Item 7 - Budgetary Control Report Capital Period 3 2024-25
West Dunbartonshire Council · 14 August 2024
Back to Corporate Services Committee — 14 August 2024 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Corporate Services Committee – 14 August 2024 ___________________________________________________________________ Subject: Corporate Services Capital Budgetary Control Report to 30 June 2024 (Period 3) 1. Purpose 1.1 This report provides an update on the Corporate Services capital programme to 30 June 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 a projected adverse project life variance of £0.040m (0.14% of the overall revised budget) iii) Note an in-year variance of £0.162m due to reprofiling of projects. iv) Approve additional prudential borrowing of £0.040m to fund the adverse variance noted in 2.1 ii) above for the Agresso Development Project. 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 Remove Electronic Insurance System, Project ended. (0.007) (0.050) RES 7 Community Success Capital Fund 0.150 0.150 RES 8 Community Sports Success Capital Fund 0.250 0.250 Revised Capital Budget as at Period 3 4.017 28.910
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4. Main Issues 4.1 Progress against the 2024/25 capital plan is detailed in: Appendix 1 – Project Life Summary by Chief Officer Appendix 2 – Off Track Projects Appendix 3 – Changes to Capital Plan for Noting Appendix 4 – All Approved Projects 4.2 The overall programme summary report at Appendix 1 shows that planned expenditure is higher than the budget agreed 6 March 2024 by £0.040m (0.14% of budget) due to an anticipated overspend on the Agresso Development Plan. 4.3 Appendix 2 highlights three projects currently showing as off-track. • Agresso Development due to necessary £0.04m further expenditure to ready the system for cloud migration. • Transformation of Infrastructure Libraries and Museums - CCF2 due to savings options taken at Council which had an impact on sites and previous spend profile was then refocused to accommodate the new decisions for colocations. • Legal Case Management System (RR1) - waiting to explore the functionality of Sharepoint to see if a new standalone system is required for this. 4.4 Appendix 3 highlights seven projects where the project expenditure requires to be reprofiled but there is no need for additional budget. 4.5 Appendix 4 shows all projects with approved in year and project life budgets as well as anticipated expenditure. It highlights that the 2024/25 budget is £4.017m with current forecast spend of £4.179m, a variance of £0.162m, (4.03%). The spend as at period 3 is £0.167m (4.0%) of the current forecast spend of £4.179m. 4.6 Other minor changes to the capital plan already included in the summarised plan in appendix 4 are: • Removal of Electronic Insurance System budget of £0.007m in 2024/25. This project is now complete. • Addition of Community Success Fund budget of £0.250m in 2024/25 • Addition of Community Sports Success Fund budget of £0.150m in 2024/25 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
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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: (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: 26 July 2024 ________________ Person to Contact: Adrian Gray Council Offices, Church Street, Dumbarton E-mail: adrian.gray@west-dunbarton.gov.uk Appendices: Project Life Summary Off Track Projects Reprofiling and Acceleration of Projects Appendix 1 - Appendix 2 - Appendix 3 - Appendix 4 - Details of all Projects. Background Papers: General Services Capital Plan Update - Council 6 March 2024. Wards Affected All Wards