winter Road Maintenance 01/04/2024 170,000 Supply and Delivery of Cold Permanent Pothole Repair 29/04/2024 125,000 Framework for Removals, Storage and Disposals 30/04/2024 700,000 Planer and Paver Hire and Works 30/04/2024 4,000,000 Treasury Management Consultancy 30/04/2024 50,000 148
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Contract Description Expected Award Date Estimated Value (£) Repair, Inspection and Maintaining of Catering Machines 2024 30/04/2024 979,000 External Printing services 30/04/2024 250,000 Hire of Vehicles and Plant 30/04/2024 3,600,000 Supply, Delivery and Installation of Commercial Catering Equipment 01/05/2024 1,000,000 Groceries and Provisions 01/05/24 1,000,000 Maintenance and Repair of Portable Gas Appliances and Hotboxes 17/05/2024 50,000 EVAC Chair Maintenance 30/05/2024 50,000 Cashless Parking 30/05/2024 - Analogue to Digital Arc and Device replacement 31/05/2024 500,000 Adult Supported Living: individual placement 31/05/2024 5,310,000 Parent and Dyadic Therapy 01/06/2024 75,000 149
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Contract Description Expected Award Date Estimated Value (£) Council Tax Discount and Exemption Review 03/06/2024 50,000 Primary School Counselling Services 03/06/2024 100,000 Supply and Delivery Vehicle Parts 30/06/2024 1,500,000 Hairmyres Park and Ride 30/06/2024 3,800,000 Small Plant Training for Roads and Transportation employees. 30/06/2024 280,000 Framework for Small Plant Training 30/06/2024 480,000 Supply and Support of Microsoft Licences 30/06/2024 4,500,000 Temporary Signs and Associated Products 30/06/2024 120,000 Care at Home Procured Service Arrangement Phase 1 onward 30/06/2024 714,300,000 Desktop Client Devices 30/06/2024 700,000 External Wall Installation: term contract 30/06/2024 20,000,000 150
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Contract Description Expected Award Date Estimated Value (£) Electromagnetic Repairs 30/06/2024 800,000 Wall Insulation Services 30/06/2024 500,000 Supply and Delivery of Refuse Sacks (Waste / Grounds Services) 30/06/2024 70,000 Hire of Material Handler 30/06/2024 89,000 Supply and Delivery of Communal Recycling Bins 30/06/2024 170,000 External Fabrics Term Contractor 30/06/2024 20,000,000 Supply and Delivery of Specialist Digital Paper 30/06/2024 280,000 Christmas Trees 30/06/2024 200,000 Support Services for Oracle Fusion 30/06/2024 600,000 Care at Home and Housing Support 30/06/2024 3,000,000 Tollbooth Lanark, Streetscape Contract 30/06/2024 300,000 151
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Contract Description Expected Award Date Estimated Value (£) Supply and Delivery of Kitchen Installations 30/06/2024 8,000,000 City Deal road programmes (Hamilton) 30/06/2024 2,100,000 Contractor – Refurbishment Works / Aids and Adaptations 30/06/2024 4,800,000 Online Benefits Calculator 31/07/2024 200,000 Provision of Literacy, Numeracy, Health and Wellbeing Educational Assessment 31/07/2024 300,000 Taxi Mini Competition -School transport 31/07/2024 5,000,000 Domestic Appliance Repair 01/08/2024 100,000 Blue Badge Central Record and Badge Ordering Services 03/08/2024 250,000 Supply, Installation and Maintenance of Traffic Counting Equipment 30/08/2024 925,000 Community Meals 30/08/2024 - Larkhall Leisure Centre 31/08/2024 (from) 22,800,000 152
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Contract Description Expected Award Date Estimated Value (£) Supply, Delivery of 2 Wheeled Bins 31/08/2024 850,000 Supply, Delivery, Installation and Maintenance of the Corporate Multi-Functional Device Hardware Fleet 31/08/2024 1,393,625 Maintenance of Emergency Lighting Battery Cubicles 01/09/2024 50,000 Parent and Child Counselling 01/09/2024 75,000 The Provision of Skip Hire 12/09/2024 437,000 Care Homes for Adults with Learning Disabilities including Autism 15/09/2024 700,000 Income Management System / Online Cashless Payments 29/09/2024 200,000 Supply and Delivery of Telecare Peripheral Equipment 30/09/2024 67,467 South Lanarkshire Council Warden Call System Upgrades 30/09/2024 780,000 Early Language Intervention 30/09/2024 150,000 Winter Assistance - Farmers 30/09/2024 52,000 153
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Contract Description Expected Award Date Estimated Value (£) Provision of Moving and Assisting Training 30/09/2024 400,000 Christmas Switch On Events 30/09/2024 300,000 Intensive family support for young people in, or at risk of entering, residential care 30/09/2024 1,500,000 Legal Services Providers 30/09/2024 500,000 Asbestos Waste Skips 30/09/2024 200,000 Maintenance of Fire and Intruder Alarms 30/09/2024 200,000 Adventure Tourism 30/09/2024 65,000 Maintenance of Power Wash Systems 31/10/2024 50,000 Digital Connectivity Multi-Lot 30/11/2024 18,000,000 Provision of Independent Advice and Development Support Customers in South Lanarkshire 30/11/2024 350,000 ICT - PSN Connectivity - PSN Circuit 30/11/2024 1,400,000 154
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Contract Description Expected Award Date Estimated Value (£) Accident Management System 31/12/2024 200,000 Secure Site Containers and Welfare Units 15/01/2025 250,000 IT Service Management Solutions 28/02/2025 130,000 Provision of Debt Recovery and Sheriff Officer Services - Legal Services 28/02/2025 - Supply and Direct Delivery of Postage Stamps 28/02/2025 115,000 CCTV Infrastructure Phase 2 – Wi-Fi Network with Additional Supply, Install and Maintenance of Cameras 13/03/2025 200,000 Supply of Coffee and Associated Products 23/03/2025 65,000 Self Directed Support Advice 30/03/2025 300,000 New Waste Transfer Station 31/03/2025 200,000 Supply of Fixings 31/03/2025 100,000 Supply of Sealants 31/03/2025 100,000 155
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Contract Description Expected Award Date Estimated Value (£) IT software Fleet Management 31/03/2025 118,000 Franking machines and mail collection 31/03/2025 150,000 Supply of Domestic Heating Spares 31/03/2025 240,000 Supply of Ironmongery 31/03/2025 250,000 Kinship Care Support Service 31/03/2025 765,000 Supply and Delivery of Air Source Heating Systems 31/03/2025 1,680,000 Educational Services PSA New applicants 31/03/2025 42,141,617 Early Learning and Childcare - New applicants 31/03/2025 143,000,000 Adult Supported Living - New applicants 31/03/2025 229,000,000 Telecare equipment - personal alarms 31/03/2025 100,000 Audio Visual equipment in schools 31/03/2025 250,000 156
