Agenda Document Pack - Finance and Corporate Resources Committee - 27/09/2023
South Lanarkshire Council · 27 September 2023
Back to Finance and Corporate Resources Committee — 27 September 2023 and its agenda
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Council Offices, Almada Street Hamilton, ML3 0AA Wednesday, 20 September 2023 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, 27 September 2023 Time: 14:00 Venue: Hybrid - Committee Room 1, Council Offices, Almada Street, Hamilton, ML3 0AA The business to be considered at the meeting is listed overleaf. Yours sincerely 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, Mary Donnelly, Grant Ferguson, Gladys Ferguson-Miller, Graeme Horne, Martin Hose, Katy Loudon, Hugh Macdonald, Catherine McClymont, Elaine McDougall, Mark McGeever, Richard Nelson, Mo Razzaq, John Ross, Graham Scott, Kirsty Williams Substitutes John Bradley, Archie Buchanan, Colin Dewar, Ross Gowland, Gavin Keatt, Susan Kerr, Ross Lambie, Martin Lennon, Richard Lockhart, Carol Nugent, Norman Rae, David Watson 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting The minutes of the meeting of the Finance and Corporate Resources Committee held on 28 June 2023 submitted for approval as a correct record. (Copy attached) 5 - 12 3 Minutes of Recruitment Committee The minutes of the meeting of the Recruitment Committee held on 8 September 2023 submitted for approval as a correct record. (Copy attached) 13 - 14 Monitoring Item(s) 4 Revenue Budget Monitoring 2023/2024 – Finance and Corporate Resources Report dated 23 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 15 - 24 5 Capital Budget Monitoring 2023/2024 - Finance and Corporate Resources Report dated 7 September 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 25 - 28 6 Finance and Corporate Resources – Workforce Monitoring – May to July 2023 Report dated 24 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 29 - 36 7 Council-wide Workforce Monitoring - May to July 2023 Report dated 24 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 37 - 58 8 Treasury Management Activity - First Quarter Review Report dated 23 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 59 - 66 Item(s) for Decision 9 Prudential Indicators, Treasury Management Activity and Annual Investment Report 2022/2023 Report dated 29 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 67 - 88 10 Revenue Collection and Approval for Write Offs Report dated 8 September 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 89 - 94 Item(s) for Noting 11 Annual Procurement Report - 2022/2023 Report dated 8 September 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 95 - 138 2
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12 Governance of Charitable Trust Funds – 2022/2023 Position Report dated 28 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 139 - 142 13 Finance and Corporate Resource Plan - Quarter 4 Progress Report 2022/2023 Report dated 21 August 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 143 - 166 14 Safety at Sports Grounds - Re-issue of General Safety Certificate for the ZLX Stadium Report dated 6 September 2023 by the Executive Director (Finance and Corporate Resources). (Copy attached) 167 - 170 Urgent Business 15 Urgent Business Any other items of business which the Chair decides are urgent. For further information, please contact:- Clerk Name: Carol Lyon Clerk Telephone: 07385370065 Clerk Email: carol.lyon@southlanarkshire.gov.uk 3
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FINANCE AND CORPORATE RESOURCES COMMITTEE Minutes of meeting held via Confero and in Committee Room 1, Council Offices, Almada Street, Hamilton on 28 June 2023 Chair: Councillor Lesley McDonald Councillors Present: Councillor Alex Allison, Councillor Walter Brogan (Depute), Councillor Mathew Buchanan, Councillor Andy Carmichael, Councillor Maureen Chalmers, Councillor Margaret Cooper, Councillor Andrea Cowan, Councillor Maureen Devlin, Councillor Colin Dewar, Councillor Mary Donnelly, Councillor Grant Ferguson, Councillor Gladys Ferguson-Miller, Councillor Celine Handibode (Depute), Councillor Graeme Horne, Councillor Martin Hose, Councillor Richard Lockhart (substitute for Councillor Richard Nelson). Councillor Katy Loudon, Councillor Elaine McDougall, Councillor Carol Nugent (substitute for Councillor Hugh Macdonald), Councillor Mo Razzaq, Councillor Graham Scott Councillors' Apologies: Councillor Joe Fagan (ex officio), Councillor Hugh Macdonald, Councillor Catherine McClymont, Councillor Mark McGeever, Councillor Richard Nelson, Councillor John Ross Attending: Finance and Corporate Resources P Manning, Executive Director; C Fergusson, Head of Finance (Transactions); T Little, Head of Communications and Strategy; C Lyon, Administration Officer; G McCann, Head of Administration and Legal Services; K McLeod, Administration Assistant; M Milne, Head of Personnel Services; J Taylor, Head of Finance (Strategy); L Wyllie, Administration Assistant Chair’s Opening Remarks The Chair, on behalf of the Committee, welcomed Michelle Milne, Head of Personnel Services to her first meeting of the Finance and Corporate Resources Committee. 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Finance and Corporate Resources Committee held on 3 May 2023 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 3 Minutes of Grievance and Disputes Panel The minutes of the meeting of the Grievance and Disputes Panel held on 10 May 2023 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 2 5
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4 Minutes of Recruitment Committee The minutes of the meeting of the Recruitment Committee held on 25 May 2023 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 5 Revenue Budget Monitoring 2022/2023 - Finance and Corporate Resources A report dated 5 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted comparing the actual expenditure for the period 1 April 2022 to 31 March 2023 against budgeted expenditure for 2022/2023 for Finance and Corporate Resources. As at 31 March 2023, there was an underspend of £0.978 million before transfers to reserves, as detailed in Appendix A to the report, and a breakeven position after transfers to reserves. On 21 June 2023, the Executive Committee had approved transfers to reserves of £0.978 million to meet future commitments. Virements were proposed to realign budgets and those movements were detailed in the appendices to the report. The Committee decided: (1) that the final outturn position as at 31 March 2023 of an underspend of £0.978 million before transfers to reserves, and a breakeven position after transfers to reserves, as detailed in Appendix A of the report, be noted; and (2) that the proposed budget virements, as detailed in the appendices to the report, be approved. [Reference: Minutes of 3 May 2023 (Paragraph 6) and Minutes of the Executive Committee of 21 June 2023 (Paragraph 3)] 6 Revenue Budget Monitoring 2023/2024 - Finance and Corporate Resources A report dated 5 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted comparing actual expenditure for the period 1 April to 19 May 2023 against budgeted expenditure for 2023/2024 for Finance and Corporate Resources. As at 19 May 2023, there was a breakeven position against the phased budget, detailed in Appendix A to the report. The forecast to 31 March 2023 was a breakeven position. A virement was proposed to realign budgets and those movements were detailed in Appendix F to the report. The Committee decided: (1) that the breakeven position, as detailed in Appendix A of the report, be noted; (2) that the forecast to 31 March 2024 of breakeven be noted; and (3) that the budget virement, as detailed in Appendix F to the report, be approved. 6
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7 Capital Budget Monitoring 2022/2023 - Finance and Corporate Resources A report dated 7 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted advising of progress on Finance and Corporate Resources’ capital programme for 2022/2023 and summarising the expenditure at 31 March 2023. The budget for 2022/2023 was £3.695 million. Total expenditure to 31 March 2023 was £4.977 million. The final outturn position of £4.977 million was an additional spend of £1.282 million in comparison to the programme of £3.695 million. This was mainly due to the timing of spend on the Oracle Upgrade (£2.249 million) project, of which funding for the overall spend on this project had already been identified into next financial year. The additional in-year spend on Oracle was partially offset by a number of project underspends, mainly due to the timing of project spend required in financial year 2023/2024 instead of 2022/2023. Any underspend on those projects, along with the funding, would carry forward into next financial year as required. Accounting regulations meant that adjustments were required to report spend correctly as either capital or revenue for the purpose of the Annual Accounts. £0.015 million of revenue funding required to be recorded as capital. This transfer meant that, for the purpose of publishing the Annual Accounts only, there was a capital spend of £4.992 million. The Committee decided: that the Finance and Corporate Resources’ capital programme of £3.695 million, and expenditure for the year of £4.977 million, be noted. [Reference: Minutes of 3 May 2023 (Paragraph 5)] 8 Capital Budget Monitoring 2023/2024 - Finance and Corporate Resources A report dated 7 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted advising of progress on Finance and Corporate Resources’ capital programme for 2023/2024 and summarising the expenditure position at 19 May 2023. The Finance and Corporate Resources’ capital programme for 2023/2024 was £5.333 million. Anticipated spend to date was £0.104 million and spend to 19 May 2023 totalled £0.104 million. This represented a breakeven position. The Committee decided: that the Finance and Corporate Resources’ capital programme of £5.333 million, and expenditure to date of £0.104 million, be noted. [Reference: Minutes of South Lanarkshire Council (Special) of 22 February 2023 (Paragraph 4) and Minutes of the Executive Committee of 21 June 2023 (Paragraph 6)] 7
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9 Finance and Corporate Resources – Workforce Monitoring – March and April 2023 A report dated 25 May 2023 by the Executive Director (Finance and Corporate Resources) was submitted on the following employee information for Finance and Corporate Resources for the period March and April 2023:- attendance statistics occupational health statistics accident/incident statistics disciplinary hearings, grievances and Dignity at Work cases analysis of leavers and exit interviews staffing watch as at 11 March 2023 The Head of Personnel Services advised that, in relation to recruitment and equal opportunities, there were a number of questions and suggestions raised at Executive Committee and, that as part of her first meeting of the Equal Opportunities Forum, it was her intention to gather a summary of all activities and actions that had been carried out to date regarding recruitment, learning, development, particularly around veterans and ethnic minority groups, and other areas. She would also incorporate the activity from the Council’s mainstreaming equalities report into that. She anticipated being able to bring a summary update to this Committee following the first Equal Opportunities Forum after the summer recess. Following a question from a member, the Head of Personnel Services agreed to provide a breakdown on medical referrals to members of the Committee. Officers responded to members’ questions on various aspects of the report. The Committee decided: that the report be noted. [Reference: Minutes of 3 May 2023 (Paragraph 7)] 10 Council-wide Workforce Monitoring - March and April 2023 A report dated 25 May 2023 by the Executive Director (Finance and Corporate Resources) was submitted on the following Council-wide employee information for the period March and April 2023:- attendance statistics occupational health statistics accident/incident statistics disciplinary hearings, grievances and Dignity at Work cases analysis of leavers and exit interviews staffing watch as at 11 March 2023 Following a question from a member regarding a report that was anticipated to come to this Committee on veterans recruitment, the Head of Administration and Legal Services advised that the Council was now working to the new Armed Forces Covenant which had been enshrined in law. Consultation had been undertaken with the Council’s Veterans’ Champion, Personnel Services and other bodies to allow input to the process on how to improve. She advised that this process was still ongoing and would inform any report that was brought back to this Committee. Officers responded to members’ questions on various aspects of the report. The Committee decided: that the report be noted. [Reference: Minutes of 3 May 2023 (Paragraph 8)] 8
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11 Revenue Collection and Approval of Write-Offs A report dated 9 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted on:- collection performance for the financial year 2023/2024 to 31 May 2023 on revenue income which comprised Council Tax, non-domestic rates, sundry debts and arrears performance in the Business Rates Incentivisation Scheme (BRIS) the write-off of irrecoverable Council Tax, non-domestic rates, BID levy, sundry debt and Housing Rent and associated charges Details were provided on current collection targets. The Council was ahead of target but behind comparable performance from 2022/2023 in respect of Council Tax. In respect of non-domestic rates, the Council was ahead of target and of comparable performance from 2022/2023. Sundry debt was behind target and behind comparable performance from 2022/2023. In terms of arrears collection targets, the Council was ahead of target but behind comparable performance from 2022/2023 in respect of Council Tax and non-domestic rates. In respect of sundry debt, the Council was equal to target but behind comparable performance in 2023/2024. As previously advised to Committee, the BRIS scheme had been suspended for 2020/2021, 2021/2022 and 2022/2023 due to the impact of COVID-19. It had been confirmed in March 2023 that BRIS would not be reinstated for 2022/2023. Further guidance and information was awaited from the Scottish Government with regards to reinstatement in 2023/2024, however, performance against the BRIS target continued to be closely monitored. It was proposed that the following debts be written off:- irrecoverable Council Tax accounts from 1993/1994 to 2023/2024 (including bulk write-off for 1995/1996) to the value of £1,817,155.33 relating primarily to prescribed debt, sequestrations and estates of the deceased irrecoverable non-domestic rates from 2021/2022 to 2023/2024 to the value of £192,204.87 relating primarily to debtors in liquidation, those who had ceased trading or had been sequestrated Business Improvement District (BID) levies totalling £737.92 administered by the Council on behalf of Hamilton, Carluke and Lanark BID companies sundry debts to a value of £77,092.25 former tenant rent arrears totalling £273,604.85 (including bulk write-off for 2014/2015), factoring arrears of £471.27 and Housing Benefit overpayments totalling £24,453.50 Officers responded to members’ questions on various aspects of the report. The Committee decided: (1) that the Council’s performance in the collection of revenues be noted; (2) that the current position in respect of the Business Rates Incentivisation Scheme be noted; and (3) that the write-off of the following irrecoverable debts be approved:- Council Tax debt from 1993/1994 to 2023/2024 to the value of £1,817,155.33 Non Domestic Rates from 2021/2022 to 2023/2024 totalling £192,204.87 BID levies totalling £737.92 9
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sundry debts to a value of £77,092.25 house rent and associated charges totalling £298,529.62 [Reference: Minutes of 3 May 2023 (Paragraph 9)] 12 Scottish Government Consultation on Council Tax for Second and Empty Homes, and Thresholds for Non-Domestic Rates A report dated 14 June 2023 by the Executive Director (Finance and Corporate Resources) was submitted on the Scottish Government’s consultation on council tax for second homes and empty homes, and thresholds for non-domestic rates. The Scottish Government published Scotland’s first national population strategy in March 2021, which dealt with dimensions of economy, infrastructure, public services and housing. At the same time, it also published its Housing to 2040 Strategy which included prioritising homes for living in, and not for accumulating wealth. The Scottish Government was also due to publish a Remote, Rural and Islands Housing Action Plan that had a range of work strands to support councils and other partners to help deliver against their population and housing agenda. An important aspect of that plan was the focus on ensuring local areas could make the best use of their existing housing stock, and the 2040 Strategy committed to providing councils with the tools and powers to support then to do this. This included managing the number of long-term empty homes, short-term lets and second homes. There were currently 1,688 long-term empty properties in South Lanarkshire, 176 second homes and 105 self-catering type properties. The Scottish Government’s aim was to prioritise housing for permanent accommodation, whether in the rented sector or home ownership, whilst finding a balance of appropriate accommodation available for communities reliant on the seasonal tourist economy and seasonal workers. The Scottish Government and COSLA were holding a joint public consultation on views on giving local authorities the power to increase council tax on second homes and empty hones as well as considering whether the current non-domestic rates thresholds for self-catering accommodation remained appropriate. The consultation was published on 17 April 2023 and would run until 11 July 2023. The consultation contained 25 questions, structured around 3 key areas. Views were sought from Community and Enterprise Resources, Finance and Corporate Resources and Housing and Technical Resources. A summary of the consultation considerations and the response to each of the 3 key areas were detailed in the report and the full proposed response was detailed in Appendix 1 to the report. Officers responded to members’ questions on various aspects of the report. Following discussion, it was agreed that additional information could be added in a covering letter or in the comments fields to reflect discussion at Committee. The Committee decided: (1) that the summary of the consultation considerations and proposals be noted; and (2) that the proposed South Lanarkshire Council response, as detailed in Appendix 1 to the report, with additional information added in a covering letter or in the comments field to reflect discussion, be approved for submission to the Scottish Government by 11 July 2023. 10
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13 Notification of Contracts Awarded – 1 October 2022 to 31 March 2023 A report dated 15 May 2023 by the Executive Director (Finance and Corporate Resources) was submitted on contracts awarded by Finance and Corporate Resources during the period 1 October 2022 to 31 March 2023. In terms of Standing Order Nos 21.8 and 22.5 of the Standing Orders on Contracts, Resources were required to notify the relevant Committee of contracts awarded. Details of the contracts awarded by Finance and Corporate Resources were provided in the appendix to the report. The Committee decided: that the report be noted. [Reference: Minutes of 16 November 2022 (Paragraph 14)] 14 Safety at Sports Grounds – Re-issue of General Safety Certificate for Hamilton Park A report dated 31 May 2023 by the Executive Director (Finance and Corporate Resources) was submitted on action taken, in terms of Standing Order No 37(c) in view of the timescales involved, by the Executive Director (Finance and Corporate Resources), in consultation with the Chair and an ex officio member, to re-issue the reviewed General Safety Certificate for the Grandstand at Hamilton Park, Bothwell Road, Hamilton. The revised format of the General Safety Certificate for the Grandstand at Hamilton Park had been approved by this Committee on 13 February 2016. The certificate was required to be reviewed and re-issued annually. The Committee decided: 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 reviewed General Safety Certificate for the Grandstand at Hamilton Park, Bothwell Road, Hamilton, be noted. [Reference: Minutes of South Lanarkshire Council of 18 May 2022 (Paragraph 23)] 15 Urgent Business There were no items of urgent business. 11
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RECRUITMENT COMMITTEE Minutes of meeting held in Committee Room 2, Council Offices, Almada Street, Hamilton on 8 September 2023 Chair: Councillor Joe Fagan Councillors Present: Councillor Gerry Convery (Depute), Councillor Katy Loudon (substitute for Councillor Maureen Chalmers), Councillor Richard Nelson (substitute for Councillor Alex Allison), Councillor John Ross Councillors’ Apologies: Councillor Robert Brown, Councillor Margaret Cooper Attending: Education Resources C McKenzie, Executive Director Finance and Corporate Resources S McLeod, Administration Officer; E McPake, Human Resources Business Partner (Education and Social Work Resources) 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Recruitment Committee held on 15 August 2023 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 3 Urgent Business There were no items of urgent business. 4 Exclusion of Press and Public The Committee 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. 5 Post of Head of Education (Primary and Early Years) The Committee proceeded to interview 5 candidates for the post of Head of Education (Primary and Early Years). 3 13
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The Committee decided: that Ms J Wallace, Quality Improvement Manager, South Lanarkshire Council be appointed to the post of Head of Education (Primary and Early Years). [Reference: Minutes of 15 August 2023 (Paragraph 4)] 14
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Revenue Budget Monitoring 2023/2024 – 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 2023 to 11 August 2023 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 2024 of breakeven, be noted; and (2) that the proposed budget virements be approved. 3. Background 3.1. This is the second revenue budget monitoring report presented to the Finance and Corporate Resources Committee for the financial year 2023/2024. 3.2. The report details the financial position for Finance and Corporate Resources on Appendix A, along with variance explanations in Appendices B-H as appropriate. 4. Employee Implications 4.1. None. 5. Financial Implications 5.1. As at 11 August 2023, there is a breakeven position against the phased budget. The financial forecast for the revenue budget to 31 March 2024 is a breakeven position. 5.2. Virements are proposed to realign budgets. These virements are detailed in Appendices C and F. 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Council’s Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget 4 15
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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) 23 August 2023 Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References Finance and Corporate Resources Committee, 28 June 2023 List of Background Papers Financial ledger and budget monitoring results to 11 August 2023. 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 16
