Item 12 Appendix 3
West Dunbartonshire Council · 28 August 2024
Back to West Dunbartonshire Council — 28 August 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % Revenues & Benefits 2,317 2,377 61 3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Variance is offset by £66k earmarked balance None required Favourable variance is anticipated The service provided by this area deal with benefits, council tax and debt recovery. 30 June 2024 Budget Details Variance Analysis Variance Resources
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 30 June 2024 Budget Details Variance Analysis Variance Democratic and Registration Service 743 688 (55) -7% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Strategic People and Change 1,806 1,887 81 4% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome This service area provides strategic and operational HR advice, H&S advice and guidance (including fire safety) and strateigc and operational risk management. The adverse variance in staffing costs is due to full turnover savings not being fully met. None at this time An adverse variance is anticipated. People & Technology Regulatory and Regeneration This services deals with the administration functions and Democratic Services within the Authority The favourable variance is due to a number of vacancies that are yet to be filled. Recruitment is being undertaken to fill necessary vacancies Favourable variance is anticipated
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 30 June 2024 Budget Details Variance Analysis Variance Catering 4,740 4,621 (119) -3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Building Cleaning 1,898 1,726 (172) -9% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Building Cleaning PPP (208) (290) (82) 39% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Facilities Assistants 2,362 2,242 (119) -5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Facilities Management 404 510 107 26% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome employee costs are lower due to a number of vacancies none a favourable variance anticipated Management and Team Leaders for Facilities Services such as Cleaning, Catering and Facilities Assistants £50k savings allocated across Facilities Management have not been realised yet.In addition £20k salaries previously allocated to Early Years will no longer happen.The remaining balance is attributable to turnover not being achieved . none at present adverse variance anticipated This service provides Facility Assistants throughout WDC buildings This service provides cleaning services across all council buildings The reason for the favourable variance is the number of ongoing vacancies None required at present Underspend likely This service provides cleaning services to PPP schools employee costs are lower due to a number of vacancies none a favourable variance anticipated none a favourable variance anticipated Citizens, Culture and Facilities Catering Services across WDC employee costs are lower due to a number of vacancies
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 30 June 2024 Budget Details Variance Analysis Variance Communities 785 938 153 19% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Primary Schools 33,429 33,155 (274) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Secondary Schools 34,632 34,474 (158) 0% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Specialist Educational Provision 21,142 21,652 510 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome favourable variance This service area covers all ASN Services. Employee costs are adverse following the Council decision after the budget was set to accommodate additional ASN cases in mainstream schools as part of the enhanced support within local learning communities. In addition electricity costs and taxis have been higher than anticipated when the budget was set. The final budget pressure is increased costs for placements within other local authorities. none possible at present overspend anticipated Education , Learning and Attainment This service area includes all Primary Schools. The favourable variance is attributable to the average unpromoted salary being slightly less than predicted when the budget was set none favourable variance This service area includes all Secondary Schools. The favourable variance is attributable to the average unpromoted salary being slightly less than predicted when the budget was set. This has offset the adverse variance which has arisen due to the increase in electricity costs being higher than anticipated when the budget was set and accidental/malicious damage costs being higher than expected. none This service provides support to communities There have been delays in achieving the communities restructure savings Progression with restructure Adverse variance
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 30 June 2024 Budget Details Variance Analysis Variance Early Education 9,095 9,237 142 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Central Admin 864 1,000 136 16% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Transport, Fleet & Maintenance Services (807) (470) 337 -42% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Transport services across WDC Income is anticipated to be less than budgeted due to number of external users of MOT station being low. Although currently showing and under recovery of full costs a review of service requirements is being undertaken to ensure all applicable costs are recovered. Service User Review Overspend anticipated although may reduce following review Roads and Neighbourhood overspend anticipated This service area covers Education Directorate Summer Programme activities (£59k) is covered by an earmaked balance. The remaining adverse variance is attributable to school meal holiday payments being in excess of the sum allocated by the Scottish Government - our eligible caseload is about 24% higher than the caseload implicit in our actual allocation. none possible Net cross-boundary transactions are a net cost of £102k. In addition, the budget assumed a £31k recharge to capital which will no longer proceed. none possible at present adverse variance This services area includes all Early Years establishments within West Dunbartonshire.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 30 June 2024 Budget Details Variance Analysis Variance Roads Services 2,544 3,319 775 30% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Burial Grounds (313) (157) 156 -50% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Crematorium (1,234) (1,033) 201 -16% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Income from cremations is less than budgeted. This is demand led and may change throughout the year. None at the moment. Under recovery of income anticipated This service provides burial services within the Council area Income from burials is less than budgeted. This is demand led and may change throughout the year. None at the moment. Under recovery of income anticipated This service provides crematorium services within the Council area This service relates to Roads operations, design, structures, street lighting, road safety and school crossing patrols Employee costs are anticipated to overspend by £167k mainly due to essential overtime. Plant hire costs and material costs have increased due to higher inflation than anticipated. The overspend anticipated on this is £384k. Winter gritting is anticipated to overspend £60k due to costs of salt and quantity required. Diesel is anticipated to overspend by £40k due to increased fuel costs. Street lighting is overspending due increased utility costs. The remaining overspend anticipated is in relation to general increased costs and inflationary pressures to undertake works required. Costs within the service are recharged to capital however, costs recharged are not sufficient to offset all costs incurred by the service. A review of the delivery of how capital projects are delivered will be undertaken. Overspend anticipated although may reduce following review
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 30 June 2024 Budget Details Variance Analysis Variance Waste Services 8,916 9,612 695 8% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Ground Maintenance & Street Cleaning Trading A/c (2,484) (2,230) 254 -10% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Working 4 U 1,954 2,284 330 17% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome None at the moment. overspend anticipated Housing and Employability This is the provision of Working 4u service The adverse variances on payments to other bodies/ other reflect agreed spend on payments to other bodies/ other which are to met by the use of earmarked balances. None Required A year end underspend is anticipated Waste Collection and Refuse disposal services Transport costs, are anticipating an overspend of £213k principally due to hire costs being greater than anticipated when the budgets were set because of delays in acquiring new refuse vehicles. This is a part year issue as the majority of vehicles have now been received and hire costs for these vehicles will cease. Employee costs are overspending by £260k mainly due to overtime costs due to requirement to cover public holidays and periods of annual leave or sickness. In addition overtime budgets do not include pay award increase. The garden waste permit sale is anticipated to be lower than budgeted however will be partly offset by reduced disposal costs. Leaving an anticipated under recovery of £50k . The remaining underspend is mainly due to an anticipated reduction in income All refuse vehicles will be received by September so hires will cease. overspend anticipated Trading operation providing grounds maintenance and street cleaning services Supplies and services is showing an anticipated overspend of £210k. £60k is due to cost of parts for repairs which is demand led. The remaining overspend is mainly in relation to overspending on contractors. A review of all contractor spend is underway to identify any opportunities to reduce or mitigate the anticipated overspend.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 30 June 2024 Budget Details Variance Analysis Variance Transfer to Reserves re SPFO reductions 7,310 5,332 (1,978) -27% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Strategy to Rebuild Reserves 3,040 0 (3,040) -100% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome This budget represents the approved strategy to rebuild general reserves At its meeting in June, Council approved a 3 year strategy to replenish the Council's reserves using the additional £1.129m of recurring Revenue Support Grant Funding, £1.051m additional reduction in pension contribution and the release of £0.860m of earmarked funding to the general fund. This favourable variance reflects the strategy to rebuild the Council reserves. None Required The anticipated underspend will be transferred to reserves to help rebuild the general fund back to the prudential level. This budget represents the removal of the excess budgeted pension costs as a result of the reduction in pension rate from service departments. On 20 December 2023, a report to Council presented the financial benefit to the Council as a consequence of the Strathclyde Pension Fund (SPF) Board reducing the employer pension contribution rate in the years 2024/25 and 2025/26 to 6.5% from 19.3%. Service superannuation budgets have been reduced via a virement to a central reserve and to date £7.310m has been vired, to reflect the saving. £5.332m is to be used to balance the budget in year with the balance to be used in future years as agreed at Council on 6 March 2024. As a result the budgeted transfer to Reserves is £7.310m which reflects the in year reduction in service staff cost budget. It was agreed on 6 March 2024 to use None Required The underspend of £1.978m will be transferred to an earmarked reserve to be used to balance the budget in future years as agreed by Council on 6th March 2024. Other