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Contract Description Expected Award Date Estimated Value (£) Servicing and Maintenance of Generators 31/03/2025 50,000 Interpretation Services 31/03/2025 500,000 Maintenance of EV Charging Points 31/03/2025 80,000 Extract Fans 31/03/2025 95,000 Repair and Renewal of Water Boilers and Under-sink Water Heaters 31/03/2025 100,000 Supply and Delivery of UPVC Materials 31/03/2025 100,000 Scottish Government Play Investment Programme - Larkhall Area 31/03/2025 320,640 Scottish Government Play Investment Programme, Rutherglen and Cambuslang 31/03/2025 338,600 Support Programme: Education 31/03/2025 400,000 Supply and Delivery of Electrical Materials 31/03/2025 500,000 Supply and Delivery of Plumbing Materials 31/03/2025 500,000 157
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Contract Description Expected Award Date Estimated Value (£) Supply and Delivery of Building and Timber Materials 31/03/2025 600,000 Supply and delivery of Catering supplies 31/03/2025 1,000,000 Provision and Delivery of Washroom Solutions and Sanitary Products 31/03/2025 1,500,000 Light and Heavy Vehicle Repairs (Ad-Hoc Mechanical and Electrical) 31/03/2025 2,500,000 Housing support for individuals in Extra Sheltered Housing 31/03/2025 4,000,000 Debt Management and Diligence Services 31/03/2025 - Energy (Utilities) Management and Supply for Void and New Build Housing Properties 31/03/2025 200,000 Repairs to Horseshoe Bridge and associated path network 31/03/2025 200,000 Street Lighting Materials 31/03/2025 2,000,000 Grounds Maintenance and horticulture: plants, shrubs and trees 31/03/2025 200,000 Street Lighting Materials- Columns 31/03/2025 100,000 158
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Contract Description Expected Award Date Estimated Value (£) Homeless Accommodation Framework 31/03/2025 16,000,000 Aids and Adaptations - Supply, Delivery and Installation of Disabled Access Ramps 31/03/2025 250,000 McKirdy Park - Pitch Replacement 31/03/2025 400,000 Supply and Delivery of Timber Materials 31/03/2025 560,000 Clydesdale Way: project management and associated works 31/03/2025 25,000,000 Supply and Delivery of External Door Sets and Windows 31/03/2025 1,600,000 Speech and Language Therapy 31/03/2025 200,000 Light and Heavy Plant, Grounds machinery and Ground Maintenance 31/03/2025 4,000,000 The Supply and Delivery of Liquid Fuels 31/03/2025 7,200,000 Supply and Delivery of Domestic Furniture and Furnishings 31/03/2025 12,000,000 Equipu Partnership Agreement 31/03/2025 30,000,000 159
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Contract Description Expected Award Date Estimated Value (£) Audio equipment for deaf and hard of hearing people 31/03/2025 100,000 Cathcart Place Industrial Development 31/03/2025 100,000 Classroom furniture 31/03/2025 250,000 Framework Agreement for Business Support and Expert Help Services 31/03/2025 500,000 Maths materials and resources 31/03/2025 100,000 Flooring framework 31/03/2025 1,000,000 Online learning in reading, writing and maths 31/03/2025 100,000 Workflow software solution 31/03/2025 600,000 Security for Council Offices 31/03/2025 3,250,000 Web based and proprietary devices 31/03/2025 100,000 Receipt and Treatment of Container Mix 31/03/2025 60,000 160
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Contract Description Expected Award Date Estimated Value (£) Receipt and Treatment of Fibre Mix 31/03/2025 60,000 Uplift, Disposal (incl Recycling) of Gas Bottles 31/03/2025 95,000 Ash Dieback (Various Projects) 31/03/2025 100,000 Demolition of the Newcross centre to support a residential development 31/03/2025 TBC Civic Hub Design Phase 31/03/2025 TBC New Build Housing Housing: Westwood, Ash Parks, East Kilbride 31/03/2025 TBC New Build Housing – Former McWhirter House 31/03/2025 TBC New Build Housing - Braehead, Blantyre 31/03/2025 TBC New Build Housing – Former Cairns Primary School Site 31/03/2025 TBC Mill Street, Rutherglen, Communal Boiler Replacement 31/03/2025 TBC Deer Park, Larkhall - Communal Boiler Replacement 31/03/2025 TBC 161
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Contract Description Expected Award Date Estimated Value (£) Parker Place, Larkhall - Communal Boiler Replacement 31/03/2025 TBC Deer Park Sheltered Housing, Larkhall - Internal Upgrade 31/03/2025 TBC Wellbeck House and The Mews Stuart Street, East Kilbride - Internal Upgrade 31/03/2025 TBC Bosfield Place Sheltered Housing, East Kilbride - Lift Refurbishment 31/03/2025 TBC Strathcona House Sheltered Housing - Lift Refurbishment 31/03/2025 TBC John Smith Court Sheltered Housing - Lift Refurbishment 31/03/2025 TBC 1-26 Stonefield Park Gardens, Blantyre - Pipework 31/03/2025 TBC Bosfield Place, Sheltered Housing, East Kilbride - Water Mains Supply 31/03/2025 TBC Castlefield Gardens SHC - Ventilation Upgrade 31/03/2025 TBC Social Bite Village, Harriet Street, Rutherglen 31/03/2025 TBC Lindsay House, East Kilbride - Demolition 31/03/2025 TBC 162
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Contract Description Expected Award Date Estimated Value (£) New Build Housing Priory Road - Former Woodpark PS Site 31/03/2025 TBC New Build Housing Housing - Site at Former Ballgreen Hall - Glasgow Road 31/03/2025 TBC New Build Housing Housing - Site at Former Lindsay House - Kittoch Street 31/03/2025 TBC New Build Housing Housing – Carlisle Road, Hamilton (ELU) 31/03/2025 TBC Former ELU, Carlisle Road, Hamilton - Demolition 31/03/2025 TBC Clydeford View, Cambuslang - Renewal of Corridor Ceiling and Lighting 31/03/2025 TBC McClymont House, Lanark - Feasibility for New Housing Stock 31/03/2025 TBC Red Deer Centre, EK - Feasibility for New Housing Stock 31/03/2025 TBC Kitchen programme flooring and painting: various locations 31/03/2025 TBC Close Refurbishment - Hamilton and Blantyre Area 31/03/2025 TBC St. Hilary’s Primary School - MUGA Adaptations 31/03/2025 TBC 163