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Appendix A SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 11 August 2023 (No.5) Finance and Corporate Resources Summary Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 11/08/23 Actual 11/08/23 Variance 11/08/23 % Variance 11/08/23 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 36,221 36,221 0 12,281 12,151 130 under 1.1% Property Costs 4,163 4,163 0 314 314 0 - 0.0% Supplies & Services 7,358 7,358 0 4,790 4,879 (89) over (1.9%) Transport & Plant 71 71 0 2 3 (1) over (50.0%) Administration Costs 7,867 7,867 0 2,777 2,860 (83) over (3.0%) Payments to Other Bodies 4,761 4,761 0 2,718 2,718 0 - 0.0% Payments to Contractors 259 259 0 46 72 (26) over (56.5%) Transfer Payments 65,650 65,650 0 20,950 20,950 0 - 0.0% Financing Charges 1,217 1,217 0 267 268 (1) over (0.4%) Total Controllable Exp. 127,567 127,567 0 44,145 44,215 (70) over (0.2%) Total Controllable Inc. (86,009) (86,009) 0 (22,764) (22,834) 70 over recovered (0.3%) Net Controllable Exp. 41,558 41,558 0 21,381 21,381 0 - 0.0% Variance Explanations Variance explanations are shown in Appendices B to H as appropriate. Budget Virements Virements are noted in Appendices C and F. 17
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Appendix B SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 11 August 2023 (No.5) Finance – Strategy Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 11/08/23 Actual 11/08/23 Variance 11/08/23 % Variance 11/08/23 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 3,038 3,038 0 1,039 987 52 under 5.0% 1 Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 19 19 0 5 15 (10) over (200.0%) Transport & Plant 0 0 0 0 0 0 - n/a Administration Costs 111 111 0 3 6 (3) over (100.0%) Payments to Other Bodies 516 516 0 127 127 0 - 0.0% Payments to Contractors 22 22 0 16 16 0 - 0.0% Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 16 16 0 2 2 0 - 0.0% Total Controllable Exp. 3,722 3,722 0 1,192 1,153 39 under 3.3% Total Controllable Inc. (1,604) (1,604) 0 (29) (29) 0 - 0.0% Net Controllable Exp. 2,118 2,118 0 1.163 1,124 39 under 3.4% Variance Explanations 1. Employee Costs The underspend reflects the turnover of staff to date, with any vacant posts being considered in line with service requirements. 18
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Appendix C SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 11 August 2023 (No.5) Finance – Transactions Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 11/08/23 Actual 11/08/23 Variance 11/08/23 % Variance 11/08/23 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 12,938 12,938 0 4,462 4,234 228 under 5.1% 1, a,b Property Costs 4,032 4,032 0 307 307 0 - 0.0% Supplies & Services 869 869 0 319 352 (33) over (10.3%) 2, b Transport & Plant 5 5 0 0 0 0 - n/a Administration Costs 1,655 1,655 0 836 865 (29) over (3.5%) 3, a, b Payments to Other Bodies 1,499 1,499 0 854 854 0 - 0.0% Payments to Contractors 237 237 0 30 53 (23) over (76.7%) 4 Transfer Payments 65,650 65,650 0 20,950 20,950 0 - 0.0% Financing Charges 142 142 0 4 5 (1) over (25.0%) Total Controllable Exp. 87,027 87,027 0 27,762 27,620 142 under 0.5% Total Controllable Inc. (68,579) (68,579) 0 (20,706) (20,776) 70 over recovered (0.3%) 5, b Net Controllable Exp. 18,448 18,448 0 7,056 6,844 212 under 3.0% Variance Explanations 1. Employee Costs The underspend reflects the level of turnover within the Service to date, with recruitment being considered in line with service requirements. 2. Supplies & Services The overspend reflects the costs of additional computer equipment required for service delivery. 3. Administration Costs The overspend reflects additional postage costs required for service delivery. 4. Payments to Contractors The overspend reflects additional security costs that are not budgeted for. 5. Income The over-recovery reflects a greater number of procurement rebates than budgeted. Budget Virements a. LACER Funding for Financial Wellbeing Support and Energy Related Support: Net Effect £0.255m: Employee Costs £0.052m, Administration Costs £0.203m. b. Budget realignment to reflect service delivery: Net Effect £0.000m: Employee Costs (£0.149m), Property Costs £0.120m, Supplies & Services (£0.054m), Administration Costs £0.933m, Income (£0.850m). 19
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Appendix D SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 11 August 2023 (No.5) Audit Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 11/08/23 Actual 11/08/23 Variance 11/08/23 % Variance 11/08/23 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 633 633 0 216 227 (11) over (5.1%) 1 Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 7 7 0 0 0 0 - n/a Transport & Plant 0 0 0 0 0 0 - n/a Administration Costs 6 6 0 2 2 0 - 0.0% Payments to Other Bodies 1 1 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. 651 651 0 218 229 (11) over (5.0%) Total Controllable Inc. (277) (277) 0 (40) (40) 0 - 0.0% Net Controllable Exp. 374 374 0 178 189 (11) - (6.2%) Variance Explanations 1. Employee Costs The overspend reflects a lower than anticipated level of staff turnover. 20
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Appendix E SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 11 August 2023 (No.5) Information Technology Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 11/08/23 Actual 11/08/23 Variance 11/08/23 % Variance 11/08/23 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 5,217 5,217 0 1,584 1,507 77 under 4.9% 1 Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 5,518 5,518 0 4,204 4,228 (24) over (0.6%) 2 Transport & Plant 4 4 0 0 0 0 - n/a Administration Costs 1,604 1,604 0 524 524 0 - 0.0% 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 631 631 0 94 94 0 - 0.0% Total Controllable Exp. 12,974 12,974 0 6,406 6,353 53 under 0.8% Total Controllable Inc. (7,747) (7,747) 0 (229) (229) 0 - 0.0% Net Controllable Exp. 5,226 5,226 0 6,177 6,124 53 under 0.9% Variance Explanations 1. Employee Costs The underspend reflects the level of turnover within the Service to date, with recruitment being considered in line with service requirements. 2. Supplies & Services The overspend reflects the timing of expenditure, an element of which will be prepaid at the end of the year. 21
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Appendix F SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 11 August 2023 (No.5) Personnel Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 11/08/23 Actual 11/08/23 Variance 11/08/23 % Variance 11/08/23 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 8,146 8,146 0 2,843 2,967 (124) over (4.4%) 1, a Property Costs 113 113 0 6 6 0 - 0.0% Supplies & Services 193 193 0 41 42 (1) over (2.4%) Transport & Plant 19 19 0 1 1 0 - 0.0% Administration Costs 1,018 1,018 0 449 497 (48) over (10.7%) 2 Payments to Other Bodies 1,260 1,260 0 767 767 0 - 0.0% Payments to Contractors 0 0 0 0 3 (3) over n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 41 41 0 2 2 0 - 0.0% Total Controllable Exp. 10,790 10,790 0 4,109 4,285 (176) over (4.3%) Total Controllable Inc. (2,482) (2,482) 0 (456) (456) 0 - (0.0%) Net Controllable Exp. 8,308 8,308 0 3,653 3,829 (176) over (4.8%) Variance Explanations 1. Employee Costs The overspend reflects the phasing of staffing costs to date and will be offset by anticipated external project income when received. 2. Administration Costs The overspend reflects unbudgeted costs, an element of which will be recharged later in the year. Budget Virements a. Additional General Revenue Grant (GRG) Funding – No-one Left Behind: Net Effect £0.641m: Employee Costs £0.641m. 22
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Appendix G SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 11 August 2023 (No.5) Administration, Legal and Licensing Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 11/08/23 Actual 11/08/23 Variance 11/08/23 % Variance 11/08/23 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 3,756 3,756 0 1,283 1,372 (89) over (6.9%) 1 Property Costs 18 18 0 1 1 0 - 0.0% Supplies & Services 118 118 0 18 34 (16) over (88.9%) 2 Transport & Plant 14 14 0 1 2 (1) over (100.0%) Administration Costs 2,331 2,331 0 688 691 (3) over (0.4%) Payments to Other Bodies 678 678 0 332 332 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 5 5 0 - 0.0% Total Controllable Exp. 6,947 6,947 0 2,328 2,437 (109) over (4.7%) Total Controllable Inc. (2,668) (2,668) 0 (466) (466) 0 - 0.0% Net Controllable Exp. 4,279 4,279 0 1,862 1,971 (109) over (5.9%) Variance Explanations 1. Employee Costs The overspend reflects a lower than anticipated turnover achieved to date. 2. Supplies & Services The overspend reflects the costs of additional computer equipment required for service delivery. 23
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Appendix H SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Finance and Corporate Resources Committee: Period Ended 11 August 2023 (No.5) Communications and Strategy Services Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 11/08/23 Actual 11/08/23 Variance 11/08/23 % Variance 11/08/23 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 2,493 2,493 0 854 857 (3) over -0.4% Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 634 634 0 203 208 (5) over -2.5% Transport & Plant 29 29 0 0 0 0 - n/a Administration Costs 1,142 1,142 0 275 275 0 - 0.0% Payments to Other Bodies 807 807 0 638 638 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 351 351 0 160 160 0 - 0.0% Total Controllable Exp. 5,456 5,456 0 2,130 2,138 (8) over (0.4%) Total Controllable Inc. (2,651) (2,651) 0 (838) (838) 0 - 0.0% Net Controllable Exp. 2,805 2,805 0 1,292 1,300 (8) over (0.6%) Variance Explanations n/a 24
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Capital Budget Monitoring 2023/2024 - 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 2023 to 11 August 2023 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the Finance and Corporate Resources capital programme of £5.333 million, and expenditure to date of £0.884 million, be noted. [1recs] 3. Background 3.1. This is the second capital monitoring report presented to the Finance and Corporate Resources Committee for the financial year 2023/2024. Further reports will follow throughout the year. 3.2. The budget of £5.333 million for Finance and Corporate Resources is based on the overall Capital Programme for 2023/2024 which was approved by the Executive Committee on 21 June 2023. There has been no change to this budget since the last report to this Committee (28 June 2023). 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. 2023/2024 Budget As detailed in Section 3.2, the 2023/2024 capital programme for Finance and Corporate Resources is £5.333 million. 5.2. Period 5 Position Anticipated spend to date was £0.887 million and spend to 11 August 2023 amounts to £0.884 million, a minor underspend of £0.003 million. 5 25
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6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Council’s Capital Programme is that there is an overspend. The risk has been assessed as low given the detailed project management plans prepared and monitored for each project. The risk of overspend is managed through four weekly Investment Management Meetings. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Paul Manning Executive Director (Finance and Corporate Resources) 7 September 2023 Link(s) to Council Values/Ambitions/Outcomes Accountable, Effective, Efficient and Transparent Previous References Executive Committee, 21 June 2023 Finance and Corporate Resources Committee, 28 June 2023 List of Background Papers Financial ledger to 11 August 2023 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 26
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Appendix A South Lanarkshire Council Capital Expenditure 2023-2024 Finance and Corporate Resources Programme For Period 1 April 2023 – 11 August 2023 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 5,333 - - 5,333 887 884 TOTAL 5,333 - - 5,333 887 884 27
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Finance and Corporate Resources – Workforce Monitoring – May to July 2023 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide employment information for May to July 2023 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 May to July 2023 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 10 June 2023 [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 May to July 2023. 4. Monitoring Statistics 4.1. Attendance Statistics (Appendix 1) Information on absence statistics is analysed for the month of July 2023 for Finance and Corporate Resources. The Resource absence figure for July 2023 was 3.5%, this figure has decreased by 0.7% when compared to last month and is 0.3% lower than the Council-wide figure. Compared to July 2022, the Resource absence figure has decreased by 0.4%. Based on the absence figures at July 2023 and annual trends, the projected annual average absence for the Resource for 2023/2024 is 3.9%, compared to a Council- wide average figure of 5.5%. 6 29
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Managers follow the procedures outlined in the Maximising Attendance Policy to support employees to remain at work, or to return to work after a sickness absence. There are comprehensive employee supports in place and additionally, Personnel Services work in close partnership with line managers and Resource Management Teams on a case management basis to ensure that appropriate actions are taken. 4.2. Occupational Health (Appendix 2) In terms of referrals to occupational health, which include medical examinations and physiotherapy, overall, 59 referrals were made this period. This represents a decrease of 7 when compared with the same period last year. 4.3. Accident/Incident Statistics There were 2 accidents/incidents 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. This figure remains unchanged 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 7 leavers in the Resource this period eligible for an exit interview, a decrease of 8 when compared with the same period last year. 3 exit interviews were conducted in this period, a decrease of 1 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 May to July 2023, 19 employees (16.20 FTE) in total left employment, managers indicated that 17 posts (14.80 FTE) were being replaced and 2 posts (1.40 FTE) are being held pending a savings or service review. 5. Staffing Watch 5.1. There has been a decrease of 15 in the number of employees in post from 11 March 2023 to 10 June 2023. 6. Employee Implications 6.1. There are no implications for employees arising from the information presented in this report. 30
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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 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) 24 August 2023 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, 28 June 2023 List of Background Papers Monitoring information provided by Finance and Corporate Resources Contact for Further Information If you would like to inspect the background papers or want further information, please contact: - Elaine Maxwell, HR Business Manager Ext: 4647 (Tel: 01698 454647) E-mail: Elaine.Maxwell@southlanarkshire.gov.uk 31
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2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 % % % % % % % % % % % % April 2.6 2.8 3.6 April 0.0 0.0 0.0 April 2.6 2.8 3.6 April 4.3 5.6 5.1 May 3.3 3.2 3.9 May 0.0 0.0 0.0 May 3.3 3.2 3.9 May 4.9 5.4 5.1 June 3.5 4.0 4.2 June 0.0 0.0 0.0 June 3.5 4.0 4.2 June 4.7 5.3 4.7 July 3.3 3.9 3.5 July 0.0 0.0 0.0 July 3.3 3.9 3.5 July 4.0 4.6 3.8 August 3.6 4.1 August 0.0 0.0 August 3.6 4.1 August 4.7 4.4 September 4.0 3.6 September 0.0 0.0 September 4.0 3.6 September 6.4 5.4 October 3.6 3.8 October 0.0 0.0 October 3.6 3.8 October 6.3 5.8 November 4.3 3.4 November 0.0 0.0 November 4.3 3.4 November 6.9 6.5 December 3.8 4.3 December 0.0 0.0 December 3.8 4.3 December 6.9 7.0 January 3.8 4.3 January 0.0 0.0 January 3.8 4.3 January 7.0 5.8 February 3.4 3.8 February 0.0 0.0 February 3.4 3.8 February 6.6 5.9 March 3.4 3.8 March 0.0 0.0 March 3.4 3.8 March 7.9 6.4 Annual Average 3.6 3.8 3.9 Annual Average 0.0 0.0 0.0 Annual Average 3.6 3.8 3.9 Annual Average 5.9 5.7 5.5 Average Apr-Jul 3.2 3.5 3.8 Average Apr-Jul 0.0 0.0 0.0 Average Apr-Jul 3.2 3.5 3.8 Average Apr-Jul 4.5 5.2 4.7 924 0 924 16165 Council WideManual Workers No of Employees at 31 July 2023 Resource Total No of Employees at 31 July 2023 Appendix 1 Absence Trends - 2021/2022, 2022/2023 & 2023/2024 Finance and Corporate Resources No of Employees at 31 July 2023 No of Employees at 31 July 2023 APT&C 32
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May - Jul May - Jul 2022 2023 MEDICAL EXAMINATIONS Number of Employees Attending EMPLOYEE COUNSELLING SERVICE Total Number of Referrals PHYSIOTHERAPY SERVICE Total Number of Referrals REFERRALS TO EMPLOYEE SUPPORT OFFICER 22 29 REFERRALS TO COGNITIVE BEHAVIOUR THERAPY 0 0 TOTAL 66 59 May - Jul May - Jul 2022 2023 Minor 1 1 Violent Incident: Verbal***** 1 1 Total Accidents/Incidents 2 2 May - Jul May - Jul 2022 2023 Total Number of Hearings 1 1 Time Taken to Convene Hearing May - July 2023 0-3 Weeks 4-6 Weeks Over 6 Weeks 0 0 1 May - Jul May - Jul 2022 2023 Number of Grievances 0 0 May - Jul May - Jul 2022 2023 Number of Incidents 0 0 May - Jul May - Jul 2022 2023 Further Education 2 0 Moving outwith area 0 1 Personal Reasons 0 2 Poor relationship with managers / colleagues 1 0 Other 1 0 Number of Exit Interviews conducted 4 3 Total Number of Leavers Eligible for Exit Interview 15 7 Percentage of interviews conducted 27% 43% Appendix 2 25 11 0 0 FINANCE & CORPORATE RESOURCES 19 19 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 33
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FTE H/C FTE H/C Terminations/Leavers 16.20 19 23.90 29 Being replaced 14.80 17 22.50 27 Filling on a temporary basis 0.00 0 0.00 0 Plan to transfer this budget to another post 0.00 0 0.00 0 End of fixed term contract 0.00 0 0.00 0 Held pending service Review 1.40 2 1.40 2 Plan to remove for savings 0.00 0 0.00 0 Appendix 2a Reason Cumulative totalMay - July 2023 34
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As at 10 June 2023 Total Number of Employees F/T P/T F/T P/T 203 17 410 228 Chief Officer Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher TOTAL 5.00 119.63 359.13 216.05 53.07 24.30 2.00 0.00 0.00 779.18 As at 11 March 2023 Total Number of Employees F/T P/T F/T P/T 207 19 414 233 Director Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher TOTAL 2.00 124.78 358.72 219.55 58.05 22.30 6.00 0.00 0.00 791.4 *Full - Time Equivalent No of Employees Salary Bands MALE FEMALE TOTAL 873 Appendix 3 JOINT STAFFING WATCH RETURN FINANCE AND CORPORATE RESOURCES *Full - Time Equivalent No of Employees Salary Bands 858 MALE FEMALE TOTAL 35
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Council-wide Workforce Monitoring – May to July 2023 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide employment information relating to the Council for the period May to July 2023 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the following employment information for the period May to July 2023 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 10 June 2023 [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 May to July 2023. 4. Attendance Statistics 4.1. Information on absence statistics for the Council and each Resource, as analysed for July 2023, is provided in Appendices 1 to 8. Points to note are:- The Council’s absence rate for July 2023, shown in Appendix 1, is 3.8%, which represents a decrease of 0.9% when compared with last month and the figure has decreased by 0.8% when compared to July 2022. When compared to July 2022, the APT&C absence rate has decreased by 0.5%, the teachers’ figure has decreased by 0.3% and the manual workers’ figure has decreased by 1.6%. Based on annual trends and the absence rate to July 2023, the projected average absence rate for the Council for the financial year 2023/2024 is 5.5%. 7 37
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In comparison to July 2022 (Appendix 8):- Psychological and musculoskeletal conditions are the main reasons for absence. Total days lost due to psychological conditions have decreased by 6 days. Total days lost due to musculoskeletal conditions have increased by 231 days. Total days lost due to respiratory conditions have decreased by 2231 days. Total days lost due to stomach, bowel, blood and metabolic disorders have decreased by 249 days. Managers follow the procedures outlined in the Maximising Attendance Policy to support employees to remain at work, or to return to work after a sickness absence. There are comprehensive employee supports in place and additionally, Personnel Services work in close partnership with line managers and Resource Management Teams on a case management basis to ensure that appropriate actions are taken. 5. Occupational Health 5.1. Information on Occupational Health for the period May to July 2023 is provided in Appendix 9:- during the period there were 273 employees referred for a medical examination, a decrease of 107 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 402 employees attended physiotherapy treatment, showing a decrease of 17 when compared to the same period last year. Of the 402 employees referred, 50% remained at work whilst undertaking treatment. during this period 382 employees were referred to the Employee Support Officer, showing an increase of 23 when compared with the same period last year. Of the referrals made this period, 84% related to personal reasons. 148 employees were referred to the PAM Assist counselling service this period, showing an increase of 24 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 59% of the referrals made, 19% were for work related reasons and 22% was for other reasons. 6 employees were referred for Cognitive Behavioural Therapy this period, an increase of 5 when compared to the same period last year. 6. Accidents/Incidents 6.1. The accident/incident report for May to July 2023 is contained in Appendix 10:- the number of accidents/incidents recorded was 317, this figure has increased by 34 from the same period last year. there were 3 specified injuries recorded, this figure has increased by 1 from the same period last year. there were 301 minor accidents/incidents, this figure has increased by 39 from the same period last year. there was 1 accident 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 12 accidents resulting in an absence lasting over 7 days during the period, this figure has decreased by 5 from the same period last year. 38
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7. Discipline, Grievance, Dignity at Work Hearings and Mediation Referrals 7.1. Information on Disciplinary, Grievance Hearings, Dignity at Work and Mediation Referrals for May to July 2023 is contained in Appendices 11, 12a and 12b:- in total, 36 disciplinary hearings were held across Resources within the Council, this figure has increased by 2 when compared to the same period last year. action was taken in 35 of these cases. No appeals were raised against the outcomes. our target is to convene disciplinary hearings within 6 weeks, 83% of hearings met this target. during the period, 1 appeal was heard by the Appeals Panel, which was not upheld and 1 was withdrawn. at the end of July, 2 Appeals Panels were pending. during the period, 1 grievance case was raised. during the period, no Dignity at Work cases were raised. during the period, 3 referrals for mediation were submitted. 8. Analysis of Leavers and Exit Interviews 8.1. Information on the number of leavers and exit interviews for the period May to July 2023 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 10 June 2032, the Council’s turnover figure for May to July 2023 is as follows:- 144 leavers eligible for exit interviews/15,157 employees in post = Labour Turnover of 1.0%. Based on the figure at July 2023, the projected annual labour turnover figure for the financial year 2023/2024 for the Council is 4.2%. 8.2. Analysis of Leavers and Exit Interviews there were a total of 144 employees leaving the Council that were eligible for an exit interview, an increase of 2 when compared with the same period last year. there were a total of 40 exit interviews conducted which is a decrease of 16 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 39
