Agenda Document Pack - Finance and Corporate Resources Committee - 07/09/2022
South Lanarkshire Council · 7 September 2022
Back to Finance and Corporate Resources Committee — 7 September 2022 and its agenda
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Council Offices, Almada Street Hamilton, ML3 0AA Tuesday, 30 August 2022 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, 07 September 2022 Time: 14:00 Venue: Hybrid - Council Chamber, Council Offices, Almada Street, Hamilton, ML3 0AA The business to be considered at the meeting is listed overleaf. Yours sincerely Cleland Sneddon 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, Colin Dewar, 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 Substitutes John Bradley, Archie Buchanan, Ross Gowland, Gavin Keatt, Susan Kerr, Ross Lambie, Martin Lennon, Richard Lockhart, Carol Nugent, Norman Rae, Dr Ali Salamati, David Watson 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Appeals Panel Minutes of the Appeals Panel held on 9 and 11 August 2022 submitted for approval as a correct record. (Copy attached) 5 - 8 Monitoring Item(s) 3 Revenue Budget Monitoring 2021/2022 - Finance and Corporate Resources Report dated 26 July 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 9 - 20 4 Revenue Budget Monitoring 2022/2023 - Finance and Corporate Resources Report dated 28 July 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 21 - 30 5 Capital Budget Monitoring 2021/2022 - Finance and Corporate Resources Report dated 17 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 31 - 34 6 Capital Budget Monitoring 2022/2023 - Finance and Corporate Resources Report dated 17 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 35 - 38 7 Finance and Corporate Resources – Workforce Monitoring – April to June 2022 Report dated 15 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 39 - 46 8 Council-wide Workforce Monitoring – April to June 2022 Report dated 15 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 47 - 68 9 Treasury Management Activity – 2022/2023 First Quarter Review Report dated 31 July 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 69 - 76 Item(s) for Decision 10 Prudential Indicators, Treasury Management Activity and Annual Investment Report 2021/2022 Report dated 16 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 77 - 98 11 Revenue Collection and Approval for Write Offs – 2021/2022 Report dated 11 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 99 - 102 12 Revenue Collection and Approval for Write Offs Report dated 11 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 103 - 108 2
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13 2022/2023 Information and Communication Technology (ICT) Asset Management Plan Report dated 15 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 109 - 128 14 Finance and Corporate Resources Workforce Plan 2022 to 2025 Report dated 28 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 129 - 138 Item(s) for Noting 15 Common Good - Update Report dated 16 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 139 - 144 16 Governance of Charitable Trust Funds – 2021/2022 Position Report dated 16 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 145 - 148 17 Finance and Corporate Resource Plan Quarter 4 Progress Report 2021/2022 Report dated 27 June 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 149 - 170 18 Finance and Corporate Resource Plan 2022/2023 Report dated 24 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 171 - 188 19 Annual Procurement Report 2021/2022 Report dated 17 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 189 - 234 20 Procurement Strategy - Update Report dated 5 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 235 - 258 21 Notification of Contracts Awarded: October 2021 to March 2022 Report dated 9 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 259 - 266 22 Early Retirement Voluntary Severance and Switch 2 Report dated 5 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 267 - 272 23 Safety at Sports Grounds - Re-issue of General Safety Certificate for New Douglas Park Report dated 17 August 2022 by the Executive Director (Finance and Corporate Resources). (Copy attached) 273 - 276 Urgent Business 24 Urgent Business Any other items of business which the Chair decides are urgent. 3
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For further information, please contact:- Clerk Name: Carol Lyon Clerk Telephone: 07385370065 Clerk Email: carol.lyon@southlanarkshire.gov.uk 4
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Agenda Item APPEALS PANEL Minutes of meeting held in Committee Room 5, Council Offices, Almada Street, Hamilton on 9 August 2022 Chair: Councillor Lesley McDonald Councillors Present: Councillor Katy Loudon, Councillor Mo Razzaq Attending: Finance and Corporate Resources H Calley, Administration Officer; E Maxwell, HR Business Manager 1 Declaration of Interests No interests were declared. 2 Urgent Business There were no items of urgent business. 3 Exclusion of Press and Public The Panel decided: that, in terms of Section 50A(4) of the Local Government (Scotland) Act 1973, the press and public be excluded from the meeting for the next item of business on the grounds that it was likely that there would be disclosure of exempt information in terms of Paragraph 1 of Part I of Schedule 7A of the Act. 4 Appeal Against Dismissal The Panel considered an appeal (Ref 3/22) by an employee against their dismissal. The appellant was present and represented by a trade union representative. The Council was represented by a Personnel Adviser. The Council called a witness and the appellant’s representative called the appellant. All parties were heard in relation to the appeal and then withdrew from the meeting. The Panel decided: that the grounds of the appeal had not been substantiated and the appeal be not upheld. 2 5
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APPEALS PANEL Minutes of meeting held in Committee Room 5, Council Offices, Almada Street, Hamilton on 11 August 2022 Chair: Councillor Lesley McDonald Councillors Present: Councillor Katy Loudon, Councillor Mo Razzaq Attending: Finance and Corporate Resources H Calley, Administration Officer; E Maxwell, HR Business Manager 1 Declaration of Interests No interests were declared. 2 Urgent Business There were no items of urgent business. 3 Exclusion of Press and Public The Panel decided: that, in terms of Section 50A(4) of the Local Government (Scotland) Act 1973, the press and public be excluded from the meeting for the next item of business on the grounds that it was likely that there would be disclosure of exempt information in terms of Paragraph 1 of Part I of Schedule 7A of the Act. 4 Appeal Against Dismissal The Panel considered an appeal (Ref 2/22) by an employee against their dismissal. The appellant was present and represented by a trade union representative. The Council was represented by a Personnel Adviser. The Council called a witness and the appellant’s representative called the appellant. All parties were heard in relation to the appeal and then withdrew from the meeting. The Panel decided: that the grounds of the appeal had been substantiated in part and the appeal be upheld to the extent that:- the dismissal be replaced by a period of unpaid absence from the date of dismissal until 10 July 2022 the appellant be issued with a final written warning 2 7
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Revenue Budget Monitoring 2021/2022 - Finance and Corporate Resources 1. Purpose of Report 1.1. The purpose of the report is to: [p provide information on the actual expenditure measured against the revenue budget for the period 1 April 2021 to 31 March 2022 for Finance and Corporate Resources. [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s): [recs] (1) that the Finance and Corporate Resources’ financial outturn position as at 31 March 2022 is an overspend of £7.356 million including costs of COVID-19 but before transfer to reserves and an overspend of £8.229 million after transfers to reserves, as detailed in Appendix A of the report, be noted; and (2) that the Finance and Corporate Resources’ financial outturn position as at 31 March 2022 is a break even position after excluding the costs of COVID-19 and after transfers to reserves. 3. Background 3.1. This is the final revenue budget monitoring report presented to the Finance and Corporate Resources Committee for the financial year 2021/2022. 3.2. The report details the financial position for Finance and Corporate Resources on Appendix A, along with variance explanations in appendices B to I as appropriate. 3.3. The Resource has incurred expenditure in relation to COVID-19, and in order to separate these costs from the Resources’ normal activities, a COVID-19 Service has been included at Appendix I. 4. Employee Implications 4.1. None. 5. Financial Implications 5.1. Year End Position as at 31 March 2022: The year end position is an overspend of £7.356 million before approved transfers to reserves and an overspend of £8.229 million after transfers to reserves. This includes the costs of COVID-19 for the Resource. Removing the costs of COVID-19 leaves a break even position for Finance and Corporate Resources 3 9
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5.2. The total cost of COVID-19 for the Resource is £8.229 million. This includes additional costs of £8.209 million as outlined in Appendix I and includes the provision of Low Income Pandemic Payments, staff costs incurred to facilitate processing of business support grants and other claims during COVID-19, as well as additional expenditure to alleviate financial insecurities. 5.3. Transfers to Reserves: The Executive Committee (2 February 2022) approved a transfer of £0.113 million to reserves to meet future commitments. 5.4. However, as a further consequence of the timing of income received from external parties and the timetable for project delivery, further transfers were approved at the year-end (Executive Committee, 29 June 2022). These total £0.760 million and take the total transfers to £0.873 million. These are detailed in appendices B to I as appropriate. 5.5. Virements to realign budgets across budget categories and with other Resources are detailed in the appendices B to I as appropriate. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 8. Other Implications 8.1. 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. 9. Equality Impact Assessment and Consultation Arrangements 9.1. 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. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Paul Manning Executive Director (Finance and Corporate Resources) 26 July 2022 Link(s) to Council Values/Priorities/Outcomes Value: Accountable, Effective, Efficient and Transparent Previous References Finance and Corporate Resources Committee - 9 February 2022 10
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List of Background Papers Financial ledger and budget monitoring results to 31 March 2022 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 11
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Appendix A SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) Finance and Corporate Resources Summary Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTERS Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 % Variance 31/03/22 £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 35,576 35,047 529 479 35,576 35,508 68 under 0.2% Property Costs 2,532 2,024 508 508 2,532 3,306 (774) over (30.6%) Supplies & Services 13,048 19,262 (6,214) (6,214) 13,048 19,031 (5,983) over (45.9%) Transport & Plant 76 74 2 2 76 86 (10) over (13.2%) Administration Costs 12,114 14,040 (1,926) (1,926) 12,114 13,267 (1,153) over (9.5%) Payments to Other Bodies 15,805 16,104 (299) (362) 15,805 15,560 245 under 1.6% Payments to Contractors 272 297 (25) (25) 272 305 (33) over (12.1%) Transfer Payments 68,085 66,261 1,824 1,824 68,085 66,262 1,823 under 2.7% Financing Charges 1,072 1,086 (14) (14) 1,072 1,024 48 under 4.5% Total Controllable Exp. 148,580 154,195 (5,615) (5,728) 148,580 154,349 (5,769) over (3.9%) Total Controllable Inc. (104,842) (101,850) (2,992) (2,992) (104,842) (103,255) (1,587) under recovered (1.5%) Net Controllable Exp. 43,738 52,345 (8,607) (8,720) 43,738 51,094 (7,356) over (16.8%) Transfer to Reserves (as at 31/03/22) 0 113 (113) 0 873 (873) - n/a Position After Transfers to Reserves (as at 31/03/22) 43,738 52,458 (8,720) 43,738 51,967 (8,229) over (18.8%) Variance Explanations These are shown in Appendices B to I as appropriate. Year-end Transfers to Reserves These are shown in Appendices B to I as appropriate. 12
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Appendix B SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) Finance - Strategy Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTERS Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 % Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 2,938 2,943 (5) (5) 2,938 2,945 (7) over (0.2%) 1 a,b Property Costs 0 0 0 0 0 0 0 - n/a Supplies & Services 27 33 (6) (6) 27 38 (11) over (40.7%) c Transport & Plant 0 0 0 0 0 1 (1) over n/a Administration Costs 149 156 (7) (7) 149 121 28 under 18.8% c Payments to Other Bodies 516 522 (6) (6) 516 517 (1) over (0.2%) Payments to Contractors 22 23 (1) (1) 22 20 2 under 9.1% Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 16 17 (1) (1) 16 21 (5) over (31.3%) Total Controllable Exp. 3,668 3,694 (26) (26) 3,668 3,663 5 under 0.1% Total Controllable Inc. (1,328) (1,354) 26 26 (1,328) (1,345) 17 over recovered 1.3% d Net Controllable Exp. 2,340 2,340 0 0 2,340 2,318 22 under 0.9% Transfer to Reserves (as at 31/03/22) 0 0 0 0 0 0 - n/a Position After Transfers to Reserves (as at 31/03/22) 2,340 2,340 0 2,340 2,318 22 under 0.9% Variance Explanations 1. Employee Costs The overspend is mainly due to lower than anticipated staff turnover across the Service. Budget Virements a. Additional Allocation of Pay Award. Net Effect £0.006m: Employee Costs £0.006m b. Allocation of Apprenticeship Levy Budget from Centre. Net Effect £0.012m: Employee Costs £0.012m c. Internal realignment of income between Strategy and Transactions to reflect current service delivery. Net Effect £0.015m: Supplies and Services £0.008m: Administration Costs £0.007m d. Internal realignment of Central Support Costs. Net Effect (£0.219m): Income (£0.219m) 13
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Appendix C SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) Finance - Transactions Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 10,767 10,593 174 174 10,767 10,597 170 under 1.6% 1,a,b Property Costs 1,773 1,533 240 240 1,773 1,774 (1) over (0.1%) c Supplies & Services 6,030 6,095 (65) (65) 6,030 6,163 (133) over (2.2%) 2,d Transport & Plant 8 4 4 4 8 3 5 under 62.5% Administration Costs 1,272 1,536 (264) (264) 1,272 1,334 (62) over (4.9%) 3,c Payments to Other Bodies 1,516 1,516 0 0 1,516 1,499 17 under 1.1% Payments to Contractors 249 273 (24) (24) 249 278 (29) over (11.6%) Transfer Payments 68,085 66,073 2,012 2,012 68,085 66,074 2,011 under 3.0% 4 Financing Charges 131 160 (29) (29) 131 166 (35) over (26.7%) Total Controllable Exp. 89,831 87,783 2,048 2,048 89,831 87,888 1,943 under 2.2% Total Controllable Inc. (71,698) (69,784) (1,914) (1,914) (71,698) (69,991) (1,707) under recovered (2.4%) 5,e Net Controllable Exp. 18,133 17,999 134 134 18,133 17,897 236 under 1.3% Transfer to Reserves (as at 31/03/22) 0 0 0 0 0 0 - n/a Position After Transfers to Reserves (as at 31/03/22) 18,133 17,999 134 18,133 17,897 236 under 1.3% Variance Explanations 1. Employee Costs The underspend reflects the turnover of staff within Benefits and Revenues and the Customer Service Centre, partially offset by an overspend on overtime. 2. Supplies and Services The overspend reflects the current requirement for IT contract payments particularly within Benefits and Revenues. 3. Administration Costs The overspend relates to the cost of postages and payments to Scotland Excel as part of the procurement contract. 4. Transfer Payments The underspend reflects the level of Housing Benefit payments for private sector tenants, offset by an under recovery of Income (see 5 below). 5. Income The under recovery relates to Housing Benefit Subsidy income, offset by reduced expenditure (see 4 above). Budget Virements a. Additional Allocation of Pay Award. Net Effect £0.186m: Employee Costs £0.186m b. Allocation of Apprenticeship Levy budget from the Centre. Net Effect £0.044m: Employee Costs £0.044m c. Internal realignment of Scottish Welfare Fund budget. Net Effect: £0.000m: Property Costs (£0.100m) and Administration Costs £0.100m d. Budget Upload for Additional Family Bridging Payments Funding. Net Effect £2.263m: Supplies and Services £2.263m e. Internal realignment of Central Support Costs: Net Effect £0.049m: Income £0.049m 14
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Appendix D SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) Audit Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 % Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 564 664 (100) (100) 564 656 (92) over (16.3%) 1 Property Costs 0 0 0 0 0 0 0 - n/a Supplies & Services 7 6 1 1 7 7 0 - 0.0% Transport & Plant 0 0 0 0 0 0 0 - n/a Administration Costs 7 5 2 2 7 6 1 under 14.3% Payments to Other Bodies 0 1 (1) (1) 0 1 (1) over n/a Payments to Contractors 0 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 4 4 0 0 4 4 0 - 0.0% Total Controllable Exp. 582 680 (98) (98) 582 674 (92) over (15.8%) Total Controllable Inc. (428) (526) 98 98 (428) (520) 92 over recovered 21.5% 2,a,b Net Controllable Exp. 154 154 0 0 154 154 0 - 0.0% Transfer to Reserves (as at 31/03/22) 0 0 0 0 0 0 - 0.0% Position After Transfers to Reserves (as at 31/03/22) 154 154 0 154 154 0 - 0.0% Variance Explanations 1. Employee Costs The overspend reflects current staffing levels offset by additional income (see 2 below). 2. Income The overspend in income reflects staff funding from the European Social Fund Budget Virements a. Internal realignment of Central Support Costs. Net Effect (£0.051m): Income (£0.051m) b. Budget realignment across services. Net Effect: £0.240m: Income £0.240m 15
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Appendix E SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) Information Technology Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 % Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 5,181 5,311 (130) (130) 5,181 5,604 (423) over (8.2%) 1,a Property Costs 579 296 283 283 579 278 301 under 52.0% 2 Supplies & Services 5,787 5,813 (26) (26) 5,787 5,673 114 under 2.0% 3,b Transport & Plant 4 16 (12) (12) 4 3 1 under 25.0% Administration Costs 1,289 1,636 (347) (347) 1,289 2,052 (763) over (59.2%) 4,c Payments to Other Bodies 30 30 0 0 30 26 4 under 13.3% Payments to Contractors 0 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 501 400 101 101 501 345 156 under 31.1% 5 Total Controllable Exp. 13,371 13,502 (131) (131) 13,371 13,981 (610) over (4.6%) Total Controllable Inc. (8,098) (8,172) 74 74 (8,098) (8,067) (31) under recovered (0.4%) a,c Net Controllable Exp. 5,273 5,330 (57) (57) 5,273 5,914 (641) over (12.2%) Transfer to Reserves (as at 31/03/22) 0 0 0 0 0 0 - n/a Position After Transfers to Reserves (as at 31/03/22) 5,273 5,330 (57) 5,273 5,914 (641) over (12.2%) Variance Explanations 1. Employee Costs The overspend is mainly due to lower than anticipated staff turnover across the Service to date. 2. Property Costs This reflects the reduced spend on utilities as we move out of the Caird Centre as we move to the new Cloud Hosting Service (See 4 below). 3. Supplies and Services The underspend reflects the reduction in expenditure on various equipment purchase lines as we move to the new Cloud Hosting Service (see 4 below) 4. Administration Costs The overspend reflects the level of service delivery to date and the move to the new cloud hosting service and is offset by underspends in Property Costs, Supplies and Services and Financing Charges. 5. Financing Charges The underspend in financing charges which is a result of service delivery for IT equipment leasing is being used to offset the costs of the new cloud hosting service. Budget Virements a. Internal budget realignment of Employee Costs. Net Effect £0.000: Employee Costs: (£0.259m) and Income (£0.259m) b. Budget realignment across services. Net Effect: £0.540m: Supplies and Services £0.540m c. Internal realignment of Central Support Costs. Net Effect £0.287m: Income £0.287m 16
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Appendix F SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) Personnel Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 % Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 9,207 8,141 1,066 1,016 9,207 8,158 1,049 under 11.4% 1,a,b c,d,e Property Costs 122 140 (18) (18) 122 124 (2) over (1.6%) Supplies and Services 281 221 60 60 281 248 33 under 11.7% d Transport and Plant 21 10 11 11 21 8 13 under 61.9% Administration Costs 1,271 1,494 (223) (223) 1,271 1,482 (211) over (16.6%) 2,c,d ,g Payments to Other Bodies 3,386 3,302 84 84 3,386 2,817 569 under 16.8% 3,c,g Payments to Contractors 1 1 0 0 1 7 (6) over (600.0%) Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 42 68 (26) (26) 42 70 (28) over (66.7%) Total Controllable Exp. 14,331 13,377 954 904 14,331 12,914 1,417 under 9.9% Total Controllable Inc. (3,307) (2,867) (440) (440) (3,307) (3,730) 423 over recovered 12.8% 4,c, d,f,g Net Controllable Exp. 11,024 10,510 514 464 11,024 9,184 1,840 under 16.7% Transfer to Reserves (as at 31/03/22) 0 50 (50) 0 810 (810) over n/a Position After Transfers to Reserves (as at 31/03/22) 11,024 10,560 464 11,024 9,994 1,030 under 9.3% Variance Explanations 1. Employee Costs The underspend mainly relates to the timing of project delivery for externally funded projects. 2. Administration Costs The overspend includes a combination of additional costs in relation to advertising, employee medical charges and legal fees partly offset by additional income from recharges. 3. Payment to Other Bodies The underspend mainly reflects the timing of the commencement of employability projects. 4. Income The over recovery relates to funding for projects including European funding. Budget Virements a. Allocation of Apprenticeship Levy budget from the Centre. Net Effect £0.029m: Employee Costs £0.029m. b. Additional Allocation of Pay Award: Net Effect £0.062m: Employee Costs £0.062m. c. Employability Budget Realignments: Net Effect £1.417m: Employee Costs £0.203m, Administration Costs £0.287m, Payment to Other Bodies (£0.299m) and Income £1.226m. d. Budget realignment across services to reflect service delivery. Net Effect (£0.418m): Employee Costs £0.044m: Supplies and Services £0.044m: Administration Costs (£0.146m) and Income (£0.360m). e. Transfer of Modern Apprenticeship Money from Social Work Resources: Net Effect £0.113m: Employee Costs £0.113m. f. Internal realignment of Central Support Costs: Net Effect (£0.085m): Income (£0.085m). g. Internal Realignment to reflect service delivery: Net Effect £0.000m: Administration Costs £0.150m, Payment to Other Bodies (£0.350m) and Income £0.200m. Year End Transfers to Reserves Employability Projects underspend (£0.760m) and delayed national trauma programme (£0.050m), 17
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Appendix G SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) Administration, Legal and Licensing Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 % Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 4,040 4,139 (99) (99) 4,040 4,151 (111) over (2.7%) 1,a,b Property Costs 18 2 16 16 18 4 14 under 77.8% Supplies & Services 119 149 (30) (30) 119 217 (98) over (82.4%) 2 Transport & Plant 14 16 (2) (2) 14 15 (1) over (7.1%) Administration Costs 2,205 2,291 (86) (86) 2,205 2,282 (77) over (3.5%) 3,c Payments to Other Bodies 678 499 179 116 678 513 165 under 24.3% 4 Payments to Contractors 0 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 32 68 (36) (36) 32 69 (37) over (115.6%) Total Controllable Exp. 7,106 7,164 (58) (121) 7,106 7,251 (145) over (2.0%) Total Controllable Inc. (2,839) (2,458) (381) (381) (2,839) (2,593) (246) under recovered (8.7%) 5 Net Controllable Exp. 4,267 4,706 (439) (502) 4,267 4,658 (391) over (9.2%) Transfer to Reserves (as at 31/03/22) 0 63 (63) 0 63 (63) - n/a Position After Transfers to Reserves (as at 31/03/22) 4,267 4,769 (502) 4,267 4,721 (454) over (10.6%) Variance Explanations 1. Employee Costs This overspend is mainly due to lower than anticipated staff turnover during the year. 2. Supplies and Services This overspend has arisen as a result of a spend on IT software. 3. Administration Costs This overspend is a combination of additional costs for stationary and other administration costs. 4. Payment to Other Bodies This underspend is due to a reduction in the spend on grants as a result of the pandemic. 5. Income The under recovery in income reflects the reduction in demand for licensing and registration services including income from private taxi hire operators, marriages and birth registrations. Budget Virements a. Allocation of budget for Apprenticeship Levy from the Centre. Net Effect £0.015m: Employee Costs £0.015m. b. Additional Allocation of Pay Award. Net Effect £0.028m: Employee Costs £0.028m c. Local Government Elections. Net Effect £0.136m: Administration Costs £0.136m Year End Transfers to Reserves Area Committee Grants: £0.063m. 18
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Appendix H SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) Communications and Strategy Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 % Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 2,496 2,390 106 106 2,496 2,378 118 under 4.7% 1,a,b Property Costs 40 41 (1) (1) 40 19 21 under 52.5% Supplies & Services 705 563 142 142 705 615 90 under 12.8% 2 Transport & Plant 29 28 1 1 29 30 (1) over (3.4%) Administration Costs 1,110 1,020 90 90 1,110 1,085 25 under 2.3% Payments to Other Bodies 802 797 5 5 802 774 28 under 3.5% Payments to Contractors 0 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 346 369 (23) (23) 346 347 (1) over (0.3%) Total Controllable Exp. 5,528 5,208 320 320 5,528 5,248 280 under 5.1% Total Controllable Inc. (2,981) (2,526) (455) (455) (2,981) (2,488) (493) under recovered (16.5%) 3,c Net Controllable Exp. 2,547 2,682 (135) (135) 2,547 2,760 (213) over (8.4%) Transfer to Reserves (as at 31/03/22) 0 0 0 0 0 0 - n/a Position After Transfers to Reserves (as at 31/03/22) 2,547 2,682 (135) 2,547 2,760 (213) over (8.4%) Variance Explanations 1. Employee Costs The underspend reflects turnover within the Service. 2. Supplies and Services This underspend reflects the level of demand for print room jobs throughout the year. 3. Income The under recovery in income is a result of a reduction in requirement for print room work (both internally and externally), partially offset by an underspend in employee costs. Budget Virements a. Allocation of Apprenticeship Levy budget from the Centre. Net Effect £0.007m: Employee Costs £0.007m b. Additional Allocation of Pay Award: Net Effect £0.021m: Employee Costs £0.021m c. Internal realignment of Central Support Costs: Net Effect (£0.053m): Income (£0.053m) 19
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Appendix I SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 31 March 2022 (No.14) COVID-19 Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 31/03/22 Actual BEFORE Transfers 31/03/22 Variance 31/03/22 % Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 383 866 (483) (483) 383 1,019 (636) over (165.8%) 1 Property Costs 0 12 (12) (12) 0 1,107 (1,107) over n/a 2 Supplies & Services 92 6,382 (6,290) (6,290) 92 6,070 (5,978) over (6497%) 3 Transport & Plant 0 0 0 0 0 26 (26) over n/a Administration Costs 4,811 5,902 (1,091) (1,091) 4,811 4,905 (94) over (2%) 4,a Payments to Other Bodies 8,877 9,437 (560) (560) 8,877 9,413 (536) over (6%) 5,b Payments to Contractors 0 0 0 0 0 0 0 over n/a Transfer Payments 0 188 (188) (188) 0 188 (188) over n/a 6 Financing Charges 0 0 0 0 0 2 (2) over n/a Total Controllable Exp. 14,163 22,787 (8,624) (8,624) 14,163 22,730 (8,567) over (60.5%) Total Controllable Inc. (14,163) (14,163) 0 0 (14,163) (14,521) 358 over recovered 2.5% 7 Net Controllable Exp. 0 8,624 (8,624) (8,624) 0 8,209 (8,209) over n/a Transfer to Reserves (as at 31/03/22) 0 0 0 0 0 0 - n/a Position After Transfers to Reserves (as at 31/03/22) 0 8,624 (8,624) 0 8,209 (8,209) over n/a Variance Explanations 1. Employee Costs The spend relates to overtime and includes the cost of the wellbeing helpline and Track and Trace and also additional time required to process the Business Support Grants, and other benefits including Social Welfare Payments and Council Tax Reduction Scheme applications in relation to COVID- 19. 2. Property Costs The overspend relates to additional Scottish Welfare Payments due to COVID. 3. Supplies and Services The spend mainly includes Low Income Pandemic Payments, payments to assist with Financial Insecurities including expenditure in relation to Foodbanks. 4. Administration Costs The spend relates to printing and postage costs in relation to COVID-19. 5. Payments to Other Bodies This spend is payments made to support third sector organisations. 6. Transfer Payments This spend reflects the impact of benefits for individuals in homeless accommodation. 7. Income The over recovery relates to Scottish Funding for the administration of self-isolation support payments and other grants, offset by additional employee costs. Budget Virements a Budget for COVID funding. Net Effect £0.00m. Employee Costs £0.383m, Supplies and Services £0.092m, Administration Costs £4.811m, Payments to Other Bodies £8.877m and Income (£14.163m). 20
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Revenue Budget Monitoring 2022/2023 - Finance and Corporate Resources 1. Purpose of Report 1.1. The purpose of the report is to:- [p provide information on the actual expenditure measured against the revenue budget for the period 1 April 2022 to 15 July 2022 for Finance and Corporate Resources [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the breakeven position on the Finance and Corporate Resources’ revenue budget, as detailed in Appendix A of the report, and the forecast to 31 March 2023 of breakeven, be noted; and (2) that the proposed budget virements be approved. 3. Background 3.1. This is the first revenue budget monitoring report presented to the Finance and Corporate Resources Committee for the financial year 2022/2023. 3.2. The report details the financial position for Finance and Corporate Resources on Appendix A, along with variance explanations in appendices B to H. 4. Employee Implications 4.1. None. 5. Financial Implications 5.1. As at 15 July 2022, there is a breakeven position against the phased budget. The financial forecast for the revenue budget to 31 March 2023 is a breakeven position. 5.2. Virements are proposed to realign budgets. These movements have been detailed in the appendices to this report, as appropriate. 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. 4 21
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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. Paul Manning Executive Director (Finance and Corporate Resources) 28 July 2022 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 15 July 2022 Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 22
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Appendix A SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 15 July 2022 (No.4) Finance and Corporate Resources Summary Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 15/07/22 Actual 15/07/22 Variance 15/07/22 % Variance 15/07/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 36,281 36,281 0 9,398 9,182 216 under 2.3% Property Costs 2,495 2,495 0 198 193 5 under 2.5% Supplies & Services 10,133 10,133 0 4,572 4,714 (142) over (3.1%) Transport & Plant 74 74 0 5 1 4 under 80.0% Administration Costs 6,981 6,981 0 1,940 2,025 (85) over (4.4%) Payments to Other Bodies 7,770 7,770 0 1,887 1,890 (3) over (0.2%) Payments to Contractors 271 271 0 28 28 0 - 0.0% Transfer Payments 69,107 69,107 0 15,698 15,698 0 - 0.0% Financing Charges 1,080 1,080 0 375 374 1 under 0.3% Total Controllable Exp. 134,192 134,192 0 34,101 34,105 (4) over 0.0% Total Controllable Inc. (92,542) (92,542) 0 (16,574) (16,578) 4 over recovered 0.0% Net Controllable Exp. 41,650 41,650 0 17,527 17,527 0 - 0.0% Variance Explanations Variance explanations are shown in Appendices B to H as appropriate. Budget Virements Budget virements are shown in Appendices B to H as appropriate. 23
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Appendix B SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 15 July 2022 (No.4) Finance - Strategy Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 15/07/22 Actual 15/07/22 Variance 15/07/22 % Variance 15/07/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 2,941 2,941 0 776 773 3 under 0.4% Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 20 20 0 5 8 (3) over (60.0%) Transport & Plant 0 0 0 0 0 0 - n/a Administration Costs 112 112 0 4 6 (2) over (50.0%) Payments to Other Bodies 516 516 0 177 177 0 - 0.0% Payments to Contractors 22 22 0 8 8 0 - 0.0% Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 16 16 0 1 1 0 - 0.0% Total Controllable Exp. 3,627 3,627 0 971 973 (2) over (0.2%) Total Controllable Inc. (1,604) (1,604) 0 0 0 0 - n/a Net Controllable Exp. 2,023 2,023 0 971 973 (2) over (0.2%) 24
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Appendix C SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 15 July 2022 (No.4) Finance - Transactions Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 15/07/22 Actual 15/07/22 Variance 15/07/22 % Variance 15/07/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 12,703 12,703 0 3,330 3,234 96 under 2.9% 1,a,b Property Costs 1,745 1,745 0 184 185 (1) over (0.5%) a Supplies & Services 3,856 3,856 0 1,508 1,512 (4) over (0.3%) a Transport & Plant 9 9 0 1 0 1 under 100.0% a Administration Costs 1,217 1,217 0 353 378 (25) over (7.1%) 2,a,b Payments to Other Bodies 1,499 1,499 0 870 870 0 - 0.0% Payments to Contractors 249 249 0 20 20 0 - 0.0% Transfer Payments 69,107 69,107 0 15,698 15,698 0 - 0.0% Financing Charges 141 141 0 3 3 0 - 0.0% a Total Controllable Exp. 90,526 90,526 0 21,967 21,900 67 under 0.3% Total Controllable Inc. (71,850) (71,850) 0 (15,039) (15,043) 4 over recovered 0.0% a,b Net Controllable Exp. 18,676 18,676 0 6,928 6,857 71 under 1.0% Variance Explanations 1. Employee Costs The underspend is a consequence of vacant posts within the Service, which are being considered in line with service requirements. 2. Administration Costs The overspend is a result of a combination of expenditure on postages, printing and stationery and advertising across the Service. Budget Virements a. Transfer of Money Matters Advice Services from Social Work Resources: Net Effect: £1.869m: Employee Costs £2.016m, Property Costs £0.001m, Supplies and Services £0.037m, Transport Costs £0.001m, Administration Costs £0.033m, Financing Charges £0.011m and Income (£0.230m). b. Internal Budget Realignment: Net Effect: £0.000m: Employee Costs (£0.016m), Administration Costs £0.036m and Income (£0.020m). 25
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Appendix D SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 15 July 2022 (No.4) Audit Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 15/07/22 Actual 15/07/22 Variance 15/07/22 % Variance 15/07/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 575 575 0 155 181 (26) over (16.8%) 1 Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 7 7 0 0 0 0 - 33.3% Transport & Plant 0 0 0 0 0 0 - n/a Administration Costs 7 7 0 2 1 1 under 50.0% Payments to Other Bodies 0 0 0 0 0 0 - n/a Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 4 4 0 0 0 0 - n/a Total Controllable Exp. 593 593 0 157 182 (25) over (15.9%) Total Controllable Inc. (238) (238) 0 0 (25) 25 over recovered n/a 2 Net Controllable Exp. 355 355 0 157 157 0 - 0.0% Variance Explanations 1. Employee Costs The overspend is mainly due to lower than anticipated staff turnover across the Service to date. 2. Income The overspend in income reflects staff funding from the European Social Fund. 26
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Appendix E SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 15 July 2022 (No.4) Information Technology Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 15/07/22 Actual 15/07/22 Variance 15/07/22 % Variance 15/07/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 5,203 5,203 0 1,379 1,381 (2) over (0.1%) Property Costs 579 579 0 4 2 2 under 50.0% Supplies & Services 5,259 5,259 0 2,825 2,961 (136) over (4.8%) 1 Transport & Plant 4 4 0 1 0 1 under 100.0% Administration Costs 1,289 1,289 0 450 445 5 under 1.1% Payments to Other Bodies 0 0 0 0 0 0 - n/a Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 501 501 0 284 283 1 under 0.4% Total Controllable Exp. 12,835 12,835 0 4,943 5,072 (129) over (2.7%) Total Controllable Inc. (7,740) (7,740) 0 (427) (434) 7 over recovered 1.6% Net Controllable Exp. 5,095 5,095 0 4,516 4,638 (122) over (2.7%) Variance Explanations 1. Supplies and Services The overspend reflects the costs of IT contracts in relation to software licenses and associated costs of the new Cloud Hosting Service. This will be managed within the overall Service budget. 27
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Appendix F SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 15 July 2022 (No.4) Personnel Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 15/07/22 Actual 15/07/22 Variance 15/07/22 % Variance 15/07/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 8,332 8,332 0 2,035 1,889 146 under 7.2% 1,a, b,c Property Costs 113 113 0 10 5 5 under 50.0% a Supplies & Services 192 192 0 38 53 (15) over (39.5%) a Transport & Plant 18 18 0 3 1 2 under 66.7% a Administration Costs 1,043 1,043 0 267 287 (20) over (7.5%) a Payments to Other Bodies 3,745 3,745 0 332 335 (3) over (0.9%) a,c Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 40 40 0 1 1 0 - 0.0% Total Controllable Exp. 13,483 13,483 0 2,686 2,571 115 under 4.3% Total Controllable Inc. (5,138) (5,138) 0 (162) (167) 5 over recovered 3.1% a,c Net Controllable Exp. 8,345 8,345 0 2,524 2,404 120 under 4.8% Variance Explanations 1. Employee Costs The underspend in employee costs reflects the level of modern apprentices currently required and also staff working on other funded projects. Budget Virements a. Internal Budget Realignments: Net Effect £0.000m: Employee Costs (£0.575m), Property Costs (£0.008m), Supplies and Services (£0.088m), Transport Costs (£0.002m), Administration Costs £0.285m, Payment to Other Bodies (£0.018m) and Income £0.406m. b. Transfer of Modern Apprenticeship budget from Social Work Resources: Net Effect £1.000m: Employee Costs £1.000m. c. Additional Employability funding: Net Effect £0.125m: Employee Costs £0.965m, Payment to Other Bodies £2.712m and Income (£3.552m). 28
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Appendix G SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 15 July 2022 (No.1) Administration, Legal and Licensing Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 15/07/22 Actual 15/07/22 Variance 15/07/22 % Variance 15/07/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 4,098 4,098 0 1,079 1,087 (8) over (0.7%) Property Costs 18 18 0 0 1 (1) over n/a Supplies & Services 120 120 0 15 22 (7) over (46.7%) Transport & Plant 14 14 0 0 0 0 - n/a Administration Costs 2,094 2,094 0 666 701 (35) over (5.3%) 1 Payments to Other Bodies 678 678 0 343 343 0 - 0.0% Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 32 32 0 3 3 0 - 0.0% Total Controllable Exp. 7,054 7,054 0 2,106 2,157 (51) over (2.4%) Total Controllable Inc. (2,941) (2,941) 0 (428) (431) 3 over recovered 0.7% Net Controllable Exp. 4,113 4,113 0 1,678 1,726 (48) over (2.9%) Variance Explanations 1. Administration This is a combination of small overspends associated with printing and stationary, legal expenses, postages, membership fees, and other administration costs. 29
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Appendix H SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 15 July 2022 (No.4) Communications and Strategy Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 15/07/22 Actual 15/07/22 Variance 15/07/22 % Variance 15/07/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 2,429 2,429 0 644 637 7 under 1.1% Property Costs 40 40 0 0 0 0 - n/a Supplies & Services 679 679 0 181 158 23 under 12.7% 1 Transport & Plant 29 29 0 0 0 0 - 0.0% Administration Costs 1,219 1,219 0 198 207 (9) over (4.5%) Payments to Other Bodies 1,332 1,332 0 165 165 0 - n/a Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 346 346 0 83 83 0 - 0.0% Total Controllable Exp. 6,074 6,074 0 1,271 1,250 21 under 1.7% Total Controllable Inc. (3,031) (3,031) 0 (518) (478) (40) under recovered (7.7%) 2 Net Controllable Exp. 3,043 3,043 0 753 772 (19) over (2.5%) Variance Explanations 1. Supplies and Services The underspend relates to the purchase of materials and supplies to clients for print work and is offset by an associated under recovery income. 2. Income The net under recovery of income reflects the level of demand for print work and is partly offset by the underspend in Supplies and Services Budget Virements a. Internal Budget Realignment: Net Effect £0.000m: Employee Costs (£0.094m), Supplies and Services (£0.015m) and Administration Costs £0.109m. b. Transfer of investment monies to Corporate Items / Transfer to Reserves: Net Effect: (£0.430m): Payment to Other Bodies (£0.430m) 30
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Capital Budget Monitoring 2021/2022 - 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 2021 to 31 March 2022. [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendations:- [recs] (1) that the Finance and Corporate Resources’ capital programme of £3.176 million, and expenditure for the year of £1.926 million, be noted. [1recs] 3. Background 3.1. This is the final capital monitoring report presented to the Finance and Corporate Resources Committee for the financial year 2021/2022. 3.2. As noted in the last report to this Committee (9 February 2022), the budget for Finance and Corporate Resources for financial year 2020/2021 was £3.176 million. There have been no other changes to this budget allocation since that meeting. 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. 2021/2022 Capital Programme – Final Position As detailed in Section 3.2, the total capital programme for Finance and Corporate Resources for 2021/2022 was £3.176 million. Total expenditure to the 31 March 2022 was £1.926 million, a difference of £1.250 million in comparison to the programme of £3.176 million. 5.2. The programme underspend of £1.250 million is mainly due to the timing of project spend on a number of projects. The main projects which are responsible for the underspend are the IT Infrastructure Refresh (£0.401 million) and Caird Centre project (£0.174 million) which reflects the timing of spend linked to the completion of the Caird 5 31
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Centre changeover, and the timing of spend on the Audio-Visual Upgrade (£0.389 million). 5.3. Any underspend on these projects, along with the funding, will carry forward into next financial year as required. An update on the 2022/2023 programme is detailed in a separate report to this Committee. 5.4. Accounting Adjustments While sections 5.1 to 5.3 detail the position on the Capital Programme as set, Accounting Regulations mean that adjustments are required to report spend correctly as either capital or revenue for the purposes of publishing our Annual Accounts. This includes where spend is in relation to assets that are not owned by the Council and where the spend must be classed as revenue. There is no operational impact for projects from this adjustment – it is an accounting entry only. 5.5. £0.012 million of revenue spend should be recorded as capital. The transfers above mean that for the purpose of publishing our Annual Accounts only, there is capital spend of £1.938 million. . 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. Paul Manning Executive Director (Finance and Corporate Resources) 17 August 2022 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Finance and Corporate Resources Committee, 9 February 2022 Executive Committee, 29 June 2022 List of Background Papers Financial ledger to 31 March 2022 32
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Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 33
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Appendix A South Lanarkshire Council Capital Expenditure 2021/2022 Finance and Corporate Resources Programme For Period 1 April 2021 to 31 March 2022 Finance and Corporate Resources Total Original Budget £000 Budget Adjustments £000 Slippage £000 Total Budget £000 Anticipated Spend £000 Actual Expenditure £000 Information Technology Services 2,776 400 - 3,176 3,176 1,926 TOTAL 2,776 400 - 3,176 3,176 1,926 Accounting Adjustments Less Transfers to Revenue - Add Transfers to Capital 12 2021/22 Outturn Position (Accounting Basis Only) 1,938 34
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Capital Budget Monitoring 2022/2023 - 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 2022 to 15 July 2022 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendations:- [recs] (1) that the Finance and Corporate Resources’ capital programme of £3.695 million, and expenditure to date of £0.270 million, be noted. [1recs] 3. Background 3.1. This is the first capital monitoring report presented to the Finance and Corporate Resources Committee for the financial year 2022/2023. Further reports will follow throughout the year. 3.2. The budget of £3.695 million for Finance and Corporate Resources is based on the overall Capital Programme for 2022/2023, which was approved by the Executive Committee on 29 June 2022. 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. 2022/2023 Budget As detailed in Section 3.2, the revised capital programme for Finance and Corporate Resources for 2022/2023 is £3.695 million. This budget is based on the original programme of projects approved by the Council in February 2022, updated to include budget carried forward from financial year 2021/2022 as well as additional funding received and used to fund expenditure incurred in 2021/2022. 5.2. Period 4 Position Anticipated spend to date was £0.268 million and spend to 15 July 2022 amounts to £0.270 million, a small overspend of £0.002 million. 6 35
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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 an overspend. There are detailed project management plans prepared and the risk of overspend on each project is monitored through four weekly investment management meetings. 7.2. The Council continues to experience material shortages, longer lead times and extraordinary inflationary price increases and it is anticipated that this will continue to impact the supply chain for the foreseeable future. The impact of this will continue to be monitored through the four weekly investment management meetings. Further updates will be reported in the coming months with any significant increases in contract values being brought to members’ attention. 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. Paul Manning Executive Director (Finance and Corporate Resources) 17 August 2022 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References South Lanarkshire Council (Special), 23 February 2022 Executive Committee, 29 June 2022 List of Background Papers Financial ledger to 15 July 2022 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 36
