Document Pack Bookmarked 18.12.24
West Dunbartonshire Council · 18 December 2024
Back to West Dunbartonshire Council — 18 December 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Agenda West Dunbartonshire Council Date: Wednesday, 18 December 2024 ___________________________________________________________________ Time: 16:00 ___________________________________________________________________ Format: Hybrid meeting ___________________________________________________________________ Contact: Carol-Ann Burns, Senior Democratic Services Officer Email: carol-ann.burns@west-dunbarton.gov.uk committee.admin@west-dunbarton.gov.uk Dear Member Please attend a meeting of West Dunbartonshire Council as detailed above. Members will have the option to attend the meeting remotely or in person at the Civic Space, 16 Church Street, Dumbarton. The business is shown on the attached agenda. Yours faithfully PETER HESSETT Chief Executive Page 1
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Distribution:- Provost Karen Murray Conaghan Councillor June McKay Councillor James Bollan Councillor John Millar Councillor Ian Dickson Councillor Lawrence O’Neill Councillor Diane Docherty Councillor Lauren Oxley Councillor Fiona Hennebry Councillor Chris Pollock Councillor Gurpreet Singh Johal Councillor Martin Rooney Councillor Daniel Lennie Councillor William Rooney Councillor David McBride Councillor Gordon Scanlan Councillor Jonathan McColl Councillor Hazel Sorrell Councillor James McElhill Councillor Clare Steel Councillor Michelle McGinty Councillor Sophie Traynor Chief Executive Chief Officers Date of issue: 5 December 2024 Audio Streaming Audio recordings of the meeting (including the attendance or contribution of any party participating or making a contribution) will be published on the Council’s website and the Council’s host’s webcast/audio stream platform. You should be aware that the Council is a Data Controller under the General Data Protection Regulation. Data collected during this audio stream will be retained in accordance with the Council’s Privacy Notice* and Retention Schedules including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Page 2
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WEST DUNBARTONSHIRE COUNCIL WEDNESDAY, 18 DECEMBER 2024 AGENDA 1 STATEMENT BY CHAIR – AUDIO STREAMING 2 APOLOGIES 3 DECLARATIONS OF INTEREST Members are invited to declare if they have an interest in any of the items of business on the agenda and the reasons for such declarations. 4 RECORDING OF VOTES The Council is asked to agree that all votes taken during the meeting will be carried out by roll call vote to ensure an accurate record. 5 MINUTES OF PREVIOUS MEETING 9 – 15 Submit, for approval as correct record, the Minutes of Meeting of West Dunbartonshire Council held on 28 October 2024. 6 OPEN FORUM The Council is asked to note that no open forum questions have been submitted by members of the public. 7 RESULTS OF LOCAL GOVERNMENT BY-ELECTION HELD 17 – 20 ON 28 NOVEMBER 2024 AND VACANCIES ON COMMITTEES AND OTHER BODIES Submit report by the Chief Officer – Regulatory and Regeneration providing an update on the result of the Local Government by-election held in the Kilpatrick Ward on 28 November 2024 and seeking approval of the filling of the vacancies shown in the Appendix to the report. 8/ Page 3
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8 CHIEF SOCIAL WORK OFFICER ANNUAL REPORT 2023-24 21 – 94 Submit report by the Head of Children’s Health, Care and Justice Services (Chief Social Work Officer) providing the Chief Social Work Officer (CSWO) Annual Report for 2023-24 (Appendix 1) which details information on the statutory work undertaken on the Council’s behalf, including a summary of governance arrangements, service delivery, resources and workforce. 9 GLASGOW CITY REGION CITY DEAL – UPDATE 95 – 98 Submit report by the Chief Officer – Regulatory and Regeneration providing an update on the Exxon Infrastructure Project, and matters being discussed by Glasgow City Region. 10 FINANCIAL UPDATE 99 – 187 Submit report by the Chief Officer – Resources:- (a) providing an update on the financial challenges facing the Council, the estimated 2025/26 to 2029/30 revenue budget gaps and presenting the first tranche of saving options for Members’ consideration to help the Council deliver a balanced 2025/26 budget; and (b) seeking agreement to expand the number of shared posts within the Audit and Fraud shared service. 11 2022/23 ANNUAL AUDIT REPORT 189 – 294 Submit report by the Chief Officer – Resources:- (c) presenting to Members and the Controller of Audit the 2022/23 Annual Audit Report, for the Council and the Trusts administered by the Council, prior to approving the 2022/23 Audited Annual Accounts for both the Council and the charities administered by the Council; and (d) providing an update on the external audit of the Annual Accounts of the Council and the charities administered by the Council for the year ended 31 March 2023. 12/ Page 4
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12 2022/23 AUDITED FINANCIAL STATEMENTS 295 – 422 Submit report by the Chief Officer – Resources providing an opportunity for Members to scrutinise and approve the 2022/23 Audited Annual Accounts for the Council and the charities administered by the Council. 13 GENERAL SERVICES REVENUE BUDGETARY 423 – 453 CONTROL REPORT TO 31 OCTOBER 2024 (PERIOD 7) Submit report by the Chief Officer – Resources advising of the 2024/25 Revenue Budget position at 31 October 2024 and the forecast position of the General Fund Reserve as at 31 March 2025. 14 GENERAL SERVICES CAPITAL BUDGETARY CONTROL 455 – 468 REPORT 2024/25 TO 31 OCTOBER 2024 (PERIOD 7) Submit report by the Chief Officer – Resources providing an update on the General Services capital financial performance to 31 October 2024 15 HOUSING REVENUE ACCOUNT BUDGETARY CONTROL 469 – 478 REPORT TO 31 OCTOBER 2024 (PERIOD 7) Submit report by the Chief Officer – Resources providing an update of the 2024/2025 HRA revenue budget position on 31 October 2024 and the forecast position of the HRA reserves as of 31 March 2025. 16 HOUSING REVENUE ACCOUNT (HRA) CAPITAL 479 – 487 BUDGETARY CONTROL REPORT TO 31 OCTOBER 2024 (PERIOD 7) Submit report by the Chief Officer – Resources providing an update on the HRA capital programme to 31 October 2024. 17 2023/24 TREASURY MANAGEMENT ANNUAL REPORT 489 – 503 Submit report by the Chief Officer – Resources providing an update on treasury management during 2023/24. 18 TREASURY MANAGEMENT MID-YEAR REPORT 2024/2025 505 – 518 Submit report by the Chief Officer – Resources providing an update on treasury management to 30 September 2024. Page 5
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19 UPDATE ON WEST DUNBARTONSHIRE COUNCIL 519 – 562 ANNUAL PERFORMANCE REPORT Submit report by the Chief Officer – Citizen, Culture & Facilities providing further detail and explanation in relation to two specific Strategic Plan Performance indicators within the West Dunbartonshire Council Annual Performance Report 2023/24 which was presented to Council on 30 October 2024. 20 MAID OF THE LOCH TRUST 563 – 568 Submit report by the Chief Officer – Regulatory and Regeneration seeking agreement of changes to the status and constitutional documents of the Loch Lomond Steamship Company and the dissolution of the Maid of the Loch Trust 21 NOTICE OF MOTIONS (a) Motion by Councillor Fiona Hennebry – Voluntary Work in West Dunbartonshire West Dunbartonshire Council notes the tremendous work of the thousands of volunteers across our area and the ongoing support they give to individuals, families, and our communities The work they do covers all interests, and all age ranges, from volunteers supporting youth organisations, to those who provide help for elderly, and disabled people. Our volunteers help raise funds, they directly provide services, and they often take on responsibility for management and control of associated- facilities, such as football pitches, and community buildings. Our volunteers are out in all weathers, they work anti-social hours, and they often give up their nights and weekends to help others. The most recent biennial census of volunteers by Community Volunteer Service (CVS) was conducted in 2022 and showed the following: There were approx. 9,000 adults regularly volunteering (volunteering at least monthly over a 6 month period) – giving around 39,200 activity hours per week. • 48% of volunteers gave up to 2 hours per week; • 30% gave 2-4 hours a week; • 16% committed to between 4-8 hours per week; • 5% of volunteers worked 8-12 hours per week and volunteered daily. • While 4 out of 10 volunteers were male and 6 out of every ten were female volunteers. Page 6
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• The financial value of volunteering to the local authority area was estimated at £24.908 million. However, the real value of our volunteers isn’t the money they save, it’s the difference that they can make to the lives of our local people. At this time of year, our army of volunteers are working even harder, often going the extra mile to try to bring joy to others and to make the festive season special for others. This Council, recognises the fantastic contribution that all our volunteers make and it’s right – particularly at this time of year - that we take time to thank them. Note: The suspension of Standing Order 29(l) is required before consideration of the following item of business. (b) Motion by Councillor Jonathan McColl – Political Balance of the Council Council congratulates Cllr William Rooney on his election and welcomes him to West Dunbartonshire Council as the new member for the Kilpatrick Ward. With no planned by-elections, elected members can now take time to address the change in political balance of the Council; there now being 10 Labour, 7 SNP, 4 Independent and 1 West Dunbartonshire Community Party elected members, or 10 Administration to 12 Opposition. Given the change in political balance, it is our responsibility as elected representatives to discuss and agree a new governance structure as a matter of urgency. Council agrees it must adhere to the principles of democracy, openness and transparency with its political makeup of committees. Council also agrees to respect the right of the minority Administration to hold at least a casting vote majority on committees (with the exception of Audit) to allow stable governance of the Council. To this end, Council agrees the following changes to the political make-up of Committees and Outside Bodies: Audit Committee - 4 SNP, 3 Labour, 1 Other Community Planning West Dunbartonshire - 2 Labour, 1 SNP Corporate Services Committee - 6 Labour, 4 SNP, 2 Other Educational Services Committee - 7 Labour, 5 SNP, 2 Other Housing & Communities Committee - 6 Labour, 4 SNP, 2 Other IRED - 6 Labour, 4 SNP, 2 Other JCF - 3 Labour, 2 SNP, 1 Other Page 7
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Licensing Board - 4 Labour, 3 SNP, 1 Other Licensing Committee - 4 Labour, 3 SNP, 1 Other LNCT - 2 Labour, 2 SNP Planning Committee - 5 Labour, 3 SNP, 2 Other Tendering Committee - 4 SNP, 3 Labour, 1 Other WDHSCP IJB - 2 Labour, 1 SNP WDHSCP IJB Audit Committee All members of the WDHASP IJB COSLA (full convention) - 2 Labour, 1 SNP Officers will bring a report to the next Council meeting seeking appointments to any other outside bodies not listed above, where more than one appointment is required, or substitutes are asked for. The Leader of the Council will nominate members to all Labour positions listed above. The Leader of the Opposition will discuss opposition appointments with the Community Party and Independent Councillors and if agreement is reached, nominate opposition members to ‘SNP’ and ‘Other’ positions. After these discussions, where there remains an ‘Other’ vacancy, the Leader of the Opposition may, without the need for referral to Council, choose to appoint an SNP member to fill these positions. Should discussions amongst Opposition Councillors fail to reach agreement, a report will be brought to the next Council meeting for Council to seek nominations to fill ‘Other’ positions. The Leader of the Opposition will appoint the Convener and Vice Convener of the Audit Committee. The Licensing Board and WDHSCP are responsible for appointing their own Conveners/Vice Conveners. The Leader of the Council will make all other Convener/Vice Convener appointments. There are no changes to those roles identified at the Statutory Meeting of Council as being designated a ‘Senior Councillor’ role. Training and accreditation may need to take place to properly fill positions on the Licensing Board and to provide resilient and future proofing. Officers should seek to arrange this and seek volunteers from among elected members as soon as possible. Page 8
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WEST DUNBARTONSHIRE COUNCIL At a Hybrid Meeting of West Dunbartonshire Council held in the Civic Space, 16 Church Street, Dumbarton on Wednesday, 30 October 2024 at 4.02 p.m. Present: Provost Karen Murray Conaghan and Councillors Jim Bollan, Ian Dickson, Fiona Hennebry, Gurpreet Singh Johal, Daniel Lennie, David McBride, Jonathan McColl, Michelle McGinty*, June McKay, James McElhill, Lawrence O’Neill, Lauren Oxley, Chris Pollock, Martin Rooney, Gordon Scanlan, Hazel Sorrell, Clare Steel and Sophie Traynor. *Arrived later in the meeting. Attending: Peter Hessett, Chief Executive; Alan Douglas, Chief Officer – Regulatory and Regeneration (Legal Officer); Laurence Slavin, Chief Officer – Resources, and Section 95 Officer; Beth Culshaw, Chief Officer – Health & Social Care Partnership; Peter Barry, Chief Officer – Housing and Employability; Amanda Graham, Chief Officer – Citizen, Culture and Facilities; Gail Macfarlane, Chief Officer – Roads and Neighbourhood; Victoria Rogers, Chief Officer – People and Technology; Carol Alderson, Finance Manager; Margaret-Jane Cardno, Head of Strategy and Transformation; Lauren Crooks, Strategic Communication, Culture and Performance Manager; Michelle Lynn, Assets Co-ordinator; Gillian McNamara, Economic Development Manager; and Carol-Ann Burns, Senior Democratic Services Officer. Apologies: Apologies for absence were intimated on behalf of Councillors Diane Docherty and John Millar. Provost Karen Murray Conaghan in the Chair STATEMENT BY CHAIR Provost Karen Murray Conaghan advised that the meeting was being audio streamed and broadcast live to the internet and would be available for playback. DECLARATIONS OF INTEREST It was noted that there were no declarations of interest in any of the items of business on the agenda. ITEM 5 Page 9
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RECORDING OF VOTES The Council agreed that all votes taken during the meeting would be carried out by roll call vote to ensure an accurate record. *Note: Councillor McGinty entered the meeting at this point. MINUTES OF PREVIOUS MEETINGS The Minutes of Meetings of West Dunbartonshire Council held on 28 August 2024 (Ordinary) and 25 September 2024 (Requisitioned) were submitted and approved as correct records, subject to the undernoted sentence under the heading ‘Councillor Rooney’s Remarks’, in the Minutes of the Ordinary Meeting, being deleted:- ‘Provost Murray Conaghan paid tribute to outgoing Provost Douglas McAllister.’ Provost Murray Conaghan then paid tribute to the outgoing Provost, Douglas McAllister MINUTES OF MEETING OF AUDIT COMMITTEE The Minutes of Meeting of Audit Committee held on 12 June 2024 were submitted and all decisions contained therein were approved. OPEN FORUM The Council noted that no open forum questions had been submitted by members of the public. COMMUNITY ALARM UPGRADE A report was submitted by the Chief Officer – Health & Social Care Partnership seeking approval to progress the Community Alarm Upgrade through a procurement exercise using the Scotland Excel Digital Telecare Goods framework and approval for the award of a contract following the completion of the procurement exercise. After discussion and having heard the Head of Strategy and Transformation in further explanation and in answer to Members’ questions, the Council agreed:- (1) to note the capital budget for the Community Alarm Upgrade agreed at the West Dunbartonshire Council meeting on 9 March 2022 of £924,000 over a period of 10 years; Page 10
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(2) to approve the HSCP to work with Procurement and Legal Services colleagues on a procurement exercise using the Digital Telecare Goods Framework; and (3) to approve the award of a contract, up to the budgeted value of £924,000, following the successful completion of the procurement exercise and identification of a preferred supplier. EXXON INFRASTRUCTURE PROJECT UPDATE A report was submitted by the Chief Officer – Regulatory and Regeneration:- (a) advising of the recent cost pressures that have impacted on the Exxon Infrastructure Project; (b) seeking agreement of a revised scope for the Project and to increase the budget by £0.8m so that the Project’s outcomes can continue to be delivered; and (c) seeking agreement to seek approval from City Region for these changes. After discussion and having heard the Economic Development Manager and the Chief Officer – Resources in further explanation and in answer to Members’ questions, the Council agreed:- (1) to note the inflationary and utility price increases that have impacted on the Project costs since 2023; (2) to note that an additional contribution is expected from Glasgow City Region to offset some of the additional capital costs; (3) to approve the revised scope, at a cost of an additional £0.8m capital funding which has an additional borrowing requirement of £21,000 per annum; (4) to submit a Change Control Request to Glasgow City Region; (5) to proceed with the finalisation and signing of the construction contracts; (6) to note that the marketing of the site will commence; (7) to note the anticipated future income from sales and leasing of the development platforms; (8) to note the potential future availability of the £1m payment from Esso to contribute towards the project; and (9) to approve the continuation of discussions on future funding from Glasgow City Region, and any other external funding source. Page 11
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Councillor Bollan, having failed to find a seconder for a proposed amendment asked for his dissent to be recorded in respect of this item. WEST DUNBARTONSHIRE COUNCIL ANNUAL PERFORMANCE REPORT 2023/24 A report was submitted by the Chief Officer – Citizen, Culture & Facilities presenting West Dunbartonshire Council’s Annual Performance Report 2023/24 and supporting performance information. After discussion and having heard the Chief Officer – Citizen, Culture & Facilities in further explanation and in answer to Members’ questions, the Council agreed:- (1) to note the annual report and performance information provided; and (2) that a report be submitted to a future meeting of Council outlining the issues on performance in relation to:- • the percentage of adults supported at home who agree that they are supported to live as independently as possible (Core Integration Indicator); and • the percentage of Council employees who feel valued in the workplace. FINANCIAL UPDATE A report was submitted by the Chief Officer – Resources providing an update on the financial challenges facing the Council and the estimated 2025/26 to 2029/30 revenue budget gaps. After discussion and having heard the Chief Officer – Resources and the Chief Executive in further explanation and in answer to Members’ questions, the Council agreed to note the updated estimates for the Council’s revenue budget gaps in 2025/26-2029/30, and in particular the updated mid-range 2025/26 budget gap of £10.273m as summarised in paragraph 4.19 of the report. HOUSING REVENUE ACCOUNT BUDGETARY CONTROL REPORT TO 31 AUGUST 2024 (PERIOD 5) A report was submitted by the Chief Officer – Resources advising of the 2024/2025 HRA revenue budget position on 31 August 2024 and the forecast position of the HRA reserves as of 31 March 2025. After discussion and having heard the Chief Officer – Housing and Employability in further explanation and in answer to Members’ questions, the Council agreed:- Page 12
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(1) to note the HRA revenue account was currently forecasting an adverse variance of £2.174m and that, if required, the adverse variance would be offset by using HRA reserves of £0.968m and a General Fund reserve contribution of £1.205m; (2) to note that the HRA would be expected to repay the General Fund reserve contribution of £1.205m from future HRA surpluses; (3) to note that work would continue to identify efficiencies across all areas of the HRA revenue account budget to minimise the adverse variance including reviewing loan charges as highlighted in paragraph 4.4 of this report; and (4) to note that there was limited scope to further reduce spend in 2024/2025 beyond the significant actions set out in the report. HOUSING REVENUE ACCOUNT (HRA) CAPITAL BUDGETARY CONTROL REPORT TO 31 AUGUST 2024 (PERIOD 5) A report was submitted by the Chief Officer – Resources providing an update on the HRA capital programme to 31 August 2024. The Council agreed:- (1) to note the current position of the 2024/2025 HRA capital budget and the HRA capital plan; (2) to note that in-year financial performance was monitored against a 2024/2025 capital expenditure budget of £73.664m and a 2024/2025 capital income budget of £10.003m, and a one-year borrowing requirement of £63.661m; (3) to note that project life performance was monitored against a five-year project life expenditure budget of £319.738m and a project life income budget of £54.577m, and a five-year borrowing requirement of £265.161m; (4) to note that there were six projects reporting off track with an anticipated over / under spend against their 2024/2025 budgets, with a forecast net overspend of £0.334m in 2024/2025; and (5) to note that all projects were currently on track to achieve their planned completion dates and to deliver within their respective five-year project life budgets. GENERAL SERVICES REVENUE BUDGETARY CONTROL REPORT TO 31 AUGUST 2024 (PERIOD 5) A report was submitted by the Chief Officer – Resources advising of the 2024/25 Revenue Budget position at 31 August 2024 and the forecast position of the General Fund Reserve as at 31 March 2025. Page 13
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After discussion and having heard the Chief Officer – Resources in further explanation and in answer to a Member’s question, the Council agreed to note a current projected annual underlying adverse variance on the revenue account of £2.066m (0.71% of total budget). GENERAL SERVICES CAPITAL BUDGETARY CONTROL REPORT 2024/25 TO PERIOD 5 (31 AUGUST 2024) A report was submitted by the Chief Officer – Resources providing an update on the General Services capital financial performance to 31 August 2024. After discussion and having heard the Chief Officer – Resources and the Chief Officer – Roads and Neighbourhood in further explanation to a Member’s question, the Council agreed:- (1) to note the current position of the 2024/25 General Services capital budget; (2) to approve £0.231m of additional capital budget for the Posties Park project; (3) to approve the revised completion dates detailed in appendix 3; and (4) to note an in-year variance of (£0.644m) due to £1.625m reprofiling and £0.231m additional budget. BUDGET CONVERSATION 2025/26 – ENGAGEMENT RESULTS A report was submitted by the Chief Officer – Citizen, Culture & Facilities providing an overview of the key results and feedback from the recent Budget Conversation 2025/26 engagement. After discussion and having heard the Chief Officer – Citizen, Culture & Facilities in further explanation, the Council agreed to notes the results and feedback from early citizen consultation on broad service areas and delivery priorities as part of the 2025/26 budget setting process. NOTICE OF MOTION (a) Motion by Councillor Jim Bollan – IT Procurement With the HP contract entering its final possible extension with the Scottish Government we should be looking at options, therefore Council agrees to explore alternative procurement options/platforms open to the Council when we purchase our IT hardware/software. HP currently provide all the hardware/software for the Israeli Defence Force in Palestine, where to date 40,000 Palestinians have been killed by the IDF. Page 14
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Officers should report back to the Council on the feasibility of this move with any potential costs/savings included. The motion was agreed by the Council. The meeting closed at 5.40 p.m. Page 15
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Regulatory and Regeneration Meeting of West Dunbartonshire Council: 18 December 2024 ___________________________________________________________________ Subject: Results of Local Government By-election held on 28 November 2024 and Vacancies on Committees and Other Bodies. 1. Purpose 1.1 This report provides the Council with information on the result of the Local Government by-election held in the Kilpatrick Ward on 28th November 2024 and requests that the vacancies shown in the appendix to this report be filled. 2. Recommendation 2.1 The Council is asked: (a) to note the result of the by-election held on 28 November 2024 as detailed in paragraph 4 of the report below; and (b) to nominate elected members to serve on the committees and other bodies listed in the appendix to this report. 3. Background 3.1 A by-election was held in Kilpatrick Ward to elect a councillor to replace the vacancy created by the resignation of Councillor Douglas McAllister. 3.2 The resignation resulted in a number of vacancies on council committees and bodies which are shown in the appendix to this report. 4. Main Issues 4.1 The method used to elect a local Councillor was the Single Transferable Vote (Weighted Inclusive Gregory model) which required the electorate to vote by order of preference. The result of the local by-election was as follows: Candidates Total Votes prior to election or exclusion Paula Baker, Scottish Greens 95 Dylan McAllister, Communist Party of Britain 23 Ewan McGinnigle, Scottish Conservative and Unionist 103 Andrew Joseph Muir, Scottish Family Party 25 Kai O’Connor, Scottish Liberal Democrats 66 William Rooney, Scottish Labour Party 814 Marina Scanlan, Scottish National Party (SNP) 564 David Haydn Smith, Reform UK 200 ITEM 7 Page 17
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William Rooney, Scottish Labour Party was elected at Stage 6. 5. People Implications 5.1 There are no implications for employees of the Council. 6. Financial and Procurement Implications 6.1 There are no financial or procurements implications. All elected member posts have been included in the budget for 2024/25 which is showing an underspend due to this and the previous council vacancy. 7. Risk Analysis 7.1 As the by-election has been completed, there is no requirement for a risk analysis. 8. Equalities Impact Assessment (EIA) 8.1 The filling of vacancies on council committees and other bodies will have no impact on any equality group. 9. Consultation 9.1 Officers from finance and legal services have been consulted on the content of this report. 10. Strategic Assessment 10.1 This report has no direct impact on the Council’s strategic priorities. Alan Douglas Chief Officer – Regulatory and Regeneration Date: 29 November 2024 ___________________________________________________________________ Person to Contact: George Hawthorn, Manager of Democratic and Registration Services, Council Offices, Dumbarton. Telephone No. 01389-737204 or e-mail: george.hawthorn@west-dunbarton.gov.uk Background paper: None Appendix: Vacancies on committee and other bodies. Wards Affected: Ward 4 - Kilpatrick Page 18
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VACANCIES ON COMMITTEE AND OTHER BODIES Committee (membership) Convener and Depute Convener Labour SNP Others COUNCIL WORKING GROUPS AND TRUSTS Working Group Labour SNP Others Gaul Trust (2) (Must be Provost and Depute) Hazel Sorrell Provost Karen Murray Conaghan Member/Officer Working Group on Cost of Living Crisis (4) Clare Steel (chair) Hazel Sorrell 2 x Vacant positions Corporate Services Committee (12) Convener - William Rooney Depute Convener – Lawrence O’Neill William Rooney Lawrence O’Neill Fiona Hennebry David McBride Hazel Sorrell Clare Steel Vacant Karen Murray Conaghan Ian Dickson James McElhill Gordon Scanlan Lauren Oxley APPENDIX 1 Page 19
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OUTSIDE BODIES Organisation Meetings P/A Nominations Elected Member Highland Reserve Forces and Cadets Association 1 Currently vacant Dunbritton Housing Association - Management Committee 1 Opposition Member Currently vacant Lomond and Clyde Care and Repair 2 Fiona Hennebry Hazel Sorrell Opposition Member (sub) Opposition Member (sub) Subs currently vacant West Dunbartonshire Citizens Advice Bureau 1 Opposition Member (sub) Sub currently vacant Page 20
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Social Work Officer Council: 18th December 2024 ___________________________________________________________________ Subject: Chief Social Work Officer Annual Report 2023-24 1. Purpose 1.1 The purpose of this report is to provide the Council with the Chief Social Work Officer (CSWO) Annual Report for 2023-24 (Appendix 1) which provides information on the statutory work undertaken on the Council’s behalf, including a summary of governance arrangements, service delivery, resources and workforce. 2. Recommendations 2.1 The Council is asked to approve the content of the Chief Social Work Officer Annual Report 2023-24 and approve its submission to the Office of the Chief Social Work Advisor to the Scottish Government. 3. Background 3.1 The requirement for each Council to have a Chief Social Work Officer was initially set out in section 3 of the Social Work (Scotland) Act 1968 and is also contained within section 45 of the Local Government etc. (Scotland) Act 1994. 3.2 The role of the CSWO is to provide professional guidance, leadership and accountability for the delivery of social work and social care services – both of those provided directly by the local authority social work and care services delegated to the HSCP and also those commissioned or purchased from other providers. 3.3 The CSWO Annual Report has been prepared in line with National Guidance: ‘The Role of the Chief Social Work Officer’ (Scottish Government: 2016). This report also fulfils the statutory requirement for each CSWO to produce an annual report on the activities and performance of social work services within the local area. 3.4 Following approval, the annual report will be provided to the Chief Social Work Advisor to the Scottish Government and will be posted on the Council and HSCP websites. 4. Main Issues 4.1 Each CSWO produces an annual report based on an agreed template by the Office of the Chief Social Work Adviser. This ensures local reporting ITEM 8 Page 21
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arrangements continue whilst having due regard to current pressures being experienced across the sector. The Office of the Chief Social Work Advisor will use completed reports to prepare a national overview later in the year. 4.2 The report, makes significant reference to the work of teams across Children & Families, Adults, Older People and Justice Services. The report gives both performance information and highlights the extensive and varied contribution that social work makes to the lives of our citizens within West Dunbartonshire and the role that social work has to play in the protection of the public. 4.3 Oversight arrangements, public protection activity and performance information is detailed as well as external scrutiny of those regulated services delivering statutory functions during 2023-24. 4.5 The report summarises the development around recruitment and retention in a national context of shortages of social workers and vacancies which have been evident for some time and is most acutely experienced in children’s services. Workforce planning is crucial in supporting the development of local strategies in recruitment and retention of social work staff and the priority that this requires. 4.6 As a profession delivering services which are trauma informed, relationship based to deliver rights-based services to individuals, families and carers towards better outcomes, our skilled workforce is key to any delivery model. The Social Work and care services workforce is diverse and includes social care workers, occupational therapists, residential and day care staff, home care staff, Mental Health Officers; and social workers delivering protection and a range of statutory interventions to ensure the safety and protection of vulnerable Children, Adults and the wider public. Services are delivered by a skilled, dedicated workforce who require support, training and effective leadership to undertake complex and often challenging work. There are identified gaps in learning and development opportunities for social work staff and in 2024/25 we will see this improve with the appointments of two learning and development officers. 4.8 The clarity of objective of service ambition to deliver earliest and preventative services to enable children and adults to live their best lives in community settings where possible, is clear across all delivery areas. Challenges to this approach are perhaps evident in both children and adult services with ensuring preventative services are both locally accessible and effective in meeting need at earliest stages. Children’s service 5 year strategic plan approved by the Integrated Joint Board set out the vision and directions for children’s services to ensure West Dunbartonshire are Keeping the Promise, by supporting children in local communities and family settings where possible. The national drivers to ensure increased numbers of adults involved with Criminal Justice services are effectively supported and risks to the public are manged within the community although is being driven at a time when resourcing of Justice services to deliver community based options is Page 22
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increasingly stretched both in terms of local and national settlements. 5. People Implications 5.1 The CSWO Annual Report highlights both ongoing challenges and developments in workforce planning and recognises the activity taking place to support staff wellbeing and ensure successful recruitment and retention. 5.2 The report highlights developments of key posts across social work services to support an on-going improvement agenda and identified priorities for the delivery of social work services. 6. Financial and Procurement Implications 6.1 There are no financial or procurement implications arising from the CSWO annual report, however the report highlights the financial implications upon the HSCP budget and the importance of spend that is compliant with procurement arrangements. 6.2 Budgetary oversight of services provided by the HSCP continues to be provided by the HSCP Board. Budget pressures in social work and social care are evident and the CSWO now attends the vacancy panel for all relevant posts to ensure effective representation of the statutory functions and risks are considered when decision on posts are made aligned to budget. 7. Risk Analysis 7.1 Provision of statutory social work services requires appropriately qualified and skilled staff; analysis of activity and future demand is intended to inform future service planning to continue to meet statutory duties. HSCP Risk registers reflect protection functions and impact of vacancies and current gap in some aspects in learning and development for staff. 8. Equalities Impact Assessment (EIA) 8.1 There is no requirement for an equalities impact assessment and this report does not recommend a change to existing policy, function or strategy. 9. Environmental Sustainability 9.1 There are no implications for environmental sustainability. 10. Consultation 10.1 Contributions to the CSWO Annual Report has been informed by managers and staff delivering the statutory functions contained within this report. 11. Strategic Assessment Page 23
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11.1 Analysis of activity, resources and performance within the CSWO Annual Report provide assurance that the planning and delivery of social work services in West Dunbartonshire continue to reflect statutory requirements. 11.2 The report also demonstrates how services support the Council’s strategic priorities and the HSCP Strategic Plan, working with local residents and communities to improve lives. Lesley James Head of Children’s Health, Care and Justice Chief Social Work Officer 2nd December 2024 Person to Contact: Lesley James, Head of Children’s Health, Care and Justice Services, Chief Social Work Officer Lesley.james@west-dunbarton.gov.uk Appendices: Chief Social Work Officer Annual Report 2023-24 Background Papers: None Wards Affected: All Page 24
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West Dunbartonshire Chief Social Work Officer Annual Report 1 April 2023 – 31 March 2024 APPENDIX 1 Page 25
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P a g e 2 | 70 Contents 1. Introduction ................................................................................................................4 2. Governance, Accountability and Statutory Functions...........................................6 2.1 Role of the Chief Social Work Officer (CSWO).....................................................6 2.2 Public Protection....................................................................................................7 2.3 Quality Assurance..................................................................................................8 2.4 Clinical and Care Governance...............................................................................9 2.5 Management and Performance Information.........................................................9 2.6 Risk Oversight......................................................................................................10 2.7 Population Profile.................................................................................................11 2.8 Specific Challenges For Our Communities 2023/24.........................................11 2.9 West Dunbartonshire HSCP Structure...............................................................14 3. Service Quality and Performance...........................................................................15 3.1 Key Achievements 2023/24 .................................................................................15 3.2 Children Young People and Their Families.......................................................17 3.3 Scottish Child Interview Model...........................................................................20 3.4 Permanence Team................................................................................................20 3.5 My Assessment My Plan......................................................................................20 3.6 Family Time...........................................................................................................21 3.7 Request for Assistance .......................................................................................21 3.8 Strengthening Scrutiny and the Voice of Children and Young People...........22 3.9 Brothers and Sisters............................................................................................22 3.10 Advocacy ..............................................................................................................23 3.11 Family Support for Children and Young People and Families.........................24 3.12 Unaccompanied Asylum Seeking Children (UASC)..........................................25 3.13 Self-Evaluation Activity .......................................................................................26 3.14 Child Protection and Social Work.......................................................................27 3.15 West Dunbartonshire Child Protection Committee...........................................28 3.16 Child Protection Activity – What Our Data Tells Us..........................................30 3.17 Child Protection Committee Achievements in 2023/24....................................33 3.18 West Dunbartonshire’s Children’s Houses .......................................................36 3.19 Adult Services ......................................................................................................38 3.20 My Life Assessment Evaluation..........................................................................38 3.21 Just Enough Support...........................................................................................40 3.22 SDS Staff Training and Development.................................................................40 3.23 Short Break Pilot..................................................................................................41 3.24 Support in the Right Direction – Inspiring Scotland.........................................41 3.25 SDS Circle and Providers Network.....................................................................41 3.26 Adult Support and Protection.............................................................................42 Page 26
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P a g e 3 | 70 3.27 Overview of Adult Protection Activity 2023/24..................................................43 3.28 Multi-Agency Forum (MAF) .................................................................................45 3.29 Mental Health Officer Service (MHO)..................................................................46 3.30 Adults with Incapacity (AWI) / Guardianship.....................................................46 3.31 MHO Data Oversight ............................................................................................47 3.32 Support to Adults Leaving Hospital...................................................................48 3.33 Community Learning Disability Services...........................................................49 3.34 Housing Support Service for Adults with Learning Disabilities......................50 3.35 Alcohol and Drug Partnership (ADP) .................................................................51 3.36 Official Waiting Times .........................................................................................52 3.37 External Scrutiny: West Dunbartonshire Care Homes....................................52 3.38 Justice Social Work Services..............................................................................54 3.39 MARAC (Multi-Agency Risk Assessment Conference) ....................................56 3.40 Community Justice..............................................................................................57 4. Resources.................................................................................................................60 5. Workforce and Service Impact................................................................................64 5.1 Workforce Planning .............................................................................................64 5.2 West Dunbartonshire HSCP Approach to Staff Health and Wellbeing...........67 5.3 Workforce Development, Learning and Collaboration.....................................68 Page 27
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P a g e 4 | 70 1. Introduction It gives me great pleasure to present this annual report 2023/2024 as Chief Social Work Officer for West Dunbartonshire. The report presents an overview of social work and social care services within West Dunbartonshire and the statutory functions delivered during that period. The report aims to capture the good practice and improvement activity taken place across arrange of services as well as highlight some of the challenges for social work and social care services as well as highlighting the many achievements over the past year. The commitment and enthusiasm of our social work professionals and social work and care workforce in providing services to many of our most vulnerable children, young people and adults in our communities is clear, however at a time where budgetary pressures and workforce challenges are at arguably an unprecedented point. The social work workforce and required leadership to sustain, deliver and improve our vital social work and care services to our citizens whose rights we uphold is challenged in many directions. The workforce and resources section highlights those continued challenges and the impact both in terms of capacity within the social work and care workforce. We need to ensure that a strong ‘social work voice’ is heard with the rights of those we serve being at the forefront, and the impact of financial decision making and recruitment challenges on needs and risks of service users visible and transparent. In West Dunbartonshire our social work and care services are diverse, and this report does not attempt to cover every aspect. Our structural arrangements are complex as is the variability of both integration and professional oversight arrangements. This report summarises practice activity, improvement and the work that is taken place to strengthen service user voices, and where appropriate service redesign. Services need to keep evolving and changing to best respond to the needs of our communities and we need to be outward facing in all that we do. The challenging economic policy and societal pressures are directly related to increasing demand for social work and social care services and the requirement for enhanced collaboration to meet some of the current challenges across the public sector is vital. Our communities, require solution focused, collaborative leaders to address the impact and growing need that is evident for those individuals and communities who use our social work and care services regardless of structural arrangements and ability to plan on a longer-term basis with investment in preventative approaches. This year has again been challenging on many levels and the continued uncertainty of the future focused policy agenda of social work and care, its value and that of its workforce requires some certainty. The nature of social work is often overlooked or misunderstood in the vital role that it plays in supporting children and adults to ensure their voice and rights are upheld and that individuals lived experience is truly understood. We continue to strive to build services that are truly co-designed with the voice of those we serve at the heart of what services that make real positive difference looks like. We need to continue our development of services moving away from the doing to and understand and consult on what makes a difference for people. We need to invest in our services in relation to being able to measure and evaluate the impact at a time of increased budgetary constraints. We need to hold a position of longer-term objectives to disrupt and Page 28
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P a g e 5 | 70 make meaningful change in those systems that impact on the lives of those we serve. In my report I have referred to social work and social care separately as they are two very different activities and often misunderstood. Care is the support and help you will receive to meet your care needs and ‘social work is a practice-based discipline that promotes social change and development, social cohesion, and the empowerment and liberation of people ‘Global definition of Social Work 2014). Often the two are conflated and we need to have a shared understanding of what the role of social work and social care are to enable policy and decision makers to understand the requirements and importance of the separate roles and within that our statutory responsibilities. Despite the increasing challenges the uncertainly of a National Care Service and National Social Work Agency, our workforce are our greatest asset and the commitment and dedication of our social work and social care workforce cannot be overstated. Put simply due to their commitment, adults and children at times of crisis, failing health, family breakdown, or where there is a risk of harm, are on a daily basis enabling and supporting people to live safely with care dignity and respect. Lesley James Head of Children’s Health, Care and Justice Chief Social Work Officer 30 October 2024 Page 29
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P a g e 6 | 70 2. Governance, Accountability and Statutory Functions 2.1 Role of the Chief Social Work Officer (CSWO) 2.1.1 There is a statutory requirement for all Local Authorities to appoint a professionally qualified Chief Social Work Officer (CSWO) who is registered with the Scottish Social Service Council (SSSC). This regulation is set out in Section 45 of the Local Government (Scotland) Act 1994. The overall role of the CSWO is focused on the provision of effective professional advice and guidance to Local Authorities, Integration Joint Boards, Elected Members and Officers in the provision of Social Work services whether directly provided or commissioned. 2.1.2 The CSWO has responsibility for overall performance improvement and the identification and management of corporate risk in so far as these relate to Social Work services. The CSWO provides professional governance, leadership and accountability for the delivery of Social Work and Social Care services whether directly provided or delivered by the private or voluntary sector on behalf of the Local Authority. 2.1.3 The role assists the Council and the Integration Joint Board to understand the responsibilities and the complexities involved in the delivery of Social Work services. The CSWO is required to ensure that all social services workers meet the requirements of the SSSC Codes of Practice. 2.1.4 The role of the CSWO is to provide professional governance, leadership and accountability for the delivery of Social Work and Social Care services, not only those provided directly by the HSCP but also those commissioned or purchased from the voluntary and private sector. Social Work services are delivered within a framework of statutory duties and powers and are required to meet national standards and provide best value. 2.1.5 West Dunbartonshire Council has resolved that the Chief Social Work Officer role is held by the Head of Children’s Health, Care and Justice reporting to both the Chief Officer of the HSCP and the Chief Executive. 2.1.6 The role of the CSWO assists the local authority and its partners in understanding the complexities and cross-cutting nature of social work service delivery. Including issues such as corporate parenting, child protection, adult protection and the management of high-risk offenders, but also the key role social work plays in contributing to the achievement of a wide range of national and local outcomes. 2.1.7 In West Dunbartonshire, NHS Greater Glasgow and Clyde and West Dunbartonshire Council have gone beyond the statutory minimum requirements when determining which functions to delegate to the Integration Joint Board. As such Children’s Services Social Work and Adult Services Social Work including Criminal Justice are all part of the West Dunbartonshire Health and Social Care Partnership and are overseen by the Integration Joint Board who must ensure that delegated functions are carried out effectively. 2.1.8 The CSWO plays a fundamental role in the context of Health and Social Care Integration, and as required, is a non-voting member of the Integration Joint Board. The professional leadership provided by the CSWO in these integrated arrangements is central to the effectiveness of improving the quality of care within West Dunbartonshire. Page 30
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P a g e 7 | 70 2.1.9 The CSWO has a defined role in professional and clinical and care leadership and has a key role to play in Clinical and Care Governance systems which support the work of the Integration Joint Board. This is set out in the Integration Scheme. 2.1.10 The integration of health and social care highlights the complexity of social work governance arrangements, but regardless of integration, West Dunbartonshire Council retain statutory responsibilities in relation to social work services. Elected members have important leadership and scrutiny roles and this annual report seeks to support Elected Members to discharge these functions. It is essential that Elected Members assure themselves that service quality is maintained and that risks are managed effectively. 2.1.11 Work has progressed in this area with the CSWO now chairing the Community Planning Partnership Nurture Delivery and Improvement Group which oversees the implementation of the Integrated Joint Children’s Services Plan. 2.1.12 The Community Justice Act 2016 adds to the complexity of governance arrangements for Justice social work and partner agencies. The Community Justice Act 2016 established a new model for delivering community justice service, through the establishment of Community Justice Partnerships. The establishment of the West Dunbartonshire Community Justice Partnership in late 2023 seeks to build on these improvements. The Partnership is responsible for local planning and monitoring of community justice services along with their partners, including West Dunbartonshire Council and NHS Greater Glasgow and Clyde. The partners have a duty to collaborate in preparing a strategic plan and are accountable for delivering it. Although in its infancy this partnership is demonstrating promise. It should be recognised that this is due in large part to the appointment of a dynamic Community Justice Coordinator, highlighting the need for governance structures to be adequately supported and effectively resourced. 2.1.13 The synopsis of the governance structures outlined above exemplifies how the role of the CSWO has become more complex and challenging in recent years. Going forward there is further uncertainty surrounding social work governance arrangements as we await greater clarity in respect of the National Care Service (Scotland) Bill. This Bill, currently at stage two, establishes the National Care Service and allows Scottish Ministers to transfer social care responsibilities from local authorities to a new national service. This could include adult and children’s services, as well as areas such as justice social work and has implications for the existing regulatory bodies. The important piece of legislation remains largely silent on public protection. 2.2 Public Protection 2.2.1 Within West Dunbartonshire the term public protection is used to encompass the many different strategic approaches and responses to keeping children and adults safe in our communities, this includes Child Protection, Adult Support and Protection, Multi-Agency Public Protection Arrangements (MAPPA), Alcohol and Drug Partnership, Violence Against Women and Girls and Suicide Prevention. 2.2.2 The West Dunbartonshire Public Protection Chief Officers Group (PPCOG) has been established to reduce the harm to children and adults at risk. Effective public protection requires agencies to work together at both a strategic and operational level. It is critical that this work is overseen by Chief Officers to ensure that barriers to joint working are addressed, and solutions are found. Page 31
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P a g e 8 | 70 2.2.3 Through the PPCOG actions have been taken to better align governance structures and system oversight as well as the collective approaches to risk management and assurance, this focus has been strengthened however, work is ongoing to fully embed a culture of quality assurance and risk management. 2.2.4 West Dunbartonshire continues to engage a single Independent Chair for its Adult and Child Protection Committees. To further embed a culture of quality improvement and promote a culture that supports learning the PPCOG has recently engaged an independent lead to conduct learning reviews. These learning reviews present an opportunity for in-depth analysis and critical reflection to gain greater understanding of inevitably complex situations and to develop strategies to support practice and improve systems across agencies. 2.2.5 West Dunbartonshire is part of North Strathclyde Multi Agency Public Protection Arrangements (MAPPA), along with five other local authority areas, supported by a dedicated MAPPA co-ordinator who provides professional advice and guidance. The MAPPA Unit team also support responsible authorities to fulfil their statutory duties around information sharing and joint working to assess and manage the risk of individuals managed within MAPPA. The Chief Social Work Officer continues to attend the North Strategic Oversight Group and the Justice Service Manager is a member of the Management Oversight Group, where both groups include responsible authorities (Local Authorities, Police Scotland, Scottish Prison Service and Health). 2.2.6 The MAPPA Unit’s performance report noted 100% compliance, with key performance indicators for cases managed at level two and three (multi-agency risk management) being reviewed no less than every 12 weeks. Justice Services were fully compliant with all national key performance indicators, where all MAPPA meetings were held, and notifications submitted to the MAPPA Unit within fixed timescales: no exceptions were reported during 2023/24. 2.3 Quality Assurance 2.3.1 It is important that a culture of continuous improvement is embedded across all aspects of social work. 2.3.2 Progress has been made in the year to 31 March 2024 in relation to the monitoring of service quality and performance across all services. This includes a range of performance data which is reported at several levels: operational management teams, the Clinical and Care Governance Group, the Health and Social Care Partnership Senior Management Team, and the Health and Social Care Partnership Board Audit and Performance Committee. 2.3.3 This continuous learning includes utilising complaint data with teams understanding common themes in relation to complainants’ views on the quality-of-service provision, failures in service provision, communication, and access to services. 2.3.4 Quality assurance and learning activity also includes learning from case reviews whether they be service specific, or Learning Reviews undertaken in collaboration with our partners. In 2022 West Dunbartonshire Adult Protection Committee commissioned and concluded in 2023 one themed learning review with a further learning review commissioned. A Learning Review was also commissioned by the Child Protection Committee. Page 32
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P a g e 9 | 70 2.3.5 West Dunbartonshire HSCP have implemented a Programme Management Office (PMO) approach to bring structure and governance to change projects across the partnership. The PMO Board meets monthly to review updates from individual projects and provide guidance and direction where required. The PMO board will agree on which projects should be brought forward for updates and define timescales for reporting to be submitted. 2.3.6 Active change projects which are driving improvements in relation to social work and care services include a redesign of Home Care Services in West Dunbartonshire which has yet to be completed and is currently engaging staff and Trade union colleagues in the design process. A self-directed support project has been actively seeking to further embed the approach in service delivery with principles of choice, control and good conversations aligned to outcomes at the heart of services. In children’s services a re-design of the current duty system has been in development since January 2023 to ensure improved response times and a dedicated focus on new referrals of concerns aligned to 2021 Child Protection Guidance and local implementation of the Scottish Child Interview Model in partnership with Police Scotland Colleagues in May 2023. 2.3.7 The launch and implementation of a My assessment and Plan tool in children’s services was implemented between March and June 2023 and the evaluation of the implementation reports directly to the PMO. 2.4 Clinical and Care Governance 2.4.1 West Dunbartonshire Health and Social Care Partnership Clinical and Care Governance Group plays an important part in the arrangements for scrutiny of care quality, within the services which the Health and Social Care Partnership provides, and those that it commissions. During 2023 the approach to clinical and care governance continued to evolve. Scrutiny and assurance were strengthened with the wider inclusion of social work and social care services within Clinical and Care Governance arrangements and a social work subgroup developed and Terms of Reference updated to include oversight of social work and social care quality has been enhanced and fully incorporated into clinical and care governance activity. Social Care and Social Work subgroup led by CSWO has been established and in scope are all commissioned services providing social care and support, complaints, notifiable incidents, regulated inspection and improvement plans, service data trends with specific focus on the statutory social work data which is developing to ensure managers and leaders are equipped to understand service data to ensure targeted and focused improvement. 2.5 Management and Performance Information 2.5.1 Development of management and performance information for statutory social work and social care services has been a key priority over the reporting period. A range of information reports to meet reporting requirements has progressed, with several automated reports introduced that are distributed to teams and services on a regular basis. This type of automated reporting reduces the amount of manual effort required to run reports and ensures information is provided in a consistent way. 2.5.2 An HSCP Performance Dashboard has been developed to provide SMT with a dashboard view across all teams and services showing trend information in comparison to previous reporting weeks as well as utilising graphs to show wider trends. The dashboard also includes information relating to areas such as HR and Complaints and will continue to be developed over time to add additional information. Page 33
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P a g e 10 | 70 2.6 Risk Oversight 2.6.1 Risk is a difficult and complex notion that can create understandable anxiety for many. Although the management of risk in an integral element of the social work function the governance of risk was raised in both the Joint Inspection of Adult Support and Protection (July 2021) and the Joint Inspection of Services for Children and Young People at Risk of Harm in West Dunbartonshire (May 2022) as an area which requires improvement. 2.6.2 The Integration Joint Boards Financial Regulations reflect the recommendations of the national Integrated Resources Advisory Group which confirms the responsibility of the Chief Officer to develop a West Dunbartonshire Health and Social are Partnership Risk Management policy and strategy. The current Risk Management Policy and Strategy was approved by the Integration Joint Board on the 20 September 2021. This work was further enhanced in March 2024 by the approval of a supporting risk appetite statement. 2.6.3 The implementation of the Risk Management Policy is relatively mature and strategically has gone some way to promote an environment that is risk ‘aware’ and strives to place risk management information at the heart of key strategic decisions. This means that the Integration Joint Board can take an effective approach to managing risk in a way that both address significant challenges and enables positive outcomes. 2.6.4 The policy and supporting strategy provide the framework for the implementation and maintenance of risk registers as a means of collating risk information in a consistent format allowing comparison of risk evaluations, informed decision-making in relation to prioritising resources and ease of access to information for risk reporting. The Integration Joint Board receives a report on strategic risks and key operational risks on a six-monthly basis. 2.6.5 This governance structure provides the necessary assurance that the Health and Social Care Partnership has put in place the structures, behaviours and processes necessary for setting risk appetite, for delegating the identification of both significant events and trends, for assessment and mitigation of risk, and for putting in place effective controls and assurances which are properly owned and actioned. 2.6.6 Prior to this the Strategic Risk Register is reviewed by the Health and Social Care Partnership Senior Management team. This includes a review of operational risks which may impact across multiple service areas or, because of interdependencies, require more strategic leadership. The Senior Management Team can propose risks of this nature for escalation to ‘strategic risk’ status for the Integration Joint Board. 2.6.7 The PPCOG meet quarterly, and one part of this process is to review the key risks which the Chief Officers group should be aware of, need to take action on and/or provide strategic direction on next steps. 2.6.8 In August 2022 the PPCOG approved a risk management process the objective being to ensure all stakeholders understood how the risk register for PPCOG was collated and updated setting the context for risk management within the PPCOG. This has been further developed in 2023 into 2024 with the development of risk registers form the reporting strategic groups. Page 34
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P a g e 11 | 70 2.6.9 In 2023 presentation regarding oversight of child and adult protection function were delivered by the Scottish Government National Teams, as well as external development sessions which focused on multi-agency oversight of data, development of risk register reporting by exception and oversight aligned to Protecting Children and young People: Child protection Committee and Chief Officers Responsibilities (2019). 2.6.10 Strengthening of PPCOG’s oversight of Learning Reviews has taken place and input for both Lead officers for committee and updates on Learning review progress has been developed and quarterly updated of progress are provided. 2.7 Population Profile 2.7.1 West Dunbartonshire has an estimated population of 88,750 people according to National Records of Scotland’s latest mid-year population estimates 2023. This is a slight increase of 480 (0.5%) on the 2022 estimates which were the first to be based on Scotland’s Census 2022. The population of West Dunbartonshire accounts for 1.6% of the total population of Scotland. 2.7.2 The number of births in West Dunbartonshire in 2023 was 783 which was 8% lower than in 2022. Births in Scotland saw a decrease of 2.2% across the same time period. In West Dunbartonshire, 16.9% of the population are aged 015, slightly higher than Scotland (16.3%) and 9.6% of the population are aged 16-24, which is smaller than Scotland (10.7%). Those aged 25-44 account for 24.8% while those in the 45-64 age band represent 28.2% with a population of 25,066. 2.7.3 People aged 65 and over make up 20.5% of West Dunbartonshire’s population, which is similar to the Scottish population (20.3%). Currently West Dunbartonshire ranks the third most deprived area in Scotland (equal with North Ayrshire) with 40% of data zones being among the 20% most deprived areas of Scotland. Only Inverclyde (45%) and Glasgow City (44%) have higher deprivation (Scottish Government, 20201). 2.8 Specific Challenges For Our Communities 2023/24 2.8.1 West Dunbartonshire has both a high percentage of lone parent families and lone parents who are not employment; 50% of lone parents in West Dunbartonshire are not in employment, the third highest of all local authorities in Scotland. Children in lone parent families and non-working lone parent families are more likely to have lower mental wellbeing than those who are not in those categories. West Dunbartonshire is likely to have a high percentage of children, young people and parents who have a number of Adverse Childhood Experiences (ACES). Parental mental health is also the second highest reason for parents not being in employment. 2.8.2 Life expectancy is lower than the Scottish average with those living in the most deprived communities spending, on average 24 years fewer in good health than those living in the least deprived areas. With those in the most deprived areas also dying younger, they spend more than one third of their lives in poor health. 2.8.3 West Dunbartonshire has continued high rate of child poverty across the whole area (26%) with 22.6% of children living in low income families and there is a high eligibility for and uptake of free school meals (27.4% for primary 4-7 pupils) although the registration rate for secondary school pupils is on a downward trend. Almost half of the primary schools in West Dunbartonshire have rates of over 30% of pupils in Primary 4-7 registered for free school meals. Page 35
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P a g e 12 | 70 2.8.4 The total number of households in West Dunbartonshire is projected to decline between 2023 and 2043, with 42% of those named as responsible for the accommodation being over the age of 60. By 2028 it is projected that 1 in 2.4 households will have a single adult with the number of single adult dwellings increasing since 2012 to an average of 41.1%. Since 2016 45.4% of children are living in homes that failed the Scottish Housing Quality Standard (SHQS). 2.8.5 West Dunbartonshire has a rate of 23.7 per 1,000 school pupils assessed and/or declared as having a disability compared to the Scottish rate of 24.3 per 1,000 pupils; 26% of residents report having a lifelong time limiting condition (Scotland is 24%). Women are more likely to be disabled than men, with disabled women at greater risk of violence and abuse compared with both non-disabled people and disabled men; 458 Individuals with a learning disability are known to West Dunbartonshire HSCP learning disability services, learning disability rates are above the Scottish average and these individuals have some of the poorest health outcomes of any group in Scotland. 2.8.6 Domestic Abuse rates in West Dunbartonshire are the second highest in Scotland, at 168 incidents per 10,000 population reported to Police Scotland. Children are adversely affected by domestic abuse with the average number of people involved per incident remaining at four (victim, perpetrator and two children). This is the main reason for concern for children identified at case conferences for the child protection register and reason for referral to Scottish Children’s Reporter Administration (SCRA). 2.8.7 West Dunbartonshire has 14.7% of S4 pupils reported drinking alcohol at least once a week. This is higher than Scotland at 11.5% and 4.1% of S4 pupil reporting using drugs monthly. The rate of drug related hospital stays in 11–25-year-olds is increasing and is higher than the Scottish average. West Dunbartonshire also has 543 young people in prison per 100,000. This is the highest figure of any local authority in Scotland. 2.8.8 The health and wellbeing of our youngest babies and children is also a concern within West Dunbartonshire. Over 25% of all local referrals being made to SCRA are for under 5’s. West Dunbartonshire has the highest percentage of children with at least one developmental concern being identified at the 27–30-month health visitor assessment. In addition, 13% of the children accessing funded early learning and childcare have social, emotional and behavioural difficulty compared to the Scottish average of 5%. 2.8.9 While West Dunbartonshire's population saw a slight increase in 2023, the overall trend is a declining population with the proportion of older people within the authority steadily increasing. From 2018-based population estimates it is predicted that the pensionable age and over population will increase by 15.2% by 2033 and the over 75 population will increase by 34%. People are living longer with more complex health needs and therefore may require more input from health and social care services. 2.8.10 Record number of West Dunbartonshire residents having their hospital discharge delayed. 2.8.11 Emergency admissions and Accident and Emergency attendances continuing to rise towards pre-pandemic levels. A and E attendances were 7% higher than in 2022/23 and we had the 7th highest rate of emergent hospital admissions and 3rd highest rate of emergency bed usage in Scotland. Page 36
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P a g e 13 | 70 2.8.12 Recruitment and retention across almost all frontline services and the impact that this has had on waiting times and service delivery. 2.8.13 The annual funding model restricts our ability to plan and sustain services beyond the current financial year, including services commissioned from the Third Sector. 2.8.14 High numbers of domestic abuse offending within West Dunbartonshire. Increasing number of referrals from the Crown Office and Prosecution Service. 2.8.15 A further decline in child development in West Dunbartonshire, with the lowest level in Scotland of children with no developmental concerns at their 27-30 months review and a fall from 73.95%. Table 1 Page 37
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2.9 West Dunbartonshire HSCP Structure Page 38
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P a g e 15 | 70 3. Service Quality and Performance 3.0.1 A single delivery plan sits under the strategic plan with priorities for implementation and improvement activity aligned to the strategic priorities. 3.1 Key Achievements 2023/24 3.1.1 During 2023/24 social work services as part of the wider HSCP against key strategic priorities, made significant progress against the key strategic priorities outlined in our Strategic Plan 2023/2024 Improving Lives Together; caring communities, safe and thriving communities, equal communities and healthy communities 3.1.2 Caring Communities Page 39
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P a g e 16 | 70 3.1.3 Safe and Thriving Communities 3.1.4 Equal Communities Page 40
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P a g e 17 | 70 3.1.5 Healthy Communities 3.2 Children Young People and Their Families 3.2.1 Table 1 shows the steady increase of looked after children and young people in West Dunbartonshire over a five year period. Table 1 303.00 51.00 73.00 31.006.0019.00 278.00 55.00 59.00 31.004.0019.00 269.00 55.00 56.00 29.003.0019.00 265.00 53.00 56.00 29.007.0019.00 261.00 56.00 55.00 23.006.0019.00 2023/24 2022/23 2021/22 2020/21 2019/20 0 50 100 150 200 250 300 350 400 450 500 Kinship WDC Fostering External Fostering Residential Schools External Accommodation WDC Children's homes Number of children - 2019/20 to 2023/24 3.2.2 Our balance of care profile tells us there is a declining number of children being looked after at home. In order to keep The Promise and shift the balance of care, we need to consider what would it take? To keep children safely looked after at home with birth families, and develop the resources required to meet the needs of the families we serve. Page 41
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P a g e 18 | 70 3.2.3 Significant development work has taken place within children and families services aligned to wider Children Services Planning to develop a 5-year strategy underpinned by a 5-year medium term financial plan. 3.2.4 A programme board was initiated in 2023 and six project areas identified to progress our ambitions in continuing to implement and deliver The Promise. Improving the Lives of with Children and young People in West Dunbartonshire, What Would It Take? 2024 – 2029. This programme known locally as What Would it Take? Asks the question of practitioner and leaders at all levels to truly understand what supports families with a principle that families are the promote creative innovative practice in partnership with children and young people with families being the experts in understand the challenges they face. The Strategy is underpinned by investment in services to reverse the need for care and enable children and young people to remain in their communities with family or kin focus on and building strengths with families to keep children and young people safe and supported. 3.2.5 The strategy presents the road map to delivering sustainable services within Children and Families. The ambition is to shift the Balance of Care ensuring children and young people have the support, where possible, remain at home with family or in a community setting. 3.2.6 The What Would it Take? Programme is a five-year plan which recognises the importance of using The Scottish Approach to Service Design to evaluate and improve Children and Families services. The Scottish Approach to Service Design is informed by data and evidence and encourages service change to be deliberate and purposeful, as opposed to organic and reactive. It also emphasises service users’ voices, both providers and recipients of a services at the centre of policy and service design. 3.2.7 This strategic approach to engage both our workforce and children and families is supported by the development of a ‘Plan on a Page’ as a tool to ensure the messaging and approach of the ambitions of the strategy and understood and embedded in service provision across children and families. Consultation and feedback with families and our work force has conclude supported by our Promise lead and the importance of language and communication in our approach has been enhanced and developed by the voices of service users and practitioners. 3.2.8 The What Would It Take? programme deliver the following project aims: Safely shift the ‘balance of care,’ reducing the number of children looked after away from home. Strengthening the contribution of universal services, for example health and education. Outcomes are improved for children and young people by increasing; community- based supports when children and their families need them. The need for the workforce to align to the service demand. Implement the changes within the Nurtured Delivery Implementation Group. Implement the Care inspectorates’ recommendations. Projects are led by data including the Children’s Strategic Needs Assessment. Services are sustainable and delivered within the available budget. Across health visiting, school, nursing and social work services ensure early help is delivered locally, providing the right help in the right place to meet the identified needs of children and young people. We will collate and measure any gaps in service provision and annually report on identified gaps in service provision through our Area Resource Group. Page 42
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P a g e 19 | 70 Ensure all children have the best start in life. Children of all ages will thrive through loving and consistent living arrangements supported by access to early learning, family support and childcare to make sure we get it right at infancy through multi- agency planning. Implement the Early Child’s Development Transformational Change Programme. 3.2.9 A family first approach will ensure children and young people: Remain at home or with birth family where possible. have a rights based approach in line with United nations Convention on the rights of the Child; have the right to family life by valuing relationships with siblings, the wider family and community; and For a small minority of children who cannot remain with their family due to the risk of harm, support will be local and we will endeavour to keep children within 15 miles of their home community. We will minimise children’s exposure to harm with fully embedded Getting it Right for Every Child (GIRFEC) principles and approaches supported with robust assessment and planning including chronologies to support analysis. We will strive to Keep families together and develop services to ensure the ‘scaffolding’ of support helps to enable families facing complex and enduring challenges is available through use of reserves and redesign of our service provision and commissioning’. We will ensure services are relational and not transactional. Support employees by ensuring training is in place to show what a ‘good conversations’ is with a focus on outcomes and SMART care plans ensuring that this becomes part of employee’s core practice; and Through the use of data, consultation and evaluation we will develop, improve and evaluate our services, with the voice of those who use our services having a meaningful part to play in our community. Page 43
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P a g e 20 | 70 3.3 Scottish Child Interview Model 3.3.1 This was the first year of using the Scottish Child Interview Model for joint investigative interviews (JII) and became operational in November 2023. This has been a year of learning and we have met routinely with the National JII Team, Police Scotland and our colleagues in Argyll and Bute to review our performance and develop an action log to ensure continuous improvement of our practice. Interviewer and briefing manager capacity has meant that we have not been able to offer the Scottish Model of interview to all children. 3.3.2 Between November 2023 and March 2024, 54 children were jointly interviewed by social work and Police Scotland with 41% of interviews being conducted under the new model. There has been a commitment by both West Dunbartonshire HSCP and Police Scotland to increase the number of trained interviewers and briefing manager. There is good evidence that the fidelity of the model is being upheld and de-briefing and evaluation of interviews are used to reflect and develop practice. 3.3.3 The feedback from many children and their families is they feel calm and have been able to engage in the process and give an account. This has resulted in protective and supportive action for the child including the crimes being detected and reported, with physical abuse and sexual abuse or exploitation being the highest two reported concerns. 3.4 Permanence Team 3.4.1 The development and implementation of a permanence team to progress all children’s plan was implemented in early 2024. Due to a number a number of children whose permanence plans were not being able to be prioritised due to continued vacancies within locality teams and a back log following pandemic period. 3.4.2 Four Social Worker posts were configured using existing resource in locality teams to provide a dedicated team of qualified staff in this area of work. A clear pathway has been developed within the service for children and young people for whom it has been decided will require to be cared for permanently away from home to Permanence Team. This dedicated resource means that children and young people’s plans will be progressed timeously affording them the care, predictability and security required for them to grow and develop. The initial focus for this team of staff has been to prioritise the progression of plans for children and young people where drift has existed for some time as well as those children and young people who have more recently seen their plans progress to the need for permanence planning with early indicators showing this to be successful. 3.5 My Assessment My Plan 3.5.1 There has been comprehensive redesign the assessment framework to address the issues identified in Joint Inspection of Services. This was undertaken in collaboration with the workforce as an improvement project and went live in March 2023. The new format is child centred and begins with a summary of the assessment written directly to the child. It also encourages analysis of risks and protective factors. There are also quality assurance processes in place and a monitoring of completion to timescales to prevent drift and delay in planning for children. 3.5.2 There has been an evaluation with: 69% of respondents agreeing the new assessment reduced bureaucracy. Page 44
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P a g e 21 | 70 100% of respondents agreed or strongly agreed it aligned with the GIRFEC national practice model. 73% of respondents agreed or strongly agreed that it was more accessible for children and their families. 82% of respondents agreed or strongly agreed that the assessment framework has improved the quality of assessment and plans. 3.6 Family Time 3.6.1 We have listened to the children and families we support and there has been investment in creating welcoming spaces for family time, within local communities and out with social work offices. Two family time spaces have been developed over the last year to a high standard within our community in Dumbarton and Alexandria to support local accessible family friendly spaces in West Dunbartonshire. Families have told us about their experiences visiting. Quote from parent 3.7 Request for Assistance 3.7.1 Work is in final stages to implement a Children and Families Access Help and Support Team, with clear guidance, thresholds and boundaries supporting notifications of concern and requests for assistance, initial assessment of vulnerable pregnancies and initial child protection activity. “As it was my first time ever in a contact centre, I was so pleasantly surprised, the facilities that are available to use are great and the area is so well resourced for the kids. I had a sort of "vision" of what I expected a contact room to look like and the room totally exceeded my expectations, I don't feel like I I'm in a contact room and I feel that is important as I don't want my kids to be aware of what is going on/where they were. I am grateful for the team providing a clean, welcoming and safe space for me to spend time with my kids" Page 45
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P a g e 22 | 70 3.7.2 The redesign has been informed by feedback and engagement with service users, practitioners delivering current response to child concerns and managers operating within the system. Appreciative Inquiry sessions have taken place to engage staff in the redesign process and a survey to staff with a final three options concluded on the name of the team. 3.7.3 Our Promise Lead engaged with families and young people to ensure the use of plain English and a clear shared understanding of a front door to children’s service was understood and made sense to those accessing social work services. 3.7.4 The team will have a defined number of key staff, including a dedicated management structure and admin support. Early help and whole family support will be key pillars of the approach alongside good practice in child protection work including further development of the Scottish Child Interviewing Model and the embedding of Special Needs in Pregnancy (SNIPs) within a model of initial child protection assessment. Implementation and final agreement on the proposed model will be concluded in 2024. 3.7.5 The revision of local processes with a view to better alignment with both the national Child Protection Guidance and Whole Family Support systems locally, ensuring women are provided with the right support at the right time. The current guidance is being updated and finalised to develop a children’s service system response with health and police colleagues being key to the practice. 3.7.6 Interagency Referral Discussion for unborn babies have been introduced in March 2023 to inform decision making and Child protection planning. Local development of pathways to early help and support will be key to success in this area and need to be underpinned by GIRFEC principles. This will ensure only the most high risk and vulnerable women and families are considered under child protection procedures. Work in early 2023 concluded the need for a full revision of key processes as described above which is ongoing. 3.8 Strengthening Scrutiny and the Voice of Children and Young People 3.8.1 Recruitment took place in early 2023 of four Independent Reviewing Coordinators to undertake reviews of plans for all looked after and accommodated children. These posts will ensure that all children and young people who are looked after away from home, in formal placements or in kinship, will be regularly reviewed in line with regulatory frameworks and good practice guidance. 3.8.2 In addition, the quality assurance function in key to ensuring the ‘birds eye view of practice’ is fully understood and quarterly reports on a set of Key Performance for children and young people in kinship and other key settings is being developed and shared with the wider children’s management team. This includes consideration of retention of sibling connections as part of new reportable data to Scottish Government as well as ensuring that children and young people’s views are captured and are central to planning processes. 3.9 Brothers and Sisters 3.9.1 This aligns to brothers and sisters work led by our Promise Keeper and The Promise multi-agency team Page 46
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P a g e 23 | 70 3.9.2 The Brothers and Sisters group began in March 2023 by gathering our local data to establish a baseline for how we are doing in keeping brothers and sisters together, alongside efforts to establish how decisions and being made, and how we are supporting on-going relationships when siblings are separated. A Brothers and Sisters plan was created with the findings of this data. 3.9.3 A repeat gathering of this data was carried out in April 2024 to consider our progress in this area. Learning from this work has been shared locally and nationally, with the Lead Officer for the Promise presenting the findings at the national Community of Practice for Siblings in January 2024, and the Promise Conference in February 2024. Following this there were a number of other local authorities who were interested in replicating the work within their own area, which the Promise Lead is supporting with. We are currently progressing through our Brothers and Sister’s Plan, which has been informed by both the qualitative and quantitative data gathered. 3.10 Advocacy 3.10.1 We have seen a significant increase and development of independent advocacy provided by Who Cares Scotland? and Partners in Advocacy increase over the past year for our care experienced children and young people. There was a 70% increase in referrals to advocacy provided by Who Cares Scotland between January – March 2023 and April – September 2023, and a 122% increase in Advocacy tasks undertaken during this period. Over this period there have been discussions with Who Cares? Scotland about increasing our Advocacy provision with them to reflect the need for this service, and support this right for children and young people. It is hoped that our increased Advocacy provision will be available from October 2024. Our Advocacy worker has reflected on what has supported this increase in advocacy uptake, considering the introduction of our Independent Reviewing Co-Ordinators, who now consider advocacy at every review meeting, and make referrals on to Who Cares? Scotland themselves when appropriate. 3.10.2 It was also noted that there has been a felt shift in relation to understanding and support of advocacy, and a recognition of the importance of ensuring voice is heard. 3.10.3 The HSCP was successful in obtaining Promise Partnership funding in October 2023 to deliver a service which focuses on Participation and Data Insights. 3.10.4 The HSCP is keen to ensure we maximise participation and undertake this in a way which is meaningful and engaging to children and young people. We also require to better understand how our data can help us inform and develop services aligned to our local need. We have commissioned this service to Action for Children and the Children and Young People’s Centre for Justice (CYCJ) and this project began in July 2024. 3.10.5 This service will support the to understand and implement different ways to measure progress, keeping children and young people at the centre, supporting effective ways to tell these stories and ensure they are linked to clear, tangible actions. The outcome that this service is seeking to achieve, is around a fuller, more nuanced and accurate story being understood by HSCP staff at all levels about our infant, children, young Page 47
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P a g e 24 | 70 people’s and families’ needs and experiences. We want our data to go beyond standard reporting measures, and to provide a deep dive into our families’ experiences, cutting across different multi-agency services and supporting the identification of solutions. 3.10.6 In October 2023 there were two full days of learning provided, which 37 children and families social work staff attended, on Communicating with Infants, Children and Young People. This included guest speakers from the Glasgow Infant and Family Team about supporting staff to understand more about infant mental health and infant voice. Learning was shared from two Speech and Language Therapists from West Dunbartonshire around ways of supporting communication with children and young people where there are communication difficulties 3.11 Family Support for Children and Young People and Families 3.11.1 The findings from research with young people and families commissioned by the HSCP in 2021 was undertaken by Glasgow University, reported a need for increased support for parents and families with children and young people as well as increased visibility of local supports and services for children, young people and their families. These themes align with the holistic family-based developments arising from the Whole Family Wellbeing Fund work. Three family wellbeing hubs have been developed in 2022 through integrated children’s service planning arrangements and are now open three days a week. 3.11.2 A third sector provider has been commissioned from Whole Family Wellbeing Funding to provide interventions and support for children young people and families in need of intensive and flexible seven day services as required with a focus on prevention and intervention with families to keep children safely at home. 3.11.3 Work has been completed in the design, build and maintenance of a website which will direct and inform local young people and families about supports and services for mental and emotional wellbeing. West Dunbartonshire Wellbeing website design has been inspired and co-produced with the local young people from West Dunbartonshire Youth Council. The working group will continue to link with youth organisations to build content and support the promotion of the resource. 3.11.4 There is strong commitment to ensuring that the voice of children and young people is at the centre of planning and care. The ongoing work of the Young Ambassadors group and Champions Board, developing work on delivering The Promise, refresh of our approach to GIRFEC and work on integrated operational guidance, paperwork and training will support improved engagement. As part of the work to implement The Promise engagement and development sessions involving a range of over 250 stakeholders including young people were held to set priorities for action, with work now taking place to develop an implementation plan. 3.11.5 The Children and Young People’s Involvement and Engagement Strategy provides a framework, tools and tips for services to engage young people in decision making and to undertake successful consultation and engagement activities. Page 48
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P a g e 25 | 70 3.12 Unaccompanied Asylum Seeking Children (UASC) 3.12.1 Since 2018 a total of 41 children and young people have sought asylum. Table 1 2.00 7.00 2.00 3.00 14.00 13.00 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 16 14 12 10 8 6 4 2 0 UASC New Arrivals (1st April-31st March) 3.12.2 Thirty eight children and young people seeking asylum being supported with appropriate accommodation and care. Table 2 5.00 12.00 14.00 17.00 30.00 38.00 2019 2020 2021 2022 2023 2024 40 35 30 25 20 15 10 5 0 No of Unaccompanied Asylum Seeking Children Being Supported 3.12.3 These 38 UASC Young people are accommodated in a number of placement provisions, 2 young people have yet to have their placement identified and determined. 3.12.4 11 young people are being supported in with supported carers. 3.12.5 1 young person in foster care. 3.12.6 5 young people in residential care. 3.12.7 12 young adults in tenancies with support (National Transfer Scheme). 3.12.8 6 young people living with friends or relatives. Page 49
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P a g e 26 | 70 3.12.9 1 young adult in their own tenancy. 3.13 Self-Evaluation Activity 3.13.1 A programme of single agency audit activity combined with planned multi-agency self- evaluation aligned to Chid Protection Committee has been developed during 2023 and 2024. 3.13.2 A pre-birth audit to inform a refreshed Pre-birth Multi-agency guidance informed by GIRFEC principles has concluded and informing a test of change regarding Notifications of Concern and the multi-agency guidance for Unborn Babies. 3.13.3 A single agency audit of notifications of concern and request for assistance was completed in June 2023 with the findings presented at The GIRFEC subgroup of integrated children’s services planning. The learning from this evaluation has helped shape the development of an ‘Initial response team and the required information form partners to social work services to ensure chronologies and wellbeing assessments are part of a request for assistance process. Table 1 429.00 445.00 505.00 506.00 465.00 462.00 479.00 506.00 2017 2018 2019 2020 2021 2022 2023 2024 600 500 400 300 200 100 0 At home with parents With friends/ relatives With foster carers provided by LA With foster carers purchased by LA In other community In local authority home/ Voluntary Home In other residential care Total Looked After Children Looked After Children at 31st July 3.13.4 It was identified for some unaccompanied young people that their looked after status had not been accurately recorded and we see a significant increase of our looked after population between 2023 and 2024 because of this. Page 50
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P a g e 27 | 70 3.14 Child Protection and Social Work Table 1 44.00 67.00 58.00 41.00 57.00 55.00 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 80 70 60 50 40 30 20 10 0 Number of Children on the Child Protection Register 3.14.1 There were 89 registrations and 91 de-registrations between 1 August 2023 and 31 July 2024. 3.14.2 As part of our ongoing implementation of National Child protection Guidance in Scotland (2021) we have included in child protection management children and young people up to the age of 18 year and potential impact is likely to be seen in 2023/2024 in reporting of this activity. 3.14.3 The National Guidance for Child Protection in Scotland (2021, Updated 2023) integrates child protection within the Getting it right for every child (GIRFEC) continuum and wider strategic landscape, including incorporation of the United Nations Convention on the Rights of the Child (UNCRC) and The Promise. 3.14.4 It sets out responsibilities and expectations of everyone who works with children, young people and their families in Scotland and describes how agencies should work together to protect children from abuse, neglect, exploitation, and violence. 3.14.5 The Guidance builds on evidence and well established single and multi-agency practice, however, there are key changes of note: Integration of the previously separate Child Protection Guidance for Health Professionals (2013) - the “Pink Book”, underlining the multi-agency nature of child protection. Further clarification of the role, function and contribution of Health Boards, professionals, designated staff, and services for child protection to support discharging their responsibilities safely, both individually and collectively. A ‘child’ defined as being a child or young person up to the age of 18 years, where appropriate, in line with UNCRC. The legal situation regarding young people aged 16 and 17 years is summarised. Widening the scope of child protection to include young people at risk in the community and not just those at risk of harm within the family. The criticality of multi-agency collaboration and Inter-agency Referral Discussions (IRDs) is outlined where there is risk of significant harm. And the importance of continuity and consistency across organisational and sector boundaries is emphasised. Page 51
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P a g e 28 | 70 3.14.6 The National Guidance for Child Protection in Scotland (2021, Updated 2023) states Child Protection refers to the processes involved in consideration, assessment, and planning of required action, together with the actions themselves, where there are concerns that a child may be at risk of harm. 3.14.7 National Guidance emphasises that Child protection is part of a continuum of collaborative duties upon agencies working with children. The Getting it right for every child (GIRFEC) approach promotes and supports planning for such services to be provided in the way which best safeguards, supports, and promotes the wellbeing of children and ensures that any action to meet needs is taken at the earliest appropriate time to prevent acute needs arising. 3.14.8 Child protection processes fall at the urgent end of a continuum of services which include prevention and early intervention. Children who are subject to child protection processes may already be known to services. Child protection processes should build on existing knowledge, strengths in planning and partnerships to reduce the risk of harm, and to meet the child's needs. Services have a two-year timeframe in which to implement guidance including cultural, policy and practice changes. West Dunbartonshire is at the early stages of awareness raising and mapping of the process changes required. We have worked with others in the West of Scotland to develop policies and guidance for staff. Work on implementation of change to reflect improvements required by National guidance will be a focus of work over the next few years. 3.15 West Dunbartonshire Child Protection Committee 3.15.1 The Protecting Children and Young People: Child Protection Committee and Chief Officer Responsibilities (2019) outlines the roles and responsibilities for the Child Protection Committee and the Chief Officers Group. Child Protection Committees (CPC) and partners are central to fostering an inter-agency approach and providing support for the development and delivery of processes, common standards, and continuous improvement. 3.15.2 CPCs are the key local bodies for developing, implementing, and improving child protection strategy across and between agencies, bodies, and the local community. A Child Protection Committee (CPC) is expected to perform a number of crucial functions in order to jointly identify and manage risk to children and young people, monitor and improve performance and promote the ethos that “It’s everyone’s job to make sure I’m alright”. Child Protection Committees (CPCs) must ensure all these functions are carried out to a high standard and are aligned to the local Getting It Right for Every Child arrangement. 3.15.3 The functions of Child Protection Committees (CPCs) are grouped as follows: Continuous improvement, Public information, engagement, and participation, Strategic planning and connections, Annual reporting on the work of the CPC. 3.15.4 The vision, values and aims of West Dunbartonshire Child Protection Committee have been reviewed and agreed by all parties represented on the Committee, and the Public Protection Chief Officers Group in 2023/2024 and are as follows: “Child Protection is Everyone's Responsibility” Page 52
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P a g e 29 | 70 3.15.5 The membership of West Dunbartonshire Child Protection Committee (West Dunbartonshire CPC) is multi-agency and includes senior representatives of the Health and Social Care Partnership, West Dunbartonshire Council, Police Scotland, Scottish Fire and Rescue Services, Scottish Children’s Reporter Administration, Greater Glasgow and Clyde Health Board, and other organisations who have a role to play in child protection. The role of the Committee is to provide individual and collective, collaborative leadership and direction for the delivery of Child Protection Services. As part of the Community Planning Partnership arrangements the Child Protection Committee reports to the Public Protection Chief Officer’s Group and strong links exist between the Children’s Planning Partnerships. Links with the Community Planning Partnership will be further reviewed and strengthened as part of our improvement plan. 3.15.6 West Dunbartonshire Child Protection Committee (West Dunbartonshire CPC) is responsible for the design, development, implementation and evaluation of child protection policy and practice across the public, private and wider third sectors in West Dunbartonshire. We are responsible for continuous improvement, strategic planning, public information and communication and involving children and young people and their families. 3.15.7 West Dunbartonshire CPC has a number of multi-agency subgroups to support its work in key areas. The groups are: Learning and Development Communication and Engagement Policy, Practice and Improvement Quality Assurance, Self-Evaluation and Data Page 53
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P a g e 30 | 70 Inter-Agency Referral Discussion Steering Group Learning Review 3.15.8 In addition, we have established a Special Needs in Pregnancy working group, which address early responses to child protection concerns for unborn babies. 3.15.9 The subgroups are chaired by members of West Dunbartonshire CPC and have representatives across the partners as members, assisting in the progression of each subgroups action plan. The subgroup action plans are created from actions agreed for West Dunbartonshire Child Protection Committee (West Dunbartonshire CPC) improvement plan. 3.16 Child Protection Activity – What Our Data Tells Us 3.16.1 Since 1 April 2023 West Dunbartonshire Child Protection Committee (West Dunbartonshire CPC) has continued to present key child protection data in the format of the national minimum dataset. 3.16.2 The Minimum Dataset is a set collection of agreed measurements, criteria, or categories required to create a robust understanding of information about a service. The data populated through these measures provides a baseline and then a progress measurement for the planning and development of services delivered. 3.16.3 The Minimum Dataset for Child Protection Committees responds to an action within the Scottish Government’s Child Protection Improvement Programmed to: Deliver robust datasets to support child protection improvement. Develop a national resource for advice on using child protection data for local planning and service development. Expand analytical capacity. 3.16.4 The Minimum Dataset for Child Protection Committees is a package of data collation, presentation, analysis, scrutiny questions and reporting. 3.16.5 West Dunbartonshire Child Protection Committee (West Dunbartonshire CPC) have created a scrutiny group where key partners meet on a quarterly basis to consider the data and provide analytical context or recommendations to West Dunbartonshire Child Protection Committee (West Dunbartonshire CPC) in terms of quality assurance or evaluative work that may be required. 3.16.6 In the summer of 2023 Version two of the dataset was implemented and work continues to ensure all indicators are reportable, requiring some changes to our data systems. This is reference to Care and Risk Management and Age of Criminal Responsibility data. Page 54
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P a g e 31 | 70 Table 1 Number of Police Scotland-recorded Child Protection Concern Reports and Inter-Agency Referral Discussions 41%44% 67% 48% 88% 68% 56% 44%50% 70% 62%65% 46% 68%67% 83%84% 53% 88%93% % IRD to Initial and Pre-Birth CPPMs % Initial and Pre-Birth CPPMs to Registration Percentage / Conversion Rate 3.16.7 Number of children subject to Police concern reports This peaked in Q3 (22/23) to 138, however has shown a downward trend since. This was at the lowest in Q3 (23/24) at 38. 3.16.8 Number of children subject to IRD’s starting This has increased in Q2 and Q3 (23/24) and is currently at a peak of 226 in Q3. 3.16.9 Number of IRD’s starting This has increased in Q2 and Q3 (23/24) and is currently at a peak at 132 in Q3. 3.16.10 When exploring the source of child protection referral to Social Work Services, Police, Education and Health colleagues are consistently the Partners which make the most referrals. This is expected as core agencies. There remain no referrals from Fire and Rescue and Housing, with low anonymous referrals recorded. Plans are underway to ensure basic child protection awareness training is available to Partners, aiming to raise awareness of child protection to those who may not work directly with children and young people. This has been a gap particularly for our Housing colleagues in recent years. Table 2 Number of Children subject to Initial and Pre-Birth Child Protection Planning Meetings Page 55
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P a g e 32 | 70 32.00 36.0036.00 21.00 34.0037.00 25.00 36.00 52.00 23.00 45.00 34.00 28.00 22.0018.00 40.00 25.00 15.00 24.00 41.00 36.00 21.00 21.00 26.00 15.00 23.0022.00 12.00 18.00 25.00 13.00 20.0019.00 14.0012.0011.00 20.00 16.0013.0013.00 21.0021.00 Q1 2019/20 Q2 2019/20 Q3 2019/20 Q4 2019/20 Q1 2020/21 Q2 2020/21 Q3 2020/21 Q4 2020/21 Q1 2021/22 Q2 2021/22 Q3 2021/22 Q4 2021/22 Q1 2022/23 Q2 2022/23 Q3 2022/23 Q4 2022/23 Q1 2023/24 Q2 2023/24 Q3 2023/24 Q4 2023/24 Q1 2024/25 60 50 40 30 20 10 0 Children subject to Initial and Pre-Birth CPCCs: LEFT AXIS Number of Initial and Pre-Birth CPCCs: LEFT AXIS Number of Children and Conferences 3.16.11 Children subject to initial and pre-birth child protection case conference. These figures had been on a downward slope between Q3 (21/22) and Q3 (22/23), however significantly increased between Q3 (22/23) and Q4 (23/22) to 40. From this point they have been variable. Decreasing over 2 quarter, then increasing for 2 quarters in 23/24. 3.16.12 Number of initial and pre-birth child protection case conferences. These figures have remained relatively steady in recent years. Table 3 Conversion Rate CPPMs to Registration 41% 44% 67% 48% 88% 68% 56% 44% 50% 70% 62% 65% 46% 68% 67% 83% 84% 53% 88% 93% Q1 2019/20 Q2 2019/20 Q3 2019/20 Q4 2019/20 Q1 2020/21 Q2 2020/21 Q3 2020/21 Q4 2020/21 Q1 2021/22 Q2 2021/22 Q3 2021/22 Q4 2021/22 Q1 2022/23 Q2 2022/23 Q3 2022/23 Q4 2022/23 Q1 2023/24 Q2 2023/24 Q3 2023/24 Q4 2023/24 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % IRD to Initial and Pre-Birth CPPMs % Initial and Pre-Birth CPPMs to Registration Percentage / Conversion Rate 3.16.13 Percentage of initial and pre-birth child protection planning meeting to registration. The figures in Q4 (23/24) where at their highest at 93%. 3.16.14 In June 2022 a test for change was implemented whereby the Social Work Team Leader, Senior Social Worker and Social Worker meet to discuss whether a CPPM was required based on information gathered for the child protection assessment and gathering views form Partners involved in the investigation. Work is being progressed to review this test of change to ensure this is a multi-agency decision, linking also to work being undertaken in relation to Inter-Agency referral Discussions and this being a process until either the decision is reached not to Page 56
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P a g e 33 | 70 progress to a CPPM or a CPPM takes place. 3.16.15 In addition, a thresholds audit had previously taken place with findings reported to the CPC in March 2023 where the following was explored: Understanding the thresholds and process for initiating a child protection referral to the Social Work Department. Inter-agency referral discussion and the decision making in this forum and its relationship with the number of initial child case conferences taking place (please note these meetings are now referred to as child protection planning meetings). Partnership working relating to child protection registration and children being placed on the child protection register. 3.16.16 The findings from the audit reported no significant issue with the thresholds being applied. Table 4 Number of Children (including Pre-Birth) on the Child Protection Register, New Registrations, and De-Registrations 18.00 24.00 17.00 24.00 13.0016.00 24.00 10.00 30.00 25.00 14.0016.00 26.00 16.00 28.00 22.00 13.0015.0012.00 33.00 21.00 8.00 19.00 38.00 53.00 58.00 46.00 51.00 46.0044.0046.00 38.00 58.00 67.00 45.00 40.00 48.0047.0047.00 54.00 39.0042.0038.00 51.00 60.00 45.0044.00 58.00 35.00 19.00 29.00 19.0018.0017.00 22.0019.00 10.00 19.00 33.00 23.00 16.0020.00 27.00 17.00 26.00 14.0016.0019.00 14.00 21.00 19.00 25.00 Q1 2018/19 Q2 2018/19 Q3 2018/19 Q4 2018/19 Q1 2019/20 Q2 2019/20 Q3 2019/20 Q4 2019/20 Q1 2020/21 Q2 2020/21 Q3 2020/21 Q4 2020/21 Q1 2021/22 Q2 2021/22 Q3 2021/22 Q4 2021/22 Q1 2022/23 Q2 2022/23 Q3 2022/23 Q4 2022/23 Q1 2023/24 Q2 2023/24 Q3 2023/24 Q4 2023/24 80 70 60 50 40 30 20 10 0 Number of Registrations Number on Register Number of De-Registrations Number of Children 3.16.17 Number of Registrations. These figures peaked in Q4 (24/24) at 38 and then began to decline to 8 in Q2 (23/24). 3.17 Child Protection Committee Achievements in 2023/24 Learning and Development 3.17.1 Two training sessions have taken place in relation to the Assessment of Care toolkit used to measure neglect. Further training is planned on a monthly basis for the remainder of 2024. 3.17.2 Additional training has taken place in relation to: Awareness of Neglect Child protection roles and responsibilities in child protection planning meetings Social work specific training across children and adult services in relation to reflective supervision. Page 57
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P a g e 34 | 70 3.17.3 Implementation of the Scottish Child Interview Model has been established with the development of our data sets which is supporting understanding of improvement and performance. 3.17.4 A planning group comprised of key Partners has been established to progress a complex case forum and a written proposal has been agreed detailing the scope of the forum. Communication and Engagement 3.17.5 A joint child and adult protection communication and engagement strategy was agreed at the child and adult protection Committees. 3.17.6 Work is ongoing to review and update the child protection website informed by feedback from young inspectors and children, young people and families in West Dunbartonshire. 3.17.7 Plans are underway to evolve the CPC newsletter. 3.17.8 We continue to promote national campaigns and child protection awareness raising locally. Policy, Practice and Improvement 3.17.9 Plans are underway to implement the National Guidance for Child Protection in Scotland (2021, Updated 2023). This includes making necessary changes to timescales for key child protection meetings, which were implemented in January 2024. Local child protection procedures are currently being progressed with an aim of implementation for summer 2024. 3.17.10 A child protection escalation and dissent protocol was ratified by the CPC. 3.17.11 Signs of Safety has been explored and it is hoped implementation will commence at the end of 2024. Data Scrutiny 3.17.12 Version Two of the national minimum dataset was implemented. Quality Assurance and Self-Evaluation 3.17.13 Although there has been some delay in adhering to the audit schedule, there continues to be ongoing audit activity, including audits in relation to: Police Concern reports. Special Needs in Pregnancy. A single agency Social Work audit and survey has commenced to understand the current position in relation to reflective supervision in children and families social work services. An audit of child protection planning meetings is being progressed. Given the audit activity that has taken place in recent years, a process is being considered for ensuring recommendations from audits are being completed. The quality assurance and evaluation subgroup would have oversight of this. Page 58
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P a g e 35 | 70 Inter-Agency Referral Discussion (IRDs) 3.17.14 The inter-agency referral discussion Guidance was ratified by the CPC to align with the National Guidance for Child Protection in Scotland (2021, Updated 2023). 3.17.15 Introduction of a daily multi-agency triage meeting. 3.17.16 Terms of reference have been written in terms of implementing quarterly audits of IRDs. 3.17.17 Electronic IRD’s (E-IRD’s) have been explored with the Public Protection Services at NHS GGC. Discussions are presently underway with initial agreement from Police, Social Work and Health to look at West Dunbartonshire as a Pilot Project/test of change for a new booking system designed by NHS GGC which will allow an interface between agencies and remove current manual and repetitive booking processes. Initial discussions with information security and IT across agencies have been positive which has allowed for a next steps meeting to be convened. It is anticipated this app-based solution will significantly improve IRD processes and timescales. 3.17.18 Significant amendments to multi-agency process have been made to ensure compliance with national guidance for Child Protection Scotland 2021, including IRD’s being conducted for 16 and 17-year-olds and un-born children. Challenges 3.17.19 Whilst recognising considerable achievements, there are challenges both locally and nationally in staff recruitment and retention, these are best summarised as follows: Recruitment of staff has been challenging for some services, particularly children and families Social Work. Although we recognise this is a national as well as a local challenge, there has been direct impacts on service provision, with extensive waiting lists. It should however be noted that our most vulnerable children, those where there may be a child protection concern are prioritised. Although funding has been agreed for a 2-year fixed term to support learning and development, this post has not been appointed despite re-advertising. Consideration is now being given to a full-time learning and development post for children and families, including child protection, rather than a shared post across child and adult protection. Given the above gap, a full learning needs analysis to identify training priorities across partners has not been possible. Delivery of multi-agency training has largely been delivered by external trainers due to being unable to recruit to the two dedicated posts for the adult and child protection committees (quality assurance and training posts). This has come at a significant financial cost and limits what training can be delivered. Establish a centralised location for all child protection policies, procedures and protocols to ensure this is easy for staff to access has been a challenge and links to the ongoing work in relation to the CPC website. Agree and undertake a plan to update all policies, procedures and protocols, and develop new ones that may be required. All policies require to reflect the 2021 National Guidance. Page 59
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P a g e 36 | 70 3.18 West Dunbartonshire’s Children’s Houses Burnside 3.18.1 Burnside House’s staff team continue to develop on their trauma informed approach with the majority of staff being trained in Dyadic Developmental Psychotherapy (DDP) and dates for new recruited staff identified, DDP allows staff to approach situations that arise in a manner that allows for the best resolution for the young people being able to explore their views and wellbeing using the PACE model which is Playfulness Acceptance Curiosity Empathy. This approach allows staff to encompass a trauma informed approach when engaging our young people who have experienced developmental trauma in their lives allowing us to best support and care for them through turbulent times building attachment and trust. This reflected in the calming environment which supports and allows young people to thrive and engage into their respected educational placements and hobbies such as martial arts, gym and swimming on a weekly basis. Burnside staff have also supported young people on an emergency basis and provide effective care to allow the time for them to be placed and supported to the best possible placement to suit their individual needs. 3.18.2 Burnside staff arranged and supported their young people to various outings over the summer period ranging from Head of Ayr Farm Park to fun days in the community. One of the attributes of Burnside is its location in the community and the young people have made friends who have come to the Burnside House. This has allowed staff to meet their friends and their parents and build relationships, having fun days in the garden with paddling pools and slip and slide and lawn games with the young people of Burnside being able to thrive and make friends at their home. 3.18.3 Burnside House care for two groups of siblings who stay together within Burnside. This is great as it encapsulates in keeping The Promise of having siblings cared for together. One of Burnside’s senior workers attends The Promise working group and being pro-active in her networking and sharing the good work to come from the group invited Talie Maysey who The Promise participation worker and who is tasked with carrying out the Brothers and Sisters questionnaire which has been developed for the group. Talia attended Burnside on 3 September 2024 to carry out the questionnaire from this and the great engagement of the young people Talia is going to attend Burnside again and run a workshop for the young people to create a promise board for the house which the aim will be to allow them to build a base knowledge of The Promise. 3.18.4 Burnside is going through a time of positive change and development with new staff in post to further through safer recruitment strategies and employed due to their individual strengths shown to further strengthen a strong team who work hard with the young people at the centre. Burnside also have a new manager in house who was previously a senior worker in house and through effective supervision is now in post as house manager. Craigellachie 3.18.5 Craigellachie has had a busy and challenging year so far. This has included staff leaving and four new members of staff joining the team at a very busy time and have been a welcome asset to the team. 3.18.6 We continue to embed our DDP and Trauma informed into our practice. We have accessed training to reinforce DDP with management, to support staff to be confident in PACE and ensure this is the model of practice within Craigellachie. The Scottish Page 60
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P a g e 37 | 70 Attachment in Action project offered free training for a cohort of staff across the houses on Attachment, Racism and the Impact on Relationships. 3.18.7 Two young people have returned to their family home and one is awaiting kinship approval to return to family. This has been positive for our young people and Craigellachie will continue to support our young people and families through this transition. 3.18.8 Staff have received sexual health training from NHS, we have organised a few more dates to ensure all staff have information regarding sexual health and the impact on our young people. 3.18.9 In January Craigellachie took the lead to organise a Football tournament for all the houses. This was an excellent day, Manager and staff from all the houses and Alternative to Care (ATC) Team contributed to the day being such a success. Our players included, our young people who are with us just now, young people who had stayed in Burnside, Craigellachie and Blairvadach previously, police, fire and rescue, unaccompanied young people project and family and friends of staff and young people. Our Chief Officer Beth Culshaw came down to open the tournament and we had a player from our local team Dumbarton Football club completing the day with presentations of trophy and medals. Blairvadach 3.18.10 Blairvadach Children's House remains committed to delivering exceptional care and support to the young people we serve. Throughout 2024, our efforts have focused on continuous improvement, guided by 'The Promise Scotland' recommendations. This report outlines our key achievements, changes, and progress over the past year, reflecting our dedication to both the young people and staff. 3.18.11 In 2024, we welcomed four new young people, each with complex needs, and have supported eight young people overall. Additionally, our staff team has seen transitions, with four members leaving and three new staff joining, with more hires expected. Leadership saw changes as well, with Alexis promoted to Team Leader of Residential Services and Paul stepping into the House Manager role, several staff members have also celebrated personal milestones, welcoming three new babies into their families. 3.18.12 We have supported five young people in full-time education since August 2024, while one is enrolled in an English as a second language course. Two others are receiving more tailored educational support. Despite Blairvadach’s rural location, the young people have been encouraged to travel independently to school, initially accompanied by staff to build confidence. 3.18.13 This year has seen several notable achievements from our young people, including one completing the John Muir Discovery Award and three passing their cycling proficiency tests. Additionally, we’ve seen academic success with several young people passing Highers, National four and five exams, and other qualifications. 3.18.14 We continue prioritise facilitating family connections, including reunifications when possible. Our recent success in reuniting two siblings with their mother in August 2024 is a testament to the diligent work of our staff. When reunification is not feasible, we ensure family time is maintained to support strong relationships. Staff Page 61
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P a g e 38 | 70 continue to involve families in decision-making, promoting positive family dynamics. 3.18.15 Ensuring that the voices of the young people are heard remains central to our mission. We encourage their involvement in developing and reviewing their personal care plans, ensuring their preferences and goals are reflected. Additionally, we participate in 'The Promise' working group. We are excited to collaborate with new Promise Participation Workers, who will help further involve the young people in shaping their care. 3.18.16 Blairvadach has welcomed visits from our Chief Executive and CSWO these visits have reinforced our shared commitment to transparency and creating opportunities for the young people to engage with their corporate parents. We were also involved in drafting the newly approved Continuing Care guidance, which aligns with our approach to supporting children’s ongoing transitions from care. 3.18.17 Staff development remains a priority at Blairvadach. A number of staff completed their SVQ levels three and four, while others received advanced training in PPB. We also attended sessions on Self-Harm and Suicide First Aid, and DDP. These training initiatives ensure our staff are equipped to provide high-quality care. We also held a development day, the outcomes of which have informed updates to our overall development plan, ensuring we remain on a trajectory of progress and growth. 3.18.18 In 2024, Blairvadach saw a significant reduction in violent incidents, with only five secure guides (restraint) needed and 14 successful de-escalations. This improvement is attributed to our relationship-based approach, underpinned by PPB and DDP principles. We also experienced a low number of missing person incidents, reflecting the safe and settled environment we strive to create. 3.18.19 All our Children’s houses continue to support unaccompanied asylum-seeking young people collaborating with external agencies to ensure their safety and engagement with the wider Scottish community. Staff members also contribute to national work on unaccompanied asylum-seeking children age assessment. 3.19 Adult Services 3.19.1 The ongoing development and implementation of Self-Directed Support (SDS) is aligned to the National Framework of Standards National Improvement Plan 2023- 2027 which highlights themes and activities that are aligned to the SDS Framework of Standards. 3.19.2 Below is a high-level overview of the work undertaken between April 2023 and March 2024 in relation to continued implementation of Self-directed support whilst recognising this is a sample of the good practice and activity being progressed. This is not an exhaustive list, the team also managed Independent Living Fund Accounts and reviews which generates income of approx. £1.4million in funds to the West Dunbartonshire area. 3.20 My Life Assessment Evaluation 3.20.1 The My Life Assessment (MLA) was launched in April 2022 across all adult teams in the HSCP following the feedback and subsequent improvement plan from the 2019 Care Inspectorate report (Thematic Review of Self-Directed Support in Scotland). The Page 62
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P a g e 39 | 70 My Life Assessment was developed as a person-centred assessment framework that focused on the assets of supported people and the positive outcomes they were looking to achieve. 3.20.2 In September 2023 an independent evaluation was commissioned to carry out a review of the MLA and My Life Assessment Screening (MLA-S) tools within adult care services over a 6-month period spanning 2023/2024. There were two main outcomes of this evaluation: How effectively the MLA and MLA-S process is being implemented as intended, including adhering to the retrospective guidance documents; and How effectively the MLA-S is meeting the outcome of “more people have needs identified for early help and community support more quickly and access accordingly (alongside or instead of a full MLA). 3.20.3 The evaluation involved: Practitioner surveys and focus groups with both frontline practitioners and senior social workers Redacted samples of 48 MLA and MLA-S documents across 4 adult teams Telephone interviews with service users and carers Comparison analysis against a sample of other local authority paperwork 3.20.4 The findings of the evaluation were published in Spring 2024 and highlighted that the implementation of the MLA and MLA-S was variable across teams despite extensive and detailed guidance available, this was not well known or well used by staff. Practitioners perceive the MLA and MLA-s is not supportive of being person centred, rights based, or outcomes focused on approach and this perception was reinforced by the case file review that highlighted a tendency towards deficit-based language use and approach with a tendency to focus on care at home services to meet outcomes and a lack of creativity with support planning. The MLA is viewed as repetitive and time consuming and staff are predominantly unhappy with the structure, length and format of the tool. 3.20.5 Service users and carers were unfamiliar with the screening or assessment process, and many felt their needs were unmet or were unclear regarding the outcomes they were working towards through current support. There was no evidence from the samples collected or service users contacted that early access to community supports was happening. 3.20.6 From the publication of the evaluation as SDS, the lead has been working on development of an improvement plan focusing on the 5 key recommendations: Review the process holistically Co-produce a new system with practitioners Refine the assessment and screening tool Consider training and induction more holistically Consider developing collegiate, practitioner led spaces 3.20.7 An improvement plan following the evaluation is being developed and progressed in 2024. Work has begun on points within the improvement plan including development of an SDS Champions network that will bring adult team staff together to help drive forward positive changes to practice across teams but also influence future changes to the MLA and process, ongoing roll out of Just Enough Support training for all frontline staff and partner organisation. Page 63
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P a g e 40 | 70 3.21 Just Enough Support 3.21.1 Just Enough Support (JES) is a person-centred approach to support planning that focusing on the assets and natural support a person has around them to ensure no one is over supported and they are maximising opportunities for independence. JES works on the belief that an outcome is something that isn’t working for a person currently or an aspiration they wish to achieve. In March 2023 4 staff members began the Train the Trainer course for JES, completing this in September 2023. At present 2 members of the original 4 have been rolling out the one-day training programme since September 2023. Between September 2023 and March 2024 over 80 staff members and 12 external partners attended face to face sessions completing this training so they were equipped to understand and use the person-centred tools that maximises on good conversations to happen between practitioner and service user. There has also been additional 121 mentoring session around outcome creation and support planning for staff through the drop in SDS clinics that run twice a week in Clydebank and Dumbarton. 3.21.2 It is anticipated that JES training will be extended to Children and Families teams and health care professionals in the 2024/2025 year. 3.22 SDS Staff Training and Development 3.22.1 An annual training calendar was published for all HSCP staff in January 2024 that offered regular in person training opportunities in several key areas including: SDS Overview – the legislation and our approach to SDS in West Dunbartonshire HSCP SDS and Carers – an overview of Carer’s legislation and how SDS overlaps SDS and TEC – how SDS can be used with Technology Enabled Care to support outcomes Exploring option one – a detailed breakdown of option one and the responsibilities that go with this. 3.22.2 The SDS officers (2FTE) also provide two drop-in support clinics every week for staff to come along to for mentoring to support navigation of SDS approach and help build staff confidence when discussing SDS with service users and carers. 3.22.3 There has been ongoing attendance at team meetings to ensure that SDS is kept on the agenda, some teams have requested bespoke training sessions which have been delivered around indicative budget and SDS paperwork as well as Independent Living Fund (ILF) applications and reviews. 3.22.4 An I-Learn module is available online for staff to gain an understanding of SDS, or to refresh their knowledge, this is due for review in 2024. This is recommended to all staff joining the partnership. There is ongoing work around the induction process for new workers. 3.22.5 The SDS intranet pages have also been updated to support staff to easily access relevant documents and legislation to help build their confidence and knowledge. 3.22.6 SDS training has been delivered to colleagues in finance and procurement as part of the new ethical commissioning approach being developed through Foundations for Change programme. Page 64