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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 May to July 2023, 323 employees (240.14 FTE) left employment. Managers indicated that 302 posts (224.34 FTE) would be replaced, 2 posts (0.85 FTE) were being filled on a temporary basis, 1 post (0.95 FTE) plan to transfer this budget to another post, 6 posts (4.08 FTE) were due to the end of fixed term contracts and 12 posts (9.92 FTE) were being left vacant pending savings or service reviews. 9. Recruitment Monitoring 9.1. Information on Recruitment Monitoring for May to July 2023 is contained within Appendix 14. From an analysis of Equal Opportunities Monitoring Forms, the main points to note are:- overall, 5866 applications and 5583 completed Equal Opportunities Monitoring Forms were received of those applicants who declared themselves as disabled (194), 113 were shortleeted for interview and 11 were appointed. of those applicants of a black/ethnic minority background (659), 277 were shortleeted for interview and 23 were appointed. Of those applicants who are veterans (55), 20 were shortleeted for interview and 2 were appointed. 10. Staffing Watch 10.1 There has been an increase of 174 in the number of employees in post from 11 March 2023 to 10 June 2023. 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) 40
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24 August 2023 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, 28 June 2023 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: 4647 (Tel: 01698 454647) E-mail: Elaine.Maxwell@southlanarkshire.gov.uk 41
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2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 % % % % % % % % % % % % April 4.1 5.2 5.2 April 2.5 2.7 2.8 April 6.2 8.8 7.0 April 4.3 5.6 5.1 May 4.7 5.0 5.1 May 3.2 3.6 3.2 May 6.7 7.6 6.2 May 4.9 5.4 5.1 June 4.4 5.0 4.9 June 2.6 2.6 2.2 June 7.0 8.1 6.5 June 4.7 5.3 4.7 July 4.1 4.5 4.0 July 1.1 1.4 1.1 July 6.3 7.4 5.8 July 4.0 4.6 3.8 August 4.6 4.3 August 2.0 1.4 August 7.3 7.4 August 4.7 4.4 September 6.1 5.2 September 4.4 2.8 September 8.5 8.0 September 6.4 5.4 October 6.0 5.7 October 4.1 3.4 October 8.7 8.1 October 6.3 5.8 November 6.5 6.3 November 5.6 4.7 November 8.7 8.6 November 6.9 6.5 December 6.2 6.7 December 6.1 5.3 December 8.8 8.9 December 6.9 7.0 January 6.7 5.2 January 3.9 4.3 January 10.1 8.0 January 7.0 5.8 February 6.5 5.7 February 3.7 4.1 February 9.5 7.9 February 6.6 5.9 March 8.0 6.2 March 4.3 4.6 March 11.3 8.3 March 7.9 6.4 Annual Average 5.7 5.4 5.4 Annual Average 3.6 3.4 3.3 Annual Average 8.3 8.1 7.6 Annual Average 5.9 5.7 5.5 Average Apr-Jul 4.3 4.9 4.8 Average Apr-Jul 2.4 2.6 2.3 Average Apr-Jul 6.6 8.0 6.4 Average Apr-Jul 4.5 5.2 4.7 7708 3910 4547 16165No of Employees at 31 July 2023 Appendix 1 Absence Trends - 2021/2022, 2022/2023 & 2023/2024 Council Wide APT&C Teachers No of Employees at 31 July 2023 No of Employees at 31 July 2023 Manual Workers Council Wide No of Employees at 31 July 2023 42
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2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 % % % % % % % % % % % % April 2.3 4.4 3.6 April 5.7 7.3 6.3 April 5.2 6.9 6.0 April 4.3 5.6 5.1 May 2.7 3.9 3.7 May 6.4 6.8 6.3 May 5.9 6.3 5.9 May 4.9 5.4 5.1 June 2.8 3.5 4.3 June 6.6 7.2 5.9 June 6.0 6.7 5.7 June 4.7 5.3 4.7 July 2.9 3.9 2.3 July 5.3 5.9 4.6 July 4.9 5.6 4.3 July 4.0 4.6 3.8 August 2.9 3.4 August 6.4 6.6 August 5.9 6.1 August 4.7 4.4 September 3.4 3.1 September 8.2 7.9 September 7.5 7.1 September 6.4 5.4 October 3.8 5.1 October 7.9 7.5 October 7.3 7.1 October 6.3 5.8 November 3.5 4.2 November 8.0 8.3 November 7.3 7.7 November 6.9 6.5 December 4.2 3.7 December 8.0 8.8 December 7.4 8.0 December 6.9 7.0 January 3.6 2.6 January 9.6 7.4 January 8.6 6.7 January 7.0 5.8 February 4.4 3.6 February 9.5 7.4 February 8.7 6.9 February 6.6 5.9 March 6.0 3.9 March 11.0 7.9 March 10.2 7.3 March 7.9 6.4 Annual Average 3.5 3.8 3.6 Annual Average 7.7 7.4 7.1 Annual Average 7.1 6.9 6.6 Annual Average 5.9 5.7 5.5 Average Apr-Jul 2.7 3.9 3.5 Average Apr-Jul 6.0 6.8 5.8 Average Apr-Jul 5.5 6.4 5.5 Average Apr-Jul 4.5 5.2 4.7 528 2933 3461 16165 Appendix 2 Absence Trends - 2021/2022, 2022/2023 & 2023/2024 Community and Enterprise Resources APT&C Council WideManual Workers Resource Total No of Employees at 31 July 2023 No of Employees at 31 July 2023 No of Employees at 31 July 2023 No of Employees at 31 July 2023 43
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2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 % % % % % % % % % % % % April 4.8 5.5 5.0 April 2.5 2.7 2.8 April 3.5 4.0 3.8 April 4.3 5.6 5.1 May 5.7 5.5 5.4 May 3.2 3.6 3.2 May 4.4 4.5 4.2 May 4.9 5.4 5.1 June 4.7 5.1 4.8 June 2.6 2.6 2.2 June 3.5 3.7 3.4 June 4.7 5.3 4.7 July 3.4 3.8 3.4 July 1.1 1.4 1.1 July 2.1 2.5 2.2 July 4.0 4.6 3.8 August 3.8 3.6 August 2.0 1.4 August 2.8 2.4 August 4.7 4.4 September 6.4 5.8 September 4.4 2.8 September 5.3 4.1 September 6.4 5.4 October 6.6 6.5 October 4.1 3.4 October 5.2 4.8 October 6.3 5.8 November 8.0 7.9 November 5.6 4.7 November 6.7 6.2 November 6.9 6.5 December 8.0 8.5 December 6.1 5.3 December 7.0 6.8 December 6.9 7.0 January 8.1 6.1 January 3.9 4.3 January 5.8 5.1 January 7.0 5.8 February 7.2 6.8 February 3.7 4.1 February 5.3 5.4 February 6.6 5.9 March 9.5 7.0 March 4.3 4.6 March 6.7 5.7 March 7.9 6.4 Annual Average 6.4 6.0 5.9 Annual Average 3.6 3.4 3.3 Annual Average 4.9 4.6 4.5 Annual Average 5.9 5.7 5.5 Average Apr-Jul 4.7 5.0 4.7 Average Apr-Jul 2.4 2.6 2.3 Average Apr-Jul 3.4 3.7 3.4 Average Apr-Jul 4.5 5.2 4.7 3496 3910 7406 16165No of Employees at 31 July 2023 No of Employees at 31 July 2023 No of Employees at 31 July 2023 No of Employees at 31 July 2023 Appendix 3 Absence Trends - 2021/2022, 2022/2023 & 2023/2024 Education Resources Council WideAPT&C Teachers Resource Total 44
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2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 % % % % % % % % % % % % April 2.6 2.8 3.6 April 0.0 0.0 0.0 April 2.6 2.8 3.6 April 4.3 5.6 5.1 May 3.3 3.2 3.9 May 0.0 0.0 0.0 May 3.3 3.2 3.9 May 4.9 5.4 5.1 June 3.5 4.0 4.2 June 0.0 0.0 0.0 June 3.5 4.0 4.2 June 4.7 5.3 4.7 July 3.3 3.9 3.5 July 0.0 0.0 0.0 July 3.3 3.9 3.5 July 4.0 4.6 3.8 August 3.6 4.1 August 0.0 0.0 August 3.6 4.1 August 4.7 4.4 September 4.0 3.6 September 0.0 0.0 September 4.0 3.6 September 6.4 5.4 October 3.6 3.8 October 0.0 0.0 October 3.6 3.8 October 6.3 5.8 November 4.3 3.4 November 0.0 0.0 November 4.3 3.4 November 6.9 6.5 December 3.8 4.3 December 0.0 0.0 December 3.8 4.3 December 6.9 7.0 January 3.8 4.3 January 0.0 0.0 January 3.8 4.3 January 7.0 5.8 February 3.4 3.8 February 0.0 0.0 February 3.4 3.8 February 6.6 5.9 March 3.4 3.8 March 0.0 0.0 March 3.4 3.8 March 7.9 6.4 Annual Average 3.6 3.8 3.9 Annual Average 0.0 0.0 0.0 Annual Average 3.6 3.8 3.9 Annual Average 5.9 5.7 5.5 Average Apr-Jul 3.2 3.5 3.8 Average Apr-Jul 0.0 0.0 0.0 Average Apr-Jul 3.2 3.5 3.8 Average Apr-Jul 4.5 5.2 4.7 924 0 924 16165 Council WideManual Workers No of Employees at 31 July 2023 Resource Total No of Employees at 31 July 2023 Appendix 4 Absence Trends - 2021/2022, 2022/2023 & 2023/2024 Finance and Corporate Resources No of Employees at 31 July 2023 No of Employees at 31 July 2023 APT&C 45
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2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 % % % % % % % % % % % % April 3.2 5.5 5.7 April 3.6 10.6 6.9 April 3.3 7.6 6.2 April 4.3 5.6 5.1 May 2.9 4.5 4.9 May 4.2 8.1 6.1 May 3.4 6.0 5.4 May 4.9 5.4 5.1 June 3.5 4.9 5.4 June 6.2 8.5 6.8 June 4.6 6.4 6.0 June 4.7 5.3 4.7 July 4.0 5.5 5.0 July 5.7 8.9 8.1 July 4.7 6.9 6.2 July 4.0 4.6 3.8 August 4.9 4.7 August 7.9 7.1 August 6.2 5.7 August 4.7 4.4 September 5.8 4.5 September 8.1 6.3 September 6.8 5.2 September 6.4 5.4 October 5.2 4.3 October 9.0 7.8 October 6.8 5.8 October 6.3 5.8 November 5.7 4.6 November 9.2 7.8 November 7.2 5.9 November 6.9 6.5 December 4.6 4.4 December 9.5 7.2 December 6.7 5.6 December 6.9 7.0 January 5.2 4.5 January 8.8 5.5 January 6.7 4.9 January 7.0 5.8 February 6.4 4.4 February 8.5 6.2 February 7.3 5.1 February 6.6 5.9 March 7.8 5.3 March 10.7 6.8 March 9.0 5.9 March 7.9 6.4 Annual Average 4.9 4.8 4.8 Annual Average 7.6 7.6 6.9 Annual Average 6.1 5.9 5.7 Annual Average 5.9 5.7 5.5 Average Apr-Jul 3.4 5.1 5.3 Average Apr-Jul 4.9 9.0 7.0 Average Apr-Jul 4.0 6.7 6.0 Average Apr-Jul 4.5 5.2 4.7 887 560 1447 16165No of Employees at 31 July 2023No of Employees at 31 July 2023 No of Employees at 31 July 2023 No of Employees at 31 July 2023 Appendix 5 Housing & Technical Resources Resource Total Absence Trends - 2021/2022, 2022/2023 & 2023/2024 APT&C Manual Workers Council Wide 46
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2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 % % % % % % % % % % % % April 4.5 6.2 6.5 April 9.6 12.6 9.4 April 6.2 8.3 7.4 April 4.3 5.6 5.1 May 5.0 5.7 5.8 May 9.3 10.1 8.4 May 6.5 7.1 6.6 May 4.9 5.4 5.1 June 3.9 5.9 5.5 June 7.6 11.3 8.6 June 5.2 7.6 6.5 June 4.7 5.3 4.7 July 6.1 6.0 5.4 July 10.3 11.8 8.8 July 7.5 7.9 6.5 July 4.0 4.6 3.8 August 7.3 6.0 August 10.2 10.8 August 8.2 7.5 August 4.7 4.4 September 7.6 5.9 September 10.3 9.6 September 8.5 7.1 September 6.4 5.4 October 6.9 5.8 October 11.3 10.4 October 8.4 7.3 October 6.3 5.8 November 6.2 6.0 November 10.8 10.4 November 7.7 7.4 November 6.9 6.5 December 5.5 6.4 December 11.1 10.6 December 7.3 7.7 December 6.9 7.0 January 7.4 5.2 January 13.0 12.0 January 9.2 7.4 January 7.0 5.8 February 7.5 5.8 February 10.1 11.0 February 8.3 7.5 February 6.6 5.9 March 8.0 7.0 March 12.8 10.9 March 9.5 8.2 March 7.9 6.4 Annual Average 6.3 6.0 5.9 Annual Average 10.5 11.0 10.1 Annual Average 7.7 7.6 7.3 Annual Average 5.9 5.7 5.5 Average Apr-Jul 4.9 6.0 5.8 Average Apr-Jul 9.2 11.5 8.8 Average Apr-Jul 6.4 7.7 6.8 Average Apr-Jul 4.5 5.2 4.7 1873 1054 2927 16165No of Employees at 31 July 2023 No of Employees at 31 July 2023 No of Employees at 31 July 2023 No of Employees at 31 July 2023 Appendix 6 Absence Trends - 2021/2022, 2022/2023 & 2023/2024 Social Work Resources APT&C Council WideResource TotalManual Workers 47
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Appendix 7 Absence by long and short term From: 1 May 2023 to 31 July 2023 Community and Enterprise 3461 4.0 1.9 5.9 1.8 3.9 5.7 1.5 2.8 4.3 Education 7406 1.4 2.8 4.2 1.1 2.3 3.4 0.3 1.9 2.2 Finance and Corporate 924 1.0 2.9 3.9 1.5 2.7 4.2 1.3 2.2 3.5 Housing & Technical 1447 1.3 4.1 5.4 2.2 3.8 6.0 1.6 4.6 6.2 Social Work 2927 1.9 4.7 6.6 1.7 4.8 6.5 1.6 4.9 6.5 Council Overall for May 2023 to July 2023 16165 1.6 3.5 5.1 1.5 3.2 4.7 0.9 2.9 3.8 Resource No of employees May 2023 Total Short Term % Total Long Term % Resource Total Absence % Resource Total Absence % June 2023 Total Short Term % Total Long Term % July 2023 Total Short Term % Total Long Term % Resource Total Absence % 48
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From : 1 July 2023 - 31 July 2023 Total WDL % Total WDL % Total WDL % Total WDL % Total WDL % Musculoskeletal 933 31 649 20 49 8 633 36 816 24 3080 26 Psychological 837 28 1221 38 313 52 580 33 1148 34 4099 34 Stomach, Bowel, Blood, Metabolic Disorders 206 7 209 7 30 5 142 8 392 12 979 8 Respiratory 239 8 245 8 34 6 181 10 261 8 960 8 Other Classification 788 26 850 27 178 29 237 13 746 22 2799 23 Total Days Lost By Resource 3003 100 3174 100 604 100 1773 100 3363 100 11917 100 Total Work Days Available From : 1 July 2022 - 31 July 2022 Total WDL % Total WDL % Total WDL % Total WDL % Total WDL % Musculoskeletal 1095 28 441 12 81 11 507 26 725 18 2849 20 Psychological 798 20 1238 34 228 31 603 31 1238 31 4105 29 Stomach, Bowel, Blood, Metabolic Disorders 442 11 298 8 45 6 90 5 353 9 1228 9 Respiratory 906 23 839 23 231 32 354 18 861 22 3191 22 Other Classification 695 18 793 22 142 20 385 20 806 20 2821 20 Total Days Lost By Resource 3936 100 3609 100 727 100 1939 100 3983 100 14194 100 Total Work Days Available *WDL = Work Days Lost 70509 146261 17462 Percentage Housing and Technical Resources Education Resources Finance and Corporate 28413 51946 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 50656281631852014331470455 PercentageTotal WDL By Reason 49
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Appendix 9 Teachers Others 63 38 31 11 45 85 107 29 50 25 72 97 May - Jul 2022 May - Jul 2023 May - Jul 2022 May - Jul 2023 May - Jul 2022 May - Jul 2023 103 117 82 89 0 0 59 43 122 132 0 2 58 72 22 29 0 0 19 19 39 36 0 1 58 50 94 96 Social Work 0 1 122 101 359 382 Not Disclosed 1 2 419 402 Total 1 6 M S M S M S M S M S M S Total (May - Jul 2023) 28 0 0 0 87 0 11 0 22 0 148 0 Total (May - Jul 2022) 34 0 0 0 79 0 0 0 11 0 124 0 Total 148 124 M = MANAGEMENT REFERRAL S = SELF REFERRAL Occupational Health Reports Total Social Work Resource Community and Enterprise Education (Teachers) Education (Others) Total Resource Community and Enterprise Education Finance and Corporate Education Social Work Housing and Technical Resource Community and Enterprise Total Finance and Corporate Housing and Technical 380 No of Employees Referred To Employee Support Officer Total (May - Jul 2023) 273 Total (May - Jul 2022) Finance and Corporate Housing and Technical Total Referrals (May - Jul 2023) From: 1 May - 31 July 2023 comparison with 1 May - 31 July 2022 Medical Referrals Community and Enterprise Education Finance and Corporate Housing & Technical Social Work Totals Total Referrals (May - Jul 2022) No of Employees Referred For Cognitive Behavioural Therapy Analysis of Counselling Referrals by Cause Reason Work Stress Addiction Personal Anxiety/ Depression Bereavement No of Employees Referred For Physiotherapy 50
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2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 Specified Injury 0 1 0 1 0 0 0 0 2 1 2 3 Violent Incident: Physical 0 0 0 0 0 0 0 0 0 0 0 0 Total Specified Injury* 0 1 0 1 0 0 0 0 2 1 2 3 Over 7-day 6 7 2 1 0 0 6 1 3 3 17 12 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** 6 7 2 1 0 0 6 1 3 3 17 12 Over 3-day 0 0 2 0 0 0 0 0 0 1 2 1 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 0 2 0 0 0 0 0 0 1 2 1 Minor 18 34 8 13 1 1 2 4 17 16 46 68 Near Miss 2 3 1 3 0 0 0 0 2 1 5 7 Violent Incident: Physical 1 1 166 201 0 0 0 0 7 4 174 206 Violent Incident: Verbal 6 3 21 13 1 1 3 0 6 3 37 20 Total Minor*** 27 41 196 230 2 2 5 4 32 24 262 301 Total Accidents/Incidents 33 49 200 232 2 2 11 5 37 29 283 317 *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". Housing & Tech Analysis of Accidents/ Incidents Comparison Cause of Accidents/ Incidents to employees Appendix 10 Social Work TOTALCommunity and Enterprise Education From: 1 May - 31 July 2023 comparison with 1 May - 31 July 2022 Finance and Corporate 51
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APT&C Manual / Craft Teachers Total APT&C Manual / Craft Teachers Total Community and Enterprise 1 22 N/A 23 0 1 N/A 1 1 21 N/A 22 14 6 3 87% 23 Education 1 1 2 4 0 0 0 0 1 1 2 4 3 0 1 75% 4 Finance and Corporate 1 0 N/A 1 0 0 N/A 0 1 0 N/A 1 0 0 1 0% 1 Housing and Technical 2 0 N/A 2 0 0 N/A 0 2 0 N/A 2 1 0 1 50% 2 Social Work 0 6 N/A 6 0 0 N/A 0 0 6 N/A 6 4 2 0 100% 6 Total (May - Jul 2023) 5 29 2 36 0 1 0 1 5 28 2 35 22 8 6 83% 36 Total (May - Jul 2022) 4 30 0 34 0 4 0 4 4 26 0 30 20 4 10 71% 34 APT&C Manual/ Craft Teachers Total APT&C Manual/ Craft Teachers Total APT&C Manual/ Craft Teachers Total Total (May - Jul 2023) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total (May - Jul 2022) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *Resources nil responses are not included in figures Appeal's Panel From: 1 May - 31 July 2023 Appeal's Panel Total 0 Not Upheld Total Appeals Pending Withdrawn 1 Resource Resource Action Taken Upheld Upheld in Part Manual/ Craft Outcome of Disciplinary Hearings Manual/ Craft 1 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 210 Appendix 11 Outcome of Appeals Not Upheld From: 1 May - 31 July 2023 comparison with 1 May - 31 July 2022 Appeals pending to date Record of Disciplinary Hearings No of weeks to convene Disciplinary Hearing Total 52
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Appendix 12a Record of Grievances From: 1 May - 31 July 2023 comparison with 1 May - 31 July 2022 Grievances No of Grievances No Resolved at Stage 1 No Resolved at Stage 2 No Resolved at Stage 3 Still in Process Total (May - Jul 2023) 1 0 0 0 1 Total (May - Jul 2022) 5 1 4 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 (May - Jul 2023) 0 0 0 0 0 0 Total (May - Jul 2022) 1 0 1 0 0 0 From: 1 May - 31 July 2023 comparison with 1 May - 31 July 2022 53
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Appendix 12b Referrals for Workplace Mediation Workplace Mediation May-23 Jun-23 Jul-23 No of Referrals 2 1 0 *No of Successful Cases 0 0 0 *No of Unsuccessful Cases 0 0 0 No of cases unsuitable for mediation 1 0 1 Workplace Mediation May-22 Jun-22 Jul-22 No of Referrals 0 1 1 *No of Successful Cases 0 0 0 *No of Unsuccessful Cases 0 0 0 No of cases unsuitable for mediation 0 0 0 As at July 2023 *successful/unsuccessful case outcomes may be shown outwith the month they were referred. 54
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Appendix 13 From 1 May - 31 July 2023 Reason for leaving Community and Enterprise Education Finance and Corporate Housing & Technical Social Work Total % Career Advancement 3 6 0 1 6 16 40% Personal Reasons 0 1 2 2 1 6 15% Travelling difficulties 1 0 0 0 3 4 10% Moving outwith area 0 1 1 0 0 2 5% Further Education 0 0 0 0 1 1 3% Disatisfaction with terms and conditions 1 0 0 0 0 1 3% Child Caring / Caring Responsibilities 0 0 0 0 1 1 3% Poor relationship with managers / colleagues 0 0 0 0 1 1 3% Other 5 2 0 0 1 8 20% Number of exit interviews conducted 10 10 3 3 14 40 Total no. of leavers per Resource eligible for an exit interview 28 60 7 9 40 144 % of leavers interviewed 36% 17% 43% 33% 35% 28% From 1 May - 31 July 2022 Number of exit interviews conducted 6 19 4 7 20 56 Total no. of leavers per Resource eligible for an exit interview 34 41 15 15 37 142 % of leavers interviewed 18% 46% 27% 47% 54% 39% * Note these totals include temporary employees Analysis of leavers and exit interviews 55
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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 54.43 94.00 51.85 90.00 0.00 0.00 0.00 0.00 0.58 2.00 2.00 2.00 0.00 0.00 Education 87.33 104.00 84.38 100.00 0.85 1.00 0.00 0.00 1.50 2.00 0.60 1.00 0.00 0.00 Finance & Corporate 16.20 19.00 14.80 17.00 0.00 0.00 0.00 0.00 0.00 0.00 1.40 2.00 0.00 0.00 Housing & Technical 21.31 27.00 21.31 27.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Social Work 60.87 79.00 52.00 68.00 0.00 1.00 0.95 1.00 2.00 2.00 5.92 7.00 0.00 0.00 Total 240.14 323 224.34 302 0.85 2 0.95 1 4.08 6 9.92 12 0.00 0 Cumulative Grand Total 335.95 463 317.49 436 2.29 5 0.95 1 5.30 9 9.92 12 0.00 0 Appendix 13a May to July 2023 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 56
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Appendix 14 Applied Interviewed Appointed % of Applicants interviewed % of Applicants appointed % of Interviewees appointed 5583 2215 378 40% 7% 17% 1931 610 124 32% 6% 20% 3637 1286 263 35% 7% 20% 194 113 11 58% 6% 10% 4251 1466 265 34% 6% 18% 1271 537 117 42% 9% 22% 4884 1764 367 36% 8% 21% 659 277 23 42% 3% 8% 55 20 2 36% 4% 10% Applied Interviewed Appointed % of Applicants interviewed % of Applicants appointed % of Interviewees appointed 4246 2886 811 68% 19% 28% 1282 943 150 74% 12% 16% 2982 1857 577 62% 19% 31% 87 66 15 76% 17% 23% 3620 2427 600 67% 17% 25% 603 349 128 58% 21% 37% 4053 2660 695 66% 17% 26% 171 106 20 62% 12% 19% 36 15 0 42% 0% 0% Total Number of appointments: 473 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 May - 31 July 2023 From : 1 May - - 31 July 2022 802 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 5866 Total Number of Equal Opportunities Monitoring forms received: 5583 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: 426 Total No of applicants aged over 50 Total Number of posts recruited for: Total No of Veteran applicants Total Number of appointments: 0 Total Number of applications received: 4246 Total No of Male Applicants Total No of Disabled Applicants Total No of applicants aged under 50 803 57
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Appendix 15 Resource Total F/T P/T F/T P/T Total Chief Officer Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher Community & Enterprise Resources 3140 1263 250 201 1426 2215.82 5.00 1548.64 363.88 231.25 46.05 16.00 0.00 5.00 0.00 Education - Others 3322 130 100 675 2417 2438.98 3.00 1198.09 966.21 142.86 47.60 9.00 1.96 62.66 7.60 Education - Teachers 3840 680 72 2222 866 3471.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.60 3464.80 Finance & Corporate Resources 858 203 17 410 228 779.18 5.00 119.63 359.13 216.05 53.07 24.30 2.00 0.00 0.00 Housing & Technical 1288 805 27 329 127 1229.17 3.00 204.26 628.88 352.43 30.60 10.00 0.00 0.00 0.00 Social Work Resources 2709 206 198 979 1326 2370.75 3.00 361.42 1417.31 523.46 33.80 31.76 0.00 0.00 0.00 9033.90 (excluding Teachers) Total All Staff 15157 3287 664 4816 6390 12505.30 19.00 3432.04 3735.41 1466.05 211.12 91.06 3.96 74.26 3472.40 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 3017 1176 235 201 1405 2109.86 1.00 1432.36 372.02 234.43 44.05 17.00 4.00 5.00 0.00 Education - Others 3296 137 96 683 2380 2424.23 1.00 1182.76 959.29 148.36 46.00 13.00 3.96 62.26 7.60 Education - Teachers 3834 676 73 2227 858 3469.50 0.00 0.00 0.00 0.00 0.00 1.00 0.00 6.60 3461.90 Finance & Corporate Resources 873 207 19 414 233 791.40 2.00 124.78 358.72 219.55 58.05 22.30 6.00 0.00 0.00 Housing & Technical 1297 817 27 326 127 1237.80 1.00 207.47 634.50 352.23 29.60 11.00 2.00 0.00 0.00 Social Work Resources 2666 204 186 948 1328 2332.00 1.00 1105.28 633.47 523.69 36.80 29.76 2.00 0.00 0.00 8895.29 (excluding Teachers) Total All Staff 14983 3217 636 4799 6331 12364.79 6.00 4052.65 2958.00 1478.26 214.50 94.06 17.96 73.86 3469.50 QUARTERLYJOINT STAFFING WATCH RETURN : NUMBER EMPLOYED ON 11 MARCH 2023 Analysis by Resource Total Number of Employees Full-Time Equivalent Male Female Salary Band QUARTERLYJOINT STAFFING WATCH RETURN : NUMBER EMPLOYED ON 10 JUNE 2023 Analysis by Resource Total Number of Employees Full-Time Equivalent Male Female Salary Band 58
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Treasury Management Activity – 2023/2024 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 2023/2024 [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 2023 to 30 June 2023. 4. Market Performance 4.1. At the time of writing the base rate was 5.25% and the Bank of England Asset Purchase Programme (commonly referred to as its policy of quantitative easing) was £786 billion. The Council’s Treasury Management Advisers are predicting that the base rate will peak at 5.50% in September 2023 and begin to fall during the first quarter of 2024/2025. 5. Debt Management and Borrowing Strategy 5.1. The Council began the year with debt of £1,036.302 million with fixed rate loans from the Public Works Loans Board (PWLB) making up 99.18% of the debt. 5.2. Table 1 shows the movement in borrowing from 1 April 2023 to 30 June 2023. Short term borrowing reflects borrowing which will mature in the coming year, or where the debt can be recalled in the coming year. 8 59