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Contract Description Expected Award Date Estimated Value (£) Nursery Soft Pore Replacement Project - Various Properties 31/03/2025 TBC Heathery Knowe PS - Adaptations 31/03/2025 TBC Chatelherault Country Park - Boiler Replacement 31/03/2025 TBC Cathkin Library - Cladding Replacement 31/03/2025 TBC Mobile Client Devices 31/03/2025 2,400,000 National Framework Contract for the Supply of Natural Gas 01/04/2025 3,100,000 Provision of Passenger Transport Services 30/04/2025 50,000,000 Burial and cremation software system 30/04/2025 300,000 Provision of a Workwear Rental Laundry Service 31/05/2025 50,000 Payables Fraud Software 31/05/2025 140,000 Supply of Ad-Blue Fuel Additive 07/06/2025 160,000 164
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Contract Description Expected Award Date Estimated Value (£) Provision of Employee Physiotherapy Services 07/06/2025 420,000 Online Mental Health and Wellbeing Support for Children and Young People 09/06/2025 180,094 Maintenance of Sewage Treatment Systems 20/06/2025 50,000 Software Solution for Grounds, Street Cleansing and Waste Services 30/06/2025 100,000 British Sign Languages and Centre of Approval 30/06/2025 90,000 Supply and Support of Secure Broadband Connectivity Services 30/06/2025 130,000 End User Computing and Device Management (Desktop) 30/06/2025 2,500,000 Provision of Volume Mailing and Associated Services (for outbound mail and digital communica- tions) 30/06/2025 3,600,000 Fostering and Continuing Care 30/06/2025 10,000,000 Cashless Catering Solution 30/06/2025 500,000 Supply, Delivery and Installation of Office Furniture 03/07/2025 2,450,000 165
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Contract Description Expected Award Date Estimated Value (£) Furniture for Care Homes and Sheltered Housing Complexes 03/07/2025 2,500,000 eLearning and Development platform - Clyde Valley Partnership 31/07/2025 TBC ECO Stars Commercial Fleet Scheme 31/07/2025 140,000 Microsoft Office 365 Backup and Recovery Solutions 31/07/2025 300,000 Window and Door Replacement Package 31/07/2025 2,600,000 Electronic Payment Services 31/08/2025 500,000 Education Digital Futures 30/09/2025 59,000,000 Land Led Development property sites 30/09/2025 TBC Centre West East Kilbride: demolition 30/09/2025 TBC Supply and Delivery of Industrial Gases 21/10/2025 80,000 Emotional and Behavioural Interventions, Training and Resources 31/10/2025 200,000 166
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Contract Description Expected Award Date Estimated Value (£) Supply musical instruments 30/11/2025 800,000 Supply of Homecare Uniforms - Tunics and Trousers 31/12/2025 100,000 Landfilling of Residual Waste (unsuitable for processing via Thermal Treatment Facilities) 31/12/2025 500,000 Short Breaks - Child Services 05/01/2026 14,000,000 Training and Employability Framework 30/01/2026 28,000,000 Payment Acceptance 31/01/2026 557,500 The Supply and Fitting of Tyres for Vehicles and Plant 31/01/2026 2,200,000 Blue Badge Digital Service Blue Badge Printing and Fulfilment Services 04/02/2026 75,000 Supply, Installation and Maintenance of a Corporate Telematics Solution 28/02/2026 600,000 Supply of Paint and Sundries 03/03/2026 600,000 Video Conferencing Solution for schools 20/03/2026 150,000 167
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Contract Description Expected Award Date Estimated Value (£) Lone Working Software 31/03/2026 160,000 Day and Crisis Support for Adults with Mental Health Problems 31/03/2026 1,000,000 Day Care Services 31/03/2026 1,000,000 Befriending services to vulnerable children and young people 31/03/2026 800,000 Pest Control, Industrial Cleaning and Other Environmental Services 31/03/2026 4,000,000 Advocacy and participation for children and young people 31/03/2026 120,000 Supply and Delivery of Personal Protective Equipment (PPE) 31/03/2026 3,000,000 Technology Peripherals and infrastructure 31/03/2026 600,000 Adult Carers Service 31/03/2026 4,500,000 Void Property Protection 31/03/2026 400,000 Installation of Door and Door Entry Systems 31/03/2026 400,000 168
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Contract Description Expected Award Date Estimated Value (£) Provision of ICT Managed Security 31/03/2026 300,000 Young Peoples Carer Service 31/03/2026 4,500,000 ICT Managed Security 31/03/2026 680,000 Printing and Issue of Postal Votes, Printing of Ballot Papers and Postal Vote Management System 31/03/2026 880,000 169
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 30 October 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Update of the Finance and Corporate Resources Risk Register and Risk Control Plan 1. Purpose of Report 1.1. The purpose of the report is to:-[purpose] present an update on the Risk Register and Risk Control actions for Finance and Corporate Resources [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [ (1) that the content of the Resource Risk Register following review, detailed at Appendix 1, be noted; and (2) that it be noted that the outstanding Risk Control Actions will be progressed by relevant officers. [1recs] 3. Background 3.1. The Council’s Risk Management Strategy promotes consideration of risk in service delivery, planning and decision-making processes. The strategy requires Resources to record and review risks and control actions regularly. Finance and Corporate Resources follow the guidance in developing, monitoring, and updating the risk register on an ongoing basis. 3.2. The purpose of the register is to ensure that the Resource is fully aware of its top risks; that these risks are prioritised; and that controls are in place to eliminate or minimise the impact of the risks. 3.3. The Resource scores the risks in accordance with the council scoring mechanism, based on likelihood and impact. This results in risks being scored between one and twenty five (low – very high). 3.4. Risks are scored on their inherent score (risk if we do nothing) and their residual risk (risk after applying controls). 3.5. The last update of the Finance and Corporate Resources Risk Register was reported to the Committee on 6 December 2023. 3.6. The Resource’s top risk register and risk control plan has been reviewed. This work was completed in September 2024. 13 171