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Appendix A South Lanarkshire Council Capital Expenditure 2022/2023 Finance and Corporate Resources Programme For Period 1 April 2022 to 15 July 2022 Finance and Corporate Resources Total Original Budget £000 Budget Adjustments £000 Slippage £000 Total Budget £000 Budget to Date £000 Actual Expenditure £000 Information Technology Services 3,695 - - 3,695 268 270 TOTAL 3,695 - - 3,695 268 270 37
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 9 August 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Finance and Corporate Resources – Workforce Monitoring – April to June 2022 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide employment information for April to June 2022 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 April to June 2022 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 2022 [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 April to June 2022. 4. Monitoring Statistics 4.1. Attendance Statistics (Appendix 1) Information on absence statistics is analysed for the month of June for Finance and Corporate Resources. The Resource absence figure for June 2022 was 4.0%, this figure has increased by 0.8% when compared to last month and is 1.3% lower than the Council-wide figure. Compared to June 2021, the Resource absence figure has increased by 0.5%. Based on the absence figures at June 2022 and annual trends, the projected annual average absence for the Resource for 2022/2023 is 3.6%, compared to a Council- wide average figure of 6.1%. 7 39
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For the financial year 2022/2023, the projected average days lost per employee equates to 2.7 days, compared with the overall figure for the Council of 4.3 days per employee. 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. The attendance information contained in this report includes absences as a result of Covid-19, and employees are being supported through this difficult time to maintain attendance levels where they can. At the time of this report, the Council overall absence level was 4.73% with 1.07% of this relating to Covid-19 for sickness and special leave. 4.2. Occupational Health (Appendix 2) In terms of referrals to occupational health, which include medical examinations and physiotherapy, overall, 64 referrals were made this period. This represents an increase of 12 when compared with the same period last year. 4.3. Accident/Incident Statistics There was 1 accident/incident recorded within the Resource this period, this figure remains unchanged when compared to the same period last year. 4.4. Discipline, Grievance and Dignity at Work (Appendix 2) During the period, 1 disciplinary hearing was held within the Resource, an increase of 1 when compared to the same period last year. No appeals were heard by the Appeals Panel. No grievance hearings were raised within the Resource, this figure remains unchanged when compared to the same period last year. No Dignity at Work complaints were raised within the Resource, this figure remains unchanged when compared to the same period last year. 4.5. Analysis of Leavers (Appendix 2) There were a total of 13 leavers in the Resource this period eligible for an exit interview. An increase of 5 when compared with the same period last year. Three exit interviews were conducted in this period, this figure remains unchanged when compared to the same period last year. 4.6. When processing an employee termination, managers were asked to identify whether they intended to replace the employee who had left the Council. If they indicated that they did not intend to replace the employee, they were asked to select from the following options:- plan to hold for savings fill on a fixed term basis pending savings transfer budget to another post end of fixed term post 4.7. Appendix 2a provides a breakdown of vacant posts and whether these are being replaced or held for savings. In the period April to June 2022, 25 employees (20.88 FTE) in total left employment, managers indicated that 23 posts (18.88 FTE) were being replaced, 1 (1.0 FTE) plan to transfer the budget to another post and 1 post (1 FTE) will be held pending a service review. 40
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5. Staffing Watch 5.1. There has been a decrease of 10 in the number of employees in post from 12 March 2022 to 11 June 2022. 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. 10.2. There was no requirement to undertake any consultation in terms of the information contained in this report. Paul Manning Executive Director (Finance and Corporate Resources) 15 August 2022 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 – 9 February 2022 List of Background Papers Monitoring information provided by Finance and Corporate Resources 41
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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 42
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2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 April 3.5 2.6 2.8 April 8.5 0.0 0.0 April 3.6 2.6 2.8 April 4.4 4.3 5.6 May 2.3 3.3 3.2 May 16.0 0.0 0.0 May 2.4 3.3 3.2 May 3.1 4.9 5.4 June 1.9 3.5 4.0 June 7.4 0.0 0.0 June 1.9 3.5 4.0 June 2.7 4.7 5.3 July 2.0 3.3 July 3.5 0.0 July 2.0 3.3 July 2.3 4.0 August 1.8 3.6 August 12.1 0.0 August 2.0 3.6 August 3.1 4.7 September 2.3 4.0 September 13.4 0.0 September 2.4 4.0 September 4.2 6.4 October 3.2 3.6 October 10.2 0.0 October 3.3 3.6 October 4.8 6.3 November 3.1 4.3 November 11.4 0.0 November 3.2 4.3 November 5.8 6.9 December 2.7 3.8 December 11.4 0.0 December 2.8 3.8 December 5.6 6.9 January 2.8 3.8 January 7.0 0.0 January 2.8 3.8 January 4.8 7.0 February 3.5 3.4 February 0.0 0.0 February 3.5 3.4 February 4.8 6.6 March 3.5 3.4 March 0.0 0.0 March 3.5 3.4 March 4.9 7.9 Annual Average 2.7 3.6 3.6 Annual Average 8.4 0.0 0.0 Annual Average 2.8 3.6 3.6 Annual Average 4.2 5.9 6.1 Average Apr-Jun 2.6 3.1 3.3 Average Apr-Jun 10.6 0.0 0.0 Average Apr-Jun 2.6 3.1 3.3 Average Apr-Jun 3.4 4.6 5.4 938 0 938 16186 For the financial year 2022/23, the annual average days lost per employee equates to 2.7 days. Resource Total No of Employees at 30 Jun 2022 Appendix 1 Absence Trends - 2020/2021, 2021/2022 & 2022/2023 Finance and Corporate Resources No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 APT&C Council WideManual Workers No of Employees at 30 Jun 2022 43
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Apr - June Apr - June 2021 2022 MEDICAL EXAMINATIONS Number of Employees Attending EMPLOYEE COUNSELLING SERVICE Total Number of Referrals PHYSIOTHERAPY SERVICE Total Number of Referrals REFERRALS TO EMPLOYEE SUPPORT OFFICER 18 23 REFERRALS TO COGNITIVE BEHAVIOUR THERAPY 0 0 TOTAL 52 64 Apr - June Apr - June 2021 2022 Specified Injuries* 0 0 Over 7 day absences 0 0 Over 3 day absences** 0 0 Minor 1 1 Near Miss 0 0 Violent Incident: Physical**** 0 0 Violent Incident: Verbal***** 0 0 Total Accidents/Incidents 1 1 Apr - June Apr - June 2021 2022 Total Number of Hearings 0 1 Total Number of Appeals 0 0 Appeals Pending 0 0 Time Taken to Convene Hearing April - June 2022 0-3 Weeks 4-6 Weeks Over 6 Weeks 1 0 0 Apr - June Apr - June 2021 2022 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 Apr - June Apr - June 2021 2022 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 Apr - June Apr - June 2021 2022 Career Advancement 3 0 Child Caring / Caring Responsibilities 0 0 Disatisfaction with terms and conditions 0 0 Further Education 0 2 Moving outwith area 0 0 Personal Reasons 0 0 Poor relationship with managers / colleagues 0 1 Travelling difficulties 0 0 Other 0 0 Number of Exit Interviews conducted 3 3 Total Number of Leavers Eligible for Exit Interview 8 13 Percentage of interviews conducted 38% 23% Appendix 2 19 26 0 0 FINANCE & CORPORATE RESOURCES 15 15 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. ***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 circumstance. ANALYSIS OF REASONS FOR LEAVING ****Physical violent incidents are included in the "Specified" figures, where applicable, to provide the "Total Specified" figures. ****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 RECORD OF DIGNITY AT WORK 44
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FTE H/C FTE H/C Terminations/Leavers 20.88 25 20.88 25 Being replaced 18.88 23 18.88 23 Filling on a temporary basis 0.00 0 0.00 0 Plan to transfer this budget to another post 1.00 1 1.00 1 End of fixed term contract 0.00 0 0.00 0 Held pending service Review 1.00 1 1.00 1 Plan to remove for savings 0.00 0 0.00 0 Reason Appendix 2a April - June 2022 Cumulative total 45
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As at 11 June 2022 F/T P/T F/T P/T Finance and Corporate 199 20 390 252 861 *Full-Time Equavalent No of Employees Salary Bands Director Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher Total Finance and Corporate 2.00 126.48 332.42 226.70 55.10 24.30 6.00 0.00 0.00 773.00 As at 12 March 2022 F/T P/T F/T P/T Finance and Corporate 204 20 376 271 871 *Full-Time Equavalent No of Employees Salary Bands Director Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher Total Finance and Corporate 2.00 123.09 336.30 229.22 55.95 24.30 6.00 0.00 0.00 776.86 Male Female Total Appendix 3 Joing Staffing Watch Return Finance and Corporate Resources Male Female Total 46
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Council-wide Workforce Monitoring – April to June 2022 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide employment information relating to the Council for the period April to June 2022 [1purpose] 2. Recommendation(s) 2.1. The Community is asked to approve the following recommendation(s):- [recs] (1) that the following employment information for the period April to June 2022 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 12 June 2021 [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 April to June 2022. 4. Attendance Statistics 4.1. Information on absence statistics for the Council and each Resource, as analysed for June 2022, is provided in Appendices 1 to 8. Points to note are:- The Council’s absence rate for June 2022, shown in Appendix 1, is 5.3%, which represents an decrease of 0.1% when compared with last month and the figure has increased by 0.6% when compared to June 2021. When compared to June 2021, the APT&C absence rate has increased by 0.6%, the teachers’ figure has remained the same and the manual workers’ figure has increased by 1.1%. Based on annual trends and the absence rate to June 2022, the projected average absence rate for the Council for the financial year 2022/2023 is 6.1%. 8 47
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For the financial year 2022/2023, the projected average days lost per employee equates to 4.3 days. In comparison to June 2021 (Appendix 8):- Psychological and respiratory conditions are the main reasons for absence. Total days lost due to musculoskeletal conditions have increased by 1100 days. Total days lost due to psychological conditions have increased by 2178 days. Total days lost due to stomach, bowel, blood and metabolic disorders have increased by 1271 days. Total days lost due to respiratory conditions have increased by 2414 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. The attendance information contained in this report includes absences as a result of Covid-19, and employees are being supported through this difficult time to maintain attendance levels where they can. At the time of this report, the Council overall absence level was 6.26% with 1.18% of this relating to Covid-19 for sickness and special leave. 5. Occupational Health 5.1. Information on Occupational Health for the period April to June 2022 is provided in Appendix 9. during the period there were 383 employees referred for a medical examination, a decrease of 9 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 488 employees attended physiotherapy treatment, showing a decrease of 6 when compared to the same period last year. Of the 488 employees referred, 77% remained at work whilst undertaking treatment. during this period 398 employees were referred to the Employee Support Officer, showing an increase of 20 when compared with the same period last year. Of the referrals made this period, 90% related to personal reasons. 126 employees were referred to the PAM Assist counselling service this period, showing a decrease of 1 when compared with the same period last year. All the referrals made this period were from management and none were made directly by employees. Personal reasons accounted for 65% of the referrals made, 24% were for work related reasons and 1% was for other reasons. No employees were referred for Cognitive Behavioural Therapy this period, this figure has decreased by 25 when compared to the same period last year. 6. Accidents/Incidents 6.1. The accident/incident report for April to June 2022 is contained in Appendix 10. the number of accidents/incidents recorded was 327, this figure has increased by 31 from the same period last year. there were 2 specified injuries recorded, this figure has increased by 2 from the same period last year. there were 309 minor accidents/incidents, this figure has increased by 21 from the same period last year. 48
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there were 2 accidents resulting in an absence lasting over 3 days during the period, this figure has decreased by 1 from the same period last year. there were 14 accidents resulting in an absence lasting over 7 days during the period, this figure has increased by 9 from the same period last year. 7. Discipline, Grievance, Dignity at Work Hearings and Mediation Referrals 7.1. Information on Disciplinary, Grievance Hearings, Dignity at Work and Mediation Referrals for April to June 2022 is contained in Appendices 11, 12a and 12b. in total, 19 disciplinary hearings were held across Resources within the Council, this figure remains unchanged when compared to the same period last year. action was taken in 17 of these cases. No appeals were raised against the outcomes. our target is to convene disciplinary hearings within 6 weeks, 58% of hearings met this target. during the period, no appeals were heard by the Appeals Panel. at the end of June 2022, 3 Appeals Panels were pending. during the period, no grievance cases were raised. during the period, no 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 April to June 2022 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 2022, the Council’s turnover figure for April to June 2022 is as follows:- 164 leavers eligible for exit interviews/15,173 employees in post = Labour Turnover of 1.1%. Based on the figure at June 2022, the projected annual labour turnover figure for the financial year 2022/2023 for the Council is 4.4%. 8.2. Analysis of Leavers and Exit Interviews there were a total of 164 employees leaving the Council that were eligible for an exit interview, an increase of 31 when compared with the same period last year. exit interviews were held with 41% of leavers, which is an increase of 12% when compared with the same period last year. 8.3. When processing an employee termination, managers are asked to identify whether they intend to replace the employee who had left the Council. If they indicate that they do not intend to replace the employee, they are asked to select from four options:- plan to hold for savings fill on a fixed term basis pending savings transfer budget to another post end of fixed term contract 49
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8.4. Appendix 13a provides information relating to vacant posts and whether these are being replaced or held for savings. From April to June 2022, 503 (351.10 FTE) employees left employment. Managers indicated that 480 posts (333.17 FTE) would be replaced, 1 post (0.40 FTE) is being filled on a temporary basis, the budget for 1 post (1.0 FTE) is being transferred to another post, 16 posts (11.93 FTE) were due to the end of fixed term contracts and 5 posts (4.60 FTE) are being left vacant pending a savings or service review. 9. Recruitment Monitoring 9.1. Information on Recruitment Monitoring for April to June 2022 is contained within Appendix 14. From an analysis of Equal Opportunities Monitoring Forms, the main points to note are:- overall, 3059 applications and 2949 completed Equal Opportunities Monitoring Forms were received of those applicants who declared themselves as disabled (68), 42 were shortleeted for interview and 11 were appointed of those applicants of a black/ethnic minority background (137), 41 were shortleeted for interview and 14 were appointed. Of those applicants who are veterans (26), 14 were shortleeted for interview and none were appointed. 10. Staffing Watch 10.1. There has been an increase of 36 in the number of employees in post from 12 March 2022 to 11 June 2022. 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. Paul Manning Executive Director (Finance and Corporate Resources) 50
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15 August 2022 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, 9 February 2022 List of Background Papers Monitoring information provided by Resources 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: (Tel: 01698 454647) E-mail: Elaine.Maxwell@southlanarkshire.gov.uk 51
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2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 % % % % % % % % % % % % April 4.2 4.1 5.2 April 2.9 2.5 2.7 April 6.0 6.2 8.8 April 4.4 4.3 5.6 May 2.9 4.7 5.0 May 1.4 3.2 3.6 May 4.9 6.7 7.6 May 3.1 4.9 5.4 June 2.5 4.4 5.0 June 0.9 2.6 2.6 June 4.5 7.0 8.1 June 2.7 4.7 5.3 July 2.2 4.1 July 0.5 1.1 July 4.0 6.3 July 2.3 4.0 August 2.9 4.6 August 1.2 2.0 August 5.1 7.3 August 3.1 4.7 September 4.1 6.1 September 2.7 4.4 September 5.8 8.5 September 4.2 6.4 October 4.7 6.0 October 3.2 4.1 October 6.4 8.7 October 4.8 6.3 November 5.6 6.5 November 4.6 5.6 November 7.3 8.7 November 5.8 6.9 December 5.3 6.2 December 4.7 6.1 December 6.9 8.8 December 5.6 6.9 January 4.5 6.7 January 2.7 3.9 January 7.2 10.1 January 4.8 7.0 February 4.3 6.5 February 2.5 3.7 February 7.4 9.5 February 4.8 6.6 March 4.6 8.0 March 2.9 4.3 March 7.2 11.3 March 4.9 7.9 Annual Average 4.0 5.7 5.8 Annual Average 2.5 3.6 3.7 Annual Average 6.1 8.3 8.6 Annual Average 4.2 5.9 6.1 Average Apr-Jun 3.2 4.4 5.1 Average Apr-Jun 1.7 2.8 3.0 Average Apr-Jun 5.1 6.6 8.2 Average Apr-Jun 3.4 4.6 5.4 7604 4023 4559 16186 For the financial year 2022/23, the annual average days lost per employee equates to 4.3 days. No of Employees at 30 Jun 2022 Appendix 1 Absence Trends - 2020/2021, 2021/2022 & 2022/2023 Council Wide APT&C Teachers No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 Manual Workers Council Wide No of Employees at 30 Jun 2022 52
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2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 April 3.1 2.3 4.4 April 5.3 5.7 7.3 April 5.0 5.2 6.9 April 4.4 4.3 5.6 May 2.4 2.7 3.9 May 4.3 6.4 6.8 May 4.0 5.9 6.3 May 3.1 4.9 5.4 June 1.6 2.8 3.5 June 4.0 6.6 7.2 June 3.6 6.0 6.7 June 2.7 4.7 5.3 July 1.8 2.9 July 3.6 5.3 July 3.4 4.9 July 2.3 4.0 August 1.7 2.9 August 4.9 6.4 August 4.4 5.9 August 3.1 4.7 September 1.6 3.4 September 5.8 8.2 September 5.1 7.5 September 4.2 6.4 October 3.1 3.8 October 6.3 7.9 October 5.8 7.3 October 4.8 6.3 November 3.6 3.5 November 7.1 8.0 November 6.6 7.3 November 5.8 6.9 December 3.1 4.2 December 6.4 8.0 December 5.9 7.4 December 5.6 6.9 January 3.4 3.6 January 6.0 9.6 January 5.6 8.6 January 4.8 7.0 February 2.8 4.4 February 6.5 9.5 February 5.9 8.7 February 4.8 6.6 March 2.6 6.0 March 6.8 11.0 March 6.2 10.2 March 4.9 7.9 Annual Average 2.6 3.5 3.9 Annual Average 5.6 7.7 7.9 Annual Average 5.1 7.1 7.3 Annual Average 4.2 5.9 6.1 Average Apr-Jun 2.4 2.6 3.9 Average Apr-Jun 4.5 6.2 7.1 Average Apr-Jun 4.2 5.7 6.6 Average Apr-Jun 3.4 4.6 5.4 542 2959 3501 16186 For the financial year 2022/23, the annual average days lost per employee equates to 5.5 days. Resource Total No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 Appendix 2 Absence Trends - 2020/2021, 2021/2022 & 2022/2023 Community and Enterprise Resources APT&C Council WideManual Workers 53
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2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 April 3.9 4.8 5.5 April 2.9 2.5 2.7 April 3.3 3.5 4.0 April 4.4 4.3 5.6 May 2.2 5.7 5.5 May 1.4 3.2 3.6 May 1.8 4.4 4.5 May 3.1 4.9 5.4 June 1.8 4.7 5.1 June 0.9 2.6 2.6 June 1.3 3.5 3.7 June 2.7 4.7 5.3 July 1.3 3.4 July 0.5 1.1 July 0.9 2.1 July 2.3 4.0 August 2.7 3.8 August 1.2 2.0 August 1.8 2.8 August 3.1 4.7 September 4.8 6.4 September 2.7 4.4 September 3.6 5.3 September 4.2 6.4 October 5.4 6.6 October 3.2 4.1 October 4.1 5.2 October 4.8 6.3 November 6.6 8.0 November 4.6 5.6 November 5.5 6.7 November 5.8 6.9 December 6.5 8.0 December 4.7 6.1 December 5.5 7.0 December 5.6 6.9 January 4.8 8.1 January 2.7 3.9 January 3.6 5.8 January 4.8 7.0 February 4.7 7.2 February 2.5 3.7 February 3.5 5.3 February 4.8 6.6 March 5.6 9.5 March 2.9 4.3 March 4.1 6.7 March 4.9 7.9 Annual Average 4.2 6.4 6.4 Annual Average 2.5 3.6 3.7 Annual Average 3.3 4.9 4.9 Annual Average 4.2 5.9 6.1 Average Apr-Jun 2.6 5.1 5.4 Average Apr-Jun 1.7 2.8 3.0 Average Apr-Jun 2.1 3.8 4.1 Average Apr-Jun 3.4 4.6 5.4 3397 4023 7420 16186 For the financial year 2022/23, the annual average days lost per employee equates to 3.3 days. Teachers Resource Total No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 Appendix 3 Absence Trends - 2020/2021, 2021/2022 & 2022/2023 Education Resources Council WideAPT&C 54
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2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 April 3.5 2.6 2.8 April 8.5 0.0 0.0 April 3.6 2.6 2.8 April 4.4 4.3 5.6 May 2.3 3.3 3.2 May 16.0 0.0 0.0 May 2.4 3.3 3.2 May 3.1 4.9 5.4 June 1.9 3.5 4.0 June 7.4 0.0 0.0 June 1.9 3.5 4.0 June 2.7 4.7 5.3 July 2.0 3.3 July 3.5 0.0 July 2.0 3.3 July 2.3 4.0 August 1.8 3.6 August 12.1 0.0 August 2.0 3.6 August 3.1 4.7 September 2.3 4.0 September 13.4 0.0 September 2.4 4.0 September 4.2 6.4 October 3.2 3.6 October 10.2 0.0 October 3.3 3.6 October 4.8 6.3 November 3.1 4.3 November 11.4 0.0 November 3.2 4.3 November 5.8 6.9 December 2.7 3.8 December 11.4 0.0 December 2.8 3.8 December 5.6 6.9 January 2.8 3.8 January 7.0 0.0 January 2.8 3.8 January 4.8 7.0 February 3.5 3.4 February 0.0 0.0 February 3.5 3.4 February 4.8 6.6 March 3.5 3.4 March 0.0 0.0 March 3.5 3.4 March 4.9 7.9 Annual Average 2.7 3.6 3.6 Annual Average 8.4 0.0 0.0 Annual Average 2.8 3.6 3.6 Annual Average 4.2 5.9 6.1 Average Apr-Jun 2.6 3.1 3.3 Average Apr-Jun 10.6 0.0 0.0 Average Apr-Jun 2.6 3.1 3.3 Average Apr-Jun 3.4 4.6 5.4 938 0 938 16186 For the financial year 2022/23, the annual average days lost per employee equates to 2.7 days. No of Employees at 30 Jun 2022 Appendix 4 Absence Trends - 2020/2021, 2021/2022 & 2022/2023 Finance and Corporate Resources No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 APT&C Council WideManual Workers No of Employees at 30 Jun 2022 Resource Total 55
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2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 April 4.1 3.2 5.5 April 3.5 3.6 10.6 April 3.8 3.3 7.6 April 4.4 4.3 5.6 May 2.8 2.9 4.5 May 2.0 4.2 8.1 May 2.5 3.4 6.0 May 3.1 4.9 5.4 June 3.2 3.5 4.9 June 2.0 6.2 8.5 June 2.7 4.6 6.4 June 2.7 4.7 5.3 July 2.7 4.0 July 2.7 5.7 July 2.7 4.7 July 2.3 4.0 August 2.5 4.9 August 3.4 7.9 August 2.8 6.2 August 3.1 4.7 September 2.1 5.8 September 3.3 8.1 September 2.6 6.8 September 4.2 6.4 October 2.9 5.2 October 3.9 9.0 October 3.3 6.8 October 4.8 6.3 November 3.7 5.7 November 5.6 9.2 November 4.5 7.2 November 5.8 6.9 December 3.3 4.6 December 4.8 9.5 December 3.9 6.7 December 5.6 6.9 January 3.5 5.2 January 4.4 8.8 January 3.9 6.7 January 4.8 7.0 February 3.2 6.4 February 4.7 8.5 February 3.8 7.3 February 4.8 6.6 March 3.1 7.8 March 4.5 10.7 March 3.6 9.0 March 4.9 7.9 Annual Average 3.1 4.9 5.4 Annual Average 3.7 7.6 8.7 Annual Average 3.3 6.1 6.8 Annual Average 4.2 5.9 6.1 Average Apr-Jun 3.4 3.2 5.0 Average Apr-Jun 2.5 4.7 9.1 Average Apr-Jun 3.0 3.8 6.7 Average Apr-Jun 3.4 4.6 5.4 872 578 1450 16186 For the financial year 2022/23, the annual average days lost per employee equates to 5.3 days. Manual Workers Council Wide No of Employees at 30 Jun 2022No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 Appendix 5 Housing & Technical Resources Resource Total Absence Trends - 2020/2021, 2021/2022 & 2022/2023 APT&C 56
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2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 2020 / 2021 2021 / 2022 2022 / 2023 April 5.5 4.5 6.2 April 10.2 9.6 12.6 April 7.1 6.2 8.3 April 4.4 4.3 5.6 May 4.4 5.0 5.7 May 8.1 9.3 10.1 May 5.7 6.5 7.1 May 3.1 4.9 5.4 June 3.9 3.9 5.9 June 7.6 7.6 11.3 June 5.2 5.2 7.6 June 2.7 4.7 5.3 July 3.7 6.1 July 6.3 10.3 July 4.6 7.5 July 2.3 4.0 August 4.4 7.3 August 6.7 10.2 August 5.2 8.2 August 3.1 4.7 September 5.4 7.6 September 7.5 10.3 September 6.1 8.5 September 4.2 6.4 October 5.9 6.9 October 8.2 11.3 October 6.7 8.4 October 4.8 6.3 November 6.6 6.2 November 8.9 10.8 November 7.4 7.7 November 5.8 6.9 December 6.5 5.5 December 10.3 11.1 December 7.7 7.3 December 5.6 6.9 January 5.8 7.4 January 13.1 13.0 January 8.3 9.2 January 4.8 7.0 February 5.1 7.5 February 12.6 10.1 February 7.6 8.3 February 4.8 6.6 March 4.6 8.0 March 10.6 12.8 March 6.6 9.5 March 4.9 7.9 Annual Average 5.2 6.3 6.7 Annual Average 9.2 10.5 11.2 Annual Average 6.5 7.7 8.1 Annual Average 4.2 5.9 6.1 Average Apr-Jun 4.6 4.5 5.9 Average Apr-Jun 8.6 8.8 11.3 Average Apr-Jun 6.0 6.0 7.7 Average Apr-Jun 3.4 4.6 5.4 1855 1022 2877 16186 For the financial year 2022/23, the annual average days lost per employee equates to 5.6 days. Resource TotalManual Workers No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 No of Employees at 30 Jun 2022 Appendix 6 Absence Trends - 2020/2021, 2021/2022 & 2022/2023 Social Work Resources APT&C Council Wide 57
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Appendix 7 Absence by long and short term From: 1 Apr 2022 to 30 Jun 2022 Community and Enterprise 3501 2.5 4.4 6.9 2.4 3.9 6.3 2.6 4.1 6.7 Education 7420 1.2 2.8 4.0 1.7 2.8 4.5 1.6 2.1 3.7 Finance and Corporate 938 1.2 1.6 2.8 1.4 1.8 3.2 1.9 2.1 4.0 Housing & Technical 1450 3.0 4.6 7.6 2.2 3.8 6.0 2.5 3.9 6.4 Social Work 2877 3.1 5.2 8.3 2.3 4.8 7.1 2.6 5.0 7.6 Council Overall for April 2022 to June 2022 16186 1.9 3.7 5.6 2.1 3.3 5.4 3.2 2.1 5.3 Resource No of employees May 2022 Total Short Term % Total Long Term % Resource Total Absence % Resource Total Absence % June 2022 Total Short Term % Total Long Term % April 2022 Total Short Term % Total Long Term % Resource Total Absence % 58
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From : 1 Jun 2022 - 30 Jun 2022 Total WDL % Total WDL % Total WDL % Total WDL % Total WDL % Musculoskeletal 1260 25 714 13 44 6 482 26 708 18 3208 19 Psychological 1039 21 1780 31 247 34 735 39 1302 33 5103 30 Stomach, Bowel, Blood, Metabolic Disorders 608 12 560 10 64 9 129 7 335 8 1696 10 Respiratory 1109 22 1311 23 176 24 270 14 658 17 3524 20 Other Classification 951 19 1315 23 206 28 272 14 969 24 3713 22 Total Days Lost By Resource 4967 100 5680 100 737 100 1888 100 3972 100 17244 100 Total Work Days Available From : 1 Jun 2021 to 30 Jun 2021 Total WDL % Total WDL % Total WDL % Total WDL % Total WDL % Musculoskeletal 823 31 422 24 65 18 90 11 708 25 2108 25 Psychological 808 30 603 34 160 43 364 46 990 35 2925 35 Stomach, Bowel, Blood, Metabolic Disorders 134 5 76 4 9 2 73 9 133 5 425 5 Respiratory 246 9 298 17 39 11 90 11 437 16 1110 13 Other Classification 664 25 388 22 96 26 179 22 533 19 1860 22 Total Days Lost By Resource 2675 100 1787 100 369 100 796 100 2801 100 8428 100 Total Work Days Available *WDL = Work Days Lost 74307 152625 18435 Percentage Housing and Technical Resources Education Resources Finance and Corporate 29550 52361 Appendix 8 Attendance Monitoring Absence Classification Reasons Community and Enterprise Resources Social Work Resources Total WDL By Reason REASONS Community and Enterprise Resources Education Resources Finance and Corporate Housing and Technical Resources Social Work Resources PercentageTotal WDL By Reason 73353 140371 19063 29438 53811 59
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Appendix 9 Teachers Others 100 32 53 26 66 106 113 33 68 19 42 117 Apr - Jun 2021 Apr - Jun 2022 No Physiotherapy referral information 3+ absence with no ASM Totals Apr - Jun 2021 Apr - Jun 2022 Employees Absent 131 125 10 55 68 89 90 75 66 78 10 187 206 139 154 112 108 72 1 9 10 18 23 23 15 15 6 13 22 32 38 28 56 58 22 46 73 100 93 80 118 140 49 310 379 378 398 318 494 488 *ASM refers to Attendance Support Meeting Apr - Jun 2021 Apr - Jun 2022 M S M S M S M S M S M S 2 0 Total (Apr - Jun 2022) 30 0 0 0 82 0 0 0 14 0 126 0 9 0 Total (Apr - Jun 2021) 27 0 0 0 75 0 13 0 12 0 127 0 0 0 Total 126 0 0 127 2 0 M = MANAGEMENT REFERRAL S = SELF REFERRAL 12 0 25 0 Occupational Health Reports From: 1 April 2022 - 30 June 2022 comparison with 1 April 2021 - 30 June 2021 Medical Referrals Community and Enterprise Education Finance and Corporate Housing & Technical Social Work Totals Total (Apr - Jun 2022) 383 Total (Apr - Jun 2021) 392 No of Employees Referred For Physiotherapy No of Maximising Attendance Action Not Conducted 3 Education Finance and Corporate Housing and Technical No of Employees Referred To Employee Support Officer Resource 3+ absence with no ASM or Physiotherapy referral information Resource Community and Enterprise 3 5 Total 20 Analysis of Counselling Referrals by Cause No of Employees Referred For Cognitive Behavioural Therapy Education 9 Finance and Corporate 0 Housing and Technical Housing and Technical Social Work Total Referrals (Apr -Jun 2022) Total Referrals (Apr - Jun 2021) Not Disclosed Reason Work Stress Addiction Personal Total Community and Enterprise Resource Community and Enterprise Education Finance and Corporate Anxiety/ Depression Bereavement Total Social Work Social Work Total Total Resource Community and Enterprise Education (Teachers) Education (Others) Finance and Corporate Housing and Technical Social Work 60
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2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Specified Injury 0 0 0 0 0 0 0 0 2 0 2 0 Violent Incident: Physical 0 0 0 0 0 0 0 0 0 0 0 0 Total Specified Injury* 0 0 0 0 0 0 0 0 2 0 2 0 Over 7-day 4 4 3 0 0 0 4 1 3 0 14 5 Violent Incident: Physical 0 0 0 0 0 0 0 0 0 0 0 0 Violent Incident: Verbal 0 0 0 0 0 0 0 0 0 0 0 0 Total Over 7-day** 4 4 3 0 0 0 4 1 3 0 14 5 Over 3-day 0 1 1 1 0 0 0 1 1 0 2 3 Violent Incident: Physical 0 0 0 0 0 0 0 0 0 0 0 0 Violent Incident: Verbal 0 0 0 0 0 0 0 0 0 0 0 0 Total Over 3-day** 0 1 1 1 0 0 0 1 1 0 2 3 Minor 18 18 11 9 1 1 1 8 14 9 45 45 Near Miss 1 4 1 3 0 0 0 0 3 1 5 8 Violent Incident: Physical 1 1 207 217 0 0 0 0 4 4 212 222 Violent Incident: Verbal 5 3 35 6 0 0 3 1 4 3 47 13 Total Minor*** 25 26 254 235 1 1 4 9 25 17 309 288 Total Accidents/Incidents 29 31 258 236 1 1 8 11 31 17 327 296 *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. *** A minor injury is an injury not covered by " Over 7-day", "Over 3-day" or "Specified". Finance and Corporate Housing & Tech Analysis of Accidents/ Incidents Comparison Cause of Accidents/ Incidents to employees Appendix 10 Social Work TOTALCommunity and Enterprise Education From: 1 April 2022 - 30 June 2022 comparison with 1 April 2021 - 30 June 2021 61
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APT&C Manual / Craft Teachers Total APT&C Manual / Craft Teachers Total Community and Enterprise 0 16 N/A 16 0 1 N/A 1 0 15 N/A 15 8 1 7 57 16 Education 0 2 0 2 0 1 0 1 0 1 0 1 1 0 1 50 2 Finance and Corporate 1 0 N/A 1 0 0 N/A 0 1 0 N/A 1 1 0 0 100 1 Housing and Technical 0 0 N/A 0 0 0 N/A 0 0 0 N/A 0 0 0 0 0 0 Social Work 0 0 N/A 0 0 0 N/A 0 0 0 N/A 0 0 0 0 0 0 Total (Apr - Jun 2022) 1 18 0 19 0 2 0 2 1 16 0 17 10 1 8 58 19 Total (Apr - Jun 2021) 6 11 2 19 2 1 0 3 4 10 2 16 6 4 9 53 19 APT&C Manual/ Craft Teachers Total APT&C Manual/ Craft Teachers Total APT&C Manual/ Craft Teachers Total Total (Apr - Jun 2022) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total (Apr - Jun 2021) 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 *Resources nil responses are not included in figures Appeal's Panel From: 1 April 2022 - 30 June 2022 Appeal's Panel Total 0 Not Upheld Withdrawn Appeals Pending 0 Total 0 Resource Resource Action Taken Upheld Upheld in PartManual/ 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 300 Appendix 11 Outcome of Appeals Not Upheld From: 1 April 2022 - 30 June 2022 comparison with 1 April 2021 - 30 June 2021 Appeals pending to date Record of Disciplinary Hearings No of weeks to convene Disciplinary Hearing Total 62
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Appendix 12a Record of Grievances From: 1 April 2022 - 30 June 2022 comparison with 1 April 2021 - 30 June 2021 Grievances No of Grievances No Resolved at Stage 1 No Resolved at Stage 2 No Resolved at Stage 3 Still in Process Total (Apr - Jun 2022) 0 0 0 0 0 Total (Apr - Jun 2021) 0 0 0 0 0 Dignity at Work 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 (Apr - Jun 2022) 0 0 0 0 0 0 Total (Apr - 2021) 0 0 0 0 0 0 From: 1 April 2022 - 30 June 2022 comparison with 1 April 2021 - 30 June 2021 63
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Appendix 12b Referrals for Workplace Mediation Workplace Mediation Apr-22 May-22 Jun-22 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 0 0 0 Workplace Mediation Apr-21 May-21 Jun-21 No of Referrals 0 0 0 *No of Successful Cases 0 0 0 *No of Unsuccessful Cases 0 0 0 No of cases unsuitable for mediation 0 0 0 *successful/unsuccessful case outcomes may be shown outwith the month they were referred. As at June 2022 64
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Appendix 13 From 1 April 2022 - 30 June 2022 Reason for leaving Community and Enterprise Education Finance and Corporate Housing & Technical Social Work Total % Career Advancement 1 15 0 1 8 25 37 Child Caring / Caring Responsibilities 0 2 0 1 0 3 4 Disatisfaction with terms and conditions 0 0 0 1 2 3 4 Further Education 2 3 2 0 4 11 16 Moving outwith area 1 3 0 0 2 6 9 Personal Reasons 0 2 0 0 2 4 6 Poor relationship with managers / colleagues 0 2 1 0 0 3 4 Travelling difficulties 0 0 0 1 2 3 4 Other 1 2 0 0 6 9 13 Number of exit interviews conducted 5 29 3 4 26 67 Total no. of leavers per Resource eligible for an exit interview 37 56 13 9 49 164 % of leavers interviewed 14 52 23 44 53 41 From 1 April 2021 - 30 June 2021 Number of exit interviews conducted 16 8 3 1 11 39 Total no. of leavers per Resource eligible for an exit interview 43 32 8 8 42 133 % of leavers interviewed 37 25 38 13 26 29 * Note these totals include temporary employees Analysis of leavers and exit interviews 65
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Resource Total FTE* Total H/C** FTE H/C FTE H/C FTE H/C FTE H/C FTE H/C FTE H/C Community & Enterprise 84.94 171 79.00 162 0 0 0 0 5.938 9 0 0 0 0 Education 152.58 187 146.24 179 0.402 1 0 0 4.34 5 1.6 2 0 0 Finance & Corporate 20.88 25 18.88 23 0 0 1 1 0 0 1 1 0 0 Housing & Technical 23.06 30 22.06 29 0 0 0 0 0 0 1 1 0 0 Social Work 69.65 90 67.00 87 0 0 0 0 1.65 2 1 1 0 0 Total 351.10 503 333.17 480 0.40 1 1.00 1 11.93 16 4.60 5 0.00 0 Appendix 13a April - June 2022 Number of leavers Replace Employee Filling on a temp basis Plan to transfer this budget to another post End of fixed term post Leave vacant pending savings or service review Plan to remove for savings 66
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Appendix 14 Applied Interviewed Appointed % of Applicants interviewed % of Applicants appointed % of Interviewees appointed 2949 1171 563 40% 19% 48% 730 297 127 41% 17% 43% 2201 797 360 36% 16% 45% 68 42 11 62% 16% 26% 2422 887 408 37% 17% 46% 496 206 84 42% 17% 41% 2760 1031 458 37% 17% 44% 137 41 17 30% 12% 41% 26 14 0 54% 0% 0% Applied Interviewed Appointed % of Applicants interviewed % of Applicants appointed % of Interviewees appointed 2131 745 306 35% 14% 41% 885 275 99 31% 11% 36% 1232 466 207 38% 17% 44% 98 35 9 36% 9% 26% 1766 597 256 34% 14% 43% 353 141 49 40% 14% 35% 2034 585 294 29% 14% 50% 76 24 9 32% 12% 38% 19 11 0 58% 0% 0% Total Number of appointments: 580 Total No of Veteran applicants Total No of applicants aged over 50 Total No of Female Applicants Gender / Disability / Age Total EO Forms Received Gender / Disability / Age *Black/Ethnic Minority applicants includes Mixed, Asian, Black and other backgrounds. Total No of White applicants Total No of Black/Ethnic minority applicants* Recruitment Monitoring Analysis of Gender, Disability, Ethnicity and Age From : 1 April 2022 - 30 June 2022 From : 1 April 2021 - 30 June 2021 542 Total Number of applications received: Total EO Forms Received Total No of White applicants Total No of Black/Ethnic minority applicants* Total No of Male Applicants Total No of Female Applicants Total No of Disabled Applicants Total No of applicants aged under 50 3059 Total Number of Equal Opportunities Monitoring forms received: 2949 Total Number of posts recruited for: *Black/Ethnic Minority applicants includes Mixed, Asian, Black and other backgrounds. Total Number of Equal Opportunities Monitoring forms received: 2131 Total No of applicants aged over 50 Total Number of posts recruited for: Total No of Veteran applicants Total Number of appointments: 327 Total Number of applications received: 2154 Total No of Male Applicants Total No of Disabled Applicants Total No of applicants aged under 50 314 67
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Appendix 15 Resource Total F/T P/T F/T P/T Total Director Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher Community & Enterprise Resources 3185 1300 231 196 1458 2244.04 1.00 1543.77 402.16 227.38 45.73 17.00 2.00 5.00 0.00 Education - Others 3207 138 89 651 2329 2347.67 1.00 1178.56 899.35 140.99 45.44 11.60 4.00 58.93 7.80 Education - Teachers 3941 704 71 2330 836 3587.40 0.00 0.00 0.00 0.00 0.00 1.00 0.00 4.60 3581.80 Finance & Corporate Resources 861 199 20 390 252 773.00 2.00 126.48 332.42 226.70 55.10 24.30 6.00 0.00 0.00 Housing & Technical 1299 829 24 320 126 1241.06 1.00 214.12 622.86 358.48 33.60 9.00 2.00 0.00 0.00 Social Work Resources 2680 231 168 1041 1240 2346.88 1.00 1149.08 589.20 542.04 34.80 28.76 2.00 0.00 0.00 0 8952.65 (excluding Teachers) Total All Staff 15173 3401 603 4928 6241 12540.05 6.00 4212.01 2845.99 1495.59 214.67 91.66 16.00 68.53 3589.60 Resource Total F/T P/T F/T P/T Total Director Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher Community & Enterprise Resources 3114 1218 227 196 1473 2168.47 1.00 1457.77 404.52 231.45 48.73 17.00 3.00 5.00 0.00 Education - Others 3227 140 92 664 2331 2364.07 1.00 1184.65 902.86 142.99 47.64 12.60 4.00 59.53 8.80 Education - Teachers 3935 704 71 2329 831 3583.60 0.00 0.00 0.00 0.00 0.00 1.00 0.00 4.60 3578.00 Finance & Corporate Resources 871 204 20 376 271 776.86 2.00 123.09 336.30 229.22 55.95 24.30 6.00 0.00 0.00 Housing & Technical 1296 831 23 314 128 1239.79 1.00 209.82 628.46 356.31 33.20 9.00 2.00 0.00 0.00 Social Work Resources 2694 226 172 1026 1270 2355.32 1.00 1182.65 568.72 542.39 31.80 26.76 2.00 0.00 0.00 0 8904.51 (excluding Teachers) Total All Staff 15137 3323 605 4905 6304 12488.11 6.00 4157.98 2840.86 1502.36 217.32 90.66 17.00 69.13 3586.80 QUARTERLYJOINT STAFFING WATCH RETURN : NUMBER EMPLOYED ON 12 MARCH 2022 Analysis by Resource Total Number of Employees Full-Time Equivalent Male Female Salary Band QUARTERLYJOINT STAFFING WATCH RETURN : NUMBER EMPLOYED ON 11 JUNE 2022 Analysis by Resource Total Number of Employees Full-Time Equivalent Male Female Salary Band 68
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Treasury Management Activity – 2022/2023 First Quarter Review 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide a first quarter review of Treasury Management Activity for 2022/2023 [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 2022 to 30 June 2022. 4. Market Performance 4.1. After the Bank of England left the base rate unchanged at 0.75% in January 2020, the onset of the coronavirus epidemic in March of that year resulted in 2 emergency cuts, first to 0.25% and then to 0.10%. 4.2. On 16 December 2021, the Bank of England increased the base rate to 0.25%. This was followed by further increases of 0.25% in February, March, May and June 2022 in order to control rising inflation. 4.3. As at 30 June 2022, the base rate was 1.25% and the Bank of England Asset Purchase Programme (commonly referred to as its policy of quantitative easing) was £866 billion. 4.4. On 4 August 2022, the Bank of England increased the base rate by a further 0.50% taking it to 1.75%. 4.5. At the time of writing this report, the Council’s Treasury Management Advisers are predicting a further increase of 0.50% in September 2022 followed by another 2 increases of 0.25% during 2022/2023 bringing the base rate to 2.75% by March 2023. 5. Debt Management and Borrowing Strategy 5.1. The Council began the year with debt of £993.486 million with fixed rate loans from the Public Works Loans Board (PWLB) making up 99.14% of the debt. 9 69
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5.2. Table 1 shows the movement in borrowing from 1 April 2022 to 30 June 2022. Short term borrowing reflects borrowing which will mature in the coming year, or where the debt can be recalled in the coming year. Table 1 – Movement in Borrowing to 30 June 2022 Balance as at 01/04/2022 £m New Borrowing £m Debt Maturing £m Debt Repaid £m Balance as at 30/06/2022 £m Increase/ Decrease in Borrowing £m Short Term Borrowing 43.884 0.000 (19.366) 0.00 24.518 (19.366) Long Term Borrowing 949.602 57.800 0.00 0.00 1,007.402 57.800 TOTAL BORROWING 993.486 57.800 (19.366) 0.00 1,031.920 38.434 5.2. 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. 5.3. The Council has an expected borrowing requirement of £249.746 million during 2022/2023, of which £57.800 million has been taken to the end of June as shown in Table 2. Table 2 – Details of Long Term Borrowing to 30 June 2022 Loan Ref. Period Start Date Principal £m Rate % Year High Year Low Average 513025 2½ - 3Yrs 13/05/2022 £57.800 2.38 3.14 2.08 2.50 5.4. The Executive Director (Finance and Corporate Resources), under delegated powers, will 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. 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 2022/2023 was approved by South Lanarkshire Council on 23 February 2022. 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 70
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outlooks and credit default swap (CDS) prices to establish a suggested time duration for deposits. 6.4. Deposits made in the period 1 April 2022 to 30 June 2022 totalled £498.262 million. This is the cumulative deposits placed over this period. This is broken down per sector and institution in Table 3. 88.38% of these deposits were made with the UK Government through the Debt Management Office (DMO) deposit facility and Treasury Bills. 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 8.43% of deposits with the remaining 3.19% placed in call accounts with Bank of Scotland and The Royal Bank of Scotland. Table 3 – Investment Activity 1 April 2022 to 30 June 2022 Counterparty Deposit Totals (£m) % of Total Deposits Average Interest Rate Deposits in UK Government Debt Management Account Deposit Facility 425.365 85.37% 0.92% Treasury Bills 14.982 3.01% 0.88% Total Deposits in UK Government 440.347 88.38% 0.92% Deposits in UK Local Authorities 42.000 8.43% 0.75% Deposits in UK Banks and Building Societies: Bank of Scotland 6.370 1.28% 0.53% Royal Bank of Scotland 9.545 1.91% 0.10% Total Deposits in UK Banks and Building Societies 15.915 3.19% 0.27% Total Deposits 01/04/2022 to 30/06/2022 498.262 100.00% 0.88% 6.6. The average interest rates achieved from the deposits are also shown in Table 3. 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. 6.7. Actual deposits as at 30 June 2022 totalled £277.598 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 2022 and set a framework for Treasury Management activities in 2022/2023. It also set limits on debt and investments in order to mitigate risks. 7.2. The Annual Investment Strategy for 2022/2023, also approved in February 2022, 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. 71
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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 4 to 5 show a breakdown of deposits with details of the credit ratings of banks and building societies used from 1 April 2022 to 30 June 2022. 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. Table 4 – Fitch Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (AA-) 440.347m 88.38% Deposits with Local Authorities 42.000m 8.43% A+ F1 15.915m 3.19% Total 498.262m 100.00% Table 5 – Moody’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (Aa3) 440.347m 88.38% Deposits with Local Authorities 42.000m 8.43% A1 P-1 15.915m 3.19% Total 498.262m 100.00% Table 6 – Standard and Poor’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (AA) 440.347m 88.38% Deposits with Local Authorities 42.000m 8.43% A+ A-1 6.370m 1.28% A A-1 9.545m 1.91% Total 498.262m 100.00% 7.5. The tables above show that 96.81% of deposits were made with counterparties of very high credit quality (DMO / UK Government and other local authorities). 7.6. The remaining deposits were in instant access accounts with The Royal Bank of Scotland and Bank of Scotland. 7.7. The graph at Appendix 1 shows the duration of deposits made from 1 April 2022 to 30 June 2022. The graph shows that, since 1 April 2022, all deposits have been made for 1 year or less. The maximum maturity period of 123 days was for a deposit of £20.000 million. 72
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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. Deposits may also be placed with selected Money Market Funds that meet the Council’s approved criteria. 8.4. 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. 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 2022/2023 were set in the Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy 2022/2023 approved by South Lanarkshire Council on 23 February 2022. These are shown in Table 7, along with a column showing the difference between the actual debt level and the limits (headroom). Table 7 – Limits for External Debt Estimate as per 2021/22 Strategy Minimum Headroom to Limits in period Headroom as at 30/06/2022 £m £m £m Operational Limit for external debt 1,340.000 292.214 308.080 Authorised Limit for external debt 1,360.000 312.214 328.080 9.3. The indicator shows that we have not breached the operational and authorised limits to 30 June 2022. There has been a minimum level of headroom of £312.214 million between actual and authorised level for external debt in the period to 30 June 2022. 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 8. 73
