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West Dunbartonshire Council · 21 December 2022
Back to West Dunbartonshire Council — 21 December 2022 and its agenda
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Agenda West Dunbartonshire Council Date: Wednesday, 21 December 2022 ___________________________________________________________________ Time: 16:00 ___________________________________________________________________ Format: Hybrid meeting ___________________________________________________________________ Contact: Christine McCaffary, Senior Democratic Services Officer Email: christine.mccaffary@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 Douglas McAllister Councillor Michelle McGinty Councillor James Bollan Councillor June McKay Councillor Karen Conaghan Councillor John Millar Councillor Ian Dickson Councillor Lawrence O’Neill Councillor Diane Docherty Councillor Lauren Oxley Councillor Craig Edward Councillor Chris Pollock Councillor Gurpreet Singh Johal Councillor Martin Rooney Councillor Daniel Lennie Councillor Gordon Scanlan Councillor David McBride Councillor Hazel Sorrell Councillor Jonathan McColl Councillor Clare Steel Councillor James McElhill Councillor Sophie Traynor Chief Executive Chief Officers Date of issue: 8 December 2022 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, 21 DECEMBER 2022 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 done by roll call vote to ensure an accurate record. 5 MINUTES OF PREVIOUS MEETING 9 - 25 Submit for approval, as correct record, the Minutes of Meeting of West Dunbartonshire Council held on 26 October 2022. 6 MINUTES OF AUDIT COMMITTEE 27 - 28 Submit for information, and where necessary ratification, the Minutes of Meeting of the Audit Committee held on 10 August 2022. 7 OPEN FORUM The following Open Forum question has been submitted:- Question from John Mooney – Flooding in Linnvale, Clydebank The Linnvale community is very concerned about the recurrent flooding of their streets. It is disappointing and demoralising to read the recriminations between the Council and Scottish Water about this in the local press. Page 3
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Can the Council provide an assurance today that it will do its utmost to work in partnership with Scottish Water and the Linnvale community to sort this out for good? 8 GLASGOW CITY REGION CITY DEAL - UPDATE 29 - 33 Submit report by the Chief Officer – Regulatory and Regeneration noting the progress with the implementation of the Glasgow City Region, City Deal. 9 REVIEW OF THE COUNCIL’S CAPITAL PROGRAMME 35 - 57 Submit report by the Chief Officer – Resources providing the Council with the outcome of a review of the Council’s Capital Programme and presenting recommendations to reduce the capital programme in light of concerns about affordability. 10 FINANCIAL UPDATE 59 - 128 Submit report by the Chief Officer – Resources providing an update on the financial challenges facing the Council, the estimated 2023/24 – 2024/25 revenue budget gaps and presenting the first tranche of saving options for Members consideration to help the Council deliver a balanced 2023/24 budget. 11 GENERAL SERVICES BUDGETARY CONTROL REPORT 129 - 198 TO 31 OCTOBER 2022 (PERIOD 7) Submit report by the Chief Officer – Resources providing an update on the General Services revenue budget and the approved capital programme to 31 October 2022. 12 HOUSING REVENUE ACCOUNT (HRA) BUDGETARY 199 - 218 CONTROL REPORT TO 31 OCTOBER 2022 (PERIOD 7) Submit report by the Chief Officer – Resources providing an update on the financial performance to 31 October 2022 (Period 7) of the HRA revenue and capital budgets for 2022/23. 13 AUDITED FINANCIAL STATEMENTS 2021/22 219 - 378 Submit report by the Chief Officer – Resources providing Members with the opportunity to scrutinise the Audited Annual Accounts 2021/22 for both the Page 4
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Council and the Charities administered by the Council, following approval at the Audit Committee on 9 November 2022. 14 ANNUAL AUDIT REPORT TO MEMBERS AND CONTROLLER 379 - 455 OF AUDIT 2021/22 Submit report by the Chief Officer – Resources providing Members with the opportunity to consider the Annual Audit Report to Members and Controller of Audit for the Council and the Trusts administered by the Council, following consideration by the Audit Committee on 9 November 2022. 15 COMMITTEE TIMETABLE – AUGUST 2023 TO APRIL 2027 457 - 471 Submit report by the Chief Officer – Regulatory and Regeneration proposing a timetable of Council and committee meetings for the period August 2023 to April 2027. 16 EQUALITIES REVIEW OF TERMS AND CONDITIONS OF 473 - 504 EMPLOYMENT Submit report by the Chief Officer – People and Technology seeking approval of proposed changes to terms and conditions of employment for local government and craft employees to further eradicate inequalities and to authorise the Chief Officer - People and Technology to engage with the Trade Unions for consultation with a view to seeking agreement on their implementation. 17 NOTICE OF MOTIONS (a) Motion by Councillor Jim Bollan - STUC Campaign “Scotland Demands Better” Council agrees to support the STUC's campaign "Scotland Demands Better". The key points of which are noted below, which sets out a programme to help combat the effects of the Cost of Living Emergency. 1. A real pay rise for all public service workers 2. A social security system that loosens the grip of poverty 3. Warm homes, through municipal energy companies 4. Sustained action to tackle rent costs 5. Share the wealth, through income, wealth and business taxes 6. Universal free school meals Page 5
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7. Cheap, publicly controlled public transport 8. More support for childcare 9. Enforcement of Fair Work Council further agrees to circulate the motion to all other Scottish Councils seeking their support for the motion. (b) Motion by Councillor Jim Bollan – Contingency Plans in the Event of Nuclear Incident at Faslane Council will be aware of the recent reports of the serious fire on the Vanguard Nuclear Submarine which was carrying Trident missiles, while it was in the North Atlantic. The fire was tackled by the crew, then the submarine had to surface to expel toxic fumes. The incident brings into sharp focus the absolute catastrophe that could have unfolded had the submarine been lost in the North Atlantic. This dangerous incident will be of great concern to many local people given the location of the incident and that the submarine is being taken back to Faslane Base. Given the gravity of the situation Council asks the CEO to bring a report to the next Council meeting detailing what contingency plans the Council has in the event of a serious nuclear incident at Faslane, or the surrounding waters, to support and protect the residents of West Dunbartonshire. (c) Motion by Councillor Clare Steel – Kilbowie St Andrew’s Church, Clydebank This Council recognises the important part that Kilbowie St Andrew’s Church has played in the history of Clydebank and that local residents have a strong association with the church. This church has been a key focus of help and support over many decades and a key element of the Council and the community of Clydebank for commemorating the Clydebank Blitz. The church building endured the Clydebank Blitz and contains important artefacts such as the Blitz Chapel, a memorial stained glass window and a book was created with the names of all those who lost their lives in the Blitz. Page 6
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The church was also gifted a valuable triptych painting portraying images of the Blitz created by renowned local artist Tom McKendrick. In addition it is regarded as a Chapel of Remembrance and Reflection in Clydebank. Given the above, this Council calls on the Clyde Presbytery to reconsider its plans to close Kilbowie St Andrew’s Church and instead to retain the church and preserve its historic story for the benefit of future generations. (d) Motion by Councillor Gurpreet Singh Johal – Prioritising Repairs Related to Dampness and Mould West Dunbartonshire Council notes the tragic death of two year old Awaab Ishak who passed away in December 2020 in Rochdale, having suffered prolonged exposure to mould as concluded by the coroner on Tuesday, 15 November 2022. This avoidable death should be a wake-up call for all social housing providers including West Dunbartonshire Council, and local, regional and national Housing Associations. Council therefore asks the Chief Officer of Supply, Distribution and Property and Chief Officer, Housing and Communities to: 1. Review our approach to dampness in Council properties and how best to prioritise associated repairs. 2. Introduce a process to ensure all dampness/mould repairs are checked and signed off by Maintenance Co-ordinator before the case is closed. This quality control check should ensure the action taken has fully resolved the complaint. 3. Produce a briefing note setting out the outcome of the review to be sent to all elected members for information. Council further notes that we will take all appropriate actions to address any concerns tenants may have. Our thoughts and prayers remain with the loved ones of Awaab Ishak following this heart-breaking case. (e) Motion by Councillor Ian Dickson – People Make West Dunbartonshire Council recognises that we are fortunate within our communities to have a wealth of volunteers who give of their time and talents to enrich the lives of others. Bryan Warren from Bonhill is one of many volunteers our area is blessed with. Page 7
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Council applauds Captain Warren for his fundraising efforts over the years, especially those for the Erskine charity. To date he has raised over £7000 from donations as he plays his bagpipes locally. It is not only the Erskine charity that benefits from Bryan’s musical talent but visitors to our local area who are welcomed by such a friendly and positive ambassador for this area. We commend Bryan for his good works and wish him good health and happiness for the years ahead. (f) Motion by Councillor James McElhill – The Stand, Our Holy Redeemer Primary School This Council recognises that a degree of powers delegated to officers of the Council can be and is often conducive to the smooth day to day running of the Council. This Council further thanks officers for their continuing hard work and dedication in this regard. This Council does not believe, however, that, going forward, Council Officers should have delegated authority to close long-standing and firmly established public facilities without the agreement of this Council and without any consultation with affected community groups. It would appear that The Stand facility at Our Holy Redeemer Primary School in Clydebank has recently been boarded up in preparation of demolition despite a significant amount of money having been identified for its refurbishment. It is also the case that neither the school’s PTA nor the local Community Council, or any other community group, have been informed of the decision to demolish let alone being consulted on it. With the above in mind, this Council agrees that a full report is brought to Council concerning the status of “The Stand” at Our Holy Redeemer Primary School and the likely impact of any required change to the scheme of delegation around determination by officers that property is surplus to requirements. Council notes that this Motion is in the interests of openness, transparency, accountability and local democracy. 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, 26 October 2022 at 4.05 p.m. Present: Provost Douglas McAllister and Councillors Jim Bollan, Karen Conaghan, Ian Dickson, Diane Docherty, Gurpreet Singh Johal, Daniel Lennie, David McBride, Jonathan McColl, James McElhill, Michelle McGinty, June McKay, John Millar, Lawrence O’Neill, Lauren Oxley, Chris Pollock, Martin Rooney, Gordon Scanlan, Hazel Sorrell, Clare Steel and Sophie Traynor. Attending: Peter Hessett, Chief Executive; Alan Douglas, Chief Officer – Regulatory and Regeneration (Legal Officer); Laurence Slavin, Chief Officer – Resources and Section 95 Officer; Peter Barry, Chief Officer – Housing and Employability; Beth Culshaw, Chief Officer – West Dunbartonshire Health and Social Care Partnership, Amanda Graham, Chief Officer – Citizen, Culture and Facilities; Laura Mason, Chief Education Officer; Victoria Rogers, Chief Officer – People and Technology; Sylvia Chatfield, Head of Mental Health, Learning Disability and Addictions; Lesley James, Chief Social Work Officer; Michelle Lynn, Assets Co-ordinator; George Hawthorn, Manager – Democratic and Registration Services and Christine McCaffary, Senior Democratic Services Officer. Also Attending: Christopher Gardner and Sanya Ahmed, Audit Scotland. Apologies: An apology for absence was intimated on behalf of Councillor Craig Edward Provost Douglas McAllister in the Chair STATEMENT BY CHAIR Provost McAllister 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 at this point in the meeting. ITEM 5 Page 9
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RECORDING OF VOTES The Council agreed that all votes taken during the meeting would be done by roll call vote to ensure an accurate record. URGENT ITEM OF BUSINESS MOTION BY COUNCILLOR SOPHIE TRAYNOR – BIG DISABILITY GROUP The Provost advised that he had received a request from Councillor Traynor for the Council to consider an urgent item of business concerning the Big Disability Group. Councillor Traynor relayed the terms of her motion to the Council, and the Provost advised that it would be considered after the last item of business on the agenda. MINUTES OF PREVIOUS MEETING The Minutes of Meeting of West Dunbartonshire Council held on 31 August 2022 were submitted and approved as a correct record. MINUTES OF AUDIT COMMITTEE The Minutes of Meeting of the Audit Committee held on 15 June 2022 were submitted and approved as a correct record. OPEN FORUM The Council noted that no open forum questions had been submitted by members of the public. GLASGOW CITY REGION CITY DEAL UPDATE A report was submitted by the Chief Officer – Regulatory and Regeneration noting the progress with the implementation of the Glasgow City Region, City Deal and seeking approval to agree expenditure on the Western Underpass design and construction on the Exxon site ahead of the Final Business Case approval by Glasgow City Region, which was anticipated in June 2023. Councillor Rooney, seconded by Councillor McGinty moved:- That the Council agrees:- (1) to note the progress of the Glasgow City Region programme; and Page 10
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(2) to approve expenditure of £5.74M on design and construction of the Western Underpass prior to approval of the Full Business Case, anticipated to be in June 2023. The motion was agreed by the Council. Councillor Bollan, having failed to find a seconder for a proposed amendment, asked that his dissent be recorded in respect of this item. ARMED FORCES COVENANT A report was submitted by the Chief Officer – People and Technology providing a summary of the work being undertaken in support of the Armed Forces Covenant and future activity to maintain the Gold Award. After discussion, the Council agreed to note the update provided. COST OF LIVING – CAPITAL FUND A report was submitted by the Chief Officer – Resources providing details of the proposed Cost of Living Capital Fund to support organisations that required funding for Cost of Living focused initiatives and seeking approval of the process to review applications. Councillor McGinty, seconded by Councillor Steel moved:- This Council agrees the recommendations at 2.1 of the report to: • Approve the guidance and the application form; • Approve the process to manage the cost of living capital fund - including delegating powers to the Chief Officer Resources to approve or reject applications; • Approve the launch on 31st October and close on 9th December for the initial bids; and • Approve the overall cap of £250,000 to be applied to the fund for the next four years The process that we are being asked to agree is that: • Bids are submitted and assessed against the criteria by the Chief Officer Resources. • Bids that meet the criteria are presented to the Cost of Living Working Group with a recommendation from the Chief Officer. • The Working Group consider the bid and inform the Chief Officer of their views. • The Chief Officer Resources makes a final decision taking account any risks to the council. Page 11
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The recommendations and the process mean that funding will be available to help local people over the next four years and will allow there to be a quick response to requests that meet the bid criteria. This Council has taken a cross-party approach to the Cost of Living with the establishment of the Working Group in May. Since then we have progressed a number of initiatives such as: • Summer activities for young people such as free gym, swim and sports camps; • Support to Antonine for sports activities; • Support to Foodbanks £1,000 per week for a food subsidy; • Set up a £250,000 energy fund; • Organised Cost of Living Conference; • Introduced free activities for October week (978 swim and gym sessions were taken up by children) The above initiatives give us a strong basis for providing support to local families. • We still have considerable capital funds to spend £1m spread over 4 years; • The energy funds will start to be paid out beginning of November; • We have plans for activities that will be centred around our libraries (e.g. arts and crafts, IT skills, book clubs and tea dance for elderly in Clydebank Town Hall); • Partner organisations and businesses are responding to the call to help others; and • Other public organisations like HSCP will be bringing forward their own ideas and initiatives. The Cross-Party Working Group realise that they still have a lot of work to do and have another meeting planned for the beginning of November to discuss other initiatives that will help those who are struggling through this unprecedented cost of living crisis. They have been heartened by the amazing response of the fantastic community groups, churches and volunteers who have once again rolled their sleeves up and got on with the hard work of helping others, such as Old Kilpatrick Food Parcels and St Patrick’s Church. It’s important that we continue to plan and phase out our uncommitted resources so that we can respond to new initiatives and issues over the coming months and years as the Cost of Living Crisis is unlikely to disappear overnight. As an amendment Councillor Bollan seconded by Councillor Dickson moved:- That the Council agrees the recommendations in the report and that we introduce a right of appeal for any application that is refused. Page 12
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On a roll call vote being taken 10 Members voted for the amendment, namely Councillors Bollan, Conaghan, Dickson, Docherty, McColl, McElhill, Oxley, Pollock, Scanlan and Traynor and 11 Members voted for the motion, namely Provost McAllister and Councillors Johal, Lennie, McBride, McGinty, McKay, Millar, O’Neill, Rooney, Sorrell and Steel. The motion was declared carried. ADVISORY BRIEFING REPORT RELATING TO MOTION BY COUNCILLOR KAREN CONAGHAN – SUICIDE RATE IN WEST DUNBARTONSHIRE A report was submitted by the Head of Mental Health, Learning Disability and Addictions providing information on a range of possible approaches that could be followed to address the motion from Councillor Conaghan relating to suicide rates in West Dunbartonshire. Having heard the Head of Mental Health, Learning Disabilities and Addictions in further explanation and in answer to Members’ questions, the Council agreed to note the contents of the report, the linked suicide prevention activity and the local action plan. CHIEF SOCIAL WORK OFFICER’S ANNUAL REPORT 2022-22 A report was submitted by the Chief Social Work Officer providing information on the statutory work undertaken, including a summary of governance arrangements, service delivery, resources and workforce. After discussion and having heard the Chief Social Work Officer in further explanation and in answer to Members’ questions, the Council agreed:- (1) to note the content of the Annual Report 2021-22; and (2) to approve its submission to the Office of the Chief Social Work Advisor to the Scottish Government. FAIR TAX DECLARATION A report was submitted by the Chief Officer –Resources providing information on the adoption of the Fair Tax Declaration. Councillor Johal seconded by Councillor Sorrell moved:- That the Council agrees:- (1) to note the information gathered on the Fair Tax Declaration pledge; (2) to note that under the current Procurement Regulations, the Council can only exclude any economic operator from participating in Council tenders if that operator has not met all of its obligations relating to the payment of taxes; Page 13
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(3) to note the possible implications for the Council and its services should the Fair Tax Declaration pledge be adopted; (4) that whilst the Council is not able to fully adopt the Fair Tax Declaration pledge, it can promote and support key elements of it; and (5) that Council officers meet with officers from the Fair Tax Declaration. The motion was agreed by the Council. Councillor Bollan, having failed to find a seconder for a proposed amendment, asked that this dissent be recorded in respect of this item. ALLOCATION OF RESIDENTIAL CARE COSTS A report was submitted by the Chief Officer – Resources providing a recommendation on the split of residential care costs between the Health and Social Care Partnership (HSCP) and Education budgets, and providing an update on the one off 2022/23 increase in residential care costs to be funded from HSCP COVID funds. The Council agreed:- (1) that residential care costs for children under 16, or those in full time education beyond that age, be allocated on a 72% HSCP / 28% Education basis in 2022/23 and on a recurring basis; (2) that the one off 2022/23 budget assumption, approved when Council set the 2022/23 revenue budget, that £725k of 2022/23 residential care costs for children under 16 should be funded by the HSCP should be amended so that the Council’s Education budget is allocated 28% of it (£203k) with the balance of £522k (72%) funded by the HSCP; and (3) that the £203k Education share of the one-off £725k element in 2022/23 be funded from general COVID funds. REVIEW OF STANDING ORDERS A report was submitted by the Chief Officer – Regulatory and Regeneration recommending changes to the Council’s Standing Orders. Councillor Rooney seconded by Councillor McGinty moved:- That the Council agrees:- (1) the changes to the Standing Orders proposed in Appendices 1 and 2 to the report, with effect from 14th November 2022; and Page 14
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(2) that the Financial Regulations and Scheme of Delegation be reviewed and, where necessary, amended to reflect the terms of the revised Standing Orders. As an amendment, Councillor Conaghan seconded by Councillor McColl moved:- Council agrees the recommendations at 2.1 and 2.2 of the report with the following exception: • Council agrees to defer making changes to levels of delegated limits of expenditure under Standing Order 36(4), outlined at page 196 of the report. A report will be brought to the December Council meeting with information on other Councils’ delegated levels of expenditure for context, and some narrative from officers on the benefits of such a large increase in delegated authority. The Administration previously intimated they would reconsider political balance on Committees when Standing Orders were reviewed. To that end and to ensure Council is adhering to the principles of democracy, openness, and transparency with its political makeup of committees, Council agrees the following changes to the decision made at the statutory meeting: Educational Services Committee - 8 Admin 6 Opp Audit Committee - 3 Admin 5 Opp Community Alliance - 2 Admin 1 Opp Community Planning Board - 2 Admin 1 Opp Shared Services Joint Committee - 3 Admin 1 Opp WDHSCP - 2 Admin 1 Opp Dumbarton Educational Trust - 2 Admin 1 Opp Lomond and Clyde Care and Repair - 1 Admin 1 Opp The Leader of the Opposition will liaise with Community Party and SNP Councillors and appoint members to opposition positions in the normal manner. Any spaces remaining will be offered back to the Administration to fill. On a roll call vote being taken 10 Members voted for the amendment, namely Councillors Bollan, Conaghan, Dickson, Docherty, McColl, McElhill, Oxley, Pollock, Scanlan and Traynor and 11 Members voted for the motion, namely Provost McAllister and Councillors Johal, Lennie, McBride, McGinty, McKay, Millar, O’Neill, Rooney, Sorrell and Steel. The motion was declared carried. Page 15
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WEST DUNBARTONSHIRE COUNCIL ANNUAL PERFORMANCE REPORT 2021/22 A report was submitted by the Chief Officer – Citizen, Culture and Facilities providing West Dunbartonshire Council’s Annual Performance Report 2021/22 and supporting performance information. The Council agreed to note the Annual Report and the supporting performance information provided. STRATEGIC PLAN 2022-2027 A report was submitted by the Chief Officer – Citizen, Culture and Facilities presenting the Council’s Strategic Plan for 2022-2027 for approval. After discussion and having heard the Chief Officer in further explanation and in answer to Members’ questions, the Council agreed to approve the Strategic Plan, including the supporting performance framework. TREASURY MANAGEMENT ANNUAL REPORT 2021/22 A report was submitted by the Chief Officer – Resources providing an update on treasury management during 2021/22. The Council agreed:- (1) to note the content of the Annual Report; and (2) that the report be submitted to the Audit Committee for further scrutiny. SUSPENSION OF STANDING ORDER 20 Having heard the Provost and the Legal Officer, the Council agreed to suspend Standing Order 20 to allow consideration of the following item of business. GENERAL SERVICES BUDGETARY CONTROL REPORT TO 31 AUGUST 2022 (PERIOD 5) A report was submitted by the Chief Officer – Resources providing an update on the General Services revenue budget and the approved capital programme to 31 August 2022 and seeking approval for the use of capital receipts received in 2021/22 on COVID spend. Page 16
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The Council agreed:- (1) to note a current projected annual adverse variance on the revenue account of £0.661m (0.26% of total budget); (2) to note that projected expenditure on the capital account was lower than the 2022/23 budget by £15.731m (23.98% of budget), made up of £14.072m (21.46% of budget) of project slippage, and an in-year net underspend of £1.659m; (3) to approve the activation of the Scottish Government approved financial flexibility ‘Loans Fund Principal Holiday’ during 2021/22; (4) to approve the activation of the Scottish Government approved financial flexibility ‘Use of Capital Receipts to fund COVID expenditure’ to the value of £1.454m; and (5) to delegate authority to the Audit Committee to formally approve the audited accounts by 30 November 2022, prior to submission to the Accounts Commission. ADJOURNMENT The Provost adjourned the meeting for a short recess. The meeting reconvened at 7.03 p.m. with the Elected Members listed in the sederunt present. HOUSING REVENUE ACCOUNT (HRA) BUDGETARY CONTROL REPORT TO 31 AUGUST 2022 (PERIOD 5) A report was submitted by the Chief Officer – Resources providing an update on the financial performance to 31 August 2022 of the HRA revenue and capital budgets for 2022/23. The Council agreed:- (1) to note that the revenue analysis showed a projected annual favourable variance of £0.006m; and (2) to note that the net projected annual position in relation to the capital plan was highlighting an in-year adverse variance of £2.245m (3.42%) which was made up of slippage of £2.564m (3.91%) and overspend of £0.319m (0.49%) as detailed in Appendix 4 of the report. TREASURY MANAGEMENT MID-YEAR REPORT 2022/23 A report was submitted by the Chief Officer – Resources providing an update on treasury management to 31 August 2022. Page 17
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The Council agreed:- (1) to note the treasury management stewardship information appended to the report; (2) to approve the 2022/23 revised estimates of treasury and prudential indicators as advised within Tables A, B, C, D, E, F, H, L and N of the appendix to the report; and (3) that the report be remitted to the Audit Committee to ensure further scrutiny takes place. NOTICE OF MOTIONS (a) Motion by Councillor Jim Bollan – External Care Placements Councillor Bollan moved:- Council notes there are 137 individuals on external care placements from West Dunbartonshire. The weekly cost to WDC is £240,000. The costs for external care placement of children alone is £141,000. Added to the cost is the difficulty these external placements create for families who have family members placed outside the area, with the distances required to travel to some placements to visit their family members. Council believes these services should be provided in West Dunbartonshire and work should start to achieve this, where possible. Council requests the Health & Social Care Partnership provides a report to a future Council meeting regarding the benefits/consequences of bringing these services in house. As an amendment, Councillor McGinty moved:- This Council notes that in common with other local authorities, West Dunbartonshire makes use of both internal and external care provision to meet the needs of children and adults in receipt of care services. Providing appropriate support to those with an identified need of external care costs West Dunbartonshire £12.67m per year as identified below: • 31 clients receive external Children’s support which includes secure and specialist disability placements costing £7.348m per year. • 69 clients receive external Older People support which includes both Residential and Nursing Home placements costing £2.516m per year. • 8 clients receive external Learning Disability support costing £1.060m per year. • 12 clients receive external Mental Health support costing £786,000 per year. Page 18
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• 14 clients receive external Physical Disability support costing £760,000 per year. • 3 clients receive external Addiction support costing £200,000 per year. Council recognises that some of these external placements will be the result of client or family exercising their right to choose; some of them will be statutory care placements; and others may reflect the fact that the specialist help and support required may not be available within the local authority area. The number one priority should always be for the Council and HSCP to meet the needs of the person receiving care, while recognising the importance of support from family and friends in maintaining the wellbeing of the cared for person. This Council agrees to bring forward a report setting out all of the details, including the advantages and disadvantages for service users and families, who are using the existing external care services and additionally the report should identify any opportunities for the Council and Health & Social Care Partnership (HSCP) to consider options a local provision of care services where it is appropriate. Councillor Bollan advised that he was prepared to accept Councillor McGinty’s amendment. Councillor McGinty’s amendment therefore became the motion and was agreed by the Council. (b) Motion by Councillor Clare Steel – Raising Awareness Days and Flag Raising Events Councillor Steel moved:- Council acknowledges the current practice of lighting up public buildings such as Council Offices at Church Street in Dumbarton and the Titan Crane on Queens Quay in Clydebank. This simple act of recognition and support by the Council is very much appreciated by individuals, families and groups who often have first-hand experience of managing life changing conditions or their lived experience. • In October the Council marked World Cerebral Palsy Day by lighting up Church Street Office green; • In October the Council Office was lit up purple to mark Mental health awareness day; and • In November to Mark Armistice Day and Remembrance Day the Council will light up the Council Offices red to commemorate the sacrifices of past generations Council also acknowledges that the Provost also organises a number of flag raising days to mark key events such as:- Page 19
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• Holocaust Memorial; • Armed Forces Day; and • Support to Ukraine. Awareness raising is clearly a key element of acknowledging, understanding and normalising discussions about important issues which essentially invites the wider community to become more informed and better engaged in the subject matter. Council thanks all those involved and wishes them continued success with their endeavours. Given the above, this Council asks the Chief Executive to consider the production of a comprehensive list of awareness days for the calendar year starting in January 2023, to help support and raise awareness to the wider community so that those with a particular interest can become more involved. Councillor McColl asked if Councillor Steel would accept the following addendum to her motion:- Council asks, where possible, that any requests to the Provost from an Elected Member for a day of recognition not already in the calendar involving flag raising or lighting-up Council premises should be submitted 28 days in advance of the requested day. Councillor Steel confirmed her acceptance to the addendum and the motion with addendum was agreed by the Council. (c) Motion by Depute Provost John Millar – Celebrating 150 years of Vale of Leven Football and Athletic Club (1872 – 2022) Depute Provost Millar moved:- This Council acknowledges the strong history of its professional and amateur football clubs and the pride and joy that they have brought to our communities over many years. We have celebrated the success of Clydebank FC and Dumbarton FC many times in the recent past, including most recently acknowledging the 150th anniversary of Dumbarton Football Club. Council notes that this year also marks the 150th anniversary of the Vale of Leven Football & Athletics Club. (1872 – 2022). The club’s home is the heart of the Vale of Leven community and is based in the heart of the Vale at Milburn Park, in Alexandria. The club’s strength and successes include the following: Page 20
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• The Vale won the Scottish Cup three times in succession in 1877, 1878 and 1879. • They were runners-up 1883, 1884, 1885 and 1890. • They won the Scottish Qualifying Cup in 1909 and 1937. • They also won the Scottish Junior Cup in 1953. The full list of honours is attached to this motion. As well as its success on the pitch the club played an important part in Scottish Football history and the Vale of Leven was a founder member of the Scottish Football League when it was formed in 1890. Important as it is, football is not just about sport and competition, it is about people, the fans and the communities that support and share in their successes. Without a dedicated board, committed players and coaching staff and of course the fans, the club would not have been able to persevere over the past 150 years. The Council asks the Provost to consider the best way to appropriately celebrate the 150 years of the Vale of Leven Football Club, such as hosting a Civic Reception within their commemorative year. Roll of Honours Scottish Cup • Winners 1877, 1878, 1879 • Runners-up 1883, 1884, 1885, 1890 Scottish Qualifying Cup • Winners 1909, 1937 Glasgow Merchants Charity Cup • Winners 1882 Dunbartonshire Cup • Winners 11 times Celtic Society Cup (shinty) • Winners 1879 Scottish Junior Cup • Winners 1953 Central Junior Football League • A Division winners 1946–47 • B Division winners / overall champions 1969–70 • C Division winners 1978–79 Central District Third Division • Winners 2007-08 Page 21
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Evening Times Cup Winners Cup • Winners 1947, 1970 Kirkwood Shield • Winners 1951, 1954, 1958, 1965 Dunbartonshire Junior Cup • Winners 1940, 1965 Dunbartonshire Junior Charity Cup • Winners 1943, 1946, 1947, 1953, 1954 Erskine Hospital Charity Cup • Winners 1970 The motion was agreed by the Council. (d) Motion by Councillor Lawrence O’Neill – BBC Scotland and River City Productions Councillor O’Neill moved:- Council recognises and congratulates BBC Scotland and River City Productions on their recent 20th Year Anniversary based within their Dumbarton Studios and welcomes the benefits that this achievement and show brings to the area. Council asks the Chief Executive to formally convey our thanks and best wishes to them, the cast and all the staff on their successes to date and in future endeavours. The motion was agreed by the Council. (e) Motion by Councillor Lauren Oxley – International Day for the Elimination of Violence Against Women and Girls Councillor Oxley moved:- Council agrees to:- Mark the International Day for the Elimination of Violence Against Women and Girls (IDEVAWAG) on 25 November 2022. Understand that whilst men and women are both potential victims and perpetrators of violence, that sex and gender-based violence is disproportionately experienced by women. Page 22
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Acknowledge and praise the great work of organisations across West Dunbartonshire, such as Clydebank Women’s Aid, Dumbarton District Women’s Aid, and Rape Crisis, all of which provide vital support to local survivors of abuse. Ask West Dunbartonshire Council’s Communication Team to recognise the IDEVAWAG on social media, as well as raising awareness of the subsequent 16 Days of Activism against Gender-Based Violence that follows the event. The motion was agreed by the Council. (f) Motion by Councillor Karen Conaghan – Uprating of Benefits Councillor Conaghan seconded by Councillor Scanlan moved:- West Dunbartonshire Council recognises the terrible impact the Cost of Living Crisis is having on those who are least able to bear it. Accordingly, we call upon the UK Government to apply at least an inflationary uplift to all benefits to help protect, in some part, those who are in need of welfare assistance from ever-increasing costs for energy and food. Council asks the Chief Executive to write to the relevant UK Government minister impressing on them the urgency of this increase to benefits which will assist those most vulnerable in our community. As an amendment, Councillor Rooney seconded by Councillor McGinty moved:- Following the budget in March this year the SNP Administration left West Dunbartonshire Council with no free reserves and a £13.8 million budget deficit to be closed by March 2023. Unfortunately, due to a number of factors such as: increasing energy costs and higher pay cost, the budget gap increased to a whopping £18.3 million by the summer. These are extremely difficult financial times and the previous SNP administration left West Dunbartonshire totally unprepared for the challenges ahead. Furthermore, the SNP Scottish Government has indicated that Scottish Councils would see their budget decrease by 7% in real terms over the next three years. All of the above puts additional pressure on hard-pressed Council services. Accordingly, the Chief Executive is asked to write to the Cabinet Secretary for Finance calling on the Scottish Government to provide fair funding for West Dunbartonshire to help protect public services and jobs. Page 23
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In addition, this Council notes that despite the triple lock being government policy and the inflation being 8.3% last October, the UK Government only increased pensions by 3.1%. This represents a real terms cut for pensioners. The expectation was that pensioners would see an inflationary uplift in 2022. Given that inflation was 10.1%, the expectation is that the State Pension would increase from April 2023 to reflect the cost of living. Council further notes that between 2015 and 2020, working age benefits were subject to a four-year freeze and their value has reduced over time plunging many households into poverty. Council is concerned about the welfare of our citizens as they struggle with the cost of living with rising food prices and rising household energy prices. Therefore, this Council asks the Chief Executive to write to the UK Government calling on the Chancellor to increase pensions and all benefits to at least the rate of inflation so that households on a fixed income are better able to manage particularly over the winter where there will be greater demand for heating. On a roll call vote being taken 11 Members voted for the amendment, namely Provost McAllister and Councillors Johal, Lennie, McBride, McGinty, McKay, Millar, O’Neill, Rooney, Sorrell and Steel and 10 Members voted for the motion, namely Councillors Bollan, Conaghan, Dickson, Docherty, McColl, McElhill, Oxley, Pollock, Scanlan and Traynor. The amendment was declared carried. URGENT ITEM OF BUSINESS MOTION BY COUNCILLOR SOPHIE TRAYNOR – BIG DISABILITY GROUP Councillor Traynor seconded by Councillor McElhill moved:- Council recognises the fantastic contribution made by local charity The Big Disability Group. This organisation plays a vital role in providing support to the residents of West Dunbartonshire. Since moving into their new premises earlier this year the group have brought back benefit services to the area which runs alongside their own services providing support for all disabilities and long term conditions for individuals of all ages. Council notes that the organisation have applied to several funders for funding covering rent for the group, however they are not due to hear back from these funders until next year and there is no guarantee that they will get these requests granted. In order to ensure the continued running of this organisation during their funding gap, Council agrees to provide the group with funding support from Dec 2022 - May 2023. The funding required for this is £3125 and Council Page 24
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asks officers to identify an appropriate budget and to pay the sum of £3125 to the Big Disability Group. This motion calls on the council to come together to support this local organisation in their time of need. As an amendment, Councillor Steel seconded by Councillor McGinty moved:- This Council recognises the excellent work of all our community groups and will always offer assistance where required. It’s disappointing to learn that the Big Disability Group has a funding gap of £3,125 which potentially puts their service at risk. Council notes that the Big Disability Group provides support for all disabilities and long-term conditions for individuals of all ages and these groups are particularly affected by the cost of living crisis. Therefore, this Council agrees that the £3,125 funding gap can be paid out of the cost of living working group revenue funding. Council therefore asks the Chief Officer of Resources to arrange for a bid for funding and a recommendation to be presented to the next Cost of Living Working Group. On a roll call vote being taken 11 Members voted for the amendment, namely Provost McAllister and Councillors Johal, Lennie, McBride, McGinty, McKay, Millar, O’Neill, Rooney, Sorrell and Steel and 10 Members voted for the motion, namely Councillors Bollan, Conaghan, Dickson, Docherty, McColl, McElhill, Oxley, Pollock, Scanlan and Traynor. The amendment was declared carried. The meeting closed at 8.20 p.m. Page 25
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AUDIT COMMITTEE At a Meeting of the Audit Committee held in the Council Chambers, Clydebank Town Hall, Dumbarton Road, Clydebank on Wednesday, 10 August 2022 at 10.00 a.m. Present: Councillors Karen Conaghan, Craig Edward, Jonathan McColl, James McElhill, Michelle McGinty, John Millar and Martin Rooney. Attending: Laurence Slavin, Chief Officer – Resources; Andi Priestman, Shared Service Manager – Audit & Fraud; Julie Slavin, Chief Finance Officer; Andrew Brown, Senior Education Officer and Ashley MacIntyre, Committee Officer. Also attending: Christopher Gardner, Senior Audit Manager, Audit Scotland. Apologies: Apologies were intimated on behalf of Councillor Ian Dickson and Lay Member Mr Christopher Johnstone. Councillor Karen Conaghan in the Chair DECLARATIONS OF INTEREST It was noted that there were no declarations of interest in any of the items of business on the agenda MINUTES OF PREVIOUS MEETING The Minutes of Meeting of the Audit Committee held on 15 June 2022 were submitted and approved as a correct record. OPEN FORUM The Committee noted that no open forum questions had been submitted by members of the public. ITEM 6 Page 27
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ACCOUNTS COMMISSION: LOCAL GOVERNMENT SCOTLAND OVERVIEW 2022 A report was submitted by the Chief Officer – Resources providing information on a national audit report which was received from the Accounts Commission. After discussion and having heard the Chief Officer – Resources and the Senior Audit Manager, Audit Scotland in further explanation of the report and in answer to Members’ questions, the Committee agreed to note the contents of the report together with Appendix 1 to the report. INTERNAL AUDIT PLANS 2021/22 AND 2022/23 PROGRESS TO 30 JUNE 2022 A report was submitted by the Chief Officer – Resources advising of progress at 30 June 2022 against the Internal Audit Plans for 2021/22 and 2022/23. After discussion and having heard the Shared Service Manager – Audit & Fraud in further explanation of the report and in answer to Members’ questions, the Committee agreed to note the contents of the report. PUBLIC INTEREST DISCLOSURES AND OTHER INTERNAL AUDIT INVESTIGATIONS 1 FEBRUARY TO 15 JULY 2022 A report was submitted by the Chief Officer – Resources advising of the outcome of investigations into allegations and disclosures in line with public interest disclosure and business irregularities policies received by Internal Audit between 1 February and 15 July 2022. After discussion and having heard the Shared Service Manager – Audit & Fraud in further explanation of the report and in answer to Members’ questions, the Committee agreed to note the contents of the report. The meeting closed at 10.57 a.m. Page 28
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer: Regulatory and Regeneration Council: 21 December 2022 Subject: Glasgow City Region City Deal - Update 1. Purpose 1.1 To note the progress with the implementation of the Glasgow City Region City Deal. 2. Recommendations 2.1 It is recommended that Council 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 Previous reports, listed in background papers, have identified progress of the Council’s City Deal project at the Exxon site. 4. Main Issues 4.1 The Council is progressing the Exxon Project, which includes working with Balfour Beatty via the Scape Framework as part of the pre-construction agreement to allow the detailed design elements of the project to commence and provide greater certainty regarding the budget position. In October Council approved expenditure of £5.74M on design and construction of the Western Underpass prior to approval of the Full Business Case, anticipated to be in June 2023. The contract with Network Rail for the design has now been concluded and regular progress meetings will take place. Glasgow City Region City Deal Update 4.2 The Glasgow City Region Cabinet met on 8 November 2022. Agenda items included two separate presentations on the future of the Clyde, both advancing the case for collective management of the Clyde as an asset in a way that isn’t constrained by administrative boundaries. It is anticipated that Clyde Mission will play a role in this. 4.3 The Quarterly Performance Report was also presented, and included the recommendation to approve the Change Control Request from West Dunbartonshire Council that was approved at August Council. The Change ITEM 8 Page 29
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Control Request sought a delay to the submission of Final Business Case until June 2023, and an accelerated drawdown of an additional £2.61m from total Glasgow City Region contribution. The Council’s efforts to secure additional funding for complementary projects in the wider Exxon masterplan were noted, specifically the Scottish Government Vacant and Derelict Land fund for greenspace and community access proposals. 4.4 Glasgow City Region Chief Executives Group met on 7 December. Agenda items included a Change Control Request from Glasgow City Council on Holland Street/Pitt Street Public Realm and a proposal to establish an Anchor Network to advance Community Wealth Building in the Region. The Interim Performance report provided an update on the appointment of transport consultants to progress a Region-wide strategy for Electric Vehicle charging; noted a funding gap for developing proposals for the Clyde Climate Forest for which Member Authorities will be asked to contribute from Shared Prosperity Fund; and a call for Member Authorities to harmonise their funding criteria for green business support. 4.5 Due to escalating construction costs having an impact on the ability to deliver all the projects across the Region, the City Region Programme Management Office is working with Chief Executives on a project reprogramming exercise with the objective of prioritising projects with the most economic impact. The information will be analysed by the PMO and a report will be presented to April Cabinet. Green Freeport Bid 4.5 No decision has been taken on successful bid. Shared Prosperity Fund 4.6 Notification of the outcome of the Glasgow City Region Shared Prosperity Fund investment Plan that was submitted to UK Government on behalf of the Member Authorities is imminent. Approval by UK Government had been anticipated in October but as a result of the two Budgets that happened in quick succession, has been delayed until the end of the year. The Department of Levelling Up, Housing and Communities issued a press release on 5 December stating that the spending plans had been approved. The Council is awaiting details. Clyde Bridge 4.7 The Clyde Bridge Contractor maintains a website with regular updates on the project. A viewer at the top of the website home page shows a video of progress which is updated monthly. This can be accessed at: www.graham.co.uk/clyde-waterfront 4.8 Since the last report the Contractor has continued to develop the detailed designs for the project, based on the consented specimen design and continued dialogue with key stakeholders and landowners. Previously agreed accommodation works and boundary fencing is well progressed for landowners within the project area. Work on drainage has commenced to the Page 30
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south of the river and soil stabilisation work is on-going to the north, along with works in preparation of diversion of the Yoker Burn culvert. Works licences for the South Pier and Yoker culvert have now been issued by the Harbour Authority and work in these areas will commence shortly. Fabrication of the bridge structure is expected to commence off-site in Mid-December. 4.9 The Construction Contract for the Clyde Bridge project requires that subcontract and supplier opportunities over a value of £10,000 are advertised through the Public Contracts Scotland Tender portal. This requirement ensures that as the large-scale project is broken into smaller work parcels, local companies and SME’s have the opportunity to bid for packages of work. To date 13 works packages have been advertised, five awarded, three of which to companies within the City Region. Additionally, a commitment of a minimum of 12 days will be spent by the Contractor undertaking supply chain development, to encourage and coach, local organisations and SME’s how to prepare to enable access to this and therefore other public sector work opportunities. Thus far five sessions of training have been held. 4.10 Next stages of works include submission of design drawings to West Dunbartonshire Council officers for the road and drainage designs within the West Dunbartonshire area. 4.11 Newsletters are accessible by those who register for further updates after the issue of the first newsletter to over 3,500 residents and businesses in the local area. Posters advising the project website address were also delivered to public buildings in the project area. A link to register for updates is contained within the project webpage noted above. 5 People Implications 5.1 There are a number of 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 The approved budget to date for the City Deal Exxon project is £34.5M. The expenditure during 2021/22 was £0.44M, and as at November 2022 the current expenditure for 2022/23 stands at £0.133M. 7. Risk Analysis 7.1 There are a number of project risks associated with the development at the ExxonMobil project site and these are contained within the risk register of the refreshed Outline Business Case and updated by the project board on a regular basis. 8. Equalities Impact Assessment 8.1 An Equalities Impact Assessment is not necessary for this report as it an update on a previously reported project. Page 31
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9. Consultation 9.1 Consultation with all key stakeholders is progressing as we continue to work as part of the Glasgow City Region. 9.2 Legal Services, Finance and Procurement are regularly consulted through their participation in the Exxon project board. 9.3 Wider communication is produced regarding progress of the Glasgow City Region at its website http://www.glasgowcityregion.co.uk/ 10 Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that one of its 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: Regulatory and Regeneration Date: 6 December 2022 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 GCR Interim Performance Report- 18 Nov 2021 , GCR Education Improvement Collaborative/West Partnership Improvement Plan 2021/22, Glasgow City Region City Deal – 29 Council updates since February 2016, March 2021 Elected Members briefing- Renfrew Bridge, July 2020 Members Bulletin. ExxonMobil Commercial Agreement 24 June 2020. Glasgow City Region City Deal - Exxon Site Outline Business Cases 22 Feb 2017 and 28 Nov 2018 (Refreshed). Clyde Valley City Deal - Update and Strategic Business Case- Council 24 June 2015. Clyde Valley City Deal Update- Council 25 Aug 2015 and 16 Dec 2015. Clyde Valley City Deal- Governance- Council 17 Dec 2014. Glasgow City Region City Deal- Council 13 August 2014. Page 32
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“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. Equalities Impact Assessment November 2018. Environmental Impact Assessment -DC20/088 – Planning Application – Documents. Wards Affected: All Page 33
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 21 December 2022 Subject: Review of West Dunbartonshire Council’s Capital Programme 1. PURPOSE 1.1 To provide Council with the outcome of a review of the Council’s Capital Programme and present recommendations to reduce the capital programme in light of concerns about affordability. 2. RECOMMENDATIONS 2.1 Council is asked to: a) Note the factors having a significant impact on the affordability and delivery of the Council’s capital programme. b) Approve the removal of the 34 projects listed at paragraph 4.15 of the report from the Council’s capital plan c) Approve reduced budget allocations to the 14 projects listed at paragraph 4.17 of the report. d) Note these amendments will remove a total of £34.615m of capital expenditure from the Council’s long term capital programme and generate an estimated £0.337m in revenue savings in 2023/24, rising to £0.515m in 2024/25 and £0.577m in 2025/26. e) Note that future bids for new capital projects will be subject to an assessment carried out by the Council’s Strategic Asset Management Group and recommendations for new projects will be submitted to Council for approval on an annual basis as part of the budget setting process. However, in exceptional circumstances, recommendations for new capital projects will be submitted to Council, for approval outside of that annual cycle. 3. BACKGROUND 3.1 On 9 March 2022, the Council agreed an updated ten year capital programme and a balanced 2023/24 revenue budget. The Capital Plan contains a range of specific projects allocated to services and also a number of recurring projects for areas where there is an acknowledgement that there needs to be a degree of capital spend each year (for example building upgrades, roads maintenance, vehicle replacement etc). 3.2 The capital plan profiles the capital expenditure over a ten year window. Exhibit 1 summarises that profiled expenditure over the period 2022/23 to 2020/31. Note that a number of the projects will also have incurred capital expenditure prior to 2022/23 however Exhibit 1 is focusing on the level of capital expenditure in the ITEM 9 Page 35
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current and future years. It can be seen that the current plan includes £275.6million of expenditure over the period 2022/23 to 2030/31. Exhibit 1 – Summary of Planned Capital Expenditure as at March 2022 Budget Meeting (costs are in £000) Service No 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Total 22/23- 30/31 RECURRING 14 17,576 14,043 13,550 14,079 13,101 13,103 13,103 13,103 13,103 124,761 CCF 5 3,305 1,251 0 0 0 0 0 0 0 4,556 SPD 12 3,187 2,290 4,000 1,952 0 0 0 0 0 11,429 HSCP 4 497 711 434 280 280 154 154 154 0 2,664 R&N 41 5,506 8,658 7,665 3,130 100 0 0 0 0 25,059 EDU 11 4,036 21,805 7,860 1,560 120 120 60 0 0 35,561 RES 8 76 2 4 0 30 0 0 0 0 112 H&E 3 125 35 35 35 35 35 35 0 0 335 R&R 32 17,048 27,585 13,510 9,000 3,383 0 0 0 0 70,526 P&T 5 150 146 46 47 48 49 50 51 0 587 Total 135 51,506 76,526 47,104 30,083 17,097 13,461 13,402 13,308 13,103 275,590 3.3 The Council receives a general capital grant from the Scottish Government each year (approx. £6m). Any spend above this level, not funded from other grants, is funded through borrowing. Capital spend funded from borrowing results in loan charges until the borrowing is fully repaid. Exhibit 2 summarises how the capital expenditure in each of the years between 2022/23 and 2030/31 is currently projected to be financed. Exhibit 2 – Financing the Capital Programme 2022/23-2030/31 Service 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Total 22/23- 30/31 Borrowing 34,172 48,948 32,725 16,554 7,541 6,813 6,754 6,660 6,455 166,622 Ring Fenced Capital Grant 8,223 20,218 7,701 5,951 2,908 0 0 0 0 45,001 General Capital Grant 5,982 6,648 6,648 6,648 6,648 6,648 6,648 6,648 6,648 59,166 Matched Funding 3,087 712 30 930 0 0 0 0 0 4,759 Other 42 0 0 0 0 0 0 0 0 42 Total 51,506 76,526 47,104 30,083 17,097 13,461 13,402 13,308 13,103 275,590 3.4 Exhibit 2 shows that the Council’s current capital programme will require £166.6m of prudential borrowing over the period 2022/23 to 2030/31 based on current projections for the cost of specific projects. That represents 60% of the total planned capital programme expenditure. 4. MAIN ISSUES Affordability of the Capital Programme 4.1 The current financial crisis is having a significant impact on both the affordability and delivery of the capital programme. The paragraphs below set out some of the key issues. 4.2 Cost Inflation Rising prices across all sectors of the economy are having an impact on the price of products, materials and contractors. Contractors, sub-contractors and suppliers Page 36
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are factoring in allowances to cover future cost increases, particularly for projects with a longer construction period. The majority of capital projects are likely to be affected by this and it is a reasonable assumption that any capital projects costed in the last 12-18 months, are likely to end up costing materially more than the current estimates in the Council’s capital programme. 4.3 Availability of Products and Materials The impact of various socio-economic factors and worldwide events are causing substantial supply chain issues, leading to significant delays and lack of availability of products and materials required to undertake capital work. This affects availability across all services including roads materials, buildings construction, ICT and fleet. In some cases, a lead time of 18 to 24 months has been quoted in respect of new plant and vehicles. 4.4 Cost of Funding the Capital Programme As demonstrated in Exhibits 1 and 2, the capital programme, approved in March 2022, allocated a total capital budget of £276m over the period 2022/23 to 2030/31. The capital programme is funded by a mix of borrowing and grant funding from the UK and Scottish Governments, and other external sources. Around £6m is currently received on an annual basis through the General Capital Grant from the Scottish Government. Other grant funding normally involves a bidding process and therefore the Council faces growing competition from other local authorities. However, the majority, around 60% of the total capital spend, is funded from borrowing. The affordability of capital spend is therefore impacted by changes in interest rates. 4.5 It is well publicised that interest rates have increased materially in recent months, over and above what were already high projections, and this has had a significant impact on the affordability of the current Capital Programme. Interest rates continue to be volatile and therefore it is difficult to predict the future trend with a degree of certainty, but current PWLB borrowing rates sit at around 4.5% whereas in March 2022, when the new capital programme was agreed, on average, long- term borrowing of up to 10 years could be obtained at an interest rate of around 2.3%. By means of illustration the payback for a capital project costing £10m at 2.3% interest rate per annum repaid over 40 years would have been £14.7m. However PWLB interest rates at the time of writing this paper are approximately 4.5% which increases the payback to £19.2m, an increase of £4.5m, which is a 31% increase on the original payback. 4.6 It is also reasonable to make an assumption that a £10m project could actually now cost in the region of £15m due to the cost inflation issues highlighted in paragraphs 4.1 and 4.2. A £15m project borrowed at a current interest rate of 4.5% per annum repaid over 40 years would result in a total payback of £22.4m So after accounting for cost inflation coupled with interest rate rises, the result is that the cost of the original £10m project will have increased by 52% as demonstrated by Exhibit 3. Page 37
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Exhibit 3 – Illustrative Impact of Rising Interest Rates and Cost Inflation Original Build Cost Total Interest Payable over 40 Years (@2.3%) Total Original Payback Revised Build Cost Total Interest Payable over 40 years (@4.5%) Total Revised Payback Increase in Payback Increa se (%) £10m £4.715m £14.715m £15m £7.403m £22.403m £7.688m 52% Impact of Capital Spend on Future Revenue Budgets 4.7 The repayment of borrowing used to fund capital creates a future revenue budget commitment over the entirety of the anticipated lifespan of the new asset. Additional borrowing to fund more expensive capital projects will increase the Council’s overall debt position and will accrue substantial interest charges. These pressures are not unique to West Dunbartonshire Council and are being faced by all councils with a number of them also reviewing their current capital programmes due to concerns about affordability. 4.8 The Council has a statutory obligation to balance its budgets. The revenue budget is already under significant pressure from rising energy prices, rising fuel prices and staff pay awards. As a result of the higher interest rates, any new capital spend will add further pressure to the loans charges element of that budget. However, it is important that Members also recognise that, along with a substantial increase in the current cost of financing a capital project, once the asset is complete it may bring additional future revenue budget commitments through the need to fund future operating costs, including maintenance. 4.9 Decisions on capital spend will need to focus on obtaining best value for money for the Council, including prioritisation to ensure the continued delivery of essential services, a focus on mitigation of key areas of risk and consideration of available external funding, new income generation opportunities and budget efficiency savings that can be achieved. Approach to Review of the Capital Programme 4.10 The review of the Council’s capital programme focused on: 1. Non-recurring projects which are considered non-essential. 2. Annual recurring projects where the value remains static year on year. 3. Budgets held for spend relating to other organisations. And considered factors such as: • legal and health and safety obligations • impact on service delivery • impact on the value and life of the assets • potential for increases in repair costs if ageing assets are not replaced • the extent to which projects are already well advanced or supported by external funding. 4.11 The capital programme was reviewed, on a line by line basis, by a sub group of the Strategic Asset Management group, chaired by the Chief Officer Resources, Page 38
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with initial proposals and questions posed to all Chief Officers on the projects in the programme allocated to their services. Responses to those questions and feedback on the initial proposals were further considered by the sub group which has informed the recommendations set out in this report. 4.12 For each line in the capital programme there is a recommended action to either: • Remove – cancel the project • Reduce – reduce the allocated budget over the life of the programme • Reprofile – no change to the overall allocated capital budget however a need to reprofile the anticipated spend as it affects the revenue impact of the borrowing • Keep – retain the project with no changes 4.13 For each recommended action a brief rationale has also been provided. Summary of Recommended Actions 4.14 Of the 123 projects currently in the capital programme (note this is 12 less than quoted in Exhibit 1 as Exhibit 1 was the capital programme as at March 2022 whereas the review was conducted on the updated capital programme as at period 7 2022/23 where 12 of the programmes had been removed as completed: • 34 to be removed entirely totalling £12.911m • 14 to have their allocated capital budget reduced totalling £21.704m • 18 that need their capital expenditure reprofiled • 57 that should be kept The net effect of these changes would remove a total of £34.615m from the capital programme over the period 2022/23 to 2030/31. 4.15 The Finance team have reviewed the revenue implications of making the recommended changes summarised in paragraph 4.14. Based on current loan charge rates, if all the recommendations are accepted, there would be a reduction in loan charge payments (funded from revenue) of: • £0.337m in 2023/24 • £0.515m in 2024/25 • £0.577m in 2025/26 In addition there would be an avoidance in in future loans principal repayments (funded through capital receipts) of: • £0.903m in 2023/24 • £1.109m in 2024/25 • £1.348m in 2025/26 Note that further work is required to reprofile the 18 projects where reprofiling has been recommended. This is likely to increase the estimated revenue savings but not by a material amount. Page 39
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4.16 Exhibit 4a summarises the 34 projects that are recommended to be removed and the rationale for their removal. Exhibit 4a – Rationale for Projects Recommended for Removal Service Project Rationale R&R Energy Projects quick wins Costs for projects of this nature should either be aligned with the next three years of projects which Building Services have for Building Upgrades or via Central Repairs budget or the services own budget if a quick win is to reduce utility costs. R&R Upgrade obsolete heating controls (BEMS) Costs for projects of this nature should either be aligned with the next three years of projects which Building Services have for Building Upgrades or via Central Repairs budget or the services own budget if an outcome is a reduction in utility costs. R&R Water Meter Downsize Costs for projects of this nature should either be aligned with the next three years of projects which Building Services have for Building Upgrades or via Central Repairs budget or the services own budget if an outcome is a reduction in utility costs. R&R Zero Carbon Costs for projects of this nature should either be aligned with the next three years of projects and beyond, which Building Services have for Building Upgrades. This will prevent disruption to service users within buildings as currently programmes are not aligned and therefore there is a risk that building upgrades work could be completed and then works to achieve net zero commenced and vice versa. R&R Viresco Studio and Arts Centre Project cancelled and Scottish Government funding withdrawn R&R Lighting upgrades to LED in schools and Corporate buildings This should be funded from building upgrades recurring budget after applying the existing prioritisation process. Currently programmes are ongoing outwith the building upgrades prioritisation process which has been approved by Council. R&R Water Automatic Meter Readers Costs for projects of this nature should either be aligned with the next three years of projects which Building Services have for Building Upgrades or via Central Repairs budget or the services own budget if an outcome is a reduction in utility costs. R&R Replace Obsolete oil fired Boiler at HUB CEC. This site is due for building upgrades work in line with the prioritisation process in 2023/24 and this should be added to the building upgrades project which has already accounted for the cost of this within the budget allocation. Page 40
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R&R Electricity Automatic Meter Readers Costs for projects of this nature should either be aligned with the next three years of projects which Building Services have for Building Upgrades or via Central Repairs budget or the services own budget if an outcome is a reduction in utility costs. CCF Telephone System Upgrade This was taken forward following criticism of the service in 2021/22 and would have enabled calls to be recorded for quality improvement and also introduced call positioning. The team will consult ICT to ascertain if there is any alternative funding other than capital. SDP New Sports Changing Facility Dumbarton West (Old OLSP) Very minor spend to date against this project as yet and project has not progressed for an extended period of time. The spend to date has only been in relation to surveys for feasibility of the site and ground conditions together with planning application. The site has no current bookings and it is not known whether there is a demand for this and the booking previously taken when it was a school has moved to the new school location. There is potential for the site to be sold to developers whhc would generate a capital receipt. SDP Purchase of 3 Welfare Units No spend to date and building services have confirmed that, if and when these are required, they can be hired SDP Holm Park & Yoker Athletic FC Project is complete. SDP New Westbridgend Community Centre This project has been subject to previous council reports and commitments made to progress it however there has been no spend against it as at December 2022 and in the current economic climate it needs to be considered against other priorities and whether it delivers value for money. The Council have engaged with the community group to submit an application for funding of up to £1m from the Regeneration Capital Grant Fund and it is anticipated there is a good possibility they will be successful. This will not be known until around September 2023. SDP Changing Places Toilet Provision This was a Council commitment when agreeing the 2022/23 but there is no spend too date against it although it is at design stage. Since that budget decision two changing place toilets have been installed in non WDC sites (Clydebank Shopping Centre and the Big Disability Building) and further ones could be added in Concorde and Alexandria Community Centre when they are refurbished in 2023/24 and 2024/25 as part of the Building Upgrades programme.. SDP Alexandria Community Centre Sports Hall re-flooring This is not considered a high priority project at the current time and there is no spend to date against it – there may be scope to incorporate these works into Building Upgrades prioritisation works and either commence in 2023/24 or 2024/25. Page 41
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HSCP Replacement of CareFirst Whilst there has been concern that the CareFirst supplier (OLM) will no longer support the current version of Carefirst as they have developed a new cloud based replacement they have confirmed that their senior management team have not made any formal decisions around the general support for CareFirst. They have confirmed that they no longer provide bug fixes or enhancements for CareFirst unless there is a statutory need for them to do so. Given that support is still being provided and given the uncertainty about the future of social care provision due to the potential for a National Care Service it is not advisable to invest material capital sums in a system which may or may not be needed in the short to medium future. R&N Infrastructure - Flooding This recurring budget line is used to fund smaller infrastructure projects as and when they arise. In essence it is a 'general pot'. Going forward these infrastructure projects should be subject to a specific capital bid to ensure they are considered equally against all other capital bids R&N Footways/Cycle Path Upgrades This can be absorbed within the existing recurring roads annual budget. R&N Spaces for People Project has been completed and budget is not required. Was carried forward in error. R&N A813 Road Improvement Phase 2 Chief Officer to consider the impact of removing this phase 2 budget and, if appropriate, bring forward a future capital bid for revised works. R&N A811 Lomond Bridge Project is complete and no budget beyond 2022/23 - remove from capital programme R&N Elevated Platforms (Building Services) No spend to date and building services have confirmed that if and when these are required they can be hired. R&N Protective overcoating to 4 bridges over River Leven Renton Bridge has been completed but other bridge works not yet procured. Remove this now and future bids can be submitted and assessed as required. R&N Mandatory 20mph Residential communities This was a capital bid that has taken a long time to deliver as linked to Scottish Government and transport bill. It can be reduced and phased over a number of years or removed at current time. Recommendation is to remove at current time and consider need to reintroduce it at a later date if and when there is greater clarity from the Scottish Government over what is required R&N Footway Resurfacing (RAMP) There is no spend to date against this just now as it is taking a long time to procure a contractor in the current market. This budget should be removed and the costs absorbed from within the recurring roads budget R&N Water Safety This budget was a political decision taken in early 2022 - the budget has not been spend as at November 2022. R&N Street sign renewal This should be funded from the recurring roads budget Page 42
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R&N Christmas lights No costs assigned for this as of yet and Christmas light provision is subject to review R&N Roads improvements Council commitment when agreeing 2022/23 budget. No spend to date. R&N Pavement improvements Council commitment when agreeing 2022/23 budget. No spend to date. H&E Invest in "Your Community Initiative" This is externally funded but won't extend beyond 2022/23 so can be removed from the capital programme however has no savings impact H&E Integrated Housing Management System This budget was to cover costs of capitalised consultancy however there is now less of a need for consultancy so budget no longer required H&E Dennystoun Forge Site Improvements Budget is the funding included within the Council's Capital Block Grant to support the provision of service to Gypsy Travelling community. Funding in 2022/23 is earmarked for proposed improvements to the Dennystoun Forge site in terms of traffic calming measures and play provision. Future years spend is undetermined and therefore can be removed. 4.17 Exhibit 4b summarises the capital budget implications of removing the 34 projects over the life of the capital programme and the revenue savings over the three year period 2023/24 to 2025/26. Where there is a 0 for a revenue saving it either means the associated revenue saving is beyond 2025/26 or is simply due to it being a small amount which has rounded to 0. Exhibit 4b – Capital and Revenue Implications of Removed Projects Service Project Capital Budget Removed 22/23 – 30/31 (£000) 2023/24 Revenue (£000) 2024/25 Revenue (£000) 2025/26 Revenue (£000) R&R Energy Projects quick wins 31 1 1 1 R&R Upgrade obsolete heating controls (BEMS) 131 5 4 4 R&R Water Meter Downsize 3 0 0 0 R&R Zero Carbon 242 10 8 6 R&R Viresco Studio and Arts Centre 0 0 0 0 R&R Lighting upgrades to LED in schools and Corporate buildings 50 2 2 2 R&R Water Automatic Meter Readers 20 1 1 0 R&R Replace Obsolete oil fired Boiler at HUB CEC. 110 4 4 4 R&R Electricity Automatic Meter Readers 10 0 0 0 Page 43
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CCF Telephone System Upgrade 11 0 0 0 SDP New Sports Changing Facility Dumbarton West (Old OLSP) 340 0 14 13 SDP Purchase of 3 Welfare Units 78 3 3 3 SDP Holm Park & Yoker Athletic FC 86 3 3 3 SDP New Westbridgend Community Centre 2,290 44 89 85 SDP Changing Places Toilet Provision 150 6 5 5 SDP Alexandria Community Centre Sports Hall re- flooring 40 2 1 1 HSCP Replacement of CareFirst 1,400 11 20 27 R&N Infrastructure - Flooding 800 0 4 8 R&N Footways/Cycle Path Upgrades 800 4 8 12 R&N SpACES for People 390 16 15 14 R&N A813 Road Improvement Phase 2 2,325 0 0 0 R&N A811 Lomond Bridge 84 3 3 3 R&N Elevated Platforms (Building Services) 45 2 1 1 R&N Protective overcoating to pa4 bridges over River Leven 279 0 0 11 R&N Mandatory 20mph Residential communities 489 9 19 18 R&N Footway Resurfacing (RAMP) 350 14 13 13 R&N Water Safety 30 1 1 1 R&N Street sign renewal 100 4 4 4 R&N Christmas lights 0 0 0 0 R&N Roads improvements 1,000 40 50 50 R&N Pavement improvements 1,000 40 50 50 H&E Invest in "Your Community Initiative" 0 0 0 0 H&E Integrated Housing Management System 77 1 1 1 H&E Dennystoun Forge Site Improvements 150 0 1 3 TOTAL 12,911 227 304 314 Page 44
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4.18 Exhibit 5a summarises the 14 projects proposed for a reduction, the rationale for the reduction and the proposed reduction. Exhibit 5a – Rationale for Projects Recommended for Reduction Service Project Rationale and Proposed Reduction CCF Heritage Capital Fund Chief Officer has confirmed that £1.7million can be released. This would remove funding for Dalmuir Library/Gallery project, reduce the scope of works to the roof and stonework at Town Hall; reduce the Town Hall renovation project; and reduce the scope of works at Bruce Street Baths. Alexandria Library is complete and the Council is contracted to complete work in the basement of Clydebank Library. Proposal is to reduce the budget by £1.7 million. R&N Allotment Development This budget is used to work towards Scottish Government targets for allotments however the Council has historically struggled to find suitable plots which has resulted in ongoing reprofiling. Proposal is to reduce the budget by 50% at the current time and reassess this when reviewing the capital programme again in advance of agreeing the 2024/25 budget. R&N A813 Road Improvement Phase 1 There has been substantial prior year spend against this project however the £0.625m budgeted for 2025/26 is for a different area of road so it can be cancelled without there being any recharge to revenue. Chief Officer to consider the impact of removing this £0.625m and, if appropriate, bring forward a future capital bid for revised works. EDU Audio Visual Equipment There is a requirement to replace and renew these teaching resources which was delayed due to COVID. Fully removing this budget would remove the Council’s capacity to replace an ageing electronic teaching board provision. Therefore proposal is to half the capital budget allocation between 2023/24 and 2030/31 and ask the service to bring forward a specific phased replacement programme for AV equipment with a consideration of how much can be funded from school budgets (likely to be reduced) and how much from the Council's capital programme. RES Agresso upgrade This is a critical system for the Council. The £25k spend in 2022/23 is mandatory as we require new functionality to continue to provide services however the £30k in 2026/27 is speculative with an assumption we will need further investment. Proposal is to remove the 2026/27 budget and reconsider if it is necessary nearer the time. R&R Regeneration/ Local Economic Development Capital budget is required for existing regeneration projects however levels of future investment in regeneration projects need to be further considered with a robust case by case cost benefit analysis carried out. Proposal is to retain budgets in 2023/24 to 2025/26 but reduce by 50% from 2026/27 onwards. P&T ICT Security & DR There has been underspends in prior years against this recurring budget line which suggests there is some scope to reduce the overall allocation however IT costs are generally increasing so any reduction in this budget line will need to be relatively minor. Furthermore this supports a planned five year refresh for key Page 45
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hardware which the Council already tries to extend to six or seven years wherever possible. Proposal is to reduce annual allocation by 10% SDP Building Upgrades This is a recurring and needs led budget and any reduction in allocated budget will require a review of the planned programme of works. A 10% reduction in 2023/24 will mean works to Parkhall Library, Clydebank East Community Centre, Goldenhill Pavilion, Glenhead Community Centre will not go ahead at the current time but can be reconsidered as part of the longer term programme of works. Any further reduction beyond 10% would impact on planned works to schools and early learning centres. Proposal is to reduce annual allocation by 10%. HSCP Aids & Adaptations for HSCP clients and telecare This is a recurring and demand led budget which historically has spend fluctuating between 79% and 100% of budget which suggests there is scope to reduce the commitment but not by an excessive amount. COVID has resulted in a backlog of social work assessments and this, added to the deterioration in the health and mobility of people affected by COVID restrictions means there is a possibility of an increase in pressure on this budget. Therefore spend against it should be closely monitored to determine if the reduced budget is sufficient over the medium to long term. Proposal is to reduce annual allocation by 15% R&N Infrastructure - Roads Historically spend against this recurring budget has averaged 84% which suggests there is scope to reduce the commitment by around 15%. Recommended reduction of 20% slightly exceeds that which may require a change in strategy to move away from resurfacing and focus on more localised structural patching. This may result in an increase in complaints and insurance claims so this will need to be closely monitored to assess whether a 20% reduction is excessive. Proposal is to reduce annual allocation by 20% P&T ICT Modernisation Historically spend against this recurring budget has averaged 76% which suggests there is scope to reduce the commitment by around 20%. Proposal is to reduce annual allocation by 20% RES Payment Card Industry Data Security Standard (PCIDSS) Removing this and not completing the project would mean the Council are not compliant with payment security standards which gives rise to a risk of a fine and reputational risk if payments not taken securely. However latest estimate is a reduced capital cost so budget reduced to reflect that. Proposal is to reduce by £10k. R&N Public non- adopted paths and roads This recurring budget is mostly used for grounds and upgrades to paths in parks, cemeteries. Reducing the budget by 50% will leave some annual budget for these types of work of a lesser amount but larger projects over a pre-determined threshold should be submitted as a specific capital bid to enable them to be considered by the capital prioritisation process. Proposal is to reduce annual allocated by 50% R&N Vehicle Replacement There is considerable reprofiling against this recurring budget line due to lead times on vehicles. Work is currently underway to determine the funding required to transition to an electric fleet Page 46
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which ultimately will be added to the capital budget and replace the current recurring budgeted amounts. Recommendation to reduce recurring budget at current time will require a reprogramming of current vehicle requirements and that review should consider possible reductions in workforce. Proposal is to reduce by estimated £2m unspent in 2022/23 and reduce the annual allocation from 2023/24 onwards by 20% 4.18 Exhibit 5b summarises the capital budget implications of reducing the 14 projects over the life of the capital programme and the revenue savings over the three year period 2023/24 to 2025/26. Where there is a 0 for a revenue saving it either means the associated revenue saving is beyond 2025/26 or is simply due to it being a small amount which has rounded to 0. Exhibit 5b – Capital and Revenue Implications of Reduced Projects Service Project Capital Budget Removed 22/23 – 30/31 (£000) 2023/24 Revenue (£000) 2024/25 Revenue (£000) 2025/26 Revenue (£000) CCF Heritage Capital Fund 1,700 22 67 64 R&N Allotment Development 178 7 0 0 R&N A813 Road Improvement Phase 1 625 0 0 0 EDU AV Equipment - Education 240 1 2 3 RES Agresso upgrade 30 0 0 0 R&R Regeneration/Local Economic Development 2,500 0 0 0 P&T ICT Security & DR 440 0 3 5 SDP Building Upgrades 2,472 0 12 23 HSCP Aids & Adaptations for HSCP clients and telecare 1,071 0 5 10 R&N Infrastructure - Roads 5,084 0 25 49 P&T ICT Modernisation 1,474 0 9 15 RES Payment Card Industry Data Security Standard (PCIDSS) 10 0 0 0 R&N Public non-adopted paths and roads 1,800 0 9 18 R&N Vehicle Replacement 4,080 80 79 76 TOTAL 21,704 110 211 263 4.17 Appendix 1 details the 18 capital projects that need their capital expenditure reprofiled and Appendix 2 lists the 57 that are recommended to be kept in the capital programme without any amendments. Page 47
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Future additions to the capital programme 4.18 Future bids for additions to the Council’s capital programme will be subject to a robust assessment/risk prioritisation process which will be carried out by the Council’s Strategic Asset Management Group and will include input and a recommendation by the Chief Officer Resources and Chief Officer Supply, Distribution and Property. 4.19 Services submitting a request for a new capital project will be asked to complete a bid form which will include a range of information including financial implications and the project’s link to the Council’s corporate objectives and strategic plan. Consideration will be given to factors such as any legal/statutory requirements, service delivery, and financial benefit. 4.20 Whilst services will be asked to score their bids against these types of categories the scores will be subject to review by the Strategic Asset Management Group to ensure scores are applied consistently across all projects. 4.21 Recommendations in relation to potential new capital projects will normally be submitted to Council as part of the annual budget setting process. Only in exceptional circumstances will a capital project request be submitted to Council for consideration outwith this annual budgeting cycle. 5. PEOPLE IMPLICATIONS 5.1 None as a direct consequence of this report 6. FINANCIAL AND PROCUREMENT IMPLICATIONS 6.1 Sets out the options to reduce the capital budget expenditure and associated revenue impact. 7. RISK ANALYSIS 7.1 Reductions in the capital programme, and in particular some of the recurring service budgets, may have a detrimental impact on service delivery and may create an increase in complaints. 8. EQUALITIES IMPACT ASSESSMENT (EIA) 8.1 None of the proposes amendments to the capital programme are considered to require a formal EIA. 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 Page 48
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governance and support Council and officers to pursue the strategic priorities of the Council’s Strategic Plan. 10.2 The capital 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: 21 December 2022 Person to Contact: Laurence Slavin, Chief Officer - Resources E-mail: laurence.slavin@west-dunbarton.gov.uk Appendices Appendix 1 – Capital projects requiring capital expenditure reprofiled Appendix 2 – Capital projects to be retained with no changes Background Papers Budget Report to Council - 9 March 2022 Financial Update Report to Council – 22 June 2022 Page 49
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Appendix 1 – Capital projects requiring capital expenditure reprofiled Service Project Rationale R&R Installation of Solar PV at Clydebank Leisure Centre This budget should be kept as it is a spend to save project which is anticipated will deliver revenue savings. It does however need reprofiled to ensure loan charge estimates are as accurate as possible R&R Replace existing main hall Air Handling unit at Clydebank Town Hall This has slipped for a couple of years and we need to reprofile the expenditure to ensure loan charge estimates are as accurate as possible R&R Leisure Energy projects This is a budget for capital works in a leisure centre, in particular to replace an air handling unit which is required and the project is very near going for tender. The expenditure needs reprofiled. R&R Regeneration Fund The budget is fully allocated across four projects with only a small contingency amount of £55k retained. However costs need reprofiled to better reflect anticipated timing of spend ensure revenue implications are more accurately calculated R&R Place Based Investment These capital funds will be required for costs relating to Titan Boulevard and the Alexandria masterplan. However costs need reprofiled to better reflect anticipated timing of spend ensure revenue implications are more accurately calculated R&R Clydebank Can on the Canal Majority of this is externally funded (WDC contribution is £30k) - expenditure needs reprofiled into 2023/24 as not all to be spent in 2022/23 however as predominantly externally funded there is no impact on revenue costs R&R Levelling Up Fund Levelling Up is externally grant funded but costing need reprofiled R&N Pothole Rapid Repair Service This is a bid for a JCB pothole patcher which has a long lead in time. No costs allocated yet but likely to exceed £100k. Purchase can be considered as part of wider roads review R&N Flood Risk Management This capital budget is still required to complete the planned works however there has been material reprofiling already and the whole budget needs reprofiled so we can more accurately calculate the estimated revenue impact of this capital spend R&N Gruggies Burn Flood Prevention Council have submitted a bid for £20m of funding from Scottish Government. Design underway and will be complete this financial year which will determine phasing. If project costs more than the funding requested the Council will require to fund overspend. If delivered within the external funding and it is fully received we may not require WDC funding at all. Can be reviewed when there is certainty from Scottish Government. APPENDIX 1 Page 50
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R&N Waste Transfer Station Feasibility has been completed. If paused/stopped the Council won't be ready for landfill ban in 2025 and service provider bids will be much higher. Currently preparing a bid for external funding. May need reprofiling. R&N Electric Vehicle Charging Points Electric Vehicle strategy and expansion plan is underway in city region. There is an expectation that up to £0.300 million of external funding will be made available in 2023/24. Advisable to pause this project until there is greater clarity over that. R&N Cemetery Extension, North Dalnotter This was a five year use extension. Number of lairs are required to meet anticipated number however budget needs to be reprofiled to better match expected timing of expenditure R&N Traffic Signal Upgrades There were a number of signal failures at Kilbowie roundabout due to age of signals and the Council received complaints regarding the issue. This is also a safety concern. There has been no spend against this line as at November 2022 so it may need to be reprofiled R&N Vehicle Replacement Strategy These vehicles are necessary to deliver roads and neighbourhood service however lead in time for the vehicles is between 18 months and two years. Budget needs reprofiled EDU Choices Programme - This budget is largely spent so no benefit in removing this - however 2022/23 needs reprofiled RES Cost of Living The Cost of Living Capital Fund was launched on 31 October 2022 and a Council decision taken to cap it at £0.250m per annum over a four year period. Spend needs to be reprofiled to reflect that decision. RES Cash Receipting system enhancements This is an enabler for the PCIDSS project and should be amalgamated with that line - this expenditure is now expected in 2023/24 Page 51
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Appendix 2 – Capital projects to be retained with no changes Servi ce Project Capital Budget 2022/23 - 2030/31 (£000) Rationale for Keeping R&R Legal Case Management System 33 This budget should be kept as it is a spend to save project which is anticipated will deliver revenue savings. R&R Solicitor Project 40 This is appropriate capitalisation of a solicitor post so should be retained as a capital cost at the current time - however this will be subject to a wider review of capitalised staff costs in 2023/24 R&R Replace failed heating controls 7 This is a small spend with the majority already spent. R&R District Heating Network Expansion 11,220 District Heating Network Expansion is a long term project and the Council is fully committed to it with capital costs required to part fund connections to, for example, Golden Jubilee, West College Scotland, Dumbarton Road flats and Health Centre R&R Exxon City Deal 31,369 Exxon City Deal is predominantly externally funded and there is also Council contribution. If we ceased this now we would need to pay back considerable amounts of incurred costs. R&R Level UP Funding 68 Levelling Up is externally grant funded R&R Re -imagine Antonine Wall 30 This is linked to matched funding from other councils and Historic Environment Scotland R&R Town Centre Fund 142 Projects funded by Scottish Government. CCF Transformation of Infrastructure Libraries and Museums 191 This work is being considered as part of a saving option being developed by the relevant Chief Officer. It is likely this capital budget will be reduced as a consequence of that saving option however no reductions being proposed as part of this review to avoid any double counting. CCF Strathleven Place 1,590 This project is linked to the Glencairn House and depot rationalisation and will free up the current museum store and office space in Poplar Road. The project formed part of the rationale for the Glencairn project. Opportunities exist to attract external funding. APPENDIX 2 Page 52
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SDP Depot Rationalisation 8,417 The options appraisal business case for the depot rationalisation project is currently being developed with a view to bringing it to a future meeting of the IRED Committee in the first half of 2023. Whilst this is still in progress early indications are that the existing budget provision of £8.4m will be materially insufficient meaning that continuance of the project in its current guise is no longer financially viable. An alternative option might be to invest capital monies in the existing assets to ensure they are fit for purpose. With that in mind it is recommended to keep this budget in the capital programme at the current time to ensure we have money set aside for that upgrade work in the event that that is the preferred option. SDP New Sports Changing Facility at Glen Lussett 134 Unit is now in productions, demolition work is complete and awaiting date for installation. Too far progressed to cancel. SDP Children and Families Team (Dumbarton /Vale of Leven) TBC Scoping of this work is ongoing and there is no budget allocated to it yet. Once there is greater clarity over the scope of works and associated cost a decision will be required as to whether funding will be made available for it. HSCP Community Alarm upgrade 924 British Telecom will no longer support analogue telephone lines from 2025 and no longer install them from Summer 2023. The current community alarms are analogue based and require to be replaced for HSCP to provide this service. The current value approved last year will require to be refined when the Scottish Digital Office make their final approvals on providers. Estimates of cost vary across other local authority areas and the financial risk has been raised with the Scottish Government by the HSCP and requests for additional funding have been made. HSCP Replace Elderly Care Homes and Day Care Centres 320 Budget mostly spent HSCP Criminal Justice Adaptations 73 Funded from HSCP revenue RES Valuation Joint Board - Requisition of ICT Equipment 9 This is an approved budget for the DAB VJB and is minor Page 53
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R&N Cycling, Walking and Safer Streets 683 This is fully funded by the Scottish Government so no benefit in ceasing or reducing the project R&N Street lighting and associated electrical infrastructure 813 This recurring budget is used to upgrade street lighting as required as part of the column replacement programme. If the budget was removed the team would submit annual bids for capital funding reflecting programme and locations that require upgrades. This would just create a resource issue to assess multiple capital bids of a relatively minor value. R&N Environmental Improvement Fund 13 Budget is almost fully spent - no benefit in removing this now R&N Kilmaronock Cemetery Extension 13 Budget is almost fully spent - no benefit in removing this now R&N Posties Park Sports Hub 844 This budget is already overspent and there would be no value in cancelling the project now R&N Sports Facilities Upgrades - Argyll Park 6 Budget is almost fully spent - no benefit in removing this now R&N Vale of Leven Cemetery Extension 553 Budget required to provide sufficient burial space for forecast need R&N Playparks 22 Externally funded R&N Auld Street Clydebank - Bond 42 Externally funded R&N Clydebank Charrette, A814 498 Project almost complete R&N Bus, cycling and walking infrastructure improvements & Park and Rides 1,627 Externally funded R&N Purchase of gritters 400 Gritters are ordered and are due early 2023 having been delayed for two years due to external influences. This is a spend to save as currently leasing vehicles. R&N Turnberry Homes - traffic calming/ management 5 Only small amount left in budget and matched funding is expected Page 54
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R&N Electrical Charging Points - Rapid Charge 50 Only small amount left in budget and matched funding is expected R&N River Leven Flood Prevention Scheme 620 This budget is required as the Council contribution to this work. This work is being progressed. R&N Bus rapid development fund 214 Externally funded R&N Replacement of compactors at Dalmoak 160 This is essential equipment to maintain a service which generates income R&N Depot Improvement Works 62 This budget is to address a health & safety issue required to advance the depot project R&N Roads Plant 80 This is a spend to save as the Council currently hire this equipment at the moment which has a revenue implication. We do street lighting repairs inhouse so equipment is required. R&N East End Park Resurfacing 200 The pitch is currently close to the end of life and without investment it will need to be closed. We currently spend around £10k a year on maintenance and this would be removed if the pitch was in good condition - the facility also generates income which would be lost if it was closed. R&N Balloch Mountain Bike Track 210 £10k for design and £200k for Council contribution toward estimated £800k total build with an assumption that further £600k will be funded by external parties. Linked to Nike championships coming to Glasgow. Once deign is completed there will be greater clarity over anticipated cost and we can engage with partners to determine if the build will go ahead. R&N Play Area Upgrade Programme 500 This is to upgrade 82 play areas. Proposal was to supplement the Scottish Government funding with £500k of Council funding to programme the upgrading of all play parks to become accessible. If we don't add to SG it will take longer to upgrade. There is a programme that will come to Council setting out the order for upgrading. Keep budget in programme for now and reconsider once Council paper bas been considered R&N Flood prevention 500 This budget is Council funding to progress various flood prevention works that are required. It should be kept in the programme Page 55