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Table 1 – Movement in Borrowing to 30 June 2023 Balance as at 01/04/2023 £m New Borrowing £m Debt Maturing £m Debt Repaid £m Balance as at 30/06/2023 £m Increase/ Decrease in Borrowing £m Short Term Borrowing 21.770 0.000 (4.579) 0.00 17.191 (4.579) Long Term Borrowing 1,014.532 0.000 0.00 0.00 1,014.532 0.000 TOTAL BORROWING 1,036.302 0.000 (4.579) 0.00 1,031.723 (4.579) 5.3. 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. 5.4. The Council has an expected funding requirement of £266.257 million for 2023/2024 including £166.307 million carried over from 2022/2023. The report to South Lanarkshire Council on Service Concessions in January 2023 introduced a strategy that recognised the level of reserves and cash balances held by the Council to reduce the need to borrow for this funding requirement. After taking these into account, the Council has an expected borrowing requirement of £73.855 million for 2023/2024. 5.5. The Executive Director (Finance and Corporate Resources), under delegated powers, will continue to take the most appropriate form of borrowing depending on the prevailing interest rates at the time, taking into consideration the differential between investment earnings and debt costs that remains high. 5.6. No borrowing has been taken so far in the current financial year. Instead, cash balances have been used to fund capital spend. Borrowing to replace these balances will be required going forward. 6. Investment Activity 6.1. On a daily basis, the Treasury Management section within Finance and Corporate Resources manages the Council’s cash balances. These balances can result from day-to-day cash flow situations where income has been received before expenditure has taken place, and from the balances held in earmarked reserves for use at a later date. It is the responsibility of the section to manage these funds. The primary consideration when making deposits is the security of funds. Secondary to this, consideration is given to ensuring we have access to funds when necessary, and that these funds are working as well as they can for the Council. 6.2. The Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy Report for 2023/2024 was approved by South Lanarkshire Council on 22 February 2023. This included details of permitted investments for the Council. 6.3. Prior to depositing funds with any bank or building society, checks are made with the Council’s treasury adviser, Link Asset Services, that the institution is considered safe and that any deposit conforms to their recommended time duration as determined by their Rating Methodology. This methodology uses credit ratings, rating watches and outlooks and credit default swap (CDS) prices to establish a suggested time duration for deposits. 60
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6.4. Deposits made in the period 1 April 2023 to 30 June 2023 totalled £375.050 million. This is the cumulative deposits placed over this period. This is broken down per sector and institution in Table 3. 83.27% of these deposits were made with the UK Government through the Debt Management Office (DMO) deposit facility. 6.5. In order to manage their cash flow over the short term, local authorities, as part of normal treasury management activity, will place money on deposit with other local authorities. Deposits placed with other local authorities account for 13.99% of deposits. The remaining 2.74% was placed in instant access call accounts with Bank of Scotland and The Royal Bank of Scotland. Table 3 – Investment Activity 1 April 2023 to 30 June 2023 Counterparty Deposit Totals (£m) % of Total Deposits Average Interest Rate Deposits in UK Government Debt Management Account Deposit Facility 375.050 83.27% 4.32% Total Deposits in UK Government 375.050 83.27% 4.32% Deposits in UK Local Authorities 63.000 13.99% 4.67% Deposits in UK Banks and Building Societies: Bank of Scotland 10.046 2.23% 4.17% Royal Bank of Scotland 2.300 0.51% 1.00% Total Deposits in UK Banks and Building Societies 12.346 2.74% 3.58% Total Deposits 01/04/2023 to 30/06/2023 450.396 100.00% 4.35% 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 2023 totalled £205.286 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 2023 and set a framework for Treasury Management activities in 2023/2024. It also set limits on debt and investments in order to mitigate risks. 7.2. The Annual Investment Strategy for 2023/2024, also approved in February 2023, 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. 61
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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 6 show a breakdown of deposits with details of the credit ratings of banks and building societies used from 1 April 2023 to 30 June 2023. 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-) 375.050m 83.27% Deposits with Local Authorities 63.000m 13.99% A+ F1 12.346m 2.74% Total 450.396m 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) 375.050m 83.27% Deposits with Local Authorities 63.000m 13.99% A1 P-1 12.346m 2.74% Total 450.396m 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) 375.050m 83.27% Deposits with Local Authorities 63.000m 13.99% A+ A-1 10.046m 2.23% A A-1 2.300m 0.51% Total 450.396m 100.00% 7.5. The tables above show that 97.26% of deposits were made with counterparties of very high credit quality (DMO/UK Government and other local authorities). The remaining 2.74% were deposits in instant access accounts with Bank of Scotland and The Royal Bank of Scotland. 7.6. The graph at Appendix 1 shows the duration of deposits made from 1 April 2023 to 30 June 2023. The graph shows that, since 1 April 2023, all deposits have been made for 1 year or less. The maximum maturity period of 183 days was for a deposit of £5.000 million. 62
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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. 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 2023/2024 approved by South Lanarkshire Council on 22 February 2023. 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 2023/24 Strategy Minimum Headroom to Limits in period Headroom as at 30/06/2023 £m £m £m Operational Limit for external debt 1,270.000 233.698 238.277 Authorised Limit for external debt 1,290.000 253.698 258.277 9.3. The indicator shows that we have not breached the operational and authorised limits to 30 June 2023. There has been a minimum level of headroom of £253.698m between actual and authorised level for external debt in the period to 30 June 2023. 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. 63
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Table 8 – Limits on Maturity Structure Maturity Structure of Borrowing Upper Limit Lower Limit Maximum for period to 30/06/23 Actuals as at 30/06/23 Under 12 months 30% 0% 2.10% 1.67% 12 months and 24 months 30% 0% 3.27% 3.27% 24 months and 5 years 50% 0% 25.24% 25.24% 5 years and 10 years 60% 0% 32.57% 32.57% 10 years and 20 years 60% 0% 4.22% 4.22% 20 years and 30 years 70% 0% 11.16% 11.16% 30 years and 40 years 80% 0% 21.87% 21.87% 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 2023. 10. Employee Implications 10.1. There are no employee implications. 11. Financial Implications 11.1. The current rate of interest receivable remains relatively low but has increased over recent months. Any deposit interest received offsets Loan Charges made to the Council’s Revenue budget. 11.2. The costs of borrowing for capital expenditure have been built into the long-term Revenue Budget Strategy. 12. Climate Change, Sustainability and Environmental Implications 12.1. There are no implications for climate change or sustainability in terms of the information contained in this report. 12.2. There is also no requirement to carry out an environmental impact assessment in terms of the information contained within this report. 13. Other Implications (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) 23 August 2023 64
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Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Service Concessions, South Lanarkshire Council, 18 January 2023 Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy 2023/2024, South Lanarkshire Council, 22 February 2023 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Jackie Taylor, Head of Finance Ext: 5637 (Tel: 01698 455637) E-mail: jackie.taylor@southlanarkshire.gov.uk 65
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Appendix 1 66
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Prudential Indicators, Treasury Management Activity and Annual Investment Report 2022/2023 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 2022/2023 allow Committee to scrutinise the proposed Annual Investment Report for 2022/2023 [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 2022/2023 (Section 4 and Appendix 1), be noted; (2) that the 2022/2023 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 2022/2023 Annual Investment Report (Appendix 3) be endorsed; and (5) that the 2022/2023 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 2022/2023 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. 9 67
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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 2022/2023 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 2022/2023 is summarised in Section 6 of this report with the detail in Appendix 3. 3.6. The Annual Investment Strategy for 2022/2023, approved in February 2022, recognised that any investment activity carries an element of risk. Appendix 4 details the investments that the Council were permitted to use in 2022/2023, 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 2022/2023. 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 2022/2023 4.1. Appendix 1 details the Treasury Management Activity for 2022/2023. 4.2. The Council ended the year with borrowing of £1,036.302 million with fixed rate loans from the Public Works Loans Board (PWLB) making up 99.18% 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 2022/2023 was 3.59% (3.54% in 2021/2022), 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 £160.770 million with the level varying throughout the year due to the timing of expenditure and receipts. 4.5. During 2022/2023, the Council placed £1,754.510 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 £4.716 million. 5. Treasury Management and Prudential Code Indicators – 2022/2023 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 2022/2023. 68
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5.2. The General Fund Capital Expenditure for 2022/2023 was £62.972 million which is £15.300 million less than estimated in the Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy report presented to South Lanarkshire Council in February 2023. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 21 June 2023. 5.3. The Housing Revenue Account Capital Expenditure in 2022/2023 was £60.695 million which is £5.666 million less than the estimate reported to South Lanarkshire Council in February 2023. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 21 June 2023. 5.4. The Council’s gross borrowing position for 2022/2023 was £1,215.435 million. This consists of external borrowing of £1,036.302 million and the PPP Finance Lease Liability of £179.133 million. Gross borrowing is less than the capital financing requirement of £1,381.742 million due to the fact that only £86.700 million of long- term borrowing was taken during 2022/2023. 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 £86.700 million, interest costs for 2022/2023 were reduced and savings from this used to support the Revenue Budget Strategy going forward. 5.7. The Capital Financing Requirement for the General Fund is £11.217 million lower than forecast and for HRA is £12.033 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 2022/2023. 6. Annual Investment Report – 2022/2023 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 2022/2023 is detailed in Appendix 3 and summarised below. 6.2. During 2022/2023, the Council placed £1,754.510 million of deposits on a cumulative basis. All deposits made by the Council were in line with approved lending limits and credit rating criteria. £1,619.215 million (92.29%) of deposits were made with counterparties of very high credit quality (UK Government – Debt Management Account Deposit Facility (DMADF), Treasury Bills and other local authorities). The remaining £135.295 million (7.71%) was deposited in instant access call accounts with Bank of Scotland and Royal Bank of Scotland and in fixed term deposits with Clydesdale Bank. 69
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6.3. In order to manage liquidity risk, the Council held an average of £4.645 million in bank accounts with instant access. 6.4. No borrowing in advance was taken during 2022/2023. 7. Employee Implications 7.1. None 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 2022/2023 the amounts charged to the General Fund in relation to debt (loan charges) totalled £34.397 million. HRA loan charges totalled £14.192 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 2022/2023, 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. 70
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Paul Manning Executive Director (Finance and Corporate Resources) 29 August 2023 Link(s) to Council Values/Priorities/Outcomes Value: Accountable, effective, efficient and transparent Previous References Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy 2022/2023, South Lanarkshire Council, 23 February 2022 Treasury Management Activity – First Quarter Review, Finance and Corporate Resources Committee, 7 September 2022 Treasury Management Activity – Second Quarter Review, Finance and Corporate Resources Committee, 16 November 2022 Treasury Management Activity – Third Quarter Review, Finance and Corporate Resources Committee, 15 February 2023 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Jackie Taylor, Head of Finance Ext: 5367 (Tel: 01698 455367) E-mail: jackie.taylor@southlanarkshire.gov.uk 71
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Appendix 1 Treasury Management Activity Report 2022/2023 1. Background 1.1. The Annual Treasury Management Activity Report is a requirement of the Council’s reporting procedures and covers 2022/2023. The report also includes the Treasury Management Indicators for 2022/2023 in accordance with the requirements of the CIPFA Code of Practice for Treasury Management in the Public Sector and actual Prudential Indicators for 2022/2023 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 2022/2023; ▪ The Council’s treasury position at 31 March 2023; ▪ Economic Background for 2022/2023; ▪ Actual Performance During 2022/2023; ▪ Risk Management; ▪ Treasury Management and Prudential Indicators (see Appendix 2) 3. The Strategy Agreed for 2022/2023 3.1. At the time of determining the strategy for 2022/2023, 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. 72
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3.3. The differential between investment earnings and debt costs was expected to remain high throughout 2022/2023. 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 2023 4.1. The Council began the year with debt of £993.486m with fixed rate loans from the Public Works Loans Board (PWLB) making up 99.14% of the debt. By 31 March 2023, debt had increased to £1,036.302m of which 99.18% was fixed rate loans from the PWLB. 4.2. Table 1 below shows the movement in borrowing to 31 March 2023. Table 1 – Movement in Borrowing from 1 April 2022 to 31 March 2023. Balance as at 01/04/2022 £m New Borrowing £m Debt Maturing £m Debt Repaid £m Balance as at 31/03/2023 £m Increase/ Decrease in Borrowing £m Short Term Borrowing 43.884 0.000 (43.884) 0.000 0.000 (43.884) Long Term Borrowing 949.602 86.700 0.000 0.000 1,036.302 86.700 TOTAL BORROWING 993.486 86.700 (43.884) 0.000 1,036.302 42.816 4.3. The Treasury Position at the 31 March 2023 compared with the previous year is shown in Table 2 overleaf: 73
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Table 2 – Treasury Position as at 31 March 2023 31 March 2023 31 March 2022 Principal Average Rate Principal Average Rate Fixed PWLB £1,027.802m 3.80% £984.986m 3.91% Fixed Market £0.000m 0.00% £0.000m 0.00% Total Fixed Rate Debt £1,027.802m 3.80% £984.986m 3.91% Market £8.500m 5.46% £8.500m 5.46% Total Variable Rate Debt £8.500m 5.46% £8.500m 5.46% Total Debt £1,036.302m 3.81% £993.486m 3.92% Total Deposits £160.770m 3.96% £132.070m 0.48% 4.4. The gross debt position increased by £42.816m from 31 March 2022, accounted for by repayments of PWLB (£43.884m) offset by new borrowing from the PWLB (£86.700m). 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 2022/2023 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 2022/23 3.59% 0.07% 2021/22 3.54% 0.07% 2020/21 3.78% 0.06% 5. Economic Background for 2022/2023 5.1. The base rate began the year at 0.75%, and following a series of increases by the Bank of England ended the year at 4.25%. 5.2. Gilt yields and PWLB rates were volatile throughout 2022/2023, but with an overall increasing trend. The average PWLB rates at the start of 2022/2023 was 2.54%. This increased to a peak of 5.61% in September 2022 before falling back to 4.45% by the 31 March 2023. 5.3. Details of significant interest rates during 2022/2023 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 4.25% 5.44% 5.45% 5.71% 5.87% 5.79% 5.63% 5.51% Average 2.30% 3.62% 3.76% 4.00% 4.09% 4.00% 3.84% 3.74% Low 0.75% 2.18% 2.36% 2.51% 2.55% 2.46% 2.32% 2.25% 74
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6. Actual Performance during 2022/2023 6.1. Capital expenditure for the year was £123.667m. During 2022/2023 the Council secured £86.700m of long term borrowing from the PWLB. Details of the long-term borrowing taken from the PWLB during 2022/2023 are shown in Table 5 below. Table 5 – PWLB Long Term Borrowing, 1 April 2022 – 31 March 2023 Loan Ref. Period Principal £m Rate % Year High Year Low Year Average 513025 2½ - 3 Yrs £57.800 2.38 5.42 2.08 3.62 538409 7½ -8 Yrs £28.900 2.43 5.39 2.29 3.67 £86.700 2.40 6.2. The Council had a borrowing requirement of £253.007m for 2022/2023, including £118.683m carried over from previous years. 6.3. The report to South Lanarkshire Council on Service Concessions in January 2023 introduced a strategy that recognised the level of reserves and cash balances held by the council to reduce the need to borrow for this funding requirement. After taking these into account, the council had an expected borrowing requirement of £36.641m for 2022/23. 6.4. Borrowing was taken at interest rates that were consistent with the Council’s long- term borrowing strategy. The borrowing that was taken over and above the requirement is carried forward and used to reduce the borrowing requirement in 2023/2024. 6.5. During 2022/2023, the Council placed £1,754.510m 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 £4.176m. Further details on deposits are included in the annual investment report within this Committee paper. 7. Risk Management 7.1. The Council has complied with all of the relevant statutory and regulatory requirements which limit the levels of risk associated with its treasury management activities. In particular its adoption and implementation of both the Prudential Code and the CIPFA Treasury Management Code of Practice means both that its capital expenditure is prudent, affordable and sustainable, and its treasury practices demonstrate a low risk approach. 7.2. Investment Risk The main consideration when investing surplus funds is the security of the transaction. Through adoption on the CIPFA Code of Practice and through the Councils Annual Investment Strategy the Council mitigates risks associated with all our permitted investments. 7.3. Interest Rate Risk The Council’s capital programme is funded in part by borrowing. Consideration has always been given to the optimum time to borrow funds to ensure cash flow is maintained, that any risks of increasing borrowing interest rates are minimised and that takes into account the level of cash balances available to the Council. 75
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8. Treasury Management and Prudential Indicators 8.1. The Treasury Management and Prudential Indicators are detailed in Appendix 2 to this report. 76
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Appendix 2 Treasury Management and Prudential Indicators 2022/2023 1. Treasury Management Indicators 2022/2023 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 31/03/23 Actuals as at 31/03/23 Under 12 months 30% 0% 4.47% 0.00% 12 months and 24 months 30% 0% 2.20% 2.10% 24 months and 5 years 50% 0% 21.71% 21.62% 5 years and 10 years 60% 0% 37.33% 37.33% 10 years and 20 years 60% 0% 6.35% 6.07% 20 years and 30 years 70% 0% 3.06% 2.92% 30 years and 40 years 80% 0% 31.36% 29.96% 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 2022/2023 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. 77
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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 £827.176m advances from the Loans Fund. During 2022/2023 new advances of £19.042m were made to part fund the Capital Programme, while repayments of £2.821m were made from the Council’s revenue expenditure. This left a closing balance of £843.397m to be repaid over the next 50 years. 4.4. The HRA had an opening balance of £282.841m advances from the Loans Fund. During 2022/2023 new advances of £14.383m were made to part fund the HRA Capital Programme, while repayments of £4.531m were made from the HRA. This left a closing balance of £292.693m 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 2023. 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 2022/23 827.176 19.042 -2.821 843.397 2023/24 843.397 0.000 -3.268 840.129 2024/25 – 2027/28 840.129 0.000 -60.467 779.662 2028/29 – 2032/33 779.662 0.000 -98.670 680.992 2033/34 – 2037/38 680.992 0.000 -111.639 569.353 2038/39 – 2042/43 569.353 0.000 -123.333 446.020 2043/44 – 2047/48 446.020 0.000 -125.587 320.433 2048/49 – 2052/53 320.433 0.000 -124.964 195.469 2053/54 – 2057/58 195.469 0.000 -98.959 96.510 2058/59 – 2062/63 96.510 0.000 -49.847 46.663 2063/64 – 2067/68 46.663 0.000 -38.866 7.797 2069/70 – 2072/73 7.797 0.000 -7.797 0.000 Housing Revenue Account Opening Balance New Advances Repayments Closing Balance 2022/23 282.841 14.383 -4.531 292.693 2023/24 292.693 0 -8.348 284.345 2024/25 – 2027/28 284.345 0 -35.584 248.761 2028/29 – 2032/33 248.761 0 -47.787 200.974 2033/34 – 2037/38 200.974 0 -47.627 153.347 2038/39 – 2042/43 153.347 0 -34.184 119.163 2043/44 – 2047/48 119.163 0 -39.749 79.414 2048/49 – 2052/53 79.414 0 -39.880 39.534 2053/54 – 2057/58 39.534 0 -25.749 13.785 2058/59 – 2062/63 13.785 0 -13.785 0.000 78