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Table 8 – Limits on Maturity Structure Maturity Structure of Borrowing Upper Limit Lower Limit Maximum for period to 30/06/22 Actuals as at 30/06/22 Under 12 months 30% 0% 4.42% 2.38% 12 months and 24 months 30% 0% 2.20% 2.11% 24 months and 5 years 50% 0% 21.71% 21.71% 5 years and 10 years 60% 0% 36.15% 34.68% 10 years and 20 years 60% 0% 6.35% 6.09% 20 years and 30 years 70% 0% 3.06% 2.94% 30 years and 40 years 80% 0% 31.36% 30.09% 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 June 2022. 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. 11.3. 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 (Including Environmental and Risk Issues) 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. Paul Manning Executive Director (Finance and Corporate Resources) 31 July 2022 74
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Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy 2022/2023, South Lanarkshire Council, 23 February 2022 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, Head of Finance Ext: 5637 (Tel: 01698 455637) E-mail: jackie.taylor@southlanarkshire.gov.uk 75
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Appendix 1 76
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Prudential Indicators, Treasury Management Activity and Annual Investment Report 2021/2022 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide an overview of the Treasury Management Activity and Prudential Code Indicators for 2021/2022 allow Committee to scrutinise the proposed Annual Investment Report for 2021/2022 [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 2021/2022 (Section 4 and Appendix 1), be noted; (2) that the 2021/2022 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 2021/2022 Annual Investment Report (Appendix 3) be endorsed; and (5) that the 2021/2022 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 2021/2022 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. 10 77
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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 2021/2022 are noted in Section 5 of the report and detailed 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 2021/2022 is summarised in Section 6 of this report with the detail in Appendix 3. 3.6. The Annual Investment Strategy for 2021/2022 recognised that any investment activity carries an element of risk. Appendix 4 details the investments that the Council were permitted to use in 2021/2022, 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 2021/2022. It should be noted that the Annual Accounts have not yet been audited and, therefore, some of the figures may be subject to change. Significant changes to the indicators resulting from the audit will be reported back to Committee at a later date. 4. Treasury Management Activity 2021/2022 4.1. Appendix 1 details the Treasury Management Activity for 2021/2022. 4.2. The Council ended the year with debt of £993.486 million with fixed rate loans from the Public Works Loans Board (PWLB) making up 99.14% 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 2021/2022 was 3.54% (3.78% in 2020/2021), 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 £132.070 million with the level varying throughout the year due to the timing of expenditure and receipts. 4.5. During 2021/2022, the Council placed £1,589.610 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 £0.104 million. 5. Treasury Management and Prudential Code Indicators – 2021/2022 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 2021/2022. 5.2. The General Fund Capital Expenditure for 2021/2022 was £60.338 million which is £12.095 million less than estimated in the Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy report presented to South Lanarkshire Council in February 2022. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 29 June 2022. 78
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5.3. The Housing Revenue Account Capital Expenditure in 2021/2022 was £73.181 million which is £6.459 million less than the estimate reported to South Lanarkshire Council in February 2022. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 29 June 2022. 5.4. The Council’s gross borrowing position for 2021/2022 was £1,179.776 million. This consists of external borrowing of £993.486 million and the PPP Finance Lease Liability of £186.290 million. Gross borrowing is less than the capital financing requirement of £1,298.460 million due to the fact that only £28.900 million of long- term borrowing was taken during 2021/2022. 5.5. The Council used its significant 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 £28.900 million, interest costs for 2021/2022 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 £15.211 million lower than forecast and for HRA is £10.604 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 2021/2022. 6. Annual Investment Report – 2021/2022 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 2021/2022 is detailed in Appendix 3 and summarised below. 6.2. During 2021/2022, the Council placed £1,589.610 million of deposits on a cumulative basis. All deposits made by the Council were in line with approved lending limits and credit rating criteria. £1,168.165 million (73.49%) 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 £421.445 million (26.51%) 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 £22.503 million in bank accounts with instant access. 6.4. No borrowing in advance was taken during 2021/2022. 7. Employee Implications 7.1. None 79
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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 2021/2022 the amounts charged to the General Fund in relation to debt (loan charges) totalled £33.035 million. HRA loan charges totalled £15.716 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 2021/2022, 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 any consultation in relation to the content of the report. Paul Manning Executive Director (Finance and Corporate Resources) 16 August 2022 80
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Link(s) to Council Values/Priorities/Outcomes Value: Accountable, effective, efficient and transparent Previous References Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy 2021/2022, Executive Committee, 10 February 2021 Treasury Management Activity – First Quarter Review, Finance and Corporate Resources Committee, 1 September 2021 Treasury Management Activity – Second Quarter Review, Finance and Corporate Resources Committee, 10 November 2021 Treasury Management Activity – Third Quarter Review, Finance and Corporate Resources Committee, 9 February 2022 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, Head of Finance Ext: 5367 (Tel: 01698 455367) E-mail: jackie.taylor@southlanarkshire.gov.uk 81
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Appendix 1 Treasury Management Activity Report 2021/2022 1. Background 1.1. The Annual Treasury Management Activity Report is a requirement of the Council’s reporting procedures and covers 2021/2022. The report also includes the Treasury Management Indicators for 2021/2022 in accordance with the requirements of the CIPFA Code of Practice for Treasury Management in the Public Sector and actual Prudential Indicators for 2021/2022 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 2021/2022; ▪ The Council’s treasury position at 31 March 2022; ▪ Economic Background for 2021/2022; ▪ Actual Performance During 2021/2022; ▪ Risk Management; ▪ Treasury Management and Prudential Indicators (see Appendix 2) 3. The Strategy Agreed for 2021/2022 3.1. At the time of determining the strategy for 2021/2022, 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 increase marginally. 82
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3.3. The differential between investment earnings and debt costs was expected to remain high throughout 2021/2022. 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 2022 4.1. The Council began the year with debt of £1,005.540m with fixed rate loans from the Public Works Loans Board (PWLB) making up 99.15% of the debt. By 31 March 2022, debt had decreased to £993.486m of which 99.14% was fixed rate loans from the PWLB. 4.2. Table 1 below shows the movement in borrowing to 31 March 2022. Table 1 – Movement in Borrowing from 1 April 2021 to 31 March 2022. Balance as at 01/04/2021 £m New Borrowing £m Debt Maturing £m Debt Repaid £m Balance as at 31/03/2022 £m Increase/ Decrease in Borrowing £m Short Term Borrowing 40.954 7.000 (47.954) 0.00 0.000 (40.954) Long Term Borrowing 964.586 28.900 0.00 0.00 993.486 28.900 TOTAL BORROWING 1,005.540 35.000 (47.954) 0.00 993.486 (12.054) 4.3. The Treasury Position at the 31 March 2022 compared with the previous year is shown in Table 2 overleaf: 83
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Table 2 – Treasury Position as at 31 March 2022 31 March 2022 31 March 2021 Principal Average Rate Principal Average Rate Fixed PWLB £984.986m 3.91% £997.004m 3.92% Fixed Market £0.000m 0.00% £0.036m 0.00% Total Fixed Rate Debt £984.986m 3.91% £997.040m 3.92% Market £8.500m 5.46% £8.500m 5.46% Total Variable Rate Debt £8.500m 5.46% £8.500m 5.46% Total Debt £993.486m 3.92% £1,005.540m 3.93% Total Deposits £132.070m 0.48% £171.100m 0.04% 4.4. The gross debt position decreased by £12.054m from 31 March 2021, accounted for by repayments of PWLB (£40.918m), repayments of the interest free loan from Salix (£0.036m) offset by new borrowing from the PWLB (£28.900m). 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 2021/2022 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 2021/22 3.54% 0.07% 2020/21 3.78% 0.06% 2019/20 3.89% 0.07% 5. Economic Background for 2021/2022 5.1. Following two emergency cuts in March 2020, the Bank of England base rate remained unchanged at 0.10% until the Bank of England began a series of increases during the latter part of 2021/2022 in order to control rising inflation. The base rate ended the year at 0.75%. 5.2. Gilt yields and PWLB rates fell towards the end of 2021 but began to rise in 2022. These rises have been part of a global trend as central banks across the world suggested they will continue to increase interest rates to contain inflation. 84
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5.3. Details of significant interest rates during 2021/2022 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 0.75% 2.03% 2.37% 2.52% 2.76% 2.70% 2.57% 2.49% Average 0.19% 1.13% 1.45% 1.78% 2.09% 2.07% 1.95% 1.85% Low 0.10% 0.78% 1.05% 1.39% 1.69% 1.60% 1.39% 1.25% 6. Actual Performance during 2021/2022 6.1. Capital expenditure for the year was £133.519m. During 2021/2022 the Council secured £28.900m of long term borrowing from the PWLB. This was the first long- term borrowing that had been taken since 2018/2019. This borrowing was to fund capital expenditure and maturing debt from 2019/2020 and 2020/2021. Details of the long-term borrowing taken from the PWLB during 2021/2022 are shown in Table 5 below. Table 5 – PWLB Long Term Borrowing, 1 April 2020 – 31 March 2021 Loan Ref. Period Principal £m Rate % Year High Year Low Year Average 498423 6 - 6½ Yrs £0.148 2.14 2.40 1.16 1.55 498426 7 - 7½ Yrs £0.696 2.18 2.43 1.23 1.62 498428 8 - 8½ Yrs £12.933 2.23 2.46 1.29 1.69 498430 9 - 9½ Yrs £12.090 2.29 2.50 1.39 1.75 498432 10 - 10½ Yrs £3.033 2.34 2.55 1.42 1.81 £28.900 2.26 6.2. Borrowing was taken at interest rates that were consistent with the Council’s long- term borrowing strategy, and while borrowing could have been taken at lower variable interest rates during 2021/2022, there was no need to borrow due to the level of cash balances that the Council had available. Delaying the borrowing until later in the year and limiting the amount borrowed to only £28.900m reduced interest costs for 2021/2022 and generated savings that were used to support the Revenue Budget Strategy going forward. 6.3. During 2021/2022, the Council placed £1,589.610m 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 £0.104m. 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. 85
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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. 86
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Appendix 2 Treasury Management and Prudential Indicators 2021/2022 1. Treasury Management Indicators 2021/2022 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 31/03/22 Actuals as at 31/03/22 Under 12 months 30% 0% 4.07% 0.00% 12 months and 24 months 30% 0% 4.54% 4.42% 24 months and 5 years 50% 0% 12.20% 11.86% 5 years and 10 years 50% 0% 35.41% 35.82% 10 years and 20 years 60% 0% 12.42% 13.60% 20 years and 30 years 70% 0% 0.05% 0.05% 30 years and 40 years 80% 0% 35.22% 34.25% 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 2021/2022 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. 87
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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 £819.382m advances from the Loans Fund. During 2021/2022 new advances of £10.196m were made to part fund the Capital Programme, while repayments of £2.402m were made from the Council’s revenue expenditure. This left a closing balance of £827.176m to be repaid over the next 50 years. 4.4. The HRA had an opening balance of £249.707m advances from the Loans Fund. During 2021/2022 new advances of £39.942m were made to part fund the HRA Capital Programme, while repayments of £6.808m were made from the HRA. This left a closing balance of £282.841m 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 2022. 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 2021/22 819.382 10.196 -2.402 827.176 2022/23 827.176 0.000 -2.821 824.355 2023/24 – 2026/27 824.355 0.000 -38.797 785.558 2027/28 – 2031/32 785.558 0.000 -99.475 686.083 2032/33 – 2036/37 686.083 0.000 -110.342 575.741 2037/38 – 2041/42 575.741 0.000 -121.316 454.425 2042/43 – 2046/47 454.425 0.000 -123.508 330.917 2047/48 – 2051/52 330.917 0.000 -119.323 211.594 2052/53 – 2056/57 211.594 0.000 -109.629 101.965 2057/58 – 2061/62 101.965 0.000 -43.011 58.954 2062/63 – 2066/67 58.954 0.000 -50.930 8.024 2068/69 – 2071/72 8.024 0.000 -8.024 0.000 Housing Revenue Account Opening Balance New Advances Repayments Closing Balance 2021/22 249.707 39.942 -6.808 282.841 2022/23 282.841 0.000 -7.137 275.704 2023/24 – 2026/27 275.704 0.000 -31.920 243.784 2027/28 – 2031/32 243.784 0.000 -48.126 195.658 2032/33 – 2036/37 195.658 0.000 -55.918 139.740 2037/38 – 2041/42 139.740 0.000 -29.422 110.318 2042/43 – 2046/47 110.318 0.000 -33.196 77.122 2047/48 – 2051/52 77.122 0.000 -36.633 40.489 2052/53 – 2056/57 40.489 0.000 -26.090 14.399 2057/58 – 2061/62 14.399 0.000 -14.399 0.000 88
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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 2021/2022 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 2021/2022. The 2021/2022 estimate is also shown. Actual £ m Estimate £ m Variance £ m General Fund Capital Expenditure 60.338 72.433 -12.095 Funded by: Borrowing 10.196 25.408 -15.212 Capital receipts and grants 47.781 43.688 4.093 Revenue contributions 2.361 3.337 -0.976 Total Funding 60.338 72.433 -12.095 HRA Capital Expenditure 73.181 79.640 -6.459 Funded by: Borrowing 39.942 50.532 -10.590 Capital receipts and grants 13.602 9.471 4.131 Revenue contributions 19.637 19.637 0.000 Total Funding 49.362 79.640 -6.459 6.1.2. The General Fund Capital Expenditure for 2021/2022 was £60.338m which is £12.095m less than estimated in the Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy report presented to South Lanarkshire Council in February 2022. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 29 June 2022. 6.1.3. The Housing Revenue Account Capital Expenditure in 2021/2022 was £73.181m which is £6.459m less than the estimate reported to South Lanarkshire Council in February 2022. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 29 June 2022. 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. 89
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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. 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 2021/2022 plus any additional capital financing requirement over 2022/2023 and the following two financial years. The table below demonstrates that the Council has complied with this requirement 6.2.4. The Capital Financing Requirement for the General Fund is £15.211m lower than forecast and for HRA is £10.604m 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 2022 Actual £ m 31 March 2022 Estimate £ m Variance General Fund Capital Financing Requirement 1,015.606 1,030.817 -15.211 HRA Capital Financing Requirement 282.854 293.458 -10.604 Total Capital Financing Requirement 1,298.460 1,324.275 -25.816 Treasury Position as at 31 March 2021 Borrowing 993.486 964.586 28.900 PPP Finance Lease Liability 186.290 186.290 0.000 Gross Debt 1,179.776 1,150.876 28.900 6.2.5. The Council’s gross borrowing position for 2021/2022 was £1,179.776m. This consists of external borrowing of £993.486m and the PPP Finance Lease Liability of £186.290m. Gross borrowing is less than the capital financing requirement of £1,298.460m due to the fact that only £28.900m of long-term borrowing was taken during 2021/2022. 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 borrowing only £28.900m interest costs for 2021/2022 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 90
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year, and this will be reported in the Prudential report presented to Committee after year end. 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 revenue budgets. This limit would not be breached without the Finance and Corporate Resources Committee being advised. 2021/2022 £ m Operational Limit for External Debt 1,340.000 Authorised Limit for External Debt 1,360.000 Maximum Borrowing Position During the Period 1,005.540 Operational Limit for Other Liabilities (PPP/Finance Lease) 200.000 Authorised Limit for Other Liabilities (PPP/Finance Lease) 200.000 Maximum PPP/Finance Lease Liability 193.743 6.3.3. The table demonstrates that during 2021/2022 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. 2021/22 Actual £ m 2021/22 Estimate £ m General Fund Ratio of Financing Costs to Net Revenue Stream (expressed as %) 5.18% 5.56% HRA General Fund Ratio of Financing Costs to Net Revenue Stream (expressed as %) 16.04% 16.21% 7.1.2. For the General Fund, the ratio is less than forecast due to the Net Revenue Stream being higher than forecast, reflecting additional funding from the Scottish Government to assist with the response to COVID-19. 7.1.3. For the HRA, the ratio is less due to slightly higher borrowing costs than forecast offset by additional income. 91
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Appendix 3 Annual Investment Report 1. Permitted Investments 1.1. During 2021/2022 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 2021 to 31 March 2022 totalled £1,589.610m. This is broken down per sector and institution in the table below. 57.51% 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 914.165 57.51% 0.11% Total Deposits in UK Government 914.165 57.51% 0.11% Deposits in UK Local Authorities 254.000 15.98% 0.13% Deposits in UK Banks and Building Soc. Bank of Scotland 162.295 10.21% 0.23% Royal Bank of Scotland 259.150 16.30% 0.01% Total Deposits in UK Banks 421.445 26.51% 0.10% Total Deposits 01/04/2020 to 31/03/2021 1,589.610 100.00% 0.11% 1.3. The average interest rates achieved from the deposits are shown in the table above. Following the onset of the coronavirus pandemic, the Bank of England made two emergency cuts, first from 0.75% to 0.25% on 11 March 2020 and then to 0.10% on 19 March 2020. 1.3. On 16 December 2021, the Bank of England increased the base rate to 0.25%. This was followed by further increases of 0.25% in February and March 2022 to control rising inflation. 1.4. Actual deposits as at 31 March 2022 totalled £132.070m. 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 92
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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 2021 to 31 March 2022. 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 in DMADF (AA-) 914.165m 57.51% Deposits with Local Authorities 254.000m 15.98% A+ F1 421.445m 26.51% Total 1,589.610m 100.00% Moody’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits in DMADF (Aa3) 914.165m 57.51% Deposits with Local Authorities 254.000m 15.98% A1 P-1 421.445m 26.51% Total 1,589.610m 100.00% Standard and Poor’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits in DMADF (AA) 914.165m 57.51% Deposits with Local Authorities 254.000m 15.98% A+ A-1 162.295m 10.21% A A-1 259.150m 16.30% Total 1,589.610m 100.00% 2.4. The tables show that 84.23% 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 £22.503m in bank accounts with instant access. 2.6. No deposits were placed for periods in excess of 364 days. 93
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3. Borrowing in Advance 3.1. No borrowing in advance was taken during 2021/2022. 94
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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. 95
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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. 96
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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. 97
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Revenue Collection and Approval for Write Offs – 2021/2022 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise Committee of Revenue Collection performance for financial year 2021/2022 to 31 March 2022 advise Committee of the latest position regarding the Business Rates Incentivisation Scheme (BRIS) seek approval for write offs [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs]h (1) that performance in the collection of revenue be noted; (2) that the current position in respect of BRIS be noted; and (3) that write offs for the following be approved:- Council Tax £307,403.37 Sundry Debt £523,853.20 Housing Rent and associated charges £415,555.37 [1recs] 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 2021/2022. 4.2. The annual Council Tax collection target for 2021/2022 was set at 94.0%. A Council Tax collection rate of 95.54% was achieved, ahead of target by 1.54% and ahead of comparable performance in 2020/2021 by 0.65%. 4.3. Council Tax performance is now 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 for 2021/2022 when Scottish Water debts are removed is 96.19%, ahead of comparable performance in 2020/2021 by 0.64%. 11 99
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4.4. A Non-Domestic Rates (NDR) collection target of 96.0% was set for 2021/2022. A NDR collection rate of 97.5% was achieved, ahead of target by 1.5% and ahead of comparable performance in 2020/2021 by 0.8%. 4.5. The 2021/2022 annual target for Sundry Debt collection was set at 92.0%. A Sundry Debt collection rate of 98.1% was achieved, ahead of target by 6.1% and ahead of comparable performance in 2020/2021 by 0.3%. 5. Arrears Collection Performance 5.1. Arrears collection performance for Council Tax, NDR and Sundry Debt is presented in the second table of Appendix 1. 5.2. The 2021/2022 arrears annual target for Council Tax was set at £3.200 million, with collection of £4.289 million, ahead of target by £1.089 million (34.0%) and ahead of comparable performance in 2020/2021 by £0.782 million. 5.3. The 2021/2022 arrears target for NDR was set at £6.000 million, with collection of £7.290 million, ahead of target by £1.290 million (21.5%) and ahead of comparable performance in 2020/2021 by £6.383 million. The high arrears collection is directly related to a higher value of additions made to the valuation roll by the Assessor in March 2021. 5.4. The 2021/2022 arrears target for Sundry Debt was set at £9.447 million, with collection of £8.606 million, behind target by £0.841 million (8.9%) but ahead of comparable performance in 2020/2021 by 2.6%. 6. Business Rates Incentivisation Scheme 6.1. The Business Rates Incentivisation Scheme (BRIS) is a Scottish Government initiative to incentivise growth of the local business tax base, with a view to increasing NDR 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. As previously advised, due to the impact of COVID-19, the Scottish Government confirmed that the scheme has been suspended for both 2020/2021 and 2021/2022. 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. 7.2. The proposed write off of Council Tax accounts dating from 1993/1994 to 2021/2022 totals £307,403.37, relating mainly to prescribed debt, sequestrations and estates of the deceased. 7.3. Following consultation and agreement with Resources, the proposed write off of Sundry Debt totals £523,853.20. 7.4. Approval is sought for the write off of former tenant rent arrears of £330,106.33, factoring arrears of £955.79 and Housing Benefit Overpayments of £84,493.25. 100
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7.5. 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. 12.2. There is no requirement to undertake any consultation in relation to the content of this report. Paul Manning Executive Director (Finance and Corporate Resources) 11 August 2022 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Ambitious, self-aware and improving Previous References Finance and Corporate Resources Committee - 9 February 2022 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 101
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Appendix 1 SOUTH LANARKSHIRE COUNCIL REVENUES COLLECTION FOR PERIOD ENDING 31 MARCH 2022 Annual Budget Cash Target Actual Variance % Variance Budget to 31/03/22 to 31/03/22 to 31/03/22 to Notes £000's £000's £000's £000's annual budget FINANCIAL YEAR 2021/2022 Council Tax 137,154 137,154 139,405 2,251 over 1.54% Non-Domestic Rates 310,031 310,031 314,994 4,962 over 1.5% Sundry Debt 118,676 118,676 126,582 7,906 over 6.1% ARREARS Council Tax 3,200 3,200 4,289 1,089 over 34.0% Non-Domestic Rates 6,000 6,000 7,290 1,290 over 21.5% Sundry Debt 9,447 9,447 8,606 (841) under -8.9% 102
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 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:- [purpose] advise Committee of Revenue Collection performance for financial year 2022/2023 to 30 June 2022 advise Committee of performance regarding the Business Rates Incentivisation Scheme (BRIS) for financial year 2022/2023 to 30 June 2022 seek approval for write offs [1purpose] 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 BRIS be noted; and (3) that write offs for the following be approved:- Council Tax £240,491.71 Non-Domestic Rates £992,381.14 BID Levy £11,774.26 Sundry Debt £998,389.92 Housing Rent and associated charges £266,145.40 [1recs] 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 2022/2023. 4.2. The annual Council Tax collection target for 2022/2023 has been set at 95.5%. Council Tax collection is currently 37.47%, ahead of target by 0.07% and ahead of comparable performance in 2021/2022 by 5.63%. Due to the Scottish Government’s Cost of Living Award being allocated as an up-front cash payment at the beginning of the financial year, a comparison with the same period in 2021/2022 is not on a like-for-like basis. 4.3. A Non-Domestic Rates (NDR) collection target of 97.5% has been set for 2022/2023. NDR collection is currently 24.6%, ahead of target by 0.2% and ahead of 12 103
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comparable performance in 2021/2022 by 13.2% due to two large energy companies paying their annual bills in full as opposed to paying by instalments as they have done in previous years. 4.4. The 2022/2023 annual target for Sundry Debt collection has been set at 98.0%. Sundry Debt collection to 30 June 2022 was 96.8%, behind target by 1.2% but ahead of comparable performance in 2021/2022 by 0.4%. 5. Arrears Collection Performance 5.1. Arrears collection performance for Council Tax, NDR and Sundry Debt is presented in the second table of Appendix 1. 5.2. The 2022/2023 arrears annual target for Council Tax has been set at £3.500 million, with collection to 30 June 2022 of £1.199 million, ahead of target by £0.010 million (0.3%) but behind comparable performance in 2021/2022 by £0.166 million. 5.3. The 2022/2023 arrears target for NDR has been set at £2.000 million, with collection to 30 June 2022 of £1.392 million, ahead of target by £0.048 million (2.4%) but behind comparable performance in 2021/2022 by £4.011 million. For context, the high arrears collection in 2021/2022 was directly related to a higher value of additions made to the valuation roll by the Assessor in March 2021. 5.4. The 2022/2023 arrears target for Sundry Debt has been set at £11.309 million, with collection to 30 June 2022 of £9.194 million, ahead of target by £0.023 million (0.2%) and ahead of comparable performance in 2021/2022 by 17.8%. 6. Business Rates Incentivisation Scheme 6.1. The Business Rates Incentivisation Scheme (BRIS) is a Scottish Government initiative to incentivise growth of the local business tax base, with a view to increasing NDR 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. Due to the impact of COVID-19, the Scottish Government confirmed that the scheme has been suspended for both 2020/2021 and 2021/2022. Currently, there has been no update on the reinstatement of BRIS for 2022/23. Further guidance and information is awaited from the Scottish Government. 6.4. Nonetheless, BRIS performance continues to be monitored closely and is reported to Committee on a quarterly basis. Buoyancy for the first quarter, to the end of June 2022, has seen an increase of 0.27%. 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. 7.2. The proposed write off of Council Tax accounts dating from 1993/1994 to 2022/2023 totals £240,491.71, relating mainly to prescribed debt, sequestrations and estates of the deceased. 104
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7.3. The value of accounts currently marked for write off in the Non-Domestic Rates system from rating years 2020/2021 to 2022/2023 totals £992,381.14. 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 £11,774.26, 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 £998,389.92. 7.6. Approval is sought for the write off of former tenant rent arrears of £176,714.90, factoring arrears of £2,798.99 and Housing Benefit Overpayments of £86,631.51. 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. Equalities 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. 12.2. There is no requirement to undertake any consultation in relation to the content of this report. Paul Manning Executive Director (Finance and Corporate Resources) 11 August 2022 105
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Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Ambitious, self-aware and improving Previous References Finance and Corporate Resources Committee - 9 February 2022 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 106
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Appendix 1 SOUTH LANARKSHIRE COUNCIL REVENUES COLLECTION FOR PERIOD ENDING 30 JUNE 2022 Annual Budget Cash Target Actual Variance % Variance Budget to 30/06/22 to 30/06/22 to 30/06/22 to Notes £000's £000's £000's £000's annual budget FINANCIAL YEAR 2022/2023 Council Tax 144,930 56,758 56,860 102 over 0.07% Non-Domestic Rates 322,053 80,596 81,154 558 over 0.2% Sundry Debt 123,962 123,962 122,463 (1,499) under -1.2% ARREARS Council Tax 3,500 1,189 1,199 10 over 0.3% Non-Domestic Rates 2,000 1,344 1,392 48 over 2.4% Sundry Debt 11,309 9,171 9,194 23 over 0.2% 107
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: 2022/2023 Information and Communication Technology (ICT) Asset Management Plan 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise Committee on the outcomes of the 2022/2023 Information and Communication Technology (ICT) Asset Management Plan. [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the contents of the report be noted; and (2) that the ICT Asset Management Plan for 2022/2023 be approved. [1recs] 3. Background 3.1. The Executive Committee, at its meeting held on 22 September 2010, approved the implementation of an extended model for Corporate Asset Management from 2011. This included developing Asset Plans across a number of service areas, in line with CIPFA guidance, and summarised, under an overarching Corporate Asset Management Plan, which demonstrates how each area supports corporate objectives. The Service Areas are Property, Housing, ICT, Roads Infrastructure and Fleet. 3.2. The ICT Asset Management Plan aims to put in place effective ICT asset management processes which enable high quality ICT services to be provided to meet the needs of the Council. 4. Outcomes of the 2022/2023 ICT Asset Management Plan 4.1. The ICT Asset Management Plan outlines the priorities and strategies required to develop and support the ICT asset estate which is in place to support the business objectives of the Council whilst ensuring business continuity. The plan highlights the key actions planned for the year ahead, ensuring that the Council’s ICT Assets are fit for purpose. 4.2. The programme to migrate all desktop and laptop PCs to Windows 10, delayed due to the pandemic, will conclude during the year. 4.3. A major programme of server upgrades will be conducted to maintain performance and security levels. 13 109
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4.4. Several major business applications will be replaced, including Oracle Finance/HR/Payroll system to Oracle Cloud Fusion. 4.5. Ongoing upgrades to the Council’s data network will include the replacement of network access switches which are nearing end of life, upgrade of lines to increase capacity and bandwidth, and replacement of firewalls and wireless access points to maintain and enhance data security. 4.6. A number of small telephone systems are reaching end of life/support, a replacement programme has been established. 4.7. Mobile phones running older versions of Android operating system will be refreshed. 4.8. The Information and Communication Technology Asset Management Plan for 2022/2023 is attached at Appendix 1. 5. Employee Implications 5.1. There are no employee implications. 6. Financial Implications 6.1. The details of the plans will influence future investment decisions and capital bids, but there are no direct Financial Implications from the production of the AMP. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no implications for climate change or sustainability in terms of the information contained in this report. 8. Other Implications 8.1. There are no significant issues in terms of sustainability or risk. 9. Equality Impact Assessment and Consultation Arrangements 9.1. 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. 9.2. The statutory Consultation Authorities have confirmed that the Asset Management Plan is exempt from Strategic Environmental Assessment as its implementation will have minimal effect in relation to the environment. Paul Manning Executive Director (Finance and Corporate Resources) 15 August 2022 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References None 110
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List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Brian Teaz, Head of Information Technology Ext: 5648 (Tel: 01698 455648) E-mail: brian.teaz@southlanarkshire.gov.uk 111
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Finance and Corporate Resources South Lanarkshire Council Information and Communication Technology Asset Management Plan 2022/23 112
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1. Introduction and contextual statement 1.1 Information Technology Services within Finance and Corporate Resources employs 102 staff and administers a controllable annual budget of £6.65 million. Information Technology Services operate as a centralised Information and Communication Technology (ICT) service provider for the Council, coordinating and delivering a wide range of services. These include the support and maintenance of PCs and servers, running business applications for all departments including schools. This delivery is supported by Council wide networks including fixed and mobile telephony, electronic mail, training, and all internet services. Information Technology has a significant role to play in enabling efficient and effective services throughout the Council. In addition to supporting and enabling the Council’s values and objectives, the IT Service will be a key enabler of business transformation through consolidation of information systems and provision of ICT that provides cost benefit to the Council in the longer term. Technology Services design, manage, implement, and secure all of the Council’s hardware investments, including personal computers, associated servers and backup and recovery functions. In addition, the section facilitates availability of the Council’s Mail and Internet Services whilst ensuring that the voice and data networks are in place to support all the Council’s business. The IT Business Project Managers and teams are responsible for planning, managing and effectively and efficiently delivering a range of IT projects and programmes. Whilst projects vary in both size and complexity, they will deliver positive business outcomes and transformational change for the Council. These projects are defined and prioritised in the ICT Service Plan 2022/2023. These teams are also responsible for the day-to-day support and maintenance of the Council’s business IT systems. This includes the management and resolution of issues, the implementation of requests and minor enhancements and the performance of routine monitoring and maintenance tasks. IT Service Delivery provide day-to-day service provision to IT Services and supply business management and process control functions. Services provided are the IT Service Centre, IT Support Team, National Entitlement Card Team, Project Management Office, and IT Security. 113
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1.2 CMT and Executive Committee approved the development of an extended model for Corporate Asset Management. This included developing asset plans across a number of service areas, in line with CiPFA guidance, and summarised, under an overarching Corporate Asset Management Plan, which demonstrates how each area supports corporate objectives. The service areas are Property, Housing, Roads Infrastructure, Fleet and ICT:- 1.3 Aims of the ICT Asset Management Plan are: - To create an effective ICT asset management process - To modernise working practices and improve service quality - To effectively manage and maintain all the Council’s ICT assets. 114
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2. Strategic objectives and priorities 2.1 Link to Finance and Corporate Resource Plan outcomes The ICT Asset Management Plan feeds into the Resource outcomes of the Finance and Corporate Resource plan. Delivering the plan and achieving best value Resource outcome – Digital and ICT services meet the needs of the council and its customers Action: - Take forward IT strategic developments 2.2 Links to 2022/23 council ICT priorities In aligning the Digital Strategy 2022-2027, operational service delivery and in turn ICT assets to the objectives of the Council, it is important to consider the following: - The needs of service users to access and receive services in different ways (channels). - Develop the right blend of channels for digital, mobile and electronic service delivery. - Maximise availability of information and technology to include as many customers as possible. It is, therefore, essential to maintain the current ICT asset estate which is in place to support the business objectives of our customers whilst maintaining a robust solution for business continuity through a disaster recovery strategy. Objectives and strategies should reflect the needs of users for receiving services through different channels and to address the demands of Local Government in a public sector environment where both capital and revenue funding is reducing. Therefore, future investment in ICT assets will be challenged by the IT Senior Management Team, the ICT Programme Board, and the Corporate Management Team to meet the following criteria: - Investment in ICT assets will be closely aligned to council priorities. - Investment in ICT assets will be sufficient to support statutory requirements. 2.3 Links to sustainability objectives 2.3.1 Sustainable Development and Climate Change Strategy – The 2017-2022 strategy proposes the theme – Sustainable Council which considers the Council’s own impact on the environment and what they will do with staff and partners to minimise it. The strategy outcomes of this theme are: - The Council’s carbon emissions are reduced. - The Council is environmentally responsible in the procurement, use and disposal of resources. - Climate change duties are further embedded in the delivery of Council services and its collaborations with partners on climate change mitigation and adaption. IT Services has focussed particularly on improving effective use of energy in our buildings, using our equipment more efficiently and increasing recycling. Also, ICT equipment that has come to end of life is disposed/recycled by an approved supplier who disposes of the equipment following the Waste Electrical and Electronic Equipment Regulations (WEEE) and provides a confirmation of disposal certificate. 115
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Migration of council servers and storage from Caird datacentre to external supplier (Datavita), as well as providing operational benefits, has delivered significant environmental benefits as new datacentre is state-of-the-art with lower energy consumption. IT have enabled agile working, thereby reducing transport emissions from commute and business travel. 2.3.2 The Council’s Environmental and Sustainable Procurement Policy ensures the process of purchasing goods and services take into account the social, economic and environmental impacts that such purchasing has on people and communities. It is about considering what products are made of, where they have come from, who has made them, how are they transported and how they are eventually disposed of. It may even be about whether the purchase requires to be made at all. In addition to this the tendering process for IT contracts contains contract specific environmental questions in relation to equipment manufacturing, components, recycled content, packaging, transportation, disposal, and energy consumption. 2.4 ICT asset management objectives Aims and objectives that will seek to ensure that the Council’s ICT assets are fit for purpose within current financial constraints. − ICT assets should meet the needs of those that use them including staff, elected members, pupils, visitors, customers and the general public through the different access channels. − ICT assets must be safe, secure and comply with current legislative and statutory requirements, for example assets must meet the level of security accreditation required by PSN, as well as DSE assessments for users, PAT testing of all electrical ICT assets, compliance with WEEE regulations for disposal of electrical ICT assets, to name a few. − ICT assets should be environmentally sustainable, meaning the effective and efficient use of assets to reduce energy consumption and in turn CO2 emissions. − Maximise use of existing ICT assets where possible. Where asset acquisition is necessary there is a robust business case supporting procurement of the asset and where possible a single corporate solution. 116
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3. Current position 3.1 What assets do we have? 3.1.1 ICT assets: Asset type Quantity Desktop and server hardware: Servers (Physical and Virtual) 311 Servers (Curricular) 168 Storage 2 Monitors 6587 PCs 1137 PCs (Curricular) 8976 Laptops 5435 Laptops (Curricular) 2073 Tablets 292 Port Replicators 4502 Portable Devices (Curricular) 15895 Networks and communications: Comms (ACI) APIC server 9 Comms (ACI) switches 40 Comms FMC 4 Comms Firewall 12 Comms Load Balancers 4 Voice SIP Gateway (cubes) 4 Voice SIP Gateway (Gateways) 3 Meraki Wireless Software 1 Comms Wireless (Access Points) 280 Comms Wireless (Security Appliance) 2 Switches - Chassis 9 Switches – Ethernet L2 354 Switches – Ethernet L3 67 Routers - Chassis 1 Routers - Access 23 Routers (IPVPN Broadband) 87 Lines (Exchange) 1736 Lines (Private Circuits) 89 Lines (IPVPN broadband - including backhaul) 87 NetConnect Appliances 2 Network Management 8 Radius Security Appliance 2 Web Filtering Appliances 2 Telephone System – Small 218 Telephone System – IP 3 Telephone System – SIP 2 Telephone System – Softphone 3 Mobile Devices 5966 Data hubs: Air Conditioning Units 2 Fire Suppression System 1 UPS 2 Generator 1 Video Surveillance Equipment 1 Software: P1 Applications 148 117
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3.1 How well are they meeting objectives? All ICT assets have been implemented/installed following business requirements and justification exercises to ensure they meet the needs and objectives of the organisation. As the information technology environment continuously changes it is inevitable that some ICT assets will reach end of life and become obsolete. Software and hardware assets are continually reviewed to ensure they remain fit for purpose. Specific product versions are monitored, and we work closely with our software and hardware partners on product roadmaps to ensure they remain at a supported level. Where products are approaching end of life, we will develop proposals for continued use based on risk assessment, upgrade or replacement as appropriate. At present the majority of ICT assets meet the objectives of the organisation with a minority of assets at end of life and in need of replacement. 118
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4. Performance core facts Notes to tables below – core facts are categorised using a traffic light system which operates on the basis of: Green – Good or excellent Amber – Fair Red – Poor 4.1 Desktop hardware IT desktop hardware Asset condition Type Total Green Amber Red PC 1137 966 - 171 PC (Curricular) 8976 8976 - - Monitor 6587 5380 1207 - Laptop 5435 5298 - 137 Laptop (Curricular) 2073 2073 - - Tablets 292 266 - 26 Port Replicator 4502 393 2979 - Portable Devices (Curricular) 15895 15895 - - 4.2 Server hardware Server hardware Asset condition Type Total Green Amber Red Server 311 100 169 42 Server (Curricular) 168 168 - - 4.3 Networks and communications Networks and communications Asset condition Type Total Green Amber Red ACI APIC/MSO server 9 9 - - ACI switches 40 40 - - Firewall Mgmt (FMC) 4 4 - - Firewalls 12 10 2 - Load Balancers 4 4 - - Voice Gateway 3 3 - - Meraki Wireless Software 1 - - 1 Comms wireless Access Points (corporate) 280 122 158 - Comms wireless Security Appliances (corporate) 2 - 2 - 119
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Switches – Chassis 9 - - 9 Switches – L2 345 42 215 88 Switches – L3 57 57 - - Routers – Chassis 1 1 - - Routers – Access 23 - - 23 Routers – IPVPN Broadband 87 - - 87 Lines – Exchange 1736 - 1736 - Lines – Private Circuits 89 89 - - Lines – IPVPN Broadband (incl backhaul) 87 5 82 - NetConnect Appliances 2 - - 2 Network Management 8 - - 8 Radius Security Appliances 2 - - 2 Web Filtering Appliances 2 - - 2 Telephone System – Small 210 101 109 Telephone system – IP 3 - 3 Telephone system – SIP 2 2 - - Telephone system – Softphone 3 - 3 - Mobile Devices 5635 5209 - 426 4.4 Software applications Software applications Asset condition Type Total Green Amber Red IT Applications 148 103 7 38 4.5 Data Hubs Almada Data Hub Asset condition Type Total Green Amber Red Air Conditioning Units 2 2 - - Fire Suppression System 1 1 - - UPS 2 2 - - Generator 1 1 - - Video Surveillance Equipment 1 1 - - 120