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3.7. The Central Risk Management team annually review Resource compliance with the Risk Management Strategy. The outcome of the 2023/2024 review identified that Finance and Corporate Resources achieved 100 per cent compliance, scoring 45 out of a possible 45. 4. Resource Risk Management 4.1. Each Resource has a Resource Risk Management Group which has responsibility for the promotion and management of risk. 4.2. The Finance and Corporate Resources Risk Management Group continues to consult on a regular basis. 4.3. The work of the group over the last year has focused on the review and update of the Resource Risk Register and ensuring that the register reflected the Council Plan and individual Service Plans. 5. Risk Register 5.1. Work has been completed by the Resource Risk Group to finalise the review of the Resource Risk Register. The update considered risks at a Service level, as well as strategic council risks. 5.2. The Resource Risk Register will be monitored on an ongoing basis to allow new risks to be added and for the control measures and scores of the existing risks to be reviewed considering new information. 5.3. Risks can result from internal or external influences, with examples being the impact of projected funding cuts, legislative changes, or the impact of internal service changes. 5.4. The development process for the Resource Plan requires a risk assessment process to be undertaken as appropriate resulting in some actions within the Resource Plan having a corresponding risk identified within the risk register. 5.5. The main changes to the register are summarised below:- Three new very high risks have been added:- The Council inherits commercially unviable shopping centres due to the financial failure of existing owner/management companies resulting in significant financial and operational liabilities transferring to the Council. The Council fails to comply with its statutory duties by not conducting sufficiently robust impact assessments where the same are required, including in respect of budget/service redesign proposals, leading to potential legal and financial challenges, which could result in failure to deliver those proposals The Council fails to comply with or meet the expected standards of scrutiny and deliver the improvement actions identified by regulatory bodies Some key risk wordings have been updated to reflect the current status of risks and/or to provide more straightforward and understandable risk descriptions The risk score for ‘Fraud, theft, organised crime and cyber attacks’ has increased from 12 to 20. Whilst controls in this area have been assessed as adequate, the threat landscape is very active at the moment and shows no signs of easing The residual risk score in respect of ‘Lack of capacity and skills to meet increased service demands’ has increased from 9 to12 in light of a shift in supply/demand of officers and recruitment difficulties 172
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The risk score has reduced from 16 to 9 in relation to the ‘Implications of the Scottish Fire and Rescue Service Unwanted Fire Alarm Signals Policy within the council's non-domestic estate’ risk. The continuing risk in this area is mainly in respect of property damage due to a fire when the property is unoccupied out of hours. Our property claims history indicates that the risk of fires in non-domestic properties is low, and additionally our schools are protected either by sprinklers or fire suppression systems, which further mitigate this risk The ‘Community Wealth Building Strategy’ risk score has reduced from 16 to 9 to align this risk with the risks for the Council’s other plans and strategies The ‘IT development/functionality’ risk description has been widened to encompass implementation of new systems. This reflects the three significant IT projects which continue to be progressed at present for the Integrated Housing Management System, the SWIS+ replacement (Liquidlogic) and Fusion The risk score for ‘Failure in delivery of electoral events’ has increased from 4 to 9 after re-evaluation. 5.6. Risks scored 15 to 25 are considered to be very high risks and risks scored 8 to 12 are considered to be high risks. Very high and high risks are monitored closely. The top risks identified for the Resource, that is those that are residually scored as being very high and high, are attached at Appendix 1. 5.7. Appendix 2 provides a comparison of risk scores for 2023 and 2024. This appendix also details changes in risk descriptions. 5.8. Risks evaluated residually as being medium or low risk will be monitored to ensure that they continue to be adequately managed. 6. Insurance hotspots and claim mitigation 6.1. There have been no specific insurance hotspot areas identified for Finance and Corporate Resources. 6.2. The Risk and Insurance Team are leading on corporate initiatives to mitigate against liability, motor, and property insurance claims. This includes a property insurer survey programme; a Health and Safety/training review undertaken by the Council’s claims handlers; and ongoing development of driving at work training, with support from Employee Development. 7. Horizon scanning 7.1. Through wider analysis and discussion with the council’s Risk Sponsors Group, areas that could pose potential threats and risks or are emerging issues and opportunities that could affect the council were identified. Areas identified are listed below:- Transformational Change The Council is embarking upon a transformational change programme which will include a series of Cross-Cutting Reviews, focussing on council-wide activities rather than individual Resources. Monitoring of the delivery of transformational change reviews will inform whether an overarching ‘transformational change’ risk requires to be developed and added to the top risk register. Outcomes from the reviews offer mitigation to the top risk on funding. 173