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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 2022/2023 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 2022/2023. The 2022/2023 estimate is also shown. Actual £ m Estimate £ m Variance £ m General Fund Capital Expenditure 62.972 78.272 -15.300 Funded by: Borrowing 19.042 30.260 -11.218 Capital receipts and grants 43.056 46.098 -3.042 Revenue contributions 0.874 1.914 -1.040 Total Funding 62.972 78.272 -15.300 HRA Capital Expenditure 60.695 66.361 -5.666 Funded by: Borrowing 14.383 26.462 -12.079 Capital receipts and grants 20.262 13.849 6.413 Revenue contributions 26.050 26.050 0.000 Total Funding 60.695 66.361 -5.666 6.1.2. The General Fund Capital Expenditure for 2022/2023 was £62.972m which is £15.300m less than estimated in the Prudential Indicators, Treasury Management Strategy and Annual Investment Strategy report presented to South Lanarkshire Council in February 2023. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 21 June 2023. 6.1.3. The Housing Revenue Account Capital Expenditure in 2022/2023 was £60.695m which is £5.666m less than the estimate reported to South Lanarkshire Council in February 2023. The details of this have been reported to the Executive Committee over recent months, with a final position being reported on 21 June 2023. 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. 79
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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 2022/2023 plus any additional capital financing requirement over 2023/2024 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 £11.217m lower than forecast and for HRA is £12.033m 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 2023 Actual £ m 31 March 2023 Estimate £ m Variance General Fund Capital Financing Requirement 1,089.036 1,100.253 -11.217 HRA Capital Financing Requirement 292.706 304.739 -12.033 Total Capital Financing Requirement 1,381.742 1,404.992 -23.250 Treasury Position as at 31 March 2023 Borrowing 1,036.302 1,036.302 0.000 PPP Finance Lease Liability 179.133 179.133 0.000 Gross Debt 1,215.435 1,215.435 0.000 6.2.5. The Council’s gross borrowing position for 2022/2023 was £1,215.435m. This consists of external borrowing of £1,036.302m and the PPP Finance Lease Liability of £179.133m. Gross borrowing is less than the capital financing requirement of £1,381.742m due to the fact that only £86.700m of long-term borrowing was taken during 2022/2023. 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 £86.700m interest costs for 2022/2023 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 80
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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. 2022/2023 £ m Operational Limit for External Debt 1,340.000 Authorised Limit for External Debt 1,360.000 Maximum Borrowing Position During the Period 1,060.820 Operational Limit for Other Liabilities (PPP/Finance Lease) 190.000 Authorised Limit for Other Liabilities (PPP/Finance Lease) 190.000 Maximum PPP/Finance Lease Liability 186.290 6.3.3. The table demonstrates that during 2022/2023 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. 2022/23 Actual £ m 2022/23 Estimate £ m General Fund Ratio of Financing Costs to Net Revenue Stream (expressed as %) 4.47% 4.96% HRA General Fund Ratio of Financing Costs to Net Revenue Stream (expressed as %) 13.98% 17.16% 7.1.2. For the General Fund, the ratio is less than forecast due to lower borrowing costs and the Net Revenue Stream being higher than forecast. 7.1.3. For the HRA, the ratio is less due to actual borrowing costs being lower than forecast and a slight increase in income. 81
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Appendix 3 Annual Investment Report 1. Permitted Investments 1.1. During 2022/2023 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 2022 to 31 March 2023 totalled £1,754.510m. This is broken down per sector and institution in the table below. 79.82% of these deposits were made in the UK Government through the Debt Management Account Deposit Facility (DMADF) or Treasury Bills. Counterparty Deposit Totals (£m) % of Total Deposits Average Interest Rate Deposits in UK Government Debt Management Account Deposit Facility 1,362.525 77.66% 2.17% Treasury Bills 37.840 2.16% 1.87% Total Deposits in UK Government 1,400.365 79.82% 2.16% Deposits in UK Local Authorities 218.850 12.47% 3.00% Deposits in UK Banks and Building Societies Clydesdale Bank 40.000 2.28% 2.60% Bank of Scotland 6.370 0.36% 0.53% Royal Bank of Scotland 88.925 5.07% 0.58% Total Deposits in UK Banks 135.295 7.71% 1.18% Total Deposits 01/04/2022 to 31/03/2023 1,754.510 100.00% 2.19% 1.3. The average interest rates achieved from the deposits are shown in the table above. Interest rates achievable for deposits have been increasing, however there is still a differential between these and the rates at which the Council can borrow. 1.4. Actual deposits as at 31 March 2023 totalled £160.770m. 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 82
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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 2022 to 31 March 2023. Deposits with the DMADF are with the UK Government and so have a very high credit rating. Deposits with local authorities are considered to be of very high credit quality despite most local authorities not having formal credit ratings. Fitch Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO/UK Government (AA-) 1,400.365m 79.82% Deposits with Local Authorities 218.850m 12.47% A+ F1 95.295m 5.43% A- F|2 40.000m 2.28% Total 1,754.510m 100.00% Moody’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (Aa3) 1,400.365m 79.82% Deposits with Local Authorities 218.850m 12.47% A1 P-1 95.295m 5.43% A3 P-2 40.000m 2.28% Total 1,754.510m 100.00% Standard and Poor’s Ratings Long Term Rating Short Term Rating Deposits Totals Percentage of Total Deposits Deposits with DMO / UK Government (AA) 1,400.365m 79.82% Deposits with Local Authorities 218.850m 12.47% A+ A-1 6.370m 0.36% A A-1 88.925m 5.07% A- A-2 40.000m 2.28% Total 1,754.510m 100.00% 2.4. The tables show that 92.29% 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 £4.645m in bank accounts with instant access. 2.6. No deposits were placed for periods in excess of 364 days. 83
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3. Borrowing in Advance 3.1. No borrowing in advance was taken during 2022/2023. 84
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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. 85
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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. 86
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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. 87
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Revenue Collection and Approval for Write Offs 1. Purpose of Report 1.1. The purpose of the report is to:- advise Committee of revenue collection performance for financial year 2023/2024 to 31 August 2023 advise Committee of performance regarding the Business Rates Incentivisation Scheme (BRIS) for financial year 2023/2024 to 31 August 2023 seek approval for write offs 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that performance in the collection of revenue be noted; (2) that the current position in respect of BRIS be noted; and (3) that write offs for the following be approved:- Council Tax £1,956,152.04 Non-Domestic Rates £435,848.83 BID Levy £347.17 Sundry Debt £203,392.20 Housing Rent and associated charges £216,613.34 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 2023/2024. 4.2. The annual Council Tax collection target for 2023/2024 has been set at 95.2%. Council Tax collection is currently 50.82%, ahead of target by 0.09% but behind comparable performance in 2022/2023 by 3.99%. Due to the Scottish Government’s Cost of Living Award being allocated as an up-front cash payment at the beginning of 2022/2023, a comparison with the same period in 2023/2024 is not on a like-for- like basis. 10 89
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4.3. A Non-Domestic Rates (NDR) collection target of 97.0% has been set for 2023/2024. NDR collection is currently 42.3%, ahead of target by 0.1% and behind comparable performance in 2022/23 by 6.4%. The reduction in comparable performance is due to the profile of payments received in comparison with the same period last year. 4.4. The 2023/2024 annual target for Sundry Debt collection has been set at 97.0%. Sundry Debt collection to 31 August 2023 was 97.4%, ahead of target by 0.4% and behind comparable performance in 2022/23 by 0.6%. 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 2023/2024 arrears annual target for Council Tax has been set at £3.000 million, with collection to 31 August 2023 of £1.442 million, ahead of target by £0.026 million (0.9%) but behind comparable performance in 2022/2023 by £0.416 million. 5.3. The 2023/2024 arrears target for NDR has been set at £2.000 million, with collection to 31 August 2023 of £1.570 million, ahead of target by £0.049 million (2.4%) but behind comparable performance in 2022/2023 by £0.352 million. 5.4. The 2023/2024 arrears target for Sundry Debt has been set at £9.519 million, with collection to 31 August 2023 of £7.585 million, equal to target but behind comparable performance in 2022/2023 by 9.5%. 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 previously confirmed that the scheme has been suspended for 2020/2021, 2021/2022 and 2022/2023. Further guidance and information is awaited from the Scottish Government with regards to reinstatement in 2023/2024. 6.4. Nonetheless, BRIS performance continues to be monitored closely and will be reported to Committee on a quarterly basis in 2023/2024. 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 2023/2024 totals £1,956,152.04, relating mainly to prescribed debt, sequestrations and estates of the deceased. This includes the bulk write off of prescribed debt for financial year 1996/1997. 90
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7.3. The value of accounts currently marked for write off in the Non-Domestic Rates system from rating years 2021/2022 to 2023/2024 totals £435,848.83. 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 £347.17, 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 £203,392.20. Appendix 2 provides a breakdown of the proposed write-off over categories. 7.6. Approval is sought for the write off of former tenant rent arrears of £184,711.61 and Housing Benefit Overpayments of £31,901.73. 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) 8 September 2023 91
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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 - 28 June 2023 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 92
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Appendix 1 SOUTH LANARKSHIRE COUNCIL REVENUES COLLECTION FOR PERIOD ENDING 31 AUGUST 2023 Annual Budget Cash Target Actual Variance % Variance Budget to 31/08/23 to 31/08/23 to 31/08/23 to Notes £000's £000's £000's £000's annual budget FINANCIAL YEAR 2023/2024 Council Tax 154,264 82,212 82,357 145 over 0.09% Non-Domestic Rates 372,703 162,145 162,464 319 over 0.1% Sundry Debt 117,901 117,901 118,379 478 over 0.4% ARREARS Council Tax 3,000 1,416 1,442 26 over 0.9% Non-Domestic Rates 2,000 1,521 1,570 49 over 2.4% Sundry Debt 9,519 7,587 7,585 (2) - 0.0% 93
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Appendix 2 BREAKDOWN OF PROPOSED SUNDRY DEBT WRITE-OFF Resource Service No. of Accounts Value (£) Housing & Technical Capital Repairs 2 2,545.88 Estates 16 4,626.44 Housing Support Services / H&T General 4 286.70 Rechargeable Repairs 352 91,970.83 Social Work Residential Services / Non Residential Services 669 90,214.76 Finance & Corporate Housing Benefit Overpayments / Money Matters Advice 7 12,031.59 Community & Enterprise Roads 5 1,716.00 Total 1,055 203,392.20 94
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Annual Procurement Report - 2022/2023 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] present the Annual Procurement Report for 2022/2023 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the Annual Procurement Report for 2022/2023 be noted. [1recs] 3. Background 3.1. The Procurement (Scotland) Reform Act 2014 requires contracting authorities to prepare and publish an annual procurement report on its regulated procurement activities. 3.2. This report to Committee provides an overview of the annual report highlighting key content from each of the sections. The full annual report is provided as Appendix 1. 4. Annual reporting requirements 4.1. The Act states that the annual report must include:- Regulated procurement activity Procurement strategy Community Wealth Building and Community Benefits Sustainable Procurement and Supported Businesses Future planning Other information 4.2. Section 2: Regulated Procurement Activity 4.2.1. Regulated procurement is defined by the Procurement Reform (Scotland) Act 2014 as any procurement with an estimated value of over £50,000 for supplies or services or £2 million for works contracts. 4.2.2. The Council’s contract awards in 2022/2023, as detailed in Appendix 1 of the annual report, was 169 contracts (over £50,000) with a total value of £111 million. This compares to 164 contracts for the same period in 2021/2022. 4.3. Section 3: Regulated Procurement Compliance 4.3.1. This section sets out how procurements carried out demonstrated compliance with the Council’s Procurement Strategy and Procurement regulations. 11 95
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4.3.2. The Procurement Strategy 2020 to 2023 was approved by Committee in May 2020. The Strategy is subject to annual review, including an action plan to ensure continuous improvement across procurement activity. A summary of the Council’s strategic objectives is included as Appendix 2 and the Annual Report highlights actions completed during 2022/2023, including implementation of Fair Work First, improved weighting for sustainability in tenders and responding to supply chain and pricing issues. 4.3.3. The Annual Report also outlines the Council’s arrangements to ensure compliance, transparency and Value for Money. 4.4 Section 4: Community Wealth Building and Community Benefits 4.4.1. This section of the annual report has been developed to focus on procurement outcomes from the Community Wealth Building Strategy, including levels of local spend. Local spend was maintained at 18%, representing £63 million of spend with local enterprises. 4.4.2. The Council’s approach to secure Community Benefits is outlined in the Annual Report, with descriptions of suitable benefits which will be considered in all regulated tenders, including employability, local supply chains and recently extended to include Community Wish Lists. In total, 161 Community Benefit commitments are listed, and case studies of Community Benefit projects are included, including the Clyde Bridge and Biomass supply and maintenance contracts. 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 include implementation of Fair Work First guidance, completion of the Prioritisation Framework (summarised in the Annual Report) and use of the sustainability test to embed sustainability measures in a 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/EUD. The Council’s contractual activity with supported businesses and social enterprises is noted, including Haven Products, Hey Girls and Scotland’s Bravest Manufacturing Company. 4.6. Section 6: Future Planning 4.6.1. A summary of the regulated procurements the authority expects to award in the next 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. 4.6.2. The procurement programme for 2023/2024 and 2024/2025 contains 230 projects, with a value in excess of £50,000, including high value waste and construction projects and continuing phases of the various Education and Social Care long term Procured Service Arrangements. A new Care at Home contract will be a key procurement in 2023/2024. 96
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4.7. Section 7: Further information 4.7.1. Information to be included in this section is not prescribed, however, the Council has highlighted several areas, including local and SME spend analysis and payables and e-invoicing performance information for 2022/2023. 4.7.2. As referenced at 4.4.1, spend in the South Lanarkshire area (for all contractors, including SMEs) was stable at 18%, although this represented an increase of £1 million in local spending to £63 million. 4.7.3. A geographical analysis of spend is included in the annual procurement report and quantifies spend for the wider Lanarkshire area (33%), Glasgow City Region (47%) and across Scotland (70%): spend retained within Scotland having increased from 64% in 2021/2022. 4.7.4. The Procurement Service continue to work in partnership with the Economic Development Service and the Supplier Development Programme to improve the participation of local SMEs in Council contracts, an area of focus in the spend pillar of the council’s Community Wealth Building strategy. 4.7.5. An analysis of the impact on local spend through collaborative arrangements is also included in the annual report, noting that £7.7 million (16%) of South Lanarkshire Council spend via Scotland Excel frameworks is with local enterprises, an increase from 13% in 2021/2022. £62 million of spend is directed to South Lanarkshire companies from Scotland Excel in total. Similarly, council spend with Hub South West resulted in local sub-contracted spend of £10.9 million (46% of spend from Council projects) but Hub South West’s total sub-contracted spend in South Lanarkshire was £97 million, indicating a much wider economic benefit from collaboration. 4.8. The Annual Procurement Report 2022/2023 is attached as an Appendix for noting and publication thereafter. 5. Employee Implications 5.1. The forward programme presents a significant number of projects for delivery by the Procurement Team, at time when the recruitment of experienced procurement staff continues to be extremely challenging. However, the recruitment of graduate procurement staff helps to maintain the capacity of the team supported by experienced procurement officers. 6. Financial Implications 6.1. None. 7. Other Implications 7.1. Given the large volume of projects identified in the forward programme there is a risk that some procurement activity may be affected due to resourcing challenges. Projects will therefore continue to be prioritised and assessed to minimise the risk of disruption. 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. 97
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Paul Manning Executive Director (Finance and Corporate Resources) 8 September 2023 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Ambitious, self-aware and improving Previous References Procurement Strategy 2020-2023, Executive Committee, 13 May 2020 Annual Procurement Report 2021/2022, Finance and Corporate Resources Committee, 7 September 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:- Craig Fergusson, Head of Finance (Transactions) Ext: 4951 (Tel: 01698 454951) E-mail: craig.fergusson@southlanarkshire.gov.uk 98
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Finance and Corporate Resources Executive Director Paul Manning Annual Procurement Report 2022/2023 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 11 99
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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 100
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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 2022 to 31 March 2023, as required by the Procurement Reform (Scotland) Act 2014. During this period, the Council’s total procured spend was £388m. 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 2022/2023 activities were impacted by pandemic recovery activity and challenging economic market conditions, including supply chain pressures and increasing inflation. The Procurement Service continued to support Council services through this challenging period while continuing to focus on the seven objectives of the Council’s Procurement Strategy: Compliance Value for Money Collaborate Contract and Supplier Management Fair Work First Sustainable and Ethical Community Wealth Building 101
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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 169 contracts over £50,000 in 2022/2023, with a total award value of £111.1m, as listed in Appendix 1. This includes both regulated and non-regulated contracts, with the Council publishing all awards over £50,000 in this Annual Procurement Report for transparency. 102
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3. Regulated Procurement Compliance The Procurement Reform (Scotland) Act 2014 requires all contracting authorities to publish a Procurement Strategy. 2022/2023 was the last year in our Procurement Strategy 2020-2023, which aimed 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 updated priorities. A summary of the Council’s strategic procurement objectives is included in Appendix 2. Progress in achieving our Procurement Strategy action plan is monitored by the Council’s Corporate Management Team and Finance and Corporate Resources Committee. Key achievements in 2022/2023 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. Improvements in the Council’s approach to sustainable procurement by introducing a new approach to weighting sustainability in tenders and developing use of the Sustainable Procurement Toolkit. Supporting the local spend pillar under the Council’s Community Wealth Building Strategy, including supplier engagement events. Procurement Compliance and Transparency The Council’s procurement activity, including regulated procurements, is undertaken in accordance with a legal and procedural framework to ensure compliance. Legal requirements are underpinned by the Council’s Standing Orders on Contracts and procedural arrangements are as set out in the Scottish Government’s Procurement Journey. Additional governance and monitoring arrangements for regulated procurements ensure a robust structure is in place to ensure compliance. At a practical level this consists of the preparation and authorisation of sourcing strategies and tender documentation through to robust arrangements for authorisation of awards. To maintain the highest standards of transparency, the Council’s Standing Orders on Contracts mandate that all contract awards over £50,000 are reported to Committee, with all reports available in the public domain. The Council also maintains a publicly accessible online contracts register with access to all contract awards of all values. The Council also has a scrutiny review structure in place to review tendering and award arrangements for high-risk procurements. These arrangements provide assurance that all regulated procurements were materially compliant with the strategy. 103
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The Council monitors contractual compliance, with 97% of 2022/2023 spend over £50,000 with contracted suppliers. A quarterly review process is in place to identify, and resolve spend with non-contracted suppliers. Value for Money Value for Money in contractual arrangements is a key strategic objective of the Procurement Service and a review of procured spend is one of the Council’s 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. 4. 5. 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: £63m invested in the local economy, an increase from £62m in 2022/2023. Maintaining spend levels with local enterprises at 18% of core trade spend. Embedding the use 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 February 2023 and participation in National Meet the Buyer events. Participation in the Build Lanarkshire events over an 8 week period including presentations on Quick Quotes, Community Benefits, Community wish lists and building new supplier relationships. Promotion of subcontracting opportunities for local enterprises with Scotland Excel framework opportunities and HubSW projects. Community Benefits Community Benefit clauses require contactors to deliver long term sustainable social and economic benefits to the South Lanarkshire community, while demonstrating Best Value in contract awards. The Procurement Reform (Scotland) Act 2014 requires the Council to consider Community Benefits for contract values over £4m, however, the Council will consider 104