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5. Review of current performance 5.1 Summary The majority of ICT assets are of a good standard (Green) and work efficiently and effectively. All desktop assets and server assets are supported and maintained to a high standard as part of the ‘ICT Desktop Equipment’ and ‘Cloud Hosting’ contracts. Desktop and server hardware information along with information on smart devices is captured in the Assyst Configuration Management Database which is managed by IT Services. Overall, there is a high level of confidence and reliability in the ICT assets. 5.2 What issues have been highlighted? 5.2.1 Red – These assets have been classified as approaching end of life and require replacement: Legacy server operating systems –There are 42 servers with out of support operating systems. Programmes of work are in place to replace these systems in 2022/23. Desktop hardware – A PC refresh programme is underway to upgrade all desktops and laptops to Windows 10 Release 20H2. Legacy software versions – Application Reason Capita Academy Housing No longer supported by supplier. Project underway to replace. Oracle Financial Management System No longer meets business needs. Project underway to replace. Oracle Human Resource Management System No longer meets business needs. Project underway to replace. SWISPlus Social Work System No longer meets business needs. Project underway to replace. CommonTime – Social Work Home Care No longer meets business needs. Project underway to replace. Civica Flare Project underway to replace. EXOR Project underway to replace. Weighbridge Application does not work with Windows 10. Cloud system being evaluated. Mapcapture Project underway to replace. ParkMap Upgrade to be initiated Spatial Manager Project underway to replace. Causeway CPA Upgrade to be initiated Confirm Upgrade project underway. SEEMIS Click+Go Being replaced by new SEEMIS Schools & Early Years systems, date unknown Council Website Moved to AWS but required patching is taking place and new versions of CMS & Forms available 121
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Northgate ORBIS NDR/Council Tax/Benefits Upgrade to be initiated Softbox Upgrade project underway. EDRMS - Civica W360 Upgrade to be initiated Civica Debtors System Upgrade to be initiated Assyst Project underway to upgrade. Oracle Discoverer (CRM) End of life. Consultation with system owner underway to determine options Legal Case Management High support overhead. Consultation with system owner underway to determine options IMPROVE – Performance Management No longer meets business needs. Project underway to replace. Captia Housing Online Will be replaced by new Housing Management System eConsol Will be replaced by new Housing Management System eConsol Mobile Will be replaced by new Housing Management System Bi Query Reports Will be replaced by new Housing Management System Arbitas (Hosted) Will be replaced by new Housing Management System Infoprop Content Will be replaced by new Housing Management System Caseworks (Hosted) Will be replaced by new Housing Management System Yardi Will be replaced by new Housing Management System Servitor Will be replaced by new Housing Management System APEX Case Management Will be replaced by new Housing Management System Capita Support (Hosted) Will be replaced by new Housing Management System Data Tracking (HIP) Will be replaced by new Housing Management System HFX Etarmis Door Entry/Time Recording No longer meets business needs. Project underway to replace. Gladstone Plus2 – Leisure Management System End of life. Consultation with system owner underway to determine options AirWatch Mobile Phone Management No longer supported by supplier. Project underway to replace. The Web Filtering appliances go out of maintenance in October 2022. The systems will be migrated from ‘on-premises’ appliances to the equivalent cloud service. Layer 2 switches – These switches provide end user device (printer, PCs, CCTV, VoIP phones, wireless access points) connectivity to the corporate network. The manufacturer has announced that several layer 2 switches are end of hardware support. 88 layer 2 switches have been purchased for install Network Management – Servers/appliances required to monitor (eg. alerting and utilisation) and administer (eg. hardware backup and policy push) the corporate network 122
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to ensure continued network performance and availability. These devices need to be replaced during 2022/23 to ensure supplier support and critical updates. Chassis Switches – 9 chassis switches will have module replacements in 2022/23, this brings the chassis into support until 2025. The Meraki Wireless software support requires renewal for a further 3 years. Access Routers – 23 access routers are end of life. These will be replaced as part of the layer 2 and layer 3 roll out. Lines (VPN) – the contract for the VPN circuits ends in December 2023. Funding will be required in 2023/24 to fund the core infrastructure for any new contract. VoIP/SIP/Softphone telephone systems – The current system hardware goes out of support in 2023/2024 and will require replacement. The Council’s small telephone estate has numerous systems which rely on analogue switched and telephony circuits. The enforced migration of telephony system from analogue to digital by 2025 will require switch and circuit replacements to keep these systems in operation prior to this. Lines (PSTN) - The Council has several PSTN lines, including alarm, lift, fire, connections to schools that will need to be upgraded for the Digital Changeover in 2025 The Council’s small telephone estate has several systems which have reached the end of support and require immediate replacement. In addition, the enforced migration of telephony system from analogue to digital by 2025 will require an addition number of switches and circuits upgraded to remain in operation prior to this. Tablets and mobile devices – devices are approaching end of life and a refresh programme is currently being undertaken to ensure new devices can be automatically upgraded to the latest security version. 5.2.2 Amber – This classification denotes assets that are of a fair condition and should be considered for upgrade, or are processes which require improvement: Legacy server operating systems –There are currently 169 servers which will require operating system upgrades by 2024. Comms wireless Security Appliances – provide secure WiFi for teleworks (guest and partner) for non-corporate workers, the 2 appliances require to be replaced by 2025. Wireless access points. The council has 158 Wireless Access points installed throughout the corporate network which are now end of life and will be replaced by July 2024. Corporate data network - used throughout the geographic area of the Council. The infrastructure requires investment to keep it secure, reliable, up to date and fit for purpose. Continued investment will be required to progress the refresh going forward, for equipment currently marked as amber. Layer 3 switches and routers – These switches provide network connectivity for many of the outlying offices on the Council’s corporate data network. The manufacturer has announced that a number of layer3 switching devices are approaching end of life. It is 123
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important that these devices are refreshed to maintain the current reliability and support levels. Layer 2 switches – These switches provide end user device (printer, PCs, CCTV, VoIP phones, wireless access points) connectivity to the corporate network. The manufacturer has announced 215 of layer 2 switches are approaching end of hardware support in 2022 through to 2027. Routers – IPVPN Broadband – 82 routers are end of support July 2023. They were due to be replaced as part of the Broadband contract renewal in 2022. As this contract has been extended to 2023, it has been accepted the routers will not be replaced until a new contract is awarded. Lines (PSTN) - The Council has several PSTN lines, including alarm, lift, fire, connections to schools that will need to be upgraded for the Digital Changeover in 2025 The Council’s small telephone estate has several systems which have reached the end of support and require immediate replacement. In addition, the enforced migration of telephony system from analogue to digital by 2025 will require an addition number of switches and circuits upgraded to remain in operation prior to this. Legacy software versions – Application Reason Oracle Customer Relationship Management Current version no longer fully supported. Replacement or upgrade to be considered. Artifax – Corporate and Theatre Management System Not compatible with remote working software. Requires to be upgraded. Council Intranet Moved to AWS but required patching is taking place and new versions of CMS & Forms available Funding Compliance and Project Monitoring APEX system requires upgrades to support monitoring/reporting. QPulse Replacement or upgrade to be considered. Problematic from a support perspective Galaxy websites – various Moved to AWS but required patching to take place and new versions of CMS available Community Grants Runs on legacy database platform. Replacement or upgrade to be considered. Consultation with users of these systems is underway to plan the replacement or upgrade of these software assets. Desktop hardware – Devices running Windows 10 version 20H2, which goes out of support in May 2023, will require to be upgraded by the end of May 2023. 124
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6. What action is required / proposed? 6.1 Action plan 2022/23 Asset objective Action Owner Timescale Comment Replace legacy servers & storage Replacement of servers and storage which have become end of life. Head of IT Services 2022/23 Refresh of equipment is being scheduled Legacy software versions Upgrading of software versions which have become end of life. Head of IT Services 2022/23 IT Services and application provider to schedule refresh of software Switches Hardware is end of life. Review specification, procure and install refreshed hardware Technology Services Manager 2022/23 Networks and contractor to schedule refresh of hardware Corporate Telephony Hardware is end of life. Review specification, procure and install refreshed hardware Technology Services Manager 2022/23 Networks and contractor to schedule refresh of hardware Telephone systems (Small) Hardware is end of life. Review specification, procure and install refreshed hardware Technology Services Manager 2022/23 A number of systems are out of support. Lines (PSTN) Review existing analogue lines in conjunction with Digital changeover 2025 Technology Services Manager 2022/23 Review of existing services subject to technical discussions with Telecoms Provider / Resources. Lines Review connection capacity and prioritise bandwidth upgrades required for Windows 10 equipment Technology Services Manager 2022/23 Capacity management on several sites shows lack of bandwidth for current Windows 7 devices, changes to Windows 10 will require additional bandwidth at these sites. Firewall hardware and software (SIP) Hardware end of life and filtering software service end of support. Technology Services Manager 2022/23 Refresh of hardware and source new filtering service. Network Management Hardware requires replacement to Technology Services 2022/23 To be refreshed subject to 125
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ensure supplier support and critical updates. Manager technical discussions with contractor and manufacturer. Desktop Hardware Replacement of desktop equipment running Windows 7 Technology Services Manager 2022/23 Replace devices as part of refresh programme. Desktop Hardware Upgrade of desktop equipment running Windows 10 20H2 Technology Services Manager 2022/23 Upgrade devices 6.2 Completed actions in 2021/22 Asset objective Action Owner Timescale Comment Caird Datacentre Closedown of the Caird Datacentre as services migrated to new Hosting contract Head of IT Services 2021/22 Caird Datacentre closed 31 December 2021. Services migrated to Datavita Hosting. Data Hubs Creation of 2 new data hubs (Almada and Brandongate) for onsite comms and legacy servers Head of IT Services 2021/22 New data hubs created and now fully functional. Replace legacy servers & storage Replacement of servers and storage which have become end of life. Head of IT Services 2021/22 Refresh of equipment is being scheduled in line with the Caird migration and hosting project. Legacy software versions Upgrading of software versions which have become end of life. Head of IT Services 2021/22 Replacements or upgrades to applications including Brightwave Learn Online, Parking System, Filemaker Desktop Hardware Replacement of desktop equipment running Windows 7 Technology Services Manager 2021/22 Replace devices as part of refresh programme. 126
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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 Email: equalities@southlanarkshire.gov.uk www.southlanarkshire.gov.uk 127
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Finance and Corporate Resources Workforce Plan 2022 to 2025 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] update the Committee on the Finance and Corporate Resources Workforce Plan 2022 to 2025 and highlight the key strategic actions required in relation to workforce planning [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):-[ recs] (1) that the content of the report be noted; and (2) that the Finance and Corporate Resources workforce plan (Appendix 1) be approved. [1recs] 3. Background 3.1. The Workforce Strategy for the Council was reported to Executive Committee in 2016 and following this Resources developed workforce plans covering the period 2017 to 2022. 3.2. Workforce plans outlined the strategic actions required to ensure that services have the right people, in the right place at the right time to enable delivery of the Council objectives. 3.3. The review of workforce plans has been delayed due to Covid impact and Resources have produced plans covering the period 2022 to 2025. 4. Workforce Planning Toolkit 4.1. The plans were developed using the Workforce Planning toolkit. 4.2. There are 4 planning stages outlined in the process:- Stage 1 - Determine the Business Strategy This stage is to undertake an analysis of the key internal and external drivers for the Resource and determine how these will inform the services to be delivered and the numbers and skills required in the workforce to achieve the desired outcomes. 14 129
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Stage 2 - Analyse and discuss relevant data This stage is about assessing relevant and available data relating to the current profile of the workforce and any observations and predictions around future resourcing requirements. Stage 3 – Agree objectives of the plan Using the information from Stage 1 and 2 to identify what the plan is trying to achieve, which will then need to be reviewed against available resources. Stage 4 – Agree actions and implement plan This stage is the culmination of stages 1-3 where Resources and the HR Business Manager develop an action plan based on key areas of the workforce to address risks have been identified in relation to ability to deliver business objectives. 5. Workforce Plan Overview 5.1. The workforce plan, including the action plan, for Finance and Corporate Resources is attached as Appendix 1. The plan provides an overview of the services delivered by the resource, the service demands and a workforce profile. This along with the strategic plans and drivers were used to identify the objectives and action required. 5.2. For Finance and Corporate Resources the key themes for workforce planning that have been identified are:- The demographic of the workforce and the impact on succession planning The ability to recruit and retain employees in key professional areas The development of current workforce to ensure skills are available to deliver in key strategic areas Maintaining employee wellbeing and resilience 5.3. In terms of actions specified to address the challenges the key activities are:- Revised recruitment practices to attract and retain employees A graduate apprenticeship approach A review of working practices, considering actions to develop employee skills to deliver services 5.4. This aligns with the general common themes from all Resource action plans which are:- Increased demand and a reduced workforce pool this is a national issue Demographic challenges – increased turnover, employees retiring earlier than expected and succession planning Employee well being 6. Risk Implications 6.1. The actions identified will assist the Resource achieve the right people with the right skills to deliver service, however there are risks if these actions cannot be delivered. These are:- Reduced workforce supply is a risk to delivering the actions identified and this can be reduced by adapting services to be delivered within workforce available Ability to maintain service requirements given the time taken to train and develop employees to achieve the required skills mix given the complexity of skills set required across the different roles Competing recruitment drives across authorities could mean a reduced staffing level in some areas 130
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7. Monitoring the Plan 7.1. The action plan will be monitored through the Resource management team as the arrangements on national initiatives emerge and any significant changes will be reported though the Corporate Management Team. 8. Employee Implications 8.1 Having a proactive workforce planning process in place ensures an effective workforce is in place to deliver our services. 9. Financial Implications 9.1. There are no costs associated with undertaking the workforce planning process and any financial implications that have been detailed in the action plan will be met within existing resources. 9.2. Planning for appropriate workforce arrangements demonstrates effective and efficient use of resources. 10. Climate Change, Sustainability and Environmental Implications 10.1. There are no implications for Climate Change, sustainability or the environment in terms of the information contained in this report. 11. Other Implications 11.1. The risks associated with the workforce plan are outlined in Section 6. 11.2. There are no other issues associated with this report. 12. Equality Impact Assessment and Consultation Arrangements 12.1. 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. 12.2. There is also no requirement to undertake any additional consultation in terms of the information contained in this report. Paul Manning Executive Director (Finance and Corporate Resources) 28 August 2022 Link(s) to Council Values/Priorities/Outcomes Focused on people and their needs Working with and respecting others Accountable, effective, efficient and transparent Ambitious, self-aware and improving Fair, open and sustainable Excellent employer Previous References Finance and Corporate Resources Committee, 6 September 2017 Executive Committee of 13 April 2016 - Workforce Planning Strategy Executive Committee of 8 March 2017 – South Lanarkshire Council Workforce Plan, 2017- 2020 131
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List of Background Papers None 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: 845 4647 (Phone: 01698 454647) Email: elaine.maxwell@southlanarkshire.gov.uk 132
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Finance and Corporate Resources Appendix 1 Workforce Plan 2022 - 25 1) Introduction and Background The purpose of this plan, is to outline the key strategic drivers for the Finance and Corporate Resources workforce to the current and future challenges and ensure these are aligned to the current and future Council challenges, risks and new developments. 2) Resource Overview Resource Structure The services within Finance and Corporate Resources help to ensure that the council operates successfully in an increasingly complex and challenging environment, and although diverse, each service is essential to the running of the council and the delivery of its vision, values and priorities. The Executive Director oversees the following service areas: Administration and Legal Services provides essential support for the core democratic and governance arrangements of the council as well as providing a full range of legal advice and support, managing electoral events and licensing and registration services to the public. Communications and Strategy provides accurate, timely information for employees and residents. The service is responsible for the council's publications, its websites, intranet and social media. It also co-ordinates all Media enquiries. The service incorporates the Research and Improvement Unit as well as the Community Engagement Team, which provides support to the Community Planning Board, and provides a single interface for community engagement including neighbourhood planning. Finance Services provides sound financial stewardship to ensure the council’s priorities are effectively funded and expenditure, including procurement, is appropriately monitored, controlled and reported. Finance Services is split between transactional activities including payables, procurement, risk management and insurance, revenues and benefits, customer services and development and money matters advice; and Strategy which includes budget strategy, budget monitoring and providing financial support to all Resources. Information Technology Services supports all council services through the maintenance of over 5,000 computers and servers running over 200 business applications across council Resources. This delivery is supported by council wide networks covering telephone, printing, mail and internet technologies. Personnel Services is responsible for delivery of the full spectrum of personnel policies and practices across the council. This includes employee learning and organisational development; consultation; and supporting unemployed people into jobs, training or further education. The service also manages payroll, health, safety and wellbeing and is responsible for the co-ordination and implementation of equality and diversity legislation, good practice, and advancing equality for all. 14 133
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The Resource is also responsible for Audit and Compliance Services, which provides assurance on the effectiveness of the council’s risk management, control and governance arrangements, as well as ensuring compliance with European grant award requirements. Resource Overview The Finance and Corporate Resource Plan (2022/23) has identified the main challenges, risks and new developments which will have significant impact on the delivery of services in the coming year. Key areas of focus are: • Covid recovery • Delivery of employability services to support economic recovery • Developing Financial strategy and plans to support the delivery of Council aims and ambitions • Supporting service reviews and the implementation of outcomes • Deepening community engagement • Climate change and sustainability • Communication and engagement • European Union Exit • Strategic Digital development • Equalities • Workforce planning Strategic Drivers The Resource plan sets out the key areas of focus, as well as strategic drivers and policy frameworks that will have an impact on Finance and Corporate and the workforce and these are detailed below: • Oracle fusion project • IT infrastructure • Digital Transformation • Financial savings and efficiencies • Covid recovery - A continued response to the impact of COVID pandemic and ensure resilience in the workforce to respond to future outbreaks • Recruitment and retention There is increased number of retirals, flexible working requests and turnover which results in a reduced workforce availability. • Pay and reward Increased demands to ensure that pay and reward remains competitive and attractive to employees Strategic Plans 134
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All of the above is factored into the key strategic plans which Finance and Corporate Resources is a key contributor or partner to. The main plans covering each of these areas are: • South Lanarkshire Community Plan 2017-27 • South Lanarkshire Council Plan 2022 - 27 • South Lanarkshire Children’s Services Plan 2021-23 • Input to the Sustainable Development and Climate Change Strategy • Finance and Corporate Resource Plan and associated Service Plans 3) Current Workforce and People Skills Required The Resource has 829.43 FTE employees which are broken down as follows: Service FTE Administration and Legal 84.65 Audit and Improvement 10.41 Communications and Strategy 49.16 Finance 386.21 IT 100.31 Personnel 198.69 General Workforce information: For 21/22 the absence rate was 3.6% and the turnover was 6.9% 49% workforce is 50 years old or over. In 2021/22 there have been an increase in the number of retirals, requests for flexible working and reduction in working hours. Workforce Challenges At present, there are a number of workforce challenges for Finance and Corporate Resources directly impacting on the ability to fully meet current demand, as summarised below: • Workforce availability – there are insufficient applications being made to fill roles for qualified accountants, solicitors, personnel, and IT roles, this has led to increased pressure on the existing workforce due to vacancies. • Ageing workforce – the profile of the workforce in South Lanarkshire is working against demand, with a significant proportion of the workforce being in the 50-70 age bracket (49%). As a result of the COVID pandemic people are re-evaluating priorities with a potential further increase in earlier retirals 4) Objectives of the Plan The objectives of this workforce plan are to consider how the above strategic priorities and areas of service demand can be mitigated against and managed over the course of the next 5 years. Delivering more of the same will not necessarily solve these challenges, and the services will have to consider new ways of working, inclusive of transformational change. 135
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Some of the principles underpinning how this will shape the workforce moving forwards have already been set out in the strategic plans referred to above. 5) Actions and Recommendations From the above, a number of key actions require to be taken forward in a workforce planning context to manage the demands and challenges of today and going forward over the next 5 years. Notably, the main ones are: • Review existing recruitment practices inclusive of adverts, use of social media and refreshed and updated job descriptions, where applicable • Consider development of a graduate apprenticeship approach for securing professional roles • Look at the existing structures and skills or skills base and consider what is required to deliver the services moving forwards across all areas • Succession planning across a number of key areas, and building leadership capacity • Optimise the efficiency of the existing workforce including staff absence cover: application of employee supports/wellbeing; application of Maximising Attendance processes and maintaining a solution-focussed approach to complex issues. 136
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Finance and Corporate Resources Workforce Action Plan 2022 - 2025 Appendix 1 Priority/Identified Needs. What are the future workforce priorities based upon your supply and demand analysis? Actions What specific actions that are needed to deliver each priority? Anticipated Outcomes Lead Officer Who is responsible for delivery? Support What support do we need? Who else needs to be involved? Timescale What are the timeframes for delivery? Financial Implications Workforce / HR Increased demand and reduced workforce pool Revised recruitment practices, greater use of social media and campaign approach, consider graduate apprenticeship approach and opportunities to develop current staff Fill vacancies Heads of Service / HR Business Manager HR advisers Annual none Pay and reward Promote benefits of working in SLC Recruitment and retention Heads of Service / HR Business Manager Ongoing Savings and Efficiencies requirements Identify savings requirements and continue to make efficiencies, review working practices and focus on new technologies Efficient deployment of resources to deliver service, sustainable IT service for the Council, development of staff Executive Director Finance Manager, Heads of Service and HR Business Manager Annual Increased number of retirals Quantify likely turnover Succession Planning, Recruitment to maintain agreed staffing levels Head of Service HR Business Manager Annual review 137
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Develop entry options into posts. Increased flexible working requests Monitor impact Review criteria Reduce impact on service delivery Heads of Service / HR Business Manager HR Business Manager 2022/23 Increased career break requests Monitor impact Review criteria Reduce impact on service delivery Heads of Service / HR Business Manager HR Business Manager Ongoing Employee Health and Well being Maintain support and explore additional support methods Improved attendance, retention Heads of Service / HR Business Manager HR Business Manager Ongoing 138
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Common Good Update Report 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise members of the Common Good Accounts for the year ended 31 March 2022 provide an update on the cyclical spend currently committed against the Common Good Repairs and Maintenance budgets for both Lanark and Hamilton provide an update on projects currently committed from the Common Good budgets for Lanark, Hamilton and Biggar provide details of consultations relating to the Common Good [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the accounts for Common Good for the year ended 31 March 2022 (section 4), be noted; (2) that the cyclical spend committed against the Common Good Repairs and Maintenance budgets for Lanark (section 5) and Hamilton (section 6), be noted; and (3) that the proposal to create a Lanimer Shed and Rural Development Centre at Lanark Racecourse be noted (section 7). 3. Background 3.1. The Common Good is a fund of money / assets and is administered by a Scottish local authority in respect of each former burgh within the area of the local authority. 3.2. Common Good property is administered separately from other local authority assets for accounting purposes. What the authority can do with the assets is subject to a system of statutory control. This control has the potential to limit the extent to which the authority can dispose of or deal with the asset and on what terms. 3.3. The Common Good funds held within South Lanarkshire Council are Lanark, Biggar, Hamilton and Rutherglen. Accounts are prepared on an annual basis, as part of the Council’s year end process. The position for the year ended 31 March 2022 is detailed in section 4. 3.4. The Common Good Accounts in Lanark and Hamilton hold a number of properties. A proactive approach to maintenance supports the viability of these assets and reduces the risk to greater liability in the future. 15 139
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3.5. The Finance and Corporate Resources Committee, at its meeting on 2 October 2013, approved an annual cyclical maintenance plan of £15,000 for both Lanark and Hamilton Common Good properties. The Executive Director (Finance and Corporate Resources) has delegated authority to approve maintenance work up to the value of £15,000 for each fund. If inspections highlight requirements to undertake investment which would be beyond routine maintenance, this will be considered separately for approval and will be the subject of a report to this Committee. 3.6. In addition to the accounts position covered in section 4, this report will provide an up-to-date position on the planned maintenance for both Lanark (Section 5) and Hamilton Common Good (Section 6). 3.7. Finally the report will provide information on a proposal to create a Lanimer Shed and Rural Development Centre at Lanark Racecourse (Section 7). 4. Common Good Annual Accounts 2021/2022 4.1. Appendix 1 to the report shows the unaudited accounts for 2021/2022. These form part of the Council’s accounts that were approved at the Risk and Audit Scrutiny Committee on 22 June 2022. The accounts show the income and expenditure made against common good in the last year. 4.2. The Appendix shows that as at the end of 2021/2022, the Balance Invested in South Lanarkshire Council’s Loans Fund is £0.754 million. This is the cash that is held by the Council on behalf of the Common Good funds, and which is readily available to meet expenditure. Table 1 provides the details across the Funds. Table 1 - Advances to South Lanarkshire Council Loans Fund Fund Lanark Biggar Hamilton Rutherglen Total £m £m £m £m £m Balance 0.191 0.024 0.412 0.127 0.754 5. Lanark Repairs and Maintenance Budget – Planned Maintenance 2022/2023 5.1. As noted in 3.5. an annual budget of £15,000 is available for the maintenance of Common Good properties in Lanark. There is one commitment of against the Repairs and Maintenance budget (£15,000) for 2022/2023 of £450 for a repair to the leadwork on the flat roof at the Tollbooth. 6. Hamilton Repairs and Maintenance Budget – Planned Maintenance 2022/2023 6.1. Again, as noted in 3.5. an annual budget of £15,000 is also available for the maintenance of Common Good properties in Hamilton. There are commitments of approximately £3,000 for projects relating to the Hamilton Town Centre Action Plan. 7. Lanimer Shed and Rural Development Centre at Lanark Racecourse 7.1. A report was presented to the Community and Enterprise Resources Committee on 9 August 2022 on a proposal to create a Lanimer Shed and Rural Development Centre at Lanark Racecourse. A copy of the report can be found at the following link:- Community and Enterprise Resources Committee Report 140
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7.2. The project would be funded from the Scottish Government’s Regeneration Capital Grant Fund (RCGF) and would result in the creation of assets which would be held in the Lanark Common Good Fund. 7.3. Discussions are ongoing with the potential tenants; Lanark Lanimer Committee and Healthy Valleys. Draft lease terms have been sent out to both organisations, however, there is currently no formal legal agreement for them to take up occupancy of the buildings. 7.4. Full market rent is estimated at £16,000 for the Lanimer Shed and £12,000 for the Rural Business Centre, however, both organisations are community groups and so consideration would be made to the rental being discounted by applying a concession. The rent concession would be calculated using the Council’s model used for Community Asset Transfers. 7.5. Maintenance costs, both external and internal for the Lanimer Shed and Rural Development Centre will be met by the Tenants under the terms of their leases. 7.6. If either of the properties is vacated, they would be relet on commercial terms, however, the Lanark Common Good Fund would be liable for any costs associated with the vacant property. As these buildings are being built with the intention of these being leased out, a financial liability to the Common Good would only arise should these tenants leave. Therefore, at this point there should be no financial implications for the Common Good. 7.7. Section 104 of the Community Empowerment (Scotland) Act 2015 requires a local authority which is considering a disposal or change of use in respect of property held as part of the common good to publish details of the proposed disposal or change of use and to invite representations from community councils, community bodies and any other persons. 7.8. The consultation in respect of the proposal to create a Lanimer Shed and Rural Development Centre at Lanark Racecourse was published on 19 July 2022 and closes on 14 September 2022. Details of the consultation were e-mailed to members of this Committee and the local members for Lanark on the 15 July 2022 and can be found at the following link: Lanark RC Site CG Notice 8. Employee Implications 8.1. None 9. Financial Implications 9.1. All costs identified will be met from the Common Good funds held within Lanark and Hamilton with the exception of the Lanimer Shed and Rural Development Centre which will be funded from the RCGF. 10. Climate Change, Sustainability and Environmental Implications 10.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 11. Other Implications 11.1. The ongoing repairs and maintenance support the viability of Common Good assets and reduces the Council’s risk to increased liabilities in the future. 141
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12. Equality Impact Assessment and Consultation Arrangements 12.1. 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. 12.2. There is also no requirement to undertake any consultation in terms of the information contained in this report. Paul Manning Executive Director (Finance and Corporate Resources) 16 August 2022 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent 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:- Jackie Taylor, Head of Finance Ext: 5637 (Tel: 01698 455637) E-mail: jackie.taylor@southlanarkshire.gov.uk@southlanarkshire.gov.uk 142
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Appendix 1 2020/2021 Annual Accounts Lanark Biggar Hamilton Rutherglen Total £000 £000 £000 £000 £000 Income and Expenditure Accounts Income for the Year 14 - 141 - 155 Expenditure for the Year (209) (8) (42) (1) (260) Surplus / (Deficit) to the Balance Sheet (195) (8) 99 (1) (105) Balance Sheet Fixed Assets Property, Plant and Equipment 1,470 - 1,499 - 2,969 Investments Advances to South Lanarkshire Council Loans Fund 191 24 412 127 754 Debtors - - 53 - 53 Total Assets 1,661 24 1,964 127 3,776 Current Liabilities Creditors (2) - (13) - (15) Total Assets less Current Liabilities 1,659 24 1,951 127 3,761 Represented By: Common Good Account 1,360 32 1,316 128 2,836 Surplus / (Deficit) (195) (8) 99 (10 (105) Amortisation of Revaluation Reserve 4 - 7 - 11 Gain / Loss on Revaluation - - - - - 1,169 24 1,422 127 2,742 Revaluation Reserve Opening Balance 470 - 536 - 1,006 Gain / Loss on Revaluation 24 - - - 24 Amortisation of Revaluation Reserve (4) - (7) - (11) Closing Balance 490 - 529 - 1,019 Total 1,659 24 1,951 127 3,761 143
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Governance of Charitable Trust Funds – 2021/2022 Position 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] inform Committee of the current status of the Trust Fund modernisation as well as the financial status of the Charitable Trust Funds administered by the Council [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the contents of this report are noted. [1recs] 3. Background 3.1. South Lanarkshire Council continues to administer a number Charitable Trust Funds. For the purposes of reporting to the Office of the Scottish Charity Regulator (OSCR), South Lanarkshire Council group the individual trusts funds into 3: South Lanarkshire Council Charitable Trusts; South Lanarkshire Council Educational Trusts; and East Kilbride Information Technology Centre Trust. 3.2. On 25 April 2018, the Finance and Corporate Resources Committee approved the proposal to modernise the Charitable Trust Funds. This included establishing governance arrangements as well as a formal constitution. 3.3. The process of modernisation is ongoing and until that exercise is complete and all funds transferred to the Modernised Trusts, the current Trust Funds administered by the Council will continue to be reported to this Committee. 3.4. This paper will provide an update on the modernisation process (section 4) and an annual report on the financial position of the 3 current Trust Funds as at 31 March 2022 (section 5). 4. The Modernisation of the Trusts 4.1. The Council’s Legal Services have been working with OSCR to formally adopt Trust Deeds and continue to work with them to achieve the modernisation of the Trusts. To date, OSCR have approved the re-organisation of 6 funds relating to the Leadhills area, 11 Hamilton area funds, 17 Clydesdale area funds and 18 Educational funds. 4.2. The application for the re-organisation of one Cambuslang and Rutherglen area fund was submitted to OSCR on 5 August 2022 and work is ongoing on drafting the 16 145
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applications to OSCR for the re-organisation of the Rutherglen Mortified Money fund and 7 East Kilbride Area funds. 4.3. As previously agreed, the 2 new Trusts (the South Lanarkshire Charitable Trust and the Education Trust) each have an appointed set of Trustees. The Trustees of the New Trusts are noted below. Trustees of the South Lanarkshire Charitable Trust Trustees of the South Lanarkshire Educational Trust Councillor Gladys Ferguson-Miller Councillor Gladys Ferguson-Miller Councillor Mark Horsham Councillor Mark Horsham Councillor Ross Lambie Councillor Ross Lambie Councillor Catherine McClymont Councillor Catherine McClymont Councillor Lesley McDonald Councillor Lesley McDonald Paul Manning Paul Manning Tony McDaid 4.4. Once the current Trusts are re-organised into the new Trusts, the Trustees detailed in section 4.3 will be responsible for the new Trusts. 5. Summary of Financial Position for 2021/2022 5.1. The opening balance of the 3 reported Charitable Trust Funds, as at 1 April 2021 totalled £1.191 million. Each Trust is taken in turn, showing a summary of the activity during 2021/2022 and the balance at the end of the year. 5.2. South Lanarkshire Council Charitable Trusts: No payments were made to beneficiaries from the South Lanarkshire Council Charitable Trusts during 2021/2022 as the process of transferring the balances to The South Lanarkshire Charitable Trust had commenced. 5.3. The balance at the start of the year was £1,036,589.71 and this reduced by £30,182.64 to £1,006,407.07 at the end of the year. The reduction was due to a transfer of funds to The South Lanarkshire Charitable Trust (£45,236.45), investment, audit and administration costs (£17,660.11) offset by income from interest, dividends and the sale of investments (£32,713.92). 5.4. Funds of the Loudon Bequest are managed by Barclays Wealth in the Barclay’s Charity Fund. Income earned on this investment is reinvested in the fund. 5.5. South Lanarkshire Council Educational Trusts: No payments were made to beneficiaries from the South Lanarkshire Council Educational Trusts during 2021/2022 as the process of transferring the balances to The South Lanarkshire Charitable Trust had commenced. 5.6. The balance at the start of the year was £127,427.41 and this was reduced by £852.93 to £126,574.48 by the year-end. This reduction was due to the external audit fee and administration costs (£910.72), offset in part by interest earned (£57.79). 5.7. East Kilbride Information Technology Centre Trust: The balance on the Trust has reduced by £179.76 from £26,856.66 at the start of the year to £26,676.90 at the end. This reflects a small amount of interest (£12.19) which was offset by the audit fee and administration costs (£191.95). 146
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5.8. Closing Balance on the Charitable Trust Funds: Overall the balance of the 3 funds as at 31 March 2022 was £1.160 million, a decrease of £0.031 million on the previous year position. The Accounts of the current Trusts were approved for Audit by the Risk and Audit Scrutiny Committee on 22 June 2022. The Audit is ongoing. 5.9. The remaining funds of the current Trusts will be transferred to the 2 new Trusts as soon as approval is received form OSCR. This is anticipated by the end of the calendar year at the latest. 6. Employee Implications 6.1. None 7. Financial Implications 7.1. All financial implications arising from the Trust review can be met by the Trust Funds. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no direct climate change, sustainability and natural environment implications arising from this report. 9. Other Implications 9.1. There is a risk that the funds of the Trusts are not used for the purpose that they were intended. To mitigate this risk, the governance arrangements approved by Finance and Corporate Resources Committee and to be put in place formally via OSCR, will ensure appropriate distribution of funds. In addition, OSCR also receive an annual report on the Trusts and their purpose. 9.2. There are no implications for sustainability in terms of the information contained within this report. 10. Equality Impact Assessment and Consultation Arrangements 10.1. There is no requirement to carry out an impact assessment in terms of the information contained in this report. 10.2. There is also no requirement to undertake any consultation in terms of the information contained in this report. Paul Manning Executive Director of Finance and Corporate Resources 16 August 2022 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Finance and Corporate Resources Committee, 25 April 2018 Finance and Corporate Resources Committee, 19 September 2018 Finance and Corporate Resources Committee, 7 August 2019 Finance and Corporate Resources Committee, 19 August 2020 Finance and Corporate Resources Committee, 1 September 2021 147
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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, Head of Finance (Strategy) Ext: 5637 (Tel: 01698 455637) E-mail: jackie.taylor@southlanarkshire.gov.uk 148
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Finance and Corporate Resource Plan: Quarter 4 Progress Report 2021/2022 1. Purpose of Report 1.1. The purpose of the report is to: [purpose] provide the Finance and Corporate Resource Plan Quarter 4 Progress Report 2021/2022, for the period 1 April 2021 to 31 March 2022 [1purpose] 2. Recommendations 2.1. The Committee is asked to note the following recommendation(s):- [ (1) that the Finance and Corporate Resource Plan Quarter 4 Progress Report 2021/2022 as summarised in paragraph 5.2. and attached as Appendix 2 of this report, be noted; (2) that the key achievements made by the Resource to date, as detailed in paragraph 5.3. of this report, be noted; (3) that the areas for improvement and associated management actions as detailed in paragraph 5.4. of this report, be noted; 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 this report, be noted. 3. Background 3.1. The Finance and Corporate Resource Plan 2021/2022 was approved by the Executive Committee on 28 April 2021 and noted by FCR Committee at its meeting on 2 June 2021 and sets out the outcomes, measures and actions to be managed and delivered by the Resource for the financial year 2021/2022. 3.2. The Resource Plan follows the agreed corporate structure and style. The Plan is a key element of the Council’s performance management arrangements and provides details of the context within which the Resource operates and establishes actions and measures for the year ahead based on the Priorities set out in the Council Plan Connect 2017 to 2022. 3.3. Despite the easing of social distancing and other restrictions, the Council continues to face financial and other impacts resulting from Covid. At times during the pandemic a number of services had to be suspended or reduced due to Government advice, and the Council was also obliged to redirect resources so that it could deliver vital new services and supports for individuals, communities and businesses. There was an inevitable impact on performance in some areas, with some effects ongoing. 17 149