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Scotland Excel Supply Chain Intelligence Report A recent Scotland Excel Supply Chain Intelligence report highlights a significant number national and global issues that will present supply chain challenges. This report has been circulated throughout the council and Resources are being encouraged to prepare and where possible put plans in place to react to the challenges that arise. A further intelligence report is due to be provided by the end of the year. Artificial Intelligence As the capabilities of Artificial Intelligence (AI) continue to evolve, there are potential implications for the Council that warrant close monitoring. While AI offers opportunities to enhance efficiency and service delivery, it also presents risks such as ethical concerns, data privacy issues, and potential displacement of jobs within the public sector. The rapid pace of AI development may outstrip existing regulatory frameworks, leading to challenges in governance and accountability. Although AI is not currently included in the risk register, it is important to remain vigilant, particularly in areas such as automated decision- making, cybersecurity threats, and the integration of AI-driven tools in public services. 7.2. These areas will continue to be monitored to ensure that the council is adequately prepared to respond where required. 8. Scope and appetite for risk 8.1. The Council aims to be risk embracing, that is it will accept a tolerable level of risk in seeking service efficiencies and in agreeing control measures. 8.2. The level of risk facing the Council is measured both before (inherent risk) and after (residual risk) consideration of controls. The council should never carry a very high residual risk exposure as this would indicate instability, but a low residual risk exposure should also be avoided as this indicates lack of innovation. 8.3. The Council’s universal risk tolerance levels are noted within the risk management strategy, with the ideal risk profile defined as:- No more than 10 per cent of residual risks at a very high level No more than 15 per cent of risks at a high level Around 50 to 60 per cent of residual risks at a medium level No more than 30 per cent of residual risks at a low level 174
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8.4. Table 1 below shows Finance and Corporate Resources risk heat map, i.e. it details the total number of risks for each individual residual risk score. Table 2 below notes the overall risk profile for Finance and Corporate Resources risks. Table 1 – Finance and Corporate Resources Risk Heat Map Likelihood 5 Almost Certain 3 4 Likely 5 4 1 3 Possible 4 9 3 2 Unlikely 1 10 12 5 1 Rare 2 8 7 1 Negligible 2 Minor 3 Moderate 4 Major 5 Catastrophic Impact Table 2 – Finance and Corporate Resources Risk Profile Risk Category Risk Rating Number of residual risks Percentage of residual risks 1 Very high 8 11% 2 High 22 29% 3 Medium 26 35% 4 Low 18 24% 74 100.0% 8.5. Despite the fact that the profile noted in Table 2 is out with the ideal universal risk exposure defined by the Risk Management Strategy, this risk exposure is reasonable given the number of high level risks currently being faced by the Resource. 8.6. Finance and Corporate Resources has ensured that all inherent risks scored at a very high and high level have cost effective control measures in place. Where further control measures are required, these are included within the Resource risk control plan. 8.7. The main changes to the risk profile from last year are:- 3 new very high risks have been reported The Council fails to comply with or meet the expected standards of scrutiny and deliver the improvement actions identified by regulatory bodies The Council fails to comply with its statutory duties by not conducting sufficiently robust impact assessments where the same are required in respect of budget/service redesign proposals, leading to potential legal and financial challenges, which could result in failure to deliver those proposals The Council inherits commercially unviable shopping centres due to the financial failure of existing owner/management companies resulting in significant financial and operational liabilities transferring to the Council 1 risk has moved from being high up to very high:- Fraud, theft, organised crime and cyber attacks 175
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2 risks have moved from being very high down to high:- Implications of the Scottish Fire and Rescue Service Unwanted Fire Alarm Signals Policy within the council's non-domestic estate The Council fails to deliver the objectives of the Community Wealth Building Strategy 1 risk has moved from being a medium to a high risk:- Failure in delivery of election events 9. Risk Control Actions 9.1. 6 actions due for completion during 2023/24 have been completed. 75 per cent (6/8) of control actions were completed on time against an overall Resource target of 90 per cent. 1 action, ‘Develop neighbourhood plans in East Kilbride and Hamilton’, has been delayed and carried forward to the 2024/2025 risk control plan. 9.2. 1 further action has been part completed ‘A2D - Digital solution procured and implemented’. The Alarm Receiving Centre Digital Solution has been procured; however, implementation has been delayed by a national communications issue that manifested. The Council are awaiting further information from the supplier regarding the implementation. The outstanding part of this action has been caried forward to the 2024/2025 risk control plan. 9.3. 1 risk control action, ‘Communications to be developed to promote and increase awareness of the Community Plan with Partners, Businesses and Communities’ that was due for delivery by the end of June 2024 has been completed on time. 9.4. Details of the completion of risk control actions during 2023/2024 and 2024/2025 to date are contained in Table 3 below. Table 3 – Completion of risk control actions 2023/2024 2024/25 (as at 31 August 2024) Total number of actions due 8 1 Completed on time 6 1 Carried forward to 2023/24 2 0 To be completed at a later date 0 14 9.5. Progress with completion of Resource Risk Control Actions is monitored by the Central Risk Management team. This is also reviewed by the Resource Risk Group. 9.6. There are currently 14 risk control actions due for completion during the remainder of 2024/2025. The Committee is asked to note that the outstanding actions to mitigate risks within the Risk Control Plan will be progressed by the relevant officers. 10. Three lines model 10.1. The ‘three lines’ model was developed by the Institute of Internal Auditors. When using this model, risk controls are categorised under three lines of defence. This aims to provide assurance around the adequacy of control measures that are in place to mitigate strategic risks, identify control descriptions that need amendment to clearly link these to the mitigation of the risk and to highlight any residual gaps in controls that require to be addressed. 176