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but amalgamated with other flood prevention budget lines. R&N Large Bins for High Traffic Areas (pilot) 25 This is linked to in development savings proposals relating to waste collection. Larger bins are likely to be required to support those options. R&N Community Sports Fund 66 This budget has been spent - kept in for the purposes of this review but the whole project will be stripped from the capital programme when it is presented to Council as part of the 2023/24 budget pack R&N Knowes Nature reserve 228 Externally funded R&N Additional Pavement Requirements 5 Budget is almost fully spent - no benefit in removing this now EDU Digital Inclusion 41 Project almost complete EDU Schools Estate Improvement Plan - next Phase Faifley 29,355 This is a committed project being progressed with the framework provider (Hub West Scotland) and the specification is subject to review. Current capital cost escalation strongly suggest the whole budget will be required EDU Schools Estate Improvement Plan 4,487 The schools estate improvements are long established commitments which are well communicated to service users including some statutory consultations EDU Free School Meals 10 Required to meet Scottish Government standards and budget largely spent EDU Schools Estate Refurbishment Plan 4 Work will be commencing shortly and only very small budget remaining EDU Early Years Early Learning and Childcare Funding 795 Required to meet standards and funded via Scottish Government EDU Dalmonach CE Centre 26 This is mostly spent and the project is complete - just needs final account closed to see if any remaining that can be removed. RES Direct Project Support 16,910 Keep level as it is as part of this review however revisit this budget in 2023/24 once the capital programme has been reduced and implement a phased plan to reduce this capital commitment over a three year period RES Electronic Insurance System - claim/incident management 7 This project has prior year spend against it which is well in excess of the amount of budget left to completion. Ceasing the project now would require this prior year spend to be charged to revenue with no benefit Page 56
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system RES IFRS 16 Database 5 The Council is required to have this in place by 31/3/23 as per accounting standards. The cost of not having a system/database far exceeds the purchase price due to a manual workaround being labour intensive option with material risk of error. P&T Development of Workforce Management System 337 This is all staffing cost and required for a viable Workforce Mgt System. If the system is not developed, it will create a lot of additional manual work for analysing and maintaining WMS related data which will be disproportionate to the spend here. If this is removed from capital programme it will need to be funded from revenue. P&T Internet of Things Asset Tracking 17 Budget mostly spent P&T 365 Implementation 273 Budget mostly spent and 365 implementation is required. There will be a future capital bid for further phases of the project Page 57
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 21 December 2022 Subject: Financial Update 1. PURPOSE 1.1 To provide an update on the financial challenges facing the Council, the estimated 2023/24 – 2024/25 revenue budget gaps and present the first tranche of saving options for members consideration to help the Council deliver a balanced 2023/24 budget. 1.2 This is the second financial update of 2022/23 and rolls forward previous estimates as well as updating some assumptions. The assumptions will continue to be updated and refined as the financial year progresses. 1.3 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. 2. RECOMMENDATIONS 2.1 Members are asked to: a) Agree that, given the decision at October Council that in 2022/23 and future years, all residential care costs for children under 16, or those in full time education beyond that age, are allocated on a 72% HSCP/28% West Dunbartonshire Council basis that the proportionate share of the 2022/23 budget to support this change is transferred from West Dunbartonshire Council to the HSCP budget. b) Give consideration to whether any of the £4.748m of Scottish Government funding provided as a contribution to the 2022/23 pay award should be passed through to the Health and Social Care Partnership. c) Note that the Council’s estimated 2023/24 revenue budget gap has increased from £14.309m as at June 2022 to £21.142m prior to any measures to balance the budget. d) Approve the activation of the Service Concessionary Financial Flexibility to model the debt associated with service concessionary arrangements over the life of the associated assets rather than the life of the contract. ITEM 10 Page 59
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e) Approve the earmarking of the one off benefit generate by the Service Concessionary Financial Flexibility to: • establish a £15m voluntary redundancy/early retirement reserve • establish a £6m smoothing fund to support a three year service transformation programme • provide £1.75m to increase the Council’s prudential target to 3% of expenditure (net of requisitions) • fund the Council’s projected 2022/23 overspend of £1.5m • provide £4.39m of funding for the impact of the 2022/23 pay award on 2022/23 and 2023/24 • transfer the balance of £0.990m to the Council’s general reserve. f) Approve the £3.193m of saving options requiring political consideration to contribute toward agreeing a balanced 2023/24 budget and assist with future projected budget gaps. g) Note the £0.899m of management adjustments which will contribute to agreeing a balanced 2023/24 budget and assist with future projected budget gaps. h) Approve the rescheduling of the Council’s 2023/24 budget setting meeting from 8 February 2023 to 1 March 2023 i) Approve the use of the one off benefit associated with the Service Concessionary Financial Flexibility as a recovery plan to restore the Council’s reserves to be in line with, or above, the Council’s prudential target. 3. BACKGROUND 3.1 On 9 March 2022, the Council agreed a balanced 2022/23 revenue and capital budget and estimates for 2023/24-2024/25. 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 decisions taken by Council on 9 March to agree a balanced 2022/23 budget increased the cumulative estimated future budget gap in the best case, mid-range and worst case scenarios. A report to Council on 22 June 2022 provided a further update 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 Post 9 March 2022 Budget 22 June 2022 Budget Gap 2023/24 £000 2024/25 £000 2023/24 £000 2024/25 £000 Best Case 11,712 14,521 13,636 18,709 Mid-Range 13,761 18,622 14,309 19,849 Worst Case 16,560 24,223 22,164 34,724 Page 60
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4. MAIN ISSUES 4.1 Since the 22 June 2022 report to Council I have revisited a number of the key budget assumptions. These are summarised in the paragraphs below. 4.2 Scottish Government Finance Settlement There are no changes to my previous assumptions around the level of future Scottish Government funding. In my report in June, I advised that the Resource Spending Review indicated that Local Government should expect to receive a flat cash settlement up to 2026/27. On that basis, in June, I changed my funding assumptions to: • Best Case - Flat Cash • Mid-Range – Flat Cash • Worst Case - 1.0% reduction. With the Retail Price Index (RPI) exceeding 12% (as at November 2022) there may be scope to assume that the local government settlement will be more positive than flat cash however the UK Government’s Autumn Budget (announced on 17 November 2022) generally confirmed that previously scheduled spending will be maintained until 2024/25. However, as part of the Autumn Budget, the Chancellor did identify some areas of budget priority with extra funds being made available to schools in England and for social care. Through the Barnett Consequentials this results in £1.6bn of additional revenue funding for the Scottish Government over the next two years. There is currently no information on how the Scottish Government will use/distribute that additional funding however they are free to spend it on any area of devolved competence, and do not need to replicate the UK Government’s choices. On that basis I feel it would be prudent to retain my assumption of the Council receiving a flat cash settlement. The Scottish Government will set out its tax and spending plans on 15 December 2022 however this date is after this report was finalised. If possible a verbal update on the settlement will be provided on the day of the Council meeting. 4.3 Council Tax Increases The budget gaps referred to in paragraph 3.1 include no assumption of any increase in Council Tax as setting Council Tax is subject to a political decision when agreeing the budget in March 2023. 4.4 Changes to Base Budget There have been four changes to the Council’s base budget since the 22 June 2022 report to Council. These are set out below. 4.5 Base Budget Adjustment 1 - National Insurance Contribution Reversal Page 61
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In 2022/23 the UK Government increased the employer National Insurance Contributions which created a recurring cost pressure of £0.978m (after adjusting for an assumed pay award at that time of 2%). That decision has since been reversed meaning the £0.978m can be removed from the base budget. 4.6 Base Budget Adjustment 2 - Residential Care Costs For residential care costs for children under 16, or those in full time education beyond that age, the Council’s base budget currently reflects the Council decision taken on 9 March 2022 to move from the original 50%/50% allocation to a 77.3% HSCP/ 22.7% Education basis. On 26 October 2022, after considering the outcome of a review, Council agreed that the allocation should change from that 77.3%/22.7% split to a 72% HSCP/28% Education in 2022/23 and on a recurring basis. Moving from the 77.3%/22.7% split to a 72%/28% split requires a base budget adjustment which would add £0.265m to the education expenditure budget. As this is the current Council position this base budget adjustment has been made. At the meeting of the HSCP Board on 15 November 2022 all members of the Board agreed that “that in 2022/23 and future years, all residential care costs for children under 16, or those in full time education beyond that age, are allocated on a 72%/28% basis with the Health and Social Care Partnership responsible for 72% and West Dunbartonshire Council responsible for 28%.” However the Health Representatives on the Board moved an amendment that “The additional budget resource to support this change to be transferred from West Dunbartonshire Council to the HSCP budget.” As there was not an agreement regarding the transfer of the budget at the HSCP board meeting, and any decision of the Council agreeing to transfer the budget would be required to be taken by Council, the matter currently is in dispute. There is a dispute resolution process which ends with a referral to the Scottish Ministers. It is recommended that Members agree that: • Council having agreed that in 2022/23 and future years, all residential care costs for children under 16, or those in full time education beyond that age, are allocated on a 72% HSCP/28% West Dunbartonshire Council basis, the proportionate share of the 2022/23 budget to support this change is transferred from West Dunbartonshire Council to the HSCP budget. A further update on this will be reported to Council at the 2023/24 budget setting meeting which will include any relevant financial implications. 4.7 Base Budget Adjustment 3 - Redress for historical abuse cases Page 62
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The Council had previously been putting an annual amount aside as a provision to pay for the potential future costs of historical abuse cases. £0.450m per annum was built into the base budget in 2023/24 and 2024/25 for this. The local government contribution for these costs nationally is now being top sliced from the revenue support grant meaning there is no longer a need for the Council to make a specific provision for it. 4.8 Base Budget Adjustment 4 - Recurring Savings Exercise The base budget has £0.300m built in as a recurring savings target. Each year the finance team reviews spend against all budget lines to identify areas where there has been a history of recurring underspends (over a three year basis) which suggests the budget can be reduced. Anything identified over and above the £0.300m can be taken as a further recurring saving. This exercise was completed in November 2022 and identified a total of £0.459m meaning an additional £0.159m can be removed from the base budget on a recurring basis. 4.9 Non-Pay Inflation In my June report, due to material increases in inflation, I changed my assumptions relating to non-pay inflation and applied the same level of non- pay inflation that was applied in the budget report on 9 March 2022 with an additional general inflation provision made of £0.250m in the best case scenario, £0.500m in the mid-range and £0.750m in the worst case scenario. As inflation remains high I am not making any change to that general assumption at the current time. I have however increased a specific inflation for the Council’s external audit fee by £14k from £6k to £20k. This is based on information provided by Audit Scotland in relation to expected increases in audit fees in 2023/24. 4.10 It may be that the inflation could rise to a peak and then fall again and this would alter future year estimates however this is very difficult to predict and therefore estimates will be kept under review. 4.11 Bank Interest Rates In my June report I reflected on the advice at that time provided by Link (the Council’s Treasury Advisors) who were forecasting that the Monetary Policy Committee would increase the bank rate at a much faster pace throughout 2022 to try and keep inflation in check. At that time they forecast a 0.25% increase in June (to 1.25%) with further 0.25% increases in each subsequent quarter with the rate peaking at 2% by the end of quarter 1 in 2023. Based on that information I assumed Public Work Loans Board (PWLB) rates of borrowing of 1.4% in 2023/24 and 1.8% in 2024/25 in the best case and mid-range scenario with the worst case scenario being 0.2% higher in each year. On this basis, in June, I created cost pressures of: • Best Case - £0.787m in 2023/24, £1.674m in 2024/25 Page 63
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• Mid-Range - £0.787m in 2023/24, £1.674m in 2024/25 • Worst Case - £1.288m in 2023/24, £2.026m in 2024/25 Since June we have seen increases in the bank interest rate beyond that June forecast and this has required a further calculation of the cost of borrowing on the Council. The impact of the changes in the bank interest rate between June and November has added a further £1.720m to the 2023/24 budget gap, rising cumulatively to £2.660m in 2024/25 and £3.772m in the year beyond that. Link are also forecasting the interest rate will increase again by 31 March 2023 to 4.3%, decreasing to 4% by 31 March 2024. Based on this information I have deemed it prudent to provide for a further £1.014m in 2023/24 with that impact reducing to £0.959m in 2024/25. The material impact on the Council’s revenue budget is due to the sizeable proportion of the Council debt which is short term borrowing which requires to be re-borrowed regularly and is therefore subject to fluctuations in interest rates. I have held initial discussions with Link about the Council’s exposure to fluctuations in interest rates with a view to actively managing a reduction in the proportion of Council debt which is held on a short term basis. 4.12 Increasing Utility Costs In my June report I incorporates further cost pressures in 2023/24 of £1.737m and in 2024/25 of £1.746m (cumulatively) for utility costs with those assumptions based on the estimated 2022/23 costs to the Council and future year increases based on an assumption that utility inflation will revert back to be more in line with CPI. However utility costs have continued to increase at a material rate and I have updated my estimates based on current forecast for the costs in 2023/24 based on 2021/22 annual consumptions. This creates a further inflationary cost pressure of £0.780m in 2023/24 and future years. Other 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. Historically these have been brought forward on an annual basis as ‘burdens’ when the Council sets its budget. However as this report is updating the estimated future budget gaps I have decided that any new cost pressure should be highlighted now rather than later as part of the budget process. 4.14 Exhibit 2 sets out the changes to cost pressures in the mid-range scenario in 2023/24 and beyond since the Council meeting on 22 June 2022 Exhibit 2 – Changes to cost pressures since June 2022 Service Cost Pressure 2023/24 (£000) 2024/25 (£000) Page 64
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Waste Further increase in waste costs due to change in legislation by the Scottish Government affecting the amount of landfill tax required to be paid on waste disposed of in landfill sites. This £0.900m is in addition to the £0.500m that has already been provided for. 900 900 ICT Renewal cost of essential Geographic Information System Software is £16k higher than existing budget. 16 16 Planning In-year shortfall in income from planning applications as a consequence of the economic downturn which is considered a permanent reduction. 255 255 Licensing In-year shortfall in income from pest control works is considered a permanent reduction. 65 65 ICT E-Auction to procure Microsoft 365 licences resulted in the best available price being £0.342m higher than current budget (over 3 years). 114 114 ICT Cloud to Cloud backup solution required to facilitate migration of email users to Microsoft 365. 65 65 General When creating budget assumptions beyond one year, there is a risk that unknown cost pressures will emerge. As such I include a general cost pressure provision of £1.000m per annum in the mid-range. As we are three quarters of the way through the financial year, the general allowance has been reduced by 75% in 2023/24 as some new cost pressures have already been identified for next year. (750) (750) Total 665 665 Pay Award Update 4.15 The budget gap reported on 22 June 2022 incorporated a mid-range assumption built into the base budget of a 2% pay award in 2022/23 (1.5% best case and 2.5% worst case) however the pay award was still to be agreed at that time. The 2022/23 pay award, applicable from 1 April 2022, has now been agreed with the key elements being: • 5% pay increase or £2000 (whichever is larger) for those earning up to £20,500. • 5% pay increase or £1,925 (whichever is larger) for those earning between £20,500 and £39,000. • 5% pay increase for those earning between £39,000 and £60,000. • A maximum increase of £3000 for those earning £60,000 or more. • An additional day of leave (pro-rata for those working part-time). Page 65
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The offer raises the minimum hourly rate in the SJC workforce to £10.85 and ensures that 87% of the workforce nationally will receive no less than £1,925 uplift. 4.16 The cost to the Council of this pay award exceeds the 2% assumption originally built into the budget by £5.640m. Note however this calculation assumes the teacher’s pay award is agreed on the same terms as non- teaching local government employees. The teacher’s pay award is currently subject to negotiations and if the terms agreed create costs above and beyond the terms agreed for non-teaching staff, without further funding being made available by the Scottish Government, this will create a further cost pressure for the Council. agreed at a rate higher than the has not been agreed yet and if it is agreed at a rate above The Scottish Government has provided a total of £260.6m (WDC share £4.748m) of additional funding as a contribution to these additional costs. This breaks down as: • £140m (WDC share £2.551m) of revenue funding • £120.6m (WDC share £2.197m) of capital funding. This additional funding will be baselined into future Scottish Government funding, however, the £120.6m of capital funding will be provided as capital funding again in 2024/25 before becoming baselined revenue funding in 2025/26 and beyond. A range of financial flexibilities have been agreed with the Scottish Government to enable councils to convert the additional capital funds into revenue funds however it is recommended that the Council use the service concessionary one off benefit (refer to paragraph 4.28) to fund the £2.197m in 2023/24 and 2024/25 with the Scottish Government capital funding retained as capital funds to help fund the Council’s capital programme. This will provide a small revenue benefit as it will reduce the amount of borrowing the Council needs to take out to fund capital costs. 4.17 In a letter sent to all local government Directors of Finance on 19 October 2022 the Deputy Director Local Government & Analytical Services Division of the Scottish Government stated, in relation to the additional £4.748m of Scottish Government funding, that “I can confirm the funding provided by the Scottish Government was intended to support all staff directly employed by local government, including those currently delegated to Integrated Joint Boards (IJBs). While individual local authorities have autonomy to allocate funding based on local needs and priorities, the Scottish Government provided funding based on the total local government workforce and we would expect IJBs to receive their proportionate share of this funding in respect of those delegated staff.” Page 66
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Whilst this references an expectation that a proportion of the additional pay award funding is passed on to the HSCP, it is quite clear that it is a local decision to be taken by Council. As this is subject to a political decision by Council there has been no assumptions made in this report about any decision in relation to this funding. Consequently the budget gap figures in this paper have been calculated with 100% of the funding retained by the Council. If the Council decides that a proportion should be passed to the HSCP then the budget gap in 2023/24 and future years will increase by the amount passed on. 4.18 Having reflected on the 2022/23 pay award I have amended my assumption regarding the 2023/24 pay award to a best case 3% increase, mid-range 4% increase and a worst case 5% increase. This adjustment from the original 2% assumption to a 4% assumption increases the 2023/24 budget gap in the mid- range by £3.070m. For future years beyond 2023/24, I have reverted to a 2% increase in all three scenarios. Revised Mid-Range Estimated Budget Gap 4.19 Exhibit 3a sets out the revised cumulative estimated budget gap in the mid- range in 2023/24 and 204/25 and Exhibit 3b summarises the total cumulative budget gaps in all three scenarios. Exhibit 3a illustrates that, prior to any measures to balance the budget, the Council are faced with a budget gap of £21.142m in 2023/24 rising cumulatively to £27.925m in 2024/25. 4.20 Exhibit 3a – Revised Mid-Range Estimated Budget Gaps (Cumulative) Para Ref 2023/24 £000 2024/25 £000 Budget Gap 22 June 2022 3.1 14,309 19,849 Reversal increase in NI contribution 4.5 (978) (978) Base budget adjustment for residential care costs 4.6 265 265 Redress for historical abuse cases 4.7 (450) (450) Recurring savings 4.8 (159) (159) Increase in audit fee 4.9 14 14 Impact of bank interest rate increase June – November 2022 4.11 1,720 2,660 Further impact of projected bank interest rates prior to March 2023 4.11 1,014 959 Increased utility costs 4.12 780 780 Increases to cost pressures 4.14 665 665 Impact of 22/23 pay award on expenditure 4.16 5,640 5,640 Additional SG funding for pay award 4.16 (4,748) (4,748) Adjust 23/24 pay award assumption 4.18 3,070 3,428 Revised Estimated Budget Gap 21,142 27,925 Page 67
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4.21 Exhibit 3b – Estimated Budget Gaps (Cumulative) – Scenario Analysis Budget Gap 2023/24 £000 2024/25 £000 Best Case 18,123 23,572 Mid-Range 21,142 27,925 Worst Case 26,136 35,614 Measures to Balance the Budget 4.22 Service Concessionary Financial Flexibility I reported to Council on 22 June 2022 that the Resource Spending Review agreed to the service concessionary financial flexibility to model debt associated with public private partnership (PPP) assets over the life of the asset rather than the life of the contract. The Council has two PPP contracts. 4.23 The basic premise is that the Council (and all councils with PPP assets) have been repaying the principal amount of a PPP loan over the life of the contract (30 years) rather than the life of the asset. This financial flexibility allows the Council to account for its repayment over the asset life. The Council can determine what that asset life is (within reasonableness) and my recommendation is that the Council repays it over 60 years as this is generally consistent with the asset life allocated to PPP schools as reported in the Council’s audited annual financial statements. 4.24 From a financial perspective this means that, for the years since the start of the contract until the current year, the Council has repaid borrowing associated with these contracts at an accelerated rate in line with contract life as opposed to the life of the asset as is prudent to do so. Therefore there is a one off benefit to the Council which is the difference between borrowing actually repaid to date compared to the rescheduled repayments over the life of the asset. 4.25 Looking beyond 2022/23 at future year payments, there is a recurring revenue impact. From 2023/24 until the end of the PPP contracts there will be a recurring saving as the Council will need to repay less than originally budgeted for. Once the contracts expire (one in 2039/40 and one in 2042/43) the saving changes to a cost pressure as repayments are then required for a longer period of time than originally budgeted for. 4.26 We have worked with our treasury advisors who have reviewed the impact for the Council of changing the statutory accounting treatment. The summary of the financial impact is set out below. 4.27 Recurring Financial Impact There will be a recurring cost saving between 2023/24 and 2041/42 and then from 2042/43 until 2076/77 there will be a recurring cost pressure. As these Page 68
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debt liability repayments are made on an annuity basis (i.e. the same amount is repaid every year but the split of that amount between principal repayment and interest changes as the loan is paid down) the revenue impact changes each year. In 2023/24 the revenue saving is £2.831m with this increasing to a peak of £6.199m in 2037/38. In 2042/43 the annual cost pressure starts at £53k rising to a peak of £7.195m in 2068/69 although it should be noted that inflation will mean that future cost pressure is unlikely to be reflective of a similar sum at the current time. For the next five years the annual savings are: • 2023/24 – 2.831m • 2024/25 – £3.259m • 2025/26 – £3.963m • 2026/27 – £4.328m • 2027/28 – £4.249m 4.28 One Off Financial Benefit The total one off financial benefit to the Council for all repayments made up to and including the 2022/23 financial year is £29.630m. The Council has a number of known or anticipated cost pressures in the current and future years which need to be funded and it would be prudent to allocate this one off benefit to fund these pressures as there will not be capacity to fund them from current revenue budgets. It is recommended that the one off benefit is earmarked for the purposes set out in exhibit 4. Exhibit 4 – Recommended use of service concessionary one off benefit £,000 £,000 One Off Benefit 29,630 Voluntary Redundancy & Early Retirement Reserve For one off costs (300 posts * £40k per post) plus £3m for ongoing costs -15,000 Smoothing Fund for Three Year Service Transformation Programme To provide time to implement approved savings options that have a lead time to implement -6,000 Increase Prudential Target to 3% Due to uncertain financial climate -1,750 Absorb Estimated 2022/23 Overspend Currently estimating £1.5m -1,500 Page 69
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Scottish Government Pay Award Funding Provided as Capital Funds in 2022/23 and 2023/24 (£2.197m *2) Allows additional SG capital funds to be invested in the capital programme rather than converting to revenue. Small revenue saving due to not needing to borrow. Refer to para 4.16. -4,390 Total to earmark -28,640 Remaining Balance into General Reserves 990 4.29 Saving Options Between May and December 2022 officers have been developing a range of saving options to help address the budget gap. These are a combination of options not taken in previous years which have been refreshed and new options. 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 4.30 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 41 FTE in 2023/24 should they all be accepted by Council. They are summarised in Exhibit 5. Exhibit 5 – Saving Options Finalised as of December 2022 4.31 2023/24 2024/25 Category No Saving (£,000) FTE Saving (£,000) FTE Political 24 3,193 36 4,238 36 Mgt Adjustments 26 899 5 1,167 5 Total 50 4,092 41 5,405 41 4.32 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. 4.33 The Chief Executive is authorised to progress voluntary severance and early retirement offers, where appropriate, to support the 2023/24 budget savings exercise. Where appropriate targeted discussions will commence in service areas following the Council decision. 4.34 Exhibit 6 sets out the revised 2023/24 and 2024/25 cumulative budget gap after taking account of the proposed measures to balance the budget. This reduces the 2023/24 budget gap to an estimated £14.928m however this would be on the basis all attached measures to balance the budget are Page 70
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approved and that the key assumptions made when estimating the 2023/24 budget gap are accurate. 4.35 Exhibit 6 Updated Mid-Range Estimated Budget Gaps (Cumulative) after Measures to Balance the Budget Para Ref 2023/24 £000 2024/25 £000 Revised Estimated Budget Gap before Measures to Balance Budget 21,142 27,925 Service Concessionary Recurring Saving 4.27 (2,831) (3,259) Political Saving Options 4.31 (3,193) (4,238) Management Adjustments 4.31 (899) (1,167) Revised Estimated Budget Gap After Measures to Balance Budget 14,219 19,261 4.36 It is clear from Exhibit 6 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 2023/24 budget. Other Issues 4.37 Date of Council Meeting to Set 2023/24 Budget There is a Council meeting scheduled for 8 February 2023 which was intended to be the meeting at which the Council would agree the 2023/24 budget. Due to the volume of work still required to develop options to deliver a balanced budget it is recommended that this meeting be rescheduled to a later date. 4.38 The legislation for serving Council Tax demand notices stipulates that the notice is to be served on, or as soon as practicable, after the day the Council first sets an amount of Council Tax for the relevant year for the category of dwellings and, where it requires the payment of instalments, at least 14 days before the day on which the first instalment is due under it. 4.39 To allow the Council to take the first instalment by 01/04/23 the demand notice will have to reach Council Tax payers by 17/03/23 at the very latest. The Council would require a period of time following setting of Council Tax for the preparatory work to be completed and to send the relevant files to the external printers who print and post the Council Tax notices to residents. Having reviewed applicable timescales it is recommended that the Council meeting to agree the 2023/24 budget s rescheduled for 1 March 2023. Prudential Reserve Recovery Plan 4.40 The Council’s General Fund contingency is set at 2% of expenditure net of requisitions and amounts to £3.123m. At the beginning of the financial year Page 71
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there was £0.380m of unallocated General Fund Balance (over and above contingency). After taking into consideration the forecast outturn position at 31 October 2022 (currently £1.5m overspend), the Council is currently forecast to be £1.120m below the current Prudential target. Per the financial regulations, the Council is required to put in place a recovery action plan to bring reserves back to a level in line with or above the Prudential target. As per paragraph 4.28 the recovery plan is to use some of the one off benefit generated by the Service Concessionary Financial Flexibility to offset the 2022/23 overspend and increased the general fund contingency from 2% to 3%. 4.41 Health and Social Care Partnership The Council, at the budget meeting on 9 March 2022, agreed an HSCP requisition of £81.4m (subsequently increased to £81.8m to reflect the final confirmation by the Scottish Government of the allocation of funding commitment). 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. However this is only an assumption and the HSCP requisition will be a matter for Council to consider as part of the budget process. 4.42 Council Tax As per paragraph 4.3 the estimated budget gap makes no assumptions over future Council Tax increases. This will be a matter for Council to decide however, by means of illustration, a 5% increase would generate approximately £1.850m in revenue. 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 Sets out the estimated revenue budget gaps in 2023/24 and 2024/25. 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 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 Page 72
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assessed. 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: 21 December 2022 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 Background Papers Budget Report to Council - 9 March 2022 Financial Update Report to Council – 22 June 2022 Page 73
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Appendix 1 – Summary of Political Saving Options 2023/24 2024/25 Ref: Chief Officer Saving Option Saving (£,000) FTE Saving (£,000) FTE CCF07 A Graham Cease the Pro-Am Golf, Clydebank fireworks display and Xmas Light Switch On events and support community groups to seek funding to stage these events independently 32 0 32 0 EDU01 L Mason Close Out of School Care Service at Linnvale and St Eunan’s Primary Schools. Parents will be signposted to alternative local privately operated OSC services 25 2.5 38 2.5 EDU02 L Mason Reduce staffing allocation to schools within the constraints of the need to maintain teacher/pupil ratios 654 17.16 981 17.16 EDU05 L Mason Reduce General School Budgets by 20% leaving a total of £800k to be allocated across schools 200 0 200 0 EDU06 L Mason Reduce Curriculum Development Budgets by 50% leaving a total of £100k for Education Services. 100 0 100 0 EDU08 L Mason Reduce the provision of School Travel to be in closer alignment with the national statutory requirements 200 0 300 0 HE06 P Barry Cease the free driving lesson scheme provided to young people 48 0 48 0 RES06 L Slavin Reduce the Council's Capital Programme to reduce revenue expenditure on loan financing 339 0 519 0 RES07 L Slavin Reduce the size of the Council Reconciliation Team 75 2 75 2 RES12 L Slavin Reduce printing to only print material required to meet statutory/legislative requirements 12.5 0.5 12.5 0.5 RES13 L Slavin Process education lets with a direct online application to be supported through either automation or an online booking system 12.5 0.5 12.5 0.5 RES14 L Slavin Remove cheque payments with all external Council payments to be made electronically (predominantly BACS) 2 0 2 0 RES17 L Slavin Remove discretionary element of long term empty properties 52 0 52 0 RES18 L Slavin Remove the 20% discretionary relief applied to all national charities who are operating premises in the West Dunbartonshire area. 0 0 11 0 RES19 L Slavin Increase Council controlled Sales, Fees and Charges by 10% 394 0 410 0 APPENDIX 1 Page 74
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RN02 G Macfarlane Reduce Civic Waste Amenity Site provision through reduced hours or closing one site 140 5 140 5 RN03 G Macfarlane Review and optimise refuse collection routes to promote recycling, reduce CO2 footprint and deliver savings 138 4 189 4 RN05 G Macfarlane Transfer parking enforcement powers from the Police to the Council permitting the Council to deploy parking attendants to issue parking tickets and generate income 100 0 325 0 RN13 G Macfarlane Introduce fee for electric vehicle charging 91 0 129 0 RR02 A Douglas Remove additional environmental health budget 105 2 105 2 RR09 A Douglas Introduce a new charge for Pre application advice 10 0 15 0 RR13 A Douglas Close the Clydebank Registration Office and provide any necessary services from Dumbarton 28 1 28 1 SDP05 A Wilson Rationalise property assets to reduce running costs and create opportunities for lease income through moving staff into buildings with spare capacity 380 1.4 426 1.4 SDP06 A Wilson Review historical leases issued by previous district/regional authorities at below market rent values or no rent 55 0 88 0 TOTALS 3,193 36 4,238 36 Page 75
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Appendix 2 – Summary of Management Adjustments 2023/24 2024/25 Ref: Chief Officer Saving Option Saving (£,000) FTE Saving (£,000) FTE CCF04 A Graham Within Clydebank Town Hall keep the coffee shop closed, maximise the number of bookings in the event space and do not open the hall on Sundays 130 0.8 130 0.8 CCF05 A Graham Generate income through selling advertising space on Council vehicles and assets 44 0 57 0 CCF08 A Graham Implement a new structure in Facilities Management increasing number of FTEs whilst delivering an overall saving 64 0 64 0 CCF10 A Graham Move Community Planning to the Council's Community Engagement team and withdraw from SLA with Argyll and Bute Council 22 0 22 0 CCF11 A Graham Remove some minor admin related budgets in CCF which are no longer required and have no staff impact 40 0 40 0 EDU10 L Mason Restructure the central education team to replace a grade 8 with a grade 5 post 25 0 25 0 EDU14 L Mason Remove vacant Instrumental Technician post and outsource instrument repairs 37 0 37 0 HE03 P Barry Increase rent for Ashton View Supported Accommodation Project 10 0 10 0 HE05 P Barry Reduce Community Budgeting by 10% 6 0 6 0 HE09 P Barry Remove £39k of W4U Budget no longer required due to alternative No One Left Behind funding 39 0 39 0 PT03 V Rogers Reduce the use of colour printing across all council services 12 0 12 0 RES02 L Slavin Increase the Clydebank Property Company Management Fee 30 0 30 0 RES08 L Slavin Close Clydebank Municipal Bank 40 2 40 2 RES15 L Slavin Remove TeamMate as electronic working paper system in internal audit and use secure Council shared 8 0 10 0 APPENDIX 2 Page 76
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drive instead. RN07 G Macfarlane Reduce the roads budget by identifying defects that are not urgent and can be allocated for a planned patching programme 150 0 200 0 RR01 A Douglas Transfer costs of one solicitor from revenue to capital to reflect the work they carry out 0 0 55 0 RR03 A Douglas Provide for income generation from Animal Feed Inspections within the revenue budget 14 0 14 0 RR06 A Douglas Remove small residual trainee budget 8 0 8 0 RR07 A Douglas Revert one currently vacant grade 8 Trading Standards Officer Post to grade 6 Authorised Officer post 13 0 13 0 RR10 A Douglas Increase income from building warrant fees through a review of value of works 5 0 10 0 RR11 A Douglas Remove one enforcement officer post when current post holder leaves the post 26 0.5 26 0.5 RR14 A Douglas Stop paying affiliation fees to external organisations such as Nuclear Free Local Authorities, National Association of Councillors and the Commonwealth Local Government Forum. 3 0 3 0 SDP04 A Wilson Further seek capital receipts for council assets to reduce running costs and generate capital income 0 0 90 0 SDP07 A Wilson Seek new income opportunities for pavilions 41 0 69 0 SDP08 A Wilson Remove two vacant posts from consultancy services 82 2 82 2 SDP09 A Wilson Generate income through Corporate Asset Management acting on a consultancy basis for other councils and Housing Associations. 50 0 75 0 TOTALS 899 5 1,167 5res Page 77
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Appendix 3 – Detailed Political Saving Options Chief Officer: Amanda Graham Saving Ref:CCF07 Saving Title Review funding of events programmes Summary of Savings Proposal The Council currently funds a number of events across the area as set out below. Event Cost (£) Pro-Am Golf Tournament 13,008 Alexandria and Dumbarton Christmas light switch-on events 7,860 Clydebank Fireworks Display 11,500 Dumbarton Fireworks Display 0 Scottish Pipe Band Championships 70,000 Loch Lomond Highland Games 14,000 These costs are based on the 2019 events and in light of the current financial climate it is likely 2023/24 costs will be significantly higher. The Scottish Pipe Band Championships and the Loch Lomond Highland Games attract visitors to the area and provide an economic benefit for communities. The Dumbarton Fireworks Display is funded from Dumbarton Common Good Fund. In light of the current climate, it is proposed to: Proposal Saving (£) 1 Cease the Pro-Am event and provide support to community groups to apply for funding to stage it independently. 13,008 2 Cease Light Switch On events and provide support to community groups to apply for funding to stage them independently. 7,860 3 Cease the Clydebank firework display and provide support to any community groups to apply for funding to stage it independently. 11,500 Total Saving 32,368 Impact and Risk Risk of reputational impact which could be mitigated by promoting support to enable community groups to stage their own events. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 32 0 32 0 32 0 APPENDIX 3 Page 78
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Chief Officer: Laura Mason Saving Ref: EDU01 Saving Title Out of School Care Service Summary of Savings Proposal This option would close Out of School Care Service (OSC) at Linnvale and St Eunan’s Primary Schools (which are the only two OSCs the Council operates) with families signposted to privately operated OSC services. In the last few years attendance at both OSC services has reduced. Both services currently provide school aged child care for approximately 15 children. The full year cost to the Council of proving these two facilities is set out below £ Staff Costs 2.5 FTE 87,056 Income Charges to parents (49,000) Net Cost 38,056 *note this excludes costs of resources, heating and lighting The first year saving (2023/2024) would be a part-year saving based on the 8 month period August – March. Impact and Risk Associated with Proposed Savings The small number of families using these OSCs currently would require to find alternative provision. Alternative privately operated services in the area could benefit from increased numbers of families paying for the services they provide. In particular Clydebank East OSC, Dalmuir CE Centre OSC, Radnor Park OSC. St Eunan’s children are within walking distance of the OSC at Radnor Park and Linnvale children are also within walking distance of Clydebank East. In the last few years Clydebank East OSC benefitted from the closure of Clydebank ELC OSC which parents accepted as a suitable alternative provision for school aged childcare. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 25 2.5 38 2.5 38 2.5 Page 79
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Chief Officer Laura Mason Saving Ref: EDU02 Saving Title Reduce staffing allocation to schools within the constraints of the need to maintain teacher/pupil ratios Summary of Savings Proposal Primary school teaching staffing formulas include additional deprivation allocations as part of their basic staffing entitlement. This is in addition to the basic staffing entitlement of a school. This allocation was included in the formula at a time where there were no other supports to schools in leading and addressing the challenges related to deprivation. In the past 4 years, schools have been allocated Pupil Equity Funding which supports them in implementing interventions which will tackle inequity and reduce the poverty related attainment gap. Schools which receive the highest PEF funding also receive the highest deprivation allocation. PEF funding is allocated based on Free School Meal entitlement which is an accurate representation of need in a school community. This saving option would remove the additional deprivation allocation to all school budgets which equates to 17.16 FTE across the school estate. Impact and Risk Associated with Proposed Savings Reduced additional deprivation allocation will result in schools having a reduced staffing allocation. This could potentially mean less staff to meet learner needs and could potentially impact on the abilities of Head/Deputy and Principal Teachers to fulfil their leadership and management duties as they may have increased class teaching commitments. Small schools and schools with lower deprivation allocations may be impacted harder in terms of the staffing reduction. This would necessitate a review of the impact on each establishment to determine exceptional circumstances. The reduction in 17.16 FTE figure does not equate to 17.16 members of staff but will be made up of a mix of additional hours allocated to staff and part-time staff allocations. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 654 17.16 981 17.16 981 17.16 Page 80
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Chief Officer: Laura Mason Saving Ref: EDU05 Saving Title Reduce General School Budgets Summary of Savings Proposal The Council’s 40 schools utilise approximately £1,000,000 in delegated school budgets to fund learning and teaching resources including paper, pencils, textbooks; health & safety resources; education activity expenditure; repairs and maintenance; fixtures and fittings; printing; and the maintenance of PE equipment. This saving proposal would reduce the existing budget by £200k (20%). Impact and Risk Associated with Proposed Savings There is a distinct link between deprivation and increased levels of support required by young people and families negatively impacted by poverty and further impacted by Covid. This reduction would put further strain on the budget utilised to address the needs of children adversely affected. It would also reduce Head Teachers empowerment at a time when the agenda is to enhance their decision making powers. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 200 0 200 0 200 0 Page 81
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Chief Officer: Laura Mason Saving Ref: EDU06 Saving Title Reduce Curriculum Development Budget Summary of Savings Proposal Currently £200,000 funding is allocated to activities and events which enhance and develop the school curriculum. This option would reduce the budget for curriculum development to £100,000. Impact and Risk Associated with Proposed Savings This would not impact on the delivery of core education functions and there would be limited risk of reputational damage to the Council. It could however reduce the wider curriculum offer which, in an area of deprivation, could further widen the gap in experience between our least and most deprived. It could reduce the number of events which celebrate achievement of children and young people and may limit the Council flexibility to fund a wide range of diverse school projects. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 100 0 100 0 100 0 Page 82
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Chief Officer Laura Mason Saving Ref: EDU08 Saving Title Reduce the provision of School Travel to be in closer alignment with the national statutory requirements Summary of Savings Proposal The Council provides transport to schools for: • primary pupils who reside more than 1 mile away from school • secondary pupils who reside more than 2 miles away from school. This exceeds the statutory requirement to provide transport to all pupils up to the age of 8 who live more than 2 miles from school, and all pupils over the age of 8 who live more than 3 miles from school. This option would reduce the Council’s provision to bring it into closer alignment with the statutory requirement, and provide transport to all primary pupils who live more than 2 miles from school, and all secondary pupils who live more than 3 miles from school, thus saving on contracted costs for school transportation. The ‘Schools (Consultation) (Scotland) Act 2010 would require a statutory consultation to take place, as the proposal would alter arrangements for the provision of transport by the council for pupils attending a denominational school’. Impact and Risk Associated with Proposed Savings Benefits - There are physical and mental health benefits associated with active travel. Children walking, skateboarding, scooting or cycling to school is beneficial for their mental and physical health. If more children are engaged in active travel, there would be a reduction in the amount of traffic on roads, and by association, reducing our carbon impact. Dis-benefits - The benefits of active travel are only realised if children travel to school by active means and there would potentially be a reduction in income for some local transport providers. Complaints - We anticipate this proposal would generate complaints relating to road safety, time, cost, inclement weather and eligibility. Saving Savings are based on the end-points of existing contracts - it would take until 2024/25 to realise the full saving due to existing contractual agreements, and the time/resource required to implement changes. 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 200 0 300 0 300 0 Page 83
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Chief Officer: Peter Barry Saving Ref: HE06 Saving Title Stop Free Driving Lessons Summary of Savings Proposal The Council has an established scheme to support young people to secure a driving licence with this support focussed on young people in low pay and apprenticeships and those with experience in the care system. This is designed to help overcome one of the barriers that prevent people from securing employment or remaining in employment. The scheme supports approximately 50 people each year with approximately 50% achieving a pass. The option would end the scheme generating a saving of £48k per annum. Impact and Risk Associated with Proposed Savings Potential reduction in employment opportunities for those who would take part in the scheme and achieved a pass. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 48 0 48 0 48 0 Page 84
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Chief Officer: Laurence Slavin and Angela Wilson Saving Ref: RES06 Saving Title Review of Capital Programme Summary of Savings Proposal The Council receives a general capital grant from the Scottish Government each year (approx. £6m). Any spend above this level, not funded from other grants, is funded through borrowing. Capital spend funded from borrowing results in loan charges until the borrowing is fully repaid. Therefore, any reduction in the capital programme will result in revenue savings. A full review of the capital programme identified areas where capital expenditure could be reduced thus decreasing the cost of borrowing. This focused on: 1. Non-recurring projects which are considered non-essential. 2. Annual recurring projects where the value remains static. 3. Budgets held for spend relating to other organisations (such as Valuation Joint Board and HSCP) resulting in revenue impact to the Council. A detailed report on the output of this review is included in the December Council meeting as a standalone agenda item. It will generate up to £0.339m in 2023/24 rising to £0.580m depending on whether all of the options are taken Impact and Risk Associated with Proposed Savings Historically the Council has received criticism from external audit over its level of borrowing for capital projects. With interest rates increasing and the increased risk of higher costs on projects due to inflation, the cost of loan charges are likely to increase which will put greater pressure on the revenue budget. There is potential for reputational risk with reductions in capital works relating to, for example, roads maintenance. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 339 0 519 0 580 0 Page 85
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Chief Officer: Laurence Slavin Saving Ref: RES07 Saving Title Reduce Reconciliation Team Summary of Savings Proposal The Council’s Reconciliation team reconcile and review in excess of 100 reconciliations per month with two officers involved in every reconciliation. The reconciliations include: Council Tax; Scottish Water payments; Non Domestic Rates; pension deductions; tax and NI deductions; loans fund and interest payments; housing rents, etc. The team consists of 1x Grade 7 (Team Leader) & 2.4 FTE Grade 5 (Reconciliations Officers) This option would remove the grade 7 post and one grade 5 post. This level of reduction would be dependent on an agreed reduction in the team’s workload which would effectively mean not completing reconciliations considered low risk or low value. This would require a prioritisation review to be carried out. Impact and Risk Associated with Proposed Savings The staff are fully employed at present and due to a previous reduction in the team they do not meet the target of 100% of reconciliations completed by 1 month after the previous month end. This option would require realignment of staff management responsibilities and the identification of staffing resource from elsewhere to complete the more complex reconciliations (if these reconciliations were considered essential) Reducing the current reconciliations completed and reviewed could increase the risk of: • HMRC payments being incorrect or late • income and expenditure within budgetary control reports and financial statements being incorrect • potential fraud • criticism from internal and/or external audit Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 75 2 75 2 75 2 Page 86
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Chief Officer: Laurence Slavin Saving Ref: RES12 Saving Title Central Admin Support Printing Summary of Savings Proposal This proposal would reduce printing carried out by the CAS team to only print material required to meet statutory/legislative requirements. All other material would only be available in electronic format. Whilst not exhaustive this list sets out a list of key areas where the Council would no longer provide hard copies in-house: • Invoices • Cheques (all payments to be electronic) • Council/Committee papers • Correspondence • Leaflets Impact and Risk Associated with Proposed Savings This proposal would generate savings through reduced print room staff costs and reductions in the cost of elements such as paper, electricity, and ink. It would also reduce the Council’s carbon footprint, thus contributing to tackling climate challenge and promoting the Council’s corporate social responsibility. Services may still have a periodic requirement for printed materials but this will be on an exceptional basis and funded from existing service budgets. The saving below is for the reduction in staff costs only. Any saving incurred due to reduced printing would be in addition. Saving (Cumulative) 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 12.5 0.5 12.5 0.5 12.5 0.5 Page 87
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Chief Officer: Laurence Slavin Saving Ref: RES13 Saving Title Education Lets Summary of Savings Proposal Under this proposal, education lets would be facilitated and processed with a direct online application, either using automation or an online booking system. Impact and Risk Associated with Proposed Savings This will enhance the current approach and create a positive experience for users as they will receive notification whether their booking can be approved. Online payment can also be taken as part of the booking process. For sessional lets, invoices could be raised through automation. Saving (Cumulative) 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 12.5 0.5 12.5 0.5 12.5 0.5 Page 88
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Chief Officer: Laurence Slavin Saving Ref: RES14 Saving Title 100% Electronic Payments Summary of Savings Proposal Under this option, the Council would no longer accept payment by cheque and all external Council payments would be made electronically (predominantly BACS). The Council issues around 2,625 cheques per annum with the three highest numbers being for Council Tax refunds (1,255), creditors invoices (745) and rent refunds (250). The table below sets out the cost per annum of this. Cheque cost (assuming a batch of 5000 cheques @ £0.20p/cheque) £525 Bank cost (£0.08p per transaction) £210 2nd Class Postage (£0.36p per cheque) £945 Total cost per annum £1,680 In addition there are admin costs associated with removing/reducing number of ‘cheque’ tracing requests and removing duplicate or incorrect payment name/address errors which can lead to reprinting, incurring further costs. A review of data suggests the majority of the recipients are able to be paid by BACS. Impact and Risk Associated with Proposed Savings Adopting this proposal would mean all citizens entitled to a payment from the Council require a bank account to enable the payment to be made by BACS. In the exceptional circumstance where a recipient cannot obtain a bank account, payment can be made via an alternative payment method such as Pay Point, which is already being used for Scottish Welfare Fund payments. This proposal will necessitate services requiring to collect payment method and verify bank details. Saving (Cumulative) 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 2 0 2 0 2 0 Page 89
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Chief Officer: Laurence Slavin Saving Ref: RES17 Saving Title Remove discretionary element of long term empty properties Summary of Savings Proposal From April 2014, the Council agreed to adopt a new policy intended to reduce the number of empty properties in our area. This policy includes doubling the Council Tax for long term empty homes, however, discretionary elements to the scheme were introduced to provide safeguards for owners who have purchased a property which requires work to be carried out to make it suitable for habitation. Removing this discount – which is up to 50% - would create a saving of £52k per annum. Impact and Risk Associated with Proposed Savings Under this option the Council Tax discount offered to homeowners with second homes would be withdrawn. This may create a risk of reduced purchases of 2nd homes Saving (Cumulative) 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 52 0 52 0 52 0 Page 90
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Chief Officer: Laurence Slavin Saving Ref: RES18 Saving Title Remove NDR for National Charities Summary of Savings Proposal At present the Council provides 20% discretionary rates relief for all charities operating premises in the area. Under this proposal, the Council would no longer offer rates relief to national charities operating premises in the area saving the Council an estimated £11,000. This would allow the Council to focus resources in support of local charities. Impact and Risk Associated with Proposed Savings The Council requires to provide at least 12 months’ notice in writing from the end of the financial year before any Discretionary Relief of Rates can be discontinued so this option would not provide any savings until 2024/25. Saving (Cumulative) 2023/24 2024/25 2025/26 £000 FTE H/Count £000 FTE H/Count £000 FTE H/Count 0 0 0 11 0 0 11 0 0 Page 91
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Chief Officer: Laurence Slavin Saving Ref: RES19 Saving Title Sales, Fees and Charges Summary of Savings Proposal The Council’s financial planning currently assumes a 4% annual increase in sales, fees and charges (SFC) as detailed in the budget pack submitted to Council when members agreed the 2022/23 budget. Inflation is currently exceeding 12%. Under this option, a higher percentage increase would be applied to SFC to keep it more in line with inflation. The 4% assumed increase means £263k is already built into future year budget assumptions. Increasing this by a further 6% to a total of 10% in 2023/24 would generate a further increase of £394k. If increases then reverted to 4% increase in 2024/25 and 2025/26 this would generate further increases of £289k and £300k respectively. A comparison of the current budget assumption (already built in) to the revised option is set out below. 2023/24 (£,000) 2024/25 (£,000) 2025/26 (£,000) Current 4% Assumption (cumulative) 263 535 820 10% in 2023/24 and 4% subsequently (cumulative) 657 945 1,246 Cumulative Difference 394 410 426 Impact and Risk Associated with Proposed Savings A large increase in SFC may result in a decline in consumption which would reduce the income generated. There is also a reputational risk for the Council. Saving (Cumulative) 2023/24 2024/25 2025/26 £000 FTE H/Count £000 FTE H/Count £000 FTE H/Count 394 0 0 410 0 0 426 0 0 Page 92
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Chief Officer: Gail Macfarlane Saving Ref: RN02 Saving Title Reduce operation of civic waste amenity sites Summary of Savings Proposal The Council operates two civic amenity sites at Dalmoak, Renton, and Ferry Road, Old Kilpatrick which are operational 7 days a week for: • 11 hours a day during the summer season (April to September) • 9 hours a day during the winter season (October to March). There are 4 saving options to consider: Details Saving (£,000) 1 Sites open 6 days a week with one mid-week day closure to reflect quieter days of use. It will be a different closure day for each site. 46 2 Opening times amended to 10am giving residents 7 hours of access a day, 7 days a week. 78 3 Both sites will operate 7 hours a day over 6 days of the week with one day closure mid-week. A different closure day for each site. 113 4 Close 1 civic waste site 140 Impact and Risk Associated with Proposed Savings The employee impact will be a change of working hours, a reduction in overtime for 8 employees and a reduction in number of employees for options 2, 3 and 4. The impact to the public is limited as it is proposed to close the amenity site on a midweek day which had reduced number of users. Options 1-3 would impact the public with reduced number of opening hours and a 1 day closure. Option 4 would impact the public by reducing the number of civic waste sites available for use and could increase distance for some users depending where they live in the authority. There is a risk of increased fly tipping with a requirement for an increase in enforcement. There will be a period of communication to ensure that residents are made aware of any changes in advance. Page 93
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Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE Option 1 23 0 46 0 46 0 Option 2 40 2 78 2 78 2 Option 3 63 2 113 2 113 2 Option 4 140 5 140 5 140 5 Page 94
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Chief Officer: Gail MacFarlane Saving Ref: RN03 Saving Title Refuse Route Optimisation and Efficiencies Summary of Savings Proposal This is a two phase approach to delivering efficiencies in the refuse collection route process. Phase 1 will be a comprehensive review of routes and working practices within the Refuse collection teams at Clydebank and Dumbarton. Phase 2 will be a structural and operational review post construction of a new depot and relocation. In total this will deliver annual savings of £189k through reduction of operatives (£140k), vehicles (£25k) and fuel £24k). Consolidation of routes and further efficiency improvements are subject to, and dependant on, depot rationalisation and transfer station development. Impact and Risk Associated with Proposed Savings This option will consolidate and balance our existing waste collection routes and provide opportunities to develop services that will generate income, promote recycling and reduce our CO2 footprint. There may be challenges as routes are established, leading to customer complaints or non- delivery of service initially. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 138 4 189 4 189 4 Page 95
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Chief Officer: Gail Macfarlane Saving Ref: RN05 Saving Title Parking Enforcement Summary of Savings Proposal This option is for the Council to apply for the transfer of parking enforcement powers from the Police to the Council. This would permit the Council to deploy parking attendants to issue parking tickets to vehicles where they are parked on a double yellow line, in a bus bay or outwith time restrictions. The expected income is in relation to the payment of fines initially with proposed parking charging within car parks to follow on development of an approved plan. Impact and Risk Associated with Proposed Savings The Roads Service receives numerous emails in relation to unsafe and inconsiderate car parking within town centres, in the proximity of schools, reducing footway access and within bus stops making it difficult to access public transport. Currently no action can be undertaken as the Police have the powers to enforce but limited resource to apply this power. This proposal would give the Council that enforcement power. Responsible parking improves safety for all road and pavement users, encourages turnover supporting access to town centre facilities and amenities and reduces congestion. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 100 0 325 0 325 0 Page 96
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Chief Officer Gail Macfarlane Saving Ref: RN13 Saving Title Charge for Electric Vehicle Charging Summary of Savings Proposal The Council does not charge users for charging electric vehicles at Council owned charging points. This saving option is to introduce charges to ensure the Council is not subsidising private car use. The charge would be introduced in April 2023. This has already been introduced in some other councils. The estimated annual saving for this option is detailed below. Rising utility prices may affect this saving target however the service will retain the ability to amend the charge to reflect variations in electricity prices. 2023/24 2024/25 Estimated Cost Recovery £140,504 £201,675 Estimated energy cost @ 40p kW/h (£36,851) (£57,750) Estimated maintenance & charges (£13,000) (£15,000) Estimated Annual Saving £90,653 £128,925 Impact and Risk Associated with Proposed Savings There is no material risk to the Council of introducing this charge. It removes the fact that the Council is currently subsidising running costs for private electric vehicle use in a way it does not subsidise the costs of petrol or diesel vehicles. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 91 0 129 0 140 0 Page 97
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Chief Officer: Alan Douglas Saving Ref: RR02 Saving Title Remove additional EHO posts Budget Summary of Savings Proposal There are two main options to this proposal. Option 1 - Remove the two EHO grade 8 posts from the establishment list. Option 2 - Remove the EHO posts from the establishment list and replace with one Environmental Health Assistant (EHA) post and one Graduate EHO post. Both posts are vacant and were advertised twice with no successful candidates. Impact and Risk Associated with Proposed Savings Option 1 These 2 additional EHO posts were created to help meet the Council’s expanded Food Law Intervention requirements brought about the introduction of the Intervention Food Law Code of Practice (Scotland) Act 2019. Option 2 The Graduate EHO post would provide support to the Food and Business Group and complete the remainder of their professional training. The EHA would be able to assist with the expanding Environmental Health remit such as smoking in hospital grounds, Food law and inspections. In addition to the new food law requirements, recent legislation around smoking in hospital grounds, single use plastics and the licensing of short term let premises will place additional statutory demands on an already stretched service. Option 2 would help to meet these requirements. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE Option 1 105 2 105 2 105 2 Option 2 25 1 25 1 25 1 Page 98
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Chief Officer Alan Douglas Saving Ref: RR09 Saving Title Charging for pre application advice Summary of Savings Proposal The Council provides a very comprehensive quality pre application advice service which is free of charge. This involves meetings with the case officer and Senior Officers, written responses, elected member briefing and, Place and Design Panel depending on the category of application. The Planning Act 2019 and Fees for Applications Regulations 2022 allows for the charging of various aspects of the planning and a number of councils now charge for pre application advice for householders, local and major developments. It is estimated that charging a fee would generate additional income of £10,000 - £20,000. Impact and Risk Associated with Proposed Savings This would require the introduction of more formal procedures for pre application discussions and it would be essential that it is adequately resourced to ensure that no reputational or credibility risks for the Council arise. The charging for pre application advice would require the agreement of the Planning Committee. It may also have an impact on performance figures as a number of the smaller applications may be submitted without pre -planning advice and may result in negotiation during the planning application process, which otherwise would have been done at the pre application stage. There also be some opposition from the public and local agents especially for the smaller applications which take advantage of the free service Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 10 0 15 0 20 0 Page 99
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Chief Officer – Regulatory and Regeneration Saving Ref: RR13 Saving Title Close Clydebank Registration Office Summary of Savings Proposal During the Covid -19 pandemic the Registration Service only operated in the Dumbarton Office – Municipal Buildings, College Street, Dumbarton. Unlike other council services, the registration service continued to operate throughout the pandemic which prompted National Records for Scotland (NRS) to introduce new rules which allowed all death registrations to be conducted remotely. Following a review by the NRS, Registration of Births can now take place remotely. This means that both births and deaths could be conducted remotely in the future. Civil marriages can take place anywhere in West Dunbartonshire including the Clydebank Town Hall with paperwork currently being processed in the Dumbarton Office. It is proposed that the Clydebank Registration Office, which is based in the Clydebank Town Centre Office, should close on a permanent basis resulting in the loss of one registration post. Impact and Risk Associated with Proposed Savings Following a review by the National Registers of Scotland, Registration of Births can now take place remotely. This was the last effective requirement for registration of Births and Deaths to take place in person and therefore the impact on the public of closure of the office is likely to be minimal. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 28 1 28 1 28 1 Page 100
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Chief Officer Angela Wilson Saving Ref: SDP05 Saving Title Office/Depot Rationalisation (Kilbowie Road/Elm Road/Bridge Street) Summary of Savings Proposal A review of property related assets has identified the following options. Kilbowie Road Identification of alternative accommodation for HSCP located in Kilbowie Road which will allow the Council to lease out this building and recover the lease costs as additional income. It is estimated this would generate savings in 2023/24 of £45k, rising to £91k in 2024/25 and beyond. This includes £4k of staffing costs for Facilities Management staff. Elm Road Close a number of surplus depot sites on Elm Road early and lease these out. Savings are estimated as £113k per annum through additional lease income and removal of running costs. Bridge Street Early exit of staff from Bridge Street which would generate estimated savings of £222k of which £89k are in relation to a reduction in operational running costs. Impact and Risk Associated with Proposed Savings Kilbowie Road – No impact. HSCP services previously delivered from this site have now fully transferred to the new Clydebank Health Centre Elm Road – No impact. Through use of unoccupied buildings and changes to working practices it has become possible to relocate Building Services staff currently within Elm Road depot office to Overburn Road. Bridge Street - Bridge Street is currently the base for HSCP Justice and Children and Families. Both services also have a presence and deliver services from Aurora House, Clydebank. Discussions have taken place for both services to be relocated to Church Street with contact space taking place at NHS building in Dumbarton and discussion regarding clinical space requirements is ongoing but can be accommodated if required in Church Street. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 380 1.4 426 1.4 426 1.4 Page 101
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Chief Officer Angela Wilson Saving Ref: SDP06 Saving Title Historical lease review Summary of Savings Proposal A review of historical leases issued by previous district/regional authorities (31 properties) at below market rent values or no rent has been carried out to determine the additional income that could be generated if the lease amounts were amended to better reflect current market rates. Based on current leases it is estimated that this would generate additional income of £55k in 2023/24 increasing to £88k in 2024/25 and £132k in 2025/26. Impact and Risk Associated with Proposed Savings There is a risk that some organisations benefiting from the favourable lease rates may decide to end their lease on renegotiation, however, this would make the asset available either to sell or lease to a different tenant. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 55 0 88 0 132 0 Page 102
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Appendix 4 – Detailed Management Adjustments Chief Officer: Amanda Graham Saving Ref: CCF04 Saving Title Clydebank Town Hall Summary of Savings Proposal Clydebank Town Hall (CTH) operates as a multi-use venue incorporating office accommodation, museum, gallery and events space. In March 2022 a new staffing model was introduced within CTH which reduced the core team operating the building during normal operational hours and looked to support events out of hours with a casual team of employees whose substantive post is in other roles. This is supplemented by Facilities Management support for opening/locking the building. In addition the new structure saw the closure of the CTH Coffee Shop which operated at a significant loss. This was agreed by the Cultural Committee at the end of 2020. Whilst this generated savings these were negated by subsequent Cultural Committee decisions in 2021/22 to: • Reverse the closure of the coffee shop • Limit bookings in the event space, • Use the existing events budget to offset cost of weekend opening. The coffee shop is still closed as the manager post has not yet been filled. This proposal will: • Keep the coffee shop closed with a view to engaging with HSCP/and or community groups to take over the operation of the space. • Reverse the decision on limiting bookings in the event space • Reverse the decision relating to Sunday opening. Impact and Risk Associated with Proposed Savings The decision to only accept bookings at CTH up to six months in advance has significantly inhibited income generation at the venue given its most popular use is for weddings which are typically booked between 18 months and two years in advance. As a result there is only one event booked in 2023/24 and booking requests are having to be turned down. There is a risk that even if this option is taken, as a result of the period of closure/limitation the income in 2023/24 does not materialise given the typical booking period for events and the limited time available to attract new bookings for 2023/24. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 130 0.8 130 0.8 130 0.8 APPENDIX 4 Page 103
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Chief Officer: Amanda Graham Saving Ref:CCF05 Saving Title Income Generation through Commercialisation Summary of Savings Proposal There is an opportunity to generate income through utilising the sales and marketing expertise of the Council’s Commercial Sales and Marketing Officer. The first opportunity is to generate income by selling advertising space on the side of the Council’s fleet of refuse trucks. The trucks travel throughout West Dunbartonshire every week day, from 7am until 2pm meaning advertisers can take advantage of visibility on every main road and residential street in the area as the trucks collect refuse from 48,000 households. The proposal is that a pilot scheme is undertaken to measure success. This would involve six refuse trucks with advertising on one side, and initially running them with “Advertise your business here” banners. There would be an initial installation cost of £3,500 and it is estimated up to £12,000 profit would be generated in year one, £25,000 in year two and £40,000 in year three. Further opportunity exists for the Council to install three advertising billboards at prominent sites across the area, with the potential to generate up to £20,000 per annum. Bus stop and roadside advertising could generate a further £12,000 per annum. Savings are summarised below 2023/24 (£,000) 2024/25 (£,000) 2025/26 (£,000) Selling Advertising Space on Refuse Trucks 12 25 40 Billboards 20 20 20 Bus Stop/ Roadside Advertising 12 12 12 Total 44 57 72 Impact and Risk Associated with Proposed Savings There is a risk that the advertising opportunities do not materialise on the scale projected however this has been mitigated by erring on the side of caution in development of the figures and keeping projections low. Where applicable, there is a risk planning consent is not granted. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 44 0 57 0 72 0 Page 104
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Chief Officer Amanda Graham Saving Ref: CCF08 Saving Title Facilities Management (FM) Restructure Summary of Savings Proposal The FM structure required to be reviewed to take account of significant global, national and local events which have impacted on the service and created a need for additional capacity and a rethink of the delivery model. These changes included the launch of the expanded 1140 hours early years provision creating new centres and increasing facilities and catering employees; introduction of free meals for all primary school pupils by 2024 and development of new nutritional requirements for education premises. A new structure has been developed which increases frontline support and delivers service improvements while also generating a £64,000 saving to the Council. The new structure is planned to be implemented by the end of the calendar year and the full saving can therefore be realised from 1 April 2023. The new structure increases the number of employees from 11.3 to 12.7 (0.6 reduction in Facilities Officer and increase in number of Facilities Team Leaders). Impact and Risk Associated with Proposed Savings The revised structure increases frontline support and will enhance the service provided. The restructure has been fully consulted upon with TUs and the Facilities Management team and the feedback was very positive. The consultation took place between July and August this year and has now concluded and the restructure finalised. Subject to successful recruitment, the new structure will be in place by end January, 2023.. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 64 0 64 0 64 0 Page 105
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Chief Officer Amanda Graham/Peter Barry Saving Ref: CCF10 Saving Title Adapt Community Planning Management Model Summary of Savings Proposal Community Planning support for West Dunbartonshire is delivered on our behalf by the Communities Manager at Argyll and Bute Council at a cost of £22,000 per annum. As part of the service WDC receives practical support for its Community Planning Executive Group, Community Planning Management Board and Delivery and Improvement Groups. This was introduced following the departure of the Performance and Strategy Manager and a restructure of that service which deleted the manager position and transferred responsibility for the P&S team and Arts and Heritage team to the Communications Manager. The model has operated successfully, however, it was always intended to keep this under review and to consider any opportunity for another Council service to take on community planning. In other councils, the Communities Service leads on Community Planning and there is an opportunity to integrate CPP Management with the frontline Community Engagement team and provide CPP from existing resources, generating a £22,000 saving. Impact and Risk Associated with Proposed Savings There are significant benefits of having the two areas of CPP and Communities which are closely aligned delivered from a single team which has existing relationships with CP partners, expertise in the field of community development as well as awareness of the national and local landscape and context. The current agreement would run until end of March providing time for Communities staff to shadow at meetings and gain an understanding of what is involved as well as plan for taking on the service from 1 April. Given this, there is unlikely to be any impact on service delivery. There is a risk that A&B opts to end the agreement in advance of 31 March, limiting the time available for a handover. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 22 0 22 0 22 0 Page 106
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Chief Officer Amanda Graham Saving Ref: CCF11 Saving Title Citizen, Culture and Facilities General Efficiencies Summary of Savings Proposal F Following a review of CCF spend in recent years, a number of savings have been identified which will have minimal impact. These include: • Removal of the £25,000 events budget. Although added to the Arts and Heritage budget, this was not sought by or in engagement with the team and in practice was ring-fenced for other services to use. In recent years it was utilised via member’s services to deliver on projects such as the town twinning, commemorative booklet for the Blitz, DVD for Blitz and purchase of books. • Cease contract with Survey Monkey to generate a £7,500 saving per annum. The GIS mapping software used by the planning team incorporates functionality to support surveys (Survey 123). • Delete other ancillary budget lines in Performance and Strategy (transport, admin costs) saving £2,500 • Amend telephone survey contract to move from monthly to bi-monthly resident surveys to ensure satisfaction can continue, saving £2,000 • Reduce events budget line in Communications by £3,000 Total annual saving from above £40,000 Impact and Risk Associated with Proposed Savings There would be little impact on services from the above. The events line has not been used by the arts and heritage service; an alternative to survey monkey exists which can be accessed for no additional cost; the highlighted budget lines in P&S have not been utilised in recent years; the events budget line has historically paid for four SMN events and the employee recognition event can be curtailed to ensure it is predominantly funded by sponsorship. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 40 0 40 0 40 0 Page 107
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Chief Officer Laura Mason Saving Ref: EDU10 Saving Title Reduce education performance budget Summary of Savings Proposal The Council has a small central team who lead the delivery of both national and Council priorities and expectations for education. The team contains three posts, but a restructure would replace a grade 8 post with a grade 5, providing a saving. This service includes: • Statutory monitoring of the quality of education provision in WDC education establishments. • Analysis of data gathered through quality assurance programmes. • Management of service priorities, actions and risks. • Management of service wide policies. • Officers who lead service wide improvements in performance, digital transformation, school transport, staffing and learning estate. Impact and Risk Associated with Proposed Savings There is a limited risk of failing to deliver on statutory duties and functions however it is not considered significant as the team size is not reducing. These areas include: (1) Monitoring of the quality of education provision (2) Management of service priorities, actions and risks (3) Failure to resource change projects to transform the service from analogue practices to digital. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 25 0 25 0 25 0 Page 108
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Chief Officer: Laura Mason Saving Ref: EDU14 Saving Title Instrumental Technician Summary of Savings Proposal West Dunbartonshire is one of a few authorities employing a technician to provide annual maintenance and to repair damaged / broken musical instruments. The authority employs one full time position with the employee resigning from this position this year. It is proposed that this position will not be replaced. Impact and Risk Associated with Proposed Savings Instrument repair will need to be outsourced from external supplier which may offset the saving from non-replacement of the post. This will need to be managed within existing budgets. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 37 0 37 0 37 0 Page 109
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Chief Officer Peter Barry Saving Ref: HE03 Saving Title Increase rental charge for Ashton View Summary of Savings Proposal Increase rental charge for Ashton View Supported Accommodation Project from £350 to £510 per week. Impact and Risk Associated with Proposed Savings The new rent requires to be assessed by a Rent Officer and agreed to be appropriate to avoid any external audit risk. The proposed rent is seen to be appropriate and correlates with service provision but the above requires to be satisfied in order for the new rental charge to be introduced. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 10 0 10 0 10 0 Page 110
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Chief Officer: Peter Barry Saving Ref: HE05 Saving Title Community Budgeting Summary of Savings Proposal Reduce Community budgeting by 10% leaving £54k available Impact and Risk Associated with Proposed Savings This budget reduction would impact on the Council’s Community Empowerment ambitions which have been developed in response to the Community Empowerment (Scotland) Act 2015. The Community budgeting process allows for increased levels of community participation and resources are directed to communities where it is most needed. Community budgeting also contributes to the requirement for the Council to direct 1% of its budgets through a Participatory Budgeting process. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 6 0 6 0 6 0 Page 111
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Chief Officer Peter Barry Saving Ref: HE09 Saving Title WFU - Withdraw Flexible Options Summary of Savings Proposal Working4U has a budget of £39,000 each year which is used to meet the cost of training and development for people seeking employment and using the Working4U employability service. The fund is used, for example, to support people to secure the required accreditation to work in construction; secure health and hygiene certificates for working in the hospitality sector and driving certification (fork lift) to support them to secure employment in construction/warehouse distribution. This option removes that budget Impact and Risk Associated with Proposed Savings This fund was set aside at a time when there were very few resources available to meet the cost of this specialist, reactive training. However, as ‘No One Left Behind’ funds have become available we have started using these Scottish Government grants for this purpose. We have also built provision for this specialist training into our UK Shared Prosperity proposals. As such the provision will continue to be available as long as we receive funding from these alternative sources and this approach to supporting people into employment remains effective. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 39 0 39 0 39 0 Page 112
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Chief Officer: Victoria Rogers Saving Ref: PT03 Saving Title Reduction in colour printing across the Council Summary of Savings Proposal Proposal is to make a saving on one of the two printing budgets (rental and usage budgets) that are centralised to ICT by restricting printing to monochrome only Approx. 16 % of all printing is colour. Cost for mono print/copy 1 A4 BW Print is: £0.0023 and cost for 1 A4 Colour is: £ 0.0230. It is proposed that the savings are generated from ICT budgets and HSCP budgets (where ICT currently do a recharge to HSCP). Impact and Risk Associated with Proposed Savings Risks include: • Accommodating users with distinct needs; • Accommodating public requirements • Accommodating documentation for presentations, portfolios etc. • Note Print Room could remain an option for colour. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 12 0 12 0 12 0 Page 113
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Chief Officer: Laurence Slavin Saving Ref: RES02 Saving Title Clydebank Property Company Summary of Savings Proposal Clydebank Property Company (managing property assets – including office space, workshops and the Titan Crane) makes a profit each year, which, after payment of a dividend to the Council is retained in reserves by the Company. The Council currently charges the Company for staffing costs for hours worked on behalf of the Company. This proposal is to increase the internal charge for services provided by the Council to the company by £30k on the assumption that the Council is subsidising the Company by undercharging for services provided. The revised charge would include non-staffing charges such as accommodation, administration, holiday pay. This would allow sufficient annual profit for the assumed annual dividend to the Council to continue to be paid in full. Impact and Risk Associated with Proposed Savings No material risk or impact – the alternative option would be to bring CPC back in house which would generate slightly higher savings of circa £48k however this would mean CPC would no longer exist and there may be longer term benefit to maintaining CPC for future regeneration purposes. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 30 0 30 0 30 0 Page 114
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Chief Officer: Laurence Slavin Saving Ref: RES08 Saving Title Clydebank Municipal Bank Summary of Savings Proposal The Council underwrite any losses of the Clydebank Municipal Bank (CMB). Over recent years, with decreasing interest rates, the annual loss funded by the Council is approximately £40k per annum (budgeted). Finance officer time is recharged to the CMB at the year end, along with accommodation charges for use of the Clydebank town centre office. Within the past year the Royal Bank of Scotland (RBS), who provide the upper level of banking for the CMB has indicated that significant changes are required to meet their governance arrangements, this is likely to increase the loss of the CMB beyond what is budgeted by the Council. A paper had been taken to the CMB Board of Directors who have agreed to close the bank. The closure process is now underway with the closure date set as 31 March 2023. . Impact and Risk Associated with Proposed Savings No further impact on the Council beyond the decision already taken by the CMB Board of Directors. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 40 2 40 2 40 2 Page 115
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Chief Officer: Laurence Slavin Saving Ref: RES15 Saving Title Remove TeamMate Summary of Savings Proposal The Internal Audit team currently uses TeamMate to store electronic working papers relating to audit reviews and maintain employee timesheets. This attracts an annual maintenance fee of around £10k. The proposal is to not renew the contract. The current contract runs to July 2023 so the saving in 2023/24 would only be a partial year Impact and Risk Associated with Proposed Savings There would be no impact on the audit team as the team can use existing MS Office applications such as MS Word and MS Excel and store documents on Internal Audit shared drive. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 8 0 10 0 10 0 Page 116
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Chief Officer: Gail Macfarlane Saving Ref: RN07 Saving Title Structural Patching Summary of Savings Proposal The proposal is for a 2023/24 reduction of £150k in the roads revenue budget currently spent on patching by identifying defects that are not urgent or emergency and can be allocated for a planned patching programme extending the lifespan of the network. The reduction will increase in the following 2 years. The Roads Asset Management Plan (RAMP) currently funds the annual resurfacing projects and large patching repairs which are determined through a prioritisation process including condition surveys etc. To mitigate the impact of the reduction in pothole and small patching repairs the allocation within the RAMP budget for structural patching will be increased to continue the delivery of defect management. The structural patching programme will be developed following inspection, site visits etc. This is in accordance with the Well Maintained Highways code of practice which looks to maintain the lifespan of the fabric of the road structure through earlier intervention rather than pothole patching until the requirement to resurface. Impact and Risk Associated with Proposed Savings The Service currently have 2 find and fix squads. These operatives will be reallocated to pothole inspection, classification and repair. Urgent and emergency pothole repair will continue to be carried out but, if appropriate, routine defects will be programmed to be repaired as a structural patch extending the lifespan of the carriageway and reducing requirement to revisit for further repairs. This allows repair to be capitalised dependant on size and permanent nature of repair. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 150 0 200 0 250 0 Page 117
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Chief Officer: Alan Douglas Saving Ref: RR01 Saving Title Capitalise Legal Costs Summary of Savings Proposal While there are two solicitors and part of a trainee post paid for by Centralised Capital Contributions, this does not reflect the historical workload of the Contracts and Property Section and the Manager of Legal Services. The time spent on Capital projects (including the sale and acquisition of land for Capital Projects) would justify the costs of a further FTE solicitor being capitalised. The capitalisation of a further solicitor post would meet with both the permissive and proper intention of the Capital Accounting Rules. This proposal is to capitalise one solicitor post to reflect the nature of the actual carried out. As there is currently a half solicitor post / trainee solicitor being part funded by Capital (expires 2024/25), it is intended that this saving should only be taken from 2024/25. Impact and Risk Associated with Proposed Savings No impact Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 0 0 55 0 55 0 Page 118
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Chief Officer: Alan Douglas Saving Ref: RR03 Saving Title Income From Animal Feed Inspections Summary of Savings Proposal The Council’s Trading Standards service has taken on the inspection of Animal Feed on behalf of Food Standards Scotland. The term of the agreement was from 1 April 2021 until 31 March 2024. An assumption has been made that this contract will be extending beyond 31 March 2024. The income for the service on 2022/23 rates is £14,439.00. This income is not currently included in the budget. Impact and Risk Associated with Proposed Savings No risk Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 14 0 14 0 14 0 Page 119
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Chief Officer Alan Douglas Saving Ref: RR06 Saving Title Removal Of Residual Budget for Trainee Summary of Savings Proposal The proposal is to remove a residual budget left over from the reorganisation of the section which had been earmarked for possible Trading Standards Apprentice / Trainee. Impact and Risk Associated with Proposed Savings It would remove the opportunity to offer training in Trading Standards to assist with a local and national shortage of Trading Standards Officers. No immediate proposals to recruit so no risk or impact. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 8 0 8 0 8 0 Page 120
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Chief Officer Alan Douglas Saving Ref: RR07 Saving Title Revert Trading Standards officer post to Authorised Officer Summary of Savings Proposal The proposal is to revert one currently vacant Trading Standards Officer post to an Authorised Officer. Trading Standards formerly operated with a mix of Trading Standards Officers and Authorised Officers but as part of a previous budget driven reorganisation of the section it was proposed that whilst numbers were reduced, all officers should be higher qualified Trading Standards Officer (Grade 8) rather than Authorised Officers (Grade 6). Following a number of failed attempts to recruit it was proposed that a linked grade (beginning on Grade 6 and rising on full qualification to Grade 8) be considered. This proposal would depart from that and reduce the budget to a Grade 6. Impact and Risk Associated with Proposed Savings Having clearance to proceed to recruit a grade 6 Authorised Officer would increase the capacity of the currently understaffed team although it would reduce future flexibility associated with the previous decision to have all officers fully qualified. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 13 0 13 0 13 0 Page 121
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Chief Officer Alan Douglas Saving Ref: RR10 Saving Title Value of works for building warrants Summary of Savings Proposal The fee for a building warrant is determined by the value of works. The Council’s value of works being stated is low compared to the value of works stated in other Council areas. An exercise is underway to compare to value of works for building warrants in other Council areas. It is estimated this would generate an increase of income initially between £5,000 - £10,000 Impact and Risk Associated with Proposed Savings We are advising applicants that any building warrant application which have a low value of works may be subject to a fee increase. This work is ongoing and it is unclear how many applications this is likely to affect in the future. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 5 0 10 0 10 0 Page 122
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Chief Officer Alan Douglas Saving Ref: RR11 Saving Title Remove one enforcement officer post Summary of Savings Proposal The Planning Service has one 0.5 Planning Enforcement Officer that deals with breaches of planning control and monitoring of quarries and landfill sites. Enforcement action is discretionary and unlike the other aspects of planning is non- statutory and action does not need to be taken even if a complaint is received. Recently the Service has introduced an online enforcement complaint service. This has reduced significantly the number of small scale enforcement complaints. However with enforcement there are always a number of more complex enforcement cases which require significant input together with the monitoring of quarry and landfill sites. This proposal would remove the post. The current post holder has intimated their resignation so there would be no requirement to redeploy or consider redundancy. Impact and Risk Associated with Proposed Savings If there was no dedicated Enforcement Officer the enforcement work would require to be undertaken by the Planning Officers. This may result in Planning Officers being diverted from normal planning work which could have an impact on performance and performance indicators as well as dealing with the major planning applications. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 26 0.5 26 0.5 26 0.5 Page 123
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Chief Officer – Regulatory and Regeneration Saving Ref:RR14 Saving Title End affiliations to some external organisations. Summary of Savings Proposal It is proposed that the Council should stop paying affiliation fees to the following organisations: Nuclear Free Local Authorities, National Association of Councillors and the Commonwealth Local Government Forum. Impact and Risk Associated with Proposed Savings Elected members will no longer be able to attend or participate in any meetings or events organised by these organisations or receive any materials which they circulate to elected members. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 3 0 3 0 3 0 Page 124
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Chief Officer Angela Wilson Saving Ref: SDP04 Saving Title Further asset rationalisation Summary of Savings Proposal An initial review of all property related assets has been undertaken with a number of areas identified which would generate capital receipts through further asset rationalisation. They would also realise revenue savings through reductions in asset management and running costs. In total it is estimated we could generate £760k of capital receipts in 2023/24 and £851k in 2024/25. The revenue savings for these will not materially realise until 2024/25 and it is estimated they would be £90k in 2024/25 rising to £189k in 2025/26. Impact and Risk Associated with Proposed Savings No material risk or impact Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 0 0 90 0 189 0 Page 125
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Chief Officer Angela Wilson Saving Ref: SDP07 Saving Title Commercialisation of Assets (Pavilions/Cafés) Summary of Savings Proposal A review of all property related assets has identified new income opportunities for Dalmuir Park Pavilion/Café and the Balloch Park Kiosk by reclassifying them as non- operational assets and seeking tenants for them. It is estimated this could generate savings through additional leased income and a reduction in running costs of £41k in 2023/24, rising to £69k in future years Impact and Risk Associated with Proposed Savings No material risk or impact Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 41 0 69 0 69 0 Page 126
