Item 13 Appendix 3
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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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.
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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
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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.
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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
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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
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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
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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
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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
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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.