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P a g e 41 | 70 3.23 Short Break Pilot 3.23.1 In May 2023 a pilot was launched focusing on short breaks for carers utilising the SDS process as a means of getting funds to carers quickly. In a short period, a process was established that involved development of an application, agreement of resource allocation process and establishment of key staff and roles they would fulfil. 3.23.2 Within a 12-week period £216k was allocated to unpaid carers (from all teams across the HSCP), funds were equivalent to up to £4766 per application (equivalent to 6 weeks of traditional respite). Practitioners supporting carers to make applications ensured a care and support plan was in place for the person but also encouraged more creative support planning that would meet the outcomes important to the carer. Funds were requested for a wide variety of spends including garden renovations and equipment, short courses, gym memberships and holidays (that in some cases included the cared for person going on the break with the carer). The support planning involved in these applications showed excellent evidence of relationship-based practice between staff member and carer and outcomes heavily focused on supporting the carer to lead their own life alongside their caring role. 3.23.3 Evaluation of the pilot is due for completion in autumn 2024, initial learning for the SDS team was around out paperwork process and date recording for option 1 budgets which has been streamlined and our SOP updated to reflect a more responsive approach in getting funds to service users and carers promptly. 3.23.4 SDS will also be involved in the review of approach to carer budgets/respite due to begin October 2025. 3.24 Support in the Right Direction – Inspiring Scotland 3.24.1 Within the SDS framework of standards and the National Improvement plan for 2023- 2027 there is a focus on independent support around SDS for service users and carers. 3.24.2 In March 2023 the existing provider of independent advice and guidance for SDS in West Dunbartonshire relinquished their funding leaving the local area without service. After engagement with Improving Lives and Inspiring Scotland it was agreed that a test of change pilot would be funded for a 6-month period from October 2023 until March 2024 to build awareness of what SDS is and how it can be accessed via the HSCP. A variety of awareness raising events took place across the area alongside advertisements in local publications radio. 3.25 SDS Circle and Providers Network 3.25.1 Throughout 2023 and continuing in 2024 our SDS Circle was established and meets on a quarterly basis bringing together key stakeholders and partners from the Third Sector as well as paid providers of social care services in the local area. This forum has been key to strengthening working relationships with these key partners, allowing the HSCP to establish an open communication channel for reflective practice, sharing of good news stories and an opportunity to expand knowledge about the vast range of assets within our communities. The quarterly meetings are also ensuring a more joined up approach to support planning and will be involved in future improvement work from the MLA evaluation and public engagement sessions. Page 65
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P a g e 42 | 70 3.26 Adult Support and Protection 3.26.1 In all aspects of the HSCP work we actively promote a culture of continuous learning. We ensure feedback from the people we work with informs our planning and development of staff and services. The extended use of data, service standards and the continued use of the quality assurance framework has supported the identification of what is working well and highlighted areas for improvement. 3.26.2 In the reporting period the Quality Assurance and Evaluation subgroup took forward work relating to multi-agency audit, quality assurance and evaluation. A multi-agency audit was completed in February 2024. Thirty case files were evaluated of referrals processed in the previous two years. The tool used was based on the criteria and standards used in the Care Inspectorate in the Multi-Agency Inspection. 3.26.3 The key areas for improvement included: Application of the three-point test. Protection plans require to be strengthened. Timescales for key processes requires to be monitored. 3.26.4 Chronologies are found in majority of cases but the quality of these require to be improved. 3.26.5 Engagement / inclusion of service users and their carers requires to be strengthened at all stages of Adult Support and Protection. 3.26.6 Good practice areas the audit identified were: Practice was rated as good or very good in 80% of cases at Duty to Inquire, 80% of cases at investigation and 79% at case conference. 3.26.7 The aim of this activity has been to produce an accurate picture of Adult Support and Protection work conducted within West Dunbartonshire and to clearly identify shared priorities for improvement work across the partnership. We plan to conduct regular audits in the coming year which will be smaller in numbers with the emphasis in capturing the views of service users. 3.26.8 The Adult Protection Committee understands the importance of its function in “improving the skills and knowledge of staff’. The training programme has been impacted in the reporting period due to the absence of a Lead Officer. We are now relaunching an in-person training calendar consisting of training in relation to Multi- Agency Basic Awareness, Multi-Agency Detailed Awareness, Council Officer, Council Officer Refresher, Second Worker, Supportive Decision-Making, and Crossing the Acts training. 3.26.9 In person sessions have taken place during the reporting period covering the roles and responsibilities in relation to ASP. These sessions covered: o Council Officer – o 18/09/2023 (6 attended) o Council Officer Refresher – o 02/10/2023 (10 attended), o 06/11/2023 (4 attended) o Second Worker – o 09/10/2023 (9 Attended), o 27/11/2023 (6 attended), o Case Conference Chairing – o 20/11/2023 (12 attended) Page 66
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P a g e 43 | 70 3.26.10 Feedback from these sessions: 3.26.11 Suggestions for improvement will be taken forward and considered for future session. 3.26.12 The feedback from the Adult Protection Inspection and the recent Learning Reviews highlighted a need for ongoing staff training in relation to coercive control, impact of alcohol and substance abuse on older people, disguised compliance/working with resistant families, chronology, consent and capacity, assertive practice, professional curiosity, line of sight. These key learning sessions highlighted from the improvement plan will be evaluated when delivered. 3.26.13 Further plans are in place to develop the provision of basic and detailed awareness training though a supported “Train the Trainers” programme. This will be led by the Adult Protection Lead Officer and this programme will be key to moving forward and modernising the approach for learning and development activities. 3.26.14 Linked to the above has been the re-introduction of the frontline Adult Support and Protection Practitioner’s forum. This will allow representatives of the forum to collate views and questions to allow continued feedback of Adult Support and Protection related information to front-line teams. This will ensure those workers views continue to be heard. These sessions will introduce key themes and introduce short learning workshops on the topics raised above. 3.27 Overview of Adult Protection Activity 2023/24 3.27.1 The increase in Adult Protection conferences is broadly commensurate with increase in ASP referrals as detailed in table 1 and table 2 (below). I found the course very interesting and engaging and feeling confident about becoming a council officer Very informative, relaxed and a safe place to learn and grow as a practitioner - Thank You I found this course really helpful and Interesting and absolutely relevant to be able to carry out council officer duties Really enjoyed the scenario exercises. Helped cement learning really well Would be beneficial to have input from WDC ASP team to explain expectation of 2nd Worker Having a WDC Staff member from social work to explain the expectations on us would have been helpful Page 67
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P a g e 44 | 70 Table 1 Table 2 3.27.2 As demonstrated in table 3 the number of referrals is increasing significantly and further work by the Adult Support and Protection Committee to understand the significant rise in demand is planned. Page 68
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P a g e 45 | 70 Table 3 3.27.3 During the reporting period the Adult Protection Committee has commissioned three Learning Reviews. Two have been conducted and one is ongoing. The Committee has promoted a culture of learning and in response to these Learning Review and is in the process of developing a revised Improvement Plan. Significant work has since progressed on the recommendations which will form the basis for the work of the APC moving forward. 3.27.4 We recognise that staff engagement and input into the learning form reviews is crucial and an action plan following independent reviews concluded in 2024 is now in place with input from staff and operations managers to support practice improvement. 3.28 Multi-Agency Forum (MAF) 3.28.1 The Partnership’s Multi Agency Forum (MAF) continues in the HSCP. The overall aim of this forum is to have first line sight of individuals who repeatedly contact services and to provide a platform for multi-agency discussion to decide on the most appropriate response. The agencies attending this forum include Social Work, including Justice, Health, Police, Housing and Scottish Fire and Rescue. 3.28.2 Work has been undertaken to refresh the Terms of Reference of the group to ensure its role is fulfilling in line with current policy and practice and also to ensure the right partners are round the table to facilitate appropriate sharing of information and to create a space for a range of agencies and partners to consider alternative future responses to recurring complex issues that have not been previously resolved at service level or through reflective practice. 3.28.3 Feedback from staff indicates that the MAF is now better placed to fulfil its duty of care to those it serves. More regular meetings ensure early identification of people who frequently contact or present to a range of services, particularly those where an immediate pathway may not be clear. We will continue to work closely with our partners to improve responses to those with recurring needs and complex risks who may not routinely fit into services as currently structured. Page 69
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P a g e 46 | 70 3.29 Mental Health Officer Service (MHO) 3.29.1 Since the start of 2023, the focus of the MHO service has been on improving data collection and statistical reporting, decreasing turnaround times for delayed discharge cases awaiting applications for intervention under Adults with Incapacity legislation, improving workforce capacity and increasing the number of completed Social Circumstances Reports as per the requirements of the Mental Health (Care and Treatment) (Scotland) Act 2003. 3.29.2 Dedicated MHO now retain statutory review arrangements in respect of guardianship before onward review and care management within the wider adult service. Through 2024, the focus for the MHO service has been on reviewing and improving procedures and processes relating to Adults with Incapacity legislation, identifying and developing briefing sessions which have been delivered to colleagues, developing closer working relationships with other services and developing the skills, knowledge base and confidence of the MHO service as a whole. 3.30 Adults with Incapacity (AWI) / Guardianship 3.30.1 Following a request for data from the Mental Welfare Commission in June 2024, it was established that West Dunbartonshire required to improve its statutory requirement to supervise private Guardians in line with the prescribed timescales, resulting in a significant backlog of outstanding reviews and a requirement to adapt existing processes to address this. 3.30.2 In March 2024 there were 139 Guardianship supervision reviews outstanding - this figure now sits at 90. 3.30.3 80 reviews have been completed since 1 July 2024 across the adult social work teams. Whilst this is a move in the right direction, there remain issues which need to be addressed. The number of overdue reviews is not increasing however as the procedures have been altered and MHOs are completing the initial three-month supervision visit. 3.30.4 Fortnightly Guardianship Governance meetings have been established to review progress and address any issues that might arise, and Care First provide regular reporting on the data for this. 3.30.5 The AWI procedures and ancillary guidance standing operating procedures (SOP’s) are being updated and an AWI resource page on the intranet is planned. One of the Mental Health Officers are also looking at ways in which the information that is shared with prospective Guardianship applicants can be standardised so that consistent and up to date information is given. This includes the use of QR codes and other digital means of access. 3.30.6 The MHO service has developed and delivered briefing sessions on Supported Decision Making and the Supervision of Private Guardians. These have been delivered to social work colleagues with positive feedback received. There are also briefing sessions planned on Capacity and Consent. 3.30.7 The MHO service recently held an internal development session whereby our response to the proposed AWI amendments was considered. The entire team attended this and it was a thorough examination of the changes being considered, with particular focus on human rights, the principles of the legislation and the challenges of ever increasing workloads and expectations. Another development morning is planned for October. Page 70
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P a g e 47 | 70 The team are keen to invite speakers, etc. to team meetings as well and there are plans for a representative from the Women's Safety and Support Network to attend in October. 3.30.8 As the core MHO team is now fully staffed, there is scope for MHOs to represent West Dunbartonshire on a number of forums and groups in addition to their regular MHO tasks. There is currently West Dunbartonshire MHO representation at the Scottish Association ASW MHO forum, the Social Work Scotland MHO subgroup, the NHS GGC legislation subgroup and the Forensic Peer Support Network. There is also representation at the Learning Network West MHO reference group and MHOs attend the MHTS and GGC RMO/MHO forums. One of the Mental Health Officers is keen for members of the MHO team to develop their practice in areas of particular interest to them and the MHOs seek out and attend training which is relevant to their needs and interests. 3.30.9 By its nature, the MHO service is not one which will ever have newly qualified social workers (NQSW) as permanent members of the team. The CSWO and West Dunbartonshire commitment to the NQSW Supported Year is clear and part of our offer will ensure that all social workers within their first year will be able to spend a minimum of six weeks with a range of social work teams to ensure there is experience and understanding of the diversity of social work functions across the HSCP. This includes within the MHO service, again with the aim of sharing knowledge and skills (in both directions) and promoting the MHO role. 3.30.10 The MHO service now is now fully staffed, having recruited two newly qualified MHOs into full-time roles within the team. Both MHOs are excellent practitioners and their appointment means that the pressure is reduced on the other MHOs who have gone over and above in recent months to make sure that statutory work is picked up and progressed timeously. 3.30.11 In last year’s CSWO report, it was noted that there were significant issues with the recruitment of MHOs nationally and these challenges remain. Because of this, the focus of the MHO service over the next few years will be on training more MHOs from within the existing West Dunbartonshire social work workforce as it is recognised that recruitment from out with West Dunbartonshire is likely to be challenging. Unfortunately, there were no applications for the 2024/25 MHO course, with workers citing the demands of their substantive post, concerns over the intensity of the course and anxieties about the demands of MHO practice as being reasons for this. 3.30.12 To address this, various strategies are being employed to make the MHO service more visible to colleagues in other teams. This will improve the sharing of information, knowledge and skills between services. This has included MHOs working more frequently from Church Street and Clydebank Health Centre, undertaking joint visits with colleagues where necessary, facilitating briefing sessions on areas of practice and participation in meetings and case conferences where appropriate. There is also a plan to link specific MHOs with specific teams. 3.31 MHO Data Oversight 3.31.1 The recording of interventions undertaken by MHOs in West Dunbartonshire Council in previous years has been somewhat inconsistent and as such it has been difficult to accurately report upon the work being undertaken by the service, including being able to identify trends in relation to the use of legislation, the impact that staffing issues Page 71
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P a g e 48 | 70 within the team have had on service output and the overall efficiency of the service and its ability to meet the needs of the client group with whom we work. 3.31.2 Standing operating procedures and workflows have been developed for several areas of MHO practice, including duty work and AWI practice and these are being reviewed on a regular basis to ensure that they are working. Work is also ongoing via team meetings, individual supervision sessions and targeted training to ensure consistency of recording within the team. 3.31.3 Development of monthly reports now being provided to the service regarding the use of the legislation, the data from which is then collated and reviewed to support performance improvement. 3.32 Support to Adults Leaving Hospital 3.32.1 2023/24 also saw the creation of a Reablement Team comprising of a Team Lead, an Occupational Therapist, four Rehabilitation Support Workers, two Care Organisers and when fully staffed 24 Home Carers. Table 1 3.32.2 The service has been increasing gradually since August 2023 with its role to provide assessment and support to people recovering from acute illness or injury. This is with a view to helping them regain and maintain independence and reduce their risk of long- term reliance on services such as care at home and potentially prevent hospital admissions. 3.32.3 Delayed hospital discharge of West Dunbartonshire patients has reached unprecedented levels during 2023/2024. 3.32.4 While delayed discharges have been a challenge nationally, when looked at as a rate per 100,000 population, West Dunbartonshire has had the highest rate across Greater Glasgow and Clyde apart from a slight dip in September/October 2023. 3.32.5 Delayed discharges are closely monitored and scrutinised on a daily basis by the Community Hospital Discharge Team and Heads of Service. Page 72
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P a g e 49 | 70 3.32.6 Recent quality improvement activity includes a test of change with older adult wards at Gartnavel General Hospital, with a multi-disciplinary focus on all West Dunbartonshire inpatients to ensure pathways of care were appropriate and early discharges encouraged. 3.32.7 An enhanced delays dashboard has also been developed by NHS Greater Glasgow and Clyde which presents HSCP specific delays information around the reasons for delays based on the Scottish Government codes. 3.32.8 Analysis of our delayed discharges quite clearly shows the volume of throughput. While numbers are rising they remain fairly similar each week however these are not the same individuals waiting each week. Table 2 3.32.9 As well as the significant volume of activity around delayed discharge, we can see that our efforts in relation to arranging appropriate discharges for those complex delays (Code 9s) can be evidenced by the reduction in the average length of complex delay during the year while the average standard delay has remained steady. 3.33 Community Learning Disability Services 3.33.1 The Learning Disability Service within West Dunbartonshire Health and Social Care Partnership (West Dunbartonshire HSCP) comprises a considerable integrated workforce of both NHS and Council staff within statutory, registered, supported employability and respite services. At the end of January 2024 West Dunbartonshire was successful in appointing a Service Manager for Learning Disability Services, on a fixed term basis for two years, to lead on the review and development of the Learning Disability Service in line with organisational change policies. This role will be crucial in supporting West Dunbartonshire HSCP to meet the aspirations of the Coming Home Implementation Report published by the Scottish Government in February 2022. 3.33.2 An Operational Manager, Services, has also been introduced, for an initial two year fixed term period, to work alongside the Service Manager and the Integrated Operations Manager (IOM) for Learning Disabilities. The Operational Manager, Services has management responsibility for registered services, supported employability and respite services, with the IOM retaining management responsibility for statutory services, which includes the health and social work teams known as the Community Learning Disability Team (CLDT). 3.33.3 From a statutory delivery perspective as part of the integration arrangements there is a social work team that consistently supports adult with complex learning regarding volume, complexity and in relation to adult support and protection despite the fact it Page 73
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P a g e 50 | 70 continues to not yet be fully staffed. Even with the continuing recruitment challenges, a picture that is mirrored nationally, the team remains committed to meeting the needs of service users and its statutory duties, as well as providing input to carers’ assessments and reviews of service users’ needs. A new permanent senior social worker has been appointed and a Newly Qualified Social Worker has also been welcomed to the team. The team continues to work hard with service users and carers to maximise people’s independence and to ensure services are delivered equitably utilising West Dunbartonshire HSCP’s policy entitled Accessing Adult Social Care: Eligibility Criteria. 3.33.4 One of the actions to be taken forward from The Coming Home Implementation Report (2022), published by the Scottish Government, included setting up a new national register to improve monitoring of those at risk of hospital admission, placement breakdown or inappropriate placements. The first action was to raise visibility, through improved monitoring of, and planning for, and with, people with learning disabilities and complex care needs through the development and implementation of Dynamic Support Registers (DSRs). West Dunbartonshire HSCP has been successful in embedding the Dynamic Support Register within the integrated CLDT and has routinely reported its data to Public Health Scotland (PHS). 3.34 Housing Support Service for Adults with Learning Disabilities 3.34.1 The registered Housing Support Service (HSS) provides supported living to people with a learning disability to live as independent a life as possible. Staffing has improved within this service during 2023-2024 with a successful recruitment drive seeing the addition of 4 new staff. This has been against a backdrop of a general crisis in recruitment within social work and care. The service will be reviewed as part of the wider review of Learning Disability services planned for 2024 – 2026. 3.34.2 West Dunbartonshire HSCP Respite/Short Break Service involves the co-ordination and booking of respite/short breaks for carers of adults with a learning disability to meet their assessed need and outcomes. In addition to traditional residential respite, the Respite/Short Break Service continues to promote and provide alternative resources to carers through self-directed support; direct payments, flexible respite or a combination of the three options. Partnership working across the HSCP, with Carers of West Dunbartonshire and with local providers has been enhanced through representation and work undertaken in the Carers Development Group. This included participation in the development and redesign of the new Adult Carer Support Plan to ensure the assessment is outcome focused and asset based. This includes prompts for workers to support carers to complete emergency and future planning information, further building resilience to support carers. Future considerations include the increasing number of young people with complex needs and behaviours perceived as challenging that will require a different approach to support carers in their caring role. 3.34.3 Current capacity within social work is impacting on more carers being encouraged to consider flexible short breaks rather than traditional residential respite against a backdrop of constrained budgets and financial challenge. 3.34.4 That said there has been very positive feedback from carers who have chosen the Flexible Respite budget (option two) and they have thanked the team for their support, guidance and the coordination of their break. Carers appreciate they have immediate access to the service when they have a query or wish to book a break. Dumbarton Centre 3.34.5 Highlights of good person-centred practice: The staff team have been working closely in core groups to create person-centred care plans for those service users that display Page 74
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P a g e 51 | 70 behaviours perceived as challenging. This involves good communication, problem solving, developing strategies and adopting an innovative approach. The strategies that have been put in place, as well as Positive Behaviour Support (PBS) plans are regularly discussed and modified as required. 3.34.6 Staff Development: Two members of the staff team have completed PBS postgraduate qualifications. Two members of the staff team are Promoting Positive Behaviour (PPB) trainers. Two staff are trained in music therapy, which allows for meaningful music therapy sessions. One member of staff is a trained Yoga teacher and has embedded this practice into some service user care plans, which has been beneficial therapeutically and has been well received. Community Connections 3.34.7 Good practice: The service has implemented new opportunities for service users in literacy, gardening and art. The staff team has also supported service users to participate in a recent Boccia tournament; the team has fundraised for new equipment and has a meeting with Boccia Scotland next week to discuss further opportunities to compete in competitions. Some of you may have watched it at the Paralympics. 3.34.8 Staff development: Four of the staff team have recently completed Rebound therapy training to allow Community Connections the opportunity to offer Rebound therapy to those service users who have been assessed by Physiotherapy to access this invaluable intervention. 3.34.9 Both Dumbarton Centre and Community Connections sometimes experience a lack of capacity due to staffing levels and it is hoped the review of Learning Disability services in the coming year will address this challenge. 3.35 Alcohol and Drug Partnership (ADP) 3.35.1 The Scottish Government requires all Alcohol and Drug Partnerships to develop a local alcohol and drugs strategy to align local and national priorities, planning and investment. The National Mission Plan 2022, which as of 2023 includes an alcohol focus, runs until 2026. The West Dunbartonshire ADP strategy refresh aims to deliver an ambitious programme of priorities that will improve the quality of life for people, families and communities in West Dunbartonshire. 3.35.2 The strategy outlines five strategic priorities: Substance Use Prevention Young People and Families Improve services to support those with co-existing mental health and substance use and/or multiple complex needs Tackling alcohol and drug related stigma Reducing the harm associated with alcohol and drug use Medicated Assisted Treatment (MAT) Standards 3.35.3 The 29 Alcohol and Drug Partnership (ADP) areas were assessed against the 10 MAT standards using three streams of evidence: process, numerical and experiential. This means that 290 individual assessments were carried out, 145 for MAT standards 1–5 and 145 for standard 6–10. The evidence required to demonstrate implementation of each MAT standard was based on the criteria and indicators in the MAT standards document. 3.35.4 MAT 1-5 were confirmed as green, and 6-10 provisional green. Page 75
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P a g e 52 | 70 3.36 Official Waiting Times – Report published by Public Health Scotland 27 June 2024 3.36.1 Table 1 below shows that in each of the four quarters of 2022/23, West Dunbartonshire has been over the 90% threshold (for waits 21 days and below), and the percentages have been consistently higher than both NHSGGC and Scotland as a whole. Table 1 Area Q1 Q2 Q3 Q4 West Dunbartonshire 95.7 97.5 93.7 96.4 NHS GGC 91.9 94.1 92.9 92.7 NHS Scotland 89.2 89.7 90.8 92.2 3.37 External Scrutiny: Care Inspectorate Inspection West Dunbartonshire Care Homes 3.37.1 The Care Inspectorate is responsible for inspecting standards of care in Scotland. They use a quality framework that sets out key elements to help answer key questions about the difference care is making to people, and the quality and effectiveness of the things that contribute to that. The primary purpose of a quality framework is to support services to self-evaluate their own performance. The same framework is then used by inspectors to provide independent assurance about the quality of care and support. 3.37.2 The Care Inspectorate use Key Questions rather than Quality Themes in their inspections. Key Questions: KQ1 – How well we do we support people’s wellbeing; KQ2 – How good is our Leadership; KQ3 – How good is our staff team; KQ4 – How good is our setting; KQ5 – How well is our care and support plan KQ6 – Capacity for improvement They still use the six point scale of 1 – Unsatisfactory, 2 – Weak, 3 – Adequate, 4 – Good, 5 – Very Good, to 6 – Excellent in grades awarded against each quality indicator. 3.37.3 The Care Inspectorate uses requirements and recommendations to help regulated care services improve. A requirement is a statement which sets out what a care service must do to improve outcomes for people who use services and must be linked to a breach in the Public Services Reform (Scotland) Act 2010t, its regulations, or orders made under the Act, or a condition of registration. Requirements are enforceable in law. A recommendation is a statement that sets out actions that a care service provider should take to improve or develop the quality of the service, but where failure to do so would not directly result in enforcement. 3.37.4 Six of the ten care homes in West Dunbartonshire were inspected between April 2023 and March 2024. The grades awarded are depicted in Table 1. Of these four had requirements and had areas for improvement identified. Page 76
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P a g e 53 | 70 Table 1 Inspection GradesCare Home Date of Inspection KQ 1 KQ 2 KQ 3 KQ 4 KQ 5 No of Requirements No of Areas for Improvement Clyde Court 25.05.23 2 2 3 2 N/A 8 5 Clyde Court 24.08.23 3 3 3 3 N/A 0 0 Kingsacre 19.06.23 4 4 4 5 3 0 4 Castle View 27.06.23 3 3 3 3 3 7 9 Castle View 21.09.23 4 4 4 N/A 4 0 2 Hill View 07.08.23 4 3 N/A N/A 4 1 0 Hill View 23.11.23 N/A 4 N/A N/A N/A 0 0 Edinbarnet 04.09.23 4 4 N/A N/A N/A 0 3 Alderwood House 13.11.23 2 2 2 2 2 8 0 Alderwood House 23.01.24 3 3 3 3 3 0 0 3.37.5 Due to grades awarded at the inspection on 25.05.23 it was agreed with the Provider that a Moratorium on admissions would be placed on Clyde Court until sufficient progress had been made to meet the 8 requirements detailed within the inspection report. At the inspection in August 2023 the Care Inspectorate confirmed that all 8 requirements had been met. This was a result of the hard work of the Management and staff team and their willingness to embrace the support offered from the HSCP and Care Home Collaborative teams. The moratorium on placements was removed on 25 August 2023. Work is ongoing with HSCP and Care Home Collaborative to ensure improvement is sustained and the service continues to improve. 3.37.6 Due to the grades awarded and nature of the requirements highlighted following the inspection in October/November 2023 it was agreed with the Provider that a Moratorium on admissions would be placed on Alderwood House until sufficient progress had been made meet the eight requirements. The HSCP also took the decision to undertake an Adult Protection Large Scale Investigation (LSI) due to the number and nature of the Adult Protection referrals which had been submitted following the Inspection. The LSI required officers from the HSCP to undertake reviews for all West Dunbartonshire Council clients within the service to ensure clients were safe and receiving the appropriate level of care. This request was also made to all other HSCPs who had clients placed in Alderwood House. 3.37.7 All reviews were complete and any issues highlighted were addressed. The HSCP staff held weekly meetings with the Management Team at Alderwood to offer support and guidance. Page 77
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P a g e 54 | 70 3.37.8 The Care Home Collaborative also provided training and support. At the inspection visit in January 2024 Inspectors confirmed that all 8 requirements had been met and grades would be increasing. The Moratorium on placements was removed and the LSI process was concluded on 1 March 2024. Work is ongoing with HSCP and Care Home Collaborative to ensure the service continues to improve. 3.38 Justice Social Work Services Table 1 Data Demonstrating Significant Increased Demand 2021/22 2022/23 2023/24 -/+ Justice Social Work Reports submitted to Court 524 599 660 + 11% Community Payback Orders imposed 338 374 408 +9% Bail Supervision Orders imposed 0 15 25 +66% Structured Deferred Sentences 0 13 29 +123% Diversion from Prosecution 37 28 27 -3.5% Drug Treatment and testing Orders 18 6 12 +100% 3.38.1 Justice activity throughout the reporting period from Courts has increased from the previous year, explained largely by the backlog of Court cases being addressed. The number of social work reports to Court alongside the numbers of Community Payback Orders (CPO’s) have increased significantly. 3.38.2 Equally of note, were the number of cases of Structured Deferred Sentences (SDS) put in place by Courts locally, which saw an 123 % increase from the previous reporting year. These increases across the service, are significant against a backdrop of vacancy within the team and reduced capacity, as the SDS also requires regular social work support and intervention comparable to low level Community Payback Orders. 3.38.3 Within Justice Social Work services, the backlog in outstanding Unpaid Work hours to be completed was addressed through use of allowing multiple days of attendance where capacity allowed, and it is a credit to staff and those subject to the orders that the backlog is reducing. 3.38.4 Drug Treatment and Testing Orders (DTTO) evidenced a dramatic rise in orders being imposed throughout 2023/2024. The DTTO service is provided by an integrated care team working across West Dunbartonshire to support individuals whose offending is primarily due to their established addiction issues. The staff provide both medical intervention and social work support, encouraging recovery, reduced offending behaviour and promoting stability. 3.38.5 Regular attendance at Court reviews from DTTO staff promote service user engagement and sentencers confidence in the use of this disposal. 3.38.6 DTTO staff have established relationships with Addiction Recovery Services supporting services users in their choice of substitute prescribing and supporting links to recovery communities within the local area. 3.38.7 The provision of services to Multi-Agency Public Protection Arrangements (MAPPA) continued throughout the reporting year, and the multi-agency work and sharing of information through this structure is reported to have worked continuously well. Those on orders subject to MAPPA receive intervention from Justice social work on increased Page 78
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P a g e 55 | 70 contact levels, in response to presenting risks, therefore the numbers of people subject to those orders does not need to see a large increase in numbers of orders to have a significant effect on the capacity and resources of the service. 3.38.8 Justice Social Work has contributed to good partnership working within the West Dunbartonshire Community Justice Partnership. This work underpins the development of a local Community Justice Outcome Improvement plan which will see publication within the next reporting period. 3.38.9 It will be necessary to continue to monitor the resourcing of Justice social work services with some notable increases in demand, continuing the trend of previous years. It is anticipated this will persist as the backlog of Court cases are heard, resulting in increased workloads for Justice Services. Improvement Actions 3.38.10 A number of improvement actions have been completed during the past year including: New staff being trained, with existing staff annually updated on the suite of assessment tools used within Justice Social Work. Staff are now trained and accredited in the delivery of the Caledonian Domestic Abuse system. This is now available to the court and will address the high levels of domestic abuse prevalent within the local area. Several Justice staff are now accredited trainers and actively involved in the national roll out of training for Unpaid Work workforce. Involvement in national strategic groups to ensure West Dunbartonshire Justice Services are linked to current and new policy and practice. Established close links with employment partners, enabling greater numbers of service users to access employment and training opportunities. New meeting established with the local living experience group to ensure feedback to support service development. Challenges have included: 3.38.11 A significant challenge for the Justice Social work service through the reporting period was recruitment to vacancies within the service. This coupled with the increase in workload for the service has continued to impact on development and improvement work. Strengths include: Strong partnership working is evident in the planning of support for individuals being released from prison. Our justice and housing services are working closely together to ensure short stay accommodation is identified for individuals prior to release and support then provided to access a permanent tenancy. Positive and supportive working relationships with Police Scotland colleagues in the management and supervision of those assessed as posing a high risk of re- offending. Service users have went on to employment, further education and volunteering through our close association with employability services. We continue to work closely within established partnerships in the community including CHAS, Alternatives and Greenspace. The ‘Moving Forward’ Women’s Service supports females involved in the Justice system and offers one to one holistic supports, looking at increasing independent skills, self-confidence and mindfulness. The Women’s Safety and Support Service provides specialist responses and interventions to increase the safety and wellbeing of survivors of Domestic Abuse. Page 79
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P a g e 56 | 70 The service supports women offenders, (via group work and one to one supports) who have additional vulnerabilities and complex needs resulting from multiple experiences of Violence against Women. Our Anti-discriminatory intervention with women in Justice is essential to addressing the unique challenges and systemic biases, they face within the justice system. Women in Justice often encounter multiple layers of discrimination based on gender, race, socioeconomic status, and other intersecting inequalities and vulnerabilities. The Women’s Safety and Support Service provide intervention underpinned by a trauma-informed approach that recognises the specific circumstances leading to offending behaviour, such as histories of abuse, poverty, mental health issues and addictions caused or exacerbated by the gender-based violence and abuse they experience. The service aims to empower women to address these underlying issues by reducing barriers to accessing the service and maximising choice. Proactively engaging with women, building trust and maximising their power to identify priorities and solutions assists in reducing the vulnerabilities they experience and improve safety and well-being. Inclusivity in core programmes with others not involved in justice, maximising engagement with activity to reduce social isolation as well as safety planning and collaboration with women to raise awareness of how abuse has affected them across their lifespan; are crucial contributions to promoting positive outcomes for women within the justice system and maximising equality. 3.39 MARAC (Multi-Agency Risk Assessment Conference) 3.39.1 West Dunbartonshire MARAC commenced April 2020, and meetings continue to be convened 4-weekly. Information about domestic abuse victims at high-risk of the most serious levels of harm, including murder, is shared between representatives from a range of local agencies to inform a coordinated action plan to increase the safety of the victim and their children. 3.39.2 At the heart of a MARAC is the working assumption that no single agency or individual can see the complete picture of the life of a victim, but all may have insights that are crucial to their safety. MARAC, with its focus upon working collaboratively to ensure the safety of domestic abuse victims and their children, allows partners involved to share those insights and to develop robust and effective safety and risk management plans. Any frontline agency representative that undertakes a risk assessment with a victim, or uses professional judgement, to determine high risk threshold is met, can make a referral to West Dunbartonshire MARAC through the MARAC co-ordinator. Table 1 West Dunbartonshire MARAC Per year Year to date Female Victim Male Victim Children / YP 2023/24 326 144 322 4 606 2024/25 - 99 97 2 261 3.39.3 The strengths of MARAC lie in its proactive and unified approach by agencies who each bring a unique perspective and set of resources to address the complex challenge of domestic abuse. 3.39.4 By including the voices and views of victims/survivors, MARAC ensures that its actions are centred around victims/survivors. Page 80
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P a g e 57 | 70 3.39.5 Following a series of deep dive events into MARAC, Scottish Government Independent Strategic Review of Funding and Commissioning of VAWG services recommends that MARAC is put on a statutory footing with standards of operation and resourcing which would apply consistency across all 32 Local Authorities in which it is now operating. 3.39.6 Scottish Government VAWG Equality and MARAC Working Group will publish a government response to the Report by May 2025. It is estimated that for every £1 spent on MARACs, at least £6 of public money can be saved annually. The potential ‘beneficiaries’ of this saving across West Dunbartonshire are for all the existing organisations, public and voluntary sector, who currently contribute to multi-agency responses and support for women at significant risk of harm – source Scottish Government Equally Safe Delivery Plan. 3.40 Community Justice 3.40.1 Community Justice in West Dunbartonshire is a priority area in terms of improved outcome planning in the locality. In October 2023 a full time Community Justice co- ordinator was employed to support the National Aims and Priority Actions of ‘The National Strategy for Community Justice’ and associated ‘The National Strategy for Community Justice Delivery Plan’. 3.40.2 To centre the approach to community justice outcome improvement planning a Strategic Needs and Strengths Assessment (SNSA) was undertaken, which included the analysis of 6-year trend data, to better understand the landscape and identify strategic priorities for 2024-2026. As part of this activity West Dunbartonshire Community Justice Partnership (CJP) have developed and ratified the local Community Justice Outcome Improvement Plan (CJOIP) with updated Terms of Reference (ToR) including new governance structures for the Community Justice Partnership. Key improvement areas are: Ensuring that co-production is central to future shaping of service delivery and service availability. To deliver on this an Authentic Voices working group has been established. This group will also undertake discovery and scrutiny activity underpinned by a gendered analysis and specifically look at women’s experience of justice and justice services. Establishment of a multi-agency partner stakeholder Arrest Referral working group to support the National relaunch of the ‘Arrest Referral Scheme’ lead by Police Scotland. Establishment of the Caledonian steering group to support the embedding of ‘The Caledonian System’ across the locality and ensure victim safety. Establishment of the CARM/FRAME Steering group to support the embedding of processes for young people in conflict with the law. This activity will support the embedding of the new Children (Care and Justice) (Scotland) Act 2024, ensuring that youth justice us underpinned by a child’s right based approach that supports child protection within the context of an enhanced welfare model. Establishment of a Custody to Community working group to support justice service users in their journey from custody back to community ensuring that all health and social care needs are met with a view to reducing recidivism. As part of this activity West Dunbartonshire HSCP has commissioned The Lennox Partnership to work with justice service users to support their employability needs within the context of reducing barriers to employability i.e. disclosure considerations. Establishment of the Prevention and Early and Effective Intervention working group to develop a targeted approach to preventing West Dunbartonshire resident becoming involved with justice services and, where they are already touching Page 81
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P a g e 58 | 70 justice services, to create space for disruption, diversion, and desistance activity – preventing people being involved with justice services for prolonged periods of time. 3.40.3 The Community Justice Partnership is further collaborating with wider justice services and undertake and SNSA in regard to Bail; Remand; Electronic Monitoring (EM) and other Community Based Sentences. This activity will seek to inform strategic priorities beyond 2026. 3.40.4 The local delivery plan is being realised through the thematic working groups and this is proving to be fruitful and constructive to meeting the local and national strategy. Working group membership consists of multi-agency stakeholder partners - all working towards a unified approach to the deliverables. Group members are a combination of operational and strategic staff who are best placed to offer a bottom up approach which is strengthened by top down strategic support, guidance and governance. 3.40.5 The CJP has also sought to raise the profile of community-based sentences by engaging in profile raising activity and other community engagement activity. 3.40.6 Focused sessions were arranged for partners to come together as part of working groups to discuss themes and direction of particular work strands relevant to the group’s undertakings to direct and shape the outcomes and improvement activity to the National Aims and identify local priority areas. 3.40.7 Multi-agency partner stakeholders Information and Awareness raising sessions have been hosted (including opportunity for local Elected Members) to provide an overview of Community Justice as a whole; the work, purpose, and function of the West Dunbartonshire CJP and ‘The Caledonian System’. There have also been drop-in sessions to support this activity. 3.40.8 Discussion on local priority aims and deliverables took place across wider working groups and in meetings with other partnerships including West Dunbartonshire Alcohol and Drug Partnership, West Dunbartonshire HSP (Housing Solutions Partnership), West Dunbartonshire VAWGP (Violence Against Women and Girls Partnership); West Dunbartonshire LEP (Local Employability Partnership); and West Dunbartonshire Safe DIG (Development and Implementation Group). 3.40.9 Following ratification of the draft CJOIP the document was sent to wider staff groups for comment and consideration, all inclusions and amendments contributed to the final published draft. 3.40.10 Community consultation for ‘The Caledonian System’ was undertaken ensuring the voices of women victims, children, victims and the wider community were captured in regard to understanding the system’s function; the need for such provision; and support for such an intervention within the local community. 3.40.11 Information and Awareness raising sessions have been held to help staff groups to better understand the system and the need for such a joined-up approach to tackling Domestic Abuse in West Dunbartonshire. Peer review from multi-agency managers, staff and West Dunbartonshire VAWGP was sought for the ‘Caledonian System’ strategic Risk Assessment and Safety Protocol’ along with the ‘Standard Operating Protocol’. This activity has included a communication loop with the MARAC Steering group. Page 82
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P a g e 59 | 70 3.40.12 West Dunbartonshire CJP consulted with all local community justice partner’s organisations strategic plans, safeguarding potential conflict between West Dunbartonshire CJP strategic direction and those of our partners ensuring that important areas or themes were not omitted when devising our CJOIP. 3.40.13 West Dunbartonshire CJP worked closely with Community Justice Scotland (CJS) in particular the ‘Community Justice Improvement Tool’ and new Community Justice ‘Targeted Resource to Support National Outcome Improvement Planning in Local Authority Areas Tool’. The new targeted resources were reviewed by relevant service areas for scrutiny an applicability. Comments and considerations were shared with CJS. 3.40.14 ‘The Community Service Support Tool’ (CSST) developed by CJS was peer reviewed with West Dunbartonshire VAWGP and West Dunbartonshire ADP to ensure due diligence and allow partner comment, consideration and discussion regarding potential service generated risk across and between service areas. Comment and consideration were shared with CJS. 3.40.15 In developing the Community Justice Outcome improvement Plan (CJOIP), West Dunbartonshire CJP carried out an Equalities Impact Assessment (EIA). The purpose of an EIA is to work out how a policy or function will affect the wellbeing of different groups of people with particular needs or who are disadvantaged in some way. An EIA is an opportunity to drive fairness and good practice. As part of the EIA, and in line with the Fairer Scotland Duty, West Dunbartonshire CJP also considers the socioeconomic impacts of its policies, process and strategies. West Dunbartonshire CJOIP EIA and ‘The Caledonian System’ EIA can be located on the HSCP website. West Dunbartonshire CJP is committed to better understanding equalities duties and undertakings, to ensure that service provision is accessible and inclusive. 3.40.16 Partners have been hugely instrumental, working towards unified outcomes. A SMART (Specific, Measurable, Achievable, Relevant and Time Bound) approach to planning, collaboration and delivery has been adopted and this has proved to create a strong infrastructure with partners working towards clear outcomes, clear data collection and analysis, with clear roles and remit in terms of contribution to outcome planning activity. 3.40.17 The creation of working groups has initiated a collaborative approach across and between West Dunbartonshire HSCP/West Dunbartonshire Council services. All of the working groups are shared interest groups with other strategic partners: VAWGP; CPC; HSP; LEP and Safe DIG – the groups seek to collaborate in a unified way to ensure that all partner strategic outcomes are met alongside justice outcomes. This model could be replicated in other smaller local authorities in terms of viability and SMART planning collaborative working arrangements. 3.40.18 West Dunbartonshire CJP has created an Authentic Voices working group that is tasked with gathering the voices of service users, ex-service users, families and staff members for quality improvement and assurance of service provision and service development. This group is a multi-disciplinary group who are engaged with authentic voices discovery and change activity 3.40.19 This group is engaging in activity that gathers authentic voices views and these views will inform future strategic and operational change as part of a co-production outcome improvement model. Page 83
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P a g e 60 | 70 3.40.20 West Dunbartonshire CJP undertook a 6-year trend data analysis to help inform strategic directions and priorities. 4. Resources 4.1.1 The Integration Joint Board (IJB), known locally as the HSCP Board, is responsible for the strategic direction and performance of these services, together with delegated community health services for adults and children. 4.1.2 The HSCP Board’s current Strategic Needs Assessment highlights demographic pressures, health inequalities and the deprivation profile of West Dunbartonshire compared to other parts of Scotland and how these factors result in higher levels of support from services. 4.1.3 Our Board had responsibility for an overall net budget resource for delegated health and social care services of £200.643m in 2023/24. The setting of the 2023/24 budget was even more challenging than the previous year, as partner funding contributions failed to keep pace with the increasing costs of service delivery and the increasing demand for those services. The overall HSCP funding shortfall (before pay awards) was £6.0m, split £4.7m for social work and care and £1.3m community health services. 4.1.4 For social work and care services the 2023/24 funding allocation from West Dunbartonshire Council was a “flat-cash” one, i.e. 0% uplift for inflation and demographics. The £4.7m funding shortfall was mitigated through savings, a range of management actions and release of some reserves. The measures included increasing turnover savings, deletion of some vacant posts, reviewing the levels of commissioned spend across all services and capping residential bed numbers within our older people’s care homes. 4.1.5 While good progress was made in delivering on these actions, the overall financial outturn position for 2023/24 was an excess of expenditure against funding, resulting in an overspend of £7.529m across all delegated health and social care services. The underlying budget deficit for social care was £8.185m, offset by a small surplus in health services of £0.656m. 4.1.6 This final outturn position had been monitored closely throughout 2023/24, and while additional mitigating actions were approved by the HSCP Board, the impact of another 5 year of unfunded pay for local authority employed staff coupled with continued increased demand for both children and adult services, resulted in the Board having to cover the deficit from the release of reserves. 4.1.7 Table 1 below provides detail on the consolidated position and the release of earmarked reserves. Page 84
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P a g e 61 | 70 TABLE 1: EXTRACT FROM 2023/24 AUDITED ANNUAL ACCOUNTS West Dunbartonshire 2023/24 2023/24 2023/24 2023/24 2023/24 Integrated Joint Board Annual Net Underspend/ Reserves Underspend/ Budget Expenditure (Overspend) Adjustment (Overspend) Consolidated Health & Social Care £000 £000 £000 £000 £000 Older People, Health and Community Care 54,612 57,210 (2,598) (1,626) (972) Physical Disability 3,485 3,402 83 0 83 Children and Families 30,761 32,238 (1,477) (321) (1,156) Mental Health Services 13,893 13,631 262 (124) 386 Addictions 4,131 4,021 110 (166) 276 Learning Disabilities 21,276 21,147 129 (120) 249 Strategy, Planning and Health Improvement 2,341 1,889 452 143 309 Family Health Services (FHS) 33,004 33,075 (71) 0 (71) GP Prescribing 21,323 22,667 (1,344) 0 (1,344) Hosted Services - MSK Physio 7,450 8,262 (812) (748) (64) Hosted Services - Retinal Screening 879 879 0 (87) 87 Criminal Justice 0 274 (274) 0 (274) HSCP Corporate and Other Services 7,116 9,105 (1,989) (2,750) 761 IJB Operational Costs 372 372 0 0 0 Cost of Services Directly Managed by West Dunbartonshire HSCP 200,643 208,172 (7,529) (5,798) (1,731) 4.1.8 Table 2 below, provides a higher level of detail on the 2023/24 pressure on social work and care services, in particular for services for Looked After and Accommodated Children and Care at Home Services. However, it should be noted that considering national comparators West Dunbartonshire’s spend on children’s care spend is fourth most efficient. TABLE 2: 2023/24 SOCIAL WORK AND CARE FINANCIAL PERFORMANCE 2023/24 2023/24 2023/24 2023/24 2023/24 Annual Net Underspend/ Reserves Underspend/ Budget Expenditure (Overspend) Adjustment (Overspend) £000 £000 £000 £000 £000 Strategy Planning and Health Improvement 1,264 1,081 183 30 153 Children and Families 25,668 27,395 (1,727) (571) (1,156) Older People Residential and Community Care 33,636 37,137 (3,501) (1,538) (1,963) Adult Services: Learning Disabilities 13,498 13,384 114 (133) 247 Adult Services: Physical Disabilities 2,315 2,197 118 0 118 Adult Services: Mental Health 3,549 3,530 19 58 (39) Adult Services: Addictions Services 955 1,389 (434) (419) (15) Carers 1,564 1,972 (408) (444) 36 Other Services 2,547 5,096 (2,549) (3,437) 888 Net Expenditure 84,996 93,181 (8,185) (6,454) (1,731) Social Care Net Expenditure 4.1.9 The financial and service pressures experienced in 2023/24 are not new, in particular demand for children’s services, which was on an increasing trajectory since 2017/18, has been further exacerbated by the impacts of both the Covid-19 pandemic and the Cost-of-Living Crisis is having on families across West Dunbartonshire. This is shown in stark detail in the graph below covering the increasing costs of Kinship, Fostering and other Residential Accommodation. Seventy four percent of children and families allocated budget is allocated to the provision of care as detailed below. Page 85
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P a g e 62 | 70 Table 3 4.1.10 The recently published (July 2024) Audit Scotland published a report on “Integration Joint Boards - Finance and Performance 2024”, clearly articulated the “complex landscape of unprecedented pressures, challenges and uncertainties” facing all IJBs. Overall funding to IJBs decreased on average by 9% in real terms in 2022/2023 requiring significant savings having to be identified, many non-recurring and an increasing reliance on using reserves, which is not a sustainable approach going forward. 4.1.11 Within West Dunbartonshire HSCP, we recognise all of these Audit Scotland findings as we continue to operate in an extremely challenging environment both locally and nationally. These challenges are set out within our current Medium Term Financial Plan 2022/2023 – 2026/2027. The plan (due to be refreshed this year) also sets out our key themes on how we aim to redesign our services and look for other opportunities to reshape our delivery models to work within the continuing financial constraints projected over the medium term. 4.1.12 These are: Better ways of working – integrating and streamlining teams including the benefits of information technology to deliver services more efficiently will release financial savings and protect front line services; Community Empowerment - support the vision for resilient communities with active, empowered and informed citizens who feel safe and engaged to be a main contributor to service change across health, social work and care; Prioritise our services – local engagement and partnership working are key strengths of the HSCP. We must think and do things differently and find new solutions to providing support to those who need it; Equity and Consistency of approach – robust application of Eligibility Criteria for new packages of care and review of current packages using the My Life Assessment tool; and Service redesign and transformation – build on the work already underway redesigning support to people to remain or return to their own homes or a homely Page 86
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P a g e 63 | 70 setting for as long as possible. This will be across all care groups including older people, learning, physical and mental disabilities and children and families, in partnership with Housing services, third sector and local providers. 4.1.13 These themes are expended in greater detail by individual service redesign plans, approved by the HSCP Board over the last two years. These are our Care at Home Service Redesign Project, our Review of Learning Disability Services and our Medium Term Financial Plan for Children’s Services: “What Would It Take”. The progress on the delivery of these plans are underpinned by a refreshed strategic plan, expansion of local commissioning, robust financial management, a prudent reserves policy and a range of actions to support our workforce. 4.1.14 These individual service strategies are committed to working with our residents, our own workforce and those we commission services from, to ensure that high quality services can be delivered whilst demonstrating Best Value from our constrained resources. TABLE 4: 2023/24 COMMISSIONED EXPENDITURE £000 £000 £000 £000 £000 Residential Care 6,702 15,500 2,359 0 24,561 Respite 115 22 355 646 1,138 Housing Support 2,487 1,248 10,702 8 14,445 Day Support 0 177 2,844 0 3,021 Nursing 0 0 809 0 809 Payments to other bodies 1,246 3,440 3,593 1,697 9,976 External Fostering 3,580 0 230 0 3,810 Kinship Payment 2,678 0 0 0 2,678 Fostering and Adoption 1,237 0 0 0 1,237 Payments to NHS 571 187 355 551 1,664 Direct Payments 255 940 861 87 2,143 Total 18,871 21,514 22,108 2,989 65,482 Spend Category Children and Families Health and Community Care Learning Disabilities, Mental Health and Other Total 4.1.15 Table 4 below, provides further detail on the financial cost of commissioning a range of social work and care services in 2023/24 and with the Scottish Government’s continued commitment to pay all social work and care workers a realistic living wage, this is another financial risk that requires to be managed. 4.1.16 The financial outlook for the HSCP for 2024/25 is one of increasing financial challenge and risk, as flat-cash allocations were again passed over from our funding partners. While there has been some assurance that pay awards for health board staff will be funded, there are no such assurances for local authority social work and care staff. 4.1.17 In March 2024, the HSCP Board agreed to a suite of options to close the estimated funding gap (before pay awards) of just under £10 million. Recognising that transforming and redesigning services requires more time, the majority of the shortfall will be covered by a continuation of non-recurring turnover savings, non-filling of some vacant posts and the remaining application of any available reserves. 4.1.18 The planned refresh of the Board’s Medium Term Financial Plan later in 2024, will seek address how best we can mitigate these risks going forward and work with our partners Page 87
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P a g e 64 | 70 to take forward the main recommendations of the Audit Scotland report, to work collaboratively and share learning both locally and nationally. 4.1.19 The Integration Joint Board (IJB), known locally as the HSCP Board, is responsible for the strategic direction and performance of these services, together with delegated community health services for adults and children. 4.1.20 The HSCP Board's current Strategic Needs Assessment highlights demographic pressures, health inequalities and the deprivation profile of West Dunbartonshire compared to other parts of Scotland and how these factors result in higher levels of support from services. 4.1.21 Our Board had responsibility for an overall net budget resource for delegated health and social care services of £200.643m in 2023/24. The setting of the 2023/24 budget was even more challenging than the previous year, as partner funding contributions failed to keep pace with the increasing costs of service delivery and the increasing demand for those services. The overall HSCP funding shortfall (before pay awards) was £6.0m, split £4.7m for social work and care and £1.3m community health services. 4.1.22 For social work and care services the 2023/24 funding allocation from West Dunbartonshire Council was a "flat-cash" one, i.e. 0% uplift for inflation and demographics. The £4.7m funding shortfall was mitigated through savings, a range of management actions and release of some reserves. The measures included increasing turnover savings, deletion of some vacant posts, reviewing the levels of commissioned spend across all services and capping residential bed numbers within our older people's care homes. 4.1.23 While good progress was made in delivering on these actions, the overall financial outturn position for 2023/24 was an excess of expenditure against funding, resulting in an overspend of £7.529m across all delegated health, social work and care services. The underlying budget deficit for social work and care was £8.185m, offset by a small surplus in health services of £0.656m. 4.1.24 This final outturn position had been monitored closely throughout 2023/24, and while additional mitigating actions were approved by the HSCP Board, the impact of another year of unfunded pay for local authority employed staff coupled with continued increased demand for both children and adult services, resulted in the Board having to cover the deficit from the release of reserves. 5. Workforce and Service Impact 5.1 Workforce Planning 5.1.1 West Dunbartonshire HSCP Workforce Plan (2022-2025) is due to come to an end in March 2025. Our current workforce plan is currently being reviewed in accordance with the priorities identified in our Strategic Plan (2023-2026). A new plan will be developed for 2025 to 2028. 5.1.2 The latest version of guidance from Scottish Government is clear and sets out a continuation of the National Workforce Strategy for Health and Social Care with the ‘Five Pillars of the Workforce Journey’: Plan – supporting evidence-based workforce planning; Attract – using domestic and ethical international recruitment to attract the best staff into health and care employment in Scotland; Page 88
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P a g e 65 | 70 Train – supporting staff through education and training to equip them with the skills required to deliver the best quality of care; Employ – making health, social work and care organisations “employers of choice” by ensuring staff are, and feel, valued and rewarded; Nurture – creating a workforce and leadership culture focusing on the health and wellbeing of all staff. 5.1.3 As might be expected, West Dunbartonshire HSCP are looking to grow and retain our workforce in the next five years. Recruitment and retention is a main focus of actions to help us deliver both our Workforce Plan but also encourage employability and extending the number and type of training opportunities available. We utilise supervision session to discuss career development, learning interventions and progression of specific training to support our workforce in their roles. Several programmes of work have progressed, including, this year, supporting and developing employment with relevant qualifications by utilising funded places for under graduate and post graduate programmes at University, applications have been successful for five employees in 2024 from within the HSCP. 5.1.4 The updated plan will also reflect the requirements of Scottish Social Services Council (SSSC) Newly Qualified Social Worker (NQSW) Supported Year implementation. The implementation will bring developments to ensure our NQSWs are fully supported throughout their first year of practice. This includes individual and group support as well as a caseload that is built up incrementally over several months. Workforce Split 5.1.5 The age profile for NHS workforce in West Dunbartonshire HSCP indicates that there is almost an event split of the workforce under the age of 45 and over the age of 45, with only a subtle difference over the age of 45. The picture is slightly different across West Dunbartonshire Council workforce, which indicates the majority of the workforce are over the age of 45 (64%). Whilst this does not present an immediate retiral risk, we do need to be mindful of the importance of succession planning and maintaining health and wellbeing. 5.1.6 As our workforce gets older, and we continue to rely on them, we will need to put in place policies and strategies to enable experienced workers to remain in the workforce, while maintaining their health and wellbeing. We will also have to put in place succession planning for their eventual replacements. 5.1.7 Around a third of the NHS workforce (24%) are aged 55 years and over. This presents risk of retiral of a sizeable proportion of the workforce within the next five to 10 years. There is a significantly higher risk with West Dunbartonshire Council workforce as almost 40% of the workforce, is aged 55 of over. The chart below shows the split of the workforce over 55 and those under 55. 5.1.8 As an employer we must recognise this, and be ready to put in place reasonable adjustments to allow colleagues to support the workforce do their role as well as when someone does have for example a long term condition, using various forms of flexible working (for example: home working, job sharing, shift working, part time working) to assist with work life balance. Page 89
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P a g e 66 | 70 Table 1 People Count and Age Profile Age Band NHS West Dunbartonshire Total <20 - 5 5 20-24 14 36 50 25-29 66 74 140 30-34 114 105 219 35-39 116 136 252 40-44 103 141 244 45-49 104 141 245 50-54 116 192 308 55-59 119 237 356 60-64 75 239 314 65+ 14 74 88 TOTAL 841 1380 2221 Table 2 Table 3 Page 90
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P a g e 67 | 70 Workforce Gender Balance 5.1.9 As can be seen below West Dunbartonshire HSPC has a greater proportion of female workers than male workers and whilst this is not untypical within the caring profession, the HSCP does need to consider how we encourage greater inclusion within professions as part of recruitment campaigns. Table 4 Staff Turnover 5.1.10 Between April 2023 and March 2024, 297 people left West Dunbartonshire HSCP. The annual turnover rate for West Dunbartonshire Council staff within the HSCP was 16.9% and for the NHS was 8.7%. This represents a very slightly reduced turnover rate compared to the same period in the previous reporting year. The workforce may have been less willing to leave the security of their posts or actively pursue retirement. 5.1.11 To take account of the ageing patient population, as well as the workforce reaching retirement age, both NHS Greater Glasgow and Clyde, and West Dunbartonshire Council are exploring new ways of working and new recruitment and retention strategies, as well as having a continued focus on how we support the health and wellbeing of our workforce. Our workforce plan aims to mitigate the risks of diminishing workforce against area of growing demand. West Dunbartonshire HSCP Approach to Staff Health and Wellbeing 5.2.1 A range of supports are regularly promoted to staff and re-enforced within staff briefings, team meetings and through wellbeing conversations which includes, National Wellbeing Helpline and the National Wellbeing Hub, dedicated wellbeing resources and further support online options for our workforce through employee assistance programmes including support in building resilience, improving wellbeing and, where appropriate, how to lead and support others who may be struggling. 5.2.2 Key priorities for our workforce in support of maintaining a healthy working environment include; personal development, promoting diversity, fair work practice. We want to ensure that employee wellbeing is embedded in the HSCP leadership, culture and people management practice. We want to help equip our people with the wellbeing skills and supports needed to thrive in the workplace. 5.2.3 Our workforce continues to be offered and encouraged to take part in the annual iMatter staff engagement survey. Team action plans have been developed to support improvements and to identify what is important to staff. The HSCP iMatter Lead supported a local focus of these principles, as well as promoting local ownership of the process and understanding of manager and team responsibilities. Within West Dunbartonshire HSCP, there is a continued emphasis on the importance of action Page 91
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P a g e 68 | 70 planning; highlighted below is a comparison of results from 2021, 2022, 2023 and 2024 which demonstrates that staff feel they are cared about, are treated with dignity and respect and are appreciated: iMatter Survey Results 2021 – 2024 (Weighted Index Value) iMatter Question 2021 2022 2023 2024 I feel my direct line manager cares about my health and wellbeing 84 87 86 86 I feel my organisation cares about my health and wellbeing 71 73 73 71 I am treated with dignity and respect as an individual 83 85 86 85 My work gives me a sense of achievement 80 82 83 82 I get the help and support I need from other teams and services within the organisation to do my job 69 70 71 70 I feel appreciated for the work I do 71 75 77 76 I would recommend my organisation as a good place to work 74 75 75 73 Workforce Development, Learning and Collaboration 5.3.1 In addition to core training, our workforce continues to have access to a wide range of learning and development opportunities. During 2024 the Health and Care (Staffing) (Scotland) Act 2019 was implemented. Whilst social workers are not covered within the duties or the Act, our workforce in registered services will be covered. A continual programme of awareness and learning platforms specific to functions has been promoted. 5.3.2 Opportunities for obtaining formal social work qualifications has been made available within the HSCP. During the reporting period we had 5 employees enter formal academic study to obtain a Social Work degree and we are looking to widen this access for a career pathway, in partnership with the Open University. 5.3.3 There have been a number of changes to the West Dunbartonshire Council MHO workforce over the last 12 months, with a number of experienced staff leaving, either due to retiring or to take up posts in other local authorities and, in the case of one MHO, with an agency. 5.3.4 Recruitment to the vacant posts has been a challenge. One full-time post was filled by an MHO who had previously been working in the dual SW/MHO role within Justice Services. Whilst she brought with her a wealth of experience, her move has meant there are is now no dual-role MHOs within West Dunbartonshire Council currently. This has resulted in MHO skills and knowledge being concentrated within the core team and whilst efforts are made to engage with other teams who would benefit from having regular MHO input (such as the Learning Disability and Hospital Discharge teams), there remains a need for dual-role MHOs to be in post within other teams. 5.3.5 Staff supervision has been a key priority for social work and social care staff over the last year. Self- evaluation of staff experience and recording has taken place across Children and Justice services to inform the most recent training and learning for staff in relation to effective supervision for staff. Staff feedback and development of Page 92
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P a g e 69 | 70 champions for Supervision has been an outcome from the learning session with further audit. 5.3.6 A range of statutory training has been commissioned to support learning and development of staff. Two learning and development posts have been agreed and will be recruited to in the future to develop capacity for learning and development and support the Newly Qualified social work year and core training aligned to the priorities for APC and CPC 5.3.7 The experience of West Dunbartonshire is similar to the overall picture nationally, with other local authorities reporting difficulties filling posts and losing experienced MHOs to agencies. Given these challenges, the focus of the MHO service over the next few years will be on training more MHOs from within the existing West Dunbartonshire Council social work workforce and encouraging those who no longer undertake MHO duties back into practice. There is currently one trainee MHO one returning MHO undertaking the course, with them both being expected to start practicing in the summer of 2024. 5.3.8 A proposal for a dedicated MHO service Resource Worker has also been developed and is awaiting conclusion from job evaluation. 5.3.9 Additional funding from Government to Chief Social Work Officers in 2022 to promote service delivery within adult services has been identified to develop a Principle Lead Officer for Social work and depute CSWO, and an adult services reviewing team to support quality assurance and scrutiny of quality of care and support for adults and older people. The posts have not as yet been released for advert and are being considered by the Chief Executive through the SSRG process for all posts where all posts are considered. 5.3.10 Highlighted through this report are the significant issues of staffing availability and recruitment which has had an impact in nearly all areas of service delivery. As West Dunbartonshire HSCP experiences, and plans for, change, a number of resources and programmes are being developed to support our workforce through change. Whilst the effects change are acknowledged, there are levels of challenge due to a shortage of available workers for some sectors which is resulting in higher than normal level of vacancies. 5.3.11 Never has there been a greater need for workforce planning and development to be supported to ensure the continuity of a skilled and committed workforce to deliver high quality services for the future. Throughout 2023/2024 retention of staff is being supported with the development of post qualifying Social Work qualification delivered by the Open University. A number of staff are now actively engaged in post graduate social work programmes following a selection and interview process, involving as part of the panel care experienced or individuals with lived experience of service. Both the training programmes and placement provision are being supported by the wider HSCP. 5.3.12 West Dunbartonshire HSCP has developed a three year workforce plan, over the next 3 years (mainly the next 12 months) to plan, attract, train, employ and nurture staff to help us to deliver the future workforce. As might be expected West Dunbartonshire HSCP are looking to grow and retain our workforce in the next 3 years. Recruitment and retention is a main focus of actions to help us deliver both our Workforce Plan but also encourage employability and extending the number and type of training opportunities available. Significant areas of work include how we supplement our existing workforce and how we look at supporting and developing our workforce going foreword. Page 93
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer (Regeneration and Regulatory) Council: 18 December 2024 Subject: Glasgow City Region City Deal - Update 1. Purpose 1.1 To provide an update on the Exxon Infrastructure Project, and to report on matters being discussed by Glasgow City Region. 2. Recommendations 2.1 It is recommended that Council: i) Notes the update on the Exxon Infrastructure Project; ii) Notes the progress of the Glasgow City Region programme 3. Background 3.1 The Glasgow City Region City Deal Infrastructure programme equates to £1.13bn of investment during period 2015-2035. Projects are progressing and have reached various stages from Strategic, Outline and Full Business Case stages of approval. 3.2 At the meeting of Council on 30 October 2024, Council heard the factors influencing cost increases for the Exxon Infrastructure Project and approved £0.8m of additional capital costs to deliver the project with a reduced scope while maintaining significant economic benefit. 4. Main Issues 4.1 This report provides information on City Region progress and includes the latest position on Exxon site infrastructure project development. Exxon Infrastructure Project 4.2 Since reporting to Council on 30 October, the construction agreement with Balfour Beatty has been signed, and their programme has been confirmed. Enabling works have commenced, and the main construction contract is programmed to start on 27 January 2025. 4.3 A Change Control Request that seeks approval for the variation in project cost and scope has been submitted to Glasgow City Region Programme Management Office and will be considered by the next City Region Cabinet. ITEM 9 Page 95
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City Region Update 4.4 A Glasgow City Region Cabinet Meeting was held on 5 November. Items on the agenda included the Economic Briefing following the UK Government Budget Statement; a progress update on Clyde Metro; an update on Shared Prosperity Fund; a report on Making Glasgow a Living Wage Place; a report the Community Benefits Hub; and a report on Reprogramming and Programme Prioritisation Appraisal. Cabinet also considered and approved Change Control Requests from Glasgow City, East Dunbartonshire, South Lanarkshire and East Renfrewshire Councils. 4.5 The Economic Briefing is available on the Glasgow City Region website by following this link - October Economic Briefing i The briefing draws attention to the challenges in the City Region in aligning workforce skills with industry needs, and asserts that improving educational outcomes and vocational training will bridge this gap, especially in sectors like Advanced Manufacturing and Precision Engineering, which are increasingly reliant on specialised technical skills. The City Region’s Future Skills Programme and Innovation Action Plan are intended to build a resilient and innovative workforce, and address economic disparities and skills gaps across the Region. 4.6 The report to Cabinet on Clyde Metro set out the governance, consultation and resourcing of the Case for Investment. Consultations have been taking place with Member Authorities on the Draft Option Development and Case for Change, which are early stages in the Case for Investment. A meeting was held in October with Council officers and the Clyde Metro team. Discussion points included the extent of the metro in West Dunbartonshire and the first mile/last mile improvements that would be required to improve access to employment and education opportunities for all West Dunbartonshire communities. Officers had requested that the Exxon site and other key economic development hubs are considered, and these are now included within the options development work. Officers have emphasised the important of integration of transport modes, as well as active travel and public realm improvements for the connecting nodes not solely at metro linkages. 4.7 The Cabinet report on UK Shared Prosperity Fund provided an update on spend to date and provided information on the proposed programme extension in 2025/26. The Chancellor confirmed that UK Shared Prosperity Fund will continue for a Year 4 (25/26) but with a budget reduction of approximately 40%. In the existing Shared Prosperity Fund Years 1-3 programme, there had been a requirement for all local authorities to earmark part of their allocation meet the costs of the national adult numeracy programme, Multiply. While some details still have to be confirmed, it has been reported that the requirement to meet the costs of Multiply will not continue. Nor is there anticipated to be a capital component to the allocation. With Multiply and capital projects deducted from West Dunbartonshire’s potential allocation, it is hoped that employability and business support services can be sustained to a similar level during 2025/26. Further reports will be brought to Council as details are confirmed. Page 96
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4.8 The Reprogramming Report provided proposals on the allocation of the funds to be released from the Glasgow Airport Access Project to existing City Deal projects and to one new regional project. Half the available decommitted funds will be allocated to Member Authorities’ City Deal projects to mitigate inflation, and at the request of UK and Scottish Government, half the funds to be invested in a new regional project. Having heard the outcome of the evaluation of the four Expressions of Interest received for the new regional project, Cabinet approved a recommendation to select the Enabling and Delivering Commercial Space Project as the preferred expression of interest. Final approval by UK and Scottish Governments to all reprogrammed funds is expected in early 2025. Three expressions of interest have been submitted by the Council to Glasgow City Region for Delivering and Enabling Commercial Space across the authority. Two of these expressions are for new build commercial units in Alexandria and Clydebank and a further expression for refurbishment within Dumbarton. If successful this will deliver new/refurbished commercial units to a net zero standard and contribute to a more sustainable, resilient and commercial estate. 4.9 The next stages of the development of the Glasgow City Region Investment Zone will be discussed at the February Cabinet meeting. 5 People Implications 5.1 There are several senior officers involved in the Glasgow City Region wider programme as identified at City Region Update paper at Council on 26 August 2021. 6. Financial Implications 6.1 Spend this financial year to date on the Exxon project is £1.7M. Overall spend is £8.5M 7. Risk Analysis 7.1 There are several project risks associated with the development at the Exxon project site, and these are contained within the project risk register and updated by the Project Board on a regular basis. The Project Board is made up of senior officers from all key services. 8. Equalities Impact Assessment 8.1 Previously completed. 9. Consultation 9.1 Consultation with all key stakeholders is progressing as we continue to work as part of the Glasgow City Region. 10 Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that one of its Page 97
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main strategic priorities for the Strategic Plan 2022 - 2027 is ‘A Strong local economy and improved employment opportunities’ 10.2 The proposals within this report are specifically designed to deliver on this priority. Alan Douglas Chief Officer: Regulation and Regeneration Date: 18 December 2024 Person to Contact: Gillian McNamara gillian.mcnamara@west-dunbarton.gov.uk Appendix: None Background Papers: UK Shared Prosperity Fund Report to Housing and Communities Committee 22 August 2022 Glasgow City Region City Deal- Council 13 August 2014. “City Deal Initiative” Clyde Valley Investment Fund- Council 30 April 2014 (Memorandum of Understanding). Clyde Valley Community Planning Partnership – City Deal Initiative – Council 28 August 2013. Wards Affected: All i https://glasgowcityregion.co.uk/economic-briefing-oct-2024/ Page 98
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 18 December 2024 Subject: Financial Update 1. PURPOSE 1.1 To provide an update on the financial challenges facing the Council, the estimated 2025/26 – 2029/30 revenue budget gaps and present the first tranche of saving options for members consideration to help the Council deliver a balanced 2025/26 budget. 1.2 This update has been prepared using three different scenarios, best case, worst case and mid-range. Relatively small variations in assumptions can lead to fairly significant changes in the outcome. Throughout the report the primary focus is on the mid-range, however, where appropriate reference is made to best case and worst case assumptions. 1.3 The report also seeks Council agreement to expand the number of shared posts within the existing Audit & Fraud shared service. 2. RECOMMENDATIONS 2.1 Members are asked to: a) note that the Council’s estimated 2025/26 revenue budget gap has increased from £10.273m as at October 2024 to £10.472m b) approve the £0.052m, rising to £0.061m by 2027/28, of saving options requiring political consideration to contribute toward agreeing a balanced 2025/26 budget and assist with future projected budget gaps c) note the £0.564m, rising to £0.691m by 2027/28, of management adjustments which will contribute to agreeing a balanced 2025/26 budget and assist with future projected budget gaps d) approve an assumed annual increase of 5% on all sales, fees and charges that the Council has authority to set whilst agreeing that Council retains the option to set a different increase on a collective or individual basis when agreeing the annual revenue budget e) agrees to expanding the number of shared Internal Audit posts with Inverclyde Council and notes the ongoing discussions at officer level with a third council regarding a potential larger Internal Audit shared service. ITEM 10 Page 99
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3. BACKGROUND 3.1 On 6 March 2024, the Council agreed a balanced 2024/25 revenue budget, a revised capital budget and revenue estimates for 2025/26-2028/29. That budget report also highlighted estimated future year budget gaps based on a range of assumptions including future Scottish Government funding, inflation and future interest rates. The consequences of the decisions taken by Council on 6 March to agree a balanced 2024/25 budget reduced the cumulative estimated future budget gap in the best case, mid-range and worst case scenarios. Further reports to Council on 19 June 2024 and 30 October 2024 provided further updates on the financial challenges faced by the Council and updated the estimated budget gaps as set out in Exhibit 1. Exhibit 1 – Future Year Estimated Budget Gaps 30 October 2024 Council Report Budget Gap 2025/26 £000 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 Best Case 9,542 19,408 28,126 37,127 50,922 Mid-Range 10,273 21,177 30,812 46,123 55,563 Worst Case 14,514 30,173 43,267 57,736 77,095 4. MAIN ISSUES 4.1 I have revisited the key assumptions and cost pressures detailed in the 30 October 2024 Council report. This is summarised in the paragraphs below. UK Government Autumn Statement and Scottish Government Finance Settlement 4.2 In my 30 October 2024 report I retained my assumption regarding the Council’s financial settlement of: • Best Case - Flat Cash • Mid-Range – Flat Cash • Worst Case - 1.0% reduction. 4.3 On 30 October 2024 the Chancellor of the Exchequer announced significant increases in revenue to be raised through taxation, increased investment in UK public spending and confirmed updated Block Grant funding totals for the Scottish Government. In summary the Scottish Government is receiving £3.4 billion of additional Barnett Consequentials across 2024/25 and 2025/26 with this split between revenue (£2.8 billion) and capital (£0.6 billion). A breakdown of the Barnett Consequentials coming to the Scottish Government is shown in Exhibit 2. Page 100
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Exhibit 2 – Barnett Consequentials for Scotland 2024/25 and 2025/26 Revenue 2024/25 (£ million) Additional 2025/26 (£ million) Overall 2025/26 Increase (£ million) Health & Social Care 790 845 1,635 Education 195 361 556 Levelling Up, Housing and Communities 47 -53 -6 Local Government 6 277 283 Other 395 -69 326 Total Revenue 1,433 1,361 2,794 Capital Health & Social Care 0 89 89 Education 14 51 65 Levelling Up, Housing and Communities 4 141 145 Local Government 0 0 0 Other 54 339 393 Total Capital 72 620 692 Overall Total 1,505 1,981 3,486 4.4 While the consequentials appear to indicate a possible increase in local government funding, the detail will not be known until the draft Scottish Government budget which the Cabinet Secretary for Finance has confirmed will be presented on 4 December. However, it will not be until 12 December that councils will receive their individual settlement details. The complexity of the settlement and the likely extended period of queries raised by S95 Officers across Scotland to clarify elements within it, means it will be difficult for officers to have sufficient time to examine the detailed impact of settlement on the Council in advance of the Council meeting on 18 December. Therefore, it is unlikely that, at the date of the Council meeting, I will be able to advise on the Council’s funding position with any degree of certainty. As such I am maintaining my funding assumptions as set out in paragraph 4.2 however the budget gap will be adjusted to reflect the Council’s settlement in advance of the Council setting its 2025/26 budget on 5 March 2025. 4.5 The provisional dates for the Budget Bill (note these may change as they have not yet been agreed by Parliament) are: • Stage One 04/02/25 • Stage Two 18/02/25 Page 101
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• Stage Three 25/02/25 The debate on the Local Government Finance Order is usually held a week after stage three. 4.6 As part of the UK Budget announced on 30 August 2024, the Chancellor also announced an increase to Employers National Insurance Contributions effective from 1 April 2025. The rate that employers pay in contributions will rise from 13.8% to 15% on a worker's earnings above £175 from April. The threshold at which employers start paying the tax on each employee’s salary will be reduced from £9,100 per year to £5,000. Funding for this change has not yet been included in the Scottish Government Resource Block Grant for 2025/26. At this time the position being advised by COSLA and the UK Government is that the increase in public sector employers’ national insurance will be funded by the UK Government and therefore no cost pressure has been added to the Council’s 2025/26 budget in relation to this at this time. Officers are currently progressing work to fully understand the financial burden this will mean for the Council if the increase is not funded. It is recognised that Scotland has a larger and higher paid public sector workforce and as such, depending on the negotiations between the UK and Scottish Government, there may be a funding gap which may not be known until the UK Government “Spring Supplementary estimates” in February 2025. There is a risk that any Barnett consequential-based funding may not provide sufficient funding to cover the full cost of this change in Scotland. Base Budget Adjustments 4.7 There have been five changes to the Council’s base budget since the 30 October report to Council. 4.8 Base Budget Adjustment 1 – Probation teacher’s salaries In 2024/25 it transpired the average unpromoted teacher salary was slightly less than predicted when the 2024/25 budget was set. A review has been carried out which has confirmed £0.400m can be reduced from the staff costs budget as a consequence of this. 4.9 Base Budget Adjustment 2 – Correct a Recharge in General Fund Budget A previous management adjustment introduced a direct recharge to the HRA for the use of the contact centre based on repairs and number of calls which should have been added to the general fund as income. The charge was made however the income was not reflected in the general fund budget. An adjustment of £0.089m is required to reflect this in the general fund. 4.10 Base Budget Adjustment 3 – Education Maintenance Allowance (EMA) A review of the budget for EMA payments has identified that a small budget Page 102
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reduction of £30,000 can be processed based on the number of eligible pupils. 4.11 Base Budget Adjustment 4 – NDR/water rates for Clydebank Town Hall A review of the non-domestic and water rates budget for Clydebank Town Hall payments has identified that a small budget reduction of £14,000 can be processed based on actual spend against budgeted spend. 4.12 Base Budget Adjustment 5 – Heating Oil in Schools A review of the heating oil costs in primary schools has identified that a small budget reduction of £10,000 can be processed based on some savings through the replacement of oil central heating systems in some primary schools. Cost Pressures 4.13 Generally, services work on the basis of having to contain any cost pressures within current resources, however, there are cost pressures which are unavoidable and need to be factored into future budget processes. There have been six new cost pressures identified since the 30 October 2024 report to Council. 4.14 Cost Pressure 1 - Additional Support Needs (ASN) Costs and Income The Council incurs expenditure for ASN placements at other local authority schools - e.g. specialist schools for severely deaf children but also mainstream schools with children requiring additional learning assistant support. At the point of setting the budget it is necessary to estimate the number of placements that will need to be made and the average placement cost. A review of the estimated expenditure in 2025/26 is showing a shortfall of £0.312m due to the need to place a greater number of children in high-cost specialist schools despite the overall number of children placed outwith West Dunbartonshire being broadly similar to that of 2023/24 (29). The overall average cost per placement has risen from about £20k in 2023/24 to £27k in 2024/25. The Council also receives income for ASN placements from other authorities into West Dunbartonshire Council establishments. Similarly, at budget setting, an estimate is made of the number of placements that will be made in Council establishments. A review of the estimated income in 2025/26 is showing a shortfall of £92,000 against the current budget. Although our charges per placement are higher than in 2023/24 the number of children being placed within the West Dunbartonshire school estate by other local authorities (9) is less than the 13 in 2023/24 and the number implied by the 2024/25 budgeted income. Combined this creates a cost pressure of £0.404m. 4.15 Cost Pressure 2 - Early Years Cross Boundary Charges Page 103
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Parents can put a child in a funded nursery place outwith their local authority area (for example many working parents who live outside Glasgow but work there put their children in Glasgow nurseries). These children are placed in funded provider nurseries rather than Council run facilities. Local authorities charge at the rate they pay their own private providers. The Council pays one of the lowest rates and so charges others at this rate with most of our charges either to Argyll and Bute Council or Glasgow City Council who both charge considerably higher. When setting the budget there was an assumption that the income received from children placed in WDC establishments would broadly offset the expenditure on WDC children placed in other authority establishments however that has not transpired to be the case. The Council pays for 59 children (at higher rates) and receives income for 38. The impact of this is a shortfall of £0.102m compared to the budget. 4.16 Cost Pressure 3 – ASN Riverside There is an increasing number of pupils with a complexity of Additional Support Needs in West Dunbartonshire Council. This has previously been addressed with the expansion of our Primary ASN provision with the creation of ASN bases however, in March 2022 the necessity to expand the secondary provision as this cohort moved through primary to secondary school was recognised by the Education Committee. Accordingly, a threefold strategy was agreed involving: • provision of additional capacity at Kilpatrick School • adaptation of an unused part of the Choices facility • adaptation of the vacated Riverside facility at St Martin’s Primary to cater for pupils with severe and complex learning needs particularly those with Autism Spectrum Disorder. The new facility at Riverside with a 36 pupil capacity is scheduled to open in August 2025. However, given the number and age of the pupils coming through the primary support bases it is not necessary to open at full capacity immediately. In 2025/26 it will open with 2 classes (12 pupils) rising to 4 classes (24 pupils) in 2026/27 before reaching capacity in 2027/28. Staffing requirements will increase accordingly which creates a cost pressure of £0.090m in 2025/26, rising to £0.369m in 2026/27 and £0.446m in 2027/28. 4.17 Other Cost Pressures under £100k In addition to the larger cost pressures detailed above there are four which are under £100k in value. • £85k for VAT charges on Artizan units where the VAT charges cannot be passed onto existing tenancies until such time as those tenancies are taken on by a new tenant. • £77k for school meal holiday payments being in excess of the sum allocated by the Scottish Government as the Council’s eligible caseload Page 104
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is about 15% higher than the caseload implicit in the distribution allocation. • £63k for Vehicle Testing Unit income which has never fully recovered since numbers reduced during the COVID pandemic. • £6k for rental income achieved on Balloch Park Kiosk and Levengrove Pavilion being slightly under budgeted estimates. Sales, Fees and Charges 4.18 The Council’s financial planning has historically assumed a 4% annual increase in sales, fees and charges (SFC). For the past two years Council, as part of the budget process, has taken a decision to increase SFC by 10% rather than 4%. On that basis the annual increase is now assumed to be 5% rather than 4%, this reduces the 2025/26 budget gap by £0.085m. The Council is asked to approve this assumed annual increase assumption which will be applied going forward. The increased assumption is built into the 2025/26 budget gap. When agreeing the budget on 6 March 2024 the Council may wish to consider an option to increase fees and charges by a different percentage and may also consider fees for specific areas as part of saving options where a different approach to the annual 5% may be considered. Revised Mid-Range Estimated Budget Gap 4.19 Exhibit 3 sets out the revised cumulative estimated budget gap in the mid- range in 2025/26 – 2029/30. It illustrates that, prior to any measures to balance the budget, the Council is faced with a budget gap of £10.472m in 2025/26 rising cumulatively to £55.688m in 2029/30. Exhibit 3 – Revised Mid-Range Estimated Budget Gaps (Cumulative) Para 2025/26 (£000) 2026/27 (£000) 2027/28 (£000) 2028/29 (£000) 2029/30 (£000) Budget Gap 30 October 2024 3.1 10,273 21,117 30,812 46,123 55,563 Probation Teacher Salaries 4.8 (400) (400) (400) (400) (400) Recharge Budget Adjustment 4.9 (89) (89) (89) (89) (89) Education Maintenance Allowance 4.10 (30) (30) (30) (30) (30) Clydebank Town Hall Rates 4.11 (14) (14) (14) (14) (14) Heating Oil 4.12 (10) (10) (10) (10) (10) ASN Costs & Income 4.14 404 404 404 404 404 Early Years Cross Boundary Charges 4.15 102 102 102 102 102 ASN Riverside 4.16 90 369 446 446 446 Artizan VAT 4.17 85 85 85 85 85 Page 105
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School Meal Holiday Payments 4.17 77 77 77 77 77 Vehicle Testing Income 4.17 63 63 63 63 63 Rental Income 4.17 6 6 6 6 6 5% Sales, Fees & Charges 4.18 (85) (179) (280) (388) (515) Revised Estimated Budget Gap 10,472 21,501 31,172 46,375 55,688 Measures to Balance the Budget 4.20 Between May and December 2024 officers have been developing a range of saving options to help address the budget gap. They are categorised as either: • Political options – options which require elected member approval • Management adjustments – options which can be implemented as part of normal business, have no frontline service impact and the only staff impact can be managed through existing vacancies 4.21 A first tranche of saving options has been finalised. The political options are presented to Council for approval and the management adjustments are presented for noting. The savings options identified to date propose a potential reduction to the Council’s establishment of 5.8 FTE assuming they are all accepted by Council. They are summarised in Exhibit 4. Exhibit 4 – December 2024 Saving Options 2025/26 2026/27 2027/28 (and future years) Category No Saving (£,000) FTE Saving (£,000) FTE Saving (£,000) FTE Political 4 52 0.0 57 0.0 61 0.0 Mgt Adjustments 16 564 5.8 691 5.8 691 5.8 Total 20 616 5.8 748 5.8 752 5.8 4.22 A more detailed breakdown of these saving options is provided in appendix 1 and 2 with appendices 3 and 4 providing the detail of each saving option including the risk/impact associated with them. 4.23 The Chief Executive is authorised to progress voluntary severance and early retirement offers, where appropriate, to support the 2025/26 budget savings exercise. Where appropriate targeted discussions will commence in service areas following the Council decision. 4.24 Exhibit 5 sets out the revised 2025/26-2029/30 cumulative budget gap after taking account of the proposed measures to balance the budget. This reduces the estimated 2025/26 budget gap to £9.856m however this would be on the basis all attached measures to balance the budget are approved and that the key assumptions made when estimating the 2025/26 budget gap are accurate. Page 106
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Exhibit 5 Updated Mid-Range Estimated Budget Gaps (Cumulative) after Measures to Balance the Budget Para 2025/26 (£000) 2026/27 (£000) 2027/28 (£000) 2028/29 (£000) 2029/30 (£000) Revised Estimated Budget Gap before Measures to Balance Budget 4.19 10,472 21,501 31,172 46,375 55,688 Political Saving Options 4.21 (52) (57) (61) (61) (61) Management Adjustments 4.21 (564) (691) (691) (691) (691) Revised Estimated Budget Gap After Measures to Balance Budget 9,856 20,753 30,420 45,623 54,936 4.25 It is clear from Exhibit 5 that further work is required to develop options to bridge the remaining estimated budget gap and officers will bring forward a second tranche of saving options as part of the budget report to be considered by Council when setting the 2025/26 budget. Other Issues 4.26 Health and Social Care Partnership The Council, at the budget meeting on 6 March 2024, agreed an HSCP requisition of £85.029m (subsequently increased to £88.945m as reported to Council in June to reflect funding provided by Scottish Government to fund the pay uplift to a minimum rate of £12 per hour for workers providing direct adult social care in the third and independent sectors). There is a working assumption that the future allocation to the HSCP is on the basis of ‘flat cash’ plus the appropriate share of the Health & Social Care funding commitments made by the Scottish Government. However this is only an assumption and the HSCP requisition will be a matter for Council to consider as part of the budget process. 4.27 Council Tax The estimated budget gap makes no assumption over future Council Tax increases as setting the Council Tax is a matter for Council to decide when agreeing the 2025/26 budget on 5 March 2025. Members will be aware that there was no Council Tax increase in 2023/24 with funding of £2.219m made available by the Scottish Government equivalent to a 5% increase as part of the original Revenue Support Grant settlement with an additional £1.129m of funding in March 2024 (after the Council set its budget) . The two key factors to consider in relation to the Council Tax freeze are: Page 107
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1. The Council could have raised Council Tax by more than the funded 5% however would have needed to forego the funding. 2. A freeze erodes the Council Tax base so does not only affect the year of the freeze it also impacts the tax base in perpetuity. 4.28 The budget conversation exercise recently carried out by the Council (reported to Council on 30 October 2024) included the question: Would you be prepared to pay more Council tax in order to reduce the savings required? The response was: • Yes – 50.07% (51.11% of those responding) • No – 47.88% (48.88% of those responding) • No response - 2.05% 4.29 Prior to the 2023/24 Council Tax freeze being announced some councils were considering Council Tax increases far in excess of the 5% funded by the Scottish Government. In particular Argyll and Bute Council agreed a 10% increase which was subsequently reversed and Inverclyde Council have agreed an 8.2% increase which will (subject to any subsequent changes be added to any 25/26 Council tax rise. Furthermore: 1. Perth and Kinross Council - as part of their Medium Term Financial Strategy, Perth and Kinross Council have endorsed a Council Tax Strategy of increases of 10% in 2025/26, and indicative rises of 10% in 2026/27 and 6% in 2027/28, both of which will be subject to final budget setting for these years. 2. North Lanarkshire Council - the NLC Policy and Strategy Committee, on 5 December, are considering a council tax strategy which includes a range of council tax increase scenarios as set out below. Exhibit 6 illustrates the impact of 10%, 15% and 20% increases on Band D Council Tax rates and the additional revenue it would generate. Page 108
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Exhibit 6 – Impact of 10%, 15% and 20% CT Increases CT Increase 2024/25 Band D CT (£) 2025/26 Band D CT (£) Annual Increase (£) Weekly Increase (£) Additional Revenue (£) 10% 1,398.98 1,538.88 139.90 2.69 4,070,000 15% 1,398.98 1,608.83 209.85 4.04 6,105,000 20% 1,398.98 1,678.78 279.80 5.38 8,140,000 4.30 Internal Audit Provision West Dunbartonshire and Inverclyde Councils have shared the post of Chief Internal Auditor (CIA) since 2020. The intention at the time was to move towards a “deeper” sharing within the team but this has not progressed as the posts impacted were populated. In 2023 the Council agreed to continue the sharing of Internal Audit Services with the same report advising that the two councils were also in the early stages of discussion with other councils regarding expanding the model further to improve resilience. Exploratory talks with a further council regarding expanding the sharing of the service further have continued during 2024 and, subject to further consideration, it is intended to present a report to elected members early in 2025 on progress/options. It should be noted that the proposals in this report are not affected by this potential proposal. 4.31 The audit team within Inverclyde has a post of Senior Fraud Investigation Officer which has been vacant since April 2024. At the same time, West Dunbartonshire Council have a vacant qualified Internal Auditor post. The shared Chief Internal Auditor (CIA) and the Chief Financial Officers of both councils believe filling these two roles on a shared basis would provide greater resilience in both councils by allowing greater delegation by the CIA but also improved support to the respective Audit Committees and IJB Audit Committees. It is expected that there would be very little in the way of net financial implications and in the event that these arose, it is likely they would be absorbed within existing budgets. 5. PEOPLE IMPLICATIONS 5.1 The potential staffing implications are shown within the savings options appended to this report and will be subject to consultation processes where appropriate and managed in accordance with the Council’s Switch Policy (Organisational Change). 6. FINANCIAL AND PROCUREMENT IMPLICATIONS 6.1 The report sets out the estimated revenue budget gaps in 2025/26-2029/30. The financial implications arising from the ongoing budget process are detailed in the report and appendices. There are no direct procurement implications arising from this report. 7. RISK ANALYSIS Page 109
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7.1 None directly from this report but any proposals to address the estimated budget gap will need to consider risk. 8. EQUALITIES IMPACT ASSESSMENT (EIA) 8.1 All individual savings options have been screened and where relevant, impact assessed. Individual EIAs are appended to the report at Appendix 5. 9. CONSULTATION 9.1 The views of all Chief Officers have been requested on this report and feedback incorporated herein. 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 strategic priorities of the Council’s Strategic Plan. 10.2 The General Services revenue budget contributes to all categories by providing funding in specific areas to help the Council achieve and develop these priorities. Laurence Slavin Chief Officer - Resources Date: 5 December 2024 Person to Contact: Laurence Slavin, Chief Officer - Resources E-mail: laurence.slavin@west-dunbarton.gov.uk Appendices: Appendix 1 – Summary of Political Saving Options Appendix 2 – Summary of Management Adjustments Appendix 3 – Detailed Political Saving Options Appendix 4 – Detailed Management Adjustments Appendix 5 – Equality Impact Assessments for All Saving Options Background Papers: Budget Report to Council - 6 March 2024 Financial Update Report to Council – 19 June 2024 Financial Update Report to Council – 30 October 2024 Page 110
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Appendix 1 – Summary of Political Saving Options 2025/26 2026/27 2027/28 Ref: CO Saving Option Saving (£,000) FTE Saving (£,000) FTE Saving (£,000) FTE RN03 Gail Macfarlane Review Allotment charges 5 0 10 0 14.5 0 RN26 Gail Macfarlane Special Uplift Charge 21.5 0 21.5 0 21.5 0 RR06 Alan Douglas Revised Legal Charges for Transactions 25 0 25 0 25 0 TOTALS 51.5 0.0 56.5 0.0 61 0.0 Page 111
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Appendix 2 – Summary of Management Adjustments 2025/26 2026/27 2027/28 Ref: CO Saving Option Saving (£,000) FTE Saving (£,000) FTE Saving (£,000) FTE CCF05 Amanda Graham Increase events income 8 0 8 0 8 0 CCF06 Amanda Graham Review film locations and formalise fee arrangements 8 0 8 0 8 0 CCF13 Amanda Graham Remove telephone survey 9 0 9 0 9 0 CCF15 Amanda Graham Performance and Strategy Budget Efficiencies 9 0 9 0 9 0 CCF16 Amanda Graham Reduce design budget 12 0 12 0 12 0 EDU25 Laura Mason Redesign Leadership in Children, Young People and Families Teams 6 0.8 21 0.8 21 0.8 PT01 Victoria Rogers Scottish Wide Area Network Savings 0 0 104 0 104 0 PT02 Victoria Rogers Vodafone contract saving 23 0 23 0 23 0 RES09 Laurence Slavin Review of charges for use of offices by external parties 7 0 15 0 15 0 RES13 Laurence Slavin Historical lease review 15 0 15 0 15 0 RES15 Laurence Slavin Reduce size of Building Services 228 4.5 228 4.5 228 4.5 RN01 Gail Macfarlane Stopping Saturday burials 10 0 10 0 10 0 RN07 Gail Macfarlane Capitalise Play Park Fitter 40 0 40 0 40 0 RN09 Gail Macfarlane Further replacement of hire vehicles 171 0 171 0 171 0 RR09 Alan Douglas Registrars 18 0.5 18 0.5 18 0.5 TOTALS 564 5.8 691 5.8 691 5.8 Page 112
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Appendix 3 – Detailed Political Saving Options 2025/26 SAVING OPTION Chief Officer: Gail Macfarlane Saving Ref: RN03 Saving Title Allotment Charges Summary of Savings Proposal This option is to increase annual allotment charges from the existing charge of £23.47 per year to: 2025/26 - £60 per annum 2026/27 - £90 per annum 2027/28 - £120 per annum The Council has the 88 allotment sites at the current time as set out below: Location Number of Sites Castlegreen Street, Dumbarton 31 Round Riding Road, Dumbarton 7 Dillichip, Bonhill 50 Total 88 There are a further 50 sites in progress at Overburn, Dumbarton which will be available Summer 2025. This will increase the total number of sites to 138. There is currently a waiting list for an allotment of over 600 residents with a 10-year waiting list. At the current annual charge of £23.47, 138 sites would generate £3,239 in income/per annum (the current 2024/25 income based on 88 sites is £2,065) The annual rate currently increases in line with the Council’s decision on fees and charges. The updated charge and associated income is proposed to be: Year Existing 88 Sites Annual Charge Overburn 50 Sites Annual Charge Total Projected Income Current Budgeted Income Saving 2025/26 £60 £40* £7,280 £2,065 £5,125 Page 113
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2026/27 £90 £90 £12,420 £2,065 £10,355 2027/28 £120 £120 £16,560 £2,065 £14,495 *part year charge for Overburn to reflect that sites not available for full year. Impact and Risk Associated with Proposed Savings Service Risk: There may be a reduction in uptake should charges increase but given the waiting list this is considered unlikely. The proposed charges have been reviewed against other local authorities and would appear to be significantly lower than neighbouring local authorities. People Risk: No FTE implication Reputational Risk: Residents on lower incomes may no longer be able to afford to have an allotment Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 5 0 10 0 14.5 0 FTE impact delivered through existing vacancies: N/A Equality Impact Assessment Completed: Yes EIA No: 1139 Page 114
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2025/26 SAVING OPTION Chief Officer: Gail Macfarlane Saving Ref: RN26 Saving Title Review of Special Uplift Charge and Policy Summary of Savings Proposal The current fee for residents who request a special uplift is £29.48 for up to 10 items. Of the 10 items, there is no limit on how many can be large objects including beds and sofas. This means that often special uplifts require significant resource and time to undertake, and planning work can be challenging. Under this proposal, a special uplift fee of £40 would be implemented with the maximum number of items collected per uplift amended to five. This will ensure programming of work is accurate and reduce required time per appointment, making the service more efficient and enhancing the customer experience. Householders will still be able to dispose of any bulky household waste free of charge by taking the item to the Council's household waste recycling centres at Dalmoak and Old Kilpatrick. Impact and Risk Associated with Proposed Savings Service Risk: It is anticipated that the updated charging scheme will improve the programming of collections and resources will be allocated more efficiently. There is a risk that if the new fee is considered too high, there may be increased flytipping which would put additional pressure on the service. People Risk: N/A Reputational Risk: There is a reputational risk of increasing this cost. If householders do not consider the cost to be fair, satisfaction with the service and Council is likely to decrease. Any increase in fly tipping as a result of increased charges reflects negatively on the service. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 23.5 0 23.5 0 23.5 0 Equality Impact Assessment Completed: Yes EIA No: 1135 Page 115
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2025/26 SAVING OPTION Chief Officer: Alan Douglas Saving Ref: RR06 Saving Title Revised Legal Charges for Transactions Summary of Savings Proposal The Council charges legal fees to parties purchasing or leasing property from the organisation. Currently this fee is significantly less than equivalent commercial rates charged by private sector solicitor firms for work of a similar complexity. Under this proposal, the Council would review legal charges currently in place, increasing to bring them in line with average commercial rates for this work. This is expected to generate additional income of around £25k per annum. Impact and Risk Associated with Proposed Savings Service Risk: There is a risk that an increase in legal fees may dissuade some parties from leasing or buying a property here is also a possibility that if the fee is seen as prohibitive, a tenant/purchaser may refuse to pay, leaving the sum to be deducted from the Assets account. People Risk: N/A Reputational Risk: There is a risk that any significant increase in legal fees impacts negatively on the Council’s reputation, however by ensuring new fees are in line with the average commercial rate, this will be minimised. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 25 0 25 0 25 0 FTE impact delivered through existing vacancies: 0 Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target. Equality Impact Assessment Completed: Yes EIA No: 1165 Page 116
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Appendix 4 – Detailed Management Adjustments 2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Amanda Graham Saving Ref: CCF05 Saving Title Increase income from events Summary of Savings Proposal West Dunbartonshire has a number of attractive outdoor spaces including parks and other greenspace which are well served by public transport links. An opportunity exists to market these spaces to national event organisers and generate an income from pitch hire for the likes of food stalls or from hiring the spaces for hosting small scale entertainment events. This could supplement the existing events offer of the Pipe Band Championships, fireworks display and family fun days or offer the opportunity for new standalone events. Impact and Risk Associated with Proposed Savings Service Risk: The work would be delivered from within the Communications team and would require a review of work streams to accommodate. The Council currently generates income from traders at the Pipe Band Championships and fireworks display. This would be a new approach for the Council of actively seeking income beyond this and from marketing greenspaces for external events. People Risk: N/A Reputational Risk: This could have a positive impact through increased exposure for the Council and area. There is a risk that if the interest is not present from the market then the anticipated income may not be generated however the Council has had significant interest from traders and vendors for the current events offer. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 8 0 8 0 8 0 FTE impact delivered through existing vacancies: N/A Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target. Equality Impact Assessment Completed: Yes/ EIA No: 1111 Page 117
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Amanda Graham Saving Ref: CCF06 Saving Title Increase income from promoting film locations Summary of Savings Proposal Currently the Council receives ad-hoc requests from media companies to film in the West Dunbartonshire area. This generates a small income from the hire of specific buildings or locations with recent examples including filming for BBC Scotland dramas and documentaries. An opportunity exists to proactively promote the available locations in West Dunbartonshire to media outlets, creating bespoke pages on the website, and also to streamline the process and introduce a clear fee structure. Impact and Risk Associated with Proposed Savings Service Risk: The income is not guaranteed and is very much dependent on the nature of the programme or film and in turn the backdrop sought. There is a risk the income does not materialise. Creating bespoke webpages with strong imagery demonstrating the area’s potential, clear information on the process and fee structure in tandem with engaging with location agents and agencies such as Creative Scotland will help to mitigate against the risk of failing to generate income. People Risk: N/A Reputational Risk: The option could have a positive impact through increased exposure for the Council and area. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 8 0 8 0 8 0 FTE impact delivered through existing vacancies: 0 Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target. Equality Impact Assessment Completed: Yes EIA No: 1114 Page 118
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Amanda Graham Saving Ref: CCF13 Saving Title Remove telephone survey Summary of Savings Proposal As part of the Council’s work to monitor, evaluate and respond to performance, a monthly telephone resident satisfaction survey is undertaken by an external contractor, who surveys around 900 residents per annum to capture a representative reflection of how residents view the Council and gauge satisfaction with a range of services. The contractor also provides detailed data analysis which provides further insight into resident satisfaction. Due to changes in the way people communicate, it has been more challenging to reach residents via telephone in recent years which has impacted the quality of information gathered. Under this option, the telephone survey would be withdrawn and instead, members of the Citizens’ Panel would be asked to complete the satisfaction questions. Risk Associated with Proposed Savings Service Risk: There is a resource implication if satisfaction questions move to Citizens’ Panel as this is undertaken by the current Performance and Strategy team. As this is undertaken once a year, other work could be reviewed and planned accordingly. It is likely the number of responses received would be significantly reduced from the current telephone survey level. People Risk: N/A Reputational Risk: Resident satisfaction is a key measure of how the Council is performing, and within the Strategic Plan six indicators support this measure. Perception of the Council is also measured using five key indicators. The results of the telephone satisfaction survey are published on the website and reported to Council as part of the annual report. The impact would be mitigated by issuing the question set to the Citizens’ Panel and results would continue to be reported and used for performance monitoring and service planning as currently. The detailed data analysis currently provided by the telephone survey cannot be undertaken by the Performance and Strategy team. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 9 0 9 0 9 0 FTE impact delivered through existing vacancies: N/A Equality Impact Assessment Completed: Yes EIA No: 1119 Page 119
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Amanda Graham Saving Ref: CCF15 Saving Title Performance and Strategy Budget Efficiencies Summary of Savings Proposal A reduction in hours associated with one of the Performance and Strategy Business Partner roles means this post is now 0.8FTE, while the budget remains at 1.0FTE. Under this option, the budget for this post will be reduced by the 0.2FTE to reflect the change in hours, generating a saving of £9,000. Risk Associated with Proposed Savings Service Risk: There is no impact on current service delivery as the hours of this post reduced some time ago and work was reviewed and planned accordingly at that time. People Risk: A 0.2 FTE vacancy would be removed from the establishment. Reputational Risk: N/A Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 9 0.2 9 0.2 9 0.2 FTE impact delivered through existing vacancies: 0.2 Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target. Equality Impact Assessment Completed: Yes EIA No: 1112 Page 120
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Amanda Graham Saving Ref: CCF16 Saving Title Reduce design budget Summary of Savings Proposal The Communications Team currently supports the design of a number of key strategic documents, including the Annual Report, via an external contractor. Following a review of spend, we have identified an opportunity to reduce the budget allocated for this purpose without impacting on service. Under this option, the budget would reduce to £3,000 per annum generating a saving of £12,000 per annum. Risk Associated with Proposed Savings Service Risk: None. Spend has never exceeded the proposed £3,000 budget which will remain and current service levels will be maintained. People Risk: N/A Reputational Risk: N/A Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 12 0 12 0 12 0 FTE impact delivered through existing vacancies: N/A Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target. Equality Impact Assessment Completed: Yes EIA No: 1109 Page 121
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer Laura Mason Saving Ref: EDU25 Saving Title Redesign of Leadership model for Professional Development and Children’s Services Teams Summary of Savings Proposal The Professional Learning and Children’s Services teams are responsible for offering continued opportunities for professional development to employees within Education. They support employees to maintain standards of registration, ensuring continued General Teaching Council Scotland (GTCS) and Scottish Social Services Council (SSSC) registration. The team also ensures employees have the appropriate training to meet the increased level of needs of children, young people and families via bespoke Additional Support Needs (ASN) professional learning, team teaching and targeted interventions. In addition, the team provide support to pupils and families through the Collaborative Support Service and Whole Family Wellbeing programme. The Professional Learning team is led by a 1.0 FTE Education Support Officer and a 1.0 FTE Principal Teacher, while the Children’s Services Team is led by 1.0 FTE Deputy Head Teacher and 1.0 FTE Principal Teacher. Under this proposal, pupils and employees would continue to receive support from these teams, with service delivery and leadership reviewed to create a more efficient delivery model. This will reflect changing needs while continuing to prioritise employees’ development and supporting pupils and families to improve outcomes. As part of the redesign, the current temporary Education Support Officer post will be replaced with a new 1.0 FTE Education Officer – Professional Learning and Leadership post to oversee the team and delivery of service. This role will be responsible for delivery of the revised model of professional learning; leading liaison with partners such as GTCS and Universities; supporting the upholding of Standards and gaining professional accreditation; and delivery of revised models of supporting Newly Qualified Teachers (NQTs) in schools. Due to the addition of the post above, a seconded Principal Teacher post currently operating as 1FTE can be reduced to 0.2FTE, with responsibility for providing resilience and supporting delivery of specific programmes of learning. In addition, a new 1.0 FTE Education Officer – Children’s services post will be created to oversee the Whole Family Wellbeing programme; planning and delivery of professional learning and development for ASN; and family learning and engagement. A 1.0 FTE Whole Family Wellbeing coordinator post will be created to support this. Due to these additions, the current 1.0FTE Deputy Head Teacher post overseeing the Collaborative Support Service can be removed. Impact and Risk Associated with Proposed Savings Service Risk: Any reduction in workforce presents a risk to service delivery and improvement due to less available resource. This will be mitigated by the redesign and introduction of posts which will ensure professional learning and support for employees, pupils and family is maintained. The proposed model will help to Page 122
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address the potential costs of wage conservation for those in acting posts and facilitates the expansion of wider council family supports via Whole Family Wellbeing programme. People Risk: The proposed model can be introduced with limited disruption to permanent employees because of imminent retirement of the existing DHT and the temporary nature of the seconded Education Support Officer Post. One seconded Officer will revert to her substantive Class Teacher post for 4 days of the week and retain her seconded PT post in the leadership team one day per week. Reduced resource means there is a risk that teaching staff do not feel supported to maintain professional updates and standards. This could lead to increased contact from Trade Unions and staff in need of guidance. Reputational Risk: There is a reputational risk if standards of education decline, and if employees do not feel supported. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 6 0.8 21 0.8 21 0.8 FTE impact delivered through existing vacancies: 0 Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target Equality Impact Assessment Completed: Yes EIA No: 1051 Page 123
