Item 13 - IRED Period 10 Revenue report
West Dunbartonshire Council · 21 May 2025
Back to Infrastructure, Regeneration & Economic Development Committee — 21 May 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Infrastructure, Regeneration & Economic Development Committee: 21 May 2025 ___________________________________________________________________ Subject: Infrastructure, Regeneration & Economic Development Revenue Budgetary Control Report 2024/25 to Period 10 (31 January 2025) 1. Purpose 1.1 This report provides an update on the revenue financial performance to 31 January 2025 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 £2.530m (18.40%) at the year-end. ii) Grant delegated authority to Chief Officer for Roads, Neighbourhood and Transport, in consultation with the Procurement Manager, to award contracts in relation to: The Provision of the Treatment of Organic Waste (food and garden) and Reception, Processing and Treatment of Co-mingled Recyclate. 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 £0.969m have occurred as detailed in the table below: Description £m Budget Agreed March 2024 14.722 Previously Reported 05/02/2025 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 ITEM 13
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Superannuation Saving (1.517) Additional Budget for Pay Award 0.258 Adjust for Central Support Allocation removed due to changes in the establishment. 0.070 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 Subsequent Change Additional Budget due to the disaggregation of the Communities Services 0.508 Revised Budget 13.753 4. Main Issues Revenue Budget 4.1 The summary report at Appendix 1 identifies a projected adverse variance of £2.530m, however, after taking into account £0.419m of earmarked reserves available the underlying adverse variance is £2.111m. The current projection shows a decline in the year end position from the figure reported at period 7 with an increase in the anticipated overspend of £0.165m as detailed in the table below. Detailed service reports are attached at Appendix 2. £m £m Net Underlying Adverse Variance at Period 7 1.946 Movement in Service Variances Explanation RNT Roads Services Use of the smoothing fund for previous saving whose implementation has been delayed. (0.378) Outdoor Services Reduction in golf course income 0.072 Ground Maintenance & Street Cleaning Trading Account Reduction in employee costs due to current level of vacances and anticipate overtime cost (0.119) Other service variances under £50k 0.027 Corporate Functions Corporate Assets Increase in level of repairs and maintenance required. 0.660 Other Service Variances under £50k (0.097) Total Movement in Service Variance 0.165 Net Underlying Adverse Variance at Period 10 2.111
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4.2 Of the 14 services monitored, four are showing either a favourable or nil variance, with seven 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 Appendix 4 to the report summarises the current position against the saving options agreed by the Council as part of setting the 2024/25 budget. 4.4 The Council’s Standing Orders have been changed to have contract authorisation submitted to service committees and delegated authority sought to appoint the contractor of the returned tender if the contract cost is within the approved budget and the tender is in line with normal tender parameters. 4.5 The Council are required to identify, procure and appoint suitably qualified competent service providers to carry out the processing, treatment and disposal of the co-mingled recyclate and the treatment of organic waste collected by Waste Services kerbside collections. The contracts will be awarded if the tender return is within the approved budget. This requirement will support the Council to meet their statutory recycling targets outlined by the Scottish Government. 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.
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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 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: 14 April 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