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inclusion of Community Benefits in all regulated tenders (over £50,000), regardless of value, where appropriate to the supplier, value and duration of the contract. Consideration of Community Benefits is embedded in the Council’s Sourcing Strategy and clearly stated in the tender documents to ensure transparency and fairness in the evaluation process. The Council has a points-based system to target Community Benefits, with the number of points based on the value and duration of the contract. Suppliers select appropriate community benefits from the Council’s menu of deliverables, including employability through apprenticeships, work placements, local employment and engagement with local and SME subcontractors in the supply chain. In 2022/2023, the Council reviewed the Community Benefit points menu to include commitments from the Community Wish List. Of the 169 contracts awarded during the reporting period, 95 were derived from either national or local Frameworks where benefits were allocated within the framework. Of the remaining awards, 26 suppliers committed to delivery of Community Benefits, as summarised in the table below: Community Benefit Volumes offered Targeted recruitment and training, including apprenticeships and work placements 31 Supply Chain Initiatives 15 Use of local SME 21 Use of social enterprise or supported business 2 Community participation 6 Poverty Initiatives 12 Young Person engagement 11 Educational Support 21 Community Endowment 8 Local Events 5 Physical infrastructure 1 Local sponsorship 15 Mentoring 5 Other, including volunteering 8 Community Benefit case studies Clyde Bridge: contractor Eric Wright Civil Engineering Contract value: £7.4m Community Benefit points: 190, delivered by Two new full-time jobs for local people Two work experience placements Two Community Consultation events STEM sessions with Carstairs Junction Primary School Education engagement events with South Lanarkshire College 105
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Support for one local celebration event Sponsorship of £1000 to a local organisation Two mentoring programmes Two volunteering days Biomass supply and maintenance: contractor Alternative Heat Contract value: £3.6m Community Benefit points: 290, delivered by: Two new full-time jobs at living wage Engagement with up to 5 local SMEs for parts and equipment, PPE, power tools, service and maintenance of fleet and office supplies Annual foodbank donations to South Lanarkshire based foodbanks Annual educational support presentations 106
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6. Sustainable Procurement and Supported Business Summary Sustainable Procurement One of the Council’s key strategic objectives is “Sustainable and Ethical” in recognition of our responsibility to secure wider social, economic and environmental benefits through contracts, as set out in the Sustainable Procurement Duty. The Council uses the Scottish Government’s Sustainable Flexible Framework to measure organisational progress in embedding sustainable outcomes: the framework measures performance across the following areas: People: training on sustainable procurement tools is progressing across the organisation (level 2 achieved) Objective, Strategy and Communications: sustainable procurement duty embedded in Procurement Strategy (level 4 achieved) Process: using prioritisation and sustainable toolkits to focus on outcomes at category and contract level and sustainability scoring improved (level 2 achieved) Stakeholders: improved engagement for stakeholders (level 2 achieved) Monitoring and Reporting: on sustainable procurement outcomes through procurement strategy and annual report (level 2 achieved) Prioritisation Tool The outcome from the Council’s Prioritisation analysis is detailed below: this identifies the categories of spend where the Council has scope to improve sustainable outcomes and the influence in the market to achieve this. This analysis will guide future procurement strategies, focusing on areas of climate impact such as Construction and Waste Management and those areas with social and economic impacts, including Social Care and Early Learning. Risk: relevance of overall sustainability risk/relevance (environmental, socio-economic and reputational) to procure- ment category 107
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Scope: How much scope is there to improve the sustainability of procurement of this category Influence: level of influence your organisation might have over the market to improve sustainability outcomes Examples of good sustainable practice this year include: Continued focus on Fair Work First principles, using seven key priorities set out by Scottish Government Ensuring Real Living Wage paid in social care contracts, which accounts for £114m (32%) of council spend. All Adult Social Care providers are compliant with living wage levels. Continuing to embed the Sustainable Procurement Tools, focusing on the outcomes of the Prioritisation Framework to identify future priorities at category level. Completion of the sustainability test to identify key sustainability measures in the 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 2022/2023, the Council’s spend with registered charities totalled £37m, an increase from £32m in 2021/2022 and we continued to support Supported Business and Social Enterprises. Key engagement with Supported Businesses and Social Enterprises included: Haven Products: Supported Business The Council awarded a two-year contract to Haven Products in December 2022 for production of Homecare uniforms, with an estimated value of £0.180m. Haven Products is a supported business, providing employment opportunities to disabled people. Royal British Legion: Supported Business The Council has a four-year contract in place with Scotland’s Bravest for signage manufacture until March 2026, with an estimated value of £0.130m. Scotland’s Bravest are a supported business supporting veterans with disabilities to develop new skills, regain independence and earn in a supportive commercial environment. Hey Girls Social Enterprise Hey Girls are based in Dunbar, founded by a mother and her two daughters to address period poverty through a “Buy One, Give One” social enterprise model. Hey Girls continue to be a key supplier in achieving the Scottish Government’s period poverty targets and the Council’s spend in 2022/2023 was £0.154m. 108
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7. 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 109
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8. Further Information Procurement Performance information The Council reports on a range of performance indicators, including the level of procurement spend with local companies (based within the South Lanarkshire area) and SMEs (small and medium enterprises). The Council has a consistently high level of engagement with SMEs overall, with 70% of Council contracts awarded (above £50,000) to SMEs in 2022/2023. Local and SME spend The Council’s local spend with South Lanarkshire enterprises (including SMEs) was unchanged at 18% in 2022/2023, representing £63m of total spend within the South Lanarkshire area. Spend with SMEs generally reduced slightly by 1% and was unchanged for South Lanarkshire based SMEs. Our actions around the Community Wealth Building Strategy will aim to improve local spend levels in the future. Indicator 2020/21 2021/22 2022/23 Total procured spend £393m £384m £388m Core Trade spend £347m £345m £351m Core spend in South Lanarkshire area 17% 18% 18% Core spend with South Lanarkshire SMEs 12% 17% 17% Core spend with SMEs 43% 50% 49% (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 Southwest in 2022/2023 totalled £23.8m, with £10.9m (46%) being subcontracted to South Lanarkshire based companies. However, in total, Hub Southwest’s sub-contracted spend to South Lanarkshire companies from all Hub projects totalled £97m, an increase from £76m in 2021/2022: 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 by area is provided below: although 18% of our spend is within South Lanarkshire, 33% of spend was within the wider Lanarkshire area and 47% within Glasgow City Region. 70% of our total spend is in Scotland, which is an overall improvement in comparison to 64% in 2021/2022. 110
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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 2022/2023. This year, the Council’s spend through Scotland Excel frameworks totalled £47.2m, of which £7.7m (16%) was spent with local suppliers, an increase of 3% in comparison to last year. However, these collaborative frameworks also generated £62m of spend with South Lanarkshire based suppliers in total, including other local authorities, of which 89% 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 92% of invoices meeting this standard in 2022/2023. 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 2022/2023, 25% of invoices were paid using the e-invoicing solution. 111
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8.1. Appendix 1: Regulated Procurement Activity 2022/2023 Award Date Supplier Description Start Date End Date Extension Date Contract Value £ 01/04/2022 KIBBLE EDUCATION & CARE CENTRE, ROSSIE YOUNG PEOPLE'S TRUST, ST MARYS KENMURE, THE GOOD SHEPHERD CENTRE Secure Care Services 01/04/2022 31/03/2024 - 2,300,000 01/04/2022 SCHOLAR SCHOLAR Forum Subscription 01/04/2022 31/03/2025 31/03/2025 123,283 19/04/2022 CALOR GAS LTD Supply and Delivery of Industrial Gases 19/04/2022 31/03/2023 31/03/2024 80,000 20/04/2022 DORO AB Supply and Delivery of Telecare Equipment 02/05/2022 01/05/2024 01/05/2024 1,136,900 22/04/2022 STANLEY SECURITY S OLUTIONS LTD Service, Maintenance and Repair of Closed Protocol Fire and Intruder Alarms 02/05/2022 01/05/2025 01/05/2027 298,990 01/05/2022 FAST FIXX CATERING ENGINEERS LTD Repair, Inspection and Maintenance of Commercial Catering Equipment 01/05/2022 30/04/2023 30/04/2024 450,000 01/05/2022 HIGHFIELD PARK Specialist Residential Care 01/05/2022 31/10/2023 31/10/2024 581,710 03/05/2022 THE ADVOCACY PROJECT Independent Advocacy Services 01/04/2022 01/04/2023 30/09/2023 364,160 03/05/2022 SPEAK OUT ADVOCACY PROJECT Independent Advocacy Services 01/05/2022 01/04/2023 30/09/2023 275,200 03/05/2022 SDC INDUSTRIES LTD Service & Maintenance of Voltage Optimiser Health Checks 09/05/2022 08/05/2025 08/05/2030 90,000 112
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04/05/2022 DENNIS EAGLE LTD Supply and delivery of Heavy Vehicles 04/05/2022 31/12/2022 - 2,551,720 04/05/2022 VALLEY GROUP LTD Maintenance of Commercial Heating - Out of Hours Contractor 16/05/2022 15/05/2025 15/05/2028 80,040 05/05/2022 FUCHS LUBRICANTS (UK) PLC Supply and Delivery of Lubricant Oils, Greases and Anti-Freeze 09/05/2022 08/05/2025 08/05/2026 156,000 09/05/2022 TURNER ACCESS LTD Scaffolding Contract 10/05/2022 09/08/2022 02/10/2022 750,000 10/05/2022 ORACLE CORPORATION UK LTD Oracle Cloud Infrastructure Platform as a Service 01/05/2022 30/04/2027 30/04/2027 107,784 11/05/2022 A.M.1. CONSULTING LTD Oracle Cloud Fusion Implementation Resources 01/03/2022 30/06/2023 30/09/2023 394,850 13/05/2022 STANGER TESTING SERVICES LTD 1 Road Materials Testing Contract 13/05/2022 12/05/2025 12/05/2027 429,338 18/05/2022 HILLHOUSE QUARRY COMPANY Supply and Delivery of Coated Roadstone Mini Tender - June 2022 - Hamilton Area 29/05/2022 23/06/2022 - 50,625 19/05/2022 GLASDON UK LTD Supply and Delivery of Bollards and Verge Markers 30/05/2022 29/05/2024 29/05/2026 279,980 20/05/2022 RICARDO-AEA LTD Air Quality Monitoring Support Ser- vices - Scottish Government Air Quality Grant Scheme 01/07/2022 31/03/2023 31/03/2023 50,000 23/05/2022 HILLHOUSE QUARRY COMPANY Mini Ccompetition under Lot: 1 of the Framework for Roads Contractors 04/07/2022 02/08/2022 - 104,903 24/05/2022 TENANTS INFORMATION SERVICE Provision of Independent Advice and Support for Tenants in South Lan- arkshire 01/06/2022 31/05/2023 31/05/2024 160,000 25/05/2022 ORBIS PROTECT LTD Void Property Protection 06/06/2022 05/06/2026 05/06/2026 400,000 25/05/2022 H & V COMMISSIONING SERVICES Maintenance of Fire Dampers 30/05/2022 29/05/2025 29/05/2027 211,887 30/05/2022 SOFTCAT PLC Payables Fraud Software 31/05/2022 01/12/2025 01/12/2025 138,782 113
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30/05/2022 ELVEDEN FARMS LTD Supply and Delivery of Christmas Trees 2022 30/05/2022 31/01/2023 31/01/2023 65,207 31/05/2022 ABERLOUR CHILD CARE TRUST, ACTION FOR CHIL- DREN, BARNARDOS, CAREVISIONS FOSTERING LTD, CAROLINA HOUSE TRUST, DEAN & CAUVIN YOUNG PEOPLE'S TRUST, FOSTER CARE ASSOC SCOTLAND LTD, FOSTERING PEOPLE SCOTLAND LTD, FOSTERING RELATIONS LTD, FOSTERPLUS (FOSTERCARE) LTD, ST ANDREW'S CHILDREN SOCIETY LTD, SWIIS FOSTER CARE SCOTLAND LTD, THE ADOLESCENT & CHILDREN'S TRUST, THE NATIONAL FOSTERING AGENCY Fostering and Continuing Care 01/07/2022 30/06/2024 30/06/2025 9,700,000 31/05/2022 BRAKES Supply & Delivery of Frozen Foods 30/05/2022 29/05/2024 29/05/2026 4,859,078 31/05/2022 LLOYD LTD The Supply of 7 x Bobcat E19 Exca- vator with Double Dozer Blade and C/W Trailer 31/05/2022 30/04/2023 - 261,128 31/05/2022 PAYPOINT PLC PayPoint Cash out Services and Voucher Agreements 06/06/2022 05/06/2027 05/06/2030 600,000 01/06/2022 PATERSONS OF GREENOAKHILL LTD Landfilling of Residual Waste (un- suitable for processing via Thermal Treatment Facilities) 01/06/2022 31/12/2025 - 477,400 114
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01/06/2022 GRAVITAS RECRUITMENT GROUP LTD IT Project Manager 13/06/2022 12/12/2023 12/06/2024 225,000 01/06/2022 FACULTATIEVE TECHNOL- OGIES LTD Maintenance of Crematorium Equipment 01/06/2022 31/05/2026 31/05/2028 180,000 07/06/2022 CENTRICA BUSINESS SOLUTIONS UK LTD Service, Maintenance and Repair of Closed Protocol CHP Units in Larkhall Leisure Centre and Hamilton Water Palace 01/04/2022 23/10/2025 23/10/2025 111,225 08/06/2022 CHARLES TENNANT & CO LTD Negotiated Contract for the Supply of Ad-Blue Fuel Additive 08/06/2022 07/06/2025 - 160,005 09/06/2022 CITY BUILDING CONTRACTS LLP 26 Rosslyn Avenue, East Kilbride - Extension 18/03/2022 14/09/2022 - 199,844 09/06/2022 MALLATITE MINOR STRUCT & PROD LTD Supply and Delivery of Ultracrete M90 (Eprobed) 27/06/2022 26/06/2024 26/06/2026 230,000 13/06/2022 ELECTRICAL TESTING LTD Highway Electrical Connections 23/06/2022 23/12/2023 23/06/2024 600,000 17/06/2022 TARMAC TRADING LTD Supply and Delivery of Cold Permanent Pothole Repair - Viafix 13/06/2022 29/02/2024 28/02/2025 68,267 20/06/2022 HALFORDS LIMITED Cycle to Work Scheme 13/06/2022 12/06/2023 12/06/2024 103,794 22/06/2022 P F CUSACK (TOOLS SUPPLIES) LTD Supply and Delivery of Miscellaneous Roads Products 27/06/2022 26/06/2024 26/06/2026 120,000 23/06/2022 MCCONECHY'S TYRE SERVICE LTD The Supply and Fitting of Tyres for Vehicles and Plant 01/06/2022 31/01/2026 31/01/2026 2,200,000 23/06/2022 GRAVITAS RECRUITMENT GROUP LTD Provision of Capita Support 22/06/2022 21/12/2022 21/12/2023 163,002 27/06/2022 GMA Electrical LTD Maintenance of Lighting Columns (Sports Pitches Floodlighting) 27/06/2022 26/06/2027 - 640,000 28/06/2022 A.M.1. CONSULTING LTD Oracle Fusion Consultancy - PMO 13/07/2022 31/05/2023 30/09/2023 51,000 29/06/2022 HILLHOUSE QUARRY COMPANY Supply and Delivery of Coated Roadstone Mini Tender - July 2022 - Hamilton Area 03/07/2022 22/07/2022 - 167,493 115
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29/06/2022 GLASGOW SCIENCE CENTRE LTD Technology Enabled Care (TEC) Zone - Blantyre Care Hub 13/05/2022 30/09/2022 30/09/2023 106,820 30/06/2022 GMG CONTRACTORS LTD Glebe Gardens Sheltered Housing- External Fabric Repairs 01/07/2022 28/10/2022 - 195,600 30/06/2022 CMM POOLS LTD Planned and Preventive Mainte- nance and Repair of Pool Plant Installations and Remedials 11/07/2022 10/07/2027 10/07/2030 958,519 01/07/2022 SAP (UK) LTD Microsoft support services 01/07/2022 30/06/2023 - 83,383 01/07/2022 SSI SCHAEFER LIMITED The Supply and Delivery of Refuse Containers 01/07/2022 30/06/2023 - 850,000 01/07/2022 CRAEGMOOR SUPPORTING YOU LIMITED Negotiated - Provision of Care at Home Services 01/07/2022 30/06/2024 30/06/2024 434,232 01/07/2022 Trust Community Care Limited Provision of Care at Home Services 01/07/2022 30/06/2024 30/06/2024 126,162 04/07/2022 GD CHALMERS LTD Close Lighting Upgrade, Cathkin 04/07/2022 12/09/2022 - 58,196 05/07/2022 PROFILE SECURITY SER- VICES LTD Provision of Manned Security Services 01/08/2022 31/07/2025 31/07/2027 3,250,000 08/07/2022 SAV UNITED KINGDOM LTD Maintenance of Closed Protocol Combined Heat Power (CHP) Units 11/07/2022 10/07/2027 10/07/2029 152,711 11/07/2022 COMPASS MINERALS UK LTD & SALT SALES COMPANY Bulk Rock Salt for Winter Maintenance 11/07/2022 31/10/2022 - 1,333,042 13/07/2022 J H CIVIL ENGINEERING LTD Mini-competition under Lot: 1 of the Framework for Roads Contractors 07/08/2022 02/09/2022 - 85,061 13/07/2022 INTELLIGENT HEALTH Beat the Street East Kilbride 01/07/2022 31/07/2023 - 114,997 14/07/2022 BLANTYRE PARK SERVICES LTD Clyde Terrace New Build Nursery - Mechanical & Plumbing 01/05/2023 31/08/2023 - 380,835 14/07/2022 PROCLADD (SCOTLAND) LTD 1 Clyde Terrace New Build Nursery - Roof & Wall Cladding 01/03/2023 31/07/2023 - 246,790 116
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14/07/2022 FLEMING BUILDINGS LTD Clyde Terrace New Build Nursery - Timber Kit 01/03/2023 31/08/2023 - 276,967 14/07/2022 SACRO Bail Mentoring and Support 01/04/2022 31/03/2023 31/01/2024 97,500 19/07/2022 JOSEPH LECKIE & SONS CONTRACTS LTD Clyde Terrace New Build Nursery - Groundworks, Brickworks & Piling 01/08/2022 31/08/2023 - 788,629 19/07/2022 SCOTTECH LTD Clyde Terrace New Build Nursery - Steel Staircase 01/04/2023 31/05/2023 - 112,291 19/07/2022 SOFTCAT PLC Microsoft Office 365 Backup and Re- covery Solutions (SG SVAR Frame- work Call Off) 01/08/2022 31/07/2025 31/07/2025 269,694 19/07/2022 NDL SOFTWARE LTD Support for NDL Integration Tool 03/08/2022 02/08/2024 02/08/2026 118,000 20/07/2022 BOYD BROTHERS (FAULDHOUSE) LTD Electric Vehicle Public Charing Infrastructure at various locations in South Lanarkshire 01/08/2022 01/12/2022 - 124,854 21/07/2022 THE WISE GROUP 1 Fuel Poverty Specialist Energy Advice and Financial Support 01/09/2022 31/08/2023 31/08/2024 850,000 21/07/2022 KOOTH DIGITAL HEALTH LIMITED Provision of online mental health and wellbeing support for children and young people. 23/05/2022 02/06/2023 02/06/2023 82,310 22/07/2022 HILLHOUSE QUARRY COMPANY Supply and Delivery of Coated Roadstone 07/08/2022 21/08/2022 - 87,432 27/07/2022 HUWS GRAY LTD Supply and Delivery of Drainage Products 01/08/2022 31/07/2024 31/07/2026 560,000 28/07/2022 CITY OF GLASGOW COLLEGE Provision of SVQ level 2 Social Ser- vices & Healthcare at SCQF level 6 01/08/2022 31/03/2023 - 50,000 28/07/2022 CITY OF GLASGOW COLLEGE Provision of SVQ level 3 Social Ser- vices & Healthcare at SCQF level 7 01/08/2022 31/03/2023 - 71,250 29/07/2022 BUILDING MANAGEMENT SOLUTIONS & L-TEC CONTROLS LTD Maintenance Of BEMS Installations 24/07/2017 01/08/2020 30/07/2024 117,113 117
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01/08/2022 TRL LTD ECO Stars Commercial Fleet Scheme including Bus Operators Workshops, Taxi and Private Hire Scheme including Taxi Operators Workshops 01/08/2022 31/07/2025 - 140,000 01/08/2022 PROCLADD (SMALL WORKS) LTD Lanark Lifestyles Pool Roof Works 22/08/2022 19/09/2022 - 97,146 09/08/2022 WORLDPAY LIMITED Face to Face & CNP Card Acquiring, Gateway & APM Services 01/11/2022 31/01/2024 - 557,500 09/08/2022 PROCLADD (SMALL WORKS) LTD Lanark Business Unit Roof Replace- ment 10/10/2022 17/10/2022 - 90,928 12/08/2022 HYPOSTYLE ARCHITECTS Combined Consultancy Services for Lanark Community Shed and Enter- prise Space 15/08/2022 01/06/2023 - 88,547 12/08/2022 IRONSIDE FARRAR LTD Cunningar Loop Phase 3 12/08/2022 31/12/2024 31/12/2024 51,846 17/08/2022 HILLHOUSE QUARRY COMPANY Supply and Delivery of Coated Roadstone Mini Tender - September 2022 - Hamilton Area 29/08/2022 02/10/2022 - 50,711 17/08/2022 A G BARR PLC Supply and Delivery of Soft Drinks and Bottled Water for Resale 17/08/2022 17/08/2025 17/08/2027 845,480 22/08/2022 BRITISH TELECOMMUNI- CATIONS PLC Installation and Maintenance of Mile- stone CCTV Monitoring System 22/08/2022 21/08/2027 21/08/2027 326,092 22/08/2022 National Autistic Society Specialist Adult Supported Living - Daldorch House 01/08/2022 31/07/2027 31/07/2029 2,812,890 05/09/2022 LIQUIDLOGIC LTD Mini Competition for Social Work Case Management System 01/09/2022 31/08/2027 31/08/2032 988,874 05/09/2022 TURNER ACCESS LTD Maintenance and Contracts Term Scaffolding Contract 03/10/2022 02/10/2025 02/10/2028 2,352,665 06/09/2022 CHARGEMASTER LTD Direct Award Installation of Electric Vehicle Charging Points (various locations) - ESPO 636 03/01/2022 30/06/2022 - 254,287 118
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06/09/2022 SOFTCAT PLC EDRMS Corporate Solution 01/08/2022 31/07/2027 - 745,503 12/09/2022 BRAKES & CAMPBELLS PRIME MEAT LTD The Supply and Distribution of Fresh Meats, Cooked Meats & Fresh Fish 01/10/2022 31/03/2023 - 127,892 20/09/2022 MOTUS COMMERCIALS Supply and delivery of Heavy Vehi- cles 20/09/2022 31/03/2023 - 1,728,218 20/09/2022 PARKS MOTOR GROUP Supply and delivery of Light Vehicles 20/09/2022 31/03/2023 - 58,000 23/09/2022 COVANBURN CONTRACTS LTD Scrogton Bridge Refurbishment 27/09/2022 08/11/2022 - 59,772 27/09/2022 FLEMING BUILDINGS LTD Castlefield PS Classroom Extension Structural Timber Kit 22/08/2022 24/03/2023 - 136,557 27/09/2022 BCA INSULATION LTD Strutherhill Zone B - Cavity Wall Insulation 24/10/2022 31/03/2023 - 117,605 30/09/2022 SCOTTECH LTD Castlefield PS Classroom Extension - Curtain Walling 17/01/2023 31/05/2023 - 84,400 30/09/2022 BLANTYRE PARK SER- VICES LTD Castlefield PS Classroom Extension - Mechanical 14/02/2023 23/05/2023 - 124,982 30/09/2022 AILSA BUILDING CON- TRACTORS LTD Strutherhill Zone B - Roughcast & Rendering 05/12/2022 31/03/2023 - 342,401 30/09/2022 NBS Enterprises LTD NBS Chorus Subscription 01/10/2022 30/09/2025 30/09/2025 145,976 30/09/2022 SOFTCAT PLC Web Security Gateway Licences 01/10/2022 30/09/2023 30/09/2023 70,524 01/10/2022 HILLHOUSE QUARRY COMPANY Supply and Delivery of Coated Roadstone Mini Tender - October 2022 - East Kilbride Area 02/10/2022 28/10/2022 - 109,437 04/10/2022 GEORGE BEATTIE & SONS LTD SLC Phase 4 Demolition 01/10/2022 01/04/2024 - 1,275,000 05/10/2022 STAR REFRIGERATION LTD Service and Maintenance of Chiller Units at EK Ice Rink 05/10/2022 05/10/2027 05/10/2027 88,528 06/10/2022 JOSEPH LECKIE & SONS CONTRACTS LTD Castlefield Primary School - Ground and Brickworks 31/10/2022 22/05/2023 - 164,198 119