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Victoria Rogers Saving Ref: PT01 Saving Title SWAN 2.0 (Scottish Wide Area Network) Savings Summary of Savings Proposal The Scottish Wide Area Network (SWAN) programme was set up to establish a single shared network and common ICT infrastructure across Scotland’s entire public sector. The Council have utilised this national framework agreement since 2018 for managing Wide Area Network (WAN) services. The original framework agreement expired in March 2023 with a runoff period up to March 2026 and a new iteration of this service (SWAN 2.0) is available. Due to a reduction in the Council’s requirement for line rentals, it is possible to migrate to SWAN 2.0 and significantly improve bandwidths for council WAN circuits while generating a saving. 20 Council sites have migrated to the new framework contract since August 2024, with another 8 sites on track to be migrated by the end of December 2024. The remainder of council sites (82 in total) will be migrated by July 2025. Current SWAN contract revenue costs: £283,972 per annum. New SWAN 2.0 contract revenue costs: £179,067 per annum. This will deliver an annual saving of approximately £104,905 once all sites have been migrated to the new framework pricing. Impact and Risk Associated with Proposed Savings Service Risk: There is a risk supplier delays and transition failures could affect the migration timeline causing delays to achieving monthly rental savings for individual circuits. In year savings could be affected by rental being paid for both old and new circuits for a short period of time until all lines are migrated. People Risk: N/A Reputational Risk: This project will increase bandwidth capacity at all council sites and have a positive impact to employees’ digital workplace experience. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 0 0 104 0 104 0 FTE impact delivered through existing vacancies: N/A Equality Impact Assessment Completed: YES EIA No: 795 Page 124
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2025/26 – MANAGEMENT ADJUSTMENT Chief Officer: Victoria Rogers Saving Ref: PT02 Saving Title Reduction in Mobile Phone Usage & Costs Summary of Savings Proposal Mobile Phone Reduction - An exercise to reduce Council mobile phone provision across all service areas has been in progress during 2023/24. A review of all mobile phone contracts was undertaken to identify, and terminate, any sims not in use. An initial savings target of £22k was agreed and has now been achieved. The exercise is continuing during 2024/25 and there is opportunity to deliver further estimated savings of approximately £5k per annum. New Contract -The Council has finalised a new contract with Vodafone (UK) Ltd which was awarded via the Scots Gov Mobile Voice and Data Framework. The new contract offers the same voice and data plans with approximately 45% saving on current monthly spend. This is estimated to save a total of £18k per annum. Impact and Risk Associated with Proposed Savings Service Risk: Access to Council email/diary or MS Teams can be maintained via employees’ personal phones as secure authentication measures are established. Some employees may choose not to use their personal phone, and therefore would be unable to access Council emails remotely. People Risk: N/A Reputational Risk: N/A Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 23 0 23 0 23 0 FTE impact delivered through existing vacancies: N/A Equality Impact Assessment: YES EIA No: 988 Page 125
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Laurence Slavin Saving Ref: RES09 Saving Title Review of charges for use of offices to external parties Summary of Savings Proposal It is proposed to review current capacity and usage across the Council operational estate to consider options for generating income – for example leasing floor space to interested partners or charging for use of office accommodation to partner organisations based within our operational estate. The target is to generate efficiencies / income of £7k in 2025/26 rising cumulatively to £15k in future years. Impact and Risk Associated with Proposed Savings Service Risk: N/A People Risk: N/A Reputational Risk: N/A Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 7 0 15 0 15 0 FTE impact delivered through existing vacancies: 0 Equality Impact Assessment Completed: Yes EIA No: 1144 Page 126
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer Laurence Slavin Saving Ref: RES13 Saving Title Historical lease review Summary of Savings Proposal A review of 31 historical leases by previous district/regional authorities which were offered at below market rent values or no rent was performed as part of a 2023/24 saving option and generated savings in 2023/24 and 2024/25. A further review has taken place to review the realised saving against the estimated saving and a further £15k can be assumed as annual income for 2025/26. Impact and Risk Associated with Proposed Savings Service Risk: N/A People Risk: N/A Reputational Risk: Community groups are likely to be affected and may not have funding to continue operating but alternative lower cost options will be identified if possible. Saving 2025/26 2026/27 2027/26 £000 FTE £000 FTE £000 FTE 15 0 15 0 15 0 Equality Impact Assessment Completed: Yes EIA No: 1142 Page 127
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer Laurence Slavin Saving Ref: RES15 Saving Title Reduce size of Building Services Summary of Savings Proposal The Council’s Building Services team has an equivalent of 4.5 FTE vacancies (combination of whole posts and employees who wish to reduce their hours through flexible retirement). The total employee costs relating to this is £228k. This option would remove these vacancies from the Council establishment. Impact and Risk Associated with Proposed Savings Service Risk: Council properties will not be inspected as frequently which could create a revenue pressure though increased revenue and maintenance costs to prevent establishments closing. This due to capital works not being carried out in a timely manner and/or a need to use external contractors if there is insufficient internal capacity. People Risk: N/A Reputational Risk: N/A Saving 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 228 4.5 228 4.5 228 4.5 FTE impact delivered through existing vacancies: 4.5 Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target Equality Impact Assessment Completed: Yes EIA No: 1143 Page 128
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Gail Macfarlane Saving Ref: RN01 Saving Title Ceasing Saturday Funerals Summary of Savings Proposal The Council manages the following cemeteries and churchyards: • New Dumbarton • Dumbarton • Vale of Leven • North Dalnottar • Old Dalnottar • Kilbowie • Old Kilpatrick • Kilmaronock The staffing of this is undertaken through standby and overtime. The service is unable to resource the operational workforce required to work on the Saturday. Consequently the ability to book Saturday funerals has been suspended since Spring 2024. This option would cease the provision of funerals on Saturdays on a permanent basis saving £10k per annum. Impact and Risk Associated with Proposed Savings Service Risk: There would be no recommencement of Saturday burial services. This may create delays accessing a burial appointment. People Risk: There would be a reduction in standby and overtime payments, no reduction in FTE. Reputational Risk: There have been limited Saturday funerals requested however this does mean users may be required to wait for longer to access a time in periods where the resource is busy. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 10 0 10 0 10 0 FTE impact delivered through existing vacancies: NA Equality Impact Assessment Completed: Yes EIA No: 1137 Page 129
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Gail Macfarlane Saving Ref: RN07 Saving Title Capitalisation of Play Park Fitter Summary of Savings Proposal This management adjustment will capitalise £40k of staffing costs for a play park fitter for a period of 5 years to deliver the playpark upgrade programme. Impact and Risk Associated with Proposed Savings Service Risk: N/A People Risk: N/A Reputational Risk: N/A Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 40 0 40 0 40 0 FTE impact delivered through existing vacancies: NA Equality Impact Assessment Completed: Yes EIA No: 1140 Page 130
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Gail Macfarlane Saving Ref: RN09 Saving Title Phase 2 Hire Vehicles Summary of Savings Proposal The Council currently hires a number of vehicles that are required to undertake essential service delivery within Roads, spending approximately £194,000 per year. This includes five gritters which are hired for circa 26 weeks at a cost of approximately £119,000 per year and hot box plant with associated vehicles to deliver defect repairs and resurfacing which are hired for a similar period at a cost of approximately £75,000 per year. The gritters are used throughout winter, and the majority of the work undertaken by the hot box vehicles is done in spring and summer. Under this option, the Council would stop hiring these vehicles and instead purchase five new gritters. The gritters can be used as hot box vehicles after the winter period to ensure vehicles are in use year-round. The borrowing costs are funded through revenue and are estimated at £23,000 per year therefore a full year net saving is anticipated at £171,000. Risk Associated with Proposed Savings Service Risk: This proposal will increase efficiency and reliability as the service will have more control over accessing vehicles when required. This change will also mean the service has the ability to undertake permanent repairs for other services within council such as housing, grounds etc at a lower cost. People Risk: N/A Reputational Risk: N/A Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 131 0 171 0 171 0 FTE impact delivered through existing vacancies: N/A Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target. Equality Impact Assessment Completed: Yes EIA No: 1129 Page 131
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2025/26 MANAGEMENT ADJUSTMENT Chief Officer: Alan Douglas Saving Ref: RR09 Saving Title Assistant Registrar post Summary of Savings Proposal Registration Services is currently made up 6.4 FTE posts, which includes 1.0 FTE G8 Senior Registrar, 1.6 FTE G5 Depute Registrar, 3.8 FTE G4 Assistant Registrar. The team currently has a vacant 0.5FTE Assistant Registrar post in its establishment and under this option, the post would be removed generating a saving of £18k per annum. Impact and Risk Associated with Proposed Savings Service Risk: As the post is already vacant, the service workload has already been reviewed and planned accordingly so no detrimental service impact is anticipated. People Risk: The post is vacant and so no detrimental people impact as above. Reputational Risk: A reduction in the team or any delay in processing times comes with a reputational risk due to the sensitivity of the life events being dealt with by Registration Services. This has been mitigated by undertaking a review of work and planning accordingly when the post first became vacant and no severe impact is anticipated. Saving (Cumulative) 2025/26 2026/27 2027/28 £000 FTE £000 FTE £000 FTE 18 0.5 18 0.5 18 0.5 FTE impact delivered through existing vacancies: 0.5 Note that the FTE Impact is an estimate – if the saving option is approved then the Chief Officer will assess the most effective way of delivering the saving target. Equality Impact Assessment Completed: Yes EIA No: 1101 Page 132
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Appendix 5 – Equality Impact Assessments Assessment No 1139 Owner Gail Macfarlane Resource Regeneration, Environment and Growth Service Budget R and N FirstName Surname Job Title Head Officer Gail MacFarlane Chief Officer Members Ricardo Rea Greenspace Manager Biodiversity Officer (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title RN03 Review Allotment charges The aim, objective, purpose and intended outcome of policy Increase charges to access an allotment. The current charge is £23.47 per year. The following allotment sites are in use: Castlegreen St 31 plots Round Riding Road 7 plots Dillichip 50 plots There is currently a waiting list of over 600 residents with a 10 year waiting list. There are 50 plots in progress at Overburn, these will be available Summer 25/26. Total for 25/26 138 full plots. The updated charge is proposed, as below Year 1 £60, £1.15 per week Year 2 £90, £1.73 per week Year 3 £120, £2.30 per week The proposal will continue to ensure allotments are available for use. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Greenspace, Biodiversity Page 133
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Does the proposals involve the procurement of any goods or services? No If yes please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) Yes Relevance to Human Rights (HR) No Relevance to Health Impacts (H) Yes Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? Those residents that access allotments. Who will be/has been involved in the consultation process? Greenspace Service, Biodiversity Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Need to assess differential impact as we know about differing levels of use. We do not have solid data about the makeup of allotment users. However officer knowledge would suggest that users tend to be older. More likely to affect more older people than younger people. Disability Gender Reassign Marriage & Civil Partnership Pregnancy & Page 134
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Maternity Race Religion and Belief Sex Need to assess differential impact as we know about differing levels of use. We do not have solid data about the makeup of allotment users. However officer knowledge would suggest that users tend to be male. More likely to affect more men than women Sexual Orientation Human Rights Health The Council has a focus on health and wellbeing. It is generally accepted that allotment access is good for mental and physical health 'The proven mental health benefits of spending time outdoors are increasingly being heeded and a recent study by academics at the University of Sheffield outlined the wellbeing benefits of allotment gardening.' If increases in prices reduced allotment use this would be negative in terms of health impacts. Social & Economic Impact The Council has a focus on economic well being Large proportionate rise, however total expenditure across year would be less than £100 in year 3. Would tend to me more difficult for people who are more income deprived, or have less disposable income Cross Cutting Important to look at cross cutting impacts Traditional users of allotments are more likely to be male and older. Some UK level data suggests more growing use by younger age groups and more women Increase in costs may make it more difficult to for people to rent allotments. Page 135
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Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. The cost may be considered unaffordable to those on a lower income Average costs in UK for allotments: https://www.allaboutallotments.co.uk/allotments-cost/ Will the impact of the policy be monitored and reported on an ongoing basis? The uptake will be monitored and reported for consideration Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation EIA 1139: Increases in prices, if they reduced allotment use would have a negative impact in terms of health and would likely affect more men than work and more older people than younger people. There could be less affordable to those on a lower incomes. Benchmarking has been undertaken which suggests that the proposed fee structure is comparable to neighbouring local authorities. Page 136
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Assessment No 1135 Owner Gail MacFarlane Resource Regeneration, Environment and Growth Service Budget R and N FirstName Surname Job Title Head Officer Gail Macfarlane Chief Officer - Roads & Neighbourhood Members Waste Service (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title RN26 Special Uplift Charge The aim, objective, purpose and intended outcome of policy Review of Special Uplift Charge and Policy. The Current charge for special uplift is £29.48. This is for up to 10 items which could be 10 large items that can require significant resource and time to uplift. The proposal is to implement a new charging scheme as follows: Up to 5 items £40 No special uplift of over 5 items, should additional uplift of items be required multiple uplifts may be purchased. 24/25 Anticipated full year income £48,500 Potential income 25/26: Assume 1400 special uplifts 1000 @ £40 = £40,000 400 @ £80 = £32,000 (2 uplifts due to uplift above 5 items) Total = £72,000 Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Waste Services Page 137
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Does the proposals involve the procurement of any goods or services? No If yes please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) Yes Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? All users of the service Who will be/has been involved in the consultation process? Waste Service Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Need to assess impacts on different age groups. For example members of age groups can be more or less likely to be in relative poverty Those under 35 are more likely to be in relative poverty than older age groups. 15years ago 25% of pensioners (state pension age) in Scotland were living in poverty, compared to 15% now. Single pensioners over the age of 75 more likely to live in poverty Some potential negative effect in terms some older people (over 75), more likely to affect people up to the age of 35. Disability Need to assess impacts on disabled versus non disabled Disabled people/households with a disabled person as a Some potential negative effect on disabled people. Page 138
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people. member are more likely to be living in relative poverty than non disabled people. Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Need to look at differential impacts that relate to income for this group. People from most non- white minority ethnic groups are more likely to be in relative poverty after housing than those from most white ethnic groups. Some potential negative effect. Religion and Belief Sex Need to look at differential impacts that relate to income for this group. Women are more likely to be income deprived than men. 39% of single women with children are living in poverty. Some potential negative effect. Sexual Orientation Human Rights Health Social & Economic Impact Need to look at differential impacts that relate to income. Income deprived people may find it more difficulty to meet the increased charge. Some potential negative effect. Cross Cutting Important to examine how impacts may interact and links to any other relevant issues. Should a charge be considered too high there may be a risk of increased fly tipping and contamination of bins. If residents do not wish or are able to pay special uplift charge waste may be disposed of through fly tipping or Some potential negative effect for communities and the Council. Page 139
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contaminating bins Assessment No 1165 Owner Alan Douglas Resource Regeneration, Environment and Growth Service Budget R and R FirstName Surname Job Title Head Officer Alan Douglas Chief Officer: Regulatory and Regeneration Members Alan Douglas (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title RR06 - Revised Legal Charges for Transactions The aim, objective, purpose and intended outcome of policy The proposal would see a substantial increase in charges to parties purchasing or leasing property from the Council. The revised level would equate to what is understood to be representative of commercial rates charged by private solicitor firms for work of similar complexity Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Legal Services Does the proposals involve the procurement of any goods or services? No If yes please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Page 140
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Who will be affected by this policy? Who will be/has been involved in the consultation process? Page 141
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Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. The special uplift cost proposed is lower than some of the neighbouring local authorities but higher than others and there is also a mix of charging schemes, however increased charges could still be negative for some groups. The new criteria introduced of 5 items max will improve programming of work and required time so will improve efficiencies and customer experience. Will the impact of the policy be monitored and reported on an ongoing basis? Yes Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation EIA 1135: The increase in special uplift policy may have some greater negatively impact on some groups detailed section 2 of the EIA as they are more likely to be income deprived or in relative poverty, these are women, disabled people, some BME groups, people under 35 and people over 75. There could be an increase in fly typing and contaminated bins. The impact of additional fly tipping and/or contaminated bins will be monitored and communication strategy carried out to ensure all aware of waste strategy and disposal opportunities. Page 142
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Assessment No 1111 Owner Amanda Graham Resource Transformation Service Budget CCF FirstName Surname Job Title Head Officer Amanda Graham Chief Officer Members Amanda Graham Chief Officer Lauren Crooks Strategic Communication, Culture and Performance Manager (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title CCF05 Increase events income The aim, objective, purpose and intended outcome of policy West Dunbartonshire has a number of attractive outdoor spaces including parks and other greenspace which are well served by public transport links. An opportunity exists to market these spaces to national event organisers and generate an income from pitch hire for the likes of food stalls or from hiring the spaces for hosting small scale entertainment events. This could supplement the existing events offer of the Pipe Band Championships, fireworks display and family fun days or offer the opportunity for new standalone events. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Communications Team Does the proposals involve the procurement of any goods or services? No If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Page 143
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Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? Council in terms of income, potentially some benefit to the local economy. Who will be/has been involved in the consultation process? Communications Team Page 144
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Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights Health Social & Economic Impact We need to evaluate the potential economic benefits to the Council and the area. It is impossible at this stage to quantify economic impacts. There is an opportunity to increase income into the area, this is more likely to benefit the Council, but less likely to reduce wider socio- economic inequalities significantly. Cross Cutting Page 145
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Assessment No 1114 Owner Amanda Graham Resource Transformation Service Budget CCF FirstName Surname Job Title Head Officer Amanda Graham Chief Officer Members Lauren Crooks Amanda Graham Ricardo Rea (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title CCF06 Review film locations and formalise fee arrangements The aim, objective, purpose and intended outcome of policy Currently the Council receives ad hoc requests from media companies to film in the West Dunbartonshire area. This generates a small income from the hire of specific buildings or location with recent examples including filming for BBC Scotland dramas and documentaries. An opportunity exists to promote the locations available in West Dunbartonshire to media outlets, creating bespoke pages on the website and also to streamline the process and fee structure. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Communications Team Does the proposals involve the procurement of any goods or services? Yes If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Page 146
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Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? Council in terms of income, potentially some benefit to the local economy. Who will be/has been involved in the consultation process? Communications Team Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights Health Social & Economic Impact We need to evaluate potential socio- economic impacts It is impossible at this stage to quantify economic impacts. There is an opportunity to increase income into the area, this is more likely to benefit the Council, but less likely to reduce wider socio- economic inequalities significantly. Cross Cutting Page 147
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Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? N/A Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation EIA 1114: There is an opportunity to increase income into the area, this is more likely to benefit the Council, but less likely to reduce wider socio- economic inequalities significantly. It is impossible at this stage to quantify economic impacts. Page 148
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Assessment No 1119 Owner Amanda Graham Resource Transformation Service Budget CCF FirstName Surname Job Title Head Officer Amanda Graham Chief Officer Members Amanda Graham Ricardo Rea Nicola Docherty (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title CCF13 Remove Telephone Survey The aim, objective, purpose and intended outcome of policy In recent years, it has been more challenging to reach residents via telephone due to changes in the way people communicate, including a reduction in the use of landline telephones. This has impacted on the quality of information gathered. Under this option, the telephone survey would be withdrawn and instead, members of the Citizen’s Panel would be asked to complete the satisfaction question set and help the Council understand satisfaction. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Performance and Strategy Team Does the proposals involve the procurement of any goods or services? No If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) Yes Relevance to Human Rights (HR) No Page 149
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Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? N/A Who will be/has been involved in the consultation process? N/A Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Important to ensure that overall, we get the views of different age groups. The number of adults who have either never used the internet or have not used it in the last three months, described as “internet non-users”, has been declining over recent years. Since 2011, this number has almost halved, but in 2018 there were still 5.3 million adults in the UK, or 10.0% of the adult UK population. Older people tend to use the internet less than younger people Exploring the digital divide Unlikely to be significantly negative for older people in terms of getting views from this group. The Citizens Panel has good representation from the older age group. Disability Important that overall, we get the views of a range of disabled people. The number of adults who have either never used the internet or have not used it in the last three months, described as “internet non-users”, has been declining over recent years. Since 2011, this number has almost Unlikely to be significantly negative in terms of getting views from this group. The West Dunbartonshire Equality Forum has good representation from Page 150
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halved, but in 2018 there were still 5.3 million adults in the UK, or 10.0% of the adult UK population. Disabled people tend to use the internet less than non disabled people, this cross cuts with increasing age. Exploring the digital divide Examination of responses from the telephone survey demographics compared with those of the citizens panel does not suggest that there is a significantly higher proportion from the former of disabled people. disability groups. Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights UNCRC considerations in this instance 'participation'. Very few of the respondents to the telephone survey are under the age of 18. Removal of the telephone survey would not significantly negatively affect our reach to Children and Young People. Health Page 151
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Social & Economic Impact Important to consider different socio economic groups (SEG). No evidence that lack of a telephone survey would decrease our reach with any income group. Likely neutral in terms SEG. Cross Cutting We need to be able to take into account the views of different protected groups in WDC. For the questions areas they have in common, views on Council services have generally been more positive from telephone survey respondents than Citizens Panel respondents. Though this has narrowed with telephone survey responses be closer to the Citizens Panel respondents. Unlikely to significantly impact our ability to look at differing views of protected groups. The telephone survey does provide more frequency, but we get a wider range of equality data from the Citizens Panel responses. Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. Information from disabled people and older people is available in representative proportions from Citizens Panels and Budget surveys. We can also draw on information and discussions from other engagement forums, such as the West Dunbartonshire Equality Forum, Community Councils Forum and a range of other consultations. Will the impact of the policy be monitored and reported on an ongoing basis? Membership of the Citizens Panel is reviewed on an ongoing basis, where a particular group is identified as being underrepresented a targeted approach to increasing participation is applied. Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation EIA 1119: Whilst older people and disabled people are less likely to be internet users, the EIA did not find any likely significant impact in being able to reach these groups. The Citizens Panel survey other surveys and consultation methods have adequate reach into these groups that is proportionate or more than proportionate to the West Dunbartonshire population. It should be noted that it will not be possible to run the question set through the Citizens Panel four times a year as currently happens with the telephone survey, both for resource reasons and the likelihood that Citizen Panel respondent will be less likely to respond as frequently. Page 152
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Assessment No 1112 Owner Amanda Graham Resource Transformation Service Budget CCF FirstName Surname Job Title Head Officer Amanda Graham Chief Officer Members Amanda Graham Ricardo Rea Nicola Docherty (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title CCF15 Performance and Strategy Budget Efficiencies The aim, objective, purpose and intended outcome of policy A reduction post size from 1 FTE to 0.8 FTE. Under this option, the budget for this post will be reduced by the 0.2 FTE to reflect the change in hours, generating a saving of £9,000. The current post holder has been working at 0.8 FTE for a number of years. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Performance and Strategy Team Page 153
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Does the proposals involve the procurement of any goods or services? No If yes please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? N/A Who will be/has been involved in the consultation process? N/A Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? N/A Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation Screening 1112: No current employee will be affected in terms of employment, or hours or increased burden, and current service provision would unaffected. This does mean that in future the team would not be able to increase hours to meet any extra demand. The proposal is not relevant to any of the areas we impact assess so no assessment has been carried out. Page 154
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Assessment No 1109 Owner Amanda Graham Resource Transformation Service Budget CCF FirstName Surname Job Title Head Officer Amanda Graham Chief Officer Members Amanda Graham Ricardo Rea Lauren Crooks (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title CCF16 Reduce Design Budget The aim, objective, purpose and intended outcome of policy The Communications Team currently supports the design of a number of key strategic documents, including the Annual Report, via an external contractor. Following a review of spend, we have identified an opportunity to reduce the budget allocated for this purpose without impacting on service. Page 155
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Under this option, the budget would reduce to £3,000 per annum generating a saving of £12,000 per annum. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. CCF Chief Officer Comms Manager Performance and Strategy officer Does the proposals involve the procurement of any goods or services? No If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? N/A Who will be/has been involved in the consultation process? N/A Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? N/A Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation Page 156
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Screening 1109: This proposal is not relevant to any of the impact areas we assess, so no EIA is required. There will be no effect on service delivery or staffing in taking this efficiency. Assessment No 1060 Owner Claire Cusick Resource Transformation Service Budget Ed FirstName Surname Job Title Head Officer Claire Cusick senior education officer Members children's services team (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title EDU25 Redesign Leadership in Children, Young People and Families Teams The aim, objective, purpose and intended outcome of policy The proposed re-design option is: • Reduce the seconded PT prof learning post from 1 FTE to 0.2 • Remove ESO Prof learning post • Create a new EO Prof Learning and Leadership post which re- Page 157
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aligns duties relating to the professional learning and leadership team and delivery of service • Remove the CSS DHT post in Dec’24 • Create new EO Children’s Services Role in Aug’24 which has a broader remit including CSS, family learning and help and prof learning and leadership in the ASN sector. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Senior Officers children's services officers professional learning officers Educational Psychologist Does the proposals involve the procurement of any goods or services? No If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) Yes Relevance to Human Rights (HR) Yes Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? Staff, Pupils primarily Who will be/has been involved in the consultation process? Context: A reduction to the Prof Learning team will reduce some ability to support this and necessitate a service delivery re-design. Recent budget cuts have reduced the additional deprivation allowance available to school, the additional management time schools have and the additional funding available to school leaders. These previously enabled school leaders to allocate some staff out of classes to plan for and provide the additional support that children needed. This has been reduced significantly and schools are therefore more reliant than ever on the support and expertise of the CSS and professional learning teams in building capacity in our school staff. This proposal will allow us to ensure continuity in supports and service plans. The proposal will ensure our ability to continue the work of the Additional Support Needs Strategy which has been very successful in building skillsets of staff, improving approaches to learning and teaching and in ensuring learners experiences are equal to that of their peers who do not have an additional support need. Page 158
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In addition, these posts will be crucial in ensuring continuity in the development of our Inclusive Practices approaches CIRCLE and SCERTS. Both have and will continue to require additional management and support to embed and make a difference. In time this will keep WDC children and young people in WDC and reduce potential need for expensive out of authority placements. Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability The Council has a duty to ensure services are accessible to disabled people. Some children with ASN are disabled in terms of the Equality Act. A reduction to the Professional Learning team will reduce some ability to support this and necessitate a service delivery re- design. Create new EO Children’s Services Role in Aug’24 which has a broader remit including CSS, family learning and help and prof learning and leadership in the ASN sector. Positive. The proposal will ensure our ability to continue the work of the Additional Support Needs Strategy which has been very successful in building skillsets of staff, improving approaches to learning and teaching and in ensuring learners experiences are equal to that of their peers who do not have an additional support need. Gender Reassign Marriage & Civil Partnership Page 159
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Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights We need to ensure that services are provided in a way that is in line with the Human Rights Act/ECHR. We need to consider the requirements of the UNCRC incorporation, in this instance primarily provision. The redesign should support children's rights in terms of provision. See above under disability. Positive in terms of maintaining and improving provision. Health Social & Economic Impact Cross Cutting We need to look at how elements may interact in practice. A reduction to the Prof Learning team will reduce some ability to support this and necessitate a service delivery re-design. Recent budget cuts have reduced the additional deprivation allowance available to school, the additional management time schools have and the additional funding available to school leaders. These previously enabled school leaders to allocate some staff out of classes to plan for and provide the additional support that children needed. The proposal will ensure our ability to continue the work of the Additional Support Needs Strategy which has been very successful in Services can be maintained. Neutral in terms of staffing. Page 160
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building skillsets of staff, improving approaches to learning and teaching and in ensuring learners experiences are equal to that of their peers who do not have an additional support need. In addition, these posts will be crucial in ensuring continuity in the development of our Inclusive Practices approaches CIRCLE and SCERTS. Both have and will continue to require additional management and support to embed and make a difference. In time this will keep WDC children and young people in WDC and reduce potential need for expensive out of authority placements. There will be a reduction in post but as its a post used on secondment basis, there is no job loss. Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? N/A Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation EIA 1060: The service redesign should mitigate any potential negative impacts and maintain provision and support for ASN pupils. The impact is this likely to be neutral in terms of provision, and positive in terms of a sustainable approach being in place in the context of past reductions in resources which affect service provision in this area. Assessment No 795 Owner Andrew Cameron Resource Transformation Service People and Technology Page 161
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FirstName Surname Job Title Head Officer Andrew Cameron ICT Infrastructure Section Lead Members Andrew Cameron - ICT Infrastructure Section Lead Michelle McKenzie - Procurement Officer (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title PT01 SWAN Savings The aim, objective, purpose and intended outcome of policy Join SWAN 2.0 Framework as a Framework platform to procure managed WAN/LAN/WLAN Remote access and Security Services. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Procurement/ICT Does the proposals involve the procurement of any goods or services? Yes If yes, please confirm that you have contacted our procurement services to discuss your requirements. Yes SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? N/A Who will be/has been involved in the consultation process? N/A Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Page 162
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Specific group to consider Needs Evidence Impact Age Cross Cutting Disability Social & Economic Impact The Council has a duty to obtain best value. The Council must keep in mind the Fairer Scotland Duty when making strategic financial decisions. Where relevant contracts take into account Community Benefit Clauses, however the contract size and type does not indicate a strategic decision that has the ability to reduce socio economic inequalities. Neutral. Sex Gender Reassign Health Human Rights Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sexual Orientation Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? N/A Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation EIA 795: Fairer Scotland duty is relevant due to size of contract. We have given Page 163
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consideration to any opportunities through the contracting process to reduce socio economic inequalities, but no opportunities present themselves in this case. Page 164
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Assessment No 988 Owner Dorothy Nicolson Resource Transformation Service People and Technology FirstName Surname Job Title Head Officer Dorothy Nicolson ICT Section Head Members Andrew Mackie Procurement Officer James Gallacher, ICT Manager Victoria Rogers, People & Technology Chief Officer (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title PT02 Vodafone contract saving The aim, objective, purpose and intended outcome of policy Contract renewal Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. James Gallacher, ICT Manager Victoria Rogers, People & Technology Chief Officer Does the proposals involve the procurement of any goods or services? Yes If yes, please confirm that you have contacted our procurement services to discuss your requirements. Yes SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? N/A Who will be/has been involved in the consultation process? N/A Page 165
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Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights Health Social & Economic Impact The Council has a duty to obtain best value. The Council must keep in mind the Fairer Scotland Duty when making strategic financial decisions. Where relevant contracts take into account Community Benefit Clauses, however the contract size and type does not indicate a strategic decision that has the ability to reduce socioeconomic inequalities. Neutral Cross Cutting Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? N/A Page 166
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Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation EIA 988, the proposal is relevant to the Fairer Scotland Duty because of its size. However, because of its nature there is no opportunity to reduce Socio economic inequalities in the West Dunbartonshire area, so the overall impact is likely to be neutral. Page 167
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Assessment No 1144 Owner Michelle Lynn Resource Regeneration, Environment and Growth Service Budget SD and P FirstName Surname Job Title Head Officer Laurence Slavin Chief Officer Resources Members Michelle Lynn Assets Manager (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title RES09 Review of charges for use of offices to external parties The aim, objective, purpose and intended outcome of policy It is proposed to review current capacity and usage across the Council operational estate to consider options for generating income – for example leasing floor space to interested partners or charging for use of office accommodation to partner organisations based within our operational estate. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. No staff members will be displaced as a result of this proposal. Should opportunities arise for additional income an Equality Impact Assessment will be produced for that purpose. Does the proposals involve the procurement of any goods or services? No If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Page 168
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Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? WDC staff members Who will be/has been involved in the consultation process? Chief Officers and Service Managers Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age N/A N/A N/A Disability N/A N/A N/A Gender Reassign N/A N/A N/A Marriage & Civil Partnership N/A N/A N/A Pregnancy & Maternity N/A N/A N/A Race N/A N/A N/A Religion and Belief N/A N/A N/A Sex N/A N/A N/A Sexual Orientation N/A N/A N/A Human Rights N/A N/A N/A Health N/A N/A N/A Social & Economic Impact N/A N/A N/A Cross Cutting N/A N/A N/A Page 169
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Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. Proposal does not have a negative impact with any group. Will the impact of the policy be monitored and reported on an ongoing basis? Yes, continued monitoring of staff accommodation is monitored via SAMG and service managers meetings. Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation Screening 1144 concludes that the proposal is not relevant and therefore does not require an impact assessment, as it builds on successful existing arrangements and does not introduce significant changes. Should opportunities arise for additional income an Equality Impact Assessment will be produced for that purpose. Page 170
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Assessment No 1142 Owner Michelle Lynn Resource Transformation Service Budget Resource FirstName Surname Job Title Head Officer Laurence Slavin Chief Officer Resources Members Michelle Lynn Asset Manager Laurence Slavin, Chief Officer (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title RES13 Historical lease review The aim, objective, purpose and intended outcome of policy A review of all property related assets has been undertaken with a number of areas which generates a new capital receipt, additional income and associated revenue saving. These have not been assumed in any other savings exercise and are deliverable within the financial years listed. Review of historical leases by previous district/regional authorities (31 properties) was reviewed as part of savings exercise 23/24 which were offered at below market rent values or no rent. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. No staff members will be displaced as a result of this proposal. Should opportunities arise for additional income an EIA will be produced for those proposals. Does the proposals involve the procurement of any goods or services? No If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING Page 171
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You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) Yes Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? Tenants of commercial properties Who will be/has been involved in the consultation process? Page 172
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Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights Health Social & Economic Impact We need to take into account the Fairer Scotland Duty when considering strategic financial decisions and follow the statutory guidance relating to this. We evaluate impacts based on evidence. We will examine potential impacts of any proposed changes to ensure consideration on potential impacts. Cross Cutting We need to take into account any equality and other linked implications of proposals. We evaluate impacts based on evidence a take account of how factors interact. We will examine potential impacts of any proposed changes to ensure consideration on potential impacts and how these interact. Page 173
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Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. Will the impact of the policy be monitored and reported on an ongoing basis? Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation EIA 1142: Increasing charges may have equality and socio-economic impacts. We are therefore committed to impact assessing any and all future proposals that would increase these. Assessment No 1143 Owner Michelle Lynn Resource Transformation Service Budget Resource FirstName Surname Job Title Head Officer Laurence Slavin Chief Officer Resources Members Michelle Lynn Asset Manager (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title RES15 Reduce size of Building Services The aim, objective, purpose and intended outcome of policy The Council’s Building Services team currently has an equivalent of 4.5 FTE vacancies (combination of whole posts and employees who wish to reduce their hours through flexible retirement). Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. WDC Staff Members/Chief Officers Does the proposals involve the procurement of any goods or services? No Page 174
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If yes please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? All Council services, Elected Members and partner organisations including the Scottish Government. Who will be/has been involved in the consultation process? Michelle Lynn, Assets Manager- conducted this high level efficiency option ; Laurence Slavin, Chief Officer - Resources - interrogated this high level efficiency option; Performance and Monitoring Review Group, West Dunbartonshire Council - where informed of this high level efficiency option; Martin Rooney, Leader of the Council - was informed of this high level efficiency option; and David McBride, Deputy Leader of the Council - was informed of this high level efficiency option. If this high level efficiency option is to be taken forward to the next stage; staff, Trade Unions and Elected Members will be consulted. Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. No employees will be displaced as a result of this savings proposal. Will the impact of the policy be monitored and reported on an ongoing basis? Yes Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation Screening 1143 concludes that the proposal is not relevant and therefore does not Page 175
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require an impact assessment. These posts can be removed from the establishment without material impact on service delivery or other staff's workload. Assessment No 1137 Owner Gail MacFarlane Resource Regeneration, Environment and Growth Service Budget R and N FirstName Surname Job Title Head Officer Gail MacFarlane Chief Officer Members Gail Macfarlane, Chief Officer Ricardo Rea, Performance and Strategy Officer Ian Bain, Greenspace Manager (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title RN01 Stopping Saturday burials The aim, objective, purpose and intended outcome of policy Efficiency Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Greenspace Manager Burial Services Does the proposals involve the procurement of any goods or services? No If yes please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) Yes Relevance to Human Rights (HR) Yes Page 176
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Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? Potentially, members of the Muslim faith. Who will be/has been involved in the consultation process? Burial Service, Greenspace Manager Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Muslim practice is that the deceased are buried as quickly as possible after death, cremation is not usually permitted. Removing the option of a Saturday burial, may it more difficult for Muslims to bury deceased persons as quickly as possible if they wanted to do this in West Dunbartonshire. Potentially negative for members of the Muslim community. Neutral for other religions and beliefs. Sex Sexual Orientation Human Rights Article 8 of the European Convention on Human Rights has been engaged in relation to issues around burials. A review of relevant case law does not suggest that Article 8 would be infringed by removing Saturday burials, and that the Neutral Page 177
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change is proportionate given the legitimate aims of the Council in this case Guide on Article 8 - Right to respect for private and family life, home and correspondence Health Social & Economic Impact Cross Cutting Policy has a negative impact on an equality group but is still to be implemented, please provide justification for this. The Council have a dedicated area in a cemetery for those of the Muslim faith. There have been very few requests for burials at the weekend and none since the suspension of the service. Officers will continue to support families of the bereaved as much as they are able to provide a suitable option. Will the impact of the policy be monitored and reported on an ongoing basis? The burial service is monitored and the number of funerals are reported Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation Screening 1137: Muslim practice is that the deceased are buried as quickly as possible after death, cremation is not permitted. Removing the option of a Saturday burial, may make it more difficult for Muslims to bury deceased persons as quickly as possible if they wanted to do this in West Dunbartonshire. In mitigation, the service will continue to support users of the service to deliver acceptable solutions. Page 178
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Assessment No 1140 Owner Gail MacFarlane Resource Regeneration, Environment and Growth Service Budget R and N FirstName Surname Job Title Head Officer Gail MacFarlane Chief Officer Members Ricardo Rea (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title RN07 Capitalise Play Park Fitter The aim, objective, purpose and intended outcome of policy Capital funding a play park fitter for a period of 5 years to deliver the playpark upgrade programme. This will reduce revenue implications of circa £40k /annum (includes on costs) This can commence 24/25. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Greenspace Does the proposals involve the procurement of any goods or services? No If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Page 179
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Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? N/A Who will be/has been involved in the consultation process? Greenspace Team Page 180
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Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? N/A Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation Screening 1140: Other than reducing revenue spend this proposal no impact on service delivery of staffing. It is not relevant to any of the areas we assess and does not need to be impact assessed. Page 181
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Assessment No 1129 Owner Gail McFarlane Resource Regeneration, Environment and Growth Service Budget R and N FirstName Surname Job Title Head Officer Gail Macfarlane Chief Officer - Roads & Neighbourhood Members Working4U and Fleet Manager, Fleet Coordinator, Roads & Transport Manager, Road Network Coordinator (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title RN09 Further replacement of hire vehicles The aim, objective, purpose and intended outcome of policy The purpose of the saving option is to reduce the reliance on the use of hire gritters and other roads vehicles. Resilience will be improved by removing need to facilitate the use of hire vehicles and provides opportunity to maximise in-house delivery of projects. The service will be able to programme works throughout the year to progress projects. This includes resurfacing of carriageway, footways, car parks, delivery of structural repairs and delivery of unadopted network improvements. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Fleet Service, roads service, procurement, service users Does the proposals involve the procurement of any goods or services? Yes If yes, please confirm that you have contacted our procurement services to discuss your requirements. Yes SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Page 182
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Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? Service users within the council Who will be/has been involved in the consultation process? Fleet Service, roads service, procurement team, service users Page 183
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Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights Health Social & Economic Impact Cross Cutting Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? Fleet use will be monitored to maximise use of vehicles Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the Page 184
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recommendation Screening 838: The proposal to accelerate has been screened and is not relevant to any of the impact areas, therefore no impact assessment is required. Eventual procurement of vehicles will be impact assessed having regard to the Fair Scotland Duty in line with the Councils usual approach as this is a major procurement. Page 185
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Assessment No 1101 Owner George Hawthorn Resource Regeneration, Environment and Growth Service Budget R and R FirstName Surname Job Title Head Officer George Hawthorn Manager of Democratic and Registration Services Members Alan Douglas, Chief Officer - Regulatory and Regeneration (Please note: the word 'policy' is used as shorthand for strategy, policy, function or financial decision) Policy Title RR09 Registrars The aim, objective, purpose and intended outcome of policy To reduce the budget deficit by not filling the current 0.5FTE vacancy within the Dumbarton Registration office. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. The Senior Registrar has been consulted on this proposal. Does the proposals involve the procurement of any goods or services? No If yes, please confirm that you have contacted our procurement services to discuss your requirements. No SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) No Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) No Who will be affected by this policy? N/A Who will be/has been involved in the consultation process? Page 186
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N/A Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Policy has a negative impact on an equality group, but is still to be implemented, please provide justification for this. N/A Will the impact of the policy be monitored and reported on an ongoing basis? N/A Q7 What is you recommendation for this policy? Introduce Please provide a meaningful summary of how you have reached the recommendation Screening 1101: The post has been vacant for nine months without any impact on the service or public. Page 187
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 18 December 2024 Subject: 2022/23 Annual Audit Report 1. PURPOSE 1.1 The purpose of this report is to present the 2022/23 Annual Audit Report to Members and Controller of Audit, for the Council and the Trusts administered by the Council, prior to approving the 2022/23 Audited Annual Accounts for both the Council and the Charities administered by the Council. 1.2 The report provides Members with an update on the external audit of the Annual Accounts of the Council and the Charities administered by the Council for the year ended 31 March 2023. 2. RECOMMENDATIONS 2.1 Members are requested to consider the Annual Audit Report to Members and Controller of Audit 2022/23 for the Council and the Charities administered by the Council – Appendix 1 to this report. 3. BACKGROUND 3.1 Forvis Mazars (Mazars) have been appointed as the Council’s external auditors from financial year 2022/23 for a period of five years. 3.2 The Council’s draft unaudited 2022/23 Annual Accounts (including the Group Accounts) were passed to the Accounts Commission on the 03 July 2023 and reported to Council on 30 August 2023. 3.3 As the external auditor of the Council, it is Mazar’s responsibility to undertake their audit work in accordance with International Standards on Auditing, the principles contained in the Code of Audit Practice issued by Audit Scotland in June 2021 and the ethical standards issued by the Auditing Practices Board. 4. MAIN ISSUES 4.1 The audit of the 2022/23 accounts is substantially complete, however, the Annual Audit Report identifies that, at the time of preparing the report, some matters remain outstanding. Mazars has committed to providing an update in relation to the outstanding matters through issuance of a follow up letter. In addition, Mazars have noted that they expect to issue an unqualified opinion, and the draft opinion has been inserted into the Annual Accounts document. ITEM 11 Page 189
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4.2 There has been a significant delay in the completion of the 2022/23 audit. Traditionally financial statements audit work would commence in early July but, for this audit, this was delayed until late September/early October. Mazars have outlined their reasons for the delay in the Annual Audit Report as: • Significant difficulties with Forvis Mazars recruiting auditors with relevant skills and experience. Whilst these have been resolved, the delay in recruitment significantly impacted on our ability to deliver the audit on a timely basis. • The need to undertake additional work in the first year of the audit to gain assurance over the opening balances in the financial statements and understand the Council. • The need to address the implementation of International Standard on Auditing (ISA) 315 Revised. This required the audit team to spend additional time on the audit. • Areas of the audit that required further attention upon commencement of the fieldwork phase due to complexity/ judgement. West Dunbartonshire Charities 4.3 The findings of the audit of West Dunbartonshire Charities are contained within the annual audit report for West Dunbartonshire Council. The letter is appended to this report (Appendix 1). The letter appends the letter of representation (ISA 580) which the Chief Officer - Resources is required to sign and submit to Mazars following the Council meeting. West Dunbartonshire Council 4.4 The findings of the audit are of West Dunbartonshire Council contained within the annual audit report for West Dunbartonshire Council which is appended to this report (Appendix 1). 4.5 The report identifies four recommendations for improvement for the Council and a further recommendation in relation to the Trust Funds. The report also details the Council’s management responses in relation to these recommendations and provides an update on the recommendations identified in the 2021/22 Annual Audit Report (two of which have been noted as ongoing for the Council, and one for the Trusts which is now closed). Any recommendations for improvement set out in the annual audit report are of reduced value as we have been unable to incorporate them into 2023/24 as the significant delays completing the audit have meant the recommendations have not been received until nine months into 2024/25 financial year. 4.6 The Audit Opinion is detailed on page 5 of the report which advises that Mazars expect to issue an unqualified opinion on the Council’s Annual Accounts and the Charities Annual Accounts Page 190
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5. PEOPLE IMPLICATIONS 5.1 There are no people implications in relation to this report. 6. FINANCIAL AND PROCUREMENT IMPLICATIONS 6.1 There are no financial and procurement implications in relation to this report. 7. RISK ANALYSIS 7.1 No risk analysis was required 8. EQUALITIES IMPACT ASSESSMENT (EIA) 8.1 No equalities impact was required in relation to the production of this report. 9. CONSULTATION 9.1 The views of all Chief Officers have been requested on this report and feedback incorporated herein. 10. STRATEGIC ASSESSMENT 10.1 The report is in relation to a statutory function. As such, it does not directly affect any of the strategic priorities Laurence Slavin Chief Officer - Resources Date: 03 December 2024 Person to Contact: Laurence Slavin, Chief Officer - Resources E-mail: laurence.slavin@west-dunbarton.gov.uk Appendices Appendix 1 – Proposed 2022/23 Annual Audit Report Background Papers Draft Annual Accounts 2022/23 to Council – 30 August 2023 Page 191
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Annual Audit Report West Dunbartonshire Council– year ended 31 March 2023 December 2024 APPENDIX 1 Page 192
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Audit Committee West Dunbartonshire Council 16 Church Street Dumbarton G82 1QL 4 December 2024 Forvis Mazars 100 Queen Street Glasgow G1 3DN Dear Committee Members and Controller of Audit, Annual Audit Report – Year ended 31 March 2023 We are pleased to present our Annual Audit Report for the year ended 31 March 2023. The purpose of this document is to summarise our audit conclusions and findings from our considerations of the wider scope audit specified in the Code of Audit Practice 2021 namely, financial management; financial sustainability; vision, leadership and governance; and use of resources to improve outcomes. The scope of our work, including identified significant audit risks, and other key judgement areas, was outlined in our Annual Audit Plan, which we presented to you on 20 April 2023. We have reviewed our Annual Audit Plan and concluded that the significant audit risks and other key judgement areas set out in that report remain appropriate. We would like to express our thanks for the assistance of your team during our audit. If you would like to discuss any matters in more detail then please do not hesitate to contact me on on 07816 354 994 or via tom.reid@mazars.co.uk Yours faithfully Tom Reid (Audit Director) Forvis Mazars LLP Annual Audit Report letter 100 Queen Street – Glasgow- G1 3DN Tel: 0141 227 2400– www.forvismazars.com/uk Forvis Mazars LLP is the UK firm of Forvis Mazars Global, a leading global professional services network. Forvis Mazars LLP is a limited liability partnership registered in England and Wales with registered number OC308299 and with its registered office at 30 Old Bailey, London, EC4M 7AU. Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001139861. VAT number: GB 839 8356 73 Page 193
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3 Contents 01 Executive summary 02 Status of the audit 03 Audit approach 04 Significant findings 05 Internal control conclusions 06 Summary of misstatements 07 Wider Scope 08 Best Value A Appendix A: Draft management representation letter B Appendix B: Draft audit report C Appendix C: Confirmation of our independence D Appendix D: Other communications E Appendix E: Wider scope and Best Value ratings Our reports are prepared in accordance with Terms of Appointment Letter from Audit Scotland dated 18 May 2022 through which the Accounts Commission has appointed us as external auditor of West Dunbartonshire Council (the Council) for financial years 2022/23 to 2026/27. We undertake our audit in accordance with Part VII of the Local Government (Scotland) Act 1973, as amended; and our responsibilities as set out within Audit Scotland’s Code of Audit Practice 2021. Reports and letters prepared by appointed auditors and addressed to the Council are prepared for the sole use of the Council and made available to Audit Scotland and the Accounts Commission, the Controller of Audit. We take no responsibility to any member or officer in their individual capacity or to any other third party. Page 194
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01Executive Summary Page 195
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5 Executive summary Audit conclusions and significant findings The detailed scope of our work as your appointed auditor for 2022/23 is set out in Audit Scotland’s Code of Audit Practice 2021. Our responsibilities and powers are derived from Part VII of the Local Government (Scotland) Act 1973 and, as outlined in our Annual Audit Plan, our audit has been conducted in accordance with International Standards on Auditing (UK) and means we focus on audit risks that we have assessed as resulting in a higher risk of material misstatement. In section 4 of this report we have set out our conclusions and significant findings from our audit. This section includes our conclusions on the audit risks and areas of management judgement in our Annual Audit Plan, which include: • Management override of controls; • Valuation of property, plant and equipment; • Valuation of the net defined benefit liability/surplus; and • Liabilities from service concession arrangements. Misstatements and internal control recommendations Section 5 sets out internal control recommendations and section 6 sets out audit misstatements; unadjusted misstatements total £6.302 million. Section 7 outlines our work on the Council’s arrangements to achieve economy, efficiency and effectiveness in its use of resources. Status and audit opinion We have substantially completed our audit in respect of the financial statements for the year ended 31 March 2023. At the time of preparing this report, significant matters remaining outstanding as outlined in section 2. We will provide an update to you in relation to the significant matters outstanding through issuance of our final Annual Audit Report. Based on our audit work completed to date we have the following conclusions: Audit opinion We expect to issue an unqualified opinion, without modification, on the financial statements of the Council, its group, and the Charitable Trusts. Our audit opinion is included in the draft auditor’s report in Appendix B. Matters on which we report by exception We are required by the Accounts Commission to report to you if, during the course of our audit, we have found that adequate accounting records have not been kept; the financial statements and the audited part of the Remuneration and Staff Report are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Page 196
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6 Executive summary (continued) Conclusions from our audit testing and audit opinion (continued) Other information We are required to report on whether the other information (comprising of Management’s Commentary, Statement of Responsibilities and the unaudited parts of the Remuneration Report), is materially inconsistent with the financial statements; is materially inconsistent with our knowledge obtained in the course of the audit; or is materially misstated. No inconsistencies have been identified and we have issued an unmodified opinion in this respect. Management Commentary and Annual Governance Statement We are required to report on whether the information given in the Management Commentary and Annual Governance Statement is consistent with the financial statements; and has been properly prepared in accordance with the statutory guidance issued under the Local Government in Scotland Act 2003 and Delivering Good Governance in Local Government Framework 2016. We have no matters to report in respect of the Management Commentary and Annual Governance Statement. Wider powers Section 101 of the Local Government (Scotland) Act 1973 requires us to give any person interested, the opportunity to question us about the accounting records of the Council and to consider any objection made to the accounts. We confirm that no such correspondence from electors has been received. Whole of Government Accounts (WGA) The Council is below the threshold for auditor assurance set by the Scottish Government for all public bodies in Scotland. We are therefore not required to perform any examination of the Council’s WGA return. However, we will submit the required assurance statement to the National Audit Office on conclusion of our audit. Page 197
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7 Executive summary (continued) Best Value and Wider Scope conclusions As auditors appointed by the Accounts Commission, our wider scope responsibilities are set out in Audit Scotland’s Code of Audit Practice 2021 and sits alongside Best Value requirements detailed in the Local Government (Scotland) Act 1973. The Code requirements broaden the scope of the 2022/23 audit and allows us to use a risk-based approach to report on our consideration of the Council’s performance of Best Value and community planning duties and make recommendations for improvement and, where appropriate, conclude on the Council’s performance. The Code’s wider scope framework is categorised into four areas: • financial management; • financial sustainability; • vision, leadership and governance; and • use of resources to improve outcomes. It remains the responsibility of the Council to ensure proper financial stewardship of public funds, it complies with relevant legislation, and establishes effective governance of their activities. The Council is also responsible for ensuring that it establishes arrangements to secure continuous improvement in performance and, in making those arrangements, ensures resources are being used to improve strategic outcomes and demonstrate the economy, efficiency, and effectiveness throughout the use of its resources. These arrangements should be proportionate to the size and type of the Council, appropriate to the nature of the Council and the services and functions that it has been created to deliver. Wider Scope We have not identified any significant risks in arrangements to report in relation to the financial management; financial sustainability; vision, leadership and governance; and use of resources to improve outcomes arrangements that the Council has in place. Further detail on our Wider Scope work is provided in section 7 of this report including any significant risks identified. Best Value We have not identified any significant risks in arrangements to report in relation to the arrangements that the Council has in place to secure economy, efficiency and effectiveness in its use of resources. Further detail on our Best Value work is provided in section 8 of this report including any significant risks identified. Page 198
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02Status of the audit Page 199
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9 Status of our audit Our audit work is substantially complete and, except for the matters set out below, there are currently no matters of which we are aware that would require modification of our audit opinion, subject to the satisfactory resolution of the outstanding matters set out below. Audit area Risk of material adjustment or significant change (Status) Description of the outstanding matters Review of revised annual report and accounts Medium Officers have made several amendments to the annual accounts. We need to complete our review of these as part of final procedures. We also need final clearance on the technical queries raised by our Audit Technical Support team from their review of the annual accounts. Audit quality control and completion procedures Medium Our audit work is undergoing final stages of review by the Engagement Lead, Engagement Quality Reviewer and further quality and compliance checks. In addition, there are residual procedures to complete, including updating post balance sheet event considerations to the point of issuing the opinion, obtaining final management representations and agreeing adjustments to the final set of accounts. Annual Report and Accounts and letter of representation Low We will complete our final review of the annual report and accounts upon receipt of the signed version of the accounts and letter of representation. Trust Accounts Low There are a small number of amendments which we will need to check as a part of final procedures including revised presentation of an account balance. Status High - Likely to result in a material adjustment or a significant change to disclosures in the financial statements. Medium - Potential to result in a material adjustment or a significant change to disclosures in the financial statements. Low - Not considered likely to result in a material adjustment or a change to disclosures in the financial statements. Page 200
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03Audit Approach Page 201
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11 Audit Approach Changes to our audit approach There have been no changes to the audit approach we communicated in our Annual Audit Plan, issued on 20 April 2023. Materiality Our provisional materiality at the planning stage of the audit was set at £11.862 million for the Council and £11.924 million for the Group using a benchmark of 2% of gross revenue expenditure at surplus/deficit level. Our Performance materiality was set at £7.117 million for the Council and £7.155 million for the Group. Based on the final financial statement figures and other qualitative factors, the final overall materiality for Council we applied was £11.989m, final performance materiality: £7.193m. For group accounts, the final overall materiality we applied was £12.081m, final performance materiality: £7.249m. We set our clearly trivial level at the planning stage of the audit at £0.350m for the Council and the group. We have revised this to £0.250m to comply with the maximum threshold allowed by Audit Scotland for 2022/23 audits. Our specific materiality of £1,000 for the Remuneration Report remains unchanged. Use of experts We used the experts to assist us to obtain sufficient appropriate audit evidence on specific items of the financial statements. In addition to the experts listed in our Annual Audit Plan, we used Forvis Mazars Real Estate Valuation team to review the Council’s valuation methodology on Depreciated Replacement Cost (DRC) and Existing Use Value (EUV) assets, consider the Council’s non-revalued assets methodology on DRC assets and review the Council's approach to non-revalued EUV assets. Charitable Trusts At the planning stage of the audit, we set separate materialities for each of the charitable trusts. We have reviewed our methodology and set a single materiality to reflect that the charitable trusts financial statements are covered by a single audit opinion. Our provisional materiality at the planning stage of the audit was set at £5,250. Our final assessment of materiality based on the final financial statements is £5,152 using the same benchmark, final performance: £3,675. We have provided our consideration of our independence as part of the Council engagement and Charitable Trust engagement in Appendix C. Page 202
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12 Audit Approach (continued) Group audit approach Group component Approach adopted Key points or matters to report Strathclyde Partnership for Transport Review procedures Consolidation basis challenged and financial statements amended. Strathclyde Concessionary Travel Scheme Joint Board Review procedures Consolidation basis challenged and financial statements amended. Dunbartonshire and Argyll and Bute Valuation Joint Board Review procedures No matters to report. West Dunbartonshire Health & Social Care Partnership Review procedures No matters to report. Dr. A.K Glen and West Dunbartonshire Trust Funds Review procedures Reclassification adjustments for the Trust cash and cash equivalent and investments balances to ‘Other assets’ to reflect the council's custody of these balances. Clydebank Property Company Review procedures No matters to report. WDC Common Good Review procedures No matters to report. West Dunbartonshire Energy Limited Liability Partnership Review procedures No matters to report. West Dunbartonshire Leisure Trust Audit of one or more account balances, classes of transactions or disclosures. i.e. pensions related transactions, balances and disclosures No matters to report. Full audit - Performance of an audit of the component’s financial information prepared for group reporting purposes using component materiality Audit of balances and/or disclosures - Performance of an audit of specific balances and/or disclosures included in the component’s financial information prepared for group reporting purposes, using component materiality Specific audit procedures - Performance of specific audit procedures on the component’s financial information Review procedures - Review of the component’s financial information prepared for group reporting purposes using the component materiality assigned Page 203
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04Significant findings Page 204
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14 Significant findings Significant findings, including key areas of management judgement The significant findings from our audit include: • our audit conclusions regarding significant risks and key areas of management judgement outlined in the Annual Audit Plan; • our comments in respect of the accounting policies and disclosures that you have adopted in the financial statements. On page 19 we have concluded whether the financial statements have been prepared in accordance with the financial reporting framework and commented on any significant accounting policy changes that have been made during the year; • any further significant matters discussed with management; and • any significant difficulties we experienced during the audit. Page 205
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15 Significant findings Management override of controls ] Description of the risk Management at various levels within an organisation are in a unique position to perpetrate fraud because of their ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Due to the unpredictable way in which such override could occur there is a risk of material misstatement due to fraud on all audits. How we addressed this risk We addressed this risk through: • Reviewing the key areas within the financial statements where management has used judgement and estimation techniques and considering whether there is evidence of unfair bias; • Testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in preparing the financial statements; and • Considering and testing any significant transactions outside the normal course of business or otherwise unusual. Audit conclusion Our work has provided the assurance we sought in each of these areas and there are no material issues to bring to your attention. Page 206
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16 Significant findings (continued) Valuation of property, plant and equipment ] Description of the risk The council held land and buildings (including council dwellings), with a net book value of £836 million as at 31 March 2022. The council has adopted a rolling revaluation model with an external valuer carrying out valuations of land and buildings on a five-year cycle. This may result in individual assets not being revalued for several years. This creates a risk that the carrying value of those assets that have not been revalued in year is materially different from the year end fair value. Valuations are based on specialist and management assumptions and changes in these can result in material changes to valuations. Due to the high degree of estimation uncertainty associated with valuations, we have determined there is a significant risk in this area. How we addressed this risk We addressed this risk through: • Assessing the scope and terms of engagement with the Valuer; • Assessing the competence, skills and objectivity of the Valuer; • Assessing how management use the Valuer’s report to value land and buildings included in the financial statements; • Testing the accuracy of the data used in valuations; • Challenging the Council and Valuer’s assumptions and judgements applied in the valuations; • Reviewing the valuation methodology used, including the appropriateness of the valuation basis; and • Considering the reasonableness of the valuation by comparing the valuation output with market intelligence. We also engaged the Mazars Real Estates Valuation team who assisted us with the above. Audit conclusion We identified that the fixed asset register provided to audit did not reconcile to the non-current asset balances in the annual accounts and still does not fully reconcile, see internal control recommendation in section 5. The council revalued its depreciated replacement cost assets during the audit, resulting in a £54.0 million increase in the value of other land and buildings, see section 6. Page 207
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17 Significant findings (continued) Valuation of the net defined benefit liability/surplus] Description of the risk The Council had a net pension liability of £55.7 million at 31 March 2022. Estimation of the net pension asset or liability depends on several complex judgements which are sensitive to changes. These include the discount rate used, the rate at which salaries are predicted to increase, inflation rates and life expectancy. Due to the high degree of estimation uncertainty associated with the valuations, we have determined there is a significant risk in this area. How we addressed this risk We addressed this risk through: • Reviewing the controls that the Council has in place over the information sent to the Scheme Actuary by the fund administrators (Strathclyde Pension Fund); • Assessing the skill, competence and experience of the Fund’s actuary; • Challenging the reasonableness of the assumptions used by the actuary as part of the annual IAS 19 valuation; and • Carrying out a range of substantive procedures on relevant information and cash flows used by the actuary as part of the annual IAS 19 valuation. Audit conclusion Our work has provided the assurance we sought in each of these areas and there are no material issues to bring to your attention. We also obtained assurances from the auditor of Strathclyde Pension Fund. The pension fund auditor identified a net understatement in the fund’s assets. When applied to the Council, based on the proportion of the Council’s pension assets to the total pension fund assets, this resulted in an unadjusted error of £2.958 million. See section 6. Page 208
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18 Significant findings (continued) Other areas of management judgement and enhanced risk Liabilities from service concession arrangements Description of the risk The council has a Public Private Partnership (PPP) contract for the provision of three secondary schools and one primary school, and a Design-Build- Finance-Maintain (DBFM) contract for one secondary school. The contracts include the build of the schools as well as their maintenance and provision of related facilities over the period of each contract. The assets used to provide services at the schools are recognised on the council’s Balance Sheet as operational assets and as a finance lease liability. The council recognised an asset of £104 million and a liability of £92 million for service concession arrangements in its 2021/22 financial statements. The method of accounting for service concession arrangements can be complex and involves management judgement. The council has identified it as a critical accounting judgement. There is a potential risk of material misstatement if the Council does not appropriately account for its service concession arrangements. How we addressed this risk We addressed this risk through reviewing the Council’s adopted approach for accounting for its service concession arrangements. Audit conclusion As a result of an audit query, Council officers identified that an adjustment was required to correctly state the PPP liability in line with its accounting model. The Comprehensive Income and Statement has been adjusted by £1.4 million and the Balance Sheet has also been adjusted by £1.4 million, see section 6. We also found that the Council had not fully complied with Scottish Government Finance Circular 10/2022 in reporting to Council on application of flexibilities over accounting for service concession arrangements, see section 7. Page 209
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19 Significant findings (continued) Qualitative aspects of the Council’s accounting practices We reviewed the Council’s accounting policies and disclosures to confirm they comply with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2022/23, as amended by the Update to the Code and Specifications for Future Codes for Infrastructure Assets, published in November 2022, appropriately tailored to the Council’s circumstances. We received unaudited accounts from the Council on 3 July 2023. We identified several issues including: • terminology and account transaction and balance descriptions in the primary financial statements and notes that did not comply with the Code; • accounting policies which were not Code compliant; • a movement in reserves statement which didn’t reconcile to other areas of the financial statements; • a primary statement omitted from the group accounts; • transposition errors in one of the primary statements. We have reviewed the revised accounts and can confirm that all these issues have now been resolved. Significant matters discussed with management During our audit we communicated the following significant matters to management: • First year audit procedures. Auditing standards require us to carry out additional specific procedures for the first year of an audit. These include: seeking professional clearance confirmations from the predecessor auditor, reviewing the predecessor auditor’s working papers and reports and specific procedures over brought forward balances. As part of this work, we discussed controls in place for key information systems with management. • Audit of areas with Complex Accounting Estimates. As outlined in the previous section, we discussed with management and tested the areas of valuation of defined benefit liability/asset and property, plant and equipment as areas involving complex estimations and judgement. These areas took significant audit effort. • Consideration of Consolidation Basis. We discussed with management in detail the consolidation basis for its related parties, in particular the Strathclyde Partnership for Transport (SPT) and the Strathclyde Concessionary Travel Scheme Joint Committee (SCTS). These were initially accounted for as associates in the Group Accounts of the Council but did not appear to meet the criteria for associates set in the Code and accounting standards. Officers agreed to remove SPT and SCTS from the Group consolidation. This resulted in a £19.6 million reduction in the assets recorded in the Group balance sheet. This has been treated as a prior year restatement, see section 6. • Pension asset ceiling. Following submission of the unaudited accounts, we discussed the requirement to determine if an asset ceiling should be applied to the net defined pension asset initially recognised in the accounts, as well as the need to ascertain its value. Where bodies can access the economic benefit arising from the asset in terms of reduced contributions or a refund, they should recognise the net defined benefit as an asset. The net defined benefit asset recognised should be the surplus, adjusted for the effect of any asset ceiling. Following our discussions, officers obtained an asset ceiling calculation from the pension fund actuary and reduced the pension asset by £275.6 million to the asset ceiling, see section 6. • Reinforced Autoclaved Aerated Concrete (RAAC). Safety concerns relating to the use of RAAC led the Scottish Government to require local authorities to complete a survey to assess their level of risk. We have considered the Council’s response to the Scottish Government and considered its conclusion that there was no requirement for a provision or impairment in its 2022/23 accounts. We have also taken into account representations from management on the matter and have not identified any matters that affect our audit report. • Application of flexibilities to service concession arrangements. The Scottish Government, through Finance Circular 10/2022, introduced flexibilities in accounting for service concession arrangements in 2022/23. We reviewed the approach taken by the Council and confirmed it had been appropriately applied. Page 210
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20 Significant findings (continued) Significant difficulties during the audit During the course of the audit, we have had the co-operation of management. The first year of any audit after rotation presents additional challenges. This includes setting out and agreeing expectations in relation to audit evidence, including working papers. Not all the information we required was available at the start of the audit. This included: • transactions listings provided at batch rather than transaction level • evidence to demonstrate that the assets held for sale met the conditions stated in IFRS 5 • supporting documentation for the council tax reconciliation. In our view, some of the working papers provided by the Council to support the annual accounts were not of sufficiently high quality. This included: • numerous versions of the fixed assets register with errors identified in each version • incorrect floor plans supporting valuations • absence of supporting documentation for capital commitments • lease schedules with the wrong lease terms and leases that had ended • an inaccurate schedule provided for grants and other taxation • creditors working papers which did not reflect the correct in-year position. Officers satisfactorily resolved these issues over the course of the audit. Page 211
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21 Significant findings (continued) Significant difficulties during the audit The Council did not meet the submission date of 30 September 2023, specified in the Local Authority Accounts (Scotland) Regulations 2014, for approval of its audited annual accounts. Forvis Mazars has discussed the implications of this with Audit Scotland who confirmed there are no consequences for the Council. The main reasons the submission date was not met include: • Significant difficulties with Forvis Mazars recruiting auditors with relevant skills and experience. Whilst these have been resolved, the delay in recruitment significantly impacted on our ability to deliver the audit on a timely basis. • The need to undertake additional work in the first year of the audit to gain assurance over the opening balances in the financial statements and understand the Council. • The need to address the implementation of International Standard on Auditing (ISA) 315 Revised. This required the audit team to spend additional time on the audit. • Areas of the audit that required further attention upon commencement of the fieldwork phase due to complexity/judgement. We will work with the Council to identify areas for improvement for the 2023/24 audit. Page 212
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22 Significant findings (continued) Wider responsibilities – statutory reporting The 1973 Act allows any persons interested to inspect the accounts to be audited and the underlying accounting records of the Council. The act also allows any persons interested to object to the accounts. No such objections have been raised. We are required to notify the Controller of Audit when circumstances indicate that a statutory report may be required. • Section 102(1) of the 1973 Act allows us to prepare a report to the Commission about the Council’s accounts; matters that have arisen during the audit that should be brought to the attention of the public; or the performance of the Council in their duties relating to Best Value and community planning. • Section 102(3) of the 1973 Act allows us to make a special report to the Commission if an item of account is contrary to law; there has been a failure on someone’s part to bring into account a sum which ought to have been brought into account; a loss has been incurred or deficiency caused by the negligence or misconduct of a person, or by the failure of a body to carry out a duty imposed on them by any enactment; or a sum which ought to have been credited or debited to one account of a body has been credited or debited to another account and the body has not taken, or is not taking, steps to remedy the matter. • Section 97A of the 1973 Act allows us to undertake or promote comparative and other studies to make and publish recommendations for the securing by local government bodies of Best Value, improving economy, efficiency and effectiveness in the provision of services by local government bodies and improving the financial or other management of local government bodies. We have no indication that a statutory report may be required. Reporting to the NAO in respect of Whole of Government Accounts consolidation data The NAO, as group auditor, requires us to complete the WGA Assurance Statement in respect of its consolidation data. We will submit this information to the NOA after the conclusion of our audit. Page 213
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05Internal control conclusions Page 214
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24 Internal control conclusions Overview of engagement As part of our audit, we obtained an understanding of Council’s internal control environment and control activities relevant to the preparation of the financial statements, which was sufficient to plan our audit and determine the nature, timing, and extent of our audit procedures. Although our audit was not designed to express an opinion on the effectiveness of Council’s internal controls, we are required to communicate to the Audit Committee any significant deficiencies in internal controls that we identified in during our audit. Deficiencies in internal control A deficiency in internal control exists if: • A control is designed, implemented, or operated in such a way that it is unable to prevent, detect, and/ or correct potential misstatements in the financial statements; or • A necessary control to prevent, detect, and/ or correct misstatements in the financial statements on a timely basis is missing. The purpose of our audit was to express an opinion on the financial statements. As part of our audit, we have considered Council’s internal controls relevant to the preparation of the financial statements to design audit procedures to allow us to express an opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Council’s internal controls or to identify any significant deficiencies in their design or operation. The matters reported in this section of our report are limited to those deficiencies and other control recommendations that we have identified during our normal audit procedures and which we consider to be of sufficient importance to merit being reported. If we had performed more extensive procedures on internal control, we might have identified more deficiencies to report or concluded that some of the reported deficiencies need not in fact have been reported. Our comments in this section should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made. The deficiencies Council’s internal controls that we have identified as at the date of this report are set out on the following pages. See Appendix E for the rating descriptions. Significant deficiencies in internal control A significant deficiency in internal control is one which, in our professional judgement, has the potential for financial loss, damage to reputation, or a loss of information which may have implications on the achievement of business strategic objectives. Our view is that observations categorised as a significant deficiency is of sufficient importance to merit the attention of the Audit Committee. We have not identified any significant deficiencies in the Council’s internal controls. Other observations We also record our observations on the Council’s internal controls where, in our professional judgement, there is a need to strengthen internal control or enhance business efficiency that do not constitute significant deficiencies in internal control but which we view as being important for consideration by management. Our other internal control observations, as at the date of this report, are set out in this section. These will be reported to management directly and have been included in this report for your information. Whether internal control observations merit attention by the Audit Committee and/ or management is a matter of professional judgment, taking into account the risk of misstatement that may arise in the financial statements as a result of those observations. Page 215
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25 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. Fixed Assets Register – Level 2 The fixed asset register provided to audit did not reconcile to the non-current asset balances in the annual accounts. Over the course of the audit officers updated the register and, although the overall difference is now trivial, it still does not fully reconcile. Potential effects Discrepancies between the fixed asset register and the annual accounts may result in incorrect or incomplete disclosures Recommendation Officers should review and update the fixed asset register to ensure it is accurate and complete. Management response The Council have commenced a project to upgrade or replace their financial ledger system. The intention is to fully incorporate a fixed asset register as part of this new/upgraded system which will reduce the risk of error associated with using a spreadsheet based fixed asset register. The new ledger system is expected to take approximately two years to complete. In the interim the Finance team are considering how the spreadsheet can be improved however due to the late completion of the 2022/23 audit these improvements are not reflected in the 2023/24 financial statement working papers. Page 216
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26 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. Bank reconciliations – Level 2 Our review of bank reconciliations identified a significant number of unmatched reconciling items dating back to the 2019/20 financial year. This had resulted from challenges officers had matching transactions relating to virtual credit cards between the financial ledger and bank statements. Potential effects Delays in clearing reconciling items identified in bank reconciliations increases the risk of fraud and error in the financial statements. Recommendation Officer should work to complete the exercise to review and clear all historic transactions with the virtual credit cards. Management response The creditors bank reconciliation shows items that are in the financial ledger but not on the bank statement and vice versa. There are compensating values which cannot be cleared until all transactions are posted for the virtual embedded cards. Officers are working together to resolve the action required to clear all earlier transactions with the virtual embedded cards. This does not represent a weakness in the bank reconciliation as the reconciliation is identifying the differences that require action to be taken. Page 217
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27 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. IT General Control: User Access Review – Level 3 We identified that the Council is not following its policy of performing periodic review of user access to the Agresso, Financial Ledger, system. We found, at the time of testing, that the last review was carried out in November 2021. The last comprehensive review, where managers were asked to review if system users in their team had changed post, responsibilities or left, was carried out in 2019. Potential effects Unauthorised users could have inappropriate access to systems which increases the risk of data breaches and fraud. Recommendation The Council should ensure Agresso user accounts are reviewed on a regular basis to verify: - that the user account is still valid (i.e. that the user account should be active); - access rights granted to the user account are aligned with the employee's functions within the Council. Management response Management accept that regular large scale reviews of Agresso user access are not being carried out. This is due to a need to commit limited resource to those areas of work where most value can be delivered. It is further noted there are compensatory controls in place to minimise risk including segregation between the three key types of entry (General ledger journals, creditor invoice posting and sales order invoicing) which means no single user can prepare an entry and approve it. Page 218
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28 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. IT General Control: Backup management policy– Level 3 We noted that, while systems are subject to backup protocols, the Council has no central backup policy. Potential effects The absence of clear guidance could increase the risk of data loss and impact business continuity. Recommendation The Council should implement a central backup policy covering: • location of backups • monitoring of backup jobs • retention timelines • testing of data restoration • disaster recovery (including testing). Management response A review of the full back up strategy is underway including related technical infrastructure and licences. A backup policy will be prepared to support this review. Timescale for completion of Back Up Policy is approx. 31/03/2025. Responsible officer – Chief Officer People & technology Timing – 31 March 2025 Page 219
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29 Internal control conclusions (continued) Follow up on previous internal control points We set out below an update on internal control points raised in the prior year. Description of deficiency Accounting for non-current assets We identified significant errors on the processing of non-current assets. This included the valuation of council dwellings, depreciation calculations, the capitalisation of staff costs and misclassification of assets. Potential effects If the accounting for non-current assets is not improved, future accounts could be materially misstated. Recommendation The council should review its capital accounting procedures for non-current assets, with a view to improving the systems used to record entries, compliance with accounting requirements, review processes, and communication with asset owners. Agreed Management action/timing A review will be carried out to properly understand any process failures relating to the management of the Council’s asset register. This will include giving consideration to the cost/benefit of replacing the current spreadsheet based asset register with a more robust bespoke system. 2022/23 update Ongoing. The recommendation and management proposed action is yet to be implemented. A spreadsheet-based asset register is still being maintained. Page 220
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30 Internal control conclusions (continued) Follow up on previous internal control points We set out below an update on internal control points raised in the prior year. Description of deficiency Debtors and creditors overstatement We identified a number of errors in the disclosures of debtors and creditors. This had the effect of reducing both assets and liabilities by £3.222 million. Potential effects There is a risk that the figures in the Balance Sheet are overstated. Recommendation Management should review the year-end procedures to ensure that debtors and creditors are correctly accounted for. Agreed Management action/timing An exercise will be carried out to review the audit adjustments required during the audit of the 2021/22 annual accounts which will inform improvement actions in advance of the preparation of the 2022/23 accounts. 2022/23 update Ongoing. There was no evidence to demonstrate that a detailed review of the creditors ledger and accompanying schedule was performed during the year. We identified material variances due to the schedules not being updated. Page 221
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31 Internal control conclusions (continued) Follow up on previous internal control points - Recommendations for charities administered by West Dunbartonshire Council We set out below an update on internal control points raised in the prior year. Description of deficiency CH1. Governance documentation and dormant activity As previously reported, some of the trusts have been dormant for a number of years, and new deeds of trust or governing documentation is required for the Dunbartonshire Educational Trust Scheme, the UIE award and the McAuley Prize for Mathematics. Potential effects There is a risk that funds are lying dormant and do not provide public benefit. Recommendation The trustees of the charities should continue to seek a resolution to legal and administrative barriers which prevent charitable objectives being achieved. This should include taking steps to make their existence more widely known, and applications more accessible. Agreed Management action/timing Further action will be taken to raise the profile of the charitable trusts in an attempt to encourage greater applications from qualifying parties. 2022/23 update - Closed The Dunbartonshire Educational Trust Scheme has most recently been amended by the Supplemental Deed of Trust of 2 December 2022. The amendments to the Trust brought about the supplemental deed were approved by OSCR. Further to the Deed of Trust by U.I.E. Shipbuilding (Scotland) Limited dated 9 May 1983, a petition was granted on 5 September 2023 at Dumbarton Sheriff Court appointing new trustees. The McAuley Prize for Mathematics is a separate trust that is administered by the Governors (i.e. trustees) of the Dunbartonshire Educational Trust. Page 222
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06Summary of misstatements Page 223
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33 Summary of misstatements We set out below and on the following pages a summary of the misstatements we identified during our audit, above the trivial threshold for adjustment of £0.250m. The first table in this section sets out the misstatements we identified which management has assessed as not being material, individually or in aggregate, to the financial statements and does not plan to adjust. The second table outlines the misstatements we identified that have been adjusted by management. Our overall materiality, performance materiality, and clearly trivial (reporting) threshold were reported in our Annual Audit Plan, issued on 20 April 2023. Any subsequent changes to those figures are set out in the section 3 of this report. Page 224
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34 Summary of misstatements Unadjusted misstatements Management has assessed the misstatements in the table below as not being material, individually or in aggregate, to the financial statements and does not plan to adjust. We only report to you unadjusted misstatements that are either material by nature or which exceed our reporting threshold. Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) Dr: Pension assets Cr: Pension reserve To adjust for error apportioned to West Dunbartonshire Council from Strathclyde Pension Fund for understatement of private equity, debt infrastructure and direct impact portfolio. 2,958 2,958 Dr: Property, plant and equipment Cr: Revaluation surplus To adjust for the understatement of property, plant and equipment resulting from use of a different methodology by the Council for revaluation of assets valued on a Depreciated Replacement Cost (DRC) basis. 3,344 3,344 Aggregate effect of unadjusted misstatements 6,302 6,302 We will obtain written representations confirming that, after considering the unadjusted misstatements, both individually and in aggregate, in the context of the financial statements taken as a whole, no adjustments are required. Page 225
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35 Summary of misstatements (continued) Adjusted misstatements The misstatements in the table below have been adjusted by management. We report all individual misstatements above our reporting threshold that we identify during our audit and which management had adjusted and any other misstatements we believe the Audit Committee should be made aware of. Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) Interest Payables and Similar Charges Mortgage Loans Financial Instrument Adjustment Account Appropriation to Financial Instrument Adjustment Account Adjustment to reverse historical Effect Interest Rate on repaid loans. 370 370 370 370 Pension Reserve Net Pension Assets Adjustment to Net pension asset for asset ceiling 275,632 275,632 Revenue Support Grant Education Services Adjustment to reclassify revenue. 2,135 2,135 Page 226
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36 Summary of misstatements (continued) Adjusted misstatements (continued) Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) PPP Admin Charges CFR Principal Repayments PPP Finance Liability Interest Payables and Similar Charges Capital Adjustment Account Adjustment to correctly state the PPP service concession balance in line with the model. 363 1,080 74 1,369 1,080 360 286 74 1,080 Property, Plant and Equipment (Other land and building) Revaluation Reserve Adjustment to correct the carrying value of other land and buildings for six DRC revalued assets. 24,908 24,908 Property, Plant and Equipment (Other land and building) Revaluation Reserve Capital Adjustment Account Revaluation of other land and buildings to address risk of material misstatement in assets not valued in year under rolling programme. 29,061 28,228 833 Page 227
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37 Summary of misstatements (continued) Adjusted misstatements (continued) Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) Gain/Loss on Fixed Assets Disposals Property, plant and equipment Adjustment to correctly state the gain/loss on disposals of property, plant and equipment. 337 337 Aggregate effect of adjusted misstatements 4,285 3,948 331,411 331,748 Page 228
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38 Summary of misstatements (continued) Adjusted misstatements (continued) Adjusted misstatements - Prior year comparatives Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) Share of other Comprehensive Income and Expenditure of Associates and Joint Ventures Investment in Associates & Joint Ventures Group Usable Reserves Group Unusable Reserves Removal of associates from group accounts. 182 6,910 12,462 19,554 Aggregate effect of adjusted misstatements 182 19,372 19,554 Page 229
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39 Summary of misstatements (continued) Disclosure misstatements We identified the following disclosure misstatements during our audit that have been corrected by management. Management commentary: • Update to the management commentary to include non-financial key performance indicators. Remuneration and staff report: • Update to the remuneration disclosures to cover all senior councillors in post at any point during the year. Balance sheet: • Correction of transposed numbers in the Group balance sheet. • Update to carrying amount of Long-Term Investment in the Group balance sheet. • Reclassification adjustment to correctly state Health and Social Care Partnership reserves and advances. Cash flow statement: • Missing figures for repayment of short-term and long-term borrowing. • Inclusion of Group cash flow statement in the financial statements. • Inclusion of disclosure of the reconciliation of the liabilities arising from financing activities to both the Council and Group cash flow statements. Movement in reserve statement: • Correction of a net movement of £0.466 million between total usable reserves and unusable reserves of the Group. Page 230
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40 Summary of misstatements (continued) Disclosure misstatements (continued) We identified the following disclosure misstatements during our audit that have been corrected by management. Accounting policies: • Update to accounting policies to ensure compliance with the Code. Significant judgements and uncertainties: • Removal of uncertainty over future funding from significant uncertainties. • Removal of Strathclyde Partnership for Transport and Strathclyde Concessionary Travel Scheme Joint Committee under entities which Council exerts significant influence over. Related parties: • Update to disclosure for capital grants balance and related disclosures. • Update to voluntary bodies being disclosed as related parties. • Update to disclosure of related party balances and transactions with West Dunbartonshire Leisure Trust, Clydebank Property Company and West Dunbartonshire Energy LLP. Pensions: • Inclusions about the judgements made in recognising or measuring the net pension assets. • Update to pension disclosure around the perpetuity basis of measurement of the potential future benefits. Page 231
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41 Summary of misstatements (continued) Disclosure misstatements (continued) We identified the following disclosure misstatements during our audit that have been corrected by management. Financial instruments: • Update to disclosures to reflect IFRS 9, including reclassification of temporary investments. Dr. A.K Glen and West Dunbartonshire Trust Funds Accounts We identified the following disclosure misstatements during our audit that have been corrected by management. Balance Sheet Presentation : • Cash and bank heading to be changed to other assets given there are no funds held by the Trust itself. There were other adjustments to the annual report and accounts of the Council and Charitable Trusts for minor disclosure, consistency or presentational matters. We will obtain written representations confirming that, after considering the unadjusted disclosure misstatements, both individually and in aggregate, in the context of the annual report and financial statements taken as a whole, no adjustments are required. Page 232
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07Wider scope Page 233
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Commentary on Wider Scope Overall Summary Page 234
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44 Commentary on Wider Scope Wider scope summary As auditors appointed by the Accounts Commission, our wider scope responsibilities are set out in the Code of Audit Practice 2021 and sits alongside Best Value requirements detailed in the Local Government (Scotland) Act 1973. The Code requirements broaden the scope of the 2022/23 audit and allow us to use a risk-based approach to report on our consideration of the Council’s performance of best value and community planning duties and make recommendations for improvement and, where appropriate, conclude on the Council’s performance. The Code’s wider scope framework is categorised into four areas: • financial management; • financial sustainability; • vision, leadership and governance; and • use of resources to improve outcomes. Overall summary by reporting criteria From the satisfactory conclusion of our work, we have the following conclusions: Blank Reporting criteria Commentary page reference Identified risks? Actual risks identified? Other recommendations made? Financial management 45 No No Yes – see commentary on page 50 Financial sustainability 51 Yes – see risk 1 on page 52 No No Vision, leadership and governance 54 No No No Use of resources to improve outcomes 58 No No No Page 235
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Commentary on Wider Scope Financial management Financial management is concerned with financial capacity, sound budgetary processes and whether the control environment and internal controls are operating effectively. Page 236
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46 Financial management Our overall assessment Area assessed Our findings Our judgements Risks identified Financial management culture The Council has approved a Local Code of Corporate Governance. This sets out its commitment to achieving good governance. The Code covers how the Council will manage risks and its performance through robust internal control and strong public financial management. The Council has a system of internal control which is designed to manage risk to a reasonable level. Key features include: • Codes of conduct for employees and members • Scheme of delegation, standing orders and financial regulations • Regular management information, financial regulations and a system of delegation and accountability • A risk management framework and strategic risk register • An induction programme for new and returning councillors and regular training seminars. The Council has an appropriate financial management culture in place. It reviews its system of internal financial control annually. No significant issues identified. Page 237
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47 Financial management (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Accountability In 2022/23, the Council recorded a deficit of £6.6 million after a planned use of reserves of £9.1 million, resulting in an overall decrease in the Council’s general fund of £15.7 million. During 2022/23, the Scottish Government issued Finance Circular 10/2022, permitting councils to apply flexibility for service concession arrangements entered into prior to April 2022. The Council applied this, resulting in repayment of the liability being reprofiled over the asset life, therefore extending the repayment period. This resulted in the General Fund balance increasing by £29.7 million to £44.8 million. The Council approved application of the service concession flexibility in December 2022. Finance Circular 10/2022 requires that reporting to Council is explicit that this change is prudent, sustainable and affordable over the life of the asset. The Council paper does not make this clear. The Council’s general fund reserves at 31 March 2023 were £29.1 million. The Council has a policy of holding a minimum uncommitted balance of 2% of its budgeted net annual running costs. At 31 March 2023 it had £4.5 million of free reserves, which is 2.6% of annual running costs. In December 2022, the Council agreed to increase the target level of free reserves to 3% for 2023/24. Officers report financial performance to the Council on a regular basis. The Council has significantly increased its general fund reserves through application of the service concession flexibility. It could have reported the implications of this change more clearly to members. The Council has an effective process for setting and agreeing its budget with savings options considered by members in two tranches. Compliance with Finance Circular 10/2022 – Level 2 Officers should ensure significant changes in accounting arrangements are clearly reported to Council with justification that these are prudent, sustainable and affordable. See page 53 for further information and our recommendations made to the Council. Page 238
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48 Financial management (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Accountability (continued) The Council continues to report significant slippage on the capital plan. The Council reported an underspend of £70 million against its £132 million capital budget for 2022/23. In response, it has improved management of its capital plan and is reviewing capital reporting arrangements. See page 56 for further details. Officers presented regular financial updates and budgetary control reports to Council meetings through the year. These explained significant budget variances and provided updates on the progress of agreed savings. The Council agreed its 2023/24 budget in March 2023. The budget included agreed savings of £11.8 million and use of reserves of £5.2 million as the main measures to meet a funding gap of £22.1 million. The Council considers savings options in two tranches, at the meeting prior to the budget setting meeting and at the budget meeting. This is effective in giving councillors more opportunity to consider savings options. Page 239
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49 Financial management (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Arrangements to prevent and detect fraud, error and other irregularities, bribery and corruption The Council has established arrangements for preventing and detecting fraud and corruption. These include: • Whistleblowing policy • Anti-fraud strategy • Codes of conduct for councillors and officers. The Council has a dedicated fraud team to investigate fraudulent claims covering tenancy, procurement, council tax reduction, Scottish Welfare Fund, social care, employee, insurance, council tax exemptions and discounts and blue badges. Individuals can report concerns by phone, email or through an online form on the Council’s website. . The Council has appropriate arrangements to prevent and detect fraud and corruption. No significant issues identified. Page 240
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50 Financial management (continued) Identified risks in financial management arrangements and recommendations for improvement As a result of our work we have identified risks in the Council's financial management arrangements. These identified risks have been outlined in the table below. We have assigned priority rankings to each of them to reflect the importance that we consider each poses to your organisation and, hence, our recommendation in terms of the urgency of required action; see Appendix E for further details. Bl an k Financial management risks identified Recommendation for improvement Council response and implementation timescale 1 Compliance with Finance Circular 10/2022 – Level 2 The Council approved application of the service concession flexibility in December 2022. Scottish Government Finance Circular 10/2022 requires that reporting to Council is explicit that this change is prudent, sustainable and affordable over the life of the asset. The Council paper does not make this clear. The Council should ensure significant changes in accounting arrangements are clearly reported to Council with justification that these are prudent, sustainable and affordable. Management’s response The financial and operational impact of any future material changes to accounting arrangements will be reported to Council as required by the relevant Finance Circular, or equivalent. Responsible officer Chief Officer Resources Implementation date 1 April 2024 Page 241
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Commentary on Wider Scope Financial sustainability Financial sustainability looks forward to the medium and longer term to consider whether the body is planning effectively to continue to deliver its services or the way in which they should be delivered. Page 242
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52 Financial sustainability Significant risks We have outlined below the significant risks in arrangements that we have identified as part of our continuous planning procedures, and the work undertaken to respond to each of those risks. Blank Significant Risk in Arrangements Identified Work undertaken and the results of our work 1 Financial sustainability The Council faces significant financial challenges in the years ahead. It has high rates of borrowing, so rising interest rates have had a disproportionate impact on its finances. The Council will have to absorb inflationary pressures, pay award increases and higher energy costs. It has had to use reserves to fund budget gaps. Looking ahead, the Council is forecasting a budget gap of £9.7 million for 2024/25. This represents a risk to the Council’s financial sustainability, which could impact the future provision of services in its area. Work undertaken We reviewed the Council’s: • medium to long term financial strategy; • financial position and track record in delivering planned recurrent and non-recurrent savings in 2022/23; • financial performance in 2023/24 and updates to its financial planning during the year, including the implications for general reserves balances; • regular reporting to members on financial performance, savings plans and financial risks; and • progress in developing plans to address future year budget gaps. Results of our work • The Council updated its long term financial strategy in December 2023. The strategy estimates budget gaps over a five year period to 2028/29. It also provides contextual information on the economic and national environment the Council is operating in. • The Council achieved planned savings in 2022/23. However, it reported an overall deficit which it funded from reserves. • The Council agreed a balanced budget for 2023/24. The budget included agreed savings of £11.8 million and use of reserves of £5.2 million as the main measures to meet a funding gap of £22.1 million. The Council has significantly increased its general fund reserves through application of the service concession flexibility. It has also used the one off benefit of this change to establish a £6 million smoothing fund to support a three year service transformation programme. • Officers present regular financial updates and budgetary control reports to Council meetings. These provide an update on the general services revenue budget and the Council’s capital programme. Reports include additional information on budget variances greater than £50,000 and updates on the progress of agreed savings. • The Council has established budget working groups to ensure budget options and savings are identified and discussed early, and in line with its priorities. These start in August and continue until the budget is agreed by Council. The Council considers savings options in two tranches, at the Council meeting in December and at the budget setting meeting in March. This is effective in giving councillors more opportunity to consider savings options. Page 243
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53 Financial sustainability (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Financial planning Officers present four financial updates a year to Council meetings. These provide an update on the financial challenges facing the Council and estimated revenue budget gaps under best case, worst case and mid-range scenarios. Scenarios are based on financial planning assumptions that are updated by officers on an ongoing basis. The Council faces a very challenging financial position. It is forecasting cumulative budget gaps rising from £17 million in 2024/25 to £49.3 million in 2028/29. The Council approved an updated long-term financial strategy in December 2023. This uses the same methodology as the financial updates to forecast future budget gaps. The Council has established a budget working group as a sounding board to assist in the savings identification process and provide a degree of scrutiny over options as they are developed. The group has no decision-making authority. The meetings involve the Leader, Deputy Leader, Chief Executive and chief officers. These start in August and continue until the budget is agreed by Council. The Council has effective financial planning, with an established process to ensure budget decisions and savings are agreed early. Councillors and officers need to continue working together to make the difficult decisions to respond to the Council’s challenging financial position. No significant issues identified. Page 244
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Commentary on Wider Scope Vision, leadership and governance Vision, Leadership and Governance is concerned with the effectiveness of scrutiny and governance arrangements, leadership and decision making, and transparent reporting of financial and performance information. Page 245
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55 Vision, leadership and governance Our overall assessment Area assessed Our findings Our judgements Risks identified Clarity of plans to implement the vision The Council adopted its Strategic Plan 2022 – 2027 in October 2022. This sets a clear vision and key commitments for the Council over the five-year period. It has three outward looking priorities: • Our communities are resilient and thriving. • Our environment promotes a greener future. • Our economy is strong and flourishing. It also has an inward facing priority; our Council is inclusive and adaptable. The Council’s strategic plan and delivery plans set out actions to tackle inequality and poverty in West Dunbartonshire. This includes commitments to support young people and create employment opportunities for disadvantaged people. The Council has a clear vision with three outward facing priorities and one inward looking. No significant issues identified. Strategy and priorities The Council has described what success will look like for each of its objectives. The strategic plan also includes measures of success for each priority and sets out key commitments. The strategic plan measures are based on improving key performance indicators over the five years of the plan. Services are responsible for setting targets for these measures in delivery plans and regularly monitoring and reporting progress. The Council’s strategic plan sets out objectives, measures of success and key commitments under each priority. No significant issues identified. Page 246
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56 Vision, leadership and governance (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Governance arrangements The Council’s governance arrangements are centred on Council meetings, service committees and the Audit Committee. The Audit Committee is chaired by the Leader of the largest opposition party in line with accepted good practice. Council and Audit Committee meetings are well attended by councillors and papers are subject to a good level of scrutiny. Audit Committees are held in person and Council meetings can be attended in person or remotely. Council and committee meeting papers and minutes are available on the Council’s website and meetings are open to the public. Council meetings include an open forum where members of the public can ask pre-submitted questions. The Council has appropriate governance arrangements in place. We found evidence of effective scrutiny and challenge, and transparent decision making at Council and Audit Committee meetings. No significant issues identified. Page 247