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4. Resource Objectives 2021/2022 4.1. The Resource has established a number of outcomes to support the delivery of the Connect Priorities in 2021/2022. These are detailed at Appendix 1. 5. Quarter 4 Progress Report 2021/2022 5.1. Progress against all Resource Plan measures is contained in the Quarter 4 Progress Report 2021/2022, attached as Appendix 2. This report has been produced from the Council’s performance management reporting system IMPROVe, and uses a traffic light format, with the following definition, to give a status report on each measure:- Status Definition Blue Project complete Green The timescale or target has been met as per expectations Amber There has been minor slippage against timescale or minor shortfall against target Red There has been major slippage against timescale or major shortfall against target Report later The information is not yet available to allow us to say whether the target has been reached or not. This will be reported when available Contextual Included for ‘information only’, to set performance information in context 5.2. Measures which are classified as ‘red’ are considered in detail at section 5.4. of this report. To ensure adequate scrutiny of performance across all Resources, the Council’s Performance and Review Scrutiny Forum may consider ‘red’ and/or ‘amber’ measures at a future meeting. The overall summary of progress to date is as follows and performance should be considered in the context of the impact of responding to Covid 19:- Status Measures Statistical Project Total % Blue N/A 14 14 27 % Green 14 13 27 52 % Amber 5 2 7 13 % Red 0 1 1 2 % Report later/Contextual 3 0 3 6 % Totals 22 30 52 100% (Data correct as at 31 May 2022) 5.3. Key achievements for 2021/2022, to date, are noted below:- 5.3.1. Connect Priority Promote sustainable and inclusive economic growth and tackle disadvantage Resource Outcome Achievement A people-centred approach to recovery is implemented to help individuals, communities, businesses and Following on from approval of a Community Wealth Building (CWB) Strategy in March 2021, a CWB Commission was established to drive forward CWB in South Lanarkshire. The first meeting of the Commission – which has representation from across the political spectrum and involves our Community Planning Partners (CPP) – took place on 31 August 2021. 150
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Connect Priority Promote sustainable and inclusive economic growth and tackle disadvantage the social and third sector thrive We processed the Scottish Government funded ‘Cost of Living’ award of £150 to the Council Tax accounts of 112,000 South Lanarkshire households to help mitigate the impact of the cost of living crisis. We are working with a range of external employers and are seeking innovative approaches to filling Council vacancies through a new employability delivery model that fast tracks a potential pool of suitable unemployed clients participating on employability programmes into Council job opportunities. This year we intend to develop and operate a bank staff system that will fully connect employability programmes with council job vacancies. Taxi and private hire car operators and drivers were significantly impacted during the pandemic. Further support funds were made available and so, in addition to the support grant applications and payments processed in 2021, the Council processed 2,759 support fund applications for operators and drivers with 2,113 payments made. Connect Priority Get it right for children and young people Resource Outcome Achievement No Resource Outcomes for this Priority Connect Priority: Improve health, care and wellbeing Resource Outcome Achievement No Resource Outcomes for this Priority Connect Priority Ensure communities are safe, strong and sustainable Resource Outcome Achievement Customers experience high quality and improving Council services The Council’s website was updated to comply with Web Accessibility legislation that became law on 23 September 2020, enhancing the customer experience and ensuring no action against the council by the Equalities Commissioner. Individuals and communities in South Lanarkshire are engaged and able to participate in decision-making processes The Council undertook its general services budget consultation process between December 2021 and January 2022 to allow feedback for Members prior to approving the council’s budget. The first Community Partnership in South Lanarkshire has been established in the Cambuslang and Rutherglen areas. Detailed legal support and advice was required to ensure full public consultation and engagement in the creation of 16 new nature reserves, adding to the existing one at Langlands Moss. 151
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5.3.2. In addition to working towards these Priorities, we recognise that the Council will continually aim to improve and ensure effective and efficient use of resources, and that business will be conducted with integrity and transparency and will operate to the highest standards. In order to monitor and report progress against these values, Resource outcomes have also been identified under the heading Delivering the Plan and achieving Best Value. Delivering the Plan and achieving Best Value Resource Outcome Achievement The council demonstrates high standards of governance and sound financial stewardship The 2022/2023 financial strategy was approved in June 2021. This paved the way for finalising a budget for members to approve on 23 February 2022, following receipt of the local government settlement. The Housing budget was also approved on 23 February, setting Council house rents and capital investment for the coming year. The General services capital budget for 2022/2023 was agreed at the same council meeting. The 2020/2021 financial accounts were finalised in line with the normal timetable, and following a successful external audit, a clean audit certificate was signed off on 17 November 2021. Support and advice continued to be provided by finance teams in relation to managing the ongoing impact and recovery from the pandemic during 2021/2022. Working in partnership with Scotland Excel, we are progressing with a review of procured spend under a Transformation project to identify potential efficiencies in Council expenditure. The workforce has the skills, flexibility and capacity to deliver the Council’s priorities. A system of bulk communications was developed using a database of personal email addresses so that South Lanarkshire Council and South Lanarkshire Leisure and Culture (SLLC) employees who do not have a Council/SLLC email address are included in important Covid and other mass communications. Personnel services teams have adapted processes and arrangements in response to Covid restrictions to enable Human Resources (HR) service delivery to be maintained and respond effectively to additional requests. Robust partnership working arrangements have been in place with Trade Unions to ensure services and employees supported to maintain a safe working environment. A graduate training programme has been developed for Procurement staff to grow internal talent given the wider pressures in this recruitment market. New Leadership programme and Management Development offerings now being delivered. Partnership working arrangement implemented with Angus Council and Perth and Kinross for cross sector delivery of Coaching training. 152
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Delivering the Plan and achieving Best Value Resource Outcome Achievement The professionalism and experience of Legal Services successfully concluded the acquisition of all land required, including a Compulsory Purchase Order (CPO), to ensure that the council completed the timely construction of the new Clyde Bridge at Pettinain. Training was delivered by Legal Services to assist Housing colleagues with their decision making and evidence gathering procedures following changes to evictions legislation. Digital and ICT service meet the needs of the council and its customers The Council achieved PSN cyber security certification A major milestone was achieved in the Caird datacentre exit project - all Almada Street computer systems were successfully migrated to external provider IT installations were completed for four Education new builds The Council’s Tessello Learning Management System (LMS) has successfully delivered online learning to Council staff 24 hours a day every day. Notably throughout the period of the pandemic this has been achieved while maintaining a service level of greater than 99%. A two year extension to this contract has been established resulting in an upgraded and improved platform. 5.4. Areas for improvement Measures that have been classified as ‘red’ (major slippage against timescale or shortfall against target) are noted below, together with the reason why, and the management action now being taken, where required:- Delivering the plan and achieving Best Value Resource Outcome: The workforce has the skills, flexibility and capacity to deliver the council’s Priorities Measure Comments/Progress Action by Manager (where applicable) Workforce Plans reconfigured and reported to committees by March 2022 Activity around workforce plan reporting was delayed due to an increase in Covid disruption over the winter period Workforce plan reports rescheduled to be complete September 2022. 5.5. Scrutiny of change in measure status A further analysis introduced to aid scrutiny of performance, is to highlight and explain all measures that have changed status from Quarter 2 to Quarter 4. On analysis of these, only six measures show a decline in performance, mainly due to the Covid pandemic. The remaining measures have shown an improvement in performance or are complete (13 measures). A list of all the measures falling into this category of further scrutiny is included at Appendix 3. 6. Employee Implications 6.1. The outcomes noted within the Resource Plan will inform the Service Action Plans, where applicable, and in turn the Performance Appraisal process for individual employees. 153
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7. Financial Implications 7.1. The outcomes within the Resource Plan are reflected in the respective annual Resource Revenue and Capital budgets and, longer term, within the framework of the council’s approved Financial Strategy. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no climate change or environmental implications as a result of this report. 8.2. The Resource Plan takes into account Resource responsibilities in relation to sustainable development and climate change. 9. Other Implications 9.1. Resource Plan actions are assessed as part of the Resource’s risk management arrangements and relevant issues have been added to the Resource Risk Register. 10. Equality Impact Assessment and Consultation Arrangements 10.1. Many of the actions detailed within the Resource Plan reflect ongoing strategies and policies which will be or have been the subject of consultation and equality impact assessment. Paul Manning Executive Director (Finance and Corporate Resources) 27 June 2022 Link(s) to Council Values/Priorities/Outcomes The Resource Plan has been structured upon the Vision, Values and Priorities in the Council Plan Connect 2017 to 2022 Previous References Finance and Corporate Resources Committee – 1 September 2021 Quarter 4 Progress Report 2020/2021 Finance and Corporate Resources Committee – 9 February 2022 – Quarter 2 Progress report 2021/2022 List of Background Papers Council Plan Connect 2017 to 2022 – endorsed by the Executive Committee on 8 November 2017 and approved by the full Council on 6 December 2017: mid-term review of Connect endorsed by the Executive Committee 24 June 2020 Finance and Corporate Resource Plan 2021/2022 – approved by the Executive Committee on 28 April 2021 and noted by FCR Committee at its meeting on 2 June 2021 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Tom Little (Head of Communications and Strategy) Ext: 4904 (Tel: 01698 454904) E-mail: tom.little@southlanarkshire.gov.uk 154
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Appendix 1 Finance and Corporate Resource Outcomes 2021/2022 Connect Priority Resource Outcomes Promote sustainable and inclusive economic growth and tackle disadvantage • A people-centred approach to recovery is implemented to help individuals, communities, businesses and the social and third sector thrive. Get it right for children and young people • No Resource Outcomes for this priority Improve health, care and wellbeing • No Resource Outcomes for this priority Ensure communities are safe, strong and sustainable • Individuals and communities in South Lanarkshire are engaged and able to participate in decision-making processes Delivering the Plan and achieving Best Value Resource Outcomes • Customers experience high quality and improving council services • The council demonstrates high standards of governance and sound financial stewardship • The workforce has the skills, flexibility and capacity to deliver the council’s priorities • Digital and ICT services meet the needs of the council and its customers 17 155
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IMPROVe - SLC Performance Management System Report printed on 31 May 15:57 Quarter 4 : April 2021 - March 2022 Finance and Corporate Resources Resource Plan (This represents the cumulative position to March 2022) Performance Report 2021-22 17 157
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IMPROVe - SLC Performance Management System Report printed on 31 May 15:57 Summary - number of measures green, amber and red under each Council Plan Priority / Theme Council Priority/ Theme Green Amber Red Report later / Contextual Total Promote sustainable and inclusive economic growth and tackle disadvantage 4 0 0 0 4 Get it right for children and young people 0 0 0 0 0 Improve health, care and wellbeing 0 0 0 0 0 Ensure communities are safe, strong and sustainable 0 0 0 0 0 Delivering the plan and achieving best value 10 5 0 3 18 Total 14 5 0 3 22 Page 1 158
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IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - Promote sustainable and inclusive economic growth and tackle disadvantage A people-centred approach to recovery is implemented to help individuals, communities, businesses and the social and third sector thrive. Performance Indicators Comments/ Progress Status 2019/20 2020/212018/19Target To Date -------- Last 3 Years ------------------- This Year ----------- Number of unemployed people supported via council-operated employability programmes We have supported 2118 people in total of which 1934 are unemployed and 184 are employed Green 1,000 1,934 2,135 1,322 1,348 Number of unemployed people gaining sustainable employment This one of the highest job outcome results seen in the past five years. Green 400 1,146 863 713 410 Number of unemployed people accessing further education or training Exceeded target Green 200 people 219 people 501 people 568 people 211 people % unemployed people assisted into work from council operated/funded employability programmes A significant increase in job outcomes Green 15.1% 59.3% 15.1% 16.0% 5.5% Delivering the plan and achieving best value Customers experience high quality and improving council services Performance Indicators Comments/ Progress Status 2019/20 2020/212018/19Target To Date -------- Last 3 Years ------------------- This Year ----------- Customer Service Centre - % of calls answered Target exceeded for the year with 93% of all calls answered against a target of 90%. Green 90.00% 93.00% ------ 91.00% 92.00% Customer Service Centre – average queue time Target missed by 38 seconds mainly due to ongoing Covid related issues and a 15% increase in calls compared with the previous year. New staff now in post and training commenced. Amber 120 158 ------ 94 93 Benefits administration – average processing times for new Housing Benefit and Council Tax Reduction claims Actual performance of 13 days for processing new claims achieved against target of 15 days. Green 15 days 13 days 16 days 15 days 13 days Housing Benefit and Council Tax Reduction – accuracy of processing Accuracy rate of 94.4% achieved against target of 93%. Green 93.0% 94.4% 93.7% 94.4% 92.6% Scottish Welfare Fund – average processing times for Crisis Grants 2021/22 average processing times for Crisis Grants equal to target. Green 2 days 2 days ------ 2 days 2 days Scottish Welfare Fund – average processing times for Community Care grants Substantial increase in Crisis Grant and Self Isolation Support Grant applications from December 2021 linked to Omicron Covid-19 variant had a detrimental impact on processing times for Community Care Grants, resulting in actual processing times being slightly above the target of 15 working days in 2021-22. Amber 15 days 16 days ------ 14 days 12 days Page 2 159
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IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - Delivering the plan and achieving best value The council demonstrates high standards of governance and sound financial stewardship Performance Indicators Comments/ Progress Status 2019/20 2020/212018/19Target To Date -------- Last 3 Years ------------------- This Year ----------- Pay invoices within the target of 30 days Target exceeded Green 90.0% 93.4% 92.1% 89.0% 90.9% The cost per dwelling of collecting Council Tax Cost of Collection of Council Tax has increased from £6.46 in 20/21 to £6.90 in 21/22, primarily due to increases in postages, legal costs and IT leasing recharges. Amber £6.50 £6.90 £6.47 £6.48 £6.46 Percentage of income due from Council Tax received by the end of the year - in year (incl water) The annual Council Tax collection target for 2021-22 was set at 94%. A Council Tax collection rate of 95.54% was achieved, ahead of target by 1.54% and ahead of comparable performance in 2020-21 by 0.65%. Green 94.00% 95.54% 96.20% 95.36% 94.89% % of Non Domestic rates income achieved A NDR collection rate of 97.5% was achieved, ahead of target by 1.5%. Green 96.0% 97.5% 98.1% 98.6% 96.8% Sundry Income collection An annual collection target of 92% was set for Sundry Debt in 2021-22 and a collection rate of 98.1% was achieved, ahead of target by 6.1%. Green 92.0% 98.1% 98.0% 98.0% 97.8% Liquor licensing processing target - 95% within service targets Slippage against target for the year due to Covid-related absences Amber 95.0% 92.0% 91.0% 99.0% 100.0% Registration processing target - 97% within service targets Slippage against target for the year due to Covid-related absences Amber 97.0% 93.0% 98.0% 99.0% 100.0% Citizenship processing target - 97% within service targets Target has been met. Green 97.0% 100.0% 99.0% 100.0% 100.0% Complaints processing target - 97% within service targets Target has been met. Green 97.0% 100.0% 100.0% 100.0% 100.0% Page 3 160
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IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan Performance Indicators Finance and Corporate Resources - Delivering the plan and achieving best value The workforce has the skills, flexibility and capacity to deliver the council’s Priorities Performance Indicators Comments/ Progress Status 2019/20 2020/212018/19Target To Date -------- Last 3 Years ------------------- This Year ----------- Number of accidents per 1,000 employees (council-wide) The total incidence rate for Q4 2021-22 is 40.9 this is an increase compared to the 2020-21 figure of 18.9. The increase is associated with a general increase in operational activities across the quarter as Covid-19 restrictions ease. The total (year to date) incidence rate per 1,000 employees for 2021-22 is 128.5 an increase compared to 2020-21 (72.2). In the main the increase can be attributed to two main elements. Firstly, an increase in reporting due to the introduction of online reporting and the work undertaken around the reporting of H&S incidents. Secondly a relaxation of COVID restrictions has resulted in an increase in operational activities etc. The council's online accident reporting system is employee led and an increase in reporting was expected as it is easier to use than the previous paper based system. The system was introduced across the Council in Q4 2019/20. The expected increase was tempered by the working arrangements for COVID however the increase we are seeing for this quarter (and year) overall was anticipated, although the degree of increase could not be forecasted. The accident incidence rate is used to measure a change in the organisation's own progress. Comparison at national level is not particularly easy as there is no "unitary authority" comparator. This measure can only be used primarily as an indicator of progress and not necessarily as a target, as there can be a large number of external factors that influence overall incident numbers, including severe weather and pandemics. Calculation is (number of incidents for quarter/(average employee numbers for quarter) * 1,000. Incidents are taken to be accidents, incidents, near miss events, physical violence, and verbal violence. Ave number of employees Q4 – 16217, Number of employee incidents that occurred in Q4 – 663 Contextual ------ 128.5 58.3 82.9 72.2 Sickness absence days per teacher This is a LGBF indicator. Current year results will not be published until February 2023 Report Later 6.1 days ------ 6.1 days 6.1 days 7.3 days Sickness absence days per employee (non teacher) This is a LGBF indicator. Current year results will not be published until February 2023 Report Later 11.9 days ------ 11.9 days 11.9 days 12.8 days Page 4 161
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Summary - number of measures complete, green, amber and red under each Council Plan Priority / Theme Council Priority/ Theme Complete Green Amber Red Report later Total Promote sustainable and inclusive economic growth and tackle disadvantage 3 5 0 0 0 8 Get it right for children and young people 0 0 0 0 0 0 Improve health, care and wellbeing 0 0 0 0 0 0 Ensure communities are safe, strong and sustainable 0 3 0 0 0 3 Delivering the plan and achieving best value 11 5 2 1 0 19 Total 14 13 2 1 0 30 Page 5 162
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IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - Ensure communities are safe, strong and sustainable Individuals and communities in South Lanarkshire are engaged and able to participate in decision-making processes Action Measures Comments/ Progress Status Increase routes for communities to Develop a bespoke locality planning partnership in each of the four localities CamGlen and Clydesdale areas established. Hamilton and EK under development. Green participate in in decision making and priority Identify community priorities and create a new Partnership Community Plan during 2021 Partnership plan writing well under way with draft due for final consultation in Q1 2022/23 Green setting Support communities and Resources in the roll out of a 1% mainstream participatory budgeting process Support provided to CER (Roads and Neighbourhood Services in particular) regarding the roll out of processes in excess of £5.5 million in 2021-22. Engagement with Housing and Education regarding their processes has also taken place. Green Promote sustainable and inclusive economic growth and tackle disadvantage A people-centred approach to recovery is implemented to help individuals, communities, businesses and the social and third sector thrive. Action Measures Comments/ Progress Status Develop a Community Wealth Building (CWB) Develop a CWB strategy for South Lanarkshire and seek approval from Elected Members by May 2021. A Community Wealth Building strategy was approved by Executive Committee on 10 March 2021. Complete strategy for South Lanarkshire Establish a Community Wellbeing Commission by October 2021 The Community Wealth Building Commission was approved as part of the CWB strategy on 10 March 2021. The terms of reference were confirmed at Executive Committee on 26 May 2021 and the first meeting of the Commission was held on 31 August 2021. Complete Engage with CPP partners on CWB principles and approach by September 2021 Partners discussed Community Wealth Building (CWB) during a development day for the Community Planning Partnership on 11 May 2021. Following on from this, a report to the CPP Board meeting on 24 June 2021 invited nominations from Partners to join the CWB Commission. Four Partner organisations joined the CWB Commission and attended the first meeting on 31 August and an update report was taken to the CPP Board meeting on 15 September 2021. Complete Page 6 163
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IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - Delivering the plan and achieving best value Customers experience high quality and improving council services Action Measures Comments/ Progress Status Lead on the renewal of strategic planning and work to further align the Conduct South Lanarkshire wide survey and community conversations to inform the new Plans by summer 2021 Survey completed with over 3 300 responses which have been analysed and used in the development of the new Council and Community plans Complete Council Plan with the Community Plan Engage with partners and hold priority-setting events to inform the new Plans by October 2021 Events held including community conversations and strategic events with leaders from partner organisations and information used in the development of the new Council and Community plans Complete Prepare a draft Council Plan and Community Plan for formal consultation by December 2021 An Elected Member's information session was held on 10 June 2021 to discuss the process and approach to the review of the Council Plan and the Community Plan. A further Elected Member session on 31 January 2022 updated Members on progress. Green The council demonstrates high standards of governance and sound financial stewardship Action Measures Comments/ Progress Status Lead financial planning and reporting for the council Financial Strategy to be agreed by June 2021 The Council's Revenue Budget Strategy for 2022/2023 was approved by Committee on 23 June 2021. Following consideration by the Budget Working Group, a final Budget was presented to members for approval on 23 February 2022. Complete Budget proposals to be considered by members by November 2021 Meetings with the Members' Budget Working Group took place between November 2021 to February 2022, where consideration was given to the Budget Strategy. Complete Budget agreed by March 2022 The 2022/2023 Budget was approved by Council on 23 February 2022. Complete Capital programme for 2022-23 to be agreed by March 2022 The 2022/2023 Capital Programme was approved by Council on 22 February 2022. Complete Monitor the financial impact of Covid Monitor and report periodically on the costs and financial plan around Covid costs and recovery - every 4 weeks The Council's 4 weekly reports to the Executive Committee include the cost of Covid. To 28 January 2022, the net cost was noted as £8.626m and was to be met from non-specific Covid funding available. This was reported to the 2 March 2022 Executive Committee. Complete Page 9 166
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IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - IMPROVe - SLC Performance Management System Report printed on Tuesday 31 May 2022 Resource Plan actions and measures Finance and Corporate Resources - Delivering the plan and achieving best value The workforce has the skills, flexibility and capacity to deliver the council's Priorities Action Measures Comments/ Progress Status Report on the Recovery Equality Impact Assessment (EQIA) measures to address inequality Included in our Mainstreaming Equalities report The mainstreaming report has been completed and published on the council website and the intranet. The outcomes detailed in the plan are monitored on an ongoing basis. Resources report on achievement of the equality outcomes as part of the annual equalities reporting provided to the Equal Opportunities Forum. F&C presented their annual report to the Equal Opportunities Forum on 23 Feb 2022. Green Adjust the Council Workforce Plan to match the changed environment Workforce Plans reconfigured and reported to committees by March 2022 Activity around workforce plan reporting delayed due to increase in Covid disruption over the winter. period. Resources reallocated to Covid response and workforce plan reports rescheduled to September 2022. Red Digital and ICT services meet the needs of the council and its customers Action Measures Comments/ Progress Status Take forward IT strategic developments Complete the rollout of agile working across SLC staff via rollout of Windows 10 laptops, Office 365 and Cisco softphones by September 2021 Rollout progressing, although some delays in delivery of new laptops which will extend the project to June 2022. Amber Implement approved actions from Year 2 of the SLC Digital Inclusion Strategy to support most deprived citizens to access benefits of being online Digital inclusion subgroup have delivered a range of projects and initiatives to improve digital inclusion across communities in South Lanarkshire. Complete Creation of new Digital Strategy to cover 2021-2024 and approval by September 2021 In progress with approvals rescheduled to June 2022. Amber Develop and deliver training plan to upskill IT staff in new technologies Training and development activities achieved to meet the needs of IT Services and the wider Council. Complete Complete migration of all computer systems and storage from Caird datacentre by December 2021 Completed on schedule. Fully migrated to Datavita and Caird Centre now closed down. Complete Page 10 167
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Appendix 3 FCR: Quarter 2 to Quarter 4 2021-22 - scrutiny of change in measure status Measure Q2 Status Q4 Status Q4 Comments Performance has declined from Q2 to Q4 Customer Service Centre – average queue time Green Amber Target missed by 38 seconds mainly due to ongoing Covid related issues and a 15% increase in calls compared with the previous year. New staff now in post and training commenced. Scottish Welfare Fund – average processing times for Community Care grants Green Amber Substantial increase in Crisis Grant and Self Isolation Support Grant applications from December 2021 linked to Omicron Covid-19 variant had a detrimental impact on processing times for Community Care Grants, resulting in actual processing times being slightly above the target of 15 working days in 2021-22 Liquor licensing processing target - 95% within service targets Green Amber Slippage against target for the year due to Covid-related absences Registration processing target - 97% within service targets Green Amber Slippage against target for the year due to Covid-related absences Workforce Plans reconfigured and reported to committees by March 2022 Green Red Activity around workforce plan reporting delayed due to increase in Covid disruption over the winter. period. Resources reallocated to Covid response and workforce plan reports rescheduled to Sept 2022 The cost per dwelling of collecting Council Tax Report later Amber Cost of Collection of Council Tax has increased from £6.46 in 2020-21 to £6.90 in 2021-22, primarily due to increases in postages, legal costs and IT leasing recharges. Performance has improved/completed from Q2 to Q4 Housing Benefit and Council Tax Reduction – accuracy of processing Amber Green Annual target achieved at the end of the year. Conduct South Lanarkshire wide survey and community conversations to inform the new Plans by summer 2021 Green Blue Survey completed with over 3,300 responses which have been analysed and used in the development of the new Council and Community plan Engage with partners and hold priority-setting events to inform the new Plans by October Green Blue Events held including community conversations and strategic events with leader partner organisations and information used in the development of the new Council and Community plans Financial Strategy to be agreed by June 2021 Green Blue The Council's Revenue Budget Strategy for 2022-23 was approved by Committee on 23 June 2021. Monitor and report periodically on the costs and financial plan around Covid costs and recovery - every 4 weeks Green Blue The Council's 4 weekly reports to the Executive Committee include the cost of Covid. To 28 January 2022, the net cost was noted as !8.626m 17 169
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Measure Q2 Status Q4 Status Q4 Comments and was to be met from non-specific Covid funding available. This was reported to the 2 March 2022 Executive Committee Develop and deliver training plan to upskill IT staff in new technologies Green Blue Training and development activities achieved to meet the needs of IT Services and the wider Council Complete migration of all computer systems and storage from Caird datacentre by December 2021 Green Blue Completed on schedule. Fully migrated to Datavita and Caird Centre now closed down. Budget proposals to be considered by members by November 2021 Report later Blue Meetings with the Members' Budget Working Group took place between November 2021 to February 2022, where consideration was given to the Budget Strategy Budget agreed by March 2022 Report later Blue The 2022-23 Budget was approved by Council on 23 February 2022 Capital programme for 2022-23 to be agreed by March 202 Report later Blue The 2022-23 Capital Programme was approved by Council on 22 February 2022 Implement approved actions from Year 2 of the SLC Digital Inclusion Strategy to support most deprived citizens to access benefits of being online Report later Blue Digital inclusion subgroup have delivered a range of projects and initiatives to improve digital inclusion across communities in South Lanarkshire % unemployed people assisted into work from council operated/ funded employability programmes Report later Green There was a significant increase in outcomes Adjust the current suite of employability programmes to operate in a Covid safe way and match the changed service need. Implement and report on the following by March 2022 Report later Green Adapting services to digital platforms is now integrated within employability delivery. The change has been developed over time where we now operate a hybrid of group, face to face and digital delivery 170
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Finance and Corporate Resource Plan 2022/2023 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] present the Finance and Corporate Resource Plan 2022-23 for consideration and monitoring [1purpose] 2. Recommendations 2.1. The Committee is asked to approve the following recommendation(s):- [ (1) that the Resource Plan 2022/2023, attached as Appendix 1, be noted; (2) that the Resource Plan 2022/2023 be uploaded onto the Council’s website following consideration by this Committee; and (3) that Progress Reports on the Resource Plan 2022/2023 be provided at Quarter 2 and Quarter 4 to future meetings of this Committee. 3. Background 3.1. The draft Resource Plans for 2022/2023 were prepared prior to the local government elections in May 2022, in line with the corporate Resource Planning guidance. Following the election and subsequent approval of the new Council Plan on 15 June 2022, the draft Resource Plans were reviewed and updated to take account of the new Priorities and Outcomes within Connect 2022 to 2027. 3.2. The Resource Plan is a key element of the Council’s performance management arrangements. It provides details of the context within which the Resource operates and establishes actions and measures for the year ahead based on the priorities set out in the Council Plan Connect 2022 to 2027. 3.3. The Resource Plans for all Resources were approved by Executive Committee on 24 August 2022, with a recommendation that the Plans be referred to Resource Committees for noting and performance monitoring at Quarter 2 and Quarter 4. 3.4. Performance management is a keystone of Best Value and ensures that the Council can demonstrate sound governance arrangements. The Resource Plan is one part of the Council’s framework for planning and budgeting and demonstrates how this leads to effective front line service delivery. 3.5. As part of this framework, the Resource Plan reflects the aspirations of the Council Plan and the Community Plan as well as being complemented by the details of individual Service, Business and other Plans. Ultimately, these details are included in the key work objectives of individual officers. This demonstrates the ‘Golden Thread’ of performance management which ensures a clear understanding of the Council’s vision, values, priorities and outcomes at all levels. 18 171
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3.6. The current format for performance reporting has been established since 2007 and is used for Executive Directors’ reports to the Chief Executive, Resource Management Teams and Resource Committees. The focus has been on reporting progress on Council priorities, statutory performance indicators, other key performance measures and high level Resource priorities. 3.7. In preparing the Plan, account has also been taken of the need to ensure a robust response to Risk Management and Control. Risks associated with delivery of the actions in this Resource Plan have been identified and evaluated and are listed in the Resource Risk Register. Where necessary, controls or further actions to mitigate these risks have been agreed. Such actions are tracked through the Resource Risk Control Plan which is kept under review by the Risk Sponsor for the Resource. 4. Resource Plan 2022/2023 4.1. The Resource Plan 2022/2023 is attached as Appendix 1 and is structured around the following headings:- 1. Introduction 2. Key areas for the year ahead 3. Resource outcomes 4. Measures and actions 5. Resourcing the Plan 4.2. Resource Outcomes 2022/2023 The Resource has established a number of outcomes to support the delivery of the Connect priorities in 2022/2023. To support these outcomes, the Resource has developed performance measures and an action plan which are set out in section 4 of the Resource Plan. A selection of these will be included in the Council Pan Connect Quarter 2 and Quarter 4 Progress Reports 2022/2023, with the rest being monitored and reported at Resource level. 4.3. Monitoring and reporting As part of the performance management arrangements, the Committee will receive a mid-year update of progress on the measures in the Resource Plan covering the period April 2022 to September 2022 (Quarter 2) as well as an end of year progress report covering the full year April 2022 to March 2023 (Quarter 4). 5. Employee Implications 5.1. The outcomes noted within the Resource Plan will inform the Service Action Plans, where applicable and, in turn, the Performance Appraisal process for individual employees. 6. Financial Implications 6.1. The outcomes within the Resource Plan are reflected in the respective Resource Revenue and Capital budgets and, longer term, within the framework of the Council’s approved Financial Strategy. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no climate change or environmental implications as a result of this report. 7.2. The Resource Plan takes into account Resource responsibilities in relation to sustainable development. 172
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8. Other Implications 8.1. Resource Plan actions are assessed as part of the Resource’s risk management arrangements and relevant issues have been added to the Resource Risk Register. 9. Equality Impact Assessment and Consultation Arrangements 9.1. Many of the actions detailed within the Resource Plan reflect ongoing strategies and policies which will be or have been the subject of consultation and equality impact assessment. Paul Manning Executive Director (Finance and Corporate Resources) 24 August 2022 Link(s) to Council Values/Priorities/Outcomes The Resource Plan has been structured upon the Vision, Values, Priorities and Outcomes in the Council Plan Connect 2022-27 Previous References Executive Committee, 24 August 2022 List of Background Papers Council Plan 2022-2027 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Tom Little (Head of Communications and Strategy) Ext: 4904 (Tel: 01698 454904) E-mail: tom.little@southlanarkshire.gov.uk 173
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Section Contents 1.0 Introduction 2.0 Key areas of focus for the year ahead 3.0 Resource outcomes 4.0 Measures and actions 5.0 Resourcing the Plan 176
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Section One – Introduction I am pleased to introduce our Resource Plan for 2022-23 which sets out outcomes and priorities for the coming year. The five services within Finance and Corporate Resources help to ensure that the council operates successfully in an increasingly complex and challenging environment, and although diverse, each service is essential to the running of the council and the delivery of its vision, values and priorities. Administration and Legal Services provides essential support for the core democratic and governance arrangements of the council as well as providing a full range of legal advice and support, managing electoral events and licensing and registration services to the public. Communications and Strategy provides accurate, timely information for employees and residents. The service is responsible for the council's publications, its websites, intranet and social media. It also co-ordinates all Media enquiries. The service incorporates the Research and Improvement Unit as well as the Community Engagement Team, which provides support to the Community Planning Board, and provides a single interface for community engagement including neighbourhood planning. Finance Services provides sound financial stewardship to ensure the council’s priorities are effectively funded and expenditure, including procurement, is appropriately monitored, controlled and reported. Finance Services is split between transactional activities including payables, procurement, risk management and insurance, revenues and benefits, customer services and development and money matters advice; and Strategy which includes budget strategy, budget monitoring and providing financial support to all Resources. Information Technology Services supports all council services through the maintenance of over 5,000 computers and servers running over 200 business applications across council Resources. This delivery is supported by council wide networks covering telephone, printing, mail and internet technologies. Personnel Services is responsible for delivery of the full spectrum of personnel policies and practices across the council. This includes employee learning and organisational development; consultation; and supporting unemployed people into jobs, training or further education. The service also manages payroll, health, safety and wellbeing and is responsible for the co-ordination and implementation of equality and diversity legislation, good practice, and advancing equality for all. The Resource is also responsible for Audit and Compliance Services, which provides assurance on the effectiveness of the council’s risk management, control and governance arrangements, as well as ensuring compliance with European grant award requirements. Paul Manning Executive Director Finance and Corporate Resources 177
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Section Two – Key areas of focus for the year ahead 2.0. Overview The Resource has identified the main challenges, risks and new developments which will have significant impact on the delivery of services in the coming year. These are outlined briefly below. 2.1. Covid 19- response and recovery Through the initial period of 2020-21, the Council responded to the Global Pandemic, ensuring that essential services could safely be delivered, and the most vulnerable members of our community were safe. The Council now moves onto the period where we return to full service delivery, where appropriate, and recover from the period of service disruption. This will include new ways of working. Finance and Corporate Resources will provide core support for services as they look to return to full capacity. This includes providing key financial advice, as well as the necessary advice and support around the workforce and their safety. The Resource will also support our Elected Members, ensuring their meetings run effectively, and they are provided with information to allow decisions to be taken on shaping service delivery going forwards. Covid19 has had a significant effect on the financial position of many families and therefore front-line services for communities and people are expected to continue to provide valuable support as the effects of the pandemic carry forward into 2022-23 this includes the provision of financial advice and support to resident. 2.2. Deliver effective Employability Services to support Economic Recovery Covid19 has had a significant impact on the economy and as a result there has been a substantial increase in unemployment. There are new groups of unemployed people seeking support, different from those groups the original employability programmes were designed for. Service delivery now needs to be redesigned to be delivered in a Covid19 safe way, with a move away from face to face support. In addition, programmes will have to address new need in addition to offering enhanced assistance to those traditionally supported in this area. Opportunities for employment and work placements are likely to be significantly reduced, so creative approaches to the provision of occupational experiences and effective use of funding streams to maximise support are required. The current economic picture is mixed, with some areas of the economy struggling to fill vacancies and others recovering more slowly. The impact of Brexit is also having an effect on the supply of skilled and qualified labour. The council is working closely with its partners to make effective use of funding streams to support those most in need of employability support, and to develop programmes which meet demands and anticipated workforce and labour market shortages. 2.3. Financial Strategy The Resource leads on financial planning and reporting for the Council. Over recent years, the challenges for Local Government finance have continued, around balancing pressures of meeting additional demand and costs of delivering services. A key part of the financial management process is the development of Financial Strategies, developing financial plans which deliver the council’s visions, values and priorities, while recognising and responding to financial constraints. Financial strategies are prepared annually and approved by members leading to the final approval of annual budgets. This process includes consideration and approval of efficiency and savings options and considers requirements for investment. One of the key features for future strategies will be the output from our programme of Transformational Reviews, which is covered at section 2.4. The strategic approach to financial planning also includes planning for Capital programmes of work. 178