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10.2. Internal Audit work on the three lines model for the top risks is concluding and Resource Risk Sponsors will now be provided with individual analysis and guidance to support them in developing further controls to close any gaps identified from the three lines approach for the council top risks that they lead on. 10.3. The guidance will cover the following areas:- introduction and explanation of the three lines model a summary of all of the top risks that the Resource is responsible for along with a percentage analysis (Percentage split of how the existing controls fall into each of the three lines, highlighting gaps for consideration) some advice for each Resource on how controls can be developed (using specific examples) to provide a good coverage of controls across the three lines for each risk area 11. Major projects, partnerships or change 11.1. Within Finance and Corporate Resources 2 partnerships have been identified. One of these is considered to be high risk, the Community Planning Partnership (CPP). The remaining partnership (Clyde Valley Learning Partnership) has been assessed as being low risk. 11.2. Appropriate risk management arrangements are in place for the CPP with regular reviews and reports on their risk register and action plan presented to the CPP Board. 12. Review of the Risk Management Strategy 12.1. To comply with best practice and to ensure it is fit for purpose, a review the Risk Management Strategy has been undertaken this year. The review was undertaken by the Risk Management team, with input from the Council’s Risk Sponsors. 12.2. There have been no fundamental changes to the strategy. The main revisions are summarised below:- A general refresh to bring the strategy up to date including refences to revised information contained within Connect Updated opening Chief Executive Statement Introduction of guidance from the Institute of Internal Audit three lines model, to allow a better means of recording and categorising risk controls Revisions to the risk matrix categories (low, medium, high and very high) to improve prioritisation and focus mitigation on higher scored risks Updated risk tolerance levels to provide a better balance on previously set levels and acknowledge requirement to accept a higher level of risk 12.3. In summary the strategy details:- A policy statement which sets out the council’s commitment to risk management, as one of the principal elements of good governance Encouragement of reasonable risk taking in order to make service improvements and enable positive outcomes; the implementation of mitigating control measures to avoid or reduce the impact of losses and deterioration in services; the preparation and testing of business continuity plans for responding to emergency events Clear aims, objectives and measures of success How and when to apply risk management Roles and responsibilities for employees at all levels in the Council 177
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The Council’s risk tolerance level when seeking opportunities, services efficiencies and in agreeing control measures Core requirements for Resources Monitoring and Reporting arrangements 12.4. The revised strategy will take effect from 1 April 2025, to allow to final round of 2024/2025 risk reporting to be completed using existing scoring and tolerance guidance. The strategy will be issued via a management bulletin and the Risk Sponsors Group and will be available on the council’s intranet. 13. Next steps 13.1. The Resource Risk Management Group will continue to consult on a regular basis. The risk register will be reviewed on an ongoing basis by the group to ensure that risks remain valid for the appropriate Service areas and to identify new areas of risk that affect the Resource. An update report will be provided to the Committee on an annual basis. 14. Employee Implications 14.1. Time will be required by the Resource Risk Management Group in the management of the Resource Risk Register and Risk Control Plan. 15. Financial Implications 15.1. There are no direct financial implications associated with the Resource’s top risks. There are a number of proposed risks which are classified under the heading of financial. Where this is the case, the appropriate controls and actions have been included in the risk control cards and progress will be monitored. 16. Climate Change, Sustainability and Environmental Implications 16.1. Sustainable development issues are included within the Council’s top risk register through being linked directly to the Council plan objective ‘make communities safer, stronger and sustainable’ 17. Other Implications 17.1. Failure to demonstrate that risk is actively considered and managed cannot only lead to avoidable financial loss but could also affect delivery of services and could affect the Resources’ reputation. 18. Equality Impact Assessment and Consultation Arrangements 18.1. This report does not introduce a new policy, function or strategy or recommend a change to existing policy, function or strategy and therefore, no impact assessment is required. 18.2. Consultation on the content of this report has been undertaken with the Resource Management Team. Jackie Taylor Executive Director (Finance and Corporate Resources) 8 October 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective and efficient 178
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Previous References Report to Finance and Corporate Resources – 6 December 2023 – Update of Finance and Corporate Resources Risk Register and Risk Control Plan List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Craig Fergusson, Head of Finance (Transactions) Ext: 4951 (Tel: 01698 454951) E-mail: craig.fergusson@southlanarkshire.gov.uk 179