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57 Vision, leadership and governance (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Financial and performance information Officers present regular financial updates and budgetary control reports to Council meetings. The budgetary control reports provide an update on the general services revenue budget and the Council’s capital programme. These reports include additional information on budget variances greater than £50,000 and updates on the progress of agreed savings. The Council reports mid and year-end progress against delivery plans to councillors through its service committees. These reports show the performance of each service against its performance indicator targets and progress in delivering agreed actions. The annual performance report is presented to the Council and is published on the Council’s website. The report includes, for each strategic priority: • an overview of progress against targets; • key achievements; • a snapshot of residents' feedback; and an overview of what Local Government Benchmarking Data says about the Council’s performance. The Council provides councillors with sufficient information to allow effective scrutiny of its finances and performance. The Council’s annual performance report is clearly presented and accessible. No significant issues identified. Page 248
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Commentary on Wider Scope Use of resources to improve outcomes Audited bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. This includes demonstrating economy, efficiency, and effectiveness through the use of financial and other resources and reporting performance against outcomes. Page 249
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59 Use of resources to improve outcomes Our overall assessment Area assessed Our findings Our judgements Risks identified Resources deployed to improve strategic outcomes The Council’s People First Strategy 2022-2027 sets out how its people will support delivery of the strategic plan. The strategy is based on the employee life cycle and focuses on a different stage each year. The Council implemented an updated workforce planning and strategy in February 2023. This aims to ensure council services have: • The right shape • The right skill set • The right number of employees • People in the right location • People at the right time and within budget. In recent years, the Council’s challenging financial position and ageing workforce has affected capacity. The Council has found recruitment into some roles to be challenging and is looking at different approaches. For example, through graduate, school leaver and modern apprenticeship programmes. The Council’s 2023/24 budget, agreed in March 2023, reflected its strategic priorities. There is evidence of budget decisions that support the council’s four priorities. The council also made revenue and capital budget available to reduce inequalities, for example by supporting cost-of-living funds and providing financial assistance to disadvantaged tenants. The Council’s resource plans are aligned with its strategic plan. It can demonstrate 2023/24 budget decisions which reflected its strategic priorities. No significant issues identified. Page 250
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60 Use of resources to improve outcomes (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Needs of service users being met The Council’s delivery plans set out how it will achieve its strategic priorities. Each service has a delivery plan with: • actions to be taken by the service to support the strategic plan • work to address performance challenges • service priorities identified in the planning process. The delivery plans include action plans aligned to the Council’s strategic priorities and objectives. These have performance indicators and annual targets to measure improvement. The Council reports mid and year-end progress against delivery plans to councillors through its service committees. This information is also available to the public on the Council’s website. The Council consults with its people and communities on local service design and delivery through: • Public consultations • Citizens Panel – a group of residents who have volunteered to give their views on local issues and priorities • Monthly telephone surveys. The findings are published on the Council’s website. The Council, through its delivery plans, has identified how services will contribute to achievement of its strategic priorities and objectives. The Council consults regularly with service users to understand how it can meet their needs. No significant issues identified. Page 251
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61 Use of resources to improve outcomes (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Arrangements to deliver continuous improvements in priority services The Council’s strategic plan sets clear objectives and highlights the services it plans to prioritise. The strategic plan measures are based on improving key performance indicators over the five years of the plan. Services are responsible for setting targets for these measures in delivery plans and regularly monitoring and reporting progress. Fit for Future is the Council’s approach to service innovation. Subject matter experts are brought into a service to review it, make recommendations, and identify savings. Seven Fit for Future reviews have been carried out across seven service areas. The review team reports findings back to the service using infographics and show and tell presentations. The reviews have helped services to identify budget savings options. The Council has clear priorities and suitable arrangements in place to measure improvement. The Council is looking at opportunities to make efficiencies through service innovation. No significant issues identified. Page 252
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63 Best Value Overall summary by reporting criteria Subject to the satisfactory conclusion of our audit work, we have the following conclusions: Blank Reporting criteria Commentary page reference Identified risks? Actual risks identified? Other recommendations made? Best Value 64 No No No Thematic reviews 70 No Yes – see recommendation on page 73 Yes – see commentary on page 73 Climate change 74 No No No Statutory Performance Indicators 75 No Yes – see recommendation on page 76 Yes – see commentary on page 76 Service Performance 77 No No No Page 254
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64 Best Value (continued) Best Value summary Under the Code of Audit Practice, the audit of Best Value is fully integrated within our annual audit work. We are required to assess the seven Best Value themes at the Council over the period of the audit appointment. We have used a risk-based approach that is proportionate to the size and type of the body, to assess whether the Council has made proper arrangements for securing Best Value and is complying with its community planning duties. We have also followed up on previously reported Best Value findings which has assessed the pace and depth of improvement implemented by the Council. We will also conduct thematic reviews as directed by the Accounts Commission. In 2022/23 this will be on the effectiveness of council leadership in developing new strategic priorities following the elections in May 2022. We have prepared a separate management report to document the findings of this work which can be found on Audit Scotland’s website. At least once every five years, the Controller of Audit will report to the Accounts Commission on the Council’s performance in meeting its Best Value duties. The Council is included in the first year of the programme which runs from October 2023 to August 2024. At the planning stage of the audit, we undertook work to understand the arrangements that the Council has in place under each of the reporting criteria and we considered whether there were any risks to our audit in those arrangements. We have kept our understanding of arrangements under review and updated our risk assessment throughout the audit to reflect emerging issues that may suggest significant risks in arrangements exist. The following slides outline the work that we have undertaken for each of the seven Best Value themes and any improvements or risks in arrangements that have been identified as part of our assessment. We have reported recommendations for the risks identified. Page 255
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65 Best Value (continued) Our overall assessment of the Best Value themes Best Value theme Our findings Our judgements Service improvement considerations Risks identified Vision and leadership Our 2022/23 Best Value thematic review considered: • How clear is the new Council vision and its priorities? • Overall, how effective has the leadership been (political and officer) in setting clear priorities and a sustainable approach to delivering them? The Council has a clear vision with three outward facing priorities and one inward looking. The Council needs to maintain effective leadership to continue to achieve its priorities and to make the difficult decisions to respond to its challenging financial position None identified. No significant issues identified. Governance and accountability Our 2022/23 wider scope work considered: • Whether the Council can demonstrate that its governance arrangements are appropriate and operating effectively? • Is there evidence of effective scrutiny, challenge and transparency on decision making at governance committees? See page 56. The Council has appropriate governance arrangements in place. We found evidence of effective scrutiny and challenge, and transparent decision making at Council and Audit Committee meetings. None identified. No significant issues identified. Page 256
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66 Best Value (continued) Our overall assessment of the Best Value themes (continued) Best Value theme Our findings Our judgements Service improvement considerations Risks identified Effective use of resources Our 2022/23 Best Value thematic review considered: • How good are the delivery plans and is there alignment of financial, workforce, asset and digital plans with the Council’s priorities? The Council’s delivery plans, and workforce and digital strategies are aligned with its strategic plans. It can demonstrate 2023/24 budget decisions which reflected its strategic priorities. None identified. No significant issues identified. Partnerships and collaborative working We did not assess this theme in 2022/23. N/A N/A N/A Working with communities Our 2022/23 Best Value thematic review considered: • How effectively have the views of citizens and communities been reflected in the priorities and decisions taken by the Council? The Council knows it needs to work effectively with citizens and communities to achieve its strategic objectives. Community budgeting and participatory budgeting are two ways it is involving local people in decision making. None identified. No significant issues identified. Page 257
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67 Best Value (continued) Our overall assessment of the Best Value themes (continued) Best Value theme Our findings Our judgements Service improvement considerations Risks identified Sustainability We did not assess this theme in 2022/23. N/A N/A N/A Fairness and equality Our 2022/23 Best Value thematic review considered: • How effectively do the Council priorities reflect the need to reduce inequalities? Actions to reduce inequalities underpin the Council’s priorities and objectives. The Council is focussing on providing support to communities affecting by the cost- of-living crisis. The Council’s Equality Impact Assessments (EIA) incorporate the Fairer Scotland duty and consider human rights implications. Officers are required to complete EIAs before recommending decisions which affect the community and equality groups. None identified. No significant issues identified. Page 258
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68 Best Value (continued) Follow up of previously-reported recommendations We are required to follow up Accounts Commission findings, Controller of Audit recommendations and any outstanding improvement actions reported in Best Value Assurance Reports and Annual Audit Reports. In June 2018 Audit Scotland reported recommendations to the Council/Authority to address risks identified from our Best Value audit. As part of our work in 2022/23, we followed up the progress made by the Council/Authority against the recommendations made, and determined whether the risk remained during the year. b l a n k Best Value finding as reported by previous auditor Management response and implementation timeframe Work undertaken and judgements made in 2022/23 Conclusions reached 1 Capital plan slippage To reduce the level of slippage on the capital plan, the Council should review its project management processes. Management Response: (West Dunbartonshire Council Best Value Assurance Improvement Plan – July 2018): Carry out review of current practice against good practice guide and identification of improvement actions. Analysis of drivers of slippage in capital projects (previous five years) to identify common issues and improvement actions. Update project management framework and supporting policies/ guidance. Put in place review programme for project management framework. Implementation timescale: January 2019 Progress against the recommendation We discussed progress with Council officers and reviewed supporting documentation. The Council has improved the management of its capital plan by: • Reviewing the ten-year capital plan to reduce capital commitments. • Strengthening the process to assess future bids for additions to the capital programme. • Regular reporting to council and service committees through budgetary control reports. Officers planned to review capital reporting arrangements in 2023/24 to ensure clearer reporting on the progress of projects and reduce the resource required to prepare reports. It will take time for these actions to have an impact. The Council reported an underspend of £70 million against its £132 million capital budget for 2022/23. Conclusions The Council continues to report significant slippage on the capital plan. In response, it has improved management of its capital plan and is reviewing capital reporting arrangements. We understand that officers have now implemented the new arrangements. We will review these as part of our 2023/24 audit. Page 259
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69 Best Value (continued) Follow up of previously-reported recommendations (continued) b l a n k Best Value finding as reported by previous auditor Management response and implementation timeframe Work undertaken and judgements made in 2022/23 Conclusions reached 2 Staff absence Some staff are finding the pace of change challenging and staff absence remains an issue. The Council is taking positive steps to try and address this and should continue to explore opportunities for improvement. Management Response: (West Dunbartonshire Council Best Value Assurance Improvement Plan – July 2018): Implement action plans supporting employee wellbeing strategy with focus specifically on physical and mental health. Additional functionality to be added to workforce management system to enable more effective reporting/ management of sickness absence. Target team specific change support/ training on a project-by-project basis. Introduce routine scrutiny of attendance management process compliance through workforce management system reports. Lean process improvement approach embedded in wider strategic improvement framework. Implementation timescale: October 2019 Progress against the recommendation The Council has taken a range of actions to support staff and reduce absence. This includes forming groups and networks to improve employee wellbeing. Employee wellbeing is part of the council’s People First Strategy. The Council is working to ensure its people have regular open and honest conversations with managers about wellbeing and can proactively access help and support for their mental and physical health. It will take time for the impact of this work to be reflected in sickness absence data. The 2022/23 Local Government Benchmarking Framework (LGBF) data shows that sickness absence days per employee have increased to 6.4 days for teachers and 15.3 days for other local government employees. The Council’s position against other councils has declined to 12th for teachers and 27th for other local government employees. The Council’s own performance data shows that there has been a small improvement in full time equivalent days lost per employee for all staff (14 full time equivalent average days lost in 2022/23 compared to 14.55 average days in 2021/22). Conclusions The Council has taken action to support staff and reduce absence. It has a longer-term plan to improve employee wellbeing over the next five years. It will take time for this work to have an impact and the latest LGBF data shows that the Council’s sickness absence rates have increased and its performance relative to other Scottish councils has declined. Page 260
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70 Best Value (continued) Thematic reviews The Accounts Commission reports nationally on thematic aspects of local government bodies’ approaches to, and performance in, meeting their Best Value and community planning duties. As appointed auditors of the Council we are required to report on Best Value and related thematic work as prescribed by the Accounts Commission. For the thematic work in 2022/23, we are required to carry out an overview of the effectiveness of the Council’s leadership (officers and elected members) in developing new local strategic priorities following the elections in May 2022. As part of this review, we are required to report on the areas documented in the table below. The full thematic review report for the Council can be found on Audit Scotland’s website. Thematic themes Our findings Our judgements Risks identified Council vision and priorities The Council adopted its Strategic Plan 2022 - 2027 in October 2022. This sets a clear vision and key commitments for the Council over the five-year period. The Council developed its strategic priorities with partners and communities. This started before the May 2022 elections with a review of all consultations, benchmarking, engagement with the Citizens Panel and telephone surveys leading to the development of a strategic needs assessment. The Council has described what success will look like for each of its objectives. The strategic plan also includes measures of success for each priority. The Council has a clear vision with three outward facing priorities and one inward looking. The Council’s strategic plan sets out objectives, measures of success and key commitments under each priority. No significant issues identified. Page 261
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71 Best Value (continued) Thematic reviews (continued) Thematic themes Our findings Our judgements Risks identified Citizen and community engagement The Council developed its Community Empowerment Strategy and Action Plan with the community to provide a shared vision of empowerment. The Council aims to improve community empowerment by understanding the barriers that prevent or delay it. The Council is using community budgeting and participatory budgeting to involve local people in decision making. The Council is considering how it can support more local participation in decision making and is finding more flexible ways to involve communities in decision making. The Council knows it needs to work effectively with citizens and communities to achieve its strategic objectives. Community budgeting and participatory budgeting are two ways it is involving local people in decision making. No significant issues identified. Reducing inequalities and tackling climate change Chief officers and elected members are very aware of the high levels of inequality experienced by West Dunbartonshire citizens. The Council’s strategic plan and delivery plans set out actions to tackle inequality and poverty in West Dunbartonshire. This includes commitments to support young people and create employment opportunities for disadvantaged people. One of the Council’s new strategic priorities covers environmental sustainability, “Our environment promotes a greener future”. The Council’s environmental outcomes include reducing C02 emissions in the local area by working with residents and businesses. It also aims to ensure the economy and infrastructure of the area are low carbon and environmentally friendly. Actions to reduce inequalities and combat climate change underpin the Council’s priorities and objectives. One of its strategic priorities specifically covers environmental sustainability. The Council is focussing on providing support to communities affected by the cost-of-living crisis. No significant issues identified. Page 262
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72 Best Value (continued) Thematic reviews (continued) Thematic themes Our findings Our judgements Risks identified Alignment of delivery plans The Council’s delivery plans set out how it will achieve its strategic priorities. The delivery plans include action plans aligned to the Council’s strategic priorities and objectives. The Council’s People First Strategy 2022-2027 sets out how its people will support delivery of the strategic plan. The Council has also implemented an updated workforce planning strategy and framework. The Council has recently reviewed and updated its digital strategy. It is aiming to use technology better to support service delivery and provide employees with the technology needed to do their jobs effectively. The Council’s 2023/24 budget reflected its strategic priorities. There is evidence of budget decisions that support the council’s four priorities. The Council also made revenue and capital budget available to reduce inequalities, for example by supporting the cost-of-living funds and providing financial assistance to disadvantaged tenants. The Council’s delivery plans, and workforce and digital strategies are aligned with its strategic plan. It can demonstrate 2023/24 budget decisions which reflected its strategic priorities. No significant issues identified. Page 263
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73 Best Value (continued) Thematic reviews (continued) Thematic themes Our findings Our judgements Risks identified Leadership The Council’s Chief Executive and Council Leader have a good working relationship and meet regularly. The Chief Executive, Leader and chief officers have weekly meetings covering areas including the Council’s finances, emerging issues and communications. They also have monthly or bi-monthly meetings focused on performance and transformation. Officers and administration elected members worked together to develop a strategic plan with clear priorities, objectives, and measures of success. The cost-of-living working group is another example of elected members (including opposition councillors) and officers collaborating to make decisions that benefit the community. The number of chief officers reduced by 0.5 full time equivalent in 2023. The Chief Executive reviewed the organisational structure at chief officer level. Following this review, the Council agreed a new organisational structure with the remaining senior officers all taking on additional responsibilities. There is a risk that the new structure could impact on the capacity of the leadership team with chief officers having a wide range of duties. The Council is using its new structure to ensure services are better aligned. It hopes this will create efficiencies and increase chief officer capacity by encouraging services to work more closely together. The council should continue to review the capacity of its leadership team to deliver its strategic priorities and objectives. Administration elected members and officers worked together to agree clear strategic priorities, objectives, and measures of success. The council needs to maintain effective leadership to continue to achieve its priorities and make the difficult decisions to respond to its challenging financial position. Leadership capacity (Level 2) Risk – Senior officers do not have the capacity to support the Council to achieve its priorities. Recommendation – The Council should review whether its leadership team has sufficient capacity to deliver its strategic priorities and objectives. Management’s response – The Chief Executive carried out an extensive review in June 2023 prior to the revised structure being presented to Committee. This included consultation with all Chief Officers and the Council administration. The review considered capacity, revised workloads and which services would work best within the same Chief Officer area to enable the Council to achieve its strategic objectives. As with any senior structure it will be kept under review however it is considered premature to undertake a more formal review until the structure has been in place for sufficient time to test the new arrangements. Accordingly we agree that a review is appropriate in the timescale indicated. Responsible officer – Chief Executive Implementation date – The Chief Executive has reviewed leadership capacity and confirmed that the current structure remains appropriate. Page 264
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74 Best Value (continued) Climate change In October 2021, the Scottish Government issued ‘Public Sector Leadership on the Global Climate Emergency’ guidance. This recommended that public bodies should consider climate risk and adaption; reporting to external frameworks; and climate change performed linked to their objectives to ensure clear accountability on performance. In September 2022, Audit Scotland issued ‘Scotland's councils' approach to addressing climate change’ guidance which highlighted the critical role that Councils have in meeting Net Zero targets by 2045. Councils should consider their plans to make sure they are adequate, there is transparency in what is included in targets, ensure actions are clear, and that detail is included about how the Council will deal with residual emissions. They should also be more transparent about any gaps between the level of impact their planned actions will have and the scale of the challenge. The guidance also highlights the importance of collaboration across councils, key partners and local communities. The Auditor General and Accounts Commission are developing a programme of work on climate change. This involves a blend of climate change-specific outputs that focus on key issues and challenges as well as moving towards integrating climate change considerations into all aspects of audit work. Our commentary of the Council’s climate change arrangements The Council’s environmental outcomes include reducing C02 emissions in the local area by working with residents and businesses. The Council also aims to ensure the economy and infrastructure of the area are low carbon and environmentally friendly. It has set itself three targets: • an interim target of a 61% reduction in C02 emissions by 2030/31 (against the 2012/13 baseline) • an interim target of an 87% reduction by 2040/41 • net zero by 2045/46. The Council has developed a Climate Change Strategy which is its route map to net zero emissions. This outlines the Council’s plans for reducing its environmental impact over five years from 2021/22 and beyond. It also has a Climate Change Action Plan setting out actions it will take now and in the longer term to mitigate climate change and adjust to its impact. This includes overarching and service specific actions. The Council monitors the progress of the Climate Change Action Plan through annual reporting to the Infrastructure, Regeneration & Economic Development Committee and mid year and year end reporting against the Regulatory and Regeneration Services Delivery Plan. The Council’s Climate Change Action Group also monitors progress. The senior management team receive updates through the Recovering and Renewal Board on a quarterly basis. Officers have not considered the specific impact of climate change on the financial statements. However, the annual accounts include relevant income and expenditure relating to the climate change response. The management commentary in the annual report and accounts discloses the Council’s performance against its Carbon Management Plan. It also provides details of the Council’s carbon emissions targets and how the Council will monitor progress against the Climate Change Action Plan. Page 265
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75 Best Value (continued) Statutory Performance Indicators We are required to report on the Council’s effectiveness and appropriateness of arrangements in place for complying with the Direction issued in December 2021, including the balance and timeliness of reporting to members along with its accessibility for citizens and communities. The table below details our overall assessment of the Council’s statutory performance indicators arrangements: Council’s arrangements Our findings Our judgements Risks identified Statutory Performance Indicator 1: Improving local services and local outcomes Statutory Performance Indicator (SPI) 1 requires a council to report its performance in improving local public services and progress against agreed desired outcomes The Council’s website includes a section with information to help the public measure its performance. This includes: • The strategic plan and related performance indicators • Annual performance report • Service annual delivery plans • Mid year service performance • Historical performance information • Links to the Local Government Benchmarking Framework and My Local Council tool. The Council reports mid and year-end progress against delivery plans to councillors through its service committees. The annual performance report is presented to the Council. The Council has appropriate arrangements in place for complying with SPI 1. No significant issues identified. Page 266
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76 Best Value (continued) Statutory Performance Indicators (continued) Council’s arrangements Our findings Our judgements Risks identified Statutory Performance Indicator 2: Demonstrating Best Value SPI 2 requires a council to report its own assessment and audit, scrutiny and inspection body assessments of how it is performing against its duty of Best Value, and how it has responded to these assessments. The Council’s website includes a section on external audit and inspection reports with links to where reports can be found. School information webpages also have links to inspection reports and performance information. The Council’s website does not include information on how it has responded to assessments made by audit, scrutiny and inspection bodies. Officers have agreed to update the education webpages to integrate the West Dunbartonshire improvement framework, school performance statistics, school inspection reports, standards and quality reports, and school improvement plans. The Council will also publish information on how it is responding to external assessments across its services. The Council publishes its performance against its duty of Best Value through reporting against its strategic plan objective, “Our Council is adaptable and focused on delivering best value for our residents”. The Council monitors and reports progress and performance through the annual performance report and service annual delivery plans. Officers are working to improve the accessibility of information to strengthen the Council’s compliance with SPI 2. SPI 2: Demonstrating Best Value (Level 2) Risk – The Council does not fully comply with the requirements of SPI 2. Recommendation – The Council should ensure it publishes details of how it has responded to external audit and inspection reports. Management’s response – Going forward external inspection reports and correlating action/school improvement plans will be published on the individual service pages of the Council website. This information will also be highlighted on the performance pages of the website. Responsible officer – Chief Officer Citizen Culture & Facilities Implementation date – We understand that officers have now implemented the management response. We will review the Council’s compliance with SPI 2 as part of our 2023/24 audit. Page 267
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77 Best Value (continued) Service Performance We are required to provide a summary of the information each Council’s reports publicly on its service performance. The table below details the Council’s publicly available information on its service performance: PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) PPR Strategic Performance | West Dunbartonshire Council (west-dunbarton.gov.uk) Council’s performance information Details of information Location of information Annual report Looks at how the Council has performed against the priorities set out in its Strategic Plan 2022-2027. PPR Strategic Performance | West Dunbartonshire Council (west- dunbarton.gov.uk) Year end service performance Details of the year end progress for each service against its annual delivery plan. PPR Strategic Performance | West Dunbartonshire Council (west- dunbarton.gov.uk) Mid year service performance Details of the mid year progress for each service against its annual delivery plan PPR Strategic Performance | West Dunbartonshire Council (west- dunbarton.gov.uk) Page 268
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Appendices A: Draft management representation letter B: Draft audit report C: Confirmation of our independence D: Other communications E: Wider scope and Best Value ratings Page 269
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79 Appendix A: Draft management representation letter Forvis Mazars 100 Queen Street Glasgow G1 3DN XX December 2024 Dear Tom Reid, West Dunbartonshire Council - Audit for Year Ended 31 March 2024 This representation letter is provided in connection with your audit of the financial statements of West Dunbartonshire Council (the Council) and its group for the year ended 31 March 2023 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view in accordance with the Part VII of the Local Government (Scotland) Act 1973 and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (the 2022/23 Code). I confirm that the following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience (and, where appropriate, inspection of supporting documentation) sufficient to satisfy myself that I can properly make each of the following representations to you. My responsibility for the financial statements and accounting information I believe that I have fulfilled my responsibilities for the true and fair presentation and preparation of the financial statements in accordance with the Part VII of the Local Government (Scotland) Act 1973 and UK adopted international accounting standards, as interpreted, and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (the 2022/23 Code). My responsibility to provide and disclose relevant information I have provided you with: • access to all information of which I am aware that is relevant to the preparation of the financial statements such as records, documentation and other material; • additional information that you have requested from us for the purpose of the audit; and • unrestricted access to individuals within the Council you determined it was necessary to contact in order to obtain audit evidence. Page 270
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80 Appendix A: Draft management representation letter (continued) I confirm as Chief Finance Officer that I have taken all the necessary steps to make me aware of any relevant audit information and to establish that you, as auditors, are aware of this information. As far as I am aware there is no relevant audit information of which you, as auditors, are unaware. Accounting records I confirm that all transactions undertaken by the Council have been properly recorded in the accounting records and are reflected in the financial statements. All other records and related information, including minutes of all management and Board meetings, have been made available to you. Accounting policies I confirm that I have reviewed the accounting policies applied during the year in accordance with International Accounting Standard 8 and consider these policies to faithfully represent the effects of transactions, other events or conditions on the Council’s financial position, financial performance, and cash flows. Accounting estimates, including those measured at fair value I confirm that the methods, significant assumptions, and the data used by the Council in making the accounting estimates, including those measured at fair value are appropriate to achieve recognition, measurement or disclosure that is in accordance with the applicable financial reporting framework. Contingencies There are no material contingent losses including pending or potential litigation that should be accrued where: • information presently available indicates that it is probable that an asset has been impaired or a liability had been incurred at the balance sheet date; and • the amount of the loss can be reasonably estimated. There are no material contingent losses that should be disclosed where, although either or both the conditions specified above are not met, there is a reasonable possibility that a loss, or a loss greater than that accrued, may have been incurred at the balance sheet date. There are no contingent gains which should be disclosed. All material matters, including unasserted claims, that may result in litigation against the Council have been brought to your attention. All known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with the Part VII of the Local Government (Scotland) Act 1973 and UK adopted international accounting standards, as interpreted, and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (the 2022/23 Code). Page 271
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81 Appendix A: Draft management representation letter (continued) Laws and regulations I confirm that I have disclosed to you all those events of which I are aware which involve known or suspected non-compliance with laws and regulations, together with the actual or contingent consequences which may arise therefrom. We have complied with all aspects of contractual agreements that would have a material effect on the accounts in the event of non-compliance. Fraud and error I acknowledge my responsibility as Chief Finance Officer for the design, implementation, and maintenance of internal control to prevent and detect fraud and error. I have disclosed to you: • all the results of my assessment of the risk that the financial statements may be materially misstated as a result of fraud; • all knowledge of fraud or suspected fraud affecting the Council and Group involving: - management and those charged with governance; - employees who have significant roles in internal control; and - others where fraud could have a material effect on the financial statements. I have disclosed to you all information in relation to any allegations of fraud, or suspected fraud, affecting the Council’s financial statements communicated by employees, former employees, analysts, regulators, or others. Related party transactions I confirm that all related party relationships, transactions, and balances, have been appropriately accounted for and disclosed in accordance with the Part VII of the Local Government (Scotland) Act 1973 and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (the 2022/23 Code). I have disclosed to you the identity of the Council’s related parties and all related party relationships and transactions of which I are aware. Impairment review To the best of my knowledge, there is nothing to indicate that there is a permanent reduction in the recoverable amount of the property, plant and equipment and intangible assets below their carrying value at the statement of financial position date. An impairment review is therefore not considered necessary. Charges on assets All the Council’s assets are free from any charges exercisable by third parties except as disclosed within the financial statements. Page 272
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82 Appendix A: Draft management representation letter (continued) Reinforced Autoclaved Aerated Concrete I confirm the Council has assessed the potential impact of Reinforced Autoclaved Aerated Concrete on the Council, and in particular whether there are indications of a need for an impairment of the Council’s property, plant and equipment balances. I confirm there are no such indications of impairment in those assets. Future commitments I am not aware of any plans, intentions or commitments that may materially affect the carrying value or classification of assets and liabilities or give rise to additional liabilities. Valuation of land, buildings and dwellings I confirm that I am satisfied that the key assumptions feeding into the assessment of the assets are appropriate based on my review. . Right of Use assets and lease liabilities I confirm that I have satisfied myself that the key judgments and assumptions made in valuing Right of Use assets and corresponding lease liabilities are reasonable and in accordance with IFRS 16. I am satisfied that assumptions around lease terms of implicit leases are reasonable. Ultimate parent company I confirm that the ultimate parent company for West Dunbartonshire Council and its Group is the Scottish Government. Service Concession Arrangements I am not aware of any material contract variations, payment deductions or additional service charges in 2022/23 in relation to the Council’s service concession arrangements that you have not been made aware of. Other Matters I confirm in relation to the following matters that: • COVID-19 – I have assessed the continued impact of the COVID-19 Virus pandemic on the Council and the financial statements and those of the Group, including the impact of mitigation measures and uncertainties, and am satisfied that the financial statements and supporting notes fairly reflect that assessment. Page 273
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83 Appendix A: Draft management representation letter (continued) • Ukraine – I confirm that I have carried out an assessment of the potential impact of the continued conflict in Ukraine on the Council and its Group and there is no significant impact on the Council’s operations from restrictions or sanctions in place. • I confirm that I have assessed the impact on the Council of the on-going Global Banking challenges, in particular whether there is any impact on the Council and its Group’s ability to continue as a going concern, and on the post balance sheet events disclosures. Going concern To the best of my knowledge there is nothing to indicate that the Council and its Group will not continue as a going concern in the foreseeable future. The period to which I have paid particular attention in assessing the appropriateness of the going concern basis is not less than twelve months from the date of approval of the accounts. Performance related allocations I confirm that I am not aware of any reason why the Council’s funding allocation limits would be changed. Subsequent events I confirm all events subsequent to the date of the financial statements and for which the Part VII of the Local Government (Scotland) Act 1973 and UK adopted international accounting standards, as interpreted, and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (the 2022/23 Code), require adjustment or disclosure have been adjusted or disclosed. Should further material events occur after the date of this letter which may necessitate revision of the figures included in the financial statements or inclusion of a note thereto, I will advise you accordingly. Annual Governance Statement I am satisfied that the Annual Governance Statement fairly reflects the Council and its Group's risk assurance and governance framework, and I confirm that I am not aware of any significant risks that are not disclosed within the Annual Governance Statement. Annual Report The disclosures within the Annual Report and the Remuneration Report fairly reflect my understanding of the Council and its Group’s financial and operating performance over the period covered by the financial statements. Page 274
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84 Appendix A: Draft management representation letter (continued) Unadjusted misstatements I confirm that the effects of the unadjusted misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is attached to this letter as an Appendix 1. Yours faithfully, Laurence Slavin Chief Officer - Resources Page 275
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85 Appendix B: Draft audit report Independent auditor’s report to the members of West Dunbartonshire Council and the Accounts Commission Report on the audit of the financial statements Opinion on the financial statements We certify that we have audited the financial statements in the annual accounts of West Dunbartonshire Council and its group (“the Council”) for the year ended 31 March 2023 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the group and council-only Comprehensive Income and Expenditure Statements, Movement in Reserves Statements, Balance Sheets, and Cash Flow Statements, the council-only Movement on the Housing Revenue Account Statement, the Housing Revenue Account Income and Expenditure Statement, the Council Tax Account, the Non Domestic Rates Account and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (the 2022/23 Code). In our opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the Council as at 31 March 2023 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2022/23 Code; and • have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We were appointed by the Accounts Commission on 18 May 2022. Our period of appointment is five years, covering 2022/23 to 2026/27. We are independent of the Council and its group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the Council. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Page 276
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86 Appendix B: Draft audit report (continued) Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ability of the Council and its group to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. These conclusions are not intended to, nor do they, provide assurance on the current or future financial sustainability of the Council and its group. However, we report on the Council's arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland Website. Risks of material misstatement We report in our Annual Audit Report the most significant assessed risks of material misstatement that we identified and our judgements thereon. Responsibilities of the Chief Financial Officer and the Audit Committee for the financial statements As explained more fully in the Statement of Responsibilities, the Chief Officer - Resources is responsible for the preparation of financial statements, that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Chief Officer - Resources determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Chief Officer - Resources is responsible for assessing the ability of the Council and its group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the operations of the Council and its group. The Audit Committee is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using our understanding of the local government sector to identify that the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 are significant in the context of the Council and its group; • inquiring of the Chief Officer - Resources as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Council and its group; Page 277
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87 Appendix B: Draft audit report (continued) • inquiring of the Chief Officer - Resources concerning the policies and procedures of the Council and its group regarding compliance with the applicable legal and regulatory framework; • discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Council‘s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skillfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited parts of the Remuneration Report We have audited the parts of the Remuneration Report described as audited. In our opinion, the audited parts of the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Other information The Chief Officer - Resources is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Statement of Responsibilities, Annual Governance Statement and the unaudited part of the Remuneration Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Management Commentary and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission. Page 278
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88 Appendix B: Draft audit report (continued) Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In our opinion, based on the work undertaken in the course of the audit: • the information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003; and • the information given in the Annual Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Governance in Local Government: Framework (2016). Matters on which we are required to report by exception We are required by the Accounts Commission to report to you if, in our opinion: • adequate accounting records have not been kept; or • the financial statements and the audited part of the Remuneration Report are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters Conclusions on wider scope responsibilities In addition to our responsibilities for the annual accounts, our conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in our Annual Audit Report. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Tom Reid Audit Director For and on behalf of Forvis Mazars LLP 100 Queen Street Glasgow G1 3DN Page 279
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89 Appendix A: Draft management representation letter Forvis Mazars 100 Queen Street Glasgow G1 3DN XX December 2024 Dear Tom Reid, Dr. A.K Glen and West Dunbartonshire Trust Funds - Audit for Year Ended 31 March 2023 This representation letter is provided in connection with your audit of the financial statements of Dr A K Glen and West Dunbartonshire Trust Funds (the Charities) for the year ended 31 March 2023 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view in accordance with the Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. I confirm that the following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience (and, where appropriate, inspection of supporting documentation) sufficient to satisfy myself that I can properly make each of the following representations to you. My responsibility for the financial statements and accounting information I believe that I have fulfilled my responsibilities for the true and fair presentation and preparation of the financial statements in accordance with the Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. My responsibility to provide and disclose relevant information I have provided you with: • access to all information of which I am aware that is relevant to the preparation of the financial statements such as records, documentation, and other material; • additional information that you have requested from us for the purpose of the audit; and • unrestricted access to individuals within the Charities you determined it was necessary to contact in order to obtain audit evidence. I confirm that I have taken all the necessary steps to make me aware of any relevant audit information and to establish that you, as auditors, are aware of this information. As far as I am aware there is no relevant audit information of which you, as auditors, are unaware. Page 280
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90 Appendix A: Draft management representation letter Accounting records I confirm that all transactions undertaken by the Charities have been properly recorded in the accounting records and are reflected in the financial statements. All other records and related information, including minutes of all Trustee meetings, have been made available to you. Accounting policies I confirm that I have reviewed the accounting policies applied during the year in accordance with the applicable financial reporting framework and consider these policies to faithfully represent the effects of transactions, other events or conditions on the Charities financial position and financial performance. Laws and regulations I confirm that I have disclosed to you all those events of which I am aware which involve known or suspected non-compliance with laws and regulations, together with the actual or contingent consequences which may arise therefrom. We have complied with all aspects of contractual agreements that would have a material effect on the accounts in the event of non-compliance. Fraud and error I acknowledge my responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud and error. I have disclosed to you: • all the results of my assessment of the risk that the financial statements may be materially misstated as a result of fraud; • all knowledge of fraud or suspected fraud affecting the Charities involving: o trustees; o employees who have significant roles in internal control; and o others where fraud could have a material effect on the financial statements. I have disclosed to you all information in relation to any allegations of fraud, or suspected fraud, affecting the Charities financial statements communicated by employees, former employees, analysts, regulators, or others. Page 281
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91 Appendix A: Draft management representation letter Related party transactions I confirm that all related party relationships, transactions, and balances, have been appropriately accounted for and disclosed in accordance with the Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. I have disclosed to you the identity of the Charities related parties and all related party relationships and transactions of which I am aware. Impairment review To the best of my knowledge, there is nothing to indicate that there is a permanent reduction in the recoverable amount of assets below their carrying value at the statement of balances date. An impairment review is therefore not considered necessary. Charges on assets All the Charities assets are free from any charges exercisable by third parties except as disclosed within the financial statements. Future commitments I am not aware of any plans, intentions or commitments that may materially affect the carrying value or classification of assets and liabilities or give rise to additional liabilities. Other matters I confirm in relation to the following matters that: • COVID-19 – I have assessed the continued impact of the COVID-19 Virus pandemic on the Charities and the financial statements, including the impact of mitigation measures and uncertainties, and am satisfied that the financial statements and supporting notes fairly reflect that assessment. • Ukraine – I confirm that I have carried out an assessment of the potential impact of the continued conflict in Ukraine on the Charities and there is no significant impact on the Charities operations from restrictions or sanctions in place. • I confirm that I have assessed the impact on the Charities of the on-going Global Banking challenges, in particular whether there is any impact on the Charities ability to continue as a going concern, and on the post balance sheet events disclosures. Going concern To the best of my knowledge there is nothing to indicate that the Charities will not continue as a going concern in the foreseeable future. The period to which I have paid particular attention in assessing the appropriateness of the going concern basis is not less than twelve months from the date of approval of the accounts. Page 282
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92 Appendix A: Draft management representation letter Subsequent events I confirm all events subsequent to the date of the financial statements and for which the Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, require adjustment or disclosure have been adjusted or disclosed. Should further material events occur after the date of this letter which may necessitate revision of the figures included in the financial statements or inclusion of a note thereto, I will advise you accordingly. Unadjusted misstatements I confirm that there are no unadjusted misstatements Yours faithfully Councillor Martin Rooney Trustee Page 283
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93 Appendix B: Draft audit report Independent auditor’s report to the members of Dr A K Glen and West Dunbartonshire Trust Funds and the Accounts Commission Report on the audit of the financial statements Opinion on the financial statements We certify that we have audited the financial statements in the statement of accounts of Dr A K Glen and West Dunbartonshire Trust Funds (”the Charities) for the year ended 31 March 2023 under Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial statements comprise the Statement of Receipts and Payments Account, the Statement of Balances at 31 March 2023 and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and a receipts and payments basis. In our opinion the accompanying financial statements: • properly present the receipts and payments of the Charities for the year ended 31 March 2023 and their statement of balances at that date; and • have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulations 9(1), (2) and (3) of The Charities Accounts (Scotland) Regulations 2006. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charities in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of the trustees for the financial statements The trustees are responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page 284
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94 Appendix B: Draft audit report (continued) Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using our understanding of the local government sector and charity sector to identify that the Local Government (Scotland) Act 1973, Charities and Trustee Investment (Scotland) Act 2005 and The Charities Accounts (Scotland) Regulations 2006 are significant in the context of the Charities; • inquiring of the Trustees as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Charities; • inquiring of the Trustees concerning the Charities’ policies and procedures regarding compliance with the applicable legal and regulatory framework; • discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Charities’ controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Page 285
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95 Appendix B: Draft audit report (continued) Reporting on other requirements Other information The trustees are responsible for the other information in the statement of accounts. The other information comprises the Trustees’ Annual Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Trustees’ Annual Report to the extent explicitly stated in the following opinion prescribed by the Accounts Commission. Matters on which we are required to report by exception We are required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in our opinion: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Page 286
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96 Appendix B: Draft audit report (continued) Tom Reid Audit Director For and on behalf of Forvis Mazars LLP 100 Queen Street Glasgow G1 3DN X December 2024 Page 287
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97 Appendix C: Confirmation of our independence We communicate any matters which we believe may have a bearing on our independence or the objectivity of Forvis Mazars LLP and the audit team. As part of our ongoing risk assessment, we monitor our relationships with you to identify any new actual or perceived threats to our independence within the regulatory or professional requirements governing us as your auditors. We confirm that no new threats to independence have been identified since issuing our Annual Audit Plan and therefore we remain independent. . Page 288
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98 Appendix C: Confirmation of our independence (continued) Fees for work as the Council’s auditor We reported our proposed fees for the delivery of our work under the Code of Audit Practice in our Annual Audit Plan presented to the Audit Committee on 20 April 2023. We were appointed as auditors for the Council in the 2022/23 financial therefore no comparatives have been provided in the below table. Having substantially completed our work for the 2022/23 financial year, we can confirm that our fees are as follows: Area of work 2022/23 fees Auditor remuneration £250,450 Pooled costs £0 Contribution to PABV costs £60,670 Audit support costs £9,500 Sectoral cap adjustment (£4,560) Total fees £316,060 Fees for audit of Charitable Trusts The audit fee in table above does not include the cost of auditing the Council’s charitable trusts. We set a fee for the audit of these at £6,500. Services provided to other entities within the Council's group We provide audit services to the following group entities; • West Dunbartonshire Integration Joint Board at a total fee of £31,470. • Dunbartonshire and Argyle and Bute Valuation Joint Board at a total fee of £8,790. Fees for other work We confirm that we have not undertaken any non-audit services for the Council. Page 289
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99 Appendix D: Other communications Blank Other communication Response Compliance with Laws and Regulations We have not identified any significant matters involving actual or suspected non-compliance with laws and regulations. We will obtain written representations from management that all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing financial statements have been disclosed. External confirmations We did not experience any issues with respect to obtaining external confirmations. Related parties We did not identify any significant matters relating to the audit of related parties. We will obtain written representations from management confirming that: a. they have disclosed to us the identity of related parties and all the related party relationships and transactions of which they are aware; and b. they have appropriately accounted for and disclosed such relationships and transactions in accordance with the requirements of the applicable financial reporting framework. Going Concern We have not identified any evidence to cause us to disagree with Section 95 Officer that West Dunbartonshire Council will be a going concern, and therefore we have not identified any evidence to cause us to consider that the use of the going concern assumption in preparation of the financial statements is not appropriate. We will obtain written representations from management, confirming that all relevant information covering a period of at least 12 months from the date of approval of the financial statements has been taken into account in assessing the appropriateness of the going concern basis of preparation of the financial statements. Page 290
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100 Appendix D: Other communications (continued) Blank Other communication Response Subsequent events We are required to obtain evidence about whether events occurring between the date of the financial statements and the date of the auditor’s report that require adjustment of, or disclosure in, the financial statements are appropriately reflected in those financial statements in accordance with the applicable financial reporting framework. We will obtain written representations from management that all events occurring subsequent to the date of the financial statements and for which the applicable financial reporting framework requires adjustment or disclosure have been adjusted or disclosed. Matters related to fraud We have designed our audit approach to obtain reasonable assurance whether the financial statements as a whole are free from material misstatement due to fraud. In addition, we have assessed the adequacy of the Council’s arrangements for preventing and detecting fraud or other irregularities as part of the wider scope audit and concluded that they are sufficiently designed and implemented. We will obtain written representations from management, and where appropriate the Audit Committee, confirming that: a) they acknowledge their responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud; b) they have disclosed to the auditor the results of management’s assessment of the risk that the financial statements may be materially misstated as a result of fraud; c) they have disclosed to the auditor their knowledge of fraud or suspected fraud affecting the entity involving: i. Management; ii. Employees who have significant roles in internal control; or iii. Others where the fraud could have a material effect on the financial statements; and d) they have disclosed to the auditor their knowledge of any allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, analysts, regulators or others. Page 291
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101 Appendix D: Other communications (continued) Blank Other communication Response National Fraud Initiative The National Fraud Initiative (NFI) in Scotland is a counter-fraud exercise led by Audit Scotland and overseen by the UK’s Cabinet Office, designed to prevent and detect fraud. The NFI uses data analytics to compare information held on individual by different public bodies to highlight the existence of fraud or error. We reviewed the Council’s participation in the NFI exercise. We concluded that the NFI exercise is well integrated into Council processes. However, resource constraint appears to limit its effectiveness in timely investigation and resolution of high risk and other matches. Page 292
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102 Appendix E: Wider scope, Best Value and internal control ratings We need to gather sufficient evidence to support our commentary on the Council’s arrangements and to identify and report on any risks. We will carry out more detailed work where we identify significant risks. Where significant risks are identified we will report these to the Council and make recommendations for improvement. In addition to local risks, we consider challenges that are impacting the public sector as a whole. We have assigned priority rankings to each of the risks identified to reflect the importance that we consider each poses to your organisation and, hence, our recommendation in terms of the urgency of required action. The table below describes the meaning behind each rating that we have awarded to each wider scope area based on the work we have performed. Rating Description Level 1 The identified risk and/or significant deficiency is critical to the business processes or the achievement of business strategic objectives. There is potential for financial loss, damage to reputation or loss of information. The recommendation should be taken into consideration by management immediately. Level 2 The identified risk and/or significant deficiency may impact on individual objectives or business processes. The audited body should implement the recommendation to strengthen internal controls or enhance business efficiency. The recommendations should be actioned in the near future. Level 3 The identified risk and/or significant deficiency is an area for improvement or less significant. In our view, the audited body should action the recommendation, but management do not need to prioritise. Page 293
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Contact Forvis Mazars www.auditregister.org.uk Forvis Mazars LLP is the UK firm of Forvis Mazars Global, a leading global professional services network. Forvis Mazars LLP is a limited liability partnership registered in England and Wales with registered number OC308299 and with its registered office at 30 Old Bailey, London, EC4M 7AU. Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001139861. VAT number: GB 839 8356 73 © Forvis Mazars 2024. All rights reserved. Contact information Tom Reid Audit Director Tel: +44 781 635 4994 tom.reid@mazars.co.uk Caleb Oguche Senior Manager Tel: +44 797 412 4504 caleb.oguche@mazars.co.uk Page 294
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 18 December 2024 Subject: 2022/23 Audited Financial Statements 1. PURPOSE 1.1 The purpose of this report is to provide Members with the opportunity to scrutinise and approve the 2022/23 Audited Annual Accounts for the Council and the Charities administered by the Council. 2. RECOMMENDATIONS 2.1 Members are requested to: a. Note that the audit is substantially complete and Forvis Mazars have advised the Council they are expecting to issue an unqualified opinion on the Council’s Accounts and the Accounts of the Charities administered by the Council for the year ended 31 March 2023. b. Approve the information provided within the Audited Annual Accounts 2022/2023 - covering the Council and the Charities administered by the Council – appendices 2 and 3 to this report. 3. BACKGROUND 3.1 Forvis Mazars (Mazars) have been appointed as the Council’s external auditors from financial year 2022/23 for a period of five years. 3.2 The Council’s unaudited 2022/23 Annual Accounts (including the Group Accounts) were passed to the Accounts Commission on the 03 July 2023 and reported to Council on 30 August 2023. 3.3 The report submitted to the 30 August 2023 Council presented an unaudited position of an unearmarked General Service reserve of £4.489m and provided Members with information as to variances for the year. The unaudited unearmarked position for the Housing Revenue Account (HRA) reserve was £0.984m. 4. MAIN ISSUES 4.1 The audit of the accounts for 2022/23 is substantially complete, however, the External Audit Report (considered as a separate agenda item at this Council meeting) outlines that, at the time of preparing this report, some matters remain outstanding. In addition, Mazars have noted they expect to issue an unqualified opinion and the draft opinion has been inserted into the Annual Accounts included at appendix 2. ITEM 12 Page 295
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West Dunbartonshire Council Annual Accounts 4.2 Assuming here are no further changes to the Accounts, the main adjustments, in addition to presentational changes, are summarised below. • Pensions adjustment to reflect required Asset Ceiling calculations. • Revaluation and indexation adjustment to reflect movements in Other Land and Building assets carried at Depreciated Replacement Cost outside the normal five-year valuation cycle. • Reduction in the PPP liability to align the closing liability to the PPP accounting model. • Move Cost of Living expenditure from revenue to capital. • Reassigning PPP expenditure from interest payable to payment of the lease liability. • Movement of the DBFM income received from the Scottish Government from grant Income and Taxation to Education (no bottom-line impact on the Comprehensive Income and Expenditure Statement). • Strathclyde Passenger Transport and the Strathclyde Concessionary Travel Scheme have been included as Related Parties for 2022/23 and removed as Associates from the Group Accounts in 2022/23 and prior year which resulted in a prior year adjustment as detailed on pages 99- 101 of the financial statements. 4.3 In 2022/23 the changes between unaudited accounts and audited accounts resulted in the balance sheet movement as noted below. These adjustments did not affect the usable reserves positions of the Council. Unaudited £,000 Audited £,000 Change £,000 Long Term Assets 1,338,462 1,134,286 (204,176) Current Assets 71,414 71,415 1 Current Liabilities (402,179) (402,081) 98 Long Term Liabilities (391,242) (405,343) (14,101) Total 616,455 398,277 218,178 4.4 The main variance was due to a reduction in the net pension asset (£275.632m) offset by an increase in property, plant and equipment of (£56.065m) as a result of an additional valuation exercise on direct replacement cost valued assets following discussion with Mazars. 4.5 Members were advised at the Council meeting in August 2023, that the accounting standards IAS19 and IFRIC 14 limit the recognition of a pension asset on the balance sheet to the extent to which the Council can recover the benefits through either refunds or reduced contributions. The Council is unable to withdraw from the scheme or recover funds directly, therefore, the asset ceiling is limited to the forecast reduction in contributions compared to the future service costs. Page 296
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4.6 In consultation with the Council’s external auditor, Hymans Robertson LLP (the Council’s Actuaries) were instructed to calculate the “Asset Ceiling” based on the present value of funded obligations. This resulted in a revised net asset position of £28.030m. As a result, a net liability of £15.390m is shown on the Balance Sheet. This is detailed in Note 13 on page 68 of the financial statements. 4.7 The overall general fund reserves increased by £1.229m from £29.079m to £30.308m partly due to capital expenditure that had been incorrectly recognised as revenue (£0.225m) and £1.004m because of a correction to PPP recharges which were incorrectly allocated to interest payable. There were no changes to the HRA reserve position as a consequence of the audit. This is summarised in the table below. General Fund Housing Revenue Account Free Reserve £,000 Earmarked Reserve £,000 Total Reserve (£,000) Free Reserve £,000 Earmarked Reserve £,000 Total Reserve (£,000) Unaudited Accounts 4,489 24,590 29,079 984 1,650 2,634 Reallocation of Cost of Living Expenditure from Revenue to Capital 225 225 Correction of PPP expenditure incorrectly allocated to interest payable 1,004 1,004 Audited Accounts 5,493 24,815 30,308 984 1,650 2,634 4.8 Mazars have issued a clean audit opinion in relation to the Council Accounts. 4.9 The management commentary on pages 2 to 16 of the Annual Accounts summarises the major matters contained within the document and provides an explanation of the Council’s financial position as at 31 March 2023. 4.10 The Annual Governance Statement on pages 18 to 23 of the accounts provides assurance that the Council has in place a sound system of governance control and identifies a number of areas where officers have identified improvements can be made. Charitable Trusts’ Accounts 4.11 Mazars have issued a clean audit opinion in relation to the Charitable Trust Accounts. 4.12 Page 87 of the Accounts details the Statement of Balances and highlights a decrease in the balances held from £0.279m as at 31 March 2022 to £0.258m as at 31 March 2023. Page 297
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4.13 It is disappointing to note the delay in the audit of the Charities accounts meant we were not able to meet our obligations to submit the Audited accounts to OSCR by 31 December 2023. There are no material consequences to missing this deadline. General 4.14 The audit process has been disappointing and frustrating this year. In addition to how late the audit has been completed, levels of engagement with Mazars have not met expectations. The delays in the audit have resulted in Finance officers who normally are focused on the Council budget work from October onwards having to manage both budget and annual accounts work. Furthermore, the Finance team had to complete the 2023/24 year-end process without having concluded the 2022/23 audit which is not ideal as it means there will be additional work to incorporate the 2022/23 adjustments into the draft 2023/24 accounts. 4.15 The 2022/23 audit delay has meant the audit of the 2023/24 financial statements is yet to commence which will have a further impact on the Finance team. 4.16 Furthermore, any recommendations for improvement set out in the annual audit report (considered as a separate agenda item) are of reduced value as we have been unable to incorporate them into the 2023/24 as they were received too late. 4.17 The Council Chief Executive and Chief Officer Resources has informed both Mazars and the Accounts Commission of our dissatisfaction with the 2022/23 audit process. Early discussions have been held with the Mazars team about areas for improvement to reduce the risk of similar issues arising again in the future and it is hoped that the process, communications and timescales will be improved for the 2024/25 audit and in future years. 4.18 A formal request for a rebate on the 2022/23 audit fee has been rejected by Audit Scotland as they state they have no mechanism for paying rebates to audited bodies under the Public Finance and Accountability Act (Scotland) 2000. Further to this response Audit Scotland were asked to confirm that an approach has been made to Mazars to query whether they would voluntarily agree to a rebate. Audit Scotland advised they discussed this request with Mazars and, in their written response, Audit Scotland stated: ‘The audit work undertaken by Forvis Mazars has to date cost them more than they will receive from the original fee, and while they are entitled to charge additional fees where additional audit work has been required, in recognition of the circumstances they have agreed it would not be appropriate. It would therefore be reasonable to pay for the statutory audit service based on the original expected fee set by Audit Scotland.’ So, Audit Scotland have concluded it is reasonable for the Council to pay for the statutory audit service based on the original expected fee that they set. Page 298
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This response is disappointing to the Council as it appears there is nothing in the contract put in place by Audit Scotland for the benefit of the Council to ensure financial recompense where performance has fallen well below what is expected. It also fails to acknowledge the impact the excessive delay has had on Council officers, on the delivery of other areas of work, and furthermore appears to place limited focus on monitoring the performance of externally appointed audit bodies to carry out statutory audits. The matter remains with Legal Services for consideration of further options open to the Council. 5. PEOPLE IMPLICATIONS 5.1 There are no people implications in relation to this report. 6. FINANCIAL AND PROCUREMENT IMPLICATIONS 6.1 There are no financial and procurement implications in relation to this report. 7. RISK ANALYSIS 7.1 No risk analysis was required 8. EQUALITIES IMPACT ASSESSMENT (EIA) 8.1 No equalities impact was required in relation to the production of this report. 9. CONSULTATION 9.1 The views of all Chief Officers have been requested on this report and feedback incorporated herein. 10. STRATEGIC ASSESSMENT 10.1 The report is in relation to a statutory function. As such, it does not directly affect any of the strategic priorities. Laurence Slavin Chief Officer - Resources Date: 05 December 2024 Person to Contact: Carol Alderson, Finance Manager Email: carol.alderson@west-dunbarton.gov.uk Appendices 1. Adjustments to 2022/23 West Dunbartonshire Council financial statements 2. Audited Annual Accounts 2022/23 – West Dunbartonshire Council 3. Audited Annual Accounts 2022/23 – Charitable Trust Funds Background Papers Draft Annual Accounts 2022/23 to Council – 30 August 2023 Page 299
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Summary of main changes to Financial Statements arising from audit Appendix 1 Details of Adjustment CIES CIES Balance Sheet Balance Sheet Dr (£'000) Cr (£'000) Dr (£'000) Cr (£'000) Taxation and Non-Specific Grant Income 2,135 Educational Services (2,135) Miscellneous Services (225) Capital Financed from Current Revenue 225 Capital Financed from Current Revenue (Movement in Reserves) (225) Capital Adjustment Account 225 Educational Services 364 Financing and Investment (income) and expenditure (1,368) PPP Liability 1,004 Capital Adjustment Account 286 PPP payment in year (Movement in Reserves) (286) Interest incorrectly calculated against borrowing that was repaid in year Interest Payables and Similar Charges (370) Mortgage Loans 370 Financial Instrument Adjustment Acocunt (FIAA) (Movement in Reserves) (370) Appropriation to FIAA (Movement in Reserves) 370 Pension Reserve 275,632 Net Pension Asset/(Liability) (275,632) Property, Plant and Equipment - Other land and Buildings 24,908 Revaluation Reserve (24,908) Correction of Valuation of Operational Assets Property, Plant and Equipment - Operational Assets (605) Revaluation reserve (391) Capital Adjustement Account 996 Property, Plant and Equipment - Other land and Buildings 30,956 Revaluation reserve (1,062) Capital Adjustement Account (833) DBFM grant income had been incorrectly recognised as Revenue Support Grant and a correction was required to move the grant income to Educational Services. Cost of Living Capital spend incorrectly coded as revenue rather than capital financed from current revenue (CFCR) Correction of the PPP accounting adjustments to align the closing liability to the PPP accounting model Limit to the recognition of the pension asset in line with accounting standards IAS 19 and IFRIC 4 to the "Asset Ceiling" calculated based on the presebt value of funded obligations. Additional Valuation carried out on high value assets valued at Depreciated Replacement Cost Indexation of Assets Valued at Depreciated Replacement Cost (DRC) Page 300
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Contents West Dunbartonshire Council Annual Accounts 2022-23 Table of Contents Page Page Management Commentary 1 Note 21 Financial Instruments 69 Explanatory and Assurance Statements Note 22 Defined Benefit Pension Scheme 75 Statement of Responsibilities 17 Note 23 Termination benefits 79 Annual Governance Statement 18 Note 24 Other Reserves 80 Remuneration Report 24 Note 25 Related Parties 82 Principal Financial Statements of Singe Entity Note 26 Agency Services 84 Comprehensive Income and Expenditure Statement 33 Note 27 Financial Guarantees 84 Balance Sheet 34 Note 28 Contingent Assets and Liabilities 84 Movement in Reserves Statement 35 Note 29 Fees payable to External Auditor 84 Cash Flow Statement 36 Note 30 Events After the Balance Sheet Date 85 Notes to the Principal Statements Housing Revenue Account 86 Note 1 Accounting Policies 37 Council Tax income Account 88 Note 2 Critical Judgement in Applying Accounting Policies 48 Non-Domestic Rate Income Account 89 Note 3 Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty 49 Common Good Fund 90 Note 4 Accounting Standards that have been issued but have not yet been adopted 50 Trust Funds 91 Note 5 Expenditure and Funding Analysis 51 Group Comprehensive Income and Expenditure Statement 92 Note 6 Adjustments between funding accounting basis and funding basis under regulations 54 Group Balance Sheet 93 Note 7 Earmarked Reserves 56 Group Movement in Reserves Statement 94 Note 8 Financing and Investment (Income) and Expenditure 57 Group Cashflow Statement 95 Note 9 Taxation and Non-Specific Grant Income 57 Notes to the Group’s Principal Financial Statements 96 Note 10 Grant Income 57 Note 31 Details of Combining Entities 98 Note 11 Property, Plant and Equipment 60 Note 32 Non-Material Interests in other Entities 99 Note 12 Intangible Assets 62 Note 33 Financial impact of Consolidation 99 Note 13 Heritage Assets 63 Note 34 Material Items of Group Income and Expenditure 99 Note 14 Non-Current Assets held for Sale 64 Note 35 Group Accounting Policies 99 Note 15 Private Finance Initiatives and Similar Contracts 64 Note 36 Prior Year Adjustment 99 Note 16 Operating Leases 67 Independent Auditor’s Report 102 68 Glossary of Terms 105 Note 18 Cash and Cash Equivalents 68 Note 19 Creditors 68 Note 20 Provisions 69 Page 302
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Page 1 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Management Commentary Introduction Welcome to the Financial Statements for West Dunbartonshire Council (the Council) and its group for the year ended 31 March 2023. The Statements have been compiled in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom (the Code). This Management Commentary will demonstrate the stewardship of public funds entrusted to the Council and outlines the key messages regarding the performance of the Council over the 2022/23 financial year as well as providing an indication of risks and issues which may impact upon the Council in the future. Profile of West Dunbartonshire Council The Council is an average sized Council at around 71 square miles and has many strengths; including significant sites of natural beauty and heritage, good transport links and close proximity to Glasgow and its airport. The area has a rich past, shaped by its world-famous shipyards along the Clyde, and boasts many attractions ranging from the iconic Dumbarton Rock and the Titan Crane to the beauty of Loch Lomond. The Council is responsible for providing a wide range of local authority services (including education, housing, environmental health, environmental services, planning, economic development, employment, highways and transport) to residents within the West Dunbartonshire area. The Council is led by 22 councillors, elected every five years to represent the residents within the area. Following the Local Government elections in March 2022 the Council has had a Labour administration with Councillor Martin Rooney as the Council Leader. Page 303
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Page 2 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 During 2022/23 the senior management structure consists of the Chief Executive, eight Chief Officers, with the Integration Joint Board (referred to as Health and Social Care Partnership (HSCP)) managed at a senior level by a Chief Officer. The Council also has: • West Dunbartonshire Leisure Trust – an arm’s length organisation which operates certain services on the Council’s behalf • a regeneration company called Clydebank Property Company • West Dunbartonshire Energy Company which is an energy generation company 99.9% owned by the Council. In May 2022 Peter Hessett was appointed as the Council’s new Chief Executive and, after a recruitment process, in October 2022 Alan Douglas was appointed as the Council’s new Chief Officer Regulatory and Regeneration and also appointed as the Council’s Monitoring Officer. In June 2023, in anticipation of the departure of Angela Wilson (Chief Officer Supply, Distribution and Property) on 1 September 2023 the Chief Executive announced a reallocation of responsibilities to the remaining Chief Officers and confirmed that the post of Chief Officer Supply, Distribution and Property will be removed from the Council’s establishment. The Strategic Plan, Vision and Priorities The Strategic Plan 2022-27 sets out the Council’s direction, with an emphasis on improving the lives of residents and reducing inequality. Its vision is to ‘deliver services which build on the strengths and resilience of our neighbourhoods and support all residents to fulfil their individual potential, and that of their communities.’ This focuses on four key priorities: • Our Communities - Resilient and Thriving • Our Environment - A Greener Future • Our Economy - Strong and Flourishing • Our Council - Inclusive and Adaptable These priorities reflect those set out in wider partnership plans such as Community Planning West Dunbartonshire’s Local Outcomes and Improvement Plan and the West Dunbartonshire Health and Social Care Partnership Strategic Plan. Specific objectives within each priority provide further detail, with progress measured through a suite of performance indicators (PIs) and targets. Delivery Plans Delivery plans set out how the Strategic Plan priorities and objectives will be met. Developed annually for each strategic area, they set out actions to deliver the Strategic Plan as well as actions to address the performance challenges and service priorities identified in the planning process. They also provide an overview of services and resources, set out the Performance Indicators (PIs) for monitoring progress, and consider the relevant risks. Page 304
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Page 3 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Performance Reporting Strategic Plan and Delivery Plans Performance against the PIs and actions set out in the Strategic Plan and associated Delivery Plans is reviewed and managed by Chief Officers throughout the year and reported to Council and Committees for scrutiny twice yearly, at mid-year and year-end. The Strategic Plan progress report and Delivery Plan progress reports set out 2021/22 performance in detail while the infographic based Annual Report provides an overview across a wide range of areas including the Strategic Plan, feedback from service users and residents, as well as budget and workforce information.. The table below show the total number of indicators reported through the Strategic Plan and details latest available performance data for the 2021/22 year: Local Government Benchmarking Framework All 32 Scottish councils measure a common set of PIs called the Local Government Benchmarking Framework (LGBF). This allows us to compare performance, identify best practice, learn from each other, and improve what we do. The framework comprises 105 cost, satisfaction and service indicators covering a wide range of council services. A summary of performance in 2021/22 is set out in the table below. This is the most recent year for which comparative data is available. % (No.) of LGBF PIs Improved on previous year Better than Scottish average Better than family group average (i.e. similar councils) Cost 33% (7) 43% (9) 52% (11) Satisfaction 64% (8) 100% (11) 100% (10) Service performance 64% (47) 45% (36) 47% (39) The graph summarises our comparative performance over the last five years, showing the percentage of indicators in each of the four quartiles, with Q1 representing the top eight performing councils and Q4 the bottom eight. The percentage of indicators in the top two quartiles is highest in the latest year, 2021/22. The year-end progress report provides details of all 105 indicators in the framework. Indicator Status Strategic Indicators 2021/22 Total Indicators 40 Green 18 (45%) Amber 10 (25%) Red 11 (27.5%) 0% 20% 40% 60% 80% 100% 2017/18 2018/19 2019/20 2020/21 2021/22 25 33 26 28 28 25 24 30 21 30 27 17 18 22 16 23 26 26 29 26 Local Government Benchmarking Framework Performance Indicators by Quartile 1st quartile 2nd quartile 3rd quartile 4th quartile Page 305
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Page 4 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Key Achievements 2022/23 Some of our key achievements in 2022/23 are highlighted below in relation to our four strategic priorities: Priority 1 – Our Communities are Resilient and Thriving The Council launched a range of cost of living initiatives to assist people and community groups hardest hit by the crisis. This included: • Providing £1,000 per week to West Dunbartonshire Foodbanks. • Funding sports and leisure programmes at the Antonine Sports Centre. • Providing free summer and October holidays swimming for school pupils. • Providing free gym membership in the summer and October holidays to all 14 – 18 year olds in West Dunbartonshire Leisure Trust fitness suites. • Creating a £250,000 Household Energy Support Fund. • Launching a £1m capital fund to support community focused cost of living initiatives. • Hosting a conference to encourage local partnership action to mitigate the impact of the cost of living crisis on residents. In addition, the Communities Team and Democratic Services successfully supported the re-establishment of 12 Community Councils under the revised Scheme for the Establishment of Community Councils and through an improved election process. In relation to education the Council: • Increased attainment of school pupils across reading, writing and numeracy across every primary age group. • Introduced a new quality framework for education. • Opened a new state-of-the-art Primary School, Additional Support Need base and Early Learning Childcare Centre in Renton. • Maintained exam results in the first post COVID assessment year. Priority 2 – Our Environment Promotes a Greener Future The Council has: • Committed to renewable and sustainable technologies for all future Council housing developments as part of a commitment to reduce carbon emissions. • Connected the first 146 homes to the new low carbon Queens Quay District Heating Network. • Launched a Spring Clean Up to offer residents an opportunity to clean up their homes and gardens and dispose of waste at no cost. Page 306
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Page 5 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Priority 3 – Our Economy is Strong and Flourishing The Council has: • Secured the development of a new superstore in Alexandria Town Centre. • Provided permanent employment opportunities for newly qualified trade apprentices. • Secured £3.9m from the UK Shared Prosperity Fund to enhance West Dunbartonshire resident’s pride of place and increase life chances. • Continued to progress key transformational projects including Quay, the District Heating Network, the former Esso site at Bowling and at Queens Quay where the new housing development has been shortlisted in the Homes for Scotland award. Priority 4 – Our Council is Inclusive and Adaptable The Council has: • Consulted the community on the development of an Additional Support Needs School. • Delivered a successful employee recognition event. • Implemented a range of People and Change frameworks to ensure our employees have the skills to do their job effectively. • Joined a nationwide project to combat violence against women and encourage more diversity in the workforce. • Replaced 1,400 PCs and laptops and 1,200 Chromebooks in schools, early years establishments and libraries. Carbon Emissions and Energy Consumption The Council has exceeded its annual target set out in the Carbon Management Plan, emitting a total of 24,022 tonnes of carbon dioxide from our operations in 2021/22. This equates to a 1.64 % increase (mainly due to increase in water consumption and waste) against the previous financial year, or 27.1 % total reduction overall against the 2012/13 baseline year. The Council approved a Climate change Strategy in November 2020 which has set an overall target to reduce carbon emissions to 'net zero' by 2045 which will align with Scottish Government targets. This includes two interim targets of a 61% reduction by 2030/31 (versus 2012/13 baseline) and 87% reduction by 2040/41 (versus 2012/13 baseline). Annual progress of the Climate Change Action Plan is monitored through annual reporting to the Council’s Infrastructure, Regeneration & Economic Development (IRED) Committee and additionally monitored as part of the Regulatory and Regeneration Services Delivery Plan twice per year to Corporate Services and IRED Committees. Furthermore, progress on the Action Plan is monitored via the multi-departmental Climate Change Action Group and reported to the senior management team in the Recovering and Renewal Board on a quarterly basis. Page 307
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Page 6 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Equality and Diversity The Council is firmly committed to the principle of equality of opportunity. The Council recognises its responsibility as a community leader, service provider and employer to encourage the fair treatment of all individuals and to tackle social exclusion. The Council is also committed to eradicate all forms of discrimination, direct or indirect and aims to eliminate discriminatory practices and promote measures to combat its effects. Information on the Council’s Equality Outcomes and Mainstreaming Report 2021-2025 can be found on the Council website at: https://www.west-dunbarton.gov.uk/Council/strategies-plans-and-policies/Council-wide-plans-and- strategies/equality-diversity-and-fairness/mainstreaming-report-and-equality-outcomes/ Council’s 2022/23 Budgets Revenue The Council approved the 2022/23 revenue budget on 9 March 2022 based on band D Council tax at £1,332.36. The budget was set at £251.693m (as detailed in the table below) to be funded by Scottish Government Grant (£209.066m); Council tax (£38.126m), with a net contribution from reserves and the service concessionary benefit for the remaining (£4.501m). Budget (£m) % of budget Corporate Services 21.934 8.71% Educational Services 107.787 42.82% Infrastructure, Regeneration and Economic Development 24.965 9.92% Housing and Communities 3.612 1.44% Health & Social Care Partnership 83.392 33.13% Loan Charges 6.634 2.64% Other 3.369 1.34% Total 251.693 100% The budget was updated during the year for a number of variables, resulting in a final planned net expenditure of £258.297m. The year-end revenue budgetary position is detailed on page 8 of this commentary. On 9 March 2022 the Council also approved the revised capital plan with a planned General Services spend in 2022/23 of £51.506m and re-phased capital from the previous year of £11.539m making a total of £63.045m. In-year additional projects increasing the planned spend by £4.653m to £67.698m and acceleration and reprofiling budgets for 2023/24 of (£1.012m) giving an overall 2022/23 capital programme of £66.686m. This investment is funded from a range of sources including: government grants and council ongoing revenue. Major areas of investment are economic regeneration, school modernisation, roads and infrastructure and a range of other council assets. Housing Revenue Account On 9 February 2022 the Council agreed an increase in Council house rents of 2% and on 9 March 2022 the Council approved the Housing Revenue Account budget and planned capital investment for 2022/23 of £47.233m, and re- phased capital from the previous year of £11.386m making a total of £58.619m. Further in-year changes updated the planned spend for 2022/23 to £65.604m. The year-end revenue budgetary position is detailed on page 9 of this commentary, with the capital year end budgetary position shown on page 12. Page 308
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Page 7 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Overview of Core Financial Statements The Statement of Accounts contains the Financial Statements of the Council and its group for the year ended 31 March 2023. The Council operates two main Funds: 1. General Fund - expenditure and income associated with running council services (except the provision of council houses). Predominantly funded by Scottish Government grant and council tax. 2. Housing Revenue Account - expenditure and income associated with the provision of council housing. Predominantly funded primarily through rental income from tenants. Two major categories of expenditure are included in the financial statements: 1. Revenue expenditure - day to day running costs incurred to provide services. 2. Capital expenditure - cost of buying, constructing and improving Council assets. Expenditure is recorded in a number of the main statements in these accounts with the purposes of these main statements being as follows: Page Statement Statement Details 33 Comprehensive Income and Expenditure Statement (CIES) Income and expenditure for all Council services. 35 Movement in Reserves Statement How the surplus/deficit on the Income and Expenditure Account for the year reconciles to the movement on the General Fund. Also highlights movement on all other reserves held on the Council’s Balance Sheet. Further information on each of the reserves held and how they may be used is detailed within notes 5 and 31 86 Housing Revenue Account Income and expenditure for Council housing services for the year and includes the Statement of Movement on the Housing Revenue Account Balance 34 Balance Sheet A summary of the Council’s assets and liabilities. It is a statement of the resources of the Council and the means by which they have been financed. It is also a snapshot of the Council’s financial affairs at the close of the year expressed in accounting terms. 36 Cash Flow Statement Inflows and outflows of cash arising from transactions with third parties on revenue transactions and capital activities. Cash is defined for the purpose of the statement as cash-in-hand and deposits repayable on demand less overdrafts repayable on demand. 37- 85 Notes to the Core Financial Statements Further information and analysis of each statement, including the main accounting policies. 2022/23 Financial Performance Revenue: Outturn against Budget General Fund This account covers the day-to-day operational income and expenditure for each service of the Council and is reported in line with the Council’s committee structure. Income from council tax, non-domestic rates, capital and revenue support grants was £267.663m (2021-22: £258.637m) with a net expenditure on services for the year of £293.223m (2021-22: £310.387m) (shown on page 33 - Net Cost of Services). Page 309
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Page 8 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 During 2022/23, the Scottish Government issued Finance Circular 10/2022, which permits the authority to apply an accounting flexibility for service concession arrangements entered into prior to April 2022. The application of this flexibility has resulted in the repayment of the liability being reprofiled over the asset life, therefore extending the repayment period. The unitary charge will continue to be paid to the contractor over the original contract period. This has resulted in an increase in the General Fund balance of £29.734m from £15.020m to £44.754m as at 1 April 2022, and a corresponding decrease to the Capital Adjustment Account. In 2022/23 there was an accounting adjustment to the statutory repayment of debt for service concession arrangements under the permitted flexibility of £0.286m. The Council’s financial performance is presented in the CIES on page 33 which shows a deficit on the provision of service of £49.271m (represented by a £49.008m deficit on the General Fund and a £0.262m deficit in the HRA). This statement is prepared using International Financial Reporting Standards as interpreted by the Code. However, it does not reflect the true cost or the amount to be funded from taxation and government grant income. Note 6 details the accounting adjustments required to reflect performance against the use of reserves and statutory funds. The adjustments remove the impact of non-cash items such as depreciation, revaluation and replace these with the actual cost of debt repayment. Consequently, the general fund balance has decreased by £15.679m, against a planned use of reserves during 2022/23 budget setting of £7.374m. The table below shows a summary of the movements that contributed to the final position as reported in the Expenditure & Funding Analysis. As a result of the overall deficit, the General Fund reserves reduced from £44.754m to £30.308m. The graph below shows how the useable reserves of the Council are made up, including the £24.815m earmarked to support future budget strategy which are detailed in Note 30: Events after the Balance Sheet Date. The Council has a policy of holding a minimum of £3.438m uncommitted balance (2% of the Council’s budgeted net annual running costs). As at Revised Budget £'000 Actual £'000 Variance £'000 £'000 Total General Services Reserves Held at 1 April 2022 (44,754) Corporate Services 34,025 34,616 591 Educational Servicea 112,862 110,532 (2,330) Infrastructure, Regeneration and Economic Development 13,540 16,740 3,200 Housing and Employability 4,637 4,934 297 Health and Social Care Partnership 81,759 83,178 1,419 Loan charges 9,434 9,944 510 Capital Receipts to fund loan charges (2,800) 0 2,800 Other 3,146 5,056 1,910 Net Expenditure 256,603 265,000 8,397 Council Tax (38,126) (39,313) (1,187) Revenue Support Grant/NDR (211,103) (211,087) 16 use of reserves (3,445) (3,445) 0 Revenue Budget Outturn Position 7,226 Transfer to/(from) Other Reserves (1,935) Use of Earmarked Reserves 9,155 Surplus/(deficit) on the Provision of Service per Expenditure and Fundign Analysis 14,446 Closing Useable Reserves Balance (30,308) Movement - Budget to Actual Outturn £'000 Budgeted (surplus)/deficit Reduction in Capital Receipts 2,803 Creation of Voluntary redundance/severence provision 3,400 Increase in loan Charges 510 Service Overspend 1,700 Increase CTAX income (1,187) Overspend after planned use of reserves 7,226 Use of Reserves 7,220 Decrease in General Fund 14,446 Page 310
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Page 9 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 31 March 2023 the Council had £5.493m of free reserves (3.2% of actual running costs). The use of reserves is reviewed as part of the budget setting each year. 0 5 10 15 20 25 30 35 40 45 As at 1 April 2022 As at 31 March 2023 Reserve Balances Earmarked Unearmarked Statutory adjustment - Service Concessionary flexability £(m) Provisions In 2022/23 a provision was recognised to fund future voluntary severance and voluntary early redundancy to reflect savings identified as part of the 2023/24 budget setting process. There were no provisions in 2021/22. Cash Flow Statement The Council’s cash flow statement shows an increase of cash and cash equivalents of £0.411m during 2022/23 (see page 36) mainly as a result of borrowing for capital spend on non-current assets. Housing Revenue Account (HRA) By law the Council maintains a separate account for the running and management of its housing stock and had 10,423 housing units at 31 March 2023 (2022: 10,378). The movement in year is follows: Opening House Number 10,378 Disposals (1) Buy Backs 17 New builds 29 Closing House Number 10,423 After the impact of earmarked balances, the account shows a deficit for the year of £0.099m. In line with the prudential reserves policy (2% of expenditure), the target reserves level for the HRA for 2022/23 is £0.984m. Taking account of the £0.099m in-year deficit, the brought forward balance from the previous year £2.734m, the balance available to the HRA for future use is £2.635m, (earmarked reserves of £1.650m and free reserves of £0.985m). The HRA’s budget performance for the year is summarised in the following table. The table also highlights how the in-year deficit affects the overall reserves balance held for future use. Further information is noted on pages 86 to 87. Budget Spend against Budget Variance £'000 £'000 £'000 £'000 Total HRA Reserves Held at 1 April 2022 (2,734) Total Expenditure 47,018 47,545 527 Total Income (47,018) (47,545) (527) Net Budgetary Control Position 0 0 0 Net transfer for earmarked reserves 99 Total HRA Reserves Held at 31 March 2023 (2,635) Page 311
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Page 10 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 The net budgetary position on the HRA Statement noted compares to the surplus noted within the HRA Income and Expenditure Statement (page 86) as detailed below: £'000 £'000 Surplus/Deficit for the year on HRA services 262 HRA Movement in Reserves Adjustment to the revenue resource (9,853) Adjustment between Revenue and Capital resources 9,421 (432) transfer (to)/from other Statutory reserves 269 Movement in HRA revenue 99 Adjust for earmarked funds: Use of earmarked sums (99) Net HRA budgetary control position 2022/23 0 HRA Reserves as at 1 April 2022 (2,734) Use of earmarked sums 99 HRA reserve as at 31 March 2023 (2,635) 2022-23 Spend relating to the net budget position is included within note 5 (Expenditure and Funding Analysis) on pages 51 to 53. Covid Funds During 2022/23 officers continued to monitor the financial impact of COVID on the Council’s revenue position and reported on this through budget control reports taken to Committees and full Council. £3.445m of general COVID funding was carried forward from 2021/22, with no additional funding made available in 2022/23. Use of COVID funds is summarised in the table below (note this excludes any COVID funding made available to the Health & Social Care Partnership): £'000 £'000 COVID funding carry forward as at 1 April 2022 3,445 Capital Receipts Financial flexability (600) 2022/23 COVID Spend (2,845) (3,445) Total covid carry forward as at 1 March 2023 0 Balance Sheet The Balance Sheet on page 34 summarises the Council’s assets and liabilities as at 31 March 2023 and explanatory notes are provided. The net worth of the Council has increased by £71.155m from £327.122m as at 31 March 2022 to £398.277m as at 31 March 2023. The major changes are set out in the table below. 31 March 2022 £’000 31 March 2023 £’000 Movement £’000 Main Reason Long-term Assets 1,054,610 1,134,286 79,676 Movement as a result of the revaluation and indexation of non- current assets and capital additions offset by in year depreciation Current Assets 76,404 71,415 (4,989) Decrease in debtors Current Liabilities (349,509) (402,081) (52,572) Movement of short-term borrowing in line with Treasury Strategy. Long-term Liabilities (454,383) (405,343) 49,040 Decrease in the net Pension liability. Total 327,122 398,277 71,155 Page 312
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Page 11 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Pension Assets and Liabilities The net asset arising from the Council’s involvement in the defined benefit scheme totals £232.541m at 31 March 2023. However, this has been restricted to £28.030m in line with the accounting requirements of IFRIC 14 to limit the recognition of a pension asset to the extent to which the Council can recover the benefits through either refunds or reduced contributions. As the Council is not able to withdraw from the scheme or recover funds directly, the asset is therefore limited to the forecast reductions in contributions compared to the forecast future service costs. This has limited the recognition of the pension asset to £28.030m. In addition, the Council has continued to recognise the unfunded element of its pension liabilities as there are no scheme assets to cover the future costs of these liabilities as they are due going forward. The unfunded liability as at 31 March 2023 was £43.420m. The restricted asset of £28.030m less the pension liability of £43.420m, results in an overall net pension liability as at 31 March 2023 of £15.390m, as shown on the Balance Sheet on page 34. The decrease in the pension liability is mainly as a result of a large increase in the discount rate based on market conditions as at 31 March 2023, partially offset by future pension, and salary decrease assumptions. The appointed actuaries remain of the view that the asset holdings of Strathclyde Pension Scheme and the contributions from employees and employers together with planned recent increases in employers’ contributions provide sufficient security and future income to meet future pension liabilities. Non-Current Assets The Council owns a number of different types of assets, as listed in the Balance Sheet. These assets are used for ongoing and future service delivery provided by the Council to its residents. The remit for the Council’s Strategic Asset Management Group is to ensure the most efficient use of these assets in pursuit of the Council’s strategic priorities. The Group manages this through ongoing review of the overarching Strategic Asset Management Plan, which is then supported by a number of individual Asset Management Plans (including properties, infrastructure, vehicles and equipment, etc.). The Council requires to assess the value of assets held based on current market conditions. During 2022/23 there was a net increase in value of £79.676m. These movements adjust either the revaluation reserve in the Balance Sheet or are included within the Net Cost of Service within the Income and Expenditure Statement, depending on the history of the asset. Borrowing The Council’s 2022/23 Treasury Strategy was agreed by the Council on 23 March 2022. The Council raised new long- term loans of £7.375m (2021/22 £35.000m) and short-term loans of £311.00m (2021/22 £315.500m) and repaid naturally maturing debt of £279.186m (2021/22 £320.748). The total outstanding long-term debt (excluding PPP debt) as at 31 March 2023 was £300.471m (2021/22 £307.485m) including £128.541m (2021/22 £117.047m) for the Council’s housing stock. The total outstanding short-term debt was £319.979m (2021/22 £271.457m), including £136.887m (2021/22 £132.351m) for the housing stock. The interest and expenses rate charged by the Council’s loans fund was 2.47% (1.94% in 2021/22). Capital Finance The Council is able to regulate its own capital spending limits within the framework recommended by the Chartered Institute of Public Finance and Accountancy and endorsed by the Scottish Government. The necessary treasury indicators and safeguards have been approved by Council. The Council’s Treasury Management Strategy and Capital Strategy are approved at Council. Details of the capital expenditure and financing are shown in note 20 on page 83. Total gross capital expenditure amounted to £61.877m with the split between General Services and HRA is noted in the table below. The main capital projects progressed during 2022/23 were: General Services HRA Exxon City Deal Void Housing Strategy Programme Posties Park Hub Building external component renewals Clydebank Charrette Statutory compliance works Page 313
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Page 12 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Artizan Redevelopment Targeted Energy Efficiency Targets in Social housing (EESSH) compliance works Local Economic Development and Regeneration Heating Improvement works During 2022/23, the Council had budgeted capital expenditure of £132.290m with an actual in year spend of £62.227m. The unspent amount (£70.063m) includes overspends, underspends and reprofiling, as noted within the table below. The total reprofiling on planned spend was £77.843m – 59.64% (2021/22 42.70%) of the overall capital programme which is summarised in the following table: Budget Actual Spend Variance Overspend Underspend Reprofiling Service £'000 £'000 £'000 £'000 £'000 £'000 Corporate Services 27,975 6,627 (21,348) 3 0 (21,345) Education 5,726 2,521 (3,205) 237 0 (2,968) Infrastructure, Regeneration & Development 27,714 12,892 (14,822) 1,188 (1,271) (14,905) Housing and Communities 147 74 (73) 13 (17) (77) Miscellaneous Services 5,124 5,183 59 638 (280) 417 General Services Total 66,686 27,297 (39,389) 2,079 (1,568) (38,878) HRA 65,604 34,930 (30,674) 9,467 (1,176) (38,965) Total 132,290 62,227 (70,063) 11,546 (2,744) (77,843) The majority of the reprofiling has occurred within a number of larger capital projects and is mainly due to the timing of starting individual projects, for various reasons, not all within Council control, and the delayed spend on these projects moved into capital budgets for 2023/24 onwards. The most significant reprofiling was experienced against the following projects: General Services District Heating Expansion Network expansion to Golden Jubilee National Hospital will commence pending positive commercial discussions. Heritage Capital Fund The original plans were affected by COVID19. Officers are now progressing the projects with an aim to bring them back on track. Vehicle Replacement Delay due to the vehicle build time associated with the specialist vehicles and the delivery lead time from the date of supply order placement. Levelling Up Fund Artizan Development will progress following completion of the development plan. HRA New House Build While the programme has progressed with a new site completed and handed over in 2022/23, due to a number of different complexities there were delays in progress to newer new build sites. Projects to deliver housing strategies (Buy Backs) These are subject to stringent criteria to ensure accountability and value for money for tenants and involves several key stakeholders which resulted in time delays Doors/Windows Installations are behind original planned targets due to internal and external contractor resource issues Building external components Many tiled roof blocks require owner involvement and under the current financial climate, it has been more difficult to progress works with owners. Public Private Partnership (PPP) and other Long-Term Liabilities The Council entered into a PPP for the provision of three community learning centres and a primary school providing the Council with replacement buildings for three secondary schools which were handed over in 2009/10 with the primary school handed over during 2011/12. In accordance with statutory accounting guidance, full detail is provided within note 23 on pages 84 to 86. On 31 March 2016, the Council entered into a 25 year ‘Design, Build, Finance and Maintain’ (DBFM) arrangement with the Scottish Government via the Scottish Futures Trust, for the provision of a further new secondary school. The school was handed over for use by the Council during 2017/18. The detail is also included within note 15. During 2022/23, the Scottish Government issued Finance Circular 10/2022, which permits the authority to apply an accounting flexibility for service concession arrangements entered prior to April 2022. The application of this flexibility Page 314
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Page 13 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 has resulted in the repayment of the liability being reprofiled over the asset life, therefore extending the repayment period. The unitary charge will continue to be paid to the contractor over the original contract period. Group Accounts Local authorities are required to prepare group accounts in addition to their own Financial Statements where they have material interest in other organisations. The group accounts on pages 107 to 117 consolidate the Council’s Financial Statements, the Common Good and Trust Funds and four other entities (including two further subsidiaries – West Dunbartonshire Leisure Trust and Clydebank Property Company). The effect of combining these entities on the Group Balances Sheet is to increase reserves and net assets by £23.475m creating an overall net asset of £421.752m. As there is no reason to suggest the future funding to these organisations will not continue, the accounts have been prepared on a going concern basis. The Financial Outlook, Key Risks and the Future In setting the 2023/24 budget on 1 March 2023, the Council faced a number of significant financial pressures resulting from real term reductions in government funding, inflationary pressures, in particular utilities, service demand increases and the ongoing impact of the national economic position. The 1 March 2023 Council meeting also approved the updated General Fund capital plan, the 2023/24 HRA revenue budget and the updated 5 year HRA capital plan. The capital plans include funding for a number of projects over the next five years and the revenue impact of these investments will be built into future revenue plans. Following the setting of the budget in March 2023, budget projections identified expected budget gaps of £9.690m in 2024/25 rising cumulatively to £29.493m in 2027/28. At a Council meeting on 28 June 2023 a further Financial Update was presented which adjusted these gaps to reflect changes to budget assumptions and cost pressures. This resulted in amended estimated budget gaps of £11.829m in 2024/25 rising cumulatively to £38.249m in 2027/28. If the Council continues to receive real term funding cuts from the Scottish Government there will continue to be a need to review the manner in which services are delivered and also the levels they are delivered at. Management of Risk The main financial risks identified by the Council over the medium and long term include: • the unknown position from government on future funding levels particularly given the ongoing decline in Council population, and real term reductions in local government funding • changing demands and needs for Council services (particularly in relation to older people) • continued rises in inflation and interest rates which impact on the cost of service delivery and the delivery of capital programmes • increasing costs of capital construction due to global constraints in the supply chain • the impact of pay award negotiations and the extent to which responsibility for funding these is shared by the Scottish Government. The Annual Governance Statement, shown on pages 18 to 24, details the arrangements the Council has put in place for the proper governance of the Council’s affairs and for the management of risk. This Statement explains the system of internal control in place and sets out improvement actions to the governance framework identified from the Council’s ongoing review of these arrangements. Risks are identified with actions to minimise and/or mitigate those risks (where possible) through the Council’s performance monitoring system (Pentana), which is reported to Members on a regular basis. The Future In recognition of the scale of the current financial challenge the Council will continue to identify service redesign and business transformation options and these will be reported to appropriate committees during 2023/24. Significant cost Page 315
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Page 14 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 reductions have been generated through planned actions in prior years however more work is required to deliver a balanced budget in 2024/25 and future years. A number of major projects continue to be progressed as follows: • Glasgow City Region City Deal – the Council, together with a number of other Scottish local authorities, is participating in the Glasgow Region City Deal which will see over £1.1 billion invested in the area. The City Deal consists of a number of significant capital projects across the area together with employability projects – in order to generate economic regeneration and additional jobs. The project within the City Deal specific to the Council is an infrastructure project at the Exxon site at Bowling to regenerate that site and to create a relief road along the A82 at Milton. The project is progressing with the full business case approved by Council in June 2023. • Development of Queens Quay – The Council’s investment of £15.62m in Queens Quay over the past five years has helped fund the infrastructure needed to prepare the site for redevelopment. In collaboration with the development partners, good progress has been made on key developments, including the completion of the District Heating Energy Centre, new Care Home, social housing development, a partnership between Council, Wheatley Group and Clydebank Housing Association, and the new NHS Clydebank health centre. Housing development plots are being marketed to fulfil the ambition of delivering 1,000 new homes on Queens Quay and the Council is in dialogue with the landowner on how development can be expedited. The ongoing redevelopment of this site will be transformational for all our communities in Clydebank and create stronger links with the town centre and public transport. The District Heating Energy Centre Energy provides the heat source for existing and new developments at Queens Quay. • Levelling Up Fund – The Levelling Up Fund is a capital fund to address systemic weaknesses in the economies of the UK’s towns and cities. The first round of the Levelling Up Fund was announced at the 2020 Spending Review with an aim to support communities in realising this vision. The Council were successful, as part of round 1, in securing £19.9m for three interlinked regeneration projects in Dumbarton town centre. These include the re-use of the listed Glencairn House as a town centre library and museum, the redevelopment of the largely vacant and run- down Artizan Centre and Connecting Dumbarton which will improve walking and cycling routes in the town centre. The funding programme runs to March 2025 but many of the positive regeneration outcomes will be longer term. • Shared Prosperity Fund – The UK Shared Prosperity Fund (SPF) is a part of the UK government’s ‘Levelling Up’ agenda and was established, in part, to replace funds available through the European Structural Funds. Lead authorities were encouraged to collaborate with their neighbouring authorities to develop regional investment plans. The UK Government allocated funds to the City Region in proportion to the population and level of need. West Dunbartonshire has been allocated up to £3.9 million. The Regional Investment Plan has been agreed and UKSPF priorities have been established in West Dunbartonshire. These priorities centre on ‘community and place’; ‘supporting business’; people and skills; and multiply (supporting maths skills among adults). The planned activities have begun and the UK Shared Prosperity programme will run until March 2025. Other Information Asset Management The Council has a significant investment embedded in assets, comprising offices, schools, vehicles, houses, ICT infrastructure and equipment, etc. and it is important that these are managed in an efficient and effective manner. The Council has an overarching Corporate Asset Framework and Property Asset Plan 2023-2028 was approved by Committee in February 2023. In addition, there are service specific Asset Plans covering Open Spaces, Roads Structures, Housing and Vehicle, Fleet and Plant which were all approved at the relevant service committees and will undergo refreshes in future years. We continue to identify any areas of over provision or inefficient value within the Councils assets in line with the Property and Land Disposal Strategy 2021-2026. Equality and Diversity The Council is firmly committed to the principle of equality of opportunity. The Council recognises its responsibility as a community leader, service provider and employer to encourage the fair treatment of all individuals and to tackle social exclusion. The Council is also committed to eradicate all forms of discrimination, direct or indirect and aims to eliminate discriminatory practices and promote measures to combat its effects. Page 316
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Page 15 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 Information on the Council’s Equality Outcomes and Mainstreaming Report 2021-2025 can be found on the Council website at: https://www.west-dunbarton.gov.uk/Council/strategies-plans-and-policies/Council-wide-plans-and- strategies/equality-diversity-and-fairness/mainstreaming-report-and-equality-outcomes/ Consultation and Communication with Workforce The Council has employee governance arrangements to ensure its employees are well informed, involved in decisions, appropriately trained, treated fairly and consistently and provided with a safe environment. The Council carries out regular employee engagement, and seeks the views of the workforce through regular consultations with staff and trade unions. Remuneration Report This report presents information on the remuneration of senior elected members and senior officers within the Council (pages 24 to 32). Financial Performance Indicators This commentary includes information on a set of financial performance indicators. These are aimed at providing the reader with a summary of key information and are summarised in the following table: 2021/22 Outturn General Services Performance 2022/23 Target 2022/23 Outturn £5.85 Cost of collecting council tax (per dwelling) Demonstrates the Council's effectiveness in collecting local taxation £5.00 £2.48 15.10% Council tax as a percentage of overall funding Demonstrates the amount of budget raised through council tax n/a 15.03% 94.53% In-year council tax collection rate Demonstrates the Council's effectiveness in collecting local taxation 93.50% 94.83% £36.485m Amount of income from council tax for the year that was received Demonstrates the Council's effectiveness in collecting local taxation n/a £38.188m 112% Value of free reserves expressed as a percentage of the prudential reserve target Demonstrates how much free reserves the GS has, in comparison to the agreed minimum 100% 160% 2.06% Value of free reserves expressed as a percentage of the net annual budget Demonstrates the percentage of budget covered by free reserves (2% minimun target) 2.00% 3.20% £0.166m Movement in the free reserve balance Demonstrates variances contributing to the overall free reserve position n/a £1.990m 99.93% Revenue budget compared to actual outturn at year end - including top up of provisions Demonstrates actual spend as a percentage of the planned budget (less than 100% indicates an underspend) n/a 103% 2021-22 Outturn Prudence And Affordability – Capital 2022-23 Target 2022/23 Outturn 3.28% Ratio of financing costs to net revenue stream (excluding PPP) – General Services Demonstrates how much of the General Fund revenue budget is used to support previous capital investment 4.06% 3.94% 23.55% Ratio of financing costs to net revenue stream – HRA Demonstrates how much of the HRA revenue budget is used to support previous capital investment 27.08% 29.40% £680.113 Capital Financing Requirement The amount of planned capital expenditure not yet funded 706.242m £742.283m £670.893 External Debt Levels (including PPP) The amount of external debt held by the Council. Increases due to funding of the capital programme 704.290m £709.566m Page 317
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Page 16 Management Commentary West Dunbartonshire Council Annual Accounts 2022-23 2021/22 Outturn Housing Performance 2022/23 Target 2022/23 Outturn 18.94% Percentage of current tenants owing more than 13 weeks rent, excluding those owing less than £250 Demonstrates the Council's effectiveness in collecting local housing rents n/a 21.35% 1,805 number of current tenants owing more than 13 weeks rent, excluding those owing less than £250 Demonstrates the Council's effectiveness in collecting local housing rents n/a 2,043 9.11% Current / former / total tenant arrears as a percentage of net rent due in year Demonstrates the Council's effectiveness in collecting local housing rents 10.35% 9.57% £4,027m Amount of current/ former/ total tenant rent arrears Demonstrates the Council's effectiveness in collecting local housing rents n/a 4,345 100% Value of free reserves expressed as a percentage of the prudential reserve target Demonstrates how much free reserves the HRA has, in comparison to the agreed minimum 100% 100% 2.00% Value of free reserves expressed as a percentage of the net annual budget Demonstrates the percentage of budget covered by free reserves (2% minimum target) 2.00% 2.61% £(0.017m) Movement in the free reserve balance Demonstrates variances contributing to the overall free reserve position n/a £(0.044m) 99.99% Revenue budget compared to actual outturn at year end Demonstrates actual spend as a percentage of the planned budget (less than 100% indicates an underspend) n/a 100% Where to find more information In This Publication - An explanation of the Financial Statements which follow and their purpose are shown at the top of each page. The accounting policies and a glossary of terms can be found at the end of this publication and these provide an explanation of the main guidelines and terms used. On Our Website - Further information about the Council can be obtained on the Council’s website (West Dunbartonshire Council https://www.west-dunbarton.gov.uk/) or from Finance Services, 16 Church Street, Dumbarton, G82 1QL. Conclusion The financial results show the Council’s finances in a fairly healthy position although it has been a very challenging year from a financial perspective and the general fund has decreased significantly due to a combination of a planned use of reserves and also a need to absorb an in year deficit due primarily to in year capital receipts (used to fund principle loan charges), the cost of voluntary redundancy/severances and a service overspend. The Council continue to face a challenging financial future due to real term reductions in funding and this put further pressure on front line service delivery. The Council’s Financial Statements continue to be reported on a going concern basis. Acknowledgement The production of the Annual Financial Statements is very much a team effort and we wish to record our thanks to both Finance staff and to colleagues in all services whose efforts have contributed to the completion of these Statements of Accounts. Councillor Martin Rooney Peter Hessett Laurence Slavin Leader of the Council Chief Executive Chief Officer - Resources Date: 19 December 2024 Date: 19 December 2024 Date: 19 December 2024 Page 318
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Page 17 Statement of Responsibilities West Dunbartonshire Council Annual Accounts 2022-23 The Council’s Responsibilities The Authority is required to: • Make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs (section 95 of the Local Government (Scotland) Act 1973). In this authority, that officer is the Chief Officer – Resources; • Manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; • Ensure the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014 and so far as is compatible with legislation in accordance with proper accounting practices (Section 12 of the Local Government in Scotland Act 2003); and • Approve the Annual Accounts for signature. I confirm that these Annual Accounts were authorised for issue on 19 December 2024. Signed on behalf of West Dunbartonshire Council Councillor Martin Rooney Leader of the Council The Chief Officer - Resources Responsibilities The Chief Officer – Resources is responsible for the preparation of the Council’s Annual Accounts, in accordance with proper practices as required by legislation and as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (“The Accounting Code”). In preparing the Annual Accounts, the Chief Officer - Resources has: • Selected suitable accounting policies and then applied them consistently. • Made judgements and estimates that were reasonable and prudent. • Complied with legislation. • Complied with the Local Authority Accounting Code (in so far as it is compatible with legislation). The Chief Officer – Resources has also: • Kept adequate accounting records which were up to date. • Taken reasonable steps for the prevention and detection of fraud and other irregularities. • Signed and dated the Balance Sheet. I certify that the financial statements give a true and fair view of the financial position of the local authority and its group at the reporting date and the transactions of the local authority and its group for the year ended 31 March 2023. Laurence Slavin Chief Officer - Resources Page 319