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Chief Officer Angela Wilson Saving Ref: SDP08 Saving Title Consultancy Services: specialist posts Summary of Savings Proposal The Consultancy Services section sits within Corporate Asset Management which delivers a number of property professional services. Recruitment advertising on 3 occasions has failed to attract candidates for Construction, Design and Management (CDM) role Grade 8 and Structural Engineer Grade 8. It is therefore proposed to continue to use external consultancy on a needs basis to fill this gap and delete these posts from the structure. Impact and Risk Associated with Proposed Savings There should be no project impact in terms of using an external consultant as long as an appropriate framework can be identified to ensure a swift appointment can be made when work is required. It should be noted that one of the posts has 30% recharged to HRA capital and this therefore also results in a saving to HRA capital of approximately £15k as well as the revenue savings noted below. Saving 2023/24 2024/25 2025/26 £000 FTE H/Count £000 FTE H/Count £000 FTE H/Count 82 2 2 82 2 2 TBC 2 2 Page 127
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Chief Officer Angela Wilson Saving Ref: SDP09 Saving Title Consultancy Services increased external income Summary of Savings Proposal There are a number of consultancy based disciplines within Corporate Asset Management that could generate income working for other councils and Housing Associations. This could cover areas of work such as Project Management, Architectural, Quantity Surveying, Electrical Engineering and Clerk of Works. Impact and Risk Associated with Proposed Savings This would generate additional income to deliver against savings target. The risks associated with this proposal are ability to generate interest, agree and sustain provision; sustain internal capacity although as the pipeline of projects reduces then this would fill any potential gap; liability insurance on designs - it has been confirmed by the insurance section that no such liability insurance is currently in place and would require to be obtained if this is to be progressed. Saving 2023/24 2024/25 2025/26 £000 FTE £000 FTE £000 FTE 50 0 75 0 100 0 Page 128
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 21 December 2022 ___________________________________________________________________ Subject: General Services Budgetary Control Report to 31 October 2022 (Period 7) 1. Purpose 1.1 This report provides an update on the General Services revenue budget and the approved capital programme to 31 October 2022. 2. Recommendations 2.1 Council is asked to: i) note a current projected annual adverse variance on the revenue account of £1.447m (0.56% of total budget); and ii) note that projected expenditure on the capital account is lower than the 2022/23 budget by £23.294m (34.18% of budget), made up of £22.073m (32.39% of budget) of project re-profiling, and an in-year net underspend of £1.221m (1.79% of budget). 3. Background Revenue 3.1 At the meeting of West Dunbartonshire Council (the Council) on 9 March 2022, Members agreed the revenue estimates for 2022/2023. A total net budget of £251.693m was approved for General Services, before use of balances. 3.2 Since the budget was agreed, additional funding has been provided by the Scottish Government and a further allocation of the Council’s existing general COVID funds has resulted in a revised total net budget of £257.137m. £m Budget as set – Council 9 March 2022 251.693 S. Govt – Easter Provision Fund 0.101 Covid Reserves (Council June 2022) – Cost of Living Crisis 0.600 S.Govt – revenue/ alternative funding for pay award 4.743 257.137 3.3 For non teaching Local Government employees the % pay award has been agreed but not yet paid. Funding from Scottish Government has been confirmed to fund part of the increase from budgeted to agreed payaward. Teachers pay award has not yet been agreed. The funding due to be received has been included in section 3.2 above, with the additional budget this allows being transferred to Council services for period 7 Budgetary Control Report. ITEM 11 Page 129
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Reserves 3.4 The General Fund balance at 31 March 2022, based in the Councils audited 2021/22 annual accounts, can be analysed as follows: Balance (£m) Balance on General Fund as at 31 March 2021 15.028 Change to General Fund balance at end of 2021/22 (0.008) Earmarked Balances (11.181) Contingency allowance at 2% of net expenditure (3.123) Unallocated Balance as at 31 March 2022 0.716 3.5 Due to the current financial challenges facing the Council, recruitment restrictions have been implemented and the filling of vacancies is subject to active review. For variances linked to this action (beyond the budgeted turnover targets), in year savings through not filling vacancies, are now being removed from services and held in a central code. This has resulted in a number of favourable service variances being removed from services and held centrally (currently £1.130m). This has no impact on the overall projected outturn of the Council, simply on how that outturn is reported. 3.6 With vacancy savings being removed from service budgets and transferred to a central budget, other projected overspends identified within services are now more clearly reported. This demonstrates that, if the Council were to only meet the budgeted turnover level of vacancies there would be a far more significant overspend which highlights the extent to which the Council cannot afford to operate with its current full establishment. 3.7 The effects of removing the vacancy savings from service budgets to a central budget as at Period 7 are noted below: Service with Vacancy Transfers at Period 7 Variance in BCR £000 Vacancy Savings Moved to Central Budget £000 Variance if vacancies were not removed £000 Resources 69 78 (9) Regulatory and Regeneration 296 477 (181) People and Technology (57) 211 (268) Housing and Employability 84 55 29 Supply Distribution & Property 227 96 131 Citizens, culture & Facilities (208) 213 (421) Central Budget 1,130 Page 130
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Capital 3.8 At its 9 March 2022 meeting the Council also agreed the updated General Services Capital Plan for 2022/2023 to 2030/31. The three years from 2022/23 to 2024/25 were approved in detail with the remaining years being indicative at that stage. After adjusting for anticipated re-profiling from 2021/22 into 2022/23, the budget agreed for 2022/23 was £54.181m, as noted below. 3.9 Since then, budget adjustments have taken place (through further 2021/22 capital re-profiling and additional external funding), revising the 2022/23 annual budget to £68.157m, as follows: £m Base Budget 2022/23 (before re-profiling) 33.471 Re-profiling from 2021/22 – March 2022 18.035 Increase capital budget from 9 March 2022 Council meeting: Changing Places Toilets 0.050 Roads and Pavements 2.000 Flood Prevention 0.500 Street Sign Renewal 0.100 Children & Families Team TBC Christmas Lighting TBC Large Bins for High Traffic Areas 0.025 Pothole Rapid Repair Service TBC Anticipated budget 2021/22 (Council – March 2022) 54.181 Additional re-profiling from 2021/22 – following year end 7.593 New Funding introduced to Period 6 CFCR (HSCP) 0.010 District Heating Consultancy 0.120 SG – Clyde Walking, Safer Streets 0.566 SG – Nature Restoration Fund 0.126 Place Based Investments 0.676 SPT – Kilbowie Road Bus Route 0.495 SPT – Congestion Reduction Measures 0.330 SPT – Balloch Station Park and Ride 0.050 SPT – Bus Infrastructure Improvements 0.200 Cost of Living Crisis (Council June 2022) 1.000 Acceleration of Schools Estate Improvement Plan 0.240 SG – Play park upgrade 0.079 SG – Free School Meal Expansion 0.495 National Acquisitions 0.011 SMPT Carless 1.985 Revised budget – Period 7 68.157 Page 131
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4. Main Issues Revenue 4.1 The summary report at Appendix 1 highlights a projected annual adverse variance (overspend) of £1.447m (0.56% of the total budget). Appendix 2 provides more detailed service reports by Chief Officer. 4.2 This adverse variance is made up of: £m COVID related variance 0.745 Less available COVID funding (0.745) Remaining COVID related variance 0.000 Non-COVID variance 1.447 Total variance 1.447 4.3 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. 4.4 The pay award for 2022/23 has now been agreed, the current offer and funding and anticipated spend is reported within the appendices – it is anticipated that payaward increased the overspend by approximately £0.900m. There is also the risk that the 2022/23 teacher’s pay award is materially different from the pay offer for the rest of local government. 4.5 Agreed management adjustments (Appendix 4) actioned within 2022/23 are monitored with current indications showing that of the amount being monitored of £0.276m, £0.251m is on target to be fully achieved. 4.6 A breakdown of the 2022/23 earmarked balances are shown within Appendix 5. This shows that, of the £11.181m brought forward into 2022/23, £4.574m has already been spent with a further £5.718m projected to be spent by 31 March 2023. This means that £0.889m is anticipated to be carried forward in 2023/24. General COVID Reserve 4.7 As at 31 March 2022 the Council carried forward £3.445m for future general COVID spend. Some of these available funds have been committed, with £0.336m remaining for future budget pressures. 4.8 On 22 September 2022 UK Government announced that from 6 November 2022 the National Insurance levy (1.25%) which commenced from 1 April 2022 to subsidise Health and Social Care costs will be reversed. The budget agreed by Members at Council on 9 March 2022 allocated this cost to COVID monies. The part year saving from the reversal of this cost has been deducted from the earmarked COVID reserve, freeing this back into the general COVID reserve as noted in the table below: Page 132
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Earmarked £m Free £m Total £m Covid balances as at 31 March 2022 2.164 1.281 3.445 Cost of Living Crisis (Council June 2022) 0.600 (0.600) 0 Funding of general Covid spend (P7 BCR) 0.745 (0.745) 0 NI uplift part year saving (Nov – March) (0.400) 0.400 0 Balance as at 31 October 2022 3.109 0.336 3.445 Reserves 4.9 The Council’s General Fund contingency is set at 2% of net expenditure for 2022/23 and amounts to £3.123m. At the beginning of the financial year there was £0.716m of unallocated General Fund Balance (over and above contingency). After taking into consideration the forecast outturn position at 31 October 2022, the Council is currently forecast to have £0.731m below the current Prudential Target, including the effects of the likely pay award. Per the financial regulations, the Council will require to put in place a recovery action plan to bring reserves back to a level in line with or above the Prudential target. The Chief Officer – Resources will prepare an action plan and present this to full Council on 21 December 2022 as part of a Financial Update paper. Detail Balance at £m Unallocated Balance as at 31 March 2022 Unallocated balance over and above the 2% contingency, which amounts to £3.123m 0.716 Current Forecast Outturn for 2022/23 as at 30 October 2022 (1.447) Balance above/(below) Prudential Target as at 31 March 2023 (0.731) Capital 4.10 The current progress on the capital plan is shown in Appendices 6 to 9. 4.11 The overall programme summary report at Appendix 6 shows that planned 2022/23 expenditure is lower than the 2022/23 budget by £23.294m (34.18% of budget), made up of £22.073m (32.39% of budget) of project re-profiling, and an in-year net underspend of £1.221m (1.79% of budget). 4.12 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. Page 133
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4.13 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. 4.14 From the analysis within the appendices it can be seen there are a number of projects with identified re-profiling to date. Those with re-profiling valued at greater than £0.500m, are listed as follows: Project Name Period 6 Re-profiling (£m) Period 7 Re-profiling (£m) Levelling Up Fund (5.203) (6.700) Vehicle Replacement (2.217) (2.217) West Bridgend CC (1.063) (1.063) Vehicle Replacement Strategy (1.000) (1.000) Depot Rationalisation 0 (0.965) Viresco Studios and Arts Centre (0.750) (0.750) Clydebank on the Canal (0.657) (0.657) 4.15 For comparison purposes, a summary of the monthly re-profiling position is noted below: Period 6 Period 7 Movement £m £m £m Overall capital plan 67.572 68.157 0.585 Overall variance (17.181) (23.294) (6.113) Re-Profiling (16.122) (22.073) (5.951) Net over/ under (1.059) (1.221) (0.162) % Re-Profiling 23.86% 32.39% 8.53% 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: Page 134
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(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 a significant sum of capital receipts achieved in 2022/23 will be used to fund transformational projects and 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; (d) COVID related variances are based upon estimates regarding the likely annual values and are subject to further review. The cost of COVID currently projected is based upon a variety of assumptions including: known available funding; financial flexibilities; ongoing service restrictions and service demand. These assumptions continue to change regularly and therefore it is highly likely that the projected year end budgetary position will change from that reported; (e) The current pay award for teachers from 1 April 2022 has yet to be agreed. Any cost beyond the increase assumed in the budget will be required to be funded. 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. Page 135
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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: 25 November 2022 __________________________________________________________________ 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 2022/23 – Corporate Summary; Appendix 2 - Revenue Budgetary Control 2022/23 – 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; Appendix 9 - Analysis of Capital Resources. Background Papers: Ledger output – period 7; General Services Revenue Estimates 2022/23 General Services Capital Plan Update - Council 9 March 2022. Wards Affected All Wards Page 136
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 REVENUE BUDGETARY CONTROL 2022/23 SUMMARY PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid* Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 Resources 5,565 5,815 5,634 69 1% 0 69 Regulatory and Regeneration 2,738 2,282 3,034 296 11% 0 296 People & Technology 7,114 4,601 7,057 (57) -1% 0 (57) Citizens, Culture and Facilities 17,386 10,348 17,178 (208) -1% 166 (374) Education, Learning and Attainment 110,669 57,281 111,275 606 1% 203 403 Roads and Neighbourhood 15,252 16,845 16,133 881 6% 0 881 5,456 2,927 5,540 84 2% 36 48 Supply, Distribution and Property (967) 712 (740) 227 -23% 45 182 Miscellaneous Services 7,708 3,599 8,137 429 6% 294 135 Loan Charges 9,518 6,133 10,513 995 10% 0 995 Capital Receipts used to fund Loan Charges (2,884) (309) (2,884) 0 0% 0 0 Requisition (VJB) 765 446 765 0 0% 0 0 Requisition (SPT) 1,632 952 1,632 0 0% 0 0 Requisition (CJP) 1,693 988 1,693 0 0% 0 0 Requisition (HSCP) 81,690 47,653 81,690 0 0% 0 0 Non GAE Allocation (7,328) (4,275) (7,328) 0 0% 0 0 Vacancy Freeze 1,130 0 0 (1,130) -100% 0 (1,130) Contingency Fund 0 0 0 0 0% 0 0 Total Expenditure 257,137 155,997 259,329 2,192 0.85% 745 1,447 Council Tax (38,126) (20,311) (38,126) - 0% 0 0 Revenue Support Grant/ NDR (211,715) (149,094) (211,715) - 0% 0 0 Additional alternative funding for pay award (2,195) 0 (2,195) - 0% 0 0 Covid Funding (specific and earmarked from 2021/22) (3,367) (1,964) (3,367) - 0% 0 0 Required use of available unearmarked covid funds 0 0 (745) (745) 0% (745) 0 Capital Receipts used to fund Transformation (700) 0 (700) - 0% 0 0 Use of Reserves (1,034) (603) (1,034) - 0% 0 0 Total Resources (257,137) (171,972) (257,882) (745) 0% (745) 0 Net Expenditure (0) (15,975) 1,447 1,447 0.56% 0 1,447 Department Summary Variance Housing and Employability Page 137
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 RESOURCES SUMMARY PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 110 195 112 2 1% 0 2 1,424 858 1,422 (2) 0% 0 (2) (341) 1,981 (341) 0 0% 0 0 2,168 1,400 2,217 49 2% 0 49 313 154 323 11 3% 0 11 19 (14) 5 (14) -74% 0 (14) (790) (163) (790) 0 0% 0 0 Central Administration Support 2,662 1,404 2,686 24 1% 0 24 5,565 5,815 5,634 69 1% 0 69 Variance Service Summary Service / Subjective Summary Finance Business Centre Audit Revenues & Benefits Total Net Expenditure Finance Cost of Collection of Council Tax Cost of Collection of Rates Rent Rebates & Allowances Page 138
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 REGULATORY AND REGENERATION SUMMARY PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 771 413 793 22 0 0 22 665 402 718 53 0 0 53 113- (116) 148- (35) 0 0 (35) 764 496 737 (27) (0) 0 (27) 393 300 651 258 1 0 258 Economic Development 258 787 283 25 0 0 25 2,738 2,282 3,034 296 0 0 296 Variance Total Net Expenditure Service / Subjective Summary Service Summary Democratic and Registration Service Legal Services Licensing Environmental Health Planning Page 139
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 PEOPLE AND TECHNOLOGY PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 758 427 762 4 1% 0 4 1,293 708 1,296 3 0% 0 3 4,563 3,236 4,499 (64) -1% 0 (64) 500 230 500 0 0% 0 0 7,114 4,601 7,057 (57) -1% 0 (57) Variance Total Net Expenditure Transactional Services Change Support Information Services Human Resources (including risk) Service / Subjective Summary Service Summary Page 140
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 CITIZENS, CULTURE AND FACILITIES PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 315 136 316 1 0% 0 1 1,355 751 1,442 87 6% 79 8 325 123 304 (22) -7% 0 (22) Clydebank Town Hall 373 191 387 14 4% 23 (9) Libraries 1,864 963 1,866 2 0% (27) 29 Arts and Heritage 356 188 358 1 0% 0 1 Catering Services 4,811 2,448 4,519 (291) -6% 0 (291) Building Cleaning 1,868 1,187 1,959 91 5% 91 0 Building Cleaning PPP (270) (235) (258) 12 -4% 0 12 Facilities Assistants 2,262 1,116 2,208 (54) -2% 0 (54) Facilities Management 399 173 351 (48) -12% 0 (48) Leisure Management 3,638 3,232 3,636 (2) 0% 0 (2) Events 89 76 91 2 3% 0 2 17,386 10,348 17,178 (208) -1% 166 (373) Variance Total Net Expenditure Citizen Services Service / Subjective Summary Service Summary Communications & Marketing Performance & Strategy Page 141
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 EDUCATION, LEARNING AND ATTAINMENT PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 Primary Schools 32,230 18,036 31,935 (295) -1% 0 (295) Secondary Schools 31,790 17,992 32,087 297 1% 0 297 Specialist Educational Provision 17,301 8,511 17,844 543 3% 203 340 Psychological Services 585 280 583 (2) 0% 0 (2) Sport Development / Active Schools 627 366 627 0 0% 0 0 Early Education 8,819 (696) 8,837 18 0% 0 18 PPP 15,420 11,014 15,468 48 0% 0 48 Creative Arts 646 311 649 3 0% 0 3 Curriculum for Excellence 191 37 191 0 0% 0 0 Central Admin 855 656 857 2 0% 0 2 Workforce CPD 358 154 348 (10) -3% 0 (10) Performance & Improvement 398 193 396 (2) -1% 0 (2) Education Development 1,450 428 1,453 3 0% 0 3 Raising Attainment - Primary 0 0 0 0 0% 0 0 Raising Attainment - Secondary 0 0 0 0 0% 0 0 Pupil Equity Fund (including LAC PEF) 0 0 0 0 0% 0 0 110,669 57,281 111,275 606 1% 203 403 Variance Service Summary Service / Subjective Summary Total Net Expenditure Page 142
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 ROADS AND NEIGHBOURHOOD PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 Transport, Fleet & Maintenance Services (511) 414 (473) 38 -7% 0 38 Roads Services 3,066 3,006 3,245 179 6% 0 179 Grounds Maintenance & Street Cleaning Client 7,503 4,377 7,503 0 0% 0 0 Outdoor Services 192 94 175 (17) -9% 0 (17) Burial Grounds (193) (297) (200) (7) 4% 0 (7) Crematorium (1,025) (410) (933) 92 -9% 0 92 Waste Services 8,177 4,757 8,563 386 5% 0 386 Depots 0 319 0 0 0% 0 0 Ground Maintenance & Street Cleaning Trading A/c (1,957) 4,585 (1,747) 210 -11% 0 210 15,252 16,845 16,133 881 6% 0 881 Service / Subjective Summary Service Summary Variance Total Net Expenditure Page 143
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 HOUSING AND EMPLOYABILITY PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 Working 4 U 3,442 1,732 3,432 (10) 0% 0 (10) Communities 1,019 565 1,009 (10) -1% 0 (10) Homeless Persons 483 443 594 111 23% 36 75 Private Sector housing 33 0 36 3 9% 0 3 Anti Social Behaviour 479 187 469 (10) -2% 0 (10) 5,456 2,927 5,540 84 2% 36 48 Variance Total Net Expenditure Service / Subjective Summary Service Summary Page 144
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 SUPPLY, DISTRIBUTION AND PROPERTY PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 Housing Maintenance Trading A/c (933) (1,080) (881) 52 -6% 0 52 Housing Asset and Investment 46 18 31 (15) -33% 0 (15) Corporate Assets and Capital Investment Programme (2,264) (49) (2,289) (25) 1% 35 (60) Office Accommodation 1,282 1,059 1,303 22 2% 10 11 456 424 452 (4) -1% 0 (4) (203) (123) (21) 182 -90% 0 182 Private Sector Housing Grants 79 (99) 82 3 4% 0 3 Consultancy Services 571 563 583 12 2% 0 12 (967) 712 (740) 227 -23% 45 181 Variance Total Net Expenditure Service / Subjective Summary Service Summary Corporate Asset Maintenance Procurement Page 145
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2022/23 MISCELLANEOUS PERIOD END DATE 31 October 2022 Total Budget Spend to Date Projected Spend Annual RAG Status Net Variance attributable to covid Underlying Variance excluding covid £000 £000 £000 £000 % £000 £000 5,341 2,330 5,805 464 9% 320 144 620 358 648 28 5% (14) 42 510 298 510 0 0% 0 0 1,237 613 1,174 (63) -5% (12) (51) 7,708 3,599 8,137 429 6% 294 135 Variance Total Net Expenditure Service / Subjective Summary Chief Executive and Chief Officers European Employability Service Summary Sundry Services Members Allowances, etc Page 146
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % Environmental Health 665 718 53 8% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Planning 393 651 258 66% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Information Services 4,563 4,499 (64) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Catering Services 4,811 4,519 (291) -6% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Overspend is anticipated No action required 31 October 2022 Budget Details Variance Analysis Variance The 3 Groups within this service (Food and Business Group, Environmental Pollution Group and Community Health Protection Group) are responsible for all aspects of Environmental Health work. No action can be taken at this time Overspend is anticipated Regulatory and Regeneration The main reason for the adverse variance is a reduction in expected income for pest control in particular. None required at this point. This service area provides general ICT support to the Council and also supports transformational change and modernisation of working practices through technology Underspend is projected. Supplies and Services is favourable due to computer licence costs projected to cost less than budgeted. A favourable variance is also anticipated for Internal income recharges. The main reason for the adverse variance is that income is lower than budgeted due to cancelled or delayed building projects. People & Technology This Service provides Building & Planning services None required at present Citizens, Culture and Facilities Catering Services across WDC A favourable variance is anticipated in relation to the delay to the free school meal expansion. A favourable variance is likely. Page 147
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 October 2022 Budget Details Variance Analysis Variance Building Cleaning 1,868 1,959 91 5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Facilities Assistants 2,262 2,208 (54) -2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Citizen Services 1,355 1,442 87 6% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome The favourable variance is as a result of higher than expected income due to out of hours charges. None required at present Underspend likely This service includes one stop shops and the contact centre Three call handlers were recruited on 18 month fixed-term contracts to resolve the telephone issues in the Housing Repairs Contact Centre the funding for this is taken from the Scottish Government COVID-19 general funding. None required Overspend is projected; the majority of which will be financed by COVID funding. The reason for the adverse variance is related to covid related staff costs and has been allocated against the general covid funding. This service provides cleaning services across all council buildings This service provides Facility Assistants throughout WDC buildings No action is possible at this time. Overspend is projected all of which will be financed by COVID funding. Page 148
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 October 2022 Budget Details Variance Analysis Variance Primary Schools 32,230 31,935 (295) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Secondary Schools 31,790 32,087 297 1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Specialist Educational Provision 17,301 17,844 543 3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome None necessary Adverse variance anticipated Adverse variance anticipated This service area includes all Secondary Schools. This service area covers all ASN Services. The adverse variance within employee costs (£160k) is due to a combination of turnover targets not being achieved , a greater than expected pay award and greater staffing as part of our efforts to minimise external placements. Payments to Other Bodies adverse variance is due to the ongoing high demands on the Residential Placements Budget (£426k) combined with uncertainty regarding the division of residential costs between WDC and HSCP. This is partly offset by lower payments to other external bodies (£77k). The Residential budget was set on the basis of a 20:80 split between Education and HSCP and the additional cases ,which resulted in the overspend in 2021/22, being covered in 2022/23 from WDC and HSCP reserves . However, as per the report to Council in October, invoices have to be split 28:72. This change represents a budget shortfall of £265k. In addition, the number of residential placements is 6% higher (about 2 placements) than the average for 2021/22. Income from other local authorities placing children within WDC schools is expected to be less than budgeted (£43k). The requirement for Residential Placements is demand-led and decisions are taken jointly with HSCP following an assessment of the best option for all concerned. However, the actual usage throughout the year will be reviewed regularly to identify where there is scope to reduce the number of placements. Income from sale of school meals is currently projected to be less than budgeted (£190k) while income from lets is also lower than expected (£106k). Management will continue to review the service and take action where appropriate to minimise the overspend. School meals income depends on higher uptake over the coming months. Education , Learning and Attainment Favourable variance anticipated This service area includes all Primary Schools. The budget was set before the delay to free school meal expansion was confirmed. As primaries 6 & 7 will now not be covered by universal free school meal provision from August 2022 income from school meals will be significantly above the budgeted target income (£203k). This offsets the increase in clothing grants (£10k) and reduction in school lets income (£15k) . There is also a small favourable variance against employee costs as the budget was set slightly higher than expenditure would suggest. Page 149
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 October 2022 Budget Details Variance Analysis Variance Roads Services 3,066 3,245 179 6% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Crematorium (1,025) (933) 92 -9% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Waste Services 8,177 8,563 386 5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Plant hire costs have increased during the year to a level not foreseen when the budget was set . Similarly, electricity and street lighting costs have increased during the year to a level not anticipated when the budget was set due to inflationary levels. Waste Collection and Refuse disposal services This service relates to Roads operations, design, structures, street lighting, road safety and school crossing patrols none possible at present Roads and Neighbourhood Management will continue to monitor all budget heads with a view to minimising the overspend. Employee costs are higher (£258k) as projected savings from waste route optimisation ,which depend on operating from a single depot, are not yet achievable and the impact of the pay award . Expenditure on bin replacements is higher (£80k) , skip hire (£21k) , and waste transfer consultancy costs (£31k) are greater than anticipated when the budgets were set. SEPA licence charges(£27k) are higher than anticipated when the budget was set. These have been partly offset by reduced transport costs, mainly in vehicle hires (£21k) . Management will continue to monitor all budget heads with a view to minimising the overspend An adverse variance is anticipated Gas costs are higher than budgeted (£30k) while income is projected to be less than budgeted (£48k) . Following the pay award overtime will be over budget (£6k). Overspend anticipated This service provides crematorium services within the Council area An adverse variance is anticipated. Page 150
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 October 2022 Budget Details Variance Analysis Variance Ground Maintenance & Street Cleaning Trading A/c (1,957) (1,747) 210 -11% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Homeless Persons 483 594 111 23% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Housing and Employability Property costs are adverse due to increased gas/electricity costs (£17k) and higher anticipated depot costs (£12k). Fuel (£114k) , vehicle maintenance (£22k), tyres (£15k) and plant/seed costs (£35k) have increased to a level not anticipated when the budget was set. Trading operation providing grounds maintenance and street cleaning services An adverse variance is anticipated None possible at this time This service seeks to prevent homelessness occurring across the authority and improves access to support services A year end overspend in anticipated Most of this variance is due to inflationary pressures which are not possible to mitigate for since the relevant budget lines are demand led. The rent charged to DWP for homeless should reflect the cost of providing the service so it would be expected that these increases would result in a review of rent to increase in line wth cost pressures. However due to the recently announced rent freeze this would not be possible until end of March 2023 at the earliest . Several issue are causing this £111K overspend , the main issues are as follows :-The property costs overspend of £158K is mainly due to higher than budgeted increase in gas and electricity cost (£37K) and similarly price of furniture and white goods have significantly increased causing an adverse variance (£107K) . There has also been difficulties in having homeless units turned around and ready when required which has resulted in a £36K spend on bed and breakfast . £107K of the overspend is offset by anticipated additional income based on current occupancy levels . Page 151
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 October 2022 Budget Details Variance Analysis Variance Housing Maintenance Trading A/c (933) (881) 52 -6% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Corporate Asset Maintenance (203) (21) 182 -90% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Sundry Services 5,341 5,805 464 9% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Chief Executive and Chief Officers 1,237 1,174 (63) -5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Favourable outturn expected. An overall adverse variance is anticipated at this time Income and expenditure will continue to be monitored throughout the year. Forecast higher payroll costs and central support costs due to the pay award exceeding budget. Higher overtime costs due to service demands. Higher costs are partly offset by increased income from HRA revenue and capital budgets Miscellaneous This service area budgets for non departmental specific costs such as pensions costs, external grants and elderly welfare payments, external audit fees and insurance costs. The service heading also holds a number of general savings options which have still to be fully allocated. After removing the effects of the general covid budget (£320k) which will be required to be funded from unearmarked covid funds, the main adverse variances are linked with property costs for assets not yet sold and the level of procurement savings achieved to date. Under-recovery against surplus target This budget includes spend relating to the Senior Management Team of the Council This service delivers maintenance and investment services to the council's housing stock. Significant under-recovery against surplus target There are two variances occuring in this service. Employee costs are showing a small favourable variance due to two short-term Chief Officer vacancies. In addition there is a large favourable variance due to income from an unbudgeted staff recharge for the first half of the year which has now ended. None required Lower than budgeted income due to a reduced programme of CAMS work delivered through subcontractor partners. This will be partly offset by reduced subcontractor expenditure. None - Although service will endeavour to reduce the adverse variance where possible through service efficiency Supply, Distribution and Property Review HRA recharges and explore if higher payroll costs can be factored into 22/23 recovery rates. This service manages and undertakes repairs and maintenance to public buildings Page 152
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 YEAR END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 October 2022 Budget Details Variance Analysis Variance Loan Charges 9,518 10,513 995 10% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Vacancy Freeze 1,130 0 (1,130) -100% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Required use of available unearmarked covid funds 0 (745) (745) 0% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome The adverse variance is linked with forecast on the cost of short term borrowing with increased interest rates. Management will continue to monitor and maximise actions taken to reduce any adverse variance, where possible. Other This budget covers the servicing of the Council's external borrowing An adverse variance is anticipated This budget represents the removal of budgeted vacancies from service departments. The favourable variance reflects the non filling of vacancies due to the implementation of recruitment restrictions. None required A favourable variance is anticipated Any variance will be offset by covid adverse variances within services, or carried forward for future years allocation against covid costs. This represents the funding from Scottish Government specifically for covid and additional spend identified outwith specific Council Services The variance is funding service related covid costs Income and expenditure will continue to be monitored throughout the year. Page 153
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WEST DUNBARTONSHIRE COUNCIL MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2022/23 Appendix 4 Efficiency Detail Chief Officer Area Budgeted Amount £ Projection of Total Saved £ Projection of Total Not Saved £ Comment Reduce costs of franking machines Amanda Graham 8,000 - 8,000 Action is underway and an element of this saving is likely to be achieved by the year end, however not guaranteed at this stage. Review Rental Structure for Ashton View Supported Accommodation Project Peter Barry 21,000 21,000 - Reduce costs of storing supply of rock salt Gail McFarlane 44,000 44,000 - Reduce costs with use of pooled vehicles Gail McFarlane 60,000 60,000 - Reduce Teacher costs Laura Mason 35,467 35,467 - Increased income - Housing Maintenance Trading Account (HMTA) / Corporate Asset Maintenance (CAMS) Angela Wilson 108,000 91,000 17,000 The CAMS income is lower than expected due to reduced programme of work. This will continue to be monitored and update if the situation changes 276,467 251,467 25,000 Page 154
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 5 MONITORING OF EARMARKED BALANCES 2022/23 Carried forward into 2022/23 Spend YTD Projection of spend remainder of year Expected to be carried forward into 2023/24 £ £ £ £ Covid General 1 Covid General - Earmarked as at 31 March 2022 2,164,000 1,262,333 901,667 - 2 Cost of Living Crisis 600,000 350,000 250,000 - 3 Required to fund covid costs within BCR P7 744,628 434,366 310,262 - 4 NI Uplift (Part year saving - Nov - March) - 400,000 - 400,000- - Total Covid General - Earmarked 3,108,628 2,046,700 1,061,928 - Covid Specific 5 WWF - Homelessness Funding – from SG Winter Support Fund 55,000 55,000 - - 6 Level 4 Welfare/Social Support - increase - from Leaders February 2021 48,000 - 48,000 - 7 Addressing Financial Hardship (was Scottish Welfare Fund, 2nd tranche Top Up) - Financial Insecurity 25,000 25,000 - - 8 Parental Employee Support Fund Boost 114,000 - 114,000 - 9 Business Grants Discretionary Payments 125,000 - 125,000 - 10 Tenant Grant Fund ( Winter Hardship homeless) 54,000 54,000 - - 11 Free School Meals for Easter 2022 90,500 90,500 - - 12 Education Recovery (Additional Teachers) 789,000 460,250 328,750 - 13 Education recovery (ELT) 1,361,000 466,667 333,333 561,000 14 LIPP (Low Income pandemic payment) 80,870 - 80,870 - 15 Scottish Child Payment Bridging Payment per finance circular spring 22 421,867 - 421,867 - 16 Local self isolation assistance 182,000 - 182,000 - General spending 17 Change fund 1,257,000 132,410 1,124,590 - 18 New apprenticeship fund (bgt 5/3/18) 54,489 54,489 - - 19 CS - Jobs Growth 68,762 - 68,762 - 20 Promotion of voL hospital - committee decision 1,500 1,500 - - 21 Be the best unspent monies (Good Idea Fund) 4,743 - - 4,743 22 Budget earmarked - SNP growth items 185,000 107,917 77,083 - 23 Barclay Review Implementation: SG Funding for standardised NDR billing & publication relief recipients 13,112 - 1,975 11,137 24 Library Improvement Fund 12,500 - - 12,500 25 Heritage Centre Display Cases Alexandria Library 7,150 - 7,150 - 26 Building Cleaning 3,500 - 3,500 - 27 Creation of a Scottish Women’s Art Fund 10,000 - 10,000 - 28 W4B Business Awards 13,090 - - 13,090 29 Zero carbon (agreed growth one off 4/3/20 in sundry 20/21 & not used so carried forward) 38,000 - - 38,000 30 Regulatory - Econ Development- Business Awards 1,950 - - 1,950 31 Clydebank Blitz Commemoration 3,074 - 3,074 - 32 Community focused activity programme in Alexandria Library 6,000 - 6,000 - 33 Previous provision for equal pay - now earmarked for ongoing HR/Legal commitments 209,957 98 98 209,761 34 ERO Expenditure - required to be c/f within WDC balance sheet, re VJB 38,750 - 38,750 - 35 Budget commitments 2022/23 (general reserves) 1,034,000 603,167 430,833 - 36 SWF underspend in 21/22 129,217 - 129,217 - 37 DWP/SG monies for various projects 46,174 - 46,174 - 38 Covid (original business grants) 53,903 - 53,903 - 39 Removal of music charges 32,000 - 32,000 - 40 OD & Change Training Budget 70,465 - 70,465 - 41 Automation Team (VKY) 36,362 - - 36,362 42 RRTP underspnd 21/22 67,302 67,302 - - 43 Community empowerment steering group ongoing consultancy work 23,000 23,000 - - 44 Community Grants 60,000 - 60,000 - 45 Parental Employabilty Support Families- Boost (PESF Boost)(B0117) 80,634 5,790 74,844 - 46 Parental Employability Support Fund (PESF)(B0119) 60,650 60,650 - - 47 Underspend WDCVS grants 21/22 44,145 - 44,145 - 48 No one Left Behind 22,206 22,206 - - 49 Young Persons Guarantee 1,018,242 282,171 736,071 - 50 Additional Grafitti work 15,000 15,000 - - 51 Events Income & spend-Comms & Marketing 4,085 - 4,085 - TOTAL EARMARKED BALANCES 11,180,828 4,573,816 5,718,469 888,543 Page 155
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 6 GENERAL SERVICES CAPITAL PROGRAMME OVERALL PROGRAMME SUMMARY PERIOD END DATE PERIOD 7 Spend to Date Spend to Date £000 £000 Red 32 27.4% 35,815 37.5% 32 27.4% 1,994 29.2% Amber 0 0.0% 0 0.0% 0 0.0% 0 0.0% Green 85 72.6% 59,619 62.5% 85 72.6% 4,831 70.8% 117 100% 95,434 100% 117 100% 6,825 100% Budget Spend to Date Forecast Spend Forecast Variance Budget Spend to Date Forecast Spend Actual Variance Re-profiling Over/ (Under) £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 107,817 35,815 107,769 (47) 23,900 1,994 6,125 (17,775) (17,696) (79) 0 0 0 0 0 0 0 0 0 0 166,654 59,619 165,138 (1,516) 44,257 4,831 38,739 (5,519) (4,377) (1,142) 274,471 95,434 272,908 (1,563) 68,157 6,825 44,863 (23,294) (22,073) (1,221) (274,471) (95,434) (272,908) 1,563 (68,157) (6,825) (44,863) 23,294 0 0 0 0 0 0 0 0 Projects are on target both in relation to overall budget and the forecast stages in the project life cycle and no issues are anticipated at this time 31 October 2022 Project Status Analysis Project Life Status Analysis Current Year Project Status Analysis Number of Projects at RAG Status % Projects at RAG Status % Project Spend at RAG Status Number of Projects at RAG Status % Projects at RAG Status % Project Spend at RAG Status Red Projects are forecast to be overspent and/or experience material delay to completion Amber Projects are either at risk of being overspent and/or delay in completion (although this is unquantifiable at present) or the project has any issues that require to be reported at this time Green TOTAL EXPENDITURE Project Status Analysis Project Life Financials Current Year Financials Red Projects are either at risk of being overspent and/or delay in completion (although this is unquantifiable at present) or the project has any issues that require to be reported at this time Green Projects are on target both in relation to overall budget and the forecast stages in the project life cycle and no issues are anticipated at this time TOTAL EXPENDITURE TOTAL RESOURCES NET EXPENDITURE Projects are forecast to be overspent and/or significant delay to completion Amber Page 156
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 1 Project Life Financials 9 0 0% 9 0 0% Current Year Financials 3 0 0% 0 (3) -100% Project Description Project Manager David Thomson Chief Officer David Thomson Project Lifecycle 31-Mar-23 31-Mar-23 2 Project Life Financials 0 3 0% 3 3 0% Current Year Financials 0 3 0% 3 3 0% Project Description Project Manager David Thomson Chief Officer David Thomson Project Lifecycle 31-Mar-23 31-Mar-23 3 Project Life Financials 33 0 0% 33 0 0% Current Year Financials 33 0 0% 0 (33) -100% Project Description Project Manager Alan Douglas Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 Legal Case Management System Anticipated Outcome Planned End Date Main Issues / Reason for Variance Replacement of laptops, monitors and other ICT equipment. No further spend anticipated. Requisition of ICT Equipment. Project to be completed in 2023/24. 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment Requisition ICT Equipment. Planned End Date Forecast End Date Main Issues / Reason for Variance This budget remains unspent and is likely to be carried forward into FY 2023/2024. Mitigating Action Valuation Joint Board - ICT Refresh FY 22/23 Replacement of laptops, monitors and other ICT equipment. Planned End Date Forecast End Date Mitigating Action None available at this time. Anticipated Outcome Replacement of laptops and ICT equipment None available at this time. Anticipated Outcome Legal Case Management System Forecast End Date Main Issues / Reason for Variance Budget has been rephased from 2021/22. The project could not proceed as originally planned as Officers are required to access the office and hardware the system will run on and COVID-19 restrictions have prevented this. The project will have to go back out to tender following the upgrade to Microsoft 365. The project will not be completed in this financial year. Mitigating Action Legal to discuss impact of Microsoft 365 with ICT. Page 157
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment4 Project Life Financials 61 3 5% 61 (0) 0% Current Year Financials 55 0 0% 5 (50) -91% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 5 Project Life Financials 342 237 69% 347 5 1% Current Year Financials 110 0 0% 20 (90) -82% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 6 Project Life Financials 290 63 22% 290 0 0% Current Year Financials 216 0 0% 50 (166) -77% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 Main Issues / Reason for Variance Specification delayed due to other priority works. Expect full spend in 2023-2024. Replace obsolete boilers (plant greater than 30 years old). Replace obsolete boilers (plant greater than 30 years old). Planned End Date Leisure Energy projects - air handling units, upgrade lighting, circulating pumps, and draught proofing Forecast End Date Main Issues / Reason for Variance All works to be completed next financial year 2023/24. Measures to be installed at both Meadow Centre & Vale of Leven Swimming Pool; new pool hall Air Handling Units, upgrade lighting, circulating pumps Vale of Leven Swimming Pool, internal and external lighting and draught proofing. None available at this time. Anticipated Outcome Retention for St Mary's Primary School and design fees this year. Insufficient budget available to carry out Hub works. Anticipated Outcome Main Issues / Reason for Variance Existing controls have been found to be obsolete and not compatible with a new AHU controls. Additional timelines and work involved. Design team established and project specification and tender being compiled. Mitigating Action All works to be complete in one tender package. Planned End Date Forecast End Date Forecast End Date Mitigating Action Opportunities to mitigate are limited at this stage. Anticipated Outcome Complete in 2023/24. Installation of Solar PV at Clydebank Leisure Centre Installation of Solar PV at Clydebank Leisure Centre. Planned End Date Mitigating Action Chimney inspection being carried out. Project team established. Consultant appointed. All design works planned and tender documentation to be completed by March 2023 with works being carried out in 2023-2024. Expect only design fees and survey fees and retention for St Marys to be paid this year. Page 158
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment7 Project Life Financials 80 20 25% 80 0 0% Current Year Financials 61 2 3% 30 (31) -51% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 8 Project Life Financials 344 86 25% 344 0 0% Current Year Financials 258 0 0% 15 (243) -94% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 9 Project Life Financials 160 0 0% 160 0 0% Current Year Financials 152 0 0% 80 (72) -47% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 Spend to Save projects. Planned End Date Forecast End Date Zero Carbon Fund Zero Carbon Fund. Main Issues / Reason for Variance Further orders have been raised and await invoices. Total expenditure this financial year estimated to be £0.030m with the rest of the funding to be carried forward into next financial year. Mitigating Action None available at this time Anticipated Outcome Anticipate some spend this year and the remainder to be rephased into 2023/24. Energy Projects quick wins Planned End Date Forecast End Date Main Issues / Reason for Variance Initial survey works have commenced at HUB CEC and Consultant appointed. It has been agreed that Clydebank High will be the next BAM operated school that we will install solar PV. Await proposals and costings. Works will cross into next financial year. Mitigating Action None available at this time Upgrade obsolete heating controls (BEMS) across Council estate Upgrade obsolete heating controls (BEMS) across Council estate. Planned End Date Forecast End Date Main Issues / Reason for Variance Tender documentation currently being prepared. Work scheduled between October 2022 and March 2023 but suspect it will carry forward into the new financial year due to necessary disruption to heating in the buildings. Mitigating Action None available at this time. Anticipated Outcome Delivery of project within budget. Anticipated Outcome Project delivered within budget. Page 159
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment10 Project Life Financials 2,188 146 7% 1,651 (538) -25% Current Year Financials 1,651 146 9% 661 (990) -60% Project Description Project Manager Gillian McNamara Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-24 11 Project Life Financials 750 0 0% 0 (750) -100% Current Year Financials 750 0 0% 0 (750) -100% Project Description Project Manager Gillian McNamara Chief Officer Alan Douglas Project Lifecycle 31-Dec-22 30-Jun-23 Mitigating Action Planned End Date Regeneration/Local Economic Development Budget to facilitate the delivery of Regeneration throughout West Dunbartonshire, aligned to the Economic Strategy. External funding will be sought to maximise opportunities for redevelopment of these sites. Forecast End Date Main Issues / Reason for Variance LED budget is invested across our town centres and strategic sites and is used to develop and implement projects as well as providing match funding to lever in external funding. During 2022/2023 the key projects to be developed and delivered include a contribution towards Smollett Fountain public realm, development costs associated with Dumbarton Waterfront, the Arc of Attraction Strategy and in Clydebank implementation of the Development Framework Activity Centre in Clydebank will be delivered in 2023/2024. Many regeneration projects are subject to factors outwith Council control and close monitoring of the programming is required. Enabling works at Mitchell Way have been delayed as they are subject to the timescale of the developer. A contingency is included for increasing costs and new funding opportunities. None available at this time. Anticipated Outcome Improved town centres and strategic sites across West Dunbartonshire. Planned End Date Forecast End Date Main Issues / Reason for Variance Due to factors outwith the Council's control, progress couldn’t be made on a timeline that would be acceptable to funders and as a result Scottish Government will withdraw the grant offer. Mitigating Action None available at this time. Anticipated Outcome Viresco Studios and Arts Centre Viresco Studios and Arts Centre in Alexandria, aimed to encourage wider participation in the arts, creative enterprises and cultural activity in West Dunbartonshire. Repurposing and restoration of B listed former St Andrew's church in Alexandria for community arts uses. Page 160
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment12 Project Life Financials 747 0 0% 747 0 0% Current Year Financials 747 0 0% 90 (657) -88% Project Description Project Manager Gillian McNamara Chief Officer Alan Douglas Project Lifecycle 31-Dec-22 30-Jun-23 13 Project Life Financials 22,100 1,896 9% 22,100 (0) 0% Current Year Financials 7,465 128 2% 765 (6,700) -90% Project Description Project Manager Gillian McNamara Chief Officer Alan Douglas Project Lifecycle 31-Mar-25 31-Mar-25 Redevelopment of the Dumbarton Town Centre Planned End Date Forecast End Date Clydebank Can On The Canal New activities centre in Clydebank Town Centre. Mitigating Action None available at this time. Anticipated Outcome New community-run activities centre in Clydebank Town Centre. LUF Year one LUF spend includes acquisition cost of Artizan Centre, and design development for Glencairn House and Connecting Dumbarton Planned End Date Forecast End Date Main Issues / Reason for Variance There were delays to Connecting Dumbarton (due to procurement issues) and Glencairn House (design development issues) resulting in reduced projected spend for 2022/2023. A future programme for the Artizan Centre based on the Development Strategy report was reported to IRED in September 2022. Costs will continue to be monitored by the LUF Project Board. Mitigating Action None available at this time. Anticipated Outcome Main Issues / Reason for Variance Kier is appointed to design and deliver the Activities Centre at Clydebank Town Centre. Design of the project is underway and a commencement date for construction has been confirmed as April 2023. The budget will slip into 2023-2024 however some spend on design development expected in the current financial year. Page 161
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment14 Project Life Financials 8,535 184 2% 8,535 (0) 0% Current Year Financials 1,715 65 4% 750 (965) -56% Project Description Project Manager Sharon Jump/ Craig Jardine Chief Officer Angela Wilson Project Lifecycle 31-Mar-25 31-Mar-25 15 Project Life Financials 382 388 102% 388 6 2% Current Year Financials 0 6 0% 6 6 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Angela Wilson Project Lifecycle 31-Mar-21 31-Mar-21 16 Project Life Financials 750 766 102% 765 15 2% Current Year Financials 86 102 119% 101 15 18% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Angela Wilson Project Lifecycle 31-Mar-22 31-Mar-23 Design Team have been appointed to develop feasibility options for the DRP Project, currently in stage 1 of this phase reviewing service requirements. The conclusion of the feasibility report will provide input for the options appraisal exercise. The intention would be to bring a business case to a future IRED Committee in 2023. Mitigating Action None available at this time. Anticipated Outcome New Sports Changing Facility at Duntocher New Sports Changing Facility at Duntocher Planned End Date Forecast End Date Main Issues / Reason for Variance Project completed over budget due to ground conditions on site. Final costs now charged. Project business case will be brought back to project board, IRED and Council. Depot Rationalisation Depot Rationalisation. Planned End Date Forecast End Date Main Issues / Reason for Variance Holm Park & Yoker Athletic FC Develop a new 3G pitch to act as a home venue for Clydebank FC with extensive community access. Planned End Date Forecast End Date Mitigating Action None available at this time. Anticipated Outcome New sports changing facility completed. Main Issues / Reason for Variance Project now complete. Mitigating Action None available at this time. Anticipated Outcome Project delivered on budget. Page 162
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment17 Project Life Financials 2,375 87 4% 2,375 (0) 0% Current Year Financials 1,090 3 0% 28 (1,063) -97% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Angela Wilson Project Lifecycle 31-Mar-22 31-Mar-24 18 Project Life Financials 78 0 0% 0 (78) -100% Current Year Financials 78 0 0% 0 (78) -100% Project Description Project Manager Martin Feeney Chief Officer Angela Wilson Project Lifecycle 31-Mar-23 31-Mar-23 19 Project Life Financials 45 0 0% 0 (45) -100% Current Year Financials 45 0 0% 0 (45) -100% Project Description Project Manager Martin Feeney Chief Officer Angela Wilson Project Lifecycle 31-Mar-23 31-Mar-23 New Westbridgend Community Centre New Westbridgend Community Centre Planned End Date Forecast End Date Main Issues / Reason for Variance Various delays due to Covid and other utility issues. Planning was previously delayed but now resolved. Building warrant applications submitted with a view to tender being issued December 2022. Anticipated to be onsite by April 2023. Anticipated Outcome Project delivered within budget. Elevated Platforms (Building Services) Elevated Platforms (Building Services). Planned End Date Forecast End Date Planned End Date Forecast End Date Main Issues / Reason for Variance This budget is no longer required. Mitigating Action None available at this time. Mitigating Action None available at this time. Anticipated Outcome New build community facility. Purchase of 3 Welfare Units The purchase of 3 Welfare Units as a spend-to-save proposal. Main Issues / Reason for Variance This budget is no longer required. Mitigating Action None available at this time. Anticipated Outcome Project delivered within budget. Page 163
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment20 Project Life Financials 400 47 12% 400 0 0% Current Year Financials 357 3 1% 100 (257) -72% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Oct-23 31-Oct-23 21 Project Life Financials 2,712 3,793 140% 4,000 1,288 48% Current Year Financials 910 1,426 157% 1,634 724 80% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-22 31-Mar-23 Anticipated Outcome Two new allotment sites with 80 plots and community growing space. Planned End Date Forecast End Date Main Issues / Reason for Variance Two sites are being developed at Dillichip Loan Bonhill and Overburn Dumbarton. These sites will provide eighty traditional allotment plots together with community food growing facilities. It is anticipated that project works will commence in February 2023 with a completion date of October 2023. This project has successfully attracted £0.1 from Scottish Government Vacant and Derelict Land Fund. Mitigating Action None available at this time. Allotment Development To develop an allotment site. Posties Park Sports Hub - New sports hub to include gym & running track Creation of a sports hub at Posties/Marinecraft to include a new changing pavilion/Gym, new all- weather 6 lane running track, conversion of blaze sports pitch to grass, new fencing, upgrade of existing floodlights and additional car parking. This combines the budget approved by the Council in February 2015 for Community Sports Facilities at Posties Park, draw down of budget from the generic sports facilities budget line. Planned End Date Forecast End Date Main Issues / Reason for Variance Project start was delayed due to planning issues and COVID-19 restrictions. Work commenced January 2021 with a proposed completion date of March 2022 which has been extended to January 2023 due to design changes required by Planning. There is still a significant amount of work to be undertaken to complete the project and the cost of this work has been affected by Covid, Brexit and supply chain issues. Additional budget will be required to complete this project. Mitigating Action None required at this time. Anticipated Outcome New all weather running track and gymnasium. Page 164
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment22 Project Life Financials 817 263 32% 817 (0) 0% Current Year Financials 553 0 0% 150 (403) -73% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Oct-23 31-Oct-23 23 Project Life Financials 217 3 1% 217 0 0% Current Year Financials 214 0 0% 0 (214) -100% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-24 31-Mar-24 24 Project Life Financials 400 358 90% 400 0 0% Current Year Financials 42 0 0% 0 (42) -100% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 Mitigating Action None required at this time. Bus Rapid Deployment Fund Funding has been awarded from Sustrans to assist with social distancing measures required as a result of the COVID-19 pandemic. Auld Street Clydebank - Bond Completion of roadworks associated with Auld Street housing development. Creation of a footpath to Golden Jubilee Hospital. Planned End Date Forecast End Date To complete remaining civil works required. Road construction works completed in previous years. Remaining funds are insufficient to complete footpath construction. Works on hold until such time as additional funds can be secured. Mitigating Action None available at this time. Anticipated Outcome Anticipated Outcome To improve journey times and reliability of bus services. Planned End Date Forecast End Date Main Issues / Reason for Variance Officers working with external partners to identify projects to support funding. Investigation on going however unlikely works will be able to progress this financial year. Vale of Leven Cemetery Extension Extension of existing cemetery in Vale of Leven. Planned End Date Forecast End Date Main Issues / Reason for Variance Project is now being developed for tendering, with project commencing February 2023 and completion expected by 31 October 2023. It is anticipated that £0.150m will be spent this financial year mainly on consultant costs and enabling works. Mitigating Action None available at this time. Anticipated Outcome Extension to existing cemetery providing a sustainable burial environment. Main Issues / Reason for Variance Page 165
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment25 Project Life Financials 500 11 2% 500 0 0% Current Year Financials 220 0 0% 0 (220) -100% Project Description Project Manager Raymond Walsh Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-24 31-Mar-24 26 Project Life Financials 1,000 0 0% 1,000 0 0% Current Year Financials 1,000 0 0% 0 (1,000) -100% Project Description Project Manager Kenny Lang Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-25 31-Mar-25 27 Project Life Financials 2,817 0 0% 2,817 0 0% Current Year Financials 2,817 0 0% 600 (2,217) -79% Project Description Project Manager Kenny Lang Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-24 31-Mar-24 Replacement of refuse collection vehicles. Replacement of fleet within budget. Planned End Date Forecast End Date Main Issues / Reason for Variance Vehicles are being ordered for delivery in this financial year but larger vehicles will be delayed into financial year 2023/2024. Mitigating Action None Required. Anticipated Outcome Vehicle Replacement Strategy Replacement of refuse collection vehicles. Planned End Date Forecast End Date Main Issues / Reason for Variance Larger vehicles will be delayed due to supply chain issues. Delivery timescales anticipated at 18 months. Mitigating Action None available. Anticipated Outcome Mandatory 20mph Residential communities Mandatory 20mph Residential communities. Planned End Date Forecast End Date Main Issues / Reason for Variance Project to be delivered within budget. Mitigating Action None available at this time. Anticipated Outcome Awaiting Scottish Government recommendations. Vehicle Replacement Replacement of vehicles which have reached end of programmed lifespan (7 year heavy vehicles, 10 year light vehicles). Page 166
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment28 Project Life Financials 29,450 151 1% 29,450 (0) 0% Current Year Financials 2,797 56 2% 856 (1,940) -69% Project Description Project Manager Sharon Jump/ Craig Jardine Chief Officer Laura Mason Project Lifecycle 31-Mar-26 31-Mar-26 29 Project Life Financials 924 0 0% 924 0 0% Current Year Financials 154 0 0% 40 (114) -74% Project Description Project Manager Julie Slavin Chief Officer Beth Culshaw Project Lifecycle 31-Mar-23 31-Mar-23 Community Alarm upgrade To upgrade Community Alarm Planned End Date Anticipated Outcome Forecast End Date Main Issues / Reason for Variance Work is ongoing with HR colleagues in order to appoint a project manager to this post and it is anticipated that spend will progress in the final half of the financial year. Community Alarm Upgrade Mitigating Action None available at this time Delivery of the project will be on time. Anticipated Outcome Schools Estate Improvement Plan - next Phase - Faifley Campus Improvement of Schools Estate. Planned End Date Forecast End Date Main Issues / Reason for Variance The next phase of the Schools Estate Improvement Plan involves the development of a new Campus provision in the Faifley area. WDC has been successful in securing funding from the Scottish Government Learning Estate Improvement Programme. SFT confirmed the indicative funding allocation for this project at £18.416m on the 4 May 2021, this will be received as a revenue stream over the 25 years of the Scottish Government financial support (subject to the Council adhering to the funding criteria). Site Options Appraisal has taken place and Members approved the recommendation to proceed with the new Faifley Campus on the St Joseph's site at Education Committee on 9th June 2021. The design team and main contractor have been appointed and the next phase will see the design development for the new Campus taking place. The statutory consultation process was launched in September 2021 and a report was brought back to the Educational Services committee in March 2022 concluding the process. RIBA Stage 2 Design development slightly behind programme but this will not have an impact on the overall Phase 1 completion date for the project. Mitigating Action None available at this time. Page 167
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT RED ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Valuation Joint Board - Requisition of ICT Equipment30 Project Life Financials 1,400 0 0% 1,400 0 0% Current Year Financials 280 0 0% 40 (240) -86% Project Description Project Manager Julie Slavin Chief Officer Beth Culshaw Project Lifecycle 31-Mar-23 31-Mar-23 31 Project Life Financials 27,531 27,266 99% 27,531 0 0% Current Year Financials 42 55 130% 55 13 30% Project Description Project Manager Sharon Jump/ Craig Jardine Chief Officer Beth Culshaw Project Lifecycle 31-Mar-22 31-Mar-22 32 Project Life Financials 379 42 11% 425 46 12% Current Year Financials 0 0 0% 46 46 0% Project Description Project Manager Arun Menon Chief Officer Victoria Rogers Project Lifecycle 31-Mar-30 31-Mar-30 None available at this time Anticipated Outcome Replacement of Care First Replacement of Care First Replacement of Care First Planned End Date Forecast End Date Main Issues / Reason for Variance Work continues on developments resulting in some spend in the current year. Mitigating Action None required. Anticipated Outcome Development of Workforce Management System. Development of Workforce Management System Project to develop the Workforce Management System. Planned End Date Forecast End Date Main Issues / Reason for Variance The replacement of CareFirst has been delayed because of challenges in respect of the recruitment of a Digital Business Lead to take forward the project. Work is ongoing with HR colleagues in order to consider how the recruitment challenge may be addressed. Mitigating Action Main Issues / Reason for Variance Mitigating Action The statement of final account has been signed and financial risk exposure should be reduced through efforts to dispose of the existing properties at the earliest opportunity. Anticipated Outcome Dumbarton Care Home opened 2017. Clydebank Care Home was certified complete on 9 November 2020. Replace Elderly Care Homes and Day Care Centres Design and construction of replacement elderly care homes and day care centres in Dumbarton and Clydebank areas. Planned End Date Forecast End Date Project complete with a slight overspend due to additional works required in relation to roof vents which required to be installed. Page 168
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 1 Project Life Financials 30 0 0% 30 0 0% Current Year Financials 30 0 0% 20 (10) -33% Project Description Project Manager Karen Shannon Chief Officer Laurence Slavin Project Lifecycle 31-Mar-23 31-Mar-23 2 Project Life Financials 50 43 86% 51 1 1% Current Year Financials 7 0 0% 8 1 10% Project Description Project Manager Karen Shannon Chief Officer Laurence Slavin Project Lifecycle 31-Mar-23 31-Mar-23 Budget was rephased to 2022-2023 as version upgrade of the Council's cash receipting system is required beforehand and is currently underway. The Module for this has been secured and anticipated timescales for Go Live is May 2023. Anticipated Outcome Upgraded Electronic Insurance System. Planned End Date Forecast End Date 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Payment Card Industry Data Security Standard (PCIDSS) Module would ensure that WDC were compliant with the current requirements of PCIDSS for card payments without the need for numerous costly workarounds Planned End Date Forecast End Date Main Issues / Reason for Variance Main Issues / Reason for Variance The various claim forms and departmental reports have been reviewed and updated and the relevant online request forms were submitted to the Digital Sub-Group to be converted to Online Achieve Forms. The various claim forms and departmental reports have now been converted to Online Achieve Forms and are in the process of being tested. Once complete, the supplier will take matters forward with their design team. An anticipated timeline for completion of the project, taking into account the various stages i.e. development, testing, going live etc. will be drawn up in conjunction with the supplier at that time. Budget spend anticipated in 2022/23. Mitigating Action None required at this time. Mitigating Action None required at this time. Anticipated Outcome Upgraded version with PCI compliant telephone payment system. Electronic Insurance System Acquisition of a claims/incident management system supported by an electronic document management system. Page 169
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 3 Project Life Financials 40 5 12% 40 (0) 0% Current Year Financials 35 0 0% 35 0 0% Project Description Project Manager Karen Shannon Chief Officer Laurence Slavin Project Lifecycle 30-Sep-23 30-Sep-23 4 Project Life Financials 60 6 9% 60 0 0% Current Year Financials 25 1 3% 25 0 0% Project Description Project Manager Adrian Gray Chief Officer Laurence Slavin Project Lifecycle 31-Mar-23 28-Feb-23 5 Project Life Financials 5 0 0% 5 0 0% Current Year Financials 5 0 0% 5 0 0% Project Description Project Manager Jackie Nicol Thomson Chief Officer Laurence Slavin Project Lifecycle 31-Mar-23 31-Mar-23 Enhancements to Cash Receipting System Main Issues / Reason for Variance Budget was rephased to 2022-2023 as this is a number of mini projects and the first part is the version upgrade which is actively progressing, currently on phase 2. After this upgrade we can move onto other enhancements which are anticipated to finish in September 2023. Mitigating Action None required at this time. Anticipated Outcome Enhancements to the cash receipting system including PCI compliant telephone payment system. To enhance the cash receipting system in the way payments are made and allocated to back office by increasing the level of security that is required for online payments made by customers Planned End Date Forecast End Date Mitigating Action None possible at this time. Anticipated Outcome Development of Agresso system later than originally anticipated but within original budget. Agresso development The purpose of this project is to carry out an upgrade of the Agresso Finance System which was last upgraded in 2015. The requirement to upgrade is to maintain a level of support available from Unit 4 who have advised that support for older versions of the system is being reduced. Planned End Date Forecast End Date Main Issues / Reason for Variance Continuing issues with the completion of required data cleansing prior to the upgrade have further delayed the start of the upgrade. Provided these difficulties can be overcome the upgrade will commence in November and aim to complete by the end of February 2023. IFRS 16 Database This is a system which will ensure that WDC has the correct level of information and adheres to correct reporting of IFRS16 - Leasing. Planned End Date Forecast End Date Main Issues / Reason for Variance The purchase of software to allow new accounting treatment of leases to be appropriately reported is on track. Full spend anticipated FY 2022/2023. Mitigating Action None required Anticipated Outcome Purchase of software for accounting for leases. Page 170
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 6 Project Life Financials 1,000 0 0% 1,000 0 0% Current Year Financials 1,000 0 0% 250 (750) -75% Project Description Project Manager Gillian McNeilly Chief Officer Laurence Slavin Project Lifecycle 31-Mar-23 31-Mar-23 7 Project Life Financials 53 13 25% 53 0 0% Current Year Financials 33 0 0% 33 0 0% Project Description Project Manager Alan Douglas Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 8 Project Life Financials 30 0 0% 30 0 0% Current Year Financials 10 0 0% 10 0 0% Project Description Project Manager Pamela Clifford Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 Main Issues / Reason for Variance Solicitor Project Support for Capital Projects Solicitor costs to directly support capital projects Planned End Date Forecast End Date Cost of Living To support Council and community organisations with capital costs for cost of living initiatives. Planned End Date Forecast End Date Main Issues / Reason for Variance Working Group currently developing proposals for initiative. The budget will be spread equally over four years and £0.75m has been rephased. Mitigating Action None required Anticipated Outcome Initialive will assist with cost of living crisis Re -imagine Antonine Wall Council's capital contribution towards the multi-partner (five local authorities and Historic Environment Scotland) Rediscovering the Antonine Wall project which is also funded by the Heritage Lottery Fund. Trainee solicitor in place. Budget will be fully spent. Mitigating Action None required at this time. Anticipated Outcome Solicitor support for Capital Projects, with full budget spend anticipated. Anticipated Outcome Preservation of Historic Site. Planned End Date Forecast End Date Main Issues / Reason for Variance Council's capital contribution towards the multi-partner (five local authorities and Historic Environment Scotland) Rediscovering the Antonine Wall project will be paid by the end of the financial year. Mitigating Action None Required. Page 171
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 9 Project Life Financials 83 0 0% 83 0 0% Current Year Financials 83 0 0% 83 0 0% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 10 Project Life Financials 20 14 69% 20 0 0% Current Year Financials 7 1 9% 7 0 0% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 11 Project Life Financials 85 55 64% 85 (0) 0% Current Year Financials 30 0 0% 27 (3) -10% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 Anticipated Outcome Physical works being carried out by 31/3/23. Planned End Date Forecast End Date Main Issues / Reason for Variance Works are integrated with the new Baths refurbishment. Received and approved initial design proposals from Vital. Waiting on final design and costings. Works to be complete by 31 March 2023 to compliment the district heating installation. Mitigating Action None available at this time. Replace existing main hall Air Handling unit at Clydebank Town Hall Replace existing main hall Air Handling unit at Clydebank Town Hall. Mitigating Action None required. Anticipated Outcome Delivery of project with full budget spend. Replace failed heating controls/valves & recommission Replace failed heating controls/valves & recommission. Planned End Date Actual End Date Main Issues / Reason for Variance Further works ordered. Expect full spend by 31 March 2023. Mitigating Action None required. Anticipated Outcome Anticipate some spend this year and the remainder to be rephased into 2023/24. Automatic Meter Readers - Water Automatic Meter Readers. Planned End Date Forecast End Date Main Issues / Reason for Variance Water meter works to be carried out in the last quarter of the year. Previous works with electricity meter supplier did not meet expectations. Await resolutions before issuing further orders. Page 172
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 12 Project Life Financials 16 14 85% 16 0 0% Current Year Financials 2 0 0% 2 (0) 0% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 13 Project Life Financials 50 0 0% 50 0 0% Current Year Financials 50 0 0% 50 0 0% Project Description Project Manager Steven Milne/ John McKenna Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 14 Project Life Financials 11,767 4,987 42% 11,782 15 0% Current Year Financials 4,209 89 2% 2,060 (2,148) -51% Project Description Project Manager Gillian McNamara Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 Anticipated Outcome Delivery of project within budget. Planned End Date Forecast End Date Main Issues / Reason for Variance Project integrated with Water AMR project. All works to be carried out in the last quarter of the year when the existing AMR contract requires renewal. Expect full spend. Mitigating Action None required Water Meter Downsize Water Meter Downsize. Lighting upgrades to LED in schools and Corporate buildings Upgrade lighting in schools and corporate buildings. Planned End Date Forecast End Date Main Issues / Reason for Variance Planned End Date Forecast End Date Main Issues / Reason for Variance The remaining Regeneration Fund projects are Dumbarton Waterfront Path; the contribution towards the costs of Glencairn House; Connecting Dumbarton; and the Scottish Marine Technology Park at the former Carless site. As Levelling Up Fund is programmed to be spent before Regeneration Fund for Glencairn House and Connecting Dumbarton, it is not anticipated that any Regeneration Fund will be spent on these projects during this financial year and will be carried forward. Spend against The £2.0m Clyde Mission funding for SMTP will continue during the financial year 2022/2023 before an agreement is reached on the £2.0m of Regeneration Fund investment. Dumbarton Waterfront Path will be developed according to landowner timescales, and only some spend is anticipated this year. Mitigating Action Programme management approach to delivery. Regeneration Fund Funding to implement major regeneration projects linked to community charrettes. Initial works at Gavinburn Primary School completed and work planned to start at Knoxland Primary schools. Await quotes for further works and expect full spend. Mitigating Action None available at this time. Anticipated Outcome Works complete 2022/23 Anticipated Outcome Progress towards delivery of planned projects from Economic Development Strategy and Charrette Action Plans albeit later than originally anticipated. Page 173
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 15 Project Life Financials 1,166 1,085 93% 1,166 0 0% Current Year Financials 143 62 43% 143 0 0% Project Description Project Manager Gillian McNamara Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 16 Project Life Financials 1,456 780 54% 1,456 0 0% Current Year Financials 1,317 641 49% 1,112 (205) -16% Project Description Project Manager Gillian McNamara Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 31-Mar-23 17 Project Life Financials 125 99 79% 125 0 0% Current Year Financials 69 42 62% 69 0 0% Project Description Project Manager Gillian McNamara Chief Officer Alan Douglas Project Lifecycle 31-Mar-23 30-Jun-23 Town Centre Fund Scottish Government funding to help improve local town centres. Planned End Date Forecast End Date Main Issues / Reason for Variance The remaining Town Centre Fund will be spent on the Smollett Fountain public realm works which will be completed by the end of the financial year. Mitigating Action None available at this time. Anticipated Outcome Regenerated Town Centres. Mitigating Action Programme involves expenditure over a number of projects led by different services. Regular reporting between services will help early identification of risk. Anticipated Outcome Place-based improvements that advance Scottish Government's priorities of 20 minute neighbourhoods and carbon zero. Place Based Investment Programme Scottish Government Funding to establish a Place-Based Investment Programme to ensure that all place based investments are shaped by the needs and aspirations of local communities. Planned End Date Forecast End Date Main Issues / Reason for Variance The budget includes a £0.641m contribution to Titan Boulevard at Queens Quay and £0.676m towards implementation of Alexandria Masterplan projects. Levelling Up Successful LUF applications that meet UK Government's over-riding objective of Levelling Up and transformational regeneration. Planned End Date Forecast End Date Main Issues / Reason for Variance This capacity funding was awarded by UK Government to assist with development of LUF bids. WDC has been awarded a grant from LUF Round 1 and the capacity funding will be used in part to produce Artizan Centre redevelopment options. The balance will be used for Roads/Transportation to develop a major transportation bid for LUF2. Mitigating Action None available at this time. Anticipated Outcome Successful LUF applications that meet UK Government's over-riding objective of Levelling Up and transformational regeneration. Page 174
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 18 Project Life Financials 11,220 0 0% 11,220 0 0% Current Year Financials 3,720 0 0% 3,720 0 0% Project Description Project Manager Patricia Rowley/ Craig Jardine Chief Officer Alan Douglas Project Lifecycle 31-Mar-24 31-Mar-24 19 Project Life Financials 34,050 2,784 8% 34,049 (1) 0% Current Year Financials 986 104 11% 986 (0) 0% Project Description Project Manager Patricia Rowley/ Craig Jardine Chief Officer Alan Douglas Project Lifecycle 31-Mar-27 31-Mar-27 20 Project Life Financials 15 4 24% 15 0 0% Current Year Financials 11 0 0% 11 0 0% Project Description Project Manager Stephen Daly Chief Officer Amanda Graham Project Lifecycle 31-Mar-23 31-Mar-23 Exxon City Deal As part of the City Deal project the WDC Exxon site at Bowling regeneration with alternative A82 route included. Planned End Date Forecast End Date Main Issues / Reason for Variance Regular updates are provided at every Council meeting and monthly Project Board meetings and to City Deal. The main issues contained within the new Council's approved Outline Business Case are still valid, which include Exxon's remediation strategy, land transfer arrangements and issues relating to adjoining owners. WDC Consultants are monitoring the remediation process to ensure compliance with specification, also Esso are independently monitoring the remediation works. Final Business Case submission is November 2022. Through the Scape framework we are working closely with Balfour Beatty to achieve a formal pre construction agreement to allow the detailed design works to commence and the full construction programme to be developed. Agreements in principle are progressing with third party land owners. Main Issues / Reason for Variance Network expansion to GJNH (Golden Jubilee National Hospital) will commence pending approval to proceed by the GJNH Board. Mitigating Action None available at this time. Anticipated Outcome Project will be delivered on budget. District Heating Network Expansion District Heating Network Expansion. Planned End Date Forecast End Date Anticipated Outcome Review of service requirements & telephony functionality will inform works to improve citizen experience. Planned End Date Forecast End Date Main Issues / Reason for Variance Improvements to Contact Centre telephony were completed as scheduled during 2021/2022. Further works have been scoped and agreed for improvement to Housing telephony, benefiting both residents and the Council. A review of the out of hours service is currently being undertaken including work to upgrade telephony. Any works will also incur professional fees for necessary scripting works. We are also exploring call recording technology across all the Contact Centre telephony. It is anticipated these projects will be completed during the financial year 2022/2023. Mitigating Action None required. Mitigating Action None required. Anticipated Outcome Delivery of the project on time and within the increased budget. Telephone System Upgrade To improve Housing Repairs telephone platform for incoming calls, providing improved Management Information. Page 175
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 21 Project Life Financials 421 272 65% 421 (0) 0% Current Year Financials 91 42 46% 91 (0) 0% Project Description Project Manager David Main Chief Officer Amanda Graham Project Lifecycle 31-Mar-24 31-Mar-24 22 Project Life Financials 3,998 1,258 31% 4,011 13 0% Current Year Financials 1,673 71 4% 1,673 0 0% Project Description Project Manager Sarah Christie/Michelle Lynn Chief Officer Amanda Graham Project Lifecycle 31-Mar-23 31-Mar-23 23 Project Life Financials 1,700 75 4% 1,590 (110) -6% Current Year Financials 1,590 75 5% 1,590 0 0% Project Description Project Manager Michelle Lynn/ Sarah Christie Chief Officer Amanda Graham Project Lifecycle 31-Mar-24 31-Mar-24 Main Issues / Reason for Variance The original projected spend has been affected by internal and external delays due to the Covid 19 recovery, a reduction in the scope of the Clydebank Town Hall project, a change in the delivery date for the Clydebank Museum at Clydebank Library during the contract award stage, while the new Dalmuir Library and Gallery had to be rescheduled for approval in August 2021. Officers are now making progress to get projects back on track, projects will still be delivered in full, and a review of optimism bias will be undertaken in the projections for 2022/23. Mitigating Action None available at this time. Transformation of Infrastructure Libraries and Museums To improve performance and efficiency of Council's Libraries and Cultural Services. Planned End Date Forecast End Date Heritage Capital Fund Heritage Capital Fund. Main Issues / Reason for Variance Work is underway to progress furniture replacement at Dumbarton, Duntocher and Parkhall libraries during 2022/2023. Budget of £0.1m has been rephased to next financial year for Dalmuir library as work is currently scheduled for 2023/2024. Mitigating Action None required. Anticipated Outcome Project carried forward to align with Asset Management programme. Main Issues / Reason for Variance Project in design phase and planning application delayed due to ongoing discussions with planning service regarding fire risk strategy. Anticipate planning to be submitted by 31 December 2022. Mitigating Action None available at this time. Anticipated Outcome Re-development of Glencairn House in Dumbarton High Street to a purpose built library and museum, within budget albeit later than originally anticipated. Anticipated Outcome Project to be delivered on budget and within revised timescale. Glencairn House Re-development of Glencairn House in Dumbarton High St to a purpose built library and museum. Planned End Date Forecast End Date Planned End Date Forecast End Date Page 176
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 24 Project Life Financials 40 0 0% 40 0 0% Current Year Financials 40 0 0% 40 0 0% Project Description Project Manager John Anderson Chief Officer Amanda Graham Project Lifecycle 31-Mar-23 31-Mar-23 25 Project Life Financials 1,912 695 36% 1,912 0 0% Current Year Financials 1,912 695 36% 1,912 (0) 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Angela Wilson Project Lifecycle 31-Mar-23 31-Mar-23 26 Project Life Financials 350 9 3% 350 0 0% Current Year Financials 0 0 0% 0 0 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Angela Wilson Project Lifecycle 31-Mar-24 31-Mar-24 Mitigating Action None required Anticipated Outcome New floor fitted in Alexandria Community Sports Hall. Alexandria Community Centre Sports Hall re-flooring Alexandria Community Centre Sports Hall re-flooring Planned End Date Forecast End Date Main Issues / Reason for Variance The Alexandria Community Centre Sports Hall continues to be utilised as COVID-19 vaccine centre during 2022/23 and the work will be postponed until the last quarter of the financial year. Anticipated Outcome Full budget spend anticipated. New Sports Changing Facility Dumbarton West (Old OLSP site) New Sports Changing Facility Dumbarton West (Old OLSP site) Planned End Date Forecast End Date Planned End Date Forecast End Date Main Issues / Reason for Variance Works progressing. Mitigating Action None available at this time. Building Upgrades and H&S - lifecycle & reactive building upgrades Lifecycle and reactive building upgrades. Main Issues / Reason for Variance The budget for this project has been rephased to FY 2023/2024. Mitigating Action None available at this time. Anticipated Outcome To deliver new sports changing facility. Page 177
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 27 Project Life Financials 150 16 11% 150 0 0% Current Year Financials 134 0 0% 134 (0) 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Angela Wilson Project Lifecycle 31-Mar-21 31-Mar-23 28 Project Life Financials 150 0 0% 150 0 0% Current Year Financials 150 0 0% 150 0 0% Project Description Project Manager Michelle Lynn Chief Officer Angela Wilson Project Lifecycle 31-Mar-25 31-Mar-25 29 Project Life Financials 912 864 95% 912 0 0% Current Year Financials 80 32 40% 80 0 0% Project Description Project Manager Elaine Troup Chief Officer Peter Barry Project Lifecycle 31-Mar-23 31-Mar-23 New Sports Changing Facility at Lusset Glen in Old Kilpatrick New Sports Changing Facility at Lusset Glen in Old Kilpatrick Anticipated Outcome To deliver new sports changing facility. Planned End Date Forecast End Date Main Issues / Reason for Variance Project had been delayed due to a number of COVID-19 related issues and utilities issues. Unit is now in production but delay to site due to the utility disconnection and demolition works. Demolition works complete and waiting for a date for installation. Mitigating Action None available at this time. Changing Places Toilet Provision Changing places toilet provision in four public buildings - Balloch bus stance toilets, Concord Community Centre, Dalmuir Community Centre and Clydebank East Community Centre. Planned End Date Forecast End Date Main Issues / Reason for Variance Plans have been prepared and projects will be progressed by the end of the financial year. Mitigating Action None available at this time. Anticipated Outcome Project delivered within budget. Invest in "Your Community Initiative" Capital budget to support the roll out of Your Community, an initiative designed to achieve coordinated service delivery in response to community need. This is complimented by community capacity building, empowering WD citizens to do more for their own communities (leading to less reliance on council). Also included is the implementation of participatory budgeting to support and build capacity in communities. Planned End Date Forecast End Date Main Issues / Reason for Variance Application process is planned for later in this financial year. Mitigating Action None required at this time. Anticipated Outcome Full spend is anticipated on this year's budget. Page 178
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 30 Project Life Financials 100 23 23% 100 (0) 0% Current Year Financials 17 0 0% 17 0 0% Project Description Project Manager Graham Watters Chief Officer Peter Barry Project Lifecycle 31-Mar-30 31-Mar-30 31 Project Life Financials 200 0 0% 200 0 0% Current Year Financials 50 0 0% 50 0 0% Project Description Project Manager John Kerr Chief Officer Peter Barry Project Lifecycle 31-Mar-30 31-Mar-30 32 Project Life Financials 405 7 2% 405 0 0% Current Year Financials 405 7 2% 405 0 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 Anticipated Outcome Development of IHMS system. Dennystoun Forge Site Improvements Dennystoun Forge Site Improvements Planned End Date Forecast End Date Planned End Date Forecast End Date Main Issues / Reason for Variance Development of system progressing, with full budget spend anticipated to be incurred in 2022/23. Mitigating Action None required at this time. Integrated Housing Management System Development of IHMS system. Mitigating Action None required at this time. Anticipated Outcome Better access with parks, cemeteries and open spaces. Public non-adopted paths and roads Upgrades to drainage and lighting to enhance the lifespan of paths and roads within facilities in public parks, cemeteries and civic spaces. Planned End Date Forecast End Date Main Issues / Reason for Variance Projects are currently being developed to deliver better access in our parks, cemeteries and open spaces. Full budget spend anticipated in 2022/2023. Main Issues / Reason for Variance The Council is currently trying to secure new funding to provide new accommodation within the Dennystoun Forge site. This may require some redesign of the existing site and has resulted in proposed works to provide additional play and security measures being held until future design proposals are confirmed. Mitigating Action Officers carried out some proactive consultative work to establish the tenant priorities this will allow the work programme to be developed timeously. Anticipated Outcome It is expected the works programme will be completed during 2022/2023. Page 179
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 33 Project Life Financials 1,726 1,718 100% 1,726 0 0% Current Year Financials 13 5 38% 13 0 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 34 Project Life Financials 50 37 73% 50 (0) 0% Current Year Financials 13 0 0% 13 (0) 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 35 Project Life Financials 220 214 97% 220 0 0% Current Year Financials 7 0 0% 7 (0) 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 03-Apr-21 31-Mar-22 Mitigating Action None required at this time. Anticipated Outcome Improvements to the environment of West Dunbartonshire. Kilmaronock Cemetery Extension Extension of existing cemetery at Kilmaronock. Environmental Improvement Fund This fund has been created to deliver environmental improvement projects for communities throughout West Dunbartonshire. Planned End Date Forecast End Date Main Issues / Reason for Variance Remaining budget rephased from 2021/2022 to progress with tree planting in 2022/2023 in line with the Councils Climate Change and Biodiversity action plans. Full budget spend anticipated. Sustainable burial environment for local residents. Planned End Date Forecast End Date Main Issues / Reason for Variance This budget will be used to develop an area of the existing Cemetery for additional burials. Project scope has now been developed and will be tendered under the minor civils framework. Budget spend anticipated in 2022/2023. Mitigating Action None required at this time. Planned End Date Actual End Date Sports Facilities Upgrades - Argyll Park - Construction of 3 All Weather Tennis Courts Project is part of wider investment in sporting facilities and is dependent on match funding from Sports Scotland. Agreement in principle to wider WDC strategic priorities. Anticipated Outcome Main Issues / Reason for Variance Project works complete. Retentions to be paid in 2022/2023. Mitigating Action None required at this time. Anticipated Outcome New all weather tennis courts. Page 180
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 36 Project Life Financials 200 0 0% 200 0 0% Current Year Financials 30 0 0% 30 0 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-24 31-Mar-24 37 Project Life Financials 1,444 59 4% 1,444 (0) 0% Current Year Financials 201 0 0% 201 (0) 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 38 Project Life Financials 210 0 0% 210 0 0% Current Year Financials 10 0 0% 10 0 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 30-Nov-23 30-Nov-23 Mitigating Action None required at this time. Anticipated Outcome Mountain bike track Planned End Date Forecast End Date Main Issues / Reason for Variance Consultant and design team fees for resurfacing of 3G pitch at East End Park. Mitigating Action None required. Anticipated Outcome Balloch Mountain Bike Track Develop a mountain bike skills trail at Balloch Castle Country Park. Planned End Date Forecast End Date Main Issues / Reason for Variance Design fees to develop Mountain bike skills trail in Balloch country park. Application will be submitted to Sport Scotland for match funding. Project to commence April 2023 and works to be complete by November 2023. Main Issues / Reason for Variance Resurfacing of 3G pitch at East End Park. Development of play areas to improve accessibility and inclusiveness of play areas throughout West Dunbartonshire. Projects are being developed for implementation over the next five years. Mitigating Action None required at this time. Anticipated Outcome Renewal of play parks East End Park Resurfacing Resurfacing of 3G pitch at East End Park. Play Parks Grant Funding Renew and replace play park equipment Planned End Date Forecast End Date Page 181
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 39 Project Life Financials 25 19 75% 25 0 0% Current Year Financials 25 19 75% 25 0 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 40 Project Life Financials 228 41 18% 228 0 0% Current Year Financials 228 41 18% 228 0 0% Project Description Project Manager Ian Bain Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 41 Project Life Financials 740 350 47% 350 (390) -53% Current Year Financials 390 0 0% 0 (390) -100% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Jul-22 31-Jul-22Forecast End Date Main Issues / Reason for Variance The programme is now complete and there will be no further expenditure. Main Issues / Reason for Variance Supply and install extra large litter bins as a pilot project within hotspot problem areas. Project has commenced and completion is anticipated by March 2023. Mitigating Action None required at this time. Anticipated Outcome Large bins provided for high traffic areas Mitigating Action None required at this time. Anticipated Outcome To provide people of West Dunbartonshire additional space to help adhere to social distancing guidelines. Funding received from Nature Restoration Fund to build nature resource for Faifley community has been completed and additional funding has been received and projects are currently being developed and to be delivered by March 2023. Mitigating Action None required at this time. Anticipated Outcome Nature resource for Faifley Community Large bins for high traffic areas (pilot) Supply and install extra large litter bins as a pilot project within hotspot problem areas. Planned End Date Forecast End Date Spaces for People Funding has been awarded from Sustrans to assist with social distancing measures required as a result of the COVID-19 pandemic. Planned End Date Nature Restoration Fund Nature resource for Faifley Community Planned End Date Forecast End Date Main Issues / Reason for Variance Page 182
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 42 Project Life Financials 683 6 1% 566 (117) -17% Current Year Financials 683 6 1% 566 (117) -17% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 43 Project Life Financials 203 0 0% 107 (96) -47% Current Year Financials 107 0 0% 107 (0) 0% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 44 Project Life Financials 200 0 0% 5 (195) -97% Current Year Financials 5 0 0% 5 0 0% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 Mitigating Action None required at this time. Anticipated Outcome To improve Footways in West Dunbartonshire. Additional Pavement Improvements Extra funding to accelerate pavement maintenance and improvements across West Dunbartonshire. Footways/Cycle Path Upgrades Renewal and/or enhancement of failed footpaths/cycle paths through West Dunbartonshire. Planned End Date Cycling, Walking and Safer Streets Introduction of enhanced walking routes and traffic calming schemes to introduce safer streets within West Dunbartonshire. Planned End Date Forecast End Date Forecast End Date Main Issues / Reason for Variance Projects and locations still to be decided. Main Issues / Reason for Variance To develop projects including Balloch Cycle Way (Pier Road to Mollanbowie/Boturich Road), and other projects principally around National Cycle Network 7 including Angus Street/Bonhill Bridge and Atlus Street/Cart Street, Clydebank and pedestrian dropped kerbs. Mitigating Action None required at this time. Anticipated Outcome To improve connectivity and enhanced Cycling routes within West Dunbartonshire. Anticipated Outcome To improve Footways in West Dunbartonshire. Planned End Date Forecast End Date Main Issues / Reason for Variance Budget to be used for retention payment from last years surfacing of Dumbarton East footways. Mitigating Action None required at this time. Page 183
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 45 Project Life Financials 60 55 91% 60 0 0% Current Year Financials 5 0 0% 5 0 0% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 46 Project Life Financials 314 215 68% 314 (0) 0% Current Year Financials 100 0 0% 100 (0) 0% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 47 Project Life Financials 1,257 0 0% 1,257 0 0% Current Year Financials 1,257 0 0% 1,257 0 0% Project Description Project Manager Raymond Walsh/ Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 Planned End Date Forecast End Date Main Issues / Reason for Variance Charging points to be installed at Moss O' Balloch park by the end of this financial year. Mitigating Action None required at this time. Mitigating Action None required at this time. Anticipated Outcome Traffic calming to be installed in Dumbarton East. Electrical Charging Points - Rapid Charge Funding has been awarded from Transport Scotland for the Installation of electrical charging points Turnberry Homes - traffic calming/ management at Turnberry housing development off Castle Road Funding has been received from Turnberry Homes and will be used to introduce traffic calming and traffic management measures to mitigate the impact of additional traffic accessing the housing development off Castle Road, Dumbarton. Planned End Date Forecast End Date Main Issues / Reason for Variance Consultation completed 2021/2022 and speed humps will be installed prior to 31 March 2023. Main Issues / Reason for Variance A detailed design for Gruggies Burn will be undertaken by the end of the financial year. Mitigating Action None required at this time. Anticipated Outcome Project should be complete within budget. Anticipated Outcome To provide Electric Vehicle Charging points within West Dunbartonshire. Flood Risk Management Enhancement of drainage infrastructure to ensure compliance with Flood Risk Management Act 2009. Planned End Date Forecast End Date Page 184
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 48 Project Life Financials 500 0 0% 500 0 0% Current Year Financials 500 0 0% 500 0 0% Project Description Project Manager Raymond Walsh Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 49 Project Life Financials 149 19 13% 149 0 0% Current Year Financials 149 19 13% 149 0 0% Project Description Project Manager Raymond Walsh Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 50 Project Life Financials 800 181 23% 800 0 0% Current Year Financials 620 0 0% 620 0 0% Project Description Project Manager Raymond Walsh Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 Infrastructure - Flooding Essential renewal of failed drainage assets to minimise flood risk within West Dunbartonshire. Planned End Date Forecast End Date Main Issues / Reason for Variance Small value projects to tackle flooding events in various areas. Main Issues / Reason for Variance Plans are under consideration by officers and will be submitted to Elected Members for approval. Mitigating Action None required at this time. Anticipated Outcome Projects should be complete within budget. Flood Prevention Various flood prevention projects. Planned End Date Forecast End Date Anticipated Outcome Project should be completed within budget. Planned End Date Forecast End Date Main Issues / Reason for Variance Awaiting outcome of Scottish Government & SEPA deliberations, however officers are hopeful full budget spend can be incurred by the end of the financial year. Mitigating Action None required at this time. Mitigating Action None required at this time. Anticipated Outcome Intention is to complete works within budget. River Leven Flood Prevention Scheme River Leven Flood Prevention Scheme. Page 185