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Appendix 1 Finance and Corporate Resources Risk Register (as at September 2024) Extract of risks with residual score category of Very High and High Risk Category Key risk Inherent Risk Score Sample of Controls Residual Risk Score 1 Very High (15-25) The Budget Gap that the council is facing across the medium term is the biggest risk faced by the Council. The Budget Gap is the result of the continued real terms reduction in Government funding as well as the increased demand and increased cost of services including the significant impact of price increases on areas such as inflationary increases on utilities, and increased staff costs due to pay awards. Reduced fees/income received by the Council would add to budget pressures across Services Council Top Risk 25 • An embedded and systematic approach to savings identification • Robust processes in place to report annual budget and Council Tax proposals to Elected Members • Council’s approved long term financial strategy 20 The council, in conjunction with its partners, is unable to provide the required support to reducing the overall impact of the costs of living crisis on households in South Lanarkshire resulting in increasing levels of poverty, debt, and poorer outcomes for people Council Top Risk 25 • Debt and money advice from the Money Matters Advice Service • Provision of crisis and community care grants from the Scottish Welfare Fund • Tenants Sustainment Fund 20 The council’s operations are affected by fraud, theft, organised crime and cyber attacks Council Top Risk 25 • Anti-Fraud and Corruption Strategy • Whistle-blowing procedures • Cyber security and information security training • Dissemination of fraud alerts 20 The council fails to comply with or meet the expected standards of scrutiny and deliver the 25 • Regular communication with regulatory bodies • Improvement plans developed and progressed 20 180
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improvement actions identified by regulatory bodies * Council Top Risk Disruption to council services as a result of industrial action Council Top Risk 20 • National negotiations to resolve the pay issues • Communications in place to residents affected via social media channels 16 The council fails to comply with its statutory duties by not conducting sufficiently robust impact assessments where the same are required in respect of budget/service redesign proposals, leading to potential legal and financial challenges, which could result in failure to deliver those proposals * Council Top Risk 20 • Implementation of consistent Integrated Impact Assessment approach throughout the council 16 The council fails meet statutory and legislative duties in respect of public protection Council Top Risk 25 • Resilience response plans to respond to disruption to community alarm service 16 The council inherits commercially unviable shopping centres due to the financial failure of existing owner/management companies resulting in significant financial and operational liabilities transferring to the council * Council Top Risk 20 • Options appraisals undertaken • Retention of professional expertise – property management; legal etc. 16 2 High (8-12) Failure to fulfil emergency response commitments befitting the council’s status as a Category One (emergency) responder Council Top Risk 25 • Media response policy • IT business continuity plans • Emergency Management Team 12 The council does not have the appropriate emergency/business continuity plans; contingency arrangements or partnerships in 25 • Range of supports in place to allow agile working • Wellbeing Hub – counselling; CBT; online activities • Enhanced financial monitoring 12 181
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place to respond to/or recover from a pandemic/endemic event. Council Top Risk Procurement activity is affected by supply chain issues; a lack of resources; non-compliance or legal challenge Council Top Risk 25 • Procurement Strategy and action plan • Contracts register in place • Procurement Network Group 12 Lack of capacity and skills to meet increased service demands Council Top Risk 20 • Workforce Strategy • Performance Appraisal Process • Learning and Development Strategy 12 Information Governance not subject to adequate control Council Top Risk 20 • Awareness raising • Information Governance Group in place • Information Governance Strategy 12 Historic childhood abuse Council Top Risk 16 • Regular actuarial reviews of post insurance fund exposures undertaken to establish potential liability for the council 12 The council is materially affected by the implications arising from the National Care Service Bill Council Top Risk 16 • Reports presented to Committee • Monitoring of progress of the Bill through the Scottish Parliament 12 Insurance fund insufficient to meet known liabilities and is further impacted by a failure to implement mitigating actions 20 • Formalised approach adopted to projection analysis • Ongoing management of claims trends (hot spot reviews/management reports) 12 Implications of the Scottish Fire and Rescue Service Unwanted Fire Alarm Signals Policy within the council's non-domestic estate Council Top Risk 25 • Review of building evacuation plans • Review of alarm systems to ascertain upgrade requirements. • Funding made available to upgrade alarm systems 9 182
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IT development, functionality and implementation of new systems does not support service delivery to secure efficiencies Council Top Risk 20 • IT Asset Management Plan • ICT Development Fund • IT Programme Board 9 The council fails to deliver the objectives of the Community Wealth Building Strategy Council Top Risk 20 • Supplier Development Programme provides training to businesses on how to bid for contracts • SLC are a living wage anchor organisation • CWB Commission and Progress Groups in place to oversee progress and delivery of the Strategy 9 Difficulties in placing insurance cover 16 • Support from appointed insurance broker • Sound experience in placing covers • Regular reviews to ensure optimal balance between retention of risk and purchased covers 9 Loss of Administration IT Systems 12 • Able to access IT back up • Use local drives or revert to a manual process, if possible • Meetings could be held in the traditional manner, i.e. in person 9 Inaccurate information relating to council services reported via media 12 • Timeous response to media enquiries • Guidelines on media enquiries contained within Corporate Standards • Contact sheets provided to the media 9 Audit plan not delivered 12 • Managed systematic approach to work allocation and monitoring arrangements • Capacity planning 9 Gap in data analytical skills impacting the development of the internal audit function. 9 • Formal strategy being developed for 2024/2025 (including a training plan). 9 Failure in delivery of election events * 15 • Early planning and timetabling of tasks 9 183