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Page 18 Annual Governance Statement West Dunbartonshire Council Annual Accounts 2022-23 Annual Governance Statement The Annual Governance Statement explains the Council’s governance arrangements as it meets the requirements of the “Code of Practice for Local Authority Accounting in the UK” (the Code) and reports on the effectiveness of its system of internal control, including the reliance placed on the governance frameworks of our partners. It is included within the Council’s Financial Statements to assure stakeholders on how the Council directs and controls its functions and how it relates to communities in order to enhance transparency and scrutiny of the Council’s activities. Scope of Responsibility The Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. It also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this overall responsibility, the Council's Elected Members and Corporate Management Team (CMT) are responsible for putting in place proper arrangements for the governance of its affairs and facilitating the effective exercise of its functions, which includes arrangements for the management of risk. The Council has established an arms-length external organisation: West Dunbartonshire Leisure Trust – to deliver leisure services more effectively on the Council’s behalf, which reports regularly to Elected Members. From 1 July 2015 the West Dunbartonshire Health and Social Care Partnership (HSCP) was established to continue the development of the integration of social care and health services between the Council and NHS Greater Glasgow and Clyde. The Council has approved and adopted a Local Code of Corporate Governance (“the Local Code”), which is consistent with the principles of the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE) Framework: “Delivering Good Governance in Local Government”. The Local Code evidences the Council's commitment to achieving good governance and demonstrates how it complies with the governance standards recommended by CIPFA. A copy of this Code is available from the Council website at: http://www.west-dunbarton.gov.uk/media/4312582/wdc-local-code.pdf This statement explains how the Council expects to comply with the Local Code and also meets the Code of Practice on Local Authority Accounting in the UK, which details the requirements for the Annual Governance Statement. The Purpose of the Governance Framework The governance framework comprises: the systems and processes; and culture and values - by which the Council is directed and controlled and through which it accounts to and engages with communities. It enables the Council to monitor the achievement of the strategic objectives set out in the Strategic Plan. It enables the Council to consider whether those objectives have led to the delivery of appropriate and value for money services. The Council has put in place a system of internal control designed to manage risk to a reasonable level. Internal controls cannot eliminate risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Council's policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The governance framework has been in place at the Council for the year ended 31 March 2023 and up to the date of the approval of the Statement of Accounts. The Governance Framework The main features of our governance arrangements are described in the Local Code but are summarised below: • The overarching strategic vision and objectives of the Council are detailed in the Strategic Plan 2022/27, which sets out the key priorities of the Council and key outcomes the Council is committed to delivering with its partners, as set out in the Local Outcome Improvement Plan. • Services are able to demonstrate how their own activities link to the Council's vision and priorities through their Delivery Plans. Performance management and monitoring of service delivery is reported through service Page 320
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Page 19 Annual Governance Statement West Dunbartonshire Council Annual Accounts 2022-23 committees regularly. The CMT monitors performance information regularly. The Council regularly publishes information about its performance. • The West Dunbartonshire Community Alliance, which supports Community Planning West Dunbartonshire, represents the views of community organisations, communities of interest and geographical communities. In addition, the Council has an Engaging Communities Framework in place which sets out our approach to engaging with citizens, community organisations and stakeholders. Consultation on the future vision and activities of the partnership is undertaken in a range of ways, including seeking the views of the Alliance and through specific service consultations and the Council actively engages with its partners through community planning arrangements. • The Council has adopted a Code of Conduct and associated employment policies for its employees. Elected members adhere to the nationally prescribed Code of Conduct for Members in a localised format. In addition, the Council has in place a protocol on member/officer relations and an inter-party protocol. • The Council operates within an established procedural framework which incorporates a Scheme of Delegation, Standing Orders and Financial Regulations. These describe the roles and responsibilities of Elected Members and officers and are subject to regular review. The Council facilitates policy and decision making through the agreed committee structure. • Responsibility for maintaining and operating an effective system of internal financial control rests with the Council’s Chief Officer Resources as Section 95 Officer. The system of internal financial control is based on a framework of regular management information, the Financial Regulations, administrative procedures (including separation of duties), management and supervision, and a system of delegation and accountability. Development and maintenance of the system is undertaken by managers within the Council. • The functions of the Audit Committee are undertaken as identified in CIPFA Guidance - Audit Committees: Practical Guidance for Local Authorities. • The Council’s approach to risk management is set out in the Risk Management Framework. A strategic risk register is in place and an update report on this is regularly submitted to the Corporate Services Committee and Audit Committee. The approach is embedded within the Council’s strategic planning and performance management framework with regular reporting of risk management arrangements to service committees. • Comprehensive arrangements are in place to ensure Elected Members and officers are supported by appropriate training and development. • The Council has adopted a response that is appropriate for its fraud and corruption risks and commits to maintain its vigilance to tackle fraud in accordance with the Code of Practice on Managing the Risk of Fraud and Corruption. • The Council continues to assess and monitor ongoing compliance with the CIPFA Financial Management Code. Review of Effectiveness The Council has a responsibility to review, at least annually, the effectiveness of its governance framework including the system of internal financial control. The review of effectiveness of the framework is informed by the work of the CMT which has responsibility for the development, implementation and maintenance of the governance environment, the Chief Internal Auditor’s annual report; and reports from the external auditors and other review agencies and inspectorates. The Council’s current Code of Good Governance was approved at the Audit & Performance Review Committee on 8 March 2017. An assessment of the Council’s compliance with the Code of Good Governance is supported by a process of self-assessment and assurance certification by Chief Officers and the outcome of this assessment was reported to the Audit Committee on 8 June 2023. Each Chief Officer was presented with a self-assessment checklist to complete and return as evidence of review of seven key areas of the Council’s governance framework and provided a certificate of assurance for their service areas. The Audit Committee performs a scrutiny role in relation to the application of the Code of Good Governance and regularly monitors the performance of the Council's Internal Audit service. In relation to the effectiveness of governance arrangements and systems of internal control for the Council’s group entities, the Council places reliance upon the individual bodies’ management assurances in relation to the soundness of their systems of internal control. The Internal Audit service operates in accordance with the Public Sector Internal Audit Standards (PSIAS) 2017 and reports to the Audit Committee. An annual programme of work is determined and undertaken by Internal Audit, approved by the Audit Committee, based upon an established risk based methodology. The Shared Service Manager – Audit & Page 321
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Page 20 Annual Governance Statement West Dunbartonshire Council Annual Accounts 2022-23 Fraud provides an independent opinion on the adequacy and effectiveness of the Council’s System of Internal Financial Control. The Audit Committee performs a scrutiny role in relation to the application of PSIAS and regularly monitors the performance of the Internal Audit service. The Council's Shared Service Manager – Audit & Fraud (the Council’s Chief Internal Auditor) has responsibility for reviewing independently and reporting to the Audit Committee annually, to provide assurance on the adequacy and effectiveness of the code and the extent of compliance with it. It is our view that the Council has in place a sound system of internal financial control and that appropriate mechanisms are in place to identify areas of weakness. This is corroborated by an annual assurance statement prepared by the Shared Service Manager – Audit & Fraud stating that the overall control environment opinion was “Generally Satisfactory with some improvements needed” such that reasonable assurance can be placed upon the adequacy and effectiveness of the Council's internal control systems. There were two audits which received an overall opinion of “Requires Improvement”, namely Occupational Therapy – Waiting Times and Fleet Management. Action plans are in place to address all issues identified in relation to both audits which will be monitored and reported to CMT and Audit Committee. Due to the COVID-19 pandemic, some audits from 2021/22 could not be carried out and were completed in early 2022/23 which has impacted on the completion of the fieldwork for the 2022/23 audit plan. However, the overall audit plan is set within the context of a multi-year approach to audit planning such that key risk areas are reviewed over a 5 year cycle. The system of governance (including the system of internal control) can provide only reasonable and not absolute assurance that the assets are safeguarded, the transactions are authorised and properly recorded, that material errors or irregularities are either prevented or would be detected within a timely period and that significant risks impacting on the achievement of the Council's objectives have been mitigated. COVID-19 The significant incident in late March 2020 and the Council’s management as a Category 1 responder during the COVID- 19 pandemic has continued to test how well the risk management, governance and internal controls framework operated. The longevity of the COVID-19 pandemic and its extension from 2020/21 into 2021/22 meant that the effect on the Council’s businesses, residents and workforce remained an area of concern in 2022/23. The Council’s response to the pandemic and the mobilisation of its staff continued to show the benefits of an agile and proactive workforce using amended governance arrangements, new ways of decision-making, leadership and implementation including virtual meetings and secure remote access to systems to allow remote/home working for a significant number of employees within the Council. The COVID-19 pandemic and its aftermath is likely to have a lasting impact on income levels, resulting from fundamental changes in social movements, behaviours and preferences. Governance Issues and Planned Actions The following main issues and areas for improvement during 2022/23 have been identified through the self-assessment exercise carried out by Chief Officers against key aspects of the Code of Good Governance. These will be monitored as part of the next annual review in 2023/24. Improvement Area identified by 2023/24 Exercise Responsible Officer Embedding Be the Best Conversations within all service teams. Chief Officer, Citizen, Culture and Facilities Work is required in some services to review and update business continuity planning documentation. Chief Officer, Housing and Employability Business Classification Scheme will be rolled out to relevant service areas. Chief Officer, People and Technology Chief Officer, Resources Chief Officer, Education, Learning and Attainment Evaluation processes are built into some key projects but not all. The HSCP would benefit from a consistent Chief Officer, HSCP Page 322
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Page 21 Annual Governance Statement West Dunbartonshire Council Annual Accounts 2022-23 planning approach in this respect and this has been highlighted via external inspection activity. In relation to self-evaluation, work is ongoing to review complaints and consider how all feedback can be captured and used to inform service improvement across HSCP. Chief Officer, HSCP Work is ongoing to implement the Council’s information classification policy and procedure as part of the Microsoft Office 365 project. Data Protection/Information Governance Officer A review of Learning Disability Service is underway to improve on ways of working to ensure the service is fit for future demands. Full review to be picked up as part of renewal and recovery work. Internal Audit support will be provided to the project. Head of Mental Health, Addictions & Learning Disabilities There is currently a resourcing issue in terms of community engagement and participation and although the HSCP Board have adopted a strategy this will be reviewed in 2023/24. Chief Officer, HSCP Process for reporting on the status of external audit actions regularly to Audit Committee will be developed and implemented. Chief Officer, Resources Arrangements for Procurement and Commissioning arrangements remains an area of high risk for the HSCP. Additional resource is now in place to provide focus in this area and address actions arising from a recent Internal Audit review. Chief Officer, HSCP The HSCP employ a small number of consultants through relevant procurement processes. A review of current appointments was undertaken in early 2023 utilising the manager’s guidance and the HMRC website to ensure invoices were being treated appropriately. The HSCP Head of HR and the CFO will support Heads of Service in any new contract arrangements that must comply with off payroll working guidance. Chief Officer, HSCP The 2021/22 Annual Governance Statement highlighted a range of areas for improvement during 2022/23. The following table provides an update on progress with these with a number having been completed or are areas which continue to have an ongoing focus: Improvement Area identified by 2022/23 Exercise Status Embedding Be the Best Conversations within all service teams. Ongoing. There is improvement to be made to ensure all employees have regular 121s. Work is required in some services to review and update business continuity planning documentation. Ongoing. Business Classification Scheme will be rolled out to relevant service areas. Ongoing. Due to ongoing COVID-19 restrictions during 2021/22, some services have been unable to access offices and therefore physical access to hard copy files for destruction has not been possible. This will be resumed in line with easing of restrictions. Complete. Appropriate and proportionate assurances will be sought from key partners and suppliers in relation to business continuity arrangements in place for managing key risks. Complete. Although improvement activity stimulated by external inspection and internal improvement activity is monitored by HSCP Board Ongoing. Page 323
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Page 22 Annual Governance Statement West Dunbartonshire Council Annual Accounts 2022-23 and relevant Projects, it is recognised that HSCP would benefit from establishing arrangements to ensure consistency in monitoring processes. Staff training and development has been identified as an area for improvement and resources have been identified and agreed to ensure co-ordination of approach to training and development across the HSCP. Complete. An integrated workforce plan is being developed for HSCP for approval by HSCP Board during 2022/23. Succession planning has been identified as an area for improvement for the HSCP and work is ongoing in this regard. Complete. In relation to self-evaluation, work is ongoing to review complaints and consider how all feedback can be captured and used to inform service improvement across HSCP. Ongoing. Work is ongoing to implement the Council’s information classification policy and procedure as part of the Microsoft Office 365 project. Ongoing. Review of Learning Disability Service to improve on ways of working to ensure the service is fit for the future demands. Service Improvement lead aligned to service. Full review to be picked up as part of renewal and recovery work. Ongoing. A Project Overview document has been developed and approved by the Integrated Housing Project Board in relation to the IHMS. This document is being utilised to manage all remaining Phase 2 implementation items. Complete. Best Value Assurance Report Audit Scotland reported a Best Value Assurance Report on West Dunbartonshire Council to the Accounts Commission on 28 June 2018 which contained five recommendations, all of which are complete. Health and Social Care Integration The Council, as the funder of the Social Care services within the HSCP has an interest in the governance arrangements within the HSCP Board. Internal Audit arrangements for the HSCP is provided jointly by the Council’s Internal Audit service and the Health Board’s Internal Audit Service, with the Council’s Internal Audit service providing audit arrangements for social care services and the general oversight of the HSCP Board’s governance arrangements. The HSCP Board has arrangements in place to review its own ongoing compliance with the revised Code of Governance. Due to the Council’s role as social care service provider Internal Audit’s process outcomes on such services are reported to the Council’s Audit Committee as well as that of the HSCP Board. The Chief Social Worker provides the Council with an annual report on the performance of the HSCP. The financial arrangements for the Council’s funding to the HSCP Board are aligned and budget processes run parallel to ensure that appropriate budgets for the HSCP Board are aligned with Council policy and budgeting approaches. On an ongoing basis the Council continues to receive budgetary control information in relation to HSCP Board services funded by the Council. Compliance with Best Practice Statement on the role of the Chief Financial Officer in local government The Council complies with the requirements of the CIPFA Statement on “The Role of the Chief Financial Officer in Local Government 2010”. The Council’s Chief Financial Officer (Section 95 Officer) has overall responsibility for the Council’s financial arrangements and is professionally qualified and suitably experienced to lead the Council’s finance function and to direct finance staff. Page 324
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Page 23 Annual Governance Statement West Dunbartonshire Council Annual Accounts 2022-23 Statement on the role of the Head of Internal Audit in Public Service Organisations The Council complies with the requirements of the CIPFA Statement on “The Role of the Head of Internal Audit in Public Service Organisations 2019”. The Council’s Chief Internal Auditor has responsibility for the Council’s Internal Audit function and is professionally qualified and suitably experienced to lead and direct the Council’s Internal Audit staff. The Internal Audit service generally operates in accordance with the CIPFA “Public Sector Internal Audit Standards 2017”. Assurance Subject to the above, and on the basis of the assurances provided, we consider the governance and internal control environment operating during 2023/24 provides reasonable and objective assurance that any significant risks impacting on the achievement of our principle objectives will be identified and actions taken to avoid or mitigate their impact. Systems are in place to continually review and improve the governance and internal control environment with plans in place to address improvement areas. Martin Rooney Peter Hessett Laurence Slavin Leader of the Council Chief Executive Chief Officer – Resources Date:19 December 2024 Date: 19 December 2024 Date: 19 December 2024 Page 325
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Page 24 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Remuneration Report Introduction The Council is required under statute to provide information on the remuneration of each senior elected member and senior officer and any other officer not otherwise included whose remuneration is over £0.150m per annum. All information disclosed in the tables 1-6 and section (b) of the Remuneration Report is subject to audit. The other sections are reviewed by external audit to ensure that they are consistent with the Financial Statements. Remuneration - Councillors The remuneration of Councillors is regulated by the Local Governance (Scotland) Act 2004 (Remuneration) Amendment Regulations 2022 (SSI No. 2022/18). The Regulations provide for the grading of Councillors for the purposes of remuneration arrangements, as the Leader of the Council, the Civic Head (Provost), Senior Councillors and Councillors. The Leader of the Council and the Provost cannot be the same person for the purposes of payment of remuneration. A Senior Councillor is a Councillor who holds a significant position of responsibility in the Council’s political management structure. The regulations stipulate that in addition to the Leader of the Council and the Provost, West Dunbartonshire can appoint a maximum of ten Senior Councillors. The level of remuneration paid to the Leader of the Council, Provost and Senior Councillors is detailed in Table 1. The salary that is to be paid to the Leader of the Council is set out in the Regulations. For 2022/23 the salary for the Leader of West Dunbartonshire Council was £39,148. The Regulations also state that the maximum yearly amount that may be paid to the Provost (£29,361) is 75% of the total yearly amount payable to the Leader of the Council. The Regulations also state the remuneration that may be paid to Senior Councillors and the total number of Senior Councillors the Council may have. The maximum yearly amount that may be paid to a Senior Councillor (£29,361) is 75% of the total yearly amount payable to the Leader of the Council. For 2022/23 the total yearly amount payable by the Council for remuneration of all of its Senior Councillors shall not exceed £244,670. The Council is able to exercise local flexibility in the determination of the precise number of Senior Councillors and their salary within these maximum limits. Council policy is to pay Senior Councillors a salary of £24,467, per the decision at Council on 18 May 2022 for 2022/2023 onwards. During 2022/23, the Council agreed the appointment of a Council Leader, Provost and 10 Senior Councillors and the remuneration due to be paid to the 10 Senior Councillors for a full year will total £244,670 (£232,570 in 2021/22 for those Senior Councillors). The Regulations also permit the Council to pay contributions or other payments as required to the Local Government Pension Scheme in respect of those Councillors who elect to become Councillor members of the pension scheme. The pension entitlements for the year to 31 March 2023 are shown in Table 5 on pages 30 and 31. The Scheme of Members Allowances which encompasses the salaries of all elected members including the Leader, Provost and Senior Councillors was agreed at a meeting of the full Council on 18 May 2022. The report to Council can be found at Appointment of Senior Officers and the Register of Members Allowances can be found at https://www.west- dunbarton.gov.uk/media/wauoue1u/register-of-allowances-2022-2023.pdf. Page 326
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Page 25 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Table 1: Remuneration of Senior Councillors The Council paid the following salaries, allowances and expenses to all Councillors (including the Senior Councillors above) during the year: 2021/22 Total Remuneration Senior Members Responsibility Salary, Fees & Allowances Total Remuneration £ £ £ 18,604 Martin Rooney Leader of Council (from 18 May 2022) 35,885 35,885 Convener of Cultural Committee (from 18 May 2022) Convener of Recruitment & Individual Performance Management Committee (from 18 May 2022) Leader of Opposition (until 4 May 2022) Convener of Vale of Leven Fund Committee (until 4 May 2022) 18,604 Douglas McAllister Provost (from 18 May 2022) 27,729 27,729 23,254 Karen Conaghan Leader of the Opposition (from 18 May 2022) 24,145 24,145 Convener of Audit & Performance Review Committee (from 18 May 2022) Depute provost (until 4 May 2022) Depute Leader (until 4 May 2022) Convener of Appeals Committee (until 4 May 2022) Convener of Educational Services Committee (until 4 May 2022) - Gurpreet Singh Johal Convener of Appeals Committee (from 18 May 2022) 21,803 21,803 Convener of Housing & Communities Committee (from 13 October 2022) 18,602 Daniel Lennie Convener of Corporate Services Committee (from 18 May 2022) 23,677 23,677 18,602 David McBride Convener of Infrastructure Regeneration & Economic Dev Committee (from 18 May 2022) 23,651 23,651 Convener of Joint Consultative Forum (from 18 May 2022) - Michelle McGinty Depute Leader (from 18 May 2022) 21,803 21,803 Convener of West Dunbartonshire Health & Social Care Partnership Board (IJB) (from 18 May 2022) 18,604 John Millar Depute Provost (from 18 May 2022) 23,651 23,651 Convener of Tendering Committee (from 18 May 2022) 18,604 Lawrence O'Neill Convener of Planning Committee (from 18 May 2022) Convener of Licensing Committee (from 18 May 2022) 23,651 23,651 - Clare Steel Convener of Educational Services Committee (from 18 May 2022) 21,803 21,803 37,213 Jonathan McColl Leader of Council (until 4 May 2022) Convener of Recruitment & Individual Performance Management Committee (until 4 May 2022) Convener of Sub Committee on Scheme of Delegation (until 4 May 2022) 21,448 21,448 27,910 William Hendrie Provost (until 4 May 2022) 2,815 2,815 23,257 Denis Agnew Bailie (until 4 May 2022) Convener of West Dunbartonshire Health & Social Care Partnership (IJB) (until 4 May 2022) Convener of Licensing Board (until 4 May 2022) 2,346 2,346 23,254 Ian Dickson Convener of Corporate Services Committee (until 4 May 2022) Convener of Tendering Committee (until 4 May 2022) Convenor of Licensing Board (until 4 May 2022 25,192 25,192 23,254 Diane Docherty Convener of Housing & Communities Committee (until 4 May 2022) 20,040 20,040 23,357 Jim finn Convener of Licensing Committee (until 4 May 2022) Convener of Planning Committee (until 4 May 2022) 2,346 2,346 23,254 Iain McLaren Convener of Infrastructure Regeneration & Economic Development Committee (until 4 May 2022) 2,343 2,343 19,394 Marie McNair Convener of West Dunbartonshire Health & Social Care Partnership (IJB) (until 1 June 2021) 1,877 1,877 23,257 John Mooney Convener of Audit Committee (until 4 May 2022) 2,346 2,346 Year ended 31 March 2023 Note: The term Senior Councillor means a Leader of the Council, the Civic Head or a Senior Councillor, all as defined by regulation 2 of the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007(3). Salaries, allowances and expenses in 2022/23 have only been included for Senior Councillors. Page 327
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Page 26 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Senior Councillors’ remuneration in the tables above does not include non-taxable expenses. The values in the table above relate to the actual payments made during 2022/23 which differ slightly from those stated on page 22 due to timing differences in regards to payroll. There is no compensation/loss of office payments within the period and there were no benefits or bonuses paid during the year. Councillors’ remuneration Councillors’ payments are made in accordance with the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007 and The Local Government (Allowances and Expenses) (Scotland) Regulations 2007. The total amount of councillors’ remuneration paid by the Council during the year was: Table 2: Councillors Total Remuneration 2021/22 Members Allowance 2022/23 £ £ 470,582 Salaries 500,319 4,020 Expenses 8,508 474,602 Total Allowances 508,827 The annual return of councillors’ salaries and expenses for 2022/23 is available for any member of the public to view at all Council libraries and public offices during normal working hours. It is also available on the Council’s website at: https://www.west-dunbarton.gov.uk/media/wauoue1u/register-of-allowances-2022-2023.pdf Remuneration - Senior Employees and senior Employees of Subsidiaries The salary of senior employees is set by reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) for Local Authority Services sets the salaries for the Chief Executives of Scottish local authorities. Circular CO/152 sets the amount of salary for the Chief Officials of the Council for the period 1 April 2022 to 31 March 2023. The post of Chief Officer Health and Social Care Partnership is a joint post between the Council and NHS Greater Glasgow and Clyde. The post of Chief Officer Roads & Neighborhood is a joint post between the Council and Inverclyde Council. The only benefits received by employees are: salary; employer contributions to the pension fund; and where applicable, payment for election duties. There were no bonuses, compensation for loss of office or other benefits paid to senior employees during the year. The remuneration details for senior employees are noted in Table 3: Page 328
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Page 27 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Table 3: Senior Officers Remuneration *Note: Election payments for 2022/23 are for the Local elections held on the 5 May 2022 (2021/22-Scottish Parliamentary Election held on the 6 May 2021). Details of the post of Chief Officer HSCP are included in the remuneration report of the Integration Joint Board. The Council funds 50% of this post and NHS Greater Glasgow fund the remaining 50%. Details of the post of Chief Officer Roads & Neighbourhood (shared post with Inverclyde Council) are included in the remuneration report of Inverclyde Council. The Council funds 50% of this post which was £64,300 (including employer on costs). Remuneration of Employees receiving more than £50,000 Council employees receiving more than £50,000 remuneration for the year were paid the following amounts. In accordance with the disclosure requirement of the Regulations, the information in Table 4 shows the number of employees in bands of £5,000. This information includes the senior employees who are subject to the fuller disclosure requirements in the tables above. Total Remuneration 2021/22 Name Position at 31 March 2023 Salary, Fees & Allowances 2022/23 Election duties* Total Remuneration 2022/23 £ £ £ £ 142,287 Joyce white Chief Executive (until 26 June 2022) 32,963 (FYE 140,001) 1,246 142,287 102,302 Peter Hessett Chief Executive (from 27 June 2022) Chief Officer - Regulatory & Regeneration (until 26 June 2022) 126,052 126,052 115,070 Richard Cairns Strategic Director of Regeneration, Environment & Growth (seconded role from 1/10/2020 -until 30 September 2022) 56,191 (FYE 115,114) 56,191 27,411 (FYE 88,322) Lesley James Head of Children’s Healthcare & Criminal Justice - Chief Social Work Officer 92,861 92,861 96,339 Laura Mason Chief Officer - Education, Learning & Attainment 101,506 101,506 22,357 (FYE 92,817) Laurence Slavin Chief Officer - Resources - S95 Officer 98,804 150 98,954 - Alan Douglas Chief Officer - Regulatory & Regeneration (from 3 October 2022) 85,049 (FYE 97,458) 85,049 97,154 Victoria Rogers Chief Officer - People & Technology 101,210 101,210 115,070 Angela Wilson Chief Officer - Supply, Distribution & Property 115,158 115,158 96,804 Peter Barry Chief Officer - Housing & Employability 101,210 101,210 74,720 (FYE 93,197) Amanda Graham Chief Officer - Citizen, Culture & Facilities 98,646 180 98,826 77,780 John Anderson General Manager of West Dunbartonshire Leisure 81,464 81,464 Remuneration of Senior Employees Remuneration of Senior Employees of Subsidairies Page 329
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Page 28 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Table 4: Remuneration of Officers receiving more than £50,000 2021-22 2022/23 Number of Officers Number of Officers 128 £50,000 - £54,999 91 46 £55,000 - £59,999 106 28 £60,000 - £64,999 34 48 £65,000 - £69,999 32 10 £70,000 - £74,999 42 0 £75,000 - £79,999 10 1 £80,000 - £84,999 1 4 £85,000 - £89,999 2 0 £90,000 - £94,999 6 5 £95,000 - £99,999 2 1 £100,000 - £104,999 5 0 £105,000 - £109,999 0 0 £110,000 - £114,999 0 3 £115,000 - £119,999 1 0 £120,000 - £124,999 2 0 £130,000 - £134,999 0 1 £140,000 - £144,999 0 275 Total 334 Range Pension Benefits Pension benefits for Councillors and most local government employees are provided through the Local Government Pension Scheme (LGPS). Councillors’ pension benefits are based on career average pay. The Councillor’s pay for each year or part year ending 31 March (other than the pay in the final year commencing 1 April) is increased by the increase in the cost of living, as measured by the appropriate index (or indices) between the end of that year and the last day of the month in which their membership of the scheme ends. The total of the revalued pay is then divided by the period of membership to calculate the career average pay. This is the value used to calculate the pension benefits. The pension entitlements for the year to 31 March 2023 are shown in Tables 6 and 7 on pages 30 and 31. The table details the pension entitlement and contributions made by the Council in respect of all senior Councilors and senior officers of the Council who have opted to join the LGPS. For local government employees, the LGPS 2015 is a career average pension scheme. This means that pension benefits from 01/04/2015 are based on pensionable pay with inflation added. Pension is accrued at a rate of 1/49 of pensionable pay for each scheme year. Pension benefits can be accessed from age 55 but are reduced prior to 60th birthday. Pension benefits accrued before 1 April 2015 are protected and are based on final pay on retiring. Pension benefits for teachers are provided through Scottish Teachers Superannuation Scheme (STSS). The STSS is a contributory scheme administered by the Scottish Public Pension Agency (SPPA). From 1 April 2015 the scheme is a career average pension scheme. Pension benefits are increased in line with inflation. Pension is accrued at 1/57 of pensionable earnings each year. Pension benefits can be accessed earlier than the normal state pension age but will be reduced if taken earlier than the normal pension age (state pension age). From 1 April 2009, a five tier contribution system was introduced with contributions from scheme members being based on how much pay falls into each tier. This is designed to give more equality between the cost and benefits of scheme membership. Table 5 provides information on these tiered contribution rates. Page 330
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Page 29 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Table 5: Pension Contribution Rates Contribution rate 2021/22 Contribution rate 2022/23 The tiers and members contribution rates for 2022/23 (2021/22) whole time pay: Local Government employees 5.50% On earnings up to and including £23,000 (£22,300) 5.50% 7.25% On earnings above £23,001 (£22,301) and up to £28,100 (£27,300) 7.25% 8.50% On earnings above £28,101(£27,300) and up to £38,600 (£37,400) 8.50% 9.50% On earnings above £38,601 (£37,401) and up to £51,400 (£49,900) 9.50% 12.00% On earnings above £51,401 (£49,901) 12.00% The tiers and members contribution rates for 2022/23 (2021/22) actual pay: Teachers 7.20% On earnings up to and including £29,186 (£28,309) 7.20% 8.70% On earnings above £29,186 (£28,309) and up to £39,289 (£38,108) 8.70% 9.70% On earnings above £39,289 (£38,108) and up to £46,586 (£45,186) 9.70% 10.40% On earnings above £46,586 (£45,186) and up to £61,740 (£59,884) 10.40% 11.50% On earnings above £61,740 (£59,884) and up to £84,190 (£81,659) 11.50% 11.90% On earnings above £84,190 (£81,659) 11.90% If a person works part-time their contribution rate is worked out on the whole-time pay rate for the job, with actual contributions paid on actual pay earned. There is no automatic entitlement to a lump sum. Members may opt to give up (commute) pension for lump sum up to the limit set by the Finance Act 2004. The accrual rate guarantees a pension based on 1/49th of pay from 1 April 2015. Prior to this the accrual rate guarantees a pension based on 1/60th of final pensionable salary and years of pensionable service. Prior to 2009 the accrual rate guaranteed a pension based on 1/80th and a lump sum based on 3/80th of final pensionable salary and years of pensionable service. The value of the accrued benefits has been calculated on the basis of the age at which the person will first become entitled to receive a pension on retirement without reduction on account of its payment at that age; without exercising any option to commute pension entitlement into a lump sum; and without any adjustment for the effects of future inflation. You can retire and receive your benefits in full from your normal pension age. The normal pension age is 65 for any benefits built up before 1 April 2015. For pension build up from 1 April 2015, the Normal Pension Age is not fixed at age 65 but, instead, is the same as the State Pension Age (but with a minimum of age 65). The value of benefits in the table below has been provided by the Strathclyde Pension Fund Office and is calculated on the basis of the age at which the person will first become entitled to a full pension on retirement without reduction on account of its payment at that date: without exercising any option to commute pension entitlement into a lump sum: and without any adjustment for the effects of future inflation. The pension figures shown relate to the benefits that the person has accrued as a consequence of their total Local Government service, and not just their current appointment. The pension entitlements for the year to 31 March 2023 together with the contribution made by the Council to each person’s pension during the year is shown in Table 6 for Senior Councillors and Table 7 for Senior Officers. The tables contain information for those persons who were Senior Officers or Senior Councillors in 2022/23. The pension figures shown relate to the benefits that the person has accrued as a consequence of their total public sector service, and not just their current appointment. The pension entitlements for the year to 31 March 2023 for Senior Councillors are shown in Table 5, together with the contribution made by the Council to each Senior Councillor’s pension during the year. Senior councillors omitted from the table above are not members of the Local Government Pension Scheme. Page 331
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Page 30 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Table 6: Pension Benefits for Senior Councillors Name Position at 31 March 2023 For year to 31 March 2023 For year to 31 March 2022 As at 31 March 2023 Difference from 31 March 2022 Senior Councillors £ £ £'000 £'000 Martin Rooney Leader of Council (from 18 May 2022) 6,926 3,591 11 2 Convener of Cultural Committee (from 18 May 2022) Convener of Recruitment & Individual Performance Management Committee (from 18 May 2022) Leader of Opposition (until 4 May 2022) Convener of Vale of Leven Fund Committee (unti 4 May 2022) Douglas McAllister Provost (from 18 May 2022) 5,352 3,591 2 1 Karen Conaghan Leader of the Opposition (from 18 May 2022) 4,647 4,480 3 1 Convener of Audit & Performance Review Committee (from 18 May 2022) Depute provost (until 4 May 2022) Depute Leader (until 4 May 2022) Convener of Appeals Committee (until 4 May 2022) Convener of Educational Services Committee (unitl 4 May 2022) Gurpreet Singh Johal Convener of Appeals Committee (from 18 May 2022) 4,233 0 1 - Convener of Housing & Communities Committee (from 13 October 2022)Daniel Lennie Convener of Corporate Services Committee (from 18 May 2022) 4,564 3,584 2 1 David McBride Convener of Infrastructure Regeneration & Economic Development Committee (from 18 May 2022) 4,565 3,591 7 1 Convener of Joint Consultative Forum (from 18 May 2022) Michell McGinty Depute Leader (from 18 May 2022) 4,233 - 1 - Convener of West Dunbartonshire Health & Social Care Partnership Board (IJB) (from 18 May 2022) John Millar Depute Provost (from 18 May 2022) 4,565 3,591 2 1 Convener of Tendering Committee (from 18 May 2022) Lawrence O'Neill Convener of Licensing Committee (from 18 May 2022) 4,565 3,591 4 3 Convener of Planning Committee (from 18 May 2022) Clare Steel Convener of Educational Services Committee (from 18 May 2022) 4,233 0 1 - Jonathan McColl Leader of Council (until 4 May 2022) 4,140 7,182 11 1 Convener of Recruitment & Individual Performance Management Committee (until 4 May 2022) Convener of Sub Committee on Scheme of Delegation (until 4 May 2022) Denis Agnew Bailie (until 4 May 2022) 453 4,489 10 2 Convener of West Dunbartonshire Health & Social Care Partnership (IJB) (until 4 May 2022) Convener of Cultural Committee (until 4 May 2022) Ian Dickson Councillor 3,973 4,480 3 1 Convener of Corporate Services Committee (until 4 May 2022) Convener of Tendering Committee (until 4 May 2022) Convener of Licensing Board (until 4 May 2022) Diane Docherty Councillor 3,850 4,480 3 1 Convener of Housing & Communities Committee (until 4 May 2022) Jim Finn Convener of Licensing Committee (until 4 May 2022) 453 4,489 6 1 Convener of Planning Committee (until 4 May 2022) Iain Mclaren Convener of Infrastructure Regeneration & Economic Development Committee (until 4 May 2022) 414 4,480 2 1 John Mooney Convener of Audit Committee (until 4 May 2022) 453 4,489 5 1 Caroline McAllister Depute Leader (to 29/3/2021) 331 3,570 2 1 In-year pension contributions Accrued pension benefits Page 332
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Page 31 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Table 7 Pension Benefits for Senior Officers Name Position at 31/03/23 For year to 31 March 2023 For year to 31 March 2022 As at 31 March 2023 Difference from 31 March 2022 £ £ £'000 £'000 Joyce White Chief Executive (until 26 June 2022) 6,464 27,404 42 1 Peter Hessett Chief Executive (from 27 June 2022) 24,171 18,646 133 35 Chief Officer - Regulatory & Regeneration (until 26 June 2022) Richard Cairns Strategic Director of Regeneration, Environment & Growth (seconded role from 1/10/2020)(until 30 September 2022)11,079 24,037 75 2 Lesley James Head of Children’s Healthcare & Criminal Justice - Chief Social Work Officer (from 6 Dec 2021) 17,782 5,431 36 36 Laura Mason Chief Officer - Education, Learning & Attainment 19,591 18,605 149 12 Laurence Slavin Chief Officer - Resources - S95 Officer (from 3 Jan 2022) 19,051 4,466 2 2 Alan Douglas Chief Officer - Regulatory & Regeneration (from 3 October 2022) 16,434 13,297 112 29 Victoria Rogers Chief Officer - People & Technology 19,542 18,646 78 5 Angela Wilson Chief Officer-Supply,Distrubtion & Property 22,157 22,157 165 3 Peter Barry Chief Officer - Housing & Employability 19,542 18,646 65 5 Amanda Graham Chief Officer - Citizen, Culture & Facilities (from 5 Jan 2022) 19,049 14,357 12 2 Senior Employees of Subsidiaries John Anderson General Manager of West Dunbartonshire Leisure 15,694 14,979 64 4 In-year pension contributions Accrued pension benefits Senior Employees Exit Packages The number of exit packages with cost per band for compulsory and other redundancies are detailed in table 8 below. The Council only agrees exit packages where they are consistent with wider workforce planning and service delivery objectives; and where the savings accruing from an individual ceasing employment with the Council exceed the costs of the exit package within an acceptable period. For the purposes of this note Exit Packages include: • Redundancy payment; • Strain on the fund cost (the amount which the Council is required to pay to the pension fund because the employee has retired before the assumed retirement age); • Added Years Lump Sum (the amount which the Council pays to the individual in a one-off lump sum, according to the compensatory added years awarded – maximum three years). Table 8: Exit Packages Departures Total Cost (£) Departures Total Cost (£) 0 0 £0 - £40,000 40 37,170 0 0 £40,001-£150,000 5 248,164 0 0 Total 45 285,334 2022-232021-22 Banding Martin Rooney Peter Hessett Leader of the Council Chief Executive Date: 19 December 2024 Date:19 December 2024 Page 333
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Page 32 Remuneration Report West Dunbartonshire Council Annual Accounts 2022-23 Trade Union Facility Time (Unaudited) Facility time generates benefits for employees, managers and the wider community from effective joint working between union representatives and employers. Details of the facility time within West Dunbartonshire Council during the year to 31 March 2023 is shown in Table 9 below. Further detail can be found at: https://www.west-dunbarton.gov.uk/council/performance-and-spending/trade-union-facility-time-reports/ Table 9: Trade Union Facility Time Number of Employees FTE employee Number Number of Employees FTE employee Number 38 33 62 58 Percentage Number of Employees Percentage Number of Employees Less < 1% 29 Less < 1% 32 1-50% 7 1-50% 27 51%-99% 2 51%-99% 1 100% 0 100% 2 6.50% 13.00% Percentage of Pay Bill Spent on Percentage of Pay Bill Spent on Facility 0.090% 0.110% Paid TU Activities Paid TU Activities £64,239 £105,033 Total pay bill Total pay bill £69,626,237 £97,835,127 Education Function Employee All Other Function Employee Percentage of Time Spent on Percentage of Time Spent on Facility Total cost of facility time Total cost of facility time Page 334
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Page 33 Comprehensive Income and Expenditure Statement West Dunbartonshire Council Annual Accounts 2022-23 Comprehensive Income and Expenditure Statement This statement shows the accounting cost in year, of providing services in accordance with relevant International Financial Reporting Standards, rather than the amount to be funded from taxation. The Council raises taxation to cover expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement and the Expenditure and Funding Analysis. 2021/22 2021/22 2021/22 2022/23 2022/23 2022/23 Gross Gross Net Gross Gross Net Expenditure Income* Expenditure* Expenditure Income Expenditure £'000 £'000 £'000 Note £'000 £'000 £'000 Service 70,188 (37,337) 32,851 Corporate Services 67,056 (37,937) 29,119 134,332 (17,445) 116,887 Educational Services 132,838 (21,061) 111,777 66,182 (13,334) 52,848 Infrastructure, Regeneration and Economic Development 67,558 (14,516) 53,042 39,631 (31,853) 7,778 Housing and Communities 38,226 (32,211) 6,015 58,847 (44,363) 14,484 Housing Revenue Account 43,183 (45,927) (2,744) 7,021 (8,501) (1,480) Miscellaneous Services 10,641 (8,964) 1,677 191,951 (107,449) 84,502 Health and Social Care 214,678 (122,556) 92,122 2,517 0 2,517 Requisitions 2,215 0 2,215 570,669 (260,282) 310,387 Net Cost of Service 576,395 (283,172) 293,223 998 Other Operating Expenditure and (income) - (Gain) / loss on Disposal of non-current assets (365) 22,442 Financing and Investment (Income) and Expenditure 8 24,076 (258,637) Taxation and Non-specific Grant Income 9 (267,663) 75,190 (Surplus)/Deficit on Provision of Services 49,271 (6,039) (Surplus)/Deficit arising from revaluation of non-current assets 11 (53,290) (300) (Surplus)/Deficit on revaluation of assets held at fair value through other comprehensive income 0 (140,041) Remeasurement of the net defined benefit pension liability (67,135) (146,380) Other Comprehensive (Income) and Expenditure (120,425) (71,190) Total Comprehensive (Income) and Expenditure (71,154) * The 2021/22 Financial Statements have been restated to remove the DBFM grant income from Taxation and non-specific grant income and recognise it within the Net Cost of service. Restated* Page 335
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Page 34 Balance Sheet West Dunbartonshire Council Annual Accounts 2022-23 Balance Sheet The balance sheet shows the value, as at the balance sheet date, of the assets and liabilities recognised by the Council. The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council. Reserves are reported in two categories: 1. Usable reserves - reserves that the Council may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example the capital receipts reserve that may only be used to fund capital expenditure or repay debt). 2. Unusable reserves - reserves that the Council is not able to use to provide services. This category of reserves includes reserves that hold unrealised gains and losses (for example the revaluation reserve), where amounts would only become available to provide services if the assets are sold; and reserves that hold timing differences shown in the MIRS line ‘adjustments between accounting basis and funding basis under regulations. 31 March 2022 31 March 2023 £'000 Note £'000 1,051,605 Property, Plant and Equipment 11 1,131,554 617 Intangible Assets 12 722 21 Long Term Debtors 20 1,485 Heritage Assets 13 1,518 882 Long Term Investments 472 1,054,610 Long Term Assets 1,134,286 5,417 Non-Current Assets Held for Sale 14 5,417 1,279 Inventories 1,337 67,568 Short Term Debtors 17 62,110 2,140 Cash and Cash Equivalents (net) 18 2,551 76,404 Current Assets 71,415 (75,140) Short Term Creditors 19 (75,642) (76) Donated Inventories 0 0 Provisions 20 (3,428) (3,370) PPP 15 (3,032) (270,923) Short Term Borrowing 21 (319,979) (349,509) Current Liabilities (402,081) (89,115) PPP and Finance Lease Liabilities 15 (86,084) (307,485) Long Term Borrowing 21 (300,471) (55,690) Net Pensions Liability 22 (15,390) (2,093) Capital Grants Receipts in Advance (3,398) (454,383) Long Term Liabilities (405,343) 327,122 Net Assets 398,277 Represented by: (19,052) Usable Reserves MIR (33,278) (308,070) Unusable Reserves MIR (364,999) (327,122) Total Reserves (398,277) Page 336
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Page 35 Movement in Reserves Statement West Dunbartonshire Council Annual Accounts 2022-23 Movement in Reserves Statement This statement shows the movement in the year on the different reserves held by the Council, analysed into ‘usable reserves’ (i.e. those that can be applied to fund expenditure or reduce local taxation) and other reserves. The surplus or (deficit) on the provision of services line in the Comprehensive Income and Expenditure Statement (page 33) shows the true economic cost of providing the Council’s services. These are different from the statutory amounts required to be charged to the General Fund balance and the Housing Revenue Account for council tax setting and dwelling rent setting purposes. The net increase/decrease before transfer to other statutory reserves line shows the statutory general fund balance and housing revenue account balance before any discretionary transfers to or from earmarked reserves undertaken by the Council. General Fund balance HRA Balance Capital Grants and Receipts Unapplied Account Capital Reserve Capital Fund Other Reserves Total Usable Reserves Unusable Reserves Total Reserves £000 £000 £000 £000 £000 £000 £000 £000 £000 2022/23 Balance at 31 March 2022 Carried Forward (15,020) (2,734) (72) (758) 0 (468) (19,052) (308,070) (327,122) Adjustment to the statutory repayment of debt for service concession arrangements - permitted flexability* (29,734) (29,734) 29,734 0 Opening Balance at 1 April 2021 (44,754) (2,734) (72) (758) 0 (468) (48,786) (278,336) (327,122) Movement in Reserve 2022/23 Total Comprehensive Expenditure and Income 49,008 262 49,270 (120,425) (71,155) Adjustments between accounting basis and funding basis under regulations (Note 6) (32,628) (432) 0 (702) 0 (33,762) 33,762 0 Net (Increase)/Decrease before Transfers to Other Statutory Reserves 16,380 (170) 0 0 (702) 0 15,508 (86,663) (71,155) Transfers to/from other statutory reserves (1,935) 269 0 758 702 206 0 0 0 Increase/Decrease in Year 14,445 99 0 758 0 206 15,508 (86,663) (71,155) Closing Balance at 31 March 2023 (30,309) (2,635) (72) 0 0 (262) (33,278) (364,999) (398,277) (33,278) 2021/22 Balance at 31 March 2021 Carried Forward (15,028) (7,364) (42) (1,469) 0 (308) (24,211) (231,721) (255,932) 0 Movement in Reserve 2021/22 Total Comprehensive Expenditure and Income 55,921 19,269 75,190 (146,380) (71,190) Adjustments between accounting basis and funding basis under regulations (Note 6) (53,525) (14,944) (1,867) (403) (70,739) 70,739 0 Net (Increase)/Decrease before Transfers to Other Statutory Reserves 2,396 4,325 (1,867) 0 (403) 0 4,451 (75,641) (71,190) Transfers to/from other statutory reserves (2,388) 305 1,837 711 403 (160) 708 (708) Increase/Decrease in Year 8 4,630 (30) 711 0 (160) 5,159 (76,349) (71,190) Closing Balance at 31 March 2022 (15,020) (2,734) (72) (758) 0 (468) (19,052) (308,070) (327,122) Page 337
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Page 36 Cashflow Statement West Dunbartonshire Council Annual Accounts 2022-23 Cash Flow Statement The cash flow statement shows the changes in cash and cash equivalents of the Council during the reporting period. The statement shows how the Council generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Council are funded by way of taxation and grant income or from the recipients of services provided by the Council. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Council’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the Council. 2021/22 2022/23 2022/23 £'000 £'000 £'000 Operating Activities 75,190 Net deficit on the provision of services 49,271 (65,954) Depreciation, amortisation and impairment (36,639) (1,006) Net gain/loss on non-current assets 365 (32,116) Movement in pension liabilities (26,835) (82) Movement in inventories 57 376 Movement in debtors (5,459) (6,345) Movement in creditors and provisions (3,907) 272 Other non-cash movements 59 (104,855) Adjustments to net deficit on the provision of services for non-cash movements (72,359) 15 Financing movements 876 7,746 Investing movements 17,263 7,761 Adjustments for items included in the net surplus/deficit on the provision of services that are investing and financing activities 18,139 (21,904) Net cash (inflow)/outflow from Operating Activities (4,949) 66,167 Purchase of property, plant and equipment and intangible assets 62,099 (2,262) Proceeds from sale of property, plant and equipment and intangible assets (702) 393 Movement on long term investments (411) (6,943) Other receipts from investing activities (18,568) 57,355 Net cash (inflow)/outflow from investing activities 42,418 (350,501) Cash receipts of short-term and long-term borrowing (322,950) 3,808 Repayment of PPP liabilities 3,370 320,751 Repayment of short-term and long-term borrowing 281,700 (888) Debtors held for agency payments 1,480 Creditors held for agency payments (25,350) Financing Activities (37,880) 10,101 Net cash (inflow)/outflow from financing activities (411) 12,241 Cash and cash equivalents at the beginning of the reporting period 2,140 2,140 Cash and cash equivalents at the end of the reporting period 2,551 10,101 Movement – (Increase)/ Decrease in Cash (411) Reconciliation of Liabilities arising from Financing Activities 31 March 2021 Financing Cash flows Non-cash adj to FIAA 31 March 2022 Financing Cash flows Non- cash adj to FIAA 31 March 2023 £'000 £'000 £'000 £'000 Long term Borrowing 284,798 22,687 307,485 (7,014) 300,471 Short term Borrowing 263,861 7,077 (15) 270,923 49,933 (876) 319,980 PPP Liability 96,293 (3,808) 92,485 (3,370) 89,115 644,952 25,956 (15) 670,893 39,549 (876) 709,566 Page 338
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Page 37 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 1 - Accounting Policies 1.1 General Principles The Financial Statements summarises the Council’s transactions for the 2023/24 financial year and its position at the year end of 31 March 2023. The Council is required to prepare an Annual Statement of Accounts by the Local Authority Accounts (Scotland) Regulations 2014. Section 12 of the Local Government in Scotland Act 2003 requires they be prepared in accordance with proper accounting practices. These practices primarily comprise the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (“the code”) supported by International Financial Reporting Standards (IFRS). The accounting convention adopted in the Financial Statements is principally historic cost, modified by the revaluation of certain categories of non-current assets and financial instruments. The convention also adopts the assumption that the Council will continue as a going concern for the foreseeable future. 1.2 Accruals of Income and Expenditure Activity is accounted for in the year that it takes place, not simply when payment is made or received. In particular: • Revenue from contracts with service recipients, whether for services or the provision of goods, is recognised when (or as) the goods or services are transferred to the service recipient in accordance with the performance obligations in the contract. • expenses in relation to services received are recorded as expenditure when the services are received, rather than when payment is made. • supplies are recorded as expenditure when they are consumed. Where there is a gap between the date supplies are received and their consumption their value is carried as inventories on the Balance Sheet. • interest payable on borrowings and receivable on investments is accounted for respectively as expenditure and income on the basis of the effective interest rate for the relevant financial instrument, rather than on cash flows fixed or determined by the contract. • when income and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where there is evidence that debts are unlikely to be settled, the balance of debtors is written down and charged to revenue for the income that might not be collected 1.3 Changes in Accounting Policies, Estimates and Errors Changes in accounting policies are only made when required by proper accounting practices or the change provides more reliable or relevant information about the effect of transactions, events or conditions on the Council’s financial position or performance. Where a change is made, it is applied retrospectively by adjusting opening balances and comparative figures, as if the new policy has always been applied. Changes in accounting estimates are accounted for prospectively, i.e. in the current and future years only. Material errors discovered in prior period figures are corrected retrospectively by amending opening balances and comparative figures. 1.4 Charges to Revenue for Property, Plant and Equipment Council Services are debited/credited with the following amounts to record the cost of using or holding fixed assets during the year: • depreciation, attributable to the assets used by the relevant service or trading account. • revaluation and impairment losses, where there is no accumulated gain in the Revaluation Reserve • revaluation gains, where these reverse an impairment loss previously charged to the service or trading account. • amortisation of intangible fixed assets. The Council is not required to raise council tax to cover depreciation, revaluation gains or losses or impairment losses. However, it is required to make annual provision from revenue towards the reduction in its overall borrowing requirement. Depreciation, revaluation and impairment losses and amortisations are replaced by the revenue provision in the General Fund by an adjustment within the Capital Adjustment Account in the Movement in Reserves Statement for the difference between the two. Page 339
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Page 38 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 1.5 Intangible assets Internally generated assets are capitalised where it is demonstrable that the project is technically feasible and is intended to be completed (with adequate resources being available) and the Council will be able to generate future economic benefits or deliver service potential by being able to sell or use the asset. Expenditure is capitalised where it can be measured reliably as attributable to the asset and restricted to that incurred during the development phase (research expenditure is not capitalised). Expenditure on the development of websites is not capitalised if the website is solely or primarily intended to promote or advertise the Council’s goods or services. Assets are measured originally at cost and only revalued where the fair value of the asset can be determined by reference to an active market. Where an intangible asset has a finite useful life, the depreciable amount of the asset is charged over its useful life to the relevant service line(s) in the Comprehensive Income and Expenditure Statement. An asset is tested for impairment whenever there is an indication that the asset might be impaired – any losses recognised are posted to the relevant service line(s) in the Comprehensive Income and Expenditure Statement. Any gain or loss arising on the disposal or abandonment of an intangible asset is recognised in the Surplus or Deficit on the Provision of Services when the asset is derecognised. 1.6 Property, Plant and Equipment Assets that have physical substance and are held for the supply of goods and services, either directly or indirectly, and that are expected to be used during more than one financial year are classified as Property, Plant and Equipment. 1.6.1 Recognition Expenditure on the acquisition, creation or enhancement of property, plant and equipment is capitalised on an accruals basis, provided that it is probable that the future economic benefits or service potential associated with the item will flow to the Council and the cost of the asset can be measured reliably. Expenditure that maintains, but does not add to the asset’s potential to deliver future economic benefits or service potential, is charged as an expense when it is incurred. 1.6.2 Measurement Assets are initially measured at cost, comprising of: • purchase price (the Council has no de minimis level set) • any costs associated with bringing the asset to the location or condition necessary for it to be capable of operating in the manner intended by management • the initial estimate of costs for dismantling and removing the item and restoring the site on which it is located to its original state. The Council does not capitalise borrowing costs incurred during construction of an asset. The cost of assets acquired other than by purchase is deemed to be its fair value unless the acquisition will not increase the cash flows of the Council. In the latter case, the cost of the acquisition is the carrying amount of the asset given up by the Council. Donated assets are measured initially at fair value. The difference between fair value and any consideration paid is credited to the Taxation and Non-Specific Grant Income line of the Comprehensive Income and Expenditure Statement, unless the donation has been made conditionally. Until conditions are satisfied, the gain is held in the Donated Assets Accounts. Where gains are credited to the Comprehensive Income and Expenditure Statement, they are reversed out of the General Fund Balance to the Capital Adjustment Account in the Movement in Reserves Statement. Assets are then carried in the Balance Sheet using the following measurement bases: • Infrastructure, community assets & assets under construction – depreciated historic cost. • Surplus assets – current value as estimated at highest and best use from an open market perspective (fair value). Page 340
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Page 39 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 • All other assets – current value, determined as the amount that would be paid for the asset in its existing use (existing use value). Where there is no market-based evidence of current value because of the specialist nature of an asset, depreciated replacement cost (DRC) is used as an estimate of current value. For non-property assets that have short useful lives or low values, depreciated historical cost basis is used as a proxy for current value. 1.6.3 Revaluation Assets included in the Balance Sheet at current value are re-valued regularly to ensure their carrying amount is not materially different from the current value at the year end, as a minimum every five years. The programme of revaluation for 2023/24 and planned each of the following four years is as follows: 2022/23 All Council non-operational properties 2023/24 Schools/school houses/ social work homes/adult training centres/ community education centres/early education centres 2024/25 Halls/ Public conveniences/ libraries/ outdoor centres/ golf course/ pavilions/ sports centres/ swimming pools/ travellers site/ car parks/HRA housing stock 2025/26 Any properties not previously re-valued / general re-appraisal 2026/27 Offices / depots/ cemeteries/ crematorium lodges. In addition to assets being revalued within the programme of revaluation assets will be revalued in any given year if any of following three criteria is met: • When the historic cost of the building is less than £2m but the combined value of the building historic cost and any enhancement expenditure incurred since the last revaluation date exceeds £2m then the asset will be revalued and (if new valuations exceeds £2m) componentised if necessary. • Where the historic cost of the building exceeds £2m (and is therefore already componentised) and where any enhancement expenditure incurred since the last revaluation date exceeds 25% of the historic cost of the building then the asset will be revalued. • Where the combined value of building historic cost and any enhancement expenditure incurred since the last revaluation date spend is less than £2m but the value of the enhancement expenditure exceeds 50% of building historic cost and in value is more than £0.500m then the asset will be revalued. Valuations in 2022/23 have been carried out by an external valuer. Valuations of land and buildings are carried out in accordance with the methodologies and bases for estimation set out in the professional standards of the Royal Institution of Chartered Surveyors. Increases in valuations are matched by credits to the Revaluation Reserve to recognise unrealised gains. Exceptionally, gains might be credited to the Surplus or Deficit on the Provision of Services where they arise from the reversal of an impairment loss previously charged to a service. Where decreases in value are identified, the revaluation loss is accounted by: • where a balance of revaluation gains for the asset is held in the Revaluation Reserve – the carrying amount of the asset is written down against that balance (up to the amount of the accumulated gains); or • where no balance of revaluation gains for the asset is held in the Revaluation Reserve – the carrying amount is written down against the relevant service line(s) in the Comprehensive Income and Expenditure Statement. The Revaluation Reserve contains revaluation gains recognised since 1 April 2007, the date of its formal implementation. Gains arising before that date have been consolidated into the Capital Adjustment Account. 1.6.4 Impairment Assets are assessed at each year-end as to whether there is any indication that an asset may be impaired. Where indications exist and any possible differences are estimated to be material, the recoverable amount of the asset is estimated and, where this is less than the carrying amount of the asset, an impairment loss is recognised for the shortfall. Where impairment losses are identified, they are accounted for by: Page 341
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Page 40 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 • where a balance of revaluation gains for the asset is held in the Revaluation Reserve – the carrying amount of the asset is written down against that balance (up to the amount of the accumulated gains); or • where no balance of revaluation gains for the asset is held in the Revaluation Reserve – the carrying amount is written down against the relevant service line(s) in the Comprehensive Income and Expenditure Statement. Where an impairment loss is reversed subsequently, the reversal is credited to the relevant service line(s) in the Comprehensive Income and Expenditure Statement, up to the amount of the original loss, adjusted for depreciation that would have been charged if the loss had not been recognised. 1.6.5 Disposals When it becomes apparent that the carrying amount of an asset will be recovered principally through a sale transaction rather than through its continuing use, it is re-classed as an Non-current Assets Held for Sale. The asset is re-valued immediately before re-classification and then carried at the lower of this amount and the fair value less sale costs. Where there is a subsequent decrease to fair value less costs to sell, the loss is posted to the Other Operating Expenditure line in the Comprehensive Income and Expenditure Statement. Gains in fair value are recognised only up to the amount of any previous losses recognised in the Surplus or Deficit on the Provision of Services. Depreciation is not charged on Assets Held for Sale. Assets that are to be abandoned or scrapped are not reclassified as Non-current Assets Held for Sale. When an asset is disposed of or decommissioned, the carrying amount of the asset in the Balance Sheet (whether Property, Plant and Equipment or Assets Held for Sale) is written off to the Other Operating Expenditure line in the Comprehensive Income and Expenditure Statement as part of the gain or loss on disposal. Receipts from disposals (if any) are credited to the same line in the Comprehensive Income and Expenditure Statement also as part of the gain or loss on disposal (i.e. netted off against the carrying value of the asset at the time of disposal). Any revaluation gains accumulated for the asset in the Revaluation Reserve are transferred to the Capital Adjustment Account. Amounts received for a disposal are categorised as capital receipts. The balance of receipts is credited to either the Capital Receipts Reserve and can only be used for capital investment, set aside to reduce the Council’s underlying borrowing requirement, to fund the principal element of loan charges or to fund premium charges. Receipts are appropriated to these reserves from the General Fund balance in the Movement in Reserves Statement. The written-off value of disposals is not a charge against council tax. It is appropriated to the Capital Adjustment Account from the General Fund balance in the Movement in Reserves Statement. 1.6.6 Depreciation Depreciation is provided on all property, plant and equipment over their useful economic lives, with an exception made for assets without a determinable finite useful life (i.e. non depreciating land and certain community assets) and assets that are not yet available for use (i.e. assets under construction). The useful lives of assets and depreciation method are as follows: Council Dwellings 10 – 80 years Straight line Other buildings 15 – 80 years Straight line Open spaces 10 – 120 years Straight line Infrastructure 15 – 120 years Straight line Vehicles, plant, equipment 5 – 20 years Straight line Intangibles 5 – 10 years Straight line Other 10 – 120 years Straight line * Including components such as structure, mechanical and electrical, etc. Where an item of property, plant and equipment assets has major components whose cost is significant in relation to the total cost of the item, the components are depreciated separately. Revaluation gains are also depreciated, with an amount equal to the difference between current depreciation charged on assets and the depreciation that would be chargeable based upon historic cost being transferred each year from the Revaluation Reserve to the Capital Adjustment Account. Page 342
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Page 41 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 1.6.7 Infrastructure Assets The CIPFA/LASAAC Code of Practice for Local Authority Accounting in the United Kingdom requires infrastructure assets to be measured using the historical cost measurement basis and carried at depreciated historical cost. Due to information deficits it is unclear as to whether when an assets component is replaced that the old component has been derecognised to avoid double counting. However, as parts of these assets are rarely replaced before the part has been fully consumed and should therefore be fully depreciated at the date of replacement, the carrying amount to be derecognised in respect of a replaced part of an infrastructure assets is a nil amount. The Scottish Government in recognising the challenge facing Council’s has agreed to permit temporary statutory overrides whilst a permanent solution is developed within the Code. As outlined in the Local Government Finance Circular 09/2022 the Council has adopted statutory overrides for the period 1 April 2021 to 31 March 2024 which permits the council not to report gross cost and accumulated depreciation for Infrastructure assets. 1.7 Non-Current Assets Held for Sale These assets are measured at fair value, based on the amount at which the asset could be exchanged between knowledgeable parties at arm’s length, less costs to sell at the initial classification and at the end of each reporting date. Revaluation gains shall be recognised for any initial or subsequent increase in fair value less costs to sell but not in excess of the cumulative impairment loss or revaluation loss that have been recognised in the Surplus of Deficit on the Provision of Services. Impairment losses (or revaluation losses) will be recognised for any subsequent decrease to fair value less costs to sell following reclassification in the Surplus or Deficit on the Provision of Service even where there is a balance on the assets Revaluation Reserve. 1.8 Heritage Assets Heritage Assets are recognised and measured (including the treatment of revaluation gains and losses) in accordance with the Council’s accounting policies on property, plant and equipment. However, some of the measurement rules are relaxed in relation to heritage assets as detailed below. Type of Asset Valuation Method for Balance Sheet Purposes Ship models/ Silver and Commemorative wear The last formal valuations were by Bonhams, Sotheby’s and Phillips. Further formal valuations will be commissioned where it is considered that there could potentially be a material change in value and where the value of the asset is estimated to be in excess of £10,000. Works of art The last formal valuations were by Bonhams, Sotheby’s and Phillips. Where a lower and upper valuation has been provided the mid valuation has been used. Further formal valuations will be commissioned where it is considered that there could potentially be a material change in the value of the assets held. Civic Regalia The robes are not recognised on the balance sheet as they are considered to have no significant value. However the chains are reported in the balance sheet at insurance value. Sewing Machine Collection These collections are not recognised on the balance sheet as cost information is not readily available. Nearly all the items are believed to have an immaterial value. Listed Buildings and Scheduled Ancient Monuments These assets are not recognised on the balance sheet as it is considered that there is a lack of available, comparable market values to establish a ‘fair value’. It is unlikely that the Council would procure such assets but is more likely to refurbish or enhance existing structures. In this respect, the cost of those works will be capitalised at cost. Purchased assets are initially recognised at cost and donations are recognised at valuation where that value is estimated to be greater than the threshold of £10,000 as specified above. The carrying amounts are reviewed where there is evidence of impairment e.g. where an item has suffered physical deterioration or breakage or where doubts arise as to its authenticity. Any impairment is recognised and measured in accordance with the Council’s general policies on impairment. Page 343
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Page 42 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 No depreciation shall be chargeable on any heritage asset, in view of the indeterminate life and residual value. The proceeds from any disposal of heritage assets are accounted for in accordance with the council’s general provisions relating to the disposal of property, plant and equipment. 1.9 Employee Benefits 1.9.1 Benefits payable during employment Short term employee benefits (i.e. fall due within 12 months of the year-end), such as wages and salaries, paid leave, paid sick leave, bonuses and non-monetary benefits for current employees are recognised as an expense in the year in which the employees render service to the Council. An accrual is made against the services in the Surplus or Deficit on the Provision of Service for the costs of holiday entitlement and other forms of leave earned by the employee but not taken before the year end and which employees can carry forward into the next financial year. Any accrual made is required under statute to be reversed out of the General Fund balance by a credit to the Statutory Mitigation Account in the Movement in Reserves Statement. 1.9.2 Termination Benefits Termination benefits are amounts payable as a result of a decision made by the Council to terminate an officer’s employment before the normal retirement date or an officer’s decision to accept a voluntary termination package in exchange for those benefits. Termination benefits do not provide the Council with future economic benefits and consequently they are recognised on an accrual basis immediately in the Surplus or Deficit on the Provision of Services line in the Comprehensive Income and Expenditure Account when the Council is demonstrably committed to provision of the termination benefits. Where termination benefits involve the enhancement of pensions, they are treated as pension costs for the purpose of the statutory transfer between the Pension Reserve and the General Fund of the amount by which the pension costs calculated in accordance with the Code are different from the contributions due under the pension scheme regulations. In the Movement in Reserves Statement appropriations are required to and from the Pension Reserve to remove notional debits and credits for termination benefits related to pensions enhancements and replace them with the cost of the cash paid, including any amounts due and not paid at the year end. 1.9.3 Post Employment Benefits Employees of the Council are members of two separate defined pension schemes: • the Teachers’ Pension Scheme, administered by the Scottish Pensions Agency • the Local Government Pensions Scheme, administered by Glasgow City Council. Both schemes provide defined benefits to members (retirement lump sums and pensions), earned as employees working for the Council. However, the arrangements for the teachers’ scheme mean that liabilities for these benefits cannot ordinarily be identified specifically to the Council. The scheme is therefore accounted for as if it were a defined contribution scheme and no liability for future payments of benefits is recognised in the Balance Sheet. In relation to retirement benefits, statutory provisions require the General Fund to be charged with the amount payable by the Council to the pension fund or directly to pensioners in the year, not the amount calculated in accordance to the relevant accounting standards. In the Movement in Reserves Statement this means that there are appropriations to and from the Pension Reserve to remove any notional debits and credits for retirement benefits and replace them with the cash paid or payable at the year end, to the pension fund and pensioners. The negative balance that arises on the Pension Reserve measures the beneficial impact on the General Fund of being required to account for retirement benefits on the basis of cash flows rather than as benefits earned by employees. The Local Government Pension Scheme The Local Government Scheme is accounted for as a defined benefits scheme: • The liabilities of the Strathclyde Pension Fund attributable to the Council are included in the Balance Sheet on an actuarial basis using the projected unit method - i.e. an assessment of the future payments that will be made in relation to retirement benefits earned to date by employees, based on assumptions about mortality rates, employee turnover rates, etc. and projections of projected earnings for current employees. Page 344
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Page 43 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 • Liabilities are discounted to their value at current prices, using a discount rate of 4.75% (based on the indicative rate of return on high quality corporate bonds). • The assets of Strathclyde Pension Fund attributable to the Council are included in the Balance Sheet at their fair value: o quoted securities - current bid price o unquoted securities - professional estimate o unitised securities - current bid price o property - market value The change in the net pension liability is analysed into the following components: Service cost comprising: • Current service cost - the increase in liabilities as a result of years of service earned this year - allocated in the Comprehensive Income and Expenditure Statement to the services for which the employees worked. • Past service cost - the increase in liabilities as a result of a scheme amendment or curtailment whose effect relates to years of service earned in earlier years - debited to the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement as part of Non-Distributable Costs. • Gains/losses on settlements - the decrease in liabilities as a result of the Council entering into a transaction that eliminates all further legal or constructive obligation relating to the event, notwithstanding the financial guarantee (see Note 5) - credited to the Surplus on the Provision of Services in the Comprehensive Income & Expenditure Statement as part of Non Distributable Costs. • Net interest on the net defined benefit liability, i.e. net interest expenses for the council. The change during the period is the net defined benefit liability that arises from the passage of time charged to the Financing and Investment Income and Expenditure line of the Comprehensive Income and Expenditure Statement – this is calculated by applying the discount rate used to measure the defined benefit obligation at the beginning of the period to the net defined liability at the beginning of the period – taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. Remeasurements comprising: • The return on plan assets - excluding amounts included in net interest on the net defined benefit liability – charged to the Pension Reserve as Other Comprehensive Income and Expenditure • Actuarial gains and losses – changes in the net pensions liability that arise because events have not coincided with assumptions made at the last actuarial valuation or because the actuaries have updated their assumptions – charged to the Pensions Reserve as Other Comprehensive Income and Expenditure • Contributions paid to the Strathclyde Pension Fund – cash paid as employer’s contributions to the pension fund settlement of liabilities; not accounted for as an expense. In relation to retirement benefits, statutory provisions require the General Fund Balance to be charged with the amount payable by the Council to the pension fund or directly to pensioners in the year, not the amount calculated according to the relevant accounting standards. In the Movement in Reserves Statement, this means that there are transfers to and from the Pensions Reserve to remove the notional debits and credits for retirement benefits and replace them with debits for the cash paid to the pension fund and pensioners and any such amounts payable but unpaid at the year-end. A negative balance that may arise on the Pensions Reserve thereby measures the beneficial impact to the General Fund of being required to account for retirement benefits on the basis of cash flows rather than as benefits are earned by employees. 1.9.4 Pension Net-Asset Recognition Where the Council’s share of the Local Government Pension Scheme is an overall asset position, reflecting that its share of the Funds’ assets exceeds the present value of its liabilities to members, this is accounted for in line with the requirements of IAS 19 and IFRIC 14. Specifically, the asset recognised by the Council is limited to the extent to which the Council can recover the benefit of the asset through refunds or reduced contributions. This is referred to as an “asset ceiling”. More information is provided in note 22 to the accounts 1.9.5 Discretionary Benefits The Council has restricted powers to make discretionary awards of retirement benefits in the event of early retirements. Any liabilities estimated to arise as a result of an award to any member of staff (including teachers) arising from the use of these discretionary powers are accrued in the year of the decision to make the award and accounted for using the same policies as are applied to the local government pension scheme. Page 345
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Page 44 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 1.10 Events after the Reporting Period Events after the reporting period are those events (both favourable and unfavourable) that occur between the end of the reporting period and the date when the Financial Statements are authorised for issue. Two types have been identified: • those that provide evidence of conditions that existed at the end of the reporting period – the Financial Statements are adjusted to reflect this. • those that are indicative of conditions that arose after the reporting period – the Financial Statements are not adjusted to reflect this. However, if the event is material, a disclosure is made within the notes of the nature and financial effect. 1.11 Exceptional Items When items of income and expenditure are material, their nature and amount is disclosed separately, either within the Comprehensive Income and Expenditure Statement or in the notes to the accounts, depending on how significant the items are to the understanding of the Council’s financial performance. 1.12 Financial Liabilities Financial liabilities are recognised on the Balance Sheet when the Council becomes party to the contractual provisions of a financial instrument and initially measured at fair value and carried at their amortised cost. Annual charges to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement for interest payable are based upon the carrying amount of the liability, multiplied by the effective rate of interest for the instrument. The effective interest rate is the rate that exactly discounts estimated future cash payments over the life of the instrument to the amount at which it was originally recognised. For most of the borrowing that the Council has this means that the amount presented in the Balance Sheet is the outstanding principal repayable (plus accrued interest). Interest charged to the Comprehensive Income and Expenditure Statement is the amount payable for the year according to the loan agreement. 1.13 Financial Assets Financial assets are classified using a classification and measurement approach that reflects the business model for holding the financial assets and their cash flow characteristics. There are three mail classes of financial assets measured at: • amortised cost • fair value through other comprehensive income • fair value through profit or loss The Council’s business model is to hold investments to collect contractual cash flows. Financial assets are all therefore classified as amortised cost. In previous years these assets, although still recorded as amortised costs, were classed as loans and receivables. Financial Assets Measured at Amortised Cost Financial assets measured at amortised cost are recognised on the Balance Sheet when the authority becomes party to the contractual provisions of a financial instrument and are initially measured at fair value. They are subsequently measured at their amortised cost. Annual credits to the Financing and (Investment) Income and Expenditure line in the CIES for interest receivable are based on the carrying amount of the asset multiplied by the effective rate of interest for the instrument. For all financial assets held by the Council, this means that the amount presented in the Balance Sheet is the outstanding principal receivable (plus accrued interest) and interest credited to the CIES is the amount receivable for the year in the loan agreement. Expected Credit Loss Model The Council recognises expected credit losses on its financial assets held at amortised cost, either on a 12-month or lifetime basis. The expected credit loss model also applies to leaser receivables and contract assets. Only lifetime losses are recognised for trade receivables (debtors) held by the council. Page 346
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Page 45 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Financial Assets measured at Fair Value through profit or Loss Financial assets that are measured at fair value through profit or loss are recognised on the Balance Sheet when the Council becomes a party to the contractual provisions of a financial instrument and are initially measured and carried at fair value. Fair value gains and losses are recognised as they arrive in the Surplus or Deficit on the Provision of Services. The fair value measurements of the financial assets are based on the following techniques: • Instruments with quoted market prices – the market price • Other instruments with fixed and determinable payments – discounted cash flow analysis Inputs to the measurement techniques are categorised in accordance with the following three levels: • Level 1 inputs– quoted prices (unadjusted) in active markets for identical assets or liabilities that the authority can access at the measurement date. • Level 2 inputs – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs – unobservable inputs for the asset or liability. Any gains and losses that arise on the derecognition of the asset are credited or debited to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement. 1.14 Government Grants and Contributions Government grants and other contributions are recognised as due by the Council when there is reasonable assurance that: • the Council will comply with the conditions attached to the payments • the grants or contributions will be received. Amounts recognised as due to the Council are not credited to the Comprehensive Income and Expenditure Account until conditions attached to the grant or contribution have been satisfied. Conditions are stipulations that specify that the future economic benefits or service potential embodied in the asset acquired using the grant or contribution are required to be consumed by the recipient as specified for future economic benefit or service potential must be returned to the transferor. Monies advanced as grants and contributions for which conditions have not been satisfied are carried in the Balance Sheet as creditors. When conditions are satisfied, the grant or contribution is credited to the relevant service line (attributable revenue grants/contributions) or Taxation and Non-Specific Grant Income (non-ringfenced revenue grants and all capital grants) in the Comprehensive Income and Expenditure Statement. Where capital grants are credited to the Comprehensive Income and Expenditure Statement, they are reversed out of the General Fund balance in the Movement in Reserves Statement. Where the grant has not yet been used to finance capital expenditure, it is posted to the Capital Grants Unapplied Account. Where it has been applied, it is posted to the Capital Adjustment Account. Amounts in the Capital Grants Unapplied Account are transferred to the Capital Adjustment Account once they have been applied. 1.15 Inventories Inventories are held by a number of Council services, such as asset maintenance services, roads, services, school technician services, hospitality services, etc., and include consumable stock and work in progress, where appropriate. Consumable stock is included in the Balance Sheet on a cost price basis, with inventory quantities based on physical stock at the end of the year. 1.16 Leases Leases are classified as finance leases where the terms transfer substantially all the risks and rewards incidental to ownership from the lessor to the lessee. All other leases are classified as operational. Where the lease covers both land and buildings, the elements are considered separately for classification. Page 347
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Page 46 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 1.16.1 Council as Lessee Finance Leases Assets held under finance lease are recognised in the Balance Sheet at the start of the lease at its fair value at the lease’s inception, or, if lower the present value of the minimum lease payments. The asset recognised is matched by a liability for the obligation to pay. Initial direct costs are added to the carrying amount of the asset. Premiums paid on entry into a lease are applied to writing down the lease liability. Contingent rents are charged to revenue in the years they incur. Lease payments are apportioned between: • a charge for the acquisition of the interest in the asset – applied to write down the lease liability • a finance charge (debited to the Financing and Investment income and Expenditure line in Comprehensive Income and Expenditure Statement). Assets recognised under the finance lease are accounted for using the policies applied generally to council owned assets, subject to depreciation being charged over the lease term if this is shorter than the asset’s estimated useful life. Operating Leases Rentals paid under operating leases are charged to the Comprehensive Income and Expenditure Statement as an expense. Charges are made on a straight line basis over the life of the lease, even if it does not match the pattern of payment. 1.16.2 Council as Lessor Finance Leases When the Council grants a finance lease over an asset, the asset is written out of the Balance Sheet as a disposal. At the start of the lease the carrying amount of the asset is written off to the Other Operating Expenditure line in the Comprehensive Income and Expenditure Statement as part of the gain/loss on disposal. A gain, representing the Council’s net investment in the lease is credited to the same line in the Comprehensive Income and Expenditure Statement, matched by a lease asset in the Balance Sheet. Lease rentals receivable are apportioned between: • a receipt for the acquisition of the interest in the asset – applied to write down the lease asset (together with any premiums received) • finance income (credited to the Financing and Investment income and Expenditure line in Comprehensive Income and Expenditure Statement). The gain credited to the Comprehensive Income and Expenditure Statement on disposal is not permitted by statute to increase the General Fund balance and will be required to be treated as a capital receipt. Where a premium has been received, this is posted out of the General Fund Balance to the Capital Receipts Reserve in the Movement in Reserves Statement. Where the amounts due in relation to the lease asset is to be settled by the payment of rentals in future financial years, this is posted out of the General Fund Balance to the Deferred Capital Receipts Reserve in the Movement in Reserves Statement. When the future rentals are paid, the element of the charge for the acquisition of the interest in the asset is used to write down the lease asset. At this point, the deferred capital receipts are transferred to the Capital Receipts Reserve. The written off value of the disposals is not a charge against council tax, as the cost of non-current assets is fully provided for under separate arrangements for capital financing. Amounts are appropriated to the Capital Adjustment Account from the General Fund balance in the Movement in Reserves Statement. Operating Leases Where the council grants an operating lease over an asset, the asset is retained in the Balance Sheet. Rental income is credited to the Other Operating Expenditure line in the Comprehensive Income and Expenditure Statement. Credits are made on a straight line basis over the life of the lease, even if it doesn’t match the pattern of payment. 1.17 Overhead and Support Services The costs of overheads and support services are charged to non General Fund services that benefit from the supply in accordance with the costing principles of the CIPFA Service Reporting Code of Practice 2022/23. The total absorption costing principle is used – the full cost of overheads and support services are shared between those users in proportion to the benefits received. General Fund Services have not been charged for these support service costs, in line with the Council’s budgetary reporting structure. Page 348
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Page 47 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 1.18.1 Public Private Partnership (PPP) and Similar Contracts PPP and similar contracts are agreements to receive services, where the responsibility for making available the property, plant and equipment needed to provide the services passes to the private contractor. As the Council is deemed to control the services that are provided under the PPP scheme and as ownership of the property, plant and equipment will pass to the council at the end of the contract for no additional charge, the Council carries the asset on its Balance Sheet. 1.18.2 Service Concession Arrangement Flexibility Application The Scottish Government’s 2022 Resource Spending Review contained details of a Service Concession Arrangement (SCA) flexibility that related to the Council’s PPP schools. The flexibility permits councils to undertake internal accounting changes that extend the period over which the principal repayment of the unitary charge can be made which results in a one-off credit to the General Fund and ongoing annual savings for a period of time. In the remaining years following the end of the SCAs, the rescheduled debt repayments continue until the debt liability has been extinguished. The Statutory Regulation in relation to this matter, Local Government Finance Circular 10/2022 (FC 10/2022), was published in September 2022. FC 10/2022 replaces the 2010 version that covered this area and permits the authority to apply a temporary flexibility for service concession arrangements entered prior to April 2022. The Circular sets out the accounting requirements and the options permitted for the recognition of repayments of the principal element of the lease component or the lease liability for the year and the temporary flexibility for SCAs entered prior to 1 April 2022. The Council has applied the permitted change in the calculation of the statutory charge in 2022/23 and the adopted approach has been applied across all two such arrangements held by the Council in line with the key accounting principle of consistency. The annual unitary charge will continue to be paid to the contractor over the contract period. The guidance applies to principal and not to interest, service charge costs or grant. These will continue to be accounted for over the contract period. Annuity method for revised repayment of debt liability The recalculation of the debt liability charges applies the annuity method to calculate the revised repayments. This method best represents the consumption of the assets over their useful lives. This methodology is applied within the Councils current Loans Fund repayment policy. The use of an annuity method for the writing down of the PPP debt liability therefore ensures a consistent approach for the writing down of all debt which is financing capital expenditure, in that; • The annuity method provides a fairer charge than equal instalments as it takes account of the time value of money, whereby paying £100 in 10 years’ time is less of a burden than paying £100 now. • The schedule of charges produced by the annuity method thus results in a consistent charge over an asset’s life, considering the real value of the amounts when they fall due. • The annuity method is a prudent basis for providing for assets that provided a steady flow of benefits over their useful life.’ Useful Economic Life The most appropriate asset life for the calculation is considered to be 60 years which replicates the useful asset life of other similar type assets held on the Council’s balance sheet i.e. schools. The Council’s Loans Fund methodology use a Useful Economic Life (UEL) of 60 years when calculating the repayment of debt liability for borrowing to support capital expenditure for similar types of assets. The proposed application a UEL of 60 years for the two SCAs arrangements is therefore considered consistent with current council methodology. Capital Financing Requirement The reprofiling of the debt liability repayments over the life of the asset rather than the life of the contract increases the Capital Financing Requirement (CFR) as at 1 April 2022. The increase in the CFR will continue to be reduced by the revised repayments after each SCA contract has expired until the end of the revised period. Page 349
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Page 48 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Accounting Treatment The statutory adjustment can be made as at 1 April in the year the revised repayments are applied. This option was exercised in 2022/23 and has been applied retrospectively. Being a cumulative statutory adjustment there is no prior year restatement of statutory adjustments in the Annual Accounts. The statutory adjustment results in a debit to the Capital Adjustment account with a corresponding credit in the Movement in Reserves Statement within the General Fund. Until the end of the contract period for each of the five SCAs. Thereafter the revised charges will result in higher cost being charged to the General fund that the current repayment profile until the end of the UEL. 1.20 Provisions Provisions are made where an event has taken place that gives the Council a legal obligation or constructive obligation that probably requires settlement by a transfer of economic benefits or service potential and a reliable estimate can be made of the amount of that obligation. Provisions are charged as an expense to the appropriate service line in the Comprehensive Income and Expenditure Statement in the year the Council becomes aware of the obligation and measured at the best estimate at the Balance Sheet date, taking account of relevant risks and uncertainties. When payments are made they are charged to the provision carried in the Balance Sheet. Estimated settlements are reviewed at the end of each financial year. Where it becomes less probable that a transfer of economic benefits is required; the provision is reversed and credited back to the relevant service. 1.21 Interest in Companies and Other Entities The council has material interests in companies and other entities that have the nature of associates/ subsidiaries and require it to prepare group accounts. In the Council’s own single entity accounts, the interests of two companies are recorded as an investment in the Balance Sheet, as the council has shares and full ownership of the Clydebank Property Company (purchased during 2014/15) and has an investment with Hub West Scotland (invested 2015/16). No other interests are recorded in the council’s single entity accounts of any of other organisation. 1.22 VAT VAT payable is included as an expense only to the extent that it is not recoverable from HM Revenue and Customs. VAT receivable is excluded from income. 1.23 Loans Advances Repayment In accordance with The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016, the Council has recalculated the repayments of the loans fund advances to reflect the life of the specific assets associated with the debt, using an annuity of 9%. Note 2 – Critical Judgement in Applying Accounting Policies The preparation of the consolidated financial statements requires management to make some judgements and assumptions when applying the accounting policies that have the most significant effect on carrying amounts in the financial statements. These judgements are usually about complex transaction or involve uncertainty about future events. Where a critical judgement has been made, this is referred to in the relevant note to the core financial statements; however a summary of those with the most significant effect are detailed below: Public Private Partnership (PPP) and Design-Build-Finance-Maintain (DBFM) - The Council has entered into a PPP contract for the provision of three secondary schools and one primary school. The Council has also entered into a DBFM contract for one secondary school. The contracts include the build of the schools as well as their maintenance and provision of related facilities over the period of each contract. After consideration of International Financial Reporting Interpretations Committee IFRIC12 (Service Concession Arrangements), it has been concluded that these are service concession arrangements and the Council controls the services provided under the scheme and ownership of the schools will pass to the Council at the end of the contracts for no additional charge. The assets used to provide services at the schools are recognised on the Council’s Balance Sheet as operational assets and as a finance lease liability. The value of these assets (£98.765m) is included within the Property, Plant and Equipment (note 14) and the liability within note 15 - Private Finance Initiatives and similar Contracts (£89.116m). Page 350
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Page 49 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Council Acting as Principal or Agent - When the Council receives funding it requires to consider the degree of control it has over how this funding is to be utilised. If the Council has no discretion over the utilisation of the funds it deems that it is acting as an agent and this funding is reported in the Agency Services note and not reflected in the Council’s income and expenditure, but with any amounts owed to/ from the Council held within its Balance Sheet. Provision or Contingent Liability - Where the Council faces a future liability and this can be quantified with a reasonable degree of certainty, a provision for that liability is made. If the liability cannot be quantified, it will be disclosed as a Contingent Liability (Note 28). Most of these involve ongoing or prospective legal action meaning the outcome and potential amounts involved cannot be determined with any level of accuracy. Note 3 – Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty The Financial Statements contain estimated figures that are based on assumptions about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The items in the Council’s balance sheet as at 31 March 2023, for which there is a significant risk of material adjustment in the forthcoming financial year are noted below: Item Uncertainties Effect if Actual results Differ from Assumptions Property Plant and Equipment – valuation The Council’s assets are valued on a rolling programme over a maximum of 5 years. The valuation assumptions are ascertained by the professional valuers used by the Council. If the actual results differ from the assumptions, the value of the assets could be affected. The value of the assets subject to revaluation over the rolling programme is £898.688m. During 2022/23 the assets that were revalued are now held in the Balance Sheet to a total value of £202.356m. The impact for each 1% change in these valuations would be £0.256m within the Balance Sheet, resulting in an increase or a decrease to the Revaluation Reserve, or an impairment charge, but with no effect on the General Fund or the HRA reserves. Any change would also impact on annual depreciation charges in future years. Property Plant and Equipment – depreciation / useful lives Assets are depreciated over useful lives that are dependent on assumptions about the level of repairs and maintenance that will incur in relation to those assets. The current economic climate makes it uncertain that the Council will be able to sustain its current level of spending on maintenance, bringing into doubt the useful lives assigned to assets. If the useful life of an asset is reduced, depreciation increases and the carrying amount of the asset falls. For example, it is estimated that for a building valued at £20 million with a useful economic life of 60 years, the annual depreciation charge would increase by £5,650 if the useful economic life had to be reduced by one year. Pension Liability/Asset Estimation of the net asset/liability to pay pensions depends on a number of complex judgements relating to the discount rates used, the rate at which salaries are projected to increase by, changes to retirement ages, mortality rates and expected returns on pension assets held. This is further detailed within Note 22 to the Financial Statements. A firm of consulting actuaries is engaged to provide the Council with expert advice about the assumptions applied. The effect on the net asset/liability can be measured. For example, a decrease in the discount rate of 0.1% would decrease the pension asset held on the Balance sheet by 2% or £14.033m; and increase in the pension rate by 0.1% would decrease the pension asset held on the Balance sheet by 1% or £12.290m. The interaction of assumptions is extremely complex. See note 22 for further assumptions. Page 351
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Page 50 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 4 Accounting Standards that have been issued but have not yet been adopted For 2022/23, the Code requires the disclosure of information relating to the expected impact of an accounting change that will be required by a new standard that has been issued but not yet adopted. This applies to the adoption of the following new or amended standards: • Definition of Accounting Estimates (Amendments to IAS 8) issued in February 2021.; • Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) issued in February 2021. • Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) issued in May 2021. • Updating a Reference to the Conceptual Framework (Amendments to IFRS 3) issued in May 2020. Overall, these new or amended standards are not expected to have a significant impact on the Annual Accounts in future years. IFRS16 Leases will require local authorities that are lessees to recognise these leases on their Balance sheet as right- of-use assets along with the corresponding liabilities, except for low value and short term leases. CIPFA/LASACC have deferred implementation of this until 1 April 2024. Page 352
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Page 51 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 5 Expenditure and Funding Analysis The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (Government Grants, Council Tax and Non-Domestic Rates) by local authorities in comparison with those resources consumed or earned by authorities in accordance with generally accepted accounting practices. It also shows how expenditure is allocated for decision making purposes between the Council’s services. Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income & Expenditure Statement. Expenditure and Funding Analysis 2022-23 Expenditure chargeable to the General Fund and HRA Balance Adjustments between Funding and Accounting Basis Net Expenditure in the Comprehensive Income and Expenditure Statement £'000 £'000 £'000 Corporate Services 21,674 7,445 29,119 Education 101,312 10,465 111,777 Infrastructure, Regeneration and Economic Development 34,252 18,790 53,042 Housing and Communities 2,209 3,806 6,015 Housing Revenue Account (17,018) 14,274 (2,744) Miscellaneous Services 4,013 (2,336) 1,677 Health and Social Care Partnership 82,657 9,465 92,122 Requisitions 2,215 0 2,215 Net Cost of Service 231,314 61,909 293,223 (Gain)/Loss on disposal of non-current assets 0 (365) (365) Taxation and Non-specific Grant Income (Note 9) (250,400) (17,263) (267,663) Financing and Investment (Income) and Expenditure (Note 8) 35,297 (11,221) 24,076 (Surplus) or Deficit on the Provision of Services 16,211 33,060 49,271 Opening General Fund and HRA Balance at 1 April 2023 (47,488) Surplus/(Deficit) on HRA in the year 16,381 Surplus/(Deficit) on General Fund in the year (170) transfer (to)/from other Statutory Reserves (1,666) Closing General Fund and HRA balance at 31 March 2023 (32,943) Adjustments between General Fund and Comprehensive Income and Expenditure Statement 2022-23 Adjustment for Capital Purposes Net change to Pension Adjustment Other differences Total Adjustments £'000 £'000 £'000 £'000 Corporate Services 3,474 3,971 0 7,445 Education 5,045 5,132 288 10,465 Infrastructure, Regeneration and Economic Development 13,692 5,098 0 18,790 Housing and Communities 13 3,793 0 3,806 Housing Revenue Account 13,170 1,104 0 14,274 Miscellaneous Services 0 (2,321) (15) (2,336) Health and Social Care Partnership 1,245 8,220 0 9,465 Net Cost of Services 36,639 24,997 273 61,909 Other operating expenditure (365) 0 0 (365) Financing and Investment (Income) and Expenditure (17,263) 0 0 (17,263) Taxation and Non-specific Grant Income (12,184) 1,839 (876) (11,221) Difference between General Fund and HRA (Surplus)/Deficit and Comprehensive Income & Expenditure Statemet (Surplus)/Deficit on the Provision of Service 6,827 26,836 (603) 33,060 Page 353
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Page 52 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Expenditure and Funding Analysis 2021-22 2021/22 Expenditure chargeable to the General Fund and HRA Balance Adjustments between Funding and Accounting Basis Net Expenditure in the Comprehensive Income and Expenditure Statement £'000 £'000 £'000 Corporate Services 25,095 7,756 32,851 Education 96,629 20,258 116,887 Infrastructure, Regeneration and Economic Development 33,659 19,189 52,848 Housing and Communities 3,660 4,118 7,778 Housing Revenue Account (20,106) 34,590 14,484 Miscellaneous Services 690 (2,170) (1,480) Health and Social Care Partnership 74,017 10,485 84,502 Requisitions 2,517 0 2,517 Net Cost of Service 216,161 94,226 310,387 (Gain)/Loss on disposal of non-current assets 0 998 998 Taxation and Non-specific Grant Income (Note 8) (250,891) (7,746) (258,637) Financing and Investment (Income) and Expenditure (Note 7) 41,451 (19,009) 22,442 (Surplus) or Deficit on the Provision of Services 6,721 68,469 75,190 Opening General Fund and HRA Balance as at 1 April (22,392) (Surplus) or Deficit on Provision of Service (General Fund) 2,396 (Surplus) or Deficit on Provision of Service (HRA) 4,325 Transfer to/from other statutory reserves (2,083) Closing General Fund balance at 31 March 2022 (17,754) Adjustments between General Fund and Comprehensive Income and Expenditure Statement 2021-22 Adjustment for Capital Purposes Net change to Pension Adjustment Other differences Total Adjustments £'000 £'000 £'000 £'000 Corporate Services 3,204 4,552 0 7,756 Education 14,477 5,738 43 20,258 Infrastructure, Regeneration and Economic Development 13,414 5,775 0 19,189 Housing and Communities 13 4,105 0 4,118 Housing Revenue Account 33,456 1,169 (35) 34,590 Miscellaneous Services 312 (2,187) (295) (2,170) Health and Social Care Partnership 1,078 9,407 0 10,485 Net Cost of Services 65,954 28,559 (287) 94,226 Other operating expenditure 998 0 0 998 Financing and Investment (Income) and Expenditure (7,746) 0 0 (7,746) Taxation and Non-specific Grant Income (22,551) 3,557 (15) (19,009) Differnece between general Fund (Surplus)/Deficit and Comprehensive Income & Expenditure Statemet (Surplus)/Deficit on the Provision of Service 36,655 32,116 (302) 68,469 Adjustments for Capital Purposes This column adds in depreciation, impairment and revaluation gains and losses in the services line, and for: • Other operating expenditure – adjusts for capital disposals with a transfer of income on disposal of assets and the amounts written off for those assets. • Financing and investment income and expenditure – the statutory charges for capital financing and other revenue contributions are deducted from other income and expenditure as these are not chargeable under generally accepted accounting practices. • Taxation and non-specific grant income and expenditure – capital grants are adjusted for income not chargeable under generally accepted accounting practices. Revenue grants are adjusted from those receivable in the year to those receivable without conditions or for which conditions were satisfied throughout the year. The Taxation and Non-Specific Grant Income and Expenditure line is created with capital grants receivable in the year without conditions or for which conditions were satisfied in the year. Page 354
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Page 53 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Net Change for the Pension Adjustments Net change for the removal of pension contributions and the addition of IAS19 Employee Benefits pension related expenditure and income: • For services, this represents the removal of the employers contributions made by the Council as allowed by statute and the replacement with current service costs and past service costs. • For financing and investment income and expenditure, the net interest on the defined benefit liability is charged to the Comprehensive Income and Expenditure Statement. Other Differences Other differences between amounts debited or credited to the Comprehensive Income and Expenditure Statement and amounts payable or receivable to be recognised under statute: • For services an adjustment is made for the accrual of holiday pay and other similar entitlements, this is required under generally accepted accounting principles but the impact on the General Fund and the HRA is mitigated by statute which allows the impact to be reversed out through the Movement in Reserves. • For Financing and investment income and expenditure, the ‘other differences’ column recognises adjustments to the General Fund for the timing differences for premiums and discounts. Expenditure and Income Analysed by Nature Where items are not disclosed on the face of the Comprehensive Income and Expenditure Statement (CIES). The code requires a disclosure of the nature and amount of material items. An analysis of material items of income and expenditure by nature is shown below: 2021-22 2022-23 £'000 £'000 Expenditure 232,907 Employee Benefits Expenses 245,142 266,430 Other Service Expenses 291,972 3,962 Support Services recharge 4,853 65,954 Depreciation, Amortisation, Impairment 35,415 21,422 Interest payments 21,218 2,517 Precepts and levies 2,215 998 (Gain) or Loss on Disposal of Assets (365) 594,190 Total Expenditure 600,450 Income (260,282) Fees, charges and Other Service Income (283,172) (119,615) Income from Council tax and Non-domestic rates (147,053) (81) Interest and Investment Income (344) (139,022) Government grants and Contributions (120,610) (519,000) Total Income (551,179) 75,190 (Surplus)/Deficit on the Provision of Service 49,271 Page 355
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Page 54 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 6 Adjustments between Accounting Basis and Funding Basis under Regulations This note provides further breakdown of the adjustments summarised in the Movement in Reserves Statement on page 35. It is identified under the headings Usable and Unusable Reserves. Further detail of the reserves identified under the classification of usable and unusable is given in note 24 on pages 80-82. 2022-23 General Fund Balance HRA Balance Capital Grants and Receipts Unapplied Account Capital Fund Total Usable Reserves Capital Adjustment Account Revaluation Reserve Pension Reserve Employee Statutory Adjustment Account FIAA Total Unusable Reserves £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Adjustments to the Revenue Resources 0 Pension Costs (transferred to (or from) the Pensions Reserve) (25,731) (1,104) (26,835) 26,835 26,835 Financial Instruments (transferred to the Financial Instruments Adjustment Account) 948 (72) 876 (876) (876) Holiday Pay (transferred to the Accumulated Absences Reserve) (273) 0 (273) 273 273 Reversal of entries included in the Surplus or Deficit on the Provision or Services in relation to capital expenditure (these items are charges to the Capital Adjustment Account) (10,699) (8,677) (19,376) 17,033 2,343 19,376 Adjustments between Capital and Revenue Resources 0 Transfer of non-current asset sale gain/loss from revenue to the Capital Receipts Reserve 365 0 (365) 0 0 Statutory provision for the repayment of debt (transfer to the Capital Adjustment Account) 2,988 6,510 9,498 (9,498) (9,498) Capital expenditure financed from revenue balances (transfer to the Capital Adjustment Account) (226) 2,911 2,685 (2,685) (2,685) Adjustments to the Capital Resources 0 0 Disposal of non-current asset sale proceeds (337) (337) 337 337 Transfer from the Capital Receipts Reserve to the Capital Fund/ Capital Grants and Receipts Unapplied Account 702 (702) 0 (32,628) (432) 0 (702) (33,762) 5,187 2,343 26,835 273 (876) 33,762 Page 356
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Page 55 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Comparative Information 2021-22 2021-22 General Fund Balance HRA Balance Capital Grants and Receipts Unapplied Account Capital Fund Total Usable Reserves Capital Adjustment Account Revaluation Reserve Pension Reserve Employee Statutory Adjustme nt Account FIAA Total Unusable Reserves £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Adjustments to the Revenue Resources 0 Pension Costs (transferred to (or from) the Pensions Reserve) (30,947) (1,169) (32,116) 32,116 32,116 Financial Instruments (transferred to the Financial Instruments Adjustment Account) 8 7 15 (15) (15) Holiday Pay (transferred to the Accumulated Absences Reserve) 252 35 287 (287) (287) Reversal of entries included in the Surplus or Deficit on the Provision or Services in relation to capital expenditure (these items are charges to the Capital Adjustment Account) (25,720) (32,487) (58,207) 58,207 58,207 Adjustments between Capital and Revenue Resources Transfer of non-current asset sale gain/loss from revenue to the Capital Receipts Reserve (998) 0 998 0 0 Statutory provision for the repayment of debt (transfer to the Capital Adjustment Account) 3,808 5,495 9,303 (9,303) (9,303) Capital expenditure financed from revenue balances (transfer to the Capital Adjustment Account) 72 13,175 13,247 (13,247) (13,247) Adjustments to the Capital Resources 0 0 Disposal of non-current asset sale proceeds (3,268) (3,268) 3,268 3,268 Depreciation adjustment between Capital Adjustment Account and Revaluation Reserve (7,865) 7,865 0 Write out Revaluation Reserve of Disposals (617) 617 0 Transfer from the Capital Receipts Reserve to the Capital Fund/ Capital Grants and Receipts Unapplied Account 403 (403) 0 0 (53,525) (14,944) (1,867) (403) (70,739) 30,443 8,482 32,116 (287) (15) 70,739 Page 357
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Page 56 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 7 Earmarked Reserves Reserves are created by appropriating amounts from the General Fund balance in the Movement in Reserves Statement. When expenditure to be financed from a reserve is incurred, it is charged to the appropriate service within the CIES. The reserve is then appropriated back into the General Fund balance in the Movement in Reserves Statement (MiRS) so that there is no net charge against Council Tax for the expenditure. The Council has several usable reserve funds. The Capital Fund is used to meet the costs of capital investment in assets and for the repayment of the principal element of borrowings. Movements in the Council’s usable reserves are detailed in the Movement in Reserves Statement (MiRS). The major part of the General Fund balance shown in the MiRS has been earmarked and effectively committed to fund specific projects in future years. The amounts set aside for earmarked reserves are shown in the following table: Balance at 1 April 2021 Transfers Out 2021/22 Transfers In 2021/22 Balance at 31 March 2022 Transfers Out 2022/23 Transfers In 2022/23 Balance at 31 March 2023 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Earmarked reserves: General Fund General Covid 1,972 0 1,473 3,445 (3,445) 0 0 Education - Covid reserves 0 0 2,662 2,662 (2,452) 0 210 Housing & Communities - Covid reserves 1,015 (773) 179 421 (307) 0 114 Resourses - Covid reserves 83 (83) 263 263 (263) 0 0 Change Fund 1,553 (296) 0 1,257 (1,137) 18 138 HR/Legal Commitments 276 (66) 0 210 0 0 210 Miscellaneous Employability Reserves 421 (248) 164 337 (337) 250 250 Miscellaneous Housing & Communities Reserves 655 (655) 165 165 (165) 41 41 Miscellaneous HSCP 70 (35) 0 35 (35) 0 0 Miscellaneous CCF Reserves 64 (16) 59 107 (82) 6 31 Miscellaneous Resources Reserves 1,275 (1,262) 326 339 (232) 144 252 Miscellaneous Economic Development & Regulatory Reserves 1,091 (1,038) 0 53 0 18 71 Miscellaneous Education Reserves 655 (555) 32 132 (32) 979 1,079 DABVJB - Scottish Parliamentary Elections 2,561 (2,522) 0 39 (13) 0 26 2022/23 budget commitment 0 0 1,034 1,034 (1,034) 0 0 Young person guarantee 0 0 1,018 1,018 (1,018) 0 0 Early Retiral/Voluntary Severence Reserve 0 0 0 0 (7,038) 16,000 8,962 Cost of Living 0 0 0 0 (161) 2,000 1,839 Smoothing Fund for 2 year Service Transformation Project 0 0 0 0 0 3,000 3,000 Future Pay Awards 0 0 0 0 (2,195) 4,390 2,195 Prudential Target Future Years 0 0 0 0 1,799 1,799 Budget Funding reserve 0 0 0 0 (6,607) 11,205 4,598 Total: Earmarked Reserves - General Fund 11,691 (7,549) 7,375 11,517 (26,553) 39,850 24,815 Page 358
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Page 57 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 8 Financing and Investment (Income) and Expenditure 2021-22 2022-23 £'000 £'000 Interest payable and similar charges: 6,926 Schools' Public Private Partnership finance lease 6,668 10,939 Other Interest Payable and Similar Charges 14,550 21,422 (81) Interest and Investment Income (344) 1,101 Impairment Loss- Debtors 1,363 21,218 3,557 Net Pension Interest Expense 1,839 22,442 Total 24,076 Note 9 Taxation and Non-Specific Grant Income 2021-22 2022-23 £'000 £'000 (38,207) Council Tax (39,313) (81,408) Non-Domestic Rates (107,740) (131,276) Revenue Support Grant (103,347) (7,746) Recognised Capital grants and contributions (17,263) (258,637) Total (267,663) Note 10 Grant Income Government grants and third-party contributions and donations are recognised as due to the Council when there is reasonable assurance that: • The Council will comply with the conditions attached to the payments, and • The grants or contributions will be received. Monies advanced as grants and contributions for which conditions have not been satisfied are carried in the Balance Sheet as creditors. Where conditions are satisfied, the grant or contribution is credited to the relevant service line (attributable revenue grants) or Taxation and Non-specific Grant Income (non-ring-fenced revenue grants and all capital grants). Where capital grants are credited to the CIES, they are reversed out of the General Fund balance in the Movement in Reserves Statement. Page 359
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Page 58 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 The Council credited the following grants and other contributions to Taxation and Non-specific Grant Income within the Comprehensive Income and Expenditure Statement in 2022/23: Restated* 2021-22 Grant Income 2022-23 £'000 £'000 Credited to Taxation and Non Specific Grant Income 212,684 Revenue Support Grant 211,087 629 General Capital Grant 8,550 909 New House Build 4,018 1,992 Levelling Up Fund 1,319 682 Cycling, walking and safer Streets 337 444 Exxon City Deal 821 344 Strathclyde Partnership for Transport 838 139 Place Based Investments 0 972 Sustrans - Connecting Clydebank 20 481 Housing Buy Backs 0 279 Spaces for People 0 259 Levengrove 0 122 CO2 Monitors 0 120 District heating 0 102 New Restoration fund 0 0 Green Infrastructure Fund 439 0 Clydebank Can on the Canal 717 0 Sustrans 134 272 Other Grants 70 220,430 Total 228,350 The Council credited the following grants to Services within the Comprehensive Income and Expenditure Statement in 2022/23: Restated * 2021/22 Grant Income 2022/23 £'000 £'000 Credited to Services 34,111 Housing Benefit Subsidy 30,789 10,083 NHS Resource Transfer 10,256 9,247 Early Learning 10,007 2,917 Pupil Equity Fund 3,766 2,229 Criminal Justice 2,027 1,880 Scottish Attainment 1,840 2,128 DBFM 2,135 349 Asylum Seekers 542 580 Business Gateway 586 569 Young Person's Guarantee 335 446 Private Sector Housing 446 413 Care Experienced Children and young People 345 534 Vacination Centres (COVID) 0 308 Mental Wellbeing 231 287 Education additional staff support (covid) 0 280 Education Maintenance Allowance 288 0 Community Food Bank Garden 0 229 Parental Employability Support Fund 196 0 Holiday Hunger 1,897 0 Teacher's Pay Award 580 0 No-one Left Behind 275 454 Grants under £0.100m 555 67,044 Total 67,096 *The 2021/22 figures have been restated to move the DBFM funding from revenue Support Grant to the service. Page 360
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Page 59 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Capital Grant Receipts in Advance The council has received a number of grants that have yet to be recognised as income as they have conditions attached to them that will require the monies or property to be returned to the giver. The balances at the yearend are as follows: 31 March 2022 31 March 2023 69 Levelling Up Funding 1,105 192 Exxon City Deal - 142 Town Centre Fund - 128 Bonhill Gap Sites - 120 Queens Quay District Heating - 30 Clydebank Canal Investment 707 641 Place Based Investment 676 - Inspiring School Age Childcare Spaces Fund - Digital Inclusion 102 Knowes Nature Reserve 47 119 Pappert New Builds 119 86 Willox Park 136 81 Bank Street 102 - Queen Mary Avenue 140 383 Grants under £0.100m 365 2,093 3,397 Page 361
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Page 60 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 11 Property, Plant and Equipment 11.1 Movement in Property, Plant & Equipment 2022-23 Council dwellings Other Land & buildings Operational Assets** Vehicles & Plant Community Surplus Assets Assets Under Construction Total 2022-23 Infrastructure* £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cost/Valuation at 1 April 2022 542,780 420,810 45,360 31,511 10,168 6,011 28,179 1,084,819 162,227 Additions 30,577 7,247 3,761 127 11,316 53,028 8,849 Disposals (16) (459) (80) (33) (588) Revaluation adjustments to Revaluation Reserve 30,526 (3,708) (682) 26,136 Revaluation adjustments to CIES 264 264 Assets reclassified to/from Non-Current Assets Held for Sale 0 Adjustments - assets at nil NBV Other reclassification of assets (77) 77 0 As at 31 March 2023 573,357 458,490 41,193 35,272 10,295 5,590 39,462 1,163,659 171,076 Depreciation/Impairment at 1 April 2022 (81,351) (46,215) (2,052) (12,525) (2,582) 3 0 (144,722) (50,722) Depreciation charge (12,664) (10,539) (410) (3,640) (844) (3) (28,100) (8,055) Depreciation on Disposals 0 Depreciation written out to the Revaluation Reserve 25,639 1,515 27,154 Revaluation written out to the CIES 380 380 Impairment losses/(reversal) to the Revaluation Reserve 0 Impairment losses/(reversal) to the CIES 445 445 Other movements in depreciation and impairment 388 51 439 As At 31 March 2023 (94,015) (30,282) (516) (16,165) (3,426) 0 0 (144,404) (58,777) Net Book Value at 31 March 2022 461,429 374,595 43,308 18,986 7,586 6,014 28,179 940,097 111,505 Net Book Value at 31 March 2023 479,342 428,208 40,677 19,107 6,869 5,590 39,462 1,019,255 112,299 Page 362
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Page 61 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 11.2 Movement in Property, Plant & Equipment 2021-22 Council dwellings Other Land & buildings operational Assets** Vehicles & Plant Community Surplus Assets Assets Under Construction Total 2022-23 Infrastructure* £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cost/Valuation at 1 April 2021 502,600 403,348 45,367 30,903 8,463 6,329 70,910 1,067,920 152,069 Additions 28,080 9,024 3,056 575 4 12,736 53,475 10,024 Disposals (229) 0 (229) Revaluation adjustments to Revaluation Reserve (23,206) (7,493) (30,699) Revaluation adjustments to CIES (1,785) (183) (1,968) Assets reclassified to/from Non-Current Assets Held for Sale 0 Adjustments - assets at nil NBV (80) (7) (2,448) (139) (2,674) (772) Other reclassification of assets 35,306 18,025 1,130 0 (55,467) (1,006) 906 As at 31 March 2022 542,780 420,810 45,360 31,511 10,168 6,011 28,179 1,084,819 162,227 Depreciation/Impairment at 1 April 2021 (81,351) (46,215) (2,052) (12,525) (2,582) 3 0 (144,722) (44,007) Depreciation charge (12,664) (10,539) (410) (3,640) (844) (3) (28,100) (7,484) Depreciation on Disposals 0 Depreciation written out to the Revaluation Reserve 24,083 1,504 25,587 Revaluation written out to the CIES 833 305 1,138 Impairment losses/(reversal) to the Revaluation Reserve 0 Impairment losses/(reversal) to the CIES 365 365 772 Other movements in depreciation and impairment 0 As At 31 March 2022 (94,015) (31,838) (288) (16,165) (3,426) 0 0 (145,732) (50,719) Net Book Value at 31 March 2021 461,429 374,595 43,308 18,986 7,586 6,014 28,179 940,097 108,062 Net Book Value at 31 March 2022 448,765 388,972 45,072 15,346 6,742 6,011 28,179 939,087 111,508 *As permitted by Finance Circular 09-2022 the council has adopted both Statutory Override 1 & 2 relating to infrastructure assets which allow for the following; Statutory Override 1: For accounting periods commencing from 1 April 2021 until 31 March 2024 a local authority is not required to report the gross cost and accumulated depreciation for infrastructure assets. Statutory Override 2: For accounting periods commencing 1 April 2010 until 31 March 2024 the carrying amount to be derecognised in respect of a replaced part of an infrastructure asset is to be taken and accounted for as a nil amount. No subsequent adjustment shall be made to the carrying amount of the asset with respect to that part. ** Assets classified as operational assets are leased out by the Council under an operating lease arrangement (Note 16) Page 363
