Item 11 - General Services BCR to Period 3
West Dunbartonshire Council · 30 August 2023
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 30 August 2023 ___________________________________________________________________ Subject: General Services Budgetary Control Report to 30 June 2023 (Period 3) 1. Purpose 1.1 This report provides an update on the General Services revenue budget and the approved capital programme to 30 June 2023. 2. Recommendations 2.1 Council is asked to: i) note a current projected annual adverse variance on the revenue account of £2.846m (1.1% of total budget); and ii) note that projected expenditure on the capital account is higher than the 2023/24 budget by £0.011m (-0.01% of budget) which is the result of an in-year overspend. 3. Background Revenue 3.1 At the meeting of West Dunbartonshire Council (the Council) on 1 March 2023, Members agreed the revenue estimates for 2023/2024. A total net budget of £265.160m was approved for General Services. 3.2 Since the budget was agreed, additional funding has been provided by the Scottish Government resulting in a revised total net budget of £268.231m. Service £m £m Agreed budget 1 March 2023 265.160 Additional Funding: No One Left Behind Housing & Employability 0.189 Child Poverty Housing & Employability 0.078 SNCT Payaward Education 2.724 Summer 23 Programme Education 0.080 Total Additional Funding 3.071 Revised budget as at Period 3 268.231 Capital 3.3 At its 1 March 2023 meeting, the Council also agreed the updated General Services Capital Plan for 2023/2024 to 2031/32. The three years from 2023/24 to 2025/26 were approved in detail with the remaining years being ITEM 11
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indicative at that stage. After adjusting for anticipated re-profiling from 2022/23 into 2023/24, the budget agreed for 2023/24 was £79.916m, as noted below. 3.4 Since then, budget adjustments have taken place (through further 2022/23 capital re-profiling and additional external funding), revising the 2023/24 annual budget to £92.814m, as follows: £m Agreed budget 2023/24 (Council – March 2023) 79.916 Additional re-profiling from 2022/23 – following year end 11.296 New Funding introduced to Period 3 Nature Restoration Fund 0.257 Cycling, Walking and Safer Streets 0.561 Strathclyde Passenger Transport 0.650 Road Safety 0.134 Revised budget 2023/24 as at Period 3 92.814 4. Main Issues Revenue 4.1 The summary report at Appendix 1 highlights a projected annual adverse variance (overspend) of £2.846m (1.1% of the total budget). Appendix 2 provides more detailed service reports by Chief Officer. 4.2 Information on projected annual variances in excess of £0.050m are highlighted and noted within Appendix 3, with additional information on action being taken to minimise or mitigate overspends where possible. 4.3 A list of agreed management adjustments totalling £11.809m is shown within Appendix 4. Current indications show, £11.584m is on target to be achieved. However, Appendix 4 also shows that it is anticipated that £0.225m will not be achieved and will be funded by the smoothing fund for 2023/24 only, with the expectation that the full saving will be achieved in future years. 4.4 A breakdown of the 2023/24 earmarked balances are shown within Appendix 5 and is summarised as follows: £000 Earmarked balances brought forward from 2022/23 24.590 Transfers in identified in 2023/24 (includes the balance of the agreed cost of living funds over the next 4 years) 0.975 Transfer out identified in 2023/24 to fund 2022/23 pay (2.195) Anticipated forecast spend 2023/24 (11.847) Amounts due to be released in 2023/24 (0.597) Balance remaining and anticipated to be carried forward into 2024/25 10.926
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Capital 4.5 The current progress on the capital plan is shown in Appendices 6 to 9. 4.6 The overall programme summary report at Appendix 6 shows that planned 2023/24 expenditure is higher than the 2023/24 budget by £0.011m (-0.01% of budget) which is the result of an in-year overspend. This is offset by the need for additional prudential borrowing which is reflected in the forecast resources also being £0.011m higher than budget. 4.7 Appendix 6 also provides an analysis of the overall programme at each alert status and a summary budgetary control report including detailing the number of projects and corresponding spend as a percentage of the overall programme currently at red, amber or green alert status for project life and the current year. The current projections are based on best judgement as to how these projects will continue in operation during the remainder of the year. 4.8 Appendices 7 and 8 detail the financial analysis of projects at red and green status respectively (currently no amber) and provide additional information on action being taken to minimise or mitigate under or overspends where possible. Appendix 9 provides an analysis of resources. 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 results for both the revenue and capital budgets; (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 2023/24 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;
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(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; 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: 16 August 2023 __________________________________________________________________ Person to Contact: Janine Corr, Accountant Council Offices, Church Street, Dumbarton E-mail: janine.corr@west-dunbarton.gov.uk Appendices: Appendix 1 - Revenue Budgetary Control 2023/24 – Corporate Summary; Appendix 2 - Revenue Budgetary Control 2023/24 – Chief Officer Summaries; Appendix 3 - Analysis of Revenue Variances over £50,000; Appendix 4 - Monitoring of Efficiencies Appendix 5 - Monitoring of Earmarked Balances Appendix 6 - Overall Capital Programme Summary; Appendix 7- Analysis of Projects at Red Status; Appendix 8 - Analysis of Projects at Green Status;
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Appendix 9 - Analysis of Capital Resources. Background Papers: • Ledger output – Period 3; • General Services Revenue Estimates 2023/24 • General Services Capital Plan Update - Council 1 March 2023. Wards Affected All Wards