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The costs of responding to, and recovering from, the Covid19 pandemic added pressures to the council’s budgets in 2020-21 and is expected to do so into 2022-23 and beyond. 2.4. Develop a programme of Service Reviews supporting Service Recovery In Service recovery plans, change is explicit, and this needs to be reflected in the guidance to support our revised Transformational Review programme. It is important that managers and leaders are equipped to lead transformation, and that review and improvement processes are adopted and welcomed. Through the recovery process, there is the opportunity to shape Council services which are responsive, flexible and fit for purpose in our new environment. A transparent process which is understood by all involved, the early involvement of those affected, and honest evaluation of options will be key features of our approach. 2.5. Involving Our Communities Working alongside our communities to create and deliver new council and Community plans has given people in South Lanarkshire a stronger voice in what matters to them and how we should shape our services going forward. We want to maintain the momentum around this work by continuing to develop sustainable structures which involve local people effectively in influencing decisions which have an impact upon them and their lives and supporting them to take positive action themselves to improve outcomes. Our ambition is that all communities in South Lanarkshire have the opportunity to identify their local priorities and can see these reflected in the way we engage and work with them. Supporting community groups to represent the views of their neighbours and to work together to address issues that matter to them will be a key feature of the delivery of our new plans. 2.6. Strategic digital developments The Council is investing heavily in digital technologies to improve the delivery of services to citizens, streamline and standardise business processes, and improve collaboration and partnership working (for example Health and Social Care Partnership - HSCP). This investment is targeted on delivering significant productivity improvements and cost savings. Information Technology (IT) has a major part to play in digital transformation by implementing and supporting new technologies at pace and at scale. IT projects will continue to be prioritised based upon need, business case and alignment with Council Priorities. Partnerships with Local Government Digital Office, NHS Lanarkshire, Scottish Government and key suppliers will be leveraged to share best practices and accelerate rollout and adoption of new digital solutions. IT will continue to maintain high levels of availability of IT estate and high levels of support to officers and elected members. Key IT activities will include completing the rollout of agile working for council staff, replacement of legacy business applications (for example Housing & Property, Social Work) and the rollout of digital connectivity solutions to support digital inclusion. 2.7. Oracle replacement As part of the council’s transformation of services, the current Oracle system (People Connect/HRMS, FMS) will be migrated to Fusion, Oracle’s cloud based solution. Oracle Fusion will provide a modern platform for all HR, Payroll and Finance functions and benefit users across the whole council. In addition to delivering significant improvements to business processes, the new system will support agile working, employee self-service and engagement as well as greater levels 179
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of automation and improved management information. Finance processes will be streamlined with improved spend control. This migration project will involve a major investment both in terms of finance and staff time and will provide a platform for future service improvements and efficiencies. 2.8. Embed Equalities and Workforce Planning in Recovery Process Current research and analysis of data indicates that Covid19 is likely to adversely impact specific groups in our society more than others. Our Equality Impact Assessment (EQIA) has identified similar issues, namely the disproportionate effect on older people, women, children and people with disabilities, and people from Black and Minority ethnic backgrounds. In addition, the full socio-economic impact of lockdown as a result of Covid19 has not yet become apparent, although it is anticipated that there will be greater impact on those with low skills, low incomes as well as those who are 16-24 years of age and those who are over 50 years of age. There have been significant changes to our own council’s ways of working and how the workforce carries out service delivery. Increasing use of technology and working from home options have changed service delivery operations and how teams work together. Consultation with service users, members of the public and employees is needed in order to ensure that performance is maintained, and people’s priority needs are met. Flexibility in our approach to work and employees will be needed to accommodate the possibility of further local lockdowns, increased savings requirements, and the need to be efficient and responsive without creating disadvantage. Our recovery plans need to take account of both fair work and fair service delivery to our communities. The Council published its Mainstreaming Equalities Report in 2021, to meet its statutory requirements setting out our performance in relation to the Public Sector Equalities Duties and our plans for the future. These plans include a focus on our recruitment and retention practices, our support for groups who are digitally excluded, and have been impacted adversely by Covid19. New programmes to support employment and training opportunities for care experienced young people, those young people with additional support needs, and those with disabilities, are underway. 2.9. Renewing corporate planning Post-Covid, there is a need to look afresh at the council’s strategic planning and reporting, to ensure that key plans are focused on the topics that matter most. The new Council Plan which will come into effect in 2022 will be closely aligned to the new Community Plan, with both documents articulating a common vision and set of outcomes to be achieved over the next 5 years. Work will be undertaken in 2022-23 to review guidance, templates and performance reporting arrangements to support the new vision and priorities set out in the Council and Community Plans and on preparations for the new Council following the Local Government Election in May 2022. Key preparations will include a review of procedural documentation and the decision-making structure, arrangements for members induction and training, members ICT provision and the first statutory meeting of the Council. 2.10. Community Wealth Building Community Wealth Building (CWB) is an alternative approach to traditional economic development, which seeks to develop resilient, inclusive local economies, with more local employment and a larger and more diverse business base. There is growing interest in CWB across the UK and especially in Scotland, where it has been endorsed by the Scottish Government as an important plank of how Scotland can deliver on its wellbeing economy aspirations. Finance and Corporate Resources will lead on the implementation of our Community Wealth Building strategy, working with Elected Members, partners and stakeholders to realise the ambitions of the strategy through 2022 and beyond. 180
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Section Three – Resource Outcomes 3.1. Resource Outcomes Finance and Corporate Resources has established the following Resource outcomes to support the delivery of Connect Outcomes in 2022-23. Connect Outcomes Resource Outcomes Communities and Environment • Individuals and communities in South Lanarkshire are engaged and able to participate in decision-making processes Education and Learning • No Resource Objectives for this Outcome Health and Wellbeing • No Resource Objectives for this Outcome Children and Young People • No Resource Objectives for this Outcome Housing and Land • No Resource Objectives for this Outcome Our Economy • A people-centred approach to recovery is implemented to help individuals, communities, businesses and the social and third sector thrive 3.2. Delivering the Plan and achieving Best Value In working towards the six Outcomes, the council aims to continually improve and ensure effective and efficient use of resources, and our business will be conducted with integrity, transparency and will operate to the highest standards. Finance and Corporate Resources has established the following Resource outcomes to support Delivering the Plan and achieving Best Value. Delivering the Plan and achieving Best Value • The council demonstrates high standards of governance and sound financial stewardship • Customers experience high quality and improving council services • The workforce has the skills, flexibility and capacity to deliver the council’s priorities • Digital and ICT services meet the needs of the council and its customers 181
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Section Four – Measures and actions 4.0. Performance measures and action plan This section of the Resource Plan is divided into two parts: part (a) sets out our main performance measures against our outcomes; and part (b) describes the key actions we will take in the coming year to respond to the challenges ahead and improve services and outcomes. 4.a. How we will measure our performance The impact of Covid19 continues to have a significant effect on performance for some services. The table below shows our key performance measures, with data for the last 2 years and the target for 2022-23. To provide additional context for the targets, an indication of pre-Covid performance is provided within the notes column where possible. The impact of the pandemic may mean that some targets are below the level of performance seen pre- Covid. Resource Outcome: A people-centred approach to recovery is implemented to help individuals, communities, businesses and the social and third sector thrive. Measure 2020-21 2021-22 2022-23 Target Links Service Notes 1. Number of unemployed people supported via council-operated employability programmes (local target) 1,348 people 1,934 people 1,200 people C06.01 Personnel Given the current labour market the pool of unemployed people is lower than it has been in the past, and those who are eligible have multiple barriers and require more intensive, longer- term support. In essence we are working longer with a smaller number of individuals 2. Number of unemployed people gaining sustainable employment (local target) 410 people 1,146 people 600 people C06.13 Personnel 3. Number of unemployed people accessing further education or training (local target) 211 people 219 people 200 people C06.02 Personnel Resource Outcome: The council demonstrates high standards of governance and sound financial stewardship Measure 2020-21 2021-22 2022-23 Target Links Service Notes 4. Pay invoices within the target of 28 days (local target) 90.9% 93.4% 90.0% 07.02 LGBF Finance (Trans) 5. Percentage of income due from Council Tax received by the end of the year - in year (incl water) (local target) 94.9% 95.5% 95.5% 07.02 Finance (Trans) 6. % of Non-Domestic rates 98.6% 97.5% 97.5% 07.02 Finance 182
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income achieved (local target) (Trans) 7. Sundry Income collection (local target) 97.8% 98.1% 97.0% 07.02 Finance (Trans) 8. Liquor licensing processing target - 97% within service targets (local target) 100% 92% 97% 07.01 Admin and Legal This year’s targets are realistic, based on the service’s experience, anticipated workload and desire to drive continuous improvements 9. Registration processing target - 97% within service targets (local target) 100% 93% 97% 07.01 Admin and Legal 10. Citizenship processing target - 97% within service targets (local target) 100% 100% 97% 07.01 Admin and Legal 11. Complaints processing target - 97% within service targets (local target) 100% 100% 97% 07.01 Admin and Legal Resource Outcome: Customers experience high quality and improving council services Measure 2020-21 2021-22 2022-23 Target Links Service Notes 12. Customer Service Centre - % of calls answered (local target) 92% 93% 90% 07.01 Finance (Trans) 13. Customer Service Centre – average queue time (local target) 93 seconds 158 seconds 120 seconds 07.01 Finance (Trans) 14. Benefits administration – average processing times for new Housing Benefit and Council Tax Reduction claims (local target) 13 days 13 days 14 days 07.01 Finance (Trans) 15. Housing Benefit and Council Tax Reduction – accuracy of processing (local target) 92.6% 94.4% 93.5% 07.01 LGBF Finance (Trans) 16. Scottish Welfare Fund – average processing times for Crisis Grants (National target) 2 days 2 days 2 days 07.01 Finance (Trans) 17. Scottish Welfare Fund – average processing times for Community Care grants (National target) 12 days 16 days 15 days 07.01 Finance (Trans) 183
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4.b. What actions we will take Resource Outcome: Individuals and communities in South Lanarkshire are engaged and able to participate in decision-making processes Action Steps we will take to deliver our actions Links Service 1. Increase routes for communities to participate in decision making and priority setting Monitor and develop the bespoke locality planning partnership in each of the four localities C01.01 Community Engagement Team Develop a comprehensive set of neighbourhood planning structures across all identified priority communities in South Lanarkshire C01.01 Community Engagement Team Support communities and Resources in the roll out of a 1% mainstream participatory budgeting process C01.01 Community Engagement Team Resource Outcome: A people-centred approach to recovery is implemented to help individuals, communities, businesses and the social and third sector thrive. Action Steps we will take to deliver our actions Links Service 2. Progress the Community Wealth Building (CWB) strategy for South Lanarkshire Implement a programme of development sessions for the CWB Commission to widen the scope of the strategy by March 2023. 06.05 Comms and Strategy Establish a monitoring and reporting framework for the CWB action plan by the end of April 2022. 3. Deliver effective Employability Services to support Economic Recovery Deliver the Young Persons Guarantee Programme. A guarantee to young people aged 16-24 to support and progress them into fair work opportunities, training or further education and volunteering. C06.10 Personnel Kickstart Programme – support DWP flag ship programme as the largest employer in the area providing fair work opportunities for 50 young people to work within the council in various occupations. C06.10 Support Modern Apprentices to enter fair work opportunities within the council ranging from care, admin and craft occupations. C06.10 Deliver targeted recruitment programmes to support the local jobs market addressing skills shortages such as HGV Drivers, Personal Carers, Customer Service etc. C06.10 Deliver targeted employer recruitment incentives to support those aged 25 plus enter and sustain fair work opportunities and support parents and families with complex barriers to employment. C06.10 Resource Outcome: The council demonstrates high standards of governance and sound financial stewardship Action Steps we will take to deliver our actions Links Service 4. Lead financial planning and reporting for the council Financial Strategy to be agreed by June 2022 07.02 Finance (Strategy) Budget proposals to be considered by members by December 2022 07.02 Finance (Strategy) 184
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Budget agreed by March 2023 07.02 Finance (Strategy) Capital programme for 2023-24 to be agreed by March 2023 07.02 Finance (Strategy) 5. Compliance with internal audit standards Undertake an external assessment of Internal Audit to provide assurance that the function continues to operate in compliance with the Public Sector Internal Audit Standards. 07.02 Internal Audit Resource Outcome: Customers experience high quality and improving council services Action Steps we will take to deliver our actions Links Service 6. Monitor the progress of transformation projects through reporting framework to CMT Evidence of reporting to CMT of progress of all transformational projects 07.01 Personnel Resource Outcome: Customers experience high quality and improving council services Action Steps we will take to deliver our actions Links Service 7. Deliver more convenient and accessible forms of customer contact Increase the availability and use of online forms and streamline customer contact processes 07.01 Finance (Trans) New digital contact methods will be explored to improve contact channels 07.01 Finance (Trans) Relaunch myaccount to promote customer self- service options for a range of Council Tax activity such as viewing account balance, making payments, and applying for discounts and exemptions 07.01 Finance (Trans) 8. Lead on the renewal of strategic planning and work to further align the Council Plan with the Community Plan Finalise the new Community Partnership Plan (CPP) by June 2022 07.01 Comms and Strategy Promote the new CPP plan across South Lanarkshire throughout 2022 Develop a comprehensive monitoring process for CPP actions Submit new Council Plan for approval by July 2022. Resource Outcome: Digital and ICT services meet the needs of the council and its customers Action Steps we will take to deliver our actions Links Service 9. Take forward IT strategic developments Migrate to new Integrated Housing and Property Management system by November 2022 07.04 IT Implement approved actions from Year 3 of the SLC Digital Inclusion Strategy to support most deprived citizens to access benefits of being online 07.04 IT Complete procurement exercise to identify partner to meet SLC Digital Connectivity requirements C07.04 IT Develop and deliver training plan to upskill IT staff in new technologies 07.04 IT 185
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Complete first phase of migration to Oracle Cloud Fusion system by February 2023 C07.04 IT Resource Outcome: The workforce has the skills, flexibility and capacity to deliver the council’s Priorities Action Steps we will take to deliver our actions Links Service 10. Adjust the Council Workforce Plan to match the changed environment Resource Workforce Plans updated taking account recovery from COVID and set out requirements moving forward. These will be used to configure the Council Workforce Plan and will reported to Committees by September 2022 C07.03 Personnel 186
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Section Five – Resourcing the Plan 5.0. Introduction In this section we consider the resources needed to implement our plan, including funding and staffing. 5.1. Revenue Budget 2022-23 The Resource has a Net Revenue Budget of £41.029 million for 2022-23. The table below allocates this budget across the services: NET Budget by Service 2022-23 Detail £ million % Finance Services (Transactions) 18.747 45.7 Finance Services (Strategy) 2.023 4.9 Information Technology Services 5.095 12.4 Administration and Legal Services 4.113 10.0 Communications and Strategy (inc Community and Engagement and Central Research) 3.473 8.5 Personnel Services 7.223 17.6 Audit and Compliance 0.355 0.9 Total 41.029 100 5.2. Capital Budget 2022-23 The following capital budget of £2.444 million is allocated to the Resource for 2022-23: Capital Programme 2022-23 Project £ million IT Infrastructure – Business As Usual 0.450 Digital Transformation Review Fund 0.200 Oracle Fusion 1.794 Total 2.444 187
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5.3. Resource Employees Finance and Corporate Resources has 938 employees as at March 2022. We support these employees to deliver their duties through a range of policies including personal appraisal and a robust training framework. Service Number of employees Finance Services (Transactions) 381 Finance Services (Strategy) 60 Information Technology Services 114 Administration and Legal Services 100 Communications and Strategy 42 Personnel Services 227 Other (Audit and Compliance) 14 Total 938 188
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Annual Procurement Report 2021/2022 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide details of the Annual Procurement Report for 2021/2022 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the Annual Procurement Report 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. The Act states that the annual report must include information on:- regulated procurement activity regulated procurement strategy and compliance community Benefits supported businesses future planning any other relevant information 4. Procurement Annual Report 4.1. The Procurement Annual Report for 2021/2022 is included in Appendix 1. 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 £2 million for works contracts. 4.2.2. The Council’s total level of procured expenditure for the period of the report was £384 million. Appendix 1 of the annual report provides details of 164 contract awards (over £50,000) with a total value of £664 million. This contract value encompasses several high value long term awards for Procured Service Arrangements, including: Educational Services (£42 million), Adult Supported Living (£243 million) and Early Learning and Childcare (£143 million) PSAs: where contract value is over the full 10 or 15 year term. 19 189
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4.3. Section 3: Regulated Procurement Activity 4.3.1. The Council’s Procurement Strategy 2020 to 2023 was approved by the Executive Committee in May 2020. The Strategy included an action plan to ensure continuous improvement across procurement activity. 4.3.2. A summary of the Council’s strategic objectives is included as Appendix 2 and the Annual Report highlights actions completed during 2021/2022, including implementation of Fair Work First, monitoring EU Exit implications and responding to supply chain and pricing issues. Procurement also supported the “spend” pillar under the Council’s Community Wealth Building Strategy, delivering changes to Quick Quote arrangements for works contracts under £2 million to improve the participation of local enterprises. 4.4 Section 4: Community Wealth Building and Community Benefits 4.4.1. This section of the annual report has been further developed to focus on procurement outcomes from the Community Wealth Building Strategy, including increased levels of local spend and changes to Standing Orders on Contracts to improve local engagement in tenders. 4.4.2. The Council’s approach to secure Community Benefits through procurement is outlined in the Annual Report, with descriptions of suitable benefits which will be considered in all regulated tenders, including employability and local supply chains. A summary of the contracts attracting Community Benefits is provided with examples of community benefits secured for Jackton Primary School construction and the Council’s Buildings’ Waste contract. 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 implementation of Fair Work First guidance, completion of the Prioritisation Framework (summarised in the report) and use of the sustainability test to embed sustainability measures in a forthcoming waste 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 social 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 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 two 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. 4.7. 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 2021/2022. 190
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4.8. Procurement Performance Information and SME Engagement 4.8.1 Spend in the South Lanarkshire area (for all contractors, including SMEs) increased to £62 million, increasing from 17% in 2020/2021 to 18% in 2021/2022 as a percentage of core trade spend. This restored local spend to pre COVID-19 levels following restricted activity in construction, furniture and transport in the previous year. 4.8.2. A geographical analysis of spend outwith the local area is included in the annual procurement report and quantifies spend for the wider Lanarkshire area (35%), Glasgow City Region (49%) and across Scotland (64%): all of these areas having increased since 2020/2021. More spend is being retained within the local area, with spend with South Lanarkshire enterprises exceeding spend with North Lanarkshire suppliers for the first time. 4.8.3. 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. 4.8.4. An analysis of the impact on local spend through collaborative arrangements is also included in the annual report, noting that although while £5 million (13%) of South Lanarkshire Council spend via Scotland Excel frameworks is with local enterprises, £42 million of spend is directed to South Lanarkshire companies from other local authorities, an increase from £40 million in 2020/2021 attributable to post COVID-19 recovery and spend with The Furnishing Service. Similarly, Council spend with Hub South West resulted in local sub-contracted spend of £7.2 million (40% of spend from Council projects) but Hub South West’s total sub-contracted spend in South Lanarkshire was £76 million, indicating a much wider economic benefit from collaboration. 5. Employee Implications 5.1. The forward programme presents a significant number of projects for delivery by the Procurement Team: resource requirements will continue to be monitored to ensure the plan is delivered and risks are minimised. 6. Financial Implications 6.1. None. 7. Other Implications 7.1. None. 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. Paul Manning Executive Director (Finance and Corporate Resources) 17 August 2022 191
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Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Ambitious, self-aware and improving Previous References Procurement Strategy 2020 to 2023, Executive Committee, 13 May 2020 Annual Procurement Report 2020/2021, Finance and Corporate Resources Committee, 1 September 2021 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 192
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Finance and Corporate Resources Executive Director Paul Manning Annual Procurement Report 2021/2022 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 19 193
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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 194
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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 2021 to 31 March 2022, as required by the Procurement Reform (Scotland) Act 2014. During this period, the Council’s total procured expenditure was £384m. 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 Much of 2021 continued to be dominated by post pandemic market conditions, which impacted on supply chains and inflation. The Procurement Service continued to support Council services through this challenging period and achievements included: • Compliance: Review of the Procurement Strategy 2020-2023 for new financial year • Sustainability: Progress in embedding the Scottish Procurement Sustainable Toolkit, including completion of the Council’s Prioritisation Framework • Community Wealth Building: Focus on the Council’s Spend pillar to improve commercial engagement with local companies, with an increase of 1% for procured spend within the South Lanarkshire area. 195
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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 164 contracts over £50,000 in 2021/2022, with a total award value of £664m, as listed in Appendix 1. This contract value encompasses several high value long term awards for Procured Service Arrangements, including: Educational Services (£42m), Adult Supported Living (£243m) and Early Learning and Childcare (£143m) PSAs: where contract value is over the full 10 or 15 year term . 196
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3. Regulated Procurement Compliance The Procurement Reform (Scotland) Act 2014 requires all contracting authorities to publish a Procurement Strategy. 2021/2022 was the mid-point in our Procurement Strategy 2020-2023, which aims to promote best practice across all procurement activity, while supporting the Council’s priorities set out in the strategic plan “Connect”. The procurement strategy was 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 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 2021/2022 included: • Implementation of new Fair Work First arrangements, including the Scottish Governments new seven priorities to measure Fair Work • Continuing to support the Council’s post pandemic response, including responding to challenging market conditions, including inflationary pressures and supply chain disruption • Working with Sustainable Development Scotland to improve the Council’s approach to sustainable procurement which included completion of the Prioritisation framework to focus sustainable outcomes across economy, society and environment. • Supporting the local spend pillar under the Council’s Community Wealth Building Strategy, delivering changes to Quick Quote arrangements for works contracts under £2m to improve the participation of local enterprises. Procurement Compliance 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 reports for the authorisation of awards to the Council’s Committee structure. The Council also has a review structure in place to consider high risk procurements. This provides reasonable assurance that all regulated procurements were materially compliant with the strategy. The Council monitors contractual compliance, with 98% of 2021/2022 spend over £50,000 with contracted suppliers. A quarterly review process is in place to identify, and resolve spend with non-contracted suppliers. 197
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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 five Transformational projects led by the Corporate Management Team. This review, supported by Scotland Excel, sets out 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. The review commenced in October 2021 and is anticipated to continue for two years. 198
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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 2022/2023 included: • Improvement in spend with local enterprises, which increased from 17% to 18% and represented £62m invested in the local economy • Progressing changes to the Council’s Standing Orders on Contracts to aim for four out of five bidders for Quick Quotes to be locally based, where available • Introduction of Quick Quote for Works up to £2m to improve the engagement of local enterprises in Council tenders • Participation in local supplier engagement events with the Supplier Development Programme, including a joint Meet the Real Buyer event with North Lanarkshire Council in November 2021 and a Quick Quote webinar in February 2022. 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 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. Of the 164 contracts awarded during the reporting period, 90 were derived from either national or local Frameworks where benefits were allocated within the framework. Of the remaining 74 awards, 63 suppliers offered bespoke Community Benefit clauses, including: 199
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• Jackton Primary School: Hub SouthWest – Award Value £14.9m The following community benefits were included in this contract for a new build primary school in Jackton: Community Benefit Committed Apprenticeships 2 Employment 3 Work experience 6 Vocational training / qualifications 3 Supply chain development 2 Financial support – community project 1 Non-financial support – community project 1 • Buildings Waste Contract: Biffa – Award Value £4.4m The following community benefits were included in this contract for Council buildings waste: Community Benefit Committed Employment placements 5 Young work placements 5 Educational activity 10 Mentoring opportunities 5 200
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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 • Objective, Strategy and Communications: sustainable procurement duty embedded in Procurement Strategy • Process: using prioritisation and sustainable toolkits to focus on outcomes at category and contract level • Stakeholders: improved engagement for stakeholders • Monitoring and Reporting: on sustainable procurement outcomes 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 • 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 201
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Examples of good sustainable practice this year include: • Implementation of Scottish Government’s new Fair Work First principles, focusing on seven key priorities • Ensuring Real Living Wage paid in social care contracts, which accounts for £108m (27%) of council spend. Adult Social Care contracts were subject to two uplifts in 2021 and all providers are compliant with increased living wage levels. • Working with Sustainable Procurement Scotland to embed the Sustainable Procurement Tools, including completion of the Prioritisation Framework to identify future priorities at category level. • Completion of the sustainability test to identify key sustainability measures in the forthcoming Household Waste Recycling 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 2021/2022, the Council’s spend with registered charities totalled £32m and we continued to support Supported Business and Social Enterprises. Key engagement with Supported Businesses and Social Enterprises in 2021/2022 included: Royal British Legion: Supported Business The Council awarded a new contract to Scotland’s Bravest Manufacturing Company for road signage in March 2022, with an estimated value of £0.162m over five years. 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 achieve the Scottish Government’s period poverty targets and the Council’s spend in 2021/2022 was £0.217m. Hey Girls also subcontract their distribution contract to The Haven, a supported business based in Falkirk. 202
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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: • Adult and Children’s social care services • Early Learning and childcare • Housing and property maintenance • Procurement of fleet and vehicles • Waste recycling and disposal 203
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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 South Lanarkshire area) and SMEs (small and medium enterprises). The Council has a consistently high level of engagement with SMEs overall, with 83% of Council contracts awarded to SMEs in 2021/2022, an improvement from 75% in 2020/2021. Local and SME spend The Council’s local spend with South Lanarkshire enterprises (including SMEs) increased by 1% to 18% in 2021/2022, representing £62m of total spend within the South Lanarkshire area. Spend with SMEs increased by 7% and 4% for South Lanarkshire based SMEs. Our actions around the Community Wealth Building Strategy will aim to continuously improve local spend levels in the future. Indicator 2019/20 2020/21 2021/22 Total procured spend £372m £393m £384m Core Trade spend £328m £347m £345m Core spend in South Lanarkshire area 18% 17% 18% Core spend with South Lanarkshire SMEs 13% 12% 16% Core spend with SMEs 42% 43% 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 2021/2022 totalled £17.6m, with £7.2m (40%) being subcontracted to South Lanarkshire based companies. However, in total, Hub South West’s sub-contracted spend to South Lanarkshire companies totalled £76m, which include spend on all Hub projects: indicating 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 is provided below: although 18% of our spend is within South Lanarkshire, 35% of spend was within the wider Lanarkshire area and 49% within Glasgow City Region. 64% of our total spend is in Scotland. 204
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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 2021/2022. This year, the Council’s spend through Scotland Excel frameworks totalled £39m, of which £5m (13%) was spent with local suppliers. However, these collaborative frameworks also generated £42m of spend with South Lanarkshire based suppliers by other local authorities, of which 94% 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 93% of invoices meeting this standard in 2021/2022. 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 2021/2022, 65,825 invoices (26%) were paid using the e-invoicing solution. 205
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7.1. Appendix 1 7.2. Regulated Procurement Activity 2021/2022 Award date Contracted Supplier Contract Name Start Date End Date Exten- sion date Value (£) 01/04/21 CHARGEMASTER LTD Installation of Electric Vehicle Charging Points 01/04/21 30/10/21 - 245,458 01/04/21 VARIOUS SUPPLIERS NCHC - Care Home Provision 01/04/21 31/03/22 30/09/22 38,689,498 09/04/21 EFFECTIVE VISUAL MARKETING LIMITED Supply and Delivery and Acrylic Screens for Scottish Parliamentary Election 09/04/21 30/04/21 - 86,746 14/04/21 FUJITSU SERVICES ConSol Annual Maintenance and Technical Support 01/04/21 31/03/22 31/03/23 362,883 14/04/21 JCJ DEMOLITION & CONSTRUCTION LTD SLC Wide Demolition Contract 2021/2022 10/05/21 10/04/22 - 268,217 16/04/21 THE FURNISHING SERVICE LTD Supply and Delivery of Domestic Furniture and Furnishings 01/04/21 31/03/25 - 12,000,000 20/04/21 LANDSCAPES & CONTRACTS LTD Braxfield Terrace, Lanark – Upgrade Drying Green & Associated Boundary Wall 01/06/21 31/08/21 - 97,256 21/04/21 THE COMPOST BAG CO SCOTLAND LTD Supply and Delivery of Compostable Food Waste Liners 01/04/21 31/03/22 31/03/23 194,400 22/04/21 P F CUSACK (TOOLS SUPPLIES) LTD Supply and Delivery of Temporary Signs 01/05/21 30/04/24 30/04/26 100,000 23/04/21 ECOSSE SPORTS LTD EC3 Engineering and Construction Short Contract for Eastfield Lifestyles 3G Pitch refurbishment 01/05/21 31/08/21 - 229,744 26/04/21 PARKS MOTOR GROUP Supply and delivery of Light Vehicles 01/04/20 31/03/21 - 713,177 26/04/21 A M PHILLIP TRUCK- TECH LTD, IMPERIAL COMMERCIALS LTD & WESTERN COMMERCIAL Supply and delivery of Heavy Vehicles 01/04/20 31/03/21 - 1,924,079 26/04/21 BRYSON TRACTORS LTD & HAMILTON BROTHERS ENGINEERING LTD Supply and delivery of Plant 01/04/20 31/03/21 - 738,642 26/04/21 SCOT JCB LTD Supply and delivery of Plant 01/04/20 31/03/21 - 738,642 26/04/21 COMPASS MINERALS UK LTD & SALT SALES COMPANY Salt for Winter Maintenance 01/05/21 30/06/22 30/06/23 3,700,000 26/04/21 CIVICA UK LTD Provision of Civica Digital 360EDM and Workflow Software 01/04/21 31/03/23 31/03/25 138,541 30/04/21 AILSA BUILDING CON- TRACTORS LTD Kirkton Place, East Kilbride - External Fabric Upgrade Works 01/06/21 01/02/22 - 544,505 30/04/21 CITY PLUMBING SUP- PLIES HOLDINGS LTD Direct Award for the Supply of Domestic Boilers, Associated Materials 01/05/21 01/05/22 01/05/23 4,250,000 206
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Award date Contracted Supplier Contract Name Start Date End Date Exten- sion date Value (£) 03/05/21 AEBI SCHMIDT UK LTD & IMPERIAL COMMER- CIALS LTD Supply and delivery of Heavy Vehicles 01/05/21 29/10/21 - 836,117 04/05/21 JOSEPH LECKIE & SONS CONTRACTS LTD St Marks Primary School Nursery Extension - Groundworks and Brick- works 21/06/21 31/01/22 - 198,406 04/05/21 JAMES COWIE & CO LTD St Marks Primary School Nursery - Extension – Structural Steelwork 21/06/21 31/01/22 - 62,071 05/05/21 BLANTYRE PARK SERVICES LTD St Marks PS Nursery Extension - Plumbing & Mechanical 21/06/21 31/01/22 - 57,388 07/05/21 PARK'S OF HAMILTON (TOWNHEAD GARAGE) LTD Light Vehicles up to 3.5T 01/04/21 30/09/21 - 1,005,989 07/05/21 IMPERIAL COMMER- CIALS LTD, DENNIS EAGLE LTD & FAUN ZOELLER (UK) LTD Supply and delivery of Heavy Vehicles 01/04/21 30/09/21 - 2,842,760 07/05/21 HAMILTON BROTH- ERS ENGINEERING LTD Supply and delivery of Plant 01/04/21 30/09/21 - 307,770 07/05/21 DORO AB Supply and Delivery of Analogue Dispersed Alarm Units 07/05/21 06/05/22 - 126,500 10/05/21 PROCAST BUILDING CONTRACTORS LTD Kirkhill Area, Cambuslang - External Fabric Upgrade Works 06/09/21 07/07/23 - 1,124,408 11/05/21 TURNER ACCESS LTD SLC Maintenance and Contracts Term Scaffolding Contract 11/05/21 10/11/21 10/05/22 750,000 12/05/21 MAC Electrical and Welding Ltd Maintenance & Repair of Portable Gas Appliances 18/05/21 17/05/23 17/05/25 50,000 14/05/21 THE NURTURE GROUP NETWORK LTD Supply of Nurture UK Emotional and Behavioural Interventions, Training and Resources 14/05/21 13/05/23 - 200,000 24/05/21 JAMES COWIE & CO LTD Crawforddyke PS - Struc- tural Steelwork 01/06/21 31/08/21 - 57,921 01/06/21 GEESINK NORBA LTD Supply and delivery of Heavy Vehicles 01/06/21 29/10/21 - 666,452 01/06/21 CARE & REPAIR IN SOUTH LANARKSHIRE Telecare and Keysafe In- stallations and Mainte- nance 01/06/21 31/05/22 - 229,500 03/06/21 PRIME BUILD SOLUTIONS LTD Carnwath Salt Barn - Minor Works 06/07/21 15/09/21 - 251,165 07/06/21 SSI SCHAEFER LIMITED Supply and Delivery of Recycle and Refuse Containers 01/06/21 02/11/21 - 172,000 07/06/21 IDOX SOFTWARE LTD Technical Managed Service 07/06/21 06/06/23 - 175,000 08/06/21 JOSEPH LECKIE & SONS CONTRACTS LTD Smyllum Retaining Wall - Groundworks 01/07/21 30/06/22 - 55,950 08/06/21 SOFTCAT PLC Supply and Support of Microsoft Licences 01/07/21 30/06/23 30/06/25 4,500,000 08/06/21 RITCHIE MACKENZIE & CO LTD Sewage Pump Mainte- nance 14/06/21 31/03/24 - 94,755 207
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Award date Contracted Supplier Contract Name Start Date End Date Exten- sion date Value (£) 11/06/21 LANDSCAPES & CONTRACTS LTD Comely Bank, Hamilton – Repair/Rebuild Retaining Walls 01/08/21 01/09/21 - 82,255 14/06/21 CITY OF EDINBURGH COUNCIL Scientific Testing Services 01/07/21 30/06/25 30/06/26 350,000 23/06/21 FOURPLY LTD Fire Damage Reinstate- ment 25/06/21 30/09/21 - 62,286 23/06/21 F SWORDS & SONS BUILDERS LTD Supply and Installation of Sheds (various Education establishments) 23/06/21 17/08/21 - 57,053 23/06/21 GALLIFORD TRY BUILDING LTD T/A Glengowan PS Extension 01/07/21 24/03/22 - 1,866,294 24/06/21 MICROSOFT LTD Microsoft Services Delivery Manager 01/07/21 30/06/22 - 78,861 25/06/21 ADL LIFT SERVICES LTD Maintenance of Lifts 30/08/21 29/08/24 29/08/26 1,947,002 25/06/21 ADIGO CARE Care at Home - Negotiated 01/07/21 30/06/22 - 150,000 28/06/21 ELVEDEN FARMS LTD Supply of Christmas trees 01/11/21 15/12/21 - 61,155 29/06/21 LANDSCAPES & CONTRACTS LTD Newton Farm Primary Extension - Groundworks, Brickworks and Piling 29/06/21 28/07/22 - 819,485 01/07/21 MOTUS COMMERCIALS Supply and delivery of Heavy Vehicles 01/07/21 31/12/21 - 139,679 02/07/21 BRIGHTWAVE ENTERPRISES LTD E-Learning and Develop- ment System 01/08/21 31/07/23 - 732,275 07/07/21 A & E CONSTRUCTION (SCOTLAND) LTD Newton Farm Primary School Steel Frame System 22/11/21 14/01/22 - 187,882 07/07/21 BLANTYRE PARK SERVICES LTD Newton Farm Primary School Mechanical, Plumbing & Alarm Works 10/01/22 20/05/22 - 308,451 07/07/21 SCOTTECH LTD Newton Farm Primary School Curtain Walling 29/11/21 14/01/22 - 188,388 07/07/21 PROCLADD (SCOTLAND) LTD 1 Newton Farm Primary School Profile Roof Sheet- ing 27/09/21 12/11/21 - 148,388 07/07/21 JAMES COWIE & CO LTD Newton Farm School – Structural Steelworks 16/08/21 20/09/21 - 383,083 22/07/21 CLOSOMAT LTD Installation, Service, Repair and Maintenance of Closomat Equipment 02/08/21 01/08/26 01/08/28 261,380 26/07/21 SACRO Unpaid Work Contract 01/08/21 31/03/22 - 107,300 26/07/21 WHITEHILLS CARE HOME Block Purchase Agreement 26/07/21 03/10/21 - 91,642 28/07/21 AILSA BUILDING CON- TRACTORS LTD May Gardens Hamilton - Roof Renewal 28/07/21 27/10/21 - 1,698,838 29/07/21 CITY GATE CON- STRUCTION (SCOT- LAND) LTD North Vennel Lanark Re Roofing and Stonework 29/07/21 28/07/22 - 93,635 29/07/21 PORTAKABIN (SCOT- LAND) LTD Dismantle and removal of existing MTUs at St Charles PS 27/08/21 08/10/21 - 166,317 06/08/21 ORBILITY LIMITED Duke Street Pay on Foot Car Park Management System 06/08/21 05/08/26 05/08/28 116,580 208
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Award date Contracted Supplier Contract Name Start Date End Date Exten- sion date Value (£) 09/08/21 ENVIRONMENTAL ESSENTIALS LTD Asbestos Consultancy 17/08/21 16/08/23 16/08/25 1,400,000 11/08/21 JOSEPH LECKIE & SONS CONTRACTS LTD Groundworks & Substructure - Robert Smillie Nursery 01/08/21 31/08/22 - 400,000 12/08/21 GL EDUCATION GROUP LTD Provision of Literacy, Numeracy, Health and Wellbeing Educational Assessment Resources 01/08/21 31/07/24 - 300,000 12/08/21 Saltire Facilities Man- agement Ltd SLC Wide - Fixed Electrical Testing Domestic - Fixed Electrical Testing Domestic 12/08/21 23/02/23 - 352,640 16/08/21 A M PHILLIP TRUCK- TECH LTD Supply and delivery of Heavy Vehicles 03/08/21 31/03/22 - 421,350 17/08/21 RENFREWSHIRE COUNCIL Procurement Spend Review 01/08/21 31/07/23 31/07/24 659,000 18/08/21 HAMILTON BROTH- ERS ENGINEERING LTD SXL Grounds Maintenance Machinery 18/08/21 31/12/21 - 287,350 20/08/21 Lica Home Care UK Ltd Care at Home Negotiated All Localities 25/08/21 30/06/22 - 115,236 23/08/21 BLANTYRE PARK SER- VICES LTD Robert Smillie (Skypark), Larkhall – Mechanical 23/08/21 23/08/22 - 259,048 23/08/21 NORTHERN LIGHT STAGE&TECH SER- VICES LTD Maintenance of Stage Production Systems 30/08/21 29/08/24 29/08/27 1,200,000 27/08/21 VARIOUS SUPPLIERS Provision for Counselling Services in Schools 27/08/21 30/06/22 - 938,000 30/08/21 PROCAST BUILDING CONTRACTORS LTD & HUGH LS MCCONNELL Back Up Void Contractor – Refurbishment Works 06/09/21 05/02/22 05/08/22 250,000 31/08/21 MHA AUCHLOCHAN Provision of Care at Home Services 01/07/20 30/06/25 - 2,760,040 01/09/21 ALLPAY.NET LTD Electronic Payment Services 01/09/21 31/08/23 31/08/25 525,157 01/09/21 RENFREWSHIRE COUNCIL Procurement Support from Scotland Excel 01/10/21 30/09/22 30/09/23 105,072 02/09/21 COVANBURN CON- TRACTS LTD Greenlees Area Cambuslang Drainage Improvement Works 02/09/21 30/11/21 - 120,453 02/09/21 Lost Art Limited Alexander Hamilton Memorial Park Bandstand Roof Repair Works 06/09/21 28/02/22 - 215,794 06/09/21 BCA INSULATION LTD Strutherhill Fabric Phase 1 06/09/21 06/12/21 - 66,507 07/09/21 MOMENTUM 4 LTD Multi Storey Flats Fire Strategy Survey 01/09/21 24/11/21 - 215,096 08/09/21 Karen Yuill Recovery Ltd The Provision of Vehicle Breakdown Recovery Services 08/09/21 31/08/24 31/08/26 325,000 08/09/21 Take Care at Home Ltd Care at Home Services 08/09/21 30/06/22 - 96,030 21/09/21 A M PHILLIP TRUCK- TECH LTD Supply and delivery of Heavy Vehicles 01/09/21 31/03/22 - 147,236 24/09/21 TextHelp Ltd TextHelp - Read and Write Platform 01/10/21 30/09/23 30/09/25 127,300 209