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Page 62 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 11.3 Commitments under Capital Contracts At 31 March 2023, the Council had commitments on capital contracts for the construction or enhancement of property, plant and equipment for non-housing projects of £3.031m and housing projects of £26.591m. This expenditure will be funded from a combination of Government Grants, borrowing and income from the sale of assets and contributions from Revenue Accounts. Similar commitments at 31 March 2022 were £5.816m and £27.514m respectively. The major commitments are: General Services £'000 Connecting Dumbarton 2,695 Alexandria Masterplan 336 HRA £'000 Clydebank East - new build site 26,091 External Wall Insulation 400 Pappert - new build site 100 11.4 Summary of Capital Expenditure and Financing Capital expenditure involves the creation of assets, the benefit of which will be available to future rates and Council taxpayers. It is financed from borrowing, capital receipts and capital grants. The cost of the asset is effectively borne over a period of years. In 2022-23 total spending on capital projects was 62.108m. 2021-22 2022-23 £'000 £'000 646,190 Opening Capital Financing Requirement 680,113 Capital Investment 63,495 Property, Plant and Equipment 61,887 357 Intangibles 189 114 Non-Current Assets Held for Sale 0 79 Heritage Assets 32 64,045 Total Capital Investment 62,108 Sources of Finance 0 Sevice Concessions 29,734 (7,572) Government Grants and other Contributions (17,263) (13,247) Revenue Contributions (2,911) (9,303) Loan Fund Principal Repayments (9,498) (30,122) Total Capital Financing 62 680,113 Closing Capital Financing Requirement 742,283 Movements in the year 33,923 Increase in Underlying Need to Borrow 62,170 33,923 Movement in Capital Financing Requirement 62,170 Note 12 Intangible Assets Expenditure on non-monetary assets that do not have physical substance but are controlled by the Council as a result of past events (e.g. computer software and/or software licences) is capitalised when it is expected that future economic or service benefits will flow from the asset to the Council. The Council accounts for its software as intangible assets, to the extent that the software is not an integral part of a particular IT system and accounted for as part of the hardware item of property, plant and equipment. The intangible assets include purchased licences. Where appropriate, the carrying amount of intangible assets is amortised on a straight line basis. The amortisation of £0.084m charged to revenue in 2022/23 was charged to Information Services. The charge to Information Services is then absorbed as an overhead across all the service headings in the Net Cost of services. It is not possible to quantify exactly how much of the amortisation is attributable to each service heading. Page 364
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Page 63 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 The movement in intangible assets during the year was: 2021-22 2022-23 £'000 £'000 Balance at 1 April 667 Gross carrying amount 1,053 (396) Accumulated amortisation (436) 271 Net carrying amount at start of year 617 357 Acquisitions in year 189 29 Transfer from Assets under Construction 0 (40) Amortisation for period (84) 617 Net carrying amount at 31 March 722 Comprising: 1,053 Gross Carrying amounts 1,242 (436) Accumulated amortisation (520) 617 722 Note 13 Heritage Assets Heritage assets are both tangible and intangible assets with historic, artistic, scientific, technological, geographical or environmental qualities, which are held and maintained primarily for their contribution to knowledge and culture. The authority holds heritage assets of six main types: • Models of Ships; • Works of Art; • Silver and Commemorative Ware; • Civic Regalia (Robes and Chains); • Sewing Machine Collections; and • Listed Buildings and Scheduled Ancient Monuments. The valuation of these assets held on the balance sheet as detailed below: 2021/22 2022/23 £'000 £'000 1,406 Balance at 1 April 1,485 79 Additions/ Disposals / Newly Classified 33 1,485 Balance at 31 March 1,518 The models of ships, works of art, silver and commemorative ware, civic regalia and sewing machine collections are the responsibility of the Libraries and Museums Service and accounts for approximately 90% of the overall collection with the remaining 10% being recorded and accessioned into the collection on a regular basis in line with museum accreditation. These works are held at the following locations: • Collections Store, Poplar Road • Collections Store, Stanford Street • Clydebank Town Hall. Models of Ships - include MV Rangitane, MV Essex and HMS Vanguard. Works of Art - there are 474 paintings within the works of art collection. Civic Regalia - predominately relates to the collection of provost robes and chains of office. It would be relatively rare for the authority to purchase, or dispose of, items of civic regalia. Page 365
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Page 64 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Sewing Machine Collection - there are 813 sewing machines (of various models) included within the sewing machine collection. Listed Buildings and Scheduled Ancient Monuments - the Council holds and maintains listed buildings and ancient monuments of historic significance, many of which are tributes to the war dead. As well as memorial structures and buildings, the Council maintains statues and fountains. Note 14 Non-Current Assets Held for Sale Non-Current Assets held for sale are those where the carrying amount will be recovered principally through a sale transaction rather than through continued use. Before an asset can be classified as held for sale, the following conditions must be met: • the asset must be available for immediate sale in its present condition; • the sale must be highly probable and an active programme to locate a buyer and complete the plan must have been initiated; • the asset must be actively marketed for sale at a price that is reasonable in relation to its current fair value; and • the sale should be expected to qualify for recognition as a completed sale within one year of the date of classification. When these criteria are met, assets within the category of Property, Plant & Equipment will be reclassified to “Non- Current Assets Held for Sale”. 2021-22 2022-23 £'000 £'000 7,755 Balance at 1 April 5,417 114 Acquisitions 0 639 Assets previously ommitted 0 Assets newly classified as held for sale:- 71 Property, Plant and Equipment 0 (173) Impairment 0 50 Revaluation Gains 0 (3,039) Disposals 0 Assets declassified as held for sale* 0 Property, Plant and Equipment 0 0 Depreciation 0 5,417 As at 31 March 5,417 Note 15 Private Finance Initiatives and Similar Contracts Schools PPP Scheme and Long Term Liability (Design, Build, Finance and Maintain (DBFM) Scheme) 2022/23 was the fourteenth year of a thirty-year public private partnership for provision of three secondary schools and one primary school in Clydebank and Alexandria. 2022/23 was the sixth year of a twenty-five year DBFM partnership for the provision of one secondary school in Dumbarton. The Council has rights to use the schools for core educational purposes between agreed hours. The contract specifies minimum standards for the services to be provided by the contractor, with deductions from the fee payable being made if facilities are unavailable or performance is below the minimum standards. The partnership agreement was for the design, build, finance and operation of the schools which means that the contractor took on the obligation to construct the schools and maintain them in a minimum acceptable condition and to procure and maintain the plant and equipment needed to operate the schools. When the agreement ends, after thirty years, unrestricted use and operation of the buildings will be handed back to the Council at nil cost. The Termination rights are in line with the market norms reflected in the Scottish Standard Schools Contract, as approved by the Scottish Government, prior to financial close. Page 366
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Page 65 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 15.1 Assets held under Schools PPP and DBFM Contracts The construction costs of the five school buildings, adjusted for revaluations on 31 March 2023 and depreciation to date are included as part of Operational Land and Buildings. 2021/22 2022/23 £'000 £'000 Cost or Valuation 114,219 At 1 April 114,219 Revaluations 0 To Revaluation Reserve 11,993 0 Additions 0 114,219 At 31 March 126,212 Accumulated Depreciation and Impairment (7,578) At 1 April (10,104) (2,526) Depreciation Charge (5,350) Depreciation written out 0 To revaluation reserve 13,661 0 To Net Cost of Service 0 (10,104) At 31 March (1,793) 106,641 Opening Net Book value 104,115 104,115 Closing Net Book value 124,419 15.2 Payments The amounts payable to the PPP and DBFM operators each year is analysed into five elements: • fair value of the services received during the year; • finance cost – an interest charge on the outstanding Balance Sheet liability; • contingent rent – increases in the amount to be paid for the property arising during contract; • payment towards the liability – applied to write down the Balance Sheet liability towards the PPP contractor; and • lifecycle replacement costs – proportion of the amounts payable posted to the Balance Sheet as a prepayment and then recognised as additions to property, plant and equipment when the relevant work is carried out. Payments remaining to be made under the PPP and DBFM contracts at 31 March 2023 (excluding any estimation of inflation and availability/performance deductions) are as follows: Repayment of Liability Interest Charges Operating Costs Lifecycle Replacement Total Unitary Payment £'000 £'000 £'000 £'000 £'000 less than 1 year 3,032 6,421 3,377 1,788 14,618 2-5 years 17,274 22,921 14,861 5,452 60,508 6-10 years 21,878 21,584 22,250 13,710 79,422 11-15 years 31,961 11,877 27,036 13,008 83,882 16-20 years 14,970 1812 8,812 5,044 30,638 PPP Contractual Liability as at 31 March 2023 89,115 64,615 76,336 39,002 269,068 Although the payments made to the contractor are described as unitary charge payments, they have been calculated to compensate the contractor for the fair value of the services they provide, the capital expenditure incurred and interest payable whilst the capital expenditure remains to be reimbursed. Page 367
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Page 66 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 2021/22 2022/23 £'000 £'000 96,292 Opening Balance as at 1 April 92,485 (3,807) Repayments (3,370) 92,485 School finance Lease Liability as at 31 March 89,115 Split: 2,364 Obligation payable within 1 year 3,032 90,121 Obligation payable after 1 year 86,084 92,485 School finance Lease Liability as at 31 March 89,116 Application of PPP Service Concession Arrangement Flexibilities In accordance with Accounting Policy 21 on page 50 and in line with Finance Circular 10/2022, the Council has applied the permitted PPP Service Concession Arrangement (SCA) flexibility in financial year 2022-23 on a retrospective annuity basis with a useful life of 60 years. The flexibility being applied is consistent with current Council Loans Fund arrangements and is considered prudent, sustainable, and affordable over the life of the asset. The current repayment charges have been compared against an annuity repayment profile based on the estimated useful asset lives for the each of the two SCA arrangements. The most appropriate asset life is considered to be 60 years which replicates the useful asset life of other similar type assets held on the Council’s balance sheet i.e. schools. The calculation of the repayment charges of each SCA or Public Private Partnership (PPP) scheme using the asset life annuity basis is compared to the current charges which are made over the contract period. By applying the flexibility, a one-off combined pre-2022-23 retrospective saving of £26.650m as detailed in the table below will be achieved. PPP Debt Repayment Current Repayment Revised Repayment (Reduction) /Cost Pre 2022/23 28,740 2,090 (26,650) Paid in 2022/23 3,370 286 (3,084) Payable within two to five years 15,754 1,372 (14,382) Payable within six to ten years 21,548 2,375 (19,173) Payable within eleven to twenty five years 51,812 15,275 (36,537) Payable within twenty six to forty years 45,160 45,160 Payable within forty one to fifty years 48,105 48,105 Payable within fifty one to sixty years 6,561 6,561 Total 121,224 121,224 0 In addition to the one-off retrospective element, an in-year saving occurs in scheduled debt repayments in 2022/23, of £3.084m. This will be followed by a reduction in the annual charges for further 21 years and then the continuation of the statutory charges after the SCA contracts have been repaid. Over the full asset life of the SCAs the total repayment for the debt liability remains the same. Impact on CIES and Balance Sheet. The reprofiling of the debt liability repayments increases the Capital Financing Requirement (CFR) by £26.650m as at 1 April 2022. The increase in the CFR (Note 20) will continue to be reduced by the revised repayments after each SCA contract has expired until the end of the revised period. Being a cumulative statutory adjustment there is no prior year restatement of statutory adjustments in the Annual Accounts. The statutory adjustment up to 31 March 2023 has the following impact on the 2022/23 Balance sheet (Capital Adjustment Account) and Movement in Reserves statement: Page 368
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Page 67 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Pre 2021-22 £000 Movement £000 2022-23 £000 Capital Adjustment Account 3,084 29,734 General Fund (26,650) (3,084) (29,734) Note 16 Operating Leases 16.1 Operating Leases – Council as Lessee The Council occupies a number of properties by way of an operating lease. The future minimum lease payment due under non-cancellable leases in future years are: 31 March 2022 31 March 2023 £'000 £'000 731 Not later than one year 717 2,019 Later than one year and not later than five years 1,747 1,706 Later than five years 1,446 4,456 3,910 The expenditure charged to the appropriate service lines in the Comprehensive Income and Expenditure Statement during the year in relation to these leases was £0.741m (2021/22 £0.769m). The Council has acquired vehicles and equipment by entering into operating leases. The future minimum lease payment due under non-cancellable leases in future years are: 31 March 2022 31 March 2023 £'000 £'000 236 Not later than one year 286 336 Later than one year and not later than five years 232 572 518 The expenditure charged to the appropriate service lines in the Comprehensive Income and Expenditure Statement during the year in relation to these leases was £0.172m (2021/22: £0.186m). 16.2 Operating Leases – Council as Lessor Where the Council grants an operating lease over a property, the asset is retained in the Balance Sheet classed as an operational asset in Note 11. The Council leases out property under operating leases for the following purposes: • For the provision of community services, such as sports facilities, tourism services and community centres; and • For economic development purposes to provide suitable affordable accommodation for local businesses. The future minimum lease payment due under non-cancellable leases in future years are: 31 March 2022 31 March 2023 £'000 £'000 3,528 Not later than one year 4,173 11,029 Later than one year and not later than five years 10,925 122,840 Later than five years 126,974 137,397 142,072 The minimum lease payments receivable do not include rents that are contingent on events taking place after the lease was entered into, such as adjustments following rent reviews. In 2022/23, £2.610m contingent rents were receivable by the Council (2021/22 £1.413m). Page 369
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Page 68 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 16.3 Finance Leases The Council does not have any assets or liabilities under a finance lease, either as Lessee or Lessor. Note 17 Debtors £'000 £'000 £'000 £'000 7,946 Central Government Bodies 14,505 13,867 Scottish Government (including NHS bodies) 639 448 Other Local Authorities 788 8 Other entities and individuals 8 55,803 Arrears of local taxation 60,362 (33,832) Impairment allowance for doubtful debt (35,939) 21,971 Council Tax (net of impairment) 24,423 27,586 Trade debtors 26,521 (4,258) Impairment allowance for doubtful debt (4,774) 23,328 Trade Debtors (net of impairment) 21,747 67,568 Total Debtors 62,110 31/03/2022* 31 March 2023 *The 2021-22 figures have been restated to move rate debtors from Trade debtors to Arrears of Local Taxation. Note 18 Cash and Cash equivalents Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are investments that mature in three months or less from date of acquisition and that are readily convertible to known cash amounts, with insignificant risk of change of value. The investments comprise solely of short term lending of surplus funds to a limited number of pre-approved UK banks and other local authorities. All deposits are held in sterling. The carrying amount is the outstanding principal receivable. Bank balances are included in the Balance Sheet at the closing balance in the Council’s ledger and include cheques payable not yet cashed. 31 March 2022 Movement 31 March 2023 £'000 £'000 £'000 Net Bank Current Account* (9,302) 5,356 (3,946) Short term deposits with UK banks 11,442 (4,945) 6,497 Net Cash and Cash equivalents 2,140 411 2,551 • A further breakdown of the bank account balances is noted below: 31 March 2022 31 March 2023 £'000 £'000 805 Bank current accounts in balance 604 (10,107) Current Accounts in overdraft (4,550) (9,302) (3,946) Page 370
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Page 69 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 19 Creditors 31 March 2022 31 March 2023 £'000 £'000 8,620 Central government bodies 13,153 37,430 Other local authorities 28,616 205 Scottish Government including NHS Bodies 2,646 Trade Creditors 28,885 Other Entities and individuals 31,227 75,140 75,642 Note 20 Provisions VS/ER Other Total £'000 £'000 £'000 Opening Provision as at 1 April 2021 0 0 0 Contributions in year 0 0 0 Amounts utilised in year 0 0 0 Unutilised amounts reversed in year 0 0 0 Closing Provision as at 31 March 2022 0 0 0 Contributions in year 3,412 16 3,428 Amounts utilised in year 0 0 0 Unutilised amounts reversed in year 0 0 0 Closing Provision as at 31 March 2023 3,412 16 3,428 Compensation Payments – Voluntary Severance/Early Retirement (VS/ER) cost £3.412m This provision is for future severance costs that were identified as part of the 2023/24 budget setting process. Other Provisions £0.016m: Intromission liability for historic abuse claims following reorganisation of Strathclyde Regional Council amounts agreed due from West Dunbartonshire Council to Glasgow City Council as at 31 March 2023 Note 21 Financial Instruments Categories of financial Instrument Long Term Current Long Term Current £'000 £'000 £'000 £'000 Debtors 21 61,782 Financial assets at amortised cost 20 39,955 Borrowing 307,485 270,923 Financial liabilities at amortised cost 300,471 319,979 Other long term liabilities 89,115 3,370 PPP and finance leases 86,084 3,032 Creditors 75,140 Financial liabilities at contract amount 75,642 31 March 202331 March 2022 Accounting regulations require the “financial instruments” (investment, lending and borrowing of the Council) shown on the Balance Sheet to be further analysed into various defined categories. The investments, lending and borrowing disclosed in the Balance Sheet are made up of the following categories of “financial instruments”: Fair Value of Assets and Liabilities carried at Amortised Cost Financial assets (represented by lending and receivables) and financial liabilities (represented by borrowings) and are carried in the Balance Sheet at amortised cost. Fair values have been calculated with reference to the following: Financial Liabilities • PWLB Loans (Level 2) - For loans from the PWLB, premature repayment rates from the PWLB in force on 31 March 2023 have been applied to provide the fair value under PWLB debt redemption procedures. As the Debt Management Office provides a transparent approach allowing the exit cost to be calculated without undertaking Page 371
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Page 70 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 a repayment or transfer it is appropriate to disclose the exit price. As an alternative, we have assessed the cost of taking a new loan at PWLB new loan rates applicable to existing loans on Balance Sheet date (which could be viewed as a proxy for transfer value). • Non-PWLB loans (Level 2) - For non-PWLB loans payable, the fair value of market loans are calculated using estimated interest rates of 4.10% which is the average discount rate applied to market loans for calculation of premature repayment. The fair value of local council loans are calculated using estimated interest rates of 0.70% which is the average discount rate applied to local council loans for calculation of premature repayment. Discount rates have been applied to provide the fair value under PWLB debt redemption procedures. • PFI/Finance leases (Level 3) – These are not the liability of the Council as the debt is held by the PFI/lease provider. Fair value have been calculated at level 3 on a simple proxy basis. The same NPV methodology has been applied as for PWLB and non-PWLB debt. Financial Assets • Fixed or variable short term deposits of less than a year (including MMF's) – Where an instrument has a maturity of less than 12 months or is a trade or other receivable the fair value is taken to be the carrying amount or the billed amount. Policy Type Assets • Long term debtors – Level 2. Creditors • The fair value of trade and other receivables is taken to be the invoiced or billed amount. Transfers between Levels of the Fair Value Hierarchy • There were no transfers between input levels 1 and 2 or transfers in or out of level 3 during the year. Changes in the Valuation Technique • There has been no change in the valuation technique used during the year for the financial instruments: Carrying Amount Fair Value Carrying Amount Fair Value £'000 £'000 £'000 £'000 Debtors 61,803 61,803 Financial Assets at Amortised Cost1 39,955 39,955 Cash and Cash Equivalents 2,140 2,140 Cash and Cash Equivalents 2,551 2,551 Creditors 75,140 75,140 Financial liabilities at contract amount1 75,642 75,642 Borrowing 578,408 648,513 Financial liabilities2 620,450 574,927 Other Long Term Liabilities 92,485 136,477 PPP and Finance Lease Liabilities2 89,116 136,477 31 March 2022 31 March 2023 1 The fair value is equal to the carrying amount because all financial assets at amortised cost are either short term or at a fixed interest rate or a variable rate linked to base rate without significant transaction costs. The Council does not hold any equity investments in an unquoted market and, therefore, this type of investment is excluded from the above table. 2 The fair value is higher than the carrying amount because the Council’s portfolio of loans includes a number of fixed rate loans where the interest rate payable is higher than the rates available for similar loans at the balance sheet date. The commitment to pay interest above current market rates increases the amount that the Council would have to pay if the lender requested or agreed to early repayment of the loans. Page 372
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Page 71 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 A further breakdown of types of borrowing held by the Council as at 31 March 2023 is noted below: Principal outstanding Accrued interest / EIR adjustment Carrying amount Principal outstanding Accrued interest / EIR adjustment Carrying amount £'000 £'000 £'000 £'000 £'000 £'000 11,091 1,289 12,380 PWLB 2,410 1,736 4,146 0 761 761 Mortgage loans 0 682 682 257,000 135 257,135 Local Authority 311,000 2,896 313,896 631 16 647 Other 1,255 0 1,255 268,722 2,201 270,923 Short Term Loans 314,665 5,314 319,979 226,268 0 226,268 PWLB 233,644 0 233,644 77,600 1,637 79,237 Mortgage loans 65,419 1,256 66,675 0 0 0 Local Authority 0 0 0 1,980 0 1,980 Other 152 0 152 305,848 1,637 307,485 Long Term Loans 299,215 1,256 300,471 31 March 2022 31 March 2023 Gains and Losses on Financial Instruments The gains and losses recognised in the Comprehensive Income and Expenditure Account in relation to financial instruments are made up as follows: Financial Assets: Loans & receivables Financial Liabilities: amortised cost Total Financial Assets: Loans & receivables Financial Liabilities: amortised cost Total £'000 £'000 £'000 £'000 £'000 £'000 81 0 81 Interest (investment) 344 0 344 Interest payable and similar charges 0 0 (17,865) (17,865) Interest/expense* 0 (21,218) (21,218) 0 15 15 (Gain)/Loss on de-recognition 0 380 380 0 (17,850) (17,850) Net (Gain)/loss in year 344 (20,838) (20,494) 31 March 2022 31 March 2023 * Interest/Expense has been calculated on an EIR basis where appropriate for market instruments. There has been no gain/loss on either of the following classes of financial instruments, as the Council does not own them: • Non-current financial assets held for sale. • financial assets or liabilities at a fair value through profit and loss. Nature and Extent of Risks arising from Financial Instruments The Council activities expose it to a variety of financial risks: • Credit risk – the possibility that other parties might fail to pay amounts due to the Council; • Liquidity risk – the possibility the Council might not have funds available to meet its commitments to make payments; • Market risk – he possibility that financial loss might arise for the Council as a result of changes in such measures as interest rates and stock market movements. The Council’s management of treasury risks actively works to minimise the Council’s exposure to the unpredictability of financial markets and implementing restrictions to minimise these risks. The procedures for risk management are set out through a legal framework in the Local Government (Scotland) Act 2003 and the associated regulations. During 2021/22 these required the Council to comply with the CIPFA Prudential Code, the CIPFA Treasury Management in the Public Services Page 373
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Page 72 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Code of Practice and the Local Government Investments (Scotland) Regulations 2010. Overall these procedures require the Council to manage risk in the following ways: (i) by formally adopting the requirements of the Code of Practice (ii) by the adoption of a Treasury Policy Statement and treasury management clauses within its financial regulations/standing orders (iii) by approving annually in advance prudential and treasury indicators for the following three years in limiting the Council’s: • overall borrowing. • maximum and minimum exposures to fixed and variable rates. • maximum and minimum exposures regarding the maturity structure of debt • maximum annual exposure to investments maturing beyond a year. (iv) by approving an investment strategy for the forthcoming year setting out its criteria for both investing and selecting investment. These are required to be reported and approved prior to the start of the year to which they relate. These items are reported with the annual treasury management strategy which outlines the detailed approach to managing risk in relation to the Council’s financial instrument exposure. Actual performance is reported to Members to assess the effectiveness of controls established. The 2022/23 annual Treasury Management Strategy which incorporates the prudential indicators was approved by Council on 23 March 2022 and is available on the Council website. The key issues within the strategy were: • the authorised limit for 2022/23 was set by Council at that meeting at £887.766m. This is the maximum limit of external borrowing • the operational boundary was expected to be £813.785m. This is the expected level of debt during the year • the maximum amounts of fixed and variable interest rate exposure were set at 100% and 50% based on the Council’s gross debt • the maximum exposures to the maturity structure of debt is detailed with refinancing and maturity risk. The Council has fully adopted all required CIPFA Codes and statutory regulation currently in force, and maintains written principles for overall risk management, as well as written policies and procedures covering specific areas such as credit risk, liquidity risk, refinancing/maturity risk and market risk. Management of Credit Risk Credit risk arises from the short-term lending of surplus funds to banks, building societies and other local authorities as well as credit exposures to the Council’s customers. It is the policy of the Council to place deposits only with a limited number of pre-approved UK banks and building societies whose credit rating is independently assessed as sufficiently secure by the Council’s treasury advisers and to restrict lending to a prudent maximum amount for each institution. The Council’s maximum exposure to credit risk in relation to investments in banks and building societies of £10.018m cannot be assessed on a general basis as the risk of any institution failing to make interest payments or repay principal sums is specific to each individual institution, however, recent experience has shown that the institutions invested in at the year-end are unlikely to default on their commitments. A risk of irrecoverability applies to all of the Council’s deposits but there was no evidence at 31 March 2023 that this was likely to happen. The following analysis summarises the Council’s maximum exposure to credit risk on other financial assets, based on past experience and current market conditions. Amount at 31 March 2023 Historical experience of non-payment adjusted for market conditions at 31 March 2023 Estimated maximum exposure to default and uncollectibility £'000 % £'000 Customers and other income 39,010 7.80 1,303 The Council does not hold any of the following in relation to financial assets: • collateral as security in case of default of investment; or • financial assets that would otherwise be past due or impaired but have been renegotiated. Page 374
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Page 73 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 The council does not generally allow credit for customers, however currently £15.057m is past its due date for payment (2021/22: £11.652m). The past due amount can be analysed by age as follows: Total £'000 Less than three months 4,706 Three to six months 900 Six months to one year 1,795 More than one year 7,656 Total 15,057 In general, provisions are made in accordance with Code Guidance, whereby a judgement is made regarding the probability of collection for each category of debt. This judgement is based upon the past experience of collecting each category of debt to calculate the appropriate percentage of each debt that may not be eventually recovered. Due consideration has been taken to current position caused by COVID, however this continues to be monitored. It should be noted that due to the limitations on the available age analysis of rent arrears, the impairment of bad debt is based on the total value of the debt by tenant, and not by age past due. No financial assets have been individually determined to be impaired and no collateral is held on past due or impaired financial assets, therefore the Council has not obtained financial or non-financial assets during the financial year by taking possession of any collateral or calling on other credit enhancements. Management of Liquidity risk The Council manages its liquidity position through the risk management procedures noted above (i.e. the setting and approval of prudential indicators and the approval of the treasury and investment strategy reports), as well as through a comprehensive cash flow forecast management system, as required by the CIPFA Code of Practice. This seeks to ensure that cash is available when it is needed. The Council has ready access to borrowing from the Money Markets to cover any day to day cash flow need if required. The Council is required to provide a balanced budget through the Local Government Finance Act 1992, which ensures that sufficient funds are raised to cover annual expenditure. On review, at this time there has been little effect on the availability of borrowings due to COVID. There is, therefore, no significant risk that the Council will be unable to raise finance to meet its commitments under financial instruments. Refinancing and Maturity Risk The Council maintains a significant debt portfolio and whilst the cash flow procedures above are considered against the refinancing risk procedures, longer term risk to the council relates to managing the exposure to replacing financial instruments as they mature. This risk relates to the maturing of longer term financial liabilities. The approved treasury indicator limits for the maturity structure of debt are the key parameters used to address this risk and the central treasury team address the operational risks within the approved parameters. This includes: • monitoring the maturity profile of financial liabilities and amending the profile as appropriate through either new borrowing or the rescheduling of the existing debt • monitoring the maturity profile of investments to ensure that sufficient liquidity is available for the Council’s day to day cash flow needs. The Council has safeguards in place to ensure that a significant proportion of its borrowing does not mature for repayment at any one time in the future to reduce the financial impact of re-borrowing at a time of unfavourable interest rates. No more than 50% of borrowings are due to mature within any financial year or within any rolling five-year period. The maturity analysis of financial liabilities is as follows: Page 375
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Page 74 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Creditors PPP Borrowing Total £'000 £'000 £'000 £'000 Less than one year 75,642 3,032 324,531 403,205 Between one and two years 17,274 18,464 35,738 Between two and five years 21,878 10,000 31,878 More than five years 46,931 271,988 318,919 75,642 89,115 624,983 789,740 Management of Market risk Changes in market interest rates influence the interest payable on borrowings and on interest receivable on surplus funds invested. For example, a rise in interest rates would mean an increase in the interest charges on borrowing at variable rates and an increased cost to the taxpayer. An increase in interest rates would also mean an increase in the income received on lending at variable rates and a reduction in cost for the taxpayer. Changes in market rates also affect the notional “fair value” of lending and borrowing. For example, a rise in interest rates would reduce the fair value of both lending and borrowing at fixed rates. Changes in the fair value of lending and borrowing do not impact upon the taxpayer and are confined to prescribed presentational aspects in the Accounts. The Council has a variety of strategies for managing the uncertainty of future interest rates and the financial impact on the Council: • it is the policy of the Council to limit its exposure to variable rate borrowing to a maximum of 50% of what it borrows • during periods of falling rates and where it is economically advantageous to do so, the Council will consider the repayment and restructuring of fixed interest rate debt • the Council takes advice from its specialist treasury advisers and actively monitors changes in interest rates to inform decisions on the lending of surplus funds, new borrowings and restructurings of existing borrowings • any potential for a financial impact on the Council is also significantly limited by the Scottish Government’s grant distribution mechanism that automatically adjusts for changes in interest rates in the government grant support the Council receives for “loan charges”. The interest rate profile of the Council’s borrowing is as follows: £'000 % Fixed Interest Debt 620,450 99.3% Variable Interest Debt 4,549 0.7% 624,999 To illustrate the impact of changes in interest rates upon the Council, the following table shows the financial effect if rates had been 1% higher at 31 March 2023, with all other variables held constant: The impact of a 1% fall in interest rates would be as above but with the changes being reversed. Impact on tax payers and rent payers £'000 Increase on interest payable on variable debt borrowings 1 Increase in interest receivable on variable rate investments (344) Increase in government grant receivable for ‘loan charges’ (41) Impact on Income and Expenditure Account (384) Share of overall impact due credited to the HRA (145) Other accounting presentational changes Decrease in fair value of fixed rate investments: Decrease in fair value of fixed rate debt borrowings (disclosure confined to notes to the core financial statements) 35,298 Management of Foreign Exchange Risk The Council does not lend or borrow in foreign currencies and has no exposure to gains or losses arising from movements in exchange rates. Page 376
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Page 75 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 22 Defined Benefit Pension Scheme As part of the terms and conditions of employment of its officers and other employees, the council offers retirement benefits. Although these benefits will not actually be payable until employees retire, the Council has a commitment to make the payments that needs to be disclosed at the time that employees earn their future entitlement. The Council participates in the following pension schemes: The Local Government Pension Scheme, which is a defined benefit statutory scheme, operated as Strathclyde Pension Fund, and administered by Glasgow City Council in accordance with the Local Government Pension Scheme (Scotland) Regulations 1998. This is a funded scheme, meaning that the Council and employees pay contributions into a fund, calculated at a level intended to balance the pensions liabilities with investment assets. The employer’s contribution rate is set by the Fund actuaries following valuation. The employer contribution rate for 2022/23 was 19.3%, and 2023/24 is set at 19.3%. In 2022/23, the Council paid an employer’s contribution of £21.084m (2021/22 £19.851m). The Teachers’ Pension Scheme (Scottish Teachers’ Superannuation Scheme (STSS) which is a defined benefit scheme administered by the Scottish Public Pension Agency. The scheme is technically a multi-employer defined benefit scheme but is unfunded and the Scottish Government used a notional fund as the basis for calculating the employers’ contribution rate paid by local authorities. Due to the type of scheme, the Council is not able to identify its share of the underlying financial position and performance of the scheme with sufficient reliability for accounting purposes. For the purpose of this Statement of accounts, it is accounted for on the same basis as a defined contribution scheme. The employer pays a set contribution rate of 23% which is effective from 1 September 2019. This is charged directly to the revenue account for the Education service. The amount paid over in respect of employer’s contribution was £11.100m (2021/22 £10.291m) and in respect of expenditure for teachers added years, £0.041m payments were made (2021/22 £0.039m). The scheme is unfunded and all contributions (payable by members or employers) are paid to the Scottish Government, and the Scottish Government then meets the costs of all the benefits. A specific amount is held by the Scottish Government for this purpose. As a proportion of the total contributions into the Scottish Teachers Superannuation Scheme 2022/23, the Council’s own contribution equates to 1.66%. The Council is not liable to the scheme for any other entities obligations under the plan. Local Government Pension Scheme: Councils are also required to disclose the capital cost of discretionary increases in pension payments agreed by the Council. In 2023/24 the capitalised costs that would have arisen from the early retiral of the Council employees and from predecessor authorities were as follows: £'000 2022/23 (9,974) In earlier years 53,394 Total 43,420 The Council fully complies with the International Accounting Standard (IAS 19) concerning the disclosure of information on the pension. IAS 19 states that although the pension benefits will not be paid until the employee retires, the Council has a commitment to make these payments and must disclose the cost of this in its accounts at the time employees earn their full entitlement. The Council therefore recognises the cost of the pension commitment within the Comprehensive Income and Expenditure Account when the employees earn their pension entitlement rather than when the benefits are paid as pensions. However, the cost to the taxpayer is calculated on the basis of pension contributions paid in the year, the cost of retirement benefits under IAS19 is reversed out, to ensure there is no impact on the overall cost to be funded by council tax and government grants. Page 377
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Page 76 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 The following transactions have been made in the Comprehensive Income and Expenditure Account and Movement in Reserves Statement during the year: 2021/22 2022/23 £'000 £'000 Net cost of services 51,324 Current service cost 48,832 0 Past service cost 190 51,324 49,022 Financing and investment Income and Expenditure 3,557 Net interest expense 1,839 54,881 Total post employment benefit charged to the Surplus or Deficit on the provision of Services 50,861 (55,488) Expected return on assets 44,999 (7,291) Actuarial gains and losses arising from changes in demographic assumptions (27,468) (78,984) Actuarial gains and losses arising from changes in financial assumptions (400,621) 1,722 Actuarial gains and losses arising from experience assumptions 68,024 0 Change in the effect of the asset ceiling 2022-23 247,931 (140,041) Total remeasurements recognised in other Comprehensive Income (67,135) (85,160) Total post employment benefit charged to the comprehensive income and expenditure statement (16,274) Movement in Reserves Statement (54,881) Reversal of gross charges made to surplus or deficit for post employment benefits (50,861) 22,765 Actual amount charged against the General Fund balance in the year - employer contributions payable to Scheme 24,026 (32,116) Reversal of gross charges made to surplus or deficit for post employment benefits (26,835) The underlying assets and liabilities for retirement benefits attributable to the council as at 31 March are as follows: 2021/22 2022/23 £'000 £'000 1,052,202 Fair value of plan assets 1,033,063 (1,054,498) Present value of defined benefit obligations (757,102) 0 Asset ceiling adjustment (247,931) (2,296) Net assets in the Strathclyde Pension Fund 28,030 Present Value of Unfunded Liabilities (25,835) LGPS Unfunded (20,792) (22,386) Teachers’ pensions (18,258) (5,173) Pre Local Government Reorganisation (4,370) (55,690) Net pension asset/(liability) (15,390) The liabilities show the underlying commitments that the Council has in the long run to pay post-employment (retirement) benefits. The amount included in the Balance Sheet arising from the Council’s obligation in respect of its defined benefit plans is shown in the tables below. The net asset arising from the Council’s involvement in the defined benefit scheme totals £232.541m at 31 March 2023. However the funded obligation has been limited to £28.030m in line with the accounting requirements of IFRIC 14 to limit the recognition of a pension asset to the extent to which the Council can recover the Page 378
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Page 77 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 benefits through either refunds or reduced contributions. As the Council is not able to withdraw from the scheme or recover funds directly, the asset is therefore limited to the forecast reductions in contributions as compared to the forecast future service costs. This has limited the recognition of the funded pension asset to nil. The Council has continued to recognise the unfunded element of its pension liabilities as there are no scheme assets to cover the future costs of these liabilities as they are due going forward. The Council’s Local Government Pension Scheme has a material surplus as at 31 March 2023. The Council accounts for its pension fund using International Accounting Standards IAS 19. The surplus asset is to be determined as outlined in IFRIC 14 based on the expected future reduction in accounting contributions. The fund remains open to new employees therefore the potential future benefits have been measured in perpetuity. The fair value of plan assets have decreased by £19.139m. This is mainly due to strong investment returns. The estimated liabilities have decreased by £297,396m, due to financial assumptions as at 31 March 2023 being more favourable than they were at 31 March 2022 with a large increase in the discount rate based on market conditions as at 31 March 2023. Pension Assets and Liabilities Liabilities have been valued on an actuarial basis using the projected unit method which assesses the future liabilities of the fund discounted to their present value. The liabilities have been assessed by Hymans Robertson, an independent firm of actuaries, contracted by Glasgow City Council to provide all IAS19 calculations on behalf of the councils within the Strathclyde Pension Fund. The funded obligation is noted below: £'000 % Active Members 338,771 44.7% Deferred Members 73,548 9.7% Pensioner Members 310,895 41.1% Pre-Local Government Re-organisation Members 33,888 4.5% 757,102 100% The movement during the year on the defined obligation is noted as: 2021/22 2022/23 £'000 £'000 1,137,958 Opening balance 1,107,892 51,324 Current service cost 48,832 23,072 Interest cost 30,292 6,137 Contributions by Members 6,446 (7,291) Actuarial gains/losses – change in demographic assumptions (27,468) (78,984) Actuarial gains/losses – change in financial assumptions (400,621) 1,722 Actuarial gains/losses – other experience 62,154 0 Past service costs/(gains) 190 (2,914) Estimated unfunded benefits paid (2,942) (23,132) Estimated benefits paid (24,253) 1,107,892 Closing Balance as at 31 March 800,522 Page 379
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Page 78 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 The movement during the year on the fair value of the employer’s assets is: 2021/22 2022/23 £'000 £'000 974,343 Opening balance 1,052,202 55,488 Expected return on assets (44,999) 0 Actuarial gains/ losses - other experience (5,870) 19,515 Interest Income 28,453 6,137 Contributions by Members 6,446 19,851 Contributions by employer 21,084 2,914 Contributions in respect of unfunded benefits 2,942 (2,914) Estimated unfunded benefits paid (2,942) (23,132) Estimated benefit paid (24,253) 1,052,202 Closing Balance as at 31 March 1,033,063 The Council’s share of the pension fund asset at 31 March 2023 comprised: Quoted prices in Active Markets Prices not quoted in Active Market Total Quoted prices in Active Markets Prices not quoted in Active Market Total £'000 £'000 £'000 Asset Category £'000 £'000 £'000 231,344 501 231,845 Equity Securities 201,732 1,853 203,585 205,983 205,983 Private Equity 253,914 253,914 88,736 88,736 Real Estate 85,175 85,175 5,837 493,028 498,865 Investment funds and unit trusts 4,450 466,368 470,818 26,418 355 26,773 Cash and Cash Equivalent 14,288 5,283 19,571 263,599 788,603 1,052,202 Total 220,470 812,593 1,033,063 2021/22 2022/23 Assets are now held at bid value. Asset and Liability Matching strategy The main fund of Strathclyde Pension Fund does not have an asset and liability matching strategy (ALM) as this is used mainly by mature funds. The Fund does match, to the extent possible, the types of assets invested to the liabilities in the defined benefit obligation. As is required by the pensions and investment regulations, the suitability of various types of investment has been considered, as has the need to diversify investments to reduce the risk of being invested into narrow a range. The Fund invests in equities, bonds, properties and in cash. The Fund has now taken account of the national change to the Local Government Pension Scheme in Scotland such as the new career average revalued earning scheme (CARE) for future accruals. The actuarial valuation states that assets held on the valuation date were sufficient to cover 129% (2021/22 95%) of accrued liabilities at that date. Page 380
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Page 79 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 The principal actuarial assumptions used at the Balance Sheet date are as follows: 31 March 2022 31 March 2023 Long term expected return on assets 3.20% Pension increase rate 2.95% 3.90% Salary Increase rate 3.65% 2.70% Discount rate 4.75% Mortality Based on these assumptions, the average future life expectancies at the age of 65 are: 19.6 Current pensioners – Men 19.4 22.4 Current pensioners - Women 22.0 21.0 Future pensioners – Men 20.0 24.5 Future pensioners - Women 23.8 The above excludes any net pension liability that the Council may have to contribute to in respect of the Joint Boards of Partnership for Transport and Valuation. These costs are shown within each Joint Board’s Balance Sheet and the Council may be required to make an increased constituent contribution in the years when the liability fails to be met. The principal risks to the Council of the scheme are the longevity assumptions, statutory changes to the scheme, structural changes to the scheme (i.e. large-scale withdrawals from the scheme), changes to inflation, bond yields and the performance of the equity investments held by the scheme. These are mitigated to a certain extent by the statutory requirements to charge to the General Fund and Housing Revenue Account the amounts required by statute as described in the accounting policies note. Sensitivity Analysis In order to quantify the impact of a change in the financial assumptions used, the actuaries have calculated and compared the value of the scheme liabilities as at 31 March 2023 on varying bases. The approach taken is consistent with that adopted to derive at the IAS19 figures provided. To quantify the uncertainty around life expectancy, the actuaries have calculated the difference in cost to the employer of a one year increase in life expectancy. For sensitivity purposes, this is assumed to be an increase in the cost of benefits of around 3% to 5%. In practice the actual cost of a one year increase in life expectancy will depend on the structure of the revised assumption (i.e. if improvements to survival rates predominately apply at younger or older ages). The figures have been derived based on the membership profile of the Employer as at the date of the most recent actuarial valuation. The estimation of defined benefit obligation is sensitive to the actuarial assumptions. The sensitivity regarding the principal assumptions used to measure the schemes liabilities are set out below: Approximate % increase to Employer Liability Approximate monetary Amount (£'000) Real Discount Rate (0.1% decrease ) 2% 12,594 1 year increase in the member life expectancy 4% 32,021 Salary Increase Rate (0.1% increase) 0% 1,264 Pension Increase Rate (0.1% increase) 1% 11,514 The total contribution expected to be made to the Local Government pension scheme for 2023/24 is £21.231m. Note 23 Termination Benefits The Council terminated the contracts of a number of employees in 2022/23. Details of which are included in Table 8 of the Remuneration report. Page 381
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Page 80 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 24 Other Reserves Reserves are created by appropriating amounts from the General Fund balance in the Movement in Reserves Statement. When expenditure to be financed from a reserve is incurred, it is charged to the appropriate service within the CIES. The reserve is then appropriated back into the General Fund balance in the Movement in Reserves Statement so that there is no net charge against Council Tax for the expenditure. Usable Reserves Usable reserves are those that the Council is able to apply to fund expenditure or reduce taxation and comprise of both capital and revenue reserves. Movement in the revenue reserves during the year are outlined in the Movement in Reserves Statement, however, a summary is shown below: 31 March 2022 31 March 2023 £'000 £'000 15,020 General Services 30,309 2,734 Housing Revenue Account 2,635 30 Capital Receipts Reserve 30 42 Capital Grants and Receipts Unapplied 42 758 Capital Reserve 0 468 Other Reserves 262 19,052 Total Usable Reserves 33,278 General Fund Revenue Reserve: The General Fund is held for services provided by the Council through Revenue Support Grant funded through the Scottish Government and council tax. It excludes the Housing Revenue Account. This reserve holds funds not yet spent. Housing Revenue Account Revenue Reserve: The Council is required by the Local Government and Housing Act (Scotland) 1987 to keep a Housing Revenue Account (HRA) which records all revenue expenditure and income relating to the provision of council dwellings and related services. This reserve holds funds not yet spent. Capital Receipts Reserves: Capital receipts from asset sales are retained within this Reserve and used to fund planned capital expenditure. Capital Grant and Reserves Unapplied Reserve: Grants and other contributions given to the Council are retained within this Reserve until all conditions agreed by the grant provider are satisfied. This Reserve is also used to fund transformational projects from capital receipts. Capital Items Replacement Fund (Other):This reserve holds funds which are retained and used for the renewal or repair of school non-current assets. Capital Reserve: This reserve holds funds which are retained for the funding of the Public Private Partnership (PPP) unitary charge for schools regeneration on a specific annual phased amount (also known as the Schools Regeneration Sinking Fund). This was fully utilised in 2022/23. Unusable Reserves Certain reserves are kept to manage the accounting process for non-current assets, financial instruments, retirement and employee benefits and do not represent usable resources for the authority. These reserves are explained on the following pages. Summary of Year-end Balances The total for Unusable Reserves in the Balance Sheet is made up of the following reserves: Page 382
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Page 81 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 31 March 2022 31 March 2023 £'000 £'000 254,522 Capital Adjustment Account 219,601 124,778 Revaluation Reserve 175,725 (55,690) Pension Reserve (15,390) (4,100) Employee Statutory Adjustment Account (4,373) (11,440) Financial Instruments Adjustment Account (10,564) 308,070 Total Unusable Reserves 364,999 Movement on balances - Capital Adjustment Account The Capital Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. 31 March 2022 31 March 2023 £'000 £'000 284,963 Carry forward balance as at 31 March 254,522 0 Service concession adjustment (29,734) 284,963 Opening Balance as at 1 April 224,788 (31,713) Depreciation (36,246) (34,112) Impairment (393) 7,739 Increase in Depreciation Caused by Revaluation 2,343 617 Write off Revaluation reserve Balance (disposals) 0 (3,268) Disposal of Non-Current Assets (337) 7,746 Government Grants Applied 17,263 13,247 Capital Financed by Current Revenue 2,685 9,303 Long Term Debt Payment 9,498 0 To/from other statutory reserves 0 254,522 Closing Balance 219,601 Movement on Balances – Revaluation Reserve The revaluation reserve contains the gains made by the Council arising from increases in the value of its property, plant and equipment (and intangible assets). The reserve contains only revaluation gains accumulated since 1 April 2007, the date that the reserve was created. Accumulated gains arising before that date are consolidated into the balance on the capital adjustment account. £'000 £'000 126,924 Opening Balance 124,788 5,681 Unrealised Gains on Revaluation of Assets 58,088 (869) Impairments and Losses on Revaluation of Assets (4,808) (617) Write off revaluation Balance (Disposal) 0 (6,341) Depreciation due to Revaluation of Assets (2,343) 124,778 Closing Balance 175,725 Movement on Balances – Pensions Reserve The pension reserve absorbs the timing differences arising from the different arrangements for accounting for post- employment benefits and for funding benefits in accordance with statutory provisions. The Council accounts for post- employment benefits in the comprehensive income and expenditure as the benefits are earned by employees accruing Page 383
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Page 82 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs. However statutory arrangements requires benefits earned to be financed as the Council makes employer’s contributions to pension funds or eventually pays any pension for which it is directly responsible. 31 March 2022 31 March 2023 £'000 £'000 (163,615) Opening Balance (55,690) 140,041 Actuarial (Loss)/Gain 67,135 22,765 Employer Contributions 24,026 (54,881) Reversal of IAS19 Entries (50,861) (55,690) Closing Balance (15,390) Movement on Balances - Employee Statutory Adjustment Account The Employee Statutory Adjustment Account absorbs the differences that would otherwise arise on the General Fund balance from accruing for compensated absences earned but not taken in the year e.g. annual leave entitlement carried forward at 31 March. 31 March 2022 31 March 2023 £'000 £'000 (4,388) Opening Balance (4,100) 288 Staff Accrual Movement (273) (4,100) Closing Balance (4,373) Movement on Balances - Financial instrument Adjustment Account The Financial Instruments Adjustment Account absorbs the timing difference arising from the different arrangements for accounting for income and expenses relating to certain financial instruments and for bearing losses or benefiting from gains per statutory provisions. The Council uses the account to manage premiums paid on the early redemption of loans. Premiums are debited to the comprehensive income and expenditure statement when they are incurred, but reversed out of the general fund balance to the account in the movement in reserves statement. Over time, the expense is posted back to the general fund balance in accordance with statutory arrangements for spreading the burden on council tax. In the Council’s case, this period is the unexpired term that was outstanding on the loans when they were redeemed. As a result, the balance on the account as at 31 March 2023 will be charged to the General Fund over the next thirty-seven years. 31 March 2022 31 March 2023 £'000 £'000 (12,163) Opening Balance (11,440) 708 Annual Write off of Premiums and Discounts 662 0 New Premiums and Discounts 0 15 Annual EIR Adjustment to Stepped Interest Instruments 214 (11,440) Closing Balance (10,564) Note 25 Related Parties The Council is required to disclose material transactions with related parties – bodies or individuals that have the potential to control or influence the Council or to be controlled or influenced by the Council. Disclosure of these transactions and balances allows readers to assess the extent to which the Council might have been constrained in its ability to operate independently or might have secured the ability to limit another party’s ability to bargain freely with the Council. The Scottish Government The Scottish Government has significant influence over the general operations of the Council, being responsible for providing the statutory framework within which the Council operates. The Scottish Government also provides the majority of the Council’s funding in the form of grants and prescribes the terms of many of the transactions that the Page 384
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Page 83 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Council has with other parties (such as Council Tax bills and Housing Benefits). Grants received from the Scottish Government are disclosed in Note 9 Taxation and Non-specific Grant Income on pages 57. Elected Members Elected Members of the Council have direct control over the Council’s financial and operating policies. The total of members’ allowances paid in 2022-23 is shown on page 28 within the Remuneration Report. There are no other significant related party transactions with members of the Council. Elected Members are required to declare an interest if he or she believes that there may be a perception that their decision making may be influenced in any way by a personal interest. Should this arise, the relevant Member does not take part in any discussion or decision relating to that interest. The Register of Interests of each Member is available on the Councils’ website: https://www.west- dunbarton.gov.uk/council/councillors-and-committees/councillors-allowances/. Senior Officers Senior Officers, as listed within the Remuneration Report on page 25, are required to declare an interest if he or she believes that there may be a perception that their decision making may be influenced in any way by a personal interest. Entities Controlled or Significantly Influenced by the Council The Council has entered into a number of transactions under subsidiaries, associates and other trading arrangements deemed to be a related party mainly through the Council’s ability to exert influence over the entity through its representation on the respective Boards. The relevant transactions with the bodies are detailed below. Income from Related Parties Expenditure to Related Parties Amounts due to Related Parties Amounts owed by Related Parties Income from Related Parties Expenditure to Related Parties Amounts due to Related Parties Amounts owed by Related Parties £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Subsidiaries West Dunbartonshire Leisure Trust (71) 5,706 1,025 83 (132) 6,085 872 252 Clydebank Property Company (50) 273 0 0 (50) 362 0 0 West Dunbartonshire Energy LLP 0 397 0 397 0 308 0 705 Associates and Joint Ventures Dumbartonshire and Argyll and Bute Valuation Joint Board (123) 736 976 0 (123) 779 931 0 West Dunbartonshire Health & Social Care Partnership (74,925) 74,925 0 0 (83,178) 83,178 0 0 Non-Material Interest in Other Entities Strathclyde Partnership for Transport 0 2,124 11 0 0 2,244 37 0 Strathclyde Concessionary travel Scheme Joint Board 0 163 0 0 0 163 0 0 Strathclyde Pension fund 0 26,284 2,043 0 0 29,461 2,218 0 Clydebank Municipal Bank 0 62 1,181 84 0 66 0 0 2021-22 2022-2023 *Further details of these entities are disclosed in the group Accounts Note 30 Combining Entities. Page 385
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Page 84 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 26 Agency Services Transactions whereby the Council provides a service on behalf of external organisations are noted below. 2021/22 Net Payment/ (receipt) Organisation Description 2022/23 Receipts 2022/23 Payment (Debtor)/ Creditor at 31.03.23 £'000 £'000 £'000 £'000 14,412 Scottish Water Water and sewerage charges collected by Council and paid over 15,419 200 (76,298) Scottish Government Non Domestic Rates (83,772) (774) Note 27 Financial Guarantees In terms of West Dunbartonshire Leisure Trust’s admission to the Strathclyde Pension Scheme, the Council has guaranteed to accept liability for any unfunded pension costs should they cease to exist, withdraw from the Scheme or become unable to meet any unfunded liability. The Council has not quantified the possible liability. Note 28 Contingent Assets and Liabilities A contingent asset arises where an event has taken place that gives the Council a possible asset whose existent will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Council. Contingent assets are not recognised in the Balance Sheet but disclosed in a note to the accounts where it is probable that there will be an inflow of economic benefits. A contingent liability arises where an event has taken place that gives the Council a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events, not wholly within the control of the Council. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably. Contingent liabilities are not recognised in the Balance Sheet but are disclosed as a note to the accounts, unless the possibility of an outflow of resources embodying economic benefits or service potential is remote. The Council has a residual contingent liability relating to those workers who have yet to settle their pay protection claims. The Council has a potential contingent liability relating to paid holiday entitlement, with approximately 400 live cases. Following an EU ruling UK employers are bound by employment law in relation to the definition of paid holiday entitlement. Case law has clarified that all pay elements intrinsically linked to the performance of a contract of employment should be included in the calculation of holiday pay, including payments made for additional working. The Council adjusted the method of calculation in August 2014 (backdated in line with the leave year to April) and has included on-going costs within the long term financial strategy. The legal position remains subject to challenge however, given the action taken, any potential claim by employees for any retrospective payments is likely to be minimal. As a result, whilst recognising there may be such a requirement, it is not possible to quantify such. The Council has an outstanding Employment Tribunal, if the Employees’ action is successful this will result in a liability to the Council, the amount of which cannot be reliably estimated as at 31 March 2023. The Limitation (Childhood Abuse) (Scotland) Act 2017 Section 1 removes the limitation period for actions of damages in respect of personal injuries resulting from childhood abuse. At this stage the extent of any potential liability is unknown. The Council is not aware of any other contingent assets or liabilities which may be outstanding. Note 29 Fees Payable to External Auditors In 2022-23 the following fees relating to external audit and inspection were incurred alongside comparative figures for 2021-22: Page 386
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Page 85 Notes to the Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 2021-22 2022-23 £'000 Auditor's Remuneration £'000 281 Fees payable to External Auditors with regard to external audit services carried out by the appointed Auditor 323 281 Total Remuneration 323 The figure above includes fees for the audit of the Council’s charitable trusts. Forvis Mazars have been appointed as external auditors for 2022-23. Forvis Mazars did not undertake any non-audit work in 2022-23. Note 30 Events After the Balance Sheet Date These are events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statement of Accounts is authorised for issue. An adjustment is made to the financial statements where there is evidence that the event relates to the reporting period; otherwise the financial statements are not adjusted, and where the amount is material, a disclosure is made in the notes. The Chief Officer - Resources issued the unaudited Statement of Accounts on 30 June 2023. There have been no material events after the balance sheet date which necessitate revision of figures in the financial statements or notes thereto including contingent assets or liabilities. Page 387
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Page 86 Housing Revenue Account West Dunbartonshire Council Annual Accounts 2022-23 Housing Revenue Account Movement on the Housing Revenue Account Statement This statement shows the movement in the year on the Housing Revenue Account reserve. The surplus or (deficit) on the housing revenue account income and expenditure statement is reconciled to the surplus or deficit for the year on the housing revenue account balance, calculated in accordance with the Housing (Scotland) Act 1987. 2021/22 2022/23 £'000 £'000 (7,364) Balance on the Housing Revenue Account as at 1 April (2,734) 19,269 Total Comprehensive Income and Expenditure 262 (1,169) Pension Scheme Adjustments (1,104) 7 Financial Instruments Adjustment (72) 35 Holiday Pay Adjustment 0 (32,487) Reversal of entries included in the Surplus/Deficit on the Provision of Services in relation to capital expenditure (8,677) (33,614) Adjustments to the revenue resource (9,853) 0 Net gain or loss on sale of non-current assets 0 5,495 Statutory Repayment of Debt (Loans Fund Advances) 6,510 13,175 CFCR 2,911 18,670 Adjustments between Revenue and Capital Resources 9,421 (14,944) Total Statutory Adjustments (432) 305 Transfers (to)/from Other Statutory Reserves 269 4,630 (Increase)/Decrease in Year 99 (2,734) Balance on the Housing Revenue Account as at 31 March (2,635) Housing Revenue Account Income and Expenditure Statement The HRA income and expenditure statement shows the economic cost in the year of providing housing services in accordance with generally accepted accounting practices rather than the amount to be funded from rents and government grants. The Council charges rents to cover expenditure in accordance with regulations; this may be different from the accounting cost. The increase or decrease in the year, on the basis of which rents are raised, is shown in the Movement on the HRA Statement. 2021-22 2022/23 £'000 £'000 Income (42,850) Dwelling Rents (net of voids) (43,656) (251) Other Rents (244) (1,574) Other Income (2,027) (44,675) (45,927) Expenditure 12,750 Repairs and Maintenance 15,255 12,680 Supervision and Management 14,315 33,456 Depreciation and Impairment 13,178 273 Other Expenditure 435 59,159 43,183 14,484 Net Cost of Service as Included in the Council Comprehensive Income and Expenditure Statement (2,744) HRA Share of the Operating Income and Expenditure Included in the Comprehensive Income and Expenditure Statement (969) Recognised Capital Income (Grants, Contributions and Donations) (4,502) 0 Gain or Loss on the Sale of HRA Non Current Assets 0 4,717 Interest Payable and Similar Charges 6,922 0 Amortisation of Premiums and Discounts 0 1,048 Impairment Loss - Debtors 821 (11) HRA Interest and Investment Income (235) 4,785 3,006 19,269 (Surplus)/Deficit for the year on HRA Services 262 Page 388
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Page 87 Housing Revenue Account West Dunbartonshire Council Annual Accounts 2022-23 Notes to the Housing Revenue Account Income and Expenditure Statement Note 1 The number and types of dwellings in the council’s stock The Council was responsible for managing 10,423 dwellings during 2023/24 (10,378 in 2021/22). The following shows an analysis of these dwellings by type. 2021/22 2022/23 Number at 31 March 2022 Average weekly rent Number at 31 March 2023 Average weekly rent £ Type of Dwelling £ 2,728 79.47 Two-apartment 2,745 81.07 4,676 81.71 Three-apartment 4,701 83.37 2,616 86.89 Four-apartment 2,618 88.63 338 94.25 Five-apartment 338 96.13 14 109.23 Six-apartment 14 111.41 2 86.98 Seven-apartment 3 238.15 2 95.49 Eight-apartment 2 97.40 2 95.49 Nine-apartment 2 97.40 10,378 Total 10,423 Note 2 Dwelling Rents The £43.656m noted in the Income and Expenditure Statement is the total rental income less voids chargeable for the year of £1.740m (2021/22 £1.373m). It excludes irrecoverables and impaired rent receivables. Average rents were £84.57 per week in 2022/23 (£82.88 per week in 21/22). Note 3 Other Rents This is the total income received from travelling person site rentals, lock-ups and shops less voids chargeable for the year, but excludes irrecoverables and impaired rent receivables. Lost rents from lock-ups in 2022/23 were £0.078m (£0.072m in 2021/22). Note 4 Rent arrears As at 31 March 2023, total rent arrears amounted to £4.248m (£4.027m as at 31 March 2022). This is 9.36% of the total value of rents due at 31 March 2023. It should be noted that the total arrears do not all relate to 2022/23 and the year on year movement in value of arrears is an increase of £0.208m. Note 5 Impairment of Doubtful Receivables In the financial year 2022/23, the rental impairment of doubtful receivables has been increased by £0.116m (£0.216m increase 2021/22). The impairment to cover loss of rental income stands at £2.560m as at 31 March 2023 (2021/22: £2.444m) – equivalent of 60.27% (62.36% 2021/22) of the total value of rents arrears at that date. Page 389
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Page 88 Council Tax Income Account West Dunbartonshire Council Annual Accounts 2022-23 Council Tax Income Account The Council Tax Income Account shows the gross income raised from Council Taxes levied and deductions made under statute. The resultant net income is transferred to the Comprehensive Income and Expenditure Statement of the Council. 2021/22 2022/23 £'000 £'000 54,277 Gross council tax 56,288 Less: (8,674) Council Tax Reduction Scheme Discount* (8,573) (6,745) Other discounts and reductions (7,092) (559) Provision for bad and doubtful debts (463) (92) Adjustments for prior years (847) 38,207 Transfer to General Fund 39,313 Dwellings are valued by the Assessor and placed within a valuation band ranging from the lowest “A” to the highest “H”. The Council Tax charge is calculated using the Council Tax Base, Band D equivalent as below. This value is then decreased or increased dependent upon the band of the dwelling. The charge for each band for 2022-23 was as follows: 2021/22 2022/23 £ per year £ per year 862.37 Band A 888.24 1,006.09 Band B 1,036.28 1,149.82 Band C 1,184.32 1,293.55 Band D 1,332.36 1,699.58 Band E 1,750.57 2,102.02 Band F 2,165.09 2,533.20 Band G 2,609.21 3,169.20 Band H 3,264.28 Calculation of the Council Tax base Band No of Dwellings No of Exemptions Disabled Relief Discounts 25% Discounts 50% CTRS Discount Total Dwellings Ratio to Band D Band D Equivalent A(Disabled) 0 0 21 8 0 9 27 200/360 16 Band A 7,537 389 41 4,294 183 3,661 8,353 240/360 5,569 Band B 16,951 608 (7) 8,150 216 5,840 18,037 280/360 14,029 Band C 7,830 200 (2) 3,105 50 1,859 8,096 320/360 7,196 Band D 6,191 133 15 2,044 22 706 6,028 360/360 6,028 Band E 4,821 51 (45) 1,127 19 248 4,586 473/360 6,025 Band F 1,753 16 (13) 265 9 49 1,685 585/360 2,738 Band G 841 8 (8) 112 2 24 809 705/360 1,584 Band H 66 0 (2) 6 6 2 61 882/360 149 43,334 (347) 42,987Council Tax Base Impairment of Doubtful Receivables Discounts, Reliefs and Exemptions A council tax bill is reduced by 25% where a property has only one occupant or 50% where the property is empty. For council tax purposes certain students are not regarded as occupants. Certain properties may also qualify for relief if the property has been adapted for a disabled person. Properties undergoing major renovation or held pending demolition may be awarded exemption from council tax. Page 390
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Page 89 Non-Domestic Rates Income Account West Dunbartonshire Council Annual Accounts 2022-23 Non-Domestic Rates Income Account The Non-Domestic Rate Income Account is an agent’s statement that reflects the statutory obligation for billing authorities to maintain a separate Non-Domestic Rate Account. The statement shows the gross income from the rates and deductions made under the Local Government (Scotland) Act 1975 as amended by the Local Government Finance Act 1992 on non-domestic property. The net income is paid to the Scottish Government as a contribution to the national non-domestic rate pool. 2021/22 2022/23 £'000 £'000 94,019 Gross rates levied 96,645 Less: (14,830) Reliefs and other deductions (8,997) (940) Provision for bad and doubtful receivables (966) 78,249 Net non-domestic rate income 86,682 (1,801) Adjustments for prior years (1,029) 810 Adjustments for prior years - doubtful receivable 466 77,258 Total Non Domestic Rate Income (before retention) 86,119 0 Non Domestic Rate Income Retained by the Council (BRIS) 0 77,258 Contribution to National Non Domestic Rate Pool 86,119 (81,408) Distribution from National Non Domestic Rate Pool (107,740) (4,150) Net contribution to/(from) National Non Domestic Rate Pool (21,621) (81,408) Net Non Domestic Rate Income to Comprehensive Income & Expenditure Statement (107,740) The non-domestic rates pool operates on a cash accounting basis and as such the non-domestic rate income account within the Council is calculated on a similar basis. Analysis of Rateable Values Analysis of rateable Values: £ Rateable value at 1/4/22 183,807,915 Running roll (full year RV) 1,862,745 Rateable value at 31/3/23 185,670,660 Less: partially exempt (721,750) Less: wholly exempt (1,506,675) Net rateable value at 31 March 2023 183,442,235 Non-Domentic Rate Charge The amount paid for non-domestic rates is determined by the rateable value placed on the property by the Assessor multiplied by the rate per £ announced each year by the government. The national non-domestic rate poundage set by the First Minister for Scotland for 2022/23 was: 2021-22 2022-23 Pence Pence 49.8p Basic Property Rate per £ 49.8p 0.5p Suplementary Rate per £ for Properties between £51,000 and £100,000 1.3p 1.8p Suplementary Rate per £ for Properties over £100,000 2.6p Page 391
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Page 90 Common Good Fund West Dunbartonshire Council Annual Accounts 2022-23 Common Good Fund The Council administers the Dumbarton Common Good Fund Account. The Fund is applied for the benefit of the people of Dumbarton. The figures below summarise the income and expenditure for the year as well as the assets and liabilities as at 31 March 2023. The fund does not represent assets of the Council and has not been included within the Balance Sheet on page 34. Common Good Income and Expenditure Account for the year ended 31 March 2023 Usable Reserves Unusable Reserves Usable Reserves Unusable Reserves 2022-2023 Revenue Revaluation Reserve Total Revenue Revaluation Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 260 260 Gross Expenditure 287 287 (320) (320) Gross Income (320) (320) (60) (60) Cost of Service (33) (33) Interest Payable and Similar Charges - - Interest and Investment Income (11) (11) - - Financing and Investment Income and Expenditure (11) (11) (60) (60) (Surplus) or Deficit on Provision of Services (44) (44) Other Income and Expenditure - - Unrealised gains on revaluation of land and buildings - - (60) (60) (Surplus)/Deficit for the Year (44) (44) (521) (3,485) (4,006) Balance on Reserves brought forward (581) (3,486) (4,068) (581) (3,485) (4,066) Balance on reserves carried forward (625) (3,486) (4,112) 2021/22 2022/23 Common Good Balance Sheet as at 31 March 2023 31 March 2022 31 March 2023 £'000 £'000 Non-current Assets 3,485 Investment properties 3,485 Current Assets 586 Investments – West Dunbartonshire Council 625 3 Debtors 8 Current Liabilities (8) Creditors falling due within one year (8) 4,066 Total assets 4,110 Funds 3,485 Capital Adjustment Account 3,486 581 General Fund 625 4,066 Total Funds 4,111 Page 392
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Page 91 Trust Funds West Dunbartonshire Council Annual Accounts 2022-23 Trust Funds The Council acts as sole or custodian trustee for a number of trust funds, which may be used for various purposes depending on the terms of the Trust. In all cases, the funds do not represent assets of the Council and they have not been included within the Balance Sheet on page 34. Under the provisions of the “2005 Act” and the “Accounts Regulations” above, all registered charities in Scotland are required to prepare financial statements which must be externally scrutinised. The trust funds below are registered, under one registration, with the Office of the Scottish Charity Regulator. Management has reviewed the current arrangements for the trust funds to ensure the current arrangements reflect the needs of the Council and ensure that all obligations are met. Responsibility for the compliance with the new regulations was delegated to the Chief Officer - Resources. Receipt and Payment Account (Surplus)/ (Surplus)/ Receipts Payments Deficit ReceiptsPayments Deficit £'000 £'000 £'000 £'000 £'000 £'000 0 0 0 Dunbartonshire Educational Trust Scheme 1962 (2) 0 (2) Endowments amalgamated to form trust 0 0 0 McAuley Prize for Mathematics 0 0 0 Provide prizes for those studying maths & computing (2) 0 (2) Alexander Cameron Bequest (4) 6 2 To encourage and support one-off community activities in Clydebank 0 19 19 Dr A K Glen Fund 0 5 5 Provide outings for Pensioners resident in Dumbarton 0 0 0 UIE Award 0 0 0 For students studying apprenticeships or training in industry (2) 19 17 Total (6) 11 5 2021/22 2022/23 Statement of Balances as at 31 March 2023 01 April 2022 (Surplus)/deficit for year 31 March 2023 Other Assets and Investments £'000 £'000 £'000 Dunbartonshire Educational Trust Scheme 1962 (91) (2) (93) McAuley Prize for Mathematics (22) 0 (22) Alexander Cameron Bequest (120) 2 (118) Dr A K Glen Fund (5) 5 0 UIE Award (25) 0 (25) Total (263) 5 (258) Page 393
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Page 92 Group Comprehensive Income and Expenditure Statement West Dunbartonshire Council Annual Accounts 2022-23 Group Comprehensive Income and Expenditure Statement This statement shows the accounting cost in year, of providing services in accordance with relevant International Financial Reporting Standards, rather than the amount to be funded from taxation. The council raises taxation to cover expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement. 2021/22 restated * 2021/22 Restated * 2021/22 Restated* 2022/23 2022/23 2022/23 Gross Gross Net Gross Gross Net Expenditure Income Expenditure Expenditure Income Expenditure £'000 £'000 £'000 Note £'000 £'000 £'000 Service 70,085 (37,241) 32,844 Corporate Services 66,881 (37,854) 29,027 133,958 (17,445) 116,513 Educational Services 132,501 (21,061) 111,440 61,498 (13,044) 48,454 Infrastructure, Regeneration & Economic Development 62,625 (14,114) 48,511 39,614 (31,853) 7,761 Housing and Communities 38,209 (32,211) 5,998 58,847 (44,363) 14,484 Housing Revenue Account 43,183 (45,927) (2,744) 7,035 (8,501) (1,466) Miscellaneous Services 10,665 (8,964) 1,701 191,943 (107,449) 84,494 Health and Social Care Partnership 214,612 (122,556) 92,056 2,517 0 2,517 Requisitions 2,215 0 2,215 8,150 (3,050) 5,100 Subsidiaries 10,106 (4,521) 5,585 573,647 (262,946) 310,701 Net Cost of Service 580,997 (287,208) 293,789 998 Other Operating Expenditure and (income) - (Gain) / loss on Disposal of non-current assets (365) 22,573 Financing and Investment (Income) and Expenditure (Note 5) 24,082 (258,637) Taxation and Non-specific Grant Income (Note 6) (267,663) 75,635 Group (Surplus)/Deficit on Provision of Services 49,843 (7,210) Share of other Comprehensive Income and Expenditure of Associates and Joint Ventures 4,269 (6,051) (Surplus)/Deficit arising from revaluation of non-current assets (52,872) (300) (Surplus)/Deficit on revaluation of assets held at fair value through other comprehensive income 0 (143,519) Remeasurement of the net defined benefit pension liability (66,962) (157,080) Other Comprehensive (Income) and Expenditure (115,565) (81,445) Total Comprehensive (Income) and Expenditure (65,722) *The 2021/22 balances have been restated to reflect changes to the Group consolidation as detailed in Note 35. Page 394
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Page 93 Group Balance Sheet West Dunbartonshire Council Annual Accounts 2022-23 Group Balance Sheet The balance sheet shows the value, as at the balance sheet date, of the assets and liabilities recognised by the group. The net assets (assets less liabilities) are matched by the reserves held. Reserves are reported in two categories (pages 32 and 33 provides a further explanation). Details of the movement in the balances as a result of consolidation are shown on pages 97 and 98. Restated* Opening Balance as at 1 April 2021 Restated* 31/03/2022 31 March 2023 £'000 £'000 Note £'000 1,049,247 1,052,257 Property, Plant and Equipment 11 1,132,159 7,377 7,390 Investment Properties 6,967 282 623 Intangible Assets 12 723 22 21 Long Term Debtors 20 1,406 1,485 Heritage Assets 13 1,518 216 212 Long Term Investments 199 10,904 17,827 Investment in Associates & Joint Ventures 13,513 1,069,454 1,079,815 Long Term Assets 1,155,099 7,755 5,417 Non-Current Assets Held for Sale 14 5,417 1,355 1,311 Inventories 1,378 66,490 67,099 Short Term Debtors 23 61,047 15,735 5,987 Cash and Cash Equivalents (net) 26 5,782 91,335 79,814 Current Assets 73,624 (73,106) (75,319) Short Term Creditors 28 (75,717) (53) (76) Donated Inventories 0 0 Provisions (3,428) (3,677) (3,370) PPP 22 (3,032) (263,105) (269,923) Short Term Borrowing 27 (318,727) (339,941) (348,688) Current Liabilities (400,904) (92,615) (89,115) PPP and Finance Lease Liabilities 22 (86,084) (284,798) (307,485) Long Term Borrowing 27 (300,471) (166,842) (55,517) Net Pensions Liability 13 (16,042) (1,263) (2,093) Capital Grants Receipts in Advance 10 (3,398) (747) (702) Liabilities in associates (72) (546,265) (454,912) Long Term Liabilities (406,067) 274,583 356,029 Net Assets 421,752 Represented by: (39,925) (41,074) Usable Reserves MIR/30 (50,636) (234,658) (314,955) Unusable Reserves MIR/31 (371,116) (274,583) (356,029) Total Reserves (421,752) *The Balance Sheet has been restated to reflect changes to the Group consolidation as detailed in Note 35 Page 395
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Page 94 Group Movement in Reserves Statement West Dunbartonshire Council Annual Accounts 2022-23 Group Movement in Reserves Statement This statement shows the movement in the year on the different reserves held by the group, analysed into ‘usable reserves’ (i.e. those that can be applied to fund expenditure or reduce local taxation) and other reserves. The surplus or (deficit) on the provision of services line shows the true economic cost of providing the group’s services, more details of which are shown in the Comprehensive Income and Expenditure Statement. These are different from the statutory amounts required to be charged to the General Fund balance and the Housing Revenue Account for council tax setting and dwelling rent setting purposes. The net increase/decrease before transfer to earmarked reserves line shows the statutory general fund balance and housing revenue account balance before any discretionary transfers to or from earmarked reserves undertaken by the Council. • *The balance as at 31 Match 2021 has been restated to reflect changes to the Group consolidation as detailed in Note 35. General Fund balance HRA Balance Capital Fund CapitalRe serve Capital Grants and Receipts Unapplied Account Other Reserves Usable Reserves Share of Subsidiaries, Associates & Joint Ventures Usable Reserves Group usable reserves Unusable Reserves Share of Subsidiaries, Associates & Joint Ventures Unusable Reserves Group Unusble Reserves Total Reserves £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 2022/23 Balance at 31 March 2022 Carried Forward (15,020) (2,734) 0 (758) (72) (468) (19,052) (22,022) (41,074) (308,070) (6,885) (314,955) (356,029) Adjustment to the statutory repayment of debt for service concession arrangements - permitted flexability* (29,734) (29,734) (29,734) 29,734 29,734 0 Opening Balance at 1 April 2022 (44,754) (48,786) (22,022) (70,808) (278,336) (6,885) (285,221) (356,029) Movement in Reserve 2022/23 0 Total Comprehensive Expenditure and Income 49,009 262 49,271 4,764 54,035 (120,425) 667 (119,758) (65,723) Adjustments between accounting basis and funding basis under regulations (Note 6) (32,629) (432) (702) 0 (33,763) (100) (33,863) 33,763 100 33,863 0 Net (Increase)/Decrease before Transfers to Other Statutory Reserves 16,380 (170) (702) 0 0 0 15,508 4,664 20,172 (86,662) 767 (85,895) (65,723) (50,636) Transfers to/from other statutory reserves (1,935) 269 702 758 0 206 0 0 0 #REF! Closing Balance at 31 March 2023 (30,309) (2,635) 0 0 (72) (262) (33,278) (17,358) (50,636) (364,998) (6,118) (371,116) (421,752) 2021/22 Balance at 31 March 2021 Carried Forward (Restated*) (15,028) (7,364) (1,469) (42) (308) (24,211) (15,714) (39,925) (231,721) (2,936) (234,657) (274,582) 0 Movement in Reserve 2021/22 Total Comprehensive Expenditure and Income 55,921 19,269 75,190 (6,308) 68,882 (146,380) (4,093) (150,473) (81,591) Adjustments between accounting basis and funding basis under regulations (Note 6) (53,525) (14,944) (403) 0 (1,867) (70,739) 0 (70,739) 70,739 144 70,883 144 Net (Increase)/Decrease before Transfers to Other Statutory Reserves 2,396 4,325 (403) 0 (1,867) 0 4,451 (6,308) (1,857) (75,641) (3,949) (79,590) (81,447) Transfers to/from other statutory reserves (2,388) 305 403 711 1,837 (160) 708 708 (708) 0 (708) 0 Closing Balance at 31 March 2022 (15,020) (2,734) (758) (72) (468) (19,052) (22,022) (41,074) (308,070) (6,885) (314,955) (356,029) (41,074) Council Usable Reserves Page 396
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Page 95 Group Cash Flow Statement West Dunbartonshire Council Annual Accounts 2022-23 Group Cash Flow Statement The cash flow statement shows the changes in cash and cash equivalents of the group during the reporting period. The statement shows how the group generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the authority are funded by way of taxation and grant income or from the recipients of services provided by the authority. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Council’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the group. 2021/22 2022/23 2022/23 £'000 £'000 £'000 Operating Activities 75,190 Net deficit on the provision of services 49,863 (65,954) Depreciation, amortisation and impairment (36,639) (1,006) Net gain/loss on fixed assets 365 (33,772) Movement in pension liabilities (26,935) (44) Movement in inventories 64 609 Movement in debtors (6,052) (6,345) Movement in creditors and provisions (3,802) 272 Other non-cash movements 66 (106,240) Adjustments to net deficit on the provision of services for non-cash movements (72,933) 15 Financing movements 876 7,746 Investing movements 17,263 7,761 Adjustments for items included in the net surplus/deficit on the provision of services that are investing and financing activities 18,139 (23,289) Net cash (inflow)/outflow from Operating Activities (4,931) 66,167 Purchase of property, plant and equipment and intangible assets 62,697 (2,262) Proceeds from sale of property, plant and equipment and intangible assets (702) 443 Movement on long term investments (411) (6,943) Other receipts from investing activities (18,568) 982 Group Investment transactions 0 58,387 Net cash (inflow)/outflow from investing activities 43,016 (350,501) Cash receipts of short-term and long-term borrowing (322,950) 3,808 Repayment of PPP liabilities 3,370 320,751 Repayment of short-term and long-term borrowing 281,700 (888) Debtors held for agency payments 1,480 Creditors held for agency payments (25,350) Financing Activities (37,880) 9,748 Net cash (inflow)/outflow from financing activities 205 15,735 Cash and cash equivalents at the beginning of the reporting period 5,987 5,987 Cash and cash equivalents at the end of the reporting period 5,782 9,748 Movement – (Increase)/ Decrease in Cash 205 Reconciliation of Liabilities arising from Financing Activities 31 March 2021 Financing Cash flows Non- cash adj to FIAA 31 March 2022 Financing Cash flows Non-cash adj to FIAA 31 March 2023 £'000 £'000 £'000 £'000 Long term Borrowing 284,798 22,687 307,485 (7,014) 300,471 Short term Borrowing 263,105 6,833 (15) 269,923 49,680 (876) 318,727 PPP Liability 96,293 (3,808) 92,485 (3,370) 89,115 644,196 25,712 (15) 669,893 39,296 (876) 708,313 Page 397
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Page 96 Notes to the Group’s Principal Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 31 - Details of Combining Entities The notes required for the Financial Statements of the Council are disclosed separately in the preceding pages. Associates and Joint Ventures Dunbartonshire and Argyll and Bute Valuation Joint Board was formed in 1996 at local government re-organisation by an Act of Parliament. The Board maintains the electoral, council tax and non-domestic rates registers for the three councils of West Dunbartonshire, East Dunbartonshire and Argyll and Bute. The Board’s running costs are met by the three authorities, with surpluses and deficits on the Board’s operations also shared between the councils. In 2022/23, the Council contributed £0.779m (2021/22 £0.738m) or 28.04% of the Board’s estimated running costs and its share of the year end net asset of £2.683m (2021/22 £0.547m net liability) is included in the Group Balance Sheet. Copies of its accounts may be obtained from the Treasurer to the Valuation Joint Board, 16 Church Street, Dumbarton G82 1QL. The West Dunbartonshire Health & Social Care Partnership: the Public Bodies (Joint Working) Act (Scotland) 2014 sets out the arrangements for the integration of health and social care across the country. The Scottish Government approved the Integration Scheme for West Dunbartonshire which details the ‘body corporate’ arrangement by which NHS Greater Glasgow & Clyde Health Board and the Council agreed to formally delegate health and social care services for adults and children (including criminal justice, social work services) to a third body, which is described in the Act as an Integration Joint Board. The Integration Joint Board for West Dunbartonshire is known as the West Dunbartonshire Health & Social Care Partnership Board (HSCP Board) and started operations on 1 July 2015. The Board’s running costs are met by the two bodies mentioned above, with surpluses and deficits on the Boards operations also shared between them. In 2022/23, the Council contributed £83.178m (2021/22 £74.925m) towards estimated running costs and its share of the year end net asset of £13.088m (2021/22 £17.280m) is included in the Group Balance Sheet. Copies of its accounts may be obtained from the Chief Financial Officer to the Integration Joint Board, 16 Church Street, Dumbarton G82 1QL. Page 398
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Page 97 Notes to the Group’s Principal Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 The Council’s share of its associates and joint ventures are as follows: Dunbartonshires and Argyll and Bute Valuation Joint Board West Dunbartonshire Health & Social Care Total £'000 £'000 £'000 2022/23 Surplus/ (Deficit) on Operating Activities 127 (4,193) (4,066) Non Current Assets 187 0 187 Current Assets 273 13,236 13,509 Non Current Liabilities (48) 0 (48) Current Liabilities (28) (145) (173) Restated 2021/22 Surplus/ (Deficit) on Operating Activities (63) 6,377 6,314 Non Current Assets 296 0 296 Current Assets 258 17,364 17,622 Non Current Liabilities 0 0 0 Current Liabilities (17) (84) (101) Subsidiaries West Dunbartonshire Leisure Trust was formed in December 2011 and started trading on 5 April 2012. The Trust is a charitable company registered in Scotland and provides leisure facilities within the West Dunbartonshire area to the general public and operates sports centres, leisure centres, swimming pools, halls and community education centres owned by the Council. The Trust is paid a management fee by the Council for the provision of these services. The Trust’s net asset at 31 March 2023 was £15.258m (2021/22 £3.468m net asset) and its surplus for the year was £0.094m (2021/22 £0.104m). The accounts of the Trust are published separately and can be obtained from the Manager, Leisure Trust Headquarters, Alexandria CE Centre, Alexandria, G83 0NU which is also the company’s principal place of business. Clydebank Property Company was part of a group organisation previously known as Clydebank Rebuilt which was a pathfinder urban regeneration organisation, limited by guarantee and included a commercial letting company (industrial units) and a registered charity (the Titan Trust). On 11 August 2014, following the transfer of the Titan Crane to the Property Company, the Council bought the commercial letting company with a view to continuing its regeneration objective. The Company’s net asset at 31 March 2023 was £3.215m (2021/22 £3.635m) and its surplus for the year before payment of a dividend was £0.371m (2021/22 £0.077m). The accounts of the Company are published separately and can be obtained from the Company’s Headquarters, Titan Enterprise, 1 Aurora Avenue, Queen’s Quay, Clydebank G81 1BF which is also the Company’s principal place of business. West Dunbartonshire Energy Limited Liability Partnership is a company established in April 2021 and was Scotland’s first large-scale water source heat pump district heating scheme. The ESCo is a Limited Liability Partnership (LLP) structure and is 99.9% controlled by WDC, with 0.1% being owned by Clydebank Property Company. Following its first year of inception, the Company has a net liability at 31 March 2023 of £0.400m (2021/22 £0.273m) funded as working capital advance from the Council. Its deficit for the year was £0.400m (2021/22 £0.273m). The accounts of the Company are published separately and can be obtained from the Company’s Headquarters, 16 Church Street, Dumbarton G82 1QE. Dumbarton Common Good is held in Trust by the Council. Although the council does not contribute to this fund financially, it has been included within the Council’s Group through materiality by nature. Net usable income in 2022/23 was £0.044m (2021/22 £0.060m net usable spend). Trust Funds are held in Trust by the Council. Although the Council does not contribute to these funds financially, they have been included within the Council’s Group through materiality by nature. The net decrease in funds of £0.005m (2021/22 £0.017m) for the Trust Funds. For the purposes of the Group Accounts, two Trust Funds managed by the Page 399
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Page 98 Notes to the Group’s Principal Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Council (Dunbartonshire Educational Trust and McAulay Prize for Mathematics Trust) have been included pro rata to the Council’s share. Copies of the accounts may be obtained from West Dunbartonshire Council, 16 Church Street, Dumbarton G82 1QL. The Council’s subsidiaries year end results are as follows: West Dunbartonshire Leisure Trust Clydebank Property Company WD Energy LLP Common Good Trust Funds Total £'000 £'000 £'000 £'000 £'000 £'000 2022/23 Surplus/ (Deficit) on Operating Activities (94) 479 (400) 44 (5) 24 Non Current Assets 12,204 3,939 0 3,487 0 19,630 Current Assets 4,763 369 201 633 180 6,146 Non Current Liabilities 0 (975) (432) 0 0 (1,407) Current Liabilities (1,709) (118) (169) (8) 0 (2,004) 2021/22 Surplus/ (Deficit) on Operating Activities 104 (206) (273) 60 (17) (332) Non Current Assets 360 4,376 0 3,485 0 8,221 Current Assets 4,963 355 196 589 184 6,287 Non Current Liabilities 0 (975) (397) 0 0 (1,372) Current Liabilities (1,855) (121) (72) (8) 0 (2,056) Note 32 – Non-Material Interest in Other Entities The Council has an interest in a number of other organisations. The Council’s share of their net assets or liabilities is not material to the fair understanding of the financial position and transactions of the Council. Accordingly, the Group Accounts do not include these organisations. Under Accounting Regulations, the Council is required to disclose the business nature of each organisation. Strathclyde Partnership for Transport is the statutory body responsible for formulating the public transport policy on behalf of the 12 local authorities in the West of Scotland. In 2022/23, the Council contributed £2.243m (2021/22 £2.188m) or 3.94% of the Board’s estimated running costs. Strathclyde Concessionary Travel Scheme Joint Board oversees the operation of the concessionary fares scheme for public transport on behalf of the 12 local authorities in the West of Scotland. The costs of the scheme are funded through requisitions from the 12 councils and by the Scottish Executive via a ‘section 70’ grant. In 2022/23, the Council contributed £0.163m (2021/22: £0.185m) or 4.03% of the Board’s estimated running costs. Scotland Excel is a joint committee established through Section 57 of the Local Government (Scotland) Act 1973. The main purpose of the committee includes co-ordination of collaborative buying initiatives, representation of interests in public sector contracts, and the development and operation of a centre of procurement expertise for Local Government in Scotland. Hub West of Scotland is a public private Joint Venture development organisation established in 2012. They work with the public sector partners to plan, design, build, and fund and maintain buildings in the most efficient and effective manner delivering better value for money and ultimately improving public services. Hub West of Scotland comprises: Hub West Territory Participants, Scottish Futures Trust and The Wellspring Partnership. Business Loans Scotland Ltd was formed in March 2017 with 27 Scottish local authorities full members, including the Council, and the remaining five Scottish local authorities becoming associate members. In this respect, each member local council provides a level of loan finance for companies in their area under Phase 1, augmented in Phase 2 by Scottish Growth Scheme and European Regional Development Funding (ERDF). Page 400
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Page 99 Notes to the Group’s Principal Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Note 33 – Financial Impact of Consolidation The effect of inclusion of the entities on the Group Balance Sheet is to increase reserves and net assets by £23.473m (2021/22 £28.907m) respectively representing the Council’s share of the realisable surpluses/deficits in these organisations. The group account has an overall net asset of £411.260m (2021/22 £356.029m). Note 34 – Analysis of Material Items of Group Income and Expenditure The following table provides an analysis of the council’s share of the material amounts as a result of the inclusion of the associates and subsidiaries. Contribution to Group Income and Expenditure Reserve: 2021/22 2022/23 £'000 £'000 547 Valuation Joint Board 2,481 17,280 West Dunbartonshire Health & Social Care 13,088 3,468 West Dunbartonshire Leisure Trust 15,255 3,635 Clydebank Property Company 3,212 (273) WD Energy LLP (400) 4,066 Common Good 4,112 184 Trust Funds 180 28,907 Total 37,928 Note 35 - Group Accounting Policies: Disclosure of differences with main Statement of Accounting Policies The financial statements in the Group Accounts are prepared in accordance with the accounting policies set out in Note 1 on pages 37-48 with additions and exceptions noted below: Group Income and Expenditure Account Proceeds from disposal of non-current assets – profits and losses from the disposal of non-current assets are credited or debited to the Group Income and Expenditure Account within the net cost of services. The proceeds are then appropriated out after net operating expenditure. For those proceeds associated with the disposal of the Council’s assets, appropriation is to the Group Reserves. For those proceeds associated with the disposal of associates’ assets, appropriation is to the Group Income and Expenditure Reserve. Group Balance Sheet Inventories – valuation methods vary slightly across the Group. The Council uses cost price basis. The difference in valuation methods does not have a material impact on the results of the group given the levels of stock held within the organisations; and Pensions – West Dunbartonshire Leisure Trust complies with the Financial Reporting Standard FRS102 concerning the disclosure of information on pensions. There is no difference in the Comprehensive Income and Expenditure Statement by using this method in comparison with IAS19 (which is used by other group entities) therefore there is no impact on the results of the group. Note 36 - Error on consolidation of Group Accounts – Restatement 2021-22 A review of the relationship between the Council and SPT and SCTSJB has identified that these entities do not meet the definition of an associate. In recognition of this, these entities have been removed from the Group Financial Statements as associates. Page 401
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Page 100 Notes to the Group’s Principal Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 When an authority makes a retrospective restatement, the CIPFA Code of Practice on local Authority Accounting in the United Kingdom requires that an authority present a balance sheet at the beginning of the preceding period. As the entities were consolidated in 2021-22, a restated opening balance sheet for the relevant extracted lines is presented below. The following table demonstrates the effect on the line items in the Balance sheet for the opening balance as at 1 April 2021 and for the financial year 2021-22. The restated prior period Balance sheet is provided with the current year information on page 34 of the financial statements. Effect on line items in the Comprehensive Income and Expenditure Statement as at 31 March 2022 Originally Stated Restated Amount of Restatement Share of other Comprehensive Income and Expenditure of Associates and Joint Ventures (6,614) (7,210) (596) Actuarial (gains)/losses on pension fund assets and liabilities (145,797) (143,519) 2,278 Effect on line items in the Balance Sheet as at 31 March 2022 Opening Balance Sheet 1 April 2021 £’000 Restated opening Balance Sheet 1 April 2021 £’000 Amount of Restatement Originally stated 2021-22 £’000 Restated 2021-22 £’000 Amount of Restatement Investment in Associates 28,860 10,904 (17,956) 37,199 17,827 (19,372) Total Assets less Current Liabilities 838,804 820,848 (17,956) 830,313 810,941 (19,372) Total Assets less Liabilities 292,539 274,583 (17,956) 375,401 356,029 (19.372) Usable Reserves (46,753) (39,925) 6,828 (47,984) (41,074) 6,910 Unusable Reserves (245,786) (234,658) 11,128 (327,417) (314,955) 12,462 Total Reserves (292,539) (274,583) 17,956 (375,401) (356,029) 19,372 Page 402
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Page 101 Notes to the Group’s Principal Financial Statements West Dunbartonshire Council Annual Accounts 2022-23 Movement in reserves Statement - Usable and Unusable Reserves Originally Stated £’000 Restated £’000 Amount of Restatement £’000 Originally Stated £’000 Restated £’000 Amount of Restatement £’000 Balance as at 31 March 2021 (22,443) (15,714) 6,729 (13,898) (2,936) 10,962 Total Comprehensive Expenditure and Income (6,298) (6,307) (9) (5,690) (3,950) 1,740 Transfers to/from other statutory reserves * (191) 0 191 241 0 (241) Closing Balance at 31 March 2022 (28,932) (22,021) 6,911 (19,347) (6,886) 12,461 Group Usable Reserves Group Unusable Reserves Net Increase/(Decrease) before Transfers to Other Statutory Reserves (6,298) (6,307) (9) (5,690) (3,950) 1,740 Page 403
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Page 102 Independent Auditor’s Report West Dunbartonshire Council Annual Accounts 2022-23 Independent auditor’s report to the Members of West Dunbartonshire council and the Audit Commission Report on the audit of the financial statements Opinion on the financial statements We certify that we have audited the financial statements in the annual accounts of West Dunbartonshire Council and its group (“the Council”) for the year ended 31 March 2023 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Comprehensive Income and Expenditure Statement, the Movement in Reserves Statement, the Balance Sheet, the Cash Flow Statement, the Movement on the Housing Revenue Account Statement, the Housing Revenue Account Income and Expenditure Statement, the Council Tax Account, the Non Domestic Rates Account and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (the 2022/23 Code). In our opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the Council as at 31 March 2023 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2022/23 Code; and • have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We were appointed by the Accounts Commission on 18 May 2022. Our period of appointment is five years, covering 2022/23 to 2026/27. We are independent of the Council and its group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the Council. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ability of the Council and its group to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. These conclusions are not intended to, nor do they, provide assurance on the current or future financial sustainability of the Council and its group. However, we report on the Council's arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland Website. Risks of material misstatement We report in our Annual Audit Report the most significant assessed risks of material misstatement that we identified and our judgements thereon. Page 404
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Page 103 Independent Auditor’s Report West Dunbartonshire Council Annual Accounts 2022-23 Responsibilities of the Chief Financial Officer and the Audit Committee for the financial statements As explained more fully in the Statement of Responsibilities, the Chief Officer - Resources is responsible for the preparation of financial statements, that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Chief Officer - Resources determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Chief Officer - Resources is responsible for assessing the ability of the Council and its group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the operations of the Council and its group. The Audit Committee is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using our understanding of the local government sector to identify that the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 are significant in the context of the Council and its group; • inquiring of the Chief Officer - Resources as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Council and its group; • inquiring of the Chief Officer - Resources concerning the policies and procedures of the Council and its group regarding compliance with the applicable legal and regulatory framework; • discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Council‘s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skillfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited parts of the Remuneration Report We have audited the parts of the Remuneration Report described as audited. In our opinion, the audited parts of the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Page 405
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Page 104 Independent Auditor’s Report West Dunbartonshire Council Annual Accounts 2022-23 Other information The Chief Officer - Resources is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Statement of Responsibilities, Annual Governance Statement and the unaudited part of the Remuneration Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Management Commentary and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In our opinion, based on the work undertaken in the course of the audit: • the information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003; and • the information given in the Annual Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Governance in Local Government: Framework (2016). Matters on which we are required to report by exception We are required by the Accounts Commission to report to you if, in our opinion: • adequate accounting records have not been kept; or • the financial statements and the audited part of the Remuneration Report are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters Conclusions on wider scope responsibilities In addition to our responsibilities for the annual accounts, our conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in our Annual Audit Report. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Tom Reid Director For and on behalf of Forvis Mazars LLP 100 Queen Street Glasgow G1 3DN Page 406
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Page 105 Glossary of Terms West Dunbartonshire Council Annual Accounts 2022-23 Accounting Period: The period of time covered by the accounts, normally a period of twelve months commencing on 1 April. The end of the accounting period is the Balance Sheet date. Accruals: The concept that income and expenditure are recognised as they are earned or incurred, not as money is received or paid. Actuarial Gains and Losses (Pensions): For a defined benefit scheme, the changes in actuarial deficits or surpluses that arise because events have not coincided with the actuarial assumptions made for the last valuation (experience gains and losses) or the actuarial assumptions have changed. Asset: An item having value to the Council in monetary terms. Assets are categorised as either current or non-current. A current asset will be consumed or cease to have material value within the next financial year (e.g. cash and stock). A non- current asset provides benefit to the Council and to the Services it provides for a period of more than one year. Associates: These are entities (other than a subsidiary or a joint venture) in which the Council has a participating interest or over whose operating and financial policies the Council is able to exercise significant influence. Audit of Accounts: An independent examination of the Council’s financial affairs. Balance Sheet: A statement of the recorded assets, liabilities and other balances at the end of the accounting period. Capital Adjustment Account: This account absorbs the timing differences arising from the different arrangements for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. Capital Expenditure: Expenditure on the acquisition of a non-current asset, which will be used in providing services beyond the current accounting period, or expenditure which adds to and not merely maintains the value of an existing non-current asset. Capital Financed from Current Revenue: This is expenditure incurred in creating, acquiring or improving assets where that expenditure is charged directly to the revenue account. Capital Financing: Funds raised to pay for capital expenditure. There are various methods of financing capital expenditure including borrowing, leasing, capital receipts and grants, and revenue funding. Capital Grants Unapplied Account: Holds the grants and contributions received towards capital projects for which the Council has met the conditions that would otherwise require repayment of the monies but which have yet to be applied to meet expenditure. Capital Receipt: The proceeds from the disposal of land or other non-current assets. CIES: The Comprehensive Income & Expenditure Statement (CIES) shows the accounting cost of providing services and managing the Council during the year. It includes, on an accruals basis, all of the Council’s day-to-day expenses and related income. It also includes transactions measuring the value of non-current assets actually consumed during the year and the real projected value of retirement benefits earned by employees during the year. The statement shows the accounting cost in accordance with generally accepted accounting practices, rather than the cost according to the statutory regulations that specify the net expenditure that Councils need to take into account when setting the annual Council Tax. The required adjustments between accounting basis and funding basis under regulations are shown in the Movement in Reserves Statement. CIPFA: The Chartered Institute of Public Finance and Accountancy (CIPFA) is one of the major accountancy bodies in the United Kingdom. It develops and sets accounting standards for the public sector. Page 407
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Page 106 Glossary of Terms West Dunbartonshire Council Annual Accounts 2022-23 The Code: The Code of Practice on Local Authority Accounting in the United Kingdom (The Code) is the basis on which local authority accounts are prepared. The Code is based on European Union adopted International Financial Accounting Standards (that are primarily drafted for the commercial sector) and where required it interprets and adapts these standards to address all the accounting issues relevant to local government in the UK. Community Assets: Assets that the Council intends to hold in perpetuity, that have no determinable useful life and that may have restrictions on their disposal. Examples of community assets are municipal parks. Consistency: The concept that the accounting treatment of like items within an accounting period and from one period to the next, are the same. Contingent Liability: A contingent liability is either • A possible obligation arising from past events whose existence will be confirmed only by the occurrence of one or more uncertain event, not wholly within the Council’s control; or A present obligation arising from past events where it is not probable that a transfer of economic benefits will be required, or the amount of the obligation cannot be measured with sufficient reliability. Creditor: Amounts owed by the Council for work done, goods received or services rendered within the accounting period, but for which payment has not been made by the end of that accounting period. Current Service Cost (Pensions): The increase in the present value of a defined benefit scheme’s liabilities, expected to arise from employee service in the current period. Debtor: Amount owed to the Council for works done, goods received or services rendered within the accounting period, but for which payment has not been received by the end of that accounting period. Defined Benefit Pension Scheme: Pension schemes in which the benefits received by the participants are independent of the contributions paid and are not directly related to the investments of the scheme. Depreciation: The measure of the cost of wearing out, consumption or other reduction in the useful economic life of the Council’s non-current assets during the accounting period, whether from use, the passage of time or obsolescence through technical or other changes. Discretionary Benefits (Pensions): Retirement awards, which the employer has no legal, contractual or constructive obligation to award and are awarded under the Council’s discretionary powers. Employee Statutory Adjustment Account: The Employee Statutory Adjustment Account absorbs the difference that would otherwise arise on the General Fund from accruing for compensated absences earned but not taken in the year e.g. annual leave entitlement carried forward at 31 March. Entity: A corporate body, partnership, trust, unincorporated association, or statutory body that is delivering a service or carrying on a trade or business with or without a view to profit. It should have a separate legal personality and is legally required to prepare its own single entity accounts. Equity: The Council’s value of total assets less liabilities. Events after the Balance Sheet Date: Events after the Balance Sheet date are those events, favourable or unfavourable, that occur between the Balance Sheet date and the date when the Annual Accounts are authorised for issue. Exceptional Items: Material items which derive from events or transactions that fall within the ordinary activities of the Council and which need to be disclosed separately by virtue of their size or incidence to give fair presentation of the accounts. Page 408
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Page 107 Glossary of Terms West Dunbartonshire Council Annual Accounts 2022-23 Fair Value: The fair value of an asset is the price at which it could be exchanged for in an arm’s length transaction, less where applicable, any grants receivable towards the purchase or use of the asset. Finance Lease: A lease that transfers substantially all the risks and rewards of ownership of a non- current asset to the lessee. Financial Instruments Adjustment Account: The Financial Instruments Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for the income and expenses relating to certain financial instruments, and for bearing losses or benefitting from gains, per statutory provisions. General fund Balance: This contains the net surplus on the provision of Council services combined with balances from previous years and any contributions from other funds made during the year. General Revenue Grant: A grant paid by the Scottish Government to Councils, contributing towards the general cost of their services. Going Concern: The concept that the Annual Accounts are prepared on the assumption that the Council (and its Associate bodies) will continue in operational existence for the foreseeable future. Government Grants: Grants made by the Government towards either revenue or capital expenditure in return for past or future compliance with certain conditions relating to the activities of the Council. These grants may be specific to a particular scheme or may support the revenue spend of the Council in general. Gross Expenditure: This includes all expenditure attributable to the service and activity including employee costs, premises and transport costs, supplies and services, third party payments, support services and depreciation Gross Income: This includes grant income and all charges to individuals and organisations for the direct use of the Council’s services. Heritage Asset: A tangible or intangible asset with historical, artistic, scientific, technological, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture. IFRS: International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements and has been extended into the public sector in the UK. 43. Impairment A reduction in the value of a non-current asset to below its carrying amount on the Balance Sheet. Infrastructure Assets: Non-current assets belonging to the Council that cannot be transferred or sold, on which expenditure is only recoverable by the continued use of the asset created. Examples are highways, footpaths and bridges. Intangible Assets: An intangible (non-physical) asset may be defined as such when access to the future economic benefits it represents are controlled by the Council. This Council’s intangible assets are comprised solely of computer software licenses. Interest Cost (Pensions): For a defined benefit scheme, the expected increase during the period of the scheme’s liabilities because the benefits are one period closer to settlement. Inventories: Items the Council has procured and holds in expectation of future use. Examples are consumable stores and raw materials. Liability: A liability is where the Council owes payment to an individual or another organisation. A current liability is an amount which will become payable or could be called in within the next accounting period e.g. creditors or cash overdrawn. A non-current liability is an amount which by arrangement is payable beyond the next year, at some point in the future, or is to be paid off by an annual sum over a period of time. Page 409
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Page 108 Glossary of Terms West Dunbartonshire Council Annual Accounts 2022-23 MiRS: The Movement in Reserves Statement (MiRS) shows the movement in the year on the different reserves held by the Council, analysed into usable reserves (those reserves that can be applied to fund expenditure or to reduce taxation) and unusable reserves. National Non-Domestic Rates Pool: All Non- Domestic Rates collected by local authorities are remitted to the national pool and thereafter distributed to Councils by the Scottish Government. Net Carrying Value: The amount at which non- current assets are included in the Balance Sheet, i.e. their historical cost or current value less the cumulative amounts provided for depreciation. Non-current Assets: non-current Assets are not expected to be realised within 12 months and are held to provide future economic benefit to the Council. Operating Leases: A lease where the ownership of the non-current asset remains with the lessor. Past Service Cost (Pensions): For a defined benefit scheme, the increase in the present value of the scheme’s liabilities relating to employee service in prior periods arising in the current period as a result of the introduction of, or improvement to, retirement benefits. Pension Reserve: The Pension Reserve recognises the Council’s share of the actuarial gains and losses in the Strathclyde Pension Fund and the change in the Council’s share of the net liability chargeable to the CIES. Pension Scheme Liabilities: The liabilities of a defined benefit pension scheme for outgoings due after the valuation date. The scheme’s liabilities, measured using the “project unit method”, reflect the benefits that the employer is committed to provide for service up to the valuation date. Post-Employment Benefits: All forms of consideration given by an employer in exchange for services rendered by employees that are payable after the completion of employment e.g. pensions in retirement Prior Year Adjustment: Material adjustments applicable to previous years arising from changes in accounting policies or from the correction of fundamental errors. This does not include normal recurring corrections or adjustments of accounting estimates made in prior years. Provision: An amount put aside for future liabilities or losses which are certain or very likely to occur but the amounts or dates of when they will arise are uncertain. Public Works Loan Board (PWLB): A Central Government Agency which provides loans for one year and above to Councils at interest rates based on those at which the Government can borrow itself. Rateable Value: The annual assumed rental of land or property, which is for national Non-Domestic Rates purposes. Related Parties: Bodies or individuals that have the potential to control or influence the Council or to be controlled or influenced by the Council. For the Council’s purposes related parties are deemed to include the Elected Members, the Chief Executive and its Corporate Directors. Remuneration: All sums paid to or receivable by an employee and sums due by way of expenses or allowances (as far as these sums are chargeable to UK income tax) and the monetary value of any other benefits received other than in cash. Reserves: The accumulation of surpluses, deficits and appropriation over past years. Reserves of a revenue nature are available and can be spent or earmarked at the discretion of the Council. Some capital reserves such as the Revaluation Reserve cannot be used to meet current expenditure. Residual Value: The net realisable value of an asset at the end of its useful life. Page 410
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Page 109 Glossary of Terms West Dunbartonshire Council Annual Accounts 2022-23 Revaluation Reserve: Records unrealised gains arising since 1 April 2007 on the revaluation of non- current assets not yet realised through sales. Revenue Expenditure: The day-to-day expenses of providing services. Short-term Borrowing: Money borrowed where repayment is due in the following financial year. Significant Interest: The reporting authority is deemed to have Significant Interest if it is actively involved and is influential in the direction of an entity through its participation in policy decisions. Unusable Reserves: Reserves which hold unrealised gains and losses where amounts would only become available to provide services if the assets are sold and reserves that hold a timing differences. Usable reserves: Those reserves which the Council may use to provide services, subject to the need to maintain a prudential level of reserves and any statutory limitations on their use. Trust Funds: Funds administered by the Council for such purposes as awards and specific projects. Some of the Council’s Trust Funds are Charities. Useful Economic Life: The period over which the local authority will derive benefits from the use of a non-current asset. Page 411
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DR A K GLEN & WEST DUNBARTONSHIRE TRUST FUNDS AUDITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Page 413 APPENDIX 3
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 2 | P a g e Contents Pages Contents 2 Trustees’ Annual Report 3 - 6 Statement of Receipts and Payments 7 Statement of Balances 8 Notes to the financial statements 9 - 10 Page 414
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 3 | P a g e Trustees’ Annual Report Introduction The Trustees present the annual report together with the Financial Statements for the year ended 31 March 2023. Administration Information West Dunbartonshire Council (the Council) is sole Trustee for all Trust Funds with the exception of Dunbartonshire Educational Trust Scheme 1962 and McAuley Prize for Mathematics. The table below identifies the Trustees for 2022/23. Trust Funds Charity Number Trustees Local Authority Contact Address Dr A K Glen SC018701 Councillor Karen Conaghan Councillor Gurpreet Singh Johal Councillor David McBride Councillor Chris Pollock West Dunbartonshire Council West Dunbartonshire Council, Church Street, Dumbarton, G82 1QL Alexander Cameron Bequest SC025070 Provost Douglas McAllister Councillor Craig Edward Councillor Daniel Lennie Councillor June McKay Councillor Lawrence O’Neill Councillor Clare Steel Councillor Diane Docherty Councillor Jim McElhill Councillor Lauren Oxley Councillor Gordon Scanlan Councillor Sophie Traynor West Dunbartonshire Council West Dunbartonshire Council, Church Street, Dumbarton, G82 1QL UIE Award SC025070 Application has been submitted to the Sheriff Court for a new Trust Deed. Appointment of new Trustees will be progressed once Trust Deed is granted. West Dunbartonshire Council West Dunbartonshire Council, Church Street, Dumbarton, G82 1QL Dunbartonshire Education Trust SC025070 Councillor Clare Steel Councillor John Millar Councillor Hazel Sorrell Councillor James McPhilemy Councillor Gordon Currie Councillor Lynda Williamson Councillor Callum McNally Councillor Math Campbell- Sturgess West Dunbartonshire Council West Dunbartonshire Council West Dunbartonshire Council North Lanarkshire Council North Lanarkshire Council East Dunbartonshire Council East Dunbartonshire Council Argyll and Bute Council West Dunbartonshire Council, Church Street, Dumbarton, G82 1QL McAuley Prize for Mathematics SC025070 Page 415
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 4 | P a g e Objectives and 2022/23 Activity All trusts are advertised on the Council’s website and details have been passed to West Dunbartonshire Community and Volunteering Service (WDCVS) to publicise them. The objectives and activities of each of the Trusts are detailed below: Charity Number Trust Fund Objective 2022/23 Activity SC018701 Dr A K Glen Fund The benefit of the people of Dumbarton, to assist and relieve those in need by reason of age. Two grants were awarded in 2022/23 detailed within note 3. This fund has been fully utilised and has now closed. Arrangements are being made to close down the fund via OSCR. SC025070 Alexander Cameron Bequest The benefit of the people of Clydebank to assist those in need by reason of age, ill health, disability, financial hardship or other disadvantage. Four grants were awarded in 2022/23 detailed within note 3. £100,269 was agreed to be set aside for external investment. SC025070 UIE Award For students studying apprenticeships or training in industry. No awards but work to review and modernise the Trust’s governance arrangements to encourage funding applications in the future continues. SC025070 Dunbartonshire Educational Trust Scheme 1962 Awards educational prizes and bursaries. No awards for either. Trustees continue to seek clarification as to amendments to the governance arrangements. As these Trusts are governed by statute, discussions are ongoing between the Council (as Administrator) and Scottish Ministers and Office of the Scottish Charity Regulator (OSCR) regarding these arrangements. SC025070 McAuley Prize for Mathematics Provides prizes for those studying maths and computing Structure and Governance Dr A K Glen and West Dunbartonshire Trust Funds are OSCR registered. The governance arrangements are under the control of the Council which appoints trustees as required. Currently, trustees are elected members of the Council with the exception of the Dunbartonshire Education Trust Scheme 1962 and McAuley Prize for Mathematics. The trustees of these two are elected members from West Dunbartonshire Council, Argyll & Bute Council, East Dunbartonshire Council and North Lanarkshire Council. Page 416
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 5 | P a g e Following a review of the governance documents, it was agreed at Council on 31 August 2016 that the Trust Funds noted below would be delegated to sub-committees as follows: Trust Delegation Alexander Cameron Bequest Alexander Cameron Committee Dr A K Glen Fund Dumbarton Trust Sub-Committee The trustees have overall responsibility for ensuring there are appropriate systems of control, financial and otherwise. They are also responsible for keeping proper accounting records which disclose, with reasonable accuracy, the financial position of the Trusts and enable them to ensure Financial Statements comply with Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and are therefore responsible for taking reasonable steps to prevent and detect fraud and other irregularities and also provide reasonable assurances that: • The trusts are operating efficiently and effectively. • Assets are safeguarded against unauthorised use and disposition. • Proper records are maintained and financial information used by the charities is reliable. • The trusts comply with relevant laws and regulations. The systems of internal controls are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. The systems of internal control follow those of the Council and, as such, much of this is delegated to the Council’s Chief Officer - Resources. The Council continually seeks to improve the effectiveness of its systems of internal control so that any irregularities are either prevented or quickly detected. The systems of internal control are based on a framework of regular management information, financial regulations, financial and administrative procedures (including segregation of duties), management supervision and a system of delegation and accountability. The Financial Statements and Trustees Report are prepared by the Council’s Finance Service. The appointed external auditors are Audit Scotland. The Council has agreed to meet the cost of this audit and not pass this on to the Trusts. This is to provide additional financial support to the Trusts, ensuring that core funds are not eroded, and objectives can continue to be achieved. The Trustees only meet as and when required during the year and will ensure that the required accounting arrangements are adhered to. Management of Funds and Investment Policy Decisions regarding the management of the Trusts are made by the Trustees. Trustees rely on the expertise of Council staff to manage the investments to ensure the maximum return at the least risk to the Trusts. In this way, the income stream for the future benefit of the Trusts is protected. Funds available are invested each year with interest earned. Investments are made both internally and externally, with the majority invested in the Council’s Loans Fund and externally managed by the Council. Page 417