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 51 Project Life Financials 1,627 12 1% 1,075 (552) -34% Current Year Financials 1,627 12 1% 1,075 (552) -34% Project Description Project Manager Raymond Walsh Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 52 Project Life Financials 3,444 275 8% 3,444 0 0% Current Year Financials 3,444 275 8% 3,444 (0) 0% Project Description Project Manager Hugh Campbell Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 53 Project Life Financials 12 11 91% 12 0 0% Current Year Financials 12 11 91% 12 (0) 0% Project Description Project Manager Hugh Campbell Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 Strathclyde Partnership for Transport - Bus, cycling and walking infrastructure improvements & Park and Rides Strathclyde Partnership for Transport - Bus, cycling and walking infrastructure improvements. Planned End Date Forecast End Date Infrastructure - Roads Infrastructure - Roads. Main Issues / Reason for Variance Work will be undertaken during this financial year for A8014 Kilbowie Road, Balloch Station Park and Ride and Bus Infrastructure Improvements. A814 Congestion measures contractor arrived on site mid-August. Works are progressing well and completion expected by the end of February 2023. The budget for Balloch Station will be used for consultancy works and planning application fees. Mitigating Action None required at this time. Anticipated Outcome Improve accessibility to Public Transport and improve journey time reliability. Main Issues / Reason for Variance Budget will be used for any service work carried out by Scottish Power before or after column replacement works. Mitigating Action None available at this time. Anticipated Outcome Intention is to complete works within budget. Anticipated Outcome Intention is to complete various surfacing works by the end of March 2023. Street lighting and associated electrical infrastructure WDC is responsible for the maintenance of 18,000 street lighting columns and associated illuminated signs and bollards. This budget is required for this infrastructure. Planned End Date Forecast End Date Planned End Date Forecast End Date Main Issues / Reason for Variance Roads Operations are progressing an extensive surfacing program and have a number of schemes to be completed by the end of the financial year. Mitigating Action None required at this time. Page 186
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 54 Project Life Financials 97 35 36% 97 (0) 0% Current Year Financials 55 0 0% 55 (0) 0% Project Description Project Manager Hugh Campbell Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 55 Project Life Financials 15,053 421 3% 15,053 (0) 0% Current Year Financials 1,524 0 0% 1,524 0 0% Project Description Project Manager Sharron Worthington Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-24 31-Mar-24 56 Project Life Financials 2,325 1,007 43% 2,325 0 0% Current Year Financials 693 0 0% 693 (0) 0% Project Description Project Manager Sharron Worthington Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-26 31-Mar-26 Planned End Date Forecast End Date Main Issues / Reason for Variance Budget to be used for a detailed design for Gruggies Burn. Mitigating Action None available at this time. Mitigating Action None available at this time. Anticipated Outcome Intention is to complete works within budget. Gruggies Burn Flood Prevention Commission of Gruggies Flood Prevention Scheme. Depot Improvement Works Improvement of WDC Roads Depot. Planned End Date Forecast End Date Main Issues / Reason for Variance This budget will be utilised for depot rationalisation works during the financial year. Main Issues / Reason for Variance Plans have been developed for carriageway widening and footway and cycleway construction between Strathleven and Lions Gate. There are ongoing discussions with Aggreko and other land owners in regards to access and land acquisition with construction commencing during 2022/2023. Mitigating Action None required at this time. Anticipated Outcome To provide an improved A813. Anticipated Outcome Project should be completed within budget. A813 Road Improvement Phase 1 A813 Road Improvement Phase 1. Planned End Date Forecast End Date Page 187
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 57 Project Life Financials 2,325 0 0% 2,325 0 0% Current Year Financials 0 0 0% 0 0 0% Project Description Project Manager Sharron Worthington Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-26 31-Mar-26 58 Project Life Financials 4,300 3,915 91% 4,300 (0) 0% Current Year Financials 498 113 23% 498 (0) 0% Project Description Project Manager Sharron Worthington Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-22 31-Mar-22 59 Project Life Financials 3,930 3,846 98% 3,846 (84) -2% Current Year Financials 84 0 0% 0 (84) -100% Project Description Project Manager Cameron Muir Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-22 31-May-21 60 Project Life Financials 1,039 651 63% 1,039 (0) 0% Current Year Financials 117 8 7% 117 (0) 0% Project Description Project Manager Cameron Muir Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-25 31-Mar-25 A813 Road Improvement Phase 2 A813 Road Improvement Phase 2. Planned End Date Forecast End Date Main Issues / Reason for Variance These works are not due to commence until Phase 1 has been completed. Anticipated Outcome Project should be completed within budget enhancing the A814 through Clydebank. A811 Lomond Bridge Upgrade of Lomond Bridge. Planned End Date Actual End Date Planned End Date Forecast End Date Main Issues / Reason for Variance Works substantially complete. Additional works as a compensation event started on Wallace street in July 2022. Mitigating Action None required at this time. Mitigating Action None required at this time. Anticipated Outcome To provide an improved A813. Clydebank Charrette, A814 Clydebank Charrette, A814 Main Issues / Reason for Variance Works to Lomond Bridge were completed May 2021. No further costs expected. Mitigating Action None required. Anticipated Outcome To provide an improved Lomond Bridge. Protective overcoating to 4 over bridges River Leven To overcoat 4 bridges over River Leven. Planned End Date Forecast End Date Main Issues / Reason for Variance Works to Renton footbridge are now complete and work will commence on the other bridges. Mitigating Action None available at this time. Anticipated Outcome To upgrade bridges within West Dunbartonshire. Page 188
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 61 Project Life Financials 80 0 0% 80 0 0% Current Year Financials 40 0 0% 40 0 0% Project Description Project Manager Hugh Campbell Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-25 31-Mar-25 62 Project Life Financials 350 0 0% 350 0 0% Current Year Financials 350 0 0% 350 0 0% Project Description Project Manager Hugh Campbell Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-25 31-Mar-25 63 Project Life Financials 300 0 0% 300 0 0% Current Year Financials 300 0 0% 300 0 0% Project Description Project Manager Raymond Walsh Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-25 31-Mar-25 These will be included in LUF2 and we await Scottish Government decision on application. Mitigating Action None required. Anticipated Outcome To upgrade traffic signals. Mitigating Action None required. Anticipated Outcome Resurface footways. Footway Resurfacing (RAMP) Footway resurfacing Planned End Date Forecast End Date Main Issues / Reason for Variance Projects and locations to be decided. Roads Plant Purchase of Roads plant and equipment. Planned End Date Forecast End Date Main Issues / Reason for Variance New Plant to be purchased Mitigating Action None required. Anticipated Outcome To purchase equipment. Traffic Signal Upgrades Upgrade Traffic Signals Planned End Date Forecast End Date Main Issues / Reason for Variance Page 189
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 64 Project Life Financials 1,000 0 0% 1,000 0 0% Current Year Financials 1,000 0 0% 1,000 0 0% Project Description Project Manager Hugh Campbell Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-25 31-Mar-25 65 Project Life Financials 100 0 0% 100 0 0% Current Year Financials 100 0 0% 100 0 0% Project Description Project Manager Raymond Walsh Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-25 31-Mar-25 66 Project Life Financials 1,000 0 0% 1,000 0 0% Current Year Financials 1,000 0 0% 1,000 0 0% Project Description Project Manager Hugh Campbell Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-25 31-Mar-25 Anticipated Outcome Renewal of street signage. Pavement improvements Various pavement improvement projects. Planned End Date Forecast End Date Main Issues / Reason for Variance Projects and locations to be decided. Mitigating Action None required. Anticipated Outcome Improvement to pavements. Various road improvement projects Planned End Date Forecast End Date Main Issues / Reason for Variance Projects and locations to be decided. Mitigating Action None required. Anticipated Outcome Improvements to roads Street sign renewal Renewal of street signs Planned End Date Forecast End Date Main Issues / Reason for Variance Surveys being undertaken to collate lists of locations and procurement of a contractor. Mitigating Action None required. Roads improvements Page 190
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 67 Project Life Financials 30 0 0% 30 0 0% Current Year Financials 30 0 0% 30 0 0% Project Description Project Manager Derek Barr Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 68 Project Life Financials 400 0 0% 400 0 0% Current Year Financials 400 0 0% 400 0 0% Project Description Project Manager Hugh Campbell Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23 69 Project Life Financials 1,980 0 0% 1,980 0 0% Current Year Financials 180 0 0% 45 (135) -75% Project Description Project Manager Kenny Lang Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-24 31-Mar-24 70 Project Life Financials 160 71 44% 160 0 0% Current Year Financials 80 71 88% 80 0 0% Project Description Project Manager Kenny Lang Chief Officer Gail MacFarlane Project Lifecycle 31-Mar-23 31-Mar-23Planned End Date Forecast End Date Main Issues / Reason for Variance Compactors have now been delivered. Mitigating Action None Required. Mitigating Action None Required. Anticipated Outcome Project delivered within budget. Replacement of compactors at Dalmoak civic amenity site The purchase of 2 compactors for the Council civic amenity site at Dalmoak. Waste Transfer Station The design, development and construction of a recycling and bulk waste transfer facility that will ensure all recycling material can be sorted and disposed off appropriately to ensure compliance with landfill ban in 2025. Anticipated Outcome Project delivered within budget. Water Safety To develop Water Safety Policy & enhance water safety equipment in WDC Planned End Date Forecast End Date Main Issues / Reason for Variance Expenditure on water safety equipment will be made as required throughout the year. Mitigating Action None required Anticipated Outcome Water safety equipment as required. Planned End Date Forecast End Date Main Issues / Reason for Variance Consultant project nearing completion and spend will be made thereafter. Main Issues / Reason for Variance Delivery delayed by the supplier. Full budget spend expected before the end of the financial year. Mitigating Action None available at this time. Anticipated Outcome Project delivered within budget. Purchase of gritters Purchase of gritters. Planned End Date Forecast End Date Page 191
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 71 Project Life Financials 1,110 232 21% 1,110 (0) 0% Current Year Financials 441 43 10% 441 0 0% Project Description Project Manager David Jones/ Julie McGrogan Chief Officer Laura Mason Project Lifecycle 31-Mar-29 31-Mar-29 72 Project Life Financials 376 335 89% 376 (0) 0% Current Year Financials 41 0 0% 41 0 0% Project Description Project Manager David Jones/ Julie McGrogan Chief Officer Laura Mason Project Lifecycle 31-Mar-23 31-Mar-23 73 Project Life Financials 20,241 15,299 76% 20,241 0 0% Current Year Financials 1,005 482 48% 1,005 0 0% Project Description Project Manager Sharon Jump/ Michelle Lynn/ Craig Jardine Chief Officer Laura Mason Project Lifecycle 31-Mar-24 31-Mar-24 Purchase of AV Equipment for Education. AV Equipment - Education Purchase of AV Equipment for Education. Planned End Date Digital Inclusion Increase the ratio of chrome book devices for most disadvantaged children and families and support for families with remote access. Planned End Date Forecast End Date Main Issues / Reason for Variance Additional devices have been ordered to increase the ratio of devices to pupils as part of a commitment towards a 1:1 device ratio. The project is on track to be fully spent in 2022/2023. Main Issues / Reason for Variance Although there is re-profiling of budget caused mainly by the academic year starting several months after the financial year the project is still on track to be completed by the planned end date. Mitigating Action None available at this time. Anticipated Outcome Forecast End Date Planned End Date Forecast End Date Main Issues / Reason for Variance Renton Campus: The overall construction is programmed to complete by 25 July 2022. (Previously April 2022 but re-programmed due to 13 week COVID-19 site closure). Phase 1 of the project was handed over on Monday 18 October 2021, with pupils returning to the new school campus on Wednesday 20 October 2021. Phase 2 on schedule to be handed over 25th July 2022. There is an acceleration of spend due to part retention being paid 2022/2023. St Mary's: anticipated commencement of MUGA is September 2022 which means new build kitchen will slip to June 2023. Pitch onsite September and dining hall will be July 2023 as cannot be onsite at the same time as pitch works. Additional ASN Provision: temporary accommodation for Choices will be in place by September and plans for rebuild extension ongoing. Additional scoping in respect of vacant space at Choices and former Riverside ELC ongoing. Skills School: scoping ongoing. Balloch Campus, Lomond Base, artificial grass installation is complete. Mitigating Action None required Mitigating Action None required at this time. Anticipated Outcome Increase the Chromebook ratio for most disadvantaged children. Schools Estate Improvement Plan Improvement of Schools Estate. Anticipated Outcome Project delivered within budget and to the revised programme, following COVID-19. Page 192
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 74 Project Life Financials 694 251 36% 694 0 0% Current Year Financials 504 62 12% 504 0 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Laura Mason Project Lifecycle 31-Mar-24 31-Mar-24 75 Project Life Financials 750 638 85% 750 0 0% Current Year Financials 113 1 1% 113 (0) 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Laura Mason Project Lifecycle 31-Mar-23 31-Mar-23 76 Project Life Financials 5,508 5,505 100% 5,508 (0) 0% Current Year Financials 3 0 0% 3 0 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Laura Mason Project Lifecycle 31-Mar-22 30-Apr-22 Bringing together Central Support Services which will include relocation of Choices Programme. Free School Meals Provision of Capital Funding from Scottish Government to implement free school meal initiative. Planned End Date Forecast End Date Main Issues / Reason for Variance Project is complete other than snagging works which can only be completed when school is closed however project end date is still on target. Additional budget required in relation to electrical phasing which was unknown at the time of project inception. Additional funding granted for Free School Meals Expansion. Mitigating Action None available at this time. Anticipated Outcome Project delivered within amended timescales. Choices Programme - to assist young people who require additional support Main Issues / Reason for Variance Project complete and await final charges. Mitigating Action None required. Anticipated Outcome Project delivered on time and within budget Anticipated Outcome Project delivered on budget. Schools Estate Refurbishment Plan Completion of condition surveys has been carried out to identify works required to bring various schools from Condition C to Condition B. Planned End Date Forecast End Date Planned End Date Forecast End Date Main Issues / Reason for Variance A new contractor has been appointed and looking at the programme of works. Mitigating Action None available at this time. Page 193
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 77 Project Life Financials 8,748 7,990 91% 8,748 (0) 0% Current Year Financials 795 37 5% 795 (0) 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Laura Mason Project Lifecycle 31-Mar-23 31-Mar-23 78 Project Life Financials 1,150 1,144 100% 1,150 (0) 0% Current Year Financials 26 20 78% 26 0 0% Project Description Project Manager Michelle Lynn/ Craig Jardine Chief Officer Angela Wilson Project Lifecycle 31-Mar-22 30-Apr-22 79 Project Life Financials 1,053 512 49% 1,053 0 0% Current Year Financials 1,053 512 49% 969 (84) -8% Project Description Project Manager Julie Slavin Chief Officer Beth Culshaw Project Lifecycle 31-Mar-23 31-Mar-23 Main Issues / Reason for Variance Provision of aids and adaptations to clients as required. Mitigating Action None available at this time Anticipated Outcome Provision of adaptations and equipment to HSCP clients as anticipated. Anticipated Outcome To create new community facilities with additional space for early years provisions. Aids & Adaptations - Special Needs Adaptations & Equipment Reactive budget to provide adaptations and equipment for HSCP clients. Planned End Date Forecast End Date Anticipated Outcome Dalmonach CE Centre To create new community facilities with additional space for early years provisions. Early Years Early Learning and Childcare Funding Early learning and childcare funding awarded to West Dunbartonshire Council to facilitate the expansion in entitlement to funded ELCC to 1140 hours from August 2020. Planned End Date Forecast End Date Main Issues / Reason for Variance Works progressing and budget spend anticipated in 2022/2023. Planned End Date Forecast End Date Main Issues / Reason for Variance Project complete and final account to be agreed. Mitigating Action None required. Mitigating Action None required at this time. The project will be completed to deliver the requirements of the Early Years expansion plans. Page 194
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 80 Project Life Financials 73 51 70% 73 0 0% Current Year Financials 73 51 70% 73 0 0% Project Description Project Manager Julie Slavin Chief Officer Beth Culshaw Project Lifecycle 31-Mar-23 31-Mar-23 81 Project Life Financials 1,422 647 46% 1,422 0 0% Current Year Financials 1,422 647 46% 900 (522) -37% Project Description Project Manager Patricia Kerr Chief Officer Victoria Rogers Project Lifecycle 31-Mar-23 31-Mar-23 82 Project Life Financials 60 50 83% 60 0 0% Current Year Financials 17 7 40% 17 0 0% Project Description Project Manager Patricia Kerr Chief Officer Victoria Rogers Project Lifecycle 31-Oct-22 31-Oct-22 None available at this time Anticipated Outcome Renovation of Unit 11 Levenside Business Court Main Issues / Reason for Variance The construction of an office and storage refit with a mezzanine floor within an existing workshop unit which will include associated finishes works and electrical installations. The multi-purpose new office space will accommodate two members of staff with an office base and allow space to set up a training facility indoors. Project expected to be completed by 31 March 2023. Mitigating Action Anticipated Outcome Most of the capital allocated to HSCP (approx £500k) will be used to review/replace the current case management systems and will be rephased in line with the project plan. Supply chain delays may continue to impact delivery and spend. Planned End Date Forecast End Date Main Issues / Reason for Variance MOB replacements continues but many on hold due to dependency on ITune module of 365. Model change from HP assessed and updating Webuy catalogue in progress. Assessing the next batch of Chromebook requirements is continuing with Education. Mitigating Action Continue to escalate and meet framework suppliers to confirm delivery lead times. Investigate other procurement routes as well as adjust the project scope to replace where stock allows. ICT Modernisation This budget is to facilitate ICT infrastructure and modernise working practices. Mitigating Action None available at this time. Anticipated Outcome Technical aspect of the project is complete and WDC assisting with user testing. Delayed but on budget. Internet of Things Asset Tracking Asset Tracking. Planned End Date Forecast End Date Main Issues / Reason for Variance Technical aspect of the project is complete and WDC are assisting with user testing. Delayed but on budget. Criminal Justice Adaptations Renovation of Unit 11 Levenside Business Court. Planned End Date Forecast End Date Page 195
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 8 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF PROJECTS AT GREEN ALERT STATUS PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 83 Project Life Financials 1,297 394 30% 1,297 0 0% Current Year Financials 1,297 394 30% 800 (497) -38% Project Description Project Manager Brian Miller/ Patricia Kerr Chief Officer Victoria Rogers Project Lifecycle 31-Mar-23 31-Mar-23 84 Project Life Financials 450 237 53% 450 0 0% Current Year Financials 173 59 34% 150 (23) -13% Project Description Project Manager Dorota Piotrowicz/ Patricia Kerr Chief Officer Victoria Rogers Project Lifecycle 30-Sep-23 30-Sep-23 85 Project Life Financials 3,502 72 2% 3,502 0 0% Current Year Financials 3,502 72 2% 3,502 0 0% Project Description Project Manager N/A Chief Officer N/A Project Lifecycle 31-Mar-23 31-Mar-23 ICT Security & DR The project is for the enhancement of security systems, server replacement and the update of corporate applications to ensure compliance with 15/16 PSN requirements, to enhance the disaster recovery capabilities of WDC. Main Issues / Reason for Variance Project spend relates to internal and external resources to implement new systems, processes and user training skills. Mailbox migration aspect of the project delayed until cloud backup is implemented (procurement complete and implementation planning in progress). Implementation of device management functionality in 365 is live for corporate devices but full rollout is linked to mailbox migrations. Information governance work stream in progress. Project resourcing issues continue due to competing demands and competitive environment for recruitment. Mitigating Action Continue to monitor the various work streams to accelerate aspects of the project where possible if suppliers can provide resource. Continue to assess where a) internal skills have developed, b) external resource is needed for introducing new functionality in the future to inform future bidding cycles and c) temporary recruitment/secondment is required. Anticipated Outcome Anticipated Outcome Anticipate two thirds of the budget being spent this financial year due to supply chain issues. Additionally, some works are planned for the last quarter of the year for Public Sector Network (PSN) annual compliance submission. 365 Implementation Project services to delivery Microsoft 365 Implementation including 3rd party supplier, training, technical consultancy etc. Planned End Date Forecast End Date Planned End Date Forecast End Date Main Issues / Reason for Variance Storage Area Network (SAN) installation ongoing. Switch replacement completed. Server replacement at scoping stage. Wifi access equipment scoping for end of life items. Scoping for secondary storage (data domains) underway. Indications are that global supply chain issues will impact Wifi and storage lead times. Mitigating Action Monitor supply chain issues. Continue tendering processes and implementation stages for each project. None required. Anticipated Outcome Direct project support costs allocated as appropriate. Direct Project Support Business support cost such as reallocation of architects and project support at year end. Planned End Date Forecast End Date Main Issues / Reason for Variance Salary Capitalisation in 2022/2023. Mitigating Action Majority of budget spent but delayed. Page 196
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 9 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF RESOURCES PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 1 Project Life Financials (141) (99) 70% (419) (278) 197% Current Year Financials (790) 0 0% (790) 0 0% Project Description Project Lifecycle 31-Mar-22 31-Mar-22 2 Project Life Financials (75,127) (32,392) 43% (76,371) (1,244) 2% Current Year Financials (5,574) (3,536) 63% (5,574) 0 0% Project Description Project Lifecycle 31-Mar-30 31-Mar-30 3 Project Life Financials (35,184) (4,705) 13% (35,184) 0 0% Current Year Financials (959) (126) 13% (959) 0 0% Project Description Project Lifecycle 31-Mar-26 31-Mar-26 4 Project Life Financials (13,786) (5,396) 39% (16,286) (2,500) 18% Current Year Financials (6,823) (1,657) 24% (7,804) (981) 14% Project Description Project Lifecycle 31-Mar-22 31-Mar-22 31 October 2022 Budget Details Project Life Financials Application of resources is dependent on capital project progressing in year as planned. Spend to Date Forecast Variance Resources Carried Forward These are resources that have been received in previous years relating to Turnberry Homes, Town Centre Fund Grant, Digital Inclusion, Clydebank Can on the Canal, Internet of Things Asset Tracking and Auld Street Bond. Planned End Date Forecast End Date Main Issues / Reason for Variance Planned End Date Forecast End Date Mitigating Action None required at this time. Anticipated Outcome Application of resources held on balance sheet as at 31 March 2022 as appropriate. General Services Capital Grant This is a general grant received from the Scottish Government in relation to General Services capital spend Application of resources is dependent on capital project progressing in year as planned. Main Issues / Reason for Variance General services capital grant is anticipated to be received as forecast. Mitigating Action None required at this time Anticipated Outcome General services capital grant is anticipated to be received as forecast. Ring Fenced Government Grant Funding This is ring fenced grant funding which is primarily anticipated to be received from the Scottish Government and relates to Cycling, Walking, Safer Streets, Regeneration Placed Based Investment Programme, Early Years, Gruggies Burn Flood works, Early Years funding, City Deal and Town Centre Fund. Planned End Date Forecast End Date Main Issues / Reason for Variance None required. Mitigating Action Mitigating actions are detailed within the appropriate status updates. Anticipated Outcome Application of resources as appropriate. Match Funding / Other Grants and Contributions Match Funding / Other Grants and Contributions Planned End Date Forecast End Date Main Issues / Reason for Variance Application of resources is dependent on capital project progressing in year as planned. Mitigating Action Anticipated Outcome Match funding received. Page 197
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 9 GENERAL SERVICES CAPITAL PROGRAMME ANALYSIS OF RESOURCES PERIOD END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Forecast Variance Resources Carried Forward5 Project Life Financials (25,429) (77) 0% (26,506) (1,077) 4% Current Year Financials 0 0 #DIV/0! 0 0 #DIV/0! Project Description Project Lifecycle 31-Mar-26 31-Mar-26 6 Project Life Financials (124,731) (52,764) 42% (118,068) 6,663 -5% Current Year Financials (53,938) (1,507) 3% (29,663) 24,275 -45% Project Description Project Lifecycle 31-Mar-26 31-Mar-26 7 Project Life Financials (73) 0 0% (73) 0 0% Current Year Financials (73) 0 0% (73) 0 0% Project Description Project Lifecycle 31-Mar-22 31-Mar-22 Capital receipts received. Capital Receipts These are capital receipts that are anticipated from sales of land and buildings both as part of the normal disposal programme and also as part of the business case investment in office rationalisation, new school building and new care home development Planned End Date Forecast End Date Main Issues / Reason for Variance Receipts budgets are based on assumptions in relation to the sale of various sites. Not all sales will be realised this financial year. The main ones being OLSP, St James retail park, Dalreoch Care Home. Queen's Quay, Levenbank Terrace, Heather Avenue, Crosslet House. As agreed at Council receipts received are used firstly to pay for principle and premiums. Mitigating Action While market conditions are out with officers control all potential receipts will be explored. Anticipated Outcome This is capital spend which is funded by revenue budgets Prudential Borrowing Prudential borrowing is long term borrowing from financial institutions that has been approved for the purposes of funding capital expenditure Planned End Date Forecast End Date Main Issues / Reason for Variance Prudential borrowing is impacted by programme delivery therefore mitigating action is detailed in the red and amber analysis. Mitigating Action None available at this time. Anticipated Outcome While prudential borrowing requirement is likely to be less than budgeted in the current financial year this is anticipated to catch up over the programme life. CFCR Anticipated Outcome CFCR applied to relevant capital project. Planned End Date Forecast End Date Main Issues / Reason for Variance Renovation of Unit 11 Levenside Business Court Mitigating Action None required at this time. Page 198
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer - Resources Council: 21 December 2022 ___________________________________________________________________ Subject: Housing Revenue Account Budgetary Control Report to 31 October 2022 (Period 7) 1. Purpose 1.1 The purpose of the report is to provide members with an update on the financial performance to 31 October 2022 (Period 7) of the HRA revenue and capital budgets for 2022/23. 2. Recommendations 2.1 Members are asked to: i) note the revenue analysis shows projected adverse variances of £1.298m however this will be offset by reducing the contribution from revenue to capital (CFCR) therefore netting to a revenue break even position ; and ii) note the net projected annual position in relation to the capital plan is highlighting an in-year adverse variance of £26.444m (40.31%) which is made up of re-profiling of £28.346m (43.21%) and overspend of £1.902m (2.9%) as detailed in Appendix 4. 3. Background Revenue 3.1 At the meeting of West Dunbartonshire Council on 9 March 2022, Members agreed the revenue estimates for 2022/23 and a total budget of £47.018m. Capital 3.2 At the meeting of Council on 9 March 2022, Members also agreed the updated Capital Plan for 2022/23 which has been augmented by re-profiling and from 2021/22 and budget adjustment to produce a total planned spend for 2021/22 of £65.604m. 4. Main Issues Revenue 4.1 The budgetary position for HRA Revenue is provided in Appendix 1 with information on projected variances valued at more than £0.050m being provided as Appendix 2.This shows a net break even position which is made ITEM 12 Page 199
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up of projected adverse variances of £1.298m, offset by reducing the contribution from revenue to capital (CFCR) by the same amount therefore netting to a revenue break even position. Due to the spend reprofiling shown below in Capital (4.3), the CFCR which is budgeted in HRA revenue can be reduced without any concerns around the ability to fund the Capital spend in 2022/23. Capital 4.2 The HRA capital summary position is shown in Appendix 3. Information on projects that are highlighted as being within the Red category is provided in Appendix 4 and Appendix 5 provides information on the projects at Green. A summary of anticipated resources is shown in Appendix 6. The analysis shows that there is currently a projected in-year adverse variance of £26.444m. 4.3 From the analysis within the appendices it can be seen that the projects with forecast material slippage, as listed as follows: Project Name Slippage (£m) Doors/window component renewals 1.000 Affordable Housing Supply Programme 27.673 Reasons for slippage are explained in Appendix 4. 5. People Implications 5.1 There are no people implications. 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) Page 200
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8.1 The report is for noting and therefore no Equalities Impact Assessment was completed for this report. 9. Consultation 9.1 The views of both Housing management and Legal services have been requested on this report and both have advised there are neither any issues nor concerns with the proposal. 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: 21 November 2022 ___________________________________________________________________ Person to Contact: Janice Rainey - Business Unit Finance Partner (HEED), 16 Church Street, Dumbarton, G82 1QL, telephone: 01389 737704, e-mail janice.rainey@west- dunbarton.gov.uk Appendices: Appendix 1 - Budgetary Position (Revenue) Appendix 2 - Variance analysis (Revenue) Appendix 3 - Budgetary Position (Capital) Appendix 4 - Variance analysis Red Projects (Capital) Appendix 5 - Variance analysis Green Projects (Capital) Appendix 6 - Resources (Capital) Appendix 7 - Analysis of Affordable Housing Supply Programme (Capital) Background Papers: None Wards Affected: All Page 201
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 HRA REVENUE BUDGETARY CONTROL 2022/23 PERIOD END DATE Subjective Summary Total Budget 2022/23 £000 Spend to Date 2022/23 £000 Forecast Spend £000 Annual RAG Status Employee Costs 6,690 3,454 6,989 299 4% Property Costs 2,030 1,008 1,969 (61) -3% Transport Costs 112 75 129 17 0% Supplies, Services And Admin 395 131 382 (13) -3% Support Services 2,724 0 2,613 (111) -4% Other Expenditure 532 544 580 48 9% Repairs & Maintenance 12,942 7,472 13,231 289 2% Bad Debt Provision 1,060 538 923 (137) -13% Void Loss (Council Tax/Lost Rents) 857 1,269 1,727 870 102% Loan Charges 12,175 6,088 12,309 134 1% CFCR 7,501 3,750 6,203 (1,298) -17% Total Expenditure 47,018 24,329 47,055 37 0% House Rents 45,215 25,465 45,213 2 0% Lockup Rents 210 113 213 (3) -1% Factoring/Insurance Charges 1,316 760 1,302 14 1% Other rents 115 57 116 (1) -1% Interest on Revenue Balance 55 18 30 25 45% Transfer from Reserves 0 0 60 (60) 0% Miscellaneous income 107 35 121 (14) -13% Total Income 47,018 26,448 47,055 (37) 0% Net Expenditure 0 (2,119) 0 0 Forecast Variance 2022/23 £000 % 31 October 2022 Page 203
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 October 2022 PERIOD 7 Budget Forecast Spend RAG Status £000 £000 £000 % EMPLOYEE COSTS 6,690 6,989 299 4% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % PROPERTY COSTS 2,030 1,969 (61) -3% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % SUPPORT SERVICES 2,724 2,613 (111) -4% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % REPAIRS & MAINTENANCE 12,942 13,231 289 2% Main Issues Mitigating Action Anticipated Outcome This budget covers electricity, gas, rates, rents, cleaning and insurance costs. Variance Narrative A favourable variance is expected due to the revised probable calculations for utilities, based on 21/22 actual outturn plus required inflation rates. A year end underspend is anticipated Variance Analysis Subjective Analysis forecast Variance Subjective Description It is not possible to mitigate against an agreed pay award however managers will continue to review any possible reductions in costs where possible to try and partially offset some of this The adverse variance within Repairs & Maintenance is due to additional work being carried out to catch up with both jobbing repairs and void repairs. Additional capacity to do this has been achieved through use of sub contractors as well as continuing with HMTA work so in effect more than a typical year worth of work is expected to be completed in 2022/23, therefore the cost will be higher than usual. Variance Narrative Variance Narrative This budget covers all repair and maintenance expenditure to houses and lockups Subjective Description A year end underspend is anticipated A year end overspend is anticipated In order to get back to pre - COVID levels of voids and repairs , it is considered necessary to pursue this increased activity for 2022/23 albeit at a financial cost . It should be noted that in previous years, costs were lower than budgeted due to lower activity in lockdown / COVID restrictions . Budget Details This budget covers all employees charged directly to the HRA including caretakers. Variance Narrative This adverse variance is mainly due to the agreed pay award being higher than the 2% budgeted . Also £60K of this adverse variance relates to the increased pay awarded to caretakers following job evaluation panel on 7 April. This £60K is offset by a transfer from HRA service improvement reserve which is shown in the income section . A favourable variance is expected with the assumption that the 2022/23 forecast outturn for support services is expected to be in line with the 2021/22 outturn adjusted for pay uplifts etc. This charge is calculated each year end based on HRA's percentage usage of the total cost of WDC support services. The 2022/23 HRA budget was set before this 2021/22 outturn was known so was based on 2020/21 charge which was higher. Service Description Budget Details Variance Analysis Subjective Analysis forecast Variance Budget Details Variance Analysis Subjective Analysis forecast Variance A year end overspend is anticipated This budget covers central support recharges to the HRA Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Description Page 204
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2022/23 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 October 2022 PERIOD 7 Budget Forecast Spend RAG Status £000 £000 £000 % BAD DEBT PROVISION 1,060 923 (137) -13% Main Issues Mitigating Action No mitigating action is required. Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % VOID LOSS 857 1,727 870 102% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % LOAN CHARGES 12,175 12,309 134 1% Main Issues Mitigating Action Anticipated Outcome Budget Forecast Spend RAG Status £000 £000 £000 % CFCR 7,501 6,203 (1,298) -17% Main Issues Mitigating Action Anticipated Outcome Variance Narrative The main reason for this variance is interest payments being higher than anticipated at time of budget setting. None available A year end oversend is anticipated Subjective Analysis forecast Variance Service Description Loan Charges is made up of repayments of principle sums, and the payments of interest and expenses Budget Details Variance Analysis A year end overspend is anticipated Variance Narrative The Bad Debt Provision expected to be required for 2022/23 is less than estimated at time of budget setting, resulting in a favourable variance. This assumes that the provision required in 2022/23 will be similar to the 2021/22 provision. Budget Details Variance Analysis Subjective Analysis forecast Variance Service Description This budget allows for the provision for bad and doubtful debts to be maintained at an appropriate level A year end underspend is anticipated Service Description This budget covers the contribution from revenue to Capital Variance Narrative In order to offset the cost pressures on the revenue HRA in 2022/23 , it will be necessary to reduce the contribution to Capital to allow the HRA account to break even. Due to a large part of the planned Capital spend on new builds being reprofiled into 2023/24 this reduced contribution will not create any issues for the remaining Capital programs being delivered in 2022/23. None available Budget Details Variance Analysis Subjective Analysis forecast Variance Subjective Analysis forecast Variance Service Description A year end underspend is anticipated Variance Narrative The main reason for the projected adverse variance relates to the number of void properties being higher than expected at time of budget setting. The budget was set on the assumption that backlogs following COVID delays in getting voids turned around would be resolved early in year however the numbers continue to be high . Budget Details Variance Analysis A void working group has been reviewing the issues and have been implementing actions and working with Housing Maintenance managers to improve the situation and it is expected that the void figures will start to decrease significantly over the next few months. This budget covers the rents lost on void houses and lockups and the cost of council tax on void properties. Page 205
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APPENDIX 3 WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME OVERALL PROGRAMME SUMMARY MONTH END DATE PERIOD 7 Spend to Date Spend to Date £000 £000 Red 6 22.2% 5,056 38.7% 6 22.2% 5,056 38.7% Amber 0 0.0% 0 0.0% 0 0.0% 0 0.0% Green 21 77.8% 8,017 61.3% 21 77.8% 8,017 61.3% 27 100% 13,073 100% 27 100% 13,073 100% Budget Spend to Date Forecast Spend Forecast Variance Budget Spend to Date Forecast Spend Forecast Variance Reprofiled Over/ (Under) £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 136,980 5,056 139,063 2,083 46,191 5,056 19,927 (26,264) (28,346) 2,083 0 0 0 0 0 0 0 0 0 0 79,140 8,017 78,959 (181) 19,413 8,017 19,232 (181) 0 (181) 216,120 13,073 218,022 1,902 65,604 13,073 39,159 (26,444) (28,346) 1,902 216,120 13,073 218,022 (1,902) 65,604 13,073 39,159 26,444 0 0 0 0 0 0 0 0 Projects are on target both in relation to overall budget and the forecast stages in the project life cycle and no issues are anticipated at this time 31 October 2022 Project Status Analysis Project Life Status Analysis Current Year Project Status Analysis Number of Projects at RAG Status % Projects at RAG Status % Project Spend at RAG Status Number of Projects at RAG Status % Projects at RAG Status % Project Spend at RAG Status Red Projects are forecast to be overspent and/or experience material delay to completion Amber Projects are either at risk of being overspent and/or delay in completion (although this is unquantifiable at present) or the project has any issues that require to be reported at this time Green Project Status Analysis Project Life Financials Current Year Financials Red TOTAL RESOURCES NET EXPENDITURE Projects are forecast to be overspent and/or significant delay to completion Amber Projects are either at risk of being overspent and/or delay in completion (although this is unquantifiable at present) or the project has any issues that require to be reported at this time Green Projects are on target both in relation to overall budget and the forecast stages in the project life cycle and no issues are anticipated at this time TOTAL EXPENDITURE Page 206
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 HRA CAPITAL PROGRAMME ANALYSIS OF RED PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 1 Project Life Financials 10,963 398 4% 10,963 0 0% Current Year Financials 2,500 398 16% 1,500 (1,000) -40% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 2 Project Life Financials 566 134 24% 658 92 16% Current Year Financials 108 134 124% 200 92 86% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 3 Project Life Financials 5,092 1,467 29% 6,209 1,117 22% Current Year Financials 969 1,467 151% 2,086 1,117 115% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Doors/window component renewals Doors/Windows Component Renewals Planned End Date Forecast End Date Main Issues / Reason for Variance Officers working to meet revised targets. Additional external support has been programmed in from August onwards to assist with window installs, feedback from officers have highlighted challenges with resource levels from back-up contractor. This will be monitored closely, however approximately £1m will need to reprofiled into 23/24. Mitigating Action Building Services actively redeploying internal resurces to assist with installs and working with external support to maximise contribution. Anticipated Outcome Anticipated to meet reduced forecast spend Main Issues / Reason for Variance Projected to exceed budget, this is necessary work to meet demand and comply with legislation. Mitigating Action None available. Anticipated Outcome Budget to overspend. Statutory/regulatory compliance works (lifts/electrical/legionnella/fire etc) This budget will be used to upgrade / replace components / installations in order to comply with the relevant standards / legislation / health and safety in relation to housing stock. Planned End Date Forecast End Date Mitigating Action None available since essential spend. Anticipated Outcome Budget to overspend. Heating improvement works Carry out works to renew inefficient boilers/full systems as identified from the stock condition survey and renewal of obsolete/damaged boilers. Planned End Date Forecast End Date Main Issues / Reason for Variance An overspend is anticipated on this budget, as experienced in recent years as demand has exceeded expectations. Current progress continues this trend. Due to the nature of this project (ensuring heating and hot water availability) there is no option for a conscious reduction of installs. Page 207
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 HRA CAPITAL PROGRAMME ANALYSIS OF RED PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 4 Project Life Financials 8,384 1,064 13% 9,384 1,000 12% Current Year Financials 2,000 1,064 53% 3,000 1,000 50% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 5 Project Life Financials 5,092 775 15% 5,292 200 4% Current Year Financials 969 775 80% 1,169 200 21% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 6 Project Life Financials 106,883 1,219 1% 106,556 (326) 0% Current Year Financials 39,645 1,219 3% 11,972 (27,673) -70% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 Sites to be reprofiled £m Aitkenbar Primary School (374) Clydebank East (13,754) Queens Quay Site B (629) Queens Quay Site C (878) Pappert (4,481) Bank Street (575) Willow Park Phase 1 (1,989) Mount Pleasant (2,420) Future New build sites (2,246) TOTAL OF ALL PROJECTS (27,346) Planned End Date Forecast End Date Main Issues / Reason for Variance Void works to continue into 22/23 to bring void properties up to a lettable standard. The high number of voids has led to a higher than expected demand for this budget, resulting in a projected overspend in 22/23. Mitigating Action None available at this time Void house strategy programme Spend on Void Properties to bring them up to letting standard Anticipated Outcome Void properties to be brought up to lettable standard Environmental renewal works, paths/fences/walls/parking area's Environmental renewal works, paths/fences/walls/parking areas Anticipated Outcome Full budget spend, with overspend anticipated. Planned End Date Forecast End Date Main Issues / Reason for Variance An overspend is anticipated in 22-23 due to level of demand and material costs being higher than expected at time of budget Mitigating Action None available at this time. Main Issues / Reason for Variance Progress will continue to be monitored as the year progresses. The £27.673 variance is made up of £0.326m underspend and a reprofiling of £27.346m into 2023/24 onwards . Summary of reprofiled sites together with site specific updates as follows:- Affordable Supply Programme Affordable Housing Supply Programme Planned End Date Forecast End Date Page 208
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 HRA CAPITAL PROGRAMME ANALYSIS OF RED PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance TOTAL OF ALL PROJECTS Project Life Financials 136,980 5,056 4% 139,063 2,083 2% Current Year Financials 46,191 5,056 11% 19,927 (26,264) -57% Clydebank East - 88 units to be completed on the site. Project spend now requires to be reprofiled. Anticipated site start of June 2022 has been delayed as a result of assessing remediation strategy options, while the exercise has proved to be a lengthy process the options have identified an affordable method which is estimated to be around £9m less costly than the original proposed method. We expect revised tender costs early in November and anticipate a site start before the end of the year. The remediation methods will take longer and will be the first phase of the development and the construction of the new homes will likely commence in April 2023. £13.754m of the £18.754m current year budget will be required to be reprofiled into 23/24. Queens Quay Site B - 29 units now completed on the site. Project spend now requires to be reprofiled. Retention figure of £0.629m budgeted to be paid out in 2022/23 will now be reprofiled to be paid in 2023/24 to allow time to finalise account. Queens Quay Site C – 20 units to be completed on site. Project spend now requires to be reprofiled. The budget provision is to acquire additional land within Queens Quay to enhance the Site C proposals, the discussions with CRL/Rydens have been protracted but we intend to make an offer shortly subject to the DV valuation being received. This will be reprofiled into 2022/23 (£1.878m). Pappert - 27 units to be completed on site . Projects spend now requires to be reprofiled. The anticipated site start of October 2022 will not be realised due to a number of factors that have caused the project to miss a number of milestones, notably a longer than anticipated procurement process and the subsequent delay in developing a contract/tender preparation forced us to miss a pricing window from the contractor, we anticipate a new cost price in November with a site start of March 23. It is expected £0.500m will be paid out in 2022/23 withthe remaining £4.481m to be reprofiled into 2023/24 Future New Build gap sites – Project spend now requires to be reprofiled. Ongoing work to acquire private and Council owned sites to finalise wider strategy . Expected that there will be spend of £0.500m this during 2022/23 so £2.246m will be reprofiled into 2023/24. Aitkenbar - Fully complete. Project spend now requires to be reprofiled. Retention figure of £0.374m budgeted to be paid out in 2022/23 will now be reprofiled to be paid in 2023/24 to allow time to finalise account. Anticipated Outcome Project will still complete and will meet revised spend profiles . Bank Street - 20 units to be completed on the site. Project spend needs reprofiled due to wider strategic reasons and potential reprovisioning of sheltered accommodation which will require consultative exercise . Revised estimated start date July 2023, estimated completion January 2025. Project is currently at feasibility stage. Likely outturn for 22/23 for the Bank Street site is expected to be circa. £0.420m with £0.575m therefore required to be reprofiled to 23/24. Willox Park Phase1 - 17 units to be completed on site. Project spend now requires to be reprofiled . Pre planning discussions were more involved than anticipated and required some re designing which has resulted in delay to estimated start date from January 2023 to June 2023 with estimated completion May 2024. Demolition complete, and site investigation under way. Officers ready to submit to for full planning. Tender application expected to go out April 23. At this stage spend in the current year is expected to be £0.400m against budget of £2.390m resulting in reprofiling rquirement of £1.989m. Mount Pleasant - 25 units to be completed on site. Project spend now requires to be reprofiled. Unanticipated longer time frame for demolition (9 months) has delayed this project by 6 months, now estimating a March 2023 site start, although demolitions are planned for next month. £0.100m expected costs in 22/23, resulting in reprofiling requirement of £2.420m to 23/24. Bonhill Gap Site - 32 units to be completed on site. Estimated start date July 2023 and estimated completion September 2024. The project is currently at design stage with spend of £0.420m expected in 22/23 . No reprofilng required . Mitigating Action Staff will work closely with all stakeholders to try and ensure timely resolutions of issues as they arise. Page 209
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APPENDIX 5 WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME ANALYSIS OF GREEN PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 1 Project Life Financials 2,487 253 10% 2,487 0 0% Current Year Financials 474 253 53% 474 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 2 Project Life Financials 2,266 187 8% 2,266 0 0% Current Year Financials 431 187 43% 431 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 3 Project Life Financials 1,557 30 2% 1,557 0 0% Current Year Financials 664 30 5% 664 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 4 Project Life Financials 271 0 0% 271 0 0% Current Year Financials 185 0 0% 185 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 31 October 2022 Budget Details Project Life Financials Spend to Date Variance Special needs adaptations None available at this time Anticipated Outcome Full budget spend, possibility of overspend. Capitalised minor works Gypsy/ Traveller Site improvements Planned End Date Forecast End Date Adaptations to Housing for Special Needs Planned End Date Forecast End Date Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Possibility of overspend due to price increases and demand levels rising. Mitigating Action Better Homes Priority Budget Priority projects as prioritised by the Better Homes Group Planned End Date Forecast End Date Main Issues / Reason for Variance A number of priority initiatives, supported by the Better Homes Project Board, are being investigated and are envisaged to have a positive impact on the current council housing stock and budget, with works expected to progress in 22/23. Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Mitigating Action None required Anticipated Outcome Full budget spend Planned End Date Forecast End Date Main Issues / Reason for Variance No issues. Development of QL system to carry on through 22/23. Mitigating Action None required Mitigating Action None required Anticipated Outcome Full budget spend QL Development This budget relates to the costs associated with the development of the Integrated Housing Management System Anticipated Outcome Full budget spend Page 210
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WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME ANALYSIS OF GREEN PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 5 Project Life Financials 170 0 0% 170 0 0% Current Year Financials 40 0 0% 40 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 6 Project Life Financials 17 0 0% 17 0 0% Current Year Financials 17 0 0% 17 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 7 Project Life Financials 36 0 0% 36 0 0% Current Year Financials 36 0 0% 36 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 8 Project Life Financials 192 0 0% 192 0 0% Current Year Financials 192 0 0% 192 0 0% Project Description Project Lifecycle 31-Mar-23 31-Mar-23 Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Mitigating Action None required Anticipated Outcome Full budget spend Gypsy Travellers Site Gypsy/ Traveller Site improvements Planned End Date Forecast End Date Mitigating Action None required Anticipated Outcome Full budget spend Redployable CCTV Cameras Purchase of 5 redeployable CCTV cameras for Housing use Community Safety Projects Community Safety Projects Planned End Date Forecast End Date Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Anticipated Outcome Full budget spend Airport Noise Noise Insulation Project Planned End Date Forecast End Date Planned End Date Forecast End Date Main Issues / Reason for Variance 5 redeployable cameras to be purchased as planned. No issues anticipated. Mitigating Action None required Main Issues / Reason for Variance Awaiting receipt of the airport scheme outline from Glasgow Airport before works can planned. Project expected to make progression in 22/23. Mitigating Action None required Anticipated Outcome Full budget spend Page 211
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WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME ANALYSIS OF GREEN PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 9 Project Life Financials 19,841 0 0% 19,841 0 0% Current Year Financials 4,455 0 0% 4,455 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 10 Project Life Financials 17,607 4,076 23% 17,607 0 0% Current Year Financials 4,955 4,076 82% 4,955 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 11 Project Life Financials 257 9 4% 257 0 0% Current Year Financials 75 9 12% 75 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 Targeted SHQS /EESSH compliance works This budget is to focus on work required to maintain the SHQS compliance and energy efficiency with WDC housing stock. Planned End Date Forecast End Date Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Current progress is slightly behind cumulative monthly targets, work is progressing and additional resources will be coming on board shortly with new framework contractor. Planned End Date Forecast End Date Main Issues / Reason for Variance Currently behind monthly targets, however tentatively anticipated to meet full spend and targets. Current tiled roof progress is behind cumulative monthly targets but overall output is anticipated to increase with the new metal and flat roof framework contract coming on board contributing to a wider range of roof types being completed. Mitigating Action None required Mitigating Action None required Anticipated Outcome Full budget spend Roof Coverings Building external component renewals, roofs/chimneys/flashings/fascias/gutters/svp Anticipated Outcome Full budget spend Mitigating Action None required Anticipated Outcome Full budget spend External stores/garages/bin stores/drainage component renewals This budget is to focus on external stores/garages/bin stores etc. component renewals as identified and recommended from the housing stock condition survey. Planned End Date Forecast End Date Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Page 212
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WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME ANALYSIS OF GREEN PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 12 Project Life Financials 273 65 24% 273 0 0% Current Year Financials 91 65 72% 91 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 13 Project Life Financials 280 0 0% 280 0 0% Current Year Financials 54 0 0% 54 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 14 Project Life Financials 5,293 935 18% 5,293 0 0% Current Year Financials 1,036 935 90% 1,036 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 15 Project Life Financials 103 0 0% 103 0 0% Current Year Financials 103 0 0% 103 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 Secure entry component renewals This budget is to focus on secure door entry component renewals as identified and recommended from the housing stock condition survey and appropriate council officer referrals. Anticipated Outcome Anticipated not to meet full spend despite best efforts. Planned End Date Forecast End Date Main Issues / Reason for Variance This programme always presents challenges with owner liaison and reaching agreements to install door entry where none exists, this contributes directly to achieving SHQS compliance for this element and reducing abeyances. The budget reflects the demand and number of installs required but it is acknowledged that full uptake is unlikely. Mitigating Action Officers continue to liaise with owners to encourage agreement for install. Planned End Date Forecast End Date Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Mitigating Action None required Energy improvements/energy efficiency works Energy improvements/ efficiency works (e.g. loft insulation, pipe/tank insulation, draught exclusion) Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Mitigating Action None required Anticipated Outcome Full budget spend Anticipated Outcome Full budget spend Modern facilities and services New Kitchens, Bathrooms and Showers Planned End Date Forecast End Date Mitigating Action None required Anticipated Outcome Full budget spend Improvement works (Risk St) Risk Street Over clad Planned End Date Forecast End Date Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Page 213
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WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME ANALYSIS OF GREEN PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 16 Project Life Financials 581 0 0% 400 (181) -31% Current Year Financials 181 0 0% 0 (181) -100% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 17 Project Life Financials 3,637 184 5% 3,637 0 0% Current Year Financials 887 184 21% 887 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 18 Project Life Financials 1,135 86 8% 1,135 0 0% Current Year Financials 215 86 40% 215 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 Contingencies This is a contingent budget for unforeseen matters which may arise during the year. Planned End Date Forecast End Date Defective structures/component renewals Defective structures Planned End Date Forecast End Date Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Main Issues / Reason for Variance No Issues, contingent budget for unplanned spend Mitigating Action none at this time Anticipated Outcome Spend as required Mitigating Action None required Anticipated Outcome Full budget spend Main Issues / Reason for Variance No Issues, anticipated to meet full spend and targets. Mitigating Action None required Anticipated Outcome Full budget spend Asbestos management works This budget is to fund work associated with the management of current asbestos legislation and Planned End Date Forecast End Date Page 214
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WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME ANALYSIS OF GREEN PROJECTS MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance 19 Project Life Financials 2,378 0 0% 2,378 0 0% Current Year Financials 800 0 0% 800 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 20 Project Life Financials 7,729 731 9% 7,729 0 0% Current Year Financials 2,019 731 36% 2,019 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 21 Project Life Financials 13,031 1,461 11% 13,031 0 0% Current Year Financials 2,504 1,461 58% 2,504 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 TOTAL OF ALL PROJECTS Project Life Financials 79,140 8,017 10% 78,959 (181) 0% Current Year Financials 19,413 8,017 41% 19,232 (181) -1% Mitigating Action None required Anticipated Outcome Full budget spend Buy Backs This is a budget to undertake specific projects that will deliver housing policies/strategies, example: Ex local authority and mortgage to rent buy-back scheme Multi Story Flats ( including Fire Risk Assessment Works) High Rise Fire Safety Measures Planned End Date Forecast End Date Main Issues / Reason for Variance No Issues, anticipated to meet spend and revised targets. Anticipated Outcome Budget spend anticipated, should criteria be met. Planned End Date Forecast End Date Main Issues / Reason for Variance The main objective of the Buy Back Scheme is to bring former council properties that were sold through the RTB scheme, back into council use. These properties must assist the council with reducing housing need on the waiting list and where appropriate assist with external capital works. For these reasons, any purchase is subject to stringent criteria to ensure accountability and value for money for existing tenants. Spend in 22/23 will therefore be dependent on these factors. So far this year, 8 homes have been purchased, with a further 4 under offer. The target is to deliver an additional 20 homes each year through the buyback scheme. Mitigating Action None required. Main Issues / Reason for Variance No Issues, budget for salaries and support Mitigating Action None required Anticipated Outcome Full budget spend Salaries/central support/offices Allocation of costs from other WDC services who support the HRA capital programme Planned End Date Forecast End Date Page 215
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APPENDIX 6 WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME ANALYSIS OF RESOURCES MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 1 Project Life Financials (48,826) (4) 0% (48,826) 0 0% Current Year Financials (30,006) 0 0% (10,480) 19,526 -65% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 2 Project Life Financials (42,531) 0 0% (41,168) 1,363 -3% Current Year Financials (9,215) 0 0% (7,852) 1,363 -15% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 3 Project Life Financials (124,667) (13,019) 10% (124,667) 0 0% Current Year Financials (26,286) (13,019) 50% (19,945) 6,341 -24% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 Due to spend being later than anticiapted , receipt of grant will also be later than budgeted. Mitigating Action Income budget wil be reprofiled to match reprofiled spend Anticipated Outcome Income will be received in 2023/24 Main Issues / Reason for Variance 31 October 2022 Budget Details Project Life Financials Spend to Date Variance New Build Grant Grant to facilitate new build housing Planned End Date Forecast End Date CFCR This is capital spend which is funded by revenue budgets Planned End Date Forecast End Date Main Issues / Reason for Variance Income from Revenue reduced to offset adverse varainces in HRA revenue Mitigating Action None required Anticipated Outcome Reduced CFCR Prudential Borrowing Prudential borrowing is long term borrowing from financial institutions that has been approved for the purposes of funding capital expenditure Planned End Date Forecast End Date Main Issues / Reason for Variance Prudential borrowing is impacted by programme delivery therefore due to reprofiling, the requirement in 2022/23 will be less. Mitigating Action None available at this time. Anticipated Outcome While prudential borrowing requirement is likely to be less than budgeted in the current financial year this is anticipated to catch up over the programme life. Page 216
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WEST DUNBARTONSHIRE COUNCIL HRA CAPITAL PROGRAMME ANALYSIS OF RESOURCES MONTH END DATE PERIOD 7 Budget Forecast Spend £000 £000 % £000 £000 % 31 October 2022 Budget Details Project Life Financials Spend to Date Variance New Build Grant 4 Project Life Financials (96) (50) 52% (96) 0 0% Current Year Financials (96) (50) 52% (96) 0 0% Project Description Project Lifecycle 31-Mar-27 31-Mar-27 TOTAL RESOURCES Project Life Financials (216,120) (13,073) 6% (214,757) 1,363 -1% Current Year Financials (65,604) (13,069) 20% (38,373) 27,230 -42% Other Capital Income Other Income to capital Planned End Date Forecast End Date Main Issues / Reason for Variance No variance Mitigating Action None required Anticipated Outcome Income will be received Page 217
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 7 HRA CAPITAL PROGRAMME ANALYSIS OF AFFORDABLE HOUSING SUPPLY PROGRAMME MONTH END DATE PERIOD 7 Budget Spend to Date Forecast Spend £000 £000 £000 £000 % RAG Status St Andrews School 636 93 290 346- -54% Haldane Primary School 148 149 167 20 13% Aitkenbar Primary School 652 214 652 - 0% Clydebank East 26,474 42 26,474 - 0% Creveul Court 58 59 58 - 0% Queens Quay Site B 1,259 402 1,259 - 0% Queens Quay Site C 6,198 1 6,198 - 0% Pappert 7,332 2 7,332 - 0% Lilac Avenue 2,676 - 2,676 - 0% Bank Street 4,674 - 4,674 - 0% Clydebank Health Centre 6,930 3 6,930 - 0% Willox Park Phase1 3,817 51 3,817 - 0% Willox Park Phase2 6,300 - 6,300 - 0% Mount Pleasant 4,200 18 4,200 - 0% Silverton 2,100 - 2,100 - 0% Fees, Staffing Costs, contingency 4,005 15 4,005 - 0% Gap sites Bonhill Gap Site 420 171 420 - 0% Future New build sites 16,824 - 16,824 - 0% Total Expenditure 94,703 1,219 94,376 (326) 31 October 2022 Site Project Life Financials Variance Page 218
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council – 21 December 2022 Subject: Audited Financial Statements 2021/22 1. Purpose 1.1 The purpose of this report is to provide Members with the opportunity to scrutinise the Audited Annual Accounts 2021/22 for both the Council and the Charities administered by the Council, following approval at the Audit Committee on 9 November 2022. 2. Recommendations 2.1 Members are requested to: (a) note the information provided within the Audited Annual Accounts 2021/2022 - covering the Council and the Charities administered by the Council - as appended to this report; and (b) Note that the Statements were approved by the Audit Committee on 9 November 2022. 3. Background 3.1 The Council’s draft unaudited Annual Accounts (including the Group Accounts) for 2021/22 were reported to Council on 29 August 2022 and passed to the Accounts Commission before the statutory deadline on 30 June 2022. 3.2 The report submitted to the August 2022 Council identified a draft position of an unearmarked General Service reserve of £3.496m and provided Members with information as to variances for the year. The draft unearmarked position for the Housing Revenue Account reserve was £0.940m. 3.3 The Charitable Trusts’ draft, unaudited accounts for 2021/22 were also reported to August 2022 Council. 3.5 Following current statutory deadlines, the Audited Annual Accounts 2021/2022 - covering the Council and the Charities administered by the Council – require to be approved by Council before 30 November 2022. 4. Main Issues 4.1 The audits of the Annual Accounts for both the Council and the Council- administered Charities have now been completed. The Council has received Annual Audit Report to Members and Controller of Audit which is elsewhere on the agenda to this meeting. The audited Annual Accounts for ITEM 13 Page 219
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the Council and the Council-administered Charitable Trusts are appended to this report for consideration and approval. The Council’s Accounts 4.2 A number of presentational and monetary adjustments were identified within the draft Annual Accounts during the course of the audit, some of which resulted in the audited accounts for 2020/21 requiring to be restated (incorporate the impact of misclassification of assets and to correct errors in depreciation calculations; the removal of additional internal recharges and amendments between creditors and debtors). The necessary changes to the main statements in 2020/21 are detailed within Note 2 of the accounts (pages 63 and 64 within the Statements). 4.3 In 2021/22 the changes between draft and final resulted in the balance sheet movement as noted below. These adjustments did not affect the usable reserves positions of the Council. Draft 31 March 2022 Audited 31 March 2022 Change £000 £000 £000 Long Term Assets 1,148,987 1,054,610 (94,377) Current Assets 79,723 76,404 (3,319) Current Liabilities (352,731) (349,509) 3,222 Long Term Liabilities (454,383) (454,383) 0 Total 421,596 327,122 (94,474) 4.4 Although the overall Council’s usable reserves did not change, the General Services earmarked reserves was amended and resulted in a net increase in the Council's General Fund free reserve balance of £0.007m. Further detail on the updated General Fund position is noted below: General Services HRA Free Reserve Earmarked Reserve Total Reserve Free Reserve Earmarked Reserve Total Reserve £000 £000 £000 £000 £000 £000 Draft Financial Statements 3,496 11,524 15,020 940 1,794 2,734 Unearmark - Historic Abuse Cases 150 (150) 0 0 0 0 Earmark - further covid funds (143) 143 0 0 0 0 Audited Financial Statements 3,503 11,517 15,020 940 1,794 2,734 Page 220
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4.5 I am pleased to report that a clean audit opinion has been given in relation to these Accounts. 4.6 The management commentary on pages 2 to 24 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 2022. In particular: 4.7 On pages 26 to 32 of the accounts is the Annual Governance Statement. This Statement provides assurance that the Council has in place a sound system of governance control. The Governance Statement identifies a number of areas where officers have identified improvements can be made. Charitable Trusts’ Accounts 4.8 I am pleased to report that a clean audit opinion has been given in relation to these Accounts. 4.9 Page 8 of the Accounts details the Statement of Balances and highlights a decrease in the balances held from £0.280m as at 31 March 2021 to £0.263m as at 31 March 2022. 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 Other than as described above there are no financial or procurement implications. 8. Risk Analysis 8.1 No risk analysis was required. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact was required in relation to the preparation of this report. 10. Consultation 10.1 The views of relevant officers were requested on this report and the appendices and view were taken on board. 11. Strategic Assessment Page 221
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11.1 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: 21 December 2022 Person to Contact: Laurence Slavin, Chief Officer - Resources, Church Street, Dumbarton E-mail: Laurence.Slavin@west-dunbarton.gov.uk Appendices: 1. Audited Annual Accounts 2021/22 – West Dunbartonshire Council; and 2. Audited Annual Accounts 2021/22 – Charitable Trust Funds. Background Papers: Report to Council of 31 August 2022: Draft Annual Accounts 2021/22 Minute: Audit Committee – 9 November 2022 Wards Affected: All Page 222
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AUDITED ANNUAL ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 APPENDIX 1 Page 223
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 1 Table of Contents Page Page Management Commentary 2 Note 21 Capital Expenditure and Capital Financing 98 Note 22 Impairment Losses 98 Explanatory and Assurance Statements Note 23 Private Finance Initiatives and Similar Contracts 99 Statement of Responsibilities 25 Note 24 Debtors 100 Annual Governance Statement 26 Note 25 Common Good Fund 100 Remuneration Report 33 Note 26 Trust Funds 102 Note 27 Cash and Cash Equivalents 103 Principal Financial Statements - Single Entity Note 28 Financial Instruments 103 Comprehensive Income and Expenditure Statement 44 Note 29 Creditors 111 Movement in Reserves Statement 46 Note 30 General Fund & HRA Reserves and Earmarked Balances 111 Balance Sheet 48 Cash Flow Statement 49 Note 31 Other Reserves 112 Note 32 Contingent Assets and Liabilities 115 Notes to Single Entity Note 33 Financial Guarantee 116 Note 1 Accounting Policies 50 Note 2 Prior Year Restatement 63 Supplementary Financial Statements Note 3 Critical Judgement in Applying Accounting Policies 65 Movement on the Housing Revenue Account Statement 117 Housing Revenue Account Income and 118 Note 4 Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty 65 Expenditure Statement Notes to the Housing Revenue Account Income and 119 Expenditure Statement Note 5 Accounting Standards that have been 68 Council Tax Account 120 issued but have not yet been adopted Non Domestic Rates Account 121 Note 6 Material Items of Income and Expense 68 Note 7 Adjustments between funding accounting basis and funding basis under 69 Principal Financial Statements - Group Group Accounts 123 regulations Group Comprehensive Income and Expenditure 125 Note 8 Events After the Balance Sheet Date 73 Statement Note 9 Related Parties 73 Group Movement in Reserves Statement 127 Note 10 Agency Services 77 Group Balance Sheet 129 Note 11 Grant Income 78 Group Cashflow Statement 130 Note 12 Operating Leases 80 Note 13 Termination Benefits 81 Notes to Group Note 14 Defined Benefit Pension Schemes 81 Notes to the Group Accounts 131 Note 15 External Audit Costs 87 Note 16 Expenditure and Funding Analysis 87 Glossary Note 17 Property, Plant and Equipment 92 Glossary of Terms 136 Note 18 Intangible Assets 95 Note 19 Assets Held for Sale 96 Audit Certificate 138 Note 20 Heritage Assets 97 Page 224
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 2 Management Commentary 1. Introduction Welcome to the Financial Statements for West Dunbartonshire Council (the Council) and its group for the year ended 31 March 2022. 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 2021/22 financial year as well as providing an indication of risks and issues which may impact upon the Council in the future. 2. 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 May 2017, the Council had a minority SNP administration with Councillor Jonathan McColl as its Leader. The Local Government Elections in March 2022 returned a majority Labour administration and Councillor Martin Rooney was appointed as the new Council Leader. Page 225
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 3 Management Commentary 2. Profile of West Dunbartonshire Council (cont’d) During 2021/22 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. In addition the Council retained 20% of the time of the former Strategic Director of Regeneration, Environment and Growth who, since October 2020 is seconded to the Glasgow City Region for a two year period. 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 early 2022 Joyce White announced her intention to stand down as the Council’s Chief Executive and, in June 2022, Peter Hessett was appointed as the Council’s new Chief Executive. 3. The Strategic Plan, Vision and Priorities Nationally, the Scottish Government sets out its joint priorities and local authorities, in conjunction with community planning partners, agree a planned approach aligned to these through the Local Outcome Improvement Plan (LOIP). The Council’s LOIP, covering the period from 2017 to 2027, feeds through into our 2017-2022 Strategic Plan which sets out our commitment to improving outcomes in key areas to deliver on our vision that: West Dunbartonshire Council will deliver high quality services, led by priorities identified by the communities of West Dunbartonshire, in an open and transparent way The Strategic Plan identifies the following five priorities aligned to the Council’s vision: • A strong local economy and improved job opportunities. • Supporting individuals, families and carers living independently and with dignity. • Meaningful engagement with active, empowered and informed citizens who feel safe and engaged. • Open, accountable & accessible local government. • Efficient and effective frontline services that improve the everyday lives of residents. To support delivery of the Strategic Plan (https://www.west-dunbarton.gov.uk/council/strategies-plans- and-policies/strategic-plan/) and the Council’s strategic objectives each Chief Officer has developed Service Delivery Plans. These are refreshed annually and progress reported to relevant committees every six months. The HSCP also has a Strategic Plan which is linked to the Council’s and the LOIP. Page 226
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 4 Management Commentary 4. Performance Reporting The Council monitors and reports its performance against these priorities through the Strategic Plan Scorecard (SPS); where planned performance targets are monitored through a suite of key performance indicators. Performance is reported to Council and Committees for scrutiny and identification of any required remedial action. The Council also publishes an annual Public Performance Report which provides residents with a summary of progress being made. In conjunction with this internal SPS, the Council (together with all Scottish local authorities) measures a common set of performance indicators called the Local Government Benchmarking Framework. Using the same indicators across all councils allows comparisons of performance, identification of best practice and enables councils to learn from each other. Full details of the most up to date performance information are available on the Council’s website at: www.west- dunbarton.gov.uk/council/performance-and-spending/ Some of our achievements in 2021/22, in relation to our five strategic priorities, are highlighted below. Priority 1 - A strong local economy and improved job opportunities We continued our strong focus on town centre regeneration securing Levelling Up Funding to transform Dumbarton with a state of the art new museum and library and redeveloping the Artizan Centre. We also finalised 10-year investment plans for Alexandria and Clydebank focusing on boosting local enterprise and community activity, celebrating the towns’ heritage and making it safe and easy for citizens to move around. We progressed the £34.1million Glasgow City Region City Deal project which will provide up to 980 full-time jobs and a further 670 during construction. We also invested in the Scottish Marine Technology Park at Carless, which is expected to create 1,000 local jobs and bring £65.6 million annually to the Glasgow City Region economy. In addition, we provided support to 200 new business start- ups, took on 50 modern apprentices with a further £1million investment planned over the next four years and supported 90.99% of school pupils to leave school to a positive destination. Priority 2 - Supported individuals, families and carers living independently and with dignity. Improving the lives of the people of West Dunbartonshire is at the heart of our work An increased £75 million investment in our housing stock has provided 530 additional affordable, sustainable, accessible and adaptable housing options that meet the changing needs of our population. Among those projects is the new 147 home development at Queens Quay which will be supplied by affordable, environmentally sustainable energy from the multi-award winning Energy Centre and District Heating network. Page 227
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 5 Management Commentary 4. Performance Reporting (cont’d) Tackling the root causes of poverty is at the forefront of the Council’s Working4U service, providing advice to sustain or increase income through employment and benefit maximisation. We assisted 288 people to secure a Foundation Apprenticeship/Modern Apprenticeship and make progress in the workplace. We also supported 420 people to secure employment and assisted residents to secure an additional £7.2million of benefits, and manage £2.5m of debt. In addition, Working4U supported 993 people to enter education and training and 457 people have subsequently secured a full qualification that will allow them to pursue their life and career ambitions. Priority 3 - Meaningful engagement with active, empowered and informed citizens who feel safe and engaged Our commitment to empowering citizens is demonstrated in the implementation of our Community Empowerment strategy and action plan, which helps citizens to help themselves and provides opportunities for the Council to work in partnership with citizens in local decision-making. A review of the scheme for establishment of community councils was undertaken, consulting with existing community councils, the Community Council Forum, active community groups in areas with no community councils at present and citizens to update and improve how they operate. To reduce the impact of antisocial behaviour we installed additional CCTV cameras, increased the presence of our antisocial behaviour team and extended the hours in which citizens can contact them for support. Priority 4 - Open, accountable and accessible local government The Council believes in equity and accessibility for all residents. During the pandemic, we continued to hold Council meetings online, giving citizens the opportunity to ask questions, raise concerns and listen to proceedings. Many services were updated to online to ensure citizens could continue to access services and receive support. On average, the Council answered 8,000 calls every month from citizens. We are committed to ensuring everyone has the opportunity to have their say and in particular to increase participation from under-represented groups. Working4U worked with partners to provide citizens with access to devices, free Wi-Fi and support to use them. The programme focused its efforts on those most likely to face digital exclusion with priority given to older people who were in the COVID shielded group, families who are facing disadvantage and disabled people. As part of a four-year equality plan approved in May 2021, the Council has established the Stronger Voices community group, which is helping the Council increase participation of under-represented groups. Page 228
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 6 Management Commentary 4. Performance Reporting (cont’d) Priority 5 - Efficient and effective frontline services that improve the everyday lives of residents The Council is committed to providing sustainable and attractive local communities which make residents proud of the area they live in. We invested £3.6million in Lomond Bridge, Balloch. Works included modified steelwork which was refurbished and painted; a replaced bridge deck, as well as new lighting and parapet renewal. We recognise the importance a healthy diet plays in a child’s development and the health and wellbeing of our young people is a priority. Free school meals are available for all pupils in Primary 1 to Primary 5 in West Dunbartonshire, giving our children a freshly prepared, nutritionally balanced meal every day. We were one of the first councils in Scotland to introduce 1140 hours of free early learning and childcare ahead of schedule. We provide 1140 hours of childcare to all three and four-year-olds as well as eligible two-year-olds. The Council recruited more than 400 employees to support the introduction, refurbished 15 existing centres, introduced 10 new centres and built four new Early Learning Centres. 5. Council’s 2021/22 Budgets Revenue The Council approved the 2021/22 revenue budget on 22 March 2021 based on band D council tax at £1,293.55. The budget was set at £231.919m (as detailed in the table below) to be funded by Scottish Government Grant (£193.854m); council tax (£37.053m), with a net contribution from reserves for the remainder (£1.012m). Service Area Budget (£m) % of Budget Corporate Services 32.280 13.92% Educational Services 103.682 44.71% Infrastructure, Regeneration and Economic Development 12.034 5.19% Housing and Communities 3.224 1.39% Health & Social Care Partnership, including Criminal Justice 74.122 31.96% Loan charges 6.523 2.81% Other 0.054 0.02% Total 231.919 100.00% The budget was updated during the year for a number of variables, resulting in a final planned net expenditure of £252.986m. The year-end revenue budgetary position is detailed on page 9 of this commentary. Page 229
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 7 Management Commentary 5. Council’s 2021/22 Budgets (cont’d) Capital On 22 March 2021 the Council also approved the revised capital plan with a planned General Services spend in 2021/22 of £18.835m and re-phased capital from the previous year of £29.223m making a total of £48.058m. In-year additional projects increasing the planned spend by £8.668m to £56.726m. This investment is funded from a range of sources including: government grants and council ongoing revenue. Major areas of investment are economic regeneration, schools modernisation, roads and infrastructure and a range of other Council assets. The year-end capital budget position is further detailed on page 17. Housing Revenue Account On 3 March 2021 the Council approved the Housing Revenue Account budget and agreed an increase in council house rents of 1.5% with planned capital investment for 2021/22 of £34.591m, and re-phased capital from the previous year of £15.153m making a total of £49.744m. Further in-year changes updated the planned spend for 2021/22 to £48.328m. The year-end revenue budgetary position is detailed on page 10 of this commentary, with the capital year end budgetary position shown on page 17. 6. 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 2022. 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 the assets which the Council uses to provide services. Expenditure is recorded in a number of the main statements in these accounts with the purposes of these main statements being as follows: • Comprehensive Income and Expenditure Statement (page 44) - shows the income and expenditure for all council services. • Movement in Reserves Statement (page 46) - shows how the Income and Expenditure Account surplus or deficit for the year reconciles to the movement on the General Fund for the year. It also highlights movement on all other reserves held on the Council’s Balance Sheet (including the Housing Revenue Account). Further information on each of the reserves held and how they may be used is also detailed within notes 30 and 31 on pages 111 to 115. • Housing Revenue Account (pages 117 -119) - shows the income and expenditure for council housing services for the year and also includes the Statement of Movement on the Housing Revenue Account Balance. • Capital expenditure (page 98, note 21) - details the capital expenditure and the sources of finance used to fund the capital plan investment in 2021/22. Page 230
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 8 Management Commentary 6. Overview of Core Financial Statements (cont’d) • Balance Sheet (page 48) - summarises the assets and liabilities of the Council. It is a statement of the resources of the Council and the means by which they have been financed. It is also a report on the Council’s financial position at one particular point in time, a snapshot of its financial affairs at the close of the year expressed in accounting terms. • Cash Flow Statement (page 49) - shows the inflows and outflows of cash arising from transactions with third parties on both day to day revenue transactions and on 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. • Notes to the Core Financial Statements (pages 50-116) provide further information and analysis of each statement, including the main accounting policies detailed on pages 50 to 63. 7. 2021/22 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 £260.765m with a net expenditure on services for the year of £312.515m (shown on page 44 - Net Cost of Services). Due to tight financial control over service spending, the Council was able to return an in-year surplus from services of £0.166m against budget (2020/21 £0.585m surplus). The main favourable variances (particularly within Corporate Services and Education service areas) are due to specific management action in areas such as control of vacancies and staff cover; general process and efficiency reviews; and spending control, with a one-off adjustment for Council Tax income. Although, there is an element of demand led favourable variances, these have been partially offset by cost pressures, particularly within vacant building costs (such as former HSCP properties) and within the Infrastructure, Regeneration and Economic Development service areas due mainly to commercial rental income and the Housing Maintenance Trading Account outturn. During the Council’s annual budget process, efficiencies are identified and agreed for action. These savings are monitored monthly as part of the budgetary control process. For 2021/22 the savings monitored were valued at £3.212m, with the target reduction to the budget being achieved in year. The Council's in-year collection of council tax increased from 94.18% in 2020/21 to 94.53% in 2021/22. It is positive that collection has improved given the continued impact that COVID had in 2021/22 on the ability of people to pay council tax. The Council continued to allow eased payment terms and follow up processes to assist residents impacted, provided key financial support and assistance during the year and would expect payments to be caught-up in future years. After taking account of the decrease in general earmarked balances since 31 March 2021 (£0.174m), the net commitment to future budgets (£1.219m, included within the overall earmarked balance) and the in-year budgetary position (£0.166m), the overall deficit for the year was £0.008m. This results in an accumulated surplus at 31 March 2022 of £15.020m (as shown on page 46), compared to the previous year value of £15.028m). This includes an earmarked amount of £11.517m leaving an unearmarked balance of £3.503m available for future use. Of the earmarked reserves £6.791m is for COVID purposes leaving £4.726m of general earmarked reserves, of which £1.257m is set aside for the Council’s Change Fund, £1.018m of Scottish Government funding for the Young Person’s Guarantee and £1.219m is committed to the delivery of a balanced 2022/23 budget. This unearmarked balance compares with that of £3.337m as at 31 March 2021 and shows that the unearmarked reserve position has increased by £0.166m during the year. The Council's Prudential Reserves Policy is to retain a prudential reserve of 2% of net expenditure (excluding requisitions to HSCP, Valuation Joint Board, SPT, etc.) in order to safeguard assets and services against financial Page 231
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 9 Management Commentary 7. 2021/22 Financial Performance risk. The current target prudential reserves level for the General Fund is £3.123m and the position at financial year end is higher than this by £0.380m (the main reason for this position is due to financial performance in 2021/22). The General Fund’s budgetary performance for the year is summarised in the following table. The table also highlights how the in-year surplus affects the overall reserves balance held for future use. Original Budget Revised Budget Spend Against Budget Variance £000 £000 £000 £000 £000 Total General Services Reserves Held as at 31/3/21 (15,028) Corporate Services 32,280 32,326 31,637 (689) Educational Services 103,682 108,906 107,693 (1,213) Infrastructure, Regeneration and Economic Development 12,034 11,837 14,671 2,834 Housing and Communities 3,224 5,111 5,005 (106) Health & Social Care Partnership, including Criminal Justice 74,122 76,622 76,622 0 Loan charges 6,523 6,159 6,012 (147) Other (including one-off covid spend) 54 12,025 12,084 59 Total Expenditure (1) 231,919 252,986 253,724 738 Council Tax (37,053) (37,053) (37,957) (904) Revenue Support Grant/ NDR (193,854) (214,905) (214,905) 0 Use of Reserves (1,012) (1,028) (1,028) 0 Total Income (2) (231,919) (252,986) (253,890) (904) Net Budgetary Control Position (3) = (1) + (2) (166) Net movement in Earmarked balances 174 Movement in Reserves from 1/04/21 to 31/03/22 8 Total General Services Reserves Held as at 31/3/22 (15,020) Net decrease in the Movement in Reserves before transfer to Statutory Reserves 2,396 Transfer from statutory reserves (2,388) 8 The movement of £0.008m noted above reflects the in-year movement in the General Fund balance (i.e. opening balance 1 April 2021 of £15.028m and the closing balance as at 31 March 2022 of £15.020m) and is further detailed within the Movement in Reserves Statement on page 46. The following table sets out a reconciliation of the surplus on the provision of services within the Comprehensive Income and Expenditure Statement (page 44) of £75.190m to the revenue budgetary outturn of £0.166m. Page 232
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 10 Management Commentary 7. 2021/22 Financial Performance (cont’d) £000 £000 Deficit on Provision of Services in the Comprehensive Income and Expenditure Statement 75,190 Removal of statutory adjustments not included in budget outturn (note 7): Reversal of entries included in the surplus/ deficit on the provision of services in relation to capital expenditure (including depreciation and impairment) (58,207) CFCR 13,247 Pension adjustment (32,116) Statutory repayment of debt 9,303 Transfer to other statutory reserves 302 Net gain / (loss) on sale of non current assets (998) (68,469) Deficit on Provision of Services in Note 16 - Expenditure and Funding Analysis 6,721 Adjust for movements to/from other statutory reserves HRA reserve (4,325) Other reserves (2,388) (6,713) Movement in General Fund Balance 8 Movement in earmarked sums (174) (174) Net General Fund budgetary control position 2021/22 (166) Housing Revenue Account (HRA) By law the Council maintains a separate account for the running and management of its housing stock and had 10,378 housing units at 31 March 2022 (10,153 31 March 2021). The movement in year is follows: Opening house numbers 10,153 Disposals 0 Demolitions 0 Buy back 14 New builds 211 Closing house numbers 10,378 After the impact of earmarked balances, the account shows a deficit for the year of £4.630m. In line with the prudential reserves policy (2% of expenditure), the target reserves level for the HRA for 2021/22 is £0.940m. Taking account of the in-year deficit (£4.630m), which is in line with the HRA financial plan to fund some capital from revenue to reduce the cost of borrowing, the brought forward balance from the previous year £7.364m, the balance available to the HRA for future use is £2.734m, (earmarked reserves of £1.794m and free reserves of £0.940m). 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 117 to 119. Page 233
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 11 Management Commentary 7. 2021/22 Financial Performance (cont’d) Budget Spend Against Budget Variance £000 £000 £000 £000 Total HRA Reserves Held as at 31/3/21 (7,364) Total Expenditure 46,168 50,588 4,420 Total Income (46,168) (50,664) (4,496) Net Budgetary Control Position (76) Net transfer from earmarked balances 4,706 Movement in Reserves from 1/04/21 to 31/03/22 4,630 Total HRA Reserves Held as at 31/3/22 (2,734) The net deficit budgetary position on the HRA Statement noted above of £4.630m compares to the surplus noted within the HRA Income and Expenditure Statement (page 118) as detailed below: £000 £000 (Surplus)/Deficit for the year on HRA Services 19,269 HRA Movement in Reserves Adjustments to the revenue resource (33,614) Adjustments between Revenue and Capital Resources 18,670 Transfers (to)/from Other Statutory Reserves 305 (14,639) Movement in the HRA Reserve 4,630 Adjustments for earmarked funds: Use of earmarked sums (4,706) Net HRA budgetary control position 2021/22 (76) HRA reserve as at 1 April 2021 (7,364) Use of earmarked sums 4,706 Transfer of surplus to reserves (76) HRA reserve as at 31 March 2022 (2,734) Spend relating to the net budget position of £0.076m surplus is included within note 16 (Expenditure and Funding Analysis) on pages 87 to 91. Reserves As at 31 March 2022, the usable reserves currently held by the Council are noted below, with further information on the future use of such reserves detailed within notes 30 and 31 on pages 111 to 115. Page 234
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 12 Management Commentary 7. 2021/22 Financial Performance (cont’d) General Services HRA Total £000 £000 £000 Unearmarked Reserve 3,503 940 4,443 Earmarked Reserve 11,517 1,794 13,311 Total Revenue Reserve 15,020 2,734 17,754 Capital Receipts Reserve 30 0 30 Capital Grants Unapplied 42 0 42 Capital Reserve 758 0 758 Other Reserves 468 0 468 Total Usable Reserves 16,318 2,734 19,052 Prudential Target 3,123 940 An analysis of the earmarked revenue balances is shown in the chart below Provisions The Council currently has no provisions held on its Balance Sheet as at 31 March 2022. Cash Flow Statement The Council’s cash flow statement shows a decrease of cash and cash equivalents of £10.101m during 2021/22 (see page 49) mainly as a result of borrowing for capital spend on non-current assets. 0 1 2 3 4 5 6 7 8 COVID Change Fund 2021/22 Budget Commitments Other Committed Spend (<£0.1m) Yound Persons Guarantee HR/Legal Social Welfare Fund Earmarked Revenue Reserves (£ Millions) Page 235
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 13 Management Commentary 8. COVID (Financial) The financial analysis provided above takes into account the impact of COVID. During 2021/22 officers continued to monitor the financial impact of COVID on the Council’s revenue positon and reported on this through budget control reports taken to Committees and full Council. £4.488m of general COVID funding was made available in 2021/22 which was added to the £1.973m which had been carried forward from 2020/21. During 2021/22 the Council exercised the Loans Fund Principal Repayment Holiday and Use of Capital Receipts financial flexibilities approved by the UK Government and Scottish Government to help councils respond to the financial pressures faced by local authorities as a result of the COVID pandemic. The Loans Fund Principal Repayment Holiday allows the Council to take a loans fund payment holiday in 2021/22 or 2022/23 on the condition the amount not repaid in year would by fully paid over a 20 year period. The in-year principal payment would have been £1.673m which the Council would have paid using in-year capital receipts and this holiday released a balance of £1.311m of capital receipts. Exercising the Use of Capital Receipts financial flexibility means this £1.311m can be used to fund COVID cost pressures. Use of COVID funds is summarised in the table below (note this excludes COVID funding made available to the Health & Social Care Partnership): £000 £000 2020/21 COVID Funding Carried Forward 1,972 2021/22 COVID Funding 4,488 Capital Receipts Financial Flexibility 1,454 Total Available COVID Funding in 2021/22 7,914 2021/22 COVID Spend (4,469) Total COVID Funding to Carry Forward into 2022/23 3,445 Estimated 2022/23 COVID Expenditure (2,058) Estimated Available COVID Funding at 31/03/23 1,387 In February 2022 the Scottish Government announced an £80m Local Authority COVID Economic Recovery (LACER) Fund. The Council’s share of this is £1.458m. The fund is to be provided via General Revenue Grant and Scottish Government expectations are that it will be fully utilised during 2022/23. The Scottish Government proposed the following principles of spend to guide how the fund should be used by local authorities: • Interventions that support local economic recovery and contribute to businesses being able to move from surviving the period of trading restrictions towards recovery, growth, adaptation and building resilience. • Projects that can rebuild consumer confidence and stimulate demand and economic activity in their specific contexts. • To support the low-income households that are disproportionately impacted by the pandemic and the current cost of living crisis, to become more economically active. This funding has not been included in the general COVID funding table above as the proposed principles means there are restrictions on use. The following expenditure was agreed at the Council budget meeting on 9 March 2022. Page 236