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06/10/2022 J H CIVIL ENGINEERING LTD Mini-competition under Lot: 1 of the Framework for Roads Contractors 12/11/2022 08/12/2022 - 59,550 10/10/2022 Precious Care Services Ltd TA My Homecare Glasgow Provision of Care at Home Services - Negotiated 10/10/2022 30/06/2024 30/06/2024 102,690 10/10/2022 CLYDESDALE COMMU- NITY INITIATIVES Education Employability DPS - YES Rural Supported Volunteering Pro- gramme 2022 05/12/2022 04/12/2023 04/12/2023 51,840 11/10/2022 COVANBURN CONTRACTS LTD NEC3 Engineering and Construction Short Contract for Libberton Primary Play Area 07/11/2022 02/12/2022 - 52,147 13/10/2022 ZAP ENTERTAINMENT LTD Christmas Light Switch On 2022 17/10/2022 31/01/2023 31/01/2023 58,531 13/10/2022 THE SYMPHONY GROUP PLC Supply of Kitchens and Worktops for Routine Maintenance 2022/25 13/10/2022 31/07/2025 31/07/2028 5,400,000 14/10/2022 BLANTYRE PARK SER- VICES LTD Calderglen Park Conservatory H&V Controls 24/10/2022 31/01/2023 31/01/2023 60,000 19/10/2022 Acre Industrial Services Ltd SLC Gully Tanker/Operator Hire Mini Competition via Scotland Excel Framework 07/11/2022 17/07/2023 - 117,000 20/10/2022 STANTEC UK LTD Principal Inspection of 21 No. Structures with Difficult Access 20/10/2022 20/03/2023 - 140,123 24/10/2022 J H CIVIL ENGINEERING LTD Quick Quote Procedure for EK Foot- way Works 2022-2023 Phase 6 (Gilderdale, High Common Road and St Leonards Road, East Kil- bride) 24/10/2022 30/12/2022 - 116,427 25/10/2022 CHARGEMASTER LTD Installation of Electric Vehicle Charg- ing Points (various locations) 25/10/2022 31/12/2025 - 180,613 25/10/2022 MOTUS COMMERCIALS Supply and delivery of Heavy Vehi- cles 25/10/2022 30/04/2023 - 113,965 26/10/2022 LANDCARE SOLUTIONS (SCOTLAND) LTD Engineering and Construction Short Contract for Halfway Park Play Area (Re-Tender) 09/01/2023 06/03/2023 - 156,658 120
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04/11/2022 G4S CASH SOLUTIONS (UK) LTD Provision of Secure Cash Collection Services 01/01/2023 31/12/2026 - 254,448 04/11/2022 BISHOP SPORTS & LEISURE LTD, COSY, CPP TRADING GROUP LTD, EASTERN SHIRES PURCHASING ORGANISATION, FINDEL EDUCATION LED, FOAMS 4 SPORTS LTD, GROSVENOR HOUSE PAPERS LTD, HAMELIN BRANDS LIMITED, INC DOT COM LTD, MUDDY FACES LTD, NEWITT & CO LTD, SEAWHITE OF BRIGHTON, THE CONSORTIUM, TTS GROUP LTD, W ENTERPRISES (ABDN) LTD, WF EDUCATION GROUP LTD, YORKSHIRE PURCHASING ORGANISATION Supply and Delivery of Education Materials 01/12/2022 31/07/2024 31/07/2025 3,875,000 05/11/2022 LOVE@CARE Care at Home 01/09/2020 30/06/2022 30/06/2024 500,000 10/11/2022 ERIC WRIGHT CIVIL ENGINEERING LTD Clyde Bridge Replacement Project 09/01/2023 08/01/2024 - 7,352,308 14/11/2022 FIBO UK LTD Supply and Delivery of Wallboards 07/11/2022 07/05/2023 06/11/2023 310,000 25/11/2022 CARE & REPAIR IN SOUTH LANARKSHIRE Assistive Technology Installation 01/12/2022 30/11/2023 - 135,500 121
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25/11/2022 WM HAMILTON & SONS LTD NEC3 Term Service Option A for Disposal / Recycling of Gully Waste, Street Sweepings and General Road Construction Materials 28/12/2022 27/12/2025 27/12/2027 3,557,495 01/12/2022 COVANBURN CONTRACTS LTD Symington Play Area 06/12/2022 31/03/2023 31/03/2023 123,262 02/12/2022 OXED & ASSESSMENT LTD Nuffield Early Language Intervention 02/01/2023 28/06/2024 - 148,342 09/12/2022 KING COMMUNICATIONS & SECURITY LTD Servicing & Maintenance of Fire Alarms and Intruder Alarms 12/12/2022 12/12/2027 12/12/2030 87,594 12/12/2022 COVANBURN CONTRACTS LTD Gilmourton Play Area 22/12/2022 30/04/2023 - 101,777 14/12/2022 HAVEN PRODUCTS LTD Supply of Homecare Uniforms – Tunics & Trousers 31/12/2022 31/12/2024 31/12/2025 180,000 19/12/2022 THE SALVATION ARMY TRUSTEE COMPANY Interim Ukrainian Displaced Persons Accommodation Service 12/12/2022 11/06/2023 11/12/2023 262,541 20/12/2022 BUNZL GREENHAM Supply and Delivery of Personal Pro- tective Equipment (PPE) 01/01/2023 10/04/2025 10/12/2026 2,700,000 22/12/2022 ALTERNATIVE HEAT LTD Maintenance of Biomass Boilers & Supply & Delivery of Biomass Pellets 22/12/2022 21/12/2027 21/12/2030 3,562,500 05/01/2023 FES LTD Maintenance of Commercial and Do- mestic Fire Suppression Systems 04/01/2023 03/01/2028 03/01/2031 1,932,288 09/01/2023 COMPASS MINERALS UK LTD & SALT SALES COMPANY Direct Award for the Supply and De- livery of Salt for Winter Maintenance 09/01/2023 08/01/2027 08/01/2028 8,754,975 09/01/2023 CHUBB FIRE & SECURITY LTD Headhouse Court Warden Call Sys- tem - QQ for Works 16/01/2023 31/03/2023 - 74,004 16/01/2023 ELECTRICAL TESTING LTD Structural Investigation of Lighting Columns 16/01/2023 15/01/2025 15/01/2027 400,000 16/01/2023 JOSEPH LECKIE & SONS CONTRACTS LTD Play Area Barriers and Paths Con- tract / Various Sites 16/01/2023 13/03/2023 - 81,057 16/01/2023 SIBCAS LTD Supply, Delivery and Hire of Secure Site Containers and Welfare Units 16/01/2023 15/01/2024 15/01/2025 250,000 122
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17/01/2023 SAMH SAMH Peer and Parent Support 27/03/2023 30/04/2023 - 320,000 19/01/2023 ASPECT CONTRACTS LTD Removal of Asbestos and Remedial Works 19/01/2023 18/01/2024 18/01/2025 1,700,000 20/01/2023 VOLUNTARY ACTION SOUTH LANARKSHIRE Voluntary Sector Capacity Building 01/07/2022 31/03/2024 - 237,000 24/01/2023 MAGNUS ELECTRICAL SERVICES LTD Dunlop, Lister & Fraser Towers - EK - Emergency Lighting 27/03/2023 30/09/2023 - 344,281 25/01/2023 KNIGHT FRANK Commercial Real Estate Consultancy Services 26/01/2023 26/01/2025 - 55,000 25/01/2023 SPIE SCOTSHIELD LTD South Lanarkshire Council Almada Street HQ HV/LV Switchboard Upgrade 01/06/2023 13/07/2023 - 259,737 27/01/2023 NEW COLLEGE LANARKSHIRE Provision of SVQ level 3 Social Ser- vices and Healthcare at SCQF level 7 01/04/2023 31/03/2024 - 63,000 02/02/2023 CROMWELL GROUP (HOLDINGS) LTD Supply and Delivery of Small Tools 01/01/2023 30/11/2026 - 80,610 07/02/2023 DIAMOND AIR CONDITION- ING LTD Maintenance of Air Conditioning and Air Handling Units 21/02/2023 20/02/2028 20/02/2031 536,379 13/02/2023 SPORTEX GROUP LTD Hamilton Palace Sports Grounds 01/03/2023 30/06/2023 30/06/2023 314,940 17/02/2023 ALEX MCDOUGALL (MOWERS) LTD, HAMIL- TON BROTHERS ENGI- NEERING LTD Supply and Delivery of Grounds Maintenance Equipment 17/02/2023 31/03/2023 - 67,127 17/02/2023 NEC Software Solutions UK Ltd Orbis Annual Support, Maintenance and Consultancy 01/04/2023 31/03/2026 31/03/2028 1,029,260 20/02/2023 CROWN PAINTS LTD Supply and Delivery of Paint, Paint Sundries and Paint Packs 27/02/2023 26/08/2023 26/02/2024 239,580 24/02/2023 A.M.1. CONSULTING LTD Oracle Fusion Implementation - Training delivery 01/01/2023 31/08/2023 - 50,018 123
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27/02/2023 BURNFIELD BUILDERS & DEMOLISHERS LTD Re Tender Lanark Park & Ride - Demolition Ladyacre Road, Lanark 07/03/2023 02/05/2023 - 63,352 02/03/2023 COVANBURN CONTRACTS LTD Mini Comp under NEC3 Engineering and Construction Short Contract for Allison Green Peace Garden Strathaven 02/03/2023 12/05/2023 - 61,933 02/03/2023 SAINT GOBAIN LTD Supply and Delivery of Kerbs 02/03/2023 02/03/2026 02/03/2027 240,000 06/03/2023 INSIGHT DIRECT (UK) LTD Supply & Support of Communica- tions Hardware, Software & Licens- ing 01/04/2023 02/11/2023 - 2,296,590 08/03/2023 CLICK TRAVEL LTD Employee Travel Services 01/11/2022 31/10/2026 - 60,000 10/03/2023 GEORGE BEATTIE & SONS LTD Kirkton House - Demolition 05/06/2023 28/08/2023 - 86,604 10/03/2023 MACWILLIAM DEMOLITION LTD McWhirter House - Demolition 05/06/2023 28/08/2023 - 96,968 15/03/2023 SECURIGROUP SERVICES LTD Security Services for Council Offices 01/04/2023 31/03/2024 31/03/2025 290,000 20/03/2023 COVANBURN CONTRACTS LTD Chatelherault Allotment Site 01/03/2023 30/05/2023 - 280,305 21/03/2023 COMPUTACENTER (UK) LTD Video Conferencing Solution for schools 21/03/2023 20/03/2026 - 153,600 22/03/2023 PROCAST BUILDING CON- TRACTORS LTD Eddlewood Deck Access Hamilton, Blocks Phase 1 - External Fabric & Walkway Repairs 30/04/2023 27/10/2023 - 974,630 27/03/2023 IFS UK LTD Assyst System Service Management Maintenance and Support 01/03/2023 29/02/2024 28/02/2025 124,800 28/03/2023 RUTHERGLEN COMMUNITY CARERS Carer Respite Service for People with Dementia 01/04/2023 31/03/2026 31/03/2028 285,000 29/03/2023 ZURICH INSURANCE PLC Engineering and Inspection Insurance 01/04/2023 31/03/2024 31/03/2024 288,405 124
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30/03/2023 FLOGAS BRITAIN LTD Supply, Delivery and Hire of Temporary Appliances for Commer- cial Properties 01/04/2023 31/03/2026 31/03/2028 95,472 31/03/2023 J H CIVIL ENGINEERING LTD Cambuslang Main Street Streetscape (Phase Two) 31/03/2023 28/07/2023 - 179,334 31/03/2023 FAST-AID PRODUCTS LTD Supply & Delivery of First Aid Materials 01/04/2023 31/03/2026 31/03/2027 227,000 125
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8.2. Appendix 2: Procurement Strategy 2020-2023 Strategic Objectives update Objective Aim Outcome Progress Compliance Ensure compliance with Procurement Regulations and the Council’s Standing Orders on Contracts Improve compliance and mitigate risk of contract challenge Procurement continue to monitor compliance with regulations and Standing Orders on Contracts across the Council, as evidenced by scrutiny arrangements public reporting of awards non contractual spend review 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 Southwest. 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 contract management support during challenging eco- nomic conditions and inflationary market Improved levels of engagement with Social Care providers to en- sure sustainability 126
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Fair Work First Work with suppliers to implement Fair Work First standards, including payment of the Living Wage and compliance with Council Charters Improved Fair Work and Living Wage arrangements for those involved in delivery of Council contracts We continue to promote Fair Work Fair and payment of the Living Wage, as evidenced by: Annual confirmation of payment of Living Wage in all Social Care contracts Implementation of new Fair Work First stand- ards in 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 continues to embed the sustainable procurement toolkit, including: Use of the Flexible Framework to assess the organisational approach to sustainable procurement and monitor progress. Amended approach to scoring sustainability in tenders. Introduction of the sus- tainability test at con- tract level, for the Household Waste Re- cyling tender. 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 Meet the Buyer event was held with North Lanarkshire Council in February 2023. 127
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The Council’s Commu- nity Benefits points menu was reviewed to include Community Wish List commitments. Promotion of subcon- tracting opportunities on Scotland Excel frameworks and HubSW projects. 128
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8.3. Appendix 3: Planned Future Regulated Procurements 2023/2024 and 2024/2025 Contract Description Expected award date Estimated value (£) NCHC Care Home Provision 2023 / 24 01/04/2023 35,000,000 Interpretation Services 01/04/2023 70,000 Provision of Corporate SMS Solution (text messag- ing) 01/04/2023 50,000 River Clyde Flood Modelling and Mapping 01/04/2023 TBC White Goods - Domestic Electric goods including cookers, fridges and washing machines 01/04/2023 100,000 Enhanced Aftercare 01/04/2023 1,500,000 Adult Advocacy 01/04/2023 1,000,000 Supply & Delivery of Library Books / Textbooks / Multimedia supplies for Schools 01/04/2023 750,000 Adult Residential Care Services 01/04/2023 2,000,000 Domestic Abuse Services 01/04/2023 2,400,000 Multi Lot Homelessness Provision all areas 01/04/2023 5,000,000 Early Learning and Childcare - Phase 6 01/04/2023 143,000,000 Adult Supported Living - Phase 3 01/04/2023 229,000,000 Video Conferencing Solution for schools 01/04/2023 150,000 Direct Award for the Supply of Domestic Boilers, Associated Materials 01/05/2023 500,000 Supply and Delivery of Wallboards 07/05/2023 200,000 West of Scotland Weather Partnership 15/05/2023 13,500,000 Cleaning Materials 25/05/2023 100,000 Supply and Support of Commodity Mobile Services 26/05/2023 TBC Provision of volume mailing and associated ser- vices 31/05/2023 400,000 Physical and Hybrid Mail 02/06/2023 1,000,000 Maintenance of Council Structures Framework 09/06/2023 1,000,000 129
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Cycle to Work Scheme 12/06/2023 50,000 SLLC Fitness Equipment 30/06/2023 162,772 Supply of Sports and Sundry Resale goods 30/06/2023 400,000 Framework for Provision of Driver Training and As- sessments (LGV, Driver Assessments, Driving Lessons, Road Roller Assessments and Category E) 30/06/2023 100,000 SLLC Venue & Event Management Software 30/06/2023 200,000 Supply and Delivery of Christmas Trees (2024) 30/06/2023 50,000 Framework for Provision of Temporary Traffic Management 30/06/2023 400,000 Council Tax Discount and Exemption Review 30/06/2023 50,000 Integrated Housing & Property Management Sys- tem (IHMPS) 30/06/2023 3,000,000 Taxi Mini Competition - Primary Schools 30/06/2023 2,000,000 Taxi Mini Competition - Secondary Schools 30/06/2023 2,000,000 Bridge Repair Maintenance Works 30/06/2023 50,000 Social Enterprise Business Accelerator 30/06/2023 100,000 Cashless Catering Solution 30/06/2023 200,000 Supply and Delivery of Compostable Food Waste Liners 30/06/2023 50,000 Secure Destruction of Confidential Waste (Shred- ding) 30/06/2023 50,000 Counselling & wellbeing services for all Schools 30/06/2023 200,000 Supply, Delivery and Installation of Office Furniture and Supported Needs Furniture 03/07/2023 100,000 eLearning and Development platform - Clyde Val- ley 31/07/2023 2,000,000 Maintenance Of Building Energy Management System Installations (BEMS) 31/07/2023 1,000,000 Reward and Recognition Voucher Scheme 11/08/2023 50,000 Maintenance of Fire and Intruder Alarms 01/09/2023 100,000 Employee Benefits 30/09/2023 100,000 Tenants Contents Insurance 30/09/2023 200,000 Supply, Delivery, Installation and Maintenance of Water Coolers / Mains Fed Coolers 30/09/2023 250,000 130
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Pest Control, Industrial Cleaning and Other Envi- ronmental Services 30/09/2023 200,000 South Lanarkshire Council CCTV Infrastructure - Network and Hardware Upgrade 30/09/2023 100,000 Early Learning and Childcare - Phase 9 30/09/2023 TBC Rural Academy 2023/2024 30/09/2023 £190,00.00 SLC Main Policies (Insurance) 30/09/2023 1,000,000 Framework for Removals, Storage and Disposals - Lot 1 Domestic & Lot 2 Commercial 07/10/2023 500,000 Landscape Development, Play, Recreation and Associated Infrastructure Framework 07/10/2023 1,000,000 Supply and Support of Fixed Line Telephony Ser- vices (Lines and Calls) 10/10/2023 2,600,000 Home Care Workforce Scheduling 15/10/2023 500,000 Provision of Piano Tuning, Maintenance and Re- pair Services 24/10/2023 50,000 Education Employability DPS - YES - CSCS and H&S Construction Preparation and Testing 2022 - Mini Comp 21 30/10/2023 50,000 Education Employability Training DPS - YES Con- struction Tasters SL Wide 2022 - Mini Comp 20 30/10/2023 50,000 Framework for the provision of Passenger Transport Services (ASN) 2024 31/10/2023 10,000,000 Education Employability DPS - YES Rural Sup- ported Volunteering Programme 2022 - Mini Comp 19 04/12/2023 50,000 Analogue to Digital Arc & Device replacement 30/12/2023 1,000,000 Information & Advice Service on Self Directed Sup- port 30/12/2023 400,000 SLLC Tax & Auditing Services 01/01/2024 £125,000 Maintenance, Storage, Erection and Dismantling of Festive Lighting 06/01/2024 500,000 Supply, Install and Maintenance of Standalone Small Telephone Systems and Ancillary Telephony Equipment 31/01/2024 500,000 PSN (GCF Core Services) 31/01/2024 TBC Supply, Installation and Maintenance of a Corpo- rate Telematics Solution 28/02/2024 200,000 Supply of Heavy Vehicles 31/03/2024 1,000,000 Local Transport Strategy / Cycling Strategy 31/03/2024 50,000 Canderside economic assessment 31/03/2024 TBC Gradu8 Construction - Summer Leavers 31/03/2024 TBC McKirdy Park - Pitch Replace- ment 31/03/2024 50,000 Lanimer Shed Construction 31/03/2024 100,000 131
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Thankerton Boat Bridge Scour protection 31/03/2024 50,000 Energy Efficiency Framework Retrofit Assessors 31/03/2024 100,000 Fire Risk Assessment - Remedial Works - Multi Stories 31/03/2024 50,000 Installation of CCTV In Lifts Within Multi Storey Blocks 31/03/2024 100,000 Kitchens & Bathrooms (Home Plus) 31/03/2024 5,000,000 Lifecycle Programme for Primary Schools (20+ Projects) 31/03/2024 400,000 Lindsay House Replacement Project 31/03/2024 TBC Lock Up Refurbishments: Various 31/03/2024 200,000 Mechanical Engineering Consultancy 31/03/2024 100,000 Roofing Works 31/03/2024 100,000 Renewal of Communal Heating System: Various 31/03/2024 300,000 Resurface footpaths: various locations 31/03/2024 100,000 Sustainability Fund - Feasibility Projects 31/03/2024 TBC Fabric works: Various sites 31/03/2024 500,000 Universal Free School Meals - 5 Priority Projects - Kitchen Extensions to Primaries 31/03/2024 200,000 Various Blocks SLC Wide - Close Painting 31/03/2024 50,000 Various Works Multi Storey Blocks 31/03/2024 200,000 Video Entry Systems 31/03/2024 50,000 Warden Call Systems 31/03/2024 100,000 Environmental Improvements 31/03/2024 100,000 Whitemoss Tennis Courts 31/03/2024 100,000 Wyler Tower - EM Lighting 31/03/2024 50,000 Supply and Delivery of Air Source Heating Systems 31/03/2024 1,680,000 Small Plant Training for Roads and Transportation employees 31/03/2024 280,000 Supply of Fixings 31/03/2024 100,000 Supply of Sealants 31/03/2024 100,000 Supply of Ironmongery 31/03/2024 250,000 132
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Provision of Occupational Health Services 31/03/2024 400,000 Supply of Domestic Heating Spares 31/03/2024 240,000 Ebooks, E-audiobooks, E-magazines and E-music 31/03/2024 250,000 Water Infrastructure Works 31/03/2024 257,646 Digital Connectivity Multi-Lot 31/03/2024 18,000,000 Toxicology service 31/03/2024 50,000 Musical Instruments and consumables 31/03/2024 100,000 Provision and Delivery of Washroom Solutions & Sanitary Products 31/03/2024 250,000 Electromagnetic repairs to non-housing general service properties 31/03/2024 1,000,000 Vending Machine Services 31/03/2024 50,000 Framework for the Provision of Vehicle Body Re- pairs 31/03/2024 400,000 Janitorial Products 31/03/2024 2,000,000 Supply of Liquid Fuels 31/03/2024 7,000,000 Supply and Delivery of Doors and Windows - In- terim Supply Only 31/03/2024 1,000,000 Air Quality Monitoring Support Services 31/03/2024 130,000 Fresh Meats, Cooked Meats and Fresh Fish 31/03/2024 1,000,000 Supply, Delivery and Installation of Audio-Visual Equipment 31/03/2024 400,000 Gilmourton Play Area 31/03/2024 100,000 Local Transport Strategy 31/03/2024 120,000 Lone Working Solution 31/03/2024 160,000 Common Area Upgrade 31/03/2024 1,000,000 Framework for Small Plant Training 31/03/2024 480,000 Repave Contract 2023 31/03/2024 100,000 Educational Services PSA: various phases 31/03/2024 42,000,000 Term contract for Fabrics 31/03/2024 60,000,000 Early Learning and Childcare - Phase 7 & 8 31/03/2024 143,000,000 133
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Adult Supported Living - Phase 4/5/6 31/03/2024 229,000,000 Supply and Delivery of External Door Sets and Windows 31/03/2024 12,000,000 Supply & Delivery of Library Books / Textbooks / Multimedia supplies for SLLC 31/03/2024 200,000 Green Belt review 31/03/2024 TBC Philips Hill Cemetry Extension 31/03/2024 50,000 Supply and Delivery of Refuse Sacks (Waste / Grounds Services) 31/03/2024 100,000 Befriending services to vulnerable children and young people 31/03/2024 800,000 Supply & Delivery of Telecare peripheral equip- ment 31/03/2024 70,000 Catering Sundries 31/03/2024 100,000 Fuel Cards and Associated Services 31/03/2024 100,000 General Stationery and Office Paper Framework 31/03/2024 10,000,000 Inspection, Maintenance and Repair of PE Equip- ment 31/03/2024 200,000 Provision of Water and Waste Services - Agency Agreement via Scottish Procurement 31/03/2024 1,000,000 Structural Appraisal of Duke Street Multi-Storey Car Park Hamilton 31/03/2024 50,000 Utilities - Electricity 31/03/2024 4,000,000 Legal Services Providers Framework 31/03/2024 200,000 Braidwood Play Area 31/03/2024 100,000 Burnhill Growing Area 31/03/2024 50,000 Daer Bridge – refurbishment and repair 31/03/2024 50,000 Glenburn Primary Outdoor Play 31/03/2024 50,000 Industrial Washing Machine Maintenance 31/03/2024 TBC SLLC Front of House IT system 31/03/2024 250,000 St Kenneth’s Primary Outdoor Play 31/03/2024 50,000 St Vincent’s Primary Outdoor Play 31/03/2024 50,000 Old Mill Road, Newton - junction alteration 31/03/2024 50,000 Strahaven Rd / Mill Rd Traffic Signalisation and Gateside St / Johnstone Road Traffic Signalisation 31/03/2024 TBC Uplift and Disposal of Tyres 31/03/2024 50,000 134
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Wellhall Rd / Woodfoot Rd / Hillhouse Rd Dual Roundabouts 31/03/2024 TBC Supply and Delivery Swimming Pool Chemicals 31/03/2024 50,000 Leisure Management System - Theatre Booking and Ticketing 31/03/2024 200,000 Management and Operation of Household Waste Recycling Centres 31/03/2024 10,000,000 Short Break - Child Services 31/03/2024 1,000,000 Cambuslang Town Centre - Completion of second phase of streetscape improvements between Greenlees Road and Cambuslang rail station 31/03/2024 50,000 Camelon Crescent, Blantyre - External Fabric & Balcony Repairs 31/03/2024 100,000 Fire Strategy/Compartmentation - SLC Multi Storey Blocks 31/03/2024 100,000 Former Site at Kirkton House Blantyre G72 0EZ - Demolition of Property 31/03/2024 100,000 Former Site McWhirter Home 110 Raploch St, Larkhall - Demolition 31/03/2024 100,000 SLC Wide – Extract Fans 31/03/2024 100,000 Cathkin & Springhall Houses - External Fabric Up- grade 31/03/2024 200,000 Various locations - Communal Boiler Replacement 31/03/2024 200,000 Door Entry Systems - Installation of Door Entry Systems at Various Addresses 31/03/2024 200,000 SLC Wide Demolition Contract Phase 4 31/03/2024 200,000 Wyler Tower - Replacement of Windows & Doors 31/03/2024 200,000 Conservation Area - Timber Window & Door Re- placement 31/03/2024 500,000 Upgrade of Central Heating Systems 31/03/2024 500,000 Design, Supply & Installations of Fire Doors 31/03/2024 500,000 SLC Wide – Windows & Doors Specification 31/03/2024 500,000 Various locations - Environmental Improvements 31/03/2024 200,000 Dunlop, Lister & Fraser River Tower, EK - Emer- gency Lighting 31/03/2024 100,000 Equipu Partnership Agreement 31/03/2024 1,000,000 Fire Detection - Tolerable Standard - Smoke & Heat Alarm Upgrade 31/03/2024 10,000 School Uniforms 31/03/2024 100,000 Travel Insurance 31/03/2024 50,000 135
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Hire of Gritters for Winter Maintenance 31/03/2024 50,000 Property Market Review and Analysis Report for Hamilton, Blantyre and Larkhall. 31/03/2024 TBC Baler wildflower areas 31/03/2024 TBC Cemetery Infrastructure walls 31/03/2024 50,000 Larkhall Leisure Centre 31/03/2024 10,000,000 Purchase of Large Plant 31/03/2024 500,000 Purchase of Skips 31/03/2024 100,000 Repairs to Horseshoe Bridge and associated path network (in conjunction with Roads) 31/03/2024 50,000 Direct Award for the Supply and Delivery of Fresh Fruit and Vegetables (Fresh and pre-prepared) Scotland Excel 10-19 31/03/2024 1,000,000 Advocacy and participation for children & young people 31/03/2024 500,000 Debt Management & Diligence Services 01/04/2024 100,000 National Framework Contract for the Supply of Natural Gas 01/04/2024 3,100,000 East Kilbride - Street Lighting 01/04/2024 50,000 Double Glazed Units Supply and Delivery 01/04/2024 100,000 Hamilton - Car Parking Resurfacing - Woodland Terrace 02/04/2024 50,000 Day Care Services - All Localities 03/04/2024 100,000 Multi Lot Roads and Infrastructure Framework 04/04/2024 50,000,000 Licensing & Registration System 05/04/2024 200,000 Safety Management Software, including Auditing & Accident software 06/04/2024 100,000 Telecare equipment - personal alarms (SW) 07/04/2024 500,000 PVC Products Lot 4 Building Materials PFH Scot- land 08/04/2024 50,000 Supply and Delivery of UPVC Materials 09/04/2024 100,000 Legal Services for SLLC 10/04/2024 150,000 Public Sector Geospatial Agreement (PSGA) 12/04/2024 421,900 Supply & Delivery of Groceries and Provisions 30/04/2024 4,000,000 Planer and Paver Hire and Works 30/04/2024 400,000 136