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 6 | P a g e Performance (Investments) Income for West Dunbartonshire Trusts comes from investment returns. All Trusts (with the exception of those investments noted below and Dr A K Glen which was closed during 2022/23) received income on their reserves held based upon the average interest rate used for internal investments within the Council’s loans fund was 1.984%. Following a Trustee decision in 2019/20, Alexander Cameron had an element of their funds in a fixed interest agreement (2.52%). Trustees met and agreed in February 2022 to continue this investment for a further fixed term of 2 years (the revised interest rate was 2.04%) and the overall impact of this was £2,751 of interest gained during 2022/23. Dunbartonshire Educational Trust Scheme 1962 continues to receive income from external investments i.e. 3% Clydeport and 4% Clydeport Consolidated Stock. These investments are managed by the Council and achieved investment income of £5 in 2022/23 (£5 in 2021/22). Financial Review The total balance on the Trusts as at 31 March 2023 (including stocks) is £257,594. On 8 July 2016 Clydeport Operations Ltd delisted 3% and 4% stocks from the London Stock Exchange. These are stocks held by Dumbarton Educational Trust. Until further information is available it has been assumed that the balance of this stock has remained the same as the previous year (£218). The Trusts held cash and bank balances at 31 March 2023 of £154,356. Reserves are held by the Council on behalf of the Trusts and revenue income, generated from investment interest that has not been disbursed at 31 March every year, is invested in line with the investment policy outlined above. Declaration The audited financial statements were authorised for issue on behalf of the Trustees on 19 December 2024 by: Councillor Martin Rooney West Dunbartonshire Council 19 December 2024 Page 418
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 7 | P a g e Statement of Receipts and Payments Account Receipts 2021/22 Payments 2021/22 (Surplus) /Deficit 2021/22 Receipts 2022/23 Payments 2022/23 (Surplus) /Deficit 2022/23 £ £ £ £ £ £ (62) 0 (62) Dunbartonshire Educational Trust Scheme 1962 (1,796) 0 (1,796) (14) 0 (14) McAuley Prize for Mathematics (435) 0 (435) (2,429) 0 (2,429) Alexander Cameron Bequest (3,436) 6,200 2,764 (16) 19,800 19,784 Dr AK Glen 0 4,947 4,947 (16) 0 (16) UIE Award (491) 0 (491) (2,537) 19,800 17,263 Total (6,158) 11,147 4,989 Page 419
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 8 | P a g e Statement of Balances as at 31 March 2023 Opening Balance 2021/22 (Surplus) /Deficit 2021/22 Closing Balance 2021/22 Note Other assets Opening Balance 2022/23 (Surplus) /Deficit 2022/23 Closing Balance 2022/23 £ £ £ £ £ £ (90,432) (62) (90,494) Dunbartonshire Educational Trust Scheme 1962 (90,494) (1,796) (92,290) (21,884) (14) (21,898) McAuley Prize for Mathematics (21,898) (435) (22,333) (117,840) (2,429) (120,269) Alexander Cameron Bequest (20,000) 5,515 (14,485) (24,731) 19,784 (4,947) Dr AK Glen (4,947) 4,947 0 (24,741) (16) (24,757) UIE Award (24,757) (491) (25,248) (279,628) 17,263 (262,365) 4 Total Other assets* (162,096) 7,740 (154,356) Investment (218) 0 (218) Dunbartonshire Educational Trust Scheme 1962 (218) 0 (218) 0 0 0 Alexander Cameron Bequest (100,269) (2,751) (103,020) (218) 0 (218) 5 Total Investment (100,487) (2,751) (103,238) (90,650) (62) (90,712) Dunbartonshire Educational Trust Scheme 1962 (90,712) (1,796) (92,508) (21,884) (14) (21,898) McAuley Prize for Mathematics (21,898) (435) (22,333) (117,840) (2,429) (120,269) Alexander Cameron Bequest (120,269) 2,764 (117,505) (24,731) 19,784 (4,947) Dr AK Glen (4,947) 4,947 0 (24,741) (16) (24,757) UIE Award (24,757) (491) (25,248) (279,846) 17,263 (262,583) Overall Total (262,583) 4,989 (257,594) * In 2021/22 Other Assets were previously classified as “Cash and Bank”. This change in classification has no impact on the reported balances. All funds are unrestricted which means they may be used for any purpose relevant to the Trust Fund. The audited Financial Statements were authorised for issue on 19 December 2024. Signed on behalf of the Trustees by:- Councillor Martin Rooney West Dunbartonshire Council 19 December 2024 Page 420
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 9 | P a g e Notes to the Financial Statements Note 1 - Basis of Accounting The Financial Statements have been prepared on a receipts and payments basis and in accordance with the Charities & Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. Note 2 – Trustee Remuneration, Expenses and Related Party Transactions • No remuneration or expenses were paid to the Trustees or any connected persons during the 2022/23. • The Trusts received interest of £6,158 from the Council at 31 March 2023, and all transactions incoming and outgoing are made via the Council’s bank accounts. • The Council has not charged the Trusts any fees for legal, financial or administrative services provided during the year. Note 3 – Grants The following grants were awarded during 2022/23: Alex Cameron Bequest: • £1,000 Fifty Sixty Club • £800 Faifley Community Council • £700 Fiftyplus Walking Club • £3,700 Flourishing Faifley Dr A K Glen Fund: • £3,823 Friends of Levengrove Park • £1,124 Ben View Resource Centre Note 4 – Other Assets During the year the Trust’s balances were held by the Council, which manages the administration of the funds on behalf of the Trustees. No costs were incurred by the Trusts for this administration. The Council also acts as the banker for the Trusts and, as detailed above, all transactions incoming and outgoing are made via the Council’s accounts. The balances are repayable on demand. Interest is paid on balances. Note 5 – Investment Dunbartonshire Educational Trust - The investment valuation of £218 (shown in the table below) is the market value as at 31 March 2016, as valued by the Council. Notification was received that the stocks were delisted in July 2016. There has been no further update on this and therefore the assumption is that the market price remains the same. Page 421
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2023 10 | P a g e Purchase Price as at 31 March 2022 Market Price as at 31 March 2022 Investment Purchase Price as at 31 March 2023 Market Price as at 31 March 2023 £ £ £ £ (289) (199) 4% Clydeport authority (289) (199) (35) (19) 3% Clydeport Authority (35) (19) (324) (218) Total (324) (218) Alexander Cameron – Following a decision on 23 February 2022, £20,000 was invested on a short term variable basis, with the remainder (£100,269) invested on a longer term fixed interest rate basis with the Council for two years at 2.04%. After the paying out of grants totalling £6,200 and the receipt of interest totalling £3,436, the closing value of the investment totals £117,505. Note 6 – Audit Fee The audit fee for the year of £6,500 (£5,500 2021/22) was absorbed by the Council. Page 422
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 18 December 2024 ___________________________________________________________________ Subject: General Services Revenue Budgetary Control Report to 31 October 2024 (Period 7) 1. Purpose 1.1 The purpose of this report is to advise Council of the 2024/25 Revenue Budget position at 31 October 2024 and the forecast position of the General Fund Reserve as at 31 March 2025. 2. Recommendations 2.1 Council is asked to note a current projected annual underlying adverse variance on the revenue account of £2.122m (0.73% of total budget). 3. Background 3.1 The revised 2024/25 revenue budget presented to Council in October was £289.927m. Since then, the Scottish Government has provided the following additional sums: £1.395m Local Government Pay funding £0.585m an estimated commitment in respect of the Teachers Pay award £0.292m to fully fund the estimated additional costs associated with enabling funded early learning and childcare (ELC) workers in private and third sector services to be paid at lease £12 per hour. 3.2 The additional sums increases the 2024/25 revenue budget (excluding earmarked reserves) as follows: Service £m £m Revised budget as at Period 5 289.927 Additional Resources: Share of £77.5m Local Government Pay Funding All 1.395 Share of £29m Teachers Pay Award (To Be Confirmed) Education 0.585 Share of £16m of ELC uplift Education 0.292 Total Additional Resources 2.272 Revised budget as at Period 7 292.199 4. Main Issues 4.1 The summary report at Appendix 1 highlights a projected net annual underlying adverse variance (overspend) of £2.122m (0.73% of the total budget). The current projection shows a decline in the year end position from ITEM 13 Page 423
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the figure reported at Period 5, with an increase in the anticipated overspend of £0.056m as detailed in the table below. Appendix 2 provides more detailed service reports by Chief Officer. In addition, services are projecting the use of £1.227m of earmarked reserves. £m £m Net adverse variance at Period 5 2.066 Movements in service variance Resources – reduction attributed mainly to an increase in the income from Statutory Additions (£0.142m) and further use of earmarked reserves within Corporate Assets (£0.094m) (0.236) Citizens, Culture & Facilities - underspend on employee costs being higher than originally anticipated. Relates also to an increase in income from internal recharges to other services. (0.157) Education – Relates mainly to an increase in the Non- Domestic Rates as a result of in year revaluations. 0.276 Roads & Neighbourhood – relates to a reduction in the anticipated income from the Crematorium service. An increase in the overspend within waste has been projected due to an increase in waste tonnage. It is anticipated that the tonnage will reduce within co-mingled waste, however, this will continue to be monitored going forward. 0.206 Other service movement less than £0.050m (0.033) Total movement in service variances 0.056 Net adverse variance at Period 7 2.122 4.2 In June a strategy was agreed to replenish general reserves from: additional funding from the Revenue Support Grant in relation to the council tax freeze the release of matched ESF funding additional revised benefit from reduction in employer pension contributions. The saving from the employer pension contribution rate as explained at paragraph 4.5, would be smoothed over 4 years thus easing the budget pressure by £5.332m in years 2024/25-2027/28. 4.3 Information on any projected annual variances in excess of £0.050m after the use of earmarked reserves, are highlighted and noted within Appendix 3, with additional information on action being taken to minimise or mitigate overspends where possible. 4.4 A list of agreed efficiencies and management adjustments totalling £6.649m is shown within Appendix 4. Current indications show, £6.442m is on target to be achieved. However, Appendix 4 also shows that it is anticipated that £0.207m will not be achieved and will be funded by the smoothing fund for Page 424
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2024/25 only, with the expectation that the full saving will be achieved in future years. 4.5 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 25/26 from 19.3% to 6.5% generating an estimated saving to the Council of £21.327m. Service superannuation budgets have been reduced via a virement to a central reserve, to reflect the saving in 2024/25. The Council agreed to smooth the total saving over 4 years with £5.332m being used to balance the budget in 2024/25 and the remaining amount to be transferred to an earmarked reserve to be used in future years to help ease the budget pressure as agreed at Council on 6 March 2024. The budgeted transfer to Reserves to date is £7.375m which reflects the current in year reduction of the service budget. The underspend of £2.043m will be transferred to an earmarked reserve to be used to balance the budget in future years. 4.6 The Housing Revenue Account (HRA) is currently forecasting a deficit of £0.349m after applying all available reserves. The Housing (Scotland) Act 1987 specifies that if an HRA deficit arises in any one year, the local authority must make a contribution to make good the deficit from the General Fund. The HRA would then be expected to repay that contribution from any future surpluses generated. The Housing Senior Management Team will continue to identify efficiencies across all areas of the HRA revenue account budget in order to minimise the adverse variance. General Fund Reserves Position 4.7 Appendix 5 shows the latest position in respect of Unallocated and Earmarked Reserves and shows the projected balance as at 31 March 2025: Unearmarked Balance (£m) Earmarked Balance (£m) Total General Fund Reserves (£m) As at 31 March 2024 (draft) 4.418 9.115 13.533 In year movements 1.607 4.844 6.451 Projected in year use of reserves (2.122) (1.227) (3.349) Projected Balance as at 31 March 2025 3.903 12.732 16.635 4.8 A breakdown of the 2024/25 earmarked balances and the movements in reserves is summarised in Appendix 6. 4.9 The Council’s General Fund contingency (Prudential Target) is set at 3% of net expenditure for 2024/25 and amounts to £5.400m. After taking into consideration the forecast adverse outturn position of £2.122m at 31 October 2024, the Council is currently forecast to have £1.497m below the current Prudential Target. The services have mitigating actions to reduce their projected adverse variances. In addition, the June Finance Update advised Page 425
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how the additional benefit from the reduction in pension contributions would continue to rebuild reserves with an additional £1.621m forecast over 2025- 2026. 4.10 The staff of the Health and Social Care Partnership (HSCP) make up 35% of the overall Council staff (excluding Teachers) which represents £0.488m as a proportion of the £1.395m Local Government Pay Award funding. If Council, when agreeing 2025/26 budget on the 5 March 2025, decide to pass through all or some of this additional Revenue Support Grant funding to the HSCP, the amount passed through will increase the need to use Council reserves to offset any in-year variance. Further analysis of the impact of the 2024-25 pay award on the council’s lower paid staff is still ongoing to help fully understand the impact of this on the council’s revenue position. The projection will be updated for period 10 BCR due to be reported to Council on 26 March 2025. 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 both General Services revenue and capital budgets. 8. Risk Analysis 8.1 The main risks are as follows: (a) 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 which could affect the year end; (b) As a consequence of current market conditions, capital receipts may either not be received or they may be less than anticipated. The budget assumption is that all capital receipts achieved in 2024/25 will be used to the principal and premium repayments within the loan charges budget. Any shortfall in capital receipts below that budgeted will affect the revenue budget position. This is being closely monitored and any issues will be reported to Council; (c) As a consequence of current market conditions, inflation is at an all-time high and interest rates continue to rise. To forecast for the full year costs budget assumptions have been required (particularly around energy and interest costs). These assumptions continue to change regularly and therefore it is likely that the projected year end budgetary position will change from that reported. Page 426
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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 revenue and 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: 3 December 2024 __________________________________________________________________ Person to Contact: Carol Alderson. Finance Manager Council Offices, Church Street, Dumbarton E-mail: carol.alderson@west-dunbarton.gov.uk Appendices: Appendix 1 - Revenue Budgetary Control 2024/25 – Corporate Summary; Appendix 2 - Revenue Budgetary Control 2024/25 – Chief Officer Summaries; Appendix 3 - Analysis of Revenue Variances over £50,000; Appendix 4 - Monitoring of Efficiencies Appendix 5 - Reconciliation of General Fund Reserves Appendix 6 - Monitoring of Earmarked Balances Background Papers: Ledger output – Period 7; General Services Revenue Estimates 2024/25 Wards Affected All Wards Page 427
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 REVENUE BUDGETARY CONTROL 2024/25 SUMMARY PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 Resources 3,907 8,962 4,176 269 6.9% 369 (100) Regulatory and Regeneration 3,733 1,987 3,565 (168) -4.5% 0 (168) People & Technology 9,977 6,409 10,284 307 3.1% 236 72 Citizens, Culture and Facilities 14,490 7,664 14,130 (360) -2.5% 38 (398) Education, Learning and Attainment 126,431 77,681 127,014 583 0.5% 221 362 Roads and Neighbourhood 15,365 16,212 17,256 1,891 12.3% 0 1,891 2,404 3,014 2,759 355 14.8% 363 (8) Miscellaneous Services 7,759 6,267 7,902 143 1.8% 0 143 Loan Charges 18,342 10,700 18,672 330 1.8% 0 330 Capital Receipts used to fund Loan Charges (2,884) 0 (2,884) 0 0.0% 0 0 Transfer to Reserves re SPFO reductions 7,375 0 5,332 (2,043) -27.7% (2,043) 0 Strategy to Rebuild Reserves 3,040 0 - (3,040) -100.0% (3,040) 0 Requisition (VJB) 782 456 782 0 0.0% 0 0 Requisition (SPT) 1,588 1,587 1,587 (1) -0.1% 0 (1) Requisition (HSCP) 88,945 51,885 88,945 0 0.0% 0 0 Non GAE Allocation (9,055) 0 (9,055) 0 0.0% 0 0 Total Expenditure 292,199 192,823 290,465 (1,734) -0.6% (3,856) 2,122 Council Tax (40,920) (25,593) (40,920) 0 0.0% 0 0 Revenue Support Grant (152,410) (57,032) (152,410) 0 0.0% 0 0 Non Domestic Rates (87,481) (51,031) (87,481) 0 0.0% 0 0 Service Concessionary Benefit (3,259) 0 (3,259) 0 0.0% 0 0 Use of Reserves (8,129) 0 (8,129) 0 0.0% 0 0 Total Resources (292,199) (133,655) (292,199) 0 0.0% 0 0 Net Expenditure (0) 59,168 (1,734) (1,734) -0.6% (3,856) 2,122 Department Summary Variance Housing and Employability Page 428
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 RESOURCES SUMMARY PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 19 123 74 55 285% 0 55 1,501 949 1,693 192 13% 183 9 1,957 2,434 1,957 0 0% 0 0 2,350 1,338 2,427 76 3% 66 10 467 233 482 15 3% 15 0 6 0 18 11 177% 11 (0) (823) (177) (1,001) (178) 22% 0 (178) 1,132 1,454 1,129 (3) 0% 0 (3) (2,703) 2,628 (2,600) 103 -4% 94 9 0 (19) (1) (1) 0% 0 (1) 3,907 8,962 4,176 269 7% 369 (100)Total Net Expenditure Finance Cost of Collection of Council Tax Cost of Collection of Rates Rent Rebates & Allowances Corporate Asset Maintenance Office Accommodation Corporate Assets Variance Service Summary Service / Subjective Summary Finance Business Centre Audit Revenues & Benefits Page 429
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 REGULATORY AND REGENERATION SUMMARY PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 741 332 692 (48) -7% 0 (48) 616 305 608 (8) -1% 0 (8) (154) (143) (172) (18) 12% 0 (18) 812 456 843 31 4% 0 31 566 123 406 (161) -28% 0 (161) 569 272 558 (10) -2% 0 (10) Economic Development 583 641 630 47 8% 0 47 3,733 1,987 3,565 (168) -4% 0 (168) Democratic and Registration Service Legal Services Licensing Environmental Health Planning Variance Total Net Expenditure Service / Subjective Summary Service Summary Procurement Page 430
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 PEOPLE AND TECHNOLOGY PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 850 459 869 19 2% 0 19 1,817 994 1,870 53 3% 35 18 4,767 3,617 4,782 15 0% 0 15 Central Administration Support 2,543 1,339 2,553 11 0% 0 11 0 0 210 210 0% 201 9 9,977 6,409 10,284 307 3% 236 72 Variance Total Net Expenditure Transactional Services Provision for Legal Fees & Settlements Information Services Strategic People and Change Service / Subjective Summary Service Summary Page 431
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 CITIZENS, CULTURE AND FACILITIES PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 280 126 257 (24) -8% 0 (24) 1,382 643 1,345 (36) -3% 0 (36) 237 121 226 (11) -5% 0 (11) Clydebank Town Hall 319 156 309 (10) -3% 0 (10) Libraries 1,726 976 1,758 32 2% 0 32 Arts and Heritage 296 97 327 31 10% 0 31 Catering Services 4,732 2,596 4,691 (41) -1% 0 (41) Building Cleaning 1,875 1,027 1,766 (109) -6% 0 (109) Building Cleaning PPP (188) (180) (245) (58) 31% 0 (58) Facilities Assistants 2,410 1,183 2,280 (130) -5% 0 (130) Facilities Management 444 297 501 57 13% 0 57 Communities 950 591 901 (49) -5% 38 (87) Events 27 29 14 (13) -48% 0 (13) 14,490 7,664 14,130 (360) -2% 38 (398) Variance Total Net Expenditure Citizen Services Service / Subjective Summary Service Summary Communications & Marketing Performance & Strategy Page 432
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 EDUCATION, LEARNING AND ATTAINMENT PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 Primary Schools 33,751 19,753 33,629 (122) 0% 91 (213) Secondary Schools 34,893 20,377 34,610 (283) -1% 0 (283) Specialist Educational Provision 21,343 10,244 21,702 359 2% 0 359 Psychological Services 708 453 691 (17) -2% 0 (17) Sport Development / Active Schools 627 461 628 0 0% 0 0 Early Education 9,554 8,730 9,703 149 2% 0 149 PPP 18,081 12,481 18,192 111 1% 0 111 Creative Arts 683 317 686 3 0% 0 3 Curriculum for Excellence 66 29 66 0 0% 0 0 Central Admin 865 820 1,047 182 21% 100 82 Workforce CPD 312 213 339 27 9% 0 27 Performance & Improvement 425 256 447 22 5% 0 22 Education Development 2,033 1,243 2,123 90 4% 0 90 Raising Attainment - Primary 0 0 0 0 0% 0 0 Leisure Management 3,090 2,304 3,151 62 2% 30 32 Raising Attainment - Secondary 0 0 0 0 0% 0 0 Pupil Equity Fund (including LAC PEF) 0 0 0 0 0% 0 0 126,431 77,681 127,014 583 0% 221 362 Variance Service Summary Service / Subjective Summary Total Net Expenditure Page 433
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 ROADS AND NEIGHBOURHOOD PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 Transport, Fleet & Maintenance Services (779) 780 (645) 134 -17% 0 134 Roads Services 2,583 1,822 3,208 625 24% 0 625 Grounds Maintenance & Street Cleaning Client 7,414 4,325 7,414 0 0% 0 0 Outdoor Services 206 60 208 2 1% 0 2 Burial Grounds (296) (338) (134) 162 -55% 0 162 Crematorium (1,229) (400) (1,013) 216 -18% 0 216 Waste Services 9,004 4,975 9,442 438 5% 0 438 Depots 0 464 0 0 0% 0 0 Capital Investment Programme 28 167 2 (26) -95% 0 (26) Consultancy Services 833 472 857 24 3% 0 24 Ground Maintenance & Street Cleaning Trading A/c (2,399) 3,886 (2,083) 316 -13% 0 316 15,365 16,212 17,256 1,890 12% 0 1,890 Service / Subjective Summary Service Summary Variance Total Net Expenditure Page 434
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 HOUSING AND EMPLOYABILITY PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 Working 4 U 1,966 1,606 2,308 342 17% 342 0 Shared Prosperity Fund (0) 662 0 0 -100% 0 0 Homeless Persons 639 1,024 633 (6) -1% 0 (6) Private Sector housing 15 9 15 0 0% 0 0 Private Sector Housing Grants 41 22 40 (1) -2% 0 (1) Housing Maintenance Trading A/c (589) (497) (594) (5) 1% 0 (5) Housing Asset and Investment 0 0 0 0 0% 0 0 Anti Social Behaviour 332 188 357 25 8% 21 4 2,404 3,014 2,759 355 15% 363 (8) Variance Total Net Expenditure Service / Subjective Summary Service Summary Page 435
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 MISCELLANEOUS PERIOD END DATE 31 October 2024 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 5,987 5,333 6,156 169 3% 0 169 648 336 619 (29) -4% 0 (29) 1,124 598 1,127 3 0% 0 3 7,759 6,267 7,902 143 2% 0 143 Variance Total Net Expenditure Service / Subjective Summary Chief Executive and Chief Officers Service Summary Sundry Services Members Allowances, etc Page 436
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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 % Audit 19 74 55 285% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Cost of Collection of Council Tax (823) (1,001) (178) 22% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome This service collects Council tax from local residents. The services also provides support and advice to those residents regarding council tax. A higher than anticipated favourable income outturn is anticipated from Statutory Additions. None required. Favourable variance is anticipated. 31 October 2024 Budget Details Variance Analysis Variance Resources Internal audit of council services. Variance due to a £100k reduction in projected fraud recovery target which is offset by an underspend in staff costs due to vacancies. The National Fraud Initiative is indicating a lower than expected recovery of fraudulent transactions this year. The service is also experiencing resource constraints. These two factors will result in a lower value of income recovery than anticipated in the budget. Adverse variance is anticipated. Page 437
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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 October 2024 Budget Details Variance Analysis Variance Planning 566 406 (161) -28% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Building Cleaning 1,875 1,766 (109) -6% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Building Cleaning PPP (188) (245) (58) 31% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Facilities Assistants 2,410 2,280 (130) -5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome This service provides Facility Assistants throughout WDC buildings. There is a favourable variance against employee costs due to a number of vacancies. None. 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. Favourable variance anticipated. This service provides cleaning services across all council buildings. There has been greater than anticipated expenditure on cleaning material costs (£35k) ,urgent equipment replacements (£56k) and replacement uniforms (£4k). However, there is a favourable variance against employee costs due to a number of vacancies (£206k). Material costs and usage will be monitored. Favourable variance anticipated. Citizens, Culture and Facilities This Service provides Building & Planning services. A £196k favourable variance in employee costs is due to delays and difficulties filling vacancies. This is partly offset by a £30k adverse variance in Payments to Other Bodies. None required. Favourable variance is anticipated. Regulatory and Regeneration Page 438
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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 October 2024 Budget Details Variance Analysis Variance Facilities Management 444 501 57 13% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Communities 950 901 (49) -5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Primary Schools 33,751 33,629 (122) 0% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Secondary Schools 34,893 34,610 (283) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome 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 a number of items being higher than anticipated when the budget was set : utility costs (£84k) ,accidental/malicious damage (£15k) and non-domestic rates (£150k). None Favourable variance Favourable variance 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. This offsets the adverse variance against non-domestic rates (£62k).Shortfalls from the early start clubs will be covered from the smoothing fund (£91k). None None at present. Adverse variance anticipated. This service provides support to communities Although there have been delays in achieving the communities restructure savings (£38k - to be covered from the smoothing fund) this has been more than offset by higher than budgeted projected salary recharges to PEF . After use of the smoothing fund the resulting projected favourable variance becomes £87k favourable. Progression with restructure 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. Page 439
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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 October 2024 Budget Details Variance Analysis Variance Specialist Educational Provision 21,343 21,702 359 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Early Education 9,554 9,703 149 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome PPP 18,081 18,192 111 1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome None possible Adverse variance This services area includes all Early Years establishments within West Dunbartonshire. There is an adverse variance against net cross-boundary transactions of £102k. In addition non-domestic rates are greater than anticipated (£16k) and commissioned places payments are slightly greater (£32k) than the budget. 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 so there is a favourable variance against the unitary charge payments (£49k). However, non-domestic rates/water charges are higher than anticipated when the budget was set (£181k) although other property costs (eg cleaning) have been less than budgeted (£22k). This service area covers all ASN Services. The largest budget pressure is an increased net cost for external placements (£185k). In addition utility costs (£65k) and taxis (£113k) have been higher than anticipated when the budget was set. None possible at present Overspend anticipated Page 440
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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 October 2024 Budget Details Variance Analysis Variance Central Admin 865 1,047 182 21% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Education Development 2,033 2,123 90 4% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Transport, Fleet & Maintenance Services (779) (645) 134 -17% 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 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 Roads and Neighbourhood This service includes spend in areas such as technician service, language programmes and senior phase programme. Turnover across the services has not been achieved .In addition, grant income from Developing Young Workforce will be less than budgeted. None possible Overspend anticipated This service area covers Education Directorate There is an adverse variance against Summer Programme activities (£100k) which will be covered by an earmaked balance. The remaining adverse variance is attributable to school meal holiday payments (£79k) 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 Page 441
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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 October 2024 Budget Details Variance Analysis Variance Roads Services 2,583 3,208 625 24% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Burial Grounds (296) (134) 162 -55% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Crematorium (1,229) (1,013) 216 -18% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome 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 Income from cremations is less than budgeted. This is demand led and may change throughout the year. None at the moment. 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 This service relates to Roads operations, design, structures, street lighting, road safety and school crossing patrols Page 442
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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 October 2024 Budget Details Variance Analysis Variance Waste Services 9,004 9,442 439 5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Ground Maintenance & Street Cleaning Trading A/c (2,399) (2,083) 316 -13% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Waste Collection and Refuse disposal services Transport costs, are anticipating an overspend of £140k 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 £161k mainly due to overtime costs due to requirement to cover public holidays and periods of annual leave or sickness. Internal charges for tyres and diesel are anticipated to be £116K overspent, this has to be investigated to identify if it is a cost pressure as the diesel budget is not increased in line with inflation. 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 Page 443
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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 October 2024 Budget Details Variance Analysis Variance Sundry Services 5,987 6,156 169 3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome 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 7,375 5,332 (2,043) -28% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome 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 £7.375m 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 £2.043m 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 Other 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 Page 444
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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 October 2024 Budget Details Variance Analysis Variance 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. Page 445
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment December 2023 Management Adjustments 1 Remove a 1.0 FTE vacant post from the Facilities Management team with service delivery being maintained through new structure with increased number of team leaders CCF09 A Graham 36 36 - Complete 2 Remove two vacant posts in the Communications team which will result in campaign activity being on digital platforms only, minimal design activity and less capacity for events CCF10 A Graham 50 50 - Complete 3 Reduces the budget that funds furniture for temporary accommodation from £1,065 per property to £1,000 per property HE07 P Barry 16 16 - Complete 4 Rightsize ICT Budgets to better reflect expected costs for GIS software and general ICT inflationary pressures PT01 V Rogers 46 46 - Complete 5 Reflect reduction in employer NI/Pension contributions through implementing VivUp Employee Benefits PT02 Shared 30 30 - Complete 6 Restrict choice in office equipment to pre-agreed catalogue items/amounts. PT05 Shared 10 10 - Complete 7 Reduction in Mobile Phone usage for Council owned phones PT06 Shared 22 22 - Complete 8 Reduce the Council’s training budget, retaining budget to cover essential corporate requirements PT07 V Rogers 10 10 - Complete 9 Estimated saving from replacing ISDN telephony lines with SIP cloud telephone support (SIP is a digital method of making calls) PT11 V Rogers 76 76 - Complete 10 Replacement of Citrix Technology with cheaper technology PT12 V Rogers 75 75 - Complete 11 Implement the Water Direct Scheme which facilitates the collection of water and sewerage debt from residents direct from their benefits at source by the DWP RES05 L Slavin 60 60 - Complete 12 Remove two franking machines and further reduce use of first class mail RES11 L Slavin 12 12 - Complete 13 Seek commercial opportunities for Balloch Park kiosk RES12 L Slavin 15 10 5 The rental income was less than the assumption made at the savings exercise. 14 Rightsize minor sundry service budget lines such as travel, books etc RES14 L Slavin 17 17 - Complete Page 446
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment 15 Rightsize income budgets as consequence of historical lease review RES15 L Slavin 25 25 - Complete 16 Adjust charge to Dumbarton Common Good for support services to reflect cost recovery RES19 L Slavin 21 21 - Complete 17 Adjust charge to Valuation Joint Board for support services to reflect cost recovery RES20 L Slavin 11 11 - Complete 18 Remove 3.41 FTE vacant posts in revenue and benefit team and review work processes to minimise impact on income recovery RES21 L Slavin 109 109 - Complete 19 Procure vehicles considered permanently required rather than hiring them RN17 G Macfarlane 100 100 - In progress 20 Remove a 0.6 FTE vacant registrar post - no longer required as Clydebank Registration Service is now managed centrally from Dumbarton RR02 A Douglas 30 30 - Complete 21 Remove a 1 FTE vacancy in the Leadership Support Team whilst retaining 2:1 PA/CO ratio RR04 A Douglas 39 39 - Complete 22 Remove a 0.4 FTE vacancy in the Member Services Team to reflect requirements of elected members RR05 A Douglas 15 15 - Complete 23 Reduce 0.2 FTE in Democratic and Registration Service via a two year phased retirement RR07 A Douglas 18 18 - Complete 24 Right sizing anticipated income from regulatory and regeneration fees RR12 A Douglas 130 130 - Complete December 2023 Saving Options 25 Reduce the West Dunbartonshire Leisure Trust Mgt Fee by up to 30% CCF01 A Graham 940 940 - Complete 26 Reduce Additional Management Time in Primary Schools EDU08 L Mason 304 304 - Complete 27 Reduce DMR Budgets by up to 10% EDU11 L Mason 80 80 - Complete 28 Two week Christmas closedown bar delivery of essential services RES07 L Slavin 7 - 7 Cost pressure added for 2025/26 29 End the provision of hybrid committee meetings which would enable the committee team to return to its existing establishment RR03 A Douglas 21 21 - Complete March 2024 Saving Options Page 447
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment 30 Reduce opening hours of Clydebank Town Hall to 4 days a week CCF02 A Graham 30 30 - Complete 31 Reduce investment in materials in library service CCF06 A Graham 50 50 - Complete 32 Reduce financial commitment to the Highland Games CCF11 A Graham 14 14 - Complete 33 Review core library staffing (outwith branch libraries) and remove one post CCF19 A Graham 18 18 - In progress 34 Review menus in educational establishments to reduce waste whilst ensuring compliance with nutritional guidance CCF20 A Graham 60 60 - Complete 35 Reduce Community Budgeting fund by 50% reducing money available for community groups to bid for CCF24 A Graham 27 27 - Complete 36 Reduce the Community Engagement budget by 50% reducing the number of events supported CCF25 A Graham 22 22 - Complete 37 Review the Communities team reducing the delivery of community based services CCF26 A Graham 87 49 38 Delay in implementation, in year shortfall will be covered by the smoothing fund. Full year savings expected in future years. 38 Increased use of Pupil Equity Funding to pay for associated support service costs EDU02 L Mason 70 70 - Complete 39 Introduce Early Start Clubs at schools with associated fees (£2) for pupils not entitled to a free school meal EDU05 L Mason 187 96 91 Number of paying attendees less than forecast and it wasn't for the full financial year. 40 Increase fees for Out of School Care Service at St Eunan’s Primary School and Linnvale Primary School by £3 from April 2024 EDU09 L Mason 14 14 - Complete 41 Remove 1 of 2 Education Officer posts responsible for quality assuring and monitoring the performance of West Dunbartonshire schools EDU13 L Mason 75 75 - Complete 42 Reduce the number of ELC Early Stage Teachers from 16.4 FTE to 11.4 FTE across the entire ELC learning estate EDU14 L Mason 219 219 - Complete 43 Reduce the number of Early Learning Childcare Posts from 223 FTE to 217 FTE across the entire ELC learning estate EDU15 L Mason 134 134 - Complete Page 448
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment 44 Remove ELC Lead Officer in Bellsmyre and Dalmonach ELC with remaining management team required to take over aspects of their remit EDU16 L Mason 62 62 - Complete 45 Reduce the Collaborative Support Service by 3.6 FTE EDU17 L Mason 190 190 - Complete 46 Reduce use of SMS text messages with schools communicating with parents using Groupcall. EDU18 L Mason 10 10 - Complete 47 Review the current flexibility in primary school classification and allocate class structures based on numerical information which aligns with statutory obligations EDU20 L Mason 400 400 - Complete 48 Reduce funding provided to YSortIt by 25% HE02 P Barry 29 29 - Complete 49 Reduce funding provided to LCCR by £40k HE06 P Barry 40 40 Complete 50 Reduce pay preservation period to 12 months PT04 Shared 14 14 - Complete 51 Remove counselling and physio PT10 V Rogers 47 47 - Complete 52 Remove 3.6 FTE in CAS team PT13 V Rogers 112 112 - Complete 53 Reduce WDCVS funding by 50% RES02 L Slavin 75 75 - Complete 54 Remove one Council officer RES09 L Slavin 26 26 - Complete 55 School crossing patrollers - adhere to best practice RN01 G Macfarlane 24 24 - Complete 56 Introduce £60 Garden Waste Charge RN02 G Macfarlane 180 180 - Complete 57 Amend roads service activities to support education to statutory level RN04 G Macfarlane 37 37 - Complete 58 Reduce the Consultancy Services/Capital Investment Team by 25% RN18 G Macfarlane 10 10 - Complete 59 Reduce the roads operations service from 29 FTE to 26 FTE which will reduce resilience in the team RN21 G Macfarlane 80 80 - Complete 60 Reduce maintenance costs through replacing 6 under utilised grass pitches with 3 new 4G pitches RN22 G Macfarlane 10 10 - In progress 61 Implement new approach to road defect repairs which will capitalise costs previously charged to revenue RN23 G Macfarlane 200 200 - Complete 62 Reduce weed killing from twice a year to once a year RN26 G Macfarlane 50 50 - Complete 63 Increase commercial waste fees by 14% RN27 G Macfarlane 45 45 - Complete 64 Remove £12,500 of Nightzone West funding provided to Police Scotland RR01 A Douglas 12 12 - Complete 65 Reduction in 2 FTE paralegal support to contracts and property section RR08 A Douglas 90 67 23 Delay in implementation Page 449
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment March 2024 Management Adjustments 66 Review Arts & Heritage Service CCF16 A Graham 24 24 Complete 67 Removal of GF Contribution to Housing Asset & Investment Team HE05 P Barry 50 50 - Complete 68 Review compliance with Strategic Opening Model to identify areas where teams or posts can be merged PT08 Shared 200 200 - Complete 69 Restructure of Transactional Services to remove one vacant G10 post PT09 V Rogers 30 30 - Complete 70 Increase Council Tax on Second Homes RES06 L Slavin 82 82 - Complete 71 Remove Empty Property Relief for Listed Buildings RES18 L Slavin 34 34 - Complete 72 Remove vacant posts in asset management RES22 L Slavin 99 99 Complete 73 Remove facility assistants at Aurora House bringing service in line with that provided at Clydebank Town Centre Office RES23 L Slavin 54 54 - Complete 74 Generate income from Levengrove Pavilion and ass land RES25 L Slavin 63 20 43 Rental income lower and running costs higher than forecast when the saving assumptions were reviewed. 75 Right size water authority income budget RES26 L Slavin 25 25 - Complete 76 Outsourcing mgt of retail assets RES27 L Slavin 33 33 - Complete 77 Transfer cost of solicitor support for the council housing building prog to HRA capital budget RR09 A Douglas 60 60 - Complete 78 Remove vacant contaminated land officer post RR11 A Douglas 30 30 - Complete 79 Reduce support to planning and building standards by removing a vacant part time technical support assistant post RR13 A Douglas 16 16 - Complete 80 Remove a service co-ordinator in env health team and invite 2 service co-ordinators to be interviewed for the principal env health officer post. RR14 A Douglas 68 68 - Complete Page 450
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment 81 Remove vacant Planning Compliance Officer post RR15 A Douglas 30 30 - Complete 82 Remove one of the 3 Building Standards Surveyor Posts RR16 A Douglas 53 53 - Complete 83 Reduce hours of solicitor from 5 days to 4 days RR17 A Douglas 12 12 - Complete 84 Fund existing Grade 8 post from UK Towns Fund Support RR18 A Douglas 60 60 - Complete 85 Fund officer costs associated with Levelling Up from final year of Levelling Up Rev funding. RR19 A Douglas 60 60 - Complete 86 March 2024 Increases in Fees and Charges Shared 492 492 Complete 6,649 6,442 207 TOTAL EFFICIENCIES/MANAGEMENT ADJUSTMENTS Page 451
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 5 RECONCILIATION OF GENERAL FUND RESERVES Unearmarked Balance Earmarked Balance (further detail at Appendix 6) £(m) £(m) £(m) £(m) Balance on General Fund as at 31 March 2024 (draft) 13.939 Earmarked as at 31 March 2024 9.115 Capital Grants and Receipts unapplied (0.212) Other Reserves (0.194) In Year Movements: Closing General Fund Balance 13.533 Budgeted use of Reserves (9.343) Less Earmarked Balances (9.115) Allocation to service reserve balances 0.658 Unearmarked Balance as at 31 March 2024 (draft) 4.418 Allocation to pension smoothing reserve 10.489 Strategy to rebuild reserves 3.040 In Year Movements: Total In Year Movements 4.844 Available Resources: Pension Contribution Saving 10.489 Service use of reserves at as at 31 October 2024 (1.020) Service Concession 3.259 Use of smoothing fund for 2024/25 (0.207) Release from Suspense 0.860 In Year use of reserves (1.227) Additional Pension Saving 1.051 Earmarked as at 31 March 2025 12.732 CTAX freeze RSG 1.129 Allocation of DHP - RSG 24/25 2.265 Service Reserve Transfer to/from EMR: Allocation to Community Success Revenue Fund (0.250) Allocation to Youth Success Revenue Fund (0.100) Additional Cost of Living (0.105) Service balances carry forward (0.237) Release of Reserves 0.034 Strategic Reserve transfer to/from EMR: Allocation to pension smoothing reserve (10.489) Strategy to rebuild reserves (3.040) Approved use to balance budget - service concession (3.259) Total In Year Movements 1.607 Forecast Service Outturn for 2024/25 as at 31 October 2024 (2.122) Forecast unallocated Balance as at 31 March 2025 3.903 Prudential Target (3%) 5.400 Forecast unallocated Balance Above/(Below) Prudential Target (1.497) Page 452
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 6 MONITORING OF EARMARKED BALANCES 2024/25 BY CHIEF OFFICER DEPARTMENT Amount b/fwd into 24/25 from 23/24 24/25 Transfers in/(Out) Revised 24/25 Estimate 24/25 Probable Outturn 24/25 Temporary Use of Reserves as agreed at Council 6 March 2024 24/25 Rebuild Reserves as agreed at Council June 2024 24/25 to be released To be carried forward into 25/26 £ £ £ £ £ £ £ £ RESOURCES 1 Barclay Review Implementation: SG Funding for standardised NDR billing & publication relief recipients 11,187 - 11,187 11,187- - - - - 2 Social Welfare Fund - 66,187 66,187 66,187- - - - - 3 Automation Team (VKY) 26,284 - 26,284 15,000- - - - 11,284 REGULATORY & REGENERATION 4 Zero carbon (carried forward from 20/21) 38,000 - 38,000 - - - - 38,000 5 Previous provision for equal pay/holiday pay 209,859 - 209,859 200,691- - - - 9,168 6 Regulatory - Econ Development- Business Awards 2,420 - 2,420 - - - - 2,420 7 Regulatory - Underspend in 'design panel' budget for IDOX upgrade (new 23/24) - 15,000 15,000 - - - - 15,000 PEOPLE & TECHNOLOGY 8 OD & Change Training Budget (new 23/24) - 34,500 34,500 34,500- - - - - CITIZENS, CULTURE & FACILITIES 9 Library Improvement Fund 12,500 - 12,500 - - - - 12,500 10 Community focused activity programme in Alexandria Library 6,000 - 6,000 3,000- - - - 3,000 11 Events Income & spend-Comms & Marketing 1,000 - 1,000 - - - - 1,000 12 Be the best unspent monies (Good Idea Fund) 4,743 4,743- - - - - - 13 Community Success Revenue Fund - 250,000 250,000 82,000- - - - 168,000 14 Youth Success Revenue Fund - 100,000 100,000 100,000- - - - - EDUCATION 15 Education recovery (ELT) 29,834 - 29,834 - - - - 29,834 16 Holiday Hunger 3,885 100,000 103,885 100,000- - - - 3,885 17 Probationers 474,000 - 474,000 - - - - 474,000 18 Whole Family Wellbeing Funding 216,941 - 216,941 - - - - 216,941 19 Ending Core curriculum charges 129,000 - 129,000 - - - - 129,000 20 Removal of music instruction fees 30,000 - 30,000 - - - - 30,000 HOUSING & EMPLOYABILITY 21 Parental Employee Support Fund Boost 12,818 12,818- - - - - - - 22 Communities - Comm Empowerment budget 15,000 15,000- - - - - - - 23 Housing green growth redetermination 26,000 - 26,000 - - - - 26,000 24 Modern Apprentice 23/24 underspend 126,289 - 126,289 126,289- - - - - 25 Ukraine Refugee Resettlement Teams 499,255 - 499,255 - - - 499,255 26 CCTV Network Upgrade - 21,000 21,000 21,000- - - - - CHANGE FUND 27 Direct debit functionality 1,557 1,557- - - - - - - COST OF LIVING 28 Cost of Living b/fwd -Committed 1,322,929 5,000 1,327,929 244,000- - - 1,083,929 29 Cost of Living b/fwd - UnCommitted 174,599 100,000 274,599 - - - 274,599 TOTAL USE OF SERVICE RESERVES 3,374,100 657,569 4,031,669 - 1,003,854 - - - 3,027,815 STRATEGIC RESERVES 30 Voluntary Redundancy & Early Retirement Reserve 3,350,000 - 3,350,000 637,000- 3,077,000- 3,040,000 2,676,000 31 Smoothing Fund 2,391,000 - 2,391,000 520,000- - - - 1,871,000 32 23/24 In year reduction in Strathclyde Pension Fund Employer Contribution - 10,489,000 10,489,000 5,332,000- - - 5,157,000 TOTAL USE OF STRATEGIC RESERVES 5,741,000 10,489,000 16,230,000 - 6,489,000 - 3,077,000 3,040,000 - 9,704,000 TOTAL USE OF EARMARKED RESERVES 9,115,100 11,146,569 20,261,669 - 7,492,854 - 3,077,000 3,040,000 - 12,731,815 Page 453
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 18 December 2024 Subject: General Services Capital Budgetary Control Report 2024/25 to 31 October 2024 (Period 7) 1. PURPOSE 1.1 This report provides an update on the General Services capital financial performance to 31 October 2024. 2. RECOMMENDATIONS 2.1 Members are asked to: i) Note the current position of the 2024/25 General Services capital budget. ii) Approve additional capital budget of £0.133m in respect of Posties Park. iii) Approve the revised completion dates detailed in Appendix 3. iv) Note an in-year variance of (£6.308m) due to reprofiling and additional funding made available by Scottish Government. v) Approve £1.000m capital budget for a new financial ledger system and the associated £0.028m per annum revenue costs to cover the interest on the prudential borrowing over 20 years of the life of the asset. vi) Grant delegated authority to the Chief Officer Resources to award the contract in relation to the new financial ledger project following market testing, using an appropriate procurement route. 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 was £76.757m for 2024/25 and £318.357m for the project life budget. 4. MAIN ISSUES 4.1 Exhibit 1 sets out the revised capital budget at period 5 as reported to Council on 30 October, 2024. ITEM 14 Page 455
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Exhibit 1: Revised Capital Budget at 30 October 2024 2024/25 (£m) Total Project Life (£m) Capital Budget Agreed 6 March 2024 76.757 318.357 Updates reported to Council on 28 August and 30 October plus adjusting for year end carried forward balances. 2.071 (1.522) Reprofiling reported to Council on 28 August and 30 October. (16.354) 0 Proposed revised Capital Budget as at Period 5 62.474 316.835 4.2 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 4.3 The overall programme summary report at Appendix 1 shows that planned expenditure is lower than the budget agreed by £0.166m mainly due to three projects not utilising their full budget. 4.4 Appendix 2 highlights three projects currently showing as off track. Two projects (RN17 Posties Park and EDUC03 Faifley Campus) require additional budget and one project (RN28 Balloch Mountain Bike Track) is off track due to revised completion dates. • EDUC3 Faifley Campus –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. • RR17 Posties Park – additional budget of £0.133m required for utility costs incurred as part of the capital build project. • RN28 Balloch Mountain Bike Track – completion date amended due to revised project scope. 4.5 Appendix 3 highlights eleven projects where the project expenditure requires to be reprofiled but there is no need for approval of additional budget. It also highlights three projects already existing in the capital programme where additional funding has been made available by the Scottish Government. • RN32 – Cycling, Walking, Safer Route Tier 1 (Active Travel) – additional Scottish Government funding of £0.257m. • RN34 – Strathclyde Partnership for Transport Bus, Cycling and Walking Infrastructure Improvements & Park & Rides – additional Scottish Government funding of £0.310m. • EDUC05 - Free School Meals Project – additional Scottish Government Page 456
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funding of £1.190m. 4.6 Appendix 4 shows all projects with approval in year and project life budgets as well as anticipated expenditure. It highlights that the 2024/25 budget is £64.479m with current forecast spend of £58.399m, a variance of £6.080m which relates to projects require reprofiling. The spend as at period 7 is £23.819m (39.71%) of the current forecast spend of £58.399m. 4.7 Members are asked to approve additional capital budget of £1.000m to fund the replacement of the Council’s financial ledger system (Agresso). The current financial system has been in use since 2006/07. The current provider has advised the Council they will no longer support locally installed versions of Agresso and therefore there is a risk of systematic failure. It is an appropriate time to review alternative systems and perform an options appraisal on available systems and compatibility with other Council systems. The capital costs requested (£1.000m) are an initial estimate of the potential cost implications if the Council decide to replace the current system with a new system and includes associated installation, hardware configuration, consultancy costs and training costs. This is based on similar projects recently carried out at other Local Authorities. It is anticipated the replacement system will result in an increased revenue cost to the Council as a result of the different licencing model and ongoing revenue implications will be reported to a future Council meeting once these are known. The bid has been reviewed by Strategic Asset Management Group who recommend that £1.000m is added to the Capital plan to procure a replacement financial ledger system and to grant delegated authority to the Chief Officer Resources to award the contract following market testing, using an appropriate procurement route. 4.8 Exhibit 2 sets out the revised capital budget at period 7 assuming approval by Council of all recommendations contained within this report. Exhibit 2: Revised Capital Budget at 18 December 2024 2024/25 (£m) Total Project Life (£m) Capital Budget as at 30 October 2024 62.474 316.835 Reprofiling Projects and new funds as reported in Appendix 3) (6.308) 1.757 Added RN17 additional funding Posties Park 0.133 0.133 Added RES14 replacement of Council’s financial ledger system 0.100 1.000 Proposed revised Capital Budget as at Period 7 58.399 319.725 5. PEOPLE IMPLICATIONS 5.1 There are no people implications in relation to this report. Page 457
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6. FINANCIAL AND PROCUREMENT IMPLICATIONS 6.1 The report notes the projected in-year financial position for capital budgets. There are no procurement implications as a result of this report. 7. RISK ANALYSIS 7.1 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. 8. EQUALITIES IMPACT ASSESSMENT (EIA) 8.1 No equalities impact was required in relation to the production of this report. 9. CONSULTATION 9.1 All services involved in delivering the capital budgets have been consulted in the compilation of this report. 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 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: 29 November 2024 Page 458
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Person to Contact: Jackie Thomson. E-mail: jackie.nicolthomson@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 Budgetary Control Report (P3) – Council 28 August 2024 Capital Budgetary Control Report (P5) – Council 30 October 2024 Page 459
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Summary at Period 7 Appendix 1 Project Life Budget Project Life Forecast Spend Project Life Variance On Track/Complete Off Track £'000 £'000 £'000 Resources 88,267 89,162 895 13 1 Citizen, Cultural and Facilities 2,912 2,912 - 2 0 Regulatory and Regeneration 57,278 57,278 - 14 0 Roads and Neighbourhoods 126,592 126,426 166- 32 2 Education 25,204 24,309 895- 4 0 HSCP 9,330 9,330 - 3 0 People and Transformation 10,142 10,142 - 4 0 Total 319,725 319,559 -166 72 3 Page 460
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Projects that are Off Track at Period 7 Appendix 2 Service Project Approved Project Life Cost Revised Project Life Cost Project Life Variance Initial Completion Date Revised Completion Date £'000 £'000 £'000 EDUC 3 Schools Estate Improvement Plan - next Phase - Faifley Campus 35,620 36,515 - 895 31/03/2027 31/03/2027 RN 17 Posties Park Sports Hub - New sports hub to include gym & running track 6,252 6,385 - 133 31/03/2022 29/11/2025 RN 28 Balloch Mountain Bike Track 600 450 150 30/11/2023 30/09/2025 Project Name: Schools Estate Improvement Plan - next Phase - Faifley Campus EDUC 3 Project Manager: Michelle Lynn Initial Completion End Date: 31/03/2027 Revised End Date: 31/03/2027 How was this project initially funded: Council Capital Funding/Prudential Borrowing. Please Detail any additional funding: n/a Why is the project classified as off track and what has caused the issues identified? New Completion Date: 31/03/2027 What are the implications on the actions proposed? Revenue Implications n/a Virement Implications n/a 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 it is anticipated that this increase can be accommodated within the overall School Improvement capital budget which is currently unallocated. Source of Funding:- Schools Estate ImprovementWhat action will be taken to rectify the position? Virement from Schools Estate Improvement Plan Project EDUC 4. Page 461
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Projects that are Off Track at Period 7 Appendix 2 Project Name: Posties Park RN 17 Project Manager: Gail McFarlane Initial Completion End Date: 31/03/2022 Revised End Date: 29/11/2025 How was this project initially funded: Council Capital Funding/Prudential Borrowing. Please Detail any additional funding: n/a Why is the project classified as off track and what has caused the issues identified? Additional budget required for utility costs incurred as part of the capital build project. What action will be taken to rectify the position? n/a New Completion Date: 29/11/2025 What are the implications on the actions proposed? Revenue Implications Virement Implications n/a Project Name: Balloch Mountain Bike Track RN 28 Project Manager: Ian Bain Initial Completion End Date: 30/11/2023 Revised End Date: 30/09/2025 How was this project initially funded: Council Capital Funding, Prudential Borrowing and Sport Scotland Please Detail any additional funding:- n/a Why is the project classified as off track and what has caused the issues identified? Completion amended due to revised project scope. What action will be taken to rectify the position? n/a New Completion Date: 30/09/2025 What are the implications on the actions proposed? Revenue Implications n/a Virement Implications n/a Prudential Borrowing of £133k has a revenue implication of £98,533 over 25 years due to the incurred interest on the debt. This equates to £3,864 per annum. Source of Funding:- Prudential Borrowing & Sports Scotland Source of Funding:- Prudential Borrowing Page 462
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Changes to Capital Plan and Implications at P7 Appendix 3 REGULATORY & REGENERATION Project - RR 3 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Installation of Solar PV at Clydebank Leisure Centre 57 57 57 Installation of Solar PV at Clydebank Leisure Centre Revised 57 57 Explanation Due to staff vacancies within the team, the project will not progress during this financial year. Project - RR 5 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Meadow Centre/Vale Swimming Pool - Air Handling Unit Upgrade 226 226 226 Meadow Centre/Vale Swimming Pool - Air Handling Unit Upgrade - Revised 226 226 Explanation Due to staff vacancies within the team, the project will not progress during this financial year. Project - RR 6 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Regeneration/Local Economic Development 725 1,100 1,907 1,855 560 2,500 7,922 Regeneration/Local Economic Development - Revised 375 2,232 2,055 760 2,500 7,922 Explanation Project development taking longer than anticipated. Project delayed due to external factors. Page 463
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Changes to Capital Plan and Implications at P7 Appendix 3 Project - RR 8 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Place Based Investment Programme 307 310 310 Place Based Investment Programme - Revised 3 307 310 Explanation Project - RR 9 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Clydebank Can 717 717 717 Clydebank Can Revised 717 717 Explanation Project - RR 10 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 LUF 2,826 11,959 2,588 14,547 LUF-Revised 9,133 5,414 14,547 Explanation Project - RR11 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Levelling Up Capacity 161 161 161 Levelling Up Capacity Revised 161 161 Explanation Project is supported by the Clydebank Town Board and its delivery and future maintenance is linked to 3 Year Investment Plan as agreed by the Board and Long Term Plan for Town funding timescales. Project is supported by the Clydebank Town Board and its delivery and future maintenance is linked to 3 Year Investment Plan as agreed by the Board and Long Term Plan for Town funding timescales. Project development process and procurement process have taken a considerable amount of time. The construction programme received from the preferred bidder indicates the completion date as end of October 2025. The budget is to support development of Levelling Up projects. It has been reprofiled to align with the revised LUF timescales. Page 464
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Changes to Capital Plan and Implications at P7 Appendix 3 ROADS & NEIGHBOURHOOD Project - RN 2 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Flood Risk Management 100 500 500 200 200 915 2,315 Flood Risk Management - Revised 400 500 200 200 915 2,215 Explanation Limited actions are required under the current management plan. Project - RN 4 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Flood Prevention 50 339 339 Flood Prevention - Revised 289 289 Explanation Original estimates for surface water management plans were lower than expected, there was also limited uptake on property level protection. Project - RN 28 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balloch Mountain Bike Track 30/09/2024 30/09/2025 500 600 - - - - 600 Balloch Mountain Bike Track - Revised 100 350 - - - 450 Explanation Project scope has been reduced which has in turn reduced match funding element. Project - RN 32 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cycling, Walking, Safer Routes Tier 1 (Active Travel) 251 389 - - - - 389 Cycling, Walking and Safer Routes Tier 1 (Active Travel) 638 - - - - 638 Explanation Additional funding from Scottish Government. Page 465
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Changes to Capital Plan and Implications at P7 Appendix 3 Project - RN 34 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Strathclyde Partnership for Transport - Bus, cycling and walking infrastructure improvements & Park and Rides 310 - - - - - - Strathclyde Partnership for Transport - Bus, cycling and walking infrastructure improvements & Park and Rides - Revised 310 - - - - 310.0 Explanation Additional Scottish Government funding. EDUCATION Project - EDUC 4 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan Schools Estate Improvement Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Schools Estate Improvement Plan - Revised 895 4,065 - - - - 4,065 3,170 - - - - 3,170 Explanation Project - EDUC 5 Initial End Date Revised End Date Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 Future Years Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 Free School Meals Expansion 31/03/2025 1,190 - - - - - - Free School Meals Expansion 1,190 - - - 1,190 Explanation OVERALL REPROFILING TOTAL 6,308 Adjustment required to accommodate Faifley Campus project. As part of the school meal expansion programme in primary schools the Scottish Government confirmed on 23 September 2024 an additional £1.190m funding has been allocated to the Council to support the phased expansion of free school meals to those in receipt of Scottish Child Payment in Primary 6 and 7 from February 2025. Page 466
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All Approved Projects at Period 7 Appendix 4 Service Project Completion Date Revised End Date Project Life Budget Spend to 31 /3/24 Spend to Date Projected Future Spend Total Projected Spend Project Variance Approved Budget 2024/25 Actual to date 2024/25 Revised Forecast 2024/25 In Year Variance £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 RES 1 Valuation Joint Board - Requisition of ICT Equipment 31/03/2025 31/03/2025 25 6 12 13 25 0 11 6 11 0 RES 2 Cash Receipting system enhancements 30/09/2023 31/03/2025 30 5 5 25 30 0 25 - 25 0 RES 4 Agresso Development 30/04/2024 30/09/2024 102 62 86 16 102 0 40 24 40 0 RES 5 Cost of Living 31/03/2026 31/03/2026 1,002 502 632 370 1,002 0 250 130 250 0 RES 6 IFRS 16 Database 31/03/2023 31/03/2025 5 - - 5 5 0 5 - 5 0 RES 7 Community Success Capital Fund 31/03/2025 150 - - 150 150 0 150 - 150 0 RES 8 Community Sports Success 31/03/2025 250 - 10 240 250 0 250 10 250 0 RES 9 Strathleven Place (formerly part of Glencairn House project) 31/03/2024 31/03/2025 1,590 - - 1,590 1,590 0 1,590 - 1,590 0 RES 10 New Sports Changing Facility Dumbarton West (Old OLSP site) 31/03/2024 31/03/2025 349 9 9 340 349 0 340 - 340 0 RES 11 Building Upgrades and H&S - lifecycle & reactive building upgrades 31/03/2025 31/03/1933 25,370 - 743 24,627 25,370 0 3,122 743 3,122 0 RES 12 Direct Project Support 31/03/2025 31/03/2025 14,274 - 73 14,201 14,274 0 1,586 73 1,586 0 RES 13 Depot Rationalisation 31/03/2025 31/03/2025 8,500 648 1,585 6,915 8,500 0 500 937 500 0 EDUC 3 Schools Estate Improvement Plan - next Phase - Faifley Campus 31/03/2027 31/03/2027 35,620 2,450 13,000 23,515 36,515 895 15,181 10,550 15,181 0 RES 14 Finance Ledger System 01/01/2025 31/03/2027 1,000 - - 1,000 1,000 0 - - 100 100 Total Resources 88,267 3,682 16,155 73,007 89,162 895 23,050 12,473 23,150 100 CCF 1 Heritage Capital Fund 30/03/2024 31/03/2026 2,491 2,234 2,364 127 2,491 0 257 130 257 0 CCF 2 Transformation of Infrastructure Libraries and Museums 31/03/2024 31/03/2025 421 326 368 53 421 0 95 42 95 0 Total CCCF 2,912 2,560 2,732 180 2,912 0 352 172 352 0 RR 1 Legal Case Management System 31/03/2024 31/03/2026 33 - - 33 33 0 - - - 0 RR 2 Re -imagine Antonine Wall 31/03/2024 31/03/2025 25 10 10 15 25 0 15 - 15 0 RR 3 Installation of Solar PV at Clydebank Leisure Centre 31/03/2023 31/03/2025 61 4 4 57 61 0 57 - - (57) RR 4 Replace failed heating controls/valves & recommission 31/03/2023 31/03/2025 20 14 20 - 20 0 6 6 6 0 RR 5 Leisure Energy projects - air handling units, upgrade lighting, circulating pumps, and draught proofing 31/03/2023 31/03/2025 290 64 64 226 290 0 226 - - (226) RR 6 Regeneration/Local Economic Development 31/03/2025 31/03/2025 7,922 5,991 6,084 1,838 7,922 0 1,100 93 375 (725) RR 7 Regeneration Fund 31/03/2024 31/03/2028 10,931 7,107 7,184 3,747 10,931 0 616 77 616 0 RR 8 Place Based Investment 31/03/2023 31/03/2027 1,708 1,398 1,400 308 1,708 0 310 2 3 (307) RR 9 Clydebank Can on the Canal 31/12/2022 31/12/2025 757 40 40 717 757 0 717 - - (717) RR 10 Level Up Funding 31/03/2025 31/03/2026 22,100 7,553 10,333 11,767 22,100 0 11,959 2,780 9,133 (2,826) RR 11 Level Up Capacity Funding 31/03/2023 31/03/2026 320 161 161 159 320 0 161 - - (161) RR 12 District Heating Network Expansion 31/03/2024 31/03/2028 11,104 - 186 10,918 11,104 0 250 186 250 0 RR 13 Clyde Mission Catalyst Fund 31/03/2024 31/03/2026 2,000 415 415 1,585 2,000 0 1,196 - 1,196 0 RR14 3 Castlegate Avenue - Securing site to make safe 31/03/2025 7 - 7 - 7 0 7 7 7 0 Total Regulatory and Regeneration 57,278 22,757 25,908 31,370 57,278 0 16,620 3,151 11,601 (5,019) RN 1 Infrastructure - Roads 31/03/2025 31/03/2033 22,808 - 1,033 21,775 22,808 0 2,454 1,033 2,454 0 RN 2 Flood Risk Management 31/03/2025 31/03/2033 2,315 - 11 2,204 2,215 (100) 500 11 400 (100) RN 3 Street lighting and associated electrical infrastructure 31/03/2025 31/03/2033 914 - 77 837 914 0 114 77 114 0 RN 4 Flood Prevention 31/03/2025 31/03/2025 500 160 194 256 450 (50) 339 34 289 (50) RN 5 Vehicle Replacement 31/03/2024 31/03/2033 12,219 - 2,146 10,073 12,219 0 3,063 2,146 3,063 0 RN 6 Auld Street Clydebank - Bond 31/03/2024 31/03/2025 256 214 214 42 256 0 42 - 42 0 RN 7 River bank erosion repair - Levenhowe 31/03/2024 31/03/2025 20 - - 20 20 0 20 - 20 0 RN 8 Clydebank Charrette, A814 31/03/2022 31/03/2025 4,303 4,215 4,247 56 4,303 0 88 32 88 0 RN 9 Roads Plant 31/03/2025 31/03/2025 80 14 14 66 80 0 66 - 66 0 RN 10 A813 Road Improvement Phase 1 31/03/2026 31/03/2027 1,700 1,057 1,366 334 1,700 0 643 309 643 0 RN 11 Pavement Improvements 31/03/2025 31/03/2025 1,000 958 958 42 1,000 0 42 - 42 0 RN 12 Traffic Signal Updates 31/03/2025 31/03/2025 300 274 274 26 300 0 26 - 26 0 RN 13 Gruggies Burn Flood Prevention 31/03/2024 31/03/2028 15,028 576 783 14,245 15,028 0 550 207 550 0 Full Project Life In Year Page 467
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All Approved Projects at Period 7 Appendix 4 Service Project Completion Date Revised End Date Project Life Budget Spend to 31 /3/24 Spend to Date Projected Future Spend Total Projected Spend Project Variance Approved Budget 2024/25 Actual to date 2024/25 Revised Forecast 2024/25 In Year Variance £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Full Project Life In Year RN 14 Electrical Charging Points - Rapid Charge 31/03/2023 31/03/2025 314 299 314 - 314 0 15 15 15 0 RN 15 River Leven Flood Prevention Scheme 31/03/2024 31/03/2026 801 181 181 620 801 0 - - - 0 RN 16 Vehicle Replacement Strategy 31/03/2025 31/03/2033 1,400 - - 1,400 1,400 0 1,400 - 1,400 0 RN 17 Posties Park Sports Hub - New sports hub to include Gym & running track 31/03/2022 29/11/2025 6,252 5,878 6,379 6 6,385 133 374 501 507 133 RN 18 Public non-adopted paths and roads 31/03/2024 31/03/2033 2,419 - 68 2,351 2,419 0 619 68 619 0 RN 19 Cemetery Extension, North Dalnotter 31/03/2024 31/03/2025 264 14 14 250 264 0 250 - 250 0 RN 20 Vale of Leven Cemetery 31/03/2025 31/03/2025 801 741 802 - 802 1 60 61 61 0 RN 21 Allotment Development 31/03/2024 30/09/2024 492 215 369 123 492 0 150 154 151 1 RN 22 Waste Transfer Station 31/03/2024 31/03/2026 1,980 - 159 1,821 1,980 0 200 159 200 0 RN 23 Play Area Upgrade Programme 31/03/2028 31/03/2033 1,400 149 501 899 1,400 0 417 352 417 0 RN 24 Nature Restoration Fund 31/03/2025 31/03/2025 - - - - - 0 - - - 0 RN 25 Whitecrook Tennis Court 31/03/2024 31/03/2024 60 44 44 16 60 0 15 - 15 0 RN 26 East End Park Resurfacing 31/03/2024 31/03/2025 385 6 6 379 385 0 379 - 379 0 RN 27 Park Improvements and Multi Games Area - Goldenhill Park 31/03/2024 31/03/2025 150 - - 150 150 0 150 - 150 0 RN 28 Balloch Mountain Bike Track 30/11/2023 30/09/2025 600 - - 450 450 (150) 600 - 100 (500) RN 29 Pappert 2G Pitch 31/03/2024 31/03/2025 250 8 8 242 250 0 242 - 242 0 RN 30 Kilmaronock Cemetery Extension 31/03/2023 31/03/2025 50 45 45 5 50 0 13 - 13 0 RN 31 Exxon City Deal 31/03/2027 31/03/2028 44,325 6,238 7,983 36,342 44,325 0 2,500 1,745 2,500 0 RN 32 Cycling, Walking, Safer Routes Tier 1 (Active Travel) 31/03/2025 31/03/2025 646 - 15 631 646 0 389 15 638 251 RN 33 Creation of 3 new all weather pitches at Argyll Park, Posties Park and Mountblow playing fields. 31/03/2026 2,250 - 23 2,227 2,250 0 500 23 500 0 RN 34 Strathclyde Partnership for Transport - Bus, cycling and walking infrastructure improvements & Park and Rides 31/03/2025 310 - 1 309 310 0 310 1 310 0 Total Roads and Neighbourhood 126,592 21,286 28,229 98,197 126,426 (166) 16,530 6,943 16,264 (265) EDUC 1 AV Equipment - Education 31/03/2030 859 292 331 528 859 0 60 39 60 0 EDUC 2 Digital Inclusion 31/03/2023 31/03/2025 356 324 324 32 356 0 32 - 32 0 EDUC 4 Schools Estate Improvement Plan 31/03/2025 22,799 18,734 18,971 2,933 21,904 (895) 4,065 237 3,170 (895) EDUC 5 Free School Meals Expansion 31/03/2025 1,190 - - 1,190 1,190 0 1,190 - 1,190 0 Total Education 25,204 19,350 19,626 4,683 24,309 (895) 5,347 276 4,452 (895) HSCP 1 Special Needs - Aids & Adaptations for HSCP clients 31/03/2025 31/03/2025 6,765 - 174 6,591 6,765 0 867 174 867 0 HSCP 2 ICT Modernisation HSCP 31/03/2025 31/03/2025 1,668 40 52 1,616 1,668 0 63 12 63 0 HSCP 3 Community Alarm upgrade 31/03/2025 31/03/2025 897 - 18 879 897 0 155 18 155 0 Total HSCP 9,330 40 244 9,086 9,330 0 1,085 204 1,085 0 P&T 1 ICT Modernisation 31/03/2025 31/03/2025 4,718 - 372 4,346 4,718 0 482 372 482 0 P&T 2 ICT Security & DR 31/03/2025 31/03/2025 4,143 - 142 4,001 4,143 0 642 142 642 0 P&T 3 365 Implementation 30/09/2023 31/03/2026 983 418 504 479 983 0 325 86 325 0 P&T 4 Development of Workforce Management System 31/03/2030 31/03/2030 298 - - 298 298 0 46 - 46 0 Total P&T 10,142 418 1,018 9,124 10,142 0 1,495 600 1,495 0 Overall Total 319,725 70,093 93,912 225,647 319,559 (166) 64,479 23,819 58,399 (6,080) Page 468
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 18 December 2024 ___________________________________________________________________ Subject: Housing Revenue Account Budgetary Control Report to 31 October 24 (Period 07) 1. Purpose 1.1 The purpose of this report is to advise Council of the 2024/2025 HRA revenue budget position on 31 October 2024 and the forecast position of the HRA reserves as of 31 March 2025. 2. Recommendations 2.1 Council is asked to: i. note the HRA revenue account is forecasting an adverse variance of £1.317m. If required, the adverse variance will be offset by using HRA reserves of £0.968m and a General Fund reserve contribution of £0.349m. ii. note the HRA would be expected to develop a repayment plan to replenish the HRA reserves to meet the prudential target and reimburse the General Fund for any contribution made towards the HRA deficit. iii. note that work will continue to identify efficiencies across all areas of the HRA revenue account budget to minimise the adverse variance. 3. Background Revenue 3.1 The Council approved a £53.218m HRA revenue budget for 2024/2025 on the 6 of March 2024 4. Main Issues Revenue 4.1 This report advises Council of the key issues contributing to the Housing Revenue Account (HRA) forecasting a 2024/25 deficit of £1.317m, with the deficit reducing to £0.349m through using all existing HRA reserves. This leaves the HRA in a vulnerable financial position with no capacity to absorb any unforeseen future costs unless the reserves are rebuilt. The forecast deficit has reduced by £0.857m since the previous report to Council in October, with the key movements detailed in paragraph 4.4 below. 4.2 Council has previously been advised that the Housing (Scotland) Act 1987 specifies that if a HRA deficit arises in any one year, the local authority must make a General Fund contribution to make good the deficit. In this event, the ITEM 15 Page 469
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HRA would be expected to repay that contribution from any future HRA surpluses. 4.3 On 25 October 2023, the Financial Update report taken to full Council advised that, after discussions between the Council and the West Dunbartonshire Tenants and Residents Organisation (WDTRO), a commitment was made to the WDTRO that the Housing Maintenance Trading Organisation (HMTO) surplus, used to support the General Services budget, would be phased out over a three-year basis at a projected £0.290m per annum. The HMTO is currently forecast to return a £0.594m surplus to the General Fund in 2024/25. 2025/26 is the final year of the three-year phasing out period. This strategy was formally agreed as part of agreeing the Council general services budget in March 2024 which incorporated the general services cost pressure reported in October 2023. However, this arrangement was implemented at a time when the financial health of the HRA was robust with sufficient reserves to absorb unforeseen costs at a reasonable scale. As referenced at paragraph 4.1 this is no longer the case due to the scale of the unforeseen financial challenges the HRA is facing. The provision of a surplus to the General Fund whilst the HRA is in deficit will exacerbate the financial pressure on the HRA and make it more challenging to rebuild the HRA reserves to comply with the agreed prudential target of 2% of expenditure (which equates to £1.162m based on the draft estimates for the 2025/26 budget). 4.4 Council was advised on the 30 October 2024 that the Housing Senior Management Team were working to identify efficiencies across all areas of the HRA revenue account budget to minimise the in-year deficit and that a report on progress in this matter would be presented to this Council meeting. The management team have identified a range of measures that reduce the in- year HRA deficit by £0.857m, as detailed in Exhibit 1 and paragraph 4.5. Exhibit 1 – Movement in HRA Forecast BCR05 to BCR07 Subjective Summary Forecast BCR07 2024/25 Forecast BCR05 2024/25 Movement RAG Status £000 £000 £000 Employee Costs 7,377 7,283 94 Property Costs 2,600 2,600 0 Transport Costs 158 158 0 Supplies & Services 439 411 28 Support Services 2,633 2,785 (152) Other Expenditure 626 560 66 Repairs & Maintenance 12,564 13,393 (829) Bad Debt Provision 1,002 879 123 Void Loss / Council Tax 1,095 1,282 (187) Loan Charges 26,041 26,041 0 Total Expenditure 54,535 55,392 (857) Total Income (53,218) (53,218) 0 Net Expenditure 1,317 2,174 (857) Page 470
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4.5 The key contributing factors (favourable and adverse) to the forecast HRA expenditure reduction are detailed in Exhibit 2. Exhibit 2 – Key Factors to Expenditure Reduction Subjective Summary Movement Key Factors £000 Employee Costs 94 Officers had targeted a £200k saving through controls over overtime and recruitment. The expected saving is forecast to be closer to £100k. Supplies, Services and Admin 28 Additional ICT software costs to the HRA for services to improve service automation and modernisation. These costs were not included in the previous forecast. Support Services (152) Saving identified following a review of the Central Support Services recharge to the HRA. The forecast recharge has been reduced to take account of reduced employer pension contributions. Other Expenditure 66 Additional rent abatement cost because service demand is exceeding reduced budget and ongoing support to Womens Aid organisations in respect of tenancy sustainment. Repairs & Maintenance (829) Additional savings identified include: o £450,000 reduction on repair spend through the identification of additional works that qualifies for capitalisation. o £50,000 reduction in Grounds Maintenance spend through agreed revised work specifications. o £130,000 reduction in planned maintenance spend through revised work specifications. o £200,000 of rechargeable repair income forecast through strict application of policy of recharging tenants where works are caused by tenant abuse or neglect. Bad Debt Provision 123 Additional provision for the non-collection of HRA debt. HRA debt has been increasing due to strict application of the rechargeable repairs policy. These types of debt can be difficult so it is prudent to make an increase in the provision for the non-recovery of a proportion of this debt. Page 471
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Subjective Summary Movement Key Factors £000 Void Loss (Council Tax / Lost Rents) (187) Officers identified additional properties that qualify for Council Tax exemption and will receive 100% relief. There is also a £30,000 reduction in the forecast void rental income loss. Total (857) HRA Variance Report on Variances > £50,000 Adverse Variances Loan Charges - £3.949m Adverse (BCR05 - £3.949m Adverse) 4.6 The main pressure on the HRA revenue account is elevated borrowing costs leading to higher interest and expense payments on new borrowing and debt refinancing. When the Council went to rent consultation in the last quarter of 2023 and drafted the 2024/2025 HRA budget, a HRA loan charge budget of £22.092m was set with the assumption that council borrowing costs would fall during 2024/2025. Unfortunately, local authority borrowing costs have remained elevated and exceed the rates used when setting the HRA budget. HRA outstanding debt on 31 March 2024 was £301m, with the HRA debt expected to increase to £356m on 31 March 2025. Interest and expense payments are forecast to be £3.531m more than the 2024/2025 budget. 4.7 A further pressure on the HRA loan charge budget is higher than planned debt repayments. The HRA repays capital borrowing over the expected economic life of the asset invested in. (E.g. heating systems – 20 years, new build properties – 60 years). The HRA debt repayment period has decreased (leading to higher annual debt repayment) as the Council has recently reprofiled capital expenditure on housing stock to improve the condition of the asset to allow a quicker turnaround of void properties – more information is provided at paragraph 4.14. Debt repayments are forecast to be £0.418m more than the 2024/2025 budget. Other Expenditure - £0.296m Adverse (BCR05 - £0.230m Adverse) 4.8 The key adverse variance is a forecast rent abatement overspend of £0.200m. Demand is exceeding the new reduced abatement budget. There has been considerable progress in reducing this area of spend with the 2024/2025 rent abatement spend forecast to be more than £0.150m less than the 2023/2024 spend. 4.9 A further variance is a forecast spend of £0.084m to Women’s Aid. The HRA budget 2024/2025 removed payments to Women’s Aid, however through discussions with the Women’s Aid organisations officers have agreed to retain the spend in 2024/25. Page 472
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Favourable Variances 4.10 The HRA cost pressures detailed present unprecedented financial challenges for the Council’s Housing Revenue Account. As reported at 4.5 above, officers have been reviewing HRA spend on an ongoing basis and have identified further net revenue savings of £0.857m that add to previously reported favourable variances against the 2024/2025 HRA budget. Employee Costs - £0.284m Favourable (BCR05 - £0.378m Favourable) 4.11 The HRA employee cost budget is £7.661m. The spend against this budget is influenced by staff turnover, staff overtime spend and the success in recruiting to posts as they become vacant. Management continues to target staffing efficiencies to deliver a significant underspend against budget in 2024/2025, including tighter controls on staff recruitment and overtime together with a review of the HRA staff recharge to the HRA capital account and the General Fund account. Support Services - £0.152m Favourable (BCR05 - £0.003m Favourable Variance) 4.12 The HRA central support charge budget is £2.788m. A review of the central support recharge to the HRA identified a saving of £0.150m because the previous HRA forecast had not taken account of reduced employer pension contribution costs within Central Services. Repair & Maintenance – £2.644m Favourable (BCR05 - £1.816m Favourable Variance) 4.13 The HRA repair and maintenance budget is £15.208m. This budget primarily funds reactive repairs, void repairs, planned maintenance, compliance works, and environmental works. 4.14 Officers continuously review spend to identify larger value works that qualify for capitalisation (for works which extend the lifespan of assets). A review of work conducted in void properties to bring properties back to relet standard assessed that a considerable proportion of works extend the lifespan of assets and should be appropriately charged to the HRA capital account. Furthermore, the completion of an Electrical Installation Condition Report (EICR) is complementary to the environmental sensor installation programme and is also being financed through the capital account. 4.15 There have been discussions with Greenspace colleagues and the Greenspace service will deliver a £0.150m saving by revising work specifications and streamlining processes. 5. People Implications 5.1 There are no people implications. Page 473
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6. Financial and Procurement Implications 6.1 Other than the financial position noted above, there are no financial implications of the budgetary control report. There are no procurement implications arising from this report. 7. Risk Analysis 7.1 The main financial risks to the ongoing financial position relate to unforeseen cost being identified between now and the end of the financial year. This can affect all service areas. 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 All services involved in delivering the HRA revenue budget have been consulted during the compilation of this report. 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: 18 December 2024 ___________________________________________________________________ Person to Contact: Jim McCarron - Business Unit Finance Partner Telephone: 07772 322055 e-mail james.mccarron@west-dunbarton.gov.uk Appendices: Appendix 1 - Budgetary Position (Revenue) Appendix 2 - Variance analysis (Revenue) Background Papers: None Wards Affected: All Page 474
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 HRA REVENUE BUDGETARY CONTROL 2024/25 PERIOD END DATE Budget 2024/25 Spend to Date 2024/25 Forecast Spend 2024/25 Annual RAG Status £000 £000 £000 £000 % Employee Costs 7,661 4,320 7,377 (284) -4% Property Costs 2,600 1,517 2,600 0 0% Transport Costs 148 92 158 10 0% Supplies, Services And Admin 406 256 439 33 8% Support Services 2,788 1,536 2,633 (155) -6% Other Expenditure 330 367 626 296 90% Repairs & Maintenance 15,208 6,937 12,564 (2,644) -17% Bad Debt Provision 876 585 1,002 126 14% Void Loss (Council Tax / Lost Rents) 1,109 823 1,095 (14) -1% Loan Charges 22,092 15,191 26,041 3,949 18% Total Expenditure 53,218 31,624 54,535 1,317 2% House Rents (51,049) (29,779) (51,049) 0 0% Lockup Rents (215) (125) (215) 0 0% Factoring/Insurance Charges (1,555) (907) (1,555) 0 0% Other rents (130) (76) (130) 0 0% Interest on Revenue Balance (146) (85) (146) 0 0% Miscellaneous income (123) (72) (123) 0 0% Transfer from Reserves 0 0 0 0 0% Total Income (53,218) (31,044) (53,218) 0 0% Net Expenditure 0 580 1,317 1,317 31 October 2024 Subjective Summary Forecast Variance 2024/25 Page 475
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 October 2024 PERIOD 7 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Employee Costs 7,661 7,377 (284) -4% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Support Services 2,788 2,633 (155) -6% Main Issues An underspend is anticipated because the budgeted recharge of £2.788m was overstated because it not account for reduced employer pension contributions across services. Mitigating Action Anticipated Outcome Variance Analysis Forecast Variance 2024/25 Subjective Description Subjective Analysis RAG Status Cost of employees charged directly to the HRA. Variance Narrative An employee cost underspend is anticipated as management target staffing efficiencies, including tighter controls on staff recruitment and overtime. None required. A year end underspend. Variance Analysis Subjective Analysis None required. A year end underspend. Forecast Variance 2024/25 RAG Status Subjective Description Recharge of Central Supports costs ( e.g. Finance, Legal, HR. ICT ) to the HRA Variance Narrative Page 476
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 October 2024 PERIOD 7 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Other Expenditure 330 626 296 90% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Repairs & Maintenance 15,208 12,564 (2,644) -17% Main Issues Mitigating Action Anticipated Outcome Variance Analysis A rent abatement overspend of £200k is forecast because demand is exceeding the new reduced abatement budget. It is worth noting that the 2024/2025 rent abatement spend is forecast to be £150,000 less than the 2023/2024 spend. A year end overspend. Forecast Variance 2024/25 Subjective Description Rent abatements, support for young tenants, legal and banking expenses, and other sundry costs. Variance Narrative Subjective Analysis RAG Status Housing Operations and Building Service will continue to place the strictest controls over the abatement process to minimise this spend. Subjective Description Responsive and planned repair and maintenance services to houses and lockups and income recovered from tenant rechargeable and owner occupier repairs. Variance Narrative A high volume of repair orders and ongoing inflationary pressures are driving up costs, with the most significant pressures across responsive repair and void repair budgets. A year end underspend Officers have reviewed the repairs spend and identified a potential saving against the 2024/2025 repair and maintenance budget by transferring spend charged to revenue to the capital programme. A review of specific workstreams identified revenue funded works that extend the lifespan of the assets. Specifically work carried out in void properties to bring these back to relet standard are significant and include component renewals. Furthermore, the completion of an Electrical Installation Condition Report (EICR) is complementary to the environmental sensor installation programme. Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Page 477
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 October 2024 PERIOD 7 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Bad Debt Provision 876 1,002 126 14% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Loan Charges 22,092 26,041 3,949 18% Main Issues Mitigating Action Anticipated Outcome A year end overspend. Variance Analysis Forecast Variance 2024/25 Variance Narrative Subjective Analysis RAG Status Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status The Council will continue to actively manage its external / internal borrowing to ensure that borrowing costs are minimised Subjective Description Loans Fund repayments and the payment of interest and expenses on outstanding HRA debt. Local authority borrowing costs for medium / long term Public Works Loan Board (PWLB) debt and for short term debt have remained high. The higher interest rates are driving up HRA debt financing costs. The HRA budget assumed that borrowing rates would reduce in 2024/2025. Whilst the Bank of England base rates reduced by 0.25% in early November, 2024/2025 borrowing rates will be higher than budgeted. Variance Narrative The Council needs to make prudent provision for the non collection of HRA debt. HRA debt has been increasing as officers more stringently apply the rechargeable repairs policy for repairs caused by tenant neglect / abuse. These debts are difficult to collect because tenants often have multiple other debts with the Council and others. Housing and Corporate Debt Recovery staff continue to work closely to maximise contact with customers in arrears and to put in place reasonable affordable repayment plans that take account of customers personal circumstances. A year end overspend. Subjective Description Provision for uncollected rent across range of HRA debts, including rent arrears, rechargeable repairs, factoring repairs. Page 478
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 18 December 2024 ___________________________________________________________________ Subject: Housing Revenue Account (HRA) Capital Budgetary Control Report to 31 October 24 (Period 7) 1. Purpose 1.1 This report provides an update on the HRA capital programme to 31 October 2024. 2. Recommendations 2.1 Committee is asked to: i) Note the current position of the 2024/2025 HRA capital budget and the HRA capital plan. ii) Note that in year financial performance is monitored against a 2024/2025 capital expenditure budget of £73.664m and a 2024/2025 capital income budget of £10.003m, a one-year borrowing requirement of £63.661m. iii) Note that project life performance is monitored against a five-year project life expenditure budget of £319.738m and a project life income budget of £54.577m, a five-year borrowing requirement of £265.161m. iv) Note that there are eighteen projects reporting off track with an anticipated over / under spend against their 2024/2025 budgets, with a forecast net underspend of £2.918m in 2024/2025. v) Note that all projects are currently on track to achieve their planned completion dates and to deliver within their respective five-year project life budgets. 3. Background 3.1 On 6 March 2024 the Council approved the updated Housing Revenue Account Capital Plan for 2024/2025 to 2028/2029. 3.2 Since then budget adjustments have taken place to bring forward in year project under/over spends during 2023/2024, to reflect up to date information on progress delivering the plan and any need for budget acceleration and budget deceleration from / to future years, and to update the expenditure and income budgets for Affordable Housing Supply projects to reflect the 2023/2024 outturn and to reflect that the most recent cost and income forecasts The budget adjustments result in revised capital budgets as set out in Exhibit 1. ITEM 16 Page 479
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Exhibit 1: Revised HRA Capital Budget 2024/2025 – 20278/2029 2024/25 BCR07 (£m) Project Life BCR07 (£m) Project Life March 24 (£m) Other Capital Expenditure 7.165 27.129 27.180 Major Component Replacement 19.795 92.604 92.604 Void Capital 4.902 19.212 20.712 Structural & Environmental 2.767 14.175 14.175 Support Costs 2.761 14.367 14.367 Affordable Housing Supply Programme 36.274 152.251 149.053 Total Expenditure 73.664 319.738 318.091 Total Income 10.003 54.577 47.029 Prudential Borrowing 63.661 265.161 271.062 4. Main Issues 4.1 Progress against the 2024/25 capital plan is detailed in: Appendix 1 – HRA Capital Summary BCR07 Appendix 2 – HRA Capital Detail BCR07 4.2 The HRA capital summary report at Appendix 1 reports that planned expenditure and planned income are both in line with the overall project budgets. Appendix 1 reports that there are twenty-eight capital projects where expenditure / income budget is tracked over the multi-year life of the project and twenty-nine projects classified as rolling programme projects / contingency / fees, that is programmes of work where an annual budget is set each year that takes account of demand, cost, and affordability. 4.3 Appendix 2 shows all projects with approved in year and project life budgets as well as forecast expenditure / income. The appendix highlights a 2024/2025 expenditure budget of £73.664m and a forecast spend of £70.486m, an underspend of £3.178m (4.3% of the 2024/2025 budget) The 2024/2025 capital income budget is £10.003m, with a forecast income of £9.743m. 4,4 Commentary on the 2024/2025 expenditure variances are set out in Exhibit 2 below. Exhibit 2: Project Over / Underspends 2024/2025 Project 2024/2025 BCR07 Forecast (£m) 2024/2025 BCR07 Budget (£m) 2024/2025 Variance (£m) Commentary 1 Special Need Adaptations 0.506 0.655 (0.149) Reduced throughput of capital adaptations this year Inhouse adaptations team is fully up to date with its order books. Improved performance with average time of 46 days. Underspend will be available for reprofiling in future years. Page 480
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Project 2024/2025 BCR07 Forecast (£m) 2024/2025 BCR07 Budget (£m) 2024/2025 Variance (£m) Commentary 2 Capitalised Minor Works 4.116 3.000 1.116 Transfer of Electrical Installation Condition Works spend to minor works budget. Overspend will be re-profiled over future years. Officers are increasingly directing minor works requests to the relevant planned capital programme. 3 Environmental Sensors 1.620 2.000 (0.380) Excellent progress with this programme with an anticipated 2,000 sensors due to be installed this year. Underspend reflects the mobilization period and challenges in getting access to properties. Underspend will be available for reprofiling in future years. 4 Roofing Works 2.201 2.500 (0.299) Underspend reflects the changing mix of the capital programme with an increased number of mixed tenure blocks that require owner consent before work can start. This necessary process delay project start Underspend will be available for reprofiling in future years. 5 Void House Works 5.438 4.902 0.536 Transfer of increased void spend to HRA capital account following a review. Void delivery costs, including overtime on voids and contractor spend, have reduced as void number have reduced. Overspend will be re-profiled over future years. 6 Environmental Works 0.992 1.068 (0.076) Reduced throughput of environmental works this year because operatives have also worked across other HRA service areas. Underspend will be available for reprofiling in future years. 7 Contingency 0.000 0.100 (0.100) Contingency released to offset cost pressures across the HRA capital account. Page 481
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Project 2024/2025 BCR07 Forecast (£m) 2024/2025 BCR07 Budget (£m) 2024/2025 Variance (£m) Commentary 8 Clydebank East 9.896 9.700 0.196 Good progress with development and is ahead of previous projection 32 homes handed over to date Pappert Expenditure 7.446 9.653 (2.207) Development now on site and cash flow accurately based on agreed programme of works and this is reflected in the projection No impact on overall project budget or timescales and development on track. 9 Pappert Income (2.803) (3.303) 0.500 Affordable Housing Supply Programme grant funding reprofiled. 10 Queen Mary Avenue 0.010 0.120 (0.110) Revised projection based on development project plan Queens Quay Site C Expenditure 0.000 1.000 (1.000) Underspend reflects delays progressing this project within a financial viability assessment and the aspiration to acquire additional neighbouring land. 11 Queens Quay Site C Income 0.000 (1.000) 1.000 The acquisition grant funding because of the project not been taken forward 12 Dennystoun Forge 0.060 0.250 -0.190 Revised projection based on development project plan Future New Build & Related Regeneration Projects / Professional Fees 0.500 1.015 -0.515 Ongoing review of the programme allowed non committed funds to be released to offset cost pressures across the HRA capital account. 13 Future New Build & Related Regeneration Projects Income (0.200) 0.000 (0.200) Ongoing review of the programme allowed non committed funds to be released to offset cost pressures across the HRA capital account. 14 Buyback Grant Income (2.417) (2.858) 0.441 Revised projection based on the distribution of Scottish Government acquisition funding. 15 7 – 9 Gilmour Avenue Income (0.215) (0.195) (0.020) Revised projection based on the application of the Strategic Local Programme 16 Bank Street Income (0.518) 0.000 (0.518) Revised projection based on the application of the Strategic Local Programme 17 Bonhill Gap Sites Income (0.514) 0.000 (0.514) Revised projection based on the application of the Strategic Local Programme 18 Silverton Income (0.429) 0.000 (0.429) Revised projection based on the application of the Strategic Local Programme (2.918) Page 482
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4.5 Budget assumptions are required to forecast costs / income, especially where projects span multi-year and project finances have yet to be finalised. It is therefore likely that the projected year end budgetary position will change during the year. 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. 8. Risk Analysis 8.1 The main risks are as follows: (a) The reported variances should be viewed in the knowledge that there are several variable factors which could arise between now and 31 March which could affect the year end results for capital budgets. (b) Because 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. 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 during 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. ________________ Page 483
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Laurence Slavin Chief Officer – Resources Date: 18 December 2024 Person to Contact: Jim McCarron Business Partner, Finance 07772 322055 E-mail: james.mccarron@west-dunbarton.gov.uk Appendices: Appendix 1 - HRA Capital Summary BCR07 Appendix 2- HRA Capital Details BCR07 Background Papers: Housing Revenue Account (HRA) Capital Investment Programme, Revenue Budget, and Rent Levels for 2024/25 - Council 6 March 2024. Wards Affected All Wards Page 484
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Period 7 - 31 October 24 Appendix 1 Summary HRA Capital Expenditure Project Life Budget Project Life Forecast Spend Project Life Variance Rolling Programmes Projects Projects On Track / Complete Projects Off Track £000 £000 £000 Other Capital Expenditure 27,129 27,129 - 5 3 2 1 Major Component Replacement 92,604 92,604 - 10 1 1 - Void Capital 19,212 19,212 - 1 - - - Structural & Environmental 14,175 14,175 - 3 1 1 - Support Costs 14,367 14,367 - 1 - - - Affordable Housing Supply Programme 152,253 152,253 - 5 12 7 5 Total Expenditure 319,740 319,740 - 25 17 11 6 Total Income (54,576) (54,576) - 3 12 6 6 Total 265,164 265,164 - Page 485
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All Approved HRA Capital Projects at Period 7 _ 31 October 24 Appendix 2 Project Category Planned End Date Revised End Date Project Life Budget Expenditure to 31 /3/24 Expenditure to Date Projected Future Spend Project Life Forecast Spend Project Variance Approved Budget 2024/25 Expenditure to Date 2024/25 Projected Spend 2024/25 In Year Variance 2024/25 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 OCE1 Special Needs Adaptations Rolling 31/03/2025 3,408 - 316 3,092 3,408 - 655 316 506 (149) OCE2 Capitalised Minor Works Rolling 31/03/2025 10,945 - 1,868 9,077 10,945 - 3,000 1,868 4,116 1,116 OCE3 Better Homes Priority Budget Rolling 31/03/2025 1,680 - 726 954 1,680 - 705 726 705 - OCE4 Environmental Sensors Programme Project 31/03/2029 10,000 103 949 9,051 10,000 - 2,000 846 1,620 (380) OCE5 Housing CCTV Installation Programme Project 31/03/2025 750 - - 750 750 - 750 - 750 - OCE6 QL Development Rolling 31/03/2025 109 - 9 100 109 - 21 9 21 - OCE7 Gypsy Travellers Site Rolling 31/03/2025 141 - - 141 141 - 34 - 34 - OCE8 Airport Noise Project 31/03/2026 96 - - 96 96 - - - - - Other Capital Expenditure 27,129 103 3,868 23,261 27,129 - 7,165 3,765 7,752 587 MCR1 Targeted SHQS /EESSH compliance works Rolling 31/03/2025 32,632 - 3,357 29,275 32,632 - 6,537 3,357 6,537 - MCR2 External Component Renewal - Roofs Rolling 31/03/2025 13,010 - 1,027 11,983 13,010 - 2,500 1,027 2,201 (299) MCR3 Doors/Windows Component Renewals Rolling 31/03/2025 14,599 - 3,014 11,585 14,599 - 5,011 3,014 5,011 - MCR4 District Heating Project 31/03/2030 6,400 - - 6,400 6,400 - - - - - MCR5 External Stores / Garages / Bin Stores Rolling 31/03/2025 245 - - 245 245 - 47 - 47 - MCR6 Secure entry component renewals Rolling 31/03/2025 245 - 7 238 245 - 47 7 47 - MCR7 Statutory / Regulatory Compliance Works Rolling 31/03/2025 976 - 3 973 976 - 294 3 294 - MCR8 Heating Improvement Works Rolling 31/03/2025 8,800 - 1,168 7,632 8,800 - 1,900 1,168 1,900 - MCR9 Energy Improvements / Energy Efficiency Works Rolling 31/03/2025 295 - - 295 295 - 57 - 57 - MCR10 Kitchen Upgrade Rolling 31/03/2025 12,102 - 1,954 10,148 12,102 - 2,652 1,954 2,652 - MCR11 Bathroom & Shower Replacement Rolling 31/03/2025 3,300 - 494 2,806 3,300 - 750 494 750 - Major Component Replacement 92,604 - 11,024 81,580 92,604 - 19,795 11,024 19,496 299- VOC1 Void House Strategy Programme Rolling 31/03/2025 19,212 - 3,440 15,772 19,212 - 4,902 3,440 5,438 536 Void Capital 19,212 - 3,440 15,772 19,212 - 4,902 3,440 5,438 536 STE1 Defective structures/component renewals Rolling 31/03/2025 2,210 - 415 1,795 2,210 - 712 415 712 - STE2 Environmental Renewal - Paths & Environment Rolling 31/03/2025 5,559 - 311 5,248 5,559 - 1,068 311 992 (76) STE3 Asbestos Management Works Rolling 31/03/2025 1,235 - 47 1,188 1,235 - 237 47 237 - STE4 Multi Storey Flat Strategy Project 31/03/2029 5,171 65 70 5,101 5,171 - 750 5 750 - Structural & Environmental 14,175 65 843 13,332 14,175 - 2,767 778 2,691 (76) SUP1 Salaries / Central Support / Overhead Rolling 31/03/2025 14,367 - 1,611 12,756 14,367 - 2,761 1,611 2,761 - Support Costs 14,367 - 1,611 12,756 14,367 - 2,761 1,611 2,761 - AHP1 Buy Backs Rolling 31/03/2025 20,522 - 1,988 18,534 20,522 - 4,670 1,988 4,670 - AHP2 Demolition Programme Rolling 31/03/2025 485 - 215 270 485 - 485 215 485 - AHP3 Contingency Rolling 31/03/2025 520 - - 520 520 - 100 - - (100) AHP4 Clydebank East Project 15/04/2025 32,894 22,334 30,722 2,172 32,894 - 9,700 8,388 9,896 196 AHP5 Pappert Project 22/05/2025 10,517 601 4,051 6,466 10,517 - 9,653 3,450 7,446 (2,207) AHP6 Mount Pleasant Project 31/03/2025 6,005 555 2,560 3,445 6,005 - 4,396 2,005 4,396 - AHP7 7-9 Gilmour Avenue Project 10/10/2024 574 40 281 293 574 - 534 241 534 - AHP8 Willox Park Phase1 Project 01/10/2025 5,143 401 491 4,652 5,143 - 2,500 90 2,500 - AHP9 Bank Street Project 01/01/2026 7,549 231 287 7,262 7,549 - 518 56 518 - AHP10 Bonhill Gap Sites Project 01/03/2026 11,537 99 220 11,317 11,537 - 514 121 514 - AHP11 Clydebank Health Centre Project 30/09/2026 10,595 705 895 9,700 10,595 - 390 190 390 - AHP12 Silverton Project 01/12/2026 2,537 33 35 2,502 2,537 - 429 2 429 - AHP13 Queen Mary Avenue Project 01/12/2026 4,556 32 37 4,519 4,556 - 120 5 10 (110) AHP14 Queens Quay Site C Project 01/04/2029 8,231 31 31 8,200 8,231 - 1,000 - - (1,000) AHP15 Dennystoun Forge – New Build Project 01/04/2026 4,000 - 58 3,942 4,000 - 250 58 60 (190) AHP16 Future New Build & Related Regeneration Projects Rolling 31/03/2025 24,515 - - 24,515 24,515 - 515 - 300 (215) AHP17 Fees, Staffing Costs, contingency Rolling 31/03/2025 2,073 - 30 2,043 2,073 - 500 30 200 (300) Affordable Housing Supply Programme 152,253 25,062 41,901 110,352 152,253 - 36,274 16,839 32,348 (3,926) Total Expenditure 319,740 25,230 62,687 257,053 319,740 - 73,664 37,457 70,486 (3,178) Full Project Life In Year Page 486
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All Approved HRA Capital Projects at Period 7 _ 31 October 24 Appendix 2 Project Category Planned End Date Revised End Date Project Life Budget Income to 31 /3/24 Income to Date Projected Future Income Project Life Forecast Income Project Variance Approved Budget 2024/25 Income to Date 2024/25 Projected Income 2024/25 In Year Variance 2024/25 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 CAPI1 Scottish Govt Buyback Grant Rolling 31/03/2025 (9,451) - (748) (8,703) (9,451) - (2,858) (748) (2,417) 441 CAPI2 Clydebank East Project 15/04/2025 (12,605) (12,605) (12,605) - (12,605) - - - - - CAPi3 Pappert Site Project 22/05/2025 (3,725) (172) (2,975) (750) (3,725) - (3,303) (2,803) (2,803) 500 CAPI4 Mount Pleasant Project 31/03/2025 (1,838) (467) (1,837) (1) (1,838) - (1,371) (1,370) (1,371) - CAPI5 7-9 Gilmour Avenue Project 10/10/2024 (195) - - (195) (195) - (195) - (215) (20) CAPI6 Willox Park Phase1 Project 01/10/2025 (1,489) (414) (489) (1,000) (1,489) - (1,075) (75) (1,075) - CAPI7 Bank Street Project 01/01/2026 (2,108) (258) (258) (1,850) (2,108) - - - (518) (518) CAPI8 Bonhill Gap Sites Project 01/03/2026 (4,789) (188) (377) (4,412) (4,789) - - (189) (514) (514) CAPI9 Clydebank Health Centre Project 30/09/2026 (3,785) (585) (585) (3,200) (3,785) - (200) - (200) - CAPI10 Silverton Project 01/12/2026 (1,000) - - (1,000) (1,000) - - - (429) (429) CAPI11 Queen Mary Avenue Project 01/12/2026 (1,600) (140) (140) (1,460) (1,600) - - - - - CAPI12 Queens Quay Site C Project 01/04/2029 (3,086) (2,086) (2,086) (1,000) (3,086) - (1,000) - - 1,000 CAPI13 Dennystoun Forge – New Build Project 01/04/2026 (2,000) - - (2,000) (2,000) - - - - - CAPI14 Future new build sites & related regeneration projects Rolling 31/03/2025 (6,900) - - (6,900) (6,900) - 0 - (200) (200) CAPI15 HRA Loan Repayments Rolling 31/03/2025 (5) - 1- (4) (5) - (1) (1) (1) - Total Income (54,576) (16,915) (22,101) (32,475) (54,576) - (10,003) (5,186) (9,743) 260 Prudential Borrowing Requirement 265,164 8,315 40,586 224,578 265,164 - 63,661 32,271 60,743 (2,918) Full Project Life In Year Page 487
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West Dunbartonshire Council Report by the Chief Officer - Resources Council 18 December 2024 Subject: 2023/24 Treasury Management Annual Report 1. Purpose 1.1 The purpose of this report is to provide members with an update on treasury management during 2023/24. 1.2 The Audit Committee at its meeting on 4 December 2024 considered a report by the Chief Officer-Resources (1) advising of the operation of the treasury function and its activities during 2023/24 and (2) requesting that the report be remitted to West Dunbartonshire Council for approval. A copy of the report to the audit Committee is attached at appendix 1. 2. Recommendations 2.1 Members are requested to note; (a) The Treasury Management Annual Report as appended to this report; and (b) that the Treasury Management Annual Report was presented to the Audit Committee on 4 December 2024. 3. Background 3.1 In accordance with the Treasury Policy governing the Council’s treasury management activities the Chief Officer - Resources is required to provide an Annual Report to Members regarding the Treasury function. 3.2 One of the key clauses is that a responsible body is required to ensure effective scrutiny of the treasury management strategy and polices. Within West Dunbartonshire Council the body identified to fulfil this role is the Audit Committee. 4. Main Issues 2023/24 Treasury Management Annual Report 4.1 A copy of the 2023/24 Treasury Management Annual Report is attached (Appendix 1) with it based upon the Council’s unaudited 2023/24 Financial Statements. 4.2 The report details the loans borrowed and repaid during the course of the year, associated interest rates and debt rescheduling undertaken. ITEM 17 Page 489
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4.3 External borrowing (excluding Public Private Partnership (PPP) borrowing) has increased during the year from £670.883m at the beginning of the year to £760.698m at the end of the year. This was mainly due to capital expenditure and the repayment of temporary loans. Over the year as new debt has been borrowed and maturing debt replaced the average interest rate on loans held has increased from 3.19% at 31 March 2023 to 4.48% at 31 March 2024. 4.4 Consideration was given to available interest rates, and mainly short-term borrowing has been utilised to finance the current capital programme to take advantage of slightly lower interest rates. 4.5 Investments have increased as at the 31 March 2024 from £6.5m at the beginning of the year to £29m at the year-end. The average interest rate on these investments held as at 31 March 2024 increased from 4.00% to 4.62%. 4.6 As at 31 March 2024 fixed rate borrowing under 12 months was 36.73%. This is below the maximum allowable limit for short term debt and is as a result of action taken to reprofile the debt from short term to long loans. We will continue to take action with a longer term target to bring short term borrowing toward a figure less than 30% of the overall debt portfolio however this needs to be done prudently whilst monitoring projected future interest rates. All other year end indicators advised within Appendix 1 of this report are within the limits previously agreed by Council. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no personnel issues. 7. Financial and Procurement Implications 7.1 There are no financial or procurement implications. 8. Risk Analysis 8.1 There are three main risks associated with the formulation of prudential indicators. These are noted below. However the Council has robust monitoring processes in place and provides regular reports to Council and ensures further scrutiny by elected Members at the Audit Committee: (a) The risk of Counterparties default (i.e. loss of principal sum invested) however, the Council has robust controls included within its treasury management and investment strategies that will assist in mitigating this risk. (b) Capital inflation may increase capital expenditure levels, which in turn may affect the capital financing and borrowing requirement leading to an increase Page 490
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in borrowing, assuming no additional capital receipts or other funding are available. (c) Capital receipts which affect the capital financing and borrowing requirement may not materialise which would require additional borrowing to fund the financing requirement. 9. Equalities Impact Assessment 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 The views of Legal Services have been requested on this report and have advised there are neither any issues nor concerns. 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 5 strategic priorities of the Council’s Strategic Plan. 12.2 Treasury management contributes to the Financial Strategy via the interdependency that exists between pro-active treasury management and the formulation of long term financial plans. Laurence Slavin Chief Officer - Resources Date: 27 November 2024 Person to Contact: Karen Shannon, Finance Business Partner Council Offices, Church Street Email: Karen.Shannon@west-dunbarton.gov.uk Appendix: Annual Report 2023/24 -Treasury Management and Actual Prudential Indicators Background Papers: Loans register and portfolio; Debt rescheduling schedules; Page 491
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Prudential Indicators 2023/24 to 2032/33 and Treasury Management Strategy 2023/24 to 2032/33 (Council 27 March 2024); Mid-Year Monitoring Report 2023/24 - Treasury Management and Prudential Indicators (Council 20 December 2023); and Treasury Management Annual Report 2022/23 (Council 20 December 2023) Local Government Finance Circular 5/2022 - statutory repayment of debt – short term financial flexibility: guidance Wards Affected: No wards directly affected. Page 492
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Appendix 1 Annual Report 2023/24 Treasury Management and Actual Prudential Indicators 1. Introduction 1.1 The Council’s treasury management activities are regulated by a variety of professional codes and statutes and guidance: The Local Government in Scotland Act 2003 (the Act), provides the powers to borrow and invest as well as providing controls and limits on this activity. The Act permits Scottish Ministers to set limits either on the Council or nationally on all local authorities restricting the amount of borrowing which may be undertaken (although no restrictions were made in 2023/24). Statutory Instrument (SSI) 29 of 2004, requires the Council to undertake any borrowing activity with regard to the CIPFA Prudential Code for Capital Finance in Local Authorities, and therefore operate the overall treasury function with regard to the CIPFA Code of Practice for Treasury Management in the Public Services; and the treasury activity with regard to the CIPFA Code of Practice for Treasury Management in Local Authorities. Statutory Instrument (SI) 2016 No 123 requires the Council to document its policy on the prudent repayment of loans fund advances. 1.2 The Council has adopted the CIPFA Code of Practice for Treasury Management in the Public Sector and the Prudential Code and operates its treasury management service and capital programme in compliance with these Codes and the above requirements. These require that the prime objective of the treasury management activity is the effective management of risk, and that its borrowing activities are undertaken in a prudent, affordable and sustainable basis. In December 2017, the Chartered Institute of Public Finance and Accountancy, (CIPFA), issued a revised Treasury Management Code and a revised Prudential Code. A particular focus of these revised codes was how to deal with local authority investments which are not treasury type investments e.g. by investing in purchasing property in order to generate income for the Authority at a much higher level than can be attained by treasury investments. One recommendation was that local authorities should produce a new report to members to give a high level summary of the overall capital strategy and to enable members to see how the cash resources of the Authority have been apportioned between treasury and non-treasury investments. For 2023/24, a Capital Strategy was reported and approved by Council on 1 March 2023. 1.3 During 2023/24 the minimum reporting requirements were that the Council should receive the following reports: Page 493
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Appendix 1 an annual treasury strategy in advance of the new financial year (Council 29 March 2023) a mid-year treasury update report (Council 20 December 2023) an annual report following the financial year-end describing the activity compared to the strategy (this report). 1.4 This report sets out: A summary of the 2023/24 strategy. The Council’s treasury position at 31 March 2024. The main Prudential Indicators and compliance with limits. A summary of the economic factors affecting the strategy over 2023/24. The 2023/24 Treasury activity. Performance indicators set for 2023/24. Disclosure regarding the repayment of loan fund advances for 2023/24. Risk and Performance. 2. A Summary of the 2023/24 Strategy 2.1 Borrowing – it is forecast that the capital borrowing need (the Capital Financing Requirement) will be almost fully funded by external borrowing which is a mixture of short term and long term debt. Against this background and the risk within the economic forecast, caution will be adopted with the 2024/25 treasury operations. The Section 95 Officer will monitor interest rates in financial markets and adopt a pragmatic approach to changing circumstances. 2.2 Investments - with the economic background at the time, the investment climate had one over-riding risk consideration - counterparty security risk. As a result of the underlying concerns, officers maintained an operational investment strategy which tightened the controls already in place in the approved investment strategy. The Council’s investment strategy primary objectives are safeguarding the re- payment of the principal and interest of its investments on time first and ensuring adequate liquidity second – the investment return being a third objective. 2.3 Based on the above, the treasury strategy was to postpone borrowing (by not borrowing in advance of need) and in particular minimise longer term borrowing to avoid the cost of holding higher levels of investments at higher interest rates and to reduce counterparty risk. 3. The Council’s Treasury Position at 31 March 2024 3.1 During 2023/24, the Chief Officer – Resources, in line with the Treasury Strategy, managed the debt position with the use of internal funds as well as a mix of short-term and long-term external borrowing, and the treasury position at 31 March 2024 compared with the previous year was: Page 494
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Appendix 1 Table 1 Treasury position – excluding PPP 31 March 2023 31 March 2024 Principal Average Rate Principal Average Rate Fixed Interest Rate Debt £614.160m 3.19% £718.597m 4.48% Variable Interest Rate Debt £0.000m 0.00% £0.00m 0.00% Total Debt £614.160m 3.19% £718.597m 4.48% Total Investments £6.478m 4.00% £28.997m 4.62% Net borrowing position £607.682m £689.600m 3.2 From the above table, it can be seen that the average interest rate on the debt held as at 31 March has increased from 3.19% in 2023 to 4.48% as at 31 March 2024. At the same time the average rate has increased on the investments held as at 31 March from 4.00% in 2023 to 4.62% as at 31 March 2024. 3.3 The external debt figure included within Table 1 includes both short term and long term debt. 3.4 There are four treasury prudential indicators which cover the activity of the treasury function. Complying with these indicators reduces the risk of an adverse movement in interest rates impacting negatively on the Council’s overall position: Upper limits on variable rate exposure. Upper limits on fixed rate exposure. Maturity structures of borrowing. Total principal funds invested for greater than 365 days. 3.5 Table 2 shows the actual upper limits set per debt type and maturity as at 31 March 2024. Table 2 2023/24 Actual 2023/24 Revised Indicator Upper Limits on Fixed Interest Rates 100.00% 100.00% (Against maximum position) Upper Limits on Variable Interest Rates 0.00% 50.00% (Against maximum position) Page 495
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Appendix 1 Maturity Structure Fixed Rate Year End Max Min Borrowing (%) Under 12 months 36.73% 50.00% 0% 12 months to 2 years 9.36% 50.00% 0% 2 years to 5 years 17.91% 50.00% 0% 5 years to 10 years 2.52% 50.00% 0% 10 years to 20 years 2.46% 50.00% 0% 20 years to 30 years 4.72% 50.00% 0% 30 years to 40 years 2.23% 50.00% 0% 40 years to 50 years 21.54% 100.00% 0% 50 years to 60 years 2.52% 100.00% 0% 60 years to 70 years 0.00% 100.00% 0% Maximum Principal Funds Invested £0.472m £1m Nil > 364 Days 4. The Main Prudential Indicators and Compliance with Limits 4.1 The Council is required by the Prudential Code to report the actual prudential indicators after the year end. 4.1.1 Capital Expenditure and its Financing This indicator shows total capital expenditure for the year and how this was financed. The decrease in capital expenditure between revised estimate and actual as noted below in Table 3 is due to expenditure which has been reprofiled from 2023/24 into the 2024/25 capital programme, together with resources. The indicators for 2023/24 will be revised in line with this. Table 3 2023/24 2023/24 Revised Actual Estimate* Capital expenditure: £87.383m £88.479m Resourced by: Capital receipts and grants £26.331m £29.377m Revenue £0.077m £0.250m Capital expenditure - additional need to borrow for in-year capital spend £60.975m £55.852m * From the Treasury Strategy Report 4.1.2 Gross Borrowing and the Capital Financing Requirement (CFR) In order to ensure that borrowing levels are prudent, over the medium term the Council’s gross borrowing must only be used for capital purposes. Gross borrowing should not therefore, except in the short term, exceed the total of the capital financing requirement in the preceding year (2023/24) plus the estimates of any additional capital financing requirement for the current (2024/25) and next two financial years. This essentially means that the Page 496
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Appendix 1 Council is not borrowing to support revenue expenditure. This indicator allows the Council some flexibility to borrow in advance of its immediate capital needs in 2023/24. 4.1.3 The Chief Officer Resources can confirm the Council has complied with this indicator over the medium term (as can be seen by comparing the gross debt figure at 31 March 2024 with the anticipated CFR at 31 March 2027 as detailed in Table 4 below), and in the short term, the adjusted gross borrowing position also under the CFR as at 31 March 2023. Table 4 2023/24 Actual 2023/24 Revised Indicator* Gross borrowing position per Table1 £718.597m £670.883m PPP Liability £87.449m £89.815m Adjusted gross borrowing position £806.046m £760.698m Capital Financing Requirement £794.231m £792.123m * From the Treasury Strategy – Council 27 March 2024 2023/24 Actual CFR at 31 March 2024 2023/24 Actual £794.231m Estimated Movement in CFR* 2024/25 £99.415m 2025/26 £94.129m 2026/27 £49.419m Anticipated CFR at 31 March 2027 £1,037.194m Gross Debt at 31 March 2024 £806.046m * Estimated movements from treasury Management Strategy 2024/25 – March 2024 4.1.4 The Authorised Limit The Authorised Limit is the “Affordable Borrowing Limit” required by Section 35 of the Local Government in Scotland Act 2003. The Council does not have the power to borrow above this level. The information in Table 5 demonstrates that during 2023/24 the Council has maintained gross borrowing within its Authorised Limit. 4.1.5 The Operational Boundary The operational boundary is an indicator against which the Council monitors its external debt position. It is based on the Council’s estimate of the most likely (i.e. prudent but not worst case) scenario for external debt. Periods where the actual position is either below or over the Operational Boundary are acceptable subject to the Authorised Limit not being breached. The information in Table 5 demonstrates that during 2023/24 the Council has maintained gross borrowing within its Operational Boundary. Page 497
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Appendix 1 4.1.6 Actual financing costs as a proportion of net revenue stream This indicator shows the actual impact of capital expenditure in 2023/24 compared to the projected impact of the General Services Capital Plan Refresh and the HRA Capital Plan Update as approved by Members on 1 March 2023. The cost of capital is described as loan charges within the revenue budgets. Table 5 * 2023/24 Revised Indicator - Authorised Limit £898.992m Revised Indicator - Operational Boundary £824.012m Maximum gross borrowing position during 2022/23 £717.577m Minimum gross borrowing position during 2022/23 £602.573m Estimated Actual Financing Costs as a proportion of net revenue stream General Fund 8.53% 10.90% Housing (HRA) 28.30% 41.90% * From Mid Year Report 20 December 2023 5. Summary of the Economic Factors affecting the Strategy during 2023/24 5.1 The Economy and Interest Rates 2023/24 – to March 2024 (Source: Link Treasury Management Annual Report Template 2023/24 Scotland April 2024 ) UK Economy Against a backdrop of stubborn inflationary pressures, the Russian invasion of Ukraine, and war in the Middle East, UK interest rates have continued to be volatile from Bank Rate through to 50-year gilt yields, for all of 2023/24. Markets have sought an end to central banks’ on-going phase of keeping restrictive monetary policy in place on at least one occasion during 2023/24 but to date only the Swiss National Bank has cut rates and that was at the end of March 2024. UK, Eurozone and US 10-year yields have all stayed high throughout 2023/24. The table below provides a snapshot of the conundrum facing central banks: inflation is easing, albeit gradually, but labour markets remain very tight by historical comparisons, making it an issue of fine judgment as to when rates can be cut. Page 498
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Appendix 1 UK Eurozone US Bank Rate 5.25% 4% 5.25%-5.5% Inflation 3.4% year on year (Feb) 2.4% year on year (Mar) 3.2% year on year (Feb) Unemployment Rate 3.9% (Jan) 6.4% (Feb) 3.9% (Feb) The Bank of England, in their March meeting, left interest rates at 5.25% for the fifth time in a row. The Bank’s communications suggest the Monetary Policy Committee (MPC) is gaining confidence that inflation will fall sustainably back to the 2.0% target. However, although the MPC noted that “the restrictive stance of monetary policy is weighing on activity in the real economy, is leading to a looser labour market and is bearing down on inflationary pressures”, conversely it noted that key indicators of inflation persistence remain elevated and policy will be “restrictive for sufficiently long” and “restrictive for an extended period”. The UK economy has started to perform a little better in Q1 2024 but is still recovering from a shallow recession through the second half of 2023. Indeed, Q4 2023 saw negative GDP growth of -0.3% while year on year growth was also negative at -0.2%. Unemployment is currently sub 4%, against a backdrop of still over 900,000 of job vacancies, and annual wage inflation is running at above 5%. With gas and electricity price caps falling in April 2024, the CPI measure of inflation - which peaked at 11.1% in October 2022 – is now due to slide below the 2% target rate in April and to remain below that Bank of England benchmark for the next couple of years, according to Capital Economics. The Bank of England still needs some convincing on that score. It is noted that core CPI was still 4.5% in February and, ideally, needs to fall further. From a fiscal perspective, the further cuts to national insurance tax (from April) announced in the March Budget will boost real household disposable income by 0.5 - 1.0%. After real household disposable income rose by 1.9% in 2023, Capital Economics forecast it will rise by 1.7% in 2024 and by 2.4% in 2025. These rises in real household disposable income, combined with the earlier fading of the drag from previous rises in interest rates, means GDP growth of 0.5% is envisaged in 2024 and 1.5% in 2025. The Bank of England is less optimistic than that, seeing growth struggling to get near 1% over the next two to three years. USA Economy Despite the markets willing the Federal Open Market Committee to cut rates as soon as June 2024, the continued resilience of the economy, married to sticky inflation, is providing a significant headwind to a change in monetary policy. Markets currently anticipate three rate cuts this calendar year, but two or less would not be out of the question. Currently, policy remains flexible but primarily data driven. Page 499
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Appendix 1 In addition, the Fed will want to shrink its $16 trillion balance sheet at some point. Just because the $ is the world’s foremost reserve currency (China owns over $1 trillion) does not mean the US can continually run a budget deficit. The mix of stubborn inflation and significant treasury issuance is keeping treasury yields high. The 10 year stands at 4.4%. Inflation is currently a little above 3%. The market is not expecting a recession, but whether rates staying high for longer is conducive to a soft landing for the economy is uncertain, hence why the consensus is for rate cuts this year and into 2025. EZ Economy. Although the Euro-zone inflation rate has fallen to 2.4%, the European Central Bank will still be mindful that it has further work to do to dampen inflation expectations. However, with growth steadfastly in the slow lane (GDP flatlined in 2023), a June rate cut from the current 4% looks probable. 5.2 Borrowing Rates in 2023/24 The graph for Public Works Loan Board (PWLB) interest rates below shows that interest rates have continued to increase and most PWLB rates have been on a general upward trend since December 2023. Source: Link Treasury Management Annual Report Template 2023/24 (Scotland) Page 500
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Appendix 1 6. 2023/24 Treasury Activity 6.1 Borrowing – The Council raised new short term loans of £248.000m during 2023/24 for the replacement of naturally maturing debt and to finance the Council’s capital programme. 6.2 Rescheduling – No debt rescheduling has taken place in 2023/24. 6.3 Repayment – The Council repaid naturally maturing debt of £279.186m. 6.4 Summary of Debt Transactions – The overall position of the debt activity resulted in the average annual interest rate paid throughout the year, year on year increasing from 3.19% (2022/23) to 4.48% (2023/24) 6.5 Investment Policy – The Scottish Government issued The Local Government Investments (Scotland) Regulations 2010 on 1 April 2010. 6.6 The investment activity during the year conformed to the approved strategy, and the Council had no liquidity difficulties. 6.7 The Council’s short term cash investments increased from £6.478m at the beginning of the year to £29.097m at the end of the year with an average balance of £11.093m and received an average return of 4.62% over the year. In addition to the short term cash investments the Council also had 2 long term investments in Clydebank Property Company and Hub West Scotland with a total value of £0.472m as at 31 March 2024 as identified in table 2 above (investments over 364 days). 7. Performance Indicators set for 2023/24 7.1 The treasury strategy defined a set of performance indicators covering the following areas: 7.1.1 Security - In the context of benchmarking, assessing security is a very subjective area. Security is currently evidenced by the application of minimum quality criteria to financial institutions that the Council may choose to invest in, primarily through the use of credit ratings supplied by the three main credit rating agencies (Fitch, Moody’s and Standard & Poors). The Council has benchmarked security risk by assessing the historical likelihood of default for investments placed with any institution with a long term credit rating of A- (this is the minimum long term credit rating used in the Council’s investment strategy). The Council’s maximum security risk is that 0.05% of investments placed with financial institutions could theoretically default based on global historical data. During the year all investments within the Council’s portfolio were repaid on their due dates with no defaults of the principal sums recorded. 7.1.2 Liquidity – As required by the CIPFA Treasury Management Code of Practice the Council has stated that it will “ensure that it has adequate, though not excessive, cash resources, borrowing arrangements, overdrafts or standby facilities to enable it at all times to have the level of funds available to it which are necessary for the achievement of its business/service objectives”. In Page 501
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Appendix 1 respect to liquidity as defined above the liquidity arrangements during the year were maintained in line with the facilities and benchmarks previously set by the Council as follows: o Bank overdraft - £1.000m o Liquid short term deposits of at least £5.000m available overnight. 7.1.3 Return – For the financial year the investment return averaged 4.569% which is an increase of 2.585% from the previous year. Table 6 illustrates that the Council’s average return identified of 4.57% was less than the average return from the Council’s bankers investment account (5.14%) and less than the Money Market Funds rate (noted in table 6) which are the local measures of return investment benchmarks approved in March 2012. The Council’s bankers (and therefore the bank with which the investment account is held) are currently Virgin money (formerly Clydesdale Bank plc) which falls within the Category 3 Investment Category approved in the investment strategy approved in February 2017. Due to the credit rating of this bank this category specified a maximum limit £5million which may be held on an overnight basis only thus limiting the ability to attract interest on this account. Table 6 Benchmark Benchmark Return Average Return Compound 12 month SONIA* 4.98% 4.57% * SONIA is Sterling Overnight Index Average and has replaced LIBOR & LIBID 8. Disclosure regarding the repayment of loans fund advances for 2023/24 8.1 The policy on the prudent repayment of loans fund advances was detailed in the Mid-Year Monitoring Report 2023/24 - Treasury Management and Prudential Indicators reported to Council on 20 December 2023. 8.2 Table 7 shows the movement in the level of loan fund advances between 1 April 2023 and 31 March 2024 (excluding PPP). Table 7 General Fund Housing Opening Balance at 1 April 2023 £357.520m £301.210m New Advances in 2023/24 £7.223m £44.618m Repayments in 2023/24 (£4.023m) (£7.662m) Closing Balance at 31 March 2024 £360.720m £338.166m 8.3 Table 8 details the anticipated repayment profile of the balance on the internal loans fund advances (excluding PPP) for both General Services and Housing held at 31 March 2024 (note, this is not external debt). Page 502
