Item 14 - IRED - BCR Revenue Monitoring Report
West Dunbartonshire Council · 5 February 2025
Back to Infrastructure, Regeneration & Economic Development Committee — 5 February 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Infrastructure, Regeneration & Economic Development Committee: 5 February 2025 ___________________________________________________________________ Subject: Infrastructure, Regeneration & Economic Development Revenue Budgetary Control Report 2024/25 to Period 7 (31 October 2024) 1. Purpose 1.1 This report provides an update on the revenue financial performance to 31 October 2024 of those services under the auspices of the Infrastructure, Regeneration & Economic Development Committee (IRED). 2. Recommendations 2.1 Members are asked to: i) Note the contents of this report showing the revenue budget forecast to overspend against budget by £2.040m (15.40%) at the year-end. 3. Background Revenue 3.1 At the meeting of West Dunbartonshire Council on 6 March 2024, Members agreed the revenue estimates for 2024/25. A total net budget of £14.722m was approved for IRED services.Since the budget, changes to the value of £1.477m have occurred as detailed in the table below: Description £m Budget Agreed March 2024 14.722 Previously Reported 6/11/2024 Remove Office Accommodation budget from IRED as included within Corporate Services (0.924) Adjust for Central Support Allocation accounted for centrally (0.147) Adjust for Revenue Support Grant Income accounted for centrally 0.580 Superannuation Saving (1.517) Subsequent Changes Additional Budget for Pay Award 0.258 Adjust for Central Support Allocation removed due to changes in the establishment. 0.070 ITEM 14
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Reduce Superannuation saving from Roads as already accounted for in Corporate Assets and Economic Development. 0.117 Other minor movements between Committees 0.007 Transfer of savings from Corporate Assets as allocated appropriately to Office Accommodation. 0.079 Revised Budget 13.245 4. Main Issues Revenue Budget 4.1 The summary report at Appendix 1 identifies a projected adverse variance of £2.040m, however, after taking into account £0.094m of earmarked reserves available the underlying adverse variance is £1.946m. The current projection shows a decline in the year end position from the figure reported at period 5 with an increase in the anticipated overspend of £0.090m as detailed in the table below. Detailed service reports are attached at Appendix 2. £m £m Net Underlying Adverse Variance at Period 5 1.856 Movement in Service Variances Explanation RNT Roads Services Rates actual lower (£12k) and payments to Greenspace lower (£10k) (0.022) Crematorium Reduction in anticipated income 0.106 Waste Services Waste Collection costs increased 0.062 Grounds Maintenance and Street Cleaning Trading Account Reduction in costs for Fuel and vehicle repairs. (£32k). Increase in requirement for tools and equipment (£32k). Increase in staffing costs due to current level of vacancies and service requirements (£25k). Costs for provision of CCTV.(£19k). 0.044 Other Various other small variances. 0.025 Corporate Functions Corporate Assets Various small variances (0.026) Other Various small variances (0.005) Use of EMR Smoothing fund used to fund 2024/25 savings not achieved in year. (0.094) Total Movement in Service Variance 0.090 Net Underlying Adverse Variance at Period 7 1.946
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4.2 Of the 14 services monitored 4 are showing either a favourable or nil variance, with 7 services showing an adverse variance. Comments are shown in Appendix 3 when there are projected net annual variances greater than £0.050m and also where the net variance is below £0.050m but there are offsetting variances of over £0.050m within the service. 4.3 The working group have developed an action plan to identify controllable forecast overspend and reduce this as much as possible. This has included a review of the roads capital programme to reduce spend on materials and plant, a move to essential safety spend only in relation to revenue works and a review of capital recharges. In relation to waste services there has been a review of anticipated income, vehicle spend and tonnage. A wider review of recharging continues within Transport and Fleet. Further reduction in spend is anticipated as the action plan is delivered and will be reported to future IRED meetings. 4.4 Appendix 4 to the report summarises the current position against the saving options agreed by council as part of setting the 2024/25 budget. 5. People Implications 5.1 There are no people implications. 6. Financial Implications 6.1 Other than the financial position noted above, there are no financial implications of the budgetary control report. Officers are currently reviewing budgets and projections with a view to improving the position by financial year end and progress will be highlighted in future reports to committee. 7. Risk Analysis 7.1 The present variances should be viewed in the knowledge that there are a number of variable factors which could arise between now and 31 March and which could affect the year end results. 8. Equalities Impact Assessment (EIA) 8.1 The report is for noting and therefore no Equalities Impact Assessment was completed for this report. 9 Consultation 9.1 The views of both Finance and Legal services have been requested on this report and both have advised there are neither any issues nor concerns with the proposal. As the report is for noting no further consultation is envisaged. 10. Strategic Assessment
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10.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the five strategic priorities of the Council’s Strategic Plan. This report forms part of the financial governance of the Council. This report is for noting and, therefore, does not directly affect any of the strategic priorities. Laurence Slavin Chief Officer – Resources Date: 21 January 2025 Person to Contact: Jackie Thomson - Business Unit Finance Partner, 16 Church Street, Dumbarton, G81 1QL. e-mail jackie.nicolthomson@ west-dunbarton.gov.uk Appendices: Appendix 1 - Summary Budgetary Position (Revenue) Appendix 2– Detailed Budgetary Position (Revenue) Appendix 3 – Variance Analysis (Revenue) Appendix 4 – Efficiencies & Management Adjustments Background Papers: None Wards Affected: All