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Repair, Inspection and Maintaining of Catering Ma- chines 2024 30/04/2024 300,000 Supply and Delivery of Telecare Equipment 01/05/2024 500,000 Cashless Parking 30/05/2024 TBC Provision of Independent Advice and Support for Tenants in South Lanarkshire 31/05/2024 200,000 Winter Assistance - Farmers 31/05/2024 50,000 Provision of Employee Physiotherapy Services 07/06/2024 100,000 Supply and Support of Microsoft Licences 30/06/2024 200,000 Care at Home Framework 30/06/2024 770,000,000 Justice Services Lone Worker Alarms and Alarm Response Centre Support 10/07/2024 50,000 Corporate Clothing 31/08/2024 200,000 Hire of Waste Disposal Skips 12/09/2024 200,000 Provision of Moving and Assisting Training 30/09/2024 100,000 Provision of vehicle inspection services 31/10/2024 100,000 ICT - PSN Connectivity - PSN Circuit (CCS Net- work Services 2 RM3808) 30/11/2024 TBC Roads Network Management Software 31/12/2024 TBC Professional Services - Consultant for Waste Re- view 31/03/2025 130,000 Security for Council Offices 2025 onwards 31/03/2025 100,000 Mentoring Service for Vulnerable Young People 31/03/2025 500,000 Supply and Delivery of Domestic Furniture and Furnishings 31/03/2025 4,000,000 End User Computing & Device Management (Desktop) 30/06/2025 TBC Educational Materials - all Lots 31/07/2025 4,000,000 Education Digital Futures 30/09/2025 10,000,000 Provision of Managed Print Service for the South Lanarkshire Council Corporate Print Section 31/12/2025 TBC 137
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Governance of Charitable Trust Funds – 2022/2023 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. On 25 April 2018, the Finance and Corporate Resources Committee approved a proposal to modernise the Charitable Trust Funds. This included establishing governance arrangements as well as a formal constitution. 2 new charities with modern and appropriate constitutions were established in December 2019, with the transfer of funds to these from the old trust funds being subject to approval by OSCR. The process of modernisation is ongoing and until that exercise is complete reports on this matter will continue to be reported to this Committee. 3.2. For the purposes of reporting to the Office of the Scottish Charity Regulator (OSCR), South Lanarkshire Council had grouped the individual trusts funds into 3: South Lanarkshire Council Charitable Trusts; South Lanarkshire Council Educational Trusts; and East Kilbride Information Technology Centre Trust. 3.3. This paper will provide an update on the modernisation process (section 4) and an annual report on the financial position of the three Trust Funds as at 31 March 2023 (section 5). 4. The Modernisation of the Trusts 4.1. At a meeting of this Committee on 7 September 2022, it was noted that OSCR had 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. It was further noted that an application for the re-organisation of one Cambuslang and Rutherglen area fund had been submitted to OSCR on 5 August 2022 and that work was ongoing to draft applications to OSCR for the re-organisation of the Rutherglen Mortified Money fund and 7 East Kilbride Area funds. 12 139
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4.3. As of end August 2023, OSCR has approved the following applications:- Cambuslang and Rutherglen Area Funds (30 August 2022) East Kilbride Area Funds (8 December 2022) Rutherglen Mortified Money Fund (17 January 2023) John Adams Memorial Fund (12 June 2023) 4.4. As the John Adams Memorial Fund had been used historically to make payments to Hamilton Grammar School the application was to re-organise it by transferring the funds to The South Lanarkshire Educational Trust rather than The South Lanarkshire Charitable Trust. 4.5. Following the approvals referred to above and the expenditure of the remaining balance of The East Kilbride Information Technology Centre Trust (refer section 5.2), the only funds remaining in the old trust funds are those of the Loudon Bequest that remain in The South Lanarkshire Council Charitable Trust. 4.6. The funds of the Loudon Bequest will be transferred to The South Lanarkshire Charitable Trust as soon as approval is received from OSCR. It is anticipated that this will take place during 2023/2024. 4.7. The two new Trusts (The South Lanarkshire Charitable Trust and The South Lanarkshire Educational Trust) each have an appointed set of Trustees who are responsible for the governance of the funds that have been re-organised. 5. Summary of Financial Position for 2022/2023 5.1. No payments were made from the South Lanarkshire Council Charitable Trusts or the South Lanarkshire Educational Trusts during 2022/2023 as the process of re- organising the funds was underway. 5.2. At a meeting on 3 October 2022, the Trustees of the East Kilbride Information Technology Centre agreed that remaining balance of the funds amounting to £0.027 million fund would be used to fund a new Digital Support Service for digitally excluded young people in the former East Kilbride District Council area. This was provided with the support of South Lanarkshire College in East Kilbride and the funds were used to purchase 38 laptops. 5.3. The opening balance of the 3 reported Charitable Trust Funds, as at 1 April 2022 totalled £1.161 million. Following the transfer of funds to the 2 new Trusts and the expenditure from The East Kilbride Information Technology Centre Trust, the balance as at 31 March 2023 was £0.935 million, being the remaining balance on The South Lanarkshire Council Charitable Trusts. 5.4. The accounts for the 3 funds, including those with no remaining funds as at 31 March 2023, were approved for Audit by the Risk and Audit Scrutiny Committee on 27 June 2023. The Audit is ongoing. 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. 140
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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. 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 28 August 2023 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 Finance and Corporate Resources Committee, 7 September 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 (Strategy) Ext: 5637 (Tel: 01698 455637) E-mail: jackie.taylor@southlanarkshire.gov.uk 141
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Finance and Corporate Resource Plan: Quarter 4 Progress Report 2022/2023 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 2022/2023, for the period 1 April 2022 to 31 March 2023 [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 2022/2023 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 for the year, 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 2022/2023 was approved by the Executive Committee on 24 August 2022 and noted by this Committee on 7 September 2022 and sets out the outcomes, measures and actions to be managed and delivered by the Resource in the financial year 2022/2023. 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 Outcomes set out in the Council Plan Connect 2022 to 2027. 3.3. As Elected Members are aware, from March 2020 onwards at times the Council was forced to suspend or reduce a number of services that could not be continued in full due to the Covid pandemic. The Council was also obliged to redirect resources so that it could deliver vital new services and supports for individuals, communities, and businesses. Despite the return of services through the council’s Recovery Plan there is a Covid legacy in terms of a residual impact on some services and a significant build-up of demand, as a result of which there remains an inevitable impact on performance in some areas. 13 143
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4. Resource Outcomes 2022/2023 4.1. The Resource has established a number of outcomes to support the delivery of the Connect Outcomes in 2022/2023. These are detailed at Appendix 1. 5. Quarter 4 Progress Report 2022/2023 5.1. Progress against all Resource Plan measures is contained in the Quarter 4 Progress Report 2022/2023, 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 definitions 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 11 11 24% Green 14 15 29 63% Amber 3 2 5 11% Red 0 1 1 2% Report later/Contextual 0 0 0 0% Totals 17 29 46 100% (Data correct as at 28 August 2023) 5.3. Key achievements for 2022/2023, are noted below:- 5.3.1. Connect Outcome Communities and Environment Resource Outcome Achievement Individuals and communities in South Lanarkshire are engaged and able to participate in decision- making processes In pursuit of developing bespoke locality planning, two partnerships have been established in Cambuslang/Rutherglen and Clydesdale, chairpersons are in place and have joined the Community Planning Partnership Board. Burnhill Action Group, working closely with Community Engagement Team and liaising with Grounds Services, Planning and Community Service Team has developed an overgrown and vandalised area of ground at Burnhill Highbacks in Rutherglen into a brilliant community hub where fun days, 144
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youth activities and community engagement are delivered – a great use of council resources and specific Participatory Budgeting money. It also attracted external support and funding and now is a real benefit for the community. A great example of our neighbourhood planning work (Our Place Our Plan). Connect Outcome Education and Learning Resource Outcome Achievement No Resource Outcomes for this Connect Outcome Connect Outcome Health and Wellbeing Resource Outcome Achievement No Resource Outcomes for this Connect Outcome Connect Outcome Children and Young People Resource Outcome Achievement No Resource Outcomes for this Connect Outcome Connect Outcome Housing and Land Resource Outcome Achievement No Resource Outcomes for this Connect Outcome Connect Outcome Our Economy Resource Outcome Achievement A people-centred approach to recovery is implemented to help individuals, communities, businesses and the social and third sector thrive At the Community Wealth Building (CWB) Commission on 6 September an input from Centre for Local Economic Strategies (CLES)/Scottish Government provided an opportunity for a wide- ranging discussion of CWB both in the UK and elsewhere, which will feed into the further development of the strategy in South Lanarkshire. The strategy has widened in scope to include partner contributions through the action plan and reports to the Commission by partners provide opportunities to develop the strategy through partnership working. We support a range of Modern Apprentices in Care, Digital/IT, Construction and Business Administration, to help bring in a new talent pipeline of recruits to support the council’s workforce planning requirements. Following the launch of the Warm Welcome Grant Initiative Scheme the council worked to enable voluntary and third sector organisations to provide a network of warm spaces across the council area to assist individuals during the cost of living and fuel prices crisis. 35 applications were processed and payments made totalling £32,545 145
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5.3.2. In addition to working towards these Outcomes, 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 Council's Revenue Budget Strategy for 2023/2024 was approved by Council on 22 February 2023. The Council Tax level for 2023/2024 was declared on the same date, in line with Statutory deadlines. Customers experience high quality and improving Council services Licensing and Registration implemented a remote birth registration service, providing customers with the option of registering a birth either in person or over the phone. They also implemented the Short Term Lets Licensing Scheme and online application process. The use of 'real-time' messaging within Transactions has been implemented within the Benefits and Council Tax Call Centre and is being rolled out to other teams ie Non Domestic Rates (NDR), Customer Service Centre (CSC). This enables call handlers to issue links to online forms/web content to callers to promote customer self-service for enquiries, such as applying for Benefits/discounts and registering for myaccount. The new Council Plan 2022 to 2027 and the new Community Plan 2022 to 2032 were completed and approved by the full Council on 15 June 2022 Legal Services supported colleagues in Housing to deliver the programme to support Ukrainian displaced persons through : • the completion of a lease with landlords, to provide interim accommodation in Hamilton and • the award of a contract to the Salvation Army in December 2022 to deliver housing support services Various projects related to the council’s delivery of affordable housing: Legal Services successfully concluded missives for the acquisition of a site at Wellhall Road, Hamilton from Lovell Homes for construction. New housing constructed by the council was transferred to West Whitlawburn Housing Cooperation to ensure delivery of affordable housing in the local community. The workforce has the skills, flexibility and capacity to deliver the council’s priorities During the period 1 April 2022 to 31 March 2023, Council employees completed 129,310 eLearning modules. In the same period, 6,437 employees attended 1,187 classroom- based events, and 2,790 employees attended 271 virtual online events. Digital and ICT services meet the needs of the council and its customers • Implemented a new home care workforce scheduling system. • Upgraded Audio Visual systems installed within the Council Chambers, with live streaming available on the youtube channel • Refreshed network equipment across the schools estate. • Completed the migration of all desktop PCs from Windows 7 to Windows 10. 146
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Delivering the Plan and achieving Best Value Resource Outcome Achievement • Delivered the ICT requirements for the new Care Hub in Blantyre • Public Sector Network (PSN) accreditation was awarded 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 applicable. Delivering the plan and achieving Best Value Resource Outcome: Digital and ICT services meet the needs of the council and its customers Measure Comments/Progress Action by Manager (where applicable) Migrate to new Integrated Housing and Property Management system by Nov 2022 Due to COVID and other technical reasons, the project is currently being replanned. Contract with Aereon terminated and new contract signed to implement Capita Housing One. Project team formed and project initiation underway. Deadline revised to December 2024. 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, four measures recorded a decline in performance. Details of these four measures are included at Appendix 3. The remaining measures under scrutiny changed to Green (timescale or target met) or Blue (complete) and need no further action. 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. 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 Council acknowledges the serious and immediate threat of climate change and is committed to accelerating the pace of action in response to the climate emergency and in Scotland’s transition to a net-zero and climate resilient society and economy. All Resource Plans have recognised sustainable development and climate change as a key area of focus for 2023/2024. 147
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9. Other Implications 9.1. There are no other implications as a result of this report. 9.2. 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) 21 August 2023 Link(s) to Council Values/Priorities/Outcomes The Resource Plan has been structured upon the Vision, Values and Outcomes in the Council Plan Connect 2022 to 2027 Previous References Finance and Corporate Resource Plan Quarter 4 Progress Report 2021/2022 - noted by Finance and Corporate Resources Committee on 7 September 2022 List of Background Papers Council Plan Connect 2022 to 2027 – approved by the full Council on 15 June 2022 Finance and Corporate Resource Plan 2022/2023 – approved by Finance and Corporate Resources Committee on 7 September 2022 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 148
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Appendix 1 Finance and Corporate Resource Outcomes 2022-23 Connect Priority Resource Objectives Communities and Environment • Individuals and communities in South Lanarkshire are engaged and able to participate in decision-making processes Education and Learning • No Resource Outcomes for this Connect Outcome Health and Wellbeing • No Resource Outcomes for this Connect Outcome Children and Young People • No Resource Outcomes for this Connect Outcome Housing and Land • No Resource Outcomes for this Connect Outcome Our Economy • A people-centred approach to recovery is implemented to help individuals, communities, businesses and the social and third sector thrive 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 149
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Appendix 3 FCR: Quarter 2 to Quarter 4 2022-23 - scrutiny of change in measure status Measure Q2 Status Q4 Status Q4 Comments Performance has declined from Q2 to Q4 Number of unemployed people gaining sustainable employment Green Amber 584 people progressed to employment, with a number of others likely to achieve sustainable employment in coming month. The target of 600 was just missed due to delays in commencement of Scottish Government Funding in Quarters 1 and 2 of last financial year Liquor licensing processing target - 97% Green Amber Target not met due to volume of business, despite significant improvement in Quarter 4 with 99% of licences processed. Complete procurement exercise to identify partner to meet SLC Digital Connectivity requirements Green Amber Project delayed due to cost increases requiring further consideration of business justification. This will be picked up now new Head of IT Services in post Complete first phase of migration to Oracle Cloud Fusion system by February 2023 Green Amber The project timescales are currently being reframed 13 165
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Report Agenda Item Report to: Finance and Corporate Resources Committee Date of Meeting: 27 September 2023 Report by: Executive Director (Finance and Corporate Resources) Subject: Safety at Sports Grounds – Re-issue of General Safety Certificate for the ZLX Stadium 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, ZLX Stadium, 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, ZLX Stadium, 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”. The ZLX Stadium (formerly known as 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 18 July 2023, the North and West Stands at the ZLX Stadium were found to be well maintained. 14 167
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4.2. All of the relevant inspection certificates and test records were available for inspection with the exception of the following:- turnstile inspection certificate fire fighting equipment inspection certificate fire fighting equipment in-house inspection records 4.3. The fire fighting equipment inspection certificate and in-house inspection records have since been copied to the Council. Sports ground management have also advised that the inspection of the turnstiles has been undertaken and the certificate will be copied to the Council as soon as it is available. 4.4. The engineer’s structural inspection report stated that there was no evidence of primary structural defects. A number of observations and comments on minor defects were included in the report and stadium management have since advised that all the identified actions have been completed. 4.5. In addition to the actions identified in the engineer’s report, 2 further actions had been identified during the inspection, 1 of which was completed prior to the General Safety Certificate being re-issued and the other has been completed since its re- issue. 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 the ZLX Stadium and the following changes had been made to the Certificate:- Holder is asked to inform the Council of the name of the person at senior level in the organisation who is responsible for safety policy and its implementation Holder is asked to produce an event safety policy Holder is asked to produce a Fire Safety Plan Holder is asked to ensure that all directly employed in-house stewards are trained, assessed and have achieved a Level 2 spectator safety qualification Holder is asked to check that agency stewards undertaking licensable activities hold a valid and appropriate SIA licence Holder is asked to invite as opposed to notify the Council, Police Scotland, Scottish Fire and Rescue Service and the Scottish Ambulance Service to exercises carried out at least annually to ensure the emergency procedures set out in the contingency plans operate correctly Holder is asked to liaise with emergency services and other relevant agencies to ensure the contingency plans are compatible with the emergency or major incident plans of those other agencies Holder is asked to produce a written Crowd Disorder and Anti-Social Behaviour Plan Holder is asked to produce a security assessment to include the risk of a terrorist incident and develop a written Security and Counter Terrorism Plan following consultation with Police Scotland 4.7. In addition to the above, the following amendments have also been made to appendix 2 of the General Safety Certificate:- 168
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the maximum number of spectators which may be admitted to the West Stand has increased from 3,264 to 3,308 and the maximum number of spectators which may be admitted to the North Stand has increased from 2,246 to 2,274 as the capacities now include provision for spectators with disabilities and their carers/companions in the Stands and trackside concourses although not a regulated stand in terms of the Fire Safety and Safety of Places of Sport Act 1987, reference is now included to the maximum number of spectators, as set by the Holder of the General Safety Certificate, which may be admitted to the East Stand on any one occasion for the purpose of a specified activity, at 498 4.8. In terms of the policy documents and plans listed at paragraph 4.6, stadium management have been asked that these are produced prior to the commencement of the 2024/2025 season. 4.9. The Stadium Safety Team had reviewed the operations manual for last season which reflected that the stadium also hosted the home games of Clyde Football Club. Separate operations manuals are now in place for Hamilton Academical Football Club and Clyde Football Club for the 2023/2024 season. 4.10. 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 the ZLX Stadium to allow it to be re-issued prior to the start of the 2023/2024 football season which commenced on 5 August 2023. 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 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 the ZLX Stadium which include checks of safety procedures, physical inspections of the Stands and checks of inspection and test certificates of various installations and equipment. 169
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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 the ZLX Stadium 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) 6 September 2023 Link(s) to Council Values/Priorities/Outcomes Focused on people and their needs Previous References Finance and Corporate Resources Committee – 7 September 2022 List of Background Papers General Safety Certificate for Regulated Stands – North and West Stands, ZLX Stadium, 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 170