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Appendix 1 Table 8 Future Repayment Profile at 31 March 2024 General Fund Housing Total £m £m £m Under 12 months 4.551 9.502 14.053 2 years to 5 years 13.800 28.363 42.163 6 years to 10 years 25.637 49.888 75.525 11 years to 15 years 29.292 44.056 73.347 16 years to 20 years 25.043 50.144 75.187 21 years to 25 years 17.621 48.454 66.075 26 years to 30 years 12.166 28.263 40.429 31 years to 35 years 10.438 7.010 17.448 36 years to 40 years 12.097 5.568 17.665 41 years to 45 years 12.840 4.553 17.393 46 years to 50 years 15.130 6.178 21.308 51 years to 55 years 20.586 8.705 29.291 56 years to 60 years 25.425 7.739 33.164 61 year + 136.094 39.744 175.838 Total 360.720 338.166 698.886 9. Risk and Performance 9.1 The Council has complied with all relevant statutory and regulatory requirements which require the Council to identify and, where possible, quantify the levels of risk associated with its treasury management activities. In particular its adoption and implementation of both the Prudential Code and the Code of Practice for Treasury Management means both that its capital expenditure is prudent, affordable and sustainable, and its treasury practices demonstrate a low risk approach. Ongoing consideration of future affordability and sustainability are reported and considered by Members each year when setting the Council’s General Fund and HRA capital and revenue budgets. 9.2 The Council is aware of the risks of passive management of the treasury portfolio and, with the support of the Council’s treasury advisers, has proactively managed its treasury position within the current economic climate taking advantage of lower interest rates where it is deemed appropriate. The Council has complied with its internal and external procedural requirements. There is little risk of volatility of costs in the current debt portfolio as the interest rates are predominantly fixed, with the majority of debt comprised of long-term loans. 9.3 Shorter-term rates and likely future movements in these rates predominantly determine the Council’s investment return. These returns can therefore be volatile and, whilst the risk of loss of principal is minimised through the annual investment strategy, accurately forecasting future returns can be difficult. Page 503
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West Dunbartonshire Council Report by the Chief Officer - Resources Council: 18 December 2024 Subject: Treasury Management Mid-Year Report 2024/2025 1. Purpose 1.1 The purpose of this report is to provide Members with an update on treasury management to 30 September 2024. 2. Recommendations 2.1 Members are requested to: (a) Note the treasury management stewardship information within the appended report; (b) Approve the 2024/25 revised estimates of treasury and prudential indicators as advised within the appended report (Tables A, B, C, D, E, F, H, L and N); and (c) Note that the appended report will be referred to the Audit Committee for further scrutiny. 3. Background 3.1 In accordance with the Treasury Policy governing the Council’s treasury management activities during 2024/25, the Chief Officer - Resources is required to provide a mid year Report to Members regarding the Treasury function. 3.2 The mid year report covers the period 1 April 2024 to 30 September 2024 and details the current position (where appropriate) and revises the 2024/25 estimates where required. 3.3 The Audit Committee is responsible for ensuring effective scrutiny of the treasury management strategy and policies and the report will be reported to a future meeting of that Committee for further scrutiny. 4. Main Issues Treasury Management Stewardship Report 4.1 A copy of the report is attached as Appendix 1. ITEM 18 Page 505
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4.2 The report provides details of key changes to the Council’s capital activity (the prudential indicators), the economic outlook, the actual and proposed treasury management activity (borrowing and investment) and the risk approach to treasury management (the treasury management indicators). 4.3 The external debt figures included within Table C includes both short term and long-term debt. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no personnel issues. 7. Financial and Procurement Implications 7.1 There are no direct financial or procurement implications arising from this report. 8. Risk Analysis 8.1 Although the appended report provides a mid year position in relation to treasury management there are three main risks associated with the formulation of prudential indicators and the treasury management strategy as detailed in Appendix 1. These risks are noted below; however the Council has robust monitoring processes in place and provides regular reports to Council and ensures further scrutiny by elected Members at the Audit Committee: (a) Capital receipts which affect the capital financing and borrowing requirement may not materialise and if this occurs then additional borrowing will be required in order to fund the financing requirement; (b) The risk of Counterparties default (i.e. loss of principal sum invested) must also be taken into account; however the Council has robust controls included within its treasury management and investment strategies that will assist in mitigating this risk; and (c) Capital inflation may increase capital expenditure levels, which in turn may affect the capital financing and borrowing requirement leading to an increase in borrowing, assuming no additional capital receipts are available. Page 506
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9. Equalities Impact Assessment 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 The views of Legal Services have been requested on this report and have advised there are neither any issues nor concerns. 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 5 strategic priorities of the Council’s Strategic Plan. 12.2 Treasury management contributes to the Financial Strategy via the interdependency that exists between pro-active treasury management and the formulation of long-term financial plans. _______________________ Laurence Slavin Chief Officer – Resources Date: 03 December 2024 Person to Contact: Karen Shannon, Finance Business Partner Council Offices, Church Street, Dumbarton Email: Karen.Shannon@west-dunbarton.gov.uk Appendix: Appendix 1: Treasury Management Stewardship Mid- Year Monitoring Report 2024/25 Treasury Management and Prudential Indicators 1 April 2024 to 30 September 2024 Background Papers: 1. Loans register and portfolio; 2. Debt rescheduling schedules; and 3. Prudential Indicators 2023/24 to 2032/33 and Treasury Management Strategy 2023/24 to 2032/33 (Council 27 March 2024) Wards Affected: No wards directly affected. Page 507
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Appendix 1 Mid-Year Monitoring Report 2024/25 Treasury Management and Prudential Indicators: 1 April 2024 to 30 September 2024 1. Introduction 1.1 The Council’s treasury management activities are regulated by a variety of professional codes and statutes and guidance: The Local Government in Scotland Act 2003 (the Act), which provides the powers to borrow and invest as well as providing controls and limits on this activity; The Act permits the Scottish Ministers to set limits either on the Council or nationally on all local authorities restricting the amount of borrowing which may be undertaken (although no restrictions have been made as yet during 2024/25). Statutory Instrument (SSI) 29 2004, requires the Council to undertake any borrowing activity with regard to the CIPFA Prudential Code for Capital Finance in Local Authorities, and therefore to operate the overall treasury function with regard to the CIPFA Code of Practice for Treasury Management in the Public Services; and the treasury activity with regard to the CIPFA Code of Practice for Treasury Management in Local Authorities. Statutory Instrument (SSI) 123 2016, set out statutory arrangements for local authority borrowing and lending and the requirement to maintain a loans fund and replace the statutory arrangements set out in Schedule 3 of the Local Government (Scotland) Act 1975 (Schedule 3). 1.2 The regulatory framework of treasury management requires that the Council receive a mid-year treasury review, in addition to the forward looking annual treasury strategy and backward looking annual treasury report. This report meets that requirement and also incorporates the needs of the Prudential Code to ensure adequate monitoring of the capital expenditure plans and the Council’s prudential indicators. The Treasury Strategy and Prudential Indicators were previously reported to Council on 27 March 2024. The current position is shown (where appropriate) and revisions to the 2024/25 estimate are provided where required. 1.3 In December 2021, the Chartered Institute of Public Finance and Accountancy, (CIPFA), issued revised Prudential and Treasury Management Codes. These require all local authorities to prepare a Capital Strategy which is to provide the following: - a high-level overview of how capital expenditure, capital financing and treasury management activity contribute to the provision of services; an overview of how the associated risk is managed; and the implications for future financial sustainability The Council’s Capital Strategy was reported to and agreed by Council on 6th March 2024. Page 508
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Appendix 1 1.4 This report sets out: Key changes to the Council’s capital activity (the prudential indicators); An economic update for the first part of the 2024/25 financial year; The actual and proposed treasury management activity (borrowing and investment); and The risk approach to treasury management (the treasury management indicators). 2. Key Prudential Indicators 2.1 This part of the report is structured to update: The Council’s capital expenditure plans and how these plans are being financed; The impact of the changes in the capital expenditure plans on the PIs and the underlying need to borrow; Compliance with the limits in place for borrowing activity; and Policy on the statutory repayment of loans fund advances 2.2 Capital Expenditure – Table A shows the current position and revised estimates for capital expenditure for 2024/25 only. Table A: £000 2024/25 Original Estimate Current Position 2024/25 Projected Outturn* General Services 76,757 16,439 63,013 HRA 73,385 22,787 63,995 Capital Expenditure 150,142 39,226 127,008 Financed by: Capital receipts 0 0 0 Capital grants 41,085 42,100 83,489 Revenue / other 250 250 250 Net financing need for the year 108,807 (3,124) 43,269 * it should be noted that the Projected Outturn figures include additional slippage from 2022/23 that were not known at the time of the Original Estimate 2.2.1 The movement in the level of anticipated capital expenditure is mainly due to the inclusion of additional slippage following the year end; a reduction in anticipated capital receipts; an increase in spend related to external funding offset by slippage levels identified to date. The anticipated spends and resources are regularly reported to Members through budgetary control reports. 2.3 Impact of changes in Capital Expenditure Plans – Table B shows the CFR, which is the underlying external need to borrow for a capital purpose while Table C shows the expected debt position over the period. Table B: Page 509
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Appendix 1 2024/25 £000 Original Estimate 2024/25 Projected Outturn Opening CFR (1 April 2024) 891,537 794,231 New Borrowing 99,415 29,216 LTL repayment in year 0 (1,414) Closing CFR (31 March 2025) 990,952 822,033 movement in CFR 99,415 27,802 Net financing need for the year (Table A) 108,807 43,269 Loan repayments in year - excluding LTL (PPP) (9,392) (14,053) New Borrowing - Movement in CFR (from previous year) 99,415 29,216 Table C: £000 2024/25 Original Estimate Current Position 2024/25 Projected Outturn External Debt Estimated/Actual Debt at 1 April 2024 768,637 724,570 727,829 Maturing Debt (268,988) (141,500) (314,677) Movement in Borrowing New Borrowing - Maturing Debt 268,988 141,500 314,677 Borrowing adjustment in relation to over borrowing at year end 0 0 0 New Borrowing – CFR (Table B) 99,415 7,103 29,216 Debt at 31 March (1) 868,052 731,673 757,045 Long Term Liabilities (LTL) at 1 April 89,815 87,449 87,449 LTL repayment in year (Table B) 0 (589) (1,414) LTL at 31 March (2) 89,815 86,860 86,035 Actual Debt at 31 March (1) + (2) 957,867 818,533 843,080 CFR from Table B 990,952 n/a 822,033 Under/(Over) Borrowing 33,085 n/a (21,047) 2.3.1 The external debt figures included within Table C now includes both short term and long term debt. This is due to the current strategy of using short term borrowing to fund long term capital investment enabling the Council to take advantage of lower interest rates. The reduction in the estimated external debt for 2024/25 is due to a reduction in the net capital financing need for the year. 2.3.2 The CFR is calculated on a year-end position based on the Council’s balance sheet and therefore the current position is not shown. The CFR has reduced from the original estimate due to the forecast level of capital expenditure in 2024/25 being less than budgeted. The Chief Officer - Resources can report that the Council is currently on target to meet the 2024/25 revised estimates for both indicators. Page 510
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Appendix 1 2.3.3 Table C highlights that the borrowing of the Council is forecasting a minimal over-borrowed position against the CFR at 31 March 2025. 2.4 Compliance with the limits in place for borrowing activity – A key control over the treasury activity is a prudential indicator to ensure that over the medium term, gross borrowing will only be for a capital purpose. Gross external borrowing should not, except in the short term, exceed the total of CFR in the preceding year plus the estimates of any additional CFR for 2024/25 and next two financial years. This allows some flexibility for limited early borrowing for future years. The Council has approved a policy for borrowing in advance of need which will be adhered to if this proves prudent. The revised indicator is detailed in Table D and is illustrated by comparing the estimated gross debt as at 31 March 2024 with the CFR as at 31 March 2025. The Chief Officer - Resources reports that no difficulties are envisaged for the current year in complying with this prudential indicator. Table D: £000 2024/25 Original Estimate 2024/25 Projected Outturn CFR at 31 March 2024 Estimate/Actual (From Table B above) 891,537 794,231 Estimated movement in CFR 2024/25 (From Table B above) 99,415 27,802 2025/26 94,129 100,177 2026/27 49,419 49,419 Anticipated CFR at 31 March 2025 1,134,500 971,629 Gross Debt at 31 March 2023 (From Table C above) 957,867 818,533 2.4.1 The Operational Boundary is detailed in Table E below and is the limit beyond which external debt is not normally expected to exceed. In most cases, this would be a similar figure to the CFR, but may be lower or higher depending on the levels of actual debt. Table E: £000 2024/25 Original Estimate Current Position 2024/25 Projected Outturn External Debt 945,852 818,533 900,386 2.4.2 A further prudential indicator controls the overall level of borrowing. This is the Authorised Limit which is detailed in Table F and represents the limit beyond which borrowing is prohibited, and needs to be set and revised by Members. It reflects the level of borrowing which, while not desired, could be afforded in the short term, but is not sustainable in the longer term. It is the expected maximum borrowing need with some headroom for unexpected movements. This is the statutory limit determined under section 3 (1) of the Local Government Act 2003. Page 511
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Appendix 1 Table F: £000 2024/25 Original Estimate Current Position 2024/25 Projected Outturn External Debt 1,031,839 818,533 982,239 3. Economic Outlook 3.1 UK * Following the 30 October Budget, the outcome of the US Presidential election on 6 November, and the 25bps Bank Rate cut undertaken by the Monetary Policy Committee (MPC) on 7 November, we have significantly revised our central forecasts for the first time since May. In summary, our Bank Rate forecast is now 50bps – 75bps higher than was previously the case, whilst our PWLB forecasts have been materially lifted to not only reflect our increased concerns around the future path of inflation, but also the increased level of government borrowing over the term of the current Parliament. If we reflect on the 30 October Budget, our central case is that those policy announcements will be inflationary, at least in the near-term. The Office for Budgetary Responsibility and the Bank of England concur with that view. The latter have the CPI measure of inflation hitting 2.5% y/y by the end of 2024 and staying sticky until at least 2026. The Bank forecasts CPI to be 2.7% y/y (Q4 2025) and 2.2% (Q4 2026) before dropping back in 2027 to 1.8% y/y. The anticipated major investment in the public sector, according to the Bank, is expected to lift UK real GDP to 1.7% in 2025 before growth moderates in 2026 and 2027. The debate around whether the Government’s policies lead to a material uptick in growth primarily focus on the logistics of fast-tracking planning permissions, identifying sufficient skilled labour to undertake a resurgence in building, and an increase in the employee participation rate within the economy. There are inherent risks to all the above. The worst-case scenario would see systemic blockages of planning permissions and the inability to identify and resource the additional workforce required to deliver large-scale IT, housing and infrastructure projects. This would lead to upside risks to inflation, an increased prospect of further government borrowing & tax rises, and a tepid GDP performance. Our central view is that monetary policy is sufficiently tight at present to cater for some further moderate loosening, the extent of which, however, will continue to be data dependent. We forecast the next reduction in Bank Rate to be made in February and for a pattern to evolve whereby rate cuts are made quarterly and in keeping with the release of the Bank’s Quarterly Monetary Policy Reports (February, May, August and November). Any movement below a 4% Bank Rate will, nonetheless, be very much dependent on inflation data in the second half of 2025. The fact that the November MPC rate cut decision saw a split vote of 8-1 confirms that there are already some concerns around inflation’s stickiness, and with recent public sector wage increases beginning to funnel their way into headline Page 512
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Appendix 1 average earnings data, the market will be looking very closely at those releases. Regarding our PWLB forecast, the short to medium part of the curve is forecast to remain elevated over the course of the next year, and the degree to which rates moderate will be tied to the arguments for further Bank Rate loosening or otherwise. The longer part of the curve will also be impacted by inflation factors, but there is also the additional concern that with other major developed economies such as the US and France looking to run large budget deficits there could be a glut of government debt issuance that investors will only agree to digest if the interest rates paid provide sufficient reward for that scenario. 3.2 Scotland** The Scottish Government’s budget next year is set to increase by £1.3 billion from the latest position for 2023-24. This is a rise of 2.6 per cent in cash terms or a 0.9 per cent rise after accounting for inflation. Most of this increase in funding comes from income tax. A combination of the Scottish Government’s policy choices, high inflation, fixed tax thresholds in cash terms and higher earnings growth in Scotland have all contributed to a sharp increase in income tax funding. However, the ongoing consequences of Scottish Government changes to social security and the linking of payment rates to inflation have increased spending commitments. Other Scottish Government policies such as the Council Tax freeze and increasing public sector pay have further added to the Scottish Government’s spending commitments. Capital spending is set to fall by 4 per cent in real terms between 2023-24 and 2024-25. Economic growth will remain fragile in the near term with living standards set to see the largest fall on record between 2021-22 and 2023-24 and not return to their 2021-22 level until 2026-27. The Scottish Government has introduced a new 45 per cent income tax band starting at £75,000 and also increased the top rate of income tax by 1 percentage point. These policies affect the top 5 per cent of taxpayers in Scotland. After taking account of behavioural changes, these policies will raise an extra £82 million in 2024-25. Scottish Government changes to income tax policy since 2017 mean someone in Scotland earning £100,000 will now pay £3,346 more in income tax than they would in the rest of the UK People with earnings over £28,850 in Scotland, slightly above median earnings, pay more income tax than they would in the UK. The latest policy decisions widen the gap further for those earning over £75,000 (the top 5 per cent of taxpayers). The increase in the projected income tax net position in 2024-25 of £712 million is mostly driven by data in 2021-22 to 2023-24. Page 513
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Appendix 1 Social security spending is forecast to increase from £5.3 bn in 2023-24 to £8.0 bn in 2028-29. By 2028-29, we expect the Scottish Government to spend £1.5 bn more on social security than BGA funding received from the UK Government. We forecast living standards to remain broadly flat in 2024-25 as inflation will largely offset growth in nominal household disposable income. Higher interest rates will continue to reduce disposable income over the next year. *** In part, this is because the widespread use of fixed-rate mortgages means that the recent rises in interest rates are passing through to mortgage costs with a longer lag than in the past. The Scottish Government has announced a new income tax rate of 45 per cent for those earning above £75,000 and increased the top rate of income tax by 1 percentage point. These changes are estimated to raise a total of £82 million in 2024-25. Our estimates of how much additional revenue will be raised include an adjustment for an assumed behavioural response. Without this response revenues would be £118 million higher. Although there is uncertainty around the scale of a behavioural response, the size of the estimated response is small in relation to how much income tax revenue is raised overall and any error in our estimate of the behavioural response would have a smaller effect on the Scottish budget than, for example, an error in our earnings forecast 3.3 International update * There is also the additional concern that with other major developed economies such as the US and France looking to run large budget deficits there could be a glut of government debt issuance that investors will only agree to digest if the interest rates paid provide sufficient reward for that scenario. Donald Trump’s victory paves the way for the introduction/extension of tariffs that could prove inflationary whilst the same could be said of further tax cuts and an expansion of the current US budget deficit. Invariably the direction of US Treasury yields in reaction to his core policies will, in all probability, impact UK gilt yields. So, there are domestic and international factors that could impact PWLB rates whilst, as a general comment, geo-political risks abound in Europe, the Middle East and Asia. * Link Group Interest Rate Forecast 11 November 2024 ** Scottish Fiscal Commission Report 19 December 2023 & revised version April 2024 & Report of 27 August 2024 *** Bank of England (2023) Monetary Policy Report – November 2023 3.4 Based upon the above information, the Council’s treasury advisor, Link Group, has provided the following interest rate forecast as at May 2024. With no changes made after this date, it sets out a view that short, medium and long-dated interest rates will fall back over the next year or two, although there are upside risks in respect of inflation and a continuing tight labour market, as well as the size of gilt issuance. Page 514
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Appendix 1 Table G: - Source: Link Group 3.5 Downside risks to current forecasts for UK gilt yields and PWLB rates currently include: Labour and supply shortages prove more enduring and disruptive and will depress economic activity (accepting that in the near-term this is also an upside risk to inflation and, thus, rising gilt yields). The Bank of England acts too quickly, or too far, over the next two years to raise Bank Rate and causes UK economic growth, and increases in inflation, to be weaker than we currently anticipate. UK / EU trade arrangements – if there was a major impact on trade flows and financial services due to complications or lack of co-operation in sorting out significant remaining issues. Geopolitical risks, for example in Ukraine/Russia, China/Taiwan/US, Iran, North Korea and Middle Eastern countries, which could lead to increasing safe-haven flows. 3.6 Upside risks to current forecasts for UK gilt yields and PWLB rates are as The Bank of England is too slow in its pace and strength of increases in Bank Rate and, therefore, allows inflationary pressures to build up too strongly and for a longer period within the UK economy, which then necessitates an even more rapid series of increases in Bank Rate faster than we currently expect. The Government acts too quickly to cut taxes and/or increases expenditure in the light of the cost-of-living squeeze. The pound weakens because of the UK’s growing borrowing requirement resulting in investors pricing in a risk premium for holding UK sovereign debt. Longer term US treasury yields continue to rise strongly and pull gilt yields up even higher than currently forecast. 4. Treasury Management Activity 4.1 This part of the report is structured to update: The Council’s expected borrowing need and details of under/(over) borrowing; Page 515
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Appendix 1 Debt rescheduling and new borrowing; Debt charges; and Investments 4.2 The Expected Borrowing Need – This was set out in Table C (above) and demonstrates that at 31 August 2024 the Council is currently projecting and over-borrowed position. It should be noted that due to current economic climate the borrowing rates are significantly different than this time last year, with long term borrowing rates for periods greater than 25 years currently between 5.30% and 5.55%, depending on length of term for borrowing (as at 27 November 2024). This introduces an element of interest rate risk, as longer term borrowing rates may rise further; however, this position is being carefully monitored. 4.3 Debt rescheduling and new borrowing – The Council has not undertaken any debt rescheduling during the part of 2024/25 (to 31 September 2024). In the year to date naturally maturing debt of £141.500m has been repaid which has been mainly funded by loans from other local authorities. 4.4 Debt Charges – The revised estimate for debt charges for both the General Fund and the HRA is shown in Table H. Table H: £000 2024/25 Original Estimate Current Position 2024/25 Revised Estimate Borrowing 22,092 10,993 21,985 Other Long Term Liabilities 21,985 10,237 20,474 Total 44,077 21,230 42,459 4.5 Investments – The objectives of the Council’s investment strategy are to ensure the re-payment of the principal and interest of its investments on time with the level of investment return being a secondary objective. Following on from the economic background above, the current investment climate has one over-riding risk consideration which is the risk of default. 4.5.1 The Council held £28.000m of cash investments at 30 September 2024, and the constituent parts of the investment position are detailed in Table I: Table I: £000 Country < 1 Year 1 – 2 Years 2 – 3 Years Banks UK 8,000 Nil Nil Money Market Fund UK 20,000 Nil Nil Local Authorities UK 0 Nil Nil Total UK 28,000 Nil Nil 4.5.2 Table J details the revised budget position for investment income. The original estimate has increased by £0.168m due to ongoing interest rates changes. Page 516
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Appendix 1 Table J: £000 2024/25 Original Estimate Current Position 2024/25 Revised Estimate Investment Income 530 349 698 4.5.3 A regulatory development to address risk is the consideration and approval of benchmarks relating to investment security, liquidity and the level of return. Benchmarks are currently widely used to assess the level of return and investment performance, however the application of security and liquidity benchmarks are more subjective in nature. Security - The Council’s maximum security risk benchmark for the current portfolio in relation to investment periods of up to one year (when compared to historic default tables) was set at 0.00% and the Chief Officer - Resources can report that there have been no defaults of principal sums invested in the year to date. Creditworthiness - Significant levels of downgrades to Short- and Long- Term credit ratings have not materialised since the crisis in March 2020. Liquidity – The Chief Officer - Resources can report that liquidity arrangements were adequate during the year to date and that the liquidity facilities and benchmarks set by the Council as noted below were maintained: o Bank overdraft - £1.000m; and o Liquid short term deposits of at least £5.000m available on an overnight basis. Return on Investments – The Chief Officer - Resources can report that the investment return to date average 4.73%. Table K illustrates how this average return compares with the local benchmarks. Table K: Benchmark Benchmark Return Average Return Compound 12 month SONIA* 5.28% 4.73% Council’s Instant Access Account 5.10% 4.73% * SONIA is Sterling Overnight Index Average and has replaced LIBOR & LIBID 5 Key Treasury Management Indicators 5.1 This part of the report is structured to update: Actual and estimates of the ratio of financing costs to net revenue stream; Upper limits on interest rate exposure: The maturity structure of borrowing; and Total principal sums invested. 5.2 Actual and estimates of the ratio of financing costs to net revenue stream – This indicator (as shown below in Table L) identifies the trend in the cost of capital against the net revenue stream. Page 517
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Appendix 1 Table L: 2024/25 Original Estimate 2024/25 Revised Estimate General Fund 24.60% 14.44% HRA 42.68% 55.34% 5.3 Upper Limits on Fixed and Variable Rate Exposure – These indicators identify a maximum limit for fixed and variable interest rates based upon the debt position and were set at 100% and 50% respectively for 2024/25. The Chief Officer – Resources reports that the Council operates within these limits. 5.4 Maturity Structures Of Borrowing – These maximum limits are set to reduce the Council’s exposure to large fixed rate loans (those instruments which carry a fixed interest rate for the duration of the instrument) which are due to naturally mature in any given period as detailed in Table M and show that the Council operates within limits set. Table M: Maturity Structure of Fixed Interest Rate Borrowing 2024/25 Original Limits Current Position Under 12 months 50% 37% 12 months to 2 years 50% 7% 2 years to 5 years 50% 23% 5 years to 10 years 50% 2% 10 years to 20 years 50% 2% 20 years to 30 years 50% 4% 30 years to 40 years 50% 2% 40 years to 50 years 100% 18% 50 years to 60 years 100% 4% 60 years to 70 years 100% 0% 5.5 Total Principal Funds Invested – These limits are set to reduce the need to temporarily borrow to cover any unexpected expenditure, and show limits to be placed on investments with final maturities beyond each year-end. The Council currently invests sums for periods greater than 365 days in Clydebank Property Company and hub West Scotland as detailed in Table N. Table N: 2024/25 Original Estimate Current Position 2024/25 Revised Estimate Principal sums invested > 365 days (maximum limit £5m) £0.483m £0.483m £0.483m Page 518
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Citizen, Culture & Facilities West Dunbartonshire Council – 18 December 2024 Subject: Update on West Dunbartonshire Council Annual Performance Report 1. Purpose This report responds to a request from Council to provide further detail and explanation in relation to two specific Strategic Plan Performance indicators within the West Dunbartonshire Council Annual Performance Report 2023/24 presented to Council on October 30. 2. Recommendations 2.1 It is recommended that Council notes the additional performance information provided. 3. Background 3.1 The annual report fulfils a key Council requirement to report performance publicly and is designed to ensure relevance and ease of access for a wide audience. It is one element of a comprehensive approach to Public Performance Reporting (PPR) and, in addition to the detail provided and reported to Council, data is updated throughout the year and published on the Council website as it becomes available. 3.2 The report offers a high-level overview of achievements against each strategic priority in the previous year and was supplemented by a scorecard providing comparative data as well as information on each of the 50 performance indicators agreed as part of the Strategic Plan 2022-2027. 3.3 The report detailed that 33 (66%) of Strategic Plan indicators met or exceeded target, ten (20%) narrowly missed target and seven (14%) indicators significantly missed target. 3.4 At its meeting on 30 October, Council agreed to seek further information on two of these seven, namely: Percentage of adults supported at home who agree that they are supported to live as independently as possible (Core Integration Indicator) Percentage of Council employees who feel valued in the workplace. ITEM 19 Page 519
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4. Main Issues Adults supported at home 4.1 The ‘Percentage of adults supported at home who agree that they are supported to live as independently as possible’ is among the suite of indicators measured under Priority 1 Our Communities in the Strategic Plan. 4.2 Public Health Scotland (PHS) provide the data for this indicator, collated by surveying a random sample of people registered with a GP in West Dunbartonshire between October and December 2023. No further analysis of the data is available from PHS therefore West Dunbartonshire Health and Social Care Partnership is unable to ascertain what underpins this response. 4.3 Although there is no specific data at this stage on the local causal factors, it is recognised by the HSCP that recent challenges within the Home Care Service may have had an impact, and in broad terms there are several other factors which can impact on this statistic, for example: Quality and Availability of Home Care Services: The effectiveness and accessibility of home care services play a crucial role. If services are inconsistent or hard to access, individuals may feel less supported. Social Support Networks: Strong social networks, including family and friends, are essential. A lack of social support can lead to feelings of isolation and decreased independence. Health and Mobility: Declining health and mobility issues can make it harder for individuals to live independently, even with support at home. Economic Factors: Financial constraints can limit access to necessary services and modifications that support independent living. Housing Conditions: The suitability of the home environment, including accessibility and safety features, significantly affects the ability to live independently. Policy and Funding: Policies and funding for health and social care services can impact the availability and quality of support provided to individuals at home. 4.4 Addressing these factors holistically can help improve the perception and reality of living independently for adults supported at home. 4.5 Service user and carer engagement sessions are scheduled in the first quarter of the new calendar year. In response to the performance, these Page 520
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sessions will be used to identify potential drivers contributing to this indicator. Employees feeling valued 4.6 The ‘Percentage of Council employees who feel valued in the workplace’ is measured under Priority 4 Our Council of the Strategic Plan. 4.7 This is also a perception indicator and therefore measurement is through a survey on the employee engagement platform Trickle, at a point in time. 4.8 Between 2022/23 and 2023/24, the percentage of employees who stated they felt valued decreased from 68% to 46%, against a target of 75%. In total 265 employees responded on this question which was asked four times on the platform as well as via a pulse survey and the score aggregated. Similar questions are posed throughout the year via Trickle and followed with more questions around solutions. This not only provides immediate feedback direct from frontline employees but has also engaged the same group with their digital skills. This method of measurement replaced the traditional employee survey which was time and resource intensive. 4.9 Understandably, this decline will cause concern. However, the period correlates with an extremely difficult time for Scottish local authorities during which the Council has faced unprecedented financial challenges. 4.10 The Council’s recent budgetary challenges and the requirement to implement savings have necessitated difficult decisions affecting employees and service delivery. This in turn has led to uncertainty within the workforce, with some employees expressing concern about potential job impacts, restructures and reductions in resources available to undertake their roles. It is unsurprising that morale has been negatively impacted as evidenced by the decline on the performance measure. 4.11 In addition, there are practical implications for the day-to-day operation of services from the cyclical savings exercises This includes resources required to develop savings options for Members, the cumulative impact from previous service reductions and fewer resources to deliver against service targets. Managers are required to focus disproportionate time on budgets and associated processes at a time when employees, teams and services require more support, guidance, motivation and leadership. This has had an impact on employees’ perception of their roles and the Council as there are fewer opportunities for development or recognition. 4.12 Employees may also feel uncertainty around job security and the future of services, impacting their sense of value and belonging. 4.13 In recognition of the challenge, the Council implemented a comprehensive communications plan in advance of the budget setting in 2023 and 2024 designed to keep employees informed about budget proposals, decisions and any resulting service or structural changes. A Page 521
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similarly comprehensive plan is in place for the 2025 budget setting. 4.14 The plan aimed to ensure timely information was shared by managers with employees at the earliest opportunity to ensure transparency, and thereafter to provide regular updates to promote trust. However, the perception of feeling valued remains impacted by continued uncertainty within local government, the ongoing funding challenges and the requirement for savings to be developed annually as a result. 4.15 In addition to all of the above, the Covid pandemic and cost of living crisis have affected many within the workforce and this too impacts on satisfaction. The Council is experiencing an increase in claims, annual and protracted pay disputes and a significantly increased employee relations caseload including ill health/flexible retirements and grievances. These coupled with the ongoing exercise to identify volunteers to leave the organisation and realise savings through Voluntary Severance/Voluntary Early Retirement are all having a detrimental impact on employees. 4.16 The performance in this area also aligns with the findings of the recent CIPD Working Lives Scotland 2024 Report (attached as appendix 1 to this report). 4.17 The report makes clear the degree to which the views voiced by workers are not always prioritised or acted upon. Workers on the whole prefer homeworking, but increasingly employers are moving away from this approach to organising work. We know that workers value learning and development opportunities, but these are becoming increasingly restricted across a range of workplaces. Workplace conflict is simply too prevalent across businesses in Scotland, harming both themselves and their workers. 4.18 The CIPD Working Lives Scotland survey is now in its fifth year and the key findings for 2023/24 are: Workplace conflict - Over a quarter (28%) of all employees in Scotland experienced some form of workplace conflict, including being undermined, shouted at, insulted or discriminated against. Growing unease across the public sector - Falls in employee voice scores have not improved and manager voice ratings have worsened considerably for public sector employees. There are signs of public sector employees growing increasingly detached from their jobs, with a higher proportion saying their job is just a way of earning money and no more. Similarly, there is a drop in the proportion of public sector employees saying they feel inspired at work. This is reflected in WDC responses. Skills development and learning gaps - Persistent gaps in skills development for those on lower incomes are not closing, with less than half (44%) of those saying their jobs offer good opportunities to develop their skills. Page 522
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Wellbeing - 25% of employees feel their work impacts negatively on their mental health, with 24% reporting negative impacts on their physical health. Thirty per cent of all employees report their workload as too heavy in a normal week. Senior managers are more likely to report workloads that are too heavy. 4.19 There has been extensive work undertaken by the Council in recent years to support wellbeing and promote the various offerings to employees and prospective employees. The Council has a range of supportive employee policies in place, including initiatives around health and wellbeing and career development, and has been recognised nationally for its approach to flexible working. 4.20 These policies and initiatives provide a broad package of support to help employees, managers and teams during this continued period of uncertainty. In addition, resources and ilearn courses are regularly promoted through workforce updates issued to all Council email users, through Trickle and published on the Council intranet. The key topics include mental health supports, additional support needs and financial wellbeing. 4.21 Work will continue over 2024/25 and beyond to ensure employees are updated on the forthcoming budget process and signposted to all available supports including Viv Up employee counselling and Maximus Access to Work. 4.22 The People & Change team is currently reviewing and refreshing the supports available to managers however it should be noted that the time and resource line managers have to support their people is continually decreasing. 4.23 Employee feedback will continue to be sought to understand any specific areas where additional support may be required however the foregoing efforts are unlikely to significantly increase satisfaction levels as long as all the other pressures remain. 4.24 All indicators are considered by strategic services in the development of annual Delivery Plans. This informs the strategic assessment section of the plans and also supports the identification of actions intended to improve performance. 4.25 The above will be incorporated into delivery plans within relevant council services and the Health and Social Care Partnership. 5. People Implications 5.1 There are no direct people implications from this report. Employee feedback will continue to be sought, monitored and action taken in response. 6. Financial Implications Page 523
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6.1 There are no financial implications from this report. 7. Risk Analysis 7.1 The Annual Report forms a core element of the Council’s public performance reporting (PPR) for 2023/24. Failure to gather and report on delivery in this way may result in the Council not fulfilling its PPR commitments as set out in Audit Scotland’s Guide. 8. Equalities Impact Assessment (EIA) 8.1 This report is for noting and does not recommend any changes to policy or procedure at the Council. As such an EIA screening was not required. 9. Consultation 9.1 Consideration of the report at internal meetings forms the basis of consultation on development of the Annual Report. Content of the annual report has been drawn from previously prepared reports from Chief Officers. 10. Strategic Assessment 10.1 The Annual Report and supporting performance indicator reports directly link to the Council’s 2022-27 Strategic Plan and the progression of all Strategic Priorities and Outcomes. Amanda Graham 19 November 2024 Person to Contact: Amanda Graham Chief Officer Citizen, Culture and Facilities Email: amanda.graham@west-dunbarton.gov.uk Appendices: Appendix 1 CIPD Working Lives Scotland 2024 Report Background Papers: WDC Strategic Plan 2022-27 Annual Performance Report 2023/24 Wards Affected: All Wards Page 524
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Report June 2024 Working Lives Scotland 2024 APPENDIX 1 Page 525
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About the CIPD in Scotland The CIPD has been championing better work and working lives for over 100 years. We help organisations thrive by focusing on their people, supporting our economies and societies. As the career partner to around 11,000 members in Scotland, we sit at the heart of a proud, growing community of practitioners, partners, policy-makers and thought leaders in the world of work, committed to making Scotland a better place to work. We work with the Scottish Government, its agencies and several academic, business and voluntary partners on a broad range of public policy issues, with a particular focus on fair work, skills and productivity. We are key partners on multiple working groups, and through our Public Policy Forum, we both inform and deliver changes in policy. Page 526
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1 Contents 1 Foreword 2 2 Introduction 3 3 Key findings 3 4 Respect 5 5 Security 11 6 Opportunity 17 7 Fulfilment 20 8 Effective voice 26 9 Conclusions and recommendations 30 10 Appendix 33 Acknowledgements This report was written by Marek Zemanik, Senior Public Policy Adviser (Scotland and Northern Ireland) at the CIPD. The author would like to thank everyone who provided feedback and supported this publication, in particular YouGov for running the survey, and colleagues at the CIPD. Publication information When citing this report, please use the following citation: Zemanik, M. (2024) Working Lives Scotland 2024. London: Chartered Institute of Personnel and Development. Report Working Lives Scotland 2024 Page 527
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2 Working Lives Scotland 2024 Foreword The CIPD’s Working Lives Scotland report is a valuable insight into how workplaces in Scotland are progressing on their fair work journey. This year’s report shows once again the importance of good management and the need for effective employee voice in Scotland. The report makes clear the degree to which the views voiced by workers are not always prioritised or acted upon. Workers on the whole prefer homeworking, but increasingly employers are moving away from this approach to organising work. We know that workers value learning and development opportunities, but these are becoming increasingly restricted across a range of workplaces. Workplace conflict is simply too prevalent across businesses in Scotland, harming both themselves and their workers – a clear sign that effective voice mechanisms are not sufficiently present. It is particularly worrying that women and disabled workers are more likely to experience workplace conflict and disabled workers report both higher rates of discrimination and poorer relationships with managers, impacting both their physical and their mental health. So much of our life is spent at work and so much of our workplace experience depends on relationships between individuals within teams and with managers. Getting the fundamentals of fair work right creates workplaces that are both innovative and productive. Fair work therefore benefits employers, by increasing worker engagement, supporting collaboration and innovation, and facilitating good business outcomes. When workers begin to feel a lack of engagement, as the report suggests is happening in the public sector, fair work practices are the key drivers of positive change. Ultimately fair work has a key role to play in supporting good outcomes for workers and employers and in shaping Scotland’s economy, creating high value, innovative and productive workplaces, and supporting fairness and equality in wider Scottish society. Foreword 1 Patricia Findlay Co-Chairs, Fair Work Convention Mary Alexander Page 528
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3 Working Lives Scotland 2024 Working Lives Scotland 2024 Introduction The CIPD’s purpose is to champion better work and working lives, putting job quality at the heart of our aims. Our research seeks to influence policy and practice by highlighting the links between good work and individual wellbeing, organisational productivity and, in consequence, the country’s economic growth. The succession of crises we experienced over the last five years has amplified the importance of job quality even further. From shifts to new ways of working as a result of the pandemic, through skills and labour shortages, to financial wellbeing during the cost-of-living crisis – the world of work has had to adapt and will continue to do so. This is our fifth Working Lives Scotland report providing insight to policy- makers, employers and people professionals. It continues to show gaps and trade-offs around several aspects of job quality, with additional challenges for some groups of employees. Understanding these differences is the first step to making jobs better for all. As in previous reports, we reframed the CIPD’s seven dimensions of ‘good work’ around Scotland’s five fair work dimensions – respect, security, opportunity, fulfilment and effective voice. In the CIPD’s view, good work: • is fairly rewarded • gives people the means to make a living securely • gives opportunities to develop skills and a career and ideally gives a sense of fulfilment • provides a supportive environment with constructive relationships • allows for work–life balance • is physically and mentally healthy for people • gives employees the voice and choice they need to shape their working lives • should be accessible to all. All of these dimensions are present in The Fair Work Framework and are highlighted throughout this report. Ultimately, any job quality framework seeks the same outcome – to make work fairer and better for all employees. Key findings Our Working Lives Scotland survey is now in its fifth year – spanning periods of time just before, during the height of, as well as after the pandemic. It is unique in its insights around Scottish job quality changes and continuity over time. It supports a broader picture of job quality in the UK, provided by the CIPD Good Work Index research. Key findings Introduction 2 3 Page 529
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4 Working Lives Scotland 2024 Alongside standing job quality measures we report on every year, there are several other key themes we are focusing on this year. Workplace conflict • Over a quarter (28%) of all employees in Scotland experienced some form of workplace conflict, including being undermined, shouted at, insulted or discriminated against. • Homeworkers are less likely to experience workplace conflict, but women and disabled employees report higher instances of conflict. • Experiencing conflict at work has negative impacts on job satisfaction, health and wellbeing as well as task and contextual performance (going above and beyond). Growing unease across the public sector • Falls in employee voice scores recorded in our 2023 survey have not improved. In fact, manager voice ratings have worsened considerably for public sector employees. • Looking at our work centrality questions over time, we see signs of public sector employees growing increasingly detached from their jobs, with a higher proportion saying their job is just a way of earning money and no more. • Similarly, there is a drop in the proportion of public sector employees saying they feel inspired at work. Skills development and learning gaps • Persistent gaps in skills development for those on lower incomes are not closing, with less than half (44%) of those on the lowest incomes (under £20,000 per year) saying their jobs offer good opportunities to develop their skills. • Over a fifth (21%) of those educated below degree level have not received any form of training over the last 12 months. • Employees working in smaller organisations are considerably less likely to receive any training. A fifth (20%) of SME employees have received no training over the last 12 months, rising to 35% for employees in micro- businesses (fewer than 10 employees). Back to the office • A gap has started opening between employee home and hybrid working preferences and actual working patterns. • We see a gradual drop in the proportion of employees working fully or primarily from home – from a peak of 47% in 2021 to 39% in 2022, 31% in 2023 and 25% in 2024. • Home and hybrid working preferences, however, have stayed relatively stable over the years, suggesting that employers who are asking employees to return to offices are increasing their risk of retention and recruitment challenges. Key findings Page 530
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5 Working Lives Scotland 2024 Working Lives Scotland 2024 Poorer job quality for disabled employees • There were additional challenges across several job quality measures for disabled employees, not least the above-mentioned incidence of workplace conflict (particularly pronounced in experiences of discriminatory behaviour). • Highlighting the crucial importance of management, the report found that disabled employees generally report poorer relationships with their managers as well as rating them lower across several questions. • Disabled employees also report a more negative impact of work on their physical health and poorer work–life balance across all three of our questions. Respect This chapter looks at job quality aspects like health and wellbeing at work, interpersonal relationships, and relationships with managers. It also examines issues in relation to work–life balance and workplace conflict. Most of these remained relatively stable throughout the pandemic and beyond, highlighting how persistent some job quality gaps are. Key findings • Twenty-five per cent of employees feel their work impacts negatively on their mental health, with 24% reporting negative impacts on their physical health. • Those who primarily work from home report poorer relationships with colleagues, but better relationships with line managers. • Twenty-eight per cent of all employees in Scotland experienced some form of workplace conflict, with negative impacts on job satisfaction, health and wellbeing, as well as task and contextual performance (going above and beyond). Work and its impact on mental and physical health The CIPD’s previous job quality research has shown health and wellbeing as having the strongest relationship with job satisfaction and job enthusiasm out of all job quality dimensions. For example, in this year’s Working Lives Scotland, 74% of those who say that work impacts positively on their mental health say they are always or often enthusiastic about their jobs, compared with only 23% of those who report a negative impact. In addition to its most direct impact on wellbeing, good mental and physical health can therefore impact individual, and by extension organisational, performance. Respect 4 Page 531
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6 Working Lives Scotland 2024 Our survey asked employees a set of questions about physical and mental health, the impact of work, as well as whether they had experienced specific physical or mental health problems. Overall, in 2024, 62% of employees described their mental health as good, with 59% describing their physical health as good – virtually unchanged over the last five years. When it comes to how work impacts on health, 25% of employees said their work impacts negatively or very negatively on their mental health, with 24% reporting the same for their physical health. These numbers have also stayed consistent throughout our previous surveys. Looking at different groups of employees, disabled employees were more likely to say that work has a negative impact on their physical health, with over a third (34%) reporting this. Some 57% of employees have experienced some form of physical health condition, while 45% have experienced a mental health condition over the last 12 months. As in previous reports, the most common reported conditions were: • backache or other bone, joint or muscle problems (35%) • sleep problems (27%) • anxiety (27%) • depression (17%) • COVID-19 (16%) – the only significant drop (from 30%) year on year. The survey again shows considerable differences by gender. Women were more likely to experience both physical and mental health conditions. More specifically, anxiety was reported by 32% of women versus 21% of men, sleep problems by 31% of women versus 23% of men, as well as musculoskeletal problems, where the difference is 39% of women versus 30% of men. A supportive and open organisational culture should enable employees to discuss their conditions with their employer. Disappointingly, albeit unsurprisingly, the majority of employees did not discuss their condition, no matter which one it was. As many as 81% of those suffering from panic attacks did not speak to their employer about it. In the case of COVID-19, further underlining the declining salience of the issue, 50% of employees discussed it – a drop from 63% in 2023 and 77% in 2022. In addition to reporting physical and mental health conditions, the survey also looks at the subjective feelings workers have in jobs. These can be a good indication of the impact work has on individuals’ mental health in particular. Figure 1 summarises the answers to the question of how employees feel at their work. Respect Page 532
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7 Working Lives Scotland 2024 Working Lives Scotland 2024 At my work I feel full of energy I am enthusiastic about my job Time flies when I am working I am immersed in my work At my work I feel bored At my work I feel miserable At my work I feel exhausted At my work I feel under excessive pressure At my work I feel lonely 29 45 27 52 34 15 51 37 12 49 37 13 14 12 22 19 12 24 64 41 40 45 33 6325 34 52 Always or often Sometimes Rarely or never Figure 1: How workers feel at work (%) Base: 0 There are some clear associations between occupations and management level across these questions. For example, a significantly higher proportion of senior managers reported higher stress levels – 26% of them feel under excessive pressure always or often, compared with those in board-level positions (10%) and those without management responsibilities (16%). Relationships at work Research shows that good relationships at work improve the way organisations function, with bad relationships negatively affecting performance. Relationships at work matter to individuals’ health and wellbeing, to their motivation, commitment and performance, and to organisational functioning – directly through impact on performance and indirectly through trust and engagement. We found evidence for this in this survey too. In line with our survey series, employee views on relationships at work were overwhelmingly positive. The vast majority reported very good or good relationships with those the survey asks about, as summarised in Figure 2. There are, however, some interesting differences that can be drawn out. Once again, we see that those who primarily work from home (especially full-time) report poorer relationships with their colleagues, but better relationships with managers compared with those who don’t work from home at all. We again see positive workplace relationships associated with better job satisfaction, higher task performance (eg achieving the objectives of the job) and contextual performance (eg helping colleagues or making innovative suggestions). Respect Page 533
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8 Working Lives Scotland 2024 Line manager or supervisor Other managers at your workplace Colleagues in your team Other colleagues in your workplace Staff who you manage Customers, clients or service users 38 41 12 6 1 20 48 16 5 3 38 42 8 2 0 23 50 13 11 35 30 11 1043 47 9 10 Very good Good Poor Very poorNeither good nor poor Figure 2: Quality of relationships at work (%) Note: Does not add up to 100% because of N/A answers. In addition to the quality of relationships in the workplace, the survey includes a series of questions that focus specifically on the relationship with managers. Figure 3 shows a summary of the findings, with managers rated largely positively across all the questions, with the exception of career development. Home and hybrid workers responded more positively to all of the questions, but disabled employees responded more negatively to most – only 66% feel their boss treats them fairly, 64% say they feel respected and only 49% say they are getting help to perform. Figure 3: Relationships with managers (%) My boss... 22 2054 1762 12 Note: Does not add up to 100% because of N/A answers. Strongly agree or agree Disagree or strongly disagreeNeither agree nor disagree Respects me as a person Recognises when I have done a good job Is successful in getting people to work together Helps me perform well in my job Provides useful feedback on my work Supports my learning and development Can be relied upon to keep their promise Is supportive if I have a problem Treats me fairly Supports my longer-term career development Is open and approachable on issues like mental health Leads by example 75 13 8 71 15 12 59 21 18 59 24 14 59 56 58 74 75 717 16 8 24 14 3047 19 1526 21 18 Respect Page 534
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9 Working Lives Scotland 2024 Working Lives Scotland 2024 Survey participants were also asked about ‘psychological safety at work’. This sought to uncover whether a ‘blame culture’ exists – where people are fearful about making mistakes or expressing their opinions because of negative consequences. Figure 4 summarises the results. Strongly agree or agree Disagree or strongly disagree Neither agree nor disagree If I make a mistake, my manager or supervisor will hold it against me People in my team sometimes reject others for being different No one in my team would deliberately act in a way that undermines my efforts 6915 12 6115 1266 16 17 Note: Does not add up to 100% because of ‘don’t know’ answers. Figure 4: Psychological safety at work (%) Workplace conflict Workplace conflict is one of the focus areas in the CIPD Good Work Index 2024. The 2024 survey reintroduced a series of questions around workplace conflict from 2019 to explore trends and differences across the workforce. We don’t have comparable data for Scotland, since Working Lives Scotland first ran in 2020, but an analysis of single-year data also reveals interesting findings. Overall, we found that 28% of employees personally experienced some type of workplace conflict, with the highest incidence being: • undermined and/or humiliated in a job (13%) • shouted at or in a very heated argument (11%) • verbally abused or insulted (11%) • receiving discriminatory behaviour because of a protected characteristic (5%). Incidence of conflict is considerably higher for women (35% experienced some conflict, compared with only 21% of men) and for disabled employees (39% experienced conflict, compared with 25% of non-disabled employees). Similar differences were found when looking at specific types of conflict too, with being undermined reported by 18% of women (versus 9% of men) and 19% of disabled employees (versus 12% non-disabled). While only 5% experienced discriminatory behaviour, this too is higher for women (7%) and disabled employees (12%). Perhaps unsurprisingly, conflict was much less likely for those who primarily work from home (19%) compared with those who don’t work from home at all (30%). Proximity to others in the workplace has an impact on our experience of conflict. Respect Page 535
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10 Working Lives Scotland 2024 Those who experienced conflict reported considerably poorer relationships with their managers, rated them much more negatively and expressed a stark lack of trust and confidence in management. For example, while 54% of those not experiencing conflict said they trust the directors/senior management to act with integrity, only 31% of those who experienced conflict did. We find similar differences with individual management ratings (‘manager leads by example’), where the comparison was 62% versus 37%, and management openness (‘managers are good at responding to suggestions’), where it was 42% versus 22%. Looking at the impact of conflict on job quality, we found strong negative associations with job satisfaction, wellbeing – especially the impact of work on health – as well as weaker associations with task and contextual performance (going above and beyond). For example, while 25% of those who experience conflict are dissatisfied with their jobs, only 8% of those who did not experience conflict are. Nearly half (49%) of those who experienced conflict say their work impacts negatively on their mental health, compared with 17% of those without conflict. Those who experienced conflict were also asked about how they dealt with it: • I just let it go (35%) • discussion with my manager and/or HR (22%) • informal discussion with the other person (18%) • discussion with someone outside of work (eg family, friend) (15%) • I decided to look for a new job (10%). Lastly, there was a relatively even split in answers as to whether the matter had been resolved. Some 36% felt it was fully resolved, 27% partly and 37% felt it was not resolved. Work–life balance The boundaries between our working and personal lives, and the right balance between the two, are crucial to our wellbeing. The pandemic has brought these under the spotlight, with many having to combine their work with family responsibilities. While we don’t see direct evidence of people moving jobs to boost work–life balance, the increase in home and hybrid working patterns and preferences is likely an indirect sign of the importance of this dimension. Figure 5 summarises the responses to a series of questions in the survey. Strongly agree or agree Disagree or strongly disagreeNeither agree nor disagree I find it difficult to relax in my personal time because of my job I find it difficult to do my job properly because of my commitments outside of work I find it difficult to fulfil my commitments outside of my job because of the amount of time I spend on my job 6022 18 1621 63 81127 Base: 0 Figure 5: Work–life balance (%) Respect Page 536
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11 Working Lives Scotland 2024 Working Lives Scotland 2024 Unsurprisingly, factors like high workloads and management levels impact answers to these questions. Half of those who say their workloads are too high find it hard to relax in their personal time. Of those with management responsibilities, 28% say the same, compared with only 16% of those without any management responsibilities. Given the link between occupations and workloads/management, we also see that hybrid workers also find it harder to relax compared with those who don’t work from home at all. As in previous years, we find that caring responsibilities are a significant factor across the first two questions. Of those caring for children, 12% say they find it difficult to do their job properly, compared with just 5% of those with no caring responsibilities. Disabled employees also respond significantly worse to all three questions (31% on commitments outside of work, 12% on doing their job properly and 30% on difficulty relaxing). Security Employee pay, employee benefits and contractual arrangements are crucial parts of fair work. Security and stability in employment, in addition to a predictable income, are important job quality aspects that impact on individuals’ and their families’ quality of life. In addition, subjective measures around work – like pay satisfaction or work centrality – are useful indicators of employee enthusiasm. Key findings • We see year-on-year improvements in job satisfaction, but it remains unchanged and at the lowest for those earning up to £20,000 per year. • There are signs of public sector employees growing increasingly detached from their jobs, with a higher proportion saying their job is just a way of earning money and no more. • Around 15% of employees would like to work more hours than they do, but this rises to 25% for those on the lowest incomes. Pay and benefits The survey distinguishes between ‘objective’ and ‘subjective’ measures of pay. Objective measures are relatively straightforward – an employee’s hourly wage, weekly income or annual salary. However, this doesn’t consider how an employee feels about how they’re remunerated for the work they do – this is known as subjective pay. Consistent with previous Working Lives Scotland reports, both life and job satisfaction are lowest for those earning under £20,000 per year compared with those on higher income bands, especially those on the highest salaries. It is, however, important to note that while there is good correlation between salary and job satisfaction, some highly paid jobs consistently exhibit several negative qualities – for example around workload, work–life balance and stress. Security 5 Page 537
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12 Working Lives Scotland 2024 In 2021, we saw a considerable drop in life satisfaction due to the impact of the pandemic. The 50% from 2021 rose back to 62% in 2022, 63% in 2023 and reached 67% in 2024 – comparable with the 2020 high of 69%. Overall job satisfaction has increased from 63% last year to 73% this year, primarily driven by more positive responses from employees earning between £20,000 and £59,999 per year. However, it is important to highlight that job satisfaction remains unchanged and lowest for those on the lowest incomes, 60% of whom said they were satisfied with their jobs. Reward packages are much broader than just salaries. Figure 6 shows a breakdown of a range of employee benefits across Scotland. Again, public sector employees reported better access to employee benefits, with the biggest differences in enhanced leave benefits – 67% of public sector employees had either used or had availability, compared with only 44% of private sector employees. Figure 6: Employee benefits other than pensions (%) Used Not availableAvailable, not used Transport benefits Technology benefits Social benefits Enhanced leave benefits Wellbeing benefits Health care and insurance benefits Food benefits Financial assistance benefits Career development benefits 13 11 73 15 8 74 31 15 51 22 25 46 7 17 26 3 12 6715 10 81 8 64 6218 21 69 Base: 0 Despite the falls in inflation, employees continue to struggle with the cost of living. We again asked employees about their ability to keep up with their bills and credit commitments and found no statistically relevant change in responses – only around half (52%) of all employees said they were keeping up with bills without any difficulties. There remain significant differences by income, as highlighted in Figure 7. Security Page 538
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13 Working Lives Scotland 2024 Working Lives Scotland 2024 20 10 30 40 60 50 70 80 Base: 0 Up to £20,000 £20,000 to £39,999 £40,000 to £59,999 £60,000 and above I am keeping up with all bills and commitments without any difficulties I am keeping up with all bills and commitments, but it is a struggle from time to time I am keeping up with all bills and commitments, but it is a constant struggle Figure 7: Keeping up with bills and credit commitments, by income (%) 0 39 51 68 60 40 29 28 26 17 14 10 3 Subjective measures of pay In addition to objective measures of pay, Working Lives Scotland looks at subjective measures of pay and what we call ‘work centrality’ – what role work plays in employees’ lives. Figure 8 summarises the results. We found that 47% of employees felt they got paid appropriately for the work that they do. As in previous years, there is a positive correlation between this and reported income levels – those on higher incomes are more likely to feel they are paid appropriately, rising to 70% for those earning above £60,000 per year. Base: 0 Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree I would enjoy having a paid job even if I did not need money A job is just a way of earning money – no more Considering my responsibilities and achievements in my job, I feel I get paid appropriately 2919 915 29 20 14 745 17407 24 12 13 Figure 8: Subjective measures of pay and work centrality (%) Our two work centrality questions measure the relative importance of work in our lives. Some 57% of employees stated they would enjoy having a paid job even if they did not need the money, and 44% said that a job is just a way of earning money, but no more. These are similar to the levels recorded last year. However, there are interesting differences across employee groups. On the question of whether a job is just a way of earning money, we found higher than average disagreement from women (42%) and older workers aged 55+ (47%), as well as those working in the voluntary sector (59%). Security Page 539
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14 Working Lives Scotland 2024 Looking at trends across our five-year series, we see signs of public sector employees growing increasingly detached from their jobs, with a higher proportion saying their job is just a way of earning money and no more. The strength of this can also be expressed by lower levels of disagreement with the statement, with more responding neutrally or ‘don’t know’. Combining ‘agree’ and ‘disagree’ answers and plotting them in a chart, as shown in Figure 9, illustrates the trend – higher numbers equal lower levels of work centrality. –20 –30 –40 –50 –10 0 20 10 Private sector Public sector 2020 2021 2022 2023 2024 Figure 9: Work centrality across sectors over the last five years (% agree – % disagree) 4 –9 7 7 8 –12 –23 –4 –9 12 –35 –28 –41 –21 –28 Voluntary sector Types of contract Contractual working arrangements and the related issues of job and hours insecurity are aspects of job quality that have risen within the public policy agenda in recent years. While our survey includes questions on contractual type, the sample size for non-standard contracts is relatively small, so the level of analysis we can do for Scotland is limited. Our UK-wide CIPD Good Work Index reports use a larger UK-wide sample and provide interesting insight into UK-wide job quality in relation to non-standard contracts. Working Lives Scotland asks about a range of contract types in Scotland. The breakdown of those surveyed in the report is presented in Figure 10. Base: 0 Figure 10: Types of contract (%) Short-hours contract work Running my own business Freelancer or an independent contractor Permanent employment Temporary employment Zero-hours contract work85 3 2 6 0 3 Security Page 540
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15 Working Lives Scotland 2024 Working Lives Scotland 2024 Women were much more likely to work part-time than men (42% v 11%). This is widely attributed to caring responsibilities, which remained significantly gendered despite policy interventions. We also found disabled people less likely to be in full-time employment (53% v 68% of those not disabled). Furthermore, in line with previous years, there was a higher percentage of self-employment and part-time employment among those aged 55 and above. Flexibility in working hours has been highlighted in CIPD research as a key factor in the retention and recruitment of older workers. Job security In addition to pay levels and contractual arrangements (that is, objective measures), the survey asked two questions to assess employees’ perceived job security (subjective measures). It asked whether employees think they are likely to lose their job in the next 12 months and whether they are likely to quit their job in the next 12 months. Nearly a fifth (19%) of employees said they are likely to quit their jobs. There remains a strong link to job satisfaction, with 40% of those dissatisfied saying they would likely quit, compared with only 12% of those satisfied. Self-evidently, those with poorer job quality dimensions think about quitting more – for example, 26% of those who said their workloads are too high said they are likely to quit, as well as 32% of those who said their work impacts negatively on their mental health. The persistently tight labour market is reflected in the findings around the ‘likelihood to lose job’ measure, with 62% of employees saying it was unlikely they would lose their job in the next 12 months. We no longer record statistically significant differences between income bands, highlighting the improvements in job security for the lowest paid. The findings again show that public sector employees feel more secure in their employment (73% unlikely), as well as those with longer tenures (67% unlikely for those with 10 or more years of service). In addition to the two job security questions, we also measure employees’ confidence in the labour market – asking about the difficulty of finding a job as good as the one they currently have. The answers here also reflect the tight labour market, with 32% of employees saying this would be easy – roughly the same proportion as last year. Public sector employees were more likely to say it would be difficult to find an equivalent job, as were disabled employees and those with longer tenures. Looking at job moves, two-thirds (66%) of respondents worked in another organisation before their current job. Their reasons for changing jobs provide an insight into what employers should prioritise when it comes to recruitment and retention. The key reasons were: • better pay/benefits (27%) • better work–life balance (27%) • to increase job satisfaction (20%) • being unhappy with leadership of senior management (20%). Security Page 541
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16 Working Lives Scotland 2024 Underemployment and overwork In addition to the objective measure of hours worked, the survey asked employees how many hours they would like to work, while ‘taking into account the need to earn a living’. This gives an indication of underemployment and overwork, which are elements of job quality. Just like most aspects of job quality, they differ by occupation and therefore income bands, as illustrated in Figure 11. Underemployment, where employees aren’t working as much as they would like, is a source of insecurity in the labour market. Our results show that 85% of people work at least as much as they would like to, with around 15% saying they would like to work more hours than they currently do – virtually unchanged from last year. On the other end of the scale, we can estimate overwork by measuring the difference between reported usual hours of work and preferred hours of work. The survey found that only 24% of employees work at least the hours they would like to, with 61% reporting some levels of overwork. Some 13% of employees say they work 15 or more hours more than they would like to. The presence of overwork is likely to impact negatively on how people balance work with their personal lives. Indeed, those who report overwork respond significantly worse to our work–life balance questions. For example, 30% of those who said they would like to work fewer hours found it hard to relax in their personal lives because of their job, compared with only 7% of those who work the hours they want. Base: 0 Up to £20,000 per year £20,000 to £39,999 per year £40,000 to £59,999 per year £60,000+ per year 25 7 4 12 33 42 20 73 26 71 21 67 Underemployed Overworked Work the hours they want Figure 11: Underemployment and overwork across income bands (%) Security Page 542
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17 Working Lives Scotland 2024 Working Lives Scotland 2024 Opportunity Equal opportunities regardless of race, age, gender or disability are key to fair work. Furthermore, skills development and career advancement opportunities are both important job quality elements. While this survey can’t provide insight around issues like recruitment, it does allow us to expose some differences in opportunities available to different groups of employees. Key findings • A third (33%) of employees believe their job offers good prospects for career advancement, while 52% feel their job offers good opportunities to develop their skills. • There are considerable gaps in the levels of training employees participate in, with 16% having received none in the last year. This is even higher for employees in smaller businesses. • A gap has started opening between employee home and hybrid working preferences and actual working patterns. While proportions of those who primarily work from home are declining, preferences are broadly staying the same. Personal and career development The importance of skills development to individual wellbeing, organisational productivity and the country’s economy as a whole is well researched. Personal and career development opportunities form an important part of future job prospects, while being increasingly important in recruitment as well as in retention for employers. Figure 12 summarises the answers received across the two questions we ask. Base: 0 7 26 29 23 14 10 41 25 15 9 My job offers good prospects for career advancement My job offers good opportunities to develop my skills Strongly agree Disagree Strongly disagreeAgree Neither agree nor disagree Figure 12: Personal and career development (%) Opportunity 6 Page 543
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18 Working Lives Scotland 2024 We again found a positive relationship between rising incomes and reported opportunities for both skills development and career advancement. Of those earning more than £60,000 per year, 67% reported good skills development opportunities and 47% reported good career advancement options. This compares with only 44% and 23% respectively for those earning less than £20,000. These differences are linked to occupational classes, as highlighted in previous Working Lives Scotland reports. There is a persistent lack of skills development and perceived career progression pathways for those in lower- paid occupations. Learning and development participation Another set of reintroduced questions relates to participation in learning and development over the last 12 months. The findings from the latest UK-wide Employer Skills Survey have shown that employers’ investment in training has dropped over the last 10 years across all parts of the UK, which, given the importance of skills to our economy, is of concern. Our employee survey asked employees to select the types of training they took part in over the last year. Some 79% took part in some form of training, with the most common types being: • on-the-job or in-the-flow-of-work training or learning (46%) • online learning (42%) • learning from peers (25%) • blended learning (21%) • in-house development programmes (16%) • instructor-led training delivered off the job (15%) • external conferences, workshops and events (11%). Concerningly, 16% of all employees had not engaged in any form of training at all. In line with other research, there are clear differences here by organisational size, with 20% of SME employees not having had any training, rising to 35% for those working in micro businesses (with fewer than 10 employees). Furthermore, only 2% of all employees say they received some training around emerging technologies such as AI. While those who received training found it overwhelmingly useful, the lowest proportion of usefulness was recorded by those engaging in online training. Home and hybrid working The most obvious impact of the pandemic has been the increase in home and hybrid working across Scotland and the UK as a whole. We continue to see nearly half of all employees (47%) work at least some of the time from home. There remain huge differences by income bands, reflecting the unavailability of homeworking across some industries and occupations. Opportunity Page 544
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19 Working Lives Scotland 2024 Working Lives Scotland 2024 Base: 0 Fully working from home Hybrid (more than 50% at home) Hybrid (50% or less at home) Not working from home at all All Up to £20,000 per year £20,000 to £39,999 per year £60,000 and above per year £40,000 to £59,999 per year Figure 13: Home and hybrid working, by personal income level (%) 6 19 53 22 6 7 73 14 5 18 53 24 8 25 40 27 10 41 23 27 Looking at longer-term trends, home and hybrid working levels remain considerably higher than before the pandemic, but there has been a clear gradual decrease in those who primarily work from home. Interestingly, we don’t see a shift in individual preferences for ways of working, with an average of 14% wanting to work fully from home and another 19% wanting to work primarily from home across our post-pandemic surveys. Base: 0 50 40 30 20 60 70 80 2021 2022 2023 2024 Figure 14: Home and hybrid working since 2021 (%) 53 61 69 75 47 39 31 25 Less than 50% or not at all at homeMore than 50% or fully at home Opportunity Page 545
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20 Working Lives Scotland 2024 In addition, 33% of Scottish employees said they are in jobs where they can’t work from home at all. Another 13% said they did not want to work from home at all. Combined, that’s nearly half (46%) of all Scottish employees for whom the benefits of flexibility can only be unlocked by looking beyond homeworking. This is crucial not only from an individual wellbeing perspective, but also from an organisational inclusion and fairness point of view. Informal flexibility Informal flexibility – without a formal change in employment contracts – can also enable greater control over the way work interacts with the rest of our lives. We asked employees how difficult they would find taking some time off for personal or family matters. The survey found that nearly two-thirds of all employees report good informal flexibility in their jobs, with 65% saying they would find it easy to take time off for personal or family matters. There is a direct correlation with income – employees with higher incomes reported more informal flexibility. This is due to lower-paid occupations generally reporting lower flexibility, illustrated by difference across homeworking too – 89% of those who primarily work from home would find taking time off easy, compared with only 50% of those not working from home at all. Concerningly, over a quarter (27%) of those with childcare responsibilities said they would find taking time off difficult. Fulfilment The intrinsic features of a job, how it is designed, the complexity of tasks involved and the control an employee has over them, as well as how it matches one’s skillset, are crucial to job quality. The Fair Work Framework calls this fulfilment. For many of its aspects, official data is not collected, and this chapter therefore provides a unique insight into these areas. Key findings • Thirty per cent of all employees report their workload as too heavy in a normal week. Senior managers are more likely to report workloads that are too heavy. • Public and voluntary sector employees are significantly more likely to feel their jobs are meaningful, but we see these weakening for public sector employees over time. • A third of employees (33%) educated to undergraduate degree level feel they are overqualified for their job. 7 Fulfilment Page 546
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21 Working Lives Scotland 2024 Working Lives Scotland 2024 Workload When examining job quality, the intensity of work (how hard someone has to work to complete their tasks in a given time period) is just as important as the length of time spent at work (number of working hours). Our survey asked employees to rate their workload in a normal week. Figure 15 summarises the results and shows that for nearly a third (30%) of employees, their workload is too much or far too much. Base: 0 7 22 64 6 0 Far too much About right Far too littleToo much Too little In a normal week, is the workload in your job? Figure 15: Workload (%) Just like other job quality elements, workload varies across occupational classes, but our survey shows that it is not aligned to income. In other words, those in lower-paid occupational classes (eg ‘caring, leisure, and other services’) are just as likely to report high workloads as those in higher-paid occupations (eg ‘professional occupations’). This shows that high workload is not confined to lower- or higher-paid occupations, and it is the nature of tasks in jobs that is to blame. This year’s data again shows that 38% of senior or other managers are reporting too much workload, compared with 28% of board-level managers and 24% for those without management responsibility. People management is crucial to unlocking fair work, and we continue to find gaps in the level of training and amount of time managers say they have to manage their staff well. Over a fifth (21%) of those with management responsibilities disagreed that they receive the training and information they need to manage staff well. In addition, 24% said they don’t have the time they need to manage staff. Adequate work resources Having the right resources to do our jobs is crucial to our performance and productivity. Working Lives Scotland asked employees to answer five questions in relation to adequate work resources and found that most employees report good access to training, equipment, premises and digital tools, as summarised in Figure 16. As in previous years, the biggest gaps continue to be around training and time – 17% of employees said they don’t receive training and information to do their jobs well, and 19% said they don’t have enough time to get their work done. Those who are dissatisfied with their jobs as well as those who report high workloads responded more negatively to these questions – indeed, the lack of adequate resources is likely a contributor to high workloads and job dissatisfaction. Fulfilment Page 547
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22 Working Lives Scotland 2024 I receive the training and information I need to do my job well I usually have enough time to get my work done within my allocated hours I have the right equipment to do my job effectively I have a suitable space to do my job effectively (eg office space or workshop) I have the right digital tools to communicate with my team effectively 11 23 12 548 17 48 15 14 5 23 1254 8 3 28 1052 7 2 5022 17 6 3 Note: Does not add up to 100% because of ‘don’t know’ answers. Figure 16: Adequacy of work resources (%) Strongly agree Disagree Strongly disagree Agree Neither agree nor disagree Job autonomy and complexity An increasing amount of research shows that job autonomy can enable employees to cope with greater work demands, boosts productivity, and has a positive impact on the wellbeing of employees. Our survey measures control over the time employees start or finish their day, how they do their work, the pace at which they work, and the tasks in their job. Figure 17 summarises the findings in relation to job autonomy. The fact that none of these meaningfully changed during the pandemic and afterwards provides evidence on how persistent job design is. Employees continue to have less autonomy when it comes to starting and finishing their working day compared with the other aspects of autonomy measured. The tasks you do in your job The pace at which you work How you do your work The time you start or finish your working day 25 22 1835 34 35 16 15 43 1732 9 25 1723 34 A lot A little NoneSome Figure 17: Job autonomy at work (%) In line with previous Working Lives Scotland reports, we see a clear relationship between occupations, income bands and job autonomy. Those on the highest incomes report significantly more autonomy across all four dimensions, as summarised in Figure 18. Given the nature of such jobs, those working hybrid or fully from home also reported better job autonomy, especially on the question around working hours. Fulfilment Page 548
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23 Working Lives Scotland 2024 Working Lives Scotland 2024 Note: Results shown are net answers of ‘a lot’ and ‘some’. Up to £20,000 per year £20,000 to £39,999 per year £40,000 to £59,999 per year £60,000+ per year The tasks you do in your job The pace at which you work How you do your work The time you start or finish your working day Figure 18: Job autonomy across income bands (%) 39 59 87 71 54 68 85 78 60 73 9589 28 46 86 59 Linked to job autonomy is the issue of job complexity. This looks at the nature of an employee’s job and whether it involves interesting or monotonous tasks as well as problem-solving. Figure 19 summarises the findings, which have also remained consistent over the last five years. Here, as with job autonomy, the main differences sit with income and occupation, with those on higher incomes reporting higher job complexity. Solving unforeseen problems on your own Monotonous tasks Complex tasks Learning new things Interesting tasks 20 30 8 142 13 33 44 10 1 12 3532 18 3 10 3834 17 2 389 38 13 2 Always Sometimes Rarely NeverOften Figure 19: Job complexity (%) Base: 0 Meaningful work The perceived meaningfulness of work is an important element of job quality and can be used as an effective recruitment and retention tool, while also linking to individual performance. Our survey questions included whether employees feel they make a useful contribution through their work – be it to the organisation or to society as a whole. Figure 20 shows a significant majority (72%) of employees feeling they are doing useful work for their organisation and 83% feeling that their work is important for their organisation. Following the significant increase during the pandemic, only around half (51%) of employees now say their work is useful for society – unchanged from last year. Fulfilment Page 549
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24 Working Lives Scotland 2024 I have the feeling of doing useful work for my organisation I have the feeling of doing useful work for society The work that I do is important I am highly motivated by my organisation’s core purpose I feel inspired at work 19 15 9 353 16 35 27 14 7 23 1942 11 4 12 3332 13 8 317 31 20 10 Figure 20: Feelings on meaningfulness of work (%) Strongly agree Disagree Strongly disagree Agree Neither agree nor disagree Base: 0 We see a very strong correlation with job satisfaction across all five questions, with a slightly weaker link to life satisfaction. Also, those in meaningful jobs reported better performance, particularly contextual performance that requires discretionary effort – for example, being more likely to help others, go above and beyond, or make innovative suggestions. As in previous years, we found considerable differences across the questions by work sector. We know from discussions with members that meaningfulness of work is a powerful tool in public and voluntary sector roles, which can exhibit poorer job quality dimensions elsewhere (eg workloads). Concerningly, however, it seems that feelings of meaningfulness are declining across public sector roles. Not only do we find a drop year on year of those who say they feel inspired at work (from 46% last year to 32% this year), but there has also been an increase in those who outright disagree with the statement. Combined, this results in a combined drop of 22 percentage points from last year. Similarly, using the same method, we see a steady decrease in public sector feelings of meaningfulness to society, while the private sector remains stable (albeit much lower and with a pandemic spike). While the sample sizes don’t allow us to reach firm conclusions, given the findings around work centrality and voice elsewhere in this report, a picture of some discontent across the public sector is beginning to form. Skills and qualification match Skills and labour shortages continue to affect most sectors of the economy, with a combination of factors driving this. A mismatch between the labour market and skills development systems can be seen in levels of overqualification and skills mismatches across the economy. The CIPD’s report on overqualification has led to a series of discussions on a policy level, centred around careers advice and work-based learning. However, the opportunity to use one’s skills and qualifications to their full extent is also a crucial element of individuals’ fair work. Skills mismatches and overqualification do not just point to inefficiencies in the labour market, but also have an impact on performance as well as individual wellbeing. Fulfilment Page 550
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25 Working Lives Scotland 2024 Working Lives Scotland 2024 We measure skills and qualification matches by asking employees whether they feel they have the right qualifications for their job and whether they have the skills to cope with their current duties, summarised in Figure 21. Figure 21: Qualification and skills matching (%) Qualification match My present skills correspond well with my duties I have the skills to cope with more demanding duties I lack some skills required in my current duties I have the right level of qualifications I am overqualified I am underqualified 29 64 4 Skills match 31 54 13 Base: 0 The incidence of overqualification differs according to the qualification levels, occupations and, in consequence, by income (as illustrated in Figure 22). Of those educated below graduate level, 23% feel overqualified, compared with 33% for those educated to undergraduate level and 29% to postgraduate level. Where we do have a large enough sample, we see that retail, hospitality and tourism reported some of the highest overqualification rates. Figure 22: Overqualification and skills underuse, by income (%) 0 40 30 20 10 50 I am overqualified I have the skills to cope with more demanding duties Up to £20,000 per year £20,000 to £39,999 per year £40,000 to £59,999 per year £60,000+ per year 45 35 21 23 22 2525 31 Base: 0 Fulfilment Page 551
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26 Working Lives Scotland 2024 Effective voice Having an effective voice at work means employees can push for change, are able to express concerns and provide feedback. This includes having access to a range of voice channels, as well as their effectiveness and the openness of managers to feedback. Key findings • Nineteen per cent of employees say they have no voice channel at work at all. The availability of voice channels is considerably better in the public sector. • One-to-one meetings with managers and team meetings are seen as most effective for expressing views. Employee surveys are seen as least effective. • There has been no improvement in overall voice scores from last year. In fact, managerial openness scores have dropped even further across the public sector. Voice channels We asked employees to tell us about the availability of a range of voice channels in their workplaces. Figure 23 shows that – as in all our Working Lives Scotland reports – the most common voice channels are one-to-one meetings with managers and team meetings, available to 57% and 47% of employees respectively. Some 17% of employees reported the availability of a trade union in their workplace. These numbers have remained stable across all five of our reports. A stubbornly high 19% of employees said they have no voice channel at all. We again see a link to organisation size, with 27% of all employees working in SMEs (2–249 employees) saying they had no voice channel at all, compared with 9% of those in organisations with 250+ employees. Figure 23: Voice channels available to workers (%) 10 20 30 40 50 60 Trade unions Non-union staff associations or consultation committees Employee surveys Employee-provided online forum or chat room for employees Employee focus groups One-to-one meetings with your line manager Team meetings All-department or all-organisation meetings Other None of the above 0 15 10 57 47 24 3 19 17 5 40 Base: 0 8 Page 552
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27 Working Lives Scotland 2024 Working Lives Scotland 2024 Furthermore, these differences by organisation size translate into significant differences in the availability of voice channels between the public and private sectors in Scotland. Of private sector employees, 22% reported no voice channels at all, compared with only 9% of public sector employees. This is because 87% of public sector employees work in organisations with more than 500 employees, compared with only 30% of private sector employees. All of the channels examined have better availability in the public sector. The biggest differences in availability of the individual types of channel are observed in trade union channels (55% public sector v 7% private sector), employee surveys (53% public v 37% private) and team meetings (65% public v 41% private). We again included a series of additional questions around employee voice in this year’s survey to ascertain the demand for voice channels as well as their use and perceived effectiveness. For those who said they did not have any voice channels at work, we asked them to select which ones they would use if they were available to them. Nearly half (49%) said none, indicating a concerning level of disengagement from their workplaces. The most popular channel was one-to-one meetings with managers (25%), followed by team meetings (16%) and employee surveys (14%). Out of those who had channels available, the majority said they made use of them to express views to senior management, with more than 90% of employees having used manager meetings, team meetings or organisational meetings. Only 52% said they used their trade union, but their purpose is of course broader than just to express views to management. Figure 24 summarises the perceived effectiveness of the voice channels that employees used, asking how good or poor respondents felt the channels were for expressing views to senior management. Employee surveys stand out as the poorest, followed by all-department or all-organisation meetings – highlighting that these can only be a part of effective voice in organisations. Figure 24: Perceived effectiveness of voice channels used (%) Note: Does not add up to 100% because of ‘don’t know’ answers. Trade unions Employee surveys Online forums or chat rooms for employees (ie an enterprise social network, such as Yammer) Employee focus groups One-to-one meetings with your line manager Team meetings All-department or all-organisation meetings 42 1716 49 22 26 45 32 13 78 614 46 36 12 52 2125 66 20 13 Good PoorNeither good nor poor Effective voice Page 553
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28 Working Lives Scotland 2024 Employee rating of their representatives For those employees who report having an employee representative at work – around a fifth in the survey – their representatives’ performance is crucial to the effectiveness of their voice. The vast majority of employee representatives will be trade unions, but the survey also included representatives who work independently from trade unions. The majority of employees rated their representatives relatively well, with 42% saying they keep employees informed of management discussions or decisions, 43% saying they represent employee views to senior management, and 42% saying they seek the views of employees. These are unchanged from last year. The fourth additional question here shows the gap between consultation and affecting change, with only 30% of employees agreeing representatives are good at influencing decisions – this is the same pattern as we see with managerial voice scores. Very good or good Poor or very poorNeither good nor poor Seeking the views of employees Representing employee views to senior management Keeping employees informed of management discussions or decisions Influencing decisions 2442 28 2520 2742 25 43 3230 29 Figure 25: Employee ratings of their representatives (%) Note: Does not add to 100% because of ‘don’t know’ answers. Managerial openness For all employees in our survey (excluding the self-employed), we also measure what we call ‘managerial openness’ to measure voice effectiveness. Employees were asked to rate the performance of their manager across four different questions – whether they allow employees (or employee representatives) to influence final decisions, whether they respond to suggestions, whether they seek employee views, and whether they keep employees informed. Figure 26 summarises the findings, which are comparable with the lows we found last year. Managers were again rated the poorest in the first of the questions, with only 28% of employees rating their managers as good or very good in allowing influence over final decisions – around a third (34%) rated them poor or very poor. Effective voice Page 554
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29 Working Lives Scotland 2024 Working Lives Scotland 2024 Very good or good Poor or very poorNeither good nor poor Allowing employees or employee representatives to influence final decisions Responding to suggestions from employees or employee representatives Seeking the views of employees or employee representatives Keeping employees informed of management discussions or decisions 3428 26 2728 2838 27 36 3140 23 Figure 26: Employee ratings of their managers (%) Note: Does not add to 100% because of ‘don’t know’ answers. Disappointingly, the findings are comparable with last year’s survey, confirming that employee perceptions of voice have fallen from their improved post- pandemic levels. However, we also found a divergence in responses by sector. Aligned to some of our other findings in this report, managerial openness scores for public sector employees have continued to fall even further, having dropped to their lowest level recorded so far, as shown in Figure 27. The survey ran not long after a period of widespread collective action across predominantly public sector workplaces – some of it long-running. Coupled with well-documented budgetary pressures across national and local government, it seems a feeling of discontent may have been heightened. We will not draw conclusions from one year of data, but the trends explored in this report should be of concern. Base: 0 0.6 0.4 0.2 0.0 –0.2 –0.4 –0.6 0.8 1.0 1.2 2020 2021 2022 2023 2024 Figure 27: Managerial openness scores over time, by sector 0.4 61 1.1 0.8 0.0 0.4 1.0 0.7 –0.5 0.4 0.3 Public sectorPrivate sector Effective voice Page 555
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30 Working Lives Scotland 2024 Conclusions and recommendations The purpose of our Working Lives Scotland series is to shine a light on the inequalities and trade-offs between elements of fair work. The findings and conclusions inform policy-makers, employers and HR practitioners who want to improve job quality across Scottish workplaces. Our evidence shows that improving work for employees not only impacts their own wellbeing, but also their job satisfaction, enthusiasm and performance, supporting retention and recruitment. This in turn boosts organisational productivity and the country’s economy as a whole. Some of these improvements do not require significant investment, but they start with an understanding of the scale of the problem. Respect The impact of poor health on the labour market is of increasing importance to policy-makers, primarily due to its relationship with economic inactivity. But even for those in employment, the links between workplaces and our health are crucial. We continue to find around a quarter of employees reporting that their work is having a negative impact on their mental or physical health, with many reporting health conditions to which their work contributed. While workplace relationships are overwhelmingly positive, challenges remain, in particular for remote workers and their relationships with colleagues. In addition, more than a quarter of all employees are reporting some workplace conflict. Recommendations Make employee health and wellbeing an organisational priority, including a focus on management training, to allow honest conversations around mental, physical, social or financial wellbeing. Ensure that disabled employees receive appropriate and relevant support, especially from their managers. Minimise scope for inappropriate behaviours through training and open organisational culture, while putting in place policies to manage and resolve conflict. Security Job security remains high due to the tight labour market, and we no longer record differences across income bands. Job and life satisfaction are also very positive, although those on the lowest incomes respond slightly more negatively to both questions. Cost-of-living challenges remain, with only around half of all employees saying they can keep up with their bills without any difficulties. Conclusions and recommendations 9 Page 556
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31 Working Lives Scotland 2024 Working Lives Scotland 2024 While we don’t see any significant changes in subjective measures of pay and work centrality year on year, looking at the five-year Working Lives Scotland time series suggests that public sector employees are growing more detached from their jobs, with an increasing proportion feeling their jobs are just for the money and no more. Recommendations Review your financial wellbeing policy and benefits packages to make sure those who need it most are supported. Train managers to have conversations around financial wellbeing and ensure they know how to signpost resources. Articulate and continually emphasise your organisational values to boost employee engagement. Opportunity While home and hybrid working remains embedded across workplaces, there has been a steady decrease in those who primarily work from home, opening a gap between current ways of working and future preferences (which have stayed the same). Nearly half of all Scottish employees are either unable or do not want to work from home at all – it is crucial that flexibility extends beyond remote working. Gaps in skills development and career advancement opportunities, primarily for those on lowest incomes and occupational classes, remain – despite evidence of their importance to individual wellbeing, organisational performance and the economy as a whole. Smaller employers in particular should increase focus on staff training. Recommendations Explore different patterns of work to ensure your employees have access to a broad range of flexible working arrangements. For those who can and want to work from home, make sure good reasoning and evidence underpins your hybrid policy to minimise discontent. Boost skills development and career progression in your organisation by addressing gaps – in scale, type and quality – in training. Conclusions and recommendations Page 557
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32 Working Lives Scotland 2024 Fulfilment Job design elements are some of the most persistent job quality aspects – job autonomy or job complexity have not shifted over the last five years. Similarly, we also find workloads that are too high, and these are not confined to high- or low-paying jobs. We see good access to adequate resources, although around a fifth of all employees say they don’t get enough training to do their jobs well. The meaningfulness of jobs remains an aspect of job quality where public and voluntary sector workers continue to do significantly better, albeit with some signs of weakening for those across the public sector. We still see high levels of skills and qualification mismatches, which act as a break on productivity, but also impact individual wellbeing. A third of graduates feel overqualified for their roles, suggesting a mismatch between our skills development supply and labour market demand. Recommendations Understand skills mismatches within your organisation and provide opportunities for upskilling and career development for all staff. Ensure managers themselves are trained regularly, and that they have both the skills and time to manage their staff. Think carefully about job design and explore how job autonomy and complexity could be boosted across roles. Effective voice Access to voice channels has remained relatively stable across all five Working Lives Scotland reports. Concerningly, a persistent fifth of all employees said they do not have any voice channels at work at all – with even bigger gaps for employees in the smallest of organisations – something that can be easily addressed without financial investment. In addition to access to voice channels, there are disappointing findings around the quality of employee voice. The drops in scores we recorded last year have unfortunately remained. Disappointingly, and in line with some of the other findings in this report, managerial openness scores for employees in the public sector have dropped to record lows. Recommendations Look at the full range of voice channel options, as well as the perceived effectiveness thereof, and ensure your employees have access to and use the best channels for your organisation. Actively engage your employees more often and in the right way, while ensuring managers are trained to have regular, meaningful conversations. Do not just use employee surveys to tick the ‘employee voice’ box – they are not seen as effective and should be supplemented by regular, smaller and more direct conversations. Conclusions and recommendations Page 558
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33 Working Lives Scotland 2024 Working Lives Scotland 2024 Appendix Background to the survey The Working Lives Scotland report builds on work carried out by the CIPD over the last few years through the CIPD Good Work Index, which uses the UK Working Lives survey to present annual measures of the seven dimensions of job quality. Through analysis of our survey data, we can investigate issues ranging from workforce health and wellbeing to the availability of flexible work, as well as skills and career development opportunities. Where we can, we highlight statistically significant differences in gender, age or sector. Unlike the CIPD Good Work Index, the Working Lives Scotland report is based around the five fair work dimensions as conceptualised by the Fair Work Convention in 2016. Each main chapter is dedicated to one dimension, with analysis of survey questions providing insight into the relevant aspects of fair work. Survey design In 2017, the CIPD embarked on a project to review the research on job quality and develop a tool to measure the main dimensions of job quality. To this end, it commissioned two reviews: first, from the perspectives of workers, on what constitutes good or poor job quality in addition to the opportunities and pitfalls in measuring it; and second, on the capacity workers have to influence their job quality and the shifting balance of power between employers and employees. This survey is based on this body of work and further consultation with academics, HR experts and government officials. The 2024 UK Working Lives survey was conducted between 8 January and 15 February 2024 and gave a sample of 5,496 workers. To make the samples representative of the UK as a whole, quotas were used to target the sample and subsequent weights based on ONS figures are applied to the dataset. The sample is representative of the UK workforce in terms of gender, full- or part- time work status, organisation size within each sector, and industry. For the fifth time, we have a boosted sub-sample for Scotland of 1,006, which has been weighted to be representative of all Scottish working adults (aged 18+). Good work and fair work Job quality has become an increasingly important area of public policy in the UK, especially following Matthew Taylor’s Review of Modern Working Practices published in 2017. Since its publication, numerous initiatives have been launched across the UK, seeking to improve job quality among businesses, including the Good Work Standard in London and the Greater Manchester Good Employment Charter. However, it is Scotland that has been at the forefront of this debate. The Scottish Government set up the Fair Work Convention – bringing academics, businesses and union leaders together – as far back as 2015. Its Fair Work Framework was published a year later and has served as the basis for policy- making since then. For example, the Scottish Government continues to roll out Fair Work First, which ties fair work principles to financial assistance from the government where possible. 10 Page 559
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34 Working Lives Scotland 2024 The survey we are analysing in this report examines both objective and subjective measures, as well as universal and relative aspects of work. This is important because, as our previous reports have already highlighted, job quality is not static – what works for some employees will be anathema to others. Objective measures look at things that should be unbiased, for example, how much people earn or types of contracts. Subjective measures, on the other hand, include things that reflect opinions or feelings – meaningful work, job satisfaction or the quality of relationships. In addition, we also look at measures that are universal and will improve job quality for anyone (eg health), but also at aspects that are relative and will differ between employees (eg flexible working arrangements). To get an accurate picture of job quality, we need to look at all of these in the round. The Fair Work Convention conceptualised job quality on academic research pulled together primarily by the Scottish Centre for Employment Research at the University of Strathclyde. The Convention defined fair work through five dimensions: effective voice, opportunity, security, fulfilment and respect. The dimensions cover a broad range of issues – from how employees are treated at work, to pay and conditions, and whether they can have their voice heard and influence change. The CIPD’s good work dimensions (see Table 1) can be found in some form across the Fair Work Convention’s framework too. ‘Pay and benefits’ and ‘Contracts’ are both key parts of the Security dimension in fair work. ‘Health and wellbeing’, ‘Relationships at work’ and ‘Work–life balance’ are all incorporated in the Respect dimension. ‘Job design and the nature of work’ is a key part of the Fulfilment dimension, with ‘Voice and representation’ directly translatable to Effective voice. Our survey also includes questions around career and skills development opportunities, which sit at the heart of the Opportunity dimension. Table 1: The CIPD’s seven dimensions of job quality Dimensions Areas included 1 Pay and benefits Pay as a percentile and in relation to the Living Wage, subjective feelings regarding pay, employer pension contributions and other employee benefits 2 Contracts The terms of employment. Contract type, underemployment, and job security 3 Work–life balance Overwork, commuting time, how much work encroaches on personal life and vice versa, and HR provision for flexible working 4 Job design and the nature of work Workload or work intensity, autonomy or how empowered people are in their jobs, how well resourced they are to carry out their work, job complexity and how well this matches the person’s skills and qualifications, how meaningful people find their work, and development opportunities provided 5 Relationships at work Social support and cohesion. The quality of relationships at work, psychological safety, and the quality of people management 6 Voice and representation Channels for feeding views to senior management, cultural norms on voice and satisfaction with the opportunities for voice 7 Health and wellbeing Positive and negative impacts of work on physical and mental health. Often considered as an outcome of job quality Appendix Page 560
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35 Working Lives Scotland 2024 Working Lives Scotland 2024 Ultimately, it does not matter whether we refer to good work, better employment, fair work or any other variation of the concept. What matters is that there is an increasing body of research on job quality that provides policy- makers and HR practitioners with evidence on what works, what can be done better, and how boosting job quality benefits employees and employers alike. The Fair Work Convention’s Fair Work Framework Security of employment, work and income are important foundations of a successful life. This can be achieved through, for example: • Fair pay (for example, the real Living Wage) • No inappropriate use of zero hours contracts or exploitative working patterns • Collective arrangement for pay and conditions • Building stability into contractual arrangements • Flexible working to align with family life and caring commitments • Employment security arrangements • Fair opportunity for pay progression • Sick pay and pension SECURITY: OPPORTUNITY: RESPECT: FULFILMENT: EFFECTIVE VOICE: FAIR WORK Fair Work is work in which people are respected and treated respectfully, whatever their role and status. This can be achieved through, for example: • Considering the concerns of others • Respect of behaviours and attitudes • Policies and practices which are understood and applied that respect health, safety and wellbeing • Respect of workers’ personal and family lives • Opportunities for flexible working The ability to speak, individually or collectively, for example, through a recognised trade union, and to be listened to, is closely linked to the development of respectful and reciprocal working relationships. Effective voice underpins the other dimensions of Fair Work, and real dialogue between organisational stakeholders can help deliver on opportunity, security, fulfilment and respect. This can be achieved through, for example: • Enabling staff to have a voice at all levels • Openness, transparency, dialogue and tolerance of different views • Formal and informal structures • Union recognition and collective bargaining Fair opportunity allows people to access and progress in work and employment and is a crucial dimension of Fair Work. This can be achieved through, for example: • Robust recruitment and selection procedures • Paid internships • Training and development opportunities • Promotion and progression practices • Buddying and mentoring • Engaging with diverse and local communities It is widely accepted that fulfilment is a key factor in both individual and organisational wellbeing. This includes the opportunity to use one’s skills, to be able to influence work, to have some control and to have access to training and development. This can be achieved through, for example: • Effective skills use • Autonomy, opportunities to problem solve and make a difference • Investing in training, learning and skills development and career advancement Source: Scottish Government’s Best Practice Guidance on Addressing Fair Work Practices, including the Real Living Wage, in Procurement. Appendix Page 561
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The Chartered Institute of Personnel and Development 151 The Broadway London SW19 1JQ United Kingdom T +44 (0)20 8612 6200 F +44 (0)20 8612 6201 E cipd@cipd.co.uk W cipd.org Incorporated by Royal Charter (RC000758) Registered as a charity in England and Wales (1079797) Scotland (SC045154) and Ireland (20100827) Issued: June 2024 Reference: 8625 © CIPD 2024 Page 562
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer: Regulatory and Regeneration Council: 18 December 2024 Subject: Maid of the Loch Trust 1. Purpose 1.1 To ask Council whether it wishes to agree to changes to the status and constitutional documents of the Loch Lomond Steamship Company and the dissolution of the Maid of the Loch Trust. 2. Recommendations Council is asked to note the request from the current Directors of the Loch Lomond Steamship Company and determine whether, in line with the request, it agrees:- 1) To the proposed change of status of the Loch Lomond Steamship Company from a Company Limited By Guarantee to a Scottish Charitable Incorporated Organisation; 2) To appoint three trustees to the Maid of the Loch Trust; 3) To request the Trustees and the Directors appointed by the Trust to agree to the dissolution of the Trust and the former Limited Company and to approve the transfer of the Maid of the Loch and other assets to the new Scottish Charitable Incorporated Organisation; and 4) Assuming the approval of the same by the Trustees, to agree to the transfer of the Maid of the Loch and other assets to the new Scottish Charitable Incorporated Organisation. 3. Background 3.1 In 1995, Dumbarton District Council, which had acquired the Maid of the Loch paddle-steamer, agreed to transfer the ship and other assets to the Maid of the Loch Trust to assist with its preservation and renovation. 3.2 The Maid of the Loch Trust then transferred the vessel to its wholly owned company the Loch Lomond Steamship Company. 3.3 Following initial works to stabilise and preserve the vessel the Loch Lomond Steamship company has continued throughout the past 28 years to renovate the Maid of Loch with the ultimate aim of bringing it back to working (i.e. sailing) order. 3.4 Two of the current directors of the Loch Lomond Steamship Company (the Company) have contacted the Council to propose changes to the status and operation of the Company in order to address challenges they are encountering. ITEM 20 Page 563
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4. Main Issues 4.1 The Directors of the Company have proposed that due to problems in the current Memorandum and Articles of Association (the internal rules that govern the Company) they believe they are unable to function properly and in particular the difficulties they have are preventing the company from taking decisions which may benefit the aims of the Trust and the Company which is a registered charity. 4.2 They have referred to the guidance from the Office of the Scottish Charities Regulator who state:- “A Charity’s constitution should set out clearly who the charity trustees are and ensure they are able to control the charity. Charity trustees should have the final responsibility for strategic planning and oversight of how the resulting strategy is implemented. Complex internal structures can hinder clear decision making, make governance and management overly time consuming and foster damaging internal disputes. A simple structure with a single governing body usually streamlines decision making and makes it clear who is accountable for decisions.” 4.3 On having taken advice from the SCVO the Directors believe that the best way to achieve this simplicity and single governing body is to create a Scottish Charitable Incorporated Organisation (generally referred to as a SCIO) to take on this role and for the Trust to be wound up as it is currently viewed as having no real role. 4.4 The benefits the Directors see is the ability to introduce wider participation by parties who would have the freedom to implement the initiatives which the board determines were appropriate. Without the changes it has been suggested that the Board will struggle to recruit Directors, Volunteers and to find funders as they will be frustrated by the inability to take forward the steps necessary to preserve and renovate the vessel. 4.5 It was also suggested that the change would encourage funders, though this suggestion seemed incidental to the overall desire for change and was not discussed at length. 4.6 What is clear is that the Directors feel that the current non participation of the Council and indeed other Trustees directly in plans for the Maid of the Loch is having a detrimental effect in terms of the ability to move forward with their ambitious plans. At present the Trust is moribund with no current trustees. In order to take make any progress either under the current structure or the new proposed SCIO, it would be necessary for the Council to appoint Trustees and to encourage the other bodies named in the Trust Deed (The Paddlesteamer Preservation Society and Visit Scotland (as successor to the Tourist Board) to do likewise to allow decisions to be taken. 4.7 The Directors believe that the new SCIO structure would lead to a more dynamic and democratised approach to the renovation and ultimately, operation, of the Page 564
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Maid of the Loch. 4.8 Having considered the proposal the Chief Officer Regulatory and Regeneration sees merit in an overhaul of the current arrangements and in particular the Trust arrangements. 4.9 At present, the sole purpose of the Trust appear to be to ensure the Maid of the Loch can be retained on the loch and that decisions around its future reflect that. Within the trust there is a clawback that returns the Maid of the Loch to the Council in the event of the Trust being wound up. It is not clear how this would operate with regard to the Loch Lomond Steamship Company itself, but the Trustees would be bound to try to give effect and that in itself may be sufficient to prevent alienation of the vessel as the Trustees form the voting members of the Company. 4.10 The Chief Officer Regulatory and Regeneration has expressed some concerns that a SCIO, unlike a Company Limited by guarantee, has no legal personality beyond the bound of its charitable status, whereas a limited company has i.e. if it loses its charitable status, it still exists and its assets still belong to it. A SCIO on the other hand, on ceasing to meet charitable aims, ceases to exist and it is for the Scottish Charities Regulator to then determine what happens to its assets. Generally these are distributed to charities with similar aims but if the asset is actually viewed as a potential burden, the SCIO cannot compel anyone to take it on or to retain it in the area (albeit the point has been well made that the ship could not be transported off the Loch in one piece). Both SCIO’s and Limited Companies are subject to normal insolvency rules. 4.11 While the risk of someone transporting the Maid of the Loch off Loch Lomond as a going concern i.e. in one or more piece capable of re-assembly, is so remote as to be negligible, there considered to be is a definite enhanced risk of loss of the ship to scrappage albeit discussions with the Council, Loch Lomond Steamship Company and OSCR may limit that risk prior to any change in status. 4.12 The Chief Officer Regulatory and Regeneration believes that it may be possible to address the concerns raised to date about the current arrangement by renewing the Trust terms and the Memorandum and Articles of Association, however it may be that further discussion with the Directors will be able to clarify whether this approach could possibly work and whether it would be preferable in the round to all parties. 4.13 If Members are not sufficiently confident that the transfer to a SCIO is the correct way forward at this stage, it is suggested that the following alternative approach could be considered. • The Trustees are appointed as per recommendation 2(2). • The Chief Officer Regulatory and Regeneration write to the other nominating bodies under the trust to ask them to do likewise. • The Trustees and representatives of the Council meet with the Page 565
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Directors of the Loch Lomond Steamship Company to identify in detail the advantages and disadvantages of both approaches and arrive at a consensus on the way forward. • Whether or not a consensus is reached, a further report will follow to Council with a recommendation on how to proceed. 5. Options Appraisal 5.1 An Options Appraisal is not required for this report. 6. People Implications 6.1 There are no People Implications associated with this report. 7. Financial and Procurement Implications 7.1 There are no financial implications for the Council associated with this report and no procurement activity is anticipated. 8. Risk Analysis 8.1 The risks associated with the proposal are identified in paragraphs 4.4, 4.6,and 4.9 - 4.11 of the Report. Possible routes to mitigate such risks are suggested at 4.12 to 4.13. 9. Equalities Impact Assessment (EIA) 10. A screening identified no Equalities Impact issues. 11. Consultation 11.1 The Chief Officer of Resources has been consulted in relation to this report. 12. Strategic Assessment The proposal can be seen as relevant to our ambition for Resilient and Thriving Communities. Name: Alan Douglas Designation: Chief Officer: Regulatory and Regeneration Date: 5 December 2024 Person to Contact: Alan Douglas; Tel: 013897377801 Appendices: None Page 566
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Background Papers: EIA Screening Wards Affected: Ward 1 Page 567