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Award date Contracted Supplier Contract Name Start Date End Date Exten- sion date Value (£) 28/09/21 M & S FIRE PROTEC- TION (GLW) LTD Supply, Delivery, Servicing and Maintenance of Fire Safety Products 29/09/21 28/09/23 28/09/25 400,000 29/09/21 HILLHOUSE QUARRY COMPANY Supply and Delivery of Coated Roadstone 05/10/21 22/10/21 - 74,420 30/09/21 SOFTCAT PLC Web Security Gateway Licences 01/10/21 30/09/22 - 62,232 30/09/21 ORACLE CORPORA- TION UK LTD Oracle EBS Upgrade to Oracle Fusion - Licences 25/10/21 24/10/26 24/10/31 12,784,292 01/10/21 SIEMENS PLC Traffic Signal Equipment Works and Ancillary Support Services 01/10/21 30/09/26 30/09/31 13,000,000 06/10/21 HOLLAND HOUSE ELECTRICAL CO LTD CEEF Lighting Upgrade 2021 - 22 10/10/21 31/03/22 - 139,883 14/10/21 SIDEY LTD Window and Door Replacement Package 24/10/21 29/07/22 - 2,642,063 18/10/21 ROYAL BANK OF SCOTLAND Banking services 01/04/22 31/03/29 - 440,313 25/10/21 FIRST STEPS RURAL CONNECTION LTD GradU8 Construction Provision Clydesdale 29/10/21 01/04/22 - 105,900 25/10/21 FIRST STEPS RURAL CONNECTION LTD GradU8 Winter Leavers Clydesdale Construction Provision 23/08/21 22/12/21 - 52,600 25/10/21 FIRST STEPS RURAL CONNECTION LTD Aspire Construction Tasters 2021 Clydesdale mini competition 29/10/21 29/10/22 - 78,000 27/10/21 JEWSON Alberta Park Sheltered Housing Complex - Internal Area Upgrade 01/11/21 15/11/21 - 174,153 29/10/21 BRB LTD Design, Supply, and Installation of Gas Central Heating System - Back Up Contractor 15/11/21 14/11/24 14/11/26 4,200,000 03/11/21 JOBLING PURSER LTD Supply and Delivery of Bitumen Products 03/11/21 29/02/24 28/02/25 160,000 04/11/21 COVANBURN CON- TRACTS LTD Cairns, Calderwood and Victoria Park Primary Outdoor Classroom 15/11/21 31/03/22 - 86,870 04/11/21 BIFFA WASTE SERVICES LTD Collection, Treatment and Disposal of Council Buildings Waste 01/01/22 31/12/26 31/12/30 4,410,000 15/11/21 Lanarkshire Care Partners Specialist Adult Supported Living 15/11/21 14/11/22 - 81,608 16/11/21 A C WHYTE & CO LTD Whole House Upgrading at Various Domestic Properties in Burnbank and Carnwath 15/01/22 30/06/22 - 2,039,765 16/11/21 ORONA LTD Service, Maintenance and Repair of Closed Protocol Lift Installations 01/04/22 31/03/27 31/03/32 605,020 18/11/21 ADL LIFT SERVICES LTD Lift Upgrade at Deer Park Sheltered Housing 06/07/22 21/07/23 - 78,049 18/11/21 ADL LIFT SERVICES LTD Lift Upgrade at Parker Place Sheltered Housing 30/05/22 14/07/23 - 65,395 29/11/21 CLYDESDALE COMMUNITY INITIATIVES Aspire Rural Supported Volunteering Programme 01/12/21 01/12/22 - 85,536 210
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Award date Contracted Supplier Contract Name Start Date End Date Exten- sion date Value (£) 29/11/21 SOUTH LANARKSHIRE COLLEGE Rural Academy 01/10/21 31/03/22 - 150,000 01/12/21 LANDCARE SOLUTIONS (SCOTLAND) LTD Coalburn Leisure Centre Play Area 03/01/22 28/03/22 - 168,711 01/12/21 JOHN MCGEADY LTD Rutherglen & Cambuslang Tarring Project 13/12/21 10/01/22 - 90,823 01/12/21 VARIOUS SUPPLIERS 2019-2024 Winter Assis- tance - Farmers 2020/2021 Season 01/12/21 31/05/24 - 50,000 02/12/21 IRONSIDE FARRAR LTD New Places New Futures - Town Centre Visioning 13/12/21 31/07/22 - 96,000 20/12/21 LEVENSEAT LTD & SMURFIT KAPPA RE- CYCLING Receipt and Processing of Recyclable Waste 01/04/22 30/09/23 31/03/25 60,000 20/12/21 VARIOUS SUPPLIERS Education Services Procured Service Arrangement 20/12/21 19/12/26 19/12/31 42,000,000 21/12/21 CCG (SCOTLAND) LTD Design, Supply and Installation of Fire Doors - Towers 24/01/22 23/01/25 23/07/26 8,406,000 22/12/21 SCVO Long Term Unemployed Programme 01/12/21 31/03/22 31/12/22 405,000 22/12/21 SCVO Enhanced Volunteering and placement programme for Youth Guarantee 01/12/21 31/03/22 31/12/22 320,000 23/12/21 HYPOSTYLE ARCHITECTS Hypostyle Direct Award for Consultancy Services – Community Hub at New Cross Centre, Hamilton 05/02/21 31/05/22 - 94,750 05/01/22 CCL Components Ltd Supply and Delivery of Electrical Materials - CEEF 21/22 01/02/22 31/03/22 - 90,595 10/01/22 FRASER TOOL HIRE LTD Hire and Maintenance of Small Plant including Inde- pendent Hand Arm Vibra- tion and Noise Testing 10/01/22 09/01/25 09/01/28 1,458,768 10/01/22 ACE PLACE LTD Early Learning and Child Care PSA 01/04/20 31/07/30 - 143,500,000 11/01/22 VARIOUS SUPPLIERS Adult Supported Living 25/01/22 31/05/35 - 242,837,766 13/01/22 MAXI CONSTRUCTION LTD Roberton Hall Refurbishment Works 13/01/22 07/04/22 - 190,351 14/01/22 IRONSIDE FARRAR LTD New Places New Futures - Transition to Net Zero 24/01/22 26/09/22 - 160,000 19/01/22 HIGHFIELD PARK Specialist Residential Care - Oak Residential MHC UK 16/03/16 31/03/23 - 1,215,134 21/01/22 MARKON LTD Anti-Skid Road Surfacing and Reflective Studs Contract 21/01/22 20/01/26 20/01/27 2,250,000 21/01/22 T MCGOWAN & SONS Supply, Delivery & Installation of Memorial Plaques and Inscriptions 24/01/22 23/01/25 23/01/27 50,000 26/01/22 LANDSCAPES & CON- TRACTS LTD Strathclyde Path, Uddingston - Retaining Walls 01/03/22 12/04/22 - 101,717 211
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Award date Contracted Supplier Contract Name Start Date End Date Exten- sion date Value (£) 27/01/22 SOUTH LANARKSHIRE COLLEGE SLC Training & Employability Framework - Access Choices & Employability 01/04/22 31/03/23 30/09/23 189,899 27/01/22 SOFTCAT PLC VMWare Workspace ONE Advanced Licences 2022- 2023 28/01/22 27/01/23 - 50,650 31/01/22 VARIOUS SUPPLIERS Training and Employability Framework 31/01/22 30/01/26 - 28,000,000 02/02/22 PURE AUDIO VISUAL LTD Supply, Installation, Support and Maintenance of AV Equipment 07/02/22 06/02/27 06/02/30 400,000 04/02/22 Levenseat Ltd Receipt, Treatment and Processing of Bulky Waste 01/04/22 30/09/25 30/09/27 10,785,912 07/02/22 IRONSIDE FARRAR LTD Southwest Scotland Green Action Travel Project 07/02/22 20/05/22 - 55,000 08/02/22 FINNING (UK) LTD Supply and delivery of Plant 08/02/22 31/07/22 - 567,660 08/02/22 PHYSICARE Provision of Physiotherapy Services 01/03/22 28/02/23 - 400,000 09/02/22 MUIRGROUP INTERIORS LTD Quick Quote for Life Cycle Flooring Works Hamilton Area 14/02/22 31/03/22 - 50,114 09/02/22 MUIRGROUP INTERIORS LTD Quick Quote for Life Cycle Flooring Works Rutherglen Area 09/02/22 31/03/22 - 77,380 09/02/22 MUIRGROUP INTERI- ORS LTD Quick Quote for Life Cycle Flooring Works East Kilbride Area 14/02/22 31/03/22 - 107,040 11/02/22 COVANBURN CON- TRACTS LTD Hamilton Palace Sports Ground 11/02/22 11/08/22 - 188,160 15/02/22 DIAMOND AIR CONDI- TIONING LTD Maintenance of Air Conditioning and Air Handling Units 21/02/22 20/02/23 20/02/24 560,000 18/02/22 HYDRO-LOGIC SERVICES Provision and Maintenance of Watercourse Remote Monitoring Equipment 04/03/22 03/09/24 03/09/26 50,000 21/02/22 ALLIANCE DISPOSABLES LTD Supply and delivery of Aquateck Units to SLC HQ and various High Schools 21/02/22 21/02/24 - 121,500 25/02/22 EVOLUTIONARY SYSTEMS COMP LTD Oracle Fusion SI partner 28/02/22 27/09/23 22/09/24 3,373,460 25/02/22 CRUDEN BUILDING & RENEWALS LTD 1 Reinstatement Works, East Kilbride 21/03/22 22/09/22 - 442,219 28/02/22 MULLER UK & IRE- LAND GROUP LLP Direct Award for the Supply and Delivery of Milk 01/03/22 28/02/26 28/02/27 1,950,000 01/03/22 HUGH LS MCCONNELL Back Up Contractor – Refurbishment Works / Aids and Adaptations 04/03/22 03/03/24 03/03/26 2,000,000 01/03/22 HUB SOUTH WEST SCOTLAND LTD Construction of a new non-denominational 16 classroom primary school and nursery with sports pitch facilities. 01/03/22 01/05/23 - 14,892,187 07/03/22 MAXI CONSTRUCTION LTD New Cross Community Hub Regeneration Works 01/03/22 02/09/22 - 997,894 212
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Award date Contracted Supplier Contract Name Start Date End Date Exten- sion date Value (£) 07/03/22 PENTLAND PLANTS Negotiated Procedure for Supply and Delivery of Summer Bedding Plants 2022 07/03/22 11/03/23 - 57,912 07/03/22 BEMCO LTD Supply and Delivery of Carbon Dioxide Monitors 07/02/22 31/03/22 - 1,777,780 08/03/22 SECURIGROUP SER- VICES LTD Security Services for Council Offices 01/04/22 30/09/22 31/03/23 118,231 08/03/22 PROFILE SECURITY SERVICES LTD Provision of Manned Security 01/04/22 30/09/22 31/03/23 800,000 11/03/22 A.M.1. CONSULTING LTD Oracle Fusion Implementation Programme Management 24/01/22 27/09/23 27/09/24 333,000 17/03/22 ENVA Organics Recycling Ltd & Levenseat Ltd Treatment of Organic Waste 01/04/22 31/03/25 31/03/27 8,256,405 18/03/22 ROYAL BRITISH LEGION INDUSTRIES LTD Supply and Delivery of Permanent Road Signage & Associated Products 28/03/22 27/03/26 27/03/27 162,000 23/03/22 COFFEE CONSCIENCE LTD Supply of Coffee and Associated Products 24/03/22 23/03/25 - 65,000 24/03/22 Puffin Energy Ltd Supply & Delivery of Biomass Pellets 24/03/22 31/03/23 - 50,000 28/03/22 PARENTPAY LTD Online School Payments System 01/04/22 31/03/27 31/03/30 447,112 30/03/22 ESRI (UK) LTD ArcGIS Licences and Maintenance 01/04/22 31/03/25 - 178,155 31/03/22 RISK MANAGEMENT PARTNERS LTD Travel Insurance 01/04/22 31/03/24 - 59,358 31/03/22 FMS FIRE & SECURITY LTD Service, Maintenance and Repair of Closed Protocol Fire and Intruder Alarms 11/04/22 10/04/27 10/04/32 612,110 31/03/22 SPIE SCOTSHIELD LTD Service, Maintenance and Repair of Closed Protocol Intruder Alarms 04/04/22 03/04/27 03/04/32 450,000 213
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7.3. Appendix 2 7.4. Procurement Strategy 2020-2023 Strategic Objectives update Plan 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 continue to monitor compliance with regulations and Standing Orders on Contracts across the Council, as evidenced by • Review of 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 through a focused review of procurement spend 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: • 93% participation in Scotland Excel frame- works • Increased levels of engagement with • Scottish Procurement Alliance, 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 innovation and value in contract delivery 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: • Extensive liaison on contract delivery and supplier relief following Covid pandemic and EU Exit • Improved levels of engagement with Social Care providers Fair Work Practices Work with suppliers to improve Fair Work Improved Fair Work Practices and Living We continue to promote Fair Work Practices and 214
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Practices, including payment of the Living Wage and compliance with Council Charters Wage for those involved in delivery of Council contracts payment of the Living Wage, as evidenced by: • Annual confirmation of payment of Living Wage in all Social Care contracts, including de- livery of winter uplift in December 2021 • Review of Fair Work First and Living Wage recommendations from Scottish Government for implementation by 2022/2023 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 is working with the Scottish Government’s sustainable procurement toolkit, supported by Sustainable Procurement Scotland, including: • Use of the Flexible Framework to assess the organisational approach to sustainable procurement and monitor progress. • Completion of the Prioritisation tool to inform the Council’s priorities for sustainable outcomes for contracts. 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: • We continue to engage with local suppliers and SMEs to promote con- tract opportunities and our joint work in this area is continuing with the Supplier Develop- ment Programme and Economic Development partners. • A joint virtual Meet the Buyer event was held with North Lanarkshire Council in November 2021. • New arrangements to introduce Quick Quotes for works contracts to 215
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£2m and extend the re- quirement for local bids from two to four ap- proved by Executive Committee in Septem- ber 2021. 216
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7.5. Appendix 3 7.6. Planned Future Regulated Procurements 2022/2023 and 2023/2024 Project Estimated value £ Estimated award date Kyle Court Fabric Works 140,000 01/04/2022 Close Lighting Upgrade - Cathkin 58,000 07/04/2022 Roads Materials Testing 100,000 08/04/2022 Supply and Delivery of Industrial Gases Framework 80,000 19/04/2022 Supply & Delivery of Telecare Equipment 1,136,900 20/04/2022 Summer Bedding Plants 2023 80,000 30/04/2022 British Sign Languages and Centre of Approval 90,000 01/05/2022 Specialist Residential Care 581,703 01/05/2022 Advocacy Services - Adults with Learning Disabilities 270,000 03/05/2022 Advocacy Services - Older People and Adults with Mental Health Problems 360,000 03/05/2022 Repair, Inspection and Maintaining of Catering Ma- chines 450,000 03/05/2022 Commercial Heating - Out of Hours Call Outs 80,040 05/05/2022 Lubricating Oils, Greases and Anti Freeze 156,000 05/05/2022 Supply and Delivery of Digital alarms 1,000,000 06/05/2022 Libberton Primary Play Area 100,000 12/05/2022 Supply and Delivery of Roads Maintenance Materials - Bollards and Verge Markers 279,980 19/05/2022 Supply and Delivery of Plumbing Materials 500,000 24/05/2022 Cunningar Loop - Phase 3 Masterplanning 50,000 25/05/2022 Fire Damper Maintenance 230,000 25/05/2022 Supply and Delivery of Domestic Heating Spares 300,000 25/05/2022 Void Property Protection 400,000 25/05/2022 217
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Project Estimated value £ Estimated award date Supply and Delivery of Christmas Trees 2022 65,207 30/05/2022 Provision of CCTV Circuits 75,000 30/05/2022 Cleaning Equipment 100,000 30/05/2022 Payables Fraud Prevention Software 120,000 30/05/2022 Upgrade And Maintenance of CCTV Monitoring Sys- tems 100,000 31/05/2022 Teacher Supply Booking System 50,000 31/05/2022 Supply of Excavators 261,125 31/05/2022 Supply and Delivery of Roads Maintenance Materials Drainage Products 560,000 31/05/2022 Educational Materials 4,000,000 31/05/2022 Supply & Distribution of Frozen Foods 4,859,078 31/05/2022 Cycle to Work 106,902 01/06/2022 Council Tax Discount and Exemption Review 150,000 01/06/2022 Crematorium Equipment/Maintenance 180,000 01/06/2022 Glebe Gardens Sheltered Housing External Fabric Re- pairs 200,000 06/06/2022 Cash Out & Voucher Agreements 600,000 06/06/2022 Treasury Management support 60,000 07/06/2022 Supply and Delivery of Ultracrete 230,000 09/06/2022 Figtree- Risk Management Information System 60,000 11/06/2022 Supply and Delivery of Cold Permanent Pothole Repair 68,267 17/06/2022 Supply and Delivery of Roads Maintenance Materials - Miscellaneous Products 120,000 22/06/2022 Supply and Delivery of Electrical Materials 500,000 22/06/2022 Capita Housing system support 200,000 23/06/2022 Maintenance of Lighting Columns (Sports Pitches Floodlighting 657,280 27/06/2022 218
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Project Estimated value £ Estimated award date Wellhall / Woodfoot / Hillhouse Rd - remodelling & im- provements of 2 traffic junctions (City Deal) 2,000,000 27/06/2022 Lanark Road / M74 Larkhall - Remodelling & improve- ment at traffic junction and motorway overbridge (City Deal) 1,250,000 28/06/2022 TEC Zone - Blantyre Development 150,000 29/06/2022 Planer and Paver Hire and Works 2024 1,000,000 29/06/2022 Supply and Delivery of Roads Maintenance Materials Concrete Products 200,000 30/06/2022 Tyres 300,000 30/06/2022 Oracle Fusion Implementation 55,500 30/06/2022 Supply of Plant & Grounds Maintenance Machinery 100,000 30/06/2022 Supply and Delivery of Bins (SXL Recycle and Refuse Containers) 850,000 30/06/2022 Vehicle Charging Infrastructure 1,000,000 30/06/2022 Secure Care 2,300,000 30/06/2022 Fostering and continuing care 9,700,000 30/06/2022 Educational Services PSA Phase 2 42,141,617 30/06/2022 Bail Supervision Service (SACRO) 60,000 01/07/2022 Social Work Unpaid Work support 129,246 01/07/2022 Provision of a Microsoft Unified Support Service 83,383 07/07/2022 Maintenance Of BEMS Installations 900,000 23/07/2022 Window and Door Replacement Package 1,000,000 29/07/2022 Supply and Delivery of Roads Maintenance Materials - Pedestrian Safety Barriers 100,000 31/07/2022 Supply and Delivery of Roads Maintenance Materials Line Marking Material 100,000 31/07/2022 Supply and Delivery of Soft Drinks 100,000 31/07/2022 A masterplan for Lanark Racecourse that will include comprehensive community consultation 50,000 31/07/2022 Gradu8 Construction - Friday East Kilbride 70,000 31/07/2022 219
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Project Estimated value £ Estimated award date Gradu8 Construction - Monday Clydesdale 70,000 31/07/2022 Gradu8 Construction - Winter Leavers - Rural 70,000 31/07/2022 Support groups for carers and care for person with mental health issues. 100,000 31/07/2022 Young adult support living placements 425,941 31/07/2022 Supply, Implementation and Support of an EDRMS Corporate Solution 500,000 31/07/2022 Payment Acceptance - Worldpay 600,000 31/07/2022 SLC Maintenance and Contracts Term Scaffolding Con- tract 900,000 31/07/2022 Taxi - Primary Schools 2,000,000 31/07/2022 Taxi - Secondary Schools 2,000,000 31/07/2022 Adult Supported Living - Phase 4 229,000,000 01/08/2022 Support for the NDL integration tool 90,000 02/08/2022 Software Solution for Grounds, Street Cleansing & Waste Services TBC 15/08/2022 Supply and Delivery of Corporate Clothing 100,000 31/08/2022 Toxicology service 100,000 31/08/2022 Early Learning and Childcare - Phase 6 143,000,000 01/09/2022 Hire of Waste Disposal Skips 500,000 12/09/2022 Income Management System / Online Cashless Pay- ments 100,000 28/09/2022 Domestic Electric goods including cookers, fridges and washing machines 300,000 30/09/2022 Adult Advocacy 1,000,000 30/09/2022 Ebooks, E-audiobooks, E-magazines and E-music 100,000 30/09/2022 Supply and Delivery of Building &Timber Materials 500,000 30/09/2022 Highway Electrical Connections 200,000 30/09/2022 LUF Business Case 50,000 30/09/2022 220
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Project Estimated value £ Estimated award date LUF Design Consultant 50,000 30/09/2022 PVC Products Lot 4 Building Materials PFH Scotland 50,000 30/09/2022 Supply and Delivery of Ceramic Tiles PFH Framework 50,000 30/09/2022 Aspire Employability Group Work 70,000 30/09/2022 Love to Ride South Lanarkshire 70,000 30/09/2022 Online Parents Meeting System 70,000 30/09/2022 Hamilton Palace Sport Grounds Pitch 100,000 30/09/2022 Kennelling of Stray Dogs 100,000 30/09/2022 Secure Destruction of Confidential Waste 2022 100,000 30/09/2022 Educational Materials - Lot 7 Musical Instruments 140,000 30/09/2022 Assistive Technology Installations 200,000 30/09/2022 Blantyre Care Facility - Various Procurements 200,000 30/09/2022 Supply Delivery and Hire of Temporary Heating Appli- ances 200,000 30/09/2022 The Provision of Secure Cash Collection Services 200,000 30/09/2022 Castlefield Gardens Sheltered Housing – Common Area Upgrade 239,000 30/09/2022 Supply of Ironmongery Scotland Excel Trade Materials Framework 250,000 30/09/2022 Supply & Delivery of Biomass Pellets & Maintenance of Biomass Boilers 300,000 30/09/2022 Industrial Washing Machine and Maintenance Contract - All resources 400,000 30/09/2022 1st Stop Homelessness and Outreach Support Services 500,000 30/09/2022 Provision and Delivery of Washroom Solutions & Sani- tary Products 500,000 30/09/2022 Pest Control, Industrial Cleaning and Other Environ- mental Services 800,000 30/09/2022 Tenants Contents Insurance 800,000 30/09/2022 Children's Residential Care 1,200,000 30/09/2022 221
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Project Estimated value £ Estimated award date Clyde Bridge Project 6,000,000 30/09/2022 General Stationery and Office Paper Framework for the Scottish Public Sector Reference SP-14-009 TBC 30/09/2022 Supply and Delivery of Wall Panels Lot 5 Building Mate- rials Framework TBC 28/10/2022 Aspire Construction Tasters 2021 Clydesdale mini com- petition 110,000 29/10/2022 Aspire Construction Tasters 2021 Hamilton, Cam- buslang and East Kilbride mini competition 110,000 29/10/2022 Aspire CSCS Health & Safety Construction Prep/Test 610,000 29/10/2022 Door Entry MTC 2022 onwards TBC 31/10/2022 Secure Site Containers Supply Delivery & Hire 1,103,000 13/11/2022 Inspection, Maintenance and Repair of PE Equipment 80,000 20/11/2022 Electromagnetic repairs to non-housing general service properties 1,000,000 30/11/2022 Framework for Provision of Driver Training and Assess- ments (LGV, Driver Assessments, Driving Lessons, Road Roller Assessments and Category E) TBC 30/11/2022 Disposal / Recycling of Gully Waste, Street Sweepings and General Road Construction Materials TBC 30/11/2022 PSN (GCF Core Services) TBC 30/11/2022 Horticulture - Supply and Delivery of plants, shrubs, trees 220,000 01/12/2022 Aspire Rural Supported Volunteering Programme 130,000 01/12/2022 Cars and light commercial vehicle purchase 4,000,000 01/12/2022 Vending Machine Services TBC 03/12/2022 Provision of Occupational Health Services, incl Physio & Counselling 3,000,000 13/12/2022 Development of an additional support service to chil- dren and young people 100,000 31/12/2022 Social Work Structured Review Service 100,000 31/12/2022 Carer Respite Service for People with Dementia 109,000 31/12/2022 Enhanced Care for Care Experienced Young People 1,500,000 31/12/2022 Employee Counselling and Cognitive Behavioural Ther- apy Services 2,000,000 31/12/2022 222
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Project Estimated value £ Estimated award date Roads Network Improvements TBC 31/12/2022 Supply and Delivery of Personal Protective Equipment (PPE) - Lot 1 - Safety, Workwear, Weatherwear and Footwear TBC 31/12/2022 Gradu8 Construction - Summer Leavers Rural 100,000 01/01/2023 Gradu8 Construction - Summer Leavers Urban 100,000 01/01/2023 Supply of Paint and Sundries 2017/2020 Procurement For Housing Decorative Solutions Framework TBC 22/01/2023 Call Recording 63,680 31/01/2023 Management and Operation of Household Waste Recy- cling Centres TBC 03/02/2023 Blue Badge Printing and Fulfilment Services TBC 04/02/2023 Supply and Delivery of Turf TBC 10/02/2023 SLC Wide - Fixed Electrical Testing Domestic - Fixed Electrical Testing Domestic 100,000 23/02/2023 Janitorial Products 200,000 28/02/2023 Blue Badge Central Record and Badge Ordering Ser- vices 50,000 04/03/2023 Advocacy and participation service to children and young people. 120,000 30/03/2023 Liquid Fuels 7,500,000 30/03/2023 Closed Protocol Sampling and Water Treatment at HQ 50,000 31/03/2023 Five Minute Box Education Resources 50,000 31/03/2023 Provision of Corporate SMS Solution 50,000 31/03/2023 Advice and guidance service for carers 60,000 31/03/2023 Repair and Maintenance of VAS Signs 60,000 31/03/2023 Digital Support - Counselling Services 67,000 31/03/2023 Interpretation Services new contract 70,000 31/03/2023 Schools Library Management System 75,000 31/03/2023 Supply of Homecare Uniforms - Tunics & Trousers 75,000 31/03/2023 223
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Project Estimated value £ Estimated award date Throughcare service for service users with alcohol and drug issues who are serving short term custodial sen- tences. 80,000 31/03/2023 Closed protocol Live link Warden Call Systems Cander Avon and McClymont Home 100,000 31/03/2023 FAME - Business Database and Intelligence 100,000 31/03/2023 First Aid materials 100,000 31/03/2023 Information & Advice Service on Self Directed Support 100,000 31/03/2023 Kitchen Canopy Cleaning 100,000 31/03/2023 Provision of Drain Cleaning Services 100,000 31/03/2023 Closed Protocol Servicing and maintenance of fire and intruder alarm , door access and disabled alarm sys- tems 150,000 31/03/2023 Lone Working Solution 160,000 31/03/2023 Almada Security Review 200,000 31/03/2023 External Window Cleaning 200,000 31/03/2023 Leisure Management System - Booking and Ticketing 200,000 31/03/2023 Bank Terrace Sheltered Housing, Forth – Common Area Upgrade 226,000 31/03/2023 Kirkton / Fleming Court Sheltered Housing - Common Area Upgrade 227,000 31/03/2023 Northgate Orbis Annual Support, Maintenance and Consultancy 300,000 31/03/2023 Servicing and maintenance of lifts 300,000 31/03/2023 Vehicle Parts 300,000 31/03/2023 Framework for Small Plant Training 360,000 31/03/2023 Hire of Vehicles and Mobile Plant 400,000 31/03/2023 Roads Network Management Software 500,000 31/03/2023 Supply & Delivery of Library Books / Textbooks / Multi- media supplies for Schools 750,000 31/03/2023 Void Property Protection 2019-2022 800,000 31/03/2023 SLC Main Policies 1,000,000 31/03/2023 224
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Project Estimated value £ Estimated award date Server & Storage Supply & Support 1,800,000 31/03/2023 Smart Storage Installation to Calderwood High Rise 1,894,860 31/03/2023 Domestic Abuse Services 2,400,000 31/03/2023 Specialist Educational Materials 4,000,000 31/03/2023 Supply of Kitchens and Worktops for Routine Mainte- nance 6,000,000 31/03/2023 LUF Procure separate works packages 7,500,000 31/03/2023 Digital Connectivity Multi-Lot 18,000,000 31/03/2023 Gilmourton Play Area TBC 31/03/2023 13 Blocks, East Kilbride TBC 31/03/2023 Abington Landscape works TBC 31/03/2023 Antrim Lane/ Roselea Street - Create Car Park Spaces TBC 31/03/2023 Avon bridge Works TBC 31/03/2023 Better Points behaviour change to support walking, cy- cling and public transport TBC 31/03/2023 Braidwood Play Area TBC 31/03/2023 Bridge maintenance TBC 31/03/2023 Burnhill Growing Area TBC 31/03/2023 Cashless Catering Solution TBC 31/03/2023 Cathkin Relief Road Part 1 and 2 claims will be continu- ing into 2022-2023 TBC 31/03/2023 Chatelherault Allotment Site TBC 31/03/2023 Community Solar PV, Battery Storage, EV Charging and Inverter(s) to Calderwood Primary School, High Blantyre Primary School and Deer Park Sheltered Housing TBC 31/03/2023 CRM Replacement TBC 31/03/2023 Cruden Rural Properties C\dale- Struct Repairs & Ext Refurb incl Ext Wall Instal TBC 31/03/2023 Cuningar Loop - Phase 3 Site Investigations and Ena- bling works TBC 31/03/2023 225
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Project Estimated value £ Estimated award date Cunningar Loop construction works TBC 31/03/2023 Daer Bridge – refurbishment and repair TBC 31/03/2023 Debt Management & Diligence Services TBC 31/03/2023 Difficult access Principal Inspections TBC 31/03/2023 Drone footage TBC 31/03/2023 Duke St Car Park Structural and drainage appraisal TBC 31/03/2023 East Kilbride - Street Lighting - Anderside, East Kilbride and Cochrane Street, Strathaven TBC 31/03/2023 EK- High Blantyre feasibility study TBC 31/03/2023 EK Package 98 Retender TBC 31/03/2023 EK Town Centre - The Zone TBC 31/03/2023 Engineering Inspection and Insurance TBC 31/03/2023 Framework for Provision of Temporary Traffic Manage- ment TBC 31/03/2023 Glenburn Primary Outdoor Play TBC 31/03/2023 Halfway Play Area re-design TBC 31/03/2023 Hamilton - Car Parking Resurfacing - Woodland Ter- race TBC 31/03/2023 Hamilton - External lighting - Logan Street, Blantyre TBC 31/03/2023 Highstonehall Road / Woodfoot Rd / Laighstonehall Road, Hamilton - junction alterations TBC 31/03/2023 Honeycomb Place, Netherburn - Create Car Park Spaces TBC 31/03/2023 Hot Composters TBC 31/03/2023 Industrial Retrofit Feasibility TBC 31/03/2023 Industrial Retrofit works TBC 31/03/2023 infrastructure improvements and signage along the Clyde Valley Tourist route TBC 31/03/2023 Kyle Court, Cambuslang - Upgrade of Communal Areas TBC 31/03/2023 226
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Project Estimated value £ Estimated award date Lanark Racecourse master plan TBC 31/03/2023 Lanark Rural Business space construction TBC 31/03/2023 Langlands / SLC land suypply market report update TBC 31/03/2023 Langlands technical studies / design TBC 31/03/2023 Larkhall CGA - Masterplanning TBC 31/03/2023 Larkhall CGA - Site Investigations and Enabling works TBC 31/03/2023 LEADER community engagement on opportunity and needs study on community rural tourism TBC 31/03/2023 LEADER evaluation study TBC 31/03/2023 LEADER study and feasibility on community run rural electric car and bike pool TBC 31/03/2023 Local Transport Strategy / Cycling Strategy TBC 31/03/2023 M74 Junction 7 / A72, Larkhall - Signalisation TBC 31/03/2023 McKirdy Park TBC 31/03/2023 Monthly Window Cleaning Internal/External at 12 Loca- tions TBC 31/03/2023 Mousemill Road, Kirkfieldbank wall replacement TBC 31/03/2023 Newcross centre - roof works TBC 31/03/2023 Old Mill Road, Newton - junction alteration TBC 31/03/2023 Protective Marketing TBC 31/03/2023 Removal and Disposal of Mixed Metals TBC 31/03/2023 Removal and Disposal of Mixed Wood TBC 31/03/2023 Safety Management Software, including Auditing & Ac- cident software TBC 31/03/2023 Salary Sacrifice for low emission vehicles TBC 31/03/2023 Scogton Bridge - refurbishment and repair TBC 31/03/2023 Servicing and Maintenance of Lighting control systems at various locations TBC 31/03/2023 227
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Project Estimated value £ Estimated award date Servicing and Maintenance of Nurse Call Systems Kirk- ton Meldrum and McKillop TBC 31/03/2023 Servicing and maintenance of warden call system TBC 31/03/2023 SLC Wide - Area Regeneration including Home Loss - TBC 31/03/2023 South Lanarkshire Council Active Travel Infrastructure Optioneering TBC 31/03/2023 Specialist water treatment contract at Headquarters TBC 31/03/2023 Springhall Cage Additional Play TBC 31/03/2023 St Kenneth’s Primary Outdoor Play TBC 31/03/2023 St Vincent’s Primary Outdoor Play TBC 31/03/2023 Stewartfield Way Transport Capacity OBC TBC 31/03/2023 Stonefield/Burnbrae/Kelvin Gardens - Veranda Refur- bishment TBC 31/03/2023 Strahaven Rd / Mill Rd Traffic Signalisation and Gateside St / Johnstone Road Traffic Signalisation TBC 31/03/2023 Supply and Delivery of Grounds Maintenance Materials TBC 31/03/2023 Supply, Delivery and Installation of Audio Visual Equip- ment TBC 31/03/2023 Supply, Installation , Support & Maintenance of a Door Entry System in Council Offices TBC 31/03/2023 Supply, Maintenance and Monitoring of Network Hard- ware and Supply of ad-hoc IP Handsets TBC 31/03/2023 Symington Play Area TBC 31/03/2023 Tanker Applied Roads Surface Coatings Contract TBC 31/03/2023 Thankerton Boat Bridge Scour protection TBC 31/03/2023 Town Centres - Visioning project 1 TBC 31/03/2023 Town Centres - Visioning project 2 TBC 31/03/2023 Various Properties – Hawkwood Terrace and Skylaw Terrace, Forth - EWI TBC 31/03/2023 Various Properties - St Leonards, EK - Re-roofing & Ex- ternal Wall Insulation TBC 31/03/2023 Wellhall Rd / Woodfoot Rd / Hillhouse Rd Dual Rounda- bouts TBC 31/03/2023 228
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Project Estimated value £ Estimated award date Youth Guarantee Service TBC 31/03/2023 2 - 10 Murray Square TBC 01/04/2023 Maintenance Of Cold Water Booster Pumps Pressuri- sation Units and Heating Pumps TBC 01/04/2023 Servicing and maintenance of lighting control systems at various locations TBC 01/04/2023 Almada Tower - EM Lighting TBC 02/04/2023 An audit of infrastructure TBC 03/04/2023 Bat Surveys/PRAs TBC 04/04/2023 Bin store refurbishment 20 & 22 Fernbrae Avenue & 113 Castlefern Road TBC 05/04/2023 Blairbeth & Spittal TBC 06/04/2023 Bosfield Place Sheltered Housing Complex TBC 07/04/2023 Brackenridge Road, Blackwood TBC 08/04/2023 Calderwood Multi-Storeys Heating Replacement TBC 09/04/2023 Camelon Crescent, Blantyre TBC 10/04/2023 Camnethan Street, Stonehouse TBC 11/04/2023 Carbon Reduction - Climate Change Works TBC 12/04/2023 Contract Consultancy in support of CorVu Software (Council¿s Performance Management System) TBC 12/04/2023 CEEF 22-23 TBC 13/04/2023 Churchill Crescent Bothwell TBC 14/04/2023 Clyde, Calder & White Cart Towers, EK - Internal Deco- ration and Flooring HOD010360 TBC 15/04/2023 Clydesdale Homelessness Facility TBC 16/04/2023 Davaar Sheltered Housing TBC 17/04/2023 Donaldson Road Area, Burnbank TBC 18/04/2023 Dunlop, Lister & Fraser River Tower - EM Lighting TBC 19/04/2023 229
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Project Estimated value £ Estimated award date East Kilbride Package 98 TBC 20/04/2023 Eddlewood Deck Access Blocks Phase 1 TBC 21/04/2023 Energy Efficiency Framework for Consultancy TBC 22/04/2023 Farmecross, Rutherglen TBC 23/04/2023 Fernbrae Avenue, Rutherglen TBC 24/04/2023 Fire Risk Assessment - Remedial Works - Multi Stories TBC 25/04/2023 Industrial Washing Machine and Maintenance Contract 50,000 26/04/2023 Fire Risk Assessment - Remedial Works - Non Housing TBC 26/04/2023 George Court area, Burnbank TBC 27/04/2023 Green Belt Review TBC 29/04/2023 Repave Contract 3,000,000 30/04/2023 Headhouse Court Sheltered Housing TBC 30/04/2023 High School Expansion - City Deal Funded - 4 Schools TBC 01/05/2023 Installation of CCTV In Lifts Within Multi Storey Blocks TBC 02/05/2023 Kilncroft Terrace Douglas (9 Blocks) TBC 03/05/2023 Kirkton Place, East Mains, East Kilbride TBC 04/05/2023 Lifecycle Programme for Primary Schools (20+ Pro- jects) TBC 07/05/2023 Lindsay House Replacement Project TBC 08/05/2023 Lock Up Refurbishment Various TBC 09/05/2023 West of Scotland Weather Partnership 8,500,000 15/05/2023 Margaretvale Sheltered Housing Complex TBC 15/05/2023 May Gardens Sheltered Housing TBC 16/05/2023 McLean Gardens Sheltered Housing Complex TBC 17/05/2023 230
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Project Estimated value £ Estimated award date Mechanical Engineering - Housing and non Housing Projects TBC 18/05/2023 Meikle Earnock, Hamilton TBC 20/05/2023 Mill Court, Rutherglen TBC 21/05/2023 New Footpath inc Lighting - Glengonnar Crescent, Abington TBC 22/05/2023 One-off Roofing Works TBC 24/05/2023 Patrickholm Avenue, Stonehouse TBC 25/05/2023 Play Sufficiency Assessment TBC 26/05/2023 Prioritised Investment Fund TBC 27/05/2023 Professional Services Framework for Consultancy TBC 28/05/2023 Public CCTV - BT Resign Contract TBC 29/05/2023 Cashless Parking 100,000 30/05/2023 Renewal of Communal Heating System - Various TBC 30/05/2023 Provision of Independent Advice and Support for ten- ants in South Lanarkshire 300,000 31/05/2023 Postal Goods and ServicesHybrid Mail - Offsite Solution 3,000,000 31/05/2023 Postal Services: Physical and Hybrid Mail 200,000 02/06/2023 Resurface footpaths at 1-3 Liddoch Way TBC 02/06/2023 Resurfacing Paths - Glenafeoch Road Carluke TBC 03/06/2023 Review of capacity for renewable development (in par- ticular windfarms) TBC 04/06/2023 Rorison Place, Ashgill TBC 05/06/2023 Rosebank Tower Cambuslang - Retaining Wall HOD011809 TBC 06/06/2023 Springhall Phases 3 & 4 (5 Blocks) TBC 07/06/2023 Springhall Phases 5 and 6 TBC 08/06/2023 Maintenance of Council Structures Framework 2,000,000 09/06/2023 231
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Project Estimated value £ Estimated award date St Leonards Crosswall TBC 09/06/2023 Sturtherhill Phases 1 -4 TBC 10/06/2023 Sustainability Fund - Feasibility Projects TBC 14/06/2023 Travelling Persons Sites TBC 15/06/2023 Udston Fabric works Phase 4 TBC 16/06/2023 Udston Phase 2 and 3 TBC 17/06/2023 Universal Free School Meals - 5 Priority Projects - Kitchen Extensions to Primaries TBC 18/06/2023 Various Blocks SLC Wide - Close Painting HOD011080 TBC 19/06/2023 Various Multi Storey Blocks TBC 20/06/2023 Video Entry Systems TBC 21/06/2023 Warden Call Systems TBC 22/06/2023 Westwood Square, East Kilbride - Environmental Im- provements HOD011359 TBC 23/06/2023 Wingate Park TBC 24/06/2023 Wyler Tower - EM Lighting TBC 25/06/2023 Hamilton CGA: FBC 6: Woodfoot Rd, Gateside St and Strathaven Rd Junctions TBC 26/06/2023 Supply and Delivery of Specialised Roads Cleaning Materials 50,000 30/06/2023 Provision of ICT Managed Security 300,000 30/06/2023 New Social Work Information System 1,700,000 30/06/2023 Salt for Winter Maintenance (Ref 29 17) Lot 2 (Bulk De- livery of Rock Salt to Depots 2,000,000 30/06/2023 Learning and development online system: Clyde Valley lead 500,000 31/07/2023 Reward and Recognition Voucher Scheme 200,000 11/08/2023 Supply and Delivery of Specialist Digital Paper 200,000 31/08/2023 Home Care Workforce Scheduling 2,000,000 02/09/2023 232
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Project Estimated value £ Estimated award date Supply and Delivery of UPVC Materials 100,000 30/09/2023 Supply of Fixings 100,000 30/09/2023 Supply of Sealants 100,000 30/09/2023 Publishing, Print, Design and Associated Services 400,000 30/09/2023 Supply, Implementation and Support of an Enterprise Mobile Technology Solution -Software solution 637,665 30/09/2023 Homeowners Building Insurance (Right to Buy) 4,000,000 30/09/2023 Supply, Delivery, Installation and Maintenance of Water Coolers / Mains Fed Coolers TBC 30/09/2023 Framework for Removals, Storage and Disposals - Lot 2 Commercial 120,000 07/10/2023 Landscape Development, Play, Recreation and Associ- ated Infrastructure Framework 12,000,000 07/10/2023 Supply and Support of Fixed Line Telephony Services (Lines and Calls) 2,598,209 10/10/2023 Maintenance of Public Space and Property Based CCTV Systems TBC 23/10/2023 Ground Investigation Framework 2,000,000 31/10/2023 In House Fuel Management System 100,000 30/11/2023 Supply, Delivery, Installation and Maintenance of the Corporate Multi Functional Device Hardware Fleet 1,393,625 31/12/2023 Maintenance, Storage, Erection and Dismantling of Festive Lighting 1,200,000 06/01/2024 Supply, Install and Maintenance of Standalone Small Telephone Systems and Ancillary Telephony Equip- ment 500,000 31/01/2024 Insurance Brokerage services 200,000 28/02/2024 Point to Point 100mb full duplex 50,000 31/03/2024 Legal Services Providers Framework 100,000 31/03/2024 WQ Management Services Including Legionella 100,000 31/03/2024 Travel Insurance 120,000 31/03/2024 Sewage Pump Maintenance 150,000 31/03/2024 Loss Adjusting Serrvices 200,000 31/03/2024 233
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Project Estimated value £ Estimated award date Supply and Support of Fleet Management System 300,000 31/03/2024 Supply, Implementation and Support of Fleet Manage- ment System 1,400,000 31/03/2024 Utilities - Electricity 12,500,000 31/03/2024 Fuel Cards and Associated Services TBC 31/03/2024 Gas Safety Management Audits TBC 31/03/2024 Hosted energy management software TBC 31/03/2024 Meter Administration Services (Street Lighting) TBC 31/03/2024 Double Glazed Units Supply and Delivery 2024 1,000,000 01/04/2024 Supply & Delivery of Groceries and Provisions 4,000,000 30/04/2024 Electrical Management Audits 2021-24 50,000 16/05/2024 Framework for the provision of Passenger Transport Services (ASN) 2020 16,000,000 30/06/2024 Care at Home Procured Service Arrangement 220,000,000 30/06/2024 Provision of Literacy, Numeracy, Health and Wellbeing Educational Assessment Resources 50,000 31/07/2024 Online Benefits Calculator 100,000 31/07/2024 Provision of a Sundry Debtors System 100,000 03/08/2024 Hamilton Community Growth Area Business Case 70,000 30/09/2024 Newton Community Growth Area Business Case 70,000 30/09/2024 Taxi - Behavioural Units & Early Learning Centres 100,000 31/10/2024 Maintenance of Power Wash Systems TBC 31/10/2024 Provision of vehicle inspection services TBC 31/10/2024 234
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Procurement Strategy – Update 1. Purpose of Report 1.1. The purpose of the report is to:- provide an update on progress in the Procurement Strategy Action Plan to March 2022 present the annual review of the Procurement Strategy for 2022/2023 present the Procurement Strategy Action Plan for 2022/2023 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the content of the report be noted 1recs] 3. Background 3.1. The Council’s Procurement Strategy 2020 to 2023 was approved by Executive Committee on 13 May 2020 and an update on progress with the Strategy Action Plan to September 2021 was noted by Finance and Corporate Resources Committee on 9 February 2022. 2022/2023 will be the final year of the current Procurement Strategy, with a full Strategy review required from 2023/2024 onwards. 3.2. In accordance with the Procurement Reform (Scotland) Act 2014, the Council must carry out an annual review of the Procurement Strategy. Progress on the delivery of the associated action plan is also reported at 6 monthly intervals to Finance and Corporate Resources Committee. 4. Procurement Strategy and Action Plan Update 2021/2022 4.1. The Procurement Strategy includes 7 key strategic objectives, which linked to key outcomes for the Procurement Service. An update on each of these objectives and evidence of progress in working towards these outcomes is included in Appendix 1 with highlights included below:- implementation of new Fair Work First criteria for appropriate contracts by March 2022 delivery of payment of Living Wage in all Social Care contracts, uplifted in April and December 2021 changes to Council Standing Orders on Contracts to extend Quick Quote arrangements with increased scope for local engagement under Community Wealth Building Strategy 20 235
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joint project with Sustainable Procurement Scotland to develop our prioritisation and sustainability tools and completion of the first draft of the Sustainable Prioritisation tool by March 2022 4.2. The Procurement Strategy Action Plan included specific projects for 2021/2022, in support of our strategic objectives. An update on progress across each of the actions to the end of March 2021 is provided in Appendix 2. 4.3. A total of 21 actions were included in the action plan for 2021/2022 and progress is summarised in the table below: Category Number Comment On hold 3 Action no longer scheduled for 2020/2021. Will be considered for inclusion in future year action plans. Red 8 Action not completed within timescale, will be carried forward to 2022/2023. Complete 10 Completed within timescale. Total 21 4.4. Supporting the Council’s response to and recovery from COVID-19 continued to impact on the allocation of resources to Procurement’s strategic objectives during 2021/2022. This included contract management, supplier relief and sourcing for unplanned requirements and latterly, supporting services to re-mobilise, including re- tendering for projects abandoned during the pandemic. Significant challenges with recruitment also impacted delivery in 2021/2022 and the relative inexperience of some of the team will continue to have an impact throughout 2022/2023. 5. Procurement Strategy 2020/2023 Review 5.1. The Council is required to review the Procurement Strategy annually and this is the second annual review of the Procurement Strategy 2020/2023. The updated Strategy is included in Appendix 3. 5.2. The key strategic objectives, listed below, have been reviewed and updated to reflect current priorities and emerging issues:- Compliance Value for Money Collaboration Contract and Supplier Management Fair Work First Sustainable and Ethical Community Wealth Building 5.3. A number of strategic objectives have been expanded during this review period, including:- updating Fair Work Practices to recognise Scottish Government’s new Fair Work First standards supporting the Council’s contract management approach, in recognition of challenging supply markets and inflationary pressures requiring supply chain transparency from contracts extended to include sanctioned countries and individuals 236
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working towards implementation of Oracle Fusion to transform the Council’s Procure to Pay process 6. Procurement Strategy Action Plan 2022/2023 6.1. Appendix 4 details the Procurement Strategy Action Plan proposed for 2022/2023. 6.2. These specific actions contribute towards the achievement of the procurement strategic objectives and include a focus on Sustainable and Ethical procurement and Community Wealth Building, reflecting the Council’s wider strategic objectives in this area. 6.3. The action plan also recognises the ongoing focus on supplier and contract management requirements following EU Exit and recovery from COVID-19, as wider economic and inflationary pressures impact on the Council’s contracts throughout 2022 and beyond. 6.4. Three of the actions on hold will be considered for future year action plans and this reflects the need to prioritise given the wider demands on the service. 7. Employee Implications 7.1. There are no employee implications. 8. Financial Implications 8.1. There are no direct financial implications associated with this report. 9. Climate Change, Sustainability and Environmental Implications 9.1. The Procurement Service are working with the Scottish Government’s Sustainable Toolkit, which aims to embed sustainable procurement into the Council’s procurement processes and monitors progress in achieving the Sustainable Procurement Duty, including Climate Change objectives. 10. Other Implications 10.1. The Procurement Reform (Scotland) Act 2014 requires any public organisation, which has an estimated total annual value of regulated procurement spend of £5 million or more, to prepare and publish a Procurement Strategy. An organisation must also review its Procurement Strategy annually and make such revisions as it considers appropriate for the purposes of the Act. The risk of non-compliance is mitigated by the proposals in this report. 11. Equality Impact Assessment and Consultation Arrangements 11.1. There is no requirement to carry out an equality impact assessment in terms of the proposals contained within this report. 11.2. Consultation on the revised Procurement Strategy and Procurement Strategy Action Plan for 2022/2023 has been carried out with the Procurement Network and all Resource Heads of Service. Paul Manning Executive Director (Finance and Corporate Resources) 5 August 2022 237
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Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Procurement Strategy 2020 to 2023, Executive Committee 13 May 2020 Procurement Strategy 2021/2022 update to September 2021, Finance and Corporate Resources Committee, 9 February 2022 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Name: Craig Fergusson, Head of Finance (Transactions) Ext: 4951 (Tel: 01698 454951) E-mail: craig.fergusson@southlanarkshire.gov.uk 238
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Appendix 1 Procurement Strategy 2020/2023 Key Objectives Objective Aim Outcome Progress Assessment of progress Compliance Ensure compliance with Procurement Regulations and the Council’s Standing Orders on Contracts Improve compliance and mitigate risk of contract challenge Procurement continue to monitor compliance with regulations and Standing Orders on Contracts across the Council, as evidenced by • Review of Standing Orders on Contracts for new Council Satisfactory 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 through a focused review of procurement spend • Management of price increase requests given inflationary pressures in market Satisfactory 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: • 93% participation in Scotland Excel frameworks • Increased levels of engagement with Scottish Procurement Alliance, Procurement for Housing and Hub South West Satisfactory Contract and Supplier Management Support Resources to take a proactive approach to contract and supplier management to achieve innovation and value in contract delivery 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: • Extensive liaison on contract delivery and supplier relief during Covid pandemic and EU Exit Satisfactory 239