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 14 Management Commentary 8. COVID (Financial) (cont’d) 2022/23 Expenditure £000 Four year modern apprenticeship scheme (£250k per annum) 250 Cost of Living Crisis Fund 400 Double School Clothing Grant 774 COVID Compliance Officers 101 Total 1,525 £1.458m of this will be funded by the LACER fund with the balance of £0.067m funded from general COVID funding. 9. COVID (Service Delivery) Throughout 2021/22 COVID continued to provide unprecedented challenges for delivery of Council services which included managing the impact of changes to national restrictions, especially as a result of rising infection rates due to the emergence of the Omicron variant. The Council’s Strategic Resilience Group (SRG) and the Operational Resilience Group (ORG) continue to meet to discuss the challenges the pandemic presented to the Council with regular updates reported to Council to ensure elected members were fully updated on the impact across all services. This included: Service Impact and Action Taken Education • Continued to respond and adapt to the regularly updated Scottish Government ‘Reducing Risks in Schools Guidance’ issuing Education Leaders with the relevant advice and support to maintain the necessary protective measures for operational delivery of the service. • Continued to work with colleagues in Environmental Health and Corporate Health and Safety to ensure enhanced and rigorous COVID Safe Protocols and COVID Risk Assessments in place. • Delivered the schools and ELC’s Asymptomatic Testing Programme to support twice weekly lateral flow testing for staff and secondary school pupils to minimise the spread of COVID. • Significant operational challenges faced by the service through the numbers of positive COVID cases among staff and children and young people. Staff showed great commitment and effort to ensuring there has been minimal disruption to the learning for children and young people. • Created agile and flexible working plans to offset the impact of staff or child/young person absence which provided continuous service across all schools and ELC’s. This was supported by remote/blended learning. • Continued to enhance the digital technologies inclusion provision to support remote/blended learning. • Re-established programme of transition experiences for children and young people entering P1 or S1. • Provided financial and food support to families requiring most support. • Closely monitored CO2 levels across the learning estate. • Provided free Summer 2021 Activity Programme. Citizen, Culture and Facilities • Providing enhanced cleaning in Council premises including schools and nurseries. • Processing £1m of Self-Isolation Support Grants. • Recruited additional staff to ensure capacity to engage with citizens on issues being experienced with housing repairs due to the impact of COVID. Page 237
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 15 Management Commentary 9. COVID (Service Delivery) (cont’d) Supply, Distribution & Property • With restrictions in place during the pandemic, internal works such as housing repairs could not be undertaken, except for emergencies. This resulted in a significant backlog of work. Restrictions were lifted 26 April 2021 and an action plan was put in place to address outstanding repairs and improve performance where possible. However, continuous high levels of COVID related absence, together with the national skills shortage in trades, impacted on the ability of building services to deal with the backlog as well as newly reported repairs. • Monitored and reported progress regularly to the Chief Executive and elected members. • Maintained communication with tenants through appropriate forums including tenant groups, housing news, social media, and text messaging. People & Technology • All teams continued to deliver full service to support the organisation and maintain essential service delivery during pandemic. • Delivered a managed ‘Return to Office’ programme designed to deliver a safe, gradual return with appropriate restrictions maintained to protect our employees. • Implemented enhanced ICT security measures to better support employees and Members working in hybrid environment and to protect the organisation. • Actively supported the recruitment and associated contracts and payment of over 80 COVID recovery posts and over 50 Vaccination support team posts Housing & Employability • Established a number of community based facilities to allow the Communities Team to engage with the community. • Increased focus on homelessness prevention working with landlords and introducing a Tenant Support Fund. • Maintained communication with tenants through appropriate forums including tenant groups, housing news, social media, and text messaging. • Over the course of the pandemic delivered 316 new homes. • Working 4U established remote community hubs from which they delivered one-to-one and group support services and established and managed a crisis support service which has also informed future priorities • Implemented revised working practices to deliver services across Housing Operations during the pandemic in line with restrictions. • Allocated over 900 houses despite pandemic restrictions. • Neighbourhood team and caretaking service continued to operate in communities during the pandemic Regulatory & Regeneration • Visited and provided advice to businesses to ensure they are aware of applicable health protection guidance and that they continue to operate in a safe manner. • Changed to deliver services remotely including registration of deaths. • Delivered a range of sector specific Scottish Government COVID grants across our business community. Resources • Continued to update their estimates of the cost of COVID to ensure Scottish Government funding was allocated appropriately. • Supported local communities by processing COVID hardship payments and free school meal payments. • Adapted interventions to meet emerging needs including allocation of funds to foodbank support, Scottish Welfare fund top ups and additional support for people facing housing rent and council tax pressures. Page 238
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 16 Management Commentary 10. Balance Sheet The Balance Sheet on page 48 summarises the Council’s assets and liabilities as at 31 March 2022 and explanatory notes are provided. The net worth of the Council has increased by £71.190m from £255.932m as at 31 March 2021 to £327.122m as at 31 March 2022. The major changes are set out in the table below. Main Balance Sheet Changes Revised 31/03/2021 31/03/2022 Change Main Reason £000 £000 £000 Long Term Assets 1,050,718 1,054,610 3,892 Increase in Property Plant and Equipment, in line with capital expenditure Current Assets 87,954 76,404 (11,550) Cash and Cash Equivalents held has decreased, partially offset by an increase in Debtors Current Liabilities (340,449) (349,509) (9,060) Short-term Borrowing has increased (in line with the Treasury Strategy and capital spend), as has Creditors Long Term Liabilities (542,291) (454,383) 87,908 Net Pension Liability has significantly decreased, partially offset by an increase in Long Term Borrowing (in line with the Treasury Strategy and capital spend) Total 255,932 327,122 71,190 Pension Assets and Liabilities The Balance Sheet on page 48 shows an assessed pension fund liability of £55.690m, using a snapshot valuation at 31 March 2022. Further information on this is provided in note 14 on pages 81 to 87. The valuation states that assets held at the valuation date were sufficient to cover 95% of accrued liabilities (85.6% in 2020/21). The pension scheme liability has decreased by £107.925m as advised by the appointed actuaries, and this is mainly as a result of the downwards movement in the assumptions of the discount rate, partially offset by future pension, and salary increase 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 citizens. 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. In the current year particular assets have increased in value by £5.683m. At the same time, impairment and downward revaluations have reduced the value of other assets held by the Council by £35.012m, resulting in a net decrease in value of £29.329m. 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. Page 239
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 17 Management Commentary Borrowing The Council’s Treasury Strategy for 2021/22 was agreed by the Council on 22 March 2021. The Council raised new long term loans of £35.000m (2020/21 £10.000m) and short term loans of £315.500m (2020/21 £260.250m) and repaid naturally maturing debt of £320.748m (2020/21 £235.115m). The total outstanding long term debt (excluding PPP debt) as at 31 March 2022 was £307.485m (2020/21 £284.798m) including £132.588m (2020/21 £114.006m) for the Council’s housing stock. The total outstanding short term debt was £270.923m (2020/21 £263.861m), including £116.822m (2020/21 £90.362m) for the housing stock. The interest and expenses rate charged by the Council’s loans fund was 1.94% (2.29% in 2020/21). Due to the current interest rates, the Council has followed a strategy to maximise the benefit in short term borrowing to fund capital expenditure. 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 and have resulted in increases to both the General Services and Housing capital programmes for 2021/22 and beyond. The Council’s Treasury Management Strategy and Capital Strategy are approved at Council as part of the budget setting package. Details of the capital expenditure and financing are shown in note 21 on page 98. Total gross capital expenditure amounted to £64.219m with the split between General Services and HRA noted in the table below. During 2021/22, the Council had budgeted capital expenditure of £105.054m with an actual in year spend of £64.219m. The unspent amount (£40.835m) includes overspends, underspends and slippage. The total slippage on planned spend was £44.883m – 42.72% (2020/21 33.72%) of the overall capital programme which is summarised in the following table: Actual Budget Spend Variance Overspend Underspend Slippage £000 £000 £000 £000 £000 £000 Service Corporate Services 5,672 2,309 (3,363) 26 (40) (3,349) Education 9,567 6,127 (3,440) 156 0 (3,596) Infrastructure, Regeneration and Development 36,243 19,835 (16,408) 1,013 (43) (17,378) Housing and Communities 89 66 (23) 0 0 (23) Miscellaneous Services 3,502 4,241 739 739 0 0 Health and Social Care Partnership 1,653 1,041 (612) 0 0 (612) General Services 56,726 33,619 (23,107) 1,934 (83) (24,958) HRA 48,328 30,600 (17,728) 3,700 (1,503) (19,925) Total 105,054 64,219 (40,835) 5,634 (1,586) (44,883) The main capital projects progressed during 2021/22 were: General Services HRA New Renton Campus Void Housing Strategy Programme Posties Park Hub Building external component renewals Clydebank Charrette Statutory compliance works Artizan Redevelopment Targeted EESSH compliance works Exxon City Deal Heating Improvement works Local Economic Development and Regeneration Affordable Housing Supply Programme Page 240
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 18 Management Commentary The majority of the slippage has occurred within a small 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 2022/23 onwards. The most significant slippage 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 COVID impacted on the timescale for delivery of a number of projects including Clydebank Town Hall, the Clydebank Museum, and the Dalmuir Library and Gallery. Work is now underway to get these projects progressed. 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. Schools Estate Improvement Plan As a result of COVID Skills School was rephased during 2021/22 and further costs are still expected for Renton Campus. HRA New house build Due to a number of different complexities there were delays to getting on site across each of the 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 Resource issues has delayed the roof renewal programme which continues into 2022/23. Additional installations by support contractors is underway to assist completions 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 99 to 100. 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 23. 11. 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 123 to 135 consolidate the Council’s Financial Statements, the Common Good and Trust Funds and six other entities (including three further subsidiaries – West Dunbartonshire Leisure Trust, Clydebank Property Company and West Dunbartonshire Energy LLP). The effect of combining these entities on the Group Balances Sheet is to create an overall net asset of £375.401m. This includes the combined pension liability of these organisations similar to that of the Page 241
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 19 Management Commentary 11. Group Accounts (cont’d) Council. 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. 12. The Financial Outlook, Key Risks and the Future In setting the 2022/23 budget on 9 March 2022, 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 9 March 2022 Council meeting also approved the updated General Fund capital plan, the 2022/23 HRA revenue budget and the updated five year HRA capital plan. The capital plans include funding for a number of projects over the next three years and the revenue impact of these investments will be built into future revenue plans. On the 31 May 2022 the Scottish Government published its Resource Spending Review in providing insight into strategic priorities and highlighting the scale of ongoing challenges for councils and the wider public sector. The Resource Spending Review is high level at this time and based on ‘Level 2’ funding positions over the next four years. ‘Level 2’ does not provide councils with their specific allocations which would provide for more detailed financial planning however it is sufficient to provide an overview of Scottish Government intentions. Early analysis of these priorities continues to reflect the prominence previously given to Health & Social Care and Social Security spending relative to councils. Taken together these two priority areas account for 90% of the increase in the day-to-day spending budget from 2022/23 to 2026/27. Whilst the Resource Spending Review states that Council funding will remain as ‘flat cash’ (at current 2022/23 levels) until 2025/26 with a further £100m added in 2026/27, the real term impact (taking into account inflation) of this for the next four years is a continuing erosion of core funding for councils with a 7% reduction between 2022/23 and 2026/27. Following the setting of the budget in March 2022, budget projections identified expected budget gaps of £13.761m in 2023/24 rising cumulatively to £18.622m in 2024/25. At a Council meeting on 22 June 2022 a further Financial Update was presented which adjusted these gaps to reflect the Resource Spending Review and other changes to budget assumptions. This resulted in amended estimated budget gaps of £14.309m in 2023/24 rising cumulatively to £19.849m in 2024/25. Management of Risk The main financial risks identified by the Council over the medium and long term include: • the unknown position on future funding levels particularly given the ongoing decline in council population, whilst the Resource Spending Review suggests there will be a flat cash settlement for the foreseeable this is not guaranteed and still represents real term reductions in local government funding • any future financial implications of COVID and funding support from Scottish Government • the impact of the ongoing implementation of Universal Credit and the potential impact of previously implemented austerity measures on the economic strength of the West Dunbartonshire population and business base • 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 capital programmes • increasing costs of capital construction due to global constraints in the supply chain. Page 242
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 20 Management Commentary 12. The Financial Outlook, Key Risks and the Future (cont’d) The Annual Governance Statement, shown on pages 26 to 32, 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 2022/23. Significant cost reductions have been generated through planned actions in prior years however more work is required to deliver a balanced budget in 2023/24 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 scheduled to be produced by June 2023. • Green Freeport - A Green Freeport is a large zoned area within a defined boundary which includes a rail, sea or airport. Operators and businesses in the zone can benefit from a package of tax and other incentives through a combination of devolved and reserved levers. Green Freeports are designed to boost innovation and inclusive growth within communities, while supporting Fair Work First practices, creating new green jobs, upholding the highest environmental protections and supporting economic transformation. A Green Freeport bid has been submitted by the Glasgow City Region Cabinet for a multi-site bid centred around Mossend, Glasgow Airport for four sites in the Clyde region under single ownership within Inverclyde, West Dunbartonshire and Glasgow City. From a West Dunbartonshire perspective this means that land at Scotts Yard in Bowling and Rothesay Dock in Clydebank will be included in the bid. • 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. 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 won a European Heat Pump award during 2021 and was showcased globally during COP26. • 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 funds for a project requiring up to £20m with the Dumbarton Town Regeneration project. The second round of the Levelling Page 243
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 21 Management Commentary 12. The Financial Outlook, Key Risks and the Future (cont’d) Up Fund has now been announced and the Council will be submitting a bid for a large scale transportation project. • 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 are encouraged to collaborate with their neighbouring authorities to develop regional investment plans. West Dunbartonshire is working in partnership with Glasgow City Region Partners. The UK Government has allocated funds to the City Region with West Dunbartonshire share allocated by the UK Government in proportion to the population and level of need. West Dunbartonshire has been allocated up to £3.9 million. Local Authorities in the Glasgow City Region area have agreed to develop a regional approach to managing the relationship with the UKSPF Team. The Regional Investment Plan has to be finalised in August 2022 and is a pre-requisite for the release of UKSPF. While the commitment to a regional approach and single Investment Plan has been agreed, the identification of UKSPF priorities and therefore the targets for funding remains the preserve of each member local authority. 13. 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 Asset Management Strategy which was refreshed in December 2016 along with the Property Asset Management Plan. Service specific Asset Plans covering Open Spaces, Roads Structures, Housing and Vehicle, Fleet and Plant were all approved at the relevant service committees during 2017. Whilst the next update was due at the end of 2021 it was agreed this would be delayed by one year and brought back to Committee at the end of 2022 to ensure this was incorporated into the new Council Administration’s updated key strategic priorities. In addition an updated Property and Land Disposal Strategy 2021-2026 has been approved which seeks to maximize the benefit from Council assets which are surplus to requirement. Carbon Emissions and Energy Consumption The Council has met and exceeded its annual target set out in the Carbon Management Plan, emitting a total of 23,635 tons of carbon dioxide from our operations in 2020/21. This equates to a 3.1% reduction against the previous financial year, or a 28.3% total reduction overall against the 2012-13 baseline year. The Council approved a new Climate change Strategy in November 2020 which has set a target to reduce WDC carbon emissions to ‘net zero’ by 2045 which will align with Scottish Government targets. 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/ 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 Page 244
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 22 Management Commentary 13. Other Information (cont’d) environment. The Council carries out regular employee engagement, and seeks the views of the workforce through regular consultations with staff and trade unions. 14. Remuneration Report This report presents information on the remuneration of senior elected members and senior officers within the Council (pages 33 to 43). 15. 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: 2020/21 Outturn 2021/22 Target 2021/22 Outturn Housing Performance 18.11% 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 18.94% 1,718 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 1,805 8.53% 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% 9.11% £3.621m Amount of current/ former/ total tenant rent arrears Demonstrates the Council's effectiveness in collecting local housing rents n/a £4.027m 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% 2.00% (£0.040m) Movement in the free reserve balance Demonstrates variances contributing to the overall free reserve position n/a (£0.017m) 92.21% 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 99.99% Page 245
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 23 Management Commentary 15. Financial Performance Indicators (cont’d) 2020/21 Outturn 2021/22 Target 2021/22 Outturn General Services Performance £6.84 Cost of collecting council tax (per dwelling) Demonstrates the Council's effectiveness in collecting local taxation £5.00 £5.85 15.98% Council tax as a percentage of overall funding Demonstrates the amount of budget raised through council tax n/a 15.10% 94.18% In-year council tax collection rate Demonstrates the Council's effectiveness in collecting local taxation 93.50% 94.53% £35.624m Amount of income from council tax for the year that was received Demonstrates the Council's effectiveness in collecting local taxation n/a £36.485m 111% 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% 112% 2.19% 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% 2.06% £0.585m Movement in the free reserve balance Demonstrates variances contributing to the overall free reserve position n/a £0.166m 99.74% 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 99.93% Prudence And Affordability – Capital 4.07% 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 3.63% 3.28% 23.59% Ratio of financing costs to net revenue stream – HRA Demonstrates how much of the HRA revenue budget is used to support previous capital investment 25.07% 23.55% £646.190m Capital Financing Requirement The amount of planned capital expenditure not yet funded £698.886m £680.113m £644.951m External Debt Levels (including PPP) The amount of external debt held by the Council. Increases due to funding of the capital programme £697.556m £670.893m Page 246
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 24 Management Commentary 16. 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. 17. Conclusion The financial results show the Council’s finances in a fairly healthy position and, considering the ongoing significant financial pressures being faced by the Council, we have successfully managed our affairs within the budget set and the financial objectives prescribed. This is a satisfactory outcome and reflects well on both the efforts and professionalism of management, budget holders and on the council’s financial management and monitoring procedures. However the Council faces a significant financial challenge in 2023/24 and beyond due to reductions in funding, the impact of high levels of inflation and uncertainty over the rate and funding of future local government pay awards. 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: 9 November 2022 Date: 9 November 2022 Date: 9 November 2022 Page 247
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 25 Statement of Responsibilities The Authority’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; • to manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; • to ensure the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014 and the Coronavirus (Scotland) Act 2020) 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 • to approve the Annual Accounts for signature. I confirm that these Annual Accounts were authorised for issue on 9 November 2022. Signed on behalf of West Dunbartonshire Council Councillor Martin Rooney Leader of the Council Date: 9 November 2022 The Chief Officer - Resources Responsibilities: The Chief Officer - Resources is responsible for the preparation of the Authority’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 Code). In preparing this Statement of 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; and • 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; and • taken reasonable steps for the prevention and detection of fraud and other irregularities. 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 2022. Laurence Slavin Chief Officer - Resources Date: 9 November 2022 Page 248
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 26 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 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 2022 and up to the date of the approval of the Statement of Accounts. Page 249
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 27 Annual Governance Statement 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 2017/22, 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 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 reported 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 Finance 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. Page 250
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 28 Annual Governance Statement 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 15 June 2022. 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 & 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. Due to the COVID-19 pandemic, some audits from 2021/22 could not be carried out and have been rescheduled to take place in early 2022/23. 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 which began in late March 2020 and the Council’s responses as a Category 1 responder during the COVID-19 pandemic continued to test how well the Council’s risk management, governance and internal controls framework operated during 2021/22. This was achieved using amended governance arrangements, embracing new ways of decision-making, leadership and implementation including virtual meetings and secure remote access to systems to allow homeworking for Council employees as the Council moved forward through the recovery phase. All members of the Council’s Senior Leadership Team and key stakeholders participated in a variety of Local Authority specific Covid-19/Business Continuity response groups supported by the Civil Contingencies Service. A comprehensive Covid-19 Impact Risk Register was developed covering all aspects of service delivery affected by the pandemic which was maintained throughout 2021/22. Page 251
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 29 Annual Governance Statement Governance Issues and Planned Actions The following main issues and areas for improvement during 2021/22 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 2022/23. Improvement Area identified by 2021/22 Exercise Responsible Officer Embedding Be the Best Conversations within all service teams. Chief Officer, Citizen, Culture and Facilities Chief Officer, Supplies, Distribution and Property Work is required in some services to review and update business continuity planning documentation. Chief Officer, Housing and Employability Chief Officer, Resources 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 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. Chief Officer, Regulatory and Regeneration Chief Officer, People and Technology Appropriate and proportionate assurances will be sought from key partners and suppliers in relation to business continuity arrangements in place for managing key risks. Chief Officer, Education, Learning and Attainment Chief Officer, People and Technology Although improvement activity stimulated by external inspection and internal improvement activity is monitored by HSCP Board and relevant Projects, it is recognised that HSCP would benefit from establishing arrangements to ensure consistency in monitoring processes. Chief Officer, HSCP 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. Chief Officer, HSCP 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. Chief Officer, HSCP 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 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. Head of Mental Health, Addictions & Learning Disabilities 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. Chief Officer, Housing and Employability Page 252
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 30 Annual Governance Statement Improvement Area identified by 2021/22 Exercise Responsible Officer At the appropriate time a post-incident review will be carried out in relation to the COVID-19 Pandemic highlighting any lessons learned which will inform future emergency response and recovery arrangements. Chief Executive The 2020/21 Annual Governance Statement highlighted a range of areas for improvement during 2021/22. The following table provides an update on progress with these with a number having been completed or are areas which continue to have ongoing focus: Improvement Area identified by 2020/21 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 Following COVID-19 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. This will be resumed in line with easing of restrictions. Due to COVID-19 restrictions during 2020-21, 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. Ongoing. This will be resumed in line with easing of restrictions Improvement activity is ongoing within teams in order to develop and maintain strong supervision practices. Complete Although the Health and Safety team undertake the co- ordination role of Health and Safety Executive inspection reports to ensure that action plans are put in place, there is a need to ensure that there is regular review of action plan progress which will be included on agendas for 121 meetings between Chief Executive and Chief Officers going forward. Complete Work is ongoing to implement the Council’s information classification policy and procedure as part of the Microsoft Office 365 project. Ongoing as part of the Microsoft Office 365 rollout Within HSCP, work is ongoing with Healthcare Improvement Scotland in respect of self-evaluation activity. Complete Within HSCP, continue to undertake targeted interventions for areas with higher absence levels to support line managers and ensure individual absences are being managed in an appropriate manner to support return to work. Complete Within HSCP, governance processes developed for tracking of audit action plans and ensuring action deadlines are met will continue to be embedded. Complete Continue to develop plans in response to the ageing population. We continue to develop and review services in response to the changing demographic. Complete 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 Improved case recording and assessment for children and families who receive statutory social work services. Complete Page 253
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 31 Annual Governance Statement Improvement Area identified by 2020/21 Exercise Status 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. Ongoing At the appropriate time a post-incident review will be carried out in relation to the COVID-19 Pandemic highlighting any lessons learned which will inform future emergency response and recovery arrangements. Ongoing 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 West Dunbartonshire Health and Social Care Partnership (HSCP) has an interest in the governance arrangements within the HSCP. 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’s governance arrangements. The HSCP 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. The Chief Social Worker provides Council with an annual report on the performance of the HSCP. The financial arrangements for the Council’s funding to the HSCP are aligned and budget processes run parallel to ensure that appropriate budgets for the HSCP are aligned with Council policy and budgeting approaches, particularly in relation to ensuring any efficiency targets for the HSCP funding from the Council are planned for and appropriate efficiencies are approved by the HSCP. On an ongoing basis Council continues to receive budgetary control information in relation to HSCP 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. 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”. Page 254
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 32 Annual Governance Statement Assurance Subject to the above, and on the basis of the assurances provided, we consider the governance and internal control environment operating during 2021/22 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: 9 November 2022 Date: 9 November 2022 Date: 9 November 2022 Page 255
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 33 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 audited by Audit Scotland. The other sections are reviewed by Audit Scotland to ensure that they are consistent with the Financial Statements. a) Remuneration - Councillors The remuneration of Councillors is regulated by the Local Governance (Scotland) Act 2004 (Remuneration) Amendment Regulations 2021 (SSI No. 2021/18). 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 2021/22 the salary for the Leader of West Dunbartonshire Council was £37,213. The Regulations also state that the maximum yearly amount that may be paid to the Provost (£27,910) 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 (£27,910) is 75% of the total yearly amount payable to the Leader of the Council. For 2021/22 the total yearly amount payable by the Council for remuneration of all of its Senior Councillors shall not exceed £232,570. 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 £23,257, per the decision at Council on 17 May 2017 for 2017/18 onwards. During 2021/22, the Council agreed the appointment of a Council Leader, Provost, Bailie and 8 Senior Councillors and the remuneration due paid to the 8 Senior Councillors totalled £177,568 (£178,587 in 2020/21 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 2022 are shown in Table 5 on pages 40 and 41. The Scheme of Members Allowances which encompasses the salaries of all elected members including the Leader, Provost, Bailie and Senior Councillors was agreed at a meeting of the full Council on 17 May 2017. The report to Council (https://wdccmis.west- dunbarton.gov.uk/cmis5/Meetings/tabid/73/ctl/ViewMeetingPublic/mid/410/Meeting/8006/Committee/5 43/Default.aspx) and the Register of Members’ Expenses (https://www.west- dunbarton.gov.uk/council/councillors-and-committees/councillors-allowances/) is available online. Page 256
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 34 Remuneration Report Table 1: Remuneration of Senior Councillors Year ended 31 March 2022 2020/21 Name Position Salary, Fees & Allowances Taxable Expenses Non-cash Expenses, Benefits-in kind Total Remuneration Total Remuneration £ £ £ £ £ Jonathan McColl Leader of Council 37,213 0 0 37,213 35,713 Convener of Recruitment & Individual Performance Management Committee Convener of Sub Committee on Scheme of Delegation William Hendrie Provost 27,910 0 0 27,910 26,785 Karen Conaghan Depute Provost 23,254 0 0 23,254 22,338 Depute Leader Convener of Appeals Committee Convener of Educational Services Committee Caroline McAllister Depute Leader (to 29/3/2021) 18,644 0 0 18,644 22,275 Denis Agnew Bailie 23,257 0 0 23,257 22,320 Convener of West Dunbartonshire Health & Social Care Partnership (IJB) Convener of Cultural Committee Ian Dickson Convener of Corporate Services Committee 23,254 0 0 23,254 22,338 Convener of Tendering Committee Convener of Licensing Board Diane Docherty Convener of Housing & Communities Committee 23,254 0 0 23,254 22,338 Jim Finn Convener of Licensing Committee Convener of Planning Committee 23,257 0 0 23,257 22,320 Page 257
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 35 Remuneration Report Table 1: Remuneration of Senior Councillors (cont’d) Year ended 31 March 2022 2020/21 Name Position Salary, Fees & Allowances Taxable Expenses Non-cash Expenses, Benefits-in kind Total Remuneration Total Remuneration £ £ £ £ £ Iain Mclaren Convener of Infrastructure Regeneration & Economic Development Committee 23,254 0 0 23,254 22,338 Marie McNair Convener of West Dunbartonshire Health & Social Care Partnership (IJB) (to 1 June 2021) 19,394 0 0 19,394 22,320 John Mooney Convener of Audit Committee 23,257 0 0 23,257 22,320 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 2021/22 have only been included for Senior Councillors. Remuneration paid to all Councillors The Council paid the following salaries, allowances and expenses to all Councillors (including the Senior Councillors above) during the year: Restated 2020/21 2021/22 £ £ 459,853 Salaries 470,582 2,042 Expenses 4,020 461,895 Total 474,602 b) Remuneration - Senior Employees and Senior Employees of Subsidiaries Note: The annual return of Councillors’ salaries and expenses for 2021/22 is available for any member of the public to view at all Council libraries and public offices during normal working hours and is also available on the Council website at https://www.west- dunbarton.gov.uk/council/councillors-and-committees/councillors-allowances/ 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/151 sets the amount of salary for the Chief Officials of the Council for the period 1 April 2021 to 31 March 2022. 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 & Neighbourhood is a joint post between the Council and Inverclyde Council. Page 258
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 36 Remuneration Report b) Remuneration - Senior Employees and Senior Employees of Subsidiaries (cont’d) 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 2: Name Position at 31/03/22 Salary, Fees & Allowances 2021/22 Election Duties 2021/22 Total Remuneration 2021/22 Total Remuneration 2020/21 £ £ £ £ Remuneration of Senior Employees Joyce White Chief Executive 133,472 8,815 142,287 133,398 Richard Cairns Strategic Director of Regeneration, Environment & Growth (seconded role from 1/10/2020) 115,070 0 115,070 115,158 Jonathan Hinds Head of Children’s Healthcare & Criminal Justice - Chief Social Work Officer (to 29 August 2021) 37,598 (FYE 88,165) 0 37,598 (FYE 88,165) 88,190 Lesley James Head of Children’s Healthcare & Criminal Justice - Chief Social Work Officer (from 6 Dec 2021) 27,411 (FYE 88,322) 0 27,411 (FYE 88,322) 0 Laura Mason Chief Officer - Education, Learning & Attainment 96,399 0 96,399 89,645 Stephen West Chief Officer - Resources - S95 Officer (to 3 Jan 2022) 73,912 (FYE 95,872) 0 73,912 (FYE 95,872) 93,588 Laurence Slavin Chief Officer - Resources - S95 Officer (from 3 Jan 2022) 22,357 (FYE 92,817) 0 22,357 (FYE 92,817) 0 Peter Hessett Chief Officer - Regulatory & Regeneration 96,804 5,498 102,302 91,062 Victoria Rogers Chief Officer - People & Technology 96,804 350 97,154 91,062 Angela Wilson Chief Officer - Supply, Distribution & Property 115,070 0 115,070 115,158 Peter Barry Chief Officer - Housing & Employability 96,804 0 96,804 91,062 Malcolm Bennie Chief Officer - Citizen, Culture & Facilities (to 2 Jan 2022) 71,292 (FYE 95,872) 140 71,432 (FYE 96,012) 89,534 Amanda Graham Chief Officer - Citizen, Culture & Facilities (from 5 Jan 2022) 74,340 (FYE 92,817) 380 74,720 (FYE 93,197) 0 Remuneration of Senior Employees of Subsidiaries John Anderson General Manager of West Dunbartonshire Leisure 77,780 0 77,780 76,912 Page 259
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 37 Remuneration Report b) Remuneration - Senior Employees and Senior Employees of Subsidiaries (cont’d) Election payments for 2021/22 are for the Scottish Parliamentary Election held on the 6 May 2021. There were no elections during 2020/21. Details of the post of Chief Officer-Health & Social Care Partnership 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 £60,897 (including employer on costs). The amounts for post of Strategic Director of Regeneration, Environment & Growth relate to the salary, fees and allowances and employer pension contributions paid by the Council. Glasgow City Council fund 75% of the salary and pension contributions for the seconded role. Notes 1. The term senior employee means any local authority employee: • who has responsibility for the management of the local authority to the extent that the person has the power to direct or control the major activities of the authority (including activities involving the expenditure of money), during the year to which the Report relates, whether solely or collectively with other persons; • who holds a post that is politically restricted by reason of section 2(1) (a), (b) or (c) of Local Government and Housing Act 1989 (4); or • whose annual remuneration, including any remuneration from a local authority subsidiary body, is £150,000 or more. 2. The figure for gross salary, fees and allowances shown for senior employees for the year ended 31 March 2022 includes any amounts received for the roles performed for West Dunbartonshire in the elections. There was one election during 2021/22 (Scottish Parliamentary Election). There were no elections during 2020/21. 3. The Local Government (Discretionary Payments and Injury Benefits) (Scotland) Regulations 1998 make provision for authorities to make discretionary payments to local government employees to pay compensation for premature retirement. There were no discretionary payments made to senior employees during the year. c) 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 the table 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. Page 260
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 38 Remuneration Report c) Remuneration of Employees receiving more than £50,000 Table 3: Remuneration of Employees Number of Employees 2021/22 2020/21 £50,000 - £54,999 128 140 £55,000 - £59,999 46 43 £60,000 - £64,999 28 22 £65,000 - £69,999 48 52 £70,000 - £74,999 10 3 £80,000 - £84,999 1 2 £85,000 - £89,999 4 6 £90,000 - £94,999 0 7 £95,000 - £99,999 5 0 £100,000 - £104,999 1 0 £115,000 - £119,999 3 3 £130,000 - £134,999 0 1 £140,000 - £144,999 1 0 Total 275 279 d) 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 2022 are shown in Table 5 on pages 40 and 41. The table details the pension entitlement and contributions made by the Council in respect of all senior Councillors 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 4 provides information on these tiered contribution rates. Page 261
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 39 Remuneration Report d) Pension Benefits (Cont’d) Table 4: Contribution Rate Contribution rate 2021/22 Contribution rate 2020/21 The tiers and members contribution rates for 2021/22 whole time pay: Local Government employees On earnings up to and including £22,300 (£22,200) 5.50% 5.50% On earnings above £22,300 (£22,200) and up to £27,300 (£27,100) 7.25% 7.25% On earnings above £27,300 (£27,100) and up to £37,400 (£37,200) 8.50% 8.50% On earnings above £37,400 (£37,200) and up to £49,900 (£49,600) 9.50% 9.50% On earnings above £49,900 (£49,600) 12.00% 12.00% The tiers and members contribution rates for 2021/22 actual pay: Teachers On earnings up to and including £ 28,309 (£28,168) 7.20% 7.20% On earnings above £28,309 (£28,168) and up to £38,108 (£37,918) 8.70% 8.70% On earnings above £ 38,108 (£37,918) and up to £45,186 (£44,961) 9.70% 9.70% On earnings above £45,186 (£44,961) and up to £ 59,884 (£59,586) 10.40% 10.40% On earnings above £ 59,844 (£59,586) and up to £81,659 (£81,253) 11.50% 11.50% On earnings above £81,659 (£81,253) 11.90% 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). Page 262
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 40 Remuneration Report Table 5: Pension Benefits of Senior Councillors; Senior Employees and Senior Employees of Subsidiaries In-year pension contributions Accrued pension benefits Name Position at 31/03/22 For year to 31 March 2022 For year to 31 March 2021 As at 31 March 2022 As at 31 March 2021 Senior Councillors £ £ £ £ Jonathan McColl Leader of Council 7,182 6,893 9,927 8,643 Convener of Sub Committee on Scheme of Delegation Convener of Recruitment & Individual Performance Management Committee Denis Agnew Bailie 4,489 4,308 8,303 7,324 Convener of West Dunbartonshire Health & Social Care Partnership (IJB) Convener of Cultural Committee John Mooney Convener of Audit Committee 4,489 4,308 4,445 3,867 Karen Conaghan Depute Provost 4,480 4,298 2,268 1,785 Depute leader Convener of Appeals Committee Convener of Educational Services Committee Ian Dickson Convener of Corporate Services Committee 4,480 4,298 2,268 1,785 Convener of Tendering Committee Convener of Licensing Board Diane Docherty Convener of Housing & Communities Committee 4,480 4,298 2,268 1,785 Jim Finn Convener of Licensing Committee 4,489 4,308 5,002 4,357 Convener of Planning Committee Caroline McAllister Depute Leader (to 29/3/2021) 3,570 4,298 2,173 1,785 Iain McLaren Convener of Infrastructure Regeneration & Economic Development Committee 4,480 4,298 2,268 1,785 Page 263
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 41 Remuneration Report Table 5: Pension Benefits of Senior Councillors; Senior Employees and Senior Employees of Subsidiaries (cont’d) In-year pension contributions Accrued pension benefits Name Position at 31/03/22 For year to 31 March 2022 For year to 31 March 2021 As at 31 March 2022 As at 31 March 2021 Senior Employees £ £ £ £ Joyce White Chief Executive 27,404 25,667 40,989 38,005 Richard Cairns Strategic Director of Regeneration, Environment & Growth (seconded role from 1/10/2020) 24,037 22,157 72,805 70,397 Jonathan Hinds Head of Children’s Healthcare & Criminal Justice - Chief Social Work Officer (to 29 Aug 2021) 6,853 16,970 60,925 60,163 Lesley James Head of Children’s Healthcare & Criminal Justice - Chief Social Work Officer (from 6 Dec 2021) 5,431 0 592 0 Laura Mason Chief Officer - Education, Learning & Attainment 18,605 17,302 137,027 135,105 Stephen West Chief Officer - Resources - S95 Officer (to 3 Jan 2022) 14,065 18,009 131,249 127,902 Laurence Slavin Chief Officer - Resources - S95 Officer (from 3 Jan 2022) 4,466 0 473 0 Peter Hessett Chief Officer - Regulatory & Regeneration 18,646 17,535 98,687 94,312 Victoria Rogers Chief Officer - People & Technology 18,646 17,535 72,996 69,349 Angela Wilson Chief Officer-Supply, Distribution & Property 22,157 22,157 161,987 159,556 Peter Barry Chief Officer - Housing & Employability 18,646 17,535 60,535 57,241 Malcolm Bennie Chief Officer - Citizen, Culture & Facilities (to 2 Jan 2022) 13,751 17,263 18,992 17,502 Amanda Graham Chief Officer - Citizen, Culture & Facilities (from 5 Jan 2022) 14,357 0 10,103 0 Senior Employees of Subsidiaries John Anderson General Manager of West Dunbartonshire Leisure 14,979 14,799 59,796 57,718 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 2022 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 264
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 42 Remuneration Report e) Exit Packages There were no exit packages agreed during 2021/22. Banding Number of departures Total cost 2021/22 2020/21 2021/22 2020/21 £ £ £0 - £20,000 0 4 0 8,033 £20,001 - £40,000 0 2 0 57,403 Total 0 6 0 65,436 f) Trade Union Facility Time 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 2022 is shown in Table 7 below. Further detail can be found at: https://www.west-dunbarton.gov.uk/council/performance-and-spending/trade-union-facility-time- reports/ Table 7 Education Function Employee Representatives All Other Function Employee Representatives Number of Employees FTE employee Number Number of Employees FTE employee Number 37 31 56 52 Percentage of Time Spent on Facility Percentage of Time Spent on Facility Percentage Number of Employees Percentage Number of Employees Less < 1% 27 Less < 1% 37 1-50% 9 1-50% 17 51%-99% 1 51%-99% 0 100% 0 100% 2 Total cost of facility time Total cost of facility time £97,862 £97,973 Total pay bill Total pay bill £58,699,980 £158,326,164 Percentage of Pay Bill Spent on Facility Time Percentage of Pay Bill Spent on facility Time 0.17% 0.06% Paid TU Activities Paid TU Activities 1.17% 22.00% Page 265
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 43 Remuneration Report Martin Rooney Peter Hessett Leader of the Council Chief Executive Date: 9 November 2022 Date: 9 November 2022 Page 266
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 44 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. Further detail on the expenditure and income within the Net Cost of Services below is available in Note 16 on pages 87 to 91. Restated Restated Restated 2020/21 2020/21 2020/21 2021/22 2021/22 2021/22 Gross Gross Net Gross Gross Net Expenditure Income Expenditure Expenditure Income Expenditure £000 £000 £000 Note £000 £000 £000 Service 67,300 (41,419) 25,881 Corporate Services 70,188 (37,337) 32,851 116,612 (17,593) 99,019 Educational Services 134,332 (15,317) 119,015 64,835 (14,839) 49,996 Infrastructure, Regeneration and Economic Development 66,182 (13,334) 52,848 37,083 (32,922) 4,161 Housing and Communities 39,631 (31,853) 7,778 30,515 (43,031) (12,516) Housing Revenue Account 58,847 (44,363) 14,484 8,597 (6,117) 2,480 Miscellaneous Services 7,021 (8,501) (1,480) 177,261 (101,678) 75,583 Health and Social Care Partnership 191,951 (107,449) 84,502 2,339 0 2,339 Requisitions 2,517 0 2,517 504,542 (257,599) 246,943 Net Cost of Service (1) 570,669 (258,154) 312,515 883 (Gain) / loss on Disposal of Fixed Assets 998 883 Other Operating Expenditure (2) 998 (36,765) Council Tax (38,207) (55,963) 11 Non-Domestic Rates (81,408) (153,086) 11 Revenue Support Grant (133,404) (26,210) 11 Recognised Capital Income (Grants, Contributions & Donations) (7,746) (272,024) Taxation and Non-specific Grant Income (3) (260,765) Page 267
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 45 Comprehensive Income and Expenditure Statement Restated 2020/21 Restated 2020/21 Restated 2020/21 2021/22 2021/22 2021/22 Gross Gross Net Gross Gross Net Expenditure Income Expenditure Expenditure Income Expenditure £000 £000 £000 Note £000 £000 £000 (165) 28 Interest Earned (81) 19,180 28 External Interest Payable / Similar Charges 17,865 1,382 Impairment Loss - Debtors 1,101 3,379 14 Pension Interest Cost/Expected Return on Pension Assets 3,557 23,776 Finance/Investment Income and Expenditure (4) 22,442 (422) (Surplus)/Deficit on Provision of Services (5) = (1)+(2)+(3)+(4) 75,190 22,767 (Surplus)/Deficit arising from revaluation of property, plant and equipment (6,039) 0 (Surplus)/Deficit on revaluation of available for sale assets (300) 12,934 14 Actuarial (gains)/losses on pension fund assets and liabilities (140,041) 35,701 Other Comprehensive (Income) and Expenditure (6) (146,380) 35,279 Total Comprehensive (Income) and Expenditure (5) + (6) (71,190) Page 268
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 46 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 (pages 44 and 45) 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. Usable Reserves General Fund balance HRA Balance Capital Receipts Reserve Capital Grants and Receipts Unapplied Account Capital Reserve Capital Fund Other Reserves Total Usable Reserves Unusable Reserves Total Reserves Note £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 2021/22 Opening Balance at 1 April 2021 (15,028) (7,364) 0 (42) (1,469) 0 (308) (24,211) (231,721) (255,932) Movement in reserve 2021/22 Total Comprehensive Expenditure and Income 55,921 19,269 0 0 0 0 0 75,190 (146,380) (71,190) Adjustments between accounting basis and funding basis under regulations 7 (53,525) (14,944) (30) (1,837) 0 (403) 0 (70,739) 70,739 0 Net (Increase)/Decrease before Transfers to Other Statutory Reserves 2,396 4,325 (30) (1,837) 0 (403) 0 4,451 (75,641) (71,190) Transfers to/from other statutory reserves Loan Premiums 403 305 0 0 0 0 0 708 (708) 0 CIRF 160 0 0 0 0 0 (160) 0 0 0 Sinking Fund (711) 0 0 0 711 0 0 0 0 0 Capital receipts - Premiums (403) 0 0 0 0 403 0 0 0 0 Capital receipts - Transformation (383) 0 0 383 0 0 0 0 0 0 Capital receipts - COVID (1,454) 0 0 1,454 0 0 0 0 0 0 Closing Balance at 31 March 2022 (15,020) (2,734) (30) (42) (758) 0 (468) (19,052) (308,070) (327,122) Page 269
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 47 Movement in Reserves Statement Usable Reserves General Fund balance HRA Balance Capital Receipts Reserve Capital Grants and Receipts Unapplied Account Capital Reserve Capital Fund Other Reserves Total Usable Reserves Unusable Reserves Total Reserves Note £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 2020/21 (restated) Opening Balance at 1 April 2020 (9,395) (3,924) 0 (132) (2,169) 0 (214) (15,834) (275,377) (291,211) Movement in reserve 2020/21 Total Comprehensive Expenditure and Income 11,040 (11,462) 0 0 0 0 0 (422) 35,701 35,279 Adjustments between accounting basis and funding basis under regulations 7 (15,281) 7,669 0 (279) 0 (916) 0 (8,807) 8,807 0 Net (Increase)/Decrease before Transfers to Other Statutory Reserves (4,241) (3,793) 0 (279) 0 (916) 0 (9,229) 44,508 35,279 Transfers to/from other statutory reserves (1,392) 353 0 369 700 916 (94) 852 (852) 0 Closing Balance at 31 March 2021 (15,028) (7,364) 0 (42) (1,469) 0 (308) (24,211) (231,721) (255,932) Page 270
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 48 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, i.e. those 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); and 2. Unusable reserves, i.e. those 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’. Restated 2020/21 2021/22 £000 Note £000 1,048,530 17 Property, Plant and Equipment 1,051,605 271 18 Intangible Assets 617 22 Long Term Debtors 21 1,406 20 Heritage Assets 1,485 489 Long Term Investments 882 1,050,718 Long Term Assets 1,054,610 7,755 19 Assets Held for Sale 5,417 1,338 Inventories 1,279 66,620 24 Short Term Debtors 67,568 12,241 27 Cash and Cash Equivalents (net) 2,140 87,954 Current Assets 76,404 (53) Donated Inventories (76) (72,858) 29 Short Term Creditors (75,140) (263,861) 28 Short Term Borrowing (270,923) (3,677) 23 PPP (3,370) (340,449) Current Liabilities (349,509) 798,223 781,505 (284,798) 28 Long Term Borrowing (307,485) (92,615) 23 PPP and Finance Lease Liabilities (89,115) (163,615) 14 Net Pensions Liability (55,690) (1,263) 11 Capital Grants Receipts in Advance (2,093) (542,291) Long Term Liabilities (454,383) 255,932 Net Assets 327,122 Represented by: 24,211 MIR/31 Usable Reserves 19,052 231,721 MIR/31 Unusable Reserves 308,070 255,932 Total Reserves 327,122 The unaudited Financial Statements were authorised for issue on 30 June 2022 and the audited Financial Statements were authorised for issue on 9 November 2022. Laurence Slavin Chief Officer - Resources West Dunbartonshire Council Date: 9 November 2022 Page 271
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 49 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. 2020/21 2021/22 2021/22 £000 £000 £000 Operating Activities 2,742 Net deficit on the provision of services 75,190 (39,121) Depreciation, amortisation and impairment (65,954) (884) Net gain/loss on fixed assets (1,006) (16,604) Movement in pension liabilities (32,116) 54 Movement in inventories (82) 21,536 Movement in debtors 376 (25,795) Movement in creditors and provisions (6,345) 351 Other non-cash movements 272 (60,463) Adjustments to net deficit on the provision of services for non-cash movements (104,855) 6 Financing movements 15 26,210 Investing movements 7,746 26,216 Adjustments for items included in the net surplus/deficit on the provision of services that are investing and financing activities 7,761 (31,505) Net cash inflow from Operating Activities (21,904) 88,866 Purchase of property, plant and equipment and intangible assets 66,167 (1,284) Proceeds from sale of property, plant and equipment and intangible assets (2,262) (6) Movement on long term investments 393 (17,810) Other receipts from investing activities (6,943) 69,766 Net cash outflows from investing activities 57,355 (270,250) Cash receipts of short-term and long-term borrowing (350,501) 3,652 Repayment of PPP liabilities 3,808 235,115 Repayment of short-term and long-term borrowing 320,751 42 Debtors held for agency payments (888) (2,023) Creditors held for agency payments 1,480 (33,464) Financing Activities (25,350) 4,797 10,101 17,038 Cash and cash equivalents at the beginning of the reporting period 12,241 (12,241) Cash and cash equivalents at the end of the reporting period (2,140) 4,797 Movement – (Increase)/ Decrease in Cash 10,101 Page 272
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 50 Notes to the Financial Statements Note 1 - Accounting Policies 1. General Principles The Financial Statements summarises the Council’s transactions for the 2021/22 financial year and its position at the year end of 31 March 2022. 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 2021/22 (“the code”) and the Service Reporting Code of Practice 2021/22, 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. 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 sale of goods is recognised when the Council transfers the significant risks and rewards of ownership to the purchaser and when it is probable that the economic benefits associated with the transaction will flow to the Council; • revenue from the provision of services is recognised when the Council can measure reliably the percentage of completion of the transaction and when it is probable that the economic benefits associated with the transaction will flow to the Council; • 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 on the basis of the effective interest rate for the relevant financial instrument, rather than on cash flows fixed or determined by the contract; • where 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; and • 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. 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. Page 273
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 51 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) 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; and • 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. 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. 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. 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. Page 274
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 52 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) Measurement 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; and • 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. Where property, plant or equipment are acquired in exchange for a non monetary asset or assets, or a combination of monetary and non monetary assets, the cost of the acquired item shall be measured at fair value unless there is no economic substance to the exchange transaction, or the fair value of neither the asset received nor the asset given up can be reliably measured. The acquired item is measured at fair value even if the Council cannot immediately derecognise the asset given up. The acquired item is measured at the carrying amount of the asset given up if it is not measured at fair value. Assets are then carried in the Balance Sheet using the following measurement bases: Asset Type Valuation Method Infrastructure, community and assets under construction assets Historic Cost Council dwellings Fair value - determined in accordance with existing use value of social housing (EUV-SH) Other buildings Fair value. Where there is no market based evidence of fair value because of the specialised nature of the asset and the asset is rarely sold, depreciated replacement cost is used as an estimate of fair value Plant and equipment and other non property assets Fair value. Where assets in this class have either short useful lives or low values (or both), depreciated historical cost is considered to be a proxy for fair value where the useful life is a realistic reflection of the life of the asset and the depreciation method provides a realistic reflection of the consumption of the asset class Revaluation Assets included in the Balance Sheet at fair value are re-valued regularly to ensure their carrying amount is not materially different from the fair value at the year end, as a minimum every five years. The programme of revaluation for 2021/22 and planned each of the following four years is as follows: 2021/22 Offices / depots/ cemeteries/ crematorium lodges; 2022/23 All Council non-operational properties/ HRA housing stock; 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; and 2025/26 Any properties not previously re-valued / general re-appraisal / HRA housing stock. Page 275
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 53 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) 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; and • 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 2021/22 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. 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 total gain); 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. Impairment Where impairment losses are identified, they are accounted for in the same way as revaluation decreases. 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. 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 either a surplus asset or an Asset 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. Assets to be scrapped are not re-classified as Assets Held for Sale. Page 276
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 54 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) When an asset is disposed of or decommissioned, both the carrying amount in the Balance Sheet and receipts from disposal are transferred to the Surplus and Deficit on the Provision of Services line in the Comprehensive Income and Expenditure Statement as part of a gain or loss on sale. Any revaluation gains accumulated for the asset in the Revaluation reserve are transferred to the Capital Adjustment Account. Disposal and Derecognition of Infrastructure Assets When a component of an infrastructure asset is disposed of or decommissioned, the carrying amount of the component in the Balance Sheet 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). The written-off amounts of 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 transferred to the Capital Adjustment Account from the General Fund Balance in the Movement in Reserves Statement. Where any part of infrastructure assets are replaced, an adaptation provided in a separate update to the Code assumes that from the introduction of the IFRS based Code when parts of an asset are replaced or restored the carrying amount of the derecognised part will be zero because parts of infrastructure assets are rarely replaced before the part has been fully consumed. Amounts received for a disposal are categorised as capital receipts. The balance of receipts is credited to either the Capital Receipts Reserve or the Capital Fund and can only be used for new 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. 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 277
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 55 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) Tangible fixed assets and depreciation – Common Good Assets All assets valued over £6,000 are capitalised and valued at market value. Depreciation is charged on assets other than Investment assets on a straight line basis over their estimates life. The Fund only holds investment assets. 7. 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. 8. Heritage Assets Heritage assets are presented separately in the balance sheet from other property, plant and equipment. The assets are measured at historic cost or fair value. Where the Council considers that it is not practical to obtain a reliable valuation, the asset is not recognised on the Balance Sheet. Where assets are measured at fair value, valuations are made by any method that is appropriate: 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 278
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 56 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) 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. Work in progress is valued at cost plus an appropriate proportion of overheads, together with attributable profits and allowances for foreseeable losses. 10. Employee Benefits 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. 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 accruals 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. 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; and • the Local Government Pensions Scheme, administered by Glasgow City Council. 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. Page 279
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 57 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) 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. 11. 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; and • 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. 12. 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. 13. 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. Gains and losses on the repurchase or early settlement of borrowing are credited or debited to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement in the year of repurchase/settlement. However, where repurchase has taken place as part of a restructuring of the loan portfolio that involves the modification or exchange of existing instruments, the premium or discount is respectively deducted from or added to the amortised cost of the new or modified loan and the write-down to the Comprehensive Income and Expenditure Statement is spread over the life of the loan by an adjustment to the effective interest rate. Where premiums and discounts have been charged to the Comprehensive Income and Expenditure Statement regulations allow the impact on the General Fund balance to be spread over future years. Premiums and discounts that were on the balance sheet as at 31 March 2007 are written off in accordance with the schedules in place at that time, however premiums and discounts that are incurred as a result of transactions that have taken place since 1 April 2007 are written off in accordance with regulations as follows: Page 280
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 58 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) Modified Loans • both old and new premiums and discounts are amortised over the life of the new loan using the effective interest rate as noted above. Unmodified Loans • new premiums and discounts are written off over the life of the new loan (if fixed) or over a maximum of 20 years (if variable or with an option to vary); • old premiums are written off over a maximum of 20 years; and • old discounts are written off over a maximum of 5 years. Straight Repayment • both old and new premiums and discounts are written off over a maximum of 5 years. 14. Financial Assets Financial assets are classified using a principles based approach with the accounting treatment being determined by both the particular characteristics of the individual instrument and the overarching investment strategy under which the instrument has been acquired or originated. Three classes of financial asset have been identified: • amortised cost; • fair value through other comprehensive income; and • fair value through profit or loss Amortised Cost For assets carried at amortised cost interest is credited (using the effective interest rate) and movements in impairment loss allowances are debited or credited to surplus or deficit on the provision of services with no recognition of gains or losses in fair value until reclassification or derecognition of the asset. Fair Value Through Other Comprehensive Income For assets carried at fair value through other comprehensive income movements in amortised cost are debited or credited to the surplus or deficit on the provision of services with movements in fair value debited or credited to other comprehensive income and expenditure. Fair Value Through Profit or Loss For assets carried at fair value through profit or loss all gains or losses are posted to surplus or deficit on the provision of services as they arise. Financial assets are classified into two types: • loans and receivables – assets that have fixed or determinable payments but are not quoted in an active market; and • available-for-sale assets – assets that have a quoted market price and/or do not have fixed or determinable payments Loans and Receivables Loans and receivables 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. Page 281
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 59 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) They are then measured at their amortised cost. Annual credits to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement for interest receivable are based on the carrying amount of the asset multiplied by the effective rate of interest for the instrument. Where considered material movements in impairment loss allowances are also debited or credited as appropriate. For most other the loans that the Council has made, this means that the amount presented in the Balance Sheet is the outstanding principal receivable (plus accrued interest) and interest credited to the Comprehensive Income and Expenditure Statement is the amount receivable for the year in the loan agreement. Where soft loans are made and are material, a loss is recorded in the Comprehensive Income and Expenditure Statement (debited to the appropriate service line) for the present value of the interest that will be foregone over the life of the loan, resulting in a lower amortised cost than the outstanding principal. Interest is credited to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement at a marginally higher effective rate of interest than the rate receivable from the community groups, with the difference increasing the amortised cost of the loan in the Balance Sheet. Statutory provisions require that the impact of soft loans on the General Fund balance is the interest receivable for the financial year – the reconciliation of amounts debited or credited to the Comprehensive Income and Expenditure Statement to the net gain required against the General Fund balance is managed by a transfer to or from the Financial Instruments Adjustment Account in the Movement in Reserves Statement. Instruments Entered Into Since 1 April 2006 Any financial guarantees the Council has committed to since 1 April 2006 have been recognised at fair value and assessed for probability of the guarantee being called and the likely amount payable under the guarantee. Any material provision for this has been recognised in the Financial Statements to the extent that provisions might be required or a contingent liability note is needed. 15. Fair Value Measurement The Council measures some on its non-financial assets and some of its financial instruments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement assumes that the transaction to sell the asset takes place either: • in the principal market for the asset or liability; or • in the absence of a principal market, in the most advantageous market for the asset The Council measures the fair value of an asset or liability using the assumptions that market participants would use when pricing the asset, assuming that market participants act in their economic best interest. When measuring fair value of a non-financial asset, the Council takes into account a market participant’s ability to generate economic benefit by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The authority uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Inputs to the valuation techniques in respect of assets for which fair value is measured or disclosed in the Council’s financial statements are categorised within the fair value hierarchy as follows: Page 282
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 60 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) • Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that the authority can access at the measurement date; • Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and • Level 3 – unobservable inputs for the asset or liability. 16. 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, and • 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. 17. 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. 18. 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 283
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 61 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) 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; and • 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. 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); and • 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 fixed 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. Page 284
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 62 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) 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. 19. 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 2021/22. 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. 20. 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. 21. 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. 22. Impairment of Debt Any changes to the impairment value of debt is charged to the appropriate line in the Comprehensive Income and Expenditure Statement. This includes impairment of outstanding Council Tax, Non Domestic Rates, Rent and other sundry debt. To calculate the level of impairment required consideration is given to the type of debt, the age of debt, arrangements for repayment by the debtor, historic movement of the debt. 23. 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. Page 285
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 63 Notes to the Financial Statements Note 1 - Accounting Policies (cont’d) 24. 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. 25. 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 – Prior Year Restatement In order to ensure 2020/21 figures are on a comparable basis to 2021/22 figures, there has been prior year adjustments to incorporate the impact of misclassification of assets and to correct errors in depreciation calculations and the removal of additional internal recharges. The detail held within the Comprehensive Income and Expenditure Statement, Movement in Reserves and Balance Sheet require adjusted for the corrections. The effects of the restatement on the Financial Statements are as follows (only those lines that have changed are shown): Prior Year Adjustments As previously stated depreciation adjustment revaluation adjustment 2017/18 - 2019/20 revaluation adjustment removal of internal recharges Restated £000 £000 £000 £000 £000 £000 Comprehensive Income and Expenditure Statement Expenditure Gross Corporate Services 67,986 0 0 (686) 67,300 IRED 67,809 1 0 (2,975) 64,835 Housing Revenue Account 34,003 (3,165) 0 (323) 30,515 Net Cost of Service 511,690 (3,164) 0 (3,984) 504,542 Income Gross Corporate Services (42,105) 686 (41,419) IRED (17,814) 2,975 (14,839) Housing Revenue Account (43,354) 323 (43,031) Net Cost of Service (261,583) 0 0 3,984 (257,599) Net Expenditure Corporate Services 25,881 0 0 0 25,881 IRED 49,995 1 0 0 49,996 Housing Revenue Account (9,351) (3,165) 0 0 (12,516) Net Cost of Service 250,107 (3,164) 0 0 246,943 (Surplus)/Deficit on Provision of Services 2,742 (3,164) (422) (Surplus)/Deficit arising from revaluation of PPE (49,393) 72,160 22,767 Other Comprehensive Income and Expenditure (36,459) 72,160 35,701 Total Comprehensive Income and Expenditure (33,717) (3,164) 72,160 35,279 Page 286
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 64 Notes to the Financial Statements Note 2 – Prior Year Restatement (cont’d) Prior Year Adjustments As previously stated depreciation adjustment revaluation adjustment 2017/18 - 2019/20 revaluation adjustment removal of internal recharges Restated £000 £000 £000 £000 £000 £000 Balance Sheet Property, Plant and Equipment 1,111,227 3,164 6,299 (72,160) 1,048,530 Net Assets 860,920 3,164 6,299 (72,160) 798,223 Total Assets less Liabilities 318,629 3,164 6,299 (72,160) 255,932 Unusable Reserves 294,418 3,164 6,299 (72,160) 231,721 Total Reserves 318,629 3,164 6,299 (72,160) 255,932 Movement in Reserves Opening Balance – Unusable (269,078) (6,299) (275,377) Total Comprehensive Expenditure and Income - General Services 11,039 1 11,040 Total Comprehensive Expenditure and Income - HRA (8,297) (3,165) (11,462) Adjustments between accounting basis and funding basis under regulations - General Services (15,280) (1) (15,281) Adjustments between accounting basis and funding basis under regulations - HRA 4,504 3,165 7,669 Total Comprehensive Expenditure and Income - Total Usable Reserves 2,742 (3,164) (422) Adjustments between accounting basis and funding basis under regulations - Total Usable Reserves (11,971) 3,164 (8,807) Total Comprehensive Expenditure and Income - Unusable Reserves (36,459) 72,160 35,701 Adjustments between accounting basis and funding basis under regulations - Unusable Reserves 11,971 (3,164) 8,807 Total Comprehensive Expenditure and Income - Total Reserves (33,717) (3,164) 72,160 35,279 Page 287
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 65 Notes to the Financial Statements Note 3 – 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 (£104m) is included within the Property, Plant and Equipment (note 17) and the liability within note 23 - Private Finance Initiatives and similar Contracts (£92m). Public Sector Funding – There is a high degree of uncertainty about future levels of funding for local government. The Council has a Longer Term Financial Strategy, updated and reported to Council annually, which provides a list of current assumptions over a 10 year period regarding funding. However, the Council has determined that this uncertainty is not yet sufficient to provide an indication that the assets held might require to be impaired as a result of a need to close facilities and reduce levels of service provision. 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. In 2021/22 funding was provided by the Scottish Government through the Council to businesses and individuals affected by the COVID pandemic. Any agency funding is noted within Note 10 (Agency Services), with further detail of COVID related grants shown and cross referred in Note 11 (Grant Income). 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 can not be quantified, it will be disclosed as a Contingent Liability (Note 32). 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 4 – 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 2022, for which there is a significant risk of material adjustment in the forthcoming financial year are noted below. Examples are provided of each potential uncertainty and the effect it would have within the Financial Statement are also noted. These examples provide an understanding of the significance of a small change in the estimation assumption: Page 288
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 66 Notes to the Financial Statements Note 4 – Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty (cont’d) Estimation assumptions which impact within the next 12 months: Item Uncertainty Potential effect 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. The Council’s valuers considered uncertainty regarding the valuation of assets following COVID and have concluded that the valuations are not subject to ‘material valuation uncertainty’ due to the current economic climate as at the valuation date. 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 £890.763m. During 2021/22 the assets that were revalued are now held in the Balance Sheet to a total value of £40.454m for General Services and £12.100m for HRA (new dwellings) The impact for each 1% change in these valuations would be £0.404m General Services and £0.121m HRA 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. 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 lives of assets were too high, it is estimated that the annual depreciation charge for buildings would increase by £1.551m for every year that useful lives had to be reduced, resulting in a further charge to that value through the Comprehensive Income and Expenditure Statement and the value of the assets held in the Council’s Balance Sheet would also be reduced by the same value. Any change would not affect the reserves position of the Council. Arrears and bad debts As at 31 March 2022, the Council had a balance of various debtors of £67.568m with a sliding scale of bad debt provision written against each type, depending on the age of the debt. For example of the council tax debt of £42.907m, the Council holds £25.334m as a provision for doubtful debts; of the debt held for HRA rents of £4.027m, £2.444m is held as a provision for doubtful debts. If collection rates were to deteriorate, the provision for bad debts would require to be reviewed to consider the appropriate level of provision. If a 10% increase was considered appropriate, this would result in a further £2.533m being required to be provided for council tax provision and £0.244m for an HRA rent provision. Any change in the provision would affect the reserves position of the Council. However, based upon prior experience, in year movements and with each type of debt considered individually, the bad debt provision is considered adequate. Page 289
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 67 Notes to the Financial Statements Note 4 – Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty (cont’d) Item Uncertainty Potential effect Fair Value Measureme -nt When the fair value of financial assets and financial liabilities cannot be measured based on quoted prices in active markets (i.e. Level 1 inputs), their fair value is measured using valuation techniques (e.g. quoted prices for similar assets or liabilities in active markets or the discounted cash flow (DCF) model). Where possible, the inputs to these valuation techniques are based on observable data, but where this is not possible judgement is required in establishing fair values. These judgements typically include considerations such as uncertainty and risk. Changes in the assumptions used could affect the fair value of the Council’s assets and liabilities. Where Level 1 inputs are not available, the Council utilises relevant experts to identify the most appropriate valuation techniques (for example for surplus assets and non-current assets held for sale, the Council’s estates valuer and for financial instruments the Council’s treasury advisors). Information about the valuation techniques and inputs used in determining the fair value of the Council’s assets and liabilities is disclosed in notes 17, 19 and 28. The Council uses the DCF model to measure the fair value of financial instruments. Surplus assets and non- current assets held for sale have been based on the market value approach. Market conditions are such that similar properties are marketed, purchased and sold actively. The significant observable inputs used include current market conditions and recent sales prices and other relevant information for similar assets in the West Dunbartonshire area together with evidence across the wider West of Scotland for surplus assets and non-current assets held for sale and discount rates for financial instruments. Significant changes in any of these would result in significantly lower or higher fair value measurement for financial instruments as detailed in note 28. Significant changes to the key inputs for non-financial assets would have a significant impact on the value of the properties. However as the properties are valued annually and form a small proportion in relation to the value of the Council’s overall portfolio the impact of any changes would be limited. Estimation assumptions which impact longer term: Item Uncertainty Potential effect Pension liability Estimation of the net 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 14 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 liability can be measured. For example, a decrease in the discount rate of 0.1% would increase the pension liability held on the Balance sheet by 2% or £21.239m; and increase in the pension rate by 0.1% would increase the pension liability held on the Balance sheet by 2% or £18.250m However, the assumptions interact in complex ways. During 2021/22 the appointed actuaries advised that the net liability had decreased year on year by £107.925m as a result of estimates being updated and an update to the assumptions. The current liability held in the Council’s balance sheet is £55.690m. Page 290
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 68 Notes to the Financial Statements Note 5 – Accounting Standards that have been issued but have not yet been adopted For 2021/22, 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: • Amendments to IAS16: Property, Plant, Equipment – proceeds before intended use; • Annual improvements to IFRS Standards 2018 – 2020 (the annual IFRS improvement programme) includes: - Amendments: o IFRS1: First time adoption, in relation to foreign operations of acquired subsidiaries transitioning to IFRS; o IAS41: Agriculture - Clarifications: o IAS37: Onerous contracts, in relation to clarifying the intention of the standard; o IFRS16: Leases, removing a misleading example. 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 2023. Note 6 - Material Items of Income and Expense Where items are not disclosed on the face of the Comprehensive Income and Expenditure Statement, the Code requires a disclosure of the nature and amount of material items. Material items of expenditure charged to services in the year are shown in the table below: Item Nature £000 Housing Benefit received Benefit received to support customers on low incomes with housing rent costs 35,248 Housing Benefit paid Benefit paid to support customers on low incomes with housing rent costs (34,111) Supplementation Residential Accommodation for adults and children with disabilities 22,660 Unitary Charge Payment Public Private Partnership agreement for the provision of 3 secondary schools and one primary school 12,154 Landfill Tax A tax paid on the disposal of waste. It is payable to Her Majesty’s Revenue and Customs (HMRC) 3,461 Insurances Insurance premiums for all policies 2,773 Care Homes Cost of providing care home services by external providers 3,857 Integration Joint Board - West Dunbartonshire Health and Social Care Partnership Payments to other bodies 3,744 Integration Joint Board - West Dunbartonshire HSCP Day Support 2,407 Integration Joint Board - West Dunbartonshire HSCP Payments to Clients 2,729 Integration Joint Board - West Dunbartonshire HSCP Payments to external fostering agencies 1,500 Integration Joint Board - West Dunbartonshire HSCP Payments to Voluntary Organisations 2,506 Page 291
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 69 Notes to the Financial Statements Note 7 – Adjustments between funding accounting basis and funding basis under regulations This note provides further breakdown of the adjustments summarised in the Movement in Reserves Statement on page 46. 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 notes 30 and 31 on pages 111 to 115. 2021/22 General Fund Balance HRA Balance Capital Receipts Reserve Capital Grants/ Receipts Unapplied Account Capital Reserve Capital Fund Other Reserves Total Usable Reserves Usable Reserves £000 £000 £000 £000 £000 £000 £000 £000 Adjustments to the Revenue Resources Pension Costs (transferred to (or from) the Pensions Reserve) (30,947) (1,169) 0 0 0 0 0 (32,116) Financial Instruments (transferred to the Financial Instruments Adjustment Account) 8 7 0 0 0 0 0 15 Holiday Pay (transferred to the Accumulated Absences Reserve) 252 35 0 0 0 0 0 287 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 (CAA)) (25,720) (32,487) 0 0 0 0 0 (58,207) (56,407) (33,614) 0 0 0 0 0 (90,021) Adjustments between Capital and Revenue Resources Transfer of non-current asset sale gain/loss to the Capital Receipts Reserve (998) 0 998 0 0 0 0 0 Statutory provision for the repayment of debt (transfer to the CAA) 3,808 5,495 0 0 0 0 0 9,303 Capital expenditure financed from revenue balances (transfer to the CAA) 72 13,175 0 0 0 0 0 13,247 2,882 18,670 998 0 0 0 0 22,550 Adjustments to the Capital Resources Disposal of non-current asset sale proceeds 0 0 (3,268) 0 0 0 0 (3,268) Transfer from the Capital Receipts Reserve to the Capital Fund/ Capital Grants and Receipts Unapplied Account 0 0 2,240 (1,837) 0 (403) 0 0 Application of capital grants to finance capital expenditure 0 0 0 0 0 0 0 0 0 0 (1,028) (1,837) 0 (403) 0 (3,268) Total Adjustments (53,525) (14,944) (30) (1,837) 0 (403) 0 (70,739) Page 292
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 70 Notes to the Financial Statements Note 7 – Adjustments between funding accounting basis and funding basis under regulations (cont’d) 2021/22 Capital Adjustment Account Revaluation Reserve Pension Reserve Employee Statutory Adjustment Account FIAA Total Unusable Reserves £000 £000 £000 £000 £000 £000 Unusable Reserves Adjustments to the Revenue Resources Pension Costs (transferred to (or from) the Pensions Reserve) 0 0 32,116 0 0 32,116 Financial Instruments (transferred to the Financial Instruments Adjustment Account) 0 0 0 0 (15) (15) Holiday Pay (transferred to the Accumulated Absences Reserve) 0 0 0 (287) 0 (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 (CAA)) 58,207 0 0 0 0 58,207 58,207 0 32,116 (287) (15) 90,021 Adjustments between Capital and Revenue Resources Statutory provision for the repayment of debt (transfer to the CAA) (9,303) 0 0 0 0 (9,303) Capital expenditure financed from revenue balances (transfer to the CAA) (13,247) 0 0 0 0 (13,247) (22,550) 0 0 0 0 (22,550) Adjustments to the Capital Resources Disposal of non-current asset sale proceeds 3,268 0 0 0 0 3,268 Depreciation adjustment between Capital Adjustment Account and Revaluation Reserve (7,865) 7,865 0 0 0 0 Write out Revaluation Reserve of Disposals (617) 617 0 0 0 0 Application of capital grants to finance capital expenditure 0 0 0 0 0 0 (5,214) 8,363 0 0 0 3,268 Total Adjustments 30,443 8,482 32,116 (287) (15) 70,739 Page 293
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 71 Notes to the Financial Statements Note 7 – Adjustments between funding accounting basis and funding basis under regulations (cont’d) 2020/21 (Restated) General Fund Balance HRA Balance Capital Receipts Reserve Capital Grants and Receipts Unapplied Account Capital Reserve Capital Fund Other Reserves Total Usable Reserves £000 £000 £000 £000 £000 £000 £000 £000 Usable Reserves Adjustments to the Revenue Resources Pension Costs (transferred to (or from) the Pensions Reserve) (15,967) (637) 0 0 0 0 0 (16,604) Financial Instruments (transferred to the Financial Instruments Adjustment Account) 3 3 0 0 0 0 0 6 Holiday Pay (transferred to the Accumulated Absences Reserve) (117) 2 0 0 0 0 0 (115) 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) (4,391) (5,355) 0 0 0 0 0 (9,746) (20,472) (5,987) 0 0 0 0 0 (26,459) Adjustments between Capital and Revenue Resources Transfer of non-current asset sale gain/loss from revenue to the Capital Receipts Reserve (883) 0 883 0 0 0 0 0 Statutory provision for the repayment of debt (transfer to the Capital Adjustment Account) 5,800 5,019 0 0 0 0 0 10,819 Capital expenditure financed from revenue balances (transfer to the Capital Adjustment Account) 274 8,637 0 0 0 0 0 8,911 5,191 13,656 883 0 0 0 0 19,730 Adjustments to the Capital Resources Disposal of non-current asset sale proceeds 0 0 (2,167) 0 0 0 0 (2,167) Transfer from the Capital Receipts Reserve to the Capital Fund/ Capital Grants and Receipts Unapplied Account 0 0 1,284 (368) 0 (916) 0 0 Application of capital grants to finance capital expenditure 0 0 0 89 0 0 0 89 0 0 (883) (279) 0 (916) 0 (2,078) Total Adjustments (15,281) 7,669 0 (279) 0 (916) 0 (8,807) Page 294
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 72 Notes to the Financial Statements Note 7 – Adjustments between funding accounting basis and funding basis under regulations (cont’d) 2020/21 (Restated) Capital Adjustment Account Revaluation Reserve Pension Reserve Employee Statutory Adjustment Account FIAA Total Unusable Reserves £000 £000 £000 £000 £000 £000 Unusable Reserves Adjustments to the Revenue Resources Pension Costs (transferred to (or from) the Pensions Reserve) 0 0 16,604 0 0 16,604 Financial Instruments (transferred to the Financial Instruments Adjustment Account) 0 0 0 0 (6) (6) Holiday Pay (transferred to the Accumulated Absences Reserve) 0 0 0 115 0 115 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) 9,746 0 0 0 0 9,746 9,746 0 16,604 115 (6) 26,459 Adjustments between Capital and Revenue Resources Statutory provision for the repayment of debt (transfer to the Capital Adjustment Account) (10,819) 0 0 0 0 (10,819) Capital expenditure financed from revenue balances (transfer to the Capital Adjustment Account) (8,911) 0 0 0 0 (8,911) (19,730) 0 0 0 0 (19,730) Adjustments to the Capital Resources Disposal of non-current asset sale proceeds 2,167 0 0 0 0 2,167 Depreciation adjustment between Capital Adjustment Account and Revaluation Reserve (9,012) 9,012 0 0 0 0 Write out Revaluation Reserve of Disposals (426) 426 0 0 0 0 Use of the Capital Receipts Reserve to finance capital expenditure 0 0 0 0 0 0 Application of capital grants to finance capital expenditure (89) 0 0 0 0 (89) (7,360) 9,438 0 0 0 2,078 Total Adjustments (17,344) 9,438 16,604 115 (6) 8,807 Page 295
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 73 Notes to the Financial Statements Note 8 – Events After the Balance Sheet Date The draft Financial Statements were authorised for issue by the Chief Officer - Resources on 30 June 2022. Events taking place after this date are not reflected in the financial statements or notes. Where events taking place after this date provide information about conditions existing as at 31 March 2022, the figures in the Financial Statements and notes have been adjusted in all material respects to reflect the impact of this information. Following a decision by the Board of Directors at its meeting on 5 September 2022, the Clydebank Municipal Bank (identified as a non material entity with the Council’s group) is due to close operations on 31 March 2023. Note 9- 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 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. Central & Scottish Government The Scottish Government has effective control over the general operations of the Council. It provides the statutory framework within which the Council operates, provides the majority of its funding in the form of grants and prescribes the terms of many transactions that the Council has with other parties (e.g. council tax, housing benefits). The details of grants received and balances due in comparison to previous year are as shown in Note 11 Grant Income. Related transactions with comparison to previous years detailed below: 2020/21 2021/22 £000 £000 209,049 Revenue Grants Received 214,812 25,839 Capital Grants Received 5,272 54,895 Other Grants Received 54,833 2,489 Capital Grants Balance due at 31 March 2022 480 751 Other Grants Balance due at 31 March 2022 1,554 Elected Members Members of the Council have direct control over the Council’s financial and operating policies. The total of members’ allowances paid in 2021/22 is shown in the remuneration statement on pages 33 to 43. The Council maintains a register of interests for Members and reviews this for transactions carried out in the year with entities which Members have an interest. In the year ended 31 March 2022, the Council has not had any material transactions for any body in which Members have an interest. The elected member’s register of interest can be found on the Council’s website page: https://www.west-dunbarton.gov.uk/council/councillors-and-committees/councillors-allowances/ Subsidiaries Subsidiaries are independent bodies over which the Council is considered to have control. The following subsidiaries have been identified and are included in the group accounts pages 123 to 135. West Dunbartonshire Leisure Trust Established in April 2012, the Leisure Trust is a company limited by guarantee and has charitable status. It is responsible for the Strategic and Operational Management of West Dunbartonshire Council’s sports and leisure facilities. Community facilities, Sports development, Active Schools and Events. Page 296
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 74 Notes to the Financial Statements Note 9- Related Parties (cont’d) The Council has representation on the Board of Trustees, with three of the nine Trustees being Council elected members. The related transactions with comparison to previous year are as detailed below: 2020/21 2021/22 £000 £000 5,128 Contribution to Leisure Trust 5,706 (81) Income from Leisure Trust (71) Clydebank Property Company The company is owned by the Council which holds 100% of the issued share capital. The Council holds an investment within its Balance Sheet and has full representation on the Board of Directors, with each of the three Directors of the company being senior officers within the Council. The company paid a dividend to the Council in 2021/22. Related transactions with comparison to previous year are as detailed below: 2020/21 2021/22 £000 £000 273 CPC Investment held 273 (50) Dividend Received from CPC (50) Clydebank Municipal Bank Clydebank Municipal Bank was established in 1921 to provide basic banking to residents of West Dunbartonshire. The Council has full representation on the Board with the Chair and the Directors being Elected Members of the Council, and both the Bank Manager and the Company Secretary to the Board being council officers. Banking staff are employed by the Council. 2020/21 £000 2021/22 £000 51 Costs charged to the Bank 62 1,306 Balance due from the Council 1,306 65 Balance due to the Council 84 West Dunbartonshire Energy LLP An Energy Services Company established in May 2021, and is a Limited Liability Partnership (LLP) which relates to the running and expansion of a local District Heating Network. The service is delivered within a partnership between the Council and Vital Energi (the Network Operator). The Council owns 99.9%, with Clydebank Property Company (a wholly owned subsidiary of the Council) owning 0.1%. The Members of the partnership (LLP) are the Council and the Clydebank Property Company related transactions are noted below: 2020/21 2021/22 £000 £000 0 Balance due to the Council 397 Associates Associates are bodies which the Council has significant influence over, but do not meet criteria of subsidiaries. The following associates have been identified in the financial year 2021/22 and are included in the wider group accounts pages 123 to 135. Page 297
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 75 Notes to the Financial Statements Note 9- Related Parties (cont’d) Strathclyde Passenger Transport (SPT) SPT is the statutory body responsible for formulating the public transport policy on behalf of the 12 local authorities in the West of Scotland. The Council make a contribution to SPT with comparison to previous year figures as detailed below: 2020/21 2021/22 £000 £000 2,186 Contribution from Council 1,421 Strathclyde Concessionary Travel Scheme 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 Council made a contribution with comparison to previous year figures as detailed below: 2020/21 2021/22 £000 £000 162 Contribution from Council 164 West Dunbartonshire Health & Social Care Partnership The Council is also a partner in the West Dunbartonshire Health and Social Care Partnership (HSCP).The HSCP was established in July 2015 as a partnership between the Council and NHS Greater Glasgow & Clyde. It is responsible for planning and overseeing the delivery of a full range of community health and social work/social care services, including those for older people, adults, children and families. People in the Criminal Justice System and allied health professionals. The Council made a contribution to the HSCP relating to the integrated and social care functions, with comparison to previous year figure as detailed below: 2020/21 £000 2021/22 £000 70,873 Contribution from Council 74,925 Dunbartonshire and Argyll and Bute Valuation Joint Board (DABVJB) DABVJB 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. The Council made a contribution to DABVJB with comparison to previous year figure as detailed below: 2020/21 £000 2021/22 £000 714 Contribution from Council 736 Joint Ventures The following Joint ventures in which the Council is a joint venture were identified. Page 298
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 76 Notes to the Financial Statements Note 9- Related Parties (cont’d) Joint Boards The Joint Boards are independent public bodies formed by an Act of Parliament. All local government functions that relate to these bodies have been delegated from the constituent councils that comprise the area of each Board. The members of each Board are elected Councillors and are appointed by the councils in proportions specified by legislation. As well as being included under the wider definition of “Associates”. The council is also a member of the following joint boards of which the related transactions are detailed above under Associates. Strathclyde Passenger Transport Strathclyde Concessionary Travel Dunbartonshire Argyll and Bute Valuation Joint Board West Dunbartonshire Health & Social Care Partnership. Key Management Within the Council’s Management Team, the Chief Officer of the HSCP is employed by the Council. Details of remuneration are included within the Council’s Remuneration Statement pages 33 to 43. Other Related Parties Voluntary Sector The following voluntary organisations received over £50,000 in grant funding from the Council during 2021/22: 2020/21 2021/22 £000 £000 380 West Dunbartonshire Citizens Advice Bureau 349 135 Independent Resource Centre 216 181 Y-Sort It Youth Information Project 156 177 The Environment Trust 177 157 Dumbarton Women's Aid 177 167 Clydebank Women's Aid 187 The Council has no shareholdings or investments in any of these organisations. There were no outstanding balances at the year end. Strathclyde Pension Fund The Council is an admitted body to the local government pension scheme and has made payments as shown in Note 14 Defined Benefit Pension Schemes. The related transaction with comparison to previous year is shown below: 2020/21 2021/22 £000 £000 1,966 Balance owed by the Council at 31st March 2022 2,006 Page 299