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• National performance standards met or exceeded and reviewed regularly Failure to ensure the health, safety and wellbeing of employees and the protection of service users and members of the public in the delivery of council services Council Top Risk 20 • Occupational Health and Safety Management System embedded throughout the Council • Risk assessments and safe systems of work developed and implemented • Resource H&S Groups in place 8 Failure to achieve the outcomes of the Community Plan Council Top Risk 20 • Partnership Progress Group established • Community Engagement Manager and team in place • Neighbourhood plans developed 8 Failure to achieve the outcomes of the Council Plan Council Top Risk 16 • New Council plan approved in June 2022 and all plans, policies and strategies aligned with the new priorities and outcomes across the council • Bi-Annual performance reporting and annual performance spotlights 8 Community Alarms - Failure to properly prepare and successfully transition from the current analogue service to a digital solution within the pre-determined timescale 20 • Project plan in place • Project Review Board established • Sessions held to scope full organisation requirements 8 Failure to manage financial aspects of City Deal 25 • Financial aspects reviewed for each business case at all stages of the project • Assurance frameworks • Specific project risk registers in place 8 ‘*’ indicates new risk added this year 184
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Appendix 2: Comparison 2024 and 2023 council top risk register Risk Category Risk Category Key risk 2023 Residual risk score 2024 Residual risk score Change in residual risk scores Other changes 1 Very High (15-25) The Budget Gap that the council is facing across the medium term is the biggest risk faced by the Council. The Budget Gap is the result of the continued real terms reduction in Government funding as well as the increased demand and increased cost of services including the significant impact of price increases on areas such as inflationary increases on utilities, and increased staff costs due to pay awards. Reduced fees/income received by the Council would add to budget pressures across Services. Council Top Risk 20 20 = Amended wording The council, in conjunction with its partners, is unable to provide the required support to reducing the overall impact of the costs of living crisis on households in South Lanarkshire resulting in increasing levels of poverty, debt, and poorer outcomes for people. Council Top Risk 20 20 = Amended wording The council’s operations are affected by fraud, theft, organised crime and cyber attacks. Council Top Risk 12 20 Amended wording The council fails to comply with or meet the expected standards of scrutiny and deliver the improvement actions identified by regulatory bodies. Council Top Risk - 20 New Disruption to council services as a result of industrial action. Council Top Risk 16 16 = 185
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The council fails to comply with its statutory duties by not conducting sufficiently robust impact assessments where the same are required in respect of budget/service redesign proposals, leading to potential legal and financial challenges, which could result in failure to deliver those proposals. Council Top Risk - 16 New The council fails meet statutory and legislative duties in respect of public protection. Council Top Risk 16 16 = Amended wording The council inherits commercially unviable shopping centres due to the financial failure of existing owner/management companies resulting in significant financial and operational liabilities transferring to the council. Council Top Risk - 16 New 2 High (8-12) Failure to fulfil emergency response commitments befitting the council’s status as a Category One (emergency) responder. Council Top Risk 12 12 = The council does not have the appropriate emergency / business continuity plans; contingency arrangements or partnerships in place to respond to/or recover from a pandemic/endemic event. Council Top Risk 12 12 = Procurement activity is affected by supply chain issues; a lack of resources; non-compliance or legal challenge. Council Top Risk 12 12 = Lack of capacity and skills to meet increased service demands. Council Top Risk 9 12 186
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Information Governance not subject to adequate control. Council Top Risk 12 12 = Historic childhood abuse. Council Top Risk 12 12 = The council is materially affected by the implications arising from the National Care Service Bill. Council Top Risk 12 12 = Insurance fund insufficient to meet known liabilities and is further impacted by a failure to implement mitigating actions 12 12 = Implications of the Scottish Fire and Rescue Service Unwanted Fire Alarm Signals Policy within the council's non-domestic estate. Council Top Risk 16 9 IT development, functionality and implementation of new systems does not support service delivery to secure efficiencies. Council Top Risk 9 9 = Amended wording The council fails to deliver the objectives of the Community Wealth Building Strategy. Council Top Risk 16 9 Difficulties in placing insurance cover 9 9 = Loss of Administration IT Systems 9 9 = Inaccurate information relating to council services reported via media 9 9 = Audit plan not delivered 9 9 = Gap in data analytical skills impacting the development of the internal audit function. 9 9 = Failure in delivery of election events 4 9 Failure to ensure the health, safety and wellbeing of employees and the protection of service users and members of the public in the delivery of 8 8 = 187
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council services. Council Top Risk Failure to achieve the outcomes of the Community Plan. Council Top Risk 8 8 = Failure to achieve the outcomes of the Council Plan. Council Top Risk 8 8 = Community Alarms - Failure to properly prepare and successfully transition from the current analogue service to a digital solution within the pre- determined timescale 8 8 = Failure to manage financial aspects of City Deal 8 8 = 188