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Appendix 1 • Improved levels of engagement with Social Care providers • Support for Resources on supply market shortages related to Covid, EU exit and Ukraine conflict. Fair Work Practices Work with suppliers to improve Fair Work Practices, including payment of the Living Wage and compliance with Council Charters Improved Fair Work Practices and Living Wage for those involved in delivery of Council contracts We continue to promote Fair Work Practices and payment of the Living Wage, as evidenced by: • Annual confirmation of payment of Living Wage in all Social Care contracts, including delivery of additional winter uplift in December 2021 • Implementation of Fair Work First recommendations from Scottish Government included in all appropriate tenders from April 2022. • Review of Scottish Government advice on Living Wage, now awaiting statutory guidance. Satisfactory 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 is working with the Scottish Government’s sustainable procurement toolkit, supported by Sustainable Procurement Scotland, including: • Use of the Flexible Framework to assess the organisational approach to sustainable procurement and monitor progress. • Completion of the Prioritisation tool to inform the Council’s priorities for sustainable outcomes for contracts Satisfactory 240
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Appendix 1 • Compliance with Scottish Government guidance on trade with Russia/Belarus. • Review of sustainability scoring recommendations for approval early 2022/2023. 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: • We continue to engage with local suppliers and SMEs to promote contract opportunities and our joint work in this area is continuing with the Supplier Development Programme and Economic Development partners. • A joint virtual Meet the Buyer event was held with North Lanarkshire Council in November 2021. • New arrangements to introduce Quick Quotes for works contracts to £2 million and extend the requirement for local bids from two to four approved by Executive Committee in September 2021, with a webinar for local firms held in February 2022. • Agreed funding for dedicated Community Benefit officer to be recruited in 2022/2023 Satisfactory 241
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Appendix 2 Procurement Strategy Action Plan 2021/2022 Action Strategic Objective Responsibility Timescale Status Update Review the sustainability requirements in contracts Sustainable and Ethical and Community Wealth Building Procurement 30 November 2021 Red Proposals are being developed to update the Council’s approach to sustainability scoring in contracts. Will be carried forward to 2022/2023. Slippage due to supporting the council’s COVID-19 response and recruitment challenges. Progress the Flexible Framework Sustainability action plan Sustainable and Ethical Procurement 31 March 2022 Complete The Procurement Network meeting in June 2021 focused on sustainability issues. Good progress is being made with Scottish Government Sustainable Procurement Toolkit with draft Prioritisation Framework completed by end March under Scottish Government mentoring arrangements with Sustainable Procurement Scotland. Preparation of category plans prioritising Social Care, ICT and Construction Compliance and Sustainable and Ethical Procurement and Resources 31 March 2022 On hold Will be considered for inclusion in future year action plans. Slippage due to supporting the council’s COVID-19 response and recruitment challenges. Introduce audit review arrangements as agreed by Corporate Management Team Compliance Procurement 31 December 2021 Complete Internal Audit has implemented a programme of procurement spot checks. Outcomes to be reported in 2022/2023. Review of operation of Quick Quote Compliance Procurement 31 December 2021 Complete Executive Committee September 2021 approved amendments to Standing Orders on Contracts to extend 242
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Appendix 2 Action Strategic Objective Responsibility Timescale Status Update operation of Quick Quote up to £2 million for works contracts: implementation of new arrangements completed. Webinar for local firms held February 2021. Launch Electronic Contract Management for Early Years and Care at Home contracts Contract and Supplier Management Procurement and Resources 31 March 2022 On hold Will be considered for inclusion in future year action plan. Slippage due to supporting the council’s COVID-19 response and recruitment challenges. Development of Procurement training modules Compliance Procurement and Personnel Services 31 March 2022 On hold Will be considered for inclusion in future year action plan. Slippage due to supporting the council’s COVID-19 response and recruitment challenges. Continue to monitor commodity and pricing pressures following EU Exit Contract and Supplier Management Procurement and Resources 31 March 2022 Complete Procurement continue to monitor challenging pricing and supply chain pressures arising from EU Exit and subsequently, the Ukraine conflict and impact of Russian sanctions, principally in food and construction commodities, with client Resources. Continue to manage supplier and supply chain impacts arising from COVID-19 Contract and Supplier Management Procurement and Resources 31 March 2022 Complete Procurement continue to support client Resources with supply chain issues arising post pandemic and delivery of social care sustainability arrangements for Health and Social Care Partnerships (HSCP). Develop Benefit Tracking framework Value for Money Procurement 31 March 2022 Red Development of a new Benefit Tracking framework is within the scope of the Procured Spend review and a Scotland Excel 243
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Appendix 2 Action Strategic Objective Responsibility Timescale Status Update deliverable. However, priority is to identify revenue budget savings. Will be carried forward to 2022/2023. Slippage due to supporting the Council’s COVID- 19 response and recruitment challenges. Support Scotland Excel’s savings review project Value for Money Procurement and Resources 31 March 2022 Complete The project is ongoing, with Scotland Excel staff developing savings proposals working with the Procurement team and Resource contract managers. Establishment of a Community Wealth Building Local Spend working group Community Wealth Building Procurement, Economic Development and Supplier Development Programme 30 June 2021 Complete A local spend working group has been established, with updates provided through the Community Wealth Building Strategy Action Plan to the Commission. Complete spend and local market analysis to identify opportunities for local growth Community Wealth Building Procurement, Economic Development and Supplier Development Programme 30 November 2021 Complete Local Spend analysis report provided to Community Wealth Building Commission with follow-up actions identified. Identify common areas of interest with other anchor organisations Community Wealth Building Procurement and Economic Development 31 March 2022 Red NHS completing a self- assessment tool with further discussions to take place. Awaiting confirmation of external participants. Will be carried forward to 2022/2023. Implementation of Community Benefit monitoring arrangements and assessment of wider resourcing requirements Community Wealth Building Procurement and Resources 31 March 2022 Red Cenefits (CB monitoring software) in place for City Deal contracts and consideration being given to implementation for Council CBs. This action is within the remit of the new 244
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Appendix 2 Action Strategic Objective Responsibility Timescale Status Update Community Benefits officer post and will be re-scheduled for Year 2 of the Community Wealth Building action plan. Will be carried forward to 2022/2023. Slippage due to supporting the council’s COVID-19 response and recruitment challenges. Review the scope of the Community Benefits menu and minimum scoring Community Wealth Building Procurement / Employability Team / Community Engagement Team / Resources 31 March 2022 Red This action is within the remit of the new Community Benefits officer post and will be carried forward to 2022/2023. Slippage due to supporting the council’s COVID-19 response and recruitment challenges. Identify specific community benefits that can be delivered from procurement Community Wealth Building Procurement / Community Participation and Engagement / Employability 31 March 2022 Red The Community Engagement Team have commenced a project on Community Wish-lists and this action will be carried forward to 2022/2023. Slippage due to supporting the council’s COVID-19 response and recruitment challenges. Supplier engagement at national Meet the Buyer event Community Wealth Building / Sustainable and Ethical Procurement, Economic Development and Supplier Development Programme 30 June 2021 Complete The Council participated in the National Meet the Buyer event in June 2021 and a pan Lanarkshire Meet the Real Buyer event was held on 30 November 2021. Review standing orders on contracts and evaluation criteria to facilitate more local spend Community Wealth Building Procurement and Legal Services 31 December 2021 Red Review of Standing Orders on Contracts has approved new Quick Quote arrangements and increased the minimum number of local bidders from two to four. 245
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Appendix 2 Action Strategic Objective Responsibility Timescale Status Update Review of contract evaluation criteria to be carried forward to 2022/2023. Slippage due to supporting the council’s COVID- 19 response and recruitment challenges. Training on public sector procurement and completion of gap analysis on current capability Community Wealth Building SDP and Procurement 31 March 2022 Red A bespoke event on the changes to Quick Quote processes was delivered in February 2022. Suitable contracts will continue to be identified for bespoke engagement and training events, to be delivered by Supplier Development Programme. Analysis of local supplier activity and opportunities using Grow Local has been completed and cascaded to relevant purchasing resources. Gap analysis will be carried forward to 2022/2023. Slippage due to supporting the council’s COVID-19 response and recruitment challenges. Review and implement recommendations from Scottish Government’s “Fair Work First” guidance Fair Work Practices Procurement 31 July 2021 (Revised March 2022) Complete Scottish Government guidance on Fair Work First has been incorporated to Council tendering arrangements within the target timescale. 246
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Appendix 3 Procurement Strategy 2020-2023 Reviewed 2022/2023 247
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Appendix 3 Procurement Strategy 2020-2023 Contents Section 1 Introduction by Executive Director of Finance and Corporate Resources Section 2 Purpose and delivery of the Strategy Section 3 National and local context Section 4 Strategic objectives 248
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Appendix 3 Section 1: Introduction by Executive Director of Finance and Corporate Resources This Strategy sets out the vision for Council procurement for 2020-2023, demonstrating our commitment to achieving value for money and contributing to national and local priorities. The Council’s vision is to “improve the quality of life for everyone in South Lanarkshire” and the works, supplies and services procured by the Council have a direct impact on delivery of our services, from social care and educational supplies to new build housing. The Council’s spending power can play a key role in influencing a more prosperous South Lanarkshire, including promoting jobs and growth, fair work practices and driving innovation from our suppliers. Our aim is to build on achievements delivered by the Council’s previous procurement strategies and embed the principles of public procurement: equal treatment, transparency, competition and accountability. This strategy will be reviewed annually, and our outcomes monitored in the annual procurement report. The strategic objectives will promote best practice in procurement activity across the Council, supporting delivery of high quality, sustainable and efficient services from our suppliers. I recognise the important contribution from our Procurement Service, including supporting the Council and sustainability of our suppliers during Covid-19 recovery, changes to procurement arrangements following EU Exit and the ongoing challenges in supply markets. Inflationary pressures are likely to prove significant over the coming months and Procurement will support the council’s response in managing the pressure on Resource budgets. Supporting the Council and our local economy during these economic circumstances will be challenging and our strategic objectives reflect the wider remit for public procurement in responding to the Climate Change Emergency and Community Wealth Building. We will continue to focus on delivery of quality and value for money procured services while supporting local supply chains and quality employment opportunities. The establishment of a new National Care Service by the end of the parliamentary term is likely to impact the nature of the procurement work undertaken by the council with officers keeping up to date with emerging guidance from Scottish Government. In a broader sense, we will actively contribute to discussions with the SG about the nature and role of any new NCS and the ongoing role of local government. Paul Manning Executive Director of Finance and Corporate Resources South Lanarkshire Council 249
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Appendix 3 Section 2: Purpose and Delivery of Strategy Under the Procurement Reform (Scotland) Act 2014, the Council is required to publish a procurement strategy and review the objectives and outcomes annually. The strategy should establish the Council’s strategic approach to procurement, setting out how we will deliver value for money and support delivery of national outcomes and the objectives set out in the Council’s strategic plan. The Council must also demonstrate how we will deliver the wider social, economic and environmental aims of procurement, as required by the sustainable procurement duty, while ensuring compliance with statutory duties and the Council’s Standing Orders on Contracts. The purpose of our procurement strategy is to: • Set out clear objectives and provide a monitoring framework for reporting on our achievements and outcomes • Focus on people, processes and systems to deliver an effective and continually improving procurement service The Council spends in the region of £350m on externally procured goods, supplies and services annually, with significant areas of expenditure including social care (£110m) and construction and property (£110m). Social Care 30% Construction & Property 30% Other 15% Leisure 6% Transport & Vehicles 5% IT 5% Waste 4% Utilities 3% Food 2% South Lanarkshire Council Annual procurement spend 250
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Appendix 3 Section 3: National and Local context Public sector procurement in Scotland is valued at more than £11 billion per annum and the profile and remit of procurement activity continues to evolve and change. The overarching aim of public sector procurement continues to be delivery of public value, as set out in the Scottish Model of Procurement below: The Council operates within the Scottish Government’s Procurement Journey , which ensures openness and transparency in our approach and clarity for stakeholders and suppliers. National Outcomes The National Performance Framework sets out how local government can contribute to achievement of National Outcomes. The framework aims to implement sustainable procurement and obliges the Council to consider how procurement will improve society, the economy and environment under the “Sustainable Procurement Duty”. The Sustainable Procurement Duty is expected to further develop in accordance with the Climate Change Emergency declared by the Scottish Government. Local Priorities The procurement strategy allows the Council to set out how procurement activity will contribute to the Council and Community Planning Partnership’s wider priorities and objectives, as set out in the Council plan "Connect". Procurement is at the centre of the Council’s Value of being “accountable, effective, efficient and transparent” and contribute to many of the Council’s strategic ambitions, including: • Achieving results through leadership, good governance, and organisational effectiveness • Promoting economic growth and tackle disadvantage • Getting it right for children and young people • Improving health, care and wellbeing 251
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Appendix 3 Section 4: Strategic Objectives The Council has identified seven strategic objectives to support the Procurement Strategy. In this section, we set out how we will achieve each objective and what our target outcome will be. Compliance Value for Money Collaboration Contract and Supplier Management Fair Work First Sustainable and Ethical Community Wealth Building 252
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Appendix 3 OBJECTIVE 1 Compliance AIM Ensure compliance with Procurement Regulations and the Council’s Standing Orders on Contracts How to achieve Be open and transparent in our approach and monitor awareness of, and compliance, with standards across the Council Procurement team members are capable, confident and empowered to support procurement activity across categories. Drive improvement in Procurement Team capability through the Scottish Procurement Competency Framework Procurement processes and systems are efficient, cohesive, streamlined and fit for purpose Monitor non-contractual spend and work with Resources to improve compliance Monitor performance against target of paying invoices within 30 days Quarterly meetings of the Council’s Procurement Network to develop and review processes to ensure consistent standards council wide Aim for continual improvement in Scottish Government’s Procurement and Commercial Improvement Programme Contribute to the Council’s Oracle Fusion project to secure improvements in procure to pay processes Outcome Improve compliance and mitigate risk of contract challenge OBJECTIVE 2 Value for Money AIM To secure Best Value, balancing cost and quality of service and support the Council in achieving budget savings How to achieve Support Resources in contract management, in recognition of challenging supply markets and inflationary pressures. Recognise demand and cost drivers and work with Resources in identifying opportunities for efficiencies Consider Whole Life Costing approach to embed sustainability in long term value decisions Outcome Improved Value for Money in support of the Council's Financial Strategy 253
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Appendix 3 OBJECTIVE 3 Collaboration AIM Identify and influence collaborative opportunities to work with public partners and drive value through the power of public sector procurement How to achieve Engage with procurement partners to identify collaborative opportunities and influence development of collaborative working Outcome Improved levels of collaborative activity and delivery of efficiencies OBJECTIVE 4 Contract and Supplier Management AIM Support Resources to take a proactive approach to contract and supplier management to achieve innovation and value in contract delivery How to achieve Engage with suppliers to monitor contract performance and drive improvements and efficiencies Implement electronic process for contract and supplier management Outcome Ensure suppliers meet contractual obligations, drive improvements in supplier performance and achieve efficiency improvements OBJECTIVE 5 Fair Work First AIM Work with suppliers to implement Fair Work First, including payment of the Living Wage and compliance with Council Charters How to achieve Embed Fair Work First and Living Wage as standard and monitor compliance with Charters in all relevant contracts. Outcome Improved Fair Work Practices and Living Wage for those involved in delivery of Council contracts OBJECTIVE 6 Sustainable and Ethical AIM Secure wider social, economic and environmental benefits through contracts as set out in the Sustainable Procurement Duty How to achieve Support the Council’s response to the Climate Change Emergency by improving environmental outcomes from procurement 254
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Appendix 3 Embed sustainability measures in procurement through use of Scottish Government’s Sustainability Toolkit and life cycle costing Require supply chain transparency from contractors to ensure appropriate ethical standards, Modern Slavery and sanctioned countries and individuals. Work with Police Scotland in prevention of Fraud and Disruption of Serious and Organised Crime Outcome Meet the Sustainable Procurement Duty OBJECTIVE 7 Community Wealth Building AIM 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 How to achieve Expand the capability of local businesses and social enterprises to bid for public sector contracts with support from economic development and procurement teams Build on our knowledge of market supply through further analysis of local capacity to identify new opportunities for local business to grow Increase levels of pre-market engagement before commissioning to shape the preparation of tender requirements and prepare potential local bidders Increase promotion of tender opportunities to local sectors Encourage local suppliers to bid for Scotland Excel contract opportunities to increase local business share of collaborative contract spend by all Scottish local authorities Work with anchor institutions to explore further opportunities for more local spend Maximise our approach to community benefits Ensure contractors deliver social investment Review procurement practices to deliver more local spend where possible Outcome Ensure the spending power of the Council and Community Benefits contribute towards Community Wealth and achieve National Outcomes 255
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Appendix 3 Procurement Strategy: Monitoring Framework Delivery of the procurement strategy will be supported by an annual action plan. Each year the annual plan will be reviewed with new actions identified relevant to delivery of the strategic objectives. A reporting and monitoring framework ensure high levels of governance surround the delivery of the procurement strategy. In addition to an annual review of the procurement strategy, the Procurement Service will deliver the following: • Annual Service Planning exercise: to plan all Procurement activity with Resources for the forthcoming year • Procurement Update, including Strategic Action Plan, Performance KPIs and High Risk High Value projects: subject to a six monthly update report to the Council’s Corporate Management Team • Quarterly Procurement Updates: summarising progress across procurement activity to Resource Management Teams • Resource committee reports on Contracts Awarded: every six months in accordance with Standing Orders on Contracts • Annual Procurement Report: published annually in accordance with legislative requirements and approved by Committee 256
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Appendix 4 Procurement Strategy Action Plan 2022/2023 Action Strategic Objective Responsibility Timescale Sustainable Procurement toolkit progress: update Flexible Framework 6 monthly Sustainable and Ethical Procurement 31 March 2023 Sustainable Procurement: complete Prioritisation Framework consultation with Resources and complete pilot Sustainability Test Sustainable and Ethical Procurement 30 June 2022 Continue to monitor commodity and pricing pressures following EU Exit, Covid 19 recovery and general economic impacts Contract and Supplier Management Procurement and Resources 31 March 2023 Support Scotland Excel’s savings review project and consider Benefit Tracking framework Value for Money Procurement and Resources 31 March 2023 Implementation of Community Benefit monitoring arrangements and review the scope of the Community Benefits menu. Including scope for Community Wish-lists Sustainable and Ethical / Community Wealth Building Procurement / Community Engagement Team / Resources 31 March 2023 Progress the action plan for the Spend Pillar to support the delivery of the objectives of the Community Wealth Building strategy. Community Wealth Building Procurement / Economic Development 31 March 2023 Monitor the impact of new Fair Work First framework and monitor Scottish Government guidance on Living Wage Fair Work First Procurement 31 March 2023 Monitor implications of introduction of National Care Service on Social Care commissioning arrangements and implement revised contractual arrangements in accordance with SPPN7 Contract and Supplier Management Procurement and HandSCP 31 March 2023 Support Oracle Fusion project to transform Procure to Pay systems Compliance Procurement 31 March 2023 257
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Notification of Contracts Awarded: 1 October to 31 March 2022 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide notification to Committee, in accordance with Standing Orders on Contracts, of contracts awarded by Finance and Corporate Resources during the period 1 October 2021 to 31 March 2022 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that details of the contracts awarded be noted. [1recs] 3. Background 3.1. It is a requirement of Clauses 21.8 and 22.5 of the Standing Orders on Contracts that details of the acceptance of all tenders above £50,000 be reported retrospectively to the relevant Committee for noting, other than those under Clause 21.3 where the award is not the lowest in a price only tender, or costs exceed the approved financial provision. In these instances, a report is submitted to the appropriate Committee and subsequent authority to award is granted by that Committee. 4. Contract Awards 4.1. Contracts awarded for the period 1 October 2021 to 31 March 2022, on the basis of lowest offer and/or most economically advantageous offer submitted, is provided at Appendix 1. 5. Employee Implications 5.1. Contracts management, including performance appraisal, will be undertaken by both the main service user and the Procurement Team. 6. Financial Implications 6.1. Appropriate budgetary provision is available for each of the contracts awarded. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no Climate Change, Sustainability and Environmental Implications arising from the information presented in this report. 21 259
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8. Other Implications 8.1. There are no direct risks or implications for sustainability in terms of the information contained in this report. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy nor recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in this report. Paul Manning Executive Director (Finance and Corporate Resources) 9 August 2022 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous Reference Finance and Corporate Resources Committee, 9 February 2022 List of Background Papers Standing Orders on Contracts Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Emma Smith, Corporate Procurement and Transactions Manager Ext: 5329 (Tel: 01698 455329) E-mail: emma.smith@southlanarkshire.gov.uk 260
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Appendix 1 Finance and Corporate Resources Contracts Awarded by Finance and Corporate Resources over £50,000 in value Contractor Contract Reference Value of Contract Awarded Date of Award Brief Description Contract Period Physicare SLC/PS/FINCOR/20/062 £400,000.00 08//02/2022 Provision of Physiotherapy Services 01/03/2022 - 28/02/2023 Impact Arts (Projects) Limited SLC/PS/FINCOR/20/114 FW £28,000,000.00 31/01/2022 Training and Employability Framework 31/01/2022 - 30/01/2026 Right Options Partners Ltd Routes To Work South Standguide Ltd NHS Lanarkshire (Salus) Tigers STA Ltd Enable Scotland Experiential Play Ltd Gtg Training New College Lanarkshire Next Generation Training Ltd Peopleplus Group Ltd Qualitas International Skills Exchange Scio Street League The Skills Network Ltd Verg (Vocational Education Resource Group) Ltd Access To Industry Ltd 261
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Contractor Contract Reference Value of Contract Awarded Date of Award Brief Description Contract Period Maximus UK Services Ltd SCVO (Scottish Council for Voluntary Organisations) South Lanarkshire College Princes Trust The Salvation Army Trustee Company Triage Central Limited South Lanarkshire College SLC/PS/FINCOR/20/114 MC £189,899.00 27/01/2022 ACE Rural - Access Choices & Employability 01/04/2022 - 31/03/2023 Royal Bank of Scotland SLC/PS/FINCOR/20/170 £440,313.00 18/10/2021 Banking services 01/04/2022 - 31/03/2029 Softcat PLC SLC/PS/FINCOR/21/014 £50,650.00 27/01/2022 VMWare Workspace ONE Advanced Licences 2022-2023 28/01/2022 - 27/01/2023 Pure Audio Visual Ltd SLC/PS/FINCOR/21/043 £400,000.00 02/02/2022 Supply, Installation, Support and Maintenance of AV Equipment 07/02/2022 - 06/02/2027 Evolutionary Systems Comp Ltd SLC/PS/FINCOR/21/089 £3,373,460.00 25/02/2022 Oracle Fusion SI partner 28/02/2022 - 27/09/2023 Parentpay Ltd SLC/PS/FINCOR/21/097 £447,112.00 28/03/2022 Online School Payments System 01/04/2022 - 31/03/2027 A.M.1. Consulting Ltd SLC/PS/FINCOR/21/099b £333,000.00 11/03/2022 Oracle Fusion Implementation Programme Management 24/01/2022 - 27/09/2023 South Lanarkshire College SLC/PS/FINCOR/21/106 £150,000.00 29/11/2021 Rural Academy 01/10/2021 262
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Contractor Contract Reference Value of Contract Awarded Date of Award Brief Description Contract Period - 31/03/2022 SCVO SLC/PS/FINCOR/21/107 £405,000.00 22/12/2021 Long Term Unemployed Programme 01/12/2021 - 31/03/2022 SCVO SLC/PS/FINCOR/21/108 £320,000.00 22/12/2021 Enhanced Volunteering and placement programme for Youth Guarantee 01/12/2021 - 31/03/2022 ESRI (UK) Ltd SLC/PS/FINCOR/21/112 £178,155.28 30/03/2022 ArcGIS Licences and Maintenance 01/04/2022 - 31/03/2025 Securigroup Services Ltd SLC/PS/FINCOR/21/134 £118,231.25 08/03/2022 Security Services for Council Offices 01/04/2022 - 30/09/2022 Risk Management Partners Ltd SLC/PS/FINCOR/21/139 £59,357.75 31/03/2022 Travel Insurance 01/04/2022 - 31/03/2024 263
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Contract Extensions over £50,000 in value Contractor CRN Value of Contract Awarded Date of Extension Brief Description Contract Extension period Canon UK Ltd SLC/PS/FINCOR/15/013 £664,198.40 03/02/2021 Provision of Managed Print Service for the South Lanarkshire Council Corporate Print Section 31/12/2021 - 31/12/2023 Aon UK Ltd SLC/PS/FINCOR/16/098 £95,000.00 22/02/2022 Insurance broking services 31/03/2022 - 31/03/2024 Civica UK Ltd SLC/PS/FINCOR/15/058 £138,113.00 14/10/2021 Supply, Implementation and Support of the Tranman Fleet Management System 31/03/2022 - 31/03/2024 Canon UK Ltd SLC/PS/FINCOR/15/076 £5,600,000.00 06/02/2022 Supply, Delivery, Installation and Maintenance of the Corporate Multi-Functional Device Hardware Fleet Incorporating Maintenance of a Print Management Software Platform. 05/02/2022 - 05/08/2022 Aps Group (Scotland) Ltd SLC/PS/FINCOR/18/167 £60,000.00 04/02/2022 Blue Badge Printing and Fulfilment Services 04/02/2022 - 04/02/2023 Burness Paull SLC/PS/FINCOR/18/146 £100,000.00 31/03/2022 Legal Services Providers Framework 31/03/2022 - 31/03/2024 Ledingham Chalmers LLP SLC/PS/FINCOR/18/146 Mitchells Roberton SLC/PS/FINCOR/18/146 Morisons Solicitors SLC/PS/FINCOR/18/146 TC Young Solicitors SLC/PS/FINCOR/18/146 Aero Healthcare SLC/PS/FINCOR/18/114 £240,000.00 25/03/2022 Mini Competition for the Supply and Delivery of First Aid Materials 31/03/2022 - 31/03/2023 264
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Contractor CRN Value of Contract Awarded Date of Extension Brief Description Contract Extension period EDF Energy Customers Plc SLC/PS/FINCOR/18/116 £14,000,000.00 02/04/2020 Utilities - Electricity 31/03/2022 - 31/03/2024 SCVO SLC/PS/FINCOR/21/107 £405,000.00 23/02/2022 Long Term Unemployed Programme 31/03/2022 - 31/12/2022 SCVO SLC/PS/FINCOR/21/108 £320,000.00 21/02/2022 Enhanced Volunteering and placement programme for Youth Guarantee 31/03/2022 - 31/12/2022 Fujitsu Services SLC/PS/FINCOR/20/226 £362,883.08 24/02/2022 ConSol Annual Maintenance and Technical Support 31/03/2022 - 31/03/2023 Voluntary Action South Lanarkshire SLC/PS/FINCOR/20/197 £400,000.00 31/03/2022 Youth Guarantee Service 31/03/2022 - 31/03/2023 265
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Early Retirement, Voluntary Severance and Switch 2 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise on early retirements, voluntary severances, re-employment of early retirees and re-deployments during the period 1 October 2021 to 31 March 2022 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the early retirements, voluntary severances, re-employment of early retirees, and redeployment of employees on the Switch 2 register during the period 1 October 2021 to 31 March 2022 be noted. [1recs] 3. Background 3.1. The Council analyses the number and associated costs of employees being released through early retirement and voluntary severance. This forms part of the ongoing monitoring process derived from the Audit Scotland report “Bye now pay later”. This report provides information on the Council’s position for the 6-month period 1 October 2021 to 31 March 2022. 4. Current Position Early Retirements (Efficiency of the Service/Voluntary Redundancy) and Voluntary Severance 4.1. During the period, no early retirements on the grounds of efficiency of the service; voluntary redundancy or voluntary severance were granted. This represents no change compared to the previous 6-month period. 4.2. Annual Trend Analysis Annual Period 1/4/16- 31/3/17 1/4/17- 31/3/18 1/4/18- 31/3/19 1/4/19- 31/3/20 1/4/20- 31/3/21 1/4/21- 31/3/22 No. of Early Retirements/ Voluntary Severances 4 12 0 1 0 0 4.2.1 The table above shows the annual trend analysis of early exits granted due to efficiency of the service; voluntary redundancy or voluntary severance; and shows that there has been no change compared to the previous year. 22 267
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5. Early Retirements – Ill Health 5.1. In terms of early retirement on the grounds of ill-health, there are no capitalisation costs to the Council. During the 6-month period, the following ill-health retirements were approved: Resource No. of Early Retirements on ill health grounds Community and Enterprise/ Finance and Corporate * 13 Education 4 Social Work/Housing and Technical 8 Total 25 * In terms of data protection, Resources with fewer than 2 employees have been merged 5.2. The Local Government Pension Scheme (LGPS) regulations allow for 2 tiers of ill health retirement in situations where the member’s ill-health or infirmity of mind or body renders them permanently incapable of discharging efficiently the duties of their current employment. Tier 1 relates to members with no reasonable prospect of obtaining gainful employment before their state pension age. Tier 2 relates to members with a reasonable prospect of obtaining gainful employment before their state pension age. 5.3. During the 6-month period, 25 of the 30 ill health retirement requests made, were granted under the provisions of tier 1 and tier 2 of the Local Government and Scottish Teachers’ Pension Schemes. Five applications resulted in no award being granted. 5.4. Annual Trend Analysis Annual Period 1/4/17- 31/3/18 1/4/18- 31/3/19 1/4/19- 31/3/20 1/4/20- 31/3/21 1/4/21- 31/3/22 No. of ill-health retirements 37 46 37 43 46 5.4.1. During the period 1 April 2021 to 31 March 2022, the number of ill health retirements granted increased by 3 compared to the previous year. This increase is due to the number of employees with serious medical conditions who met the criteria for ill health retirement. 6. Re-employment of Early Retirees 6.1. The re-employment of those who have been granted early retirement is monitored and approved centrally within Personnel Services. During the 6-month period, no requests for re-employment were made and this represents no change when compared to the previous 6-month period. 7. Switch 2 7.1. Switch 2 is monitored and approved centrally within Personnel Services. During the 6-month period, 32 employees were redeployed to suitable alternative posts within the Council as follows:- 268
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Resource No. of employees No. of modern apprentices Total Community and Enterprise /Finance and Corporate /Education* 24 0 24 Housing and Technical 4 0 4 Social Work 4 0 4 TOTALS 32 0 32 * In terms of data protection, Resources with fewer than 2 employees have been merged. 7.2. This is a decrease of 26 compared to the previous 6-month period. Of the 32 employees redeployed, 23 were placed into permanent roles and 9 into fixed term roles. In line with the Switch 2 policy, employees placed on a fixed term basis will be matched to permanent posts as they become available. 7.3. Annual Trend Analysis Annual Period 1/04/17– 31/03/18 1/4/18 – 31/03/19 1/4/19– 31/3/20 1/4/20– 30/09/21 1/4/21– 30/09/22 No. of Switch 2 matches 102 71 47 43 90 7.4. During the period 1 April 2021 to 31 March 2022, the number of employees re- deployed increased by 47 compared to the previous year, this is due to a number of ongoing service reviews across the organisation. 8. Flexible Retirement 8.1. The approval of those who have been granted flexible retirement is monitored centrally within Personnel Services. During the 6-month period, 53 requests were approved as detailed below with no cost to the Council. 8.2. Included in these figures are phased retirement and winding down applications from teachers. (These options are available to teachers within the SPPA guidelines and are similar to the LGPS flexible retirement scheme.) Resource No. of Flexible Retirements No. of Phased Retirements/ Winding Down Community and Enterprise 10 Education 4 3 Finance and Corporate 4 Housing and Technical 14 Social Work 18 Total 53 8.3. During the 6-month period, the average age of employees granted flexible retirement was 62 years, and this is comparable with the previous 6 month period 8.4. Flexible retirement refusals are monitored centrally within Personnel Services, Finance and Corporate Resources and no requests were declined during this period. 269
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8.5. Annual Trend Analysis Annual Period 1/4/17- 31/3/18 1/4/18 - 31/3/19 1/4/19 - 31/3/20 1/4/20 - 31/3/21 1/4/21- 31/3/22 No. of Flexible Retirements 159 141 159 125 126 8.6 During the period 1 April 2021 to 31 March 2022, the number of employees granted flexible retirement increased by 1 compared to the previous year. 9. Employee Implications 9.1. In respect of those employees refused ill-health retirement, incapability dismissals may have been considered. 10. Financial Implications 10.1. There were no leavers in the period 1 October 2021 to 31 March 2022 for which early retirement/severance costs were incurred. 11. Climate Change, Sustainability and Environmental Implications 11.1 There are no climate change, sustainability or environmental implications. 12. Other Implications 12.1. The early release of employees across the Council must be properly managed to minimise the risk of adversely impacting service levels through the loss of vital skills and experience. In accordance with agreed policies, the redeployment of employees through the Switch 2 process continues to be considered as a matter of priority. 13. Equality Impact Assessment and Consultation Arrangements 13.1 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. 13.2. All releases were in line with agreed policies and procedures therefore no further consultation was required. Paul Manning Executive Director (Finance and Corporate Resources) 5 August 2022 Link(s) to Council Values/Priorities/Outcomes Excellent Employer Accountable, Effective, Efficient and Transparent Previous References Finance and Corporate Resources Committee, 10 November 2021 270
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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 Brown, Personnel Officer Ext: 4001 (Tel: 01698 454001) E-mail: Lorraine.brown@southlanarkshire.gov.uk 271
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 7 September 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Safety at Sports Grounds – Re-issue of General Safety Certificate for New Douglas Park 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise of the action taken, in terms of Standing Order No 37(c) because of the timescales involved, to re-issue the reviewed General Safety Certificate for the North and West Stands, Hamilton Academical Football Club, New Douglas Park, Cadzow Avenue, Hamilton [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the action taken, in terms of Standing Order No 37(c) by the Executive Director (Finance and Corporate Resources), in consultation with the Chair and an ex officio member, to re-issue the General Safety Certificate for the North and West Stands, Hamilton Academical Football Club, New Douglas Park, Cadzow Avenue, Hamilton, be noted. [1recs] 3. Background 3.1. In terms of the Fire Safety and Safety of Places of Sport Act 1987, a General Safety Certificate is required for a stand at a sports ground which can accommodate at least 500 spectators under cover to view the activities at the ground. A stand which falls within this classification is referred to as a “regulated stand”. New Douglas Park had previously been identified as a sports ground with regulated stands. 3.2. The revised format of the General Safety Certificates for the North and West Stands at New Douglas Park was approved by this Committee at its meeting on 11 December 2013. A single Certificate, in the same format, covering both Stands was approved by this Committee at its meeting held on 10 November 2021. The Certificate requires to be reviewed and re-issued annually. 4. Re-issue of the General Safety Certificate 4.1. At the annual safety inspection which took place on 16 June 2022, the North and West Stands at New Douglas Park were found to be well maintained and the Council’s Planning and Economic Development Service was satisfied as to the condition of the primary structural elements of both the North and West Stands. 4.2. All of the relevant inspection certificates and test records were available for inspection with the exception of the certificate for the water storage system which had since been provided by stadium management. 23 273
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4.3. The engineer’s structural inspection report had not identified any apparent structural defects. A number of observations had been made on minor defects and the Stadium Manager had made a commitment to action the items within 6 weeks of the date of the inspection. 4.4. A small number of additional actions and housekeeping issues had been identified during the inspection which were to be completed as soon as practicable, or within specified timescales, as agreed with the Stadium Manager. 4.5. Stadium management have since provided updates indicating that the defects identified in the engineer’s structural inspection report have been addressed and the other actions identified during the inspection have been completed. 4.6. Stadium management and the South Lanarkshire Sports Grounds Safety Advisory Group had reviewed the General Safety Certificate and the safety management arrangements at New Douglas Park and the following changes had been made to the Certificate:- name of the sports ground has reverted to New Douglas Park (previously Foys Stadium) Certificate now refers to all persons/people as opposed to spectators details of 2 additional and suitably qualified Deputy Safety Officers have been included the capacities detailed at appendix 2 now include spectators and others present (players/officials/staff/contractors/other essential personnel) 4.7. Clyde Football Club will play their home games at New Douglas Park during the 2022/2023 season and the Operations Manual, included as an appendix to the General Safety Certificate, has been amended by stadium management to reflect this. 4.8. The Executive Director (Finance and Corporate Resources), in consultation with the Chair and an ex officio member, approved the reviewed General Safety Certificate for the North and West Stands at New Douglas Park to allow it to be re-issued prior to the start of the 2022/2023 football season which commenced on 30 July 2022. 5. Employee Implications 5.1. None. 6. Financial Implications 6.1. The Council is authorised by regulations to charge fees for work reasonably done as a result of an application for the issue, amendment, replacement, transfer or cancellation of a safety certificate. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no climate change, sustainability or environmental implications arising from the information presented in this report. 8. Other Implications 8.1. There is a risk to the Council as the body responsible for administering safety certificates for sports grounds that any incident involving public safety where proper guidelines have not been followed could damage the Council’s reputation. This risk is mitigated by the requirements and conditions contained within the General Safety Certificates on stadium management to implement measures within the Guide to 274
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Safety at Sports Grounds (Sixth edition) to ensure the reasonable safety of persons attending the sports ground. 8.2. In addition to this, annual inspections and annual event inspections will be carried out at New Douglas Park which include checks of safety procedures, physical inspections of the Stands and checks of inspection and test certificates of various installations and equipment. 9. Equality Impact Assessment and Consultation Arrangements 9.1. 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. 9.2. Consultation has taken place with stadium management at New Douglas Park and the South Lanarkshire Sports Grounds Safety Advisory Group which comprises of representatives of the following:- relevant services within South Lanarkshire Council NHS Lanarkshire Police Scotland Scottish Ambulance Service Scottish Fire and Rescue Service Paul Manning Executive Director (Finance and Corporate Resources) 17 August 2022 Link(s) to Council Values/Priorities/Outcomes Focused on people and their needs Previous References Finance and Corporate Resources Committee – 10 November 2021 List of Background Papers General Safety Certificate for Regulated Stands – North and West Stands, New Douglas Park, Cadzow Avenue, Hamilton Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Stuart McLeod, Administration Officer Ext: 4815 (Tel: 01698 454815) E-mail: stuart.mcleod@southlanarkshire.gov.uk 275
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