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 77 Notes to the Financial Statements Note 9- Related Parties (cont’d) Senior Officers Senior Officers have control over the Councils financial and operating policies. The remuneration paid to these individuals is as listed in the remuneration statement pages 33 to 43. Officers are required to follow a Code of Conduct and are require 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 situation arise, the senior officer does not take part in any discussion or decision in relation to that interest. There are no significant related party transactions with senior officers of the Council. Note 10 – Agency Services Transactions whereby the Council provides a service on behalf of external organisations are noted below. Organisation Description 2021/22 Receipts 2021/22 Payment (Debtor)/ Creditor at 31.03.22 £000 £000 £000 Scottish Water Water and sewerage charges collected by Council and paid over 0 14,604 225 Scottish Government Non Domestic Rates (76,850) 0 (2,599) The Council also received a number of grants from the Scottish Government in 2021/22 related to COVID, whereby the Council acted as an agent on behalf of the Government. These grants are listed below and the effect of these have been removed from the Comprehensive Income and Expenditure Statement. Where expenditure was less than income a creditor has been raised within the Council’s Balance Sheet. Page 300
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 78 Notes to the Financial Statements Note 11 – Grant Income The Council credited the following grants and other contributions to Taxation and Non-specific Grant Income within the Comprehensive Income and Expenditure Statement in 2021/22, including general grant funding in relation to COVID received through redeterminations: 31 March 2021 31 March 2022 £000 £000 209,049 Revenue Support Grant/ Non-Domestic Rates 214,812 0 Levelling Up Fund 1,824 1,190 Sustrans - Connecting Clydebank 972 4,439 New House Build 488 169 Cycling, Walking, Safer Streets 682 16,384 General Services Capital Grant 581 0 Housing Buy Backs 480 552 Town Centre Fund 451 629 Exxon City Deal 444 137 Strathclyde Passenger Transport 344 0 Digital Inclusion 291 0 Spaces for People 258 123 Levengrove 259 0 Place Based Investments 139 0 CO2 Monitors in Schools 122 2,083 Early Year Funding 159 170 Transport Scotland - Electrical Charging Points 0 334 Grants under £0.100m 252 235,259 222,558 Page 301
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 79 Notes to the Financial Statements Note 11 – Grant Income (cont’d) The Council credited the following grants to Services within the Comprehensive Income and Expenditure Statement in 2021/22, including service specific general grant funding in relation to COVID: Restated* 31 March 2021 31 March 2022 £000 £000 34,262 Housing Benefit Subsidy 34,111 9,932 NHS Resource Transfer 10,083 8,597 Early Learning 9,247 2,550 Pupil Equity Fund 2,917 2,057 Criminal Justice 2,229 848 Scottish Attainment Challenge Scotland Fund 979 1,196 Scottish Attainment 901 580 Business Gateway 580 111 Young Person's Guarantee 569 0 Vaccination Centres (COVID) 534 364 Private Sector Housing 446 370 Care Experienced Children and young People 413 324 Asylum Seekers 349 0 Mental Wellbeing 308 770 Education additional staff support ( COVID) 287 382 Education Maintenance Allowance 280 0 Parental Employability Support Fund 229 6,671 Social Care Funding 0 5,880 Social Care Funding (COVID) 0 632 Free School Meals and Community Food (COVID) 0 594 Winter Plan for Social Protection 0 400 Interim Care Funding 0 237 Funding to Administer Temp Restrictions 0 168 Discretionary Housing payment additional (COVID) 0 132 Worthy Causes - Free School Meals (COVID) 0 128 Scottish Government - ERO 0 100 No-one Left Behind 0 493 Grants under £0.100m 454 77,778 64,916 * The individual grants amounts have been restated from the audited Financial Statements 2020/21 due to an alignment error in the final version. However the overall total remains the same. Page 302
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 80 Notes to the Financial Statements Note 11 – Grant Income (cont’d) 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 year end are as follows: 31 March 2021 31 March 2022 £000 £000 0 Place Based Investment 641 0 Exxon City Deal 192 593 Town Centre Fund 142 0 Bonhill Gaps sites 128 0 Queen Quay District Heating 120 0 Pappert New Builds 119 0 Knowes Nature Reserve 102 331 Digital Inclusion 41 159 Early Years Funding 0 180 Grants under £0.100m 608 1,263 2,093 In addition, some COVID grants received from the Scottish Government during 2021/22 which were identified as agency transactions are detailed within Note 10. Note 12 – 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 2021 31 March 2022 £000 £000 765 Not later than one year 731 2,363 Later than one year and not later than five years 2,019 2,036 Later than five years 1,706 5,164 4,456 The expenditure charged to the appropriate service lines in the Comprehensive Income and Expenditure Statement during the year in relation to these leases was £0.769m (2020/21 £0.775m). 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 2021 31 March 2022 £000 £000 273 Not later than one year 236 410 Later than one year and not later than five years 336 0 Later than five years 0 683 572 Page 303
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 81 Notes to the Financial Statements Note 12 – Operating Leases (cont’d) The expenditure charged to the appropriate service lines in the Comprehensive Income and Expenditure Statement during the year in relation to these leases was £0.290m (2020/21 £0.380m). Council as Lessor 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 2021 31 March 2022 £000 £000 3,627 Not later than one year 3,546 11,442 Later than one year and not later than five years 11,133 134,633 Later than five years 127,882 149,702 142,561 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 year, £1.431m contingent rents were receivable by the Council (2020/21 £2.812m). Finance Leases - The Council does not have any assets or liabilities under a finance lease, either as Lessee or Lessor. Note 13 – Termination Benefits The Council did not terminate the contracts of a number of employees in year (2020/21 liabilities incurred £0.065m). Note 14 – Defined Benefit Pension Schemes 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 2021/22 was 19.3%, and 2022/23 is set at 19.3%. In 2021/22, the Council paid an employer’s contribution of £19.851m (2020/21 £19.558m). Page 304
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 82 Notes to the Financial Statements Note 14 – Defined Benefit Pension Schemes (cont’d) 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, prior to this it was 17.2%. This is charged directly to the revenue account for the Education service. The amount paid over in respect of employer’s contribution was £10.291m (2020/21 £10.216m) in respect of expenditure for teachers added years, £0.039m payments were made (2020/21 £0.040m). 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 2021/22, the Council’s own contribution equates to 1.57%. The Council is not liable to the scheme for any other entities obligations under the plan. 1) Local Government Pension Scheme Councils are also required to disclose the capital cost of discretionary increases in pension payments agreed by the Council. In 2021/22 the capitalised costs that would have arisen from the early retiral of the Council employees and from predecessor authorities were as follows: £000 2021/2022 (4,888) In earlier years 58,282 Total 53,394 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. The following transactions have been made in the Comprehensive Income and Expenditure Account and Movement in Reserves Statement during the year: Page 305
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 83 Notes to the Financial Statements Note 14 – Defined Benefit Pension Schemes (cont’d) 2020/21 2021/22 £000 £000 Net cost of services 35,717 Current service cost 51,324 74 Past service cost 0 35,791 51,324 Financing and investment Income and Expenditure 3,379 Net interest expense 3,557 39,170 Total post employment benefit charged to the Surplus or Deficit on the provision of Services 54,881 (181,163) Expected return on assets (55,488) (30,778) Actuarial gains and losses arising from changes in demographic assumptions (7,291) 232,640 Actuarial gains and losses arising from changes in financial assumptions (78,984) (7,765) Actuarial gains and losses arising from experience assumptions 1,722 52,104 Total post employment benefit charged to the comprehensive income and expenditure statement (85,160) Movement in Reserves Statement (39,170) Reversal of gross charges made to surplus or deficit for post employment benefits (54,881) 22,566 Actual amount charged against the General Fund balance in the year - employer contributions payable to Scheme 22,765 (16,604) Reversal of gross charges made to surplus or deficit for post employment benefits (32,116) The underlying assets and liabilities for retirement benefits attributable to the council as at 31 March are as follows: 2020/21 2021/22 £000 £000 974,343 Fair value of plan assets 1,052,202 (1,079,676) Present value of defined benefit obligations (1,054,498) (105,333) Net assets in the Strathclyde Pension Fund (2,296) Present Value of Unfunded Liabilities (27,955) LGPS Unfunded (25,835) (24,265) Teachers’ pensions (22,386) (6,062) Pre Local Government Reorganisation (5,173) (163,615) Net pension asset/(liability) (55,690) 1) Local Government Pension Scheme The liabilities show the underlying commitments that the Council has in the long run to pay post- employment (retirement) benefits. The total liability of £55.690m has a substantial negative impact on the net worth of the Council as recorded in the Balance Sheet, resulting in an overall balance of £421.596m. However, the statutory arrangements for funding the deficit, means the financial position of the Council remains healthy. Page 306
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 84 Notes to the Financial Statements Note 14 – Defined Benefit Pension Schemes (cont’d) The deficit on the local government scheme will be made good by increased contributions over the remaining working life of employees (i.e. before payments fall due) as assessed by the scheme actuary. Finance is only required to be raised to cover discretionary benefits when the pensions are actually paid. The fair value of plan assets have increased by £77.859m. This is due to asset returns being more favourable than anticipated. The estimated liabilities have decreased by £30.066m, due to financial assumptions as at 31 March 2022 being more favourable than they were at 31 March 2021. 2) 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: % Active Members 58.4 Deferred Members 9.4 Pensioner Members 28.3 Pre-Local Government Re-organisation Members 3.9 100.0 The movement during the year on the defined obligation is noted as: 2020/21 2021/22 £000 £000 928,731 Opening balance 1,137,958 35,717 Current service cost 51,324 21,675 Interest cost 23,072 6,075 Contributions by Members 6,137 (30,778) Actuarial gains/losses – change in demographic assumptions (7,291) 232,640 Actuarial gains/losses – change in financial assumptions (78,984) (29,214) Actuarial gains/losses – other experience 1,722 74 Past service costs/(gains) 0 (3,008) Estimated unfunded benefits paid (2,914) (23,954) Estimated benefits paid (23,132) 1,137,958 Closing Balance as at 31 March 1,107,892 Page 307
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 85 Notes to the Financial Statements Note 14 – Defined Benefit Pension Schemes (cont’d) The movement during the year on the fair value of the employer’s assets is: 2020/21 2021/22 £000 £000 794,654 Opening balance 974,343 181,163 Expected return on assets 55,488 (21,449) Actuarial gains/ losses - other experience 0 18,296 Interest Income 19,515 6,075 Contributions by Members 6,137 19,558 Contributions by employer 19,851 3,008 Contributions in respect of unfunded benefits 2,914 (3,008) Estimated unfunded benefits paid (2,914) (23,954) Estimated benefit paid (23,132) 974,343 Closing Balance as at 31 March 1,052,202 The Council’s share of the pension fund asset at 31 March 2022 comprised: 2020/21 2021/22 Quoted prices in Active Markets Prices not quoted in Active Market Total Asset Category Quoted prices in Active Markets Prices not quoted in Active Market Total £000 £000 £000 £000 £000 £000 227,564 1,048 228,612 Equity Securities 231,344 501 231,845 0 0 0 Debt Securities 0 0 0 0 174,272 174,272 Private Equity 0 205,983 205,983 0 78,943 78,943 Real Estate 0 88,736 88,736 9,170 466,813 475,983 Investment funds and unit trusts 5,837 493,028 498,865 176 0 176 Derivatives 0 0 0 15,697 660 16,357 Cash and Cash Equivalent 26,418 355 26,773 252,607 721,736 974,343 Totals 263,599 788,603 1,052,202 Assets are now held at bid value. Asset and Liability Matching Strategy (ALM) 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 95% (2020/21 85.6%) of accrued liabilities at that date. Page 308
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 86 Notes to the Financial Statements Note 14 – Defined Benefit Pension Schemes (cont’d) The principal actuarial assumptions used at the Balance Sheet date are as follows: 31/03/2021 31/03/2022 Long term expected return on assets 2.85% Pension increase rate 3.20% 3.55% Salary Increase rate 3.90% 2.00% Discount rate 2.70% Mortality Based on these assumptions, the average future life expectancies at the age of 65 are: 19.8 Current pensioners – Men 19.6 22.6 Current pensioners - Women 22.4 21.2 Future pensioners – Men 21.0 24.7 Future pensioners - Women 24.5 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 2022 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: Page 309
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 87 Notes to the Financial Statements Note 14 – Defined Benefit Pension Schemes (cont’d) Approximate % increase to Employer Liability Approximate monetary Amount £000 Real Discount Rate (0.1% decrease ) 2% 21,239 1 year increase in the member life expectancy 4% 44,316 Salary Increase Rate (0.1% increase) 0% 2,807 Pension Increase Rate (0.1% increase) 2% 18,250 The total contribution expected to be made to the Local Government pension scheme for 2022/23 is £19.851m. Note 15 – External Audit Costs In 2021/22 the Council incurred £0.281m (2020/21 £0.277m) in respect of its external audit services on behalf of the Council and £0.002m (2020/21 £0.002m) on behalf of the Trust Funds, undertaken in accordance with the Code of Audit Practice. The appointed auditors, Audit Scotland, provided no other services to the Council in the year. Note 16 – Expenditure and Funding Analysis The analysis of income and expenditure on the face of the comprehensive income and expenditure statement is that specified by the Service Reporting Code of Practice. However decisions about resource allocation are taken by the Council on the basis of reports that are prepared on a different basis from the accounting polices used in the financial statements. In particular: • no charges are made in relation to capital expenditure (whereas depreciation, revaluation and impairment losses in excess of the balance on the revaluation reserve and amortisations are charged to services in the comprehensive income and expenditure statement); and • the cost of retirement benefits is based on cash flows (payments of employer’s pensions contributions) rather than current service cost of benefits accrued in the year. The service expenditure noted as ‘net rechargeable to the General Fund and the HRA’ can also be compared to the service spend noted in the Council’s revenue budget monitoring table in the Management Commentary, except where there are items in the Comprehensive Income and Expenditure Statement that are reported below the net cost of service line. The council’s income and expenditure as noted on the comprehensive income and expenditure statement analysis can also be given by nature of spend and is analysed as follows: Page 310
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 88 Notes to the Financial Statements Note 16 – Expenditure and Funding Analysis (cont’d) Restated 2020/21 2021/22 £000 £000 Expenditure 210,265 Employee benefits expenses 232,907 253,323 Other service expenses 266,430 3,894 Support service recharges 3,962 36,104 Depreciation, amortisation, impairment 65,954 22,558 Interest payments 21,422 2,339 Precepts and levies 2,517 883 Loss on the disposal of assets 998 529,366 Total Expenditure 594,190 Income (257,599) Fees, charges and other service income (258,154) (165) Interest and investment income (81) (92,728) Income from council tax and non-domestic rates (119,615) (179,296) Government grants and contributions (141,150) (529,788) Total Income (519,000) (422) (Surplus) / Deficit on the Provision of Services 75,190 A further breakdown of fees, charges and other service income by segmental analysis is noted below: Restated 2020/21 2021/22 £000 £000 (41,419) Corporate Services (37,337) (17,593) Education (15,317) (14,839) Infrastructure, Regeneration and Economic Development (13,334) (32,922) Housing and Communities (31,853) (43,031) Housing Revenue Account (44,363) (6,117) Miscellaneous Services (8,501) (101,678) Health and Social Care Partnership (107,449) (257,599) Total Fees, Charges and other service income (258,154) Page 311
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 89 Notes to the Financial Statements Note 16 – Expenditure and Funding Analysis (cont’d) The income and expenditure of the Council’s principal committee reporting structure recorded in the budget reports for the year is as follows: 2020/21 (restated) 2021/22 Net Chargeable to the General Fund and HRA Balance Adjustments between Funding and Accounting Basis Net Expenditure in the Comprehensive Income and Expenditure Statement Net 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 £000 £000 £000 20,549 5,332 25,881 Corporate Services 25,095 7,756 32,851 90,513 8,506 99,019 Education 98,757 20,258 119,015 29,934 20,062 49,996 Infrastructure, Regeneration and Economic Development 33,659 19,189 52,848 2,062 2,099 4,161 Housing and Communities 3,660 4,118 7,778 (22,944) 10,428 (12,516) Housing Revenue Account (20,106) 34,590 14,484 5,179 (2,699) 2,480 Miscellaneous Services 690 (2,170) (1,480) 69,865 5,718 75,583 Health and Social Care Partnership 74,017 10,485 84,502 2,339 0 2,339 Requisitions 2,517 0 2,517 197,497 49,446 246,943 Net Cost of Services 218,289 94,226 312,515 0 883 883 (Gain)/Loss on disposal of Fixed Assets 0 998 998 (245,814) (26,210) (272,024) Taxation and Non-specific Grant Income (253,019) (7,746) (260,765) 40,283 (16,507) 23,776 Finance / Investment Income and Expenditure 41,451 (19,009) 22,442 (8,034) 7,612 (422) (Surplus) or Deficit on Provision of Service 6,721 68,469 75,190 (13,319) MIR Opening General Fund and HRA Balance as at 1 April 2021 (22,392) (4,241) MIR (Surplus) or Deficit on Provision of Service (General Fund) 2,396 (3,793) MIR (Surplus) or Deficit on Provision of Service (HRA) 4,325 (1,039) MIR Transfer to/from other statutory reserves (2,083) (22,392) MIR Closing General Fund and HRA Balance as at 31 March 2022 (17,754) Page 312
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 90 Notes to the Financial Statements Note 16 – Expenditure and Funding Analysis (cont’d) 2020/21 2021/22 Adjustments for Capital Purposes Net Change for the Pension Adjustment Other differences Total Adjustments for Capital Purposes Net Change for the Pension Adjustment Other differences Total £000 £000 £000 £000 £000 £000 £000 £000 2,853 2,479 0 5,332 Corporate Services 3,204 4,552 0 7,756 5,553 2,807 146 8,506 Education 14,477 5,738 43 20,258 17,089 2,973 0 20,062 Infrastructure, Regeneration and Economic Development 13,414 5,775 0 19,189 14 2,085 0 2,099 Housing and Communities 13 4,105 0 4,118 9,794 637 (3) 10,428 Housing Revenue Account 33,456 1,169 (35) 34,590 2 (2,673) (28) (2,699) Miscellaneous Services 312 (2,187) (295) (2,170) 800 4,918 0 5,718 Health and Social Care Partnership 1,078 9,407 0 10,485 0 0 0 0 Requisitions 0 0 0 0 36,105 13,226 115 49,446 Net Cost of Services 65,954 28,559 (287) 94,226 883 0 0 883 Other Operating Expenditure 998 0 0 998 (26,210) 0 0 (26,210) Taxation and Non-specific Grant Income (7,746) 0 0 (7,746) (19,879) 3,378 (6) (16,507) Finance / Investment Income and Expenditure (22,551) 3,557 (15) (19,009) (9,101) 16,604 109 7,612 36,655 32,116 (302) 68,469 Both the Movement in Reserves (page 46) and note 7 (page 69) total the adjustments between funding accounting basis and funding basis under regulations relating to the General Fund balance (£53.525m net deductions) and HRA balance (£14.944m net deductions) and this matches the total adjustments above of £68.469m. Page 313
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 91 Notes to the Financial Statements Note 16 – Expenditure and Funding Analysis (cont’d) Adjustment 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; and • 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. 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; and • 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; and • 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. Page 314
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 92 Notes to the Financial Statements Note 17 – Property, Plant and Equipment 1) Movements in 2021/22 Council dwellings Other Land & buildings Industrial Units Vehicles & Plant Infrastructure Community Surplus Assets Assets Under Construction Property Plant & Equipment £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 Additions 28,080 9,024 0 3,056 10,024 575 4 12,736 63,499 Revaluations: - To Revaluation Reserve 0 (7,493) 0 0 0 0 0 0 (7,493) - To Net cost of Service (23,206) (1,785) 0 0 0 0 (183) 0 (25,174) Disposals 0 (229) 0 0 0 0 0 0 (229) Assets reclassified to/from Held for Sale 0 0 0 0 0 0 0 0 0 Adjustments - assets at nil NBV 0 (80) (7) (2,448) (772) 0 (139) 0 (3,446) Adjustments - change in asset type 35,306 18,025 0 0 906 1,130 0 (55,467) (100) As at 31 March 2022 542,780 420,810 45,360 31,511 10,168 6,011 28,179 Depreciation/Impairment at 1 April 2021 (71,578) (40,599) (1,649) (11,463) (2,032) (132) 0 (171,461) Depreciation charge (9,773) (8,550) (410) (3,510) (7,484) (550) 0 0 (30,277) Depreciation: - To Revaluation Reserve 0 9,796 0 0 0 0 0 0 9,796 - To Net Cost of Service 0 0 0 0 0 0 0 0 0 Impairments: - To Revaluation Reserve 0 0 0 0 0 0 0 - To Net Cost of Service 0 (6,942) 0 0 0 0 (4) 0 (6,946) Adjustments - assets at nil NBV 0 80 7 2,448 772 0 139 0 3,446 Adjustments - change in asset type 0 0 0 0 0 0 0 0 0 As At 31 March 2022 (81,351) (46,215) (2,052) (12,525) (2,582) 3 0 Net Book Value at 31 March 2021 431,022 362,749 43,718 19,440 108,062 6,431 6,197 70,910 1,048,529 Net Book Value at 31 March 2022 461,429 374,595 43,308 18,986 111,508 7,586 6,014 28,179 1,051,605 Page 315
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 93 Notes to the Financial Statements Note 17 – Property, Plant and Equipment (cont’d) 2) Movements in 2020/21 (Restated) Council dwellings Other Land & buildings Industrial Units Vehicles & Plant Infrastructure Community Surplus Assets Assets Under Construction Property Plant & Equipment £000 £000 £000 £000 £000 £000 £000 £000 £000 Cost/Valuation at 1 April 2020 417,278 378,608 45,399 26,712 5,475 9,587 104,814 Additions 18,741 7,218 15 4,658 11,964 1,646 135 46,886 91,263 Revaluations: - To Revaluation Reserve 48,706 126 0 0 0 0 0 0 48,832 - To Net cost of Service 0 (5,243) 0 0 0 0 (1,510) 0 (6,753) Disposals 0 0 (90) 0 0 0 (1,476) 0 (1,566) Assets reclassified to/from Held for Sale 0 0 0 0 0 0 (357) 0 (357) Adjustments - assets at nil NBV 0 (884) (7) (9,337) (16,374) 0 0 0 (26,602) Adjustments - change in asset type 17,875 23,523 50 8,870 29,180 1,342 (50) (80,790) 0 As at 31 March 2021 502,600 403,348 45,367 30,903 8,463 6,329 70,910 Depreciation/Impairment at 1 April 2020 (70,726) (31,842) (1,245) (17,626) (1,566) (133) 0 Depreciation charge (9,510) (9,613) (411) (3,174) (5,536) (466) 0 0 (28,710) Depreciation: - To Revaluation Reserve 8,658 (28) 0 0 0 0 1 0 8,631 - To Net Cost of Service 0 0 0 0 0 0 0 0 0 Impairments: - To Revaluation Reserve 0 0 0 0 0 0 0 0 0 - To Net Cost of Service 0 0 0 0 0 0 0 0 0 Disposals 0 0 0 0 0 0 0 0 0 Adjustments - assets at nil NBV 0 884 7 9,337 16,374 0 0 0 26,602 Adjustments - change in asset type 0 0 0 0 0 0 0 0 0 As At 31 March 2021 (71,578) (40,599) (1,649) (11,463) (2,032) (132) 0 Net Book Value at 31 March 2020 346,552 346,766 44,154 9,086 72,454 3,909 9,454 104,814 937,189 Net Book Value at 31 March 2021 431,022 362,749 43,718 19,440 108,062 6,431 6,197 70,910 1,048,529 Page 316
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 94 Notes to the Financial Statements Note 17 – Property, Plant and Equipment (cont’d) * Please note, with reference to the Asset movements tables 1) and 2) above, infrastructure asset values have been disclosed in accordance with the Scottish Government’s Finance Circular 9/2022 Statutory Override – Accounting for Infrastructure Assets. The council has applied both statutory overrides set out in the circular which are as follows: • For accounting periods commencing from 1 April 2021 until 31 March 2024, a local authority is not required to report the gross carrying amount and accumulated depreciation for infrastructure assets. • For the accounting periods from 1 April 2010 to 31 March 2024, the carrying amount to be derecognised in respect of a replaced part of an infrastructure asset is to be accounted for as a nil amount, and no subsequent adjustment can be made to the carrying amount of the asset with respect to that part. The approach is set out in Note 1 Accounting Policies. 3) Capital Commitments As at 31 March 2022, the Council has commitments on capital contracts for the construction or enhancement of property, plant and equipment for non housing and housing projects in 2021/22 budgeted to cost £10.335m (2020/21 £17.910m) and £1.477m (2020/21 £22.109m) respectively. The main commitments are: General Services £000 Regeneration SMPT Carless 6,300 Posties Park 1,032 Local Economic Development & Regeneration - various projects 748 OLSP Changing Facility 341 Renton Campus (part of Schools Estate Improvement Plan) 254 Construction of Pitches St Mary's Primary School & Our Lady of Loretto 224 HRA £000 New Build Housing 767 External Wall Insulation 340 Structural Repairs Drumry 250 Page 317
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 95 Notes to the Financial Statements Note 17 – Property, Plant and Equipment (cont’d) 4) PPP and DBFM Assets Included in Property, Plant and Equipment Restated 2020/21 2021/22 £000 £000 Cost or Valuation 114,219 At 1 April 2021 114,219 Revaluations 0 To Revaluation Reserve 0 0 Additions 0 114,219 At 31 March 2022 114,219 Accumulated Depreciation and Impairment (5,052) At 1 April 2021 (7,578) (2,526) Depreciation Charge (2,526) Depreciation written out 0 To revaluation reserve 0 0 To NCS 0 (7,578) At 31 March 2022 (10,104) 109,167 Opening Net Book value 106,641 106,641 Closing Net Book value 104,115 In previous years, the information above provided detail of the Council’s PPP project only. The information has been amended to also include the information on the DBFM project (Design, Build, Finance and Maintain) as these are both consolidated within the Council’s Balance Sheet. 5) The Council measures its surplus assets at fair value at each reporting date (the Council does not hold investment properties). The fair value of surplus assets have been based on the market value approach using current market conditions and recent sales prices and other relevant information for similar assets in the West Dunbartonshire area together with evidence across the wider West of Scotland. Market conditions are such that similar properties are marketed, purchased and sold actively and the level of observable inputs are sufficient, leading to the properties being categorised at Level 2 in the fair value hierarchy. There were no transfers between Levels 1 and 2 during the year and there have been no changes in the valuation techniques used during the year for surplus assets Note 18 – 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. Page 318
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 96 Notes to the Financial Statements Note 18 – Intangible Assets (cont’d) Where appropriate, the carrying amount of intangible assets is amortised on a straight line basis. The amortisation of £0.040m charged to revenue in 2021/22 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. The movement on intangible asset during the year was as follows: 2020/21 2021/22 £000 £000 Balance at 1 April 2021 546 Gross carrying amount 667 (371) Accumulated amortisation (396) 175 Net carrying amount at start of year 271 121 Acquisitions in year 357 0 Transfer from Assets Under Construction 29 (25) Amortisation for period (40) 271 Net carrying amount at 31 March 2022 617 Comprising: 667 Gross Carrying amounts 1,053 (396) Accumulated amortisation (436) 271 617 Note 19 – Assets Held for Sale 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. The Council measures its non-current assets held for sale at fair value at each reporting date. The fair value of non-current assets held for sale have been based on the market value approach using current market conditions and recent sales prices and other relevant information for similar assets in the West Dunbartonshire area together with evidence across the wider West of Scotland. Market conditions are such that similar properties are marketed, purchased and sold actively and the level of observable inputs are sufficient, leading to the properties being categorised at Level 2 in the fair value hierarchy. There were no transfers between Levels 1 and 2 during the year and there have been no changes in the valuation techniques used during the year for non-current assets held for sale. Page 319
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 97 Notes to the Financial Statements Note 19 – Assets Held for Sale (cont’d) The movement on assets held for sale during the year was as follows: 2020/21 2021/22 £000 £000 8,053 Balance at 1 April 2021 7,755 11 Acquisitions 114 312 Assets previously omitted 639 Assets newly classified as held for sale:- 357 Property, Plant and Equipment 71 (1,078) Impairment (173) 702 Revaluation Gains 50 (602) Disposals (3,039) 0 Assets declassified as held for sale* 0 7,755 As at 31 March 2022 5,417 *All assets values listed are in respect of Property, Plant and Equipment Note 20 - 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: 2020/21 2021/22 £000 £000 1,406 Balance at 1 April 2021 1,406 0 Additions/ Disposals / Newly Classified 79 1,406 Balance at 31 March 2022 1,485 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; and • 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 320
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 98 Notes to the Financial Statements Note 20 - Heritage Assets (cont’d) 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 21 – Capital Expenditure and Capital Financing The total amount of capital expenditure incurred in the year is shown in the following table (including the value of assets acquired under finance leases and PPP contracts), together with the resources that have been used to finance it. Where capital expenditure is to be financed in future years by charges to revenue as assets are used by the Council, the expenditure results in an increase in the capital financing requirement (CFR), a measure of the capital expenditure incurred historically by the Council that has yet to be financed. The CFR is analysed in the second part of this note. 31-Mar-21 31-Mar-22 £000 £000 600,739 Opening Capital Financing Requirement 646,190 Capital Investment 91,260 Property, Plant and Equipment 63,495 121 Intangibles 357 11 Asset held for sale 114 0 Heritage Assets 79 91,392 64,045 Less Sources of Finance 1,284 Receipts from Sale of Assets (2,270) 26,210 Government Grants and other Contributions 7,572 (1,284) Transfer to Capital Fund/ Capital Receipts Fund 2,270 8,911 Revenue Contributions 13,247 10,820 Loan Fund Principal Repayments 9,303 45,941 30,122 646,190 Closing Capital Financing Requirement 680,113 0 Increase in Underlying Need to Borrow (Supported) 0 45,451 Increase in Underlying Need to Borrow (Unsupported) 33,923 45,451 Movement in Capital Financing Requirement 33,923 Note 22 – Impairment Losses Assets are assessed at the end of each financial year for evidence in impairment or a reduction in value. Where indications exist and any possible differences are estimated to be material, the recoverable amount on the asset is estimated and where this is less than the carrying amount of the asset, an impairment loss is recognised for the shortfall. During 2021/22, the Council has recognised impairment losses of £7.060m (2020/21 £1.232m) relating to non-value adding enhancement and/or consumption of economic benefit of various assets. These impairment losses have been charged as appropriate within the Comprehensive Income and Expenditure Statement and the Revaluation Reserve. Page 321
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 99 Notes to the Financial Statements Note 23 – Private Finance Initiatives and Similar Contracts Schools PPP Scheme and Long Term Liability (Design, Build, Finance and Maintain (DBFM) Scheme) 2021/22 was the thirteenth year of a thirty year public private partnership for provision of three secondary schools and one primary school in Clydebank and Alexandria. 2021/22 was the fifth 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. Property, Plant and Equipment The school buildings are recognised on the Council’s balance sheet within property, plant and equipment balance. Movements in their value over the year are detailed in the analysis of the movement on the Property, Plant and Equipment balance in note 17. 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 2022 (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 3,370 6,657 3,207 1,332 14,566 2-5 years 15,754 24,083 14,291 5,708 59,836 6-10 years 21,548 23,143 21,410 12,443 78,544 11-15 years 29,911 14,088 25,950 13,001 82,950 16-20 years 20,751 3,194 14,444 7,851 46,240 21-25 years 1,151 36 241 0 1,428 PPP Contractual Liability as at 31.03.22 92,485 71,201 79,543 40,335 283,564 Page 322
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 100 Notes to the Financial Statements Note 23 – Private Finance Initiatives and Similar Contracts (cont’d) 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. The liability outstanding to be paid to the contractor for capital expenditure incurred is as follows: 2020/21 2021/22 £000 £000 99,942 Opening Balance 96,292 0 New Liabilities 0 (3,650) Repayments (3,807) 96,292 Closing Balance 92,485 Note 24 – Debtors 2020/21 2020/21 2021/22 2021/22 £000 £000 £000 £000 Central government bodies 2,222 Grant Income 1,662 3,840 VAT Recoverable 4,717 4,588 10,650 Other Debtors 1,567 7,946 353 Other local authorities 448 9,364 NHS Bodies 13,867 0 Public Corporations and trading funds 8 Other Entities and individuals 16,430 Arrears of local taxation * 18,026 29,823 46,253 Other Debtors 27,273 45,299 66,620 67,568 * A further breakdown in relation to local taxation is noted below: 2020/21 2021/22 Gross debtor before impairment Impairment Net Debtor after impairment Gross debtor before impairment Impairment Net Debtor after impairment £000 £000 £000 £000 £000 £000 5,336 1,673 3,663 Under 1 year 4,709 1,499 3,210 39,180 26,413 12,767 Over 1 year 42,138 27,322 14,816 44,516 28,086 16,430 Total 46,847 28,821 18,026 Note 25 - 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 2022. The fund does not represent assets of the Council and has not been included within the Balance Sheet on page 48. Page 323
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 101 Notes to the Financial Statements Note 25 - Common Good Fund (cont’d) Income and Expenditure Account 2020/21 2021/22 £000 Expenditure £000 82 Payments to Other Bodies 109 35 Bellsmyre Digital 36 50 Denny Tank 50 40 WD Citizen's Advice Bureau 40 25 General Expenditure 25 232 260 Income (314) Rent – Sites and Offices (320) (1) Other Income 0 (315) (320) (83) Net (surplus)/deficit for year (60) (83) In Year Usable Gain/ (Loss) (60) 0 In Year Un-usable Gain/ (Loss) 0 (83) (60) (438) Balance brought forward (521) (83) In Year Usable Gain (60) (521) Balance carried forward (581) Balance Sheet as at 31 March 2022 2020/21 2021/22 £000 Fixed Assets £000 3,487 Investment properties 3,485 Current Assets 534 Investments – West Dunbartonshire Council 586 3 Debtors 3 Current Liabilities (16) Creditors falling due within one year (8) 4,008 Total assets 4,066 Funds 3,487 Capital Adjustment Account 3,485 521 General Fund 581 4,008 4,066 Accounting Policy Information The asset owned by the Dumbarton Common good are classified within Investment Properties and the appropriate accounting policy is to value investment Properties annually. Page 324
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 102 Notes to the Financial Statements Note 26 – 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 48. 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. Receipts and Payments Account 2020/21 2021/22 (Surplus)/ (Surplus)/ Receipts Payments Deficit Receipts Payments Deficit £000 £000 £000 £000 £000 £000 0 0 0 Dunbartonshire Educational Trust Scheme 1962 0 0 0 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 (2) 0 (2) To encourage and support one- off community activities in Clydebank 0 0 0 Dr A K Glen Fund 0 19 19 Provide outings for Pensioners resident in Dumbarton 0 0 0 UIE Award 0 0 0 For students studying apprenticeships or training in industry (2) 0 (2) Total (2) 19 17 Statement of Balances as at 31 March 2022 Balance as at 1/4/21 (Surplus)/deficit for year Balance as at 31/3/22 £000 £000 £000 Bank and Cash Dunbartonshire Educational Trust Scheme 1962 (90) 0 (90) McAuley Prize for Mathematics (22) 0 (22) Alexander Cameron Bequest (118) (2) (120) Dr A K Glen Fund (24) 19 (5) UIE Award (25) 0 (25) Total (279) 17 (262) The Trust Funds hold no liabilities. Page 325
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 103 Notes to the Financial Statements Note 27 – 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-Mar-21 Movement 31-Mar-22 £000 £000 £000 Net Bank Current Account* (5,234) (4,068) (9,302) Short term deposits with UK banks 17,475 (6,033) 11,442 Net Cash and Cash equivalents 12,241 (10,101) 2,140 *A further breakdown of the bank account is noted below: 31-Mar-21 31-Mar- 22 £000 £000 1,289 Bank Current Accounts in balance 805 (6,523) Bank Current Accounts in overdraft (10,107) (5,234) Net Bank Current Account* (9,302) Note 28 – Financial Instruments 1) Types of Financial Instrument 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”: Long-term Current 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 £000 £000 £000 £000 Debtors Loans and receivables 22 21 68,955 61,782 Borrowing Financial liabilities at amortised cost 284,842 307,485 270,383 281,030 Other long term liabilities PPP and finance leases 92,615 89,115 3,677 3,370 Creditors Financial liabilities at contract amount 0 0 72,858 75,140 The Council does not have any of the following types of investments or borrowings: • available for sale financial assets; • unquoted equity investments at cost; • financial assets at fair value through profit and loss; or • financial liabilities at fair value through profit and loss. Page 326
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 104 Notes to the Financial Statements Note 28 – Financial Instruments (cont’d) The Council has considered the Code requirements for accounting for financial instruments and the following events have not taken place in 2021/22: • reclassification of financial assets carrying value between fair value and amortised cost; • transfer of financial assets where part or all of the financial assets does not qualify for de- recognition; • pledging of financial assets as collateral or liabilities or contingent liabilities, as a result no carrying or fair value exists; • recording of impairment losses in a separate account which would require a reconciliation of changes during the year; • default on any loans payable during 2021/22; • breaches of long term loan agreements resulting in the liability being classed as current; or • offsetting of financial assets and liabilities where a legally enforceable right exists and intent to settle is on net basis. The Council has considered the Code requirements for accounting for financial instruments and the following disclosures are consistent with the Code: • current liabilities are recognised as such even if refinanced post balance sheet or original term greater than twelve months; and • if the Council has the discretion (contractually) and expects to roll forward current liabilities for over twelve months, then the obligation can be treated as long term. 2) 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 2022 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 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 1.50% 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. Page 327
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 105 Notes to the Financial Statements Note 28 – Financial Instruments (cont’d) Changes in the Valuation Technique • There has been no change in the valuation technique used during the year for the financial instruments: 31-Mar-21 31-Mar-22 Carrying Amount Fair Value Carrying Amount Fair Value £000 £000 Debtors £000 £000 68,977 68,977 Loans and Receivables 61,803 61,803 The fair value is equal to the carrying amount because all loans and receivables 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. 31-Mar-21 31-Mar-22 Carrying Amount Fair Value Carrying Amount Fair Value £000 £000 £000 £000 Borrowing 555,225 736,964 Financial liabilities 588,515 648,513 Other Long Term Liabilities 96,292 153,981 PPP and Finance Lease Liabilities 92,485 136,477 Creditors 72,858 72,858 Financial liabilities at contract amount 75,140 75,140 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. A further breakdown of types of borrowing held by the Council as at 31 March 2022 is noted below: Page 328
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 106 Notes to the Financial Statements Note 28 – Financial Instruments (cont’d) Principal outstanding Accrued interest / EIR adjustment Carrying amount Principal outstanding Accrued interest / EIR adjustment Carrying amount 31-Mar-21 31-Mar-21 31-Mar-22 31-Mar-22 £000 £000 £000 £000 £000 £000 485 1,119 1,604 PWLB 11,091 1,289 12,380 0 754 754 Mortgage loans 0 761 761 260,000 322 260,322 Local Authority 257,000 135 257,135 1,181 0 1,181 Other 631 16 647 261,666 2,195 263,861 Short Term Loans 268,722 2,201 270,923 204,365 0 204,365 PWLB 226,268 0 226,268 77,600 1,652 79,252 Mortgage loans 77,600 1,637 79,237 0 0 0 Local Authority 0 0 0 1,181 0 1,181 Other 1,980 0 1,980 283,146 1,652 284,798 Long Term Loans 305,848 1,637 307,485 3) 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: 31-Mar-21 31-Mar-22 Financial Assets: Loans & receivables Financial Liabilities: amortised cost Total Financial Assets: Loans & receivables Financial Liabilities: amortised cost Total £000 £000 £000 £000 £000 £000 Interest (investment) 165 0 165 81 0 81 Interest payable and similar charges Interest/expense* 0 (19,180) (19,180) 0 (17,865) (17,865) (Gain)/Loss on de- recognition 0 6 6 15 15 Net (Gain)/loss in year 0 (19,174) (19,174) 0 (17,850) (17,850) * 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: • available for sale financial assets; and • financial assets or liabilities at a fair value through profit and loss. Page 329
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 107 Notes to the Financial Statements Note 28 – Financial Instruments (cont’d) 4) Nature and Extent of Risks arising from Financial Instruments 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 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; • Its maximum and minimum exposures to fixed and variable rates; • Its maximum and minimum exposures regarding the maturity structure of debt; and • Its 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 2021/22 annual Treasury Management Strategy which incorporates the prudential indicators was approved by Council on 22 March 2021 and updated through the mid-year Strategy by Council on 22 December 2021 and is available on the Council website. The key issues within the strategy were: • the authorised limit for 2021/22 was set by Council at that meeting at £855.288m and updated during the year to £829.832m. This is the maximum limit of external borrowing; • the operational boundary was expected to be £774.848m when reported to Council at that meeting and updated during the year to £760.680m. 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 net debt; and • 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. 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. Page 330
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 108 Notes to the Financial Statements Note 28 – Financial Instruments (cont’d) The Council’s maximum exposure to credit risk in relation to investments in banks and building societies of £11.442m cannot be assessed on a general basis as the risk of any institution failing to make interest payments or repay principle 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 2022 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 31.03.22 Historical experience of non-payment adjusted for market conditions at 31.03.22 Estimated maximum exposure to default and uncollectibility £000 % £000 Customers and other income 51,367 11.98 1,804 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. The council does not generally allow credit for customers, however currently £11.652m is past its due date for payment. The past due amount can be analysed by age as follows: Total £000 Less than three months 2,032 Three to six months 277 Six months to one year 1,287 More than one year 8,056 11,652 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 bad debt provision of this 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. 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. Page 331
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 109 Notes to the Financial Statements Note 28 – Financial Instruments (cont’d) 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; and • 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 2-5 years (or under 12 months) The maturity analysis of financial liabilities is as follows: Creditors PPP Borrowing Total £000 £000 £000 £000 Less than one year 75,140 3,370 281,030 359,540 Between one and two years 0 3,138 56 3,194 Between two and five years 0 12,616 30,407 43,023 More than five years 0 73,361 277,022 350,383 75,140 92,485 588,515 756,140 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: Page 332
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 110 Notes to the Financial Statements Note 28 – Financial Instruments (cont’d) • 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; and • 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 578,408 98.3 Variable Interest Debt 10,107 1.7 588,515 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 2022, with all other variables held constant: £000 Impact on tax payers and rent payers Increase on interest payable on variable debt borrowings 1 Increase in interest receivable on variable rate investments (81) Increase in government grant receivable for ‘loan charges’ (41) Impact on Income and Expenditure Account (121) Share of overall impact due credited to the HRA (33) Other accounting presentational changes Decrease in fair value of fixed rate investments: 0 Decrease in fair value of fixed rate debt borrowings (disclosure confined to notes to the core financial statements) (74,167) The impact of a 1% fall in interest rates would be as above but with the changes being reversed. 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. Postponement of Statutory Repayment of Debt As noted within the Management Commentary, in line with the Local Government Finance circular 5/2022 (section 8) allows the Council to take a loans fund payment holiday in 2021/22 or 2022/23 on the condition the amount not repaid in year would by fully paid over a 20 year period. The in-year principal payment within General Services would have been £1.673m which the Council would have paid using in-year capital receipts. Page 333
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 111 Notes to the Financial Statements Note 29 – Creditors 2020/21 2021/22 £000 £000 13,050 Central government bodies 8,620 25,492 Other local authorities 37,430 920 NHS Bodies 205 33,396 Other Entities and individuals 28,885 72,858 75,140 Note 30 – General Fund and HRA – Reserves and Earmarked Balances The Council holds reserves on the Balance Sheet in respect of General Fund and HRA brought forward surpluses: (1) The General Fund balance stands at £15.020m on 31 March 2022, of which £11.517m is earmarked for ringfenced purposes, leaving an unearmarked balance of £3.503m (prudential target £3.123m). The main earmarked income held for future specific purposes: £000 Covid related funding* 6,791 Change Fund 1,257 2022/23 budget commitment 1,034 2020/21 Budget growth items 185 Young person guarantee 1,018 HR/ Legal commitments 210 Social Welfare Fund 129 Other Committed Spend (< £0.100m) 893 11,517 *the earmarked COVID related funding is detailed below: General COVID Funding Unspent general COVID funding 3,445 Service Specific COVID Funding Financial Insecurity 25 Welfare / social support 48 Tenant Grant Fund 54 Winter Support Fund 55 Low Income Pandemic Payment 81 Free School Meal (Easter 2022) 90 Parental Employee Support Fund 114 Winter Hardship Fund 125 Local Self Isolation Assistance 182 Scottish Child Payment Bridging Payment 422 Education Recovery 2,150 6,791 Page 334
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 112 Notes to the Financial Statements Note 30 – General Fund and HRA – Reserves and Earmarked Balances (cont’d) (2) The HRA balance is currently £2.734m as at 31 March 2022, of which £1.794m is earmarked for ring fenced purposes, leaving an unearmarked balance of £0.940m. The earmarked balance held for future specific purposes is:- £000 Service Improvements 994 Welfare Reform Resilience Reserve 800 1,794 Note 31 – Other Reserves Reserves are created by appropriating amounts from the General Fund balance in the Movement in Reserves Statement. When expenditure is financed from a reserve, it is charged to the appropriate service to score against the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement. The reserve is then appropriated back into the General Fund balance in the Movement in Reserve Statement so that there is no net effect on council tax. Certain reserves are kept to manage the accounting processes for non-current assets, financial instruments and retirement benefits and that do not represent usable resources for the Council. 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-Mar-21 31-Mar-22 £000 £000 15,028 General Services 15,020 7,364 Housing Revenue Account 2,734 0 Capital Receipts Reserve 30 42 Capital Grants and Receipts Unapplied 42 1,469 Capital Reserve 758 308 Other Reserves 468 24,211 Total Usable Reserves 19,052 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. Page 335
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 113 Notes to the Financial Statements Note 31 – Other Reserves (cont’d) 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). Unusable reserves Unusable reserves are those that the Council is not able to utilise to provide services and comprise of:- Restated 31-Mar-21 31-Mar-22 £000 £000 284,963 Capital Adjustment Account 254,522 126,924 Revaluation Reserve 124,778 (163,615) Pension Reserve (55,690) (4,388) Employee Statutory Adjustment Account (4,100) (12,163) Financial Instruments Adjustment Account (11,440) 231,721 Total Unusable Reserves 308,070 Capital Adjustment Account The capital adjustment account absorbs the timing difference 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. The account is debited with the cost of acquisition, construction or enhancement as depreciation, impairment losses and amortisations are charged to the comprehensive income and expenditure statement (with reconciling postings to the revaluation reserve to convert fair value figures to a historical cost basis). The account is credited with the amounts set aside by the Council as finance for the costs of acquisition, construction and enhancement. The account contains revaluation gains accumulated on property, plant and equipment before 1 April 2007, the date that the revaluation reserve was created to hold such gains. The movement in reserve statement provides detail of the source of all the transactions posted to the account. Restated 2020/2021 2021/2022 £000 £000 267,619 Opening Balance 284,963 (27,982) Depreciation (31,713) (7,974) Impairment (34,112) 9,012 Increase in Depreciation Caused by Revaluation 7,739 426 Write off Revaluation Reserve Balance re Disposals 617 (2,167) Disposal of Fixed Assets (3,268) 26,299 Government Grants Applied 7,746 8,911 Capital Financed by Current Revenue 13,247 10,819 Long Term Debt Payment 9,303 284,963 Closing Balance 254,522 Page 336
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 114 Notes to the Financial Statements Note 31 – Other Reserves (cont’d) 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 balance is reduced when assets with accumulated gains are: • re valued downwards or impaired and the gains are lost; • used in the provision of services and the gains are consumed through depreciation; or • disposed of and the gains are realised. 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. Restated 2020/2021 2021/2022 £000 £000 159,128 Opening Balance 126,924 71,488 Unrealised Gains on Revaluation of Assets 5,681 (94,254) Impairments and Losses on Revaluation of Assets (869) (426) Write off Revaluation Reserve Balance re Disposals (617) (9,012) Depreciation due to Revaluation of Assets (6,341) 126,924 Closing Balance 124,778 Pension 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 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. The debit balance on the pensions reserve therefore shows a substantial shortfall in the benefits earned by past and current employees and the resources the Council has set aside to meet them. The statutory arrangements will ensure that funding will have been set aside by the time the benefits come to be paid. 2020/2021 2021/2022 £000 £000 (134,077) Opening Balance (163,615) (12,934) Actuarial (Loss)/Gain 140,041 22,566 Employer Contributions 22,765 (39,170) Reversal of IAS19 Entries (54,881) (163,615) Closing Balance (55,690) Page 337
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 115 Notes to the Financial Statements Note 31 – Other Reserves (cont’d) 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. Statutory arrangements require that the impact on the general fund balance is neutralised by transfers to or from this account. 2020/2021 2021/2022 £000 £000 (4,273) Opening Balance (4,388) (115) Staff Accrual Movement 288 (4,388) Closing Balance (4,100) Financial Instruments 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 2022 will be charged to the General Fund over the next thirty-seven years. 2020/2021 2021/2022 £000 £000 (13,020) Opening Balance (12,163) 851 Annual Write off of Premiums and Discounts 708 0 New Premiums and Discounts 0 6 Annual EIR Adjustment to Stepped Interest Instruments 15 (12,163) Closing Balance (11,440) Note 32 – Contingent Assets and Contingent 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. Page 338
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 116 Notes to the Financial Statements Note 32 – Contingent Assets and Contingent Liabilities (cont’d) 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 provided West Dunbartonshire Leisure Trust with a letter of comfort to confirm the Council’s commitment to the ongoing financial sustainability of the Trust, on a joint planning approach in relation to future service provision through the recovery and beyond. At this stage the extent or likelihood of any potential liability is unknown. A legal ruling in relation to the Goodwin equal treatment case in the Teachers’ Pension Scheme may have an impact across other public service pension schemes. Scheme rules are to be amended to ensure the pension entitlement of male survivors within opposite-sex marriages and civil partnerships are treated in the same way as survivors of same-sex marriages and civil partnerships. The consequences may impact on future pension contributions rates but initial indications suggest that any impact would be immaterial. The Council is not aware of any other contingent assets or liabilities which may be outstanding. Note 33 – Financial Guarantee 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. The Clydebank Municipal Bank is a company limited by shares with the Council funding any annual losses incurred. Page 339
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 117 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. Restated 2020/21 2021/22 2021/22 £000 £000 £000 (3,924) Balance on the Housing Revenue Account at the End of the Previous Year (1) (7,364) (11,462) Total Comprehensive Income and Expenditure (2) 19,269 (637) Pension Scheme Adjustments (1,169) 3 Financial Instruments Adjustment 7 3 Holiday Pay Adjustment 35 (5,356) Reversal of entries included in the Surplus/Deficit on the Provision of Services in relation to capital expenditure (32,487) (5,987) Adjustments to the revenue resource (3) (33,614) 0 Net gain or loss on sale of non-current assets 0 5,019 Statutory Repayment of Debt (Loans Fund Advances) 5,495 8,637 CFCR 13,175 13,656 Adjustments between Revenue and Capital Resources (4) 18,670 7,669 Total Statutory Adjustments (5)=(3)+(4) (14,944) 353 Transfers (to)/from Other Statutory Reserves (6) 305 (3,440) (Increase)/Decrease in Year (7)=(2)+(5)+(6) 4,630 (7,364) Balance on the Housing Revenue Account at the end of the Current Year (8)=(1)+(7) (2,734) Page 340
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 118 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. Restated 2020/21 2021/22 2021/22 £000 £000 £000 Income (41,544) Dwelling Rents (net of voids) (42,850) (253) Other Rents (251) (1,234) Other Income (1,574) (43,031) (44,675) Expenditure 8,860 Repairs and Maintenance 12,750 11,428 Supervision and Management 12,680 9,794 Depreciation and Impairment 33,456 433 Other Expenditure 273 30,515 59,159 (12,516) Net Cost of Service as Included in the Council Comprehensive Income and Expenditure Statement 14,484 HRA Share of the Operating Income and Expenditure Included in the Comprehensive Income and Expenditure Statement (4,439) Recognised Capital Income (Grants, Contributions and Donations) (969) 0 Gain or Loss on the Sale of HRA Non Current Assets 0 4,953 Interest Payable and Similar Charges 4,717 611 Impairment Loss - Debtors 1,048 (71) HRA Interest and Investment Income (11) 1,054 4,785 (11,462) (Surplus)/Deficit for the year on HRA Services 19,269 Page 341
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 119 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 10,378 dwellings during 2021/22 (10,153 in 2020/21). The following shows an analysis of these dwellings by type. 2020/21 2021/22 Number at 31.03.21 Average weekly rent Number at 31.03.22 Average weekly rent £ £ Type of Dwelling 2,640 78.05 Two-apartment 2,728 79.47 4,585 80.39 Three-apartment 4,676 81.71 2,583 85.49 Four-apartment 2,616 86.89 330 92.53 Five-apartment 338 94.25 10 106.71 Six-apartment 14 109.23 1 85.69 Seven-apartment 2 86.98 2 94.08 Eight-apartment 2 95.49 2 94.08 Nine-apartment 2 95.49 10,153 Total 10,378 Note 2 – Dwelling Rents The £42.850m noted in the Income and Expenditure Statement is the total rental income less voids chargeable for the year of £1.373m (2020/21 £0.895m). It excludes irrecoverables and bad debts. Average rents were £82.88 per week in 2021/22 (£81.50 per week in 2020/21). 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 bad debts. Lost rents from lock-ups in 2021/22 were £0.072m (£0.068m in 2020/21). Note 4 - Rent arrears As at 31 March 2022, total rent arrears amounted to £4.027m (2020/21 £3.621m as at 31 March 2021). This is 9.11% of the total value of rents due at 31 March 2022. It should be noted that the total arrears do not all relate to 2021/22 and the year on year movement in value of arrears is an increase of £0.406m. Note 5 - Provision for Bad Debts In the financial year 2021/22, the rental bad debt provision has been increased by £0.216m (£0.453m decrease 2020/21). The provision to cover loss of rental income stands at £2.444m as at 31 March 2022 – equivalent of 62.36% (61.55% 2020/21) of the total value of rents due at that date. Page 342
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 120 Council Tax Account Council Taxpayers: £38.207m (2020/21 £36.765m) The Council Tax Income Account (Scotland) shows the gross income raised from council tax levied and deductions made under Statute. 2021/22 represents the ninth year of operation of the Council Tax Reduction Scheme in Scotland. The Council Tax Reduction Scheme represents a discount introduced across Scotland following the abolition of Council Tax Benefits as part of the UK government’s welfare reform programme. The resultant total net income within the Council Tax Account is transferred to the Comprehensive Income and Expenditure Statement. 2020/21 2021/22 £000 £000 53,813 Gross council tax 54,277 Less: (8,884) Council Tax Reduction Scheme Discount* (8,674) (6,660) Other discounts and reductions (6,745) (718) Provision for bad and doubtful debts (559) (786) Adjustments for prior years (92) 36,765 Transfer to General Fund 38,207 The calculation of the council tax base Band No of Dwellings No of Exempts Disabled Relief Discount 25% Discount 50% CTRS Discount Total Dwellings Ratio to Band D Band D Equiv. A(Disabled) 0 0 21 8 0 11 29 200/360 16 Band A 7,537 389 41 4,338 150 3,996 8,521 240/360 5,680 Band B 16,911 614 (12) 7,950 201 6,174 18,217 280/360 14,169 Band C 7,682 216 0 3,014 37 1,958 7,987 320/360 7,100 Band D 6,108 122 19 2,008 26 736 5,965 360/360 5,965 Band E 4,793 51 (46) 1,096 18 253 4,571 473/360 6,006 Band F 1,755 13 (14) 251 6 24 1,694 585/360 2,753 Band G 840 7 (7) 110 5 3 810 705/360 1,587 Band H 66 0 (2) 5 8 61 882/360 148 43,424 Provision for bad debt (432) Council Tax Base 42,992 The nature and actual amount of each charge fixed 2020/21 2021/22 Gross Charges £ per year £ per year Dwellings fall within a valuation band between ‘A’ to ‘H’ which is determined by the Assessor. The council 862.37 Band A 862.37 tax charge is calculated using the council tax base 1,006.09 Band B 1,006.09 i.e. band D equivalents. This charge is then decreased/ 1,149.82 Band C 1,149.82 increased dependent on the band. The band D charge 1,293.55 Band D 1,293.55 for 2021/22 was £1,293.55. 1,699.58 Band E 1,699.58 2,102.02 Band F 2,102.02 2,533.20 Band G 2,533.20 3,169.20 Band H 3,169.20 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. *Council Tax Benefit has been replaced by Revenue Support Grant received from the Scottish Government. The result of which has been to reduce the Council Tax Income due by use of a Council Tax Discount Mechanism. Page 343
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 121 Non Domestic Rates Account Non-Domestic Rates Income £81.408m (2020/21 £55.963m) The Non Domestic Rate Account (Scotland) is an agent’s statement that reflects the statutory obligation for billing authorities to maintain a separate Non Domestic Rates account. The statement shows the gross income from the rates and deductions made under Statute. The net income is paid to the Scottish Government as a contribution to the national non-domestic rate pool. Non-Domestic Rates are pooled for Scotland as a whole and redistributed to authorities on a basis which reflects population. The Council received £81.408m (2020/21 £55.963m) from the national pool. The Council’s allocation from the pool now reflects the Council’s duty to collect Scottish Gas utilities on behalf of all Scottish councils and this equates to £56.554m in year (£56.515m 2020/21). The Council’s Revenue Support Grant has been adjusted to compensate for this change. In 2012/13 the Scottish Government introduced Business Rates Incentivisation Scheme (BRIS), to incentivise councils to grow their potential business rates tax base and as a result increase rates income, a proportion of which is to be retained by councils. Following a review of the original BRIS by a joint Scottish Government/COSLA Review Group the original scheme was suspended and a revised scheme was introduced in 2014/15. The amount of revised BRIS local targets will be linked only to the buoyancy element of the total estimated NDRI for any one year. This ensures that each council will have the ability to influence their own local tax base. Indications suggest the Council should not receive any additional income for the year 2021/22. The amount deemed to be collected locally was £76.850m (2020/21 £72.684m). Due to COVID there were more reliefs awarded to businesses, thereby reducing the amount collectable. The sum actually collected locally and contributed to the pool was £77.258m (2020/21 £70.647m), made up as follows: 2020/21 2021/22 £000 £000 95,490 Gross rates levied 94,019 Less: (20,223) Reliefs and other deductions (14,830) (955) Provision for bad and doubtful debts (940) 74,312 Net non-domestic rate income 78,249 (3,706) Adjustments for prior years (1,801) 96 Adjustments for prior years - bad debt 810 70,702 Total Non Domestic Rate Income (before retention) 77,258 (55) Non Domestic Rate Income Retained by the Council (BRIS) 0 70,647 Contribution to National Non Domestic Rate Pool 77,258 55,963 Distribution from National Non Domestic Rate Pool 81,408 14,684 Net contribution to/(from) National Non Domestic Rate Pool (4,150) 55,963 Net Non Domestic Rate Income to Comprehensive Income & Expenditure Statement 81,408 Page 344
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 122 Non Domestic Rates Account (cont’d) 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. An explanation of the nature and amount of each rate fixed Analysis of rateable Values: £ 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. Rateable value at 1/4/21 184,544,712 Running roll (full year RV) (736,797) Rateable value at 31/3/22 183,807,915 Less: partially exempt 743,050 The national non-domestic rate poundage set by the First Minister for Scotland for 2021/22 was: Less: wholly exempt 1,500,925 Net rateable value at 31/3/22 181,563,940 Basic Property Rate for 21/22 - £0.49 Intermediate Property Rate - £0.503 Higher Property Rate - £0.516 Page 345
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 123 Group Accounts Introduction The Code of Practice on Local Authority Accounting in the United Kingdom (the Code) requires local authorities to consider their interests in all types of entities. This includes other local authorities or similar bodies defined in section 106 of the Local Government (Scotland) Act 1973, including statutory bodies such as Valuation and Concessionary Travel Joint Boards. Authorities are required to prepare a full set of group accounts in addition to their own council’s accounts where they have a material interest in such entities. The Council has accounted for its interests in each associate and joint venture using the equity method of accounting. Combining Entities The Group Accounts consolidate the results of the Council with seven other entities: • Dunbartonshire and Argyll & Bute Valuation Joint Board (VJB); • West Dunbartonshire Health and Social Care Partnership (HSCP); • Strathclyde Partnership for Transport (SPT); • Strathclyde Concessionary Travel Joint Board (SCT); • West Dunbartonshire Leisure Trust (WDLT); • Clydebank Property Company (CPC); and • West Dunbartonshire Energy Limited Liability Partnership (WDE LLP). In addition to these entities, the Dumbarton Common Good and Sundry Trust Funds have also been consolidated. The accounting period for all entities is 31 March 2022. The Council would class an entity as an associate if they have significant influence over the financial and operating policies of the entity. The Council would class an entity as a subsidiary if they have control of the entity. The Council would class an entity as a joint venture where it has contractually agreed to share control with another party, such as significant decisions require unanimous consent and the joint ventures have rights to the net assets of the arrangement. Under accounting standards, the Council includes the results of three of these organisations as ‘associates’ because it has a significant influence over their financial and operating policies (namely VJB, SPT and SCT). The Council has no shares in, nor ownership of any of these organisations which are entirely independent of the Council. The Joint Boards are independent public bodies formed by an Act of Parliament. All local government functions that relate to these bodies have been delegated from the constituent councils that comprise the area of each Board. The members of each Board are elected Councillors and are appointed by the councils in proportions specified by legislation. The WDLT, CPC, WDE LLP and the Common Good and Trust Funds have been included as subsidiaries. HSCP has been included as a joint venture. Basis of Combination and Going Concern The combination has been accounted for on an acquisition basis using the equity method – that is, the Council’s share of the net assets and liabilities of each entity is incorporated and adjusted each year by the Council’s share of the entities’ results (recognised in the Group Income and Expenditure Account), and its share of other gains and losses. Page 346
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 124 Group Accounts The effects of inclusion of these entities and the Common Good and Trust Funds on the Group Balance Sheet is to increase reserves and Net Assets by £48.279m – representing the Council’s share of net assets in these entities. The Code requires councils to prepare financial statements on a going concern basis. A transfer within public services does not negate the presumption that these bodies are still a going concern. Thus all entities consider it appropriate that their Financial Statements should follow the ‘going concern’ basis of accounting. Statutory arrangements with the constituent local authorities for the deficit of the Valuation Joint Board means that the financial position of the Board is assured. Whilst the Balance Sheet of some entities show negative total assets, this relates primarily to defined benefit scheme pension liabilities in these entities. The financial statements of all individual group entities have been prepared on a going concern basis and, as such, the group accounts have also been prepared on this basis. The Group’s 2020/21 Financial Statements have been restated due to: • The Council restated their 2020/21 Financial Statements and these adjustments are shown in the single entity Statements Note 2. • VJB restated their 2020/21 Financial Statements due to an adjustment in Employee Statutory Mitigation Account. • The opening balance on the SPT 2020/21 Movement in Reserves was restated due to an increase in the Council’s percentage share. Page 347
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 125 Group Accounts 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. Restated Restated Restated 2020/21 2020/21 2020/21 2021/22 2021/22 2021/22 Gross Gross Net Gross Gross Net Expenditure Income Expenditure Expenditure Income Expenditure £000 £000 £000 £000 £000 £000 Service 66,789 (41,328) 25,461 Corporate Services 70,085 (37,241) 32,844 116,419 (17,591) 98,828 Educational Services 133,958 (15,317) 118,641 60,469 (14,645) 45,824 Infrastructure, Regeneration and Economic Development 61,498 (13,044) 48,454 37,069 (32,922) 4,147 Housing and Communities 39,614 (31,853) 7,761 30,515 (43,031) (12,516) Housing Revenue Account 58,847 (44,363) 14,484 8,611 (6,117) 2,494 Miscellaneous Services 7,035 (8,501) (1,466) 177,250 (101,678) 75,572 Health and Social Care Partnership 191,943 (107,449) 84,494 2,339 0 2,339 Requisitions 2,517 0 2,517 4,744 (1,271) 3,473 Subsidiaries 8,150 (3,050) 5,100 504,205 (258,583) 245,622 Net Cost of Service (1) 573,647 (260,818) 312,829 883 (Gain) / loss on Disposal of Fixed Assets 998 883 Other Operating Expenditure (2) 998 (36,765) Council Tax (38,207) (55,963) Non-Domestic Rates (81,408) (153,086) Revenue Support Grant (133,404) (26,210) Recognised Capital Income (Grants, Contributions & Donations) (7,746) (272,024) Taxation and Non-specific Grant Income (3) (260,765) Page 348
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 126 Group Accounts Group Comprehensive Income and Expenditure Statement (cont’d) Restated Restated Restated 2020/21 2020/21 2020/21 2021/22 2021/22 2021/22 Gross Gross Net Gross Gross Net Expenditure Income Expenditure Expenditure Income Expenditure £000 £000 £000 £000 £000 £000 (115) Interest Earned (31) 19,177 External Interest Payable / Similar Charges 17,868 1,382 Impairment Loss - Debtors 1,101 3,393 Pension Interest Cost/Expected Return on Pension Assets 3,635 23,837 Finance/Investment Income and Expenditure (4) 22,573 (1,682) (Surplus)/Deficit on Provision of Services 75,635 (5) = (1)+(2)+(3)+(4) (7,207) Share of other Comprehensive Income and Expenditure of Associates and Joint Ventures (6,614) 22,367 (Surplus)/Deficit arising from revaluation of property, plant and equipment (6,051) 0 (Surplus)/Deficit on revaluation of available for sale assets (300) 15,220 Actuarial (gains)/losses on pension fund assets and liabilities (145,797) 30,380 Other Comprehensive (Income) and Expenditure (6) (158,762) 28,698 Total Comprehensive (Income) and Expenditure (5)+(6) (83,127) Page 349
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 127 Group Accounts 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. Usable Reserves Unusable Reserves WDC Usable Reserves Group Usable Reserves Total Usable Reserves WDC Unusable Reserves Group Unusable Reserves Total Unusable Reserves Total Reserves £000 £000 £000 £000 £000 £000 £000 2021/22 Opening Balance at 1 April 2021 (24,211) (22,542) (46,753) (231,722) (14,064) (245,786) (292,539) Restatement due to % share in 2020/21 0 99 99 0 166 166 265 Restatement Opening Balance 1 April 2021 (24,211) (22,443) (46,654) (231,722) (13,898) (245,620) (292,274) Movement in reserve 2021/22 (Surplus) or deficit on provision of services 75,240 395 75,635 (146,379) (5,444) (151,823) (76,189) Other Comprehensive Expenditure and Income (70,739) (6,693) (77,432) 70,739 (246) 70,493 (6,939) Net Increase/(Decrease) before Transfers to Other Statutory Reserves 4,501 (6,298) (1,797) (75,640) (5,690) (81,330) (83,127) Transfers to/from other statutory reserves * 658 (191) 467 (708) 241 (467) 0 Closing Balance at 31 March 2022 (19,052) (28,932) (47,984) (308,070) (19,347) (327,417) (375,401) *The transfer of statutory reserves is in relation to dividends paid to the Council by Clydebank Property Company. Page 350
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 128 Group Accounts Group Movement in Reserves Statement (cont’d) Usable Reserves Unusable Reserves WDC Usable Reserves Group Usable Reserves Total Usable Reserves WDC Unusable Reserves Group Unusable Reserves Total Unusable Reserves Total Reserves £000 £000 £000 £000 £000 £000 £000 2020/21 (Restated) Opening Balance at 1 April 2020 (15,834) (13,986) (29,820) (275,378) (16,039) (291,417) (321,237) Movement in reserve 2020/21 (Surplus) or deficit on provision of services (372) (1,310) (1,682) 35,701 9,709 45,410 43,728 Other Comprehensive Expenditure and Income (8,807) (7,221) (16,028) 8,807 (7,809) 998 (15,030) Net Increase/(Decrease) before Transfers to Other Statutory Reserves (9,179) (8,531) (17,710) 44,508 1,900 46,408 28,698 Transfers to/from other statutory reserves * 802 (25) 777 (852) 75 (777) 0 Closing Balance at 31 March 2021 (24,211) (22,542) (46,753) (231,722) (14,064) (245,786) (292,539) *The transfer of statutory reserves is in relation to dividends paid to the Council by Clydebank Property Company. Page 351
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 129 Group Accounts 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 46 and 47 provides a further explanation). Restated 2020/21 2021/22 £000 £000 1,049,247 Property, Plant and Equipment 1,052,257 7,377 Investment Properties 7,390 282 Intangible Assets 623 28,860 Investment in associates 37,199 22 Long Term Debtors 21 216 Long term Investments 212 1,406 Heritage Assets 1,485 1,087,410 Total Long Term Assets 1,099,187 7,755 Asset Held for Sale 5,417 1,355 Inventories 1,311 66,490 Short Term Debtors 67,099 15,735 Cash and Cash Equivalents 5,987 91,335 Current Assets 79,814 (3,677) PPP & Finance Lease Liabilities (3,370) (53) Donated Inventories (76) (73,106) Short Term Creditors (75,319) (263,105) Short Term Borrowing (269,923) (339,941) Current Liabilities (348,688) 838,804 Total Assets less Current Liabilities 830,313 (288) Liabilities in Associates 0 (284,798) Long Term Borrowing (307,485) (92,615) PPP & Finance Lease Liabilities (89,115) (459) Provision for liability (702) (166,842) Net Pensions Liability (55,517) (1,263) Capital Grants Receipts in Advance (conditions) (2,093) (546,265) Long Term Liabilities (454,912) 292,539 Total Assets Less Liabilities 375,401 Represented by: 46,753 Usable Reserves 47,984 245,786 Unusable Reserves 327,417 292,539 Total Reserves 375,401 The unaudited Financial Statements were authorised for issue on 30 June 2022 and the audited Financial Statements were authorised for issue on 9 November 2022 Laurence Slavin Chief Officer - Resources West Dunbartonshire Council 9 November 2022 Page 352
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 130 Group Accounts Group Cashflow 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. The incorporation of the associates and subsidiaries within the group cash flow statement is immaterial, therefore, no cash flow statement is noted within the Group Accounts. The Council’s cashflow is noted on page 49. Page 353
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 131 Group Accounts Notes to the Group Accounts Note 1 - Details of combining entities The notes required for the Financial Statements of the Council are disclosed separately in the preceding pages. For Strathclyde Partnership for Transport and Concessionary Travel Scheme, although the Council holds less than 20% voting rights, it has a significant influence on the bodies. The organisations have voting allocations over 11 other local councils, with no one council holding majority shares, which ensures that all 12 councils can influence decisions. The following notes provide material additional amounts and details in relation to the other combining entities. Associates and Joint Ventures 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 2021/22, the Council contributed £2.188m (2020/21 £2.186m) or 3.97% of the Board’s estimated running costs and its share of the year end net asset of £19.187m (2020/21 £17.817m) is included in the Group Balance Sheet. Copies of its accounts may be obtained from the Treasurer to the Strathclyde Partnership for Transport, 131 St Vincent Street, Glasgow G2 5JF. 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 2021/22, the Council contributed £0.328m (2020/21 £0.162m), 4.03% of the Board’s estimated running costs and its share of the year end net asset of £0.185m (2020/21 £0.139m) is included in the Group Balance Sheet. Copies of its accounts may be obtained from the Treasurer to the Strathclyde Partnership for Transport, 131 St Vincent Street, Glasgow G2 5JF. 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 2021/22, the Council contributed £0.738m (2020/21 £0.714m) or 25.93% of the Board’s estimated running costs and its share of the year end net asset of £0.547m (2020/21 £0.288m 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 2021/22, the Council contributed £74.925m (2020/21 £70.873m) towards estimated running costs and its share of the year end net asset of £17.280m (2020/21 £10.904m) 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 354
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 132 Group Accounts Notes to the Group Accounts (cont’d) Note 1 - Details of combining entities (cont’d) The Council’s share of its associates and joint ventures are as follows: Strathclyde Partnership for Transport Strathclyde Concessionary Travel Scheme Joint Board Dunbartonshires and Argyll and Bute Valuation Joint Board West Dunbartonshire Health & Social Care Total £000 £000 £000 £000 £000 2021/22 Surplus/ (Deficit) on Operating Activities 285 (46) 64 6,377 6,680 Non Current Assets 12,767 0 306 0 13,073 Current Assets 7,192 207 258 17,364 25,021 Non Current Liabilities 0 0 0 0 0 Current Liabilities (772) (22) (17) (84) (895) Restated 2020/21 Surplus/ (Deficit) on Operating Activities 350 (110) (60) 6,872 7,052 Non Current Assets 11,438 0 166 0 11,604 Current Assets 7,283 147 233 10,904 18,567 Non Current Liabilities 0 0 (629) 0 (629) Current Liabilities (904) (8) (58) 0 (970) 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 2022 was £3.468m (2020/21 £0.036m net asset) and its surplus for the year was £0.104m (2020/21 £1.034m). 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 2022 was £3.635m (2020/21 £3.861m) and its surplus for the year before payment of a dividend was £0.077m (2020/21 £0.699m). 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. Page 355
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 133 Group Accounts Notes to the Group Accounts (cont’d) Note 1 - Details of combining entities (cont’d) 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 2022 of £0.273m funded as working capital advance from the Council. Its deficit for the year was £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 2021/22 was £0.060m (2020/21 £0.083m 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 £0.017m (2020/21 £0.002m) for the Trust Funds. For the purposes of the Group Accounts, two Trust Funds managed by the 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 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) 2020/21 Surplus/ (Deficit) on Operating Activities 1,034 194 0 83 2 1,313 Non Current Assets 245 4,373 0 3,487 0 8,105 Current Assets 4,908 415 0 537 201 6,061 Non Current Liabilities (3,227) (732) 0 0 0 (3,959) Current Liabilities (1,962) (195) 0 (16) 0 (2,173) Note 2 – 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. Page 356
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 134 Group Accounts Notes to the Group Accounts (cont’d) Note 2 – Non-Material Interest in Other Entities (cont’d) 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. Clydebank Municipal Bank is a company limited by shares set up based upon the Companies Act 1908 and 1913. It acts as banker for a number of private individuals/organisations. The Council provides services to the bank and funds any annual losses incurred. The bank’s year end is 5 April. The principal business of the Municipal Bank is to accept deposits from private account holders and to invest funds with the Council. The chairman and directors of the bank are Elected Members of the Council. As per the bank’s unaudited financial statements at 31 March 2022, 2,475 accounts were held with the bank (2020/21 2,472), with a total amount on deposit of £1.658m (2020/21 £1.733m), with £1.306m being invested with the Council (2020/21 £1.306m). Interest paid by the Council to the bank in the year was £0.034m (2020/21 £0.034m). On 5 September 2022 the Board of Directors agreed to close the Municipal Bank on 31 March 2023. 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). Note 3 – Financial Impact of Consolidation The effect of inclusion of the entities on the Group Balance Sheet is to increase reserves and net assets by £48.279m (2020/21 £36.606m net asset - restated) respectively representing the Council’s share of the realisable surpluses/deficits in these organisations. The group account has an overall net asset of £375.401m (2020/21 £292.539m - restated). Page 357
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 135 Group Accounts Notes to the Group Accounts (cont’d) Note 4 – Analysis of Material Amounts in Income and Expenditure Account 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: Restated 2020/21 2021/22 £000 £000 17,817 Partnership for Transport 19,187 139 Concessionary Travel Board 185 (288) Valuation Joint Board 547 10,904 West Dunbartonshire Health & Social Care 17,280 (36) West Dunbartonshire Leisure Trust 3,468 3,861 Clydebank Property Company 3,635 0 WD Energy LLP (273) 4,008 Common Good 4,066 201 Trust Funds 184 36,606 Total 48,279 Note 5 - 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 50 to 63 with additions and exceptions noted below: Group Income and Expenditure Account Proceeds from disposal of fixed assets – profits and losses from the disposal of fixed 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 Profit and Loss Account 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. Page 358
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 136 Glossary of Terms While much of the terminology used in this report is self explanatory, the following additional definitions and interpretation of the terms used are provided for assistance. The Glossary of Terms does not comprise part of the audited financial statements. 1. Employee benefit expenses This includes salaries, wages, overtime, bonus, enhancements, pensions, employer’s national insurance, travelling and subsistence expenses and other staff allowances. 2. Other service expenses This includes: • property costs (e.g. rent, rates, insurance, repairs and maintenance, upkeep of grounds, heating and lighting); • supplies and services (e.g food, materials, books, uniforms and protective clothing, purchase/ maintenance of equipment); • transport costs (e.g. fuel, repairs and maintenance, tyres, licences, insurance and procurement of transport for school children); • administration costs (e.g. printing and stationery, advertising, postages, telephone costs); • Payments to Other Bodies (e.g. grants and payments to individuals, organisations and agencies providing services complementing or supplementing the Council’s work. 3. Specific Government Grants This includes grants received from Central Government in respect of a specific purpose or service, usually calculated as a predetermined percentage of the expenditure actually incurred e.g. National Priority Action Fund, Benefits Administration. 4. General Income This includes the charges to persons and bodies for the direct use of council services. 5. Capital Expenditure This is expenditure incurred in creating, acquiring or improving assets where the expenditure is normally financed by borrowing over a period of years, finance leases, or utilising the income from the sale of existing assets. 6. 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. 7. Deferred Asset The deferred asset represents the net value of the premium paid/discounts received by the Council on the early repayment of external long term loans. 8. Useable Capital Receipts Reserve The Useable Capital Receipts Reserve represents the capital receipts available to finance capital expenditure in future years, after setting aside the statutory amounts for the repayment of external loans. 9. Pension Interest Cost The expected increase during the period in the present value of the scheme liabilities because the benefits are one year closer to settlement 10. Expected Return of Pension Assets The average rate of return expected over the remaining life of the related obligation on the actual assets held. 11. CIPFA Chartered Institute of Public Finance and Accountancy 12. LASAAC Local Council (Scotland) Accounts Advisory Committee 13. Budget The original revenue budget as set by Members at an appropriate Council meeting. 14. Intangible Assets Expenditure on assets such as software licences that do not have physical substance but are identifiable and controlled by the Council. 15. Revaluation Reserve This fund is a store of gains on the revaluations of fixed assets. It is a reserve held for technical accounting purposes and is not available for distribution. Page 359
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West Dunbartonshire Council Statement of Accounts for the Year Ended 31 March 2022 137 Glossary of Terms 16. Capital Adjustment Account (CAA) This fund is a store of capital resources set aside to meet past expenditure. It is an account held for technical accounting purposes and is not available for distribution. 17. Financial Instrument Adjustment Account (FIAA) This account is used to balance for differences in statutory requirements and proper accounting practices for borrowing and lending. It is an account held for technical accounting purposes and is not available for distribution. 18. Associate Body An entity other than a subsidiary or a joint venture in which the Council has an interest and over who’s operating and financial policies the Council is able to exercise significant influence. 19. Entity A body that is delivering a service or carrying on a business. It should have a separate legal personality and is legally obliged to prepare its own financial statements. 20. Statutory Additions Additional charges levied for late payment of council tax and non domestic rates. 21. Capital Items Replacement Fund Reserve earmarked for specific purposes within Education 22. Available for Sale Reserve Assets that have a quoted market price and/or do not have fixed or determinable payments. 23. Current Service Costs (Pension) This relates to the real cost of benefit entitlement earned by employees. 24. Past Service Costs/Gains (Pension) This relates to posts/gains from years prior to the current year and arise from decisions made in year. This relates to the capitalised cost of early retirals on efficiency grounds. 25. Curtailments (Pension) Used to reduce the number of expected years of future service for employees. In year this relates to the capitalised cost of early retirals on efficiency grounds. 26. Interest Cost (Pensions) The amount needed to unwind the discount applied in calculating current service cost. 27. Expected Return on Assets (Pensions) A measure of the return on the investment assets held by the scheme for the year. 28. Public Private Partnership (PPP)/Public Finance Initiative (PFI) A contract between the Council and a private organisation for the provision of new Educational buildings maintenance and related facilities. 29. Available for Sale Assets These assets are in relation to Financial Instruments and include: • Equity investments; and • Other investments traded in an active market. 30. Heritage Assets An asset with historical, artistic, scientific, technological, geophysical or environmental qualities which is held for its contribution to knowledge and culture. 31. PPE Property, Plant and Equipment. Page 360
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138 Independent auditor’s report to the members of West Dunbartonshire Council and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the annual accounts of West Dunbartonshire Council and its group for the year ended 31 March 2022 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, Housing Revenue Account Income and Expenditure Statement, the Council Tax Account, and the Non-Domestic Rate 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 2021/22 (the 2021/22 Code). In my opinion the accompanying financial statements: • give a true and fair view in accordance with applicable law and the 2021/22 Code of the state of affairs of the council and its group as at 31 March 2022 and of the income and expenditure of the council and its group for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2021/22 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 I conducted my 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. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I was appointed under arrangements approved by the Accounts Commission on 18 July 2016. The period of total uninterrupted appointment is six years. I am independent of the council and its group in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the council. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Conclusions relating to going concern basis of accounting I 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 I have performed, I 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, I 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 I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon. Page 361
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139 Responsibilities of the Chief Officer – Resources and West Dunbartonshire Council 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 Council is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements My 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 my 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. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • obtaining an understanding of the applicable legal and regulatory framework and how the council and its group is complying with that framework; • identifying which laws and regulations are significant in the context of the council and its group; • assessing 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 my 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 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited part of the Remuneration Report I have audited the part of the Remuneration Report described as audited. In my opinion, the audited part of the Remuneration Report has been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Page 362
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140 Other information The Chief Officer – Resources is responsible for 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. My 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 my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I 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 my 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 I am required to report by exception I am required by the Accounts Commission to report to you if, in my 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 • I have not received all the information and explanations I require for my audit; or • there has been a failure to achieve a prescribed financial objective. I have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to my responsibilities for the annual accounts, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in my Annual Audit Report. Use of my 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 120 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Page 363
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141 Fiona Mitchell-Knight FCA Audit Director Audit Scotland 4th Floor, The Athenaeum Building 8 Nelson Mandela Place, Glasgow, G2 1BT Page 364
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DR A K GLEN & WEST DUNBARTONSHIRE TRUST FUNDS AUDITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 APPENDIX 2 Page 365
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 2 | P a g e Contents Pages Contents 2 Trustees’ Annual Report 3 – 6 Statement of Receipts and Payments 7 Statement of Balances 8 Note to the Accounts Audit Certificate 9 – 10 12 - 14 Page 366
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 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 2022. 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 2021/22. Trust Funds Charity Number Trustees Local Authority Contact Address Dr A K Glen SC018701 Councillor Karen Conaghan Councillor David McBride Councillor Ian McLaren Councillor Brian Walker SC025070 Provost William Hendrie Councillor John Mooney Councillor Jim Brown Councillor Marie McNair Councillor Diane Docherty Councillor Jim Finn Councillor Daniel Lennie Councillor Douglas McAllister Councillor Lawrence O’Neill UIE Award SC025070 Councillor Jim Brown Councillor Ian Dickson Councillor Diane Docherty Councillor Jim Finn Councillor Daniel Lennie Councillor Caroline McAllister Councillor David McBride Councillor Jonathon McColl Councillor Iain McLaren Councillor John Mooney Councillor Martin Rooney Dunbartonshire Education Trust Scheme 1962 SC025070 Councillor Karen Conaghan West Dunbartonshire Council McAuley Prize for Mathematics SC025070 Councillor John Mooney West Dunbartonshire Council Bailie Denis Agnew West Dunbartonshire Council Councillor Graham Archibald Hardie Argyll & Bute Council Councillor John Jamieson East Dunbartonshire Council Councillor Gillian Fannan North Lanarkshire Council Councillor Thomas Johnston North Lanarkshire Council West Dunbartonshire Council, Council Offices, Church Street, Dumbarton, G82 1QL West Dunbartonshire Council West Dunbartonshire Council, Council Offices, Church Street, Dumbarton, G82 1QL Alexander Cameron Bequest West Dunbartonshire Council West Dunbartonshire Council, Council Offices, Church Street, Dumbarton, G82 1QL West Dunbartonshire Council West Dunbartonshire Council, Council Offices, Church Street, Dumbarton, G82 1QL Page 367
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 4 | P a g e Objectives and 2021/22 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. However, due to the COVID pandemic, a number of voluntary groups who would normally consider applying for grants were not active. Consequently, other than the Dr A K Glen and the Alexander Cameron Bequest, no Trusts met during 2021/22. The objectives and activities of each of the Trusts are detailed below: Charity Number Trust Fund Objective 2021/22 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. Only one grant application was received in year. Following consideration it was concluded the application met the Fund objectives and a £19,800 award was made. 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. No awards were made, with the Trust meeting only once to agree a Strategy on investments. 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 has been progressed 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 Page 368
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 5 | P a g e members from West Dunbartonshire Council, Argyll & Bute Council, East Dunbartonshire Council and North Lanarkshire Council. 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 369
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 6 | P a g e Performance (Investments) Income for Dr A K Glen & West Dunbartonshire Trusts comes from investment returns. All Trusts (with the exception of those investments noted below) received income on their reserves held based upon the average interest rate used for internal investments within the Council’s loans fund was 0.063%. 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 £2,429 of interest gained during 2021/22. 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 2021/22 (£5 in 2020/21). Financial Review The total balance on the Trusts as at 31 March 2022 (including stocks) is £262,521. 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 2022 of £262,303. 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 above were authorised for issue on behalf of the Trustees on 9 November 2022 by: Councillor Martin Rooney West Dunbartonshire Council 9 November 2022 Page 370
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 7 | P a g e Statement of Receipts and Payments Account Receipts 2020/21 Payments 2020/21 (Surplus) /Deficit 2020/21 Receipts 2021/22 Payments 2021/22 (Surplus) /Deficit 2021/22 £ £ £ £ £ £ (232) 0 (232) Dunbartonshire Educational Trust Scheme 1962 (62) 0 (62) (55) 0 (55) McAuley Prize for Mathematics (14) 0 (14) (2,138) 0 (2,138) Alexander Cameron Bequest (2,429) 0 (2,429) (62) 0 (62) Dr AK Glen (16) 19,800 19,784 (62) 0 (62) UIE Award (16) 0 (16) (2,549) 0 (2,549) Total (2,537) 19,800 17,263 Page 371
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 8 | P a g e Statement of Balances as at 31 March 2022 Opening Balance 2020/21 (Surplus) /Deficit 2020/21 Closing Balance 2020/21 Note Cash and Bank Opening Balance 2021/22 (Surplus) /Deficit 2021/22 Closing Balance 2021/22 £ £ £ £ £ £ (90,201) (232) (90,433) Dunbartonshire Educational Trust Scheme 1962 (90,433) (62) (90,495) (21,829) (55) (21,884) McAuley Prize for Mathematics (21,884) (14) (21,898) (115,638) (2,138) (117,776) Alexander Cameron Bequest (117,776) (2,429) (120,205) (24,670) (62) (24,732) Dr AK Glen (24,732) 19,784 (4,948) (24,679) (62) (24,741) UIE Award (24,741) (16) (24,757) (277,017) (2,549) (279,566) Total Cash and Bank (279,566) 17,263 (262,303) Investment (218) 0 (218) 5 Dunbartonshire Educational Trust Scheme 1962 (218) 0 (218) (218) 0 (218) Total Investment (218) 0 (218) (277,235) (2,549) (279,784) Overall Total (279,784) 17,263 (262,521) 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 9 November 2022. Signed on behalf of the Trustees by:- Councillor Martin Rooney West Dunbartonshire Council 9 November 2022 Page 372
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 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 2021/22. • The Trusts received interest of £2,537 from the Council at 31 March 2022, 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 Due to the COVID pandemic, only one grant was awarded in 2021/22. Note 4 – Cash and Bank Balances 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. Purchase Price as at 31 March 2021 Market Price as at 31 March 2021 Investment Purchase Price as at 31 March 2022 Market Price as at 31 March 2022 £ £ £ £ (289) (199) 4% Clydeport authority (289) (199) (35) (19) 3% Clydeport Authority (35) (19) (324) (218) Total (324) (218) Page 373
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 10 | P a g e Note 5 – Investment (cont’d) Alexander Cameron – Following a decision on 23 February 2022, £20,000 was invested on a short term variable basis, with the remainder invested on a longer term fixed interest rate basis with the Council for two years at 2.04%. Note 6 – Audit Fee The audit fee for the year of £2,100 (£2,100 2020/21) was absorbed by the Council. Page 374
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11 | P a g e Independent auditor’s report to the trustees of Dr A K Glen and West Dunbartonshire Trust Funds and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the statement of accounts of Dr A K Glen & West Dunbartonshire Trust Funds for the year ended 31 March 2022 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, the Statement of Balances 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 my opinion the accompanying financial statements: • Properly present the receipts and payments of the charities for the year ended 31 March 2022 and their statement of balances as 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 I conducted my 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. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I am independent of the charities in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Responsibilities of the Trustees for the financial statements The trustees are responsible for the preparation of financial statements which properly present the receipts and payments of the charities, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page 375
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12 | P a g e Auditor’s responsibilities for the audit of the financial statements My 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 my 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. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • obtaining an understanding of the applicable legal and regulatory framework and how the charities are complying with that framework; • identifying which laws and regulations are significant in the context of the charities; • assessing 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 my 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report. Page 376
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13 | P a g e Reporting on other requirements Other information The trustees are responsible for other information in the statement of accounts. The other information comprises the Trustees’ Annual Report. My 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 my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I 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. Opinions prescribed by the Accounts Commission on the Trustees’ Annual Report In my opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' Annual Report 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 Charity Accounts (Scotland) Regulations 2006. Matters on which I am required to report by exception I am required by the Charity Accounts (Scotland) Regulations 2006 to report to you if, in my opinion: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • I have not received all the information and explanations I require for my audit; I have nothing to report in respect of these matters. Page 377
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14 | P a g e Use of my 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 120 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Christopher Gardner Senior Audit Manager Audit Scotland, 4th Floor, South Suite, The Athenaeum Building, 8 Nelson Mandela Place, Glasgow, G2 1BT Christopher Gardner is eligible to act as an auditor in terms of Part VII of the Local Government (Scotland) Act 1973. Page 378
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council – 21 December 2022 Subject: Annual Audit Report to Members and Controller of Audit 2021/22 1. Purpose 1.1 The purpose of this report is to provide Members with the opportunity to consider the Annual Audit Report to Members and Controller of Audit, for the Council and the Trusts administered by the Council, following consideration by the Audit Committee on 9 November 2022. 2. Recommendations 2.1 Members are requested to: (a) Consider the information provided within the letter to the Audit Committee in relation to DR AK Glen and West Dunbartonshire Trust Fund - as appended to this report; (b) Consider the Annual Audit Report to Members and Controller of Audit 2021/22 for the Council and the Charities administered by the Council - as appended to this report; and (c) Note that the Letter and the Annual Audit Report, together with the Financial Statements were reported to the audit Committee on 9 November 2022. 3. Background 3.1 The Trust Funds and the Council’s draft unaudited Annual Accounts (including the Group Accounts) for 2021/22 were reported to Council on 29 August 2022 and passed to the Accounts Commission before the statutory deadline on 30 June 2022. 3.2 Following current statutory deadlines, the Audited Annual Accounts 2021/2022 - covering the Council and the Charities administered by the Council – require to be approved by Council before 30 November 2022 following consideration of the Annual Audit Report to Members and Controller of Audit 2021/22. 3.3 At the Council on 26 October 2022, members agreed to delegate authority to the Audit Committee to formally approve the audited accounts by 30 November 2022, prior to submission to the Accounts Commission. ITEM 14 Page 379
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3.4 As the external auditor of the Council, it is Audit Scotland’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 May 2011 and the ethical standards issued by the Auditing Practices Board. 4. Main Issues 4.1 The audits of the Annual Accounts for both the Council and the Council- administered Charities have now been completed. The Council has received letters regarding the Trust Funds and the Council audit from audit Scotland and an Annual Audit Report to Members and Controller of Audit which are appended to this report. The audited Annual Accounts for the Council and the Council-administered Charitable Trusts are reported elsewhere within the agenda. West Dunbartonshire Charities 4.2 Audit Scotland, as the Council’s external auditors, has issued a letter dated 1 November 2022 which advises the findings of the audit 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 Audit Scotland following the Audit Committee. West Dunbartonshire Council 4.3 Audit Scotland, as the Council’s external auditors, has issued a letter dated 9 November 2022 which advises the findings of the audit are contained within the annual audit report for West Dunbartonshire Council. The letter is appended to this report (Appendix 2). The letter appends the letter of representation (ISA 580) which the Chief Officer - Resources is required to sign and submit to Audit Scotland following the Audit Committee. 4.4 Audit Scotland, as the Council’s external auditors, has issued a report dated 9 November 2022 which details the main issues arising from the audit of the Council and its Annual Accounts. The full report is appended to this report (Appendix 3). 4.5 The report identifies two recommendations for improvement for the Council. It also identifies a further recommendation in relation to the Trust Funds. The report also provides management responses for these actions and an update on the actions identified from the 2020/21 Audit Report (one of which is noted as partially completed/ ongoing for the Council, and 2 for the Trusts have been superseded by this year’s recommendations). Page 380
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4.6 The Audit Opinion is detailed on page 8 of the report which advises that Audit Scotland expect to issue an unqualified opinion on the Council’s Annual Accounts and the Charities Annual Accounts. 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 Other than as described above there are no financial or procurement implications. 8. Risk Analysis 8.1 No risk analysis was required. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact was required in relation to the preparation of this report. 10. Consultation 10.1 The views of relevant officers were requested on this report and the appendices and view were taken on board. 11. Strategic Assessment 11.1 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: 21 December 2022 Person to Contact: Laurence Slavin, Chief Officer Resources, Church Street, Dumbarton E-mail: laurence.slavin @west-dunbarton.gov.uk Appendices: 1. Letter to the Audit Committee: Audit of Dr A K Glen and West Dunbartonshire Trust Funds Page 381
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Annual Report and Financial Statements for the year ended 31 March 2022; 2. Letter to the Audit Committee: West Dunbartonshire Council and its group Audit of 2021/22 annual accounts; and 3. Proposed 2021/22 Annual Audit Report Background Papers: Report to Council of 31 August 2022: Draft Annual Accounts 2021/22 Report to Council of 26 October 2022: General Services Budgetary Control Report to 31 August 2022 (Period 5) Report to Audit Committee of 9 November 2022: Audited Annual Accounts 2021/22: Council and Trust Funds Wards Affected: All Page 382
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8 Nelson Mandela Place Glasgow G2 1BT T: 0131 625 1500 E: info@audit-scotland.gov.uk www.audit-scotland.gov.uk Audit Committee 1 November 2022 Audit of Dr A K Glen and West Dunbartonshire Trust Funds Annual Report and Financial Statements for the year ended 31 March 2022 Independent auditor’s report 1. Our audit work on the 2021/22 annual report and financial statements is now substantially complete. We are able to issue unqualified audit opinions in the independent auditor’s report on 9 November 2022 (the proposed report is attached at Appendix A). Annual audit report 2. Under International Standards on Auditing in the UK, we report specific matters arising from the audit of the financial statements to those charged with governance of a body in sufficient time to enable appropriate action. The findings from our audit are set out within our annual audit report for West Dunbartonshire Council 2021/22. The section headed “Significant findings from the audit in accordance with ISA 260” sets out the issues identified in respect of the annual report and financial statements. There are no significant findings from the audit of the charitable trusts. 3. This report will be issued in final form after the financial statements have been certified. Unadjusted misstatements 4. We also report to those charged with governance all unadjusted misstatements which we have identified during our audit, other than those of a trivial nature and request that these misstatements be corrected. 6. We have no unadjusted misstatements to be corrected. Fraud, subsequent events and compliance with laws and regulations 7. In presenting this report to the Audit Committee we seek confirmation from those charged with governance of any instances of any actual, suspected or alleged fraud; any subsequent events that have occurred since the date of the financial statements; or material non- APPENDIX 1 Page 383
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compliance with laws and regulations affecting the entity that should be brought to our attention. Representations from Section 95 Officer 8. As part of the completion of our audit, we are seeking written representations from the Section 95 Officer on aspects of the annual report and financial statements, including the judgements and estimates made. 9. A draft letter of representation is attached at Appendix B. This should be signed and returned to us by the Section 95 Officer with the signed annual report and financial statements prior to the independent auditor’s report being certified. Page 384
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APPENDIX A: Proposed Independent Auditor’s Report Independent auditor’s report to the trustees of Dr A K Glen and West Dunbartonshire Trust Funds and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the statement of accounts of Dr A K Glen & West Dunbartonshire Trust Funds for the year ended 31 March 2022 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, the Statement of Balances 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 my opinion the accompanying financial statements: • Properly present the receipts and payments of the charities for the year ended 31 March 2022 and their statement of balances as 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 I conducted my 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. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I am independent of the charities in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Responsibilities of the Trustees for the financial statements The trustees are responsible for the preparation of financial statements which properly present the receipts and payments of the charities, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page 385
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Auditor’s responsibilities for the audit of the financial statements My 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 my 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. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • obtaining an understanding of the applicable legal and regulatory framework and how the charities are complying with that framework; • identifying which laws and regulations are significant in the context of the charities; • assessing 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 my 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report. Reporting on other requirements Other information The trustees are responsible for other information in the statement of accounts. The other information comprises the Trustees’ Annual Report. Page 386
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My 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 my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I 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. Opinions prescribed by the Accounts Commission on the Trustees’ Annual Report In my opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' Annual Report 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 Charity Accounts (Scotland) Regulations 2006. Matters on which I am required to report by exception I am required by the Charity Accounts (Scotland) Regulations 2006 to report to you if, in my opinion: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • I have not received all the information and explanations I require for my audit; I have nothing to report in respect of these matters. Use of my 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 120 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Christopher Gardner Senior Audit Manager Audit Scotland, 4th Floor, South Suite, The Athenaeum Building, 8 Nelson Mandela Place, Glasgow, G2 1BT Page 387
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Christopher Gardner is eligible to act as an auditor in terms of Part VII of the Local Government (Scotland) Act 1973. Page 388
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APPENDIX B Letter of Representation (ISA 580) Christopher Gardner Senior Audit Manager Audit Scotland 4th Floor, South Suite, The Athenaeum Building, 8 Nelson Mandela Place Glasgow, G2 1BT Dear Mr Gardner, Charitable Trusts administered by West Dunbartonshire Council – Annual accounts 2021/22. Dr A K Glen Trust (Registered Charity SC018701) and West Dunbartonshire Trust Funds (Registered Charity SC025070) Annual report and financial statements for the year ended 31 March 2022 1. This representation letter is provided about your audit of the financial statements of the registered charities listed above for the year ended 31 March 2022 for the purpose of expressing an opinion as to whether the financial statements properly presents the financial position of each of these registered charities as at 31 March 2022 and their receipts and payments for the year then ended. 2. I confirm to the best of my knowledge and belief and having made appropriate enquiries of the trustees of the registered charitable trusts, the following representations given to you in connection with your audit for the year ended 31 March 2022. General 3. I acknowledge my responsibility and that of West Dunbartonshire Council, as the administering authority, for the preparation of the financial statements on behalf of the trustees. All the accounting records, documentation and other matters which I am aware are relevant to the preparation of the annual report and financial statements have been made available to you for the purposes of your audit. All transactions undertaken by the registered charitable trusts have been recorded in the accounting records and are properly reflected in the financial statements. 4. I confirm that the annual report and financial statements of the charities submitted for audit are the only trusts which fall to be audited under the provisions of the Local Government (Scotland) Act 1973. 5. The information given in the Trustees Reports presents a balanced picture of each charity and is consistent with the financial statements. 6. I confirm that there are no uncorrected misstatements. Page 389
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Financial Reporting Framework 7. The financial statements have been prepared in accordance with the requirements of Local Government (Scotland) Act 1973 including all relevant presentation and disclosure requirements. The financial statements also comply with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006 and guidance issued by the Office of the Scottish Charity Regulator (OSCR). 8. Disclosure has been made in the financial statements of all matters necessary for them to properly present the transactions and state of affairs of each charity for the year ended 31 March 2022. Accounting Policies & Estimates 9. The financial statements have been prepared on receipts and payments basis in accordance with applicable regulations and the founding documents of each charitable trust. Going Concern Basis of Accounting 10. I have assessed West Dunbartonshire Council’s ability to continue to use the going concern basis of accounting and have concluded that it is appropriate. I am not aware of any material uncertainties that may cast significant doubt on West Dunbartonshire Council’s ability to continue as a going concern. A number of the trusts have been dormant in recent years. The Trustees have assessed the ability of the registered charitable trust to continue as a going concern, and have disclosed in the financial statements any material uncertainties that have arisen as a result. Assets 11. The cash fund and investments shown in the statement of balances at 31 March 2022 were owned by the charities. Assets are free from any lien, encumbrance or charge. There are no plans or intentions that are likely to affect the carrying value of classification of the assets within the financial statements. Fraud 12. I have provided you with all information in relation to: • my assessment of the risk that the financial statements may be materially misstated because of fraud • any allegations of fraud or suspected fraud affecting the financial statements • fraud or suspected fraud that I am aware of involving management, employees who have a significant role in internal control, or others that could have a material effect on the financial statements. Page 390
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13. There have been no actual or alleged frauds or irregularities involving trustees or staff of West Dunbartonshire Council that could affect the financial statements of the charitable trusts. Corporate Governance 14. The business of the charitable trusts is recorded in the systems of West Dunbartonshire Council. As section 95 officer for West Dunbartonshire Council, I confirm that there are no issues or deficiencies in internal control that require to be disclosed within the financial statements of the charitable trusts. Events Subsequent to the Date of the Balance Sheet 15. There have been no material events since the date of the statement of balances which necessitate revision of the figures in the financial statements or notes thereto, including contingent assets and liabilities. 16. Since the date of the statement of balances no events or transactions have occurred which, though properly excluded from the financial statements, are of such importance that they should be brought to your notice. Yours sincerely, Chief Officer – Resources, West Dunbartonshire Council, for and on behalf of the trustees of the charities administered by West Dunbartonshire Council Page 391
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8 Nelson Mandela Place Glasgow G2 1BT T: 0131 625 1500 E: info@audit-scotland.gov.uk www.audit-scotland.gov.uk Audit Committee 9 November 2022 West Dunbartonshire Council and its group Audit of 2021/22 annual accounts Independent auditor's report 1. Our audit work on the 2021/22 annual accounts is now substantially complete. Subject to the satisfactory conclusion of receipt of a revised set of annual accounts for final review, we anticipate being able to issue unqualified audit opinions in the independent auditor's report on 9 November 2022 (the proposed report is attached at Appendix A). Annual audit report 2. Under International Standards on Auditing in the UK, we report specific matters arising from the audit of the financial statements to those charged with governance of a body in sufficient time to enable appropriate action. We present for the Audit Committee's consideration our draft annual report on the 2021/22 audit. The section headed "Significant findings from the audit in accordance with ISA 260" sets out the issues identified in respect of the annual accounts. 3. The report also sets out conclusions from our consideration of the four audit dimensions that frame the wider scope of public audit as set out in the Code of Audit Practice. 4. This report will be issued in final form after the annual accounts have been certified. Unadjusted misstatements 5. We also report to those charged with governance all unadjusted misstatements which we have identified during our audit, other than those of a trivial nature and request that these misstatements be corrected. 6. We have no unadjusted misstatements to be corrected to bring to your attention. Fraud, subsequent events and compliance with laws and regulations 7. In presenting this report to the Audit Committee we seek confirmation from those charged with governance of any instances of any actual, suspected or alleged fraud; any subsequent events that have occurred since the date of the financial statements; or material non-compliance with laws and regulations affecting the entity that should be brought to our attention. APPENDIX 2 Page 393
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Representations from Section 95 Officer 8. As part of the completion of our audit, we are seeking written representations from the Section 95 Officer on aspects of the annual accounts, including the judgements and estimates made. 9. A draft letter of representation is attached at Appendix B. This should be signed and returned to us by the Section 95 Officer with the signed annual accounts prior to the independent auditor’s report being certified. Page 394
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Appendix A: Proposed Independent Auditor’s Report Independent auditor’s report to the members of West Dunbartonshire Council and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the annual accounts of West Dunbartonshire Council and its group for the year ended 31 March 2022 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, Housing Revenue Account Income and Expenditure Statement, the Council Tax Account, and the Non-Domestic Rate 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 2021/22 (the 2021/22 Code). In my opinion the accompanying financial statements: • give a true and fair view in accordance with applicable law and the 2021/22 Code of the state of affairs of the council and its group as at 31 March 2022 and of the income and expenditure of the council and its group for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2021/22 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 I conducted my 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. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I was appointed under arrangements approved by the Accounts Commission on 18 July 2016. The period of total uninterrupted appointment is six years. I am independent of the council and its group in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non- audit services prohibited by the Ethical Standard were not provided to the council. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Page 395
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Conclusions relating to going concern basis of accounting I 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 I have performed, I 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, I 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 I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon. Responsibilities of the Chief Officer – Resources and West Dunbartonshire Council 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 Council is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements My 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 my 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. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: Page 396
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• obtaining an understanding of the applicable legal and regulatory framework and how the council and its group is complying with that framework; • identifying which laws and regulations are significant in the context of the council and its group; • assessing 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 my 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 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited part of the Remuneration Report I have audited the part of the Remuneration Report described as audited. In my opinion, the audited part of the Remuneration Report has been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Other information The Chief Officer – Resources is responsible for 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. My 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 my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement Page 397
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of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I 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 my 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 I am required to report by exception I am required by the Accounts Commission to report to you if, in my 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 • I have not received all the information and explanations I require for my audit; or • there has been a failure to achieve a prescribed financial objective. I have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to my responsibilities for the annual accounts, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in my Annual Audit Report. Use of my 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 120 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Page 398
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Fiona Mitchell-Knight FCA Audit Director Audit Scotland 4th Floor, The Athenaeum Building 8 Nelson Mandela Place, Glasgow, G2 1BT Page 399
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Appendix B: Letter of Representation (ISA 580) Fiona Mitchell-Knight Audit Director Audit Scotland 4th Floor 8 Nelson Mandela Place Glasgow G2 1BT Dear Fiona, West Dunbartonshire Council Annual Accounts 2021/22 1. This representation letter is provided about your audit of the annual accounts of West Dunbartonshire Council for the year ended 31 March 2022 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view in accordance with the financial reporting framework, and for expressing other opinions on the remuneration report, management commentary and annual governance statement. 2. I confirm to the best of my knowledge and belief and having made appropriate enquiries of the Chief Executive and Corporate Management Team, the following representations given to you in connection with your audit of West Dunbartonshire Council's annual accounts for the year ended 31 March 2022. General 3. West Dunbartonshire Council and I have fulfilled our statutory responsibilities for the preparation of the 2021/22 annual accounts. All the accounting records, documentation and other matters which I am aware are relevant to the preparation of the annual accounts have been made available to you for the purposes of your audit. All transactions undertaken by West Dunbartonshire Council have been recorded in the accounting records and are properly reflected in the financial statements. 4. I confirm that the effects of uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole. I am not aware of any uncorrected misstatements other than those reported by you. Financial Reporting Framework 5. The annual accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2021/22 (2021/22 accounting code), and in accordance with the requirements of the Local Government (Scotland) Act 1973, the Local Government in Scotland Act 2003 and The Local Authority Accounts (Scotland) Regulations 2014. 6. In accordance with the 2014 regulations, I have ensured that the financial statements give a true and fair view of the financial position of the West Dunbartonshire Council [and its Group] at 31 March 2022 and the transactions for 2021/22. Accounting Policies & Estimates 7. All significant accounting policies applied are as shown in the notes to the financial statements. The accounting policies are determined by the 2021/22 accounting code where applicable. Where the code does not specifically apply I have used judgement in Page 400
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developing and applying an accounting policy that results in information that is relevant and reliable. All accounting policies applied are appropriate to West Dunbartonshire Council’s circumstances and have been consistently applied. 8. The significant assumptions used in making accounting estimates are reasonable and properly reflected in the financial statements. Judgements used in making estimates have been based on the latest available, reliable information. Estimates have been revised where there are changes in the circumstances on which the original estimate was based or as a result of new information or experience. Going Concern Basis of Accounting 9. I have assessed West Dunbartonshire Council’s ability to continue to use the going concern basis of accounting and have concluded that it is appropriate. I am not aware of any material uncertainties that may cast significant doubt on West Dunbartonshire Council's ability to continue as a going concern. Assets 10. Where a rolling programme of asset valuations has been used, I have satisfied myself that the carrying amount of assets at 31 March 2022 does not differ materially from that which would be determined if a revaluation had been carried out at that date. 11. I carried out an assessment at 31 March 2022 as to whether there is any indication that an asset may be impaired and have recognised any impairment losses identified. 12. I have provided you with all information of which I am aware regarding any valuation exercises carried out after 31 March 2022. 13. There are no plans or intentions that are likely to affect the carrying value or classification of the assets recognised within the financial statements. 14. Owned assets are free from any lien, encumbrance or charge except as disclosed in the financial statements. Liabilities 15. All liabilities at 31 March 2022 of which I am aware have been recognised in the annual accounts. 16. The accrual recognised in the financial statements for holiday untaken by 31 March 2022 has been estimated on a reasonable basis. 17. The pension assumptions made by the actuary in the IAS 19 report for West Dunbartonshire Council have been considered and I confirm that they are consistent with management's own view. 18. There are no plans or intentions that are likely to affect the carrying value or classification of the liabilities recognised in the financial statements. Contingent liabilities 19. There are no significant contingent liabilities, other than those disclosed in Note 31 to the financial statements, arising either under formal agreement or through formal undertakings requiring disclosure in the accounts. All known contingent liabilities have been fully and properly disclosed, including any outstanding legal claims which have not Page 401
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been provided under the Code of Practice on Local Authority Accounting in the United Kingdom 2021/22 and IAS 37. Fraud 20. I have provided you with all information in relation to: • my assessment of the risk that the financial statements may be materially misstated because of fraud • any allegations of fraud or suspected fraud affecting the financial statements • fraud or suspected fraud that I am aware of involving management, employees who have a significant role in internal control, or others that could have a material effect on the financial statements. Laws and Regulations 21. I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. Related Party Transactions 22. All material transactions with related parties have been appropriately accounted for and disclosed in the financial statements in accordance with the 2021/22 accounting code. I have made available to you the identity of all the West Dunbartonshire Council's related parties and all the related party relationships and transactions of which I am aware. Remuneration Report 23. The Remuneration Report has been prepared in accordance with the Local Authority Accounts (Scotland) Amendment Regulations 2014, and all required information of which I am aware has been provided to you. Management commentary 24. I confirm that the Management Commentary has been prepared in accordance with the statutory guidance and the information is consistent with the financial statements. Corporate Governance 25. I confirm that West Dunbartonshire Council has undertaken a review of the system of internal control during 2021/22 to establish the extent to which it complies with proper practices set out in the Delivering Good Governance in Local Government: Framework 2016. I have disclosed to you all deficiencies in internal control identified from this review or of which I am otherwise aware. 26. I confirm that the Annual Governance Statement has been prepared in accordance with the Delivering Good Governance in Local Government: Framework 2016 and the information is consistent with the financial statements. There have been no changes in the corporate governance arrangements or issues identified, since 31 March 2022, which require to be reflected. Group Accounts 27. I have identified all the other entities in which West Dunbartonshire Council has a material interest and have classified and accounted for them in accordance with the Page 402
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2021/22 accounting code. Any significant issues with the financial statements of group entities, including any qualified audit opinions, have been advised to you. Common Good Fund 28. I confirm, to the best of my ability, that all material common good assets have been identified and correctly accounted for within the common good financial statements and where appropriate, common good assets in use by the Council have been assessed and accounted for in line with IAS 17. Events Subsequent to the Date of the Balance Sheet 29. All events subsequent to 31 March 2022 for which the 2021/22 accounting code requires adjustment or disclosure have been adjusted or disclosed. Yours sincerely Laurence Slavin Section 95 Officer Page 403
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Prepared for the Members of West Dunbartonshire Council and the Controller of Audit 9 November 2022 West Dunbartonshire Council Proposed 2021/22 Annual Audit Report APPENDIX 3 Page 405
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West Dunbartonshire Council Proposed 2021/22 Annual Audit Report | 2 Contents Key messages 3 Introduction 5 1. Audit of 2021/22 annual accounts 8 2. Financial management 20 3. Financial sustainability 29 4. Governance and transparency 36 5. Best Value 39 Appendix 1. Action plan 2021/22 45 Appendix 2. Wider audit dimension risks 48 Appendix 3. Summary of 2021/22 national performance reports and briefing papers 50 Page 406
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Key messages | 3 Key messages 2021/22 annual accounts 1 Our audit opinions on the annual accounts of the council, its group and its section 106 charities administered by the council are unmodified. The financial statements give a true and fair view and were properly prepared in accordance with the financial reporting framework. 2 The management commentary, annual governance statement and remuneration report were all consistent with the financial statements and properly prepared in accordance with the relevant regulations and guidance. 3 A number of errors were identified in the accounting for non-current assets. While the errors have been corrected, procedures need to be improved to ensure the accuracy of the non-current asset figures in the 2022/23 annual accounts, before they are approved for audit. Financial management 4 Financial management is effective and the council operated within budget in 2021/22. Elected members receive regular updates to ensure they are kept up to date with the impact on services. 5 The Covid-19 pandemic continues to have a significant impact on the council’s finances. The use of two new Scottish Government financial flexibilities added £1.454 million of income on top of £4.488 million of direct unearmarked Covid-19 funding. At 31 March 2022, £3.445 million of Covid-19 funding was unspent for use in future years. 6 The council’s outstanding loans total £578.408 million. Recent interest rate rises may present a longer-term risk for the council. 7 A trend of significant levels of delay to capital projects continues, with 42% of planned capital expenditure slipping beyond milestones, although the impact of the pandemic was a significant factor. 8 The innovative Clydebank district heating network is operational, funded by a significant investment from the council and managed by its own green energy company Page 407
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Key messages | 4 Financial sustainability 9 The budget for 2022/23 is £252.394 million, with a range of cost-saving measures used to close a budget gap of £5.508 million. 10 The council faces significant financial challenges in the years ahead, with the estimated budget gap growing to £19.849 million by 2024/25. Total usable net reserves have decreased by £5.158 million. 11 Transformational change aligned with effective medium and longer-term planning is required to address the impacts of the Covid-19 pandemic together with growing inequalities, cost-of-living pressures, and the changing needs of citizens. Governance and transparency 12 Following the May 2022 local government elections, the council has a new administration. A comprehensive training programme is in place to support new and returning elected members. 13 Effective governance and decision-making arrangements were in place during 2021/22. The council conducts itself in an open and transparent manner. Best Value 14 The council has made good progress in demonstrating improvement in its services, but the capital programme continues to fall behind as a result of the pandemic. 15 Residents’ satisfaction with council services overall is high, but performance indicators show challenges in tackling sickness absence levels, empty council homes and recycling. 16 The council has a climate strategy and action plan to address the challenge of reaching net zero by 2045.Service performance levels in 2021/22 were in line with agreed targets. Page 408
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Introduction | 5 Introduction 1. This report summarises the findings arising from the 2021/22 audit of West Dunbartonshire Council (the council) and its group. 2. The scope of the audit was set out in our 2021/22 Annual Audit Plan presented to the 2 March 2022 meeting of the Audit Committee. This report comprises the findings from: • an audit of the annual accounts • consideration of the four audit dimensions that frame the wider scope of public audit set out in the Code of Audit Practice 2016 namely, financial management, financial sustainability, governance and transparency and value for money. Adding value through the audit 3. We add value to the council through the audit by: • identifying and providing insight on significant risks, and making clear and relevant recommendations • sharing intelligence and good practice through our national reports (Appendix 4) and good practice guides • providing clear and focused conclusions on the appropriateness, effectiveness and impact of corporate governance, performance management arrangements and financial sustainability Responsibilities and reporting 4. The council has primary responsibility for ensuring the proper financial stewardship of public funds. This includes preparing annual accounts that are in accordance with proper accounting practices. 5. The council is also responsible for compliance with legislation, and putting arrangements in place for governance and propriety that enable it to successfully deliver its objectives. 6. Our responsibilities as independent auditor appointed by the Accounts Commission are established by the Local Government in Scotland Act 1973, the Code of Audit Practice 2016 and supplementary guidance, and International Standards on Auditing in the UK. 7. As public sector auditors we give independent opinions on the annual accounts. Additionally, we conclude on: Page 409
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Introduction | 6 • the effectiveness of the council’s performance management arrangements, • the suitability and effectiveness of corporate governance arrangements, and financial position • the arrangements for securing financial sustainability and, • Best Value arrangements. 8. Further details of the respective responsibilities of management and the auditor can be found in the Code of Audit Practice 2016. and supplementary guidance. 9. This report raises matters from our audit. Weaknesses or risks identified are only those which have come to our attention during our normal audit work and may not be all that exist. Communicating these does not absolve management from its responsibility to address the issues we raise and to maintain adequate systems of control. 10. Our annual audit report contains an agreed action plan at Appendix 1 setting out specific recommendations, responsible officers and dates for implementation. It also includes outstanding actions from last year and the steps being taken to implement them. Auditor Independence 11. Auditors appointed by the Accounts Commission or Auditor General must comply with the Code of Audit Practice and relevant supporting guidance. When auditing the financial statements auditors must comply with professional standards issued by the Financial Reporting Council and those of the professional accountancy bodies. We can confirm that we comply with the Financial Reporting Council’s Ethical Standard. We can also confirm that we have not undertaken any non-audit related services and therefore the 2021/22 audit fee of £280,840 as set out in our Annual Audit Plan remains unchanged. We are not aware of any relationships that could compromise our objectivity and independence. 12. This report is addressed to both the council and the Controller of Audit and will be published on Audit Scotland's website www.audit-scotland.gov.uk in due course. We would like to thank the management and staff who have been involved in our work for their cooperation and assistance during the audit. Audit appointment from 2022/23 13. The Auditor General for Scotland is responsible for the appointment of external auditors to central government bodies. 2021/22 is the last year of the current appointment round. 14. The procurement process for the new round of audit appointments was completed in May 2022. From financial year 2022/23, Mazars will be the appointed auditor for West Dunbartonshire Council. We will work closely with the new auditors to ensure a well-managed transition. Page 410
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Introduction | 7 15. A new Code of Audit Practice applies to public sector audits for financial years starting on or after 1 April 2022. It replaces the Code issued in May 2016. 16. There are several significant changes introduced by the new Code, namely the integration of Best Value work into wider scope audit work and the audit of Best Value across the Integration Joint Boards. 17. We would like to thank members, Audit Committee members, management and other staff, particularly those in finance, for their co-operation and assistance over the past six years. Page 411
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1. Audit of 2021/22 annual accounts | 8 1. Audit of 2021/22 annual accounts The principal means of accounting for the stewardship of resources and performance Main judgements Our audit opinions on the annual accounts of the council, its group and its section 106 charities administered by the council are unmodified. The financial statements give a true and fair view and were properly prepared in accordance with the financial reporting framework. The management commentary, annual governance statement and remuneration report were all consistent with the financial statements and properly prepared in accordance with the relevant regulations and guidance. A number of errors were identified in the accounting for non-current assets. While the errors have been corrected, procedures need to be improved to ensure the accuracy of the non-current asset figures in the 2022/23 annual accounts, before they are approved for audit. Our audit opinions on the annual accounts are unmodified 18. The accounts for the council and its group for the year ended 31 March 2022 were approved by the Audit Committee on 09 November 2022. As reported in the independent auditor’s report: • the financial statements give a true and fair view and were properly prepared in accordance with the financial reporting framework • the audited part of the remuneration report, management commentary and the annual governance statement were all consistent with the financial statements and properly prepared in accordance with the relevant regulations and guidance 19. We concluded that there were no matters upon which we are required to report, by exception, to the Accounts Commission. Page 412
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1. Audit of 2021/22 annual accounts | 9 The annual audit report and accounts were submitted in line with our agreed audit timetable 20. Submission dates for the audited annual accounts and the annual audit report for 2019/20 and 2020/21 were deferred in line with the later dates for producing the annual accounts because of the impact of Covid-19. As the audit team were aware that Covid-19 would have an impact on the staff resources available and delays in receiving some supporting documentation, we agreed to work to the revised submission deadlines of 30 November 2022. 21. The unaudited annual report and accounts were received in line with our agreed audit timetable on 30 June 2022. The working papers provided with the unaudited accounts were of a good standard and finance staff provided good support to the audit team during the audit. There were no objections raised to the annual accounts 22. The Local Authority Accounts (Scotland) Regulations 2014 require local government bodies to publish a public notice on its website that includes details of the period for inspecting and objecting to the accounts. This must remain on the website throughout the inspection period. No objections were raised to the 2021/22 Annual Accounts. Our audit testing reflected the calculated materiality level of £5.418 million 23. We apply the concept of materiality in both planning and performing the audit and in evaluating the effect of identified misstatement on the audit and of uncorrected misstatements, if any, on the financial statements and in forming the opinion in the auditor’s report. We identify a benchmark on which to base overall materiality, such as gross expenditure, and apply what we judge to be the most appropriate percentage level for calculating materiality values. 24. The determination of materiality is based on professional judgement and is informed by our understanding of the entity and what users are likely to be most concerned about in the annual accounts. In assessing performance materiality, we have considered factors such as our findings from previous audits, any changes in business processes and the entity’s control environment including fraud risks. Our initial assessment of materiality for the annual accounts was carried out during the planning phase of the audit. These materiality levels were reported in our Annual Audit Plan presented to the Audit Committee in March 2022. On receipt of the unaudited 2021/22 annual accounts we recalculated our materiality levels based on the financial results for the year ended 31 March 2022. Our audit approach and testing were adapted to reflect the recalculated materiality levels in Exhibit 1. Page 413
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1. Audit of 2021/22 annual accounts | 10 Exhibit 1 Materiality values Materiality level Council Group Overall materiality: This is the figure we calculated to assess the overall impact of audit adjustments on the financial statements. It has been set at 1% of gross expenditure for the year ended 31 March 2022. £5.418 million £5.444 million Performance materiality: This acts as a trigger point. If the aggregate of errors identified during the financial statements audit exceeds performance materiality this would indicate that further audit procedures should be considered. Using our professional judgement, we have calculated performance materiality at 50% of planning materiality. £2.709 million £2.722 million Reporting threshold: We are required to report to those charged with governance on all unadjusted misstatements more than the ‘reporting threshold’ amount. This has been calculated at 4% of planning materiality. £0.215 million £0.220 million Source: Audit Scotland We have significant findings to report on the audited annual accounts 25. International Standard on Auditing (UK) 260 requires us to communicate significant findings from the audit to those charged with governance, including our view about the qualitative aspects of the body’s accounting practices. We have reported a number of issues from the work done on the identified risks of material misstatement. These are included in the action plan at Appendix 1. 26. The qualitative aspects of the council’s accounting practices, accounting policies, accounting estimates and accounts disclosures are satisfactory and appropriate to the council. 27. The significant findings are summarised in Exhibit 2. In addition to the issues set out below, and in accordance with normal audit practice, a number of presentational and disclosure amendments were discussed and agreed with management. Page 414
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1. Audit of 2021/22 annual accounts | 11 Exhibit 2 Significant findings from the audit of the financial statements Issue Resolution 1. Overstated value of council dwellings due to capitalisation of improvements Expenditure to improve council dwellings (such as kitchens, bathrooms and heating systems) had been capitalised as property, plant and equipment additions over a number of years. The total value carried on the Balance Sheet at 31 March 2022 for this category was £78.224 million. This accounting treatment is correct, based on these being capital enhancing works which improve the quality of the housing stock. However, the impact of these improvements was already reflected in the overall valuation of council dwellings which took place in 2020/21, and this was carried forward into the balances for 2021/22. As a result, the total value of the council dwellings should have adjusted when the revaluation was processed. The annual accounts have been amended for both the current year and the prior year comparator. Once prior years and depreciation values were taken into account, this had the effect of reducing the disclosed value of council dwellings by £80.636 million. The council should review its capital accounting procedures, with a view to improving the systems used to record entries, compliance with accounting requirements, review processes and communication with asset owners. Recommendation 1 (Refer Appendix 1, action plan) 2. The value of property and council dwellings did not match those provided by the valuer The council revalues its non-current assets on a ‘rolling’ cycle, with each category of asset revalued at least every five years. Our review of the fixed asset register found that the net book values of newly-revalued assets did not match those provided by the valuer. The depreciation charges, and subsequent accounting entries, were incorrect as a result. This was because the valuation had been treated as if it occurred on 1 April 2021, when in fact it took place as at 31 March 2022. In addition, £35.306m of new council dwellings were transferred from assets under construction to council dwellings during the year. These were valued at cost, rather than fair value. A revaluation of these properties took place late in the audit process and resulted in a decrease of £23.206 million to the value of council dwellings. The annual accounts have been amended accordingly. The timing issue had the effect of undervaluing assets by around £1.200 million in 2021/22. As this error had also occurred in previous years, the cumulative effect was to increase the valuation of the affected non-current assets by approximately £16.768 million. Page 415
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1. Audit of 2021/22 annual accounts | 12 Issue Resolution 3. Misclassification of non-current assets Our review identified that some significant assets classified as ‘assets under construction’ were, in fact, operational. This included the new district heating energy centre in Clydebank, which has been operational since 2020/21. Depreciation should be charged on an asset if it can be operated as intended. Assets totalling £30.877 million required to be classified as infrastructure or land and buildings assets, and additional depreciation charges were necessary as a result. The annual accounts have been amended accordingly. An additional depreciation charge of £1.466 million was made as a result. 4. Capitalisation of salary costs The unaudited accounts included approximately £4.397 million (£3.984 million in 2020/21) of employee costs which had been capitalised for the development of a number of assets, for example surveying or legal costs. Although this treatment is permitted under International Accounting Standard 16 (property Plant and Equipment) in specific circumstances, the related costs had not been eliminated from the income and expenditure statement. This had no effect on the overall net expenditure figure. Management has made the necessary amendments in the accounts for the current and prior year figures. 5. Overstatement of debtors and creditors Our review of working papers identified that funds relating to the European Social Fund (ESF) and the Construction Industry Scheme (CIS) were double counted overstating both debtors and creditors by £2.343 million and £1.238 million respectively. We also identified an overall credit balance of £0.359 million misclassified within debtors. The necessary amendments have been made in the accounts. These adjustments decreased debtors and creditors by £3.222 million, having a nil effect on net assets. Management should review the year- end procedures to ensure that debtors and creditors are correctly accounted for. Recommendation 2 (Refer Appendix 1, action plan) Source: Audit Scotland 28. Other findings we identified: • Depreciation charges: A depreciation charge is an expense representing how much of a non current asset's value has been 'used Page 416
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1. Audit of 2021/22 annual accounts | 13 up' in a year. Following production of the unaudited accounts, management identified that the depreciation charge on some assets was incorrect due to formula errors. This gross misstatement of £1.197 million resulted in a net increase to the net book value assets of £0.361 million. • Group subsidiaries: Two of the council’s subsidiaries (Clydebank Property Company and the Common Good Fund) had a balance of £7.863 million incorrectly classified as property, plant and equipment, and investments. They should have been shown as investment properties, which has implications for the way these are accounted for. This was a classification issue with a nil effect on total assets. Management have made the necessary corrections. • Accounting policies: Common Good assets with a value of £3.489 million are held as investment properties, per the accounting standards these assets must be held at fair value and revalued each year. There is no accounting policy in the unaudited accounts relating to common good or investment properties. Management have now revalued these assets, which has had a negligible effect, and updated the accounting policy to revalue these assets each year. • Capital commitments: A planned spend of £2 million in relation to the Scottish Marine Technology Park was not included in the capital commitments disclosures. • Fully depreciated assets: Our review of non-current assets identified that fully depreciated assets are removed from the asset register and are no longer recognised in the annual accounts. This is the appropriate accounting treatment where an asset has been disposed of. However, if the council continues to use assets that are fully depreciated, they should consider whether they should be revalued and depreciated over the estimated further useful life. To identify fully depreciated assets which remain in use, management should undertake an asset verification exercise of material assets. Appropriate accounting adjustments should then be made for material assets which remain operational assets of the organisation. 29. We have obtained audit assurances over the identified significant risks of material misstatement to the financial statements. Exhibit 3 sets out the significant risks of material misstatement to the financial statements we identified in our 2021/22 Annual Audit Plan audit. It summarises the further audit procedures we performed during the year to obtain assurances over these risks and the conclusions from the work completed. 30. Our most significant findings in 2021/22 relate to the accounting treatment of non-current assets. This area involves complex calculations and estimates which can materially alter the largest values on an organisation’s balance sheet. Auditors and regulators across the public and private sectors have increased their focus on areas where more judgement is exercised, such as property valuations. Page 417
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1. Audit of 2021/22 annual accounts | 14 31. While the errors have been corrected, procedures need to be improved to ensure the accuracy of the non-current asset figures in the 2022/23 annual accounts, before they are presented for audit. Recommendation 1 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. Exhibit 3 Significant risks of material misstatement reported in the 2021/22 Annual Audit Plan Audit risk Audit response to risk Results and conclusions 1. Risk of material misstatement due to the fraud caused by the management override of controls As stated in International Standard on Auditing (UK) 240, management is in a unique position to perpetrate fraud because of management’s ability to override controls that otherwise appear to be operating effectively. • Assess the design and implementation of controls over journal entry processing. • Make inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries and other adjustments. • Test journals entries with a focus on significant risk areas. • Evaluate significant transactions outside the normal course of business identified through audit testing of income and expenditure, accruals and cut off transactions. • Assess the adequacy of controls in place for identifying and disclosing related party relationship and transactions in the financial statements. • Review accounting estimates for evidence of management bias including assessing any Results: We assessed the design and implementation of controls over journal entry processing. No significant issues were noted. Management did not identify any inappropriate or unusual activity with journals or other adjustments. Journal adjustments were tested, and no indications of management override of controls were found. We reviewed transactions during the year - no issues were highlighted of significant transactions outside the normal course of business. Judgements and estimations applied were tested to confirm they were appropriate and reasonable. Conclusion: There was no evidence of management override of controls from the work we performed. Page 418
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1. Audit of 2021/22 annual accounts | 15 Audit risk Audit response to risk Results and conclusions changes to the methods and underlying assumptions used to prepare accounting estimates compared to the prior year. 2. Estimation in the valuation of Property, Plant and Equipment West Dunbartonshire Council’s property, plant and equipment had a net book value of £1,111,227 million as at 31 March 2021. There is a significant degree of subjectivity in the valuation of this category of assets. Valuations are based on specialist and management assumptions, and changes in these can result in material changes to financial disclosures. • Review of the work of the valuer, including focused substantive testing of the classification and valuation of assets. • Evaluate the competence, capabilities, and objectivity of the professional valuer. • Confirm asset values in valuation certificates are fairly reflected within the 2021/22 accounts • Review the annual cycle of valuations to ensure that assets have been valued within the five- year rolling programme. • Evaluate the approach taken to ensure that assets not subject to revaluation in 2021/22 are not materially misstated. • Assess the adequacy disclosures in the accounts covering the valuation of the property, plant and equipment. Results: Our review of the council of the internal and external valuation team confirmed the appropriateness of the methodology and assumptions used. Conclusion: We have made a number of findings in relation to non-current assets which are detailed in Exhibit 2. Recommendation 1 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. Other areas of audit focus 32. We identified in our 2021/22 Annual Audit Plan areas where we considered there to be other risks of material misstatement to the financial statements. Based on our assessment of the likelihood and magnitude of the risk, we did not consider these to represent significant risks. The areas of specific audit focus were: Page 419
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1. Audit of 2021/22 annual accounts | 16 • The pension liability valuation due to the material value and significant assumptions used in the calculation of the liability. • The consolidation and disclosures for the West Dunbartonshire Energy LLP company due to this being the first year of consolidation for this entity into the council’s Group. • The loans fund holiday due to use of the Covid-19 financial flexibilities available to the council. 33. We kept these areas under review throughout our audit. We identified improvements to some of the disclosures relating to the loans fund holiday and the consolidation of the energy company: • Following its first year of inception, the new council-owned West Dunbartonshire Energy LLP was reported in the accounts as having a net liability at 31 March 2022 of £0.397 million, funded as a working capital advance from the council. This is likely to be repaid over a number of years at a market interest rate. This capital amount of £0.397 million was accounted for a debtor in the council’s accounts, however it is more appropriate to re-classify this as an investment held within non- current assets. We have commented positively on this innovative scheme in paragraph 80. • The finance circular which permitted use of capital receipts to fund Covid-related expenditure required the approval of full council. Retrospective agreement is expected to be sought for this in October 2022. 34. Management made the necessary adjustments for these issues and there are no further matters which we need to bring to your attention. Identified misstatements of £138.610 million were adjusted in the annual audited accounts 35. We identified misstatements with a gross value of £138.610 million in the unaudited annual accounts. As the total was above our performance materiality level, we considered the need to revise our audit approach. We reviewed the nature and causes of these misstatements to consider the need for additional audit testing. As a result of the errors identified, we undertook additional testing in some areas to address these areas of risk. 36. Management has adjusted the accounts to correct all the misstatements. These adjustments have contributed to the total comprehensive net income increasing by £31.776 million, with a corresponding increase in total reserves. Further details of some of the more significant adjustments are included in Exhibit 2. Page 420
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1. Audit of 2021/22 annual accounts | 17 The council applied the statutory override for the accounting for infrastructure assets included in its property plant and equipment assets 37. The Code of Practice for Local Authority Accounting in the United Kingdom (the Code) requires infrastructure assets to be measured using the historical cost measurement basis and carried at depreciated historical cost. Where a component of an asset is replaced, the carrying amount (i.e., net book value) of the old component shall be derecognised to avoid double counting and the new component shall be reflected in the carrying amount of the infrastructure asset. 38. Due to practical difficulties in applying component accounting for the recognition and derecognition of replaced components of infrastructure assets, in large part due to data limitations, the Scottish Government approved a Statutory Override - Accounting for Infrastructure Assets that is applicable to 31 March 2024. The statutory override is formed of two parts: • 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 from 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 to be 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. 39. Where a local authority chooses to adopt either or both statutory overrides, this should be disclosed within the relevant note to the annual accounts. 40. West Dunbartonshire Council applied both parts of the statutory override in its 2021/22 annual accounts. As part of our audit, we reviewed the infrastructure assets disclosures and the related notes, including the relevant disclosure in the accounting policies. We are satisfied that these disclosures reflect the statutory override and adequately explain the approach adopted to the readers of the annual accounts. The council’s 2021/22 management commentary provides a fair and balanced picture of its performance and operational activity for the year 41. Management commentaries included within the annual accounts should provide information on its main objectives and the principal risks faced. It should provide a fair, balanced and understandable analysis of an organisation’s performance as well as helping stakeholders understand the financial statements. 42. The management commentary in the 2021/22 annual accounts provides a good analysis of the council’s financial performance throughout the year. It explains how the council has performed against its budget and how this is reconciled to the financial statements. The council has also included a good level of disclosure on the principal risks it is facing going forward. This includes Page 421
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1. Audit of 2021/22 annual accounts | 18 details on the scale of financial challenges, including those as a result of the pandemic, which will continue to be an area of focus for the foreseeable future. 43. In our view, the 2021/22 disclosure represents a fair and balanced commentary on the council’s performance in 2021/22 We have given an unqualified opinion on the financial statements for the charities administered by the council 44. Due to the interaction of section 106 of the Local Government in Scotland Act 1973 with the charities legislation, a separate independent auditor's report is required for the statement of accounts of each registered charity where members of West Dunbartonshire Council are sole trustees, irrespective of the size of the charity. 45. West Dunbartonshire Council administer the Dr A K Glen and West Dunbartonshire Charitable Trusts, a registered charity that incorporates five trust funds. A single statement of accounts is produced each year covering the five trust funds and as at 31 March 2022 a cumulative balance of £0.262 million was held in these funds. 46. Our audit opinions on the Section 106 charities are unmodified. 47. Our duties as auditors of the charities administered by West Dunbartonshire Council are to: • express an opinion on whether the charity’s financial statements properly present the charity’s financial position and are prepared in accordance with charities legislation • read the trustees’ annual report and express an opinion as to whether it is consistent with the financial statements • report on other matters by exception to the trustees and to the Office of the Scottish Charity Regulator (OSCR) 48. We have given an unqualified opinion on the financial statements for the charities administered by the council and have nothing to report in respect of other matters. 49. Two wider dimension risks were identified during the planning process. These related to the potential dormancy of certain charitable trusts, and the governance and investment documentation for the following charitable trusts: • Dunbartonshire Educational Trust Scheme 1962 • McAuley Prize for Mathematics • UIE Award 50. These trusts continue to face prolonged legal and administrative challenges in order for them to discharge their obligations, which we have Page 422
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1. Audit of 2021/22 annual accounts | 19 reported in previous years. The Dunbartonshire Education Trust requires a meeting of the governors appointed from four local authorities in order to formally adopt a reorganisation scheme. The McAuley Prize bequest is without governing documentation, and so requires a new trust deed. We understand that the council is seeking to agree new trustees for the UIE award, which is dormant, and a court petition is required to made a formal appointment. As a result, they are included in the agreed action plan at Appendix 1. Action plan 2021/22 51. Only one of the charitable trusts made a payments during 2021/22, which was a single award of £19,800 from the Dr A K Glen fund. Since our report last year, the council has provided further information on its website on the charitable trusts, including an application form. However, only one application was made in-year. As the appointed auditors of the Section 106 charities administered by the council, we are required to consider whether the funds held within the trusts are being used for the purposes intended. This includes reporting any inappropriate use of funds or prolonged lack of activity - the 'public benefit' test. 52. A charity is not failing the public benefit test if they are not providing benefit in any particular year. However, if no benefit is being delivered for an extended period then the charity could be considered to be dormant. If a dormant charity has no clear plans to rectify that, it may be appropriate for us as external auditors to report this to the Office of the Scottish Charity Regulator (OSCR) Refer recommendations CH1 and CH2 in the Action Plan. Recommendation CH1 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. Good progress was made on prior year recommendations 53. The council has made good progress in implementing our prior year audit recommendations. For actions not yet implemented, revised responses and timescales have been agreed with management, and are set out in Appendix 1. Page 423
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2. Financial management | 20 2. Financial management Financial management is about financial capacity, sound budgetary processes and whether the control environment and internal controls are operating effectively. Main judgements Financial management is effective and the council operated within budget in 2021/22. Elected members receive regular updates to ensure they are kept up to date with the impact on services. The Covid-19 pandemic continues to have a significant impact on the council’s finances. The use of two new Scottish Government financial flexibilities added £1.454 million of income on top of £4.488 million of direct unearmarked Covid-19 funding. At 31 March 2022, £3.445 million of Covid-19 funding was unspent for use in future years. The council’s outstanding loans total £578.408 million. Recent interest rate rises may present a longer-term risk for the council. A trend of significant levels of delay to capital projects continues, with 42% of planned capital expenditure slipping beyond milestones, although the impact of the pandemic was a significant factor. The innovative district heating network is operational, funded by a significant investment from the council and managed by its own green energy company The council’s financial management processes are effective 54. During the 2021/22 annual budget setting process we observed that elected members were provided with projected funding gaps and savings options to enable them to make soundly based decisions on closing any funding gaps. Based on our observations of the budget setting process, we are satisfied that the council’s budget setting process operates effectively. 55. Performance against budget and projected outturn was reported to members during the year through budgetary control reports, allowing action to be taken on any unplanned variances. Additionally, Covid-19 update papers at council meetings provided information on additional funding and financial pressures on services. Page 424
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2. Financial management | 21 The council operated within budget in 2021/22, with spending tightly controlled to deliver a small surplus of £0.159 million 56. The council approved its 2021/22 budget in March 2021 (22 March 2021). The initial budget was set at £231.919 million, and was further revised throughout the year as more information on additional Covid-related funding was released. By the year-end, total budgeted expenditure had increased to £252.986 million, with £6.460 million income attributable for Covid-19 purposes. 57. The results from a previous consultation with West Dunbartonshire residents, held in 2019, were used in the 2021/22 budget setting process as the outcomes of the previous process were considered to remain valid in closing the budget gap in 2021/22. The updated budget paper presented to the Council on 23 March 2022 projected a favourable variance on the revenue budget of £0.057m (0.02% of total budget), with agreed savings of £3.212 million reported as on track to be achieved. The actual in-year surplus delivered was £0.159 million against the budget. 58. The main favourable variances against budget, particularly within corporate and education services, were due to actions such as control of staff vacancies and efficiency reviews, as well as less than anticipated demand for services. 59. The changes in the budget position were reported in revenue budget control reports presented to members throughout the year. These reports contained a good level of detail on the forecast outturn position, as well as details on the costs of Covid-19 and the funding received in support of this. The council received £4.488 million of direct unearmarked Covid-19 funding, and administered around £14 million of agency income, to alleviate the impact of the Covid-19 pandemic on individuals, businesses and the economy 60. At the time of setting the 2021/22 budget, the council had moved on from the initial emergency response to the pandemic but was continuing to respond to unprecedented challenges to the delivery of services. Ongoing restrictions, Covid-19-related staff absences and the uncertain nature of the pandemic, for example the emergence of the Omicron variant, resulted in adaptation and disruption to service provision. The unprecedented impact on public finances of the Covid-19 pandemic has been reported in the Local Government in Scotland Overview 2022. 61. West Dunbartonshire Council received £4.488 million in Covid-19 related funding in 2021/22 (£20.43 million in 2020/21), plus £1.973 million which had been carried forward from 2020/21. The council used two new financial flexibilities made available by the Scottish Government to mitigate the financial impact of Covid-19 in 2021/22. This provided a further £1.454 million of additional funding, although will come at a cost to the council in future years as loan fund payments increase. The flexibilities permit: • capital receipts being used to finance Covid-19 revenue expenditure Page 425
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2. Financial management | 22 • a Loans Fund repayment holiday to defer loans fund repayments due to be repaid in 2021/22. 62. A total of £3.445 million Covid funding was transferred to the council’s general reserve. This will be used to manage the ongoing budget pressures resulting from the pandemic in 2022/2023 and beyond. 63. Throughout 2021/22 the council has played a key role in supporting individuals and families through the financial burden of the pandemic. This included facilitating support for: • those self-isolating • provision of free school meals • funding for education recovery • advice to businesses 64. The council was responsible for administering £14.284 million of payments to various business and support grant schemes. Due to grant conditions, these business support funds are considered to represent an agency agreement. Agency payments are those paid out by the council on behalf of another organisation, in this case the Scottish Government. As such, the £14.284 million does not appear in the council’s annual accounts, except for being appropriately disclosed in its management commentary. 65. We reviewed the council’s accounting treatment for each of the grants against the applicable guidance and concluded that the council had classified, and where required, correctly accounted for the grants in its 2021/22 annual accounts. 66. Despite the impact of the pandemic on the economy, the council's in-year collection of council tax increased slightly from 94.18% in 2020/21 to 94.53% in 2021/22. This may be due to eased payment terms and follow-up processes to assist residents. The housing revenue account reported an overall deficit of £4.630 million funded through a use of reserves 67. The council is required by legislation to maintain a separate housing revenue account and to ensure that rents are set a level which will at least cover the costs of its social housing provision. As at the end of March 2022, West Dunbartonshire Council owned 10,378 housing units. 68. In March 2021, the council approved a 1.5% increase in the average weekly rent levels for tenants for 2021/22. The rent level was set to reflect the income required to fund the revenue budget of £46.168 million. In 2021/22, the council recorded a deficit on HRA services of £4.63 million which has been funded through use of reserves, which at the start of the year stood at £7.364 million. This is in line with the HRA financial plan to fund some capital from revenue to reduce the costs of borrowing. Page 426
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2. Financial management | 23 69. The standing Council policy is that an HRA Prudential Reserve of 2% of gross expenditure should be maintained, which equates to £0.923m for 2021/22. The balance available to the HRA for future use is £2.734m. 70. Last year we noted that issues relating to the Housing Repair telephone contact centre had been reported, with tenants facing a lengthy wait to resolve problems. The council acknowledged the deterioration in service and put in place measures to alleviate this, including planned recruitment. 71. The net surplus on the housing maintenance trading account was £0.568 million from a total budget of £1.4 million. Continuous high levels of Covid- related absence, together with the national skills shortage and higher supplies costs, caused difficulties in addressing the council’s repairs and maintenance backlog. The reduction in repairs and maintenance activity during the year will likely have a knock-on effect on the level of such activity required in future years. 72. In March 2021, the Council approved the Housing Capital Programme 2021-2026, with an expenditure budget of £83.393m for the affordable housing supply programme. 73. Through the Council’s Strategic Housing Investment Plan, supported by the Scottish Government’s Affordable Housing Programme, more than 1000 new social homes for rent were completed in West Dunbartonshire by the council and private sector partners by April 2022, including 467 new council homes. In 2021/22, the council delivered 211 new-build homes. A trend of significant levels of delay to the council’s capital projects continues, with 42% of planned capital expenditure slipping beyond milestones 74. We reported in the Best Value Assurance Report (June 2018) that there has been a trend of significant levels of capital slippage at the council over a number of years and recommended that the council review its project management processes and consider performing self-assessments to identify areas for improvement. In response to this recommendation the council agreed improvement actions to address the level of slippage. These actions were completed during 2018/19 and the council anticipated these would lead to improvements in the delivery of the capital programme going forward. 75. The council’s overall capital programme includes a number of high-profile and ambitious projects, such as redevelopment of the ExxonMobil site in Bowling, and regeneration of Dumbarton town centre. For 2021/22, the council had a budgeted capital programme of £105.054 million split between £56.726 million for planned general services capital projects and £48.328 million for HRA capital works. 76. Total capital expenditure in 2021/22 was £64.219 million of which £33.619 million related to general services and £30.600 million to the HRA capital programme. The total in-year slippage was £44.883 million (42 per cent), with slippage of £24.958 million (44 per cent) against the general services programme and £19.925 million (42 per cent) against the HRA programme. Page 427
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2. Financial management | 24 77. Overall, 42% of planned capital expenditure slipped beyond anticipated milestone (in 2020/21 this percentage was 34%). The pandemic was noted as being the main factor behind these reductions, with material shortages and longer lead times impacting on the supply chain. Exhibit 6 Summary of significant under/overspends against budget Project Budgeted Spend in 2021/22 Actual Spend Slippage (£m) (£m) (£m) (%) Explanation for slippage General Services District heating network expansion 3.600 0.000 3.600 100 Network expansion to Golden Jubilee National Hospital will commence pending positive commercial discussions. Heritage Capital Fund 2.550 0.875 1.676 66% COVID impacted on the timescale for delivery of a number of projects including Clydebank Town Hall, the Clydebank Museum, and the Dalmuir Library and Gallery. Work is now underway to get these projects progressed. Vehicle Replacement 3.042 1.442 1.600 53% Delay due to the vehicle build time associated with the specialist vehicles and the delivery lead time from the date of supply order placement. Schools Estate Improvement Plan 6.200 4.180 2.020 33% As a result of COVID Skills School was rephased during 2021/22 and further costs are still expected for Renton Campus. HRA New house build 20.281 7.389 12.892 64% Due to a number of different complexities there were delays to getting on site across each of the new build sites. Page 428
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2. Financial management | 25 Project Budgeted Spend in 2021/22 Actual Spend Slippage (£m) (£m) (£m) (%) Explanation for slippage Projects to deliver housing strategies (Buy Backs) 1.706 1.036 .670 39% 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 3.831 1.357 2.474 65% Installations are behind original planned targets due to internal and external contractor resource issues Building external components 4.088 2.105 1.983 49% Resource issues has delayed the roof renewal programme which continues into 2022/23. Additional installations by support contractors is underway to assist completions Sources: Capital spend outturn report 2021/22, West Dunbartonshire Council August 2022, West Dunbartonshire Council unaudited annual accounts 2021/22 78. It is important that the council addresses the slippage caused by the pandemic. As the impact of the pandemic eases, we would anticipate a return to pre-pandemic levels of programme delivery. In its Local Government in Scotland: Overview 2022 report the Accounts Commission highlighted the important role of capital investment in councils’ recovery from the pandemic. 79. In particular, there is a need for investment to be aligned with plans to tackle the impact of climate change, with modernisation of councils’ estates needed to ensure carbon reduction targets are achieved. The innovative Clydebank district heating network is now operational, run by the council’s own green energy company 80. The importance of investment in this area is something the council has recognised in its Climate Change Strategy, published in January 2021, and is evident in sustainable and pioneering initiatives such as the district heating network in Clydebank, which is the first large-scale water source heat pump scheme of its kind in Scotland. Page 429
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2. Financial management | 26 81. The council has established its own energy company, West Dunbartonshire Energy LLP, to operate and manage the system, with £0.397 million of working capital advanced from the council. 82. The council will fund £14.458 million of the cost of the system, with the Scottish Government funding £6.1million through the Low Carbon Infrastructure Transition Programme. Heat is now being supplied to council offices at Aurora House, the Titan Enterprise Centre, Clydebank Leisure Centre and the new care home at the site, Queens Quay House. Plans are in place to supply the Clydebank Health Centre, over 140 flats and retail units currently on site, all other homes planned for the site, as well as Clydebank Library and Clydebank Town Hall. The council has high levels of debt, with outstanding loans standing at £578.408 million. Recent interest rate rises may present a longer-term risk for the council 83. In recent years we have reported the council’s overall levels of debt as compared to its annual revenue, which has been among the highest levels in Scotland. In 2020/21, the ratio of net debt to revenue was 220 per cent. Using the same methodology this has now improved slightly to 217 per cent. 84. At 31 March 2022, the council’s total outstanding borrowing stood at £578.408 million (excluding PPP debt of £92.485 million), an increase of £29.749 million on the 2020/21 level of £548.659 million. Loan repayments of £320.748 million were made during 2021/22, new loans of £350.500 million (long-term loans of £35 million and short-term loans of £315.500 million) were taken out during the year. 85. As with recent years, the additional borrowing was required to help finance the council’s capital programme and short-term borrowing was used to take advantage of low interest rates. 86. We recognise that the council’s borrowing figure includes debt associated with both the HRA and the council’s PPP assets which not all Scottish local authorities have, and that the current cost of borrowing is at historically low levels. The significant proportion of borrowing presents a risk for the council if interest rates on debts increase. Management has indicated it intends to conduct a review of the capital programme to report in December 2022, with recommendations to reduce costs. Exhibit 7 shows the scale of recent increases to the UK base interest rate since 2012. Page 430
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2. Financial management | 27 Exhibit 7 Bank of England base interest rate since 2012 Source: Bank of England (https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp) Internal controls operated effectively during 2021/22 87. As part of our 2021/22 audit, we tested the key controls operating over the main accounting systems. Our objective was to gain assurance that the systems for processing and recording transactions provide a sound basis for the preparation of the annual accounts. 88. Our controls work did not identify any significant risks of material misstatement, with the internal controls providing a sound basis for the preparation of the annual accounts. Internal audit provided a ‘generally satisfactory’ level of assurance over the council’s governance, risk management, and internal controls in place during 2021/22 89. The internal audit service, in any organisation, is an important element of internal control. It provides members and management with independent assurance on risk management, internal control and corporate governance processes as well as providing a deterrent effect to potential fraud. 90. We found the council’s internal audit to be operating effectively, and in line with the Public Sector Internal Audit Standards (PSIAS) requirements. 91. PSIAS require the provision of an annual internal audit opinion, to inform the council's annual governance statement. The Shared Service Manager – Audit & Fraud issued her Annual Assurance Statement to the Audit Committee in June 2022 which included the opinion that: The report concludes that the majority of West Dunbartonshire Council’s established internal control procedures operated as intended to meet management's control requirements for each area reviewed by Internal Audit in 2021/22. The overall audit opinion was “Generally Satisfactory with some improvement needed”. The improvements required related to aspects of stock security and use of council vehicles. Management is progressing actions in line with agreed timescales. 0 0.5 1 1.5 2 2.5 2012 2013 2013 2013 2014 2014 2014 2015 2015 2015 2016 2016 2016 2017 2017 2017 2018 2018 2018 2019 2019 2019 2020 2020 2020 2021 2021 2021 2022 2022 Page 431
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2. Financial management | 28 The council has in place appropriate arrangements for the prevention and detection of fraud and corruption 92. The council has a range of established procedures for preventing and detecting fraud and irregularity including a whistleblowing policy, anti-fraud strategy and codes of conduct for members and officers. 93. The council continues to participate in the National Fraud Initiative (NFI). This is a counter-fraud exercise across the UK public sector which aims to prevent and detect fraud. By the end of March 2021, 52% of matches had been actioned in relation to the 2020/21 exercise, with progress delayed due to vacancies in the internal audit service. 94. We have concluded that the council has generally appropriate arrangements in place for the prevention and detection of fraud and corruption. We are not aware of any specific issues we require to bring to your attention. Page 432
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3. Financial sustainability | 29 3. Financial sustainability Financial sustainability looks forward to the medium and long term to consider whether the council is planning effectively to continue to deliver its services or the way in which they should be delivered Main judgements The budget for 2022/23 is £252.394 million, with a range of cost-saving measures used to close a budget gap of £5.508 million. The council faces significant financial challenges in the years ahead, with the estimated budget gap growing to £19.849 million by 2024/25. Total usable net reserves have decreased by £5.158 million. Transformational change aligned with effective medium and longer-term planning is required to address the impacts of the Covid-19 pandemic together with growing inequalities, cost-of-living pressures, and the changing needs of citizens. The budget for 2022/23 is £252.394 million, with a range of cost- saving measures used to close a budget gap of £5.508 million 95. As part of the 2022/23 budget-setting process, a report to the Council on 9 March 2022 estimated an initial budget gap of £5.508 million. A range of options were presented to close the gap. These included the use of reserves (£1.034 million), the continued use of financial flexibilities permitted to allow councils to respond to Covid (£0.700 million), a 3% increase to Council tax and a proposal to negotiate the funding split of residential child placements with the HSCP (£1.365 million). 96. The council approved a total net revenue budget of £251.064m for 2022/23 in March 2022. Since then additional funding, including Covid-related income, has been provided by the Scottish Government bringing the revised net budget to £252.394 million. 97. As at the end of July 2022, an overspend of £0.318m was projected for 2022/23 (0.13% of the total budget). Officers reported that from identified savings measures of £0.276 million, £0.251 million are on target to be achieved. A budgeted assumption to reduce residential care costs by £1.365 million – by increasing the West Dunbartonshire Health and Social Care Partnership’s share of costs from 50% to 77% – requires the agreement of both parties, and has not yet been agreed. Page 433
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3. Financial sustainability | 30 The council faces significant financial challenges in the years ahead, with the estimated budget gap growing to £19.849 million by 2024/25 98. The budget also estimated future annual budget gaps based on a range of assumptions including future Scottish Government funding, inflation, council tax increases and interest rates. At the time of setting the budget in March 2022, projections identified expected budget gaps of £13.761m in 2023/24 rising cumulatively to £18.622m in 2024/25. 99. The Scottish Government's Resource Spending Review, published in May 2022, indicates intentions that local government funding will remain as ‘flat cash’, i.e. static, at current 2022/23 levels until 2025/26 with a further £100m added in 2026/27. This would mean requiring the council to absorb inflationary and pay award increases, as well as increases to energy costs. In addition, there is uncertainty over how long Covid-related funding will continue to be made available to promote recovery. 100. In June 2022, the Chief Officer – Resources presented to the council an updated assessment of the financial challenges facing the council. The assumptions underpinning the previous budget gap projections were refined. This included removing an assumption that council tax would increase by 3%, higher inflation, interest rates and pay awards, and increasing utility costs. The revised projection estimates a deteriorating position for the council, (Exhibit 10) with a mid-range scenario now projecting a £19.849 million annual deficit position by 2024/25 unless significant savings can be made. 101. The local government pay settlements for 2022/23 will add substantial pressures to the council’s budgets. The council is currently considering how the increases will be funded. Exhibit 8 West Dunbartonshire Council - Identified budget gaps 2023/24 to 2024/25 (cumulative) Budget gap scenario 2023/24 £000 2024/25 £000 Best Case 13,636 18,709 Mid-Range 14,309 19,849 Worst Case 22,164 34,724 Source: Financial Update, West Dunbartonshire Council, 22 June 2022 Page 434
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3. Financial sustainability | 31 102. Achieving the required savings for 2022-2025, against a backdrop of the continuing financial impact of the Covid-19 pandemic and significant inflationary cost pressures, is likely to prove challenging. 103. The council has a long-term financial strategy in place which is updated annually and was refreshed in October 2021. It reflects the impact of the pandemic on financial and service pressures, identifies budget gaps and provides clear links to the council’s strategic objectives. The long-term cumulative anticipated funding gaps identified have since been reviewed and increased, as we note above. Transformational change aligned with effective medium and longer-term planning is required to address the impacts of the Covid-19 pandemic together with growing inequalities, cost-of- living pressures, and the changing needs of citizens 104. There remains uncertainty over the longer-term funding position for councils. In its Local Government in Scotland: Overview 2022 report, the Accounts Commission reports that councils have seen their underlying cumulative funding fall by 4.2 per cent in real terms since 2013/14 (excluding Covid-19 funding). This contrasts with an increase of 4.3 per cent in Scottish Government funding of other areas of the budget over the same period. 105. This funding reduction is against the backdrop of a range of new challenges facing councils, including decisions on what services to reinstate and redesign, and to what level, following the Covid-19 pandemic. Councils across Scotland have struggled in the past to bring about the level of change that is needed to deliver public service reform, sustainable local government, and better outcomes 106. Transformation programmes, aiming to improve how councils operate, have been disrupted by Covid-19. The budgeted spend in 2021/22 for transformational programmes was £0.526m, and the actual spend as at 31 March 2022 was £0.383m. This includes investment in digital transformation within the council, automation projects and restructuring savings. Total usable net reserves have decreased by £5.159 million 107. One of the key measures of the financial health of a body is the level of reserves held. Usable reserves are those that the council is able to apply to fund expenditure or reduce taxation, and comprise both capital and revenue reserves. The level of usable reserves held by the council decreased by £5.158 million, from £24.211 million to £19.052 million during 2021/22, as shown in Exhibit 6. This is largely attributable to the decision to fund the in-year HRA deficit through reserves in order to reduce future borrowing costs. Page 435
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3. Financial sustainability | 32 Exhibit 9 West Dunbartonshire Council’s usable reserves Reserve 31 March 2021 (£m) 31 March 2022 (£m) General fund 15.028 15.020 Housing revenue account 7.364 2.734 Capital receipts reserve 0 0.030 Capital grants and receipts unapplied 0.042 0.042 Capital reserve 1.469 0.758 Other reserves 0.308 0.468 Total usable reserves 24.211 19.052 Source: Note 29, West Dunbartonshire Council Annual Accounts 2021/22 108. The council’s general fund balance is £15.020m as at 31 March 2022, of which £11.517m is earmarked for specific purposes. The council's prudential reserves policy is to retain a prudential reserve of 2% of net expenditure (excluding funding requisitions to bodies such as the HSCP, Valuation Joint Board, SPT) in order to safeguard assets and protect services against financial risk. This target equates to £3.123 million in 2021/22, therefore the council has exceeded this target by £0.380 million. The overall position of the reserves was considered as part of the budget process for 2022/23. 109. General earmarked reserves have decreased by £0.174 million to £11.517 million. This includes carrying forward £6.791 of Covid-related funding to 2023/24. Exhibit 10 provides an analysis of the general fund balance over the last five years split between the earmarked and uncommitted elements. Page 436
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3. Financial sustainability | 33 Exhibit 10 Analysis of the general fund balance over past five years Source: West Dunbartonshire Council Annual Accounts 2016/17 to 2021/22 110. Consideration of the wider context in which the council is operating in helps to explain higher reserves balances in the past two years. The Accounts Commission’s Local Government in Scotland: Overview 2022 report highlighted that the increase in 2020/21 revenue reserves across most councils was largely because of additional Covid-19 funding. The Commission recognised that this funding had artificially inflated reserve positions, with councils unlikely to have flexibility in the use of large elements of these reserves. This is evident from review of the council’s total usable reserves, with Covid-19 earmarked monies equating to 45.2% per cent (£6.791 million) of the total general fund reserve. 0 2 4 6 8 10 12 14 16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 £ million Committed Uncommitted 0 2 4 6 8 10 12 14 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 £ million Committed Uncommitted Prudential reserve Page 437
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3. Financial sustainability | 34 111. There are ongoing sustainability challenges of using reserves to fund recurring expenditure, particularly as recovery and renewal from the pandemic is progressed. The reserves accumulated in recent years may provide the council with the opportunity to re-shape services to support sustainability going forward. Beyond that, difficult decisions will need to be taken in the future, with effective management of the council’s reserves key to maintaining financial sustainability. The Scottish Government’s proposals for a new National Care Service have the potential to significantly change the way that social care services are structured and operate 112. Following the publication of the Independent Review of Adult Social Care in February 2021, work is currently under way nationally to develop and implement a new National Care Service (NCS). The Scottish Government expects the new NCS to be operational by 2026. These proposals have the potential to significantly change the way that social care services are structured and operate. 113. In its January 2022 Social Care briefing Audit Scotland noted stakeholders concerns about the extent of the proposals for reform and the time it will take to implement them. Many of the current issues experienced by the social care sector, for example workforce pressures, cannot wait for the Scottish Government to implement a new NCS. 114. West Dunbartonshire Council provided a formal response to the consultation through the adoption of a response developed by Convention of Scottish Local Authorities (CoSLA) and supplemented by the advice of the council's chief officers. The response, agreed in November 2021, raised the concern that “transformative change will not be achieved through the primarily structural change that the consultation is proposing but by taking action now to tackle the underlying causes of challenge”. Intention to abolish charges for non-residential care 115. At the June 2022 council meeting, a motion was passed with an intention to abolish £1.5 million of non-residential care charges. The aim was that West Dunbartonshire HSCP would cover this loss of income from the HSCP's unearmarked reserves. At a subsequent meeting of the HSCP, voting members were unable to agree on funding. The issue now lies with the Chief Executives of the Health Board and the Council as per the Integration Scheme dispute resolution process. The council’s allocation from the Scottish Attainment fund is set to reduce to £0.851 million by 2025/26 116. The council’s annual Scottish Attainment Challenge (SAC) allocation is due to reduce from £2.043 million in 2021/22 to £0.851 million in 2025/26. This presents a challenge for the council in continuing to support improvements in attainment levels for learners. Page 438
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3. Financial sustainability | 35 117. The money provided from the Attainment Scotland Fund since its launch 2015 has been targeted at supporting pupils in the nine local authorities of Scotland with the highest concentrations of deprivation. It aims to achieve equity in education through ensuring every child has the same opportunity to succeed, with a particular focus on closing the poverty-related attainment gap. 118. In November 2021, the Cabinet Secretary for Education and Skills set out to Parliament plans for SAC for 2022/23 to 2025/26. The allocations will taper over four years towards a fully equitable distribution in 2025/26, ensuring children and young people are supported across the country. The impact of this on West Dunbartonshire Council is that its annual SAC allocation will reduce to £1.745 million in 2022/23, with further gradual reductions to £0.851 million in 2025/26. This presents an additional challenge for the council in continuing to support improvements in attainment levels across West Dunbartonshire. Page 439
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4. Governance and transparency | 36 4. Governance and transparency The effectiveness of scrutiny and oversight and transparent reporting of information Main Judgements Following the May 2022 local government elections, the council has a new administration. A comprehensive training programme is in place to support new and returning elected members. Effective governance and decision-making arrangements were in place during 2021/22. The council conducts itself in an open and transparent manner. Following the May 2022 local government elections, West Dunbartonshire Council has a new administration 119. Following the local government elections in May 2022, 22 members representing the six multi-member wards were elected across West Dunbartonshire. The political composition is as follows: • Scottish Labour Party – 12 • Scottish National Party – 9 • West Dunbartonshire Community Party – 1 120. In May 2022, at the first meeting of the new council, a Labour-led administration was put in place succeeding the Scottish National Party who led the council in the preceding five years. The established governance structure has been maintained by the new administration. The council has a comprehensive training programme to support new and returning councillors 121. Eleven new councillors were elected to the Council at the local government elections in May 2022, with eight of those new members having never served before. To support these new members, and continuing members, the council provided a comprehensive induction programme which included seminars and briefings on members’ key roles and responsibilities as councillors. Tailored training was also provided to members based on their specific responsibilities, such as for those sitting on the Licensing Board. Page 440
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4. Governance and transparency | 37 122. The council has also adopted the Continuing Professional Development Framework, developed by the Improvement Service, for elected members to provide feedback about their performance, and provide them with personal and professional development opportunities. Effective governance and decision-making arrangements were in place during 2021/22 123. Elected members and management of the council are responsible for establishing arrangements to ensure that its business is conducted in accordance with the law and proper standards, that public money is safeguarded and for monitoring the adequacy and effectiveness of these arrangements. The governance and accountability arrangements we consider include: • council and committee structure • overall arrangements and standards of conduct including those for the prevention and detection of fraud, error, bribery and corruption. This includes action in response to the National Fraud Initiative • openness of council and committees • reporting of performance and whether this is fair, balanced and understandable. 124. Audit committees and Council meetings continued to be held with a hybrid option of attending virtually into 2021/22. This allowed members to undertake their scrutiny role appropriately and, by June 2022, attendance in person became more prevalent. The meetings continued to be audio streamed and recordings made available after the meeting. 125. Meeting papers are available on the council's website to support transparency. The website also allows the public to access a wide range of information including current service updates and restrictions due to Covid-19, advice for individuals and businesses and how to contact the council or make a complaint. 126. No significant risks were identified from our review of the governance and accountability arrangements in the council. The council conducts its business in an open and transparent manner 127. There continues to be an increasing focus on demonstrating the best use of public money. The council support open and transparent business in several ways such as: • Live streaming and audio recording of council and service meetings. This was in place prior to the pandemic and continued throughout. Page 441
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4. Governance and transparency | 38 • Council and committee meeting papers and minutes are publicly available on the council website. Elected members briefings are also publicly available. • The council website contains a wide range of information including the annual accounts, register of members’ interests, fraud reporting policies and complaint procedures. 128. We conclude that the council continues to demonstrate a commitment to conducting business in an open and transparent manner. Collaboration and effective leadership is more important than ever to ensure that outcomes are improved for residents 129. In its Local Government in Scotland Overview 2022 report, the Accounts Commission highlighted that recovery and renewal was not about returning to the pre-pandemic status quo, but ensuring services are reshaped to meet the new needs of the local area. To achieve this, strong leadership from councils is needed. The council’s new and returning councillors should be willing and able to make difficult decisions about where and how to spend its resource, with a willingness to embrace collaborative working within the council and with external stakeholders critical to achieving this. 130. The new council has shown an appetite for collaboration, in establishing, for example, a cross-party cost of living working group. We encourage members and senior officers at the council to maintain an open and collaborative culture. This will help drive improvement and innovation at the council which will in turn will lead to better outcomes for residents. Page 442
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5. Best Value | 39 5. Best Value Using resources effectively and continually improving services. Main judgements The council has made good progress in demonstrating improvement in its services, but the capital programme continues to fall behind as a result of the pandemic. Residents’ satisfaction with council services overall is high, but performance indicators show challenges in tackling sickness absence levels, empty council homes and recycling. The council has a climate strategy and action plan to address the challenge of reaching net zero by 2045. The council has made good progress in demonstrating improvement in its services, but the capital programme continues to fall behind as a result of the pandemic 131. Best value is assessed over the term of our appointment, as part of the annual audit work. In addition, a Best Value Assurance Report (BVAR) for each council is considered by the Accounts Commission at least once during this period. 132. The Best Value Assurance Report (June 2018) for West Dunbartonshire Council reported that the council had made significant improvements in how it works since the previous Best Value report in 2007. It highlighted that the council now demonstrates a focus on delivering Best Value and there was evidence of continuous improvement in its services. The report also included five recommendations which were endorsed by the Accounts Commission. 133. At its meeting on 29 August 2018, the council agreed a Best Value Assurance Improvement Plan which included actions to address all recommendations included in the BVAR. An update against the plan was reported to the Council meeting in February 2020. It noted that all recommendations within the BVAR Improvement Plan had been fully delivered and activity on driving Best Value will continue. 134. In subsequent annual audit reports we reported a summary of the progress made against the BVAR recommendations. A current position statement on the outstanding actions from 2020/21 is summarised in Exhibit 8. Page 443
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5. Best Value | 40 Exhibit 11 Progress against outstanding BVAR recommendations Recommendation Audit Scotland view on progress to date To reduce the level of slippage on the capital plan, the council should review its project management processes. Covid-19 continues to delay progress with the capital programme As we detail in paragraphs 65 to 68, the council has reported slippage against the capital programme. Although the project management improvements are complete, there are still delays in progressing projects. In 2021/22 these occurred for various reasons, with the pandemic and its knock-on effect on absences and supply chains clearly a significant factor.. 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. Significant successes in reducing sickness levels have been short-lived, with 2021/22 data showing a sharp spike in staff absences We reported in our original BV report that the council had taken a range of action to support staff and tackle sickness absence levels. The impact of these actions had not yet been reflected in the reported sickness absence figures, but we accepted that delivering such improvement would be a longer-term process. The latest data – relating to 2020/21 – from the Local Government Benchmarking Framework (LGBF) shows that sickness absence per employee (excluding teachers) in West Dunbartonshire Council decreased to an average of 8.38 FTE days per employee (11.4 days in 2019/20). This places the council favourably below the Scotland-wide average of 9.71 days lost. A similar improvement could be seen with teachers, with only 1.68 FTE days lost in 2020/21 (5.46 FTE in 2019/20), well below the Scottish average of 4.16 days, which made West Dunbartonshire Council as the best performing council in Scotland in this regard. There remain concerns. Figures from the council's annual wellbeing update show that council-wide absences in 2021/22 have spiked significantly to 14.55 FTE days lost per employee, the highest level since at least 2015/16. In the absence of Scotland-wide benchmarking data, which is not yet available, it will be important to understand this deterioration within a national context. We recognise that officers continue to treat the underlying reasons for sickness absence as a priority. Action taken by the Employee Wellbeing group includes employee support initiatives, work with trade unions, monthly webinars and an employee counselling service. The council has effective systems in place to monitor performance and drive continuous improvement, which support scrutiny of service performance 135. The council has effective systems in place to monitor performance and drive continuous improvement. Members and officers effectively scrutinised how services perform: • Each Strategic Service Management Team considers performance reports during routine management meetings. • The Performance Monitoring and Review Group considers regular reports from across strategic areas through its online performance management system, Pentana. This monitors the performance indicators linked to the strategic plan. Page 444
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5. Best Value | 41 • Service committees meet every quarter and get regular performance information. • Service performance is reviewed through the Corporate Services Committee, Education Services Committee, Housing and Communities Committee and Infrastructure, Regeneration & Economic Development Committee and annually through the council. • Officers and councillors have a good understanding of what the council has achieved and the challenges that remain. 136. Based on our attendance at Council and committee meetings during 2021/22 we have concluded that these performance monitoring and reporting arrangements continue to operate effectively and support scrutiny of service performance. The council has a climate strategy and action plan to address the challenge of reaching net zero by 2045 137. West Dunbartonshire Council launched its Climate Change Strategy in January 2021 which has set a target to reduce WDC carbon emissions to ‘net zero’ by 2045, aligning with Scottish Government targets. In order to ensure it realistically meets its 2045 net zero target, the council recognises it will require further internal funding (capital and revenue) and support from all service areas. Exhibit 12 Climate Change Action Plan – 10 key themes to address climate change Source: West Dunbartonshire Council Climate Change Action Plan 2021 Page 445
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5. Best Value | 42 138. In the Audit Scotland Auditing Climate Change 2021 report and the Accounts Commission’s September 2022 briefing on Scotland’s councils’ approach to addressing climate change, it was noted that while public bodies, including councils, have declared a climate emergency, there is a need to ensure the robustness of plans. The plans should include clarity on how targets and timescales will be achieved. The reports also reaffirmed the important role that citizens will have and the need for strong partnership working. 139. The council has recognised this, and has built on its strategy with a Climate Change Action Plan, which was approved in October 2021. This sets out the immediate and longer term actions the council will need to take, both in relation to mitigating and adapting to climate change. This will be reviewed annually and every five years it will go through a full progress review. 140. A Climate Change Action Group has been launched involving senior management from each Council service area. The council has committed to develop a Climate Change Community Forum to underpin more proactive and engaged discussions with and climate actions by the local community. A new strategic plan 2022-27 sets out the vision and key priorities for the council over the next five years 141. This was the final year under the Council’s Strategic Plan 2017-22. The plan contains five-year targets with monitoring and reporting on progress annually. Targets are set from a baseline and reviewed over time, and performance against these is reported to the full council each year in the annual performance report. These measures are considered the most relevant for evidencing the delivery of the key priority and outcome areas defined in the Strategic Plan. 142. The council’s new strategic plan, covering the period 2022-27, will be considered by the council in October 2022. The strategic plan is the key document which sets out the priorities of the council over the next five years, and how performance against outcomes will be measured. 143. The plan groups the council’s priorities under four key themes of ‘our communities, our environment, our economy and our council’ and is aligned to the Scottish Government's national priorities. More than 200 people took part in a survey consultation to give their views. Residents’ satisfaction with council services overall remains high. but performance indicators show challenges in tackling sickness absence levels, empty council homes and recycling 144. The 2021/22 annual performance report is expected to go before the Council in October 2022. From review of the most recent quarterly performance data 2021/22, we note good progress has been made in a number of areas including: • An increase in overall residents’ satisfaction with Council services (93%, up from 89% in 2020/21). Page 446
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5. Best Value | 43 • The number of businesses given advice and assistance to start up through Business Gateway (53 against a target of 50). • Percentage of income due from council tax received by the end of the year (93.3%). 145. However, there remains particular challenges in the following areas: • Percentage of citizens who agree the Council listen to community views when designing and delivering services (72% against a target of 90%). • Percentage of council rent that was lost due to houses remaining empty (1.29% against a target of 0.88%). • Percentage of total household waste that is recycled (34% against a target of 60%). • Sickness absence levels (as noted in Exhibit 8). The council is meeting statutory performance indicators (SPIs) expectations on reporting its performance to the public 146. The Accounts Commission has a statutory responsibility to define the performance information that councils must publish. In turn, councils have their own responsibility, under their Best Value duty, to report performance to the public. The commission does not prescribe how councils should report this information but expects them to provide the public with fair, balanced, and engaging performance information. 147. The Accounts Commission issued a revised 2018 Statutory Performance Information Direction in December 2018 which requires a council to report: • Its performance in improving local public services provided by the council (on its own and with its partners and communities), and progress against agreed desired outcomes • Its own assessment and independent audit assessments of how it is performing against its duty of Best Value, and how it plans to improve these assessments and how it (with its partners where appropriate) has engaged with and responded to its diverse communities. 148. West Dunbartonshire Council continues to participate in the Local Government Benchmarking Framework and publish this data and a range of other performance information on the council website which adequately covers the requirements set out in the SPI direction issued by the Accounts Commission. Relevant national performance audit reports are considered by the council 149. Audit Scotland carries out a national performance audit programme on behalf of the Accounts Commission and the Auditor General for Scotland. Page 447
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5. Best Value | 44 During 2021/22, Audit Scotland published several reports which are of direct interest to the council. These are outlined in appendix 3. 150. We noted that relevant national reports, including the Local government in Scotland: Financial overview 2020/21 and Audit Scotland - COVID-19 Guide for Audit and Risk Committees reports, were considered by the Audit Committee. These were accompanied by information explaining how the findings and recommendations relate to the specific circumstances of West Dunbartonshire Council. We welcome this positive response to our national reports. Page 448
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Appendix 1. Action plan 2021/22 | 45 Appendix 1. Action plan 2021/22 2021/22 recommendations Issue/risk Recommendation Agreed management action/timing 1. 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. Risk: If the accounting for non-current assets is not improved, future accounts could be materially misstated. 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. Exhibit 2 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. Chief Officer Resources 31 March 2023 2. 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. Risk – There is a risk that the figures in the Balance Sheet are overstated. Management should review the year-end procedures to ensure that debtors and creditors are correctly accounted for. Exhibit 2 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. Chief Officer Resources 31 March 2023 Recommendations for charities administered by West Dunbartonshire Council CH1. Governance documentation and dormant activity The trustees of the charities should continue to seek a resolution to legal and administrative barriers which Further action will be taken to raise the profile of the charitable trusts in an attempt to encourage greater Page 449
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Appendix 1. Action plan 2021/22 | 46 Issue/risk Recommendation Agreed management action/timing As we have 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. Risk – There is a risk that funds are lying dormant and do not provide public benefit prevent charitable objectives being achieved. This should include taking steps to make their existence more widely known, and applications more accessible. Paragraphs 50 to 52 applications from qualifying parties. Chief Officer Resources 31 March 2023 Follow-up of prior year recommendations Issue/risk Recommendation Agreed management action/timing PY1. Analysis of rent arrears Our review of the underlying records for the Housing Revenue Account (HRA) identified that the council is currently unable to analyse overdue rent arrears by age of the debt. Risk – The disclosures in the accounts for rent arrears may contain errors, and the council may be unable to adequately identify rent arrears which should be written off. The council should explore improving its systems capability to provide an analysis of rent arrears by age of the debt. Complete West Dunbartonshire Council have new reporting capability and are now able to analyse rent arrears by age of debt. This information has been used to include amounts past due for payment. PY2. Review of rent model The council's current rent model for its housing stock, which bases charges on property size, property type and general quality was implemented in June 2010 at a meeting of the Housing, The rent model should be reviewed to ensure it meets the needs of the council and its tenants. In Progress The current rent model does not include properties built since 2010. The rent model has been discussed with the Joint Rent Group who are satisfied with the current model. A satisfaction survey Page 450
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Appendix 1. Action plan 2021/22 | 47 Issue/risk Recommendation Agreed management action/timing Environment and Economic Development Committee. At that time, the committee resolved that the model was due for review no more than 10 years after implementation, meaning that the review is now overdue. Risk – the rent model does not meet the needs of the council and its tenants. is being completed with all residents regarding the current rent model. The revised model should be presented to full council in due course. Chief Officer – Housing and Employability 31 March 2023 Recommendations for charities administered by West Dunbartonshire Council Issue/risk Recommendation PY CH1. Governance and investment documentation As previously reported: • The Deed of Trust for the Dunbartonshire Educational Trust Scheme 1962 and UIE award require to be updated. • The governing documentation for the McAuley Price for Mathematics is not available and a new trust deed is required. Risk – There is a risk that the Trust does not hold the title to the investment. There is also a risk of delay in issuing awards. Superseded by Recommendation CH1 above. PY CH2. Dormant Trust As previously reported, some of the trusts have been dormant for a number of years and annual activity on all trusts is minimal. Risk – There is a risk that funds are lying dormant and do not provide public benefit. Superseded by Recommendation CH1 above. Page 451
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Appendix 2. Wider audit dimension risks | 48 Appendix 2. Wider audit dimension risks The table below sets out the risks we identified for the 2021/22 audit relating to our wider responsibility under the Code of Audit Practice 2016 and how we addressed each risk in arriving at our conclusion. Audit risk Assurance procedure Results and conclusions 1. Financial sustainability of services The council needs to demonstrate financial sustainability of its services as it faces increasing demand for services and the continuing service pressures from Covid. Covid-19 funding has increased the council’s reserves but these will be needed to meet ongoing costs. The council is projecting funding gaps increasing to £14.355 million by 2024/25. • Review the council’s monitoring reports against the 2021/22 budget and long-term financial strategy. Report the outturn in our 2021/22 annual audit report. • Review how the council demonstrates the long- term affordability of budget decisions, including any planned use of reserves. • Ongoing assessment of the council’s long-term financial strategy. Results & Significant Judgements: As we have reported in Paragraph 56. , the council achieved a £0.159 million surplus against budgeted expenditure for 2021/22. Conclusion: There is uncertainty over how long Covid-related funding will continue to be made available to promote recovery. The long-term financial strategy has identified cumulative anticipated revenue funding gaps within General Services rising to £18.622 million in 2024/25. 2. Capital project delays We have previously reported on a trend of delays in capital projects and capital programme slippage. A significant underspend is forecast against the 2021/22 original capital budget for 2021/22. The majority of this is due to the impact of Covid- 19 and the ongoing restrictions on capital works. • Review the council’s reports for monitoring the budget and progress with the capital programme. Report the outturn in our 2021/22 annual audit report. Results & Significant Judgements: As we have reported in Paragraph 76, 42 per cent of the capital programme has been identified as slippage. Conclusion: Although Covid- 19 is likely to have had a significant impact on the capital programme, there remains a risk of unrealistic or overly optimistic scheduling. We will continue Page 452
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Appendix 2. Wider audit dimension risks | 49 Audit risk Assurance procedure Results and conclusions There is a risk that the council’s ability to deliver against its strategic plan is affected by the delays to completing its capital projects. to monitor progress in this area. CH1. Governance and investment documentation The Deed of Trust for the Dunbartonshire Educational Trust Scheme 1962 and UIE Award require to be updated. The governing documentation for the McAuley Prize for Mathematics is not available and a new trust deed required. • Continue to liaise with officers to establish progress with updating and replacing Deeds of Trust. • Review updated Deeds of Trust. • Provide an update on progress in our 2021/22 Annual Audit Report. Results & Significant Judgements: Progress is being made towards replacing the deeds of trust and governance documentation. Conclusion: In progress CH2. Dormant Trusts Some of the trusts have been dormant for a number of years, with annual activity on all trusts minimal. There is a risk that the trusts are not meeting the requirement of public benefit. • Continue to liaise with officers and monitor the activity on trusts funds. • Provide an update on activity in 2021/22 Annual Audit Report. Results & Significant Judgements: There is minimal activity on some trusts, with only one award in 2021/22. Conclusion: In progress Page 453
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Appendix 3. Summary of 2021/22 national performance reports and briefing papers | 50 Appendix 3. Summary of 2021/22 national performance reports and briefing papers May Local government in Scotland Overview 2021 June Covid 19: Personal protective equipment July Community justice: Sustainable alternatives to custody September Covid 19: Vaccination programme January Planning for skills Social care briefing February NHS in Scotland 2021 March Local government in Scotland: Financial Overview 20/21 Drug and alcohol: An update Scotland’s economy: Supporting businesses through the Covid 19 pandemic Page 454
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Appendix 3. Summary of 2021/22 national performance reports and briefing papers | 51 West Dunbartonshire Council Proposed 2021/22 Annual Audit Report Audit Scotland’s published material is available for download on the website in a number of formats. For information on our accessibility principles, please visit: www.audit-scotland.gov.uk/accessibility For the latest news follow us on social media or subscribe to our email alerts. Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit-scotland.gov.uk www.audit-scotland.gov.uk AS.4.0 Page 455
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Regulatory and Regeneration Council: 21 December 2022 Subject: Committee Timetable - August 2023 to April 2027 1. Purpose 1.1 To ask the Council to approve a committee timetable for the period August 2023 to April 2027. 2. Recommendations 2.1 It is recommended that the Council agrees:- (a) the timetable of meetings for the period August 2023 to April 2027 as shown in the appendix to this report; (b) that meetings of the Council and the four policy committees (Corporate Services, Educational Services, Housing and Communities and Infrastructure, Regeneration and Economic Development) continue to be held in hybrid format in the Civic Space, Council Offices, Church Street, Dumbarton; (c) that meetings of regulatory committees, namely Planning and Licensing, continue to alternate between the Council Offices, Church Street, Dumbarton and Clydebank Town Hall; (d) that Appeals Committee meetings continue to be held in the Council Offices, Church Street, Dumbarton to ensure a sufficient number of rooms are available for the parties involved; and (e) that meetings of the remaining committees continue to be held in the Council Chamber, Clydebank Town Hall. 3. Background 3.1 At its meeting on 22 June 2022 the Council agreed meeting dates up to the end of June 2023. Meeting dates from August 2023 to April 2027 now require to be agreed to ensure the continuity of Council business. 4./ ITEM 15 Page 457
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4. Main Issues 4.1 The timetable proposed in the appendix to this report is based on the current governance arrangements that have been in place for some time. The arrangements, formats and venues have worked satisfactorily and ensured that Council business is dealt with timeously. 4.2 Similar to the previous timetable no meetings of the Cultural Committee have been scheduled, but dates can be fixed as required by the Chair. 5. People Implications 5.1 The proposed cycle of meetings has no implications on current staffing levels. 6. Financial Implications 6.1 A programme of meetings based on the current timetable will have no financial implications. The continuation of daytime committee meetings also removes the need for overtime costs for some of the officers who attend. 7. Risk Analysis 7.1 If the Council fails to approve a timetable of meetings then all matters requiring committee decision will need to be submitted to special meetings of the Council. Given that a Council meeting would not be a suitable forum to consider regulatory matters such as planning and licensing it is recommended that Council approves the proposed dates shown in the appendix attached, or agrees alternatives. 8. Equalities Impact Assessment (EIA) 8.1 An initial equalities impact screening was carried out on venues for committee meetings. The outcome of that screening was that there would be no impact on equalities groups in West Dunbartonshire. 8.2 The provision of live audio streaming of meetings means that meetings are now accessible to some groups that may not have been able to attend previously. 9. Consultation 9.1 Finance and legal officers have been consulted on the content of this report. 10. Strategic Assessment 10.1 This report does not have a direct impact on the Council’s strategic priorities. However, it is essential that the Council’s decision-making Page 458
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structures are effective therefore enabling the Council to make the necessary decisions and monitor the work of the Council departments that will implement the strategic priorities across a range of services. Alan Douglas Chief Officer – Regulatory and Regeneration Date: November 2022 Person to Contact: Christine McCaffary, Senior Democratic Services Officer Email - christine.mccaffary@west-dunbarton.gov.uk Appendix: Draft Committee Timetable - August 2023 to April 2027 Background Papers: EIA screening Wards Affected: All Page 459
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COMMITTEE TIMETABLE - AUGUST 2023 to APRIL 2027 August 2023 Wed 2 August 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 9 August 10 am Audit Committee Tues 15 August 2 pm WD HSCP Board Wed 16 August 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Thurs 17 August 2 pm Community Planning West Dunbartonshire (CPWD) Wed 23 August 10 am Housing and Communities Committee Thurs 24 August 9.30 am Appeals Committee Wed 30 August 4 pm West Dunbartonshire Council September 2023 Tue 5 September 10 am Licensing Board Wed 6 September 4 pm Recruitment and Individual Performance Management Committee (RIPM) Wed 7 September 2 pm Joint Consultative Forum (JCF) Tues 19 September Wed 20 September 10 am 1 pm 3 pm 9.15 am Local Negotiating Committee for Teachers (LNCT) WD HSCP Audit and Performance WD HSCP Board Tendering Committee 10 am Planning Committee Wed 27 September 10 am Educational Services Committee Thurs 28 September 9.30 am Appeals Committee October 2023 Wed 11 October 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 25 October 4 pm West Dunbartonshire Council Thurs 26 October Tues 31 October 9.30 am 10 am Appeals Committee Licensing Board Page 461
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November 2023 Wed 1 November 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Wed 15 November 9.15 am Tendering Committee 10 am Planning Committee Thurs 16 November 2 pm Community Planning West Dunbartonshire (CPWD) Wed 22 November 10 am Housing and Communities Committee Thurs 23 November 9.30 am Appeals Committee December 2023 Wed 6 December 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 13 December 10 am 2 pm Educational Services Committee Audit Committee Wed 20 December 4 pm West Dunbartonshire Council January 2024 Tue 16 January 10 am Licensing Board Wed 17 January 9.15 am Tendering Committee Thurs 25 January 9.30 am Appeals Committee February 2024 Wed 7 February 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Wed 14 February 10 am Planning Committee Wed 21 February 9.15 am Tendering Committee 10 am Audit Committee 2 pm Licensing Committee Thurs 22 February 2 pm Community Planning West Dunbartonshire (CPWD) Wed 28 February 10 am Housing and Communities Committee Thurs 29 February 9.30 am Appeals Committee Page 462
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March 2024 Tues 5 March 10 am Licensing Board Wed 6 March 4 pm West Dunbartonshire Council (budget) Wed 13 March 9.15 am Tendering Committee Wed 20 March 10 am 2 pm Planning Committee Educational Services Committee Wed 27 March 4 pm West Dunbartonshire Council Thurs 28 March 9.30 am Appeals Committee April 2024 Wed 17 April 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 24 April 4 pm West Dunbartonshire Council Thurs 25 April 9.30 am Appeals Committee May 2024 Wed 1 May 10 am Housing and Communities Committee Tues 7 May 10 am Licensing Board Wed 8 May 9.15 am Tendering Committee 10 am Planning Committee Thurs 16 May 2 pm Community Planning West Dunbartonshire (CPWD) Wed 22 May 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Thurs 30 May 9.30 am Appeals Committee June 2024 Wed 5 June 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 12 June 10 am 2 pm Educational Services Committee Audit Committee Tue 18 June 10 am Licensing Board Wed 19 June 4 pm West Dunbartonshire Council Thurs 20 June 9.30 am Appeals Committee Page 463
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August 2024 Wed 7 August 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 14 August 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Thurs 15 August 2 pm Community Planning West Dunbartonshire (CPWD) Wed 21 August 10 am Housing and Communities Committee Wed 28 August Thurs 29 August 4 pm 9.30 am West Dunbartonshire Council Appeals Committee September 2024 Tue 3 September 10 am Licensing Board Wed 4 September 10 am 4 pm Audit Committee Recruitment and Individual Performance Management Committee (RIPM) Wed 11 September 9.15 am 10 am Tendering Committee Planning Committee Wed 18 September 10 am Educational Services Committee Thurs 26 September 9.30 am Appeals Committee October 2024 Wed 9 October 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Thurs 24 October Tues 29 October Wed 30 October 9.30 am 10 am 4 pm Appeals Committee Licensing Board West Dunbartonshire Council November 2024 Wed 6 November 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Wed 13 November 9.15 am 10 am Tendering Committee Planning Committee Wed 20 November 10 am Housing and Communities Committee Thurs 21 November 2 pm Community Planning West Dunbartonshire (CPWD) Thurs 28 November 9.30 am Appeals Committee Page 464
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December 2024 Wed 4 December 10 am 2 pm Educational Services Committee Audit Committee Wed 11 December 10 am Planning Committee 2 pm Licensing Committee Wed 18 December 4 pm West Dunbartonshire Council January 2025 Tue 14 January 10 am Licensing Board Wed 15 January 9.15 am 10 am Tendering Committee Planning Committee Thurs 30 January 9.30 am Appeals Committee February 2025 Wed 5 February 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Wed 12 February 10 am Planning Committee .Wed 19 February 9.15 am Tendering Committee 10 am Audit Committee 2 pm Licensing Committee Thurs 20 February 2 pm Community Planning West Dunbartonshire (CPWD) Wed 26 February 10 am Housing and Communities Committee Thurs 27 February 9.30 am Appeals Committee March 2025 Tues 4 March 10 am Licensing Board Wed 5 March 4 pm West Dunbartonshire Council (budget) Wed 12 March 9.15 am Tendering Committee 10 am Planning Committee Wed 19 March 2 pm Educational Services Committee Wed 26 March 4 pm West Dunbartonshire Council Thurs 27 March 9.30 am Appeals Committee Page 465
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April 2025 Wed 16 April 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 23 April 4 pm West Dunbartonshire Council Thurs 24 April 9.30 am Appeals Committee May 2025 Wed 7 May 10 am Housing and Communities Committee Tues 13 May 10 am Licensing Board Wed 14 May 9.15 am Tendering Committee 10 am Planning Committee Wed 21 May 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Thurs 22 May 2 pm Community Planning West Dunbartonshire (CPWD) Thurs 29 May 9.30 am Appeals Committee June 2025 Wed 4 June 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 11 June 10 am 2 pm Educational Services Committee Audit Committee Tue 17 June 10 am Licensing Board Wed 18 June 4 pm West Dunbartonshire Council Thurs 19 June 9.30 am Appeals Committee August 2025 Wed 6 August 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 13 August 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Thurs 14 August 2 pm Community Planning West Dunbartonshire (CPWD) Wed 20 August 10 am Housing and Communities Committee Wed 27 August Thurs 28 August 4 pm 9.30 am West Dunbartonshire Council Appeals Committee Page 466
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September 2025 Tue 2 September 10 am Licensing Board Wed 3 September 4 pm Recruitment and Individual Performance Management Committee (RIPM) Wed 10 September 9.15 am 10 am Tendering Committee Planning Committee Wed 17 September 10 am Educational Services Committee Wed 24 September Thurs 25 September 10 am 9.30 am Audit Committee Appeals Committee October 2025 Wed 8 October 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Tues 28 October Wed 29 October Thurs 30 October 10 am 4 pm 9.30 am Licensing Board West Dunbartonshire Council Appeals Committee November 2025 Wed 5 November 9.15 am Tendering Committee Wed 12 November 10 am 10 am Planning Committee Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Wed 19 November 10 am Housing and Communities Committee Thurs 20 November 2 pm Community Planning West Dunbartonshire (CPWD) Thurs 27 November 9.30 am Appeals Committee December 2025 Wed 3 December 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 10 December 10 am 2 pm Educational Services Committee Audit Committee Wed 17 December 4 pm West Dunbartonshire Council January 2026 Tue 13 January 10 am Licensing Board Wed 14 January 9.15 am 10 am Tendering Committee Planning Committee Thurs 29 January 9.30 am Appeals Committee Page 467
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February 2026 Wed 4 February 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Wed 11 February 10 am Planning Committee Wed 18 February 9.15 am Tendering Committee 10 am Audit Committee 2 pm Licensing Committee Thurs 19 February 2 pm Community Planning West Dunbartonshire (CPWD) Wed 25 February 10 am Housing and Communities Committee Thurs 26 February 9.30 am Appeals Committee March 2026 Tues 3 March 10 am Licensing Board Wed 4 March 4 pm West Dunbartonshire Council (budget) Wed 11 March 9.15 am Tendering Committee Wed 18 March 10 am 2 pm Planning Committee Educational Services Committee Wed 25 March 4 pm West Dunbartonshire Council Thurs 26 March 9.30 am Appeals Committee April 2026 Wed 22 April 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 29 April 4 pm West Dunbartonshire Council Thurs 30 April 9.30 am Appeals Committee May 2026 Tues 12 May 10 am Licensing Board Wed 13 May 9.15 am Tendering Committee 10 am 2 pm Planning Committee Housing and Communities Committee Wed 20 May 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) Thurs 21 May 2 pm Community Planning West Dunbartonshire (CPWD) Wed 27 May 10 am Corporate Services Committee Thurs 28 May 9.30 am Appeals Committee Page 468
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June 2026 Wed 3 June 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 10 June 10 am 2 pm Educational Services Committee Audit Committee Tue 16 June 10 am Licensing Board Wed 17 June 4 pm West Dunbartonshire Council Thurs 18 June 9.30 am Appeals Committee August 2026 Wed 5 August 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 12 August 2 pm Housing and Communities Committee Wed 19 August 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Thurs 20 August 2 pm Community Planning West Dunbartonshire (CPWD) Wed 26 August Thurs 27 August 4 pm 9.30 am West Dunbartonshire Council Appeals Committee September 2026 Tue 1 September 10 am Licensing Board Wed 2 September 10 am 4 pm Audit Committee Recruitment and Individual Performance Management Committee (RIPM) Wed 9 September 9.15 am 10 am Tendering Committee Planning Committee Wed 16 September 10 am Educational Services Committee Thurs 24 September 9.30 am Appeals Committee October 2026 Wed 7 October 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Tues 27 October Wed 28 October 10 am 4 pm Licensing Board West Dunbartonshire Council Thurs 29 October 9.30 am Appeals Committee Page 469
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November 2026 Wed 4 November Wed 11 November 9.15 am 10 am 10 am Tendering Committee Planning Committee Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Thurs 19 November 2 pm Community Planning West Dunbartonshire (CPWD) Wed 25 November 10 am Housing and Communities Committee Thurs 26 November 9.30 am Appeals Committee December 2026 Wed 2 December 9.15 am Tendering Committee 10 am Planning Committee 2 pm Licensing Committee Wed 9 December 10 am 2 pm Educational Services Committee Audit Committee Wed 16 December 4 pm West Dunbartonshire Council January 2027 Tue 12 January 10 am Licensing Board Wed 13 January 9.15 am 10 am Tendering Committee Planning Committee Thurs 28 January 9.30 am Appeals Committee February 2027 Wed 3 February 10 am Infrastructure, Regeneration and Economic Development Committee (IRED) 2 pm Corporate Services Committee Wed 10 February 10 am Planning Committee Wed 17 February 9.15 am Tendering Committee 10 am Audit Committee 2 pm Licensing Committee Thurs 18 February 2 pm Community Planning West Dunbartonshire (CPWD) Wed 24 February 10 am Housing and Communities Committee Thurs 25 February 9.30 am Appeals Committee Page 470
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March 2027 Tues 2 March 10 am Licensing Board Wed 3 March 4 pm West Dunbartonshire Council (budget) Wed 10 March 9.15 am Tendering Committee Wed 17 March 10 am 2 pm Planning Committee Educational Services Committee Wed 24 March 4 pm West Dunbartonshire Council Thurs 25 March 9.30 am Appeals Committee April 2027 9.15 am 10 am 2 pm Wed 21 April Thurs 29 April 9.30 am Tendering Committee Planning Committee Licensing Committee Appeals Committee Exceptions: At the discretion of the Convener, the Tendering Committee may start earlier to avoid clashing with the start of other committees (but not earlier than 9 am). If required, dates for meetings of the Cultural Committee will be arranged in accordance with Standing Order 3(a). The Licensing Board, as a separate legal entity, sets its own timetable. Any dates shown here for Licensing Board meetings are subject to the Board’s decision. Council asks that the Chair of the Board considers raising these proposals with the Clerk to the Board, with a view to presenting the proposals for discussion and decision as soon as practicable. West Dunbartonshire Health and Social Care Partnership Board and its Audit and Performance Committee; Community Planning West Dunbartonshire Management Board, Joint Consultative Forum (JCF) and Local Negotiating Committee for Teachers (LNCT) set their own meetings timetable. The dates shown here are suggestions only based on previous meeting patterns or may already have been agreed by those bodies. Page 471
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – People & Technology Council: 21 December 2022 ___________________________________________________________________ Subject: Equalities Review of Terms and Conditions of Employment 1. Purpose 1.1 The purpose of this report is to seek agreement of the undernoted proposals of changes to terms and conditions of employment for local government and craft employees to further eradicate inequalities in the context referred to in Paragraph 4.1 below, and to authorise the Chief Officer People and Technology to engage with the Trade Unions for consultation with a view to seeking agreement on their implementation. 2. Recommendations 2.1 The Council is asked to approve the following proposals in this regard: • Align the core terms and conditions of employment for local government and all craft employees to further equality of offering. • To replace current overtime enhanced rates, with a single overtime rate of time plus a quarter for any hours in excess of 37 per week, payable to grades 1 to 7. • A review of contracts of employment across relevant service areas to remove contractual overtime. • Replace the additional 4 public holidays for those employed on Craft Operative terms and conditions (i.e. last Friday and Monday in May, third Monday in July and last Friday in September), with additional days transferred to annual leave entitlement. • Replace 2 public holidays for all employee groups, again transferring these days to annual leave entitlement. • Removal or replacement of alternating shift allowance. • Replace facility for incremental progression after 6 months for eligible employees, instead applying incremental progression annually on 1st April in line with existing employees. • Remove the historical, now closed discretionary Group Life Assurance Scheme provision entirely. • Introduce a provision whereby employees appointed to standalone business critical roles of below grade 8 will be contractually required to give a minimum of 8 weeks’ notice of their intention to terminate employment. 2.2 The Council is also asked to note that a further report(s) will be remitted to this Council in due course outlining options to provide sustainable and ITEM 16 Page 473
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equality proofed shift enhancements for irregular, unsocial hours and options for pay protection. 3. Background 3.1 The Council previously agreed a revised package of terms and conditions to support the national Single Status Agreement. One of the fundamental principles of this Scottish Joint Council (SJC) agreement was to harmonise the many disparate sets of conditions that existed at that time with the intended outcome of achieving an equality based package of terms and conditions. 3.2 As part of the implementation of the Single Status Agreement, reports presented to Council on the 25th June 2008 and the 19th August 2008 stated that enhancements created a risk to equal pay. The proposed revised terms and conditions were subjected to an independent Equality Impact Assessment and the assessment highlighted concerns in relation to pay inequality and specifically to offered enhancements. The Assessor stated that higher rates for enhancements would widen the gender pay gap particularly where employee groups do not have the opportunity to access those enhancements. There were concerns that the proposals to apply higher rates, particularly to overtime payments and payment for working public holidays, favour traditionally male dominated occupations which tend to be full time and disadvantage female employees, the majority of whom work part time hours. Women could suffer potential direct discrimination arising from the widening gap in overall payment levels due to their lower base pay, and potential indirect discrimination due to their inability to access some of these enhanced payments. 3.3 The Equalities Monitoring Report remitted to the Joint Consultative Forum on the 8th September 2022 reported that the sex pay gap for 2021/22 was 2.10% with the female hourly rate of £16.26 and the male hourly rate of £16.61 with 73.4% of the workforce being female. Further analysis of the data has identified that 55% of the female workforce work part time, in comparison to 21% of males. As such, there is a disproportionate impact on females due to the criteria for accessing enhanced allowances as per the terms and conditions of employment, i.e. beyond 37 hours per week. 3.4 In the 13 years since West Dunbartonshire Council implemented the local Single Status provisions, there have been a number of equality related incremental changes to further align differences in employment terms, as follows: • Alignment of carry over annual leave accrual with SJC/LG (i.e. one additional day per year of service); • Application of the SJC Job Evaluation Scheme to the Craft Worker group (as part of our Equal Pay Audit in 2013/14, this group not having previously been subject to Job Evaluation) resulting in payment on SJC Spinal Column Points (SCP’s); Page 474
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• Strong encouragement by Politicians, Officers and Trades Unions that all employees join one of the occupational pension schemes (including via auto-enrolment) resulting in a 15% increase to 93% total membership; and • Modernisation of pay arrangements in 2015, including introduction of a 4 weekly cycle, removal of weekly pay, and moving many processes online and enabling self-service resulting in an improved experience for employees and managers alike. 3.5 The Council has additionally invested in addressing the three main causes of occupational segregation including strong support of flexible working, support for carers’ and guaranteed interviews for parents returning to the workplace after a period of time out. 3.6 Whilst clear progress has been made toward addressing inequalities, it is clear that further opportunities exist to achieve parity across the workforce. In December 2017, an Equal Pay Audit focusing on allowances was presented to the Joint Consultative Forum (JCF) that demonstrated the potential for continuing indirectly discriminatory provisions that may give rise to claims on grounds of sex. 3.7 The report specifically recommended changes to allowances for enhanced working which were not supported by this forum and, given that this risk remains, there is a further opportunity to address equality concerns as part of this current review of terms and conditions. 4. Main Issues 4.1 As a public sector employer, it is essential that the Council continues to future-proof terms and conditions of employment, ensuring an employment package that is affordable within the financial envelope available, is gender pay neutral and is otherwise considered fair in terms of consolidation of provisions across different categories of employee. The review of the current terms and conditions has identified recommended opportunities for change as set out in sections below. 4.2 For the purposes of this report, the data set consulted included the Workforce Report as at 31st March 2022 and the Payroll Data from 2021/22. As this review focuses on the Local Government and Craft Operatives terms and conditions, those employed on teaching terms and conditions have been excluded. According to this data set, the Council’s workforce profile for those covered by Local Government and Craft terms (excluding supply/casual) is detailed in the table 1 below: Table 1: Workforce Profile F/T (no) F/T (%) P/T (No) P/T (%) Total Total (%) Female 1281 37.61% 2125 62.39% 3406 74.15% Male 1042 77.47% 303 22.53% 1345 25.85% Page 475
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4.3 Significant progress has been made in harmonising the terms and conditions of local government workers and craft workers, however, differences remain and the Council now seeks to fully address. 4.3.1 The table below provides a summary of key differences, the detail is set out in paragraphs 4.4 - 4.8 below: Table 2: Comparison of Terms and Conditions No. Term & Condition Local Government (35 & 37 FTE Hours) Craft (37 FTE Hours) 1. Overtime • Time and a half for hours worked over 37 hours • Double time for hours worked over 48 hours • First 5 hours at plain time • Over 5 hours at time and a half • All hours worked on a Saturday or Sunday is time and a half 2. Public Holiday Provision • 8 Days • 12 Days for Craft • 8 Days for Quasi- Craft 3. Alternating Shift/Irregular Hours Enhancement • 10% • Not Available to Craft Worker 4.4 Overtime 4.4.1 Enhanced overtime payments made in 2021/22 were, in the main, paid to men working full-time. Of the number of females accessing enhanced rates, circa 60% work part time in comparison to circa 12% of males. Females and males tend to be clustered into different occupations and sectors with females typically undertaking part-time roles in lower grades, with an average of 84% of females occupying a role in Grade 1 - 3. 4.4.2 Existing arrangements for overtime across both local government and craft employees could contribute to the gender pay gap as the current enhancements are potentially more favourable to the traditional male occupations that are generally full time roles and could be to the disadvantage of female employees, the majority of whom work part time. Females are potentially further disadvantaged due to their inability to access some of the enhanced payments which may be due to the continued societal influences and balancing work with caring responsibilities as women are predominately the primary care givers in society. The average age of females accessing overtime enhancements is 48, for men it is 47. 4.4.3 The table below provides an analysis of overtime payments for the period 2021/22 along with the gender breakdown. The response to COVID-19 pandemic significantly impacted upon the requirement for overtime working. Page 476
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The data identifies that females worked more hours than males but the value was less as they typically worked overtime at additional basic/ plain time. These statistics show starkly that despite 73.4% of the workforce being female, this group does not have the same access to enhanced overtime rates as males. Table 3: Comparison of Overtime for 2021/22 Overtime Rate Value - Females Value - Males Pay Gap (%) % of gender accessing the Enhanceme nt Allocation of Hours – Female Allocation of Hours - Male Plain* £876k £237k +73% 33% F 12.8% 76,559 19,411 Time and Half £694k £1.42m -51.39% 15% F 45% M 37,192 68,691 Double Time £234k £287k -18.47% 6.5% F 16.9% M 9,603 10,195 Contractual Overtime £7k £153k -95.42% 0.05% 2.75% N/A N/A Total £1.81m £2.10m 123,354 98,297 *Using payroll data for 2021/22 Plain time and Additional Basic have been amalgamated 4.4.4 The Council has a responsibility to ensure that the application of all allowances, including enhanced pay, is not creating or adding to a gender pay gap that cannot be objectively justified. 4.4.5 In considering the impact of pay inequality in respect of reducing the current enhanced rates to time and a quarter will have a positive impact on the gross gender pay differential by 1.58%. Further reduction would result in a further diminution of the gap. The majority of female overtime allowance paid in 2021/22 was at basic rate due to the part time nature of the roles and individuals therein. Table 4: Comparison with proposed adjustments to enhanced rates for overtime Total Enhanced OT Payable 2021/22 Enhanced OT Rates Capped at proposed x1.25 Difference Female £936,220 £731,376 -£204,843 Male £1,870,664 £1,499,016 -£371,647 Total £2,806,885 £2,230,393 -£576,491 Gender pay Gap 50.05% 48.47% -1.58% 4.4.6 Therefore, this proposal would further reduce exposure to equal pay liability by aligning Craft and Quasi-Craft employees (37 hour contracts) to the local government terms as these employees are predominately male (92%) and furthermore, the majority work on a full time basis (91%). As per table 2 identifies, there is a difference in the rates and qualifying criteria. The majority Page 477
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of overtime enhancements paid to craft workers in 2021/22 were time and a half as the majority of overtime worked was worked at the weekend. 4.4.7 Additionally, by removing the further double time enhancement above 48 hours (which we are unaware of other local authorities similarly applying), the Council is reinforcing its stance on such excessive working – that is to discourage, not incentivise it. 4.4.8 In respect of how this compares to other local authorities, many already similarly restrict enhanced overtime rates by grade while the rate payable varies from plain time to payment at time and a half. 4.5 Contractual Overtime 4.5.1 Some Council services are still making use of contractual overtime and there are currently 39 individuals in receipt of this allowance, for which the current enhancement is time and half. This enhancement is typically only available in male dominated roles, of those in receipt of contractual overtime, only 5% are female which represents 0.05% of the female workforce. The table below provides an illustration of the gender pay differential from full time female on 35 hours and a full time male on 37 hour plus 5 hours contractual overtime. Table 5: Comparison of female 35 hour worker and male 37 hour worker with contractual overtime included Female 35 Hour week Male 37 hour week + 5 hrs contractual overtime Gender Pay Gap Hourly Rate £10.34 £10.34 0% Contractual Overtime Rate £0.00 £15.51 N/A Gross Weekly Pay £361.90 £460.13 21% 4.5.2 To address this inequality, it is proposed that services still making use of this enhancement (noting that some services are already in the process of removing this) consider alternative resourcing models with a view to removing contractual overtime, subject to notice periods, this having a consequential positive impact on the gross gender pay gap. The cost of maintaining contractual overtime at the recommended reduced rate of time and a quarter is £133,743 however this would not eradicate the pay differential and is not the recommended approach. 4.6 Public Holidays 4.6.1 In December 2017, the ‘Equal Pay Audit – Allowances’ highlighted the separate terms and condition for Local Government and Craft employees, each having separate annual leave and public holiday entitlements. Craft workers employed before 1st April 2015 are entitled to 12 defined public holidays and are typically male (90%), Quasi-Craft employees (those employed after 1st April 2015) are also predominately male (95%) and Local Page 478
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Government employees, who are predominately female (74%) are entitled to 8 public holidays. Due to this, Craft employees are more likely to access enhanced rates for working on a public holiday than Local Government Employees and creating a gender pay differential. Table 6 below provides illustrative examples of the gender pay differentials based on the current provision. Table 6: Comparison of current provision for Public Holiday Allowances Female Local Government Employee: Worked 8 public holidays @ Double Time Male Craft Employee (37 hours): Worked 12 public holidays @ Double Time Gender Pay Gap Hourly Rate £10.34 £10.34 0% Daily Rate £72.38 £76.51 5.4% PH Enhancement (per day_ £72.38 £76.51 5.4% Total Gross Pay for PH Working (per day) £144.76 £153.02 5.4% Total Payable for PH Working £1,158 £1,836.24 36.93% 4.6.2 To address this inequality, and in recognition that many of our services are delivered on a 24/7, 365 day basis and to further support progress around occupational segregation and provision of flexibility, it is proposed that the public holiday entitlement is reduced to 6 days (for Local Government, Quasi- Craft and Craft Employees) and that the following are declassified as public holidays and instead added to annual leave entitlement: • Last Friday and Monday in May*; • Third Monday in July*; and • Last Friday in September* • May Day (first Monday in May); or Good Friday; and • September weekend (last Monday in September) *for Craft Employees only in order to equalise with Local Government Employees. 4.6.3 This proposal would have a positive impact on the gender pay differential by up to 31.53% as outlined in Tables 6 & 7 (36.93%-5.4%= 31.53% reduction). Deselecting Good Friday would also recognise that the workforce is made up of employees of various faiths therefore allowing more flexibility to take holidays associated with their own personal beliefs. Page 479
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Table 7: Comparison of proposed Public Holiday Allowance Female Local Government Employee: Worked 6 public holidays @ Double Time Male Craft Employee (37 hours): Worked 6 public holidays @ Double Time Gender Pay Gap Hourly Rate £10.34 £10.34 0% Daily Rate £72.38 £76.51 5.4% PH Enhancement (per day) £72.38 £76.51 5.4% Total Gross Pay for PH Working (per day) £144.76 £153.02 5.4% Total Payable for PH Working £868.56 £918.12 5.4% 4.6.4 As previously stated, the proposal would add the days to employees’ annual leave entitlement (on a pro-rata basis) giving them the freedom and flexibility to use the days as they wish as is in accordance with the principles of achieving work-life balance. 4.6.5 As a consequence, the minimum paid (full) annual leave entitlement will increase, for all employee groups, to a minimum 27 days and maximum 37 days per annum (including the additional day agreed for SJC employees 2022). This entitlement is well above the statutory minimum, compares generously with other Councils and therefore consideration could be given to not adding these to flexible annual leave entitlements. 4.6.6 With regard to the existing arrangements for annual leave and public holidays across Scotland’s 32 Local Authorities and, mindful that it is common for employees to move around, a comparison was undertaken. While there are some outliers, the majority offer 7 or fewer fixed public holidays so a reduction to 6 would be consistent with wider practice. 4.6.7 Reduction in the number of fixed public holidays added to annual leave entitlement (as implemented in neighbouring authorities) would also reduce costs through a decrease in premium payments while enhancing service delivery to the residents of West Dunbartonshire Council many of whom now expect a service on those days previously regarded as public holidays. 4.7 Shift Allowances 4.7.1 As part of the Council’s terms and conditions, employees are entitled to enhancements for working a non-standard shift patterns and as per the Page 480
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criteria outlined in the terms. The shift allowances payable are outlined in table 8 below: Table 8: Shift Allowances Shift Description Enhancement Gender Profile of those accessing Enhancements Night Shift* 33% of base pay for hours worked between 10pm and 8am 70% F* 30% M* Alternating Shifts/Irregular Hours 10% of base pay 76% F 24% M * this includes occasional enhancement of 23% where 10% allowance is already paid. 4.7.2 The current provision for nightshift working is 33% in addition to base pay. The proposal is that this be retained for now as it is a payment made which broadly reflects the gender profile of the workforce and to predominately employees on Grade 3, primarily in roles in health and social care. However, a review of application and alternatives is underway to ensure that consistency and fairness are ensured. 4.7.3 The Council does otherwise pay an enhancement of 10% of base pay, for those working alternating/rotating shift patterns and irregular hours, as defined in the terms and conditions. The gender split of those receiving this enhancement was broadly reflective of that of the Council workforce as a whole. It is further noted in table 9 below that the average allowance paid is comparable across both male and female and as such, any proposed change will not have a disproportionate impact in terms of gender. Table 9: Average Payment of 10% Shift Allowance by gender Total paid Ave Payment Total No of Employees % in receipt of allowance % of workforce by gender Female £521,968 £1884 277 76% 8% Male £161,802 £1859 87 24% 6% 4.7.4 A review of the shift patterns that attract this allowance has been undertaken and the majority of recipients work on an alternating shift pattern. Whilst shift patterns are variable across services, these are primarily worked within the Council’s core hours (between 7am and 9pm). This allowance is not accessible to other employees, predominately female, working a consistent shift pattern within the core hours. 4.7.5 It is recommended that this allowance is removed for two reasons, it will not have a disproportionate impact in terms of gender and current application is Page 481
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unfair and inconsistent. An alternative to this would be to retain a variation only for those unsocial hours worked by Grades 1 -3, of which those in receipt of this allowance at Grade 1-3, 84% are female. 4.7.5 There are some employees who receive this 10% allowance as part of irregular hours whereby they work 8 hours per week out-with the Council’s core hours and it is proposed this payment is reviewed to consider alternative options that are sustainable and equality proofed. It is noted that, in contrast with our approach, some local authorities pay an enhanced hourly rate for unsocial hours, rather than applying an uplift to base pay as a whole. This would ensure a fair and consistent application to those hours worked during core time. 4.8 Incremental Progression 4.8.1 New appointments, promotions or re-gradings between 1st October and 31st March, receive their first increment on the new salary scale six months from their effective date of appointment. 4.8.2 This provision benefits some over others simply based on timing and would need to be objectively justified. 4.8.3 To ensure equality of pay progression, it is proposed that this provision is removed , reverting to increments applied on 1st April for all after their one year service anniversary with West Dunbartonshire Council. 4.9 Group Life Assurance Scheme 4.9.1 Death in Service provisions currently exist under two separate schemes, The Local Government Pension Scheme (Scotland) Regulations 2018(LGPS) and the Group Life Assurance Scheme and the Scottish Teachers’ Superannuation Scheme (STSS), 4.9.2 The most beneficial provisions are enshrined in the LGPS and the STSS and provide guaranteed payment, upon death in service, equal to 3 times annual pay. This benefit is additional to the ill-health provisions, notably more likely to be required than death in service. Following significant and sustained efforts to promote and increase membership, 93% of employees are members of an occupational pension scheme, and therefore eligible for accrued benefits. 4.9.3 The Council also locally operates a self-insured death benefit through the historical discretionary Group Life Assurance Scheme, which provides for up to one years’ contractual pay. There is no automatic right to receive the full benefit and, depending on individual circumstances, the only payment that may be made is an amount to cover all or some of the funeral expenses. 4.9.4 This scheme is now only available to those in unchanged employment since 1 May 2009. Of the 600 people still eligible, only 46 are not in either of the Page 482
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occupational pension schemes. The majority are female (82%) and the average age is 63 so it is reasonable to assume that some may choose to retire when able to access state pension. 4.9.5 The proposal is to remove this provision as it is inaccessible to the wider workforce and, alternative more beneficial provisions exist in the pension schemes. 4.10 Notice Period 4.10.1 Whilst there are no equality impacts regarding notice periods, this ethical review of terms and conditions has identified an opportunity to respond to risks in terms of organisational resilience. 4.10.2 Currently, the minimum period of notice which employees are contractually required to provide when confirming their intention to terminate employment is determined by grade, with those of grade 8 and above required to give 8 weeks’ notice. Whilst the majority of standalone business critical roles will typically exist at this level, there are instances where such roles exist at other grades, and where the shorter notice period (i.e. 4 weeks in the case of those on grades 3 to 7) creates a serious risk in terms of organisational resilience should corresponding post-holders resign. Whilst services will continue to progress succession planning to reduce risk, it is proposed that, as an additional safeguard, an amendment is made to the terms and conditions which would contractually require those appointed to such roles (regardless of grade) to similarly provide give 8 weeks’ notice. This will enable additional time to plan and implement arrangements to ensure continuity of service provision following receipt of an employee’s written notice of resignation. 5. People Implications 5.1 Effective and regular monitoring and analysis of pay and remuneration is critical to ensure the organisation is providing equality of pay, employment practice and access to remuneration for all employees. 6. Financial and Procurement Implications 6.1 The proposed changes to eradicate inequality will reduce liability, further and fundamentally address the gender pay gap and indirectly reduce spend. 6.2 The timescales outlined in the table below are indicative as proposals are subject to trade union consultation. Proposed Change Indicative Effective Date Reduction in Overtime Enhancement June 2023 Removal of Contractual Overtime June 2023 Public Holiday alignment and reduction April 2023 (needs to align with leave year) Page 483
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Removal of Alternating Shift Allowance June 2023 6 monthly increment April 2023 (needs to align with leave year) Removal of Group Life June 2023 Notice Period June 2023 (to allow for identification and variations) 7. Risk Analysis 7.1 There is a risk of retaining those current provisions, as detailed above, which could disproportionately benefit male employees over females, in terms of potential claims for indirect/direct sex discrimination. 7.2 The Council’s overall gender pay gap is less than 3%. This sits in stark contrast to the pay gaps (potentially circa 20-50%) that exist when the additional terms outlined in this report are analysed. The Equality and Human Rights Commission’s (EHRC) recommends that immediate action is required when a pay gap is more than 3%. Therefore the Council has a duty to identify appropriate action to eliminate instances of inequality that cannot be justified. Accordingly, there are risks to the Council if the proposed changes are not implemented. 7.3 The Council has already had a number of Employment Tribunal Claims raised in relation to the current allowances and, without change, the risk of further claims remain. 7.4 There are risks of possible claims arising from the changes. 8. Equalities Impact Assessment (EIA) 8.1 Equalities impact assessments have been undertaken in relation to the above proposals and are included as appendices to the report. 9. Consultation 9.1 The Trade Unions were made aware of the high level changes at the Convenor meeting on 22nd November and the report shared following Council pre-agenda meeting. 9.2 As the proposed changes seek to vary the current terms and conditions, collective consultation and negotiation will be required. There is a risk that collective agreement may not be achievable resulting in industrial dispute/action. Page 484
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10. Strategic Assessment 10.1 The proposals set out within this report will assist the Council to deliver against its strategic priority “to deliver efficient and effective frontline services that improve the everyday lives of residents”, by contributing to the supporting outcome of being a “continuously improving Council delivering best value”. Victoria Rogers Chief Officer People & Technology Date: 6 December 2022 Person to Contact: Leeanne Galasso, Church Street, Dumbarton. Tel: 07823 516 151 Email: leeanne.galasso@west-dunbarton.gov.uk Appendices: Equality Impact Assessments Background Papers: WDC Terms and Conditions (LGE) V3.6 - April 2021 Scheme of Pay and Conditions of Service (Craft Operatives) Equal Pay Audit – Allowances remitted to JCF in December 2017 Wards Affected: None Page 485
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AssessmentNo 600 Owner lgalasso Resource Transformation Service/Establishment People and Technology First Name Surname Job title Head Officer Leeanne Galasso People &Change Partner (include job titles/organisation) Members Leeanne Galasso, People &Change Partner Lisa MacGregor, People &Change Partner (Please note: the word 'policy' is used as shorthand for stategy policy function or financial decision) Policy Title Ethical Review of Terms and Conditions - Allowances for enhanced working and public holidays The aim, objective,purpose and intended out come of policy The primary aim is to further eradicate pay inequality. Higher rates for enhancements can widen the gender pay gap particularly where employee groups do not have the opportunity to access enhancements to pay. There were concerns that the proposal to apply higher rates, particularly those related to overtime payments and payment for working public holidays, favour traditional male occupations which are generally full time and are to the disadvantage of female employees, the majority of whom work part time hours. The current remuneration and overtime arrangements for different work groups, in common with the of gender segregation of workforces, lead a situation that favours males more than females. It is essential that the Council continues to act to future-proof its terms and conditions of employment, ensuring an employment package is gender pay neutral and which is otherwise considered fair in terms of consolidation of provisions across different categories of employees. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Chief Officers, Strategic HR 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 employees who benefit from enhancements for overtime working Who will be/has been involved in the consultation process? Consultation will take place with recognised trade unions. 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 487
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Needs Evidence Impact Age The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's age profile confirms that the highest percentage of employees remain clustered in the age groups 50-59. There is no specific impact identified in relation to age. Cross Cutting Disability The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's disability profile confirms 1.38% of employees have declared a disability. It is well documented and reported that people with a disability can be impacted by pay inequality. There is no specific impact in relation to disability. Social & Economic Impact Reduction in pay for some employees may result in disposable income being reduced and having a reduced amount to spend in the economy The proposal seeks reduce the enhanced rates to overtime working to address gender pay inequalities which has an associated consequential saving. Negative impact but this is justifiable as it addresses an inequality in pay. Sex The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty It is well documented and reported that males typically earn more than females with greater opportunity to access enhancements through overtime and allowances. Equal Pay Audit 2017. Workforce profile concludes 71% female and 29% male. The pay data for 21/22 used identifies that more males access overtime than females and that females typically work overtime attract the rate at plain time, which is Approval to reduce the enhanced rates from current to time and a quarter will have a financial impact on males and females, however, when taking account of all enhanced overtime payable in 2021/22, it will reduce the gender pay differential by an estimated 1.58% for this work group. The proposal to remove contractual overtime will have an impact on males as this enhancement is typically only available in male dominated roles, of those in receipt of Page 488
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due to the majority working in a part- time role. It is well understood that females are main caregivers and benefit from flexibility to support the balance of working and home life. contractual overtime, only 5% are female which represents 0.05% of the female workforce. However this is justifiable as removing will have an impact on the gender pay gap. In relation to public holidays, by aligning craft to local goverment workers, this will impact on males as they are typically male (90%), Quasi-Craft employees (those employed after 1st April 2015) are also predominately male (95%) and Local Government employees, who are predominately female (74%). However this is justifiable as it will have a positive impact on the gender pay differential by up to 31.53% . It will also further benefit females as they are typically the main care givers and will give flexibility in use of leave. Gender Reassign The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's transgender profile confirms that 0.15% have declared transgener and 19.01% not transgender and 80.71% unknown. There is no specific impact in relation to gender reassign Health N/A N/A N/A Human Rights N/A N/A N/A Marriage & Civil Partnership The council has duty of care toward all its workers, and in No information reported on marital status/civil There is no specific impact in relation to marriage &civil Page 489
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terms of the Public Sector Equality Duty partnership. It is well documented and reported that males typically earn more than females with greater opportunity to access enhancements through overtime and allowances. partnerships Pregnancy & Maternity Cross-Cutting with Sex Cross-Cutting with Sex It is well document and reported that pregnancy and maternity have contributed to the gender pay inequality agenda. Cross-Cutting with Sex Race The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's race profile confirms 0.58% of the workforce are BAME. There is no specific impact in relation to race Religion and Belief The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's religion and belief provide confirms that 1.45% are Christian, 0.89% other and 8.56% none. There is no specific impact in relation to religion and belief. Sexual Orientation The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty , this proposal does not impact on sexual orientation The Council's sexual orientation profile concludes that 0.81% of the workforce have declared LGB and 18.26% as heterosexual with 80.41 unknown There is no specific impact in relation to sexual orientation Actions Policy has a negative impact on an equality group,but is still to be implemented, please provide justification for this. Changing the overtime rates from time and half and double time will have an impact on males and females. The removal of contractual overtime will have a negative impact on males as they access these rates due to the nature of the roles but is justifiable as it addresses a pay inequality. The realignment of public holidays of craft workers will have a negative impact on males as craft workers are typically male, however it is justifiable as it addresses pay inequality. Will the impact of the policy be monitored and reported on an ongoing bases? Page 490
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Yes the impact will be monitored via the Equal Pay Audit which happens every 3 years and reported to the appropriate committees. Q7 What is you recommendation for this policy? Intoduce Please provide a meaningful summary of how you have reached the recommendation EIA 600 details the likely impacts of the proposals; this shows potential positive impacts for female employees and negative impacts for male employees in terms of earnings when taking overtime and realignment of public holidays into account. It also shows potential positive impacts for female employees and negative impacts for male employees in terms of public holiday working both in terms of earnings and improved flexibility. Page 491
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AssessmentNo 601 Owner lgalasso Resource Transformation Service/Establishment People and Technology First Name Surname Job title Head Officer Leeanne Galasso People &Change Partner (include job titles/organisation) Members Leeanne Galasso, People &Change Partner Lisa MacGregor, People &Change Partner (Please note: the word 'policy' is used as shorthand for stategy policy function or financial decision) Policy Title Ethical Review of Terms and Conditions - Removal of Alternating Shift Allowance The aim, objective,purpose and intended out come of policy The primary aim is to reduce opportunities within the terms and conditions that can and have the potential to contribute to pay inequality. Enhancements in general can widen the gender pay gap particularly where employee groups do not have the opportunity to access enhancements to pay. The Council provides enhancements to employees for working a non-standard shift patterns and as per the criteria outlined in the terms. The shift allowances payable include 10% of base pay for alternating shifts/irregular hours or 33% for night shift working. A review of the shift patterns that attract this allowance has been undertaken and the majority of recipients work on an alternating shift pattern. Whilst shift patterns are variable across services, these are all primarily worked within the Council’s core hours (between 7am and 9pm). This allowance is not accessible to other employees, predominately female, working a consistent shift pattern within the core hours. It is essential that the Council continues to act to future-proof its terms and conditions of employment, ensuring an employment package which is gender pay neutral and which is otherwise considered fair in terms of consolidation of provisions across different categories of employees. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Chief Officers, Strategic HR, 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 employees who receive alternating/rotating shift allowance Who will be/has been involved in the consultation process? Consultation will take place with recognised trade unions. Page 492
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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. Needs Evidence Impact Age The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's age profile confirms that the highest percentage of employees remain clustered in the age groups 50-59. There is no specific impact identified in relation to age. Cross Cutting Disability The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's disability profile confirms 1.38% of employees have declared a disability. It is well documented and reported that people with a disability can be impacted by pay inequality. There is no specific impact in relation to disability. Social & Economic Impact Reduction in pay for some employees may result in disposable income being reduced and having a reduced amount to spend in the economy The proposal to remove alternating/rotating shift will impact on a total of 365 people with the average payment being broadly the same for males and females. Possible negative impact however justifiable as addresses fairness with majority of employees not being able to access this allowance. Sex The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty It is well documented and reported that males typically earn more than females with greater opportunity to access enhancements through overtime and allowances. Equal Pay Audit 2017. Workforce profile concludes 71% female and 29% male. The pay data for 21/22 used identifies that the gender split of those in receipt of alternating/rotating shift allowance is This allowance is currently paid to more females than males. As those in receipt of the allowance is reflective of the workforce, the removal of this will not have a disproportionate impact. This allowance is not accessible to other employees, predominately female, working a consistent shift pattern within the core hours. Page 493
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broadly reflective of the workforce demographic with 76% female and 24% male. Gender Reassign The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's transgender profile confirms that 0.15% have declared transgener and 19.01% not transgender and 80.71% unknown. There is no specific impact in relation to gender reassign Health N/A N/A N/A Human Rights N/A N/A N/A Marriage & Civil Partnership The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty No information reported on marital status/civil partnership. It is well documented and reported that males typically earn more than females with greater opportunity to access enhancements through overtime and allowances. There is no specific impact in relation to marriage &civil partnerships Pregnancy & Maternity Cross-Cutting with Sex Cross-Cutting with Sex It is well document and reported that pregnancy and maternity have contributed to the gender pay inequality agenda. Cross-Cutting with Sex Race The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's race profile confirms 0.58% of the workforce are BAME. There is no specific impact in relation to race Religion and Belief The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's religion and belief provide confirms that 1.45% are Christian, 0.89% other and 8.56% none. There is no specific impact in relation to religion and belief. Sexual Orientation The council has duty of care toward all its workers, and in The Council's sexual orientation profile concludes that There is no specific impact in relation to sexual orientation Page 494
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terms of the Public Sector Equality Duty , this proposal does not impact on sexual orientation 0.81% of the workforce have declared LGB and 18.26% as heterosexual with 80.41 unknown Actions Policy has a negative impact on an equality group,but is still to be implemented, please provide justification for this. There are negative impacts for male and female, however the removal will not have a disproportionate impact in terms of gender. Furthermore this allowance is not accessible to other employees, predominately female, working a consistent shift pattern within the core hours. Will the impact of the policy be monitored and reported on an ongoing bases? Yes the impact will be monitored via the Equal Pay Audit which happens every 3 years and reported to the appropriate committees. Q7 What is you recommendation for this policy? Please provide a meaningful summary of how you have reached the recommendation EIA 601 details the likely impacts of the proposals; this shows potential negative impacts for female employees as there are currently more in receipt of the allowance than males. However, this proposal won't have a disproportionate impact on gender pay gaps as those in receipt is broadly reflective of the council workforce gender split. Page 495
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AssessmentNo 602 Owner lgalasso Resource Transformation Service/Establishment People and Technology First Name Surname Job title Head Officer Leeanne Galasso People &Change Partner (include job titles/organisation) Members Leeanne Galasso, People &Change Partner Lisa MacGregor, People &Change Partner (Please note: the word 'policy' is used as shorthand for stategy policy function or financial decision) Policy Title Ethical Review of Terms and Conditions - Removal of Incremental Progression at 6 months The aim, objective,purpose and intended out come of policy The primary aim of this proposal is to ensure equality in pay progression. New appointments, promotions or re-gradings between 1st October and 31st March, receive their first increment on the new salary scale six months from their effective date of appointment. This proposal seeks to align annual incremental progression. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Chief Officers, Strategic HR 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 employees who are promoted, re-graded or take on a new appointment mid year. Who will be/has been involved in the consultation process? Consultation will take place with recognised trade unions. 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. Needs Evidence Impact Age The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's age profile confirms that the highest percentage of employees remain clustered in the age groups 50-59. There is no specific impact identified in relation to age. Cross Cutting Page 496
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Disability The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's disability profile confirms 1.38% of employees have declared a disability. It is well documented and reported that people with a disability can be impacted by pay inequality. There is no specific impact in relation to disability. Social & Economic Impact N/A N/A N/A Sex The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty Workforce profile concludes 71% female and 29% male Potential positive impact for females with equity of pay progression and that the predominance of the workforce is female. Gender Reassign The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's transgender profile confirms that 0.15% have declared transgener and 19.01% not transgender and 80.71% unknown. There is no specific impact in relation to gender reassign Health N/A N/A N/A Human Rights N/A N/A N/A Marriage & Civil Partnership The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty No information reported on marital status/civil partnership. There is no specific impact in relation to marriage &civil partnerships Pregnancy & Maternity Cross-Cutting with Sex Cross-Cutting with Sex Cross-Cutting with Sex Race The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's race profile confirms 0.58% of the workforce are BAME. There is no specific impact in relation to race Religion and Belief The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's religion and belief provide confirms that 1.45% are Christian, 0.89% other and 8.56% none. There is no specific impact in relation to religion and belief. Sexual Orientation The council has duty of care toward all its workers, and in terms of the Public The Council's sexual orientation profile concludes that 0.81% of the There is no specific impact in relation to sexual orientation Page 497
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Sector Equality Duty , this proposal does not impact on sexual orientation workforce have declared LGB and 18.26% as heterosexual with 80.41 unknown Actions Policy has a negative impact on an equality group,but is still to be implemented, please provide justification for this. There are no negative impacts identified. Will the impact of the policy be monitored and reported on an ongoing bases? No Q7 What is you recommendation for this policy? Intoduce Please provide a meaningful summary of how you have reached the recommendation EIA 602 details the likely impacts of the proposals; this shows potential positive impacts for female employees in terms of equity of pay progression. Page 498
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AssessmentNo 603 Owner lgalasso Resource Transformation Service/Establishment People and Technology First Name Surname Job title Head Officer Leeanne Galasso People &Change Partner (include job titles/organisation) Members Leeanne Galasso, People &Change Partner Lisa MacGregor, People &Change Partner (Please note: the word 'policy' is used as shorthand for stategy policy function or financial decision) Policy Title Ethical Review of Terms and Conditions - Removal of Notice Period for critical roles The aim, objective,purpose and intended out come of policy The primary aim is to respond to risk in terms of organisational resilience. Currently, the minimum period of notice which employees are contractually required to provide when confirming their intention to terminate employment is determined by grade, with those of grade 8 and above required to give 8 weeks’ notice. Whilst the majority of standalone business critical roles will typically exist at this level, there are instances where such roles exist at other grades, and where the shorter notice period (i.e. 4 weeks in the case of those on grades 3 to 7) creates a serious risk in terms of organisational resilience should corresponding post-holders resign. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Chief Officers, Strategic HR 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) No Who will be affected by this policy? All employees who are determined as having a stand alone business critical role in grades 3 - 7. Who will be/has been involved in the consultation process? Consultation will take place with recognised trade unions. 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. Needs Evidence Impact Age The council has duty of care toward all its workers, and in The Council's age profile confirms that the highest There is no specific impact identified in relation to age. Page 499
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terms of the Public Sector Equality Duty percentage of employees remain clustered in the age groups 50-59. Cross Cutting Disability The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's disability profile confirms 1.38% of employees have declared a disability. There is no specific impact in relation to disability. Social & Economic Impact N/A N/A N/A Sex The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty Workforce profile concludes 71% female and 29% male. There is no specific impact in sex Gender Reassign The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's transgender profile confirms that 0.15% have declared transgener and 19.01% not transgender and 80.71% unknown. There is no specific impact in relation to gender reassign Health N/A N/A N/A Human Rights N/A N/A N/A Marriage & Civil Partnership The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty No information reported on marital status/civil partnership. There is no specific impact in relation to marriage &civil partnerships Pregnancy & Maternity Cross-Cutting with Sex Cross-Cutting with Sex Cross-Cutting with Sex Race The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's race profile confirms 0.58% of the workforce are BAME. There is no specific impact in relation to race Religion and Belief The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's religion and belief provide confirms that 1.45% are Christian, 0.89% other and 8.56% none. There is no specific impact in relation to religion and belief. Sexual Orientation The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty , this proposal does The Council's sexual orientation profile concludes that 0.81% of the workforce have declared LGB and There is no specific impact in relation to sexual orientation Page 500
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not impact on sexual orientation 18.26% as heterosexual with 80.41 unknown Actions Policy has a negative impact on an equality group,but is still to be implemented, please provide justification for this. There are no negative impacts identified. Will the impact of the policy be monitored and reported on an ongoing bases? Impact monitored through workforce planning and succession planning activities. Q7 What is you recommendation for this policy? Please provide a meaningful summary of how you have reached the recommendation EIA 603 details that there are no negative impacts of this proposal. Page 501
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AssessmentNo 604 Owner lgalasso Resource Transformation Service/Establishment People and Technology First Name Surname Job title Head Officer Leeanne Galasso People &Change Partner (include job titles/organisation) Members Leeanne Galasso, People &Change Partner Lisa MacGregor, People &Change Partner (Please note: the word 'policy' is used as shorthand for stategy policy function or financial decision) Policy Title Ethical Review of Terms and Conditions - Removal of Group Life The aim, objective,purpose and intended out come of policy To align death in service benefits across the workforce. Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Chief Officers, Strategic HR 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) No Who will be affected by this policy? All employees who are currently eligible for Group Life Scheme. There are c600 employees eligible (employed since before 1st May 2009 and remained in the same role) with 42 of those employees not being in the pension scheme. Who will be/has been involved in the consultation process? Consultation will take place with recognised trade unions. 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. Needs Evidence Impact Age The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's age profile confirms that the highest percentage of employees remain clustered in the age groups 50-59. 93% of employees are members of an There is a possible negative impact on age as it tends to be older members of the workforce who are eligible for the benefit. Page 502
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occupational pension scheme, and therefore eligible for accrued benefits. The average age of those eligable for Group Life and not covered by the pension scheme is 63. Cross Cutting Disability The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's disability profile confirms 1.38% of employees have declared a disability. There is no specific impact in relation to disability. Social & Economic Impact N/A N/A N/A Sex The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty Workforce profile concludes 71% female and 29% male. Of those eligible and not in the pension scheme, 82% are female. Approval to remove the provision of group life will have a negative impact on females however is deemed justifiable as it is not a benefit available to the wider workforce and that there are relatively small number of deaths. Gender Reassign The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's transgender profile confirms that 0.15% have declared transgener and 19.01% not transgender and 80.71% unknown. There is no specific impact in relation to gender reassign Health N/A N/A N/A Human Rights N/A N/A N/A Marriage & Civil Partnership The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty No information reported on marital status/civil partnership. There is no specific impact in relation to marriage &civil partnerships Pregnancy & Maternity Cross-Cutting with Sex Cross-Cutting with Sex Cross-Cutting with Sex Race The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's race profile confirms 0.58% of the workforce are BAME. There is no specific impact in relation to race Page 503
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Religion and Belief The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty The Council's religion and belief provide confirms that 1.45% are Christian, 0.89% other and 8.56% none. There is no specific impact in relation to religion and belief. Sexual Orientation The council has duty of care toward all its workers, and in terms of the Public Sector Equality Duty , this proposal does not impact on sexual orientation The Council's sexual orientation profile concludes that 0.81% of the workforce have declared LGB and 18.26% as heterosexual with 80.41 unknown There is no specific impact in relation to sexual orientation Actions Policy has a negative impact on an equality group,but is still to be implemented, please provide justification for this. There is a negative impact in relation to age and sex, this is not a benefit available to the wider to the wider workforce. There are more female than male employees in WDC; this does not automatically mean that there is disproportionate adverse effect on women, factors to consider here include the relatively small number of deaths in service, and any differential standardised mortality rates between males and females. Furthermore, this can be mitigated by encouraging and supporting those employees who are currently not members of the pension scheme to become a member. Will the impact of the policy be monitored and reported on an ongoing bases? No Q7 What is you recommendation for this policy? Please provide a meaningful summary of how you have reached the recommendation EIA 604 details the likely impacts of the proposals; this shows potential negative impacts for female employees in terms of current workforce being eligible for scheme. Page 504