Item 14 Appendix 3
West Dunbartonshire Council · 30 October 2024
Back to West Dunbartonshire Council — 30 October 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 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % Finance 1,487 1,701 215 14% . Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Revenues & Benefits 2,316 2,393 77 3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Corporate Assets (2,783) (2,655) 128 -5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome 31 August 2024 Budget Details Variance Analysis Variance Resources The service provided by this area deals with Accountancy, Capital, Treasury, Reconciliations, Cash Office and Municipal Bank A projected full year variance of £183k in Payments to Other Bodies relates to grants awarded from the cost of living fund and will be fully covered by the earmarked reserve set aside for this. No action required Adverse variance is anticipated but funded by an earmarked balance The service provided by this area deal with benefits, council tax and debt recovery. Variance is offset by £66k Social Welfare Fund earmarked reserve. None required Small adverse variance is anticipated This service provides asset and estate management Property costs are overspending by £134k mainly due to increased costs for utilities. None required. Under recovery of income anticipated
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 August 2024 Budget Details Variance Analysis Variance Planning 553 462 (91) -16% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Strategic People and Change 1,806 1,858 53 3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Information Services 4,747 4,817 70 1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Regulatory and Regeneration This Service provides Building & Planning services A £106k favourable variance in employee costs is due to delays and difficulties filling vacancies. None possible Favourable variance is anticipated People & Technology 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 partly due to turnover savings not being fully met and additional training costs. The training cost element will be covered by an earmarked balance of £35k. None at this time An adverse variance is anticipated however £35k of earmarked balance will partially offset this. This service area provides general ICT support to the Council and also supports transformational change and modernisation of working practices through technology The favourable variance in income is due to additional staff recharges and this is offset by the higher than budgeted staff costs due to the additional staff. In addition inflationary pressures on the software licencing element of the budget is currently projecting a £73k adverse variance. None possible at this time. Adverse variance overall is anticipated, licencing costs are being closely monitored.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 August 2024 Budget Details Variance Analysis Variance Building Cleaning 1,820 1,760 (60) -3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Building Cleaning PPP (208) (295) (87) 42% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Facilities Assistants 2,362 2,263 (99) -4% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Facilities Management 404 461 57 14% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Citizens, Culture and Facilities This service provides cleaning services across all council buildings There has been greater than anticipated expenditure on cleaning material costs (£35k) ,urgent equipment replacements (£53k) and replacement uniforms (£4k). However, there is a favourable variance against employee costs due to a number of vacancies (£152k). material costs and usage will be monitored a favourable variance anticipated This service provides cleaning services to PPP schools There is a favourable variance against employee costs due to a number of vacancies none a favourable variance anticipated This service provides Facility Assistants throughout WDC buildings There is a favourable variance against employee costs 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 There is an adverse variance against employee costs principally because turnover is not being achieved . none at present adverse variance anticipated
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 August 2024 Budget Details Variance Analysis Variance Primary Schools 33,430 33,064 (366) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Secondary Schools 34,602 34,364 (239) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Specialist Educational Provision 21,142 21,509 367 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Education , Learning and Attainment This service area includes all Primary Schools. The favourable variance is attributable to the average unpromoted teacher salary being slightly less than forecast when the budget was set none favourable variance This service area includes all Secondary Schools. The favourable variance is attributable to the average unpromoted teacher salary being slightly less than forecast 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 favourable variance This service area covers all ASN Services. Employee costs, after allowing for the carry forward of Ukrainian grant income, remain adverse (£58k) partly due 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 utility costs (£45k) and taxis (£113k) have been higher than anticipated when the budget was set. The final budget pressure is an increased net cost for external placements (£151k). none possible at present overspend anticipated
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 August 2024 Budget Details Variance Analysis Variance Early Education 9,094 9,298 204 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome PPP 18,082 18,003 (79) 0% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Central Admin 864 1,018 155 18% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome This services area includes all Early Years establishments within West Dunbartonshire. There is an adverse variance against net cross-boundary transactions of £102k. The remainder of the adverse variance is due to APT&C turnover not being achieved. none possible at present adverse variance This service area includes Vale of Leven, Clydebank High and St Peter the Apostle High Schools and St Eunan's Primary School. The costs charged to this service are Property costs and the Unitary charge. The estimated inflationary uplift anticipated for the contractual increase for the unitary charge was higher than the actual RPI none necessary favourable variance This service area covers Education Directorate There is an adverse variance against Summer Programme activities (£77k) which will be 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 15% higher than the caseload implicit in our actual allocation. none possible overspend anticipated
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 August 2024 Budget Details Variance Analysis Variance Transport, Fleet & Maintenance Services (807) (680) 126 -16% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Roads Services 2,544 3,193 649 26% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Burial Grounds (313) (162) 151 -48% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Crematorium (1,234) (1,125) 109 -9% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Roads and Neighbourhood This service relates to Roads operations, design, structures, street lighting, road safety and school crossing patrols Employee costs are anticipated to overspend by £60k 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 £308k. Winter gritting is anticipated to overspend £60k due to costs of salt and quantity required. Diesel is anticipated to overspend by £30k due to increased fuel costs. Street lighting is overspending by £45k due to increased utility costs. The remaining overspend anticipated is mainly 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 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 an 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 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 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
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 August 2024 Budget Details Variance Analysis Variance Waste Services 8,922 9,298 376 4% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Ground Maintenance & Street Cleaning Trading A/c (2,484) (2,212) 272 -11% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Waste Collection and Refuse disposal services Transport costs, are anticipating an overspend of £200k 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 £226k 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 overspend is offset by an underspend of £87k in Supplies and Services. All refuse vehicles were received in September so hires have now ceased. overspend anticipated Trading operation providing grounds maintenance and street cleaning services Employee costs are overspending by £56k mainly due to additional overtime required for jobs requested by other Services. Supplies and services is forecasting an overspend of £195k due to cost of parts for repairs which is demand led (£60k) and overspending on contractors (£108k). A review of all contractor spend is underway to identify any opportunities to reduce or mitigate the anticipated overspend. The remainder is due to small overspends in various areas. None at the moment. overspend anticipated
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 August 2024 Budget Details Variance Analysis Variance Working 4 U 1,954 2,294 340 17% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Sundry Services 5,988 6,156 168 3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Housing and Employability This is the provision of Working 4u service. The adverse variances on payments to other bodies/ other expenditure reflects spend that will met by use of earmarked balances. None Required. Net expenditure will be in line with budget. Miscellaneous This service area budgets for non departmental specific costs such as pensions costs, external grants, external audit fees and insurance costs. The service heading also holds a number of general savings options which have still to be fully allocated eg procurement targets. The main reason for this adverse variance is due to the unbudgeted cost of historic child abuse compensation claims (£0.236m). This adverse variance is offset partly by underspends across several other budget headings. Income and expenditure will continue to be monitored throughout the year. An overall adverse variance is anticipated at this time
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 August 2024 Budget Details Variance Analysis Variance Loan Charges 18,342 18,672 330 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Transfer to Reserves re SPFO reductions 7,270 5,332 (1,938) -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 Other This budget represents the removal of the excess budgeted pension costs stemming from 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, 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 £7.270m which reflects the in year reduction in service staff cost budget. It was agreed on 6 March 2024 to use £5.332m of the reduction in pension contributions to balance the 2024/25 budget. None Required The underspend of £1.938m 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. This budget covers the servicing of the Council's external borrowing requirements The adverse variance is due to higher than forecast interest rates which were originally expected to fall within quarter 1 of the financial year, however, this reduction is now being forecast in quarter 4 of 2024/25 and is the main reason for the adverse variance. None possible at present Overspend anticipated 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.