Item 12 - Educational Services Capital Budgetary Control Report 2024-25 to 31 August 2024 (Period 5)
West Dunbartonshire Council · 27 November 2024
Back to Educational Services Committee — 27 November 2024 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Educational Services Committee 27 November 2024 ___________________________________________________________________ Subject: Educational Services Capital Budgetary Control Report 2024/25 to 31 August 2024 (Period 5) 1. Purpose 1.1 This report provides an update on the capital financial performance to 31 August 2024 of those services under the auspices of the Educational Services Committee. 2. Recommendations 2.1 Committee is asked to: i) Note the current position of the 2024/25 Educational Services capital budget. ii) Note that the project life total is currently on track. 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. The budget agreed under the auspice of Educational Services Committee was £19.617m for 2024/25 and £59.634m for the project life budget. 3.2 Since then budget adjustments have taken place which result in a revised Education capital budget as set out in Exhibit 1. Exhibit 1: Revised Capital Budget 2024/25 (£m) Project Life (£m) Capital Budget Agreed 6 March 2024 19.617 59.634 Capital Project Removed (Para 4.4) (0.073) 0 Reprofiling agreed at P3 (0.206) 0 Revised Capital Budget as at Period 3 19.338 59.634 ITEM 12
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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 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 £19.338m with current forecast spend of £19.338m. The spend as at period 5 is £7.102m (36.72%) of the current forecast spend of £19.388m. 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. 7.2 Given ongoing volatile market conditions there is an increase in the expected labour and material costs at Faifley Campus. The estimated cost of Faifley Campus has been increased by £0.895m to £36.515m. At this stage, however, it is anticipated that this increase can be accommodated within the overall School Improvement capital budget which is currently unallocated 7.3 As a result of higher inflationary pressures the level of Scottish Government grant support for the new school has been increased to £21.011m from £18.416m. This will be payable over the financial years 2025/26 to 2050/51. 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.
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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: 11 November 2024 Person to Contact: Joe Reilly Council Offices, Church Street, Dumbarton E-mail: joe.reilly@west-dunbarton.gov.uk Appendices: Appendix 1 - Project Life Summary Appendix 2- Off Track Projects Appendix 3 - Reprofiling and Acceleration of Projects Appendix 4 - Details of all Projects. Background Papers: General Services Capital Plan Update - Council 6 March 2024. Capital Monitoring Report – Council 28 August 2024. Wards Affected All Wards