Item 13 - Capital Budgetary Control Report to 31 October 2024 (Period 7)
West Dunbartonshire Council · 5 February 2025
Back to Corporate Services Committee — 5 February 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Corporate Services Committee – 5 February 2025 ___________________________________________________________________ Subject: Corporate Services Capital Budgetary Control Report to 31 October 2024 (Period 7). 1. Purpose 1.1 This report provides an update on the Corporate Services capital programme to 31 October 2024. 2. Recommendations 2.1 Committee is asked to: i) Note the current position of the 2024/25 capital budget for Corporate Services ii) Note that the project life total is currently on track. iii) Note that the £1.000m capital budget for a new financial ledger system and the associated £0.028m per annum revenue costs to cover the interest on the prudential borrowing over 20 years of the life of the asset were approved by council on 18th December 2024 3. Background 3.1 On 6 March 2024 the Council approved the updated General Services Capital Plan for 2024/2025 to 2032/33. The three years from 2024/25 to 2026/27 were approved in detail with the remaining years being indicative. 3.2 Since then budget adjustments have taken place which result in a revised Corporate Services capital budget as set out in Exhibit 1. Exhibit 1: Revised Corporate Services Capital Budget 2024/25 (£m) Project Life (£m) Corporate Services Capital Budget Agreed 6 March 2024 3.624 28.560 Updates reported to Committee on 14 August and 6 November 2024. 0.432 0.390 Reprofiling reported to Committee on 6 November 2024. 0.123 0 Added Replacement of Council’s financial ledger system 0.100 1.000 Revised Capital Budget as at Period 7 4.279 29.950 Main Issues ITEM 13
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4.1 Progress against the 2024/25 capital plan is detailed in: Appendix 1 – Project Life Summary by Chief Officer Appendix 4 – All Approved Projects 4.2 The overall programme summary report at Appendix 1 shows that planned expenditure against the budget agreed 6 March 2024 is on track. 4.3 Appendix 4 shows all projects with approval in year and project life budgets as well as anticipated expenditure. It highlights that the 2024/25 budget is £4.279m with current forecast spend of £4.279m. The spend as at period 7 is £1.015m (23.72%) of the current forecast spend of £4.279m. 4.4 Members are asked to note that additional capital budget of £1.000m to fund the replacement of the Council’s financial ledger system (Agresso) was approved by Council on 18th December 2024. The current financial system has been in use since 2006/07. The current provider has advised the Council they will no longer support locally installed versions of Agresso and therefore there is a risk of systematic failure. It is an appropriate time to review alternative systems and perform an options appraisal on available systems and compatibility with other Council systems. The approved capital costs (£1.000m) are an initial estimate of the potential cost implications if the Council decide to replace the current system with a new system and includes associated installation, hardware configuration, consultancy costs and training costs. This is based on similar projects recently carried out at other Local Authorities. It is anticipated the replacement system will result in an increased revenue cost to the Council of £0.028m per annum as a result of the different licencing model. The anticipated ongoing revenue implications were approved by council on 18th December 20204. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 The report notes the projected in-year financial position for capital budgets. 8. Risk Analysis 8.1 The main risks are as follows:
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(a) The reported variances should be viewed in the knowledge that there are a number of variable factors which could arise between now and 31 March which could affect the year end results for capital budgets. (b) As a consequence of current market conditions, inflation is at an all-time high and interest rates continue to be volatile. To forecast for the full year costs budget assumptions have been required. These assumptions continue to change regularly and therefore it is likely the projected year end budgetary position will change from that reported. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 All services involved in delivering the capital budgets have been consulted in the compilation of this report. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s current Strategic Plan. This report forms part of the financial governance of the Council. Laurence Slavin Chief Officer – Resources Date: 13 January 2025 ________________ Person to Contact: Adrian Gray Council Offices, Church Street, Dumbarton E-mail: adrian.gray@west-dunbarton.gov.uk Appendices: Project Life Summary Appendix 1 - Appendix 2 - Details of all Projects. Background Papers: General Services Capital Plan Update - Council 6 March 2024. Capital Monitoring Report – Council 6 November 2024. Wards